Section § 4550

Explanation

This section defines important terms related to public purchasing in California. A "public purchase" refers to buying goods, services, or materials through competitive bidding by the state or its agencies. A "public purchasing body" is the state or the agency involved in making the purchase.

As used in this chapter:
(a)CA Government Code § 4550(a) “Public purchase” means a purchase by means of competitive bids of goods, services, or materials by the state or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.
(b)CA Government Code § 4550(b) “Public purchasing body” means the state or the subdivision or agency making a public purchase.

Section § 4552

Explanation

When someone submits a bid to supply goods or services to a government agency, they're agreeing to hand over any legal claims they might have related to anti-competitive practices concerning that purchase. This includes claims under specific federal and state laws about price-fixing or monopolistic behavior. The transfer of these claims becomes effective when the government agency pays in full for the goods or services.

Furthermore, this requirement must be clearly stated in the bidding documents and agreements.

In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder.
The preceding provisions of this section shall be included in full in any specifications for the public purchase and shall be included in full in the bid agreement or general provisions incorporated into the bid agreement.

Section § 4553

Explanation

If a company or individual, who has assigned a legal claim about a contract to a government body, receives money from a legal judgment or settlement, they can be reimbursed for actual legal expenses they paid. They can also demand some of the recovered money, including extra damages for overcharging, unless there are expenses related to getting that money back.

This rule must be clearly stated in all government contract documents and bids.

If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery.
In state contracts, the preceding provisions of this section shall be included in full in any specifications for the public purchase and shall be included in full in the bid agreement or general provisions incorporated into the bid agreement.

Section § 4554

Explanation

In California, if you assign a legal claim (cause of action) to someone else (assignee), you can demand in writing that they give it back within a year if you have been or could be harmed by the violation of law but the assignee hasn't been harmed or decides not to go to court over it. Also, when the state is involved in contracts, this rule must be clearly included in any public purchase specifications and bid agreements.

Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action.
In state contracts, the preceding provisions of this section shall be included in full in any specifications for the public purchase and shall be included in full in the bid agreement or general provisions incorporated into the bid agreement.