BILL NUMBER: AB 1988	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Chávez

                        FEBRUARY 19, 2014

   An act to amend  Section   Sections 125107
and  125220  of, to amend, renumber, and add Sections 125222
and 125224 of, to add Sections 125225, 125225.1, and 125225.2 to,
and to repeal Sect   ions 125221 and 125223  of  ,
 the Public Utilities Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1988, as amended, Chávez. North County Transit District:
 contracts.   flexible procurement process.

    Existing law provides for creation of the North County Transit
District, with various powers and duties relative to the planning and
operation of a transit system in north San Diego County. 
Existing law provides for the district to be governed by a board of
directors, and requires compensation in the amount of $75 per day,
not to exceed $300 per month, be paid to each board member or
alternate for attending board meetings and for other related
activities.  Existing law authorizes the district to make
contracts and enter into stipulations of any nature whatsoever,
either in connection with eminent domain proceedings or otherwise,
including, but not limited to, contracts and stipulations to
indemnify and save harmless, to employ labor, to contract with a
private patrol operator, the county sheriff and municipal police
departments within described areas, and other transit development
boards for security, police, and related services, and to do all acts
necessary and convenient for the full exercise of the district's
powers granted pursuant to these provisions.
   This bill would  increase that compensation for board members
to $150 per day not to exceed $600 in any month, and would 
correct an erroneous cross-reference in these provisions. 
   The bill would revise and recast the district's authority to enter
into contracts that the district determines are in its best interest
by requiring the board of directors of the district to establish and
use a specified flexible procurement process to maximize the
efficient use of public funds. The bill would, among other things,
generally require contracts for the acquisition or lease of
materials, supplies, or equipment in an amount of $100,000, or in
excess of that amount as authorized by the board, be made or entered
into with the lowest responsible bidder that meets the
specifications. The bill would authorize the board to use any
procurement method authorized for state or local agencies under state
or federal law, including, but not limited to, a competitive
negotiation process, and would require the board to maintain
acquisition and contracting guidelines and comply with those
guidelines in the procurement of all goods and services.  
   The bill would authorize the board to purchase supplies,
equipment, or materials in the open market, in certain circumstances,
and would also authorize the executive director of the board to make
expenditures and take immediate remedial measures to avert or
alleviate damage to, or to repair or restore damaged or destroyed
property of, the district that are necessary to ensure that the
district's facilities are available to serve the transportation needs
of the general public or to comply with any state or federal
regulation with respect to the operation of public transportation
services. The bill would also specify procedures for single source
procurement and for a person to submit a protest to a procurement
solicitation or a notice of intent to award.  
   Because this bill would impose new duties on local public
officials, the bill would create a state-mandated local program.
 
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes . State-mandated local program:  no
  yes  .
   AB 1988, as amended, Chávez. North County Transit District:
 contracts.   flexible procurement process.

    Existing law provides for creation of the North County Transit
District, with various powers and duties relative to the planning and
operation of a transit system in north San Diego County. 
Existing law provides for the district to be governed by a board of
directors, and requires compensation in the amount of $75 per day,
not to exceed $300 per month, be paid to each board member or
alternate for attending board meetings and for other related
activities.  Existing law authorizes the district to make
contracts and enter into stipulations of any nature whatsoever,
either in connection with eminent domain proceedings or otherwise,
including, but not limited to, contracts and stipulations to
indemnify and save harmless, to employ labor, to contract with a
private patrol operator, the county sheriff and municipal police
departments within described areas, and other transit development
boards for security, police, and related services, and to do all acts
necessary and convenient for the full exercise of the district's
powers granted pursuant to these provisions.
   This bill would  increase that compensation for board members
to $150 per day not to exceed $600 in any month, and would 
correct an erroneous cross-reference in these provisions. 
   The bill would revise and recast the district's authority to enter
into contracts that the district determines are in its best interest
by requiring the board of directors of the district to establish and
use a specified flexible procurement process to maximize the
efficient use of public funds. The bill would, among other things,
generally require contracts for the acquisition or lease of
materials, supplies, or equipment in an amount of $100,000, or in
excess of that amount as authorized by the board, be made or entered
into with the lowest responsible bidder that meets the
specifications. The bill would authorize the board to use any
procurement method authorized for state or local agencies under state
or federal law, including, but not limited to, a competitive
negotiation process, and would require the board to maintain
acquisition and contracting guidelines and comply with those
guidelines in the procurement of all goods and services.  
   The bill would authorize the board to purchase supplies,
equipment, or materials in the open market, in certain circumstances,
and would also authorize the executive director of the board to make
expenditures and take immediate remedial measures to avert or
alleviate damage to, or to repair or restore damaged or destroyed
property of, the district that are necessary to ensure that the
district's facilities are available to serve the transportation needs
of the general public or to comply with any state or federal
regulation with respect to the operation of public transportation
services. The bill would also specify procedures for single source
procurement and for a person to submit a protest to a procurement
solicitation or a notice of intent to award.  
   Because this bill would impose new duties on local public
officials, the bill would create a state-mandated local program.
 
