BILL NUMBER: AB 2181	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 18, 2010

   An act to amend Sections 10106, 10107, and 10108 of, and to repeal
Section 10108.5 of, the Public Contract Code, relating to public
contracts, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2181, as introduced, Hagman. State Contract Act: contracting by
state agencies.
   Existing law authorizes the Department of General Services, where
the nature of the work in the opinion of the department is such that
its services in connection with a project are not required, to permit
the carrying out of the project directly by the state agency
concerned with the project, if the estimated project cost does not
exceed $400,000, except as provided.
   This bill would increase that cost limit to $800,000, as provided.

   Existing law requires the district or agency, if the total cost of
any construction project or work carried out pursuant to those
public contract provisions exceeds $25,000, to solicit written bids
and let the contract to the lowest responsible bidder or reject all
bids. Existing law authorizes the Director of General Services to
authorize the district or agency to carryout work in excess of
$25,000 by day labor if he or she deems that the award of a contract,
the acceptance of bids, or the acceptance of further bids is not in
the best interests of the state, but, prohibits the amount of work on
a contract performed by day labor from exceeding $50,000 for
district agricultural association fair projects, or $35,000 in other
cases.
   This bill would increase to $78,000 maximum cost of a project for
which the district or agency would not be required to solicit written
bids and let the contract to the lowest responsible bidder, and
would prohibit the use of day labor on work that exceeds the sum of
$155,000, as provided.
   Existing law allows the department to authorize a board,
commission, or conservancy within the Resources Agency, when the
nature of the work by departments, boards, commissions, or
conservancies within the Resources Agency, in the opinion of the
department, is such that its services are not required, to carry out
a project, as long as the estimated project costs do not exceed
$500,000, and allows the State Coastal Conservancy, with the approval
of the department, to directly carry out a public works project
involving habitat or wetlands restoration and certain improvements
other than buildings and nonaccess related structures, on specified
state-owned lands.
   Existing law requires the Department of Forestry and Fire
Protection to solicit bids in writing and award the work to the
lowest responsible bidder or reject all bids if the estimated cost of
construction project or work caused cut pursuant to these provisions
exceeds $50,000.
   This bill would repeal those provisions.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 10106 of the Public Contract Code is amended to
read:
   10106.  For purposes of this  part   chapter
 :
   (a) "Department" means any of the following:
   (1) The Department of Water Resources as to any project under the
jurisdiction of that department.
   (2) The Department of  General Services  
Transportation  as to any project under the jurisdiction of that
department.
   (3) The Department of Boating and Waterways as to any project
under the jurisdiction of that department pursuant to Article 2.5
(commencing with Section 65) of Chapter 2 of Division 1 of the
Harbors and Navigation Code.
   (4) The Department of Corrections and Rehabilitation with respect
to any project under its jurisdiction pursuant to Chapter 11
(commencing with Section 7000) of Title 7 of Part 3 of the Penal
Code.
   (5) The Military Department as to any project under the
jurisdiction of that department.
   (6) The Department of  Transportation  
General Services  as to all other projects.
   (b) "Director" means the director of each department as defined
herein respectively.
  SEC. 2.  Section 10107 of the Public Contract Code is amended to
read:
   10107.  Whenever provision is made by law for any project 
which   that  is not under the jurisdiction of the
Department of Water Resources, the Department of Boating and
Waterways pursuant to Article 2.5 (commencing with Section 65) of
Chapter 2 of Division 1 of the Harbors and Navigation Code, the
Department of Corrections  and Rehabilitation  pursuant to
Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the
Penal Code,  or  the Department of  General
Services  Transportation, or the Military Department
 , the project shall be under the sole charge and direct control
of the Department of  Transportation   General
Services  .
  SEC. 3.  Section 10108 of the Public Contract Code is amended to
read:
   10108.  Where the nature of the work in the opinion of the
department is such that its services in connection therewith are not
required, it may authorize the carrying out of the project directly
by the state agency concerned therewith if the estimated cost does
not exceed  four hundred thousand dollars ($400,000)
  eight hundred thousand dollars ($800,000)  ,
except that the  four hundred thousand dollars ($400,000)
  eight hundred thousand dollar ($800,000) 
limitation shall not apply to a project of a district agricultural
association or a project of the State Lands Commission.  Any
capital outlay project with a total value that does not exceed eight
hundred thousand dollars ($800,000) may be budgeted as a minor
capital outlay project. This limit shall be adjusted pursuant to
subdivision (b) of Section 10105. 
   If the estimated total cost of any construction project or work
carried out under this section exceeds  twenty-five thousand
dollars ($25,000)   seventy-eight thousand dollars
($78,000)  , the district or agency shall solicit bids in
writing and shall award the work to the lowest responsible bidder or
reject all bids. However, the director may authorize the district or
agency to carry out work in excess of  twenty-five thousand
dollars ($25,000)   seventy-eight thousand dollars
($78,000)  under the provisions of this section by day labor if
he or she deems that the award of a contract, the acceptance of bids,
or the acceptance of further bids is not in the best interests of
the state. In no event shall the amount of work performed by day
labor under this section exceed the sum of  fifty thousand
dollars ($50,000) in the case of district agricultural association
fair projects, or thirty-five thousand dollars ($35,000) in other
cases   one hundred fifty-five thousand  
dollars ($155,000). This limit shall be adjusted pursuant to
subdivision (b) of Section 10105  .
  SEC. 4.  Section 10108.5 of the Public Contract Code is repealed.

