Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 566


Introduced by Assembly Member O'Donnell

February 24, 2015


An act to amendbegin delete Section 8070end deletebegin insert Sections 17406 and 17407end insert ofbegin insert, and to add Section 17407.5 to,end insert the Education Code,begin insert and to amend Section 20111.6 of the Public Contract Code,end insert relating to begin deletecareer technical education. end deletebegin insertschool facilities.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 566, as amended, O'Donnell. begin deleteCareer technical education: advisory committee. end deletebegin insertSchool facilities: leasing property: construction contracts.end insert

begin insert

Existing law authorizes the governing board of a school district, without advertising for bids, to lease real property for a minimum rental of $1 per year if the instrument by which this property is leased requires the lessee to construct, or provide for the construction of, a building to be used by the school district and provides that the title to the building shall vest in the school district at the end of the lease. Existing law, until January 1, 2019, also requires the instrument, if funds for the instrument derive from the Leroy F. Greene School Facilities Act of 1998 or from any future state school bond for a public project that involves a projected expenditure of $1,000,000 or more, to provide that the person, firm, or corporation that constructs the building shall comply with specified prequalification requirements.

end insert
begin insert

Existing law also authorizes the governing board of a school district to enter into an agreement with the lowest responsible bidder to construct, or provide for the construction of, a building to be leased and used by the school district upon a designated site if the instrument provides that the title to the building and site shall vest in the school district at the end of the lease. Existing law, until January 1, 2019, requires the agreement, if funds for the agreement derive from the Leroy F. Greene School Facilities Act of 1998 or from any future state school bond for a public project that involves a projected expenditure of $1,000,000 or more, to provide that the person, firm, or corporation that constructs the building shall comply with specified prequalification requirements.

end insert
begin insert

This bill would, until January 1, 2019, require the instrument and agreement to provide that the person, firm, or corporation that constructs the building to comply with specified prequalification requirements in this context regardless of the funding source for the public project. The bill would require that certain conditions relating to the use of a skilled and trained workforce on the project or contract be satisfied before the governing board of a school district may enter into a contract with any entity for the construction, or for providing for the construction of, a building to be leased or used by the school district.

end insert
begin insert

Existing law requires, until January 1, 2019, the governing board of a school district that enters into a contract for a public project, as defined, for which the board uses moneys received pursuant to the Leroy F. Greene School Facilities Act of 1998 or moneys from future state school bonds for a public project that involves a projected expenditure of $1,000,000 or more, to require prospective bidders for a construction contract to complete and submit a standardized prequalification questionnaire and financial statement, as provided.

end insert
begin insert

This bill would impose these requirements for a public project in this context regardless of the funding source for the public project.

end insert
begin delete

Existing law requires the governing board of each school district participating in a career technical education program to appoint a career technical education advisory committee, as specified, to develop recommendations on the program and to provide liaison between the district and potential employers.

end delete
begin delete

This bill would make nonsubstantive changes to these provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17406 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
2by Section 1 of Chapter 408 of the Statutes of 2014, is amended
3to read:end insert

4

17406.  

(a) (1) Notwithstanding Section 17417, the governing
5board of a school district, without advertising for bids, may let,
6for a minimum rental of one dollar ($1) a year, tobegin delete anyend deletebegin insert aend insert person,
7firm, or corporationbegin delete anyend delete real property that belongs to thebegin insert schoolend insert
8 district if the instrument by which this property is let requires the
9lessee therein to construct on the demised premises, or provide for
10the construction thereon of, a building or buildings for the use of
11the school district during the term of the lease, and provides that
12title to that building shall vest in the school district at the expiration
13of that term. The instrument may provide for the means or methods
14by which that title shall vest in the school districtbegin delete prior toend deletebegin insert beforeend insert
15 the expiration of that term, and shall contain other terms and
16conditions as the governing boardbegin insert of the school districtend insert may deem
17to be in the best interest of the school district.