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes . State-mandated local program:  no
  yes  .
   AB 1988, as amended, Chávez. North County Transit District:
 contracts.   flexible procurement process.

    Existing law provides for creation of the North County Transit
District, with various powers and duties relative to the planning and
operation of a transit system in north San Diego County. 
Existing law provides for the district to be governed by a board of
directors, and requires compensation in the amount of $75 per day,
not to exceed $300 per month, be paid to each board member or
alternate for attending board meetings and for other related
activities.  Existing law authorizes the district to make
contracts and enter into stipulations of any nature whatsoever,
either in connection with eminent domain proceedings or otherwise,
including, but not limited to, contracts and stipulations to
indemnify and save harmless, to employ labor, to contract with a
private patrol operator, the county sheriff and municipal police
departments within described areas, and other transit development
boards for security, police, and related services, and to do all acts
necessary and convenient for the full exercise of the district's
powers granted pursuant to these provisions.
   This bill would  increase that compensation for board members
to $150 per day not to exceed $600 in any month, and would 
correct an erroneous cross-reference in these provisions. 
   The bill would revise and recast the district's authority to enter
into contracts that the district determines are in its best interest
by requiring the board of directors of the district to establish and
use a specified flexible procurement process to maximize the
efficient use of public funds. The bill would, among other things,
generally require contracts for the acquisition or lease of
materials, supplies, or equipment in an amount of $100,000, or in
excess of that amount as authorized by the board, be made or entered
into with the lowest responsible bidder that meets the
specifications. The bill would authorize the board to use any
procurement method authorized for state or local agencies under state
or federal law, including, but not limited to, a competitive
negotiation process, and would require the board to maintain
acquisition and contracting guidelines and comply with those
guidelines in the procurement of all goods and services.  
   The bill would authorize the board to purchase supplies,
equipment, or materials in the open market, in certain circumstances,
and would also authorize the executive director of the board to make
expenditures and take immediate remedial measures to avert or
alleviate damage to, or to repair or restore damaged or destroyed
property of, the district that are necessary to ensure that the
district's facilities are available to serve the transportation needs
of the general public or to comply with any state or federal
regulation with respect to the operation of public transportation
services. The bill would also specify procedures for single source
procurement and for a person to submit a protest to a procurement
solicitation or a notice of intent to award.  
   Because this bill would impose new duties on local public
officials, the bill would create a state-mandated local program.
 
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes . State-mandated local program:  no
  yes  .


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

   SECTION 1.    Section 125107 of the   Public
Utilities Code   is amended to read: 
   125107.  (a) Each member of the board, including the alternate
members appointed pursuant to Section 125051, shall be paid 
seventy-five   one hundred fifty  dollars 
($75)   ($150)  for each day the member or
alternate attends meetings of the board, but not to exceed 
three   six  hundred dollars  ($300)
  ($600)  in any month, and his  or her 
necessary and reasonable expenses in performing his  or her 
duties as a board member.
   (b) In addition to the compensation prescribed by subdivision (a),
the board may, by resolution, authorize and designate members and
alternates to be compensated for representing the board at specified
meetings of other governmental entities and public agencies.
Compensation may be  seventy-five   one hundred
fifty  dollars  ($75)   ($150)  for
each day the designated member or alternate attends specified
meetings, not to exceed  three   six 
hundred dollars  ($300)  ($600)  in any
month.
   SECTION 1.   SEC. 2.   Section 125220 of
the Public Utilities Code is amended to read:
   125220.  The district may make contracts and enter into
stipulations of any nature whatsoever, either in connection with
eminent domain proceedings or otherwise, including, but not limited
to, contracts and stipulations to indemnify and save harmless, to
employ labor, to contract with a private patrol operator licensed
pursuant to Article 4 (commencing with Section 7583) of Chapter 11.5
of Division 3 of the Business and Professions Code, the county
sheriff and municipal police departments within the areas described
in Section 125052, and other transit development boards for security,
police, and related services, and to do all acts necessary and
convenient for the full exercise of the powers granted in this
division.
   SEC. 3.    Section 125221 of the   Public
Utilities Code   is repealed.  
   125221.  Immediately upon holding its first meeting, the board
shall proceed to negotiate with the existing municipal transit
operators within its area of jurisdiction to acquire the capital
transit equipment and facilities of the municipal transit operators.

