BILL NUMBER: SB 258 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 21, 2009
INTRODUCED BY Senator Oropeza
FEBRUARY 24, 2009
An act to add Sections 7058.1, 7058.2, and 7138.2 to the Business
and Professions Code, relating to contractors, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 258, as amended, Oropeza. Contractors: public works.
Existing law, the Contractors' State License Law, provides for the
licensure and regulation of contractors by the Contractors' State
License Board. Existing law authorizes the board to set application,
licensure, and renewal fees, among others, not to exceed certain
limits, and provides for the deposit of those fees in the Contractors'
License Fund, a continuously appropriated fund. Existing law
requires contractors to obtain special certifications in
order to perform asbestos-related work or to engage in hazardous
substance removal or remedial action, as specified
requires the awarding authority to determine the license
classification necessary to bid and perform on public works
contracts, as defined .
This bill would, on and after January 1, 2012, prohibit a
contractor from performing work as a contractor or subcontractor on a
public work, as defined, contracted for by the state or a state
agency unless he or she has obtained a public works certification
from the board a state certifying agency to
be determined by the Legislature . The bill would require the
qualifier for a license to pass a public works certification
examination in order to obtain that certification. The bill would
require the board to develop the examination
certifying agency to establish and validate standards of competency
through a prequalification certification system by January 1,
2011 , and would specify the subjects that the examination
must cover . The bill would authorize the board to
deny or revoke a certification if the contractor fails or has failed
to comply with the laws or regulations applicable to public works or
commits or has committed other specified acts. The
certifying agency would also be authorized to deny or revoke a public
works certification under specified circumstances. The bill
would authorize require the
board agency to charge each applicant a fee in
an amount sufficient to pay for the costs of administering the
examination prequalification and
certification , not to exceed certain amounts, as specified.
The bill would also create the continuously appropriated Public
Works Certification Fund within the State Treasury in which fee
moneys would be deposited and used only for these purposes.
Because the bill would increase the amount of moneys to
be deposited in create a continuously
appropriated fund, the bill would make an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7058.1 is added to the
Business and Professions Code , to read:
7058.1. (a) To promote the safety of California's publicly owned
facilities and to ensure the best use of California tax dollars it is
the intent of the Legislature to certify that only the most
qualified contractors perform on public works projects.
(b) On and after January 1, 2012, a contractor shall not perform
work as a contractor or subcontractor on a public work that is
contracted for by the state or a state agency or any other public
agency unless the contractor has obtained a public works
certification from a state certifying agency to be determined by the
Legislature. To obtain a public works certification, the qualifier
for a license shall submit to the certifying agency the public works
certification prequalification document developed pursuant to Section
7058.2 and administered by the certifying agency and receive
certification from the certifying agency.
(c) This section shall not be construed to affect the requirements
imposed by subdivision (b) of Section 7059.
(d) This section shall not be construed to restrict the state or
any other public agency from imposing additional requirements on
contractors in awarding public works contracts.
(e) The certifying agency may deny or revoke a public works
certification if the contractor fails or has failed to comply with
the laws or regulations applicable to public works or if the
contractor commits or has committed any of the acts constituting
grounds for denial of a license under Section 480. Procedures upon
denial of a public works certification shall be conducted in
accordance with Section 485. Procedures for revocation of a public
works certification shall be conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
(f) This section shall not be construed as expanding the
enforcement authority of the agency.
(g) "Public agency," for purposes of this chapter, means a city,
county, city and county, including chartered cities and chartered
counties, the University of California and any special district, and
any other political subdivision of the state for the local
performance of governmental or proprietary functions within limited
boundaries. "Public agency" also includes a nonprofit transit
corporation wholly owned by a public agency and formed to carry out
the purposes of the public agency.
(h) For purposes of this section, "public work" means any work
that is subject to the requirements of Chapter 1 (commencing with
Section 1720) of Part 7 of Division 2 of the Labor Code.
SEC. 2. Section 7058.2 is added to the
Business and Professions Code , to read:
7058.2. (a) The certifying agency shall do all of the following:
(1) On or before January 1, 2011, establish and validate minimum
standards for the competency and prequalification of all contractors
performing work on public works projects through a system of
prequalification certification pursuant to Section 7058.1.
(2) On or before March 1, 2010, establish advisory committees and
panels as necessary to carry out the functions under this section.
There shall be contractor representation from both the general
contractor community and the subcontractor community with at least
one representative from the following organizations on all committees
or panels: Associated General Contractors, Construction Employers
Association, California Legislative Conference of the Plumbing,
Heating and Piping Industry, and the National Electrical Contractors
Association. In addition there shall be at least one representative
from organized labor on any committee or panel. This labor position
shall be the designee of the California Building and Construction
Trades Council.
(3) On or before January 1, 2011, establish fees necessary to
implement this section and charge each applicant for a public works
certification the determined fee.
