BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 729
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Evans
VERSION: 4/22/09
Analysis by: Art Bauer FISCAL: yes
Hearing date: June 23, 2009
SUBJECT:
Transit design-build contracts
DESCRIPTION:
This bill extends the authority of transit agencies to enter
into design-build contacts until
January 1, 2015.
ANALYSIS:
Existing law:
Defines "design-build" as a procurement process in which
both the design and construction of a project are procured
from a single entity.
Authorizes a transit operator to enter into design-build
procurement contracts for rail construction projects with a
value greater than $25 million.
Requires a transit operator to have a labor compliance
program, or establish a labor compliance program only for
design-build projects. These provisions do not apply to
projects if the operator or the design-build entity has
entered into a collective bargain agreement that binds all
contractors doing work on the design-build contract or to
any other project of the transit operator.
Prohibits the use of design-build authority by a transit
district to construct projects on state highways or local
streets and roads.
AB 729 (EVANS) Page 2
Sunsets the design-build authority on January 1, 2011.
This bill extends the design-build authority for transit
operators until January 1, 2015.
COMMENTS:
1. Purpose . According to the sponsor, Proposition 1B, the
Highway Safety, Traffic Reduction Air Quality and Port
Security Bond Act of 2006, and a combination of local and
federal revenue are expected to fund transit project that
will reach the final design and construction phase between
now and 2015 and will be able to use the design-build
provisions this bill extends.
2. Previous legislation . AB 958 (Scott), Chapter 541,
Statutes of 2000, authorized transit operators to use
design-build procurement and had a sunset date of January
1, 2005.
AB 372 (Nation), Chapter 262, Statutes of 2006, extended
the original sunset to January 1, 2011 and made other
modifications to the authority, including requiring a
transit operator to establish a labor compliance program
only for a design-build contract and only if the transit
operator does not already have a labor compliance program,
as specified.
3. Opposition . The Associated Builders and Contractors of
California (ABC) are opposed to the bill because of labor
provisions in existing law (that are not the subject of
this bill) related to transit design-build authorization,
which ABC believes create an unfair contracting
environment.
Assembly Votes:
Floor: 73-0
Appr: 16-0
Trans: 11-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
AB 729 (EVANS) Page 3
June 17, 2009)
SUPPORT: California Transit Association (sponsor)
Santa Clara Valley Transportation Authority
OPPOSED: Associated Builders and Contractors of California