BILL NUMBER: AB 566	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member O'Donnell

                        FEBRUARY 24, 2015

   An act to amend  Section 8070   Sections
17406 and 17407  of  , and to add Section 17407.5 to, 
the Education Code,   and to amend Section 20111.6 of the Public
Contract Code,   relating to  career technical
education.   school facilities. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 566, as amended, O'Donnell.  Career technical
education: advisory committee.   School facilities:
leasing property: construction contracts.  
   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.  
   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.  

   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.  
   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.  
   This bill would impose these requirements for a public project in
this context regardless of the funding source for the public project.
 
   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.  
   This bill would make nonsubstantive changes to these provisions.

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


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

   SECTION 1.    Section 17406 of the   
 Education Code   , as amended by Section 1 of Chapter
408 of the Statutes of 2014, is amended to read: 
   17406.  (a) (1) Notwithstanding Section 17417, the governing board
of a school district, without advertising for bids, may let, for a
minimum rental of one dollar ($1) a year, to  any 
 a  person, firm, or corporation  any  real
property that belongs to the  school  district if the
instrument by which this property is let requires the lessee therein
to construct on the demised premises, or provide for the construction
thereon of, a building or buildings for the use of the school
district during the term of the lease, and provides that title to
that building shall vest in the school district at the expiration of
that term. The instrument may provide for the means or methods by
which that title shall vest in the school district  prior to
  before  the expiration of that term, and shall
contain other terms and conditions as the governing board  of the
school district  may deem to be in the best interest of the
school district.
   (2)  If the instrument meets the criteria of subdivision
(a) of Section 20111.6 of the Public Contract Code, the 
 For a public project, as defined in subdivision (c) of Section
220   02 of the Public Contract Code, regardless of its
funding source, an  instrument  created pursuant to
paragraph (1)  shall also require that a person, firm, or
corporation that constructs the building, including, but not limited
to, the prime contractor and, if used, electrical, mechanical, and
plumbing subcontractor, shall be subject to the same prequalification
requirements for prospective bidders described in  subdivisions
(b) to (m), inclusive, of  Section 20111.6 of the Public
Contract Code, including the requirement for the completion and
submission of a standardized prequalification questionnaire and
financial statement that is verified under oath and is not a public
record.
   (b)  Any   A  rental of property that
complies with subdivision (a) as it reads on the day that the lease
is entered into shall be deemed to have thereby required the payment
of adequate consideration for purposes of Section 6 of Article XVI of
the California Constitution.
   (c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
   SEC. 2.    Section 17407 of the   Education
Code   , as amended by Section 3 of Chapter 408 of the
Statutes   of 2014, is amended to read: 
   17407.  (a) The governing board of  any   a
 school district may enter into an agreement with  any
  a  person, firm, or corporation under which that
person, firm, or corporation shall construct, or provide for the
construction of, a building to be used by the  school 
district upon a designated site and lease the building and site to
the  school  district. The instrument shall provide that the
title to the building and site shall vest in the  school 
district at the expiration of the lease, and may provide the means or
method by which the title to the building and site shall vest in the
 school  district  prior to   before
 the expiration of the lease, and shall contain other terms and
conditions as the governing board of the  school  district
deems to be in the best interest of the  school  district.
   (b) The agreement entered into shall be with the lowest
responsible bidder who shall give the security that  any
  a governing  board  of a school district
 requires. The  governing  board  of a school
district  may reject all bids. For the purpose of securing bids
the  governing  board  of a school district  shall
publish at least once a week for two weeks in  some 
 a  newspaper of general circulation published in the 
school  district, or if there is no paper, then in  some
  a  paper of general circulation circulated in
the county, a notice calling for bids, stating the proposed terms of
the agreement and the time and place where bids will be opened.
   (c)  If the agreement meets the criteria of subdivision
(a) of Section 20111.6 of the Public Contract Code, the 
 For a public project, as defined in subdivision (c) of Section
220   02 of the Public Contract Code, regardless of its
funding source, an  agreement  entered into pursuant to
  subdivision (a)  shall also require that a person,
firm, or corporation that constructs the building, including, but not
limited to, the prime contractor and, if used, electrical,
mechanical, and plumbing subcontractor, under this section shall be
subject to the same prequalification requirements for prospective
bidders described in  subdivisions (b) to (m), inclusive, of
 Section 20111.6 of the Public Contract Code, including the
requirement for the completion and submission of a standardized
prequalification questionnaire and financial statement that is
verified under oath and is not a public record.
   (d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
   SEC. 3.    Section 17407.5 is added to the  
Education Code   , to read:  
   17407.5.  (a) The governing board of a school district shall not
enter into an agreement pursuant to Section 17406 or 17407 with any
entity unless the entity provides to the governing board of the
school district an enforceable commitment 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.
   (b) For purposes of this section:
   (1) "Apprenticeable occupation" means an occupation for which the
Chief of the Division of Apprenticeship Standards of the Department
of Industrial Relations had approved an apprenticeship program
pursuant to Section 3075 of the Labor Code before January 1, 2014.
   (2) "Chief" means the Chief of the Division of Apprenticeship
Standards of the Department of Industrial Relations.
   (3) "Skilled and trained workforce" means a workforce that meets
all of the following conditions:
   (A) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by the
chief.
   (B) (i) As of January 1, 2016, at least 30 percent of the skilled
journeypersons 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 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.
   (ii) As of January 1, 2017, at least 40 percent of the skilled
journeypersons 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 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.
   (iii) As of January 1, 2018, at least 50 percent of the skilled
journeypersons 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 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.
   (iv) As of January 1, 2019, at least 60 percent of the skilled
journeypersons 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 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.
   (C) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief before January 1, 1995, up to
one-half of the graduation percentage requirements of subparagraph
(B) may be satisfied by skilled journeypersons who commenced working
in the apprenticeable occupation before the chief's approval of an
apprenticeship program for that occupation in the county in which the
project is located.
   (4) "Skilled journeyperson" means a worker who either:
   (A) 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.

