BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2075
                                                                  Page  1

          Date of Hearing:   April 14, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

            AB 2075 (Higher Education Committee) - As Amended:  March 24,  
                                        2010 

          Policy Committee:                              Business and  
          Professions  Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the prequalification form for contractors  
          bidding on California State University (CSU) public work  
          projects to be submitted at least 10 business days, rather than  
          at least five days, prior to a bid opening.

           FISCAL EFFECT  

          To the extent the longer review period results in more  
          prospective bidders pre-qualifying, the CSU could benefit from  
          lower bids.

           COMMENTS  

           Background and Purpose  .  This bill is sponsored by CSU, which in  
          a typical year, awards public works contracts in the range of  
          $600 million to $1 billion.  Current law allows contractors to  
          submit prequalification forms five calendar days before the bid  
          opening date, and prohibits them from submitting a bid unless  
          they are prequalified at least one day prior to the bid opening.  
           This provides only four calendar days to process a  
          prequalification application, thus, for example, an application  
          submitted on Friday for a Wednesday bid leaves staff only two  
          business days to process that application.  This tight time  
          frame puts in jeopardy the contractor's ability to be  
          prequalified to bid the project.  If the application process is  
          not completed in time, the contractors' preparatory work for the  
          bid is wasted.  This bill thus provides CSU a longer period,  
          prior to the bid date, for reviewing and approving  
          prequalification forms.








                                                                  AB 2075
                                                                  Page  2


           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081