Amended in Assembly August 4, 2014

Amended in Assembly June 17, 2014

Amended in Senate January 14, 2014

Amended in Senate May 2, 2013

Amended in Senate April 23, 2013

Amended in Senate April 1, 2013

Senate Bill No. 785

Introduced by Senator Wolk

(Principal coauthor: Assembly Member Levine)

February 22, 2013

An act to repeal Sections 14661 and 14661.1 of the Government Code, to amend Section 32132.5 of the Health and Safety Code, and to add Article 6 (commencing with Section begin delete 10186) end delete begin insert 10187) end insert to Chapter 1 of Part 2 of Division 2 of, to add Chapter 4 (commencing with Section 22160) to Part 3 of Division 2 of, to repeal Sections 20133, 20175.2, 20193, 20301.5, and 20688.6 of, and to repeal Article 22 (commencing with Section 20360) of Chapter 1 of Part 3 of Division 2 of, the Public Contract Code, relating to design-build.

LEGISLATIVE COUNSEL’S DIGEST

SB 785, as amended, Wolk. Design-build.

Existing law authorizes the Department of General Services, the Department of Corrections and Rehabilitation, and various local agencies to use the design-build procurement process for specified public works under different laws.

This bill would repeal those authorizations, and enact provisions that would authorize the Department of General Services, the Department of Corrections and Rehabilitation, and those local agencies, as defined, to use the design-build procurement process for specified public works. The bill would authorize the Marin Healthcare District to use the design-build process when contracting for the construction of a building and improvements directly related to a hospital or health facility building at the Marin General Hospital. begin delete The bill would require moneys that are collected under these provisions to be deposited into the State Public Works Enforcement Fund, subject to appropriation by the Legislature. end delete The bill would require specified information to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Marin Healthcare District.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

It is the intent of the Legislature to consolidate
existing design-build statutes and eliminate inconsistencies in
statutory language by adopting authority of general application to
identified agencies and repealing superseded sections.

SEC. 2.  

Section 14661 of the Government Code is repealed.

SEC. 3.  

Section 14661.1 of the Government Code is repealed.

SEC. 4.  

Section 32132.5 of the Health and Safety Code is
amended to read:

32132.5.  

(a) Notwithstanding Section 32132 or any other law,
upon approval by the board of directors of the Sonoma Valley
Health Care District or the Marin Healthcare District, as applicable,
the design-build procedure described in Chapter 4 (commencing
with Section 22160) of Part 3 of Division 2 of the Public Contract
Code may be used to assign contracts for the construction of a
building or improvements directly related to construction of a
hospital or health facility building at the Sonoma Valley Hospital
or the Marin General Hospital.

(b) For purposes of this section, all references in Chapter 4
(commencing with Section 22160) of Part 3 of Division 2 of the
Public Contract Code to “local agency” shall mean the Sonoma
Valley Health Care District and the Marin Healthcare District.

(c) A hospital building project utilizing the design-build process
authorized by subdivision (a) shall be reviewed and inspected in
accordance with the standards and requirements of the Alfred E.
Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
(commencing with Section 129675) of Part 7 of Division 107).

SEC. 5.  

Article 6 (commencing with Section begin delete 10186) end delete begin insert 10187) end insert
is added to Chapter 1 of Part 2 of Division 2 of the Public Contract
Code, to read:

 

Article 6.  State Agency Design-Build Projects

 

begin delete 10186. end delete
begin insert 10187. end insert   

(a) The Legislature finds and declares that the
design-build method of project delivery, using a best value
procurement methodology, has been authorized for various
agencies that have reported benefits from such projects including
reduced project costs, expedited project completion, and design
features that are not achievable through the traditional
design-bid-build method.

(b) It is the intent of the Legislature that the following occur:

(1) This article provides general authorization for certain state
agencies to use design-build for projects, excluding projects on
the state highway system.

(2) This article shall not be deemed to provide a preference for
the design-build method over other procurement methodologies.

begin delete 10187. end delete
begin insert 10187.5. end insert   

For purposes of this article, the following definitions
apply:

(a) “Best value” means a value determined by evaluation of
objective criteria related to price, features, functions, life-cycle
costs, experience, and past performance. A best value determination
may begin delete entail selection of the lowest priced technically acceptable
proposals or selection of the best proposal for a fixed price
established by the procuring agency, or it may consist of a tradeoff
between price and other specified factors. end delete begin insert involve the selection of
the lowest cost proposal meeting the interests of the department
and meeting the objectives of the project, selection of the best
proposal for a stipulated sum established by the procuring agency,
or a tradeoff between price and other specified factors. end insert

(b) “Construction subcontract” means each subcontract awarded
by the design-build entity to a subcontractor that will perform work
or labor or render service to the design-build entity in or about the
construction of the work or improvement, or a subcontractor
licensed by the State of California that, under subcontract to the
design-build entity, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained
in the plans and specifications produced by the design-build team.

(c) “Department” means the Department of General Services
and the Department of Corrections and Rehabilitation.

(d) “Design-build” means a project delivery process in which
both the design and construction of a project are procured from a
single entity.

(e) “Design-build entity” means a corporation, limited liability
company, partnership, joint venture, or other legal entity that is
able to provide appropriately licensed contracting, architectural,
and engineering services as needed pursuant to a design-build
contract.

(f) “Design-build team” means the design-build entity itself and
the individuals and other entities identified by the design-build
entity as members of its team. Members shall include the general
contractor and, if utilized in the design of the project, all electrical,
mechanical, and plumbing contractors.

(g) “Director” means, with respect to procurements undertaken
by the Department of General Services, the Director of General
Services or, with respect to procurements undertaken by the
Department of Corrections and Rehabilitation, the secretary of that
department.

10188.  

(a) Notwithstanding any other law, the director,
following notification to the State Public Works Board, may
procure design-build contracts for public works projects in excess
of one million dollars ($1,000,000), awarding the contract using
either the low bid or best value, provided that this article shall not
apply to any projects on the state highway system.

(b) The director shall develop guidelines for a standard
organizational conflict-of-interest policy, consistent with applicable
law, regarding the ability of a person or entity, that performs
services for the department relating to the solicitation of a
design-build project, to submit a proposal as a design-build entity,
or to join a design-build team. This conflict-of-interest policy shall
apply to each department entering into design-build contracts
authorized under this article.

10190.  

The director shall notify the State Public Works Board
regarding the method to be used for selecting the design-build
entity, prior to advertising the design-build project.

10191.  

The procurement process for the design-build projects
shall progress as follows:

(a) (1) The director shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents
may include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the department’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(2) The documents shall not include a design-build-operate
contract for any project. begin insert The documents, however, may include
operations during a training or transition period but shall not
include long-term operations for any project. end insert

(b) Based on the documents prepared under subdivision (a), the
director shall prepare and issue a request for qualifications in order
to prequalify or short-list the design-build entities whose proposals
shall be evaluated for final selection. The request for qualifications
shall include, but need not be limited to, the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be
used by the department to evaluate proposals, the procedure for
final selection of the design-build entity, and any other information
deemed necessary by the director to inform interested parties of
the contracting opportunity.

(2)  begin delete (A) end delete begin delete   end delete Significant factors that the department reasonably
expects to consider in evaluating qualifications, including technical
design and construction begin delete expertise, skilled labor force availability, end delete
begin insert expertise, end insert and all other nonprice-related factors.

begin delete

(B) For purposes of subparagraph (A), skilled labor force
availability shall be deemed satisfied by the existence of an
agreement with a registered apprenticeship program, approved by
the California Apprenticeship Council, that has graduated at least
one apprentice in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that was first deemed by the federal
Department of Labor and the Department of Industrial Relations
to be an apprenticeable craft within the five years prior to the
effective date of this article.

end delete

(3) A standard template request for statements of qualifications
prepared by the department. In preparing the standard template,
the department may consult with the construction industry, the
building trades and surety industry, and other agencies interested
in using the authorization provided by this article. The template
shall require the following information:

(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time
of statement of qualification submission who will perform work
on the project.

(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the design-build entity has the capacity to
complete the project.

(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.

(D) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience
history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing
to form the organization.

(G) An acceptable safety record. A proposer’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury or illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the proposer is a party to an alternative dispute resolution system
as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall
be certified under penalty of perjury by the design-build entity and
its general partners or joint venture members.

