BILL ANALYSIS
AB 2036
Page 1
Date of Hearing: August 30, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2036 (Bill Berryhill) - As Amended: August 27, 2010
SUBJECT : Public contracts: contract document distribution.
SUMMARY : Requires state departments and local agencies to
provide at no charge an electronic copy of the project's
contract documents to a contractor plan room service upon
request from the contractor plan room service.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Require state departments, upon request from a contractor plan
room service, to provide at no charge an electronic copy of a
project's contract documents to the contractor plan room
service.
2)Require local agencies when taking bids for the construction
of a public work or improvement to distribute at no charge an
electronic copy of the project's contract documents to a
contractor plan room upon request from the contractor plan
room service.
EXISTING LAW :
1)The State Contract Act (Act) governs contract practices
between state departments and private contractors.
2)The Act defines "project" to include the erection,
construction, alteration, repair, or improvement of any state
structure, building, road, or other state improvement of any
kind that will exceed a total cost of $250,000.
3)The Act defines "department" to mean the Department of Water
Resources, the Department of General Services, the Department
of Boating and Waterways, the Department of Corrections and
Rehabilitation, the Military Department, and the Department of
Transportation.
4)The Local Agency Public Construction Act sets forth the
procedures local agencies are required to use when soliciting
AB 2036
Page 2
and evaluating bids or proposals for the construction of a
public work or improvement.
AS PASSED BY THE ASSEMBLY , this bill limited the existing right
of public entities to withhold payment to contractors and
subcontractors when a stop notice is received to provide for
reasonable litigation costs associated with the stop notice such
that the right could be exercised only if the original
contractor fails to promptly accept a tender of defense of the
public entity in the litigation.
FISCAL EFFECT : Unknown
COMMENTS :
1)According to the author's office, "a number of public entities
in California are requiring contractors, subcontractors, and
material suppliers to pay for the plans and specification
documents" on the particular bid solicitation for the proposed
public works project. That fee is often between $100 and $500
per project.
The author notes that, historically, public entities authorized
those seeking to examine project plans for the purpose of
determining whether or not to bid on the proposed project to
take the plans and specifications after paying a deposit,
which was returned if the plans were returned to the public
entity in good condition.
The author also states that many construction firms are often
too small to pay non-refundable charges for plans and other
bid documents, thus reducing the competition for these bids
and potentially driving up the overall contract price for
public entities. Furthermore, small, minority, and
women-owned businesses are among those firms unable to compete
because of these charges.
2)Many builders' exchanges and other contractor groups operate
"contractor plan room services," which allow their members to
view hard copy plans or download plans and specifications for
projects throughout the state. Many of these services have
become online plan services. The author notes these
contractor plan rooms do not have the resources to purchase
plans and other bid documents from public entities.
AB 2036
Page 3
Electronic plans and documents avoid the cost of printing for
the public entity, and the construction industry can easily
accept and utilize these documents.
3)Support Arguments : Supporters might say this bill would make
it economically feasible for more businesses to submit bids
for the construction of a public work or improvement.
Opposition Arguments : Opposition might say this bill would
increase personnel time for public entities when bidding out
for the construction of a public work or improvement.
REGISTERED SUPPORT / OPPOSITION :
Support
American Fence Association, CA Chapter
Associated General Contractors
CA Fence Contractors' Association
CA Legislative Conference of the Plumbing, Heating and Piping
Industry
Engineering Contractors' Association
Flasher/Barricade Association
Golden State Builders' Exchanges
Marin Builders' Association
National Electrical Contractors Association, CA Chapter
Opposition
AB 2036
Page 4
None on file
Analysis Prepared by : Jennifer R. Klein / L. GOV. / (916)
319-3958