Bill Text: CA AB1947 | 2011-2012 | Regular Session | Introduced
Bill Title: Legislative contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-04-17 - In committee: Set first hearing. Failed passage. Reconsideration granted. [AB1947 Detail]
Download: California-2011-AB1947-Introduced.html
BILL NUMBER: AB 1947 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Grove
FEBRUARY 23, 2012
An act to amend Section 10295 of, and to add Part 1.5 (commencing
with Section 10000) to Division 2 of, the Public Contract Code,
relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1947, as introduced, Grove. Legislative contracts.
Existing law requires the Department of General Services to
approve certain contracts entered into by a state agency, including
contracts for the construction, alteration, improvement, repair, or
maintenance of a property, or for the performance of work or services
by the state agency for, or in cooperation with, any person or
public body. Existing law provides that the Department of General
Services is not required to approve, among other things, any contract
let by the Legislature.
This bill would apply the approval requirement to those types of
contracts entered into by the Legislature, with the exception of
contracts by the Legislature that are deemed necessary to meet an
emergency, as specified. The bill would also establish specified
procedures for the Legislature in advertising for bids, accepting
bids, and awarding contracts. The bill would require specified
information to be verified under oath, thus imposing a state-mandated
local program by expanding the scope of an existing crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 1.5 (commencing with Section 10000) is added to
Division 2 of the Public Contract Code, to read:
PART 1.5. Contracting By The Legislature
CHAPTER 1. ADVERTISEMENTS FOR BIDS
10000. Public notice of a project shall be given by publication
once a week for at least two consecutive weeks or once a week for
more than two consecutive weeks if the longer period of advertising
is deemed necessary by the Legislature, as follows:
(a) In a newspaper of general circulation published in the county
in which the project is located, or if located in more than one
county, in such a newspaper in a county in which a major portion of
the work is to be done.
(b) In a trade paper of general circulation published in San
Francisco for projects located in County Group No. 1, as defined in
Section 187 of the Streets and Highways Code, or in Los Angeles for
projects located in County Group No. 2, as defined in Section 187 of
the Streets and Highways Code, devoted primarily to the dissemination
of contract and building news among contracting and building
materials supply firms.
The Legislature may publish the notice to bidders for a project in
additional trade papers or newspapers of general circulation that it
deems advisable.
10001. The notice shall state the time and place for the
receiving and opening of sealed bids, describing in general terms the
work to be done and that the bids will be required for the entire
project and for the performance of separate designated parts of the
entire project, if the Legislature determines that segregation is
advisable.
CHAPTER 2. BIDS AND BIDDERS
10010. (a) The Legislature may require prospective bidders to
respond to questions contained in a standard form of questionnaire
and financial statement, including a complete statement, of the
prospective bidder's financial ability and experience in performing
public works. The questionnaire and financial statement shall be
verified under oath by the bidder in the manner in which pleadings in
civil actions are verified.
(b) If prequalification is required of any bidder on a contract,
prequalification shall be required for all prospective bidders to
that contract.
10011. (a) The Legislature may also require a prospective bidder
to complete, under penalty of perjury, a standard form of
questionnaire concerning the past safety record of each prospective
bidder, any officer of that bidder, and any managing employee of that
bidder. The Legislature may refuse to prequalify any prospective
bidder who fails to submit a completed questionnaire, or for the
reason that the information contained in the submitted questionnaire,
or based on information otherwise known to the Legislature,
indicates an unsatisfactory safety record.
(b) The Legislature shall prescribe guidelines listing criteria
that will be utilized administratively in determining an
unsatisfactory safety record. A refusal by the Legislature to
prequalify a prospective bidder shall be issued only after the
Legislature has granted the bidder a hearing.
(c) This section shall not abridge or restrict the right of the
Legislature to later determine whether the low bidder on a particular
project is the lowest responsible bidder for purposes of award of
the contract, including the holding of hearings on that
determination.
