BILL NUMBER: SB 1068	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 17, 2012
	AMENDED IN SENATE  MAY 3, 2012
	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Rubio

                        FEBRUARY 13, 2012

   An act to amend Section 20311 of the Public Contract Code, and to
repeal and add Section 102222 of the Public Utilities Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1068, as amended, Rubio. Local Agency Public Construction Act:
Golden Empire Transit District: Sacramento Regional Transit District.

   Existing law, the Local Agency Public Construction Act, with
respect to the purchase by the Golden Empire Transit District of
supplies, equipment, and materials that exceed $10,000 or any single
purchase of fuels exceeding $15,000, requires the contract to be let
to the lowest responsible bidder. Existing law requires the Golden
Empire Transit District to publish a notice requesting bids to be
published in a newspaper of general circulation, as provided.
   Existing law requires the Sacramento Regional Transit District to
award contracts for the purchase of supplies, equipment, and
materials in excess of $40,000 to the lowest bidder after competitive
bidding, except when an emergency is declared by the board, as
specified.
   This bill instead would require contracts of the Golden Empire
Transit District and the Sacramento Regional Transit District for the
purchase of supplies, equipment, and materials that exceed $100,000
to be let to the lowest responsible bidder or, in the district's
discretion, to the responsible bidder that submits a proposal that
provides the best value, as defined. This bill would, with regard to
the Golden Empire Transit District, remove the requirement that a
single purchase of fuels exceeding $15,000 be let to the lowest
responsible bidder and would revise the notice requirement to require
that notice requesting bids be published at least once in a
newspaper of general circulation and on the district's procurement
Internet Web site, as provided. This bill also would require both
districts, to the extent practicable, to obtain a minimum of 3
quotations, either written or oral, that permit prices and terms to
be compared, whenever the expected expenditure required for the
purchase of supplies, equipment, or materials exceeds a specified
minimum amount but does not exceed $100,000. By expanding the duties
of a local agency, this bill would impose a state-mandated local
program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 20311 of the Public Contract Code is amended to
read:
   20311.  (a) (1) The construction of facilities and works, when the
expenditure required exceeds ten thousand dollars ($10,000), shall
be by contract let to the lowest responsible bidder.
   (2) Notice requesting bids shall be published at least once in a
newspaper of general circulation, which publication shall be made at
least 10 days before bids are received. The board may reject any and
all bids and readvertise in its discretion.
   (3) When the expected procurement required exceeds one thousand
dollars ($1,000), the board shall seek a minimum of three quotations,
either written or oral, which permit prices and other terms to be
compared.
   (b) (1) The purchase of all supplies, equipment, and materials,
when the expenditure required exceeds one hundred thousand dollars
($100,000), shall be by contract let to the lowest responsible bidder
or, in the district's discretion, to the responsible bidder that
submitted a proposal that provides the best value, as defined in
paragraph (2), to the district on the basis of the factors identified
in the solicitation.
   (2) For the purposes of this section, "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 the requirements described in the
solicitation documents.
   (3) Notice requesting bids shall be published at least once in a
newspaper of general circulation and on the district's procurement
Internet Web site, which publication shall be made at least 10 days
before bids are received. The board may reject any and all bids and
readvertise in its discretion.
   (4) To the extent practicable, when the expected procurement
required exceeds two thousand five hundred dollars ($2,500) but does
not exceed one hundred thousand dollars ($100,000), the board shall
seek a minimum of three quotations, either written or oral, which
permit prices and other terms to be compared.
   (5) This subdivision applies solely to the procurement of
supplies, equipment, and materials and shall not apply to
construction contracts.
  SEC. 2.  Section 102222 of the Public Utilities Code is repealed.
  SEC. 3.  Section 102222 is added to the Public Utilities Code, to
read:
   102222.  (a) Except as provided in subdivision (b), contracts for
the purchase of supplies, equipment, and materials in excess of one
hundred thousand dollars ($100,000) shall be by contract let to the
lowest responsible bidder or, in the district's discretion, to the
responsible bidder that submitted a proposal that provides the best
value, as defined in paragraph (1), to the district on the basis of
the factors identified in the solicitation.
   (1) For purposes of this section, "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 the requirements described in the solicitation documents.

   (2) To the extent practicable, when the expected procurement
required exceeds three thousand dollars ($3,000) but does not exceed
one hundred thousand dollars ($100,000),  the board shall
seek  a minimum of three quotations  shall be obtained
 , either written or oral, which permit prices and other terms
to be compared.
   (b) The provisions of subdivision (a) do not apply in the case of
an emergency declared by a four-fifths vote of the board of
directors.
   (c) This section applies solely to the procurement of supplies,
equipment, and materials and shall not apply to construction
contracts.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district are the result of a program for which legislative authority
was requested by that local agency or school district, within the
meaning of Section 17556 of the Government Code and Section 6 of
Article XIII B of the California Constitution.