(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) shall not be open to public
inspection.

begin insert

(c) A design-build entity shall not be prequalified or shortlisted
unless the entity provides an enforceable commitment to the
director that the entity and its subcontractors at every tier will use
a skilled and trained workforce to perform all work on the project
or contract that falls within an apprenticeable occupation in the
building and construction trades.

end insert begin insert

(1) For purposes of this subdivision:

end insert begin insert

(A) “Apprenticeable occupation” means an occupation for
which the chief had approved an apprenticeship program pursuant
to Section 3075 of the Labor Code prior to January 1, 2014.

end insert begin insert

(B) “Skilled and trained workforce” means a workforce that
meets all of the following conditions:

end insert begin insert

(i) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by
the Chief of the Division of Apprenticeship Standards.

end insert begin insert

(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(II) As of January 1, 2017, at least 30 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(III) As of January 1, 2018, at least 40 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(IV) As of January 1, 2019, at least 50 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(V) As of January 1, 2020, at least 60 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(iii) For an apprenticeable occupation in which no
apprenticeship program had been approved by the chief prior to
January 1, 1995, up to one-half of the graduation percentage
requirement in subclause (I) of clause (ii) may be satisfied by
skilled journeypersons who commenced working in the
apprenticeable occupation prior to the chief’s approval of an
apprenticeship program for that occupation in the county in which
the project is located.

end insert begin insert

(C) “Skilled journey person” means a worker who either:

end insert begin insert

(i) Graduated from an apprenticeship program for the
applicable occupation that was approved by the chief or located
outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the federal Secretary
of Labor.

end insert begin insert

(ii) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.

end insert begin insert

(2) An entity’s commitment that a skilled and trained workforce
will be used to perform the project or contract may be established
by any of the following:

end insert begin insert

(A) The entity’s agreement with the director that the entity and
its subcontractors at every tier will comply with the requirements
of this subdivision and that the entity will provide the director with
evidence, on a monthly basis while the project or contract is being
performed, that the entity and its subcontractors are complying
with the requirements of this subdivision.

end insert begin insert

(B) If the director has entered into a project labor agreement
that will bind all contractors and subcontractors performing work
on the project or contract and that includes the requirements of
this subdivision, the entity’s agreement that it will become a party
to that project labor agreement.

end insert begin insert

(C) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this subdivision and
that will bind the entity and all its subcontractors at every tier
performing the project or contract.

end insert begin delete

(c)

end delete

begin insert (d) end insert  Based on the documents prepared as described in subdivision
(a), the director shall prepare a request for proposals that invites
prequalified or short-listed entities to submit competitive sealed
proposals in the manner prescribed by the department. The request
for proposals shall include, but need not be limited to, the following
elements:

(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the department to evaluate proposals, whether the
contract will be awarded on the basis of low bid or best value, and
any other information deemed necessary by the department to
inform interested parties of the contracting opportunity.

(2) Significant factors that the department reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.

(3) The relative importance or the weight assigned to each of
the factors identified in the request for proposals.

(4) Where a best value selection method is used, the department
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which
case the department shall so specify in the request for proposals
and shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the department
to ensure that any discussions or negotiations are conducted in
good faith.

begin delete

(d)

end delete

begin insert (e) end insert  For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum
bids by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.

begin delete

(e)

end delete

begin insert (f) end insert  For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however,
shall be weighted as deemed appropriate by the department:

(A) Price begin insert , unless a stipulated sum is specified end insert .

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision begin delete (c), end delete begin insert (d), end insert the department may hold
discussions or negotiations with responsive proposers using the
process articulated in the department’s request for proposals.

(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided,
provided that no more than three proposers are required to be
ranked.

(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the director
to have offered the best value to the public.

(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the director shall publicly announce
its award, identifying the design-build entity to which the award
is made, along with a begin delete written decision supporting its contract award
and stating end delete begin insert statement regarding end insert the basis of the award.

(6) The begin delete written decision supporting end delete begin insert statement regarding end insert the
director’s contract award, described in paragraph (5), and the
contract file shall provide sufficient information to satisfy an
external audit.

10192.  

(a) The design-build entity shall provide payment and
performance bonds for the project in the form and in the amount
required by the director, and issued by a California admitted surety.
The amount of the payment bond shall not be less than the amount
of the performance bond.

(b) The design-build contract shall require errors and omissions
insurance coverage for the design elements of the project.

(c) The department shall develop a standard form of payment
and performance bond for its design-build projects.

10193.  

(a) The department, in each design-build request for
proposals, may identify specific types of subcontractors that must
be included in the design-build entity statement of qualifications
and proposal. All construction subcontractors that are identified
in the proposal shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, the
design-build entity shall proceed as follows in awarding
construction subcontracts with a value exceeding one-half of 1
percent of the contract price allocable to construction work:

(1) Provide public notice of availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the department,
including a fixed date and time on which qualifications statements,
bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the
lowest responsible bidder. The process may include prequalification
or short-listing. The foregoing process does not apply to
construction subcontractors listed in the original proposal.
Subcontractors awarded construction subcontracts under this
subdivision shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.

10194.  

(a) If the department elects to award a project pursuant
to this article, retention proceeds withheld by the department from
the design-build entity shall not exceed 5 percent if a performance
and payment bond, issued by an admitted surety insurer, is required
in the solicitation of bids.

(b) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the department and the design-build entity. If the
design-build entity provides written notice to any subcontractor
that is not a member of the design-build entity, prior to or at the
time the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond
to the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the department and the design-build entity from
any payment made by the design-build entity to the subcontractor.

10195.  

Nothing in this article affects, expands, alters, or limits
any rights or remedies otherwise available at law.

begin delete

SEC. 6.  

Section 20133 of the Public Contract Code is repealed.

end delete

begin delete

SEC. 7.  

Section 20175.2 of the Public Contract Code is
repealed.

end delete

begin delete

SEC. 8.  

Section 20193 of the Public Contract Code is repealed.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 20133 of the end insert begin insert Public Contract Code end insert begin insert is repealed. end insert

begin delete

20133.  

(a) A county, with approval of the board of supervisors,
may utilize an alternative procedure for bidding on construction
projects in the county in excess of two million five hundred
thousand dollars ($2,500,000) and may award the project using
either the lowest responsible bidder or by best value.

(b) (1) It is the intent of the Legislature to enable counties to
utilize design-build for buildings and county sanitation wastewater
treatment facilities. It is not the intent of the Legislature to
authorize this procedure for other infrastructure, including, but not
limited to, streets and highways, public rail transit, or water
resources facilities and infrastructures.

(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles
and responsibilities of each participant in the design-build process.

(3) (A) For contracts for public works projects awarded prior
to January 1, 2012, if the board of supervisors elects to proceed
under this section, the board of supervisors shall establish and
enforce a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code, or it shall contract
with a third party to operate a labor compliance program containing
the requirements outlined in Section 1771.5 of the Labor Code.
This requirement shall not apply to any projects where the county
or the design-build entity has entered into a collective bargaining
agreement that binds all of the contractors performing work on the
projects.

(B) For contracts for public works projects awarded on or after
January 1, 2012, the project shall be subject to the requirements
of Section 1771.4 of the Labor Code.

(c) As used in this section:

(1) “Best value” means a value determined by objective criteria
related to price, features, functions, and life-cycle costs.

(2) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(3) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.

(4) “Project” means the construction of a building and
improvements directly related to the construction of a building,
and county sanitation wastewater treatment facilities, but does not
include the construction of other infrastructure, including, but not
limited to, streets and highways, public rail transit, or water
resources facilities and infrastructure.

(d) Design-build projects shall progress in a four-step process,
as follows:

(1) (A) The county shall prepare a set of documents setting
forth the scope of the project. The documents may include, but are
not limited to, the size, type, and desired design character of the
public improvement, performance specifications covering the
quality of materials, equipment, and workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the county’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(B) Any architect or engineer retained by the county to assist
in the development of the project-specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.

(2) (A) Based on the documents prepared in paragraph (1), the
county shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the county. The request for proposals shall include,
but is not limited to, the following elements:

(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the county to inform interested parties of the
contracting opportunity, to include the methodology that will be
used by the county to evaluate proposals and specifically if the
contract will be awarded to the lowest responsible bidder.

(ii) Significant objective factors that the county reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice-related factors.

(iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.

(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when
combined are:

(i) Significantly more important than cost or price.

(ii) Approximately equal in importance to cost or price.

(iii) Significantly less important than cost or price.

(C) If the county chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate
into the request for proposal applicable rules and procedures to be
observed by the county to ensure that any discussions or
negotiations are conducted in good faith.

(3) (A)  The county shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by
the county. In preparing the questionnaire, the county shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information, including, but not limited to, all of the following:

(i) If the design-build entity is a partnership, limited partnership,
or other association, a listing of all of the partners, general partners,
or association members known at the time of bid submission who
will participate in the design-build contract, including, but not
limited to, mechanical subcontractors.