   SEC. 4.    Section 125222 of the   Public
Utilities Code   is amended and renumbered to read: 
    125222.  125221.   The district may
contract with any department or agency of the  United States
of America, with   federal government,  any 
other  public agency, or  with  any person upon
such terms and conditions as the district finds is in its best
interest.
   SEC. 5.    Section 125222 is added to the  
Public Utilities Code   , to read:  
   125222.  (a) The Legislature finds and declares that a compelling
interest exists in ensuring that all federal, state, local, and
private funds available to the district are captured and used in a
timely manner. In order to maximize the use of federal, state, local,
and private funds and to maintain a competitive posture in seeking
supplemental federal funds, the district shall have the authority to
establish and use a flexible procurement process to maximize its
efficient use of public funds.
   (b) Except in cases where an item of a specified brand or trade
name is the only item that will properly meet the needs of the
district or in an emergency declared by the vote of two-thirds of all
the members of the board, all contracts for the acquisition or lease
of materials, supplies, or equipment in an amount of one hundred
thousand dollars ($100,000), or in excess of that amount as
authorized by the board, shall be made or entered into with the
lowest responsible bidder that meets the specifications. For purposes
of determining the lowest bid, the amount of sales tax shall be
excluded from the total amount of the bid. When the expected purchase
amount of the contract exceeds five thousand dollars ($5,000) and
does not exceed one hundred thousand dollars ($100,000), the board
shall seek a minimum of three quotations, either written or oral, to
permit comparison of prices and other terms.
   (c) Except in cases of an emergency declared by the vote of
two-thirds of the membership of the board, the board shall for all
contracts for the acquisition of services that exceed one hundred
thousand dollars ($100,000), that are not within the category of
services defined in Section 4525 of the Government Code, solicit bids
in writing and award the contract in a competitive procurement
process that is in the best interest of the district, including, but
not limited to, a negotiated procurement that may or may not evaluate
price as a consideration. When the expected amount of the service
contract exceeds five thousand dollars ($5,000) and does not exceed
one hundred thousand dollars (100,000), the board shall seek a
minimum of three quotations, either written or oral, to permit
comparison of prices and other terms.
   (d) The board shall award contracts for architectural, landscape
architectural, engineering, environmental, land surveying services,
and construction project management services that are in excess of
one hundred thousand dollars ($100,000) in accordance with the
provisions of Chapter 10 (commencing with Section 4525) of Division 5
of Title 1 of the Government Code.
   (e) Notwithstanding any provision of this chapter, the board may
use any procurement method authorized for state or local agencies
under state or federal law, including, but not limited to, a
competitive negotiation process in accordance with the provisions of
Article 7.5 (commencing with Section 20216) of Chapter 1 of Part 3 of
Division 2 of the Public Contract Code. The board shall maintain
acquisition and contracting guidelines and comply with those
guidelines in the procurement of all goods and services.
   (f) Provisions in any federally funded contract concerning
disadvantaged business enterprises that are in accordance with the
request for proposals shall not be subject to negotiation with the
successful bidder. 
   SEC. 6.    Section 125223 of the   Public
Utilities Code   is repealed.  
   125223.  Contracts for the purchase of supplies, equipment, and
materials in excess of fifty thousand dollars ($50,000) shall be
awarded to the lowest responsible bidder after competitive bidding,
except in an emergency declared by the vote of two-thirds of the
membership of the board. 
   SEC. 7.    Section 125224 of the   Public
Utilities Code   is amended and renumbered to read: 
    125224.   125223.    (a)  
 If, after rejecting bids received under Section 
125223,   125222,  the board determines and
declares by a two-thirds vote of all of its members that, in its
opinion, the supplies, equipment, or materials may be purchased at a
lower price in the open market, the board may proceed to purchase
these supplies, equipment, or materials in the open market without
further observance of the provisions regarding contracts, bids, or
advertisements. 
   (b) If, after solicitation of bids under Section 125222, the board
determines and declares by a majority vote that it has not received
a responsive bid, the board may proceed to purchase the supplies,
equipment, or materials in the open market without further compliance
with any contracting, bidding, or advertising requirements. 
   SEC. 8.    Section 125224 is added to the  
Public Utilities Code   , to read:  
   125224.  (a) Upon determining that immediate remedial measures to
avert or alleviate damage to, or to repair or restore damaged or
destroyed property of, the district are necessary in order to ensure
that the facilities of the district are available to serve the
transportation needs of the general public or to comply with any
state or federal regulations with respect to the operation of public
transportation services, and upon determining that available remedial
measures, including procurement in compliance with Sections 125222
and 125223 are inadequate, the executive director may authorize the
expenditure of money previously appropriated by the board
specifically for the direct purchases of goods and services, without
complying with Section 125222 or 125223.
   (b) The executive director, after the expenditure authorized under
subdivision (a) has been made, shall submit to the board a full
report explaining the necessity for that action. 
   SEC. 9.    Section 125225 is added to the  
Public Utilities Code   , to read:  
   125225.  Notwithstanding any provision of this article, and upon a
finding by two-thirds of all members of the board that a purchase in
compliance with Sections 125222 and 125223 does not constitute a
method of procurement adequate for the operation of the district's
facilities or equipment, the board may direct the procurement of
prototype equipment or modifications in an amount sufficient to
conduct and evaluate operational testing without further compliance
with any contracting, bidding, or advertising requirements. 
   SEC. 10.    Section 125225.1 is added to the 
 Public Utilities Code   , to read:  
   125225.1.  Notwithstanding Section 125222, the board may direct
the purchase of any supplies, equipment, or materials without
complying with any contracting, bidding, or advertising requirements
upon a finding by two-thirds of all members of the board that there
is only a single source of procurement and that the purchase is for
the sole purpose of duplicating, repairing, or replacing supplies,
equipment, or materials that are in use, including upgrades or
migrations of proprietary intellectual property. 
   SEC. 11.   Section 125225.2 is added to the 
 Public Utilities Code   , to read:  
   125225.2.  (a) A person who submits, or who plans to submit, a
proposal in response to a procurement solicitation may protest any
acquisition conducted pursuant to Section 125222 or 125223 as
follows:
   (1) Protests based on the content of the procurement solicitation
shall be filed with the board within 10 calendar days after the
procurement solicitation is first advertised. The executive director,
or the designee of the executive director, shall issue a written
decision on the protest prior to the opening of the procurement
solicitation. A protest may be renewed by refiling the protest with
the board within 15 calendar days after the mailing of the notice of
the intent to award.
   (2) Any bidder may protest the intent to award on any ground not
based upon the content of the procurement solicitation by filing a
protest with the board within 15 calendar days after the mailing of
the notice of the intent to award.
   (3) Any protest shall contain a full and complete written
statement specifying in detail the grounds of the protest and the
facts supporting the protest. Protestors shall have an opportunity to
appear and be heard before the board prior to the opening of the
procurement solicitation in the case of protests based on the content
of the procurement solicitation, or prior to final award in the case
of protests based on other grounds or the renewal of protests based
on the content of the procurement solicitation.
   (b) The decision of the protest by the board shall be in writing
and constitutes a final administrative decision for purposes of
judicial review pursuant to Section 1094.6 of the Code of Civil
Procedure. 
   SEC. 12.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 

