Amended in Senate February 10, 2016

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 558

Introduced by Assembly Member Low

February 23, 2015

begin delete An act to amend Sections 12102.2, 12104, and 12104.5 of the Public Contract Code, relating to public contracts. end delete begin insert An act to amend Section 19533.5 of the Business and Professions Code, relating to horse racing, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 558, as amended, Low. begin delete Public contracts: state contracts: information technology goods and services. end delete begin insert Horse racing: nonthoroughbred races. end insert

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(1) The Horse Racing Law generally requires that any license granted to an association other than a fair is only for one type of racing, thoroughbred, harness, or quarter horse racing, as the case may be, except that the California Horse Racing Board may authorize the entering of thoroughbred and Appaloosa horses in quarter horse races at a distance not exceeding 5 furlongs at quarter horse meetings, mixed breed meetings, and fair meetings under specified conditions. That law, notwithstanding these provisions, empowers the board to authorize mixed breed racing that sanctions, among other things, either an association to conduct a quarter horse meeting to include Appaloosa races and Arabian races with the consent of the quarter horse horsemen’s organization or a race between a quarter horse and a thoroughbred horse at a thoroughbred meeting with the consent of the thoroughbred horsemen’s organization, if each contracts with the association with respect to the conduct of the racing meeting.

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This bill would empower the board to authorize an association licensed to conduct a thoroughbred race meeting to include up to 6 nonthoroughbred races per calendar year with the consent of the organization representing thoroughbred horsemen and horsewomen, provided, however, that a nonthoroughbred race shall not be held when a fair in the northern zone is conducting a race meeting without that fair’s consent. Amounts deducted and distributed pursuant to the Horse Racing Law from wagering on nonthoroughbred races authorized pursuant to these provisions would be required to be deducted and distributed as if the wagers were placed on a thoroughbred race. By expanding the provisions of the Horse Racing Law, a violation of which is a crime, the bill would create new crimes and would thereby impose a state-mandated local program.

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(2) 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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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(3)This bill would declare that it is to take effect immediately as an urgency statute.

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Existing law authorizes the Department of General Services and the Department of Technology to adopt rules and regulations as are necessary to govern the acquisition and disposal of information technology goods and services. Existing law requires contract awards for all large-scale systems integration projects to be based on the proposal that provides the most value-effective solutions to the state’s requirements, as specified, and requires evaluation criteria for the acquisition of information technology goods and services, including systems integration, to provide for the selection of a contractor on an objective basis not limited to cost alone. Existing law requires the Department of Technology to invite active participation, review, advice, comment, and assistance from the private sector and state agencies in developing procedures to streamline and make the acquisition process more efficient, and requires solicitations for acquisitions based on evaluation criteria other than cost alone to provide that sealed cost proposals be submitted.

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This bill would require the Department of Technology, in developing procedures to streamline and make the acquisition process more efficient, to require the acquisition methodology to use electronic means, whenever possible, to reduce paper submissions and allow for electronic submission of bids and proposals. This bill would also require solicitations for acquisitions based on evaluation criteria other than cost alone to provide that electronic cost proposals be submitted whenever possible.

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Existing law requires the Department of General Services and the Department of Technology to develop, implement, and maintain standardized methods for the development of all information technology requests for proposals.

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This bill would require the standardized methods to include, whenever possible, electronic formats for electronic bid solicitation and electronic receipt of bid proposals.

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Existing law requires all rules and requirements and any changes to the rules and requirements governing an information technology acquisition, for which the Department of General Services or the Department of Technology determines that a request for proposal is appropriate, to be communicated in writing to all vendors that have expressed an intent to bid and to be posted in a public location.\

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This bill would require all rules and requirements and any changes to the rules and requirements to be communicated electronically and to be posted on the Internet Web site of the Department of General Services and the Department of Technology whenever possible.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 19533.5 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

19533.5.  

(a) Notwithstanding Section 19533, the board may
authorize the following mixed breed racing:

(1) An association licensed to conduct a quarter horse meeting
to include Appaloosa races and Arabian races with the consent of
the quarter horse horsemen’s organization contracting with the
association with respect to the conduct of the racing meeting.

(2) A race between a quarter horse and a thoroughbred horse at
a thoroughbred meeting with the consent of the thoroughbred
horsemen’s organization contracting with the association with
respect to the conduct of the racing meeting.

