BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 937
                                                                  Page  1

           Date of Hearing:   June 4, 2002

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                  Lou Correa, Chair
                   SB 937 (Margett) - As Amended:  January 17, 2002

           SENATE VOTE  :   40-0
           
          SUBJECT  :   Public contracts: bids and disputes.

           SUMMARY  :   Requires that late bids on state public works  
          contracts be returned unopened, and clarifies disclosure  
          requirements for bid invitations.  Specifically,  this bill  :

          1)Requires that late bids on state public works contracts be  
            returned unopened. 

          2)Requires that bid invitations specify the place where bids are  
            to be received. 

          3)Requires that public notice of bid invitations include the  
            place and time for the bids to be received.  

           EXISTING LAW  requires a public entity taking bids for  
          construction of a public improvement to establish a date for  
          submission of bids by prime contractors.  Existing law  
          applicable to local agencies requires that any bids which are  
          submitted after the bid deadline must be returned unopened to  
          the bidder.

           FISCAL EFFECT  :   Unknown.  This bill is keyed fiscal but was  
          referred to the Senate Floor from Senate Appropriations without  
          a vote, based on the opinion of the chair that this bill had no  
          significant costs, will not require an appropriation, or cause a  
          significant reduction in revenues. (S.R. 28.8)

           COMMENTS  : 

           1)Purpose of this bill  .  This bill is intended to apply certain  
            elements of existing local agency law to most public agencies  
            subject to competitive bidding.   
          
          This bill takes three elements from Section 53068 of the  
            Government Code that apply to local agencies and incorporates  
            them into the General Provisions of the Public Contract Code  








                                                                  SB 937
                                                                  Page  2

            so that all public agencies are affected.  Two of those  
            elements provide more complete information for bid  
            invitations.  The third element requires that late bids be  
            returned unopened.  In practice, this bill will make state and  
            local bidding procedures more alike, hopefully offering  
            greater consistency to bidders for public contracts.

           2)Previous opposition may no longer apply  .  Based on substantial  
            amendments taken in the Senate, this bill has been narrowed in  
            scope so that much, and perhaps all, of the previous  
            opposition to this bill has since been removed.  No new or  
            continued opposition to the bill has yet been brought to the  
            attention of this Committee.

           3)Related Legislation  .  AB 1092 (Goldsmith), Chapter 1010,  
            Statutes of 1998, mandated that the closing date and time for  
            bid submissions be specified in the bid invitation, and  
            provided for deadline extensions in the event of material  
            changes to the bid.
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Engineering Contractor's Association (sponsor)
          California Chapter of the American Fence Contractor's  
          Association (co-sponsor)
          California Fence Contractor's Association (co-sponsor)
          Flasher/Barricade Association (co-sponsor)
          Marin Builder's Exchange (co-sponsor)
          Sacramento Builder's Exchange (co-sponsor)
          California Landscape Contractors Association 
            Construction Industry Legislative Council
           
          Opposition 
           
          None on file.

           Analysis Prepared by  :    Hank Dempsey / B. & P. / (916) 319-3301