   SECTION 1.    Section 125107 of the   Public
Utilities Code   is amended to read: 
   125107.  (a) Each member of the board, including the alternate
members appointed pursuant to Section 125051, shall be paid 
seventy-five   one hundred fifty  dollars 
($75)   ($150)  for each day the member or
alternate attends meetings of the board, but not to exceed 
three   six  hundred dollars  ($300)
  ($600)  in any month, and his  or her 
necessary and reasonable expenses in performing his  or her 
duties as a board member.
   (b) In addition to the compensation prescribed by subdivision (a),
the board may, by resolution, authorize and designate members and
alternates to be compensated for representing the board at specified
meetings of other governmental entities and public agencies.
Compensation may be  seventy-five   one hundred
fifty  dollars  ($75)   ($150)  for
each day the designated member or alternate attends specified
meetings, not to exceed  three   six 
hundred dollars  ($300)  ($600)  in any
month.
   SECTION 1.   SEC. 2.   Section 125220 of
the Public Utilities Code is amended to read:
   125220.  The district may make contracts and enter into
stipulations of any nature whatsoever, either in connection with
eminent domain proceedings or otherwise, including, but not limited
to, contracts and stipulations to indemnify and save harmless, to
employ labor, to contract with a private patrol operator licensed
pursuant to Article 4 (commencing with Section 7583) of Chapter 11.5
of Division 3 of the Business and Professions Code, the county
sheriff and municipal police departments within the areas described
in Section 125052, and other transit development boards for security,
police, and related services, and to do all acts necessary and
convenient for the full exercise of the powers granted in this
division.
   SEC. 3.    Section 125221 of the   Public
Utilities Code   is repealed.  
   125221.  Immediately upon holding its first meeting, the board
shall proceed to negotiate with the existing municipal transit
operators within its area of jurisdiction to acquire the capital
transit equipment and facilities of the municipal transit operators.

