Bill Text: CA AB1565 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Public contracts: school districts: bidding requirements.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-30 - Chaptered by Secretary of State - Chapter 808, Statutes of 2012. [AB1565 Detail]

Download: California-2011-AB1565-Amended.html
BILL NUMBER: AB 1565	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 6, 2012
	AMENDED IN SENATE  JUNE 21, 2012
	AMENDED IN ASSEMBLY  MAY 25, 2012
	AMENDED IN ASSEMBLY  APRIL 26, 2012

INTRODUCED BY   Assembly Member Fuentes
   (Coauthor: Senator Alquist)

                        JANUARY 30, 2012

   An act to  amend, repeal, and add Section 20111.5 of, and
to  add and repeal Section 20111.6 of  , 
the Public Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1565, as amended, Fuentes. Public contracts: school districts:
bidding requirements.
   Under existing law, the governing board of a school district may
require each prospective bidder for specified contracts to submit a
standardized questionnaire and financial statement, including
information relating to financial ability and experience in
performing public works, which is required to be verified under oath.
Existing law further requires a school district requiring the above
information to adopt and apply a uniform system of rating bidders on
the basis of the completed questionnaires and financial statements,
as specified. 
   This bill, until January 1, 2019, would require the questionnaire
and uniform system of rating bidders described above to cover, at a
minimum, the issues covered by the standardized questionnaire and
model guidelines for rating bidders developed by the Department of
Industrial Relations, as specified. This bill would provide that the
questionnaire and uniform system of rating bidders described above
shall not preclude the governing board of the district from
prequalifying or disqualifying a subcontractor. This bill would
provide that these provisions would not apply to school districts
with an average daily attendance of less than 2,500. This bill would
provide that bidders would include the prime contractor and, if
utilized, all electrical, mechanical, and plumbing subcontractors.
This bill would require a school district to provide a list of
prequalified bidders to all bidders at least 2 business days prior to
the dates fixed for the public opening of sealed bids for specified
public projects. 
   This bill, for contracts awarded on and after January 1, 2014, and
until January 1, 2019, would  also  require the
governing board of the district, except for school districts with an
average daily attendance of less than 2,500, for certain public
projects,  if the governing board of the district chooses not
to follow the uniform system of rating bidders described above,
 to use  other  procedures, which require a
standardized questionnaire and financial statement to be verified
under oath, for bidding applicable to public entities, as prescribed.
 This bill would require the questionnaire and uniform system of
rating bidders to cover, at a minimum, the issues covered by the
standardized questionnaire and model guidelines for rating bidders
developed by the Department of Industrial Relations, as specified.
This bill would provide that the questionnaire and uniform system of
rating bidders would not preclude the governing board of the district
from prequalifying or disqualifying a subcontractor. This bill would
provide that bidders would include the general contractor and, if
utilized, all electrical, mechanical,   and plumbing
subcontractors. This bill would authorize the board of the district
to establish a process for prequalifying prospective bidders on a
quarterly or annual basis, as provided.  The bill would also
require the Director of Industrial Relations, on or before January 1,
2018, to submit a report to the Legislature evaluating whether labor
violations have decreased, as specified, and to recommend
improvements to the system for prequalifying contractors and
subcontractors on school district projects. By expanding the scope of
an existing crime and by imposing new duties on local officials,
this bill would impose a state-mandated local program.
    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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
   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.    Section 20111.5 of the Public
Contract Code is amended to read:
   20111.5.  (a) The governing board of the district may require that
each prospective bidder for a contract, as described under Section
20111, complete and submit to the district a standardized
questionnaire and financial statement in a form specified by the
district, 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 civil pleadings in civil actions
are verified. The questionnaires and financial statements shall not
be public records and shall not be open to public inspection.
   (b) Any school district requiring prospective bidders to complete
and submit questionnaires and financial statements, as described in
subdivision (a), shall adopt and apply a uniform system of rating
bidders on the basis of the completed questionnaires and financial
