BILL NUMBER: SB 918	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 22, 2014

INTRODUCED BY   Senator Gaines

                        JANUARY 27, 2014

    An act to amend Section 9250 of the Vehicle Code,
relating to vehicles.   An act to add Sections 14104.1
and 14106 to the Government Code, to amend Section 10120 of the
Public Contract Code, and to add Section 172 to the Streets and
Highways Code, relating to transportation. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 918, as amended, Gaines.  Vehicle registration.
  Department of Transportation.  
   (1) Existing law provides that the Department of Transportation
has full possession and control of the state highway system and
associated property. Existing law authorizes the department to
purchase or rent any necessary supplies, instruments, tools,
equipment, and conveniences as may be necessary for the proper
discharge of its duties.  
   This bill would require the department to develop and implement an
asset management program that will efficiently and effectively
catalog the department's assets to ensure the most efficient usage
and maintenance of those assets.  
   (2) Existing law, the State Records Management Act, imposes
certain requirements on state agencies with respect to retention of
records that have administrative, legal, or fiscal value.  
   This bill would impose additional record retention requirements on
the Department of Transportation with respect to documents that are
associated with construction projects. The bill would provide that
the department shall be liable for any loss or damage to any party
resulting from failure to retain these documents, and would provide
for a civil penalty of up to $500 for each occurrence of a missing
document.  
   (3) Existing law, the State Contract Act, generally provides for a
contracting process by state agencies for public works of
improvement via a competitive bidding process, under which bids are
awarded to the lowest responsible bidder, with certain alternative
bidding procedures authorized in certain cases. Existing law requires
a department, as defined for purposes of the State Contract Act,
including the Department of Transportation, to prepare full,
complete, and accurate plans and specifications and estimates of cost
before entering into any competitively bid contract for a public
works project.  
    This bill would, with respect to competitively bid projects,
require the department, before it commences the design of a project's
plans, to first obtain full, complete, and accurate survey
information of the field conditions existing in the location where
construction of the project is to be performed. The bill would also
require the department, when preparing the project's plans, to use
state-of-the-art design software that allows for the preparation of
full, complete, and accurate plans and that does not automatically
fix errors in the design but rather requires the project designer to
correct errors on an individualized, contemplative basis.  
   (4) Existing law requires the department to annually prepare and
submit to the Governor a proposed budget, and to inform the
California Transportation Commission of all pertinent assumptions and
policy directions it intends to use in preparing the budget.
Existing law also requires the department to develop budgeting,
accounting, fiscal control, and management information systems in
order to support its proposed budgets and to improve its program
management, as specified.  
   This bill would require the department, in preparing the proposed
budget, to include detailed information about outstanding contractor
claims, as defined, relating to construction projects, and to reserve
sufficient moneys in each budget to pay accumulated outstanding
claims, as specified, and to report on those claims and reserves in
budget-related reports.  
   Existing law requires the Department of Motor Vehicles to charge a
registration fee of $31 on every vehicle or trailer coach, as
specified, registered prior to July 1, 2011, and to charge a
registration fee of $43 on every vehicle or trailer coach, as
specified, registered on or after July 1, 2011. Existing law further
provides that the proceeds collected from increasing the registration
fee from $31 to $43 be used only in connection with the regulation
of vehicles.  
   This bill would make a technical, nonsubstantive change to these
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 14104.1 is added to the 
 Government Code  , to read:  
   14104.1.  The department shall develop and implement an asset
management program that will efficiently and effectively catalog the
department's assets to ensure the most efficient usage and
maintenance of those assets. 
   SEC. 2.    Section 14106 is added to the  
Government Code   , to read:  
   14106.  (a) The requirements of this section shall be in addition
to the requirements for document retention applicable to all state
agencies pursuant to the State Records Management Act (Chapter 5
(commencing with Section 14740) of Part 5.5).
   (b) (1) For purposes of this subdivision, "document" includes, but
is not limited to, a document subject to subdivision (a), email
messages and associated attachments, text messages, and handwritten
notes of any kind, including, but not limited to, diaries,
measurement notes, inspection notes, calculations, and meeting
minutes. "Document" also includes any other writing that would
normally be retained as part of a construction project file.
   (2) The department shall retain, as part of a construction project'
s file, all documents that are in any way related to the design,
construction, or administration, at every stage, of a construction
project. The documents shall be retained by the department until
final closeout and payment in full for each element of the project is
complete, and all outstanding claims relating to the project have
been resolved, including any available appeal.
   (c) If the department fails to retain a document required to be
retained pursuant to subdivision (b) or as required by any other
applicable law, it shall be liable for any loss or damage to any
party resulting from that failure and shall also be subject to a
civil penalty of up to five hundred dollars ($500) for each
occurrence of a missing document. An action under this subdivision
for recovery of a civil penalty may be brought by the Attorney
General or a district attorney. 
   SEC. 3.    Section 10120 of the   Public
Contract Code   is amended to read: 
   10120.   (a)    Before entering into any
contract for a project, the department shall prepare full, complete,
and accurate plans and specifications and estimates of cost, giving
such directions as will enable any competent mechanic or other
builder to carry them out. 
   (b) (1) Before the Department of Transportation commences the
design of a project's plans, it shall first obtain full, complete,
and accurate survey information of the field conditions existing in
the location where construction of the project is to be performed.
The Department of Transportation, when preparing a project's plans,
shall ensure that the plans match existing conditions and shall use
state-of-the-art design software that allows for the preparation of
full, complete, and accurate plans and that does not automatically
fix errors in the design but rather requires the project designer to
correct errors on an individualized, contemplative basis.  
   (2) Upon award of a contract, the Department of Transportation and
the contractor shall engage in a joint postbid constructability
review to identify any remaining issues and seek to resolve them

