BILL NUMBER: AB 2181 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 12, 2010
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 amended, Hagman. State Contract Act: contracting by
state agencies.
The State Contract Act requires projects that are not under the
jurisdiction of specified departments to be under the charge and
control of the Department of Transportation.
This bill would instead have those projects under the charge and
control of the Department of General Services.
Existing law
The State Contract Act authorizes the
Department of General Services those departments
, 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 majority . 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 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 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 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 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, the Department of
Transportation, or the Military Department, the project shall be
under the sole charge and direct control of the Department of 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 eight hundred thousand dollars ($800,000), except that the
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 seventy-eight
thousand dollars ($78,000) twenty-five thousand
dollars ($25,000) , 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 seventy-eight
thousand dollars ($78,000) twenty-five thousand
dollars ($25,000) 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
one hundred fifty-five thousand dollars ($155,000). This limit shall
be adjusted pursuant to subdivision (b) of Section 10105.
fifty thousand dollars ($50,000) in the case of district
agricultural association fair projects, or thirty-five thousand
dollars ($35,000) in other cases.
SEC. 4. Section 10108.5 of the Public Contract
Code is repealed.
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.