statements, in order to determine the size of the contracts upon
which each bidder shall be deemed qualified to bid.
   (c) The questionnaire described in subdivision (a), and the
uniform system of rating bidders described in subdivision (b), shall
cover, at a minimum, the issues covered by the standardized
questionnaire and model guidelines for rating bidders developed by
the Department of Industrial Relations pursuant to subdivision (a) of
Section 20101.
   (d) Each prime contractor providing a bid on any contract
described under Section 20111 shall be furnished by the school
district letting the contract with a standardized proposal form that,
when completed and executed, shall be submitted as his or her bid.
Bids not presented on the forms so furnished shall be disregarded.
   (e) A proposal form required pursuant to subdivision (d) shall not
be accepted from any person or other entity that is required to
submit a completed questionnaire and financial statement for
prequalification pursuant to subdivision (a) or from any person or
other entity that uses a subcontractor that is required to submit a
completed questionnaire and financial statement for prequalification
pursuant to subdivisions (a) and (i), but has not done so at least 10
business days prior to the date fixed for the public opening of
sealed bids or has not been prequalified, pursuant to subdivision
(b), for at least five business days prior to that date.
   (f) If a public project covered by this section includes
electrical, mechanical, or plumbing components that will be performed
by electrical, mechanical, or plumbing subcontractors, a list of
prequalified prime contractors and electrical, mechanical, and
plumbing subcontractors shall be made available by the school
district to all bidders at least two business days prior to the dates
fixed for the public opening of sealed bids.
   (g) Notwithstanding subdivision (e), any school district may
establish a process for prequalifying prospective bidders pursuant to
this section on a quarterly basis and may authorize that
prequalification to be considered valid for up to one calendar year
following the date of initial prequalification.
   (h) This section shall not preclude the governing board of the
district from prequalifying or disqualifying a subcontractor.
   (i) For purposes of this section, bidders shall include the prime
contractor and, if utilized, all electrical, mechanical, and plumbing
subcontractors.
   (j) For purposes of this section, electrical, mechanical, and
plumbing subcontractors are contractors licensed pursuant to Section
7058 of the Business and Professions Code, specifically contractors
holding C-4, C-7, C-10, C-16, C-20, C-34, C-36, C-38, C-42, C-43, and
C-46 licenses, pursuant to regulations of the Contractors State
License Board.
   (k) The amendments made by the act adding this subdivision shall
not apply to a school district with an average daily attendance of
less than 2,500.
   (l) This section shall become inoperative on January 1, 2019, and,
as of July 1, 2019, is repealed.  
  SEC. 2.    Section 20111.5 is added to the Public
Contract Code, to read:
   20111.5.  (a) The governing board of the district may require that
each prospective bidder for a contract, as described under Section
20111, complete and submit to the district a standardized
questionnaire and financial statement in a form specified by the
district, 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 civil pleadings in civil actions
are verified. The questionnaires and financial statements shall not
be public records and shall not be open to public inspection.
   (b) Any school district requiring prospective bidders to complete
and submit questionnaires and financial statements, as described in
subdivision (a), shall adopt and apply a uniform system of rating
bidders on the basis of the completed questionnaires and financial
statements, in order to determine the size of the contracts upon
which each bidder shall be deemed qualified to bid.
   (c) Each prospective bidder on any contract described under
Section 20111 shall be furnished by the school district letting the
contract with a standardized proposal form that, when completed and
executed, shall be submitted as his or her bid. Bids not presented on
the forms so furnished shall be disregarded.
   (d) A proposal form required pursuant to subdivision (c) shall not
be accepted from any person or other entity that is required to
submit a completed questionnaire and financial statement for
prequalification pursuant to subdivision (a), but has not done so at
least five days prior to the date fixed for the public opening of
sealed bids or has not been prequalified, pursuant to subdivision
(b), for at least one day prior to that date.
   (e) Notwithstanding subdivision (d), any school district may
establish a process for prequalifying prospective bidders pursuant to
this section on a quarterly basis and may authorize that
prequalification to be considered valid for up to one calendar year
following the date of initial prequalification.
   (f) This section shall become operative on January 1, 2019.

