BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 2075

                                                                            
                                                                            
                                                                            
                                                                            
                                                            Page 1


          GOVERNOR'S VETO
          AB 2075 (Higher Education Committee)
          As Amended  March 24, 2010
          2/3 vote


           BUSINESS & PROFESSIONS     11-0 APPROPRIATIONS    15-0          

           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Emmerson,        |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Conway, Eng,              |     |Bradford, Charles         |
          |     |Hernandez, Hill, Ma,      |     |Calderon, Coto,           |
          |     |Nava, Niello,             |     |De Leon, Hall, Harkey,    |
          |     |Ruskin, Smyth             |     |Miller,                   |
          |     |                          |     |Nielsen, Skinner,         |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |74-0 |(April 22,      |SENATE: |33-0 |(August 2,     |
          |           |     |2010)           |        |     |2010)          |
           ----------------------------------------------------------------- 

           SUMMARY  :   Requires the prequalification form for contractors  
          bidding on California State University (CSU) public works  
          projects to be available 10 business days prior to a bid  
          opening.

           EXISTING LAW  prohibits CSU from furnishing proposal forms to  
          people who have not submitted a questionnaire and financial  
          statement for prequalification at least five calendar days prior  
          to the public bid opening date and have been prequalified at  
          least one day prior to the date.











                                                                  AB 2075

                                                                            
                                                                            
                                                                            
                                                                            
                                                            Page 1


           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee analysis, to the extent the longer review period  
          results in more prospective bidders pre-qualifying, the CSU  
          could benefit from lower bids.

           COMMENTS  :   CSU's Capital Planning, Design and Construction  
          Divsion oversee the construction phase of capital projects and  
          provide prequalification of bidders.  In a typical year, CSU  
          lets out contracts worth $600 million to $1 billion.  There are  
          approximately 1,555 contractors who have filed their annual  
          prequalification application. 

          The Public Contract Code Section 10764 currently prohibits CSU  
          from furnishing bidders with bid proposal forms for at least  
          five calendar days prior to the bid opening date.  CSU claims  
          that this statute does not allow for adequate staff time to  
          process the prequalification applications because weekend days  
          are counted, even though they are not CSU working days.  In  
          addition, recent furloughs can leave only two days to process  
          prequalification applications.  CSU notes that lengthening the  
          amount of time bidders have to complete their bid proposal forms  
          will benefit bidders and lead to more complete and competitive  
          proposals.  
           
          GOVERNOR'S VETO MESSAGE  :  "This bill is not necessary.  The  
          California State University already has a policy in place to  
          accomplish its intent.  No change to current law is required."



           Analysis Prepared by:     Joanna Gin / B.,P. & C.P. / (916)  
          319-3301 



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