BILL NUMBER: SB 883 CHAPTERED 10/13/01 CHAPTER 829 FILED WITH SECRETARY OF STATE OCTOBER 13, 2001 APPROVED BY GOVERNOR OCTOBER 12, 2001 PASSED THE SENATE SEPTEMBER 14, 2001 PASSED THE ASSEMBLY SEPTEMBER 10, 2001 AMENDED IN ASSEMBLY JULY 16, 2001 AMENDED IN ASSEMBLY JUNE 19, 2001 AMENDED IN SENATE APRIL 24, 2001 AMENDED IN SENATE APRIL 16, 2001 INTRODUCED BY Senator Escutia FEBRUARY 23, 2001 An act to amend Sections 60602 and 60614 of, and to add Section 60167 to, the Water Code, relating to water. LEGISLATIVE COUNSEL'S DIGEST SB 883, Escutia. Water replenishment districts. (1) The Water Replenishment District Act requires a water replenishment district to advertise for bids before making any contract totaling $25,000 or more within any 12-month period, but provides that in the case of an emergency, a district may enter into a contract without advertising for bids in accordance with specified provisions of law. This bill, if a proposed expenditure described in the annual district budget for any item of supplies or services equals or exceeds $25,000, would require that district to advertise for bids before making any contract for that item during the year to which that budget applies. The bill would authorize a district to enter into a contract without advertising for bids in the case of an emergency if the emergency relates to the repair or replacement of district facilities. The bill would exempt certain contracts from that advertising requirement. The bill would authorize the district to adopt other procurement, advertising, and bidding rules that are more restrictive than those contained in the Public Contract Code and would require those more restrictive rules to govern the procurement, advertising, and bidding practices of the district. The bill would prohibit a board member of a water replenishment district from making, or in any way attempting to use his or her official position to influence, a decision in which the board member knows or has reason to know that any of the relatives, as defined, or cohabitants, as defined, of the board member, whose financial interests are not otherwise regulated by the Political Reform Act of 1974, has a financial interest. By imposing requirements on a water replenishment district, the bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 60167 is added to the Water Code, to read: 60167. (a) In addition to the prohibitions set forth in the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code), a board member of a district may not make, or in any way attempt to use his or her official position to influence, a decision in which the board member knows, or has reason to know that any of the board member's relatives or cohabitants, whose interests are not otherwise regulated by that act, has a financial interest. (b) As used in this section, the following terms have the following meanings: (1) "Relative" means any person related to the board member by blood or adoption, including all relatives whose status is preceded by the words "step," "great," or "grand," or the spouse of any of these persons, even if the marriage was terminated by death or dissolution. (2) "Cohabitant" means any person who regularly resides in the board member's household or who uses the board member's residence address to receive mail. SEC. 2. Section 60602 of the Water Code is amended to read: 60602. (a) Before making any contract totaling twenty-five thousand dollars ($25,000) or more within any 12-month period, the district shall advertise for bids. (b) Notwithstanding subdivision (a), if a proposed expenditure described in the annual district budget for any item of supplies or services equals or exceeds twenty-five thousand dollars ($25,000), the district shall advertise for bids before making any contract for that item during the year to which that budget applies. (c) This section does not apply to any of the following contracts: (1) The recruitment, hiring, and dismissal of district employees and officers. (2) Contracts with other public entities pursuant to subdivision (i) of Section 60230. (3) Contracts for which only per diem and travel expenses are paid and there is no payment for services rendered. (4) Contracts solely for the purpose of retaining expert witnesses for litigation. (5) Contracts for proprietary information or systems. (6) Contracts for professional services, including, but not limited to, architectural, engineering, environmental, land surveying, or construction project management services, that are let on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required pursuant to Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code. (7) Contracts for legal services that are let on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services. (d) The district may adopt other procurement, advertising, and bidding rules that are more restrictive than those contained in the Public Contract Code and those more restrictive rules shall govern the procurement, advertising, and bidding practices of the district. SEC. 3. Section 60614 of the Water Code is amended to read: 60614. In case of an emergency relating to the repair or replacement of district facilities, if notice for bids to let contracts will not be given, the district shall comply with Chapter 2.5 (commencing with Section 22050) of the Public Contract Code. SEC. 4. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.