Bill Text: CA AB2635 | 2011-2012 | Regular Session | Amended
Bill Title: Public contracts: construction services: prevailing wage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-04-24 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2635 Detail]
Download: California-2011-AB2635-Amended.html
BILL NUMBER: AB 2635 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 11, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Roger Hernández
FEBRUARY 24, 2012
An act to amend Sections 20919 and 20919.3 of, and to
repeal Sections 20919.12, 20919.14, and 20919.15 of, the Public
Contract Code, relating to public contracts, and making an
appropriation therefor. An act to add Section 6103 to
the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2635, as amended, Roger Hernández. Public contracts:
job order contracting. construction services:
prevailing wage.
Existing law allows public entities to enter into contracts for
work including, but not limited to, repair, remodeling, and other
repetitive work to be done according to unit prices.
This bill would require any public entity that contracts for
construction services using a unit price contract or annual contract,
as defined, to only accept bids that contain unit prices developed
using the general prevailing rate, as provided.
Existing law authorizes job order contracting, as provided, by the
Los Angeles Unified School District, until December 1, 2012.
Existing law requires that the unified school district create a
report of any job order contract procured, and the work under each
contract completed on or before November 1, 2011, and an interim
report on all job order contracts completed by December 31, 2004.
Existing law required the submission of these reports to certain
committees in the Legislature and the Office of Public School
Construction, as specified, by November 30, 2011, and June 30, 2005,
respectively. Existing law requires for contracts awarded pursuant to
these provisions that the Los Angeles Unified School District pay a
fee into the State Public Works Enforcement Fund, which funds are
continuously appropriated for the Department of Industrial Relations'
enforcement of prevailing wage requirements on public works
projects.
This bill would delete the date existing law is schedule to be
repealed, making the above provisions operative indefinitely. This
bill would also remove the obsolete reporting requirements. Because
additionally authorized projects would require payment of fees into
the State Public Works Enforcement Fund, this bill would make an
appropriation.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6103 is added to the
Public Contract Code , to read:
6103. (a) For the purposes of this section, the following
definitions apply:
(1) "Construction services" shall include, but is not limited to,
minor construction, renovation, alteration, and repair of existing
facilities.
(2) "Unit price contract or annual contract" means a competitively
bid, firm fixed price, indefinite quantity contract for the
performance of construction services during an agreed upon time
period, typically for one year with options to extend the contract
for multiple years.
(3) "Unit price" means the amount paid for a single unit of an
item of work.
(b) A public entity that contracts for construction services using
a unit price contract or annual contract shall only accept bids
containing unit prices developed using the general prevailing rate as
provided in Section 1771 of the Labor Code.
SECTION 1. Section 20919 of the Public Contract
Code is amended to read:
20919. The Legislature finds and declares all of the following:
(a) It is the intent of the Legislature, in enacting this article,
to demonstrate an alternative and optional procedure for bidding of
public works projects that is applicable only to the Los Angeles
Unified School District.
(b) The Los Angeles Unified School District should be able to
utilize cost-effective options for the delivery of public works
projects, in accordance with the national trend, which include
authorizations in California, to allow public entities to utilize job
order contracts as a project delivery method.
(c) The benefits of a job order contract project delivery system
include accelerated completion of the projects, cost savings, and
reduction of construction contracting complexity for the unified
school district.
(d) The job order contracting approach should be used for the
purposes of reducing project cost and expediting project completion.
(e) The availability of job order contracting as a project
delivery method will not preclude the use of traditional methods of
project delivery if a traditional method results in higher cost
savings.
(f) It is the intent of the Legislature that job order contracts
be competitively bid and awarded to the responsible qualified bidder
providing the lowest responsive bid. It is further the intent of the
Legislature that nothing in the job order contract process or its
implementation be used to disenfranchise any bidder or class of
bidders that otherwise would meet the requirements of this article.
SEC. 2. Section 20919.3 of the Public Contract
Code is amended to read:
20919.3. (a) (1) For contracts for public works projects awarded
prior to the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the unified school district shall
establish and enforce for job order contracts a labor compliance
program containing the requirements outlined in Section 1771.5 of the
Labor Code, or it shall contract with a third party to operate a
labor compliance program containing the requirements outlined in that
provision. This requirement does not apply to any project where the
unified school district or the job order contractor has entered into
a collective bargaining agreement or agreements that bind all of the
contractors performing work on the projects.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the Department of
Industrial Relations pursuant to subdivision (g) of Section 1771.5 of
the Labor Code, the unified school district shall reimburse the
department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this subdivision shall be deposited in
the State Public Works Enforcement Fund created by Section 1771.3 of
the Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the unified
school district may elect to continue operating an existing
previously approved labor compliance program to monitor and enforce
prevailing wage requirements on the project if it has either not
contracted with a third party to conduct its labor compliance program
and requests and receives approval from the department to continue
its existing program or it enters into a collective bargaining
agreement that binds all of the contractors performing work on the
project and that includes a mechanism for resolving disputes about
the payment of wages.
(b) The unified school district shall prepare an execution plan
for all modernization projects that may be eligible for job order
contracting pursuant to this article. The unified school district
shall select from that plan a sufficient number of projects to be
initiated as job order contracts during each calendar year and shall
determine for each selected project that job order contracting will
reduce the total cost of that project. Job order contracting shall
not be used if the unified school district finds that it will
increase the total cost of the project.
SEC. 3. Section 20919.12 of the Public Contract
Code is repealed.
SEC. 4. Section 20919.14 of the Public Contract
Code is repealed.
SEC. 5. Section 20919.15 of the Public Contract
Code is repealed.
