Bill Text: CA AB1444 | 2015-2016 | Regular Session | Amended
Bill Title: Design-build projects: the Salton Sea.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1444 Detail]
Download: California-2015-AB1444-Amended.html
BILL NUMBER: AB 1444 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 9, 2016
AMENDED IN SENATE JUNE 11, 2015
AMENDED IN SENATE MAY 26, 2015
INTRODUCED BY Assembly Member Eduardo Garcia
FEBRUARY 27, 2015
An act to amend Sections 6300, 6302, and 6304 of, and to
repeal Sections 6301, 6303, and 6305 of, the Government Code,
relating to state government. Section 13332.19 of the
Government Code, and to amend Sections 10187.5 and 10190 of the
Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1444, as amended, Eduardo Garcia. Foreign-trade zones.
Design-build projects: the Salton Sea.
Existing law, except as specified, prohibits any state agency from
expending funds appropriated for design-build projects until the
Department of Finance and the State Public Works Board have approved
performance criteria for the project.
This bill would include among the exceptions to those provisions
amounts appropriated for projects at the Salton Sea.
Existing law requires either the Director of General Services or
the Secretary of the Department of Corrections and Rehabilitation to
notify the State Public Works Board regarding the method to be used
for selecting a design-build entity, prior to advertising the
design-build project.
This bill would, for purposes of projects at the Salton Sea,
instead require the Director of the Department of Water Resources to
notify the California Water Commission regarding the method to be
used for selecting a design-build entry, prior to advertising a
design-build project.
The bill would make other conforming changes.
Existing law authorizes any public corporation, as defined, and
specified private corporations to apply for the privilege of
establishing, operating, and maintaining a foreign-trade zone in
accordance with federal law, and provides that any public or private
corporation whose application is granted pursuant to federal law is
authorized to establish, operate, and maintain a foreign-trade zone,
subject to specified conditions. Existing law also authorizes a
public corporation, if authorized to establish, operate, and maintain
a foreign trade zone, to provide the United States with indemnity or
assurance and to deposit sums of money with the United States as
requested.
This bill would combine and reorganize these provisions and would
repeal that indemnity and assurance provision.
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 13332.19 of the
Government Code is amended to read:
13332.19. (a) For the purposes of this section, the following
definitions shall apply:
(1) "Design-build" means a construction procurement process in
which both the design and construction of a project are procured from
a single entity.
(2) "Design-build project" means a capital outlay project using
the design-build construction procurement process.
(3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed.
(4) "Design-build solicitation package" means the performance
criteria, any concept drawings, the form of contract, and all other
documents and information that serve as the basis on which bids or
proposals will be solicited from the design-build entities.
(5) "Design-build phase" means the period following the award of a
contract to a design-build entity in which the design-build entity
completes the design and construction activities necessary to fully
complete the project in compliance with the terms of the contract.
(6) "Performance criteria" means the information that fully
describes the scope of the proposed project and includes, but is not
limited to, the size, type, and design character of the buildings and
site; the required form, fit, function, operational requirements,
and quality of design, materials, equipment, and workmanship; and any
other information deemed necessary to sufficiently describe the
state's needs. Performance criteria may include concept drawings,
which include any schematic drawings or architectural renderings that
are prepared in the detail necessary to sufficiently describe the
state's needs.
(b) (1) Except as otherwise specified in subparagraphs (A) to
(D), (E), inclusive, of paragraph (2)
funds appropriated for a design-build project shall not be expended
by any state agency, including, but not limited to, the University of
California, the California State University, the California
Community Colleges, and the Judicial Council, until the Department of
Finance and the State Public Works Board have approved performance
criteria.
(2) This section shall not apply to any of the following:
(A) Amounts for acquisition of real property, in fee or any lesser
interest.
(B) Amounts for equipment or minor capital outlay projects.
(C) Amounts appropriated for performance criteria.
(D) Amounts appropriated for preliminary plans, if the
appropriation was made prior to January 1, 2005.
(E) Amounts appropriated for projects at the Salton Sea.
(c) Any appropriated amounts for the design-build phase of a
design-build project, where funds have been expended on the
design-build phase by any state agency prior to the approval of the
performance criteria by the State Public Works Board, and all amounts
not approved by the board under this section shall be reverted to
the fund from which the appropriation was made. A design-build
project for which a capital outlay appropriation is made shall not be
put out to design-build solicitation until the bid package has been
approved by the Department of Finance. A substantial change shall not
be made to the performance criteria as approved by the board and the
Department of Finance without written approval by the Department of
Finance. The Department of Finance shall approve any proposed bid or
proposal alternates set forth in the design-build solicitation
package.
(d) The State Public Works Board may augment a design-build
project in an amount of up to 20 percent of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent permissible, the Department
of Finance shall have full authority to determine which of the fund
sources will bear all or part of an augmentation. The board shall
defer all augmentations in excess of 20 percent of the amount
appropriated for each design-build project until the Legislature
makes additional funds available for the specific project.
