BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2161
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2161 (Fong) - As Amended:  April 14, 2010 

          Policy Committee:                              Education  
          Vote:8-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires the governing board of a school district, for  
          the purposes of securing bids for the construction of school  
          facilities, to post a bid notice on the district's Internet  
          website.  Specifically, this bill: 

          1)Defines "construction of school facilities," as work under a  
            contract involving an expenditure of $15,000 or more, which  
            falls within the definition of "public project," as specified.  
             

          2)Requires a school district, if it does not maintain an  
            Internet website, to post the bid notice on another website or  
            electronic portal, including one maintained by the county  
            superintendent of schools.  This measure also requires the bid  
            notice on the county website to be placed at least once a week  
            for two weeks.  

          3)Authorizes small school district (with 1,500 average daily  
            attendance or less) to post a bid notice on another Internet  
            website in lieu of the district's website, as specified. 

           FISCAL EFFECT  


          GF/98 state reimbursable mandated costs, of approximately  
          $480,000, to complete the requirements of this bill. This cost  
          assumes approximately 10 hours per year in school district staff  
          time.










                                                                  AB 2161
                                                                  Page  2

           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, this bill, sponsored by the State  
            Building Construction and Trade Council of California, "will  
            help school districts with a limited pool of newspapers reach  
            a wider audience and ensure a healthy number of bids on public  
            works projects.  Currently, almost all school districts have  
            their own website.  It is important to utilize the Internet as  
            a legitimate source for circulating public works information  
            to reach the greatest number of qualified competitors."   

           2)Previous legislation  .  

             a)   AB 701 (Fong) required school district governing boards  
               to post a notice for bids on its Internet website or  
               through an electronic portal and sunset the current  
               requirement for districts to post this information in a  
               newspaper of general circulation on July 1, 2014, as  
               specified.  This bill was held on this committee's Suspense  
               File in last year.

               This bill maintains the current requirement of noticing  
               bids in a newspaper and limits the posting of notices on  
               the Internet to construction bids, as specified.  


             b)   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  








                                                                  AB 2161
                                                                  Page  3

               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