(b) Notwithstanding Section 19533, an association licensed to
conduct quarter horse racing or a fair may conduct races that
include paint horses racing with quarter horses or Appaloosa horses
in the same race. When paint horses race with quarter horses, the
consent of the organization that represents quarter horse horsemen
and horsewomen shall first be obtained. A quarter horse association
may write a race for paint horses only to replace an Appaloosa or
Arabian race without increasing the average number of races run
per race day with the consent of the organization representing the
quarter begin delete horse men end delete begin insert horsemen end insert and begin delete women. end delete begin insert horsewomen. end insert

(c) A quarter horse race with seven or more entries shall not be
replaced by a race that includes paint horses, without the consent
of the organization that represents quarter horse horsemen and
horsewomen.

(d) Notwithstanding any other begin delete provision of end delete law, begin delete any end delete begin insert a end insert quarter
horse racing association or fair conducting barrel racing, paint
horse racing, show jump racing, or steeplechase racing shall pay
to the quarter horsemen’s organization the amount specified in
Section 19613 for purposes of representing the horsemen and
horsewomen conducting these races.

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(e) Notwithstanding Section 19533, the board may authorize
an association licensed to conduct a thoroughbred race meeting
to include up to six nonthoroughbred races per calendar year with
the consent of the organization representing thoroughbred
horsemen and horsewomen, provided, however, that a
nonthoroughbred race shall not be held when a fair in the northern
zone is conducting a race meeting without that fair’s consent.
Amounts deducted and distributed pursuant to this chapter from
wagering on nonthoroughbred races authorized pursuant to this
section shall be deducted and distributed as if the wagers were
placed on a thoroughbred race.

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begin insert SEC. 2. end insert   

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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 will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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begin insert SEC. 3. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

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In order to ensure that the horse racing industry may continue
to offer the highest level of racing possible and promote horse
racing in California, it is necessary that this act take effect
immediately.

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SECTION 1.  

Section 12102.2 of the Public Contract Code is
amended to read:

12102.2.  

(a) Contract awards for all large-scale systems
integration projects shall be based on the proposal that provides
the most value-effective solution to the state’s requirements, as
determined by the evaluation criteria contained in the solicitation
document. Evaluation criteria for the acquisition of information
technology goods and services, including systems integration, shall
provide for the selection of a contractor on an objective basis not
limited to cost alone.

(1) The Department of Technology shall invite active
participation, review, advice, comment, and assistance from the
private sector and state agencies in developing procedures to
streamline and to make the acquisition process more efficient,
including, but not limited to, consideration of comprehensive
statements in the request for proposals of the business needs and
governmental functions, access to studies, planning documents,
feasibility study reports and draft requests for proposals applicable
to solicitations, minimizing the time and cost of the proposal
submittal and selection process, and development of a procedure
for submission and evaluation of a single proposal rather than
multiple proposals. The acquisition methodology shall use
electronic means, whenever possible, to reduce paper submissions
and allow for electronic submission of bids and proposals.

(2) Solicitations for acquisitions based on evaluation criteria
other than cost alone shall provide that sealed cost proposals or,
whenever possible, electronic cost proposals, shall be submitted
and that they shall be opened at a time and place designated in the
solicitation for bids and proposals. Evaluation of all criteria, other
than cost, shall be completed prior to the time designated for public
opening of cost proposals, and the results of the completed
evaluation shall be published immediately before the opening of
cost proposals. The state’s contact person for administration of the
solicitation shall be identified in the solicitation for bids and
proposals, and that person shall execute a certificate under penalty
of perjury, which shall be made a permanent part of the official
contract file, that all cost proposals received by the state have been
maintained sealed and under lock and key or sufficiently secured
electronically until the time cost proposals are opened.

(b) The acquisition of hardware acquired independently of a
system integration project may be made on the basis of lowest cost
meeting all other specifications.

(c) The 5 percent small business preference provided for in
Chapter 6.5 (commencing with Section 14835) of Part 5.5 of
Division 3 of Title 2 of the Government Code and the regulations
implementing that chapter shall be accorded to all qualifying small
businesses.

(d) For all transactions formally advertised, evaluation of
bidders’ proposals for the purpose of determining contract award
for information technology goods shall provide for consideration
of a bidder’s best financing alternatives, including lease or purchase
alternatives, if any bidder so requests, not less than 30 days prior
to the date of final bid submission, unless the acquiring agency
can prove to the satisfaction of the Department of General Services
that a particular financing alternative should not be so considered.

(e) Acquisition authority may be delegated by the Director of
General Services to any state agency that has been determined by
the Department of General Services to be capable of effective use
of that authority. This authority may be limited by the Department
of General Services. Acquisitions conducted under delegated
authority shall be reviewed by the Department of General Services
on a selective basis.

