BILL NUMBER: SB 1049	CHAPTERED  09/27/00

	CHAPTER   775
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JUNE 14, 2000
	AMENDED IN ASSEMBLY   APRIL 26, 2000
	AMENDED IN SENATE   JANUARY 3, 2000

INTRODUCED BY   Senator Murray
   (Principal coauthors:  Assembly Members Ducheny and Wright)

                        FEBRUARY 26, 1999

   An act to amend Section 14838.5 of the Government Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1049, Murray.  State contracts:  small businesses.
   Existing law authorizes a state agency to award a contract for the
acquisition of goods, services, or information technology that has
an estimated value of greater than $2,500, but less than $50,000, to
a small business, as long as the agency obtains price quotations from
2 or more small businesses.
   This bill instead would authorize the award of the contract to a
small business under these provisions if the contract has an
estimated value of greater than $5,000, but less than $100,000.


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) Notwithstanding the advertising , bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this code , 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 one hundred thousand dollars ($100,000), to a small
business, as long as the agency obtains price quotations from two or
more small businesses.
   (b) In carrying out subdivision (a), state agencies shall consider
a responsive offer timely received from a responsible small
business.
   (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.