BILL NUMBER: SB 1341	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 12, 2010
	AMENDED IN ASSEMBLY  JUNE 15, 2010
	AMENDED IN SENATE  MAY 11, 2010
	AMENDED IN SENATE  APRIL 21, 2010

INTRODUCED BY   Senator Price

                        FEBRUARY 19, 2010

   An act to amend Section 130232 of the Public Utilities Code,
relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1341, as amended, Price. Los Angeles County Metropolitan
Transportation Authority: contracting.
   The County Transportation Commissions Act creates county
transportation commissions or authorities in Los Angeles, Orange,
Riverside, San Bernardino, and Ventura counties, with specified
powers and duties. Existing law, with respect to those agencies,
generally requires purchase of all supplies, equipment, and
materials, and the construction of all facilities and works, when the
expenditure exceeds $25,000, to be by contract let to the lowest
responsible bidder, or, in certain cases, to the best value proposer.
Existing law contains various alternative provisions applicable
solely to the Los Angeles County Metropolitan Transportation
Authority.
   This bill would enact additional provisions applicable to the Los
Angeles County Metropolitan Transportation Authority relative to
preferences in contracting for small business enterprises, as
defined.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 130232 of the Public Utilities Code is amended
to read:
   130232.  (a) Except as provided in subdivision (f), purchase of
all supplies, equipment, and materials, and the construction of all
facilities and works, when the expenditure required exceeds
twenty-five thousand dollars ($25,000), shall be by contract let to
the lowest responsible bidder. Notice requesting bids shall be
published at least once in a newspaper of general circulation. The
publication shall be made at least 10 days before the date for the
receipt of the bids. The commission, at its discretion, may reject
any and all bids and readvertise.
   (b) Except as provided for in subdivision (f), whenever the
expected expenditure required exceeds one thousand dollars ($1,000),
but not twenty-five thousand dollars ($25,000), the commission shall
obtain a minimum of three quotations, either written or oral, that
permit prices and terms to be compared.
   (c) Where the expenditure required by the bid price is less than
fifty thousand dollars ($50,000), the executive director may act for
the commission.
   (d) All bids for construction work submitted pursuant to this
section shall be presented under sealed cover and shall be
accompanied by one of the following forms of bidder's security:
   (1) Cash.
   (2) A cashier's check made payable to the commission.
   (3) A certified check made payable to the commission.
   (4) A bidder's bond executed by an admitted surety insurer, made
payable to the commission.
   (e) Upon an award to the lowest bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the commission beyond
60 days from the date that the award was made.
   (f) The following provisions apply only to the Los Angeles County
Metropolitan Transportation Authority:
   (1) The contract shall be let to the lowest responsible bidder or,
in the authority's discretion, to the person who submitted a
proposal that provides the best value to the commission on the basis
of the factors identified in the solicitation when the purchase price
of all supplies, equipment, and materials exceeds one hundred
thousand dollars ($100,000). "Best value" means the overall
combination of quality, price, and other elements of a proposal that,
when considered together, provide the greatest overall benefit in
response to requirements described in the solicitation documents. The
contract shall be let to the lowest responsible bidder when the
purchase price of the construction of all facilities exceeds
twenty-five thousand dollars ($25,000).
   (2) The authority shall obtain a minimum of three quotations,
either written or oral, that permit prices and terms to be compared
whenever the expected expenditure required exceeds three thousand
dollars ($3,000), but not one hundred thousand dollars ($100,000).
   (3) The authority may purchase supplies, equipment, and materials
from a public auction sale, including public auctions held via the
Internet, using the procedures established for all other participants
in the public auction.
   (4) The authority may participate in a procurement agreement
involving other public entities that is identified by a procuring
public entity or entities as a cooperative procuring agreement from
which other public entities may make purchases or enter into
contracts, and the authority may procure, and enter into contracts
for, items purchased pursuant to that procurement agreement,
notwithstanding that the authority may not be the procuring public
entity, provided the procurement agreement is awarded or entered into
by either of the following:
   (A) One or more public entities or an organization of public
