BILL NUMBER: AB 2728	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 27, 2014

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 21, 2014

    An act to add Section 10170 to the Public Contract Code,
relating to public contracts.   An act to add and repeal
Section 9400.5 of the Vehicle Code, relating to transportation.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 2728, as amended, Perea.  Public contracts: public
works: bids.   Vehicle weight fees: transportation bond
debt service.  
   Existing law imposes weight fees on the registration of commercial
motor vehicles and provides for the deposit of net weight fee
revenues into the State Highway Account. Existing law provides for
the transfer of certain weight fee revenues from the State Highway
Account to the Transportation Debt Service Fund to reimburse the
General Fund for payment of debt service on general obligation bonds
issued for transportation purposes. Existing law also provides for
the transfer of certain weight fee revenues to the Transportation
Bond Direct Payment Account for direct payment of debt service on
designated bonds, which are defined to be certain transportation
general obligation bonds issued pursuant to Proposition 1B of 2006.
Existing law also provides for loans of weight fee revenue to the
General Fund to the extent the revenues are not needed for bond debt
service purposes, with the loans to be repaid when the revenues are
later needed for those purposes, as specified.  
   This bill, notwithstanding these provisions or any other law,
until January 1, 2019, would prohibit weight fee revenue from being
transferred from the State Highway Account to the Transportation Debt
Service Fund or to the Transportation Bond Direct Payment Account
for the purpose of payment of the debt service on transportation
general obligation bonds, and would also prohibit loans of weight fee
revenue to the General Fund.  
   The State Contract Act provides a bidding process for public works
projects, including the erection, construction, alteration, repair,
or improvement of any state structure, building, road, or other state
improvement of any kind that will exceed a total cost calculated, as
provided, and generally requires a contract to be awarded based on
best value or lowest responsible bid.  
   This bill would revise the calculation of the bid price, by
excluding from that price, amounts equal to the sum of sales tax
reimbursement and use tax. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes . State-mandated local program: no.


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

   SECTION 1.    Section 9400.5 is added to the 
 Vehicle Code   , to read:  
   9400.5.  (a) Notwithstanding Sections 9400.1, 9400.4, and 42205 of
this code, Sections 16773 and 16965 of the Government Code, Section
2103 of the Streets and Highways Code, or any other law, weight fee
revenue shall not be transferred from the State Highway Account to
the Transportation Debt Service Fund or to the Transportation Bond
Direct Payment Account for the purpose of payment of the debt service
on transportation general obligation bonds, and shall not be loaned
to the General Fund.
   (b) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.  
  SECTION 1.    Section 10170 is added to the Public
Contract Code, to read:
   10170.  For purposes of awarding a contract to the lowest
responsible bidder under this chapter, the bid price shall be reduced
by the amount equal to the sum of sales tax reimbursement and use
tax imposed by Part 1 (commencing with Section 6001) of Division 2 of
the Revenue and Taxation Code.