(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, as well as a financial
statement that assures the county that the design-build entity has
the capacity to complete the project.

(iii) The licenses, registration, and credentials required to design
and construct the project, including information on the revocation
or suspension of any license, credential, or registration.

(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code,
or the federal Occupational Safety and Health Act of 1970 (Public
Law 91-596), settled against any member of the design-build entity,
and information concerning workers’ compensation experience
history and worker safety program.

(vi) Information concerning any debarment, disqualification,
or removal from a federal, state, or local government public works
project. Any instance in which an entity, its owners, officers, or
managing employees submitted a bid on a public works project
and were found to be nonresponsive, or were found by an awarding
body not to be a responsible bidder.

(vii) Any instance in which the entity, or its owners, officers,
or managing employees, defaulted on a construction contract.

(viii) Any violations of the Contractors’ State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding,
or of Federal Insurance Contributions Act (FICA; 26 U.S.C. Sec.
3101 et seq.) withholding requirements settled against any member
of the design-build entity.

(ix) Information concerning the bankruptcy or receivership of
any member of the design-build entity, including information
concerning any work completed by a surety.

(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed
by a surety during this period.

(xi) In the case of a partnership or an association that is not a
legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be fully liable for the performance under the design-build
contract.

(xii) (I) Any instance in which the entity, or any of its members,
owners, officers, or managing employees was, during the five years
preceding submission of a bid pursuant to this section, determined
by a court of competent jurisdiction to have submitted, or legally
admitted for purposes of a criminal plea to have submitted either
of the following:

(ia) Any claim to any public agency or official in violation of
the federal False Claims Act (31 U.S.C. Sec. 3729 et seq.).

(ib) Any claim to any public official in violation of the
California False Claims Act (Article 9 (commencing with Section
12650) of Chapter 6 of Part 2 of Division 3 of Title 2 of the
Government Code).

(II) Information provided pursuant to this subdivision shall
include the name and number of any case filed, the court in which
it was filed, and the date on which it was filed. The entity may
also provide further information regarding any such instance,
including any mitigating or extenuating circumstances that the
entity wishes the county to consider.

(B) The information required pursuant to this subdivision shall
be verified under oath by the entity and its members in the manner
in which civil pleadings in civil actions are verified. Information
that is not a public record pursuant to the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) shall not be open to public
inspection.

(4) The county shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:

(A) A competitive bidding process resulting in lump-sum bids
by the prequalified design-build entities. Awards shall be made to
the lowest responsible bidder.

(B) A county may use a design-build competition based upon
best value and other criteria set forth in paragraph (2). The
design-build competition shall include the following elements:

(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors
shall each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design,
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.

(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous
to the least.

(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.

(iv) Notwithstanding any provision of this code, upon issuance
of a contract award, the county shall publicly announce its award,
identifying the contractor to whom the award is made, along with
a written decision supporting its contract award and stating the
basis of the award. The notice of award shall also include the
county’s second and third ranked design-build entities.

(v) For purposes of this paragraph, “skilled labor force
availability” shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the
California Apprenticeship Council, which has graduated
apprentices in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that has been deemed by the Department of
Labor and the Department of Industrial Relations to be an
apprenticeable craft in the five years prior to enactment of this act.

(vi) For purposes of this paragraph, a bidder’s “safety record”
shall be deemed “acceptable” if its experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.

(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.

(2) Any payment or performance bond written for the purposes
of this section shall be written using a bond form developed by
the county.

(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of
paragraph (3) of subdivision (d) shall be awarded by the
design-build entity in accordance with the design-build process
set forth by the county in the design-build package. All
subcontractors bidding on contracts pursuant to this section shall
be afforded the protections contained in Chapter 4 (commencing
with Section 4100) of Part 1. The design-build entity shall do both
of the following:

(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the county.

(2) Provide a fixed date and time on which the subcontracted
work will be awarded in accordance with the procedure established
pursuant to this section.

(g) Lists of subcontractors, bidders, and bid awards relating to
the project shall be submitted by the design-build entity to the
awarding body within 14 days of the award. These documents are
deemed to be public records and shall be available for public
inspection pursuant to this chapter and Article 1 (commencing
with Section 6250) of Chapter 3.5 of Division 7 of Title 1 of the
Government Code.

(h) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the county.

(i) The county may retain the services of a design professional
or construction project manager, or both, throughout the course of
the project in order to ensure compliance with this section.

(j) Contracts awarded pursuant to this section shall be valid until
the project is completed.

(k) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.

(l) (1) If the county elects to award a project pursuant to this
section, retention proceeds withheld by the county from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.

(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the county and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid
is requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the county and the design-build entity from any
payment made by the design-build entity to the subcontractor.

(m) Each county that elects to proceed under this section and
uses the design-build method on a public works project shall submit
to the Legislative Analyst’s Office before September 1, 2013, a
report containing a description of each public works project
procured through the design-build process and completed after
November 1, 2009, and before August 1, 2013. The report shall
include, but shall not be limited to, all of the following information:

(1) The type of project.

(2) The gross square footage of the project.

(3) The design-build entity that was awarded the project.

(4) The estimated and actual length of time to complete the
project.

(5) The estimated and actual project costs.

(6) Whether the project was met or altered.

(7) The number and amount of project change orders.

(8) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.

(9) An assessment of the prequalification process and criteria.

(10) An assessment of the effect of retaining 5-percent retention
on the project.

(11) A description of the Labor Force Compliance Program and
an assessment of the project impact, where required.

(12) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor
and an assessment of the effectiveness of the methodology.

(13) An assessment of the project impact of “skilled labor force
availability.”

(14) An assessment of the design-build dollar limits on county
projects. This assessment shall include projects where the county
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method was not used due to dollar limitations.

(15) An assessment of the most appropriate uses for the
design-build approach.

(n) Any county that elects not to use the authority granted by
this section may submit a report to the Legislative Analyst’s Office
explaining why the county elected not to use the design-build
method.

(o) On or before January 1, 2014, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
counties pursuant to this section, including the information listed
in subdivisions (m) and (p). The report may include
recommendations for modifying or extending this section.

(p) The Legislative Analyst shall complete a fact-based analysis
of the use of the design-build method by counties pursuant to this
section, utilizing the information provided pursuant to subdivision
(m) and any independent information provided by the public or
interested parties. The Legislative Analyst shall select a
representative sample of projects under this section and review
available public records and reports, media reports, and related
information in its analysis. The Legislative Analyst shall compile
the information required to be analyzed pursuant to this subdivision
into a report, which shall be provided to the Legislature. The report
shall include conclusions describing the actual cost of projects
procured pursuant to this section, whether the project schedule
was met or altered, and whether projects needed or used project
change orders.

(q) Except as provided in this section, this act shall not be
construed to affect the application of any other law.

(r) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2016, deletes or extends that date.

end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 20175.2 of the end insert begin insert Public Contract Code end insert begin insert is
repealed. end insert

begin delete

20175.2.  

(a) (1) A city, with approval of the appropriate city
council, may utilize an alternative procedure for bidding on
building construction projects in the city in excess of one million
dollars ($1,000,000), except as provided in subdivision (p).

(2) Cities may award the project using either the lowest
responsible bidder or by best value.

(b) (1) It is the intent of the Legislature to enable cities to utilize
cost-effective options for building and modernizing public
facilities. The Legislature also recognizes the national trend,
including authorization in California, to allow public entities to
utilize design-build contracts as a project delivery method. It is
not the intent of the Legislature to authorize this procedure for
transportation facilities, including, but not limited to, roads and
bridges.

(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles
and responsibilities of each participant in the design-build process.
The Legislature also finds that the cost-effective benefits to cities
are achieved by shifting the liability and risk for cost containment
and project completion to the design-build entity.

(3) It is the intent of the Legislature to provide an alternative
and optional procedure for bidding and building construction
projects for cities.

(4) The design-build approach may be used, but is not limited
to use, when it is anticipated that it will: reduce project cost,
expedite project completion, or provide design features not
achievable through the design-bid-build method.

(5) (A) For contracts for public works projects awarded prior
to January 1, 2012, if a city council elects to proceed under this
section, the city council shall establish and enforce a labor
compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code, or it shall contract with a third
party to operate a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code. This
requirement shall not apply to any project where the city or the
design-build entity has entered into a collective bargaining
agreement or agreements that bind all of the contractors performing
work on the projects.

(B) For contracts for public works projects awarded on or after
January 1, 2012, the project shall be subject to the requirements
of Section 1771.4 of the Labor Code.

(c) As used in this section:

(1) “Best value” means a value determined by objectives relative
to price, features, functions, and life-cycle costs.

