BILL NUMBER: AB 2548	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY   AUGUST 24, 2000
	PASSED THE SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN SENATE   JUNE 26, 2000
	AMENDED IN ASSEMBLY   MAY 15, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Assembly Member Cox
   (Coauthors:  Assembly Members Steinberg and Thomson)
   (Coauthors: Senators Johannessen, Johnston, and Ortiz)

                        FEBRUARY 24, 2000

   An act to add and repeal Section 12751.3 of the Public Utilities
Code, relating to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2548, Cox.  Municipal utility districts:  purchases.
   The Municipal Utility District Act generally requires the purchase
of supplies and materials by a municipal utility district to be let
by contract to the lowest responsible bidder when the expenditure is
in excess of $25,000, or, in any district with a population of
250,000 or more, in excess of $50,000, with annual adjustments to
those dollar limits.
   This bill would authorize the board of a district to provide for
the purchase of supplies and materials, when the expenditure required
exceeds $50,000, by contract let in accordance with best value at
the lowest cost acquisition, as defined.  The bill would require a
district that elects to purchase supplies and materials by contract
let in accordance with those policies to submit a specified report to
the Legislature on or before January 1, 2004.
   The bill would require a district to ensure that all businesses
have a fair and equitable opportunity to compete for, and participate
in, district contracts awarded pursuant to its provisions and would
prohibit discrimination in the award and performance of those
contracts.
   The provisions of the bill would be repealed on January 1, 2005.


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


  SECTION 1.  Section 12751.3 is added to the Public Utilities Code,
to read:
   12751.3.  (a) Notwithstanding Section 12751, a district may
provide for the purchase of supplies and materials, when the
expenditure required exceeds fifty thousand dollars ($50,000), by
contract let in accordance with best value at the lowest cost
acquisition policies adopted by the board pursuant to this section.
   (b) The best value at the lowest cost acquisition policies adopted
pursuant to subdivision (a) shall consider, but not be limited to,
all of the following:
   (1) Price and service level proposals that reduce the district's
overall operating costs.
   (2) Supplies and materials standards that support the district's
strategic supplies and materials acquisition and management program
direction.
   (3) A procedure for protest and resolution.
   (4) Any other factors the board determines to be relevant.
   (c) For purposes of this section, "best value" means any factor or
criterion established by a district to ensure that its business
needs and goals are effectively met and that the district obtains the
most value for an authorized acquisition.  The term "best value at
the lowest cost acquisition" means a competitive procurement process
whereby the award of a contract for supplies and materials may take
into consideration any of the following factors:
   (1) The total cost to the district of its use or consumption of
supplies and materials.
   (2) The operational cost or benefit incurred by the district as a
result of contract award.
   (3) The value to the district of vendor-added services.
   (4) The quality, effectiveness, and innovation of supplies,
materials, and services.
   (5) The reliability of delivery or installation schedules.
   (6) The terms and conditions of product warranties and vendor
guarantees.
   (7) The financial stability of the vendor.
   (8) The vendor's quality assurance program.
   (9) The vendor's experience with the provision of supplies,
material, and services.
   (10) The consistency of the vendor's proposed supplies, materials,
and services with the district's overall supplies and materials
procurement program.
   (11) The economic benefits to the general community, including,
but not limited to, job creation or retention.
   (d) If a district elects to purchase supplies and materials by
contract, let in accordance with best value acquisition policies
adopted by the board pursuant to this section, the district shall
submit a report to the Legislature on or before January 1, 2004.  The
district shall include in the report a summary of the costs and
benefits of best value acquisition compared to traditional low bid
procurement practices.  The report shall also include statistics
showing the number of contracts awarded to small businesses,
minority-owned businesses, and new businesses and the number of years
each contract awardee had been in business.  The report shall also
include an analysis of the effects of best value procurement
practices on these businesses, the nature of any disputes arising
from the use of best value procurement practices, and the status of
those disputes.
   (e) The district shall ensure that all businesses have a fair and
equitable opportunity to compete for, and participate in, district
contracts and shall also ensure that discrimination in the award and
performance of contracts does not occur on the basis of race, color,
sex, national origin, marital status, sexual preference, creed,
ancestry, medical condition, or retaliation for having filed a
discrimination complaint in the performance of district contractual
obligations.
   (f) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date.