BILL NUMBER: AB 2633	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 28, 2010
	AMENDED IN ASSEMBLY  APRIL 13, 2010
	AMENDED IN ASSEMBLY  APRIL 12, 2010

INTRODUCED BY   Assembly Member Davis

                        FEBRUARY 19, 2010

   An act to amend Section 8880.56 of the Government Code, relating
to the California State Lottery Commission.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2633, as amended, Davis. California State Lottery Commission:
report.
   Existing law requires the California State Lottery Commission to
prepare and submit to the Legislature by October 1 of each year a
report detailing the lottery's purchase of goods and services through
the Department of General Services. Existing law  requires
 also requires this report to include a listing of contracts
awarded for more than $100,000, and to provide specified information
in this regard.
   This bill would require  that  the report
described above  to be submitted on a biannual basis, and to
 include a list of each  advertizing  
advertising  agency from which the commission has purchased
services, how much the agency was paid, and what specific services
the agency provided. The bill would also reduce the threshold amount
of a contract that is required to be listed in the report from
$100,000 to $10,000.
   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 8880.56 of the Government Code is amended to
read:
   8880.56.  (a) Notwithstanding other provisions of law, the
director may purchase or lease goods and services as are necessary
for effectuating the purposes of this chapter. The director may not
contract with any private party for the operation and administration
of the California State Lottery, created by this chapter. However,
this section does not preclude procurements which integrate functions
such as game design, supply, advertising, and public relations. In
all procurement decisions, the director shall, subject to the
approval of the commission, award contracts to the responsible
supplier submitting the lowest and best proposal that maximizes the
benefits to the state in relation to the areas of security,
competence, experience, and timely performance, shall take into
account the particularly sensitive nature of the California State
Lottery and shall act to promote and ensure integrity, security,
honesty, and fairness in the operation and administration of the
lottery and the objective of raising net revenues for the benefit of
the public purpose described in this chapter.
   (b) Notwithstanding any other provision of this chapter, the
following shall apply to contracts or procurement by the lottery:
   (1) To ensure the fullest competition, the commission shall adopt
and publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than one
hundred thousand dollars ($100,000). The competitive bidding
procedures shall include, but not be limited to, requirements for
submission of bids and accompanying documentation, guidelines for the
use of requests for proposals, invitations to bid, or other methods
of bidding, and a bid protest procedure. The director shall determine
whether the goods or services subject to this paragraph are
available through existing contracts or price schedules of the
Department of General Services.
   (2) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one hundred thousand dollars
($100,000). The commission shall establish, as part of its bidding
procedures for general contracts, subcontracting guidelines that
implement this requirement.
   (3) The provisions of Article 1 (commencing with Section 11250) of
Chapter 3 of Part 1 of Division 3 apply to the commission.
   (4) The commission is subject to the Small Business Procurement
and Contract Act, as provided in Chapter 6.5 (commencing with Section
14835) of Part 5.5 of Division 3.
   (5) In advertising or awarding any general contract for the
procurement of goods and services exceeding five hundred thousand
dollars ($500,000), the commission and the director shall require all
bidders or contractors, or both, to include specific plans or
arrangements to utilize subcontracts with socially and economically
disadvantaged small business concerns. The subcontracting plans shall
delineate the nature and extent of the services to be utilized, and
those concerns or individuals identified for subcontracting if known.

   It is the intention of the Legislature in enacting this section to
establish as an objective of the utmost importance the advancement
of business opportunities for these small business concerns in the
private business activities created by the California State Lottery.
In that regard, the commission and the director shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by socially and economically disadvantaged small
business concerns in its procurement programs.
   By July 1, 1986, the commission shall adopt proposal evaluation
procedures, criteria, and contract terms which are consistent with
the advancement of business opportunities for small business concerns
in the private business activities created by the California State
Lottery and which will achieve the most feasible and practicable
level of participation by socially and economically disadvantaged
small business concerns in its procurement programs. The proposal
evaluation procedures, criteria, and contract terms adopted shall be
reported in writing to both houses of the Legislature on or before
July 1, 1986.
   For the purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians, Eskimos,
Aleuts, and Native Hawaiians), Asian-Pacific Americans (including
persons whose origins are from Japan, China, the Philippines,
Vietnam, Korea, Samoa, Guam, the United States Trust Territories of
the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and
other minorities or any other natural persons found by the commission
to be disadvantaged.
   The commission shall report to the Legislature by July 1, 1987,
and by each July 1 thereafter, on the level of participation of small
businesses, socially and economically disadvantaged businesses, and
California businesses in all contracts awarded by the commission.

   (6) The commission shall prepare and submit to the Legislature by
October 1 of each year 
    (6)     Notwithstanding Section 10231.5,
the commission shall, on a biannual basis, prepare and submit to the
Legislature, by April 1 and October 1 of each year,  a report
detailing the lottery's purchase of goods and services through the
Department of General Services. The report shall also include, but
not be limited to, a listing of contracts awarded for more than ten
thousand dollars ($10,000), the name of the contractor, amount and
term of the contract, and the basis upon which the contract was
awarded. The report shall further include a list of each 
advertizing   advertising  agency from which the
commission has purchased services, how much the agency was paid, and
what specific services the agency provided. If the 
advertizing   advertising  agency subcontracted to
another agency, that agency shall be listed and the specific services
that the agency provided shall be enumerated. The report submitted
pursuant to this subdivision shall be submitted in compliance with
Section 9795.
   The lottery shall fully comply with the requirements of paragraphs
(2) to (5), inclusive, except that any function or role which is
otherwise the responsibility of the Department of Finance or the
Department of General Services shall instead, for purposes of this
subdivision, be the sole responsibility of the lottery, which shall
have the sole authority to perform that function or role.