BILL ANALYSIS �
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: SB 681
AUTHOR: Hernandez
AMENDED: April 1, 2013
FISCAL COMM: No HEARING DATE: May 1, 2013
URGENCY: No CONSULTANT:Kathleen Chavira
SUBJECT : Community college districts personal property
contracting.
SUMMARY
This bill expands the authority of a community college
district to "piggyback" on an existing contract between a
public corporation or agency (including any county, city,
town, or district) and a vendor for the lease or purchase
of personal property by authorizing the district to
directly purchase from, and make payments to, the vendor.
BACKGROUND
Current law establishes various procedures to be followed
by the community colleges to secure bids or proposals and
enter into contracts for the acquisition of goods and
services. (Education Code � 81641, � 81644, � 81645)
Notwithstanding these provisions, community colleges are
authorized, under specified conditions to authorize any
public corporation or agency, including any county, city,
town, or district, to lease data-processing equipment,
purchase materials, supplies, equipment, automotive
vehicles, tractors, and other personal property for the
district in the manner in which the public corporation or
agency is authorized by law to make the leases or
purchases, without advertising for bids, and to make
payments to the public corporation or agency for furnishing
the services incidental to the lease or purchase of the
personal property.
(Public Contract Code �20652)
Current law provides the same authority as that outlined
for community colleges above to school districts. However,
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current law also provides that, if there is an existing
contract between a public corporation or agency and a
vendor for the lease or purchase of the personal property,
a school district may authorize the lease or purchase of
personal property directly from the vendor and make payment
to the vendor under the same terms that are available to
the public corporation or agency under the contract.
(Public Contract Code � 20118)
ANALYSIS
This bill expands the authority of a community college
district to "piggyback" on an existing contract between a
public corporation or agency (including any county, city,
town, or district) and a vendor for the lease or purchase
of personal property by clarifying that, like school
districts, the community college district can purchase
directly from, and make payments directly to, the vendor,
without needing to go through the original contracting
agency.
STAFF COMMENTS
1) Piggyback? The term "piggyback" is associated with
Public Contract Code Section 20118, which allows
school districts to acquire personal property by
participating in an existing contract of another
public entity. According to districts, piggybacking
can save months of time and significant costs as
districts, in order to go out for bid, must prepare
documents, advertise for bid, obtain local board
approval and place award.
While the statute clearly applies to the acquisition
of personal property, in the past, questions have
arisen in regards to its use for facilities related
purchases, as school districts were using "piggyback"
contracts to acquire and install factory-built modular
building components that result in permanent school
facilities funded by the School Facility Program
(SFP). At the request of the State Allocation Board,
the Attorney General issued an opinion in January 2006
which found that:
a) A school district may not, without
advertising for bids, contract with another
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public agency to acquire factory-built modular
building components for installation on a
permanent foundation.
b) A school district intending to contract for
the construction, reconstruction, renovation,
improvement or repair of any school building,
where the work will require an expenditure of
$15,000 or more, must follow a competitive
bidding process.
c) Once these modular components have been
attached at the building site, and after
significant on-site finish work has been
completed, they would result in permanent school
buildings of varying dimensions, purpose; and
architectural styles i.e. they are no longer
personal property.
2) Parallel language . Current law authorizes both
community colleges and school districts to "piggyback"
onto existing contracts between vendors and public
corporations or agencies. In 2006, the Legislature
clarified that this school district authority extended
to allowing a school district, without being listed or
referenced on the original contract, to be included
without the originating public agency needing to
secure agreement from the vendor that the contract
could be "piggybacked." This change in the law allowed
for the benefits of piggybacking without having to go
through the original contracting agency to buy and
then transfer the item, authorizing school districts
to work directly with the vendor. This bill would
extend this same ability to community college
districts.
SUPPORT
Kern Community College District
Los Angeles Community College District
Los Rios Community College District
Peralta Community College District
Rio Hondo Community College District
OPPOSITION
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None received