(4) On or before July 1, 2011, establish and adopt regulations to
enforce this section.
(5) Issue certification cards to contractors who have been
prequalified and certified pursuant to this section.
(6) Fees collected pursuant to paragraph (3) shall be deposited in
the Public Works Certifcation Fund.
(7) Make information on contractors certified pursuant to this
section publicly available.
(b) The public works prequalification certification shall be
developed according to professionally accepted principles for
prequalification and should adhere as closely as possible to the
guidelines set forth in Section 20101 of the Public Contract Code.
The certification shall not be based on a per-project basis and shall
be based on a per-applicant basis.
SEC. 3. Section 7138.2 is added to the
Business and Professions Code , to read:
7138.2. (a) In addition to the fee schedule specified in Section
7137, the application fee for a public works certification
examination, until December 31, 2014, shall not be more than
sixty-five dollars ($65), and on and after January 1, 2015, shall not
be more than one hundred twenty-five dollars ($125). Sections 7138
and 7138.1 shall apply to this section. Those fees shall be deposited
in the Public Works Certification Fund.
(b) The Public Works Certification Fund is hereby created as a
special account within the State Treasury. Notwithstanding Section
13340 of the Government Code, money in the fund is continuously
appropriated to the certifying agency for the costs of the agency to
prequalify and certify contractors and subcontractors pursuant to
Section 7058.1, and to pay for the costs of issuing certification
cards under Section 7058.2, and shall not be used for any other
purpose.
(c) The fund shall consist of the fees collected pursuant to
paragraph (3) of subdivision (a) of Section 7058.2 and subdivision
(a) of this section.
SECTION 1. Section 7058.1 is added to the
Business and Professions Code, to read:
7058.1. (a) On and after January 1, 2012, a contractor shall not
perform work as a contractor or subcontractor on a public work that
is contracted for by the state or a state agency unless the
contractor has obtained a public works certification from the board.
To obtain a public works certification, the qualifier for the license
shall pass a public works certification examination developed
pursuant to Section 7058.2 and administered by the board. Additional
updated examinations may be required based on material changes in the
legal obligations of public works contractors.
(b) The board shall charge each applicant for a public works
certification a fee to take the examination specified in subdivision
(a) in an amount sufficient to pay for the costs of administering
that examination, as specified in Section 7138.2.
(c) The board shall make information on contractors certified
pursuant to this section publicly available.
(d) This section shall not be construed to affect the requirements
imposed by subdivision (b) of Section 7059.
(e) This section shall not be construed to restrict the state or
any other awarding authority from imposing additional requirements on
contractors in awarding public works contracts.
(f) The board may deny or revoke a public works certification if
the contractor fails or has failed to comply with the laws or
regulations applicable to public works or if the contractor commits
or has committed any of the acts constituting grounds for denial of a
license under Section 480. Procedures upon denial of a public works
certification shall be conducted in accordance with Section 485.
Procedures for revocation of a public works certification shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code.
(g) This section shall not be construed as expanding the
enforcement authority of the board.
(h) For purposes of this section, "public work" means any work
that is subject to the requirements of Chapter 1 (commencing with
Section 1720) of Part 7 of Division 2 of the Labor Code.
SEC. 2. Section 7058.2 is added to the Business
and Professions Code, to read:
7058.2. (a) On or before January 1, 2011, the board shall develop
a written examination for the certification of contractors engaged
in public work pursuant to Section 7058.1. The examination shall be
developed according to professionally accepted principles for
licensing examinations and with the assistance of subject matter
experts provided by the Department of Industrial Relations, subject
matter experts selected from state agencies that award public work
contracts, selected labor organization representatives, and selected
licensed contractors engaged in public work. The examination shall
cover the laws and regulations applicable to public works, including,
but not limited to, all of the following:
(1) The requirements of Article 2 (commencing with Section 1770)
of Chapter 1 of Part 7 of Division 2 of the Labor Code.
(2) The requirements of Section 4104 of the Public Contract Code.
(3) The requirements of the State Contract Act (Chapter 1
(commencing with Section 10100) of Part 2 of Division 2 of the Public
Contract Code).
(b) This section shall not be construed as expanding the
enforcement authority of the board.
(c) For purposes of this section, "public work" means any work
that is subject to the requirements of Chapter 1 (commencing with
Section 1720) of Part 7 of Division 2 of the Labor Code.
SEC. 3. Section 7138.2 is added to the Business
and Professions Code, to read:
7138.2. In addition to the fee schedule specified in Section
7137, the application fee for a public works certification
examination, until December 31, 2014, shall not be more than
sixty-five dollars ($65), and on and after January 1, 2015, shall not
be more than one hundred twenty-five dollars ($125). Sections 7138
and 7138.1 shall apply to this section.