   SEC. 4.    Section 125222 of the   Public
Utilities Code   is amended and renumbered to read: 
    125222.  125221.   The district may
contract with any department or agency of the  United States
of America, with   federal government,  any 
other  public agency, or  with  any person upon
such terms and conditions as the district finds is in its best
interest.
   SEC. 5.    Section 125222 is added to the  
Public Utilities Code   , to read:  
   125222.  (a) The Legislature finds and declares that a compelling
interest exists in ensuring that all federal, state, local, and
private funds available to the district are captured and used in a
timely manner. In order to maximize the use of federal, state, local,
and private funds and to maintain a competitive posture in seeking
supplemental federal funds, the district shall have the authority to
establish and use a flexible procurement process to maximize its
efficient use of public funds.
   (b) Except in cases where an item of a specified brand or trade
name is the only item that will properly meet the needs of the
district or in an emergency declared by the vote of two-thirds of all
the members of the board, all contracts for the acquisition or lease
of materials, supplies, or equipment in an amount of one hundred
thousand dollars ($100,000), or in excess of that amount as
authorized by the board, shall be made or entered into with the
lowest responsible bidder that meets the specifications. For purposes
of determining the lowest bid, the amount of sales tax shall be
excluded from the total amount of the bid. When the expected purchase
amount of the contract exceeds five thousand dollars ($5,000) and
does not exceed one hundred thousand dollars ($100,000), the board
shall seek a minimum of three quotations, either written or oral, to
permit comparison of prices and other terms.
   (c) Except in cases of an emergency declared by the vote of
two-thirds of the membership of the board, the board shall for all
contracts for the acquisition of services that exceed one hundred
thousand dollars ($100,000), that are not within the category of
services defined in Section 4525 of the Government Code, solicit bids
in writing and award the contract in a competitive procurement
process that is in the best interest of the district, including, but
not limited to, a negotiated procurement that may or may not evaluate
price as a consideration. When the expected amount of the service
contract exceeds five thousand dollars ($5,000) and does not exceed
one hundred thousand dollars (100,000), the board shall seek a
minimum of three quotations, either written or oral, to permit
comparison of prices and other terms.
   (d) The board shall award contracts for architectural, landscape
architectural, engineering, environmental, land surveying services,
and construction project management services that are in excess of
one hundred thousand dollars ($100,000) in accordance with the
provisions of Chapter 10 (commencing with Section 4525) of Division 5
of Title 1 of the Government Code.
   (e) Notwithstanding any provision of this chapter, the board may
use any procurement method authorized for state or local agencies
under state or federal law, including, but not limited to, a
competitive negotiation process in accordance with the provisions of
Article 7.5 (commencing with Section 20216) of Chapter 1 of Part 3 of
Division 2 of the Public Contract Code. The board shall maintain
acquisition and contracting guidelines and comply with those
guidelines in the procurement of all goods and services.
   (f) Provisions in any federally funded contract concerning
disadvantaged business enterprises that are in accordance with the
request for proposals shall not be subject to negotiation with the
successful bidder. 
   SEC. 6.    Section 125223 of the   Public
Utilities Code   is repealed.  
   125223.  Contracts for the purchase of supplies, equipment, and
materials in excess of fifty thousand dollars ($50,000) shall be
awarded to the lowest responsible bidder after competitive bidding,
except in an emergency declared by the vote of two-thirds of the
membership of the board. 
   SEC. 7.    Section 125224 of the   Public
Utilities Code   is amended and renumbered to read: 
    125224.   125223.    (a)  
 If, after rejecting bids received under Section 
125223,   125222,  the board determines and
declares by a two-thirds vote of all of its members that, in its
opinion, the supplies, equipment, or materials may be purchased at a
lower price in the open market, the board may proceed to purchase
