BILL NUMBER: AB 720	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN SENATE  JUNE 27, 2011
	AMENDED IN ASSEMBLY  MAY 23, 2011
	AMENDED IN ASSEMBLY  MAY 9, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 17, 2011

   An act to amend Sections  22031 and 22032  
22031, 22032, and 22034  of the Public Contract Code, relating
to public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 720, as amended, Hall. Public contracts: uniform construction
cost accounting provisions: alternative procedures.
   Existing law establishes procedures for local public agencies to
follow when engaged in public works projects, and authorizes agencies
to elect to become subject to uniform construction cost accounting
provisions. Existing law specifies that a board of supervisors or a
county road commissioner is not prohibited by those provisions from
utilizing, as an alternative, other procedures governing county
highway contracts.
   This bill would revise the above provision that specifies that a
board of supervisors or a county road commissioner is not prohibited
from using alternative procedures governing county highway contracts
to limit the use of those alternative procedures on or after January
1, 2013, to maintenance and emergency work and new road construction
and road reconstruction, as provided. The bill would permit counties
with a population of less than 50,000, on or after January 1, 2013,
to continue to utilize alternative procedures for county highway
contracts.
   Existing law authorizes public projects of $30,000 or less to be
performed by the employees of the public agency by force account,
negotiated contract, or purchase order.
   This bill would increase the amount for which public projects are
authorized to be performed by the employees of the public agency, as
specified above, to $45,000.
   Existing law also authorizes public projects of $125,000 or less
to be let to contract by informal procedures, as specified, and
requires public projects of more than $125,000 to be let to contract
by formal bidding procedure, except as provided.
   This bill would increase the  amount for which public
projects are authorized to be let to contract by informal procedures
to $175,000, and would increase the amount for which public projects
are required to be let by formal bidding procedure to projects of
more than   above limits from $125,000 to 
$175,000. 
   Existing law governing public contracts establishes procedures
that public agencies, as defined, are required to follow when
performing public works projects, and authorizes the governing board
of the public agency to adopt a resolution, by a 4/5 vote, to award
the contract at $137,500 or less to the lowest responsible bidder
when all informal bids on the public works project are in excess of
$125,000.  
   This bill would increase the above limits from $125,000 to
$175,000, and from $137,500 to $187,500, respectively. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 22031 of the Public Contract Code is amended to
read:
   22031.  (a) Prior to January 1, 2013, this article shall not
prohibit a board of supervisors or a county road commissioner from
utilizing, as an alternative to the procedures set forth in this
article, the procedures set forth in Article 25 (commencing with
Section 20390) of Chapter 1.
   (b) On or after January 1, 2013, this article shall not prohibit a
board of supervisors or a county road commissioner from utilizing,
as an alternative to the procedures set forth in this article, the
procedures set forth in Article 25 (commencing with Section 20390) of
Chapter 1 for both of the following:
   (1) Maintenance and emergency work.
   (2) New road construction and road reconstruction as long as the
total annual value of the new road construction and the road
reconstruction performed under the procedures set forth in
subdivision (c) of Section 20395 does not exceed 30 percent of the
total value of all work performed by force account other than
maintenance as reported in the Controller's Streets and Roads Annual
Report as of January 1 of each year.
   (c) On or after January 1, 2013, for a county with a population of
less than 50,000, this article shall not prohibit a board of
supervisors or a county road commissioner from utilizing, as an
alternative to the procedures set forth in this article, the
procedures set forth in Article 25 (commencing with Section 20390) of
Chapter 1.
   (d) The requirements set forth in Section 22038 shall apply to any
county subject to this section.
   (e) Any county board of supervisors or county road commissioner
acting pursuant to the authority granted in paragraph (2) of
subdivision (b) shall declare its intention to use this authority
prior to commencing work.
  SEC. 2.  Section 22032 of the Public Contract Code is amended to
read:
   22032.  (a) Public projects of forty-five thousand dollars
($45,000) or less may be performed by the employees of a public
agency by force account, by negotiated contract, or by purchase
order.
   (b) Public projects of one hundred seventy-five thousand dollars
($175,000) or less may be let to contract by informal procedures as
set forth in this article.
   (c) Public projects of more than one hundred seventy-five thousand
dollars ($175,000) shall, except as otherwise provided in this
article, be let to contract by formal bidding procedure.
   SEC. 3.    Section 22034 of the   Public
Contract Code   is amended to read   : 
   22034.  Each public agency that elects to become subject to the
uniform construction accounting procedures set forth in Article 2
(commencing with Section 22010) shall enact an informal bidding
ordinance to govern the selection of contractors to perform public
projects pursuant to subdivision (b) of Section 22032. The ordinance
shall include all of the following:
   (a) The public agency shall maintain a list of qualified
contractors, identified according to categories of work. Minimum
criteria for development and maintenance of the contractors list
shall be determined by the commission.
   (b) All contractors on the list for the category of work being bid
or all construction trade journals specified in Section 22036, or
both all contractors on the list for the category of work being bid
and all construction trade journals specified in Section 22036, shall
be mailed a notice inviting informal bids unless the product or
service is proprietary.
   (c) All mailing of notices to contractors and construction trade
journals pursuant to subdivision (b) shall be completed not less than
10 calendar days before bids are due.
   (d) The notice inviting informal bids shall describe the project
in general terms and how to obtain more detailed information about
the project, and state the time and place for the submission of bids.

   (e) The governing body of the public agency may delegate the
authority to award informal contracts to the public works director,
general manager, purchasing agent, or other appropriate person.
   (f) If all bids received are in excess of one hundred 
twenty-five   seventy-five  thousand dollars
 ($125,000)   ($175,000)  , the governing
body of the public agency may, by adoption of a resolution by a
four-fifths vote, award the contract, at one hundred 
thirty-seven   eighty-seven  thousand five hundred
dollars  ($137,500)   ($187,500)  or less,
to the lowest responsible bidder, if it determines the cost estimate
of the public agency was reasonable.