California Legislature—2013–14 Regular Session

Assembly Bill No. 1568

Introduced by Assembly Member Grove

January 30, 2014

An act to amend Sections 14838.5 and 14838.64 of the Government Code, and to amend Sections 10508.5 and 20651.2 of the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

AB 1568, as introduced, Grove. Public contracts: direct quotes.

Existing law authorizes a state agency, the University of California, the California State University, and a community college district to award a contract for goods, services, or information technology with a value between $5,000 and $250,000 or $100,000 and $250,000, as applicable, to a certified small business, including a microbusiness and a disabled veteran business enterprise, if that agency obtains price quotations from 2 or more certified small businesses, as specified.

This bill would require these agencies to directly obtain the price quotations from 2 or more certified small businesses, as specified.

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 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 part 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 two hundred fifty thousand dollars
($250,000), to a certified small business, including a microbusiness,
or to a disabled veteran business enterprise, as long as the agency
obtains price quotations begin insert directly end insert from two or more certified small
businesses, including microbusinesses, or begin insert directly end insert from two or
more disabled veterans business enterprises.

(b) In carrying out subdivision (a), a state agency shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled
veteran business enterprise.

(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 begin insert directly end insert from responsible suppliers whenever there
is reason to believe a response from a single source is not a fair
and reasonable price.

SEC. 2.  

Section 14838.64 of the Government Code is amended
to read:

14838.64.  

(a) Notwithstanding any other law, including, but
not limited to, the advertising, bidding, and protest provisions of
Chapter 6 (commencing with Section 14825) of this part and
Chapter 2.5 (commencing with Section 10700) and Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, the California State University 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 two hundred fifty thousand dollars
($250,000), to a certified small business, including a microbusiness,
or to a disabled veteran business enterprise, if the California State
University begin insert directly end insert obtains price quotations from two or more
certified small businesses, including microbusinesses, or begin insert directly end insert
from two or more disabled veteran business enterprises.

(b) In carrying out subdivision (a), the California State
University shall consider a responsive offer timely received from
a responsible certified small business, including a microbusiness,
or from a disabled veteran business enterprise.

SEC. 3.  

Section 10508.5 of the Public Contract Code is
amended to read:

10508.5.  

(a) Notwithstanding any other law, including, but
not limited to, the advertising, bidding, and protest provisions of
Chapter 2.1 (commencing with Section 10500), the University of
California may award a contract for the acquisition of goods,
services, or information technology that has an estimated value of
greater than one hundred thousand dollars ($100,000), but less
than two hundred fifty thousand dollars ($250,000), to a certified
small business, including a microbusiness, or to a disabled veteran
business enterprise, if the University of California begin insert directly end insert obtains
price quotations from two or more certified small businesses,
including microbusinesses, or begin insert directly end insert from two or more disabled
veteran business enterprises.

(b) In carrying out subdivision (a), the University of California
shall consider a responsive offer timely received from a responsible
certified small business, including a microbusiness, or from a
disabled veteran business enterprise.

(c) No provision of this section shall apply to the University of
California except to the extent that the Regents of the University
of California, by appropriate resolution, make that provision
applicable.

SEC. 4.  

Section 20651.2 of the Public Contract Code is
amended to read:

20651.2.  

(a) Notwithstanding any other law, including, but
not limited to, the advertising, bidding, and protest provisions of
this article and Division 7 (commencing with Section 70900) of
Title 3 of the Education Code, but subject to Section 88003.1, the
governing board of a community college district 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 two hundred fifty thousand dollars
($250,000), to a certified small business, including a microbusiness,
or to a disabled veteran business enterprise, if the community
college district begin insert directly end insert obtains price quotations from two or more
certified small businesses, including microbusinesses, or begin insert directly end insert
from two or more disabled veteran business enterprises.

(b) In carrying out subdivision (a), a community college district
shall consider a responsive offer timely received from a responsible
certified small business, including a microbusiness, or from a
disabled veteran business enterprise.

(c) The definitions set forth in Section 14837 of the Government
Code apply to this section.