these supplies, equipment, or materials in the open market without
further observance of the provisions regarding contracts, bids, or
advertisements. 
   (b) If, after solicitation of bids under Section 125222, the board
determines and declares by a majority vote that it has not received
a responsive bid, the board may proceed to purchase the supplies,
equipment, or materials in the open market without further compliance
with any contracting, bidding, or advertising requirements. 
   SEC. 8.    Section 125224 is added to the  
Public Utilities Code   , to read:  
   125224.  (a) Upon determining that immediate remedial measures to
avert or alleviate damage to, or to repair or restore damaged or
destroyed property of, the district are necessary in order to ensure
that the facilities of the district are available to serve the
transportation needs of the general public or to comply with any
state or federal regulations with respect to the operation of public
transportation services, and upon determining that available remedial
measures, including procurement in compliance with Sections 125222
and 125223 are inadequate, the executive director may authorize the
expenditure of money previously appropriated by the board
specifically for the direct purchases of goods and services, without
complying with Section 125222 or 125223.
   (b) The executive director, after the expenditure authorized under
subdivision (a) has been made, shall submit to the board a full
report explaining the necessity for that action. 
   SEC. 9.    Section 125225 is added to the  
Public Utilities Code   , to read:  
   125225.  Notwithstanding any provision of this article, and upon a
finding by two-thirds of all members of the board that a purchase in
compliance with Sections 125222 and 125223 does not constitute a
method of procurement adequate for the operation of the district's
facilities or equipment, the board may direct the procurement of
prototype equipment or modifications in an amount sufficient to
conduct and evaluate operational testing without further compliance
with any contracting, bidding, or advertising requirements. 
   SEC. 10.    Section 125225.1 is added to the 
 Public Utilities Code   , to read:  
   125225.1.  Notwithstanding Section 125222, the board may direct
the purchase of any supplies, equipment, or materials without
complying with any contracting, bidding, or advertising requirements
upon a finding by two-thirds of all members of the board that there
is only a single source of procurement and that the purchase is for
the sole purpose of duplicating, repairing, or replacing supplies,
equipment, or materials that are in use, including upgrades or
migrations of proprietary intellectual property. 
   SEC. 11.   Section 125225.2 is added to the 
 Public Utilities Code   , to read:  
   125225.2.  (a) A person who submits, or who plans to submit, a
proposal in response to a procurement solicitation may protest any
acquisition conducted pursuant to Section 125222 or 125223 as
follows:
   (1) Protests based on the content of the procurement solicitation
shall be filed with the board within 10 calendar days after the
procurement solicitation is first advertised. The executive director,
or the designee of the executive director, shall issue a written
decision on the protest prior to the opening of the procurement
solicitation. A protest may be renewed by refiling the protest with
the board within 15 calendar days after the mailing of the notice of
the intent to award.
   (2) Any bidder may protest the intent to award on any ground not
based upon the content of the procurement solicitation by filing a
protest with the board within 15 calendar days after the mailing of
the notice of the intent to award.
   (3) Any protest shall contain a full and complete written
statement specifying in detail the grounds of the protest and the
facts supporting the protest. Protestors shall have an opportunity to
appear and be heard before the board prior to the opening of the
procurement solicitation in the case of protests based on the content
of the procurement solicitation, or prior to final award in the case
of protests based on other grounds or the renewal of protests based
on the content of the procurement solicitation.
   (b) The decision of the protest by the board shall be in writing
and constitutes a final administrative decision for purposes of
judicial review pursuant to Section 1094.6 of the Code of Civil
Procedure. 
   SEC. 12.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 

