BILL NUMBER: SB 1192	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hueso

                        FEBRUARY 20, 2014

   An act to amend Sections 14838.5, 14838.64, and 14838.7 of the
Government Code, relating to contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1192, as introduced, Hueso. Public contracts: small business,
microbusiness, and disabled veteran business enterprise.
   Existing law authorizes a state agency and the California State
University to award a contract for the acquisition of goods,
services, or information technology that has an estimated value of
greater than $5,000, but less than $250,000, to a certified small
business, including a microbusiness, or to a disabled veteran
business enterprise if they obtain 2 or more price quotations, as
specified.

   Existing law authorizes a state agency to award a contract for
construction, including the erection, construction, alteration,
repair, or improvement of any state structure, building, road, or
other state improvement of any kind that has an estimated value of
greater than $5,000 but less than a specified cost limit to a
certified small business, including a microbusiness, or to a disabled
veteran business enterprise if they obtain 2 or more written bid
submittals, as specified.
   This bill would provide that those estimated values do not include
taxes, fees, and transportation charges.
   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 14838.5 of the Government Code is amended to
read:
   14838.5.  (a)  (1)    Notwithstanding the
advertising, bidding, and protest provisions of Chapter 6 (commencing
with Section 14825) of this part and Chapter 2 (commencing with
Section 10290) and Chapter 3 (commencing with Section 12100) of Part
2 of Division 2 of the Public Contract Code, a state agency may award
a contract for the acquisition of goods, services, or information
technology that has an estimated value of greater than five thousand
dollars ($5,000), but less than two hundred fifty thousand dollars
($250,000), to a certified small business, including a microbusiness,
or to a disabled veteran business enterprise, as long as the agency
obtains price quotations from two or more certified small businesses,
including microbusinesses, or from two or more disabled veterans
business enterprises. 
   (2) The estimated value described in paragraph (1) shall not
include taxes, fees, and transportation charges. 
   (b) In carrying out subdivision (a), a state agency shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled veteran
business enterprise.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the acquisition of goods, services, or
information technology, or a greater amount as administratively
established by the director, a state agency shall obtain at least two
price quotations from responsible suppliers whenever there is reason
to believe a response from a single source is not a fair and
reasonable price.
  SEC. 2.  Section 14838.64 of the Government Code is amended to
read:
   14838.64.  (a)  (1)   Notwithstanding any other
law, including, but not limited to, the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this part and Chapter 2.5 (commencing with Section 10700) and Chapter
3 (commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, the California State University may award a
contract for the acquisition of goods, services, or information
technology that has an estimated value of greater than five thousand
dollars ($5,000), but less than two hundred fifty thousand dollars
($250,000), to a certified small business, including a microbusiness,
or to a disabled veteran business enterprise, if the California
State University obtains price quotations from two or more certified
small businesses, including microbusinesses, or from two or more
disabled veteran business enterprises. 
   (2) The estimated value described in paragraph (1) shall not
include taxes, fees, and transportation charges. 
   (b) In carrying out subdivision (a), the California State
University shall consider a responsive offer timely received from a
responsible certified small business, including a microbusiness, or
from a disabled veteran business enterprise.
  SEC. 3.  Section 14838.7 of the Government Code is amended to read:

   14838.7.  (a)  (1)    Notwithstanding the
advertising and bidding provisions of Chapter 6 (commencing with
Section 14825) of this code and Chapter 1 (commencing with Section
10100) of Part 2 of Division 2 of the Public Contract Code, a state
agency may award a contract for construction, including the erection,
construction, alteration, repair, or improvement of any state
structure, building, road, or other state improvement of any kind
that has an estimated value of greater than five thousand dollars
($5,000) but less than the cost limit, as specified in subdivision
(b) of Section 10105 of the Public Contract Code, to a certified
small business, including a microbusiness, or to a disabled veteran
business enterprise, as long as the agency obtains written bid
submittals from two or more certified small businesses, including
microbusinesses, or from two or more disabled veteran business
enterprises. 
   (2) The estimated value described in paragraph (1) shall not
include taxes, fees, and transportation charges. 
   (b) In implementing subdivision (a), state agencies shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled veteran
business enterprise.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the public work construction project, a state
agency shall obtain at least two written bid submittals from
responsible contractors whenever there is reason to believe a
response from a single source is not a fair and reasonable price.