(d) The Legislature shall preapprove the standard form of
questionnaire and the guidelines listing criteria that will be
utilized administratively by the Legislature in determining whether a
bidder has an unsatisfactory safety record.
10012. (a) The Legislature shall require all prospective bidders
to complete, under penalty of perjury, a standard form of
questionnaire inquiring whether that prospective bidder, any officer
of that bidder, or any employee of that bidder who has a proprietary
interest in that bidder, has ever been disqualified, removed, or
otherwise prevented from bidding on, or completing a federal, state,
or local government project because of a violation of law or a safety
regulation, and, if so, to explain the circumstances.
(b) A bid may be rejected on the basis of a bidder, any officer of
that bidder, or any employee of that bidder who has a proprietary
interest in that bidder, has been disqualified, removed, or otherwise
prevented from bidding on, or completing a federal, state, or local
project because of a violation of law or a safety regulation.
10013. (a) The Legislature shall adopt and apply a uniform system
of rating bidders, on the basis of the standard questionnaires and
financial statements, in respect to the size of the contracts upon
which each bidder is qualified to bid. When bids for more than one
project are to be received at the same bid opening, the Legislature
may permit a bidder to submit bids for each project within that
bidder's prequalification rating, even though a rating is
insufficient to permit the bidder to be awarded the contract for each
project bid upon.
(b) A bidder shall not be awarded a contract if the award of the
contract would result in the bidder having, under contract, work for
which prequalification is required in excess of that authorized by
his or her prequalification rating. In determining whether an award
of a contract would result in a bidder having, under contract, work
in excess of that authorized by his or her prequalification rating,
the Legislature may use its estimated cost of such contract rather
than the amount of the bidder's bid. If the Legislature determines
that a bidder would be awarded the contract for two or more projects
but cannot be awarded the contract for all of the projects because of
the inadequacy of his or her prequalification rating, the
Legislature shall determine which of the bids of that bidder are to
be accepted and the contract awarded and which of the bids of the
bidder are to be disregarded. In making its decision the Legislature
shall be guided by the combination of contract awards that will
result in the lowest total cost for the projects involved.
10014. In all projects for which federal funds are involved, a
bid submitted shall not be invalidated by the failure of the bidder
to be licensed in accordance with the laws of this state. However, at
the time the contract is awarded, the contractor shall be properly
licensed in accordance with the laws of this state. The contract
shall not be awarded unless the Legislature has verified that the
contractor has a valid license in the appropriate classification for
the work performed. Any bidder or contractor that is not properly
licensed shall be subject to all legal penalties imposed by law,
including, but not limited to, any appropriate disciplinary action by
the Contractors State License Board. The Legislature shall include a
statement to that effect in the standard form of prequalification
questionnaire and financial statement. Failure of the bidder to
obtain proper and adequate licensing for an award of a contract shall
constitute a failure to execute the contract as provided in Section
10031 and shall result in the forfeiture of the security of the
bidder.
10015. Information that is not a public record pursuant to the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code) shall not be
open to public inspection.
10016. The Legislature shall furnish to each bidder a standard
proposal form, that, when filled out and executed, may be submitted
as his or her bid. Bids not presented on forms so furnished shall be
disregarded. The Legislature shall not furnish proposal forms to any
person required to submit that has not submitted a questionnaire and
financial statement for prequalification at least five days prior to
the date fixed for publicly opening sealed bids if that person has
not been prequalified for at least one day prior to that date.
10017. All bids shall be presented under sealed cover and
accompanied by one of the following forms of bidder's security: cash,
a cashier's check, certified check, or a bidder's bond executed by
an admitted surety insurer, made payable to the Legislature. The
security shall be in an amount equal to at least 10 percent of the
amount bid. A bid shall not be considered unless one of the forms of
bidder's security is enclosed with it.
10018. Whether or not bids are opened exactly at the time fixed
in the public notice for opening bids, a bid shall not be received
after the date fixed in the public notice for opening the bids.
