BILL NUMBER: AB 558 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 10, 2016
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Low
FEBRUARY 23, 2015
An act to amend Sections 12102.2, 12104, and 12104.5 of
the Public Contract Code, relating to public contracts.
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.
LEGISLATIVE COUNSEL'S DIGEST
AB 558, as amended, Low. Public contracts: state
contracts: information technology goods and services.
Horse racing: nonthoroughbred races.
(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.
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.
(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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(3)This bill would declare that it is to take effect immediately
as an urgency statute.
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.
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.
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.
This bill would require the standardized methods to include,
whenever possible, electronic formats for electronic bid solicitation
and electronic receipt of bid proposals.
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.\
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.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19533.5 of the
Business and Professions Code is amended to read:
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
horse men horsemen and women.
horsewomen.
(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 provision of law,
any a 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.
(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.
SEC. 2. 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.
SEC. 3. 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:
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.
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.