from Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
They Are Back
The legislature returned on August 15 to complete the legislative year on September 9. With the normal course of working through bills, there is a major internal fight over the release of legislative office spending records and calendars. An inside baseball dispute, but it makes things interesting for those who follow the legislature.
Legislation
AB 720 (Hall) - In 1983, the Legislature enacted the California Uniform Construction Cost Accounting Act (Act) to alleviate disputes between public agencies and the construction industry over what projects should be put out to bid and what projects should be completed with county employees. The Act achieves this objective in two principle ways. First, it establishes a process for developing uniform cost accounting procedures for public construction projects and for recommending the procedures to the State Controller for adoption. Second, it establishes the dollar limits, which the State Controller may adjust over time, for what work must be done in-house and what work must be contracted out.
The use of the Act is a discretionary decision of county boards of supervisors, cities, and special districts. The Act only applies to public agencies whose governing boards have elected by resolution to become subject to the act's uniform construction cost accounting procedures.
Thirty-four of the state's fifty-eight counties are signatories, including small counties such as Trinity and Alpine and large counties like Riverside and Contra Costa.
This bill:
1. Allows, beginning January 1, 2013, a board of
supervisors or a county road commissioner for a county
with a population of 50,000 or more use, as an
alternative to procedures in the Act, specified
statutory county road commissioner alternative
procurement procedures for both:
A. Maintenance and emergency work.
B. New road construction and road reconstruction as
long as the total annual value of the new road
construction and the road reconstruction performed
by day labor, as specified in state law, does not
exceed 30 percent of the total value of all work
performed by force account other than maintenance
as reported in the State Controller's Streets and
Roads Annual Report as of January 1 of each year.
2. States that on or after January 1, 2013, the Act does
not prohibit a board of supervisors or a county road
commissioner for a county with a population of less than
50,000 from using, as an alternative to procedures in
the Act, specified statutory county road commissioner
alternative procurement procedures.
3. Requires a county board of supervisors or county road
commissioner to declare, in advance, its intention to
use county road commissioner alternative procurement
procedures for new road construction and road
reconstruction.
4. States that specified Act requirements governing a
public agency's rejection of bids apply to any county
that is subject to the bill's provisions.
5. Increases, from $125,000 to $175,000, the maximum value
of public projects that may be let to contract by
informal procedures under the Act, increases, from
$30,000 to $45,000 the maximum value of projects that
may be performed by a public agency's employees, and
increases from $137,500 to $187,500 the bid limit
exception that applies when all informal bids on a
project exceed the informal bid limit specified by the
Uniform Public Construction Cost Accounting Commission.
The bill passed the Senate without any negative votes.
AB 780 (Calderon) - This measure provides that the contractor in a fixed price contract is entitled to an increase in payment for a change in the contract price attributable to an increase in the state sales and use tax rate. The bill also provides that the government entity is entitled to a reduction in payment when the sales and use tax rate is reduced. Increases or decreases shall be made in accordance with the contract, or by agreement if the contract does not so provide. The bill applies only when the contract is entered into prior to the rate increase, and does not apply to property, materials, or fixtures obligated pursuant to a contract during the period of time contractor has the right to terminate the contract unconditionally or upon notice, whether or not the right is exercised. The measure similarly applies to leases that are continuing sales and purchases of property. The bill applies only to contracts entered into on or after its effective date.
The bill was heard by the Senate Appropriations Committee on August 15 and sent to their Suspense File. Suspense items will be considered on August 25.
Other Items of Interest
Governor Brown appointed a business liaison. Click HERE
Senator Darrell Steinberg said the legislature will tackle the state’s regulatory process. Click HERE
The Citizens Redistricting Commission voted to approve final district maps on August 15. The Republican Party and Senate Republican Caucus has begun drive to referend the Senate maps. Click HERE
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