BILL NUMBER: SB 1613	CHAPTERED  09/26/08

	CHAPTER  357
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2008
	PASSED THE SENATE  AUGUST 21, 2008
	PASSED THE ASSEMBLY  AUGUST 12, 2008
	AMENDED IN ASSEMBLY  AUGUST 7, 2008
	AMENDED IN ASSEMBLY  JULY 3, 2008
	AMENDED IN ASSEMBLY  JUNE 12, 2008
	AMENDED IN SENATE  MAY 6, 2008

INTRODUCED BY   Senator Margett

                        FEBRUARY 22, 2008

   An act to add Section 136.6 to the Streets and Highways Code,
relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1613, Margett. Department of Transportation: contracts.
   Existing law generally requires contracts for public works to be
awarded pursuant to various procedures in the State Contract Act.
Existing law exempts certain types of contracts awarded by the
Department of Transportation from the State Contract Act, including
contracts for major damage mitigation, equipment leasing or renting,
and removal or relocation of structures or improvements on highway
rights-of-way. These exempt contracts are generally required to be
awarded to the lowest responsible bidder after competitive bidding on
any reasonable notice prescribed by the department, but only if the
estimated amount of the contract exceeds $2,500. Exempt contracts up
to and including $2,500 are not subject to those alternative bidding
procedures.
   This bill would provide that exempt contracts up to and including
$25,000 for the leasing or renting of operated heavy highway
equipment for state highway maintenance purposes are also not subject
to those alternative bidding procedures.


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

  SECTION 1.  Section 136.6 is added to the Streets and Highways
Code, to read:
   136.6.  (a) The department may enter into contracts not exceeding
twenty-five thousand dollars ($25,000) for the leasing and renting of
operated heavy highway equipment for state highway maintenance
purposes, which contracts are not subject to the State Contract Act
pursuant to subdivision (a) of Section 136.5, and the department is
not required to comply with the procedures described in subdivision
(a) of that section relative to those contracts. Contracts exceeding
twenty-five thousand dollars ($25,000) for the leasing and renting of
operated heavy highway equipment for state highway maintenance
purposes shall be subject to the procedures described in subdivision
(a) of Section 136.5.
   (b) For purposes of this section, "operated heavy highway
equipment" shall mean bulldozers, grinders, loaders, pavers, oilers,
rollers, excavators, truck tractors and trailers, fork lifts,
personnel lifts, sweepers, and water tankers that include within the
leasing or rental costs the cost of the qualified operator of the
equipment.
   (c) This section shall not apply to contracts for the leasing or
renting of operated heavy highway equipment for emergency work, which
are governed by subdivision (b) of Section 136.5. This section shall
not apply to the leasing or renting of operated heavy highway
equipment to be utilized for new highway construction.