(f) To the extent practical, the solicitation documents shall
provide for a contract to be written to enable acquisition of
additional items to avoid essentially redundant acquisition
processes when it can be determined that it is economical to do
so.

(g) Protest procedures shall be developed to provide bidders an
opportunity to protest any formal, competitive acquisition
conducted in accordance with this chapter. The procedures shall
provide that protests must be filed no later than five working days
after the issuance of an intent to award. Authority to protest may
be limited to participating bidders. The Director of Technology,
or a person designated by the director, may consider and decide
on initial protests of bids for information technology projects
conducted by the Department of Technology and
telecommunications procurement made pursuant to Section 12120.
The Director of the Department of General Services, or a person
designated by the director, may consider and decide on initial
protests of all other information technology acquisitions. A decision
regarding an initial protest shall be final. If prior to the last day to
protest, any bidder who has submitted an offer files a protest with
the department against the awarding of the contract on the ground
that his or her bid or proposal should have been selected in
accordance with the selection criteria in the solicitation document,
the contract shall not be awarded until either the protest has been
withdrawn or the California Victim Compensation and Government
Claims Board has made a final decision as to the action to be taken
relating to the protest. Within 10 calendar days after filing a protest,
the protesting bidder shall file with the Victim Compensation and
Government Claims Board a full and complete written statement
specifying in detail the grounds of the protest and the facts in
support thereof.

(h) Consistent with the procedures established and administered
by the Department of General Services, information technology
goods that have been determined to be surplus to state needs shall
be disposed of in a manner that will best serve the interests of the
state. Procedures governing the disposal of surplus goods may
include auction or transfer to local governmental entities.

(i) A supplier may be excluded from bid processes if the
supplier’s performance with respect to a previously awarded
contract has been unsatisfactory, as determined by the state in
accordance with established procedures that shall be maintained
in the State Administrative Manual. This exclusion may not exceed
36 months for any one determination of unsatisfactory
performance. Any supplier excluded in accordance with this section
shall be reinstated as a qualified supplier at any time during this
36-month period, upon demonstrating to the Department of General
Services’ satisfaction that the problems that resulted in the
supplier’s exclusion have been corrected.

SEC. 2.  

Section 12104 of the Public Contract Code is amended
to read:

12104.  

(a) (1) The State Contracting Manual shall set forth
all procedures and methods that shall be used by the state when
seeking to obtain bids for the acquisition of information technology.

(2) Revisions to the manual must be publicly announced,
including, but not limited to, postings on the Internet Web site
homepage of the Department of General Services. The Department
of Technology shall provide a link to the State Contracting Manual
on its Internet Web site homepage.

(b) The Department of General Services and the Department of
Technology in accordance with this chapter shall develop,
implement, and maintain standardized methods for the development
of all information technology requests for proposals, including,
whenever possible, electronic formats for electronic bid solicitation
and electronic receipt of bid proposals.

(c) All information technology requests for proposals shall be
reviewed by the Department of Technology prior to release to the
public.

SEC. 3.  

Section 12104.5 of the Public Contract Code is
amended to read:

12104.5.  

(a) All rules and requirements governing an
information technology acquisition, for which the Department of
General Services or the Department of Technology determines
that a request for proposal (RFP) is appropriate, shall be
communicated in writing or, whenever possible, electronically, to
all vendors that have expressed an intent to bid and shall be posted
in a public location or, whenever possible, on the Internet Web
site of the Department of General Services and the Department of
Technology. Any changes to the rules and requirements governing
that RFP shall be communicated in writing or, whenever possible,
electronically, to all vendors that have expressed an intent to bid
and shall be posted in a public location or, whenever possible, on
the Internet Web site of the Department of General Services and
the Department of Technology. Requirements other than those
provided by law or outside of the published RFP and posted
addendums shall not be used to score bids.

(b) (1) All requests for proposals shall contain the following
statement:

“It is unlawful for any person engaged in business within this
state to sell or use any article or product as a “loss leader” as
defined in Section 17030 of the Business and Professions Code.”

(2) The Department of General Services shall post in the State
Contracting Manual instructions for including the statement
required by paragraph (1) in all affected contracts.

(3) The statement required by paragraph (1) shall be deemed to
be part of a request for proposal even if the statement is
inadvertently omitted from the request for proposal.

(c) The requirements of this section shall be in addition to any
other requirement provided by law.

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