18(2) begin deleteIf the instrument meets the criteria of subdivision (a) of
19Section 20111.6 of the Public Contract Code, the end delete
begin insertFor a public
20project, as defined in subdivision (c) of Section 220end insert
begin insert02 of the Public
21Contract Code, regardless of its funding source, an end insert
instrument
22begin insert created pursuant to paragraph (1)end insert shall also require that a person,
23firm, or corporation that constructs the building, including, but not
24limited to, the prime contractor and, if used, electrical, mechanical,
25and plumbing subcontractor, shall be subject to the same
26prequalification requirements for prospective bidders described in
27begin insert subdivisions (b) to (m), inclusive, ofend insert Section 20111.6 of the Public
28Contract Code, including the requirement for the completion and
29submission of a standardized prequalification questionnaire and
30financial statement that is verified under oath and is not a public
31record.

32(b) begin deleteAny end deletebegin insertA end insertrental of property that complies with subdivision (a)
33as it reads on the day that the lease is entered into shall be deemed
34to have thereby required the payment of adequate consideration
35for purposes of Section 6 of Article XVI of the California
36Constitution.

P4    1(c) This section shall remain in effect only until January 1, 2019,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2019, deletes or extends that date.

4begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 17407 of the end insertbegin insertEducation Codeend insertbegin insert, as amended by
5Section 3 of Chapter 408 of the Statutes of 2014, is amended to
6read:end insert

7

17407.  

(a) The governing board ofbegin delete anyend deletebegin insert aend insert school district may
8enter into an agreement withbegin delete anyend deletebegin insert aend insert person, firm, or corporation
9under which that person, firm, or corporation shall construct, or
10provide for the construction of, a building to be used by thebegin insert schoolend insert
11 district upon a designated site and lease the building and site to
12thebegin insert schoolend insert district. The instrument shall provide that the title to
13the building and site shall vest in thebegin insert schoolend insert district at the expiration
14of the lease, and may provide the means or method by which the
15title to the building and site shall vest in thebegin insert schoolend insert districtbegin delete prior
16toend delete
begin insert beforeend insert the expiration of the lease, and shall contain other terms
17and conditions as the governing board of thebegin insert schoolend insert district deems
18to be in the best interest of thebegin insert schoolend insert district.

19(b) The agreement entered into shall be with the lowest
20responsible bidder who shall give the security thatbegin delete anyend deletebegin insert a governingend insert
21 boardbegin insert of a school districtend insert requires. Thebegin insert governingend insert boardbegin insert of a school
22districtend insert
may reject all bids. For the purpose of securing bids the
23begin insert governingend insert boardbegin insert of a school districtend insert shall publish at least once a
24week for two weeks inbegin delete someend deletebegin insert aend insert newspaper of general circulation
25published in thebegin insert schoolend insert district, or if there is no paper, then inbegin delete someend delete
26begin insert aend insert paper of general circulation circulated in the county, a notice
27calling for bids, stating the proposed terms of the agreement and
28the time and place where bids will be opened.

29(c) begin deleteIf the agreement meets the criteria of subdivision (a) of
30Section 20111.6 of the Public Contract Code, the end delete
begin insertFor a public
31project, as defined in subdivision (c) of Section 220end insert
begin insert02 of the Public
32Contract Code, regardless of its funding source, an end insert
agreement
33begin insert entered into pursuant toend insertbegin insert subdivision (a)end insert shall also require that a
34person, firm, or corporation that constructs the building, including,
35but not limited to, the prime contractor and, if used, electrical,
36mechanical, and plumbing subcontractor, under this section shall
37be subject to the same prequalification requirements for prospective
38bidders described inbegin insert subdivisions (b) to (m), inclusive, ofend insert Section
3920111.6 of the Public Contract Code, including the requirement
40for the completion and submission of a standardized
P5    1prequalification questionnaire and financial statement that is
2verified under oath and is not a public record.

3(d) This section shall remain in effect only until January 1, 2019,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2019, deletes or extends that date.

6begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 17407.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
7read:end insert

begin insert
8

begin insert17407.5.end insert  

(a) The governing board of a school district shall
9not enter into an agreement pursuant to Section 17406 or 17407
10with any entity unless the entity provides to the governing board
11of the school district an enforceable commitment that the entity
12and its subcontractors at every tier will use a skilled and trained
13workforce to perform all work on the project or contract that falls
14within an apprenticeable occupation in the building and
15construction trades.

16(b) For purposes of this section:

17(1) “Apprenticeable occupation” means an occupation for
18which the Chief of the Division of Apprenticeship Standards of the
19Department of Industrial Relations had approved an apprenticeship
20 program pursuant to Section 3075 of the Labor Code before
21January 1, 2014.

22(2) “Chief” means the Chief of the Division of Apprenticeship
23Standards of the Department of Industrial Relations.

24(3) “Skilled and trained workforce” means a workforce that
25meets all of the following conditions:

26(A) All the workers are either skilled journeypersons or
27apprentices registered in an apprenticeship program approved by
28the chief.

29(B) (i) As of January 1, 2016, at least 30 percent of the skilled
30journeypersons employed to perform work on the contract or
31project by the entity and each of its subcontractors at every tier
32are graduates of an apprenticeship program for the applicable
33occupation that was either approved by the chief pursuant to
34 Section 3075 of the Labor Code or located outside California and
35approved for federal purposes pursuant to the apprenticeship
36regulations adopted by the federal Secretary of Labor.

37(ii) As of January 1, 2017, at least 40 percent of the skilled
38journeypersons employed to perform work on the contract or
39project by the entity and each of its subcontractors at every tier
40are graduates of an apprenticeship program for the applicable
P6    1occupation that was either approved by the chief pursuant to
2Section 3075 of the Labor Code or located outside California and
3approved for federal purposes pursuant to the apprenticeship
4regulations adopted by the federal Secretary of Labor.

5(iii) As of January 1, 2018, at least 50 percent of the skilled
6journeypersons employed to perform work on the contract or
7project by the entity and each of its subcontractors at every tier
8are graduates of an apprenticeship program for the applicable
9occupation that was either approved by the chief pursuant to
10Section 3075 of the Labor Code or located outside California and
11approved for federal purposes pursuant to the apprenticeship
12regulations adopted by the federal Secretary of Labor.

13(iv) As of January 1, 2019, at least 60 percent of the skilled
14journeypersons employed to perform work on the contract or
15project by the entity and each of its subcontractors at every tier
16are graduates of an apprenticeship program for the applicable
17occupation that was either approved by the chief pursuant to
18Section 3075 of the Labor Code or located outside California and
19approved for federal purposes pursuant to the apprenticeship
20regulations adopted by the federal Secretary of Labor.

21(C) For an apprenticeable occupation in which no
22apprenticeship program had been approved by the chief before
23 January 1, 1995, up to one-half of the graduation percentage
24requirements of subparagraph (B) may be satisfied by skilled
25journeypersons who commenced working in the apprenticeable
26occupation before the chief's approval of an apprenticeship
27program for that occupation in the county in which the project is
28located.

29(4) “Skilled journeyperson” means a worker who either:

30(A) Graduated from an apprenticeship program for the
31applicable occupation that was approved by the chief or located
32outside California and approved for federal purposes pursuant to
33the apprenticeship regulations adopted by the federal Secretary
34of Labor.

35(B) Has at least as many hours of on-the-job experience in the
36applicable occupation as would be required to graduate from an
37apprenticeship program for the applicable occupation that is
38approved by the chief.

P7    1(c) An entity’s commitment that a skilled and trained workforce
2will be used to perform the project or contract may be established
3by any of the following:

4(1) (A) The entity’s agreement with the governing board of the
5school district that the entity and its subcontractors at every tier
6will comply with the requirements of this section and that the entity
7will provide to the governing board of the school district, on a
8monthly basis while the project or contract is being performed, a
9report demonstrating that the entity and its subcontractors are
10complying with the requirements of this section.

