Section 10782 Of Article 5. Award Of Contracts From California Public Contract Code >> Division 2. >> Part 2. >> Chapter 2.5. >> Article 5.
10782
. If the trustees deem it is for the best interest of the
state, they may, on the refusal or failure of the successful bidder
to execute the contract, award it to the second lowest responsible
bidder.
If the second lowest responsible bidder fails or refuses to
execute the contract, the trustees may likewise award it to the third
lowest responsible bidder.
On the failure or refusal of the second or third lowest bidder, to
whom a contract is so awarded, to execute it, the bidder's security
shall be likewise forfeited to the state.