BILL ANALYSIS
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THIRD READING
Bill No: AB 1047
Author: Houston (R)
Amended: 6/13/07 in Senate
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE : 5-0, 6/20/07
AYES: Negrete McLeod, Cox, Harman, Kehoe, Machado
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/10/07 (Consent) - See last page
for vote
SUBJECT : Uniform Public Construction Cost Accounting Act
SOURCE : Author
DIGEST : This bill requires the State Controller to send
a notice to all public agencies that details the existence
of, and the benefits available to, public agencies under
the Uniform Public Construction Cost Accounting Act.
ANALYSIS : 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
CONTINUED
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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, Chapter 643, Statutes of 2006).
This bill requires the State Controller to notify all
public agencies, on or before January 1, 2009, about 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
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.
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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.
Related Legislation
SB 206 (Cox), 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/2/07)
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
ASSEMBLY FLOOR : 72-0, 5/10/07
AYES: Adams, Aghazarian, Arambula, Bass, Beall, Benoit,
Berg, Berryhill, Blakeslee, Brownley, Caballero, Charles
Calderon, Carter, Cook, Coto, Davis, De La Torre, De
Leon, DeSaulnier, DeVore, Duvall, Emmerson, Eng, Evans,
Feuer, Fuller, Gaines, Galgiani, Garcia, Hancock,
Hayashi, Hernandez, Horton, Houston, Huff, Huffman,
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Jeffries, Jones, Karnette, Keene, Krekorian, La Malfa,
Laird, Leno, Levine, Lieber, Ma, Maze, Mendoza, Mullin,
Nakanishi, Nava, Niello, Parra, Plescia, Portantino,
Price, Richardson, Salas, Saldana, Silva, Smyth, Solorio,
Spitzer, Strickland, Swanson, Torrico, Tran, Villines,
Walters, Wolk, Nunez
NO VOTE RECORDED: Anderson, Dymally, Garrick, Lieu, Sharon
Runner, Ruskin, Soto, Vacancy
AGB:nl 7/2/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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