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<ns0:Id>20250AB__218799INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ramos</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ramos</ns0:Name>
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<ns0:Title> An act to amend Sections 10335.5, 10340, and 10365.5 of the Public Contract Code, relating to public contracts. </ns0:Title>
<ns0:RelatingClause>public contracts</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public contracts: contracts for services.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law that governs state acquisition of goods and services exempts certain consulting services contracts from advertising and bidding requirements, including contracts that can only be performed by a public entity, as defined. </html:p>
<html:p>This bill would additionally exempt contracts that can only be performed by a federally recognized California Native American tribe from the above-described advertising and bidding requirements.</html:p>
<html:p>Existing law requires a state agency to secure at least 3 competitive bids or proposals for each contract for services. Existing law exempts specified contracts from this requirement, including a contract that is with, among other entities, another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of
a California community college.</html:p>
<html:p>This bill would additionally exempt a contract that is with a federally recognized California Native American tribe from the above-described provisions and would authorize a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling an interagency agreements if the contracting federally recognized California Native American tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services. </html:p>
<html:p>Existing law prohibits a person, firm, or subsidiary thereof that has been awarded a consulting services contract from submitting a bid for, or being awarded a contract for, the provision of services, the procurement of goods or supplies, or any other
related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract, with certain exceptions. </html:p>
<html:p>This bill would exempt California Native American tribes awarded a consulting services contract for tribal cultural resources purposes, as defined, from the above-described provisions.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 10335.5 of the
<ns0:DocName>Public Contract Code</ns0:DocName>
is amended to read:
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<ns0:Num>10335.5.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
“Consulting services contract,” as used in this article, means services that do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Are of an advisory nature.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Provide a recommended course of action or personal expertise.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Have an end product that is basically a transmittal of information either written or verbal and that is related to the governmental functions of state agency administration and management and program management or innovation.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Are obtained by awarding a contract, a grant, or any other payment of funds for services of the above type.
</html:p>
<html:p>The product may include anything from answers to specific questions to design of a system or plan, and includes workshops, seminars, retreats, and conferences for which paid expertise is retained by contract.</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Consulting services contract” does not include any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Contracts between a state agency and the federal government.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Contracts with local agencies, as defined in Section 2211 of the Revenue and Taxation Code, to subvene federal funds for which no matching state funds are required.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The following consulting services contracts are exempt from the advertising and bidding requirements of this article:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Contracts that
are temporary or time-limited appointments to a nontesting civil service classification for the purpose of meeting a time-limited employment need. Selection and compensation for these appointments shall be made in accordance with state civil service requirements. Payment under a consulting service contract may be on the basis of each hour or day devoted to the task or in one lump sum for the end product.
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<html:p>
(2)
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Contracts that can only be performed by a federally recognized California Native American tribe or a public entity as defined in subdivision (b) of Section 605 of the Unemployment Insurance Code.
</html:p>
<html:p>
(3)
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Contracts solely for the purpose of obtaining expert witnesses for litigation.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Contracts for legal
defense, legal advice, or legal services.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Contracts in an amount of less than five thousand dollars ($5,000).
</html:p>
<html:p>
(6)
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Contracts entered into pursuant to Section 14838.5 of the Government Code.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 10340 of the
<ns0:DocName>Public Contract Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_EB0C2CF5-4D78-4C67-9A3B-2EBF4632F3B0">
<ns0:Num>10340.</ns0:Num>
<ns0:LawSectionVersion id="id_63F42F1C-668B-4EB4-8F15-C2A79D3CC4D3">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Except as provided by subdivision (b), a state agency shall secure at least three competitive bids or proposals for each contract.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Three competitive bids or proposals are not required in any of the following cases:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
In cases of an emergency where a contract is necessary for the immediate preservation of the public health, welfare, or safety, or protection of state property.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When the state agency awarding the contract has advertised the contract in the California State Contracts Register and has solicited all potential contractors known to the state agency, but has received less than three bids or proposals.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The contract is with another state agency, a local governmental entity,
a federally recognized California Native American tribe, an auxiliary organization of the California State University, an auxiliary organization of a California community college, a foundation organized to support the Board of Governors of the California Community Colleges, or an auxiliary organization of the Student Aid Commission established pursuant to former Section 69522 of the Education Code. These contracts, however, shall not be used to circumvent the competitive bidding requirements of this article.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), until January 1, 2020, an interagency agreement that is in effect pursuant to an amount appropriated to the California Initiative to Advance Precision Medicine, including a contract with the Regents of the University of California or an auxiliary organization
of the California State University, may include a subcontract not subject to any competitive bidding requirements of this article for the limited purpose of researching or developing precision medicine.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A federally recognized California Native American tribe may include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling an interagency agreements if the contracting federally recognized California Native American tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The contract meets the conditions prescribed by the department pursuant to subdivision (a) of
Section 10348.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The contract has been awarded without advertising and calling for bids pursuant to Section 19404 of the Welfare and Institutions Code.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A contract entered into pursuant to Section 14838.5 of the Government Code.
</html:p>
<html:p>
(7)
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A contract for the development, maintenance, administration, or use of licensing or proficiency testing examinations.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The contract is for services for the operation, maintenance, repair, or replacement of specialized equipment at facilities of the State Water Resources Development System, as defined in Section 12931 of the Water Code, and meets the conditions established by the Department of Water Resources for those contracts.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The contract meets
the conditions prescribed by the Department of Water Resources for contracts subject to Section 10295.6.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
A contract entered into by the Commission on Peace Officer Standards and Training or the Office of Emergency Services solely for the services of instructors for public safety training. For the purpose of this paragraph, “public safety training” includes, but is not limited to, training related to law enforcement, emergency medical response, emergency volunteers, and fire responders.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
A contract entered into by the Department of Forestry and Fire Protection for the purpose of providing logistical support for large-scale prescribed fire operations, including, but not limited to, meals, lodging, hired equipment, and land use agreements, or any related subcontract.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A state agency that has received less
than three bids or proposals on a contract shall document, in a manner prescribed by the department, the names and addresses of the firms or individuals it solicited for bids or proposals.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 10365.5 of the
<ns0:DocName>Public Contract Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_2C4EBD0F-9FFF-49B1-BFC3-87DCEEEB2727">
<ns0:Num>10365.5.</ns0:Num>
<ns0:LawSectionVersion id="id_3B2589D7-0E26-4E13-A176-0AA7E2A565F8">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
No person, firm, or subsidiary thereof who has been awarded a consulting services contract may submit a bid for, nor be awarded a contract for, the provision of services, procurement of goods or supplies, or any other related action which is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Subdivision (a) does not apply to any person, firm, or subsidiary thereof who is awarded a subcontract of a consulting services contract which amounts to no more than 10 percent of the total monetary value of the consulting services contract.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Subdivisions (a) and (b) do not apply to consulting services contracts subject to Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the Government Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Subdivision (a) does not apply to California Native American tribes awarded a consulting services contract for tribal cultural resources purposes.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, “tribal cultural resources” has the same meaning as defined in Section 21074 of the Public Resources Code.
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