10019. (a) A bid may be withdrawn at any time prior to the time
fixed in the public notice for the opening of bids only by written
request to the Legislature for the withdrawal of the bid. The request
shall be executed by the bidder or his or her duly authorized
representative. The withdrawal of a bid does not prejudice the right
of the bidder to file a new bid.
(b) This section does not authorize the withdrawal of any bid
after the time fixed in the public notice for the opening of bids.
CHAPTER 3. AWARD OF CONTRACTS
10030. On the day named in the public notice, the Legislature
shall publicly open the sealed bids and award the contracts to the
lowest responsible bidders.
10031. If the successful bidder fails to execute the contract,
his or her bidder's security shall be forfeited to the state. The
cash or proceeds shall be deposited in the fund out of which the
expenses of preparation and printing of the plans and specifications,
estimates of cost, and publication of notice are paid.
10032. (a) If the Legislature deems that it is in the best
interests of the state, on the refusal or failure of the successful
bidder to execute the contract, the Legislature may award the
contract to the second lowest responsible bidder.
(b) If the second lowest responsible bidder fails or refuses to
execute the contract, the Legislature may likewise award the contract
to the third lowest responsible bidder.
(c) On the failure or refusal of the second or third lowest
bidder, to whom a contract is awarded, to execute the contract, his
or her bidder's security shall be likewise forfeited to the state.
10033. The failure of the successful bidder to furnish any bond
required within the time fixed for his or her execution of the
contract, constitutes a failure to execute the contract.
10034. The bidders' security of the second and third lowest
responsible bidders may be withheld until the contract has been
finally executed. The cash, cashier's checks, and certified checks
submitted by all other unsuccessful bidders shall be returned within
10 days after the contract is awarded, and the bidders' bonds shall
be of no further effect.
10035. If the Legislature deems that the acceptance of the lowest
responsible bid or bids is not in the best interests of the state,
after stating the reasons for rejecting the bid or bids, the
Legislature may reject all bids and proceed by day labor or advertise
for other bids in the manner required by this part.
SEC. 2. Section 10295 of the Public Contract Code is amended to
read:
10295. (a) All contracts entered into by any state agency or
by the Legislature for (1) the acquisition of goods or
elementary school textbooks, (2) services, whether or not the
services involve the furnishing or use of goods or are performed by
an independent contractor, (3) the construction, alteration,
improvement, repair, or maintenance of property, real or personal, or
(4) the performance of work or services by the state agency for or
in cooperation with any person, or public body, are void unless and
until approved by the department. Every contract shall be transmitted
with all papers, estimates, and recommendations concerning it to the
department and, if approved by the department, shall be effective
from the date of the approval.
(b) This section applies to any state agency that by general or
specific statute is expressly or impliedly authorized to enter into
transactions referred to in this section.
(c) This section does not apply to the following:
(1) Any transaction entered into by the Trustees of the California
State University, by the Board of Governors of the California
Community Colleges, or by a department under the State Contract Act
or the California State University Contract Law.
(2) Any contract of a type specifically mentioned and authorized
to be entered into by the Department of Transportation under Section
14035 or 14035.5 of the Government Code, Sections 99316 to 99319,
inclusive, of the Public Utilities Code, or the Streets and Highways
Code.
(3) Any contract entered into by the Department of Transportation
that is not funded by money derived by state tax sources but, rather,
is funded by money derived from federal or local tax sources.
(4) Any contract entered into by the Department of Personnel
Administration for state employee benefits, occupational health and
safety, training services, or combination thereof.
(5) Any contract let by the Legislature that is deemed to be
necessary to meet an emergency, as specified in paragraph (1) of
subdivision (b) of Section 10340 .
(6) Any contract entered into under the authority of Chapter 4
(commencing with Section 11770) of Part 3 of Division 2 of the
Insurance Code.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
