BILL NUMBER: SB 1162 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Runner
FEBRUARY 22, 2012
An act to amend Section 2807 of the Penal Code, and to amend
Sections 10295 and 10332 of, and to add Section 2003 to, the Public
Contract Code, relating to the Prison Industry Authority.
LEGISLATIVE COUNSEL'S DIGEST
SB 1162, as introduced, Runner. Prison Industry Authority:
purchases by state entities.
Existing law establishes the Prison Industry Authority to operate
industrial, agricultural, and service enterprises to provide products
and services needed by the state, or any political subdivision
thereof, or by the federal government, or any department, agency, or
corporation thereof, or for any other public use. Existing law
requires state entities to purchase these products and services at
the prices fixed by the authority and exempts those purchases from
provisions that generally govern public contracts, including the
bidding process.
This bill would authorize, rather than require, state entities to
purchase goods produced by the authority and would provide that if a
state entity elects to purchase goods from the authority, that
purchase is exempt from the requirements governing public contracts.
In all other circumstances, the bill would require the state entity
to comply with the provisions governing public contracts and, prior
to publishing a solicitation for bids, to notify the authority that
the state entity will comply with those provisions. The bill would
require a state entity, notwithstanding any other law requiring a
state entity to award contracts to the lowest responsible bidder, to
grant a preference of not more than 10% above the lowest responsible
bid meeting specifications submitted by a private entity with respect
to any responsible bid meeting specifications submitted by the
Prison Industry Authority.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2807 of the Penal Code is amended to read:
2807. (a) The authority is hereby authorized and empowered to
operate industrial, agricultural, and service enterprises
which that will provide products
goods and services needed by the state, or any
political subdivision thereof, or by the federal government, or any
department, agency, or corporation thereof, or for any other public
use. Products Goods may be purchased by
state agencies to be offered for sale to inmates of the department
and to any other person under the care of the state who resides in
state-operated institutional facilities. Fresh meat may be purchased
by food service operations in state-owned facilities and sold for
onsite consumption.
(b) (1) All things
goods authorized to be produced under
pursuant to subdivision (a) shall be purchased by the
state, or any agency thereof, and may be purchased by any
county, city, district, or political subdivision, or any agency
thereof , or by any state agency to offer for sale to
persons residing in state-operated institutions, at the
prices fixed by the Prison Industry Authority. State
agencies shall make maximum utilization of these products, and shall
consult with the staff of the authority to develop new products and
adapt existing products to meet their needs.
(2) All goods authorized to be produced pursuant to subdivision
(a) may be purchased by the state, or any agency thereof, as follows:
(A) If the state entity elects to purchase the goods from the
authority at the prices fixed by the authority, that purchase shall
be exempt from the requirements of the Public Contract Code.
(B) If the state entity does not proceed pursuant to subparagraph
(A), the state entity shall comply with the requirements of the
Public Contract Code, including, but not limited to Section 2003 of
the Public Contract Code. Prior to publishing a solicitation for
bids, the state entity shall notify the authority that the entity
intends to follow the purchasing procedures established in the Public
Contract Code.
(c) All products and services provided by the authority may be
offered for sale to a nonprofit organization, provided that all of
the following conditions are met:
(1) The nonprofit organization is located in California and is
exempt from taxation under Section 501(c)(3) of Title 26 of the
United States Code.
(2) The nonprofit organization has entered into a memorandum of
understanding with a local education agency. As used in this section,
"local education agency" means a school district, county office of
education, state special school, or charter school.
(3) The products and services are provided to public school
students at no cost to the students or their families.
SEC. 2. Section 2003 is added to the Public Contract Code, to
read:
2003. Notwithstanding any other provision of law requiring a
state entity to award contracts to the lowest responsible bidder, a
state agency shall grant a preference of not more than 10 percent
above the lowest responsible bid meeting specifications submitted by
a private entity to any responsible bid meeting specifications from
the Prison Industry Authority.
SEC. 3. Section 10295 of the Public Contract Code is amended to
read:
10295. (a) All contracts entered into by any state agency for (1)
the acquisition of goods or elementary school textbooks, (2)
services, whether or not the services involve the furnishing or use
of goods or are performed by an independent contractor, (3) the
construction, alteration, improvement, repair, or maintenance of
property, real or personal, or (4) the performance of work or
services by the state agency for or in cooperation with any person,
or public body, are void unless and until approved by the department.
Every contract shall be transmitted with all papers, estimates, and
recommendations concerning it to the department and, if approved by
the department, shall be effective from the date of the approval.
(b) This section applies to any state agency that by general or
specific statute is expressly or impliedly authorized to enter into
transactions referred to in this section.
(c) This section does not apply to the following:
(1) Any transaction entered into by the Trustees of the California
State University, by the Board of Governors of the California
Community Colleges, or by a department under the State Contract Act
or the California State University Contract Law.
(2) Any contract of a type specifically mentioned and authorized
to be entered into by the Department of Transportation under Section
14035 or 14035.5 of the Government Code, Sections 99316 to 99319,
inclusive, of the Public Utilities Code, or the Streets and Highways
Code.
(3) Any contract entered into by the Department of Transportation
that is not funded by money derived by state tax sources but, rather,
is funded by money derived from federal or local tax sources.
(4) Any contract entered into by the Department of Personnel
Administration for state employee benefits, occupational health and
safety, training services, or combination thereof.
(5) Any contract let by the Legislature.
(6) Any contract entered into under the authority of Chapter 4
(commencing with Section 11770) of Part 3 of Division 2 of the
Insurance Code.
(7) Any contract that is exempt from the Public Contract Code
pursuant to Section 2807 of the Penal Code.
SEC. 4. Section 10332 of the Public Contract Code is amended to
read:
10332. Any state agency that receives delegated authority to
acquire goods shall be authorized, at a minimum, to make the
following types of acquisitions:
(a) Acquisitions not exceeding the dollar value established
pursuant to Section 10330.
(b) Acquisitions in any amount of goods available under an
unexpired statewide or regional contract. Acquisitions of goods for
which a valid statewide or regional contract is in effect may not be
made, without the approval of the office, from a supplier other than
the supplier with whom the state has a valid contract.
(c) Acquisitions in any amount of goods that state agencies
are required, by Section 2807 of the Penal Code, to
acquire from the Prison Industry Authority pursuant to
Section 2807 of the Penal Code .
(d) Acquisitions not exceeding the dollar amount, established
pursuant to Section 10330, of goods designated in price schedules
that the office has established with suppliers. Acquisitions not
exceeding the dollar amount, established pursuant to Section 10330,
of goods designated in price schedules may be made from a supplier
other than the supplier specified on a price schedule if another
supplier offers the same or equivalent goods at a price lower than
the price established in the price schedule. The agency shall notify
the office prior to making the acquisition. The acquisition may be
made 48 hours after receipt of the notice by the office unless the
office advises the agency that the goods to be acquired are not the
same or equivalent to the goods specified on a price schedule.
(e) Acquisitions not exceeding the dollar value, established
pursuant to Section 10330, of goods that are available from the state
warehouses but which the state agency can acquire from another
supplier at a price lower than the price charged by the department.
The agency shall notify the office prior to making the acquisition.
The acquisition may be made 48 hours after receipt of the notice by
the office unless the office advises the agency that the goods to be
acquired are not the same or equivalent to the goods available from
the state warehouses.