BILL NUMBER: SB 1280	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Pavley

                        FEBRUARY 23, 2012

   An act to amend Sections 10507.7 and 20651 of the Public Contract
Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1280, as introduced, Pavley. Public contracts: University of
California and community college districts: competitive bidding: best
value.
   Existing law requires the Regents of the University of California,
except as provided, to let all contracts involving an expenditure of
more than $100,000 annually for goods and materials or services to
the lowest responsible bidder meeting certain specifications, or to
reject all bids. Existing law requires the governing board of any
community college district to let specified contracts involving an
expenditure of more than $50,000 to the lowest responsible bidder
meeting certain specifications, or else to reject all bids.
   This bill would provide that bid evaluation and selection for
these contracts may include competitive means for obtaining best
value while complying with the legislative intent of the above
requirements.
   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 10507.7 of the Public Contract Code is amended
to read:
   10507.7.   (a)    Except as provided for in this
article, the Regents of the University of California shall let all
contracts involving an expenditure of more than one hundred thousand
dollars ($100,000) annually for goods and materials to be sold to the
University of California to the lowest responsible bidder meeting
specifications, or else reject all bids. Contracts for services to be
performed, other than personal or professional services, involving
an expenditure of one hundred thousand dollars ($100,000) or more
annually shall be made or entered into with the lowest responsible
bidder meeting specifications, or else all bids shall be rejected. If
the regents deem it to be for the best interest of the university,
the regents may, on the refusal or failure of the successful bidder
for materials, goods, or services to execute a tendered contract,
award it to the second lowest responsible bidder meeting
specifications. If the second lowest responsible bidder fails or
refuses to execute the contract, the regents may likewise award it to
the third lowest responsible bidder meeting specifications. 
   (b) For the purposes of this section, bid evaluation and selection
may include competitive means for obtaining best value while
complying with the legislative intent of subdivision (a). 
  SEC. 2.  Section 20651 of the Public Contract Code is amended to
read:
   20651.  (a)  (1)    The governing board of any
community college district shall let any contracts involving an
expenditure of more than fifty thousand dollars ($50,000) for any of
the following: 
   (1) 
    (A)  The purchase of equipment, materials, or supplies
to be furnished, sold, or leased to the district. 
   (2) 
    (B)  Services, except construction services. 
   (3) 
    (C)  Repairs, including maintenance as defined in
Section 20656, that are not a public project as defined in
subdivision (c) of Section 22002. 
   The 
    (2)     The  contract shall be let to
the lowest responsible bidder who shall give security as the board
requires, or else reject all bids. 
   (3) For the purposes of this subdivision, bid evaluation and
selection may include competitive means for obtaining best value
while complying with the legislative intent of paragraphs (1) and
(2). 
   (b) The governing board shall let any contract for a public
project, as defined in subdivision (c) of Section 22002, involving an
expenditure of fifteen thousand dollars ($15,000) or more to the
lowest responsible bidder who shall give security as the board
requires, or else reject all bids. All bids for construction work
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 community college
district.
   (3) A certified check made payable to the community college
district.
   (4) A bidder's bond executed by an admitted surety insurer, made
payable to the community college district.
   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 district beyond
60 days from the time the award is made.
   (c) This section applies to all equipment, materials, or supplies,
whether patented or otherwise. This section shall not apply to
professional services or advice, insurance services, or any other
purchase or service otherwise exempt from this section, or to any
works done by day labor or by force account pursuant to Section
20655.
   (d) Commencing January 1, 1997, the Board of Governors of the
California Community Colleges shall annually adjust the dollar
amounts specified in subdivision (a) to reflect the percentage change
in the annual average value of the Implicit Price Deflator for State
and Local Government Purchases of Goods and Services for the United
States, as published by the United States Department of Commerce for
the 12-month period ending in the prior fiscal year. The annual
adjustments shall be rounded to the nearest one hundred dollars
($100).