BILL ANALYSIS Ó
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 943 HEARING: 6/22/11
AUTHOR: Williams FISCAL: No
VERSION: 6/13/11 TAX LEVY: No
CONSULTANT: Weinberger
LOCAL GOVERNMENTS' PUBLIC WORKS CONTRACTS
Increases the Uniform Public Construction Cost Accounting
Act's informal bid limits.
Background
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
Uniform Public Construction Cost Accounting Act (UPCCAA),
they can use higher limits for their contracts (AB 1666,
Cortese, 1983). About 770 local agencies participate.
Proposed Law
I. Informal bid limits . A 14-member California Uniform
Construction Cost Accounting Commission (CUCCAC) reviews
the UPCCAA's statutory limits every five years. If the
Commission adopts higher limits, the State Controller
promulgates the changes and the Legislature periodically
amends the Act to reflect the new limits. Projects worth
$125,000 or less can rely on informal bids. Projects that
cost more than $125,000 require formal bids, except that a
local agency's governing body can award a contract worth
$137,500 or less to the lowest responsible bidder if:
All of the informal bids received exceed $125,000,
The governing body determines that the public
agency's cost estimate was reasonable, and
It adopts a resolution by a 4/5 vote.
(SB 1196, Senate Local Government Committee, 2006).
At its March 30, 2011 meeting, the CUCCAC voted to increase
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the informal bid limit from $125,000 to $175,000. In a
letter sent to all local agencies that participate in the
Uniform Public Construction Cost Accounting Act, the State
Controller announced that the new limit would take effect
on July 1, 2011.
Assembly Bill 943 increases, from $125,000 to $175,000, the
maximum value of public projects that may be let to
contract by informal procedures under the Uniform Public
Construction Cost Accounting Act.
AB 943 increases, from $137,500 to $187,500, the maximum
value of public projects that may be let to contract by
informal procedures under the Uniform Public Construction
Cost Accounting Act if:
All of the informal bids received exceed $175,000,
The local agency's governing body determines that
the agency's cost estimate was reasonable, and
It adopts a resolution by a 4/5 vote.
II. Commission appointments . The State Controller
appoints 13 of the CUCCAC's 14 members to three-year terms
and must appoint a replacement to fill a vacancy within 45
days of the expiration of any term. Assembly Bill 943
extends the time period during which the Controller must
fill a vacancy from 45 days to 90 days.
III. Commission Chairperson's term . CUCCAC members select
a chairperson, from among the commission's membership, to
serve as chair for a term of one year from the date of
selection or February 1, whichever comes first. Assembly
Bill 943 requires the chairperson to serve for a term of
two years from the date of selection.
State Revenue Impact
No estimate.
Comment
1. Purpose of the bill . AB 943 codifies the new informal
bid limit that the California Uniform Public Construction
Cost Accounting Commission recently adopted and increases
the bid limit that applies when all informal bids on a
project exceed the informal bid limit specified by the
AB 934 -- 6/13/11 -- Page 3
Commission. By increasing these limits to account for
rapidly escalating construction costs, AB 943 helps ensure
that local agencies will continue to benefit from the
Uniform Public Construction Cost Accounting Act's
flexibility and efficiency when they contract for public
works. At the Commission's request, AB 943 also lengthens
the Commission chairperson's term to two years. Because the
CUCCAC meets infrequently - only once or twice per year -
the longer term allows for more continuity.
2. Related legislation . Assembly Bill 720 (Hall) also
codifies the Uniform Public Construction Cost Accounting
Act's new $175,000 informal bid limit. Because AB 720
contains other provisions relating to county contracts for
road construction, Senate Rules Committee double-referred
the bill first to the Senate Transportation and Housing
Committee, which is scheduled to consider the bill at its
June 21 hearing, and then to the Senate Governance and
Finance Committee. Because both AB 943 and AB 720 amend
the same code section, they may require technical
"double-jointing" amendments. Those amendments would
prevent the changes made by the bill that's chaptered first
from being wiped out by the changes made by the bill that's
chaptered second.
Assembly Actions
Assembly Local Government Committee: 9-0
Assembly Floor: 78-0
Support and Opposition (6/16/11)
Support : Air Conditioning and Refrigeration Contractors
Association; Air Conditioning Sheet Metal Association;
Associated General Contractors; California Chapter of the
American Fence Corporation; California Chapter of the
National Electric Contractors Association; California Fence
Contractors Association; California Landscape and
Irrigation Council; California Legislative Conference of
the Plumbing, Heating, and Piping Industry; California
State Association of Counties; Chambers of Commerce
Alliance of Ventura & Santa Barbara Counties; Coalition for
Adequate Student Housing; Construction Industry Force
Account Council; Desert Water Agency; Engineering
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Contractors Association; Flashers Barricade Association;
League of California Cities; Marin Builders Association;
Regional Council of Rural Counties.
Opposition : Unknown.