(2) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(3) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services, as needed,
pursuant to a design-build contract.

(4) “Project” means the construction of a building and
improvements directly related to the construction of a building,
but does not include streets and highways, public rail transit, or
water resource facilities and infrastructure.

(d) Design-build projects shall progress in a four-step process,
as follows:

(1) (A) The city shall prepare a set of documents setting forth
the scope of the project. The documents may include, but are not
limited to, the size, type, and desired design character of the
buildings and site, performance specifications covering the quality
of materials, equipment, and workmanship, preliminary plans or
building layouts, or any other information deemed necessary to
describe adequately the city’s needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.

(B) Any architect or engineer retained by the city to assist in
the development of the project-specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.

(2) (A) Based on the documents prepared in paragraph (1), the
city shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the city. The request for proposals shall include, but
is not limited to, the following elements:

(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the city to inform interested parties of the contracting
opportunity, to include the methodology that will be used by the
city to evaluate proposals, and specifically if the contract will be
awarded to the lowest responsible bidder.

(ii) Significant objective factors which the city reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice-related factors.

(iii) The relative importance or weight assigned to each of the
factors identified in the request for proposals.

(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors, other than cost or price, when
combined are:

(i) Significantly more important than cost or price.

(ii) Approximately equal in importance to cost or price.

(iii) Significantly less important than cost or price.

(C) If the city chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately, or incorporate
into the request for proposal, applicable rules and procedures to
be observed by the city to ensure that any discussions or
negotiations are conducted in good faith.

(3) (A) The city shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by
the city. In preparing the questionnaire, the city shall consult with
the construction industry, including representatives of the building
trades and surety industry. This questionnaire shall require
information including, but not limited to, all of the following:

(i) If the design-build entity is a partnership, limited partnership,
or other association, a listing of all of the partners, general partners,
or association members known at the time of bid submission who
will participate in the design-build contract, including, but not
limited to, mechanical subcontractors.

(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, as well as a financial
statement that assures the city that the design-build entity has the
capacity to complete the project.

(iii) The licenses, registration, and credentials required to design
and construct the project, including information on the revocation
or suspension of any license, credential, or registration.

(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code
or the federal Occupational Safety and Health Act of 1970 (Public
Law 91-596) settled against any member of the design-build entity,
and information concerning workers’ compensation experience
history and worker safety program.

(vi) Information concerning any debarment, disqualification,
or removal from a federal, state, or local government public works
project. Any instance where an entity, its owners, officers, or
managing employees submitted a bid on a public works project
and were found to be nonresponsive, or were found by an awarding
body not to be a responsible bidder.

(vii) Any instance where the entity, its owners, officers, or
managing employees defaulted on a construction contract.

(viii) Any violations of the Contractors State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding,
or of Federal Insurance Contribution Act (FICA; 26 U.S.C. Sec.
3101 et seq.) withholding requirements settled against any member
of the design-build entity.

(ix) Information concerning the bankruptcy or receivership of
any member of the design-build entity, including information
concerning any work completed by a surety.

(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed
by a surety during this period.

(xi) In the case of a partnership or an association that is not a
legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be fully liable for the performance under the design-build
contract.

(xii) (I) Any instance in which the entity, or any of its members,
owners, officers, or managing employees was, during the five years
preceding submission of a bid pursuant to this section, determined
by a court of competent jurisdiction to have submitted, or legally
admitted for purposes of a criminal plea to have submitted either
of the following:

(ia) Any claim to any public agency or official in violation of
the federal False Claims Act (31 U.S.C. Sec. 3729 et seq.).

(ib) Any claim to any public official in violation of the
California False Claims Act (Article 9 (commencing with Section
12650) of Chapter 6 of Part 2 of Division 3 of Title 2 of the
Government Code).

(II) Information provided pursuant to this subdivision shall
include the name and number of any case filed, the court in which
it was filed, and the date on which it was filed. The entity may
also provide further information regarding any such instance,
including any mitigating or extenuating circumstances that the
entity wishes the city to consider.

(B) The information required pursuant to this subdivision shall
be verified under oath by the entity and its members in the manner
in which civil pleadings in civil actions are verified. Information
that is not a public record pursuant to the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) shall not be open to public
inspection.

(4) The city shall establish a procedure for final selection of the
design-build entity. Selection shall be based on either of the
following criteria:

(A) A competitive bidding process resulting in lump-sum bids
by the prequalified design-build entities. Awards shall be made to
the lowest responsible bidder.

(B) The city may use a design-build competition based upon
best value and other criteria set forth in paragraph (2) of
subdivision (d). The design-build competition shall include the
following elements:

(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors
shall each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.

(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous
to the least.

(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.

(iv) Notwithstanding any provision of this code, upon issuance
of a contract award, the city shall publicly announce its award,
identifying the contractor to whom the award is made, along with
a written decision supporting its contract award and stating the
basis of the award. The notice of award shall also include the city’s
second and third ranked design-build entities.

(v) For purposes of this paragraph, “skilled labor force
availability” shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the
California Apprenticeship Council, which has graduated
apprentices in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that has been deemed by the Department of
Labor and the Department of Industrial Relations to be an
apprenticeable craft in the five years prior to enactment of this act.

(vi) For purposes of this paragraph, a bidder’s “safety record”
shall be deemed “acceptable” if its experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category, or if
the bidder is a party to an alternative dispute resolution system, as
provided for in Section 3201.5 of the Labor Code.

(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services and errors and omissions insurance coverage sufficient
to cover all design and architectural services provided in the
contract. This section does not prohibit a general or engineering
contractor from being designated the lead entity on a design-build
entity for the purposes of purchasing necessary bonding to cover
the activities of the design-build entity.

(2) Any payment or performance bond written for the purposes
of this section shall be written using a bond form developed by
the city.

(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of
paragraph (3) of subdivision (d) shall be awarded by the
design-build entity in accordance with the design-build process
set forth by the city in the design-build package. All subcontractors
bidding on contracts pursuant to this section shall be afforded the
protections contained in Chapter 4 (commencing with Section
4100) of Part 1. The design-build entity shall do both of the
following:

(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the city.

(2) Provide a fixed date and time on which the subcontracted
work will be awarded in accordance with the procedure established
pursuant to this section.

(g) Lists of subcontractors, bidders, and bid awards relating to
the project shall be submitted by the design-build entity to the
awarding body within 14 days of the award. These documents are
deemed to be public records and shall be available for public
inspection pursuant to this chapter and Article 1 (commencing
with Section 6250) of Chapter 3.5 of Division 7 of Title 1 of the
Government Code.

(h) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the city.

(i) The city may retain the services of a design professional or
construction project manager, or both, throughout the course of
the project in order to ensure compliance with this section.

(j) Contracts awarded pursuant to this section shall be valid until
the project is completed.

(k) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.

(l) (1) If the city elects to award a project pursuant to this
section, retention proceeds withheld by the city from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.

(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the city and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid
is requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the city and the design-build entity from any
payment made by the design-build entity to the subcontractor.

(m) Each city that elects to proceed under this section and uses
the design-build method on a public works project shall submit to
the Legislative Analyst’s Office before December 1, 2014, a report
containing a description of each public works project procured
through the design-build process that is completed after January
1, 2011, and before November 1, 2014. The report shall include,
but shall not be limited to, all of the following information:

(1) The type of project.

(2) The gross square footage of the project.

(3) The design-build entity that was awarded the project.

(4) The estimated and actual project costs.

(5) The estimated and actual length of time to complete the
project.

(6) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.

(7) An assessment of the prequalification process and criteria.

(8) An assessment of the effect of retaining 5-percent retention
on the project.

(9) A description of the Labor Force Compliance Program and
an assessment of the project impact, where required.

(10) A description of the method used to award the contract. If
the best value method was used, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor
and an assessment of the effectiveness of the methodology.

(11) An assessment of the project impact of “skilled labor force
availability.”

(12) An assessment of the most appropriate uses for the
design-build approach.

(n) Any city that elects not to use the authority granted by this
section may submit a report to the Legislative Analyst’s Office
explaining why the city elected not to use the design-build method.

(o) On or before January 1, 2015, the Legislative Analyst’s
Office shall report to the Legislature on the use of the design-build
method by cities pursuant to this section, including the information
listed in subdivision (m). The report may include recommendations
for modifying or extending this section.

(p) Except as provided in this section, nothing in this act shall
be construed to affect the application of any other law.

(q) Before January 1, 2011, the project limitation of one million
dollars ($1,000,000), as set forth in subdivision (a), shall not apply
to any city in the Counties of Solano and Yolo, or to the Cities of
Stanton and Victorville.