entities, which may include the authority.
   (B) A federal, state, or local public entity.
   (5) (A) Notwithstanding any other provision of law requiring the
authority to award contracts to the lowest responsible bidder, on
contracts above one hundred thousand dollars ($100,000), the
authority may, except as to contracts for professional services
involving private architectural, landscape architectural,
engineering, environmental, land surveying, or construction
management as defined in Sections 4525 and 4529.10 of the Government
Code, do any of the following in facilitating contract awards to
small businesses:
   (i) Provide for a small business preference in construction, the
construction component of a design-build team, the procurement of
goods, or the delivery of services. The preference to a small
business shall be 5 percent of the lowest responsible bidder meeting
specifications that provide for small business participation.
   (ii) Establish a subcontracting participation goal for small
businesses on contracts financed with nonfederal funds and grant a
preference of 5 percent to the lowest responsible bidders who meet
the goal.
   (iii) Require bidders to make a good faith effort, in accordance
with the criteria established pursuant to subparagraph (B), prior to
the time bids are opened, to comply with the goals and requirements
established by the authority relating to participation in the
contract by small businesses.
   (B) The following shall apply to bidders under this paragraph:
   (i) The bidder attended any presolicitation or prebid meetings
that were scheduled by the authority to inform all bidders of the
small business enterprise program requirements for the project for
which the contract will be awarded. The authority may waive this
requirement if it determines that the bidder is informed as to those
program requirements.
   (ii) The bidder identified and selected specific items of the
project for which the contract will be awarded to be performed by
small business enterprises to provide an opportunity for
participation by those enterprises.
   (iii) The bidder advertised, not less than 10 calendar days before
the date the bids are opened, in one or more daily or weekly
newspapers, trade association publications or trade-oriented
publications, trade journals, or other media, specified by the
authority for small business enterprises that are interested in
participating in the project. This clause applies only if the
authority gave public notice of the project not less than 15 calendar
days prior to the date the bids are opened.
   (iv) The bidder provided written notice of his or her interest in
bidding on the contract to the number of small business enterprises
required to be notified by the project specifications not less than
10 calendar days prior to the opening of bids. The authority shall
make available to the bidder not less than 15 calendar days prior to
the date the bids are opened a list or a source of lists of
enterprises which are certified by the authority as small business
enterprises.
   (v) The bidder followed up initial solicitations of interest by
contacting the enterprises to determine with certainty whether the
enterprises were interested in performing specific items of the
project.
   (vi) The bidder provided interested small business enterprises
with information about the plans, specifications, and requirements
for the selected subcontracting or material supply work.
   (vii) The bidder requested assistance from small business
community organizations; small business contractor groups; local,
state, or small business assistance offices; or other organizations
that provide assistance in the recruitment and placement of small
business enterprises, if any are available.
   (viii) The bidder negotiated in good faith with the small business
enterprises, and did not unjustifiably reject as unsatisfactory bids
prepared by any small business enterprises, as determined by the
authority.
   (ix) Where applicable, the bidder advised and made efforts to
assist interested small business enterprises in obtaining bonds,
lines of credit, or insurance required by the authority or
contractor.
   (x) The bidder's efforts to obtain small business enterprise
participation could reasonably be expected by the authority to
produce a level of participation sufficient to meet the goals and
requirements of the authority.
   (C) "Small business enterprise" as used in this paragraph, means a
business enterprise that is classified as a small business under
United States Small Business Administration rules and meets the
current small business enterprise size standards found in 13 CFR Part
121 appropriate to the type of work the enterprise seeks to perform.
 The authority may establish limitations regarding the average
annual gross receipts of a small business over the previous three
fiscal years and establish limitations regarding the personal net
worth of the owner of the small business, exclusive of the value of
the owner's personal residence.