BILL ANALYSIS
SENATE LOCAL GOVERNMENT COMMITTEE
Senator Gloria Negrete McLeod, Chair
BILL NO: AB 1047 HEARING: 6/20/07
AUTHOR: Houston FISCAL: Yes
VERSION: 6/13/07 CONSULTANT: Kim
UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT
Background and Existing Law
The Public Contract Code spells out the procedures that
local officials must follow when they build public works
projects, including the statutory thresholds that trigger
bidding procedures. When public agencies voluntarily adopt
the standards and procedures of the Uniform Public
Construction Cost Accounting Act, however, they can use
their own employees for projects worth $30,000 or less.
This is called the "force account limit." Under the Act,
projects worth $125,000 or less rely on informal bids;
projects that cost over $125,000 require formal bids.
The 14-member California Uniform Construction Cost
Accounting Commission is responsible for administering the
Act. State law requires the State Controller to provide
staff support to the Commission. The Commission routinely
reviews the bid limits under the Act every five years and
recommends any changes to the State Controller. If the
Commission recommends higher limits, the State Controller
promulgates the changes, and the Legislature amends the Act
periodically to reflect the new limits adopted by the
Commission. The Legislature codified the latest changes to
the cost thresholds last year (SB 1196, Senate Local
Government Committee, 2006).
A total of 607 public agencies, of the more than 5,000 that
qualify, have elected to use the Act since 1983. The
participating agencies include cities, community college
districts, counties, school districts, and special
districts. The author wants to encourage more qualified
public agencies to use the Act.
Proposed Law
Assembly Bill 1047 requires the State Controller to notify
all public agencies, on or before January 1, 2009, about
AB 1047 -- 6/13/07 -- Page 2
the Uniform Public Construction Cost Accounting Act and the
benefits of its provisions. After this initial
notification, the State Controller must include future
notices of the Act and its provisions, including the
benefits, with the notice that goes out every five years to
all public agencies-not just those public agencies that
have elected to use the Act-informing them of any changes
to the bid limits.
Comments
1. Spread the word . The Uniform Public Construction Cost
Accounting Act allows public agencies to carry out public
works projects more efficiently and it produces cost
savings. Participating agencies benefit from the raised
force account limit and the informal bidding procedures.
Public agencies can complete their projects faster because
the Act's streamlined process and paperwork reductions.
Despite these benefits, many local agencies are unaware of
the Act and instead seek special legislation to gain the
same benefits that are already available to them through
the Act. Informing local agencies about the Act's benefits
will avoid special legislation and increase local
efficiencies.
2. Who pays ? The Legislature has not appropriated any
money to pay for staff support or expenses to administer
the Act since its 1983 enactment. The Act requires the
State Controller to provide limited staff support to the
Commission, which is made up of members who are not
compensated, except for travel expenses. Beginning in
2004, the Commission solicited donations from local
agencies, contractor associations, and unions to pay for
its expenses. But these sources do not provide a
dependable revenue stream. According to the State
Controller's Office, AB 1047 will cost up to $15,000 in the
first year. This means the State Controller's Office must
absorb the costs created by AB 1047. The Legislature
should not impose mandates on state agencies that it is
unwilling to fund. The Committee may wish to consider
amending AB 1047 to appropriate enough money to pay for the
bill's new requirements.
3. What do you know ? In addition to providing staff
support and routinely informing public agencies that use
the Act about increases to the bid limits, the State
Controller's Office provides additional resources for local
AB 1047 -- 6/13/07 -- Page 3
officials in a cost effective manner. The following
resources are available to the public on the State
Controller's website:
www.sco.ca.gov/ard/local/cuccac/index.shtml and
www.sco.ca.gov/ard/local/cuccac/cuccac_man.pdf .
Information on the Act and its benefits are already
available to local agencies; it's a matter of convincing
them to use the law.
4. Related bill . The Senate Local Government Committee
passed SB 206 (Cox) at the April 18 hearing, which
authorizes all counties with populations of less than
500,000 to participate in the Uniform Public Construction
Cost Accounting Act. SB 206 says that this provision is
declaratory of existing law.
Assembly Actions
Assembly Business & Professions Committee: 10-0
Assembly Appropriations Committee: 16-0
Assembly Floor: 72-0
Support and Opposition (6/14/07)
Support : Air Conditioning & Refrigeration Contractors
Association, Air Conditioning Sheet Metal Association,
American Fence Contractors' Association, California
Chapter, California Fence Contractors' Association,
California Legislative Conference of the Plumbing, Heating
and Piping Industry, California State Association of
Electrical Workers, California State Pipe Trades Council,
Construction Industry Force Account Council, Engineering
Contractors' Association, Flasher/Barricade Association,
Marin Builders' Exchange, National Electrical Contractors
Association, California Chapters, State Building and
Construction Trades Council, AFL-CIO, Western States
Council of Sheet Metal Workers.
Opposition : Unknown.