BILL NUMBER: SB 258 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 10, 2010
AMENDED IN SENATE MAY 14, 2009
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
An act to amend Section 20111.5 of, and to add Section 20111.6 to,
the Public Contract Code, relating to public contracts .
LEGISLATIVE COUNSEL'S DIGEST
SB 258, as amended, Oropeza. Contractors: public works.
Public contracts: school districts: bidding
requirements.
Under existing law, the governing board of a school district may
require each prospective bidder for certain contracts involving an
expenditure of more than $50,000 to submit a standardized
questionnaire and financial statement, including information relating
to financial ability and experience in performing public works.
Existing law further requires a school district requiring the above
information to adopt and apply a uniform system of rating bidders on
the basis of the completed questionnaires and financial statements,
as specified.
This bill would require the questionnaire and the uniform system
of rating bidders described above to contain, at a minimum,
substantially similar information, questions, and requirements as
that of the standardized questionnaire and model guidelines for
rating bidders developed by the Department of Industrial Relations
for public entities, as specified.
The bill would also require the governing board of a school
district, for contracts involving projects valued at $1,000,000 or
more, if the district chooses not to follow specified bidding
procedures for school districts, to use other procedures for bidding
applicable to public entities, as prescribed. By imposing new duties
on local officials, the bill would create a state-mandated local
program.
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.
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 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 a state certifying agency to be determined by the Legislature.
The bill would require the certifying agency to establish and
validate standards of competency through a prequalification
certification system by January 1, 2011. The certifying agency would
also be authorized to deny or revoke a public works certification
under specified circumstances. The bill would require the agency to
charge each applicant a fee in an amount sufficient to pay for the
costs of administering the prequalification and certification, not to
exceed certain amounts, as specified. The bill would also create the
Public Works Certification Fund within the State Treasury in which
fee moneys would be deposited and used only for these purposes upon
appropriation by the Legislature.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20111.5 of the
Public Contract Code is amended to read:
20111.5. (a) The governing board of the district may require that
each prospective bidder for a contract, as described under Section
20111, complete and submit to the district a standardized
questionnaire and financial statement in a form specified by the
district, including a complete statement of the prospective bidder's
financial ability and experience in performing public works. 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.
(b) Any school district 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
bidders on the basis of the completed questionnaires and financial
statements, in order to determine the size of the contracts upon
which each bidder shall be deemed qualified to bid.
(c) The questionnaire described in subdivision (a), and the
uniform system of rating bidders described in subdivision (b), shall
contain, at a minimum, substantially similar information, questions,
and requirements as that of the standardized questionnaire and model
guidelines for rating bidders developed by the Department of
Industrial Relations pursuant to subdivision (a) of Section 20101.
(c)
(d) Each prospective bidder on any contract described
under Section 20111 shall be furnished by the school district letting
the contract with a standardized proposal form that, when completed
and executed, shall be submitted as his or her bid. Bids not
presented on the forms so furnished shall be disregarded.
(d)
(e) A proposal form required pursuant to subdivision
(c) (d) shall not be accepted from any
person or other entity who is required to submit a completed
questionnaire and financial statement for prequalification pursuant
to subdivision (a), but has not done so at least five days prior to
the date fixed for the public opening of sealed bids or has not been
prequalified, pursuant to subdivision (b), for at least one day prior
to that date.
(e)
(f) Notwithstanding subdivision (d)
(e) , any school district may establish a process for
prequalifying prospective bidders pursuant to this section on a
quarterly basis and may authorize that prequalification to be
considered valid for up to one calendar year following the date of
initial prequalification.
SEC. 2. Section 20111.6 is added to the
Public Contract Code , to read:
20111.6. (a) This section shall apply only to public projects, as
defined in subdivision (c) of Section 22002, involving an
expenditure of one million dollars ($1,000,000) or more.
(b) If the governing board of the district does not utilize the
procedures set forth in Section 20111.5 for a contract meeting the
criteria of subdivision (a), then the governing board of the district
shall use the procedures for qualification of bidders set forth in
Section 20101.
SEC. 3. 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.
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) Deposit fees collected pursuant to paragraph (3) 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. Upon appropriation by the
Legislature to the certifying agency, money in the fund may be used
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.