(r) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 20193 of the end insert begin insert Public Contract Code end insert begin insert is repealed. end insert

begin delete

20193.  

(a) (1) Notwithstanding any other law and subject to
the limitations of this article, a qualified entity, with approval of
its governing body, may utilize an alternative procedure on bidding
on projects in excess of two million five hundred thousand dollars
($2,500,000).

(2) Only 20 design-build projects shall be authorized under this
article.

(3) A qualified entity may award a project using either the lowest
responsible bidder or by best value.

(4) For purposes of this article, “qualified entity” means an
entity that meets both of the following:

(A) The entity is any of the following:

(i) A city.

(ii) A county.

(iii) A city and county.

(iv) A special district.

(B) The entity operates wastewater facilities, solid waste
management facilities, or water recycling facilities.

(b) (1) For contracts for public works projects awarded prior
to January 1, 2012, if a qualified entity elects to proceed under this
section, the qualified entity shall establish and enforce a labor
compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code, or it shall contract with a third
party to operate a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code. This
requirement shall not apply to projects where the qualified entity
or the design-build entity has entered into a collective bargaining
agreement or agreements that bind all of the contractors performing
work on the projects.

(2) For contracts for public works projects awarded on or after
January 1, 2012, the project shall be subject to the requirements
of Section 1771.4 of the Labor Code.

(c) As used in this section:

(1) “Best value” means a value determined by objective criteria
related to price, features, functions, small business contracting
plans, past performance, and life-cycle costs.

(2) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(3) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.

(4) “Project” means the construction of regional and local
wastewater treatment facilities, regional and local solid waste
facilities, or regional and local water recycling facilities.

(d) Design-build projects shall progress in a four-step process,
as follows:

(1) (A) The qualified entity shall prepare a set of documents
setting forth the scope of the project. The documents may include,
but are not limited to, the size, type, and desired design character
of the project and site, performance specifications covering the
quality of materials, equipment, and workmanship, preliminary
plans or project layouts, or any other information deemed necessary
to describe adequately the qualified entity’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(B) Any architect or engineer retained by the qualified entity
to assist in the development of the project specific documents shall
not be eligible to participate in the preparation of a bid with any
design-build entity for that project.

(2) (A) Based on the documents prepared in paragraph (1), the
qualified entity shall prepare a request for proposals that invites
interested parties to submit competitive sealed proposals in the
manner prescribed by the qualified entity. The request for proposals
shall include, but is not limited to, the following elements:

(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the qualified entity to inform interested parties of the
contracting opportunity, to include the methodology that will be
used by the qualified entity to evaluate proposals and specifically
if the contract will be awarded to the lowest responsible bidder.

(ii) Significant factors that the qualified entity reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice-related factors.

(iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.

(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the qualified entity shall specifically
disclose whether all evaluation factors other than cost or price
when combined are:

(i) Significantly more important than cost or price.

(ii) Approximately equal in importance to cost or price.

(iii) Significantly less important than cost or price.

(C) If the qualified entity chooses to reserve the right to hold
discussions or negotiations with responsive bidders, it shall so
specify in the request for proposal and shall publish separately or
incorporate into the request for proposal applicable rules and
procedures to be observed by the qualified entity to ensure that
any discussions or negotiations are conducted in good faith.

(3) (A) The qualified entity shall establish a procedure to
prequalify design-build entities using a standard questionnaire
developed by the qualified entity. In preparing the questionnaire,
the qualified entity shall consult with the construction industry,
including representatives of the building trades and surety industry.
This questionnaire shall require information including, but not
limited to, all of the following:

(i) If the design-build entity is a partnership, limited partnership,
or other association, a listing of all of the partners, general partners,
or association members known at the time of bid submission who
will participate in the design-build contract, including, but not
limited to, mechanical subcontractors.

(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, as well as a financial
statement that assures the special district that the design-build
entity has the capacity to complete the project.

(iii) The licenses, registration, and credentials required to design
and construct the project, including information on the revocation
or suspension of any license, credential, or registration.

(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code
or the federal Occupational Safety and Health Act of 1970 (Public
Law 91-596), settled against any member of the design-build entity,
and information concerning workers’ compensation experience
history and worker safety program.

(vi) Information concerning any debarment, disqualification,
or removal from a federal, state, or local government public works
project. Any instance where an entity, its owners, officers, or
managing employees submitted a bid on a public works project
and were found to be nonresponsive, or were found by an awarding
body not to be a responsible bidder.

(vii) Any instance where the entity, its owner, officers, or
managing employees defaulted on a construction contract.

(viii) Any violations of the Contractors’ State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding,
or of Federal Insurance Contribution Act (FICA; 26 U.S.C. Sec.
3101 et seq.) withholding requirements settled against any member
of the design-build entity.

(ix) Information concerning the bankruptcy or receivership of
any member of the design-build entity, including information
concerning any work completed by a surety.

(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed
by a surety during this period.

(xi) In the case of a partnership or other association, that is not
a legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be fully liable for the performance under the design-build
contract.

(B) The information required pursuant to this subdivision shall
be verified under oath by the entity and its members in the manner
in which civil pleadings in civil actions are verified. Information
that is not a public record pursuant to the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) shall not be open to public
inspection.

(4) The qualified entity shall establish a procedure for final
selection of the design-build entity. Selection shall be based on
either of the following criteria:

(A) A competitive bidding process resulting in lump-sum bids
by the prequalified design-build entities. Awards shall be made to
the lowest responsible bidder.

(B) A qualified entity may use a design-build competition based
upon best value and other criteria set forth in paragraph (2) of
subdivision (d). The design-build competition shall include the
following elements:

(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors
shall each represent at least 10 percent of the total weight of
consideration given to all criteria factors; price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.

(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous
to the least.

(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.

(iv) Notwithstanding any provision of this code, upon issuance
of a contract award, the qualified entity shall publicly announce
its award, identifying the contractor to which the award is made,
along with a written decision supporting its contract award and
stating the basis of the award. The notice of award shall also
include the qualified entity’s second and third ranked design-build
entities.

(v) For purposes of this paragraph, “skilled labor force
availability” shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the
California Apprenticeship Council, which has graduated
apprentices in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that has been deemed by the Department of
Labor and the Department of Industrial Relations to be an
apprenticeable craft in the five years prior to enactment of this act.

(vi) For purposes of this paragraph, a bidder’s “safety record”
shall be deemed “acceptable” if their experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and their average total recordable injury/illness rate and average
lost work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category, or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.

(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omissions insurance coverage sufficient
to cover all design and architectural services provided in the
contract. This section does not prohibit a general or engineering
contractor from being designated the lead entity on a design-build
entity for the purposes of purchasing necessary bonding to cover
the activities of the design-build entity.

(2) Any payment or performance bond written for the purposes
of this section shall be written using a bond form developed by
the qualified entity.

(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of
paragraph (3) of subdivision (d) shall be awarded by the
design-build entity in accordance with the design-build process
set forth by the qualified entity in the design-build package. All
subcontractors bidding on contracts pursuant to this section shall
be afforded the protections contained in Chapter 4 (commencing
with Section 4100) of Part 1. The design-build entity shall do both
of the following:

(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the qualified
entity.

(2) Provide a fixed date and time on which the subcontracted
work will be awarded in accordance with the procedure established
pursuant to this section.

(g) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the qualified
entity.

(h) The qualified entity may retain the services of a design
professional or construction project manager, or both, throughout
the course of the project in order to ensure compliance with this
section.

(i) Contracts awarded pursuant to this section shall be valid until
the project is completed.

(j) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.

(k) (1) If the qualified entity elects to award a project pursuant
to this section, retention proceeds withheld by the qualified entity
from the design-build entity shall not exceed 5 percent if a
performance and payment bond, issued by an admitted surety
insurer, is required in the solicitation of bids.

(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the qualified entity and the design-build entity. If the
design-build entity provides written notice to any subcontractor
who is not a member of the design-build entity, prior to or at the
time the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond
to the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the qualified entity and the design-build entity
from any payment made by the design-build entity to the
subcontractor.

(l) Each qualified entity that elects to proceed under this section
and uses the design-build method on a public works project shall
do both of the following:

(1) Notify the Legislative Analyst’s Office upon initiation of
the project and upon completion of the project.

(2) Submit to the Legislative Analyst’s Office, upon completion
of the project, a report containing a description of the public works
project procured through the design-build process pursuant to this
section and completed after January 1, 2009. The report shall
include, but shall not be limited to, all of the following information:

(A) The type of project.

(B) The gross square footage of the project.

(C) The design-build entity that was awarded the project.

(D) The estimated and actual project costs.

(E) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.

