BILL ANALYSIS AB 635 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 635 (Committee on Accountability and Administrative Review) As Amended August 20, 2010 2/3 vote. Urgency ----------------------------------------------------------------- |ASSEMBLY: | |(May 14, 2009) |SENATE: |33-1 |(August 27, | | | | | | |2010) | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: G.O. SUMMARY : Requires an architect, engineer, or roofing consultant to disclose financial relationships with persons in connection with a public school or community college roofing project contract, and redefines equal substitutes allowed for specific roofing materials. The Senate amendments delete the Assembly version of this bill, and instead: 1)Require an architect, engineer, or roofing consultant to disclose financial relationships with persons in connection with a public school or community college roofing project contract and to complete and sign a certification, as specified, stating that he or she has not received or will not receive or give financial incentives, to or from a person in connection with the roofing project contract, when a bid is awarded. 2)Impose a civil penalty of $1,000 against an architect, engineer, or roofing consultant who falsifies a certification or fails to disclose a financial relationship in a certification. 3)Define a roofing material as equal if all the following conditions are met: a) The item is at least equal in quality, durability, design, and appearance but not necessarily of an identical color; b) The item will perform the intended function at least equally well; and, AB 635 Page 2 c) The item conforms substantially, even with deviations, to the detailed requirements contained in the specifications. 4)Require that the specifications for any roof project be designed to promote competition. 5)Exempt school districts and community colleges from the provisions of this bill when emergency works of improvement are necessary. 6)Allow an individual to report bid rigging by involving local entities to the Attorney General or the Bureau of State Audits Whistleblower Hotline. 7)Define the following terms for the purposes of this bill: a) "Architect" means an architect who has a current license issued by the state; b) "District" means a school district with an average daily attendance greater than 2,500 or a community college district; c) "Engineer" means an engineer who has a current license issued by the state; d) "Public facility" means a public school or community college; e) "Roofing consultant" means a consultant who is registered by RCI (formerly Roof Consultants Institute); f) "Roof project" means a project for the replacement or repair of a roof of a public facility, except that "roof project" does not include a project for the repair of 25% or less of the roof or a repair project that has a total cost of $21,000 or less; and, g) "Substitute" or "substitution" means a material, product, thing, or service proposed by a bidder to be an adequate substitute material, product, thing, or service that is equal to an item designated in specifications. AB 635 Page 3 8)Add an urgency clause. EXISTING LAW : 1)Prohibits a state agency, political subdivision, municipal corporation, district, or public officer responsible for letting a public works contract from drafting bid specifications that limits the bidding to any one concern or product, unless the specification is followed by the words "or equal." 2)Requires that these bid specifications provide a period of time prior to or after, or prior to and after, the award of the contract to allow the contractor to submit data that demonstrates that a product or services to be provided under the contract is equal to the services or product identified in the bid specification. AS PASSED BY THE ASSEMBLY , this bill required that a state or local agency, including a city, county, city and county, or district, shall not prohibit a firefighter from using an air purifying device during a wildland fire. FISCAL EFFECT : Unknown. This bill is keyed non-fiscal. COMMENTS : This bill was substantially amended in the Senate and the Assembly-approved provisions of this bill were deleted. This bill, as amended in the Senate is inconsistent with Assembly Actions. This bill originated from a June 30, 2010 hearing held by the Assembly Accountability and Administrative Review Committee. The Committee found that there was limited competition in public projects to replace roofs because of alleged big rigging taking place that favored certain roofing material vendors, resulting in increased contract costs. Current law prohibits an entity letting a bid from requiring public works bid specifications that require specific brand materials or that limits bidding to one material, product, or service, unless an "or equal" clause is applied, allowing bidders to provide equal materials, products, or services as a substitute. The bid specifications must also provide a time period prior to, after, or prior to and after, the award of a contract, for a contractor to submit data substantiating that AB 635 Page 4 items are equal when requesting permission to use substitutes. If no time period is specified, data may be submitted any time within 35 days after the award of a contract. Existing law allows contractors who are not awarded a contract to file a bid protest. Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916) 319-3301 FN: 0006825