BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 815
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 815 (Ma) 
          As Amended  June 1, 2009
          Majority vote 

           JUDICIARY           10-0        LOCAL GOVERNMENT    6-0         
           
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          |Ayes:|Feuer, Tran, Brownley,    |Ayes:|Caballero, Knight,        |
          |     |Skinner, Jones, Knight,   |     |Arambula, Davis, Duvall,  |
          |     |Krekorian, Lieu, Monning, |     |Skinner                   |
          |     |Nielsen                   |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Clarifies that nothing in existing law shall be  
          construed to prohibit a local public entity from requiring a  
          bidder to review all relevant bid documents provided by the  
          local public entity, including but not limited to 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.  
           
          EXISTING LAW  :  
          
          1)Prohibits a local public entity, charter city, or charter  
            county, from requiring a bidder on a public works project 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.  

          3)With respect to state agencies, provides that before entering  
            into any contract for a project, the department shall prepare  
            full, complete, and accurate plans and specifications and  
            estimates of cost, giving such directions as will enable any  
            competent mechanic or other builder to carry them out.  

           FISCAL EFFECT  :  None








                                                                  AB 815
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          COMMENTS  :  This bill currently contains interim language to  
          clarify that nothing in existing law shall be construed to  
          prohibit a local public entity from requiring a bidder to review  
          all relevant bid documents provided by the local public entity,  
          including but not limited to 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.  

          A substantive proposal on the larger issue of the rights and  
          responsibilities of local governments and their contractors  
          regarding responsibility for review of plans and specifications  
          was put forward last year in AB 983 (Ma).  That measure 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.

               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.

          In anticipation of a possible ruling by the court during this  
          legislative session, the author initially re-introduced a  
          substantively similar proposal in this bill.  In light of the  
          prior veto and the substantial opposition, however, and in order  
          to allow the bill to meet legislative deadlines while  
          maintaining flexibility regarding the precise proposal that may  
          be needed to respond to the important issues raised by the case,  
          depending on the outcome of Supreme Court's decision, the author  
          has agreed to the current provision as a placeholder and had  
          pledged not to move the bill forward in the Senate, if at all,  
          unless and until the court issues its ruling in the pending  
          case.


           Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334 








                                                                  AB 815
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