BILL NUMBER: AB 1771	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2010

INTRODUCED BY   Assembly Member Mendoza
   (Principal coauthor: Senator Dutton)
    (   Coauthor:   Assembly Member  
Salas   ) 

                        FEBRUARY 9, 2010

   An act to amend Section 2807 of the Penal Code, relating to public
contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1771, as amended, Mendoza. Public contracts: Prison Industry
Authority.
   Existing law establishes the Prison Industry Authority within the
Department of Corrections and Rehabilitation. Existing law provides
that the authority is authorized and empowered to operate industrial,
agricultural, and service enterprises in order to provide products
and services needed by the state. Existing law requires that state
agencies purchase Prison Industry Authority products, make maximum
utilization of these products, and consult with the staff of the
authority to develop new products and adapt existing products to meet
their needs.
   This bill would provide that these requirements shall not restrict
state agencies from entering into  contracts  
purchase orders  of $25,000 or less with California certified
small businesses, microbusinesses, or disabled veteran business
enterprises for products provided at a lower price than the price
available from the Prison Industry Authority.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 2807 of the Penal Code is amended to read:
   2807.  (a) The authority is hereby authorized and empowered to
operate industrial, agricultural, and service enterprises that will
provide products and services needed by the state, or any political
subdivision thereof, or by the federal government, or any department,
agency, or corporation thereof, or for any other public use.
Products may be purchased by state agencies to be offered for sale to
inmates of the department and to any other person under the care of
the state who resides in state-operated institutional facilities.
Fresh meat may be purchased by food service operations in state-owned
facilities and sold for onsite consumption.
   (b) All things authorized to be produced under subdivision (a)
shall be purchased by the state, or any agency thereof, and may be
purchased by any county, city, district, or political subdivision, or
any agency thereof, or by any state agency to offer for sale to
persons residing in state-operated institutions, at the prices fixed
by the Prison Industry Authority. State agencies shall make maximum
utilization of these products, and shall consult with the staff of
the authority to develop new products and adapt existing products to
meet their needs.
   (c) Notwithstanding subdivision (b), the requirements imposed on
state agencies to purchase Prison Industry Authority products, make
maximum utilization of these products, and consult with the staff of
the authority to develop new products and adapt existing products to
meet their needs shall not restrict state agencies from entering into
 contracts   purchase orders  of
twenty-five thousand dollars ($25,000) or less with California
certified small businesses, microbusinesses, or disabled veteran
business enterprises, as defined in Section 14837 of the Government
Code. This subdivision shall only apply to contracts for products
provided at a lower price than the price available from the Prison
Industry Authority.