(F) An assessment of the prequalification process and criteria.

(G) An assessment of the effect of retaining 5-percent retention
on the project.

(H) A description of the Labor Force Compliance Program and
an assessment of the project impact, where required.

(I) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor
and an assessment of the effectiveness of the methodology.

(J) An assessment of the project impact of “skilled labor force
availability.”

(K) An assessment of the most appropriate uses for the
design-build approach.

(m) Any qualified entity that elects not to use the authority
granted by this section may submit a report to the Legislative
Analyst’s Office explaining why the qualified entity elected to not
use the design-build method.

(n) (1) In order to comply with paragraph (2) of subdivision
(a), the Office of Planning and Research is required to maintain
the list of entities that have applied and are eligible to be qualified
for this authority.

(2) Each entity that is interested in proceeding under the
authority in this section must apply to the Office of Planning and
Research.

(A) The application to proceed must be in writing.

(B) An entity must have complied with the California
Environmental Quality Act review process pursuant to Division
13 (commencing with Section 21000) of the Public Resources
Code prior to its application, and must include its approved notice
of determination or notice of completion in its application.

(3) The Office of Planning and Research must approve or deny
an application, in writing, within 30 days. The authority to deny
an application shall only be exercised if the conditions set forth in
either or both paragraph (2) of subdivision (a) and subparagraph
(B) of paragraph (2) of this subdivision have not been satisfied.

(4) An entity utilizing this section must, after it determines it
no longer is interested in using this authority, notify the Office of
Planning and Research in writing within 30 days of its
determination. Upon notification, the Office of Planning and
Research may contact any previous applicants, denied pursuant to
paragraph (2) of subdivision (a), to inform them of the availability
to proceed under this section.

(o) The Legislative Analyst shall report to the Legislature on
the use of the design-build method by qualified entities pursuant
to this section, including the information listed in subdivision (l).
The report may include recommendations for modifying or
extending this section, and shall be submitted on either of the
following dates, whichever occurs first:

(1) Within one year of the completion of the 20 projects, if the
projects are completed prior to January 1, 2019.

(2) No later than January 1, 2020.

end delete

SEC. 9.  

Section 20301.5 of the Public Contract Code is
repealed.

SEC. 10.  

Article 22 (commencing with Section 20360) of
Chapter 1 of Part 3 of Division 2 of the Public Contract Code is
repealed.

begin delete

SEC. 11.  

Section 20688.6 of the Public Contract Code is
repealed.

end delete

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 20688.6 of the end insert begin insert Public Contract Code end insert begin insert is
repealed. end insert

begin delete

20688.6.  

(a) (1) Notwithstanding any other law, an agency,
with approval of its duly constituted board in a public hearing,
may utilize an alternative procedure for bidding on projects in the
community in excess of one million dollars ($1,000,000) and may
award the project using either the lowest responsible bidder or by
best value.

(2) Only 10 design-build projects shall be authorized under this
section.

(b) (1) It is the intent of the Legislature to enable entities as
provided in Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code to utilize design-build for those
infrastructure improvements authorized in Sections 33421, 33445,
and 33445.1 of the Health and Safety Code and subject to the
limitations on that authority described in Section 33421.1 of the
Health and Safety Code.

(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles
and responsibilities of each participant in the design-build process.

(3) (A) For contracts for public works projects awarded prior
to January 1, 2012, if the board elects to proceed under this section,
the board shall establish and enforce a labor compliance program
containing the requirements outlined in Section 1771.5 of the Labor
Code, or it shall contract with a third party to operate a labor
compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code. This requirement shall not apply
to projects where the agency or the design-build entity has entered
into a collective bargaining agreement or agreements that bind all
of the contractors performing work on the projects.

(B) For contracts for public works projects awarded on or after
January 1, 2012, the project shall be subject to the requirements
of Section 1771.4 of the Labor Code.

(c) As used in this section:

(1) “Best value” means a value determined by objective criteria
related to price, features, functions, and life-cycle costs.

(2) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(3) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.

(4) “Project” means those infrastructure improvements
authorized in Sections 33421, 33445, and 33445.1 of the Health
and Safety Code and subject to the limitations and conditions on
that authority described in Article 10 (commencing with Section
33420) and Article 11 (commencing with Section 33430) of
Chapter 4 of Part 1 of Division 24 of the Health and Safety Code.

(d) Design-build projects shall progress in a four-step process,
as follows:

(1) (A) The agency shall prepare a set of documents setting
forth the scope of the project. The documents may include, but are
not limited to, the size, type, and desired design character of the
public improvement, performance specifications covering the
quality of materials, equipment, and workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the agency’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(B) Any architect or engineer retained by the agency to assist
in the development of the project specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.

(2) (A) Based on the documents prepared as described in
paragraph (1), the agency shall prepare a request for proposals that
invites interested parties to submit competitive sealed proposals
in the manner prescribed by the agency. The request for proposals
shall include, but is not limited to, the following elements:

(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the agency to inform interested parties of the
contracting opportunity, to include the methodology that will be
used by the agency to evaluate proposals and specifically if the
contract will be awarded to the lowest responsible bidder.

(ii) Significant factors that the agency reasonably expects to
consider in evaluating proposals, including cost or price and all
nonprice-related factors.

(iii) The relative importance of the weight assigned to each of
the factors identified in the request for proposals.

(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when
combined are:

(i) Significantly more important than cost or price.

(ii) Approximately equal in importance to cost or price.

(iii) Significantly less important than cost or price.

(C) If the agency chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate
into the request for proposal applicable rules and procedures to be
observed by the agency to ensure that any discussions or
negotiations are conducted in good faith.

(3) (A) The agency shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by
the agency. In preparing the questionnaire, the agency shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information including, but not limited to, all of the following:

(i) If the design-build entity is a partnership, limited partnership,
or other association, a listing of all of the partners, general partners,
or association members known at the time of bid submission who
will participate in the design-build contract, including, but not
limited to, mechanical subcontractors.

(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, as well as a financial
statement that assures the agency that the design-build entity has
the capacity to complete the project.

(iii) The licenses, registration, and credentials required to design
and construct the project, including information on the revocation
or suspension of any license, credential, or registration.

(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code,
or the federal Occupational Safety and Health Act of 1970 (Public
Law 91-596), settled against any member of the design-build entity,
and information concerning workers’ compensation experience
history and worker safety program.

(vi) Information concerning any debarment, disqualification,
or removal from a federal, state, or local government public works
project. Any instance in which an entity, its owners, officers, or
managing employees submitted a bid on a public works project
and were found to be nonresponsive, or were found by an awarding
body not to be a responsible bidder.

(vii) Any instance in which the entity, or its owners, officers,
or managing employees, defaulted on a construction contract.

(viii) Any violations of the Contractors’ State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), including alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding,
or of Federal Insurance Contributions Act (FICA; 26 U.S.C. Sec.
3101 et seq.) withholding requirements settled against any member
of the design-build entity.

(ix) Information concerning the bankruptcy or receivership of
any member of the design-build entity, including information
concerning any work completed by a surety.

(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed
by a surety during this period.

(xi) In the case of a partnership, joint venture, or an association
that is not a legal entity, a copy of the agreement creating the
partnership or association and specifying that all general partners,
joint venturers, or association members agree to be fully liable for
the performance under the design-build contract.

(B) The information required pursuant to this subdivision shall
be verified under oath by the entity and its members in the manner
in which civil pleadings in civil actions are verified. Information
that is not a public record pursuant to the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) shall not be open to public
inspection.

(4) The agency shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:

(A) A competitive bidding process resulting in lump-sum bids
by the prequalified design-build entities. Awards shall be made to
the lowest responsible bidder.

(B) An agency may use a design-build competition based upon
best value and other criteria set forth in paragraph (2). The
design-build competition shall include the following elements:

(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors
shall each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.

(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous
to the least.

(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.

(iv) Notwithstanding any provision of this code, upon issuance
of a contract award, the agency shall publicly announce its award,
identifying the contractor to whom the award is made, along with
a written decision supporting its contract award and stating the
basis of the award. The notice of award shall also include the
agency’s second- and third-ranked design-build entities.

(v) For purposes of this paragraph, skilled labor force availability
shall be determined by the existence of an agreement with a
registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each
of the preceding five years. This graduation requirement shall not
apply to programs providing apprenticeship training for any craft
that has been deemed by the Department of Labor and the
Department of Industrial Relations to be an apprenticeable craft
in the five years prior to enactment of this act.

(vi) For purposes of this paragraph, a bidder’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.

(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.

(2) Any payment or performance bond written for the purposes
of this section shall be written using a bond form developed by
the agency.

