Amended in Senate April 22, 2014

Senate Bill No. 918

Introduced by Senator Gaines

January 27, 2014

begin delete An act to amend Section 9250 of the Vehicle Code, relating to vehicles. end delete begin insert An act to add Sections 14104.1 and 14106 to the Government Code, to amend Section 10120 of the Public Contract Code, and to add Section 172 to the Streets and Highways Code, relating to transportation. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 918, as amended, Gaines. begin delete Vehicle registration. end delete begin insert Department of Transportation. end insert

begin insert

(1) Existing law provides that the Department of Transportation has full possession and control of the state highway system and associated property. Existing law authorizes the department to purchase or rent any necessary supplies, instruments, tools, equipment, and conveniences as may be necessary for the proper discharge of its duties.

end insert begin insert

This bill would require the department to develop and implement an asset management program that will efficiently and effectively catalog the department’s assets to ensure the most efficient usage and maintenance of those assets.

end insert begin insert

(2) Existing law, the State Records Management Act, imposes certain requirements on state agencies with respect to retention of records that have administrative, legal, or fiscal value.

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This bill would impose additional record retention requirements on the Department of Transportation with respect to documents that are associated with construction projects. The bill would provide that the department shall be liable for any loss or damage to any party resulting from failure to retain these documents, and would provide for a civil penalty of up to $500 for each occurrence of a missing document.

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(3) Existing law, the State Contract Act, generally provides for a contracting process by state agencies for public works of improvement via a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with certain alternative bidding procedures authorized in certain cases. Existing law requires a department, as defined for purposes of the State Contract Act, including the Department of Transportation, to prepare full, complete, and accurate plans and specifications and estimates of cost before entering into any competitively bid contract for a public works project.

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This bill would, with respect to competitively bid projects, require the department, before it commences the design of a project’s plans, to first obtain full, complete, and accurate survey information of the field conditions existing in the location where construction of the project is to be performed. The bill would also require the department, when preparing the project’s plans, to use state-of-the-art design software that allows for the preparation of full, complete, and accurate plans and that does not automatically fix errors in the design but rather requires the project designer to correct errors on an individualized, contemplative basis.

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(4) Existing law requires the department to annually prepare and submit to the Governor a proposed budget, and to inform the California Transportation Commission of all pertinent assumptions and policy directions it intends to use in preparing the budget. Existing law also requires the department to develop budgeting, accounting, fiscal control, and management information systems in order to support its proposed budgets and to improve its program management, as specified.

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This bill would require the department, in preparing the proposed budget, to include detailed information about outstanding contractor claims, as defined, relating to construction projects, and to reserve sufficient moneys in each budget to pay accumulated outstanding claims, as specified, and to report on those claims and reserves in budget-related reports.

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Existing law requires the Department of Motor Vehicles to charge a registration fee of $31 on every vehicle or trailer coach, as specified, registered prior to July 1, 2011, and to charge a registration fee of $43 on every vehicle or trailer coach, as specified, registered on or after July 1, 2011. Existing law further provides that the proceeds collected from increasing the registration fee from $31 to $43 be used only in connection with the regulation of vehicles.

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This bill would make a technical, nonsubstantive change to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 14104.1 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 14104.1. end insert   

The department shall develop and implement an asset
management program that will efficiently and effectively catalog
the department’s assets to ensure the most efficient usage and
maintenance of those assets.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 14106 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 14106. end insert   

(a) The requirements of this section shall be in addition
to the requirements for document retention applicable to all state
agencies pursuant to the State Records Management Act (Chapter
5 (commencing with Section 14740) of Part 5.5).

(b) (1) For purposes of this subdivision, “document” includes,
but is not limited to, a document subject to subdivision (a), email
messages and associated attachments, text messages, and
handwritten notes of any kind, including, but not limited to, diaries,
measurement notes, inspection notes, calculations, and meeting
minutes. “Document” also includes any other writing that would
normally be retained as part of a construction project file.

(2) The department shall retain, as part of a construction
project’s file, all documents that are in any way related to the
design, construction, or administration, at every stage, of a
construction project. The documents shall be retained by the
department until final closeout and payment in full for each element
of the project is complete, and all outstanding claims relating to
the project have been resolved, including any available appeal.

