BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 694|
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                                 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).
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          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  
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           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

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