(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of
paragraph (3) of subdivision (d) shall be awarded by the
design-build entity in accordance with the design-build process
set forth by the agency in the design-build package. All
subcontractors bidding on contracts pursuant to this section shall
be afforded the protections contained in Chapter 4 (commencing
with Section 4100) of Part 1. The design-build entity shall do both
of the following:

(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the agency.

(2) Provide a fixed date and time on which the subcontracted
work will be awarded in accordance with the procedure established
pursuant to this section.

(g) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the agency.

(h) The agency may retain the services of a design professional
or construction project manager, or both, throughout the course of
the project in order to ensure compliance with this section.

(i) Contracts awarded pursuant to this section shall be valid until
the project is completed.

(j) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.

(k) (1) If the agency elects to award a project pursuant to this
section, retention proceeds withheld by the agency from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.

(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld shall not exceed the percentage specified in the contract
between the agency and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid
is requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the agency and the design-build entity from any
payment made by the design-build entity to the subcontractor.

(l) Each agency that elects to proceed under this section and
uses the design-build method on a public works project shall submit
to the Legislative Analyst’s Office before December 1, 2014, a
report containing a description of each public works project
procured through the design-build process after January 1, 2010,
and before November 1, 2014. The report shall include, but shall
not be limited to, all of the following information:

(1) The type of project.

(2) The gross square footage of the project.

(3) The design-build entity that was awarded the project.

(4) Where appropriate, the estimated and actual length of time
to complete the project.

(5) The estimated and actual project costs.

(6) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.

(7) An assessment of the prequalification process and criteria.

(8) An assessment of the effect of retaining 5-percent retention
on the project.

(9) A description of the labor force compliance program and an
assessment of the project impact, where required.

(10) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor
and an assessment of the effectiveness of the methodology.

(11) An assessment of the project impact of skilled labor force
availability.

(12) An assessment of the design-build dollar limits on agency
projects. This assessment shall include projects where the agency
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method was not used due to dollar limitations.

(13) An assessment of the most appropriate uses for the
design-build approach.

(m) (1) In order to comply with paragraph (2) of subdivision
(a), the State Public Works Board is required to maintain the list
of agencies that have applied and are eligible to be qualified for
this authority.

(2) Each agency that is interested in proceeding under the
authority in this section must apply to the State Public Works
Board. The application to proceed shall be in writing and contain
such information that the State Public Works Board may require.

(3) The State Public Works Board shall approve or deny an
application, in writing, within 90 days of the submission of a
complete application. The authority to deny an application shall
only be exercised if the condition set forth in paragraph (2) of
subdivision (a) has been satisfied.

(4) An agency that has applied for this authorization shall, after
it determines it no longer is interested in using this authority, notify
the State Public Works Board in writing within 30 days of its
determination. Upon notification, the State Public Works Board
may contact any previous applicants, denied pursuant to paragraph
(2) of subdivision (a), to inform them of the availability to proceed
under this section.

(5) The State Public Works Board may authorize no more than
10 projects. The board shall not authorize or approve more than
two projects for any one eligible redevelopment agency that
submits a completed application.

(6) The State Public Works Board shall notify the Legislative
Analyst’s Office when 10 projects have been approved.

(n) On or before January 1, 2015, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
agencies pursuant to this section, including the information listed
in subdivision (l). The report may include recommendations for
modifying or extending this section.

(o) Except as provided in this section, nothing in this act shall
be construed to affect the application of any other law.

(p) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

end delete

SEC. 12.  

Chapter 4 (commencing with Section 22160) is added
to Part 3 of Division 2 of the Public Contract Code, to read:

 

Chapter  4. Local Agency Design-Build Projects

 

22160.  

(a) The Legislature finds and declares that the
design-build method of project delivery, using a best value
procurement methodology, has been authorized for various
agencies that have reported benefits from such projects including
reduced project costs, expedited project completion, and design
features that are not achievable through the traditional
design-bid-build method.

(b) It is the intent of the Legislature that the following occur:

(1) This chapter provides general authorization for local agencies
to use design-build for projects, excluding projects on the state
highway system.

(2) This chapter shall not be deemed to provide a preference
for the design-build method over other procurement methodologies.

22161.  

For purposes of this chapter, the following definitions
apply:

(a) “Best value” means a value determined by evaluation of
objective criteria related to price, features, functions, life-cycle
costs, experience, and past performance. A best value determination
may begin delete entail selection of the lowest priced technically acceptable
proposal or selection of the best proposal for a fixed price
established by the procuring agency, or it may consist of a tradeoff
between price and other specified factors. end delete begin insert involve the selection of
the lowest cost proposal meeting the interests of the local agency
and meeting the objectives of the project, selection of the best
proposal for a stipulated sum established by the procuring agency,
or a tradeoff between price and other specified factors. end insert

(b) “Construction subcontract” means each subcontract awarded
by the design-build entity to a subcontractor that will perform work
or labor or render service to the design-build entity in or about the
construction of the work or improvement, or a subcontractor
licensed by the State of California that, under subcontract to the
design-build entity, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained
in the plans and specifications produced by the design-build team.

(c) “Design-build” means a project delivery process in which
both the design and construction of a project are procured from a
single entity.

(d) “Design-build entity” means a corporation, limited liability
company, partnership, joint venture, or other legal entity that is
able to provide appropriately licensed contracting, architectural,
and engineering services as needed pursuant to a design-build
contract.

(e) “Design-build team” means the design-build entity itself
and the individuals and other entities identified by the design-build
entity as members of its team. Members shall include the general
contractor and, if utilized in the design of the project, all electrical,
mechanical, and plumbing contractors.

(f) “Local agency” means the following:

(1) A city, county, or city and county.

(2) A special district that operates wastewater facilities, solid
waste management facilities, water recycling facilities, or fire
protection facilities.

(3) Any transit district, included transit district, municipal
operator, included municipal operator, any consolidated agency,
as described in Section 132353.1 of the Public Utilities Code, any
joint powers authority formed to provide transit service, any county
transportation commission created pursuant to Section 130050 of
the Public Utilities Code, or any other local or regional agency,
responsible for the construction of transit projects.

(g) (1) For a local agency defined in paragraph (1) of
subdivision (f), “project” means the construction of a building or
buildings and improvements directly related to the construction
of a building or buildings, county sanitation wastewater treatment
facilities, and park recreational facilities, but does not include the
construction of other infrastructure, including, but not limited to,
streets and highways, public rail transit, or water resources facilities
and infrastructure. For a local agency defined in paragraph (1) of
subdivision (f) that operates wastewater facilities, solid waste
management facilities, or water recycling facilities, “project” also
means the construction of regional and local wastewater treatment
facilities, regional and local solid waste facilities, or regional and
local water recycling facilities.

(2) For a local agency defined in paragraph (2) of subdivision
(f), “project” means the construction of regional and local
wastewater treatment facilities, regional and local solid waste
facilities, regional and local water recycling facilities, or fire
protection facilities.

(3) For a local agency defined in paragraph (3) of subdivision
(f), “project” means a transit capital project, but does not include
state highway construction or local street and road projects.

22162.  

(a)  begin delete Notwithstanding end delete begin insert Except as provided in subdivision
(b), and notwithstanding end insert any other law, a local agency, with
approval of its governing body, may procure design-build contracts
for public works projects in excess of one million dollars
($1,000,000), awarding the contract either the low bid or the best
value, provided that this article shall not apply to any projects on
the state highway system.

begin insert

(b) For the acquisition and installation of technology
applications or surveillance equipment designed to enhance safety,
disaster preparedness, and homeland security efforts, there shall
be no cost threshold and the local agency described in paragraph
(3) of subdivision (f) of Section 22161 may award the contract to
the lowest responsible bidder or by using the best value method.

end insert begin delete

(b)

end delete

begin insert (c) end insert  The local agency shall develop guidelines for a standard
organizational conflict-of-interest policy, consistent with applicable
law, regarding the ability of a person or entity, that performs
services for the local agency relating to the solicitation of a
design-build project, to submit a proposal as a design-build entity,
or to join a design-build team. This conflict-of-interest policy shall
apply to each local agency entering into design-build contracts
authorized under this article.

22164.  

The procurement process for the design-build projects
shall progress as follows:

(a) (1) The local agency shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents
may include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the local agency’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(2) The documents shall not include a design-build-operate
contract for any project. begin insert end insert begin insert The documents, however, may include
operations during a training or transition period but shall not
include long-term operations for any project. end insert

(b) Based on the documents prepared under subdivision (a), the
local agency shall prepare and issue a request for qualifications in
order to prequalify or short-list the design-build entities whose
proposals shall be evaluated for final selection. The request for
qualifications shall include, but need not be limited to, the
following elements:

(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be
used by the local agency to evaluate proposals, the procedure for
final selection of the design-build entity, and any other information
deemed necessary by the local agency to inform interested parties
of the contracting opportunity.

