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 formspecified by the entityprepared 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. TheDepartment of Industrial RelationsContractors State License Board , in collaboration with affected agencies and interested parties, shall developmodelguidelines forratingqualifying bidders, anddraftprepare the standardized questionnaire, thatmayshall be used by public entities for the purposes of this part. TheDepartmentof Industrial RelationsContractors 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 ofratingqualifying 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 ofratingqualifying 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 forone calendar yearthree 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.