   SECTION 1.    Section 125107 of the   Public
Utilities Code   is amended to read: 
   125107.  (a) Each member of the board, including the alternate
members appointed pursuant to Section 125051, shall be paid 
seventy-five   one hundred fifty  dollars 
($75)   ($150)  for each day the member or
alternate attends meetings of the board, but not to exceed 
three   six  hundred dollars  ($300)
  ($600)  in any month, and his  or her 
necessary and reasonable expenses in performing his  or her 
duties as a board member.
   (b) In addition to the compensation prescribed by subdivision (a),
the board may, by resolution, authorize and designate members and
alternates to be compensated for representing the board at specified
meetings of other governmental entities and public agencies.
Compensation may be  seventy-five   one hundred
fifty  dollars  ($75)   ($150)  for
each day the designated member or alternate attends specified
meetings, not to exceed  three   six 
hundred dollars  ($300)  ($600)  in any
month.
   SECTION 1.   SEC. 2.   Section 125220 of
the Public Utilities Code is amended to read:
   125220.  The district may make contracts and enter into
stipulations of any nature whatsoever, either in connection with
eminent domain proceedings or otherwise, including, but not limited
to, contracts and stipulations to indemnify and save harmless, to
employ labor, to contract with a private patrol operator licensed
pursuant to Article 4 (commencing with Section 7583) of Chapter 11.5
of Division 3 of the Business and Professions Code, the county
sheriff and municipal police departments within the areas described
in Section 125052, and other transit development boards for security,
police, and related services, and to do all acts necessary and
convenient for the full exercise of the powers granted in this
division.
   SEC. 3.    Section 125221 of the   Public
Utilities Code   is repealed.  
   125221.  Immediately upon holding its first meeting, the board
shall proceed to negotiate with the existing municipal transit
operators within its area of jurisdiction to acquire the capital
transit equipment and facilities of the municipal transit operators.

