BILL NUMBER: AB 2148	CHAPTERED  08/26/02

	CHAPTER  239
	FILED WITH SECRETARY OF STATE  AUGUST 26, 2002
	APPROVED BY GOVERNOR  AUGUST 24, 2002
	PASSED THE ASSEMBLY  AUGUST 12, 2002
	PASSED THE SENATE  AUGUST 8, 2002
	AMENDED IN SENATE  JUNE 25, 2002
	AMENDED IN SENATE  JUNE 10, 2002
	AMENDED IN SENATE  MAY 24, 2002
	AMENDED IN ASSEMBLY  APRIL 10, 2002

INTRODUCED BY   Assembly Member Chu

                        FEBRUARY 20, 2002

   An act to amend Section 136.5 of, and to add Section 136.1 to, the
Streets and Highways Code, relating to state highways.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2148, Chu.  State highways:  contracts.
   (1) Existing law authorizes the Department of Transportation to
enter into contracts for the leasing or renting of tools or equipment
for state highway purposes.
   This bill would authorize the department to enter into major
damage mitigation contracts for specific services regarding major
damage repairs and operations on state highways.
   (2) Existing law provides that certain contracts for the removal
of structures and the leasing or renting of equipment for state
highway purposes are exempt from the State Contract Act.
   This bill would additionally exempt major damage mitigation
contracts for the performance of specific services regarding major
damage repairs and operations from the State Contract Act.


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


  SECTION 1.  The Legislature finds and declares that contracts
entered into pursuant to Section 136.1 are not intended to be used as
a means to cause the layoff or demotion of existing state civil
service employees.
  SEC. 2.  Section 136.1 is added to the Streets and Highways Code,
to read:
   136.1.  The department may enter into major damage mitigation
contracts to perform major damage repairs and operations on state
highways when caused by sudden, unforeseen events such as storms,
landslides, flooding, high surf, earthquakes or other geological
action, or civil unrest.  These contracts may be entered into prior
to the onset of major damage in order to retain the contractor in
readiness to respond to incidents as needed.  Work performed under
each contract shall be limited to physical construction, demolition,
debris removal, and traffic control.  The work shall be considered,
for funding purposes, as a public works construction project.
  SEC. 3.  Section 136.5 of the Streets and Highways Code is amended
to read:
   136.5.  (a) The contracts referred to in Sections 135, 136, and
136.1 are not subject to the State Contract Act (Part 2 (commencing
with Section 10100) of Division 2 of the Public Contract Code).
Except for emergency work of the type described in subdivision (b),
whenever the estimated amount of a contract exceeds two thousand five
hundred dollars ($2,500), it shall be awarded to the lowest
responsible bidder, after competitive bidding on any reasonable
notice that the department may prescribe.  Posting of notice for five
days in a public place in the district office within which the work
is to be done, or the equipment used, is sufficient.  Those contracts
shall be subject to the applicable payment bond provisions of
Chapter 7 (commencing with Section 3247) of Part 4 of Division 3 of
the Civil Code.  The department may require faithful performance
bonds when considered necessary.  The advertisement for each contract
shall state whether or not a bond shall be required.
   (b) In cases of emergency work necessitated by the imminence or
occurrence of a landslide, flood, storm damage, accident, or other
casualty, tools or equipment may be rented for a period of not to
exceed 60 days without competitive bidding, and the department may
waive the requirements of Chapter 7 (commencing with Section 3247) of
Part 4 of Division 3 of the Civil Code to the extent that a
contractor may commence performance of the work under the contract
for the rental of tools or equipment prior to filing a payment bond
with the department.  In that case, no payment shall be made to the
contractor until a payment bond covering all work of the contract is
filed with the department.