BILL NUMBER: SB 694 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2009
AMENDED IN SENATE MARCH 31, 2009
INTRODUCED BY Senator Correa
FEBRUARY 27, 2009
An act to add Chapter 1.9 (commencing with Section 21990) to Part
3 of Division 2 of the Public Contract Code, relating to public
contracts.
LEGISLATIVE COUNSEL'S DIGEST
SB 694, as amended, Correa. Public contracts: public works:
competitive bidding.
Existing law sets forth the requirements for the solicitation and
evaluation of bids and the awarding of contracts by public entities
for the erection, construction, alteration, repair, or improvement of
any public structure, building, road, or other public improvement.
This bill would set forth requirements for the solicitation and
evaluation of bids, and the awarding of contracts for the erection,
construction, alteration, repair or addition to any work
of improvement, estimated to cost more than $25,000, that is not
otherwise required to be performed under a competitively bid
contract, or is exempt from competitive bidding requirements, and
that is owned by, intended to be conveyed to, or financed by taxes,
assessments, or bonds of , a public entity other than a
state entity , as specified.
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. Chapter 1.9 (commencing with Section 21990) is added to
Part 3 of Division 2 of the Public Contract Code, to read:
CHAPTER 1.9. OTHER PUBLIC WORKS OF IMPROVEMENT
21990. This chapter shall apply to the erection, construction,
alteration, repair, or addition to any work of improvement estimated
to cost more than twenty-five thousand dollars ($25,000) that is not
otherwise required to be performed under a competitively bid
contract, or is otherwise specifically exempt from competitive
bidding requirements, by state law, or by the charter or an ordinance
of a city, city and county, or county, when the work of improvement
meets any of the following criteria:
(a) The work of improvement is owned by a public entity. For the
purposes of this chapter, public entity shall have the same meaning
as defined in Section 1100, but shall exclude a state entity.
(b) The work of improvement is intended to be conveyed to a public
entity within five years of completion of the work of improvement.
(c) The work of improvement is financed in substantial part by
money derived from taxes or assessments of, or bonds sold by or
guaranteed by, any public entity.
21991. A notice inviting bids for the project shall be published
at least once a week for two consecutive weeks or more, with the last
publication no less than 10 calendar days before the date of opening
the bids.
(a) The notice shall be published in a newspaper of general
circulation, printed and published in the county where the project is
located, or if the project is located in more than one county, in a
newspaper in the county where the major portion of the work is to be
done.
(b) The notice shall distinctly describe the project, state the
date, time, and place for the receipt and opening of sealed bids, and
note where plans and specifications for the project can be obtained.
21992. (a) No bids shall be accepted after the time stated in the
public notice for the receipt and opening of bids, and any bid
tendered after that time shall be returned, unopened, to the person
who tendered it. On the day stated in the public notice for the
receipt and opening of bids, all bids shall be publicly opened and
announced.
(b) All bids shall be made available during normal business hours
for inspection and copying by any person at the place where bids were
opened. Bids shall be available for inspection and copying for 90
days after the opening of bids.
21993. A public entity may reject all bids if all of the
following apply:
(a) Cogent and compelling reasons to reject all bids exist.
(b) Rejecting all bids is in the best interest of the public
entity involved.
(c) Rejecting all bids will not result in treating any of the
bidders in an unfair or unequal manner.
21994. The successful bidder shall provide appropriate bonds to
the public entity to insure the faithful performance of the contract
and the payment of subcontractors and suppliers.
21995. (a) The contract shall be awarded to the responsible
bidder who submits the lowest responsive bid.
(b) All contracts under this chapter shall comply with Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code.
SEC. 2. The Legislature hereby finds and declares all of the
following:
(a) That open, competitive bidding has proven to provide
construction services to the people of California at lower cost and
has protected taxpayers from the evils of favoritism, fraud, and
corruption in the awarding of public contracts. This act is not
intended to interfere with the operation of any statutes, charter
provisions, or ordinances that prescribe competitive bidding or
specifically exempt contracts from competitive bidding by prescribing
some other mode of procurement.
(b) That public works construction that is not otherwise
prescribed by statute, charter provision, or ordinance, is a matter
of statewide concern.
(b) That the awarding of contracts for the erection, construction,
alteration, repair, or addition to any work of improvement that is
not otherwise required to be performed under a competitively bid
contract, or is exempt from competitive bidding requirements, and
that is owned by, intended to be conveyed to, or financed by taxes,
assessments, or bonds of, a public entity other than a state entity,
as described in Chapter 1.9 (commencing with Section 21990) of Part 3
of Division 2 of the Public Contract Code, as added by Section 1 of
this act, is a matter of statewide concern, and not a municipal
affair, as that term is used in Section 5 of Article XI of the
California Constitution.
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.