BILL ANALYSIS                                                                                                                                                                                                    



                                                                            
         AB 635
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 635 (Accountability and Administrative Review Committee)
        As Amended  August 20, 2010
        2/3 vote.  Urgency
         
         
         ----------------------------------------------------------------- 
        |ASSEMBLY:  |     |(May 14, 2009)  |SENATE: |33-1 |(August 27,    |
        |           |     |                |        |     |2010)          |
         ----------------------------------------------------------------- 
             (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |10-0 |(August 30, 2010)   |RECOMMENDATION: |concur    |
        |                 |     |                    |                |          |
         ------------------------------------------------------------------------ 
         
         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,  








                                                                            
         AB 635
                                                                Page  2

             and appearance but not necessarily of an identical color;

           b)   The item will perform the intended function at least  
             equally well; and, 

           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,  








                                                                            
         AB 635
                                                                Page  3

             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. 

        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 wild land 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  








                                                                            
         AB 635
                                                                Page  4

        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 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: 0006845