BILL NUMBER: SB 1427	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 25, 2012
	AMENDED IN SENATE  APRIL 25, 2012
	AMENDED IN SENATE  APRIL 17, 2012

INTRODUCED BY   Senator De León
   (Coauthor: Senator Corbett)

                        FEBRUARY 24, 2012

   An act to add Article 5 (commencing with Section 12230) to Chapter
4 of Part 2 of Division 2 of the Public Contract Code, relating to
public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1427, as amended, De León. State contracts: electronic goods:
bid preference for refurbished electronics.
   Existing law requires a state agency to meet certain requirements
with respect to purchasing recycled products, as specified. Existing
law requires a local public entity, if fitness and quality are equal,
to purchase recycled products instead of nonrecycled products
whenever recycled products are available, as specified, and
authorizes a local public entity to give preference to suppliers of
recycled products. 
   The Target Area Contract Preference Act requires the state, when
preparing a solicitation for a contract for goods or services in
excess of $100,000, to award a preference to a California-based
company that meet specified requirements, and the act also limits the
maximum preference for a bidder under that act and all laws to a
cumulative 15% or $100,000, as provided. 
   This bill would require a state agency that accepts bids or
proposals for a contract for electronic goods to provide a preference
of 5%, as specified, to a company that offers to fulfill the
contract  only  with refurbished electronics, as defined.
 This bill would also specify that the maximum preference under
this bill and all laws is a cumulative 15% or $100,000, as provided.

   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.  Article 5 (commencing with Section 12230) is added to
Chapter 4 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 5.  Refurbished Electronics Preference


   12230.  (a) For the purposes of this article, "refurbished
electronics" means any electronic device that the manufacturer has
tested and returned to a condition that meets factory specifications
for the device, has repackaged, and has labeled as refurbished.
   (b) Notwithstanding any other  provision  
law  , any state agency that accepts bids or proposals for a
contract for electronic goods shall provide a preference of 5 percent
to a  business   bidder  that offers to
fulfill the  entire  contract  only  with
refurbished electronics. The preference shall be provided as follows:

   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference shall be 5 percent of
the bid price of the lowest responsible bidder meeting
specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference
shall be 5 percent of the total score of the highest scored bidder.
   (3) The preferences awarded pursuant to paragraph (1) or (2) shall
not be awarded to a noncompliant bidder and shall not be used to
satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent preference
authorized pursuant to this section, a  business 
 bidder  shall submit all required substantiating
documentation and information needed by the state agency to determine
if the  business   bidder  is eligible for
the preference. 
   (5) Notwithstanding any other law, both of the following apply:
 
   (A) The maximum preference a bidder may be awarded pursuant to
this article and any other provision of law shall be 15 percent.
 
   (B) The combined cost of preferences granted pursuant to this
article and any other provision of law shall not exceed one hundred
thousand dollars ($100,000). 
   (c) The Department of General Services shall establish a process
to verify that a  business   bidder  meets
the criteria for the 5-percent preference established by this
article.
   (d) This section shall not be construed to require a state agency
to compromise its immediate mission or ability to function and carry
out its existing responsibilities.