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