   SEC. 3.   SECTION 1.   Section 20111.6
is added to the Public Contract Code, to read:
   20111.6.  (a) This section shall apply only to public projects, as
defined in subdivision (c) of Section 22002, for which the governing
board of the district uses funds received pursuant to the Leroy F.
Greene School Facilities Act of 1998 (Chapter 12.5 (commencing with
Section 17070.10) of Part 10 of Division 1 of Title 1 of the
Education Code) or any funds from any future state school bond for a
public project that involves a projected expenditure of one million
dollars ($1,000,000) or more.
   (b) If the governing board of the district  does not
utilize the procedures set forth in Section 20111.5 for 
 enters into  a contract meeting the criteria of subdivision
(a), then the governing board of the district shall  use the
procedures for qualification of bidders set forth in Section 20101.
  require that prospective bidders for a construction
contract complete and submit to the board of the district a
standardized   prequalification questionnaire and financial
statement   . The questionnaire and financial statement
shall be verified under oath by the bidder in the manner in which
civil pleadings in civil actions are verified. The questionnaires and
financial statements   shall not be public records and
shall not be open to public inspection.  
   (c) The board of the district shall adopt and apply a uniform
system of rating bidders on the basis of the completed questionnaires
and financial statements.  
   (d) The questionnaire and financial statement described in
subdivision (b), and the uniform system of rating bidders described
in subdivision (c), shall cover, at a minimum, the issues covered by
the standardized questionnaire and model guidelines for rating
bidders developed by the Department of Industrial Relations pursuant
to subdivision (a) of Section 20101.  
   (e) Each prospective bidder shall be furnished by the school
district letting the contract with a standardized proposal form that,
when completed and executed, shall be submitted as his or her bid.
Bids not presented on the forms so furnished shall be disregarded.
 
   (f) A proposal form required pursuant to subdivision (e) shall not
be accepted from any person or other entity that is required to
submit a completed questionnaire and financial statement for
prequalification pursuant to subdivision (b) or from any person or
other entity that uses a subcontractor that is required to submit a
completed questionnaire and financial statement for prequalification
pursuant to subdivision (b), but has not done so at least 10 business
days prior to the date fixed for the public opening of sealed bids
or has not been prequalified for at least five business days prior to
that date.  
   (g) The board of the district may establish a process for
prequalifying prospective bidders pursuant to this section on a
quarterly or annual basis and a prequalification pursuant to this
process shall be valid for one calendar year following the date of
initial prequalification.  
   (h) This section shall not preclude the governing board of the
district from prequalifying or disqualifying a subcontractor. 

   (c) 
    (i)  For purposes of this section, bidders shall include
the  prime   general  contractor and, if
utilized, all electrical, mechanical, and plumbing subcontractors.

   (d) 
    (j) If a public project covered by this section includes
electrical, mechanical, or plumbing components that will be
performed by electrical, mechanical, or plumbing contractors, a list
of prequalified  prime   general 
contractors and electrical, mechanical, and plumbing subcontractors
shall be made available by the school district to all bidders at
least  two   five  business days prior to
the dates fixed for the public opening of sealed bids. 
   (e) 
    (k)  For purposes of this section, electrical,
mechanical, and plumbing subcontractors are contractors licensed
pursuant to Section 7058 of the Business and Professions Code,
specifically contractors holding C-4, C-7, C-10, C-16, C-20, C-34,
C-36, C-38, C-42, C-43, and C-46 licenses, pursuant to regulations of
the  Contractors   Contractors   '
 State License Board. 
   (f) 
    (l)  This section shall not apply to a school district
with an average daily attendance of less than 2,500. 
   (g) 
    (m)  This section shall apply only to contracts awarded
on or after January 1, 2014. 
   (h) 
    (n)  (1) On or before January 1, 2018, the Director of
Industrial Relations shall (A) submit a report to the Legislature
evaluating whether, during the years this section has applied to
contracts, violations of the Labor Code on school district projects
have decreased as compared to the same number of years immediately
preceding the enactment of this section, and (B) recommend
improvements to the system for prequalifying contractors and
subcontractors on school district projects.
   (2) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.

   (i) 
    (o)  This section shall become inoperative on January 1,
2019, and, as of July 1, 2019, is repealed.
   SEC. 4.   SEC. 2.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution for certain costs that may be incurred by a
local agency or school district because, in that regard, 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.
   However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
                  
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