Bill Text: CA AB1581 | 2013-2014 | Regular Session | Chaptered
Bill Title: School facilities: construction contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-18 - Chaptered by Secretary of State - Chapter 408, Statutes of 2014. [AB1581 Detail]
Download: California-2013-AB1581-Chaptered.html
BILL NUMBER: AB 1581 CHAPTERED
BILL TEXT
CHAPTER 408
FILED WITH SECRETARY OF STATE SEPTEMBER 18, 2014
APPROVED BY GOVERNOR SEPTEMBER 18, 2014
PASSED THE SENATE AUGUST 20, 2014
PASSED THE ASSEMBLY MAY 28, 2014
AMENDED IN ASSEMBLY APRIL 10, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Buchanan
FEBRUARY 3, 2014
An act to amend, repeal, and add Sections 17406 and 17407 of the
Education Code, and to amend Section 20111.6 of the Public Contract
Code, relating to school facilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1581, Buchanan. School facilities: construction contracts.
Existing law requires, until January 1, 2019, the governing board
of a school district that enters into a contract for a public
project, as defined, for which the board uses moneys received
pursuant to the Leroy F. Greene School Facilities Act of 1998 or
moneys from future state school bonds for a public project that
involves a projected expenditure of $1,000,000 or more, to require
prospective bidders for a construction contract to complete and
submit a standardized prequalification questionnaire and financial
statement. Existing law requires the questionnaire and statement to
be verified under oath by the bidder and for the district to adopt
and apply a uniform system of rating bidders on the basis of the
questionnaire and statement.
Existing law authorizes the governing board to lease real property
for a minimum rental of $1 per year if the instrument by which this
property is leased requires the lessee to construct or provide for
the construction of a building to be used by the district.
Existing law also authorizes the governing board to enter into an
agreement with the lowest responsible bidder to construct, or provide
for the construction of, a building to be leased and used by the
district upon a designated site. Existing law requires the instrument
to provide that the title to the building and site to vest in the
district at the end of the lease.
This bill would, until January 1, 2019, require the lease
instrument and the agreement with the lowest responsible bidder to
include a requirement for the person, firm, or corporation that
constructs a building to be leased and used by the school district
upon a designated site, including, but not limited to, the prime
contractor and, if used, electrical, mechanical, and plumbing
subcontractors, to comply with the above-described prequalification
questionnaire and financial statement requirements when the agreement
is for a public project using moneys received pursuant to the Leroy
F. Greene School Facilities Act of 1998 or moneys from future state
school bonds that involves a projected expenditure of $1,000,000 or
more. By requiring additional persons to complete a questionnaire and
statement that is verified under oath and increasing the duties of
local officials, the bill would impose a state-mandated local
program.
The bill would also, among other things, require the governing
board to establish a process to prequalify a person, firm, or
corporation, including, but not limited to, the prime contractor and,
if used, an electrical, mechanical, and plumbing subcontractor, to
construct the leased building on a quarterly or annual basis, which
would be valid for one calendar year following the date of the
initial prequalification.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17406 of the Education Code is amended to read:
17406. (a) (1) Notwithstanding Section 17417, the governing board
of a school district, without advertising for bids, may let, for a
minimum rental of one dollar ($1) a year, to any person, firm, or
corporation any real property that belongs to the district if the
instrument by which this property is let requires the lessee therein
to construct on the demised premises, or provide for the construction
thereon of, a building or buildings for the use of the school
district during the term of the lease, and provides that title to
that building shall vest in the school district at the expiration of
that term. The instrument may provide for the means or methods by
which that title shall vest in the school district prior to the
expiration of that term, and shall contain other terms and conditions
as the governing board may deem to be in the best interest of the
school district.
(2) If the instrument meets the criteria of subdivision (a) of
Section 20111.6 of the Public Contract Code, the instrument shall
also require that a person, firm, or corporation that constructs the
building, including, but not limited to, the prime contractor and, if
used, electrical, mechanical, and plumbing subcontractor, shall be
subject to the same prequalification requirements for prospective
bidders described in Section 20111.6 of the Public Contract Code,
including the requirement for the completion and submission of a
standardized prequalification questionnaire and financial statement
that is verified under oath and is not a public record.
(b) Any rental of property that complies with subdivision (a) as
it reads on the day that the lease is entered into shall be deemed to
have thereby required the payment of adequate consideration for
purposes of Section 6 of Article XVI of the California Constitution.
(c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 2. Section 17406 is added to the Education Code, to read:
17406. (a) Notwithstanding Section 17417, the governing board of
a school district, without advertising for bids, may let, for a
minimum rental of one dollar ($1) a year, to any person, firm, or
corporation any real property that belongs to the district if the
instrument by which this property is let requires the lessee to
construct on the demised premises, or provide for the construction
thereon of, a building or buildings for the use of the school
district during the term of the lease, and provides that title to
that building shall vest in the school district at the expiration of
that term. The instrument may provide for the means or methods by
which that title shall vest in the school district prior to the
expiration of that term, and shall contain other terms and conditions
as the governing board may deem to be in the best interest of the
school district.