   SEC. 4.    Section 125222 of the   Public
Utilities Code   is amended and renumbered to read: 
    125222.  125221.   The district may
contract with any department or agency of the  United States
of America, with   federal government,  any 
other  public agency, or  with  any person upon
such terms and conditions as the district finds is in its best
interest.
   SEC. 5.    Section 125222 is added to the  
Public Utilities Code   , to read:  
   125222.  (a) The Legislature finds and declares that a compelling
interest exists in ensuring that all federal, state, local, and
private funds available to the district are captured and used in a
timely manner. In order to maximize the use of federal, state, local,
and private funds and to maintain a competitive posture in seeking
supplemental federal funds, the district shall have the authority to
establish and use a flexible procurement process to maximize its
efficient use of public funds.
   (b) Except in cases where an item of a specified brand or trade
name is the only item that will properly meet the needs of the
district or in an emergency declared by the vote of two-thirds of all
the members of the board, all contracts for the acquisition or lease
of materials, supplies, or equipment in an amount of one hundred
thousand dollars ($100,000), or in excess of that amount as
authorized by the board, shall be made or entered into with the
lowest responsible bidder that meets the specifications. For purposes
of determining the lowest bid, the amount of sales tax shall be
excluded from the total amount of the bid. When the expected purchase
amount of the contract exceeds five thousand dollars ($5,000) and
does not exceed one hundred thousand dollars ($100,000), the board
shall seek a minimum of three quotations, either written or oral, to
permit comparison of prices and other terms.
   (c) Except in cases of an emergency declared by the vote of
two-thirds of the membership of the board, the board shall for all
contracts for the acquisition of services that exceed one hundred
thousand dollars ($100,000), that are not within the category of
services defined in Section 4525 of the Government Code, solicit bids
in writing and award the contract in a competitive procurement
process that is in the best interest of the district, including, but
not limited to, a negotiated procurement that may or may not evaluate
price as a consideration. When the expected amount of the service
contract exceeds five thousand dollars ($5,000) and does not exceed
one hundred thousand dollars (100,000), the board shall seek a
minimum of three quotations, either written or oral, to permit
comparison of prices and other terms.
   (d) The board shall award contracts for architectural, landscape
architectural, engineering, environmental, land surveying services,
and construction project management services that are in excess of
one hundred thousand dollars ($100,000) in accordance with the
provisions of Chapter 10 (commencing with Section 4525) of Division 5
of Title 1 of the Government Code.
   (e) Notwithstanding any provision of this chapter, the board may
use any procurement method authorized for state or local agencies
under state or federal law, including, but not limited to, a
competitive negotiation process in accordance with the provisions of
Article 7.5 (commencing with Section 20216) of Chapter 1 of Part 3 of
Division 2 of the Public Contract Code. The board shall maintain
acquisition and contracting guidelines and comply with those
guidelines in the procurement of all goods and services.
   (f) Provisions in any federally funded contract concerning
disadvantaged business enterprises that are in accordance with the
request for proposals shall not be subject to negotiation with the
successful bidder. 
   SEC. 6.    Section 125223 of the   Public
Utilities Code   is repealed.  
   125223.  Contracts for the purchase of supplies, equipment, and
materials in excess of fifty thousand dollars ($50,000) shall be
awarded to the lowest responsible bidder after competitive bidding,
except in an emergency declared by the vote of two-thirds of the
membership of the board. 
   SEC. 7.    Section 125224 of the   Public
Utilities Code   is amended and renumbered to read: 
    125224.   125223.    (a)  
 If, after rejecting bids received under Section 
125223,   125222,  the board determines and
declares by a two-thirds vote of all of its members that, in its
opinion, the supplies, equipment, or materials may be purchased at a
lower price in the open market, the board may proceed to purchase
these supplies, equipment, or materials in the open market without
further observance of the provisions regarding contracts, bids, or
advertisements. 
   (b) If, after solicitation of bids under Section 125222, the board
determines and declares by a majority vote that it has not received
a responsive bid, the board may proceed to purchase the supplies,
equipment, or materials in the open market without further compliance
with any contracting, bidding, or advertising requirements. 
   SEC. 8.    Section 125224 is added to the  
Public Utilities Code   , to read:  
   125224.  (a) Upon determining that immediate remedial measures to
avert or alleviate damage to, or to repair or restore damaged or
destroyed property of, the district are necessary in order to ensure
that the facilities of the district are available to serve the
transportation needs of the general public or to comply with any
state or federal regulations with respect to the operation of public
transportation services, and upon determining that available remedial
measures, including procurement in compliance with Sections 125222
and 125223 are inadequate, the executive director may authorize the
expenditure of money previously appropriated by the board
specifically for the direct purchases of goods and services, without
complying with Section 125222 or 125223.
   (b) The executive director, after the expenditure authorized under
subdivision (a) has been made, shall submit to the board a full
report explaining the necessity for that action. 
   SEC. 9.    Section 125225 is added to the  
Public Utilities Code   , to read:  
   125225.  Notwithstanding any provision of this article, and upon a
finding by two-thirds of all members of the board that a purchase in
compliance with Sections 125222 and 125223 does not constitute a
method of procurement adequate for the operation of the district's
facilities or equipment, the board may direct the procurement of
prototype equipment or modifications in an amount sufficient to
conduct and evaluate operational testing without further compliance
with any contracting, bidding, or advertising requirements. 
   SEC. 10.    Section 125225.1 is added to the 
 Public Utilities Code   , to read:  
   125225.1.  Notwithstanding Section 125222, the board may direct
the purchase of any supplies, equipment, or materials without
complying with any contracting, bidding, or advertising requirements
upon a finding by two-thirds of all members of the board that there
is only a single source of procurement and that the purchase is for
the sole purpose of duplicating, repairing, or replacing supplies,
equipment, or materials that are in use, including upgrades or
migrations of proprietary intellectual property. 
   SEC. 11.   Section 125225.2 is added to the 
 Public Utilities Code   , to read:  
   125225.2.  (a) A person who submits, or who plans to submit, a
proposal in response to a procurement solicitation may protest any
acquisition conducted pursuant to Section 125222 or 125223 as
follows:
   (1) Protests based on the content of the procurement solicitation
shall be filed with the board within 10 calendar days after the
procurement solicitation is first advertised. The executive director,
or the designee of the executive director, shall issue a written
decision on the protest prior to the opening of the procurement
solicitation. A protest may be renewed by refiling the protest with
the board within 15 calendar days after the mailing of the notice of
the intent to award.
   (2) Any bidder may protest the intent to award on any ground not
based upon the content of the procurement solicitation by filing a
protest with the board within 15 calendar days after the mailing of
the notice of the intent to award.
   (3) Any protest shall contain a full and complete written
statement specifying in detail the grounds of the protest and the
facts supporting the protest. Protestors shall have an opportunity to
appear and be heard before the board prior to the opening of the
procurement solicitation in the case of protests based on the content
of the procurement solicitation, or prior to final award in the case
of protests based on other grounds or the renewal of protests based
on the content of the procurement solicitation.
   (b) The decision of the protest by the board shall be in writing
and constitutes a final administrative decision for purposes of
judicial review pursuant to Section 1094.6 of the Code of Civil
Procedure. 
   SEC. 12.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.