California Legislature—2015–16 First Extraordinary Session

Assembly Bill No. 22

Introduced by Assembly Member Patterson

September 1, 2015

An act to amend Sections 6821 and 6829 of the Public Contract Code, and to repeal Section 91.2 of the Streets and Highway Code, relating to design-build procurement.

LEGISLATIVE COUNSEL’S DIGEST

AB 22, as introduced, Patterson. Design-build: highways.

Existing law authorizes the Department of Transportation to utilize design-build procurement for up to 10 projects on the state highway system, based on either best value or lowest responsible bid. Existing law requires the department to perform construction inspection services for those projects that are on or interfacing with the state highway system, as specified. Existing law establishes a procedure for submitting bids that includes a requirement that design-build entities provide a statement of qualifications submitted to the transportation entity that is verified under oath, subject to penalty of perjury.

This bill would authorize the department to utilize design-build procurement on an unlimited number of projects and would require the department to contract with consultants to perform construction inspection services for those authorized projects. The bill would eliminate the requirement that the department perform the construction inspection services for the projects on or interfacing with the state highway system. By authorizing the design-build method of procurement to be utilized in an unlimited number of projects, the bill would expand the number of projects in which the statement of qualifications requirement, subject to penalty of perjury, is applicable, thereby expanding the scope of an existing crime and imposing a state-mandated local program.

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.  

Section 6821 of the Public Contract Code is
amended to read:

6821.  

(a) The department may utilize the design-build method
of procurement for begin delete up to 10 end delete projects on the state highway system,
based on either best value or lowest responsible bid. begin insert The
department shall contract with consultants to perform construction
inspection services for projects authorized by this subdivision. end insert
begin insert Construction inspection services include, but are not limited to,
material source testing, certification testing, surveying, monitoring
of environmental compliance, independent quality control testing
and inspection, and quality assurance audits. end insert

(b) A regional transportation agency may utilize the design-build
method of procurement to design and construct projects on or
adjacent to the state highway system, including related nonhighway
portions of the project, based on either best value or lowest
responsible bid. A regional transportation agency and the
department shall enter into a cooperative agreement reflecting the
roles and responsibilities assigned by law for a project on or
interfacing with the state highway system authorized under this
subdivision. The cooperative agreement shall also include the
requirement to develop a mutually agreed upon issue resolution
process with a primary objective to ensure the project stays on
schedule and issues between the parties are resolved in a timely
manner.

(c) (1) A regional transportation agency may utilize the
design-build method of procurement, based on either best value
or lowest responsible bid, to design and construct projects on
expressways that are not on the state highway system if the projects
are developed in accordance with an expenditure plan approved
by voters as of January 1, 2014.

(2) The entity responsible for the maintenance of the local streets
and roads within the jurisdiction of the expressway shall be
responsible for the maintenance of the expressway.

(d) A city, county, or city and county shall not utilize the
design-build method of procurement under this chapter. A regional
transportation agency shall not utilize the design-build method of
procurement on behalf of a city, county, or city and county.

begin delete

(e) The design-build authorization in subdivisions (a) and (b)
shall not include the authority to perform construction inspection
services for projects on or interfacing with the state highway
system, which shall be performed by the department consistent
with Section 91.2 of the Streets and Highway Code.

end delete begin delete

(f)

end delete

begin insert (e) end insert  (1) Not later than the first day of July that occurs two years
after a design-build contract is awarded, and each July 1 thereafter
until a project is completed, the department or the regional
transportation agency shall submit a report on the progress of the
project and compliance with this section to the legislative policy
committees having jurisdiction over transportation matters.

(2) The requirement of submitting a report imposed under
paragraph (1) is inoperative on the first day of July four years after
the first report was submitted, pursuant to Section 10231.5 of the
Government Code.

(3) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

SEC. 2.  

Section 6829 of the Public Contract Code is amended
to read:

6829.  

(a) This chapter shall remain in effect only until January
1, 2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.

begin delete

(b) Notwithstanding subdivision (a), if any provision or
application of Section 91.2 of the Streets and Highways Code is
held invalid by a court of competent jurisdiction, this chapter shall
be repealed one year from the date in which the department posts
on its Internet Web site that Section 91.2 of the Streets and
Highways Code has been held invalid.

end delete begin delete

(c)

end delete

begin insert (b) end insert  The repeal of this chapter shall not affect an executed
design-build contract or cooperative agreement entered into
pursuant to this chapter prior to the date of its repeal, regardless
of the stage of the project at the time of repeal.

SEC. 3.  

Section 91.2 of the Streets and Highways Code is
repealed.

begin delete

91.2.  

(a) The department shall perform construction inspection
services for projects on or interfacing with the state highway system
authorized pursuant to Chapter 6.5 (commencing with Section
6820) of Part 1 of Division 2 of the Public Contract Code. The
department shall use department employees or consultants under
contract with the department to perform the services described in
this subdivision and subdivision (b), consistent with Article XXII
of the California Constitution. Construction inspection services
performed by the department for those projects include, but are
not limited to, material source testing, certification testing,
surveying, monitoring of environmental compliance, independent
quality control testing and inspection, and quality assurance audits.
The construction inspection duties and responsibilities of the
department shall include a direct reporting relationship between
the inspectors and senior department engineers responsible for all
inspectors and construction inspection services. The senior
department engineer responsible for construction inspection
services shall be responsible for the acceptance or rejection of the
work.

(b) Notwithstanding any other law, the department shall retain
the authority to stop the contractor’s operation wholly or in part
and take appropriate action when public safety is jeopardized on
a project on or interfacing with the state highway system authorized
pursuant to Chapter 6.5 (commencing with Section 6820) of Part
1 of Division 2 of the Public Contract Code. The department shall
ensure that public safety and convenience is maintained whenever
work is performed under an encroachment permit within the state
highway right-of-way, including, but not limited to, work
performed that includes lane closures, signing, work performed at
night, detours, dust control, temporary pavement quality, crash
cushions, temporary railings, pavement transitions, falsework,
shoring, and delineation. The department shall regularly inspect
the job sites for safety compliance and any possible deficiencies.
If any deficiency is observed, a written notice shall be sent by the
department to the regional transportation agency’s designated
resident engineer to correct the deficiency. Once the deficiency is
corrected, a written notice describing the resolution of the
deficiency shall be sent to the department and documented.

(c) The department shall use department employees or
consultants under contract with the department to perform the
services described in subdivisions (a) and (b), consistent with
Article XXII of the California Constitution. Department employee
and consultant resources necessary for the performance of those
services, including personnel requirements, shall be included in
the department’s capital outlay support program for workload
purposes in the annual Budget Act.

(d) “Construction inspection services” shall not include
surveying work performed as part of a design-build contract.

(e) This section shall remain in effect only until January 1, 2024,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2024, deletes or extends that date.

(f) If any provision or application of this section is held invalid
by a court of competent jurisdiction, the department shall post on
its Internet Web site within 10 business days of the decision of
invalidity that this section has been held invalid.

end delete

SEC. 4.  

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.