BILL NUMBER: SB 694	AMENDED
	BILL TEXT

	AMENDED IN SENATE  DECEMBER 15, 2009
	AMENDED IN SENATE  MAY 4, 2009
	AMENDED IN SENATE  APRIL 13, 2009
	AMENDED IN SENATE  MARCH 31, 2009

INTRODUCED BY   Senator Correa

                        FEBRUARY 27, 2009

   An act  to amend Section 22043 of, and to add Section 22015.5
to, the Public Contract Code,   relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 694, as amended, Correa. Public contracts: public works:
competitive bidding:  legislative intent.  
procedures.  
   Existing law allows a public agency to elect to be subject to the
Uniform Public Construction Cost Accounting Act, which authorizes
bidding procedures for public projects, as specified. The act
establishes the California Uniform Construction Cost Accounting
Commission, which is charged with specified duties, including
recommending for adoption by the Controller uniform construction cost
accounting procedures for implementation by public agencies in the
performance of, or in contracting for, construction on public
projects. Under the act, each commission member serves without
compensation, but is required to be reimbursed for travel and other
expenses incurred, and the commission is authorized to accept grants
from federal, state, or local public agencies, or private foundations
or individuals, to assist it in carrying out its duties.  
   This bill would authorize the commission to establish and impose
reasonable fees upon the public agencies that have elected to be
subject to the uniform construction cost accounting procedures. The
bill would require the commission to establish the fees or dues in a
manner that ensures that the total amount collected equals the amount
reasonably necessary to cover the commission's costs in performing
its administrative duties.  
   Existing law requires the commission to review the accounting
procedures of any participating public agency upon evidence of an
interested party that the work undertaken by the public agency (1) is
to be performed by the public agency after rejection of all bids,
claiming work can be done less expensively by the public agency; (2)
has exceeded the force account limits; or (3) has been improperly
classified as maintenance. In any of those circumstances, a request
for commission review may be made and the commission is required to
commence review immediately and conclude within 30 days from the
receipt of the request.  
   This bill would extend the time for commission review to 45 days
for a review of a public agency project that is to be performed after
rejection of all bids, and to 90 days for a review of work for which
evidence was provided that the work has exceeded the force account
limits or has been improperly classified as maintenance. 

   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 declare the intent of the Legislature to enact
subsequent legislation that would address issues relating to the
competitive bidding process for public contracts, and would make
legislative findings and declarations in that regard. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 22015.5 is added to the 
 Public Contract Code   , to read:  
   22015.5.  The commission shall have the authority to establish and
impose reasonable fees upon the public agencies that have elected to
be subject to the uniform construction cost accounting procedures.
The commission shall establish the fees in a manner that ensures that
the total amount collected equals the amount reasonably necessary to
cover the commission's costs in performing its administrative duties
under this chapter. 
   SEC. 2.    Section 22043 of the   Public
Contract Code   is amended to read: 
   22043.   (a)    In those circumstances 
as  set forth in subdivision (a) of Section 22042, a request
for commission review shall be in writing, sent by certified or
registered mail received by the commission postmarked not later than
five business days from the date the public agency has rejected all
bids.  In 
    (b)     In  those circumstances set
forth in subdivision (b) or (c) of Section 22042, a request for
commission review shall be by letter received by the commission not
later than five days from the date an interested party formally
complains to the public agency.  The 
    (c)     The  commission review shall
commence immediately and conclude within  30  
the following number of  days from the receipt of the request
for commission review  .   :  
   (1) Forty-five days for a review that falls within subdivision (a)
of Section 22042. 
    (2)     Ninety days for a review that falls
within subdivision (b) or (c) of Section 22042.  
During 
    (d)     During  the review of a
project that falls within subdivision (a) of Section 22042, the
agency shall not proceed on the project until a final decision is
received by the commission. 
  SECTION 1.    The Legislature finds and declares
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.
   (b) This act is not intended to interfere with the operation of
any statutes, charter provisions, or ordinances that prescribe
competitive bidding, or that specifically exempt contracts from
competitive bidding by prescribing some other mode of procurement.
 
  SEC. 2.    It is the intent of the Legislature to
enact subsequent legislation that would address issues relating to
the competitive bidding process for public contracts.