CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 577

Introduced by Assembly Member Gallagher

February 11, 2021

An act to amend Sections 20622, 20631, and 20921 of, and to repeal Section 20927 of, the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 577, as introduced, Gallagher. County drainage districts: levee districts: reclamation districts.
The Local Agency Public Construction Act sets forth the requirements for competitive bidding on various types of contracts awarded by local agencies. The act requires county drainage districts to let any contract for the doing of work and furnishing material to the lowest responsible bidder. The act governs levee district contracts in excess of $2,500 for the construction or repair of any levees or associated works, as specified. The act requires reclamation district contracts for any improvement or unit of work, or for materials or supplies, in excess of $25,000 to be let to the lowest responsive, responsible bidder. The act, for certain projects and purchases of materials for projects of a reclamation district, authorizes the reclamation district to exceed those limitations to a maximum of $50,000, if approved by landowners of the district, as prescribed (landowner approval).
This bill would establish a $50,000 threshold amount for county drainage districts for the requirement to let to the lowest responsible bidder. The bill would increase the threshold amount for subjecting levee districts to the act from $2,500 to $50,000. The bill would increase the lowest responsible bidder threshold amount for reclamation district contracts from $25,000 to $50,000 and would delete the landowner approval provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 20622 of the Public Contract Code is amended to read:

20622.
 Any contract for the doing of the work and furnishing any or all of the material in excess of fifty thousand dollars ($50,000) shall be let to the lowest responsible bidder submitting a sealed bid in response to a notice calling for bids.

SEC. 2.

 Section 20631 of the Public Contract Code is amended to read:

20631.
 Contracts in excess of two thousand five hundred dollars ($2,500) fifty thousand dollars ($50,000) for the construction or repair of any levees or associated works, unless the construction or repair is done under its the district’s own superintendence, shall be made pursuant to this chapter.

SEC. 3.

 Section 20921 of the Public Contract Code is amended to read:

20921.
 All contracts for any improvement or unit of work, or for materials or supplies, in excess of twenty-five thousand dollars ($25,000) fifty thousand dollars ($50,000) shall be let to the lowest responsive, responsible bidder, except as otherwise provided in this article.

SEC. 4.

 Section 20927 of the Public Contract Code is repealed.
20927.

The limitations set forth in Section 20921 may be exceeded to a maximum of fifty thousand dollars ($50,000) for projects and purchases of materials for projects for which no assistance from federal, state, or other local governmental agencies is requested, if that approval is secured from the landowners of the district representing at least two-thirds of the assessment valuation of the district, or if no assessment has been collected within the prior year, by the landowners representing at least two-thirds of the acreage within the district. The approval may be obtained either through a special election held for that purpose or by written consent of the approving landowners. The special election may be conducted by mail ballot.