(e) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional amount
in Section 15849.6 to include a reasonable construction reserve
within the construction fund for any capital outlay project without
augmenting the project. The amount of the construction reserve shall
be within the 20 percent augmentation limitation. The board may use
this amount to augment the project, when and if necessary, after the
lease-revenue bonds are sold to ensure completion of the project.
(f) Any augmentation in excess of 10 percent of the amounts
appropriated for each design-build project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may in
each instance determine.
(g) (1) The Department of Finance may change the administratively
or legislatively approved scope for major design-build projects.
(2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative members of the State Public
Works Board 20 days prior to the proposed board action to recognize
the scope change.
(h) The Department of Finance shall report to the Chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and the legislative members of the
State Public Works Board 20 days prior to the proposed board approval
of performance criteria for any project when it is determined that
the estimated cost of the total design-build project is in excess of
20 percent of the amount recognized by the Legislature.
SEC. 2. Section 10187.5 of the Public
Contract Code is amended to read:
10187.5. For purposes of this article, the following definitions
and the definitions in subdivision (a) of Section 13332.19 of the
Government Code shall apply:
(a) "Best value" means a value determined by evaluation of
objective criteria that relate to price, features, functions,
life-cycle costs, experience, and past performance. A best value
determination may involve the selection of the lowest cost proposal
meeting the interests of the department and meeting the objectives of
the project, selection of the best proposal for a stipulated sum
established by the procuring agency, or a tradeoff between price and
other specified factors.
(b) "Construction subcontract" means each subcontract awarded by
the design-build entity to a subcontractor that will perform work or
labor or render service to the design-build entity in or about the
construction of the work or improvement, or a subcontractor licensed
by the State of California that, under subcontract to the
design-build entity, specially fabricates and installs a portion of
the work or improvement according to detailed drawings contained in
the plans and specifications produced by the design-build team.
(c) (1) "Department" means the Department of
General Services and the Department of Corrections and
Rehabilitation.
(2) For the purposes of projects at the Salton Sea, "department"
means the Department of Water Resources.
(d) "Design-build" means a project delivery process in which both
the design and construction of a project are procured from a single
entity.
(e) "Design-build entity" means a corporation, limited liability
company, partnership, joint venture, or other legal entity that is
able to provide appropriately licensed contracting, architectural,
and engineering services as needed pursuant to a design-build
contract.
(f) "Design-build team" means the design-build entity itself and
the individuals and other entities identified by the design-build
entity as members of its team. Members shall include the general
contractor and, if utilized in the design of the project, all
electrical, mechanical, and plumbing contractors.
(g) (1) "Director" means, with respect to
procurements undertaken by the Department of General Services, the
Director of General Services or, with respect to procurements
undertaken by the Department of Corrections and Rehabilitation, the
secretary of that department.
(2) For purposes of projects at the Salton Sea, "director" means
the Director of Water Resources.
SEC. 3. Section 10190 of the Public
Contract Code is amen ded to read:
10190. (a) The director shall notify the
State Public Works Board regarding the method to be used for
selecting the design-build entity, prior to advertising the
design-build project.
(b) Notwithstanding subdivision (a), for purposes of projects at
the Salton Sea, the Director of the Department of Water Resources
shall notify the California Water Commission regarding the method to
be used for selecting the design-build entry, prior to advertising
the design-build project.
SECTION 1. Section 6300 of the Government Code
is amended to read:
6300. The following definitions govern this chapter:
(a) "Act of Congress" means the act of Congress approved June 18,
1934, entitled "An act to provide for the establishment, operation,
and maintenance of foreign-trade zones in ports of entry of the
United States, to expedite and encourage foreign commerce, and for
other purposes" (Public Law 73-397; 48 Stat. 998).
(b) "Public corporation" means the state, any political
subdivision thereof, any incorporated municipality therein, any
public agency of the state, of any political subdivision thereof, or
of any municipality therein, or any corporate municipal
instrumentality of this state or of this state and one or more other
states.
(c) "Private corporation" means an entity organized under the laws
of the state subsequent to September 15, 1935, for the purpose of
establishing, operating, and maintaining a foreign-trade zone in
accordance with the Act of Congress.
SEC. 2. Section 6301 of the Government Code is
repealed.
SEC. 3. Section 6302 of the Government Code is
amended to read:
6302. (a) Any public corporation may apply for the privilege of
establishing, operating, and maintaining a foreign-trade zone in
accordance with the act of Congress.
(b) Any private corporation may apply for the privilege of
establishing, operating, and maintaining a foreign-trade zone in
accordance with the act of Congress.
SEC. 4. Section 6303 of the Government Code is
repealed.
SEC. 5. Section 6304 of the Government Code is
amended to read:
6304. Any public or private corporation authorized by this
chapter to make an application and whose application is granted
pursuant to the terms of the act of Congress may establish, operate,
and maintain the foreign-trade zone:
(a) Subject to the conditions and restrictions of the act of
Congress, and any amendments thereto.
(b) Under such rules and regulations and for the period of time
that may be prescribed by the board established by the act of
Congress to carry out the act.
SEC. 6. Section 6305 of the Government Code is
repealed.
