BILL ANALYSIS
AB 701
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Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 701 (Fong) - As Amended: April 14, 2009
Policy Committee:
EducationVote:11-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill requires school district governing boards to post a
notice for bids on its Internet website or through an electronic
portal and sunsets the current requirement for districts to post
this information in a newspaper of general circulation on July
1, 2014, as specified. Specifically, this bill:
1)Requires the notice for bids to state the work to be done or
the materials or supplies to be furnished at the time, place,
and Internet website where bids will be opened. This measure
also authorizes a governing board of a school district to
accept a submitted electronically or on paper.
2)Requires a governing board of a school district, if it does
not maintain an Internet website, to post a bid notice on
another website or electronic portal and provide notice of the
alternative website or electronic portal at least once a week
for two weeks in a newspaper of general circulation, as
specified.
3)Authorizes a governing board of a school district to
distribute a bid notice through any other means, including,
but not limited to, newspapers, trade or professional
journals, Internet websites, electronic mail, or other print
publications or electronic means.
FISCAL EFFECT
GF/98 state reimbursable mandated costs, of approximately $1.4
million, to complete the requirements of this bill. This cost
assumes approximately 25 hours per year in school district staff
AB 701
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time.
COMMENTS
1)Purpose . Currently, school districts are only required to post
a notice calling for bids in a newspaper of general
circulation within the school district. Statute also
authorizes districts to post this notice on their Internet
website or through an electronic portal and accept bids
electronically.
According to the author, "Because of boundaries, California
school districts throughout the state may independently choose
less significant newspaper publications for notifying
contractors of available public projects." The requirements
of this bill may result in wider distribution of a call for
bids. This bill, sponsored by the California State Building
and Construction Trade Council, requires Internet website
publication for bid notices and only authorizes the
publication of these notices in newspapers.
2)Previous similar legislation . AB 490 (Parra) required a
school district to mail a notice for contract bids to
specified construction trade journals at least 30 calendar
days before the opening date of the bids. This bill was
vetoed in September 2005, with the following message:
"Nothing in current law precludes a school district from
sending bid notices to construction trade journals. In fact,
current law already requires school districts to advertise
bidding opportunities in newspapers of general circulation and
allows them to post a notice on the districts website or
electronic portal. This bill would require school districts to
send bill notices directly to construction trade journals.
Mandating this practice will simply result in a reimbursable
cost to prepare and mail the additional bid notices."
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081