BILL ANALYSIS �
SB 969
Page 1
Date of Hearing: June 18, 2014
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
SB 969 (DeSaulnier) - As Amended: June 11, 2014
SENATE VOTE : 35-0
SUBJECT : Public works
SUMMARY : Requires an agency administering a transportation
megaproject, as defined, to develop a comprehensive risk
management plan and establish a peer review group to review the
project's plans and finances. Specifically, this bill :
1)Defines a transportation megaproject to mean a project with
total estimated development and construction costs exceeding
$2.5 billion.
2)Requires an administering agency to establish a comprehensive
risk management plan and comply with various financial
requirements related to the megaproject.
3)Directs an administering agency to establish a peer review
group to review the megaproject's plans and finances and issue
an analysis to the agency's governing board or the
Legislature.
4)Requires an administering agency to post a list of all
engineers in charge of any work related to the megaproject,
and their qualifications, on its website.
5)Exempts the California High Speed Rail Authority (HSRA), which
already has a peer review group, from the requirements of this
bill.
EXISTING LAW establishes criteria for peer review groups and
transparency requirements for agencies that choose to establish
them.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)Likely minor, absorbable costs to the Department of
Transportation (Caltrans). It is rare that Caltrans has
SB 969
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jurisdiction over projects of this size, and the department
currently performs the activities specified in this bill.
2)Potential reimbursable mandate costs for local transportation
entities that administer megaprojects to establish peer review
groups and risk management plans. Costs are unknown, but
could be up to $100,000 to $200,000 (General Fund) per
megaproject, if a local entity successfully filed a mandate
claim with the Commission on State Mandates. It is unlikely
that many projects would exceed the $2.5 billion cost
threshold.
COMMENTS : Current law permits local administering agencies to
establish a peer review group to provide expert advice on the
scientific and technical aspects of public works projects. If
an agency chooses to create a peer review group for this
purpose, it must develop a transparent process for selecting
members of the group, draft a charter, and post the charter on
its website.
This bill requires agencies that administer transportation
megaprojects to establish both a peer review group and a
comprehensive risk management plan. According to the author,
this bill is intended to improve the state's delivery of large
projects by applying best practice principles of oversight and
risk management to all future transportation megaprojects.
The Department of Finance opposes this bill because it may
create a state-reimbursable mandate on local agencies
administering megaprojects. The Orange County Transportation
Authority contends that this bill is unnecessary and duplicative
of existing federal risk reporting requirements for projects
over $500 million that receive federal funding.
PRIOR LEGISLATION :
1)SB 425 (DeSaulnier), Chapter 252, Statutes of 2013, authorizes
public agencies to establish peer review groups to provide
scientific and technical advice on public works projects
administered by the agencies.
2)AB 3034 (Galgiani), Chapter 267, Statutes of 2008, establishes
an eight member independent peer review committee to review
and issue an analysis of the appropriateness and accuracy of
the HSRA's planning, engineering, and financing plans.
SB 969
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REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
Department of Finance
Orange County Transportation Authority
Analysis Prepared by : Cassie Royce / A. & A.R. / (916)
319-3600