BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 694|
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THIRD READING
Bill No: SB 694
Author: Correa (D)
Amended: 1/12/10
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE : 3-0, 1/6/10
AYES: Cox, Aanestad, Kehoe
SUBJECT : Public contracts: public works: competitive
bidding:
procedures
SOURCE : Author
DIGEST : This bill extends the time limit for the
California Uniform Construction Cost Accounting Commission
to review and act on disputes over whether local agencies
have followed the Uniform Public Contract Construction Cost
Accounting Act. For complaints which allege that local
officials rejected all bids and instead claimed that the
agency can do the work less expensively, this bill extends
the time limit from 30 days to 45 days. For complaints
which allege that local officials have either exceeded the
force accounts or improperly classified the work as
maintenance, this bill extends the time limit from 30 days
to 90 days.
ANALYSIS : Existing law allows a public agency to elect
to be subject to the Uniform Public Construction Cost
Accounting Act (Act).
CONTINUED
SB 694
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The Public Contract Code spells out the procedures that
local officials follow when they build public works
projects, including limits on the contracts' values.
When counties, cities, special districts, redevelopment
agencies, school districts, and community college districts
voluntarily adopt the standards and procedures of the Act,
they can use higher limits for their contracts. The State
Controller must tell local agencies about the Act's
benefits (AB 1047 [Houston], Chapter 144, Statutes of
2007). Approximately 700 local agencies participate.
A 14-member California Uniform Construction Cost Accounting
Commission reviews the statutory limits every five years.
If the Commission recommends higher amounts, the State
Controller promulgates the changes and the Legislature
periodically amends the Act to reflect the new limits.
Currently, local agencies can use their own employees for
projects worth $30,000 or less. This amount is called the
"force account limit." Projects worth $125,000, or less,
rely on informal bids; projects that cost more than
$125,000 require formal bids (SB 1196 [Senate Local
Government Committee], Chapter 643, Statutes of 2006).
The Commission has 30 days to review and act on disputes.
If the Commission finds that a local agency has violated
the Act three times within a 10-year period, it can
prohibit that agency from using the Act for five years (AB
2372 [Pavley], Chapter 192, Statutes of 2006).
This bill extends the time limit for the Commission to
review and act on disputes over whether local agencies have
followed the Act. For complaints which allege that local
officials rejected all bids and instead claimed that the
agency can do the work less expensively, this bill extends
the time limit from 30 days to 45 days. For complaints
which allege that local officials have either exceeded the
force accounts or improperly classified the work as
maintenance, this bill extends the time limit from 30 days
to 90 days.
Comments
SB 694
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Because the Commission is a part-time body without
employees, it is nearly impossible for the commissioners to
investigate complaints and then schedule a publicly-noticed
hearing within the 30-day statutory time limit. This bill
extends that deadline by creating a two-tier arrangement:
45 days for one type of allegation, and 90 days for the
other two types of complaints.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 1/14/10)
Air Conditioning and Refrigeration Contractors Association
Air Conditioning Sheet Metal Association
Associated General Contractors
California Chapter of the American Fence Contractors'
Association
California Chapters of the National Electrical Contractors
Association
California Fence Contractors' Association
California Landscape Contractors Association
California Legislative Conference of the Plumbing, Heating,
and Piping Industry
Construction Industry Force Account Council
Engineering Contractors' Association
Flasher/Barricade Association
Marin Builders' Association
Southern California Contractors Association
AGB:mw 1/14/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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