BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 943|
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THIRD READING
Bill No: AB 943
Author: Williams (D)
Amended: 6/23/11 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 6/22/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez,
Kehoe,
La Malfa, Liu
ASSEMBLY FLOOR : 78-0, 5/19/11 (Consent)- See last page for
vote
SUBJECT : Public contracts
SOURCE : Author
DIGEST : This bill increases the informal bid threshold
from $125,000 to $175,000 and $137,500 to $187,500 for
local agencies that use the accounting procedures set forth
in the Uniform Public Construction Cost Accounting Act.
Senate Floor Amendments of 6/23/11 delete the code section
of the bill that conflicts with AB 720 (Hall).
ANALYSIS : The Public Contract Code spells out the
procedures that local officials follow when they build
public works projects, including limits on the contracts'
values.
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AB 943
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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
ÝCortese], Chapter 1054, Statutes of 1983). About 770
local agencies participate.
This bill:
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.
It adopts a resolution by a 4/5 vote.
(SB 1196 ÝSenate Local Government Committee], Chapter
643, Statutes of 2006).
At its March 30, 2011 meeting, the CUCCAC voted to
increase 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.
This bill 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.
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This bill 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.
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.
This bill 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.
This bill requires the chairperson to serve for a term
of two years from the date of selection.
Comment
This bill 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 Commission. By
increasing these limits to account for rapidly escalating
construction costs, this bill 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, this bill 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.
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Related legislation
AB 720 (Hall) also codifies the Uniform Public Construction
Cost Accounting Act's new $175,000 informal bid limit.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/23/11)
Air Conditioning and Refrigeration Contractors Association
Air Conditioning Sheet Metal Association
Associated General Contractors
California Chapter of the American Fence Association
California Chapter of the National Electric Contractors
Association
California Fence Contractors' Association
California Landscape and Irrigation Council
CA Legislative Conference of the Plumbing, Heating, and
Piping Industry
California State Association of Counties
Construction Industry Force Account Council
Desert Water Agency
Engineering Contractors Association
Flashers Barricade Association
League of California Cities
Marin Builders Association
Regional Council of Rural Counties
ASSEMBLY FLOOR :
AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
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Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. Pérez
NO VOTE RECORDED: Alejo, Gorell
AGB:do 6/27/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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