BILL NUMBER: SB 474	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 24, 2009
	AMENDED IN SENATE  JULY 9, 2009
	AMENDED IN SENATE  JUNE 3, 2009
	AMENDED IN SENATE  MAY 21, 2009
	AMENDED IN SENATE  APRIL 27, 2009

INTRODUCED BY   Senator Ducheny

                        FEBRUARY 26, 2009

   An act to add Section 14105.1 to the Government Code, relating to
transportation, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 474, as amended, Ducheny. Transportation: pilot programs.
   Existing law authorizes the Department of Transportation to do any
act necessary, convenient, or proper for the construction,
improvement, maintenance  ,  or use of all highways which
are under its jurisdiction. Existing law provides for the California
Transportation Commission to program certain transportation funds for
particular projects, and to report to the Legislature on various
transportation policy matters. Existing law authorizes the department
and certain local agencies to enter into agreements for
transportation projects under pilot programs using public-private
partnerships. Existing law authorizes certain transportation projects
under pilot programs using design-build and design-sequencing
contracting methods.
   This bill would require the lead agency for a project, within 90
days after the award of a contract or entering into any agreement for
a pilot program involving an alternative contracting or financing
method, to make a finding that the use of that method will provide
specified benefits. The bill would require the California
Transportation Commission to provide an annual consolidated report to
the Legislature on the progress of and savings resulting from those
pilot programs, as specified, based on input from the department and
regional agencies. The bill would require the commission to develop
the methodology for determining those savings benefits.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14105.1 is added to the Government Code, to
read:
   14105.1.  (a) (1) Within 90 days after the award of a contract or
entering into any agreement for a pilot program involving an
alternative contracting or financing method identified in subdivision
(c), the lead agency for the project shall make a finding that the
use of the alternative method will provide any of the following
benefits to the public when compared to a traditional contracting or
financing method:
   (A) Accelerates the project completion date.
   (B) Produces savings in personnel or financial resources.
   (C) Results in lower costs to the users of the facility developed
under the method.
   (D) Brings financial resources to the project that would not
otherwise be available. 
   (2) If a project is under joint control of the department and a
local agency, both agencies shall concur in the finding before a
contract may be awarded.  
   (2) If the lead agency on a project is not the owner of the
facility, the owner of the facility shall concur in the finding.

   (3) The purpose of requiring the finding is solely to assist the
public and the Legislature in evaluating the effectiveness of the
alternative methods described in subdivision (c), subsequent to award
of a  commission-approved  contract involving an
alternative method, in order to determine the extent to which those
alternative methods may or may not be authorized for future pilot
programs. An agency that makes a finding as required and later
determines that the use of the alternative method was no more
effective, or less effective, than a traditional method for a project
shall not be liable to any person for making the decision to use the
alternative method.
   (b) The commission, in cooperation with the department and
regional transportation agencies, shall develop the methodology for
determining whether a project will provide the benefits that are
identified in subdivision (a).
   (c) (1) The commission shall, on an annual basis, provide a
consolidated report to the Legislature on the progress of the
following pilot programs:
   (A) Public-private partnerships authorized pursuant to Section 143
of the Streets and Highways Code.
   (B) Design-build authorized pursuant to Chapter 6.5 (commencing
with Section 6800) of Part 1 of Division 2 of the Public Contract
Code.
   (C) Design-sequencing authorized pursuant to Article 6.5
(commencing with Section 217) of Chapter 1 of Division 1 of the
Streets and Highways Code.
   (2) The consolidated report shall include information on any
savings in time or resources to the lead agency or to users of the
resulting facility due to the pilot programs specified in this
subdivision, as well as the information required by Sections 143 and
217.8 of the Streets and Highways Code and Section 6811 of the Public
Contract Code.
   (3) The consolidated report may be incorporated into the
commission's annual report to the Legislature as required by Section
14535.
   (d) (1) The department shall submit to the commission the reports
required by Section 217.8 of the Streets and Highways Code for the
purpose of preparation of the consolidated report.
   (2) Upon request by the commission, any transportation agency
involved in one of the pilot programs specified in subdivision (c)
shall provide information deemed necessary by the commission for the
purpose of preparation of the consolidated report.
   (e) It is the intent of the Legislature that agencies that seek to
utilize an alternative contracting or financing method justify the
use of that method by making a finding regarding the benefits that
the method is expected to yield for the public. It is further the
intent of the Legislature that agencies using such a method report on
the extent to which the method did in fact produce the expected
benefits.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to require reporting for pilot programs, and findings for
pilot programs involving alternative contracting or financing, by
the California Transportation Commission at the earliest possible
time, it is necessary that this act take effect immediately.