(2)  begin delete (A) end delete begin delete   end delete Significant factors that the local agency reasonably
expects to consider in evaluating qualifications, including technical
design and construction begin delete expertise, skilled labor force availability, end delete
begin insert expertise, end insert acceptable safety record, and all other nonprice-related
factors.

begin delete

(B) For purposes of subparagraph (A), skilled labor force
availability shall be deemed satisfied by the existence of an
agreement with a registered apprenticeship program, approved by
the California Apprenticeship Council, that has graduated at least
one apprentice in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that was first deemed by the federal
Department of Labor and the Department of Industrial Relations
to be an apprenticeable craft within the five years prior to the
effective date of this article.

end delete

(3) A standard template request for statements of qualifications
prepared by the local agency. In preparing the standard template,
the local agency may consult with the construction industry, the
building trades and surety industry, and other local agencies
interested in using the authorization provided by this article. The
template shall require the following information:

(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time
of statement of qualification submission who will perform work
on the project.

(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, and a financial statement
that ensures that the design-build entity has the capacity to
complete the project.

(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.

(D) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(E) Information concerning workers’ compensation experience
history and a worker safety program.

(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing
to form the organization.

(G) An acceptable safety record. A proposer’s safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury or illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the proposer is a party to an alternative dispute resolution system
as provided for in Section 3201.5 of the Labor Code.

(4) (A) The information required under this subdivision shall
be certified under penalty of perjury by the design-build entity and
its general partners or joint venture members.

(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code) shall not be open to public
inspection.

begin insert

(c) A design-build entity shall not be prequalified or shortlisted
unless the entity provides an enforceable commitment to the local
agency that the entity and its subcontractors at every tier will use
a skilled and trained workforce to perform all work on the project
or contract that falls within an apprenticeable occupation in the
building and construction trades.

end insert begin insert

(1) For purposes of this subdivision:

end insert begin insert

(A) “Apprenticeable occupation” means an occupation for
which the chief had approved an apprenticeship program pursuant
to Section 3075 of the Labor Code prior to January 1, 2014.

end insert begin insert

(B) “Skilled and trained workforce” means a workforce that
meets all of the following conditions:

end insert begin insert

(i) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by
the Chief of the Division of Apprenticeship Standards.

end insert begin insert

(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(II) As of January 1, 2017, at least 30 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(III) As of January 1, 2018, at least 40 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(IV) As of January 1, 2019, at least 50 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(V) As of January 1, 2020, at least 60 percent of the skilled
journey persons employed to perform work on the contract or
project by the entity and each of its subcontractors at every tier
are graduates of an apprenticeship program for the applicable
occupation that was either approved by the Chief of the Division
of Apprenticeship Standards pursuant to Section 3075 of the Labor
Code or located outside California and approved for federal
purposes pursuant to the apprenticeship regulations adopted by
the federal Secretary of Labor.

end insert begin insert

(iii) For an apprenticeable occupation in which no
apprenticeship program had been approved by the chief prior to
January 1, 1995, up to one-half of the graduation percentage
requirement in subclause (I) of clause (ii) may be satisfied by
skilled journeypersons who commenced working in the
apprenticeable occupation prior to the chief’s approval of an
apprenticeship program for that occupation in the county in which
the project is located.

end insert begin insert

(C) “Skilled journey person” means a worker who either:

end insert begin insert

(i) Graduated from an apprenticeship program for the
applicable occupation that was approved by the chief or located
outside California and approved for federal purposes pursuant to
the apprenticeship regulations adopted by the federal Secretary
of Labor.

end insert begin insert

(ii) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is
approved by the chief.

end insert begin insert

(2) An entity’s commitment that a skilled and trained workforce
will be used to perform the project or contract may be established
by any of the following:

end insert begin insert

(A) The entity’s agreement with the local agency that the entity
and its subcontractors at every tier will comply with the
requirements of this subdivision and that the entity will provide
the local agency with evidence, on a monthly basis while the project
or contract is being performed, that the entity and its
subcontractors are complying with the requirements of this
subdivision.

end insert begin insert

(B) If the local agency has entered into a project labor
agreement that will bind all contractors and subcontractors
performing work on the project or contract and that includes the
requirements of this subdivision, the entity’s agreement that it will
become a party to that project labor agreement.

end insert begin insert

(C) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this subdivision and
that will bind the entity and all its subcontractors at every tier
performing the project or contract.

end insert begin delete

(c)

end delete

begin insert (d) end insert  Based on the documents prepared as described in subdivision
(a), the local agency shall prepare a request for proposals that
invites prequalified or short-listed entities to submit competitive
sealed proposals in the manner prescribed by the local agency.
The request for proposals shall include, but need not be limited
to, the following elements:

(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the local agency to evaluate proposals, whether
the contract will be awarded on the basis of low bid or best value,
and any other information deemed necessary by the local agency
to inform interested parties of the contracting opportunity.

(2) Significant factors that the local agency reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.

(3) The relative importance or the weight assigned to each of
the factors identified in the request for proposals.

(4) Where a best value selection method is used, the local agency
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which
case the local agency shall so specify in the request for proposals
and shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the local agency
to ensure that any discussions or negotiations are conducted in
good faith.

begin delete

(d)

end delete

begin insert (e) end insert  For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum
bids by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.

begin delete

(e)

end delete

begin insert (f) end insert  For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:

(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however,
shall be weighted as deemed appropriate by the local agency:

(A) Price begin insert , unless a stipulated sum is specified end insert .

(B) Technical design and construction expertise.

(C) Life-cycle costs over 15 or more years.

(2) Pursuant to subdivision begin delete (c), end delete begin insert (d), end insert the local agency may hold
discussions or negotiations with responsive proposers using the
process articulated in the local agency’s request for proposals.

(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided,
provided that no more than three proposers are required to be
ranked.

(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the local
agency to have offered the best value to the public.

(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the local agency shall publicly
announce its award, identifying the design-build entity to which
the award is made, along with a begin delete written decision supporting its
contract award and stating end delete begin insert statement regarding end insert the basis of the
award.

(6) The begin delete written decision supporting end delete begin insert statement regarding end insert the
local agency’s contract award, described in paragraph (5), and the
contract file shall provide sufficient information to satisfy an
external audit.

22165.  

(a) The design-build entity shall provide payment and
performance bonds for the project in the form and in the amount
required by the local agency, and issued by a California admitted
surety. The amount of the payment bond shall not be less than the
amount of the performance bond.

(b) The design-build contract shall require errors and omissions
insurance coverage for the design elements of the project.

(c) The local agency shall develop a standard form of payment
and performance bond for its design-build projects.

22166.  

(a) The local agency, in each design-build request for
proposals, may identify specific types of subcontractors that must
be included in the design-build entity statement of qualifications
and proposal. All construction subcontractors that are identified
in the proposal shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.

(b) Following award of the design-build contract, the
design-build entity shall proceed as follows in awarding
construction subcontracts with a value exceeding one-half of 1
percent of the contract price allocable to construction work:

(1) Provide public notice of availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the local agency,
including a fixed date and time on which qualifications statements,
bids, or proposals will be due.

(2) Establish reasonable qualification criteria and standards.

(3) Award the subcontract either on a best value basis or to the
lowest responsible bidder. The process may include prequalification
or short-listing. The foregoing process does not apply to
construction subcontractors listed in the original proposal.
Subcontractors awarded construction subcontracts under this
subdivision shall be afforded all the protections of Chapter 4
(commencing with Section 4100) of Part 1.

22167.  

(a) If the local agency elects to award a project pursuant
to this article, retention proceeds withheld by the local agency
from the design-build entity shall not exceed 5 percent if a
performance and payment bond, issued by an admitted surety
insurer, is required in the solicitation of bids.

(b) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the local agency and the design-build entity. If the
design-build entity provides written notice to any subcontractor
that is not a member of the design-build entity, prior to or at the
time the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond
to the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the local agency and the design-build entity from
any payment made by the design-build entity to the subcontractor.

22168.  

Nothing in this article affects, expands, alters, or limits
any rights or remedies otherwise available at law.

SEC. 13.  

Due to the unique circumstances of the Marin
Healthcare District, the Legislature hereby finds and declares that
a general statute cannot be made applicable within the meaning
of Section 16 of Article IV of the California Constitution.
Therefore, the special legislation contained in Section 4 of this act
is applicable only to the Marin Healthcare District.

SEC. 14.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.