   10108.5.  (a) When the nature of the work by departments, boards,
commissions, or conservancies within the Resources Agency, in the
opinion of the Department of General Services, is such that its
services in connection therewith are not required, it may authorize
the carrying out of the project directly by the department within the
Resources Agency concerned therewith if the estimated cost does not
exceed five hundred thousand dollars ($500,000). This limit shall be
adjusted pursuant to subdivision (b) of Section 10105.
   (b) If the estimated total cost of any construction project or
work carried out under this section exceeds fifty thousand dollars
($50,000), the Department of Forestry and Fire Protection shall
solicit bids in writing and shall award the work to the lowest
responsible bidder or reject all bids. However, the Director of
General Services may authorize the Department of Forestry and Fire
Protection to carry out work in excess of fifty thousand dollars
($50,000) under this section by day labor if he or she deems that the
award of a contract, the acceptance of bids, or the acceptance of
further bids is not in the best interests of the state. However, in
no event shall the amount of work performed by day labor under this
section exceed the sum of one hundred thousand dollars ($100,000).
This limit shall be adjusted pursuant to subdivision (b) of Section
10105.
   (c) Notwithstanding the cost limitation of subdivision (a), the
State Coastal Conservancy may, if authorized by the Department of
General Services as described in subdivision (a), directly carry out
a public works project involving habitat or wetlands restoration and
related pedestrian or cycling access improvements, not including
buildings or other nonaccess related structures on the following
state-owned lands: Bel Marin Keys Unit V in Marin County, Eden
Landing Ecological Reserve (a part of the South Bay Salt Pond
Restoration Project) in Alameda County, Bair Island Ecological
Reserve in San Mateo County, Napa Sonoma Marshes State Wildlife Area
in Napa, Solano, and Sonoma Counties, Ballona Wetlands Ecological
Reserve in Los Angeles County, Buena Vista Lagoon Ecological Reserve
in San Diego County, Los Penasquitos Marsh in Torrey Pines State
Natural Reserve in San Diego County, and Tijuana Estuary State Park
in San Diego County. In carrying out a public works project pursuant
to this subdivision, the State Coastal Conservancy shall comply with
the provisions of, and regulations adopted pursuant to, this chapter.

  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to implement the statutory changes necessary to implement
the 2009-10 and the 2010-11 Governor's Budget, in a timely manner,
it is necessary that this act take effect immediately.