BILL NUMBER: SB 937 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Margett
FEBRUARY 23, 2001
An act to amend Section 4104.5 of, to add Sections 9204 and 9205
to, and to repeal Chapter 10 (commencing with Section 19100) of Part
2 of Division 2 of, the Public Contract Code, relating to public
contracts.
LEGISLATIVE COUNSEL'S DIGEST
SB 937, as introduced, Margett. Public contracts: bids and
disputes.
The Subletting and Subcontracting Fair Practices Act requires a
public entity taking bids for construction of a public work or
improvement to establish a date for submission of bids by prime
contractors. Existing law applicable to local agencies requires that
any bids that are submitted after the bid submittal deadline must be
returned unopened to the bidder.
This bill would recast the provisions governing notice of bid
submittal deadlines, and would also apply to state agencies the
requirement that postdeadline bids be returned unopened.
The State Contract Act contains provisions governing the
resolution of disputes between contractors and state agencies,
including establishing a statute of limitations for damages on a
contract with the state and recognizing a cause for the 2nd lowest
bidder on a contract, if the successful bidder violated provisions
governing workers' compensation and unemployment insurance.
This bill would revise these provisions so that they are
applicable to all contracts subject to the Public Contract Code,
including those involving local agencies.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4104.5 of the Public Contract Code is amended
to read:
4104.5. (a) The officer, department, board, or commission taking
bids for construction of any public work or improvement shall
set forth in the bid invitation a date and time for closing
of submission of bids by prime contractors specify in
the bid invitation and public notice the place the bids of the prime
contractors are to be received and the time by which they shall be
received . The date and time shall be extended by no less than
72 hours in the event if the officer,
department, board, or commission issues any material changes,
additions, or deletions to the invitation later than 72 hours prior
to the bid closing. Any bids received after the time specified
in the notice or any extension due to material changes shall be
returned unopened.
(b) As used in this section, the term "material change" means a
change with a substantial cost impact on the total bid as determined
by the awarding agency.
(c) As used in this section, the term "bid invitation" shall
include any documents issued to prime contractors that contain
descriptions of the work to be bid or the content, form, or manner of
submission of bids by bidders.
SEC. 2. Section 9204 is added to the Public Contract Code, to
read:
9204. (a) Presentation of a claim pursuant to Part 3 (commencing
with Section 900) of Division 3.6 of Title 1 of the Government Code
is not required to commence a legal action or arbitration proceeding
for money or damages on a contract with a public entity, but any
action or proceeding shall be commenced not later than six months
after either of the following:
(1) The contracting public entity's final written decision under
contract claim provisions.
(2) The accrual of the cause of action, if there are no contract
claim provisions.
(b) Nothing contained in this section may be construed as
modifying or affecting the provisions of Article 8.1 (commencing with
Section 14410) of Chapter 3 of Part 5 of Division 3 of Title 2 of
the Government Code.
SEC. 3. Section 9205 is added to the Public Contract Code, to
read:
9205. (a) (1) The second lowest bidder, and any person, firm,
association, trust, partnership, labor organization, corporation, or
other legal entity that has, prior to the letting of the bids on the
public works project in question, entered into a contract with the
second lowest bidder, may bring an action in superior court if that
entity suffers damages as a result of the bid of the second lowest
bidder for any contract subject to this part not being accepted due
to the successful bidder's violation, as evidenced by the conviction
of the successful bidder therefor, of any provision of Division 4
(commencing with Section 3200) of the Labor Code or of the
Unemployment Insurance Code, or of both.
(2) There is a rebuttable presumption that a successful bidder who
has been convicted of a violation of any provision of Division 4
(commencing with Section 3200) of the Labor Code or of the
Unemployment Insurance Code, or of both, was awarded the bid because
that successful bidder was able to lower the bid due to this
violation or these violations occurring on the contract for public
work awarded by the public entity.
(b) In an action brought pursuant to this section, the court may
award costs and reasonable attorney's fees, in an amount to be
determined in the court's discretion, to the prevailing party.
(c) For purposes of an action brought pursuant to this section:
(1) Employee status shall be determined pursuant to Division 4
(commencing with Section 3200) of the Labor Code with respect to
alleged violations of that division, pursuant to the Unemployment
Insurance Code with respect to alleged violations of that code, or
pursuant to Section 2750.5 of the Labor Code with respect to alleged
violations of either Division 4 (commencing with Section 3200) or of
the Unemployment Insurance Code, or of both.
(2) "Second lowest bidder" means the second lowest qualified
bidder deemed responsive by the public entity awarding the contract
for public work.
(3) The "second lowest bidder" and the "successful bidder" may
include any person, firm, association, corporation, or other legal
entity.
(d) A second lowest bidder who has been convicted of a violation
of any provision of Division 4 (commencing with Section 3200) of the
Labor Code or of the Unemployment Insurance Code, or both, within one
year prior to filing the bid for public work, and who has failed to
take affirmative steps to correct that violation or those violations,
is prohibited from bringing any action authorized by this section.
SEC. 4. Chapter 10 (commencing with Section 19100) of Part 2 of
Division 2 of the Public Contract Code is repealed.