   SEC. 4.    Section 172 is added to the  
Streets and Highways Code   , to read:  
   172.  (a) As used in this section, "claim" includes, but is not
limited to, a claim with respect to a construction project that is
submitted through the notice of potential claims procedures, an after
contract acceptance claim, or a lien. This section applies to a
construction project regardless of the contracting method used for
the project.
   (b) Each proposed budget prepared by the department shall include
detailed financial information about all outstanding claims submitted
by contractors, including passthrough claims submitted by
contractors on behalf of subcontractors. Each budget shall contain a
reserve of moneys sufficient to pay outstanding accumulated claims
for all construction projects, as determined pursuant this section.
   (c) For each construction project for which the department
receives a claim through the notice of potential claims procedures or
an after contract acceptance claim, stating a monetary value, moneys
shall be reserved that are sufficient to pay, at a minimum, 60
percent of the claim's value as stated by the contractor, except that
if a claim is heard by the project's dispute resolution board and a
majority of the board finds in favor of the claimant, or if a board
of review, or the department's district director in the district
having jurisdiction of the project, finds in favor of the claimant,
moneys shall be reserved that are sufficient to pay 100 percent of
the claim's value as determined by the applicable board or district
director.
   (d) The department shall continue to report, in its budget
documents and otherwise, the value of each outstanding claim as
determined pursuant to this section, and to reserve funding to pay
each claim as required by this section, until the claim is finally
resolved.  
  SECTION 1.    Section 9250 of the Vehicle Code is
amended to read:
   9250.  (a) A registration fee of thirty-one dollars ($31) shall be
paid to the department for the registration of each vehicle or
trailer coach of a type subject to registration under this code,
except those vehicles that are expressly exempted under this code
from the payment of registration fees. This subdivision applies to
all of the following:
   (1) The initial or original registration, on or after January 1,
2004, but before July 1, 2011, of any vehicle not previously
registered in this state.
   (2) The renewal of registration of any vehicle for which the
registration period expires on or after January 1, 2004, but before
July 1, 2011, regardless of whether a renewal application was mailed
to the registered owner prior to January 1, 2004.
   (b) A registration fee of forty-three dollars ($43) shall be paid
to the department for the registration of each vehicle or trailer
coach of a type subject to registration under this code, except those
vehicles that are expressly exempted under this code from the
payment of registration fees. This subdivision applies to all of the
following:
   (1) The initial or original registration, on or after July 1,
2011, of any vehicle not previously registered in this state.
   (2) The renewal of registration of any vehicle for which the
registration period expires on or after July 1, 2011, regardless of
whether a renewal application was mailed to the registered owner
prior to July 1, 2011.
   (c) The registration fee imposed under this section applies to all
vehicles described in Section 5004, whether or not special
identification plates are issued to that vehicle.
   (d) Trailer coaches are subject to the registration fee provided
in subdivision (a) or (b) for each unit of the trailer coach.
   (e) The amounts collected pursuant to the increase in the
registration fee as specified in subdivision (b) shall be used only
for costs incurred in connection with the regulation of vehicles,
including administrative costs for vehicle registration.