California Legislature—2015–16 First Extraordinary Session

Senate BillNo. 9


Introduced by Senator Moorlach

(Coauthors: Senators Anderson, Bates, Fuller, Huff, Nielsen, Runner, Stone, and Vidak)

July 16, 2015


An act to add Section 14009 to, and to add Article 2.6 (commencing with Section 14140) to Chapter 2 of Part 5 of Division 3 of Title 2 of, the Government Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 9, as introduced, Moorlach. Department of Transportation.

(1) Existing law creates the Department of Transportation with various powers and duties relative to the state highway system and other transportation programs.

This bill would prohibit the department from using any nonrecurring funds, including, but not limited to, loan repayments, bond funds, or grant funds, to pay the salaries or benefits of any permanent civil service position within the department.

(2) Article XXII of the California Constitution grants to the State of California and all other governmental entities the choice and authority to contract with qualified private entities for architectural and engineering services for all public works of improvement.

This bill would require the Department of Transportation to contract with qualified private entities for architectural and engineering services with respect to public works of improvement undertaken by the department, with a minimum of 15% of the total annual value of these services to be contracted to qualified private entities beginning on July 1, 2016, and increasing each year to a minimum of 50% by July 1, 2023.

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

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

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Over the next 10 years, the state faces a $59 billion shortfall
4to adequately maintain the state highway system in a basic state
5of good repair.

6(b) The 21st Annual Highway Report by the Reason Foundation,
7published in September 2014, found the following:

8(1) California has 50,462 lane miles of highways under the
9administration of the Department of Transportation (Caltrans).

10(2) Overall, California spent $501,136 per state mile of highway,
11more than three times the national average, yet California’s state
12highway system ranks 45th in overall performance and cost
13effectiveness.

14(3) California spent $102,889 per state mile of highway
15specifically on maintenance, nearly four times the national average.

16(4) California spent $48,754 per state mile of highway
17specifically on administration, more than four times the national
18average.

19(c) Proposition 35, approved by voters in 2000, allows Caltrans,
20without limitation, to contract for architectural and engineering
21work. Currently, Caltrans only contracts for 10 percent of this
22work, while 90 percent is completed by permanent state staff,
23resulting in an inability to adjust staffing levels as workload
24fluctuates.

25(d) Hiring permanent state staff with limited-term or one-time
26funding is fiscally imprudent and leads to structural funding
27deficiencies.

28(e) According to the Legislative Analyst’s Office, in the Capital
29Outlay Support Program Review report issued in May 2014, the
30Capital Outlay Support Program is overstaffed by approximately
313,500 full-time equivalent positions, at a cost of more than $500
32million annually.

33

SEC. 2.  

Section 14009 is added to the Government Code, to
34read:

P3    1

14009.  

The department may not use any nonrecurring funds,
2including, but not limited to, loan repayments, bond funds, or grant
3funds, to pay the salaries or benefits of any permanent civil service
4position within the department.

5

SEC. 3.  

Article 2.6 (commencing with Section 14140) is added
6to Chapter 2 of Part 5 of Division 3 of Title 2 of the Government
7Code
, to read:

8 

9Article 2.6.  Architectural and Engineering Services
10

 

11

14140.  

The department shall implement Article XXII of the
12California Constitution by contracting with qualified private entities
13for architectural and engineering services, as defined in Section
144529.10, with respect to public works of improvement undertaken
15by the department, as follows:

16(a) A minimum of 15 percent of the total annual value of
17architectural and engineering services required by the department
18shall be contracted to qualified private entities for the fiscal year
19beginning on July 1, 2016.

20(b) A minimum of 20 percent of the total annual value of
21architectural and engineering services required by the department
22shall be contracted to qualified private entities for the fiscal year
23beginning on July 1, 2017.

24(c) A minimum of 25 percent of the total annual value of
25architectural and engineering services required by the department
26shall be contracted to qualified private entities for the fiscal year
27beginning on July 1, 2018.

28(d) A minimum of 30 percent of the total annual value of
29architectural and engineering services required by the department
30shall be contracted to qualified private entities for the fiscal year
31beginning on July 1, 2019.

32(e) A minimum of 35 percent of the total annual value of
33architectural and engineering services required by the department
34shall be contracted to qualified private entities for the fiscal year
35beginning on July 1, 2020.

36(f) A minimum of 40 percent of the total annual value of
37architectural and engineering services required by the department
38shall be contracted to qualified private entities for the fiscal year
39beginning on July 1, 2021.

P4    1(g) A minimum of 45 percent of the total annual value of
2architectural and engineering services required by the department
3shall be contracted to qualified private entities for the fiscal year
4beginning on July 1, 2022.

5(h) A minimum of 50 percent of the total annual value of
6architectural and engineering services required by the department
7shall be contracted to qualified private entities for the fiscal year
8beginning on July 1, 2023, and in subsequent fiscal years.



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