11(B) If the entity fails to provide to the governing board of the
12school district the monthly report pursuant to subparagraph (A),
13the governing board of the school district shall immediately cease
14making payments to the entity pursuant to the instrument or
15agreement described in Section 17406 or 17407.

16(C) The monthly report provided to the governing board of the
17school district pursuant to this paragraph shall be a public record
18under the California Public Records Act (Chapter 3.5 (commencing
19with Section 6250) of Division 7 of Title 1 of the Government
20Code), and shall be open to public inspection.

21(2) If the governing board of a school district has entered into
22a project labor agreement that will bind all contractors and
23subcontractors performing work on the project or contract and
24that includes the requirements of this section, the entity’s
25agreement that it will become a party to that project labor
26agreement.

27(3) Evidence that the entity has entered into a project labor
28agreement that includes the requirements of this section and that
29will bind the entity and all its subcontractors at every tier
30performing the project or contract.

end insert
31begin insert

begin insertSEC.end insertbegin insert 4.end insert  

end insert

begin insertSection 20111.6 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
32amended to read:end insert

33

20111.6.  

(a) This section shall apply only to public projects,
34as defined in subdivision (c) of Section 22002,begin delete for which the
35governing board of the district uses funds received pursuant to the
36Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
37(commencing with Section 17070.10) of Part 10 of Division 1 of
38Title 1 of the Education Code) or any funds from any future state
39school bondend delete
begin insert regardless of the funding source,end insert for a public project
P8    1that involves a projected expenditure of one million dollars
2($1,000,000) or more.

3(b) If the governing board of thebegin insert schoolend insert district enters into a
4contract meeting the criteria of subdivision (a), then the governing
5board of thebegin insert schoolend insert district shall require that prospective bidders
6for a construction contract complete and submit to thebegin insert governingend insert
7 board of the begin insertschool end insertdistrict a standardized prequalification
8questionnaire and financial statement. The questionnaire and
9financial statement shall be verified under oath by the bidder in
10the manner in which civil pleadings in civil actions are verified.
11The questionnaires and financial statements shall not be public
12records and shall not be open to public inspection.

13(c) Thebegin insert governingend insert board of thebegin insert schoolend insert district shall adopt and
14apply a uniform system of rating bidders on the basis of the
15completed questionnaires and financial statements. This system
16shall also apply to a person, firm, or corporation that constructs a
17building described in Section 17406 or 17407 of the Education
18Code.

19(d) The questionnaire and financial statement described in
20subdivision (b), and the uniform system of rating bidders described
21in subdivision (c), shall cover, at a minimum, the issues covered
22by the standardized questionnaire and model guidelines for rating
23bidders developed by the Department of Industrial Relations
24pursuant to subdivision (a) of Section 20101.

25(e) Each prospective bidder shall be furnished by the school
26district letting the contract with a standardized proposal form that,
27when completed and executed, shall be submitted as his or her bid.
28Bids not presented on the forms so furnished shall be disregarded.

29(f) A proposal form required pursuant to subdivision (e) shall
30not be accepted from any person or other entity that is required to
31submit a completed questionnaire and financial statement for
32prequalification pursuant to subdivision (b) or from any person or
33other entity that uses a subcontractor that is required to submit a
34completed questionnaire and financial statement for
35prequalification pursuant to subdivision (b), but has not done so
36at least 10 business daysbegin delete prior toend deletebegin insert beforeend insert the date fixed for the public
37opening of sealed bids or has not been prequalified for at least five
38business daysbegin delete prior toend deletebegin insert beforeend insert that date. Thebegin insert schoolend insert district may
39require the completed questionnaire and financial statement for
40prequalification to be submitted more than 10 business daysbegin delete prior
P9    1toend delete
begin insert beforeend insert the fixed date for the public opening of sealed bids. The
2begin insert schoolend insert district may also require the prequalification more than five
3business daysbegin delete prior toend deletebegin insert beforeend insert the fixed date.