(c) If the department fails to retain a document required to be
retained pursuant to subdivision (b) or as required by any other
applicable law, it shall be liable for any loss or damage to any
party resulting from that failure and shall also be subject to a civil
penalty of up to five hundred dollars ($500) for each occurrence
of a missing document. An action under this subdivision for
recovery of a civil penalty may be brought by the Attorney General
or a district attorney.

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begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 10120 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10120.  

begin insert (a) end insert begin insert   end insert Before entering into any contract for a project, the
department shall prepare full, complete, and accurate plans and
specifications and estimates of cost, giving such directions as will
enable any competent mechanic or other builder to carry them out.

begin insert

(b) (1) Before the Department of Transportation commences
the design of a project’s plans, it shall first obtain full, complete,
and accurate survey information of the field conditions existing
in the location where construction of the project is to be performed.
The Department of Transportation, when preparing a project’s
plans, shall ensure that the plans match existing conditions and
shall use state-of-the-art design software that allows for the
preparation of full, complete, and accurate plans and that does
not automatically fix errors in the design but rather requires the
project designer to correct errors on an individualized,
contemplative basis.

end insert begin insert

(2) Upon award of a contract, the Department of Transportation
and the contractor shall engage in a joint postbid constructability
review to identify any remaining issues and seek to resolve them

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 172 is added to the end insert begin insert Streets and Highways Code end insert begin insert ,
to read: end insert

begin insert

begin insert 172. end insert   

(a) As used in this section, “claim” includes, but is not
limited to, a claim with respect to a construction project that is
submitted through the notice of potential claims procedures, an
after contract acceptance claim, or a lien. This section applies to
a construction project regardless of the contracting method used
for the project.

(b) Each proposed budget prepared by the department shall
include detailed financial information about all outstanding claims
submitted by contractors, including passthrough claims submitted
by contractors on behalf of subcontractors. Each budget shall
contain a reserve of moneys sufficient to pay outstanding
accumulated claims for all construction projects, as determined
pursuant this section.

(c) For each construction project for which the department
receives a claim through the notice of potential claims procedures
or an after contract acceptance claim, stating a monetary value,
moneys shall be reserved that are sufficient to pay, at a minimum,
60 percent of the claim’s value as stated by the contractor, except
that if a claim is heard by the project’s dispute resolution board
and a majority of the board finds in favor of the claimant, or if a
board of review, or the department’s district director in the district
having jurisdiction of the project, finds in favor of the claimant,
moneys shall be reserved that are sufficient to pay 100 percent of
the claim’s value as determined by the applicable board or district
director.

(d) The department shall continue to report, in its budget
documents and otherwise, the value of each outstanding claim as
determined pursuant to this section, and to reserve funding to pay
each claim as required by this section, until the claim is finally
resolved.

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SECTION 1.  

Section 9250 of the Vehicle Code is amended to
read:

9250.  

(a) A registration fee of thirty-one dollars ($31) shall
be paid to the department for the registration of each vehicle or
trailer coach of a type subject to registration under this code, except
those vehicles that are expressly exempted under this code from
the payment of registration fees. This subdivision applies to all of
the following:

(1) The initial or original registration, on or after January 1,
2004, but before July 1, 2011, of any vehicle not previously
registered in this state.

(2) The renewal of registration of any vehicle for which the
registration period expires on or after January 1, 2004, but before
July 1, 2011, regardless of whether a renewal application was
mailed to the registered owner prior to January 1, 2004.

(b) A registration fee of forty-three dollars ($43) shall be paid
to the department for the registration of each vehicle or trailer
coach of a type subject to registration under this code, except those
vehicles that are expressly exempted under this code from the
payment of registration fees. This subdivision applies to all of the
following:

(1) The initial or original registration, on or after July 1, 2011,
of any vehicle not previously registered in this state.

(2) The renewal of registration of any vehicle for which the
registration period expires on or after July 1, 2011, regardless of
whether a renewal application was mailed to the registered owner
prior to July 1, 2011.

(c) The registration fee imposed under this section applies to
all vehicles described in Section 5004, whether or not special
identification plates are issued to that vehicle.

(d) Trailer coaches are subject to the registration fee provided
in subdivision (a) or (b) for each unit of the trailer coach.

(e) The amounts collected pursuant to the increase in the
registration fee as specified in subdivision (b) shall be used only
for costs incurred in connection with the regulation of vehicles,
including administrative costs for vehicle registration.

end delete