   (B) 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.
   (c) 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:
   (1) (A) The entity's agreement with the governing board of the
school district that the entity and its subcontractors at every tier
will comply with the requirements of this section and that the entity
will provide to the governing board of the school district, on a
monthly basis while the project or contract is being performed, a
report demonstrating that the entity and its subcontractors are
complying with the requirements of this section.
   (B) If the entity fails to provide to the governing board of the
school district the monthly report pursuant to subparagraph (A), the
governing board of the school district shall immediately cease making
payments to the entity pursuant to the instrument or agreement
described in Section 17406 or 17407.
   (C) The monthly report provided to the governing board of the
school district pursuant to this paragraph shall be 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), and
shall be open to public inspection.
   (2) If the governing board of a school district 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 section, the entity's agreement
that it will become a party to that project labor agreement.
   (3) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this section and that
will bind the entity and all its subcontractors at every tier
performing the project or contract. 
   SEC.   4.    Section 20111.6 of the 
Public Contract Code   is amended to read: 
   20111.6.  (a) This section shall apply only to public projects, as
defined in subdivision (c) of Section 22002,  for which the
governing board of the district uses funds received pursuant to the
Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of Title
1 of the Education Code) or any funds from any future state school
bond   regardless of the funding source,  for a
public project that involves a projected expenditure of one million
dollars ($1,000,000) or more.
   (b) If the governing board of the  school  district
enters into a contract meeting the criteria of subdivision (a), then
the governing board of the  school  district shall require
that prospective bidders for a construction contract complete and
submit to the  governing  board of the  school 
district a standardized prequalification questionnaire and financial
statement. The questionnaire and financial statement shall be
verified under oath by the bidder in the manner in which civil
pleadings in civil actions are verified. The questionnaires and
financial statements shall not be public records and shall not be
open to public inspection.
   (c) The  governing  board of the  school 
district shall adopt and apply a uniform system of rating bidders on
the basis of the completed questionnaires and financial statements.
This system shall also apply to a person, firm, or corporation that
constructs a building described in Section 17406 or 17407 of the
Education Code.
   (d) The questionnaire and financial statement described in
subdivision (b), and the uniform system of rating bidders described
in subdivision (c), shall cover, at a minimum, the issues covered by
the standardized questionnaire and model guidelines for rating
bidders developed by the Department of Industrial Relations pursuant
to subdivision (a) of Section 20101.
   (e) Each prospective bidder shall be furnished by the school
district letting the contract with a standardized proposal form that,
when completed and executed, shall be submitted as his or her bid.
Bids not presented on the forms so furnished shall be disregarded.
   (f) A proposal form required pursuant to subdivision (e) shall not
be accepted from any person or other entity that is required to
submit a completed questionnaire and financial statement for
prequalification pursuant to subdivision (b) or from any person or
other entity that uses a subcontractor that is required to submit a
completed questionnaire and financial statement for prequalification
pursuant to subdivision (b), but has not done so at least 10 business
days  prior to   before  the date fixed
for the public opening of sealed bids or has not been prequalified
for at least five business days  prior to  
before  that date. The  school  district may require
the completed questionnaire and financial statement for
