BILL ANALYSIS Ó
AB 943
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CONCURRENCE IN SENATE AMENDMENTS
AB 943 (Williams)
As Amended June 23, 2011
Majority vote
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|ASSEMBLY: |78-0 |(May 19, 2011) |SENATE: |33-0 |(July 1, 2011) |
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Original Committee Reference: L. GOV.
SUMMARY : Increases the formal bidding threshold under the
Uniform Public Construction Cost Accounting Act (UPCCAA) from
$125,000 to $175,000.
The Senate amendments :
1)Extend the term of the chairperson of Uniform Public
Construction Cost Accounting Commission (Commission) from one
year to two years from the date of selection.
2)Extends the time the State Controller (Controller) has to
appoint a replacement if a vacancy occurs from 45 days to 90
days.
3)Make other technical and clarifying changes.
EXISTING LAW :
1)Authorizes public agencies to opt in to UPCCAA.
2)Requires public agencies who opt in to UPCCAA to use the
following thresholds:
a) Public projects of $30,000 or less are authorized to be
performed by the employees of a public agency by force
account, negotiated contract, or by purchase order;
b) Public projects of $125,000 or less are authorized to be
let to contract by informal procedures as established under
UPCCAA; and,
c) Public projects of more than $125,000 are required to be
let to contract by formal bidding procedure, except as
otherwise provided in UPCCAA.
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3)Requires the Commission to review the accounting procedures of
a participating public agency when an interested party
presents evidence that the work undertaken by the public
agency falls within any of the following categories:
a) The work is to be performed by a public agency after
rejecting all bids, claiming work can be done less
expensively by the public agency;
b) The work exceeded the force account limits; or,
c) The work has been improperly classified as maintenance.
4)Authorizes the governing body of a public agency on a
four-fifths vote to award a contract at $137,500, or less, to
the lowest responsible bidder if the following occur:
a) All bids received under informal bidding procedures are
in excess of $125,000; and,
b) The governing body determines the cost estimate of the
public agency was reasonable.
5)Requires the Commission members to select a chairperson from
among its membership to serve as chair for a term of one year
from the date of selection.
6)Requires Commission member to hold office for terms of three
years. If there is a vacancy, the Controller is required,
within 45 days after the expiration of any term, to appoint a
replacement to fill the vacancy on the commission.
AS PASSED BY THE ASSEMBLY , this bill:
1)Increased the formal bidding threshold under UPCCAA from
$125,000 to $175,000.
2)Authorized the governing body of a public agency on a
four-fifths vote to award a contract at $187,500, or less, to
the lowest responsible bidder if the following occur:
a) All bids received under informal bidding procedures are
in excess of $175,000; and,
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b) The governing body determines the cost estimate of the
public agency was reasonable.
FISCAL EFFECT : None
COMMENTS : The Public Contract Code spells out the procedures
that local agencies are required to follow when they build
public works projects, including limits on the contracts'
values. However, when local agencies voluntarily use UPCCAA,
they can use their own employees for projects worth $30,000 or
less. Projects worth $125,000 or less require informal bidding
and those worth more than $125,000 require formal bidding.
UPCCAA requires the Commission to review these limits to account
for higher costs every five years. If the Commission recommends
higher limits, the Controller promulgates the new limits. The
Commission and the Controller last raised these limits in 2005,
with them taking effect in 2007.
At the Commission's March 30, 2011, hearing, the members
approved raising the formal bidding threshold to $175,000. This
recommendation was forwarded to the Controller, who adopted the
recommendation and sent out a letter notifying all the public
agencies who have opted in to UPCCAA of the change to be
effective July 1, 2011. This bill would codify this new
threshold, which will be in place via the UPCCAA manual by the
time this bill goes into effect.
The Commission does not have the statutory authority to raise
the informal bidding cap that can be used in cases where there
is a four-fifths vote of the governing body, all bids received
under informal bidding procedures were in excess of informal
bidding cap, and the governing body determines the cost estimate
of the public agency was reasonable. This bill will raise that
threshold from $137,500 to $187,500.
According to the author, this bill seeks to codify a proposal
adopted by the Commission at its March 30, 2011, meeting.
Support arguments: Supporters say AB 943 will provide
additional flexibility for agencies that have voluntarily chosen
to abide by UPCCAA.
Opposition arguments: Opposition might argue AB 943 is
premature and the Committee should wait to hear from the
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Commission itself regarding this proposal.
Analysis Prepared by : Jennifer Klein Baldwin and Katie
Kolitsos / L. GOV. / (916) 319-3958
FN: 0001464