BILL NUMBER: SB 1596 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 24, 2008
INTRODUCED BY Senator Yee
FEBRUARY 22, 2008
An act to amend Sections 10507.7 and 10509 of the Public Contract
Code, relating to the University of California.
LEGISLATIVE COUNSEL'S DIGEST
SB 1596, as amended, Yee. University of California: public
contracts.
Existing law requires the Regents of the University of California,
in accordance with certain requirements, to let a contract involving
an expenditure of more than $50,000 annually for purchases of goods,
materials, and services, to the lowest responsible bidder or to
reject all bids. Existing law also requires the regents to prescribe
methods of procurement of goods, materials, and services to be
purchased.
This bill would specify that the term of a contract for goods,
materials, or services may not exceed 3 years, and that extensions of
the contract may not exceed one year. This bill would require that
these contracts be advertised in the State Contracts Register, would
require that a data warehouse of contractor and contract information
be maintained, and would further require that a contractor
responsibility program be established in which a contractor or
subcontractor and its principals would be required to complete
questionnaires under penalty of perjury .
This bill also would impose a civil penalty, not to exceed $10,000
for each violation, on a person or entity that fails to comply with
contractor responsibility program requirements or that knowingly
provides false information. These provisions would be effective on
and after January 1, 2009.
Because the bill requires the questionnaires to be executed under
penalty of perjury, the bill would create a new crime and thereby
impose a state-mandated local program. These provisions would be
effective on and after January 1, 2009.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 10507.7 of the Public Contract Code is amended
to read:
10507.7. (a) Except as provided for in this article, the Regents
of the University of California shall let all contracts involving an
expenditure of more than fifty thousand dollars ($50,000) annually
for goods and materials to be sold to the University of California to
the lowest responsible bidder meeting specifications, or else reject
all bids. Contracts for services to be performed, other than
personal or professional services, involving an expenditure of fifty
thousand dollars ($50,000) or more annually shall be made or entered
into with the lowest responsible bidder meeting specifications, or
else all bids shall be rejected. If the regents deem it to be for the
best interest of the university, the regents may, on the refusal or
failure of the successful bidder for materials, goods, or services to
execute a tendered contract, award it to the second lowest
responsible bidder meeting specifications. If the second lowest
responsible bidder fails or refuses to execute the contract, the
regents may likewise award it to the third lowest responsible bidder
meeting specifications.
(b) On and after January 1, 2009, to ensure a competitive
marketplace for contracts with the University of California, the term
of a contract for goods, materials, or services shall not exceed
three years. That contract may have one or more extensions, but the
cumulative term of all extensions shall not exceed one year.
SEC. 2. Section 10509 of the Public Contract Code is amended to
read:
10509. (a) The Regents of the University of California shall
prescribe methods of procurement for goods, materials, and services
to be purchased, including:
(1) Requirements for public advertisement where feasible and
practicable or for solicitation from at least three sources in other
cases.
(2) Bidder prequalification and evaluation standards.
(3) Guidelines for negotiating contracts for unique products or
proprietary services.
(4) Procedures for solicitation of vendor and service contractor
interest.
(5) Dissemination of award information.
(6) Such other matters as may encourage the receipt of the most
favorable price and conditions of purchase by the university.
(b) (1) The Regents of the University of California shall
establish a contractor responsibility program to ensure that
contractors and their subcontractors who wish to contract with the
regents comply with local, state, and federal laws, including, but
not limited to, laws affecting employees regarding health and safety,
labor and employment, wage and hours, and licencing laws.
(2) This program shall require contractors and their
subcontractors who wish to be considered for an award of a contract
to complete and have on file with the regents a questionnaire for the
contractor or subcontractor and its and each
subcontractor and t heir principals that has been
developed by an independent expert. The questionnaire shall be valid
for three years from the date executed, but either must be updated
prior to the award of a new contract or the amendment or extension of
an existing contract, or a certification of no change must be
executed. The questionnaire, and any update or certification
of no change, shall be signed under penalty of perjury.
The questionnaire shall include, but is not limited to, all of the
following questions:
(A) Are there or have there been any judgments, injunctions, or
liens, including, but not limited to, judgments based on taxes owed,
fines and penalties assessed by any government agency, elected
official, or initiated against the submitting contractor or any
affiliate at any time within the past five years or that remain open,
unsatisfied, or in effect today?
(B) Has the submitting contractor or any affiliates
affiliate ever been debarred from entering into
any government contract, found nonresponsible on any government
contract, declared in default or terminated for cause, determined to
be ineligible to bid or propose on any contract, suspended from
bidding or entering into any government contracts, or received an
overall unsatisfactory performance rating from any government agency
on any contract?
(C) Have any bankruptcy proceedings been initiated by or against
the submitting contractor or its affiliates
any affiliate within the past seven years, whether or not
closed, or is any bankruptcy proceeding pending by or against the
submitting contractor or its affiliates any
affiliate regardless of date of filing?
(D) In the past five years or currently pending, has the
submitting contractor, any of its principal owners or officers, or
any affiliate had any permit, license, concession, franchise, or
lease terminated for cause or revoked, or been disqualified for cause
as a bidder on any permit, license, concession, franchise, or lease?
(E) In the past five years, have any of the submitting
contractors or any of the submitting contractors' affiliates
has the submitting contractor or any affiliate
or any individual currently or within that period serving as a
principal owner, officer, or managerial employee been investigated by
any government agency, including, but not limited to, federal,
state, and local regulatory agencies in the United States?
(F) Has the submitting contractor, any affiliate, or any of their
current or former principal owners, officers, or managerial employees
been convicted of a misdemeanor or found in violation of any
administrative, statutory, or regulatory provisions in the past five
years, been convicted of a felony, or any crime related to
truthfulness or business conduct in the past 10 years, or have any
felony, misdemeanor, or administrative charges currently pending?
(G) For the past five years, has the submitting contractor or any
of its principal owners, officers, or any affiliate had any sanction
imposed as a result of judicial or administrative disciplinary
proceedings with respect to any professional license held?
(H) Other than the submitting contractor's employees, did the
submitting contractor retain, employ, or designate anyone to
influence the preparation of contract specifications, or the
solicitation or award of any contract during the past three years?
(3) Contractors shall notify the regents within 10 calendar days
after receiving notification that an a
government agency has instituted an investigation that may result in
a finding that the contractor is not in compliance with the laws
described in paragraph (1).
(4) A person or entity that fails to comply with this subdivision
or that knowingly provides false information in a questionnaire or in
any update or certification of no change to a questionnaire as
described in paragraph (2) shall be liable for a civil penalty not to
exceed $10,000 for each violation. A public prosecutor may bring a
civil action in the name of the people of the State of California in
any court of competent jurisdiction to recover the civil penalty.
(c) The Regents of the University of California shall cause
information for bidding on contracts subject to this article to be
published in the State Contracts Register published by the Department
of General Services in accordance with the provisions of Chapter 6
(commencing with Section 14825) of Part 5.5 of Division 3 of Title 2
of the Government Code.
(d) The Regents of the University of California shall maintain a
centralized data warehouse of contractor information and contracts,
including, but not limited to, contracts, contractor questionnaires,
comparative cost analyses, notifications, and certifications.
(e) The amendments adding this subdivision shall be effective on
and after January 1, 2009, and shall apply to all bidding, contracts,
amendments, and extensions occurring on or after January 1, 2009.
SEC. 3. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.