prequalification to be submitted more than 10 business days 
prior to   before  the fixed date for the public
opening of sealed bids. The  school  district may also
require the prequalification more than five business days 
prior to   before  the fixed date.
   (g) (1) The  governing  board of the  school 
district may establish a process for prequalifying prospective
bidders pursuant to this section on a quarterly or annual basis and a
prequalification pursuant to this process shall be valid for one
calendar year following the date of initial prequalification.
   (2) The  governing  board  of the school district
 shall establish a process to prequalify a person, firm, or
corporation, including, but not limited to, the prime contractor and,
if used, an electrical, mechanical, and plumbing subcontractor, to
construct a building described in Section 17406 or 17407 of the
Education Code on a quarterly or annual basis. A prequalification
pursuant to this process shall be valid for one calendar year
following the date of initial prequalification.
   (h) This section shall not preclude the governing board of the
 school  district from prequalifying or disqualifying a
subcontractor of any specialty classification described in Section
7058 of the Business and Professions Code.
   (i) For purposes of this section, bidders shall include both of
the following:
   (1) A prime contractor, as defined in Section 4113, that is either
of the following:
   (A) A general engineering contractor described in Section 7056 of
the Business and Professions Code.
   (B) A general building contractor described in Section 7057 of the
Business and Professions Code.
   (2) If utilized, each electrical, mechanical, and plumbing
contractor, whether as a prime contractor or as a subcontractor, as
defined in Section 4113.
   (j) If a public project covered by this section includes
electrical, mechanical, or plumbing components that will be performed
by electrical, mechanical, or plumbing contractors, a list of
prequalified general contractors and electrical, mechanical, and
plumbing subcontractors shall be made available by the school
district to all bidders at least five business days  prior to
  before  the dates fixed for the public opening
of sealed bids. The  school  district may require the list
to be made available more than five business days  prior to
  before  the fixed dates for the public opening of
sealed bids.
   (k) For purposes of this section, electrical, mechanical, and
plumbing subcontractors are contractors licensed pursuant to Section
7058 of the Business and Professions Code, specifically contractors
holding C-4, C-7, C-10, C-16, C-20, C-34, C-36, C-38, C-42, C-43, and
C-46 licenses, pursuant to regulations of the Contractors' State
License Board.
   (l) This section shall not apply to a school district with an
average daily attendance of less than 2,500.
   (m) (1) This section shall apply only to contracts awarded on or
after January 1, 2014.
   (2) The amendments made to this section by the act adding this
paragraph shall apply only to contracts awarded on or after January
1, 2015.
   (n) (1) On or before January 1, 2018, the Director of Industrial
Relations shall (A) submit a report to the Legislature evaluating
whether, during the years this section has applied to contracts,
violations of the Labor Code on school district projects have
decreased as compared to the same number of years immediately
preceding the enactment of this section, and (B) recommend
improvements to the system for prequalifying contractors and
subcontractors on school district projects.
   (2) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
   (o) This section shall become inoperative on January 1, 2019, and,
as of July 1, 2019, is repealed. 
  SECTION 1.    Section 8070 of the Education Code
is amended to read:
   8070.  (a) The governing board of each school district
participating in a career technical education program shall appoint a
career technical education advisory committee to develop
recommendations on the program and to provide liaison between the
district and potential employers.
   (b) The committee shall consist of one or more representatives of
the general public knowledgeable about the disadvantaged, pupils,
teachers, business, industry, school administration, and the field
office of the Employment Development Department.