BILL NUMBER: AB 2109	CHAPTERED  09/19/00

	CHAPTER   526
	FILED WITH SECRETARY OF STATE   SEPTEMBER 19, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 21, 2000
	AMENDED IN SENATE   JUNE 29, 2000
	AMENDED IN SENATE   JUNE 14, 2000
	AMENDED IN ASSEMBLY   MAY 22, 2000
	AMENDED IN ASSEMBLY   APRIL 27, 2000

INTRODUCED BY   Assembly Member Bates

                        FEBRUARY 22, 2000

   An act to add and repeal Section 130241.5 of the Public Utilities
Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2109, Bates.  Orange County Transportation Authority:  Santa
Clara Valley Transportation Authority:  electronic bidding on
contracts.
   Existing law authorizes county transportation commissions,
including the Orange County Transportation Authority, to enter into
construction contracts and establishes a bidding process that
requires that bids be presented under sealed cover with specified
forms of bidder security.  The Santa Clara Valley Transportation
Authority Act authorizes the Santa Clara Valley Transportation
Authority to enter into contracts.
   This bill would, until January 1, 2004, authorize each authority
to accept bids for construction contracts that are presented by means
of electronic bidding through the Internet and under sealed cover,
as prescribed. On or before January 1, 2003, the California Research
Bureau, after consultation with each of the authorities, would be
required to prepare and submit to the Legislature a separate report
with regard to each authority, on the effectiveness of the specified
electronic bidding process.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 130241.5 is added to the Public Utilities Code,
to read:
   130241.5.  (a) Notwithstanding any other provision of law, all
bids for construction work submitted to the Orange County
Transportation Authority or the Santa Clara Valley Transportation
Authority may be presented by one of the following methods:
   (1) Under sealed cover and accompanied by one of the following
forms of bidder's security:
   (A) Cash.
   (B) A cashier's check made payable to the applicable authority.
   (C) A certified check made payable to the applicable authority.
   (D) A bidder's bond executed by an admitted surety insurer made
payable to the authority.
   (2) By means of electronic bidding through the Internet by
procedures established by the applicable authority and accompanied by
forms of security as determined adequate by the applicable
authority.
   (b) Upon an award to the lowest responsible bidder, the security
of each unsuccessful bidder shall be returned in a reasonable period
of time, but in no event shall that security be held by the
applicable authority beyond 60 days from the time the award is made.

   (c) Nothing in this section requires a bidder to submit a bid
electronically or authorizes either of the authorities to require
that all bids be submitted electronically.
   (d) On or before January 1, 2003, the California Research Bureau,
after consultation with each of the authorities, shall prepare and
submit to the Legislature a separate report with regard to each
authority on the effectiveness of the electronic bidding process
authorized by this subdivision.  Each report shall include, but not
be limited to, any impact of electronic bidding on the efficiency of
the procurement process, and any cost savings gained as a result of
electronic bidding.  Each report shall recommend whether or not the
electronic bidding authorized by this subdivision should be made
permanent for the subject authority, and whether it would be
effective if implemented on a statewide basis.
   (e) Nothing in this section prohibits each of the authorities from
participating in other electronic bidding programs developed by the
state that allow participation by its political subdivisions.
   (f) This section shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2004, deletes or extends
that date.