(b) Any rental of property that complies with subdivision (a)
shall be deemed to have thereby required the payment of adequate
consideration for purposes of Section 6 of Article XVI of the
California Constitution.
(c) This section shall become operative on January 1, 2019.
SEC. 3. Section 17407 of the Education Code is amended to read:
17407. (a) The governing board of any school district may enter
into an agreement with any person, firm, or corporation under which
that person, firm, or corporation shall construct, or provide for the
construction of, a building to be used by the district upon a
designated site and lease the building and site to the district. The
instrument shall provide that the title to the building and site
shall vest in the district at the expiration of the lease, and may
provide the means or method by which the title to the building and
site shall vest in the district prior to the expiration of the lease,
and shall contain other terms and conditions as the governing board
of the district deems to be in the best interest of the district.
(b) The agreement entered into shall be with the lowest
responsible bidder who shall give the security that any board
requires. The board may reject all bids. For the purpose of securing
bids the board shall publish at least once a week for two weeks in
some newspaper of general circulation published in the district, or
if there is no paper, then in some paper of general circulation
circulated in the county, a notice calling for bids, stating the
proposed terms of the agreement and the time and place where bids
will be opened.
(c) If the agreement meets the criteria of subdivision (a) of
Section 20111.6 of the Public Contract Code, the agreement shall also
require that a person, firm, or corporation that constructs the
building, including, but not limited to, the prime contractor and, if
used, electrical, mechanical, and plumbing subcontractor, under this
section shall be subject to the same prequalification requirements
for prospective bidders described in Section 20111.6 of the Public
Contract Code, including the requirement for the completion and
submission of a standardized prequalification questionnaire and
financial statement that is verified under oath and is not a public
record.
(d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 4. Section 17407 is added to the Education Code, to read:
17407. (a) The governing board of any school district may enter
into an agreement with any person, firm, or corporation under which
that person, firm, or corporation shall construct, or provide for the
construction of, a building to be used by the district upon a
designated site and lease the building and site to the district. The
instrument shall provide that the title to the building and site
shall vest in the district at the expiration of the lease, and may
provide the means or method by which the title to the building and
site shall vest in the district prior to the expiration of the lease,
and shall contain other terms and conditions as the governing board
of the district deems to be in the best interest of the district.
(b) The agreement entered into shall be with the lowest
responsible bidder who shall give the security that any board
requires. The board may reject all bids. For the purpose of securing
bids the board shall publish at least once a week for two weeks in
some newspaper of general circulation published in the district, or
if there is no paper, then in some paper of general circulation
circulated in the county, a notice calling for bids, stating the
proposed terms of the agreement and the time and place where bids
will be opened.
(c) This section shall become operative on January 1, 2019.
SEC. 5. Section 20111.6 of the Public Contract Code is amended 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 enters into a contract
meeting the criteria of subdivision (a), then the governing board of
the district shall 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. This system shall also apply to a person,
firm, or corporation that constructs a building described in Section
17406 or 17407 of the Education Code.
(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. The district may require the completed questionnaire and
financial statement for prequalification to be submitted more than 10
business days prior to the fixed date for the public opening of
sealed bids. The district may also require the prequalification more
than five business days prior to the fixed date.
(g) (1) 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.
(2) The board shall establish a process to prequalify a person,
firm, or corporation, including, but not limited to, the prime
contractor and, if used, an electrical, mechanical, and plumbing
subcontractor, to construct a building described in Section 17406 or
17407 of the Education Code on a quarterly or annual basis. 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 of any
specialty classification described in Section 7058 of the Business
and Professions Code.
(i) For purposes of this section, bidders shall include both of
the following:
(1) A prime contractor, as defined in Section 4113, that is either
of the following:
(A) A general engineering contractor described in Section 7056 of
the Business and Professions Code.
(B) A general building contractor described in Section 7057 of the
Business and Professions Code.
(2) If utilized, each electrical, mechanical, and plumbing
contractor, whether as a prime contractor or as a subcontractor, as
defined in Section 4113.
(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 general contractors and electrical, mechanical, and
plumbing subcontractors shall be made available by the school
district to all bidders at least five business days prior to the
dates fixed for the public opening of sealed bids. The district may
require the list to be made available more than five business days
prior to the fixed dates for the public opening of sealed bids.
(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' State
License Board.
(l) This section shall not apply to a school district with an
average daily attendance of less than 2,500.
(m) (1) This section shall apply only to contracts awarded on or
after January 1, 2014.
(2) The amendments made to this section by the act adding this
paragraph shall apply only to contracts awarded on or after January
1, 2015.
(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.
(o) This section shall become inoperative on January 1, 2019, and,
as of July 1, 2019, is repealed.
SEC. 6. 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.
