BILL ANALYSIS
AB 1047
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1047 (Houston)
As Amended June 13, 2007
Majority vote
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|ASSEMBLY: |72-0 |(May 10, 2007) |SENATE: |40-0 |(July 9, 2007) |
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Original Committee Reference: B. & P.
SUMMARY : Requires the State Controller (Controller) to send a
notice to public agencies that details the existence of, and the
benefits available to, public agencies under the Uniform Public
Construction Cost Accounting Act (Act).
The Senate amendments delete the requirement that the Controller
annually send a notice to public agencies that details the existence
of, and the benefits available to, public agencies under the Act,
and instead requires the notice to be sent by January 1, 2009, and
every five years thereafter, as specified.
EXISTING LAW :
1)Requires, with many specific exceptions, public agencies to obtain
competitively bid contracts for construction projects that cost
more than $15,000. This amount varies depending on the public
agency and whether it is a city, county, special district, or
school district, and other variables. This limit is commonly
referred to as the "force account," whereby a public agency may
use its own forces (i.e., public employees) as long as the amount
of the contract does not exceed the limit.
2)Authorizes public agencies to use their own employees on
construction projects that cost up to $30,000, and use informal
competitive bidding procedures for construction projects that cost
up to $125,000, if they agree to the cost accounting procedures
set forth under the Act.
AS PASSED BY THE ASSEMBLY , this bill required the Controller to
annually send a notice to public agencies that details the existence
of, and the benefits available to, public agencies under the Act.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
minor costs, probably less than $25,000, for the Controller to
prepare and mail information about the Act to approximately 6,000
AB 1047
Page 2
local government entities that have not yet elected to use the Act.
COMMENTS : This bill is substantially similar to the
Assembly-approved version. The Senate amendments require a single
initial notice, and subsequent notices every five years thereafter,
of the benefits available to public agencies under the Act. The
Assembly-approved version required the same notice on an annual
basis.
According to the author: "In 1983, the Uniform Public Construction
Cost Accounting Act was created, which allows public agencies to
work up to $30,000 with its own workforce if the agency elects to
follow cost accounting procedures set forth. Very few agencies
actually know of the existence of this program, however, and it
isn't used very frequently. Instead, many agencies feel they need
special legislation to achieve the same results. This bill can be
characterized as an awareness campaign to help public agencies
understand the availability and benefits of the Cost Accounting
Act."
Analysis Prepared by : Ross Warren / B. & P. / (916) 319-3301FN:
0001814