BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 694| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 694 Author: Correa (D) Amended: 1/12/10 Vote: 21 SENATE LOCAL GOVERNMENT COMMITTEE : 3-0, 1/6/10 AYES: Cox, Aanestad, Kehoe SUBJECT : Public contracts: public works: competitive bidding: procedures SOURCE : Author DIGEST : This bill extends the time limit for the California Uniform Construction Cost Accounting Commission to review and act on disputes over whether local agencies have followed the Uniform Public Contract Construction Cost Accounting Act. For complaints which allege that local officials rejected all bids and instead claimed that the agency can do the work less expensively, this bill extends the time limit from 30 days to 45 days. For complaints which allege that local officials have either exceeded the force accounts or improperly classified the work as maintenance, this bill extends the time limit from 30 days to 90 days. ANALYSIS : Existing law allows a public agency to elect to be subject to the Uniform Public Construction Cost Accounting Act (Act). CONTINUED SB 694 Page 2 The Public Contract Code spells out the procedures that local officials follow when they build public works projects, including limits on the contracts' values. When counties, cities, special districts, redevelopment agencies, school districts, and community college districts voluntarily adopt the standards and procedures of the Act, they can use higher limits for their contracts. The State Controller must tell local agencies about the Act's benefits (AB 1047 [Houston], Chapter 144, Statutes of 2007). Approximately 700 local agencies participate. A 14-member California Uniform Construction Cost Accounting Commission reviews the statutory limits every five years. If the Commission recommends higher amounts, the State Controller promulgates the changes and the Legislature periodically amends the Act to reflect the new limits. Currently, local agencies can use their own employees for projects worth $30,000 or less. This amount is called the "force account limit." Projects worth $125,000, or less, rely on informal bids; projects that cost more than $125,000 require formal bids (SB 1196 [Senate Local Government Committee], Chapter 643, Statutes of 2006). The Commission has 30 days to review and act on disputes. If the Commission finds that a local agency has violated the Act three times within a 10-year period, it can prohibit that agency from using the Act for five years (AB 2372 [Pavley], Chapter 192, Statutes of 2006). This bill extends the time limit for the Commission to review and act on disputes over whether local agencies have followed the Act. For complaints which allege that local officials rejected all bids and instead claimed that the agency can do the work less expensively, this bill extends the time limit from 30 days to 45 days. For complaints which allege that local officials have either exceeded the force accounts or improperly classified the work as maintenance, this bill extends the time limit from 30 days to 90 days. Comments SB 694 Page 3 Because the Commission is a part-time body without employees, it is nearly impossible for the commissioners to investigate complaints and then schedule a publicly-noticed hearing within the 30-day statutory time limit. This bill extends that deadline by creating a two-tier arrangement: 45 days for one type of allegation, and 90 days for the other two types of complaints. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 1/14/10) Air Conditioning and Refrigeration Contractors Association Air Conditioning Sheet Metal Association Associated General Contractors California Chapter of the American Fence Contractors' Association California Chapters of the National Electrical Contractors Association California Fence Contractors' Association California Landscape Contractors Association California Legislative Conference of the Plumbing, Heating, and Piping Industry Construction Industry Force Account Council Engineering Contractors' Association Flasher/Barricade Association Marin Builders' Association Southern California Contractors Association AGB:mw 1/14/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****