BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 815
                                                                  Page  1

          Date of Hearing:  May 13, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                        AB 815 (Ma) - As Amended:  May 6, 2009
           
          SUBJECT  :  Public contracts: bidding procedures.

           SUMMARY  :  Expresses the intent of the Legislature to consider  
          the issues raised in Los Angeles Unified School District v.  
          Great American Ins. Co. (2008) 163 Cal. App. 4th 944, review  
          granted, 193 P.3d 280; 84 Cal. Rptr. 3d 35 (2008) as needed once  
          they are ripe for consideration after the California Supreme  
          Court has rendered a decision interpreting the parties' rights  
          and obligations under existing law. 

           EXISTING LAW  :

          1)Prohibits a local public entity, charter city, or charter  
            county from requiring a bidder to assume responsibility for  
            the completeness and accuracy of architectural or engineering  
            plans and specifications on public works projects, except on  
            clearly designated design-build projects.

          2)Permits a local public entity, charter city, or charter county  
            to require a bidder to review architectural or engineering  
            plans and specifications prior to submission of a bid, and  
            report any errors and omissions noted by the contractor to the  
            architect or owner.

           FISCAL EFFECT  :   None

           COMMENTS  :   

          1)AB 983 (Ma) of 2008, which would have revised the respective  
            responsibilities of contractors and local governmental  
            entities regarding construction plans and specifications, was  
            vetoed by the Governor with the following message:

            "This bill would require a local public entity before entering  
            into a design-bid-build contract, to provide full, complete,  
            and accurate plans, specifications and estimates of cost that  
            would enable any competent mechanic or other builder to carry  
            them out.









                                                                  AB 815
                                                                  Page  2

            This bill is premature.  The California Supreme Court recently  
            agreed to review the case, Los Angeles Unified School District  
            v. Great American Insurance Co., et. al., that involves the  
            issues raised by this bill.  I believe it is prudent for the  
            court to rule on current law before making any unnecessary or  
            ill-advised changes."

          2)In anticipation of a possible ruling by the California Supreme  
            Court during this legislative session, the author has  
            introduced AB 815 with intent language.  AB 815 is a  
            placeholder in case the author wants to propose legislative  
            changes based on the California Supreme Court's decision.


           3)TECHNICAL AMENDMENT  :  On page 2, strike out lines 8 to 21,  
            inclusive, and strike out page 3.

          4)This bill was heard by the Judiciary Committee on May 5, 2009,  
            where it passed with a 
          10-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Associated General Contractors of CA
          Associated General Contractors of San Diego
          CA Chapters of the National Electrical Contractors Association
          CA Legislative Conference of the Plumbing, Heating and Piping  
          Industry
          CA Sheet Metal and Air Conditioning Contractors, National  
          Association
          Construction Employers' Association
          Engineering Contractors' Association
          Engineering and Utility Contractors Association
          Southern CA Contractors Association
          State Building and Construction Trades Council of CA

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Jennifer R. Klein / L. GOV. / (916)  
          319-3958