BILL NUMBER: AB 1229	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Evans

                        FEBRUARY 27, 2009

   An act to amend Section 20101 of the Public Contract Code,
relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1229, as introduced, Evans. Public contracts: local public
agencies: prospective bidders.
   (1) Existing law authorizes, with a specified exception, a public
entity subject to specified laws governing public contracting by
local agencies to require that each prospective bidder for a contract
complete and submit to the entity a standardized questionnaire and
financial statement in a form specified by the entity, including a
complete statement of the prospective bidder's experience in
performing public works.
   This bill would, instead, require that the above-referenced
questionnaire and financial statement be in a form prepared and
provided to the public entity by the Contractors State License Board.

   (2) Existing law requires the Department of Industrial Relations,
in collaboration with affected agencies and interested parties, to
develop model guidelines for rating bidders, and to draft the
standardized questionnaire that may be used by public entities for
purposes of laws regulating local public works projects, and requires
the department, in developing the standarized questionnaire, to
consult with affected public agencies, cities and counties, the
construction industry, the surety industry, and other interested
parties.
   This bill would, instead, require the Contractors State License
Board, in collaboration with affected agencies and interested
parties, to develop guidelines for qualifying bidders, and prepare
the standardized questionnaire that shall be used by public entities
for purposes of laws regulating local public works projects, and
would require the Contractors State License Board, in developing or
revising the standardized questionnaire, to consult with affected
public agencies, cities and counties, the construction industry, the
surety industry, and other interested parties.
   (3) Existing law requires any public entity requiring prospective
bidders to complete and submit questionnaires and financial
statements, as described, and to adopt and apply a uniform system of
rating bidders on the basis of the completed questionnaires and
financial statements, and specifies that the uniform system of rating
prospective bidders shall be based on objective criteria.
   This bill would require any public entity requiring prospective
bidders to complete and submit questionnaires and financial
statements, as described, and to adopt and apply a uniform system of
qualifying bidders on the basis of the completed questionnaires and
financial statements, and would require that the uniform system of
qualifying prospective bidders be based on objective criteria, and
take into account factors including, but not limited to, the size and
contract volume of a prospective bidder so as to equally apply
qualifying factors on a weighted basis.
   (4) Existing law authorizes a public entity to establish a process
for prequalifying prospective bidders on a quarterly basis, and
provides that a prequalification pursuant to this process shall be
valid for one calendar year following the date of the initial
qualification.
   This bill would require that the prequalification pursuant to this
process be valid for 3 calendar years following the date of initial
prequalification if the public agency determines that the information
in the prequalifying questionnaire has not substantially changed
during the 3-year period. By imposing new duties on local agencies
with respect to the process for qualifying bidders, the bill would
impose a state-mandated local program.
   The bill would also require the Contractors State License Board to
develop and maintain a database of contractors and subcontractors
that are qualified to bid on a pubilc works projects that may be
accessed by public entities subject to the above public contracting
requirements.
   (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 20101 of the Public Contract Code is amended to
read:
   20101.  (a) Except as provided in Section 20111.5, a public entity
subject to this part may require that each prospective bidder for a
contract complete and submit to the entity a standardized
questionnaire and financial statement in a form  specified by
the entity   prepared and provided to the public entity
by the Contractors State License Board  , including a complete
statement of the prospective bidder's experience in performing public
works. The standardized questionnaire may not require prospective
bidders to disclose any violations of Chapter 1 (commencing with
Section 1720) of Part 7 of Division 2 of the Labor Code committed
prior to January 1, 1998, if a violation was based on a subcontractor'
s failure to comply with these provisions and the bidder had no
knowledge of the subcontractor's violations. The  Department
of Industrial Relations   Contractors State License
Board  , in collaboration with affected agencies and interested
parties, shall develop  model  guidelines for
 rating   qualifying  bidders, and 
draft   prepare  the standardized questionnaire,
that  may   shall  be used by public
entities for the purposes of this part. The  Departmentof
Industrial Relations   Contractors State License Board
 , in developing  or revising  the standardized
questionnaire, shall consult with affected public agencies, cities
and counties, the construction industry, the surety industry, and
other interested parties. The questionnaire and financial statement
shall be verified under oath by the bidder in the manner in which
civil pleadings in civil actions are verified. The questionnaires and
financial statements shall not be public records and shall not be
open to public inspection  ; however,   , except
that  records of the names of contractors applying for
prequalification status shall be public records subject to disclosure
under Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code.
   (b) Any public entity requiring prospective bidders to complete
and submit questionnaires and financial statements, as described in
subdivision (a), shall adopt and apply a uniform system of 
rating   qualifying  bidders on the basis of the
completed questionnaires and financial statements, in order to
determine both the minimum requirements permitted for qualification
to bid, and the type and size of the contracts upon which each bidder
shall be deemed qualified to bid. The uniform system of 
rating   qualifying  prospective bidders shall be
based on objective criteria  , and shall take into account
factors including, but not limited to, the size and contract volume
of a prospective bidder, so as to equally apply factors used to
determine the qualifications of a bidder on a weighted basis  .
   (c) A public entity may establish a process for prequalifying
prospective bidders pursuant to this section on a quarterly basis and
a prequalification pursuant to this process shall be valid for
 one calendar year   three calendar years 
following the date of initial prequalification  if the public
entity determines that the information in the prequalifying
questionnaire has not substantially changed during the three- 
 year period of time  .
   (d) Any public entity requiring prospective bidders on a public
works project to prequalify pursuant to this section shall establish
a process that will allow prospective bidders to dispute their
proposed prequalification rating prior to the closing time for
receipt of bids. The appeal process shall include the following:
   (1) Upon request of the prospective bidder, the public entity
shall provide notification to the prospective bidder in writing of
the basis for the prospective bidder's disqualification and any
supporting evidence that has been received from others or adduced as
a result of an investigation by the public entity.
   (2) The prospective bidder shall be given the opportunity to rebut
any evidence used as a basis for disqualification and to present
evidence to the public entity as to why the prospective bidder should
be found qualified.
   (3) If the prospective bidder chooses not to avail itself of this
process, the proposed prequalification rating may be adopted without
further proceedings.
   (e) For the purposes of subdivision (a), a financial statement
shall not be required from a contractor who has qualified as a Small
Business Administration entity pursuant to paragraph (1) of
subdivision (d) of Section 14837 of the Government Code, when the bid
is no more than 25 percent of the qualifying amount provided in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
   (f) Nothing in this section shall preclude an awarding agency from
prequalifying or disqualifying a subcontractor. The disqualification
of a subcontractor by an awarding agency does not disqualify an
otherwise prequalified contractor. 
   (g) The Contractors State License Board shall develop and maintain
a database of contractors and subcontractors that are qualified to
bid on a public works project that may be accessed by public entities
subject to this part. 
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.