Bill Text: CA SB458 | 2023-2024 | Regular Session | Amended


Bill Title: Public contracts: Local Agency Public Construction Act: reporting and notifications.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2024-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB458 Detail]

Download: California-2023-SB458-Amended.html

Amended  IN  Senate  March 22, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 458


Introduced by Senator Gonzalez

February 13, 2023


An act to amend Sections 20125, 20150.7, and 20169 of, and to add Article 1.9 (commencing with Section 20104.90) to Chapter 1 of Part 3 of Division 2 of, the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


SB 458, as amended, Gonzalez. Public contracts: Local Agency Public Construction Act. Act: reporting and notifications.

The

Existing law, the Local Agency Public Construction Act Act, sets forth the requirements for competitive bidding on various types of contracts awarded by local agencies.

This bill would state the intent of the Legislature to enact legislation that would amend that act.

Existing law, the State Contract Act, requires the Department of General Services to make available a report on state contracting activity containing specified information.
This bill would require a local public entity subject to the Local Agency Public Construction Act, commencing January 1, 2026, to maintain and regularly update a public online database and accompanying data dictionary with prescribed information on the entity’s contracting activity similar to the information required for the State Contract Act report. The bill would require the State Auditor to review the databases established pursuant to the bill, commencing on an unspecified date, and biannually thereafter, and make recommendations to the Legislature on further transparency and reporting improvements.
The Local Agency Public Construction Act requires the board of supervisors of a county to advertise for bids for the performance of work by publication in a daily newspaper or in a weekly newspaper of general circulation published in the county, as prescribed.
This bill would require publication, at a minimum, as described above and online.
The Local Agency Public Construction Act prescribes bidding procedures that govern contracts by counties with a population of 500,000 or less, including procedures for informal bidding. Those informal bidding procedures include a requirement that notice inviting informal bids be published, mailed, or posted, as prescribed. Those informal bidding procedures also authorize additional modes of notice.
This bill would require publication, at a minimum, as described above for counties with a population of 500,000 or less and online.
The Local Agency Public Construction Act prescribes bidding procedures for contracts awarded by cities, including a requirement that the first publication or posting of the notice inviting bids be published in a newspaper or posted, as prescribed unless there is only one available newspaper, in which case the act authorizes the legislative body to contract without advertising for bids.
This bill would delete that exception and would require those cities to also publish the notice online.
By requiring additional duties of local public entities, the bill would create 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 Article 1.9 (commencing with Section 20104.90) is added to Chapter 1 of Part 3 of Division 2 of the Public Contract Code, to read:
Article  1.9. Online Reporting

20104.90.
 Commencing January 1, 2026, a local public entity subject to this part shall maintain and regularly update a public online database and accompanying data dictionary. The database shall comply with all of the following requirements:
(a) The database shall be easily accessible, machine readable, and searchable via open data format, and shall be published under an open license. All of the data shall be downloadable in a bulk download format.
(b) The database shall contain a listing of contracts that the entity has entered into during the previous fiscal year. The listing shall include the following as unique data fields:
(1) The name and identification number of each contractor.
(2) The type of bidding entered into, the number of bidders, whether the low bidder was accepted, and if the low bidder was not accepted, an explanation of why another contractor was selected.
(3) The amount of the contract price.
(4) Information on the procurement method, including whether the contract was a noncompetitive bid contract, and why the contract was a noncompetitive bid contract.
(5) Justification for entering into each consulting services contract.
(6) The award description, including the following:
(A) Quantity and pricing of the good or service.
(B) Description in detail of the good or service, including any unique project identifier number and a description of what the good or service is to be used for.
(C) Plain language descriptions.
(7) The date when the initial contract was signed, and the date when the work began and was completed.
(c) The database shall include a separate listing of contracts completed during the previous fiscal year, with the same information specified in subdivision (b).
(d) The database shall include a separate listing of any contracts underway during the previous fiscal year on which a change was made regarding any of the following:
(1) The completion date of the contract.
(2) The amount of money to be received by the contractor, if it exceeds 3 percent of the original contract price.
(3) The purpose of the contract or duties of the contractor. A brief explanation shall be given if the change in purpose is significant.
(e) (1) The database shall include the information described in paragraph (2) for contracts in the following categories:
(A) Construction.
(B) Architectural, engineering, and other professional services.
(C) Procurement of materials, supplies, and equipment.
(D) Information technology procurements.
(2) For contracts described in paragraph (1), the database shall include the following information, to the extent that the information has been voluntarily reported to the entity:
(A) The levels of participation in the entity’s contracts by business enterprises by race, ethnicity, and gender of the owner.
(B) Whether a business awarded a contract is owned by a lesbian, gay, bisexual, or transgender person.

20104.91.
 The State Auditor shall review the databases established pursuant to this article, commencing ____, and biannually thereafter, and make recommendations to the Legislature on further transparency and reporting improvements.

SEC. 2.

 Section 20125 of the Public Contract Code is amended to read:

20125.
 The board shall cause an advertisement for bids for the performance of the work to be published pursuant to Section 6062 of the Government Code Code, at a minimum, online and in a daily newspaper, or pursuant to Section 6066 of the Government Code in a weekly newspaper, of general circulation published in the county. If there is no such newspaper published in the county, the notice shall be given by posting in three public places for at least two weeks.

SEC. 3.

 Section 20150.7 of the Public Contract Code is amended to read:

20150.7.
 (a) The notice inviting informal bids shall be by published notice and may, and, in addition, may be supplemented by mailed notice to contractors registered pursuant to Section 20150.6