4(g) (1) Thebegin insert governingend insert board of thebegin insert schoolend insert district may establish
5a process for prequalifying prospective bidders pursuant to this
6section on a quarterly or annual basis and a prequalification
7pursuant to this process shall be valid for one calendar year
8following the date of initial prequalification.

9(2) Thebegin insert governingend insert boardbegin insert of the school districtend insert shall establish a
10process to prequalify a person, firm, or corporation, including, but
11not limited to, the prime contractor and, if used, an electrical,
12mechanical, and plumbing subcontractor, to construct a building
13described in Section 17406 or 17407 of the Education Code on a
14quarterly or annual basis. A prequalification pursuant to this
15process shall be valid for one calendar year following the date of
16initial prequalification.

17(h) This section shall not preclude the governing board of the
18begin insert schoolend insert district from prequalifying or disqualifying a subcontractor
19of any specialty classification described in Section 7058 of the
20Business and Professions Code.

21(i) For purposes of this section, bidders shall include both of
22the following:

23(1) A prime contractor, as defined in Section 4113, that is either
24of the following:

25(A) A general engineering contractor described in Section 7056
26of the Business and Professions Code.

27(B) A general building contractor described in Section 7057 of
28the Business and Professions Code.

29(2) If utilized, each electrical, mechanical, and plumbing
30contractor, whether as a prime contractor or as a subcontractor, as
31defined in Section 4113.

32(j) If a public project covered by this section includes electrical,
33mechanical, or plumbing components that will be performed by
34electrical, mechanical, or plumbing contractors, a list of
35prequalified general contractors and electrical, mechanical, and
36plumbing subcontractors shall be made available by the school
37district to all bidders at least five business daysbegin delete prior toend deletebegin insert beforeend insert the
38dates fixed for the public opening of sealed bids. Thebegin insert schoolend insert district
39may require the list to be made available more than five business
P10   1daysbegin delete prior toend deletebegin insert beforeend insert the fixed dates for the public opening of sealed
2bids.

3(k) For purposes of this section, electrical, mechanical, and
4plumbing subcontractors are contractors licensed pursuant to
5Section 7058 of the Business and Professions Code, specifically
6contractors holding C-4, C-7, C-10, C-16, C-20, C-34, C-36, C-38,
7C-42, C-43, and C-46 licenses, pursuant to regulations of the
8Contractors’ State License Board.

9(l) This section shall not apply to a school district with an
10average daily attendance of less than 2,500.

11(m) (1) This section shall apply only to contracts awarded on
12or after January 1, 2014.

13(2) The amendments made to this section by the act adding this
14paragraph shall apply only to contracts awarded on or after January
151, 2015.

16(n) (1) On or before January 1, 2018, the Director of Industrial
17Relations shall (A) submit a report to the Legislature evaluating
18whether, during the years this section has applied to contracts,
19violations of the Labor Code on school district projects have
20decreased as compared to the same number of years immediately
21preceding the enactment of this section, and (B) recommend
22improvements to the system for prequalifying contractors and
23subcontractors on school district projects.

24(2) A report to be submitted pursuant to this subdivision shall
25be submitted in compliance with Section 9795 of the Government
26Code.

27(o) This section shall become inoperative on January 1, 2019,
28and, as of July 1, 2019, is repealed.

begin delete29

SECTION 1.  

Section 8070 of the Education Code is amended
30to read:

31

8070.  

(a) The governing board of each school district
32participating in a career technical education program shall appoint
33a career technical education advisory committee to develop
34recommendations on the program and to provide liaison between
35the district and potential employers.

36(b) The committee shall consist of one or more representatives
37of the general public knowledgeable about the disadvantaged,
38pupils, teachers, business, industry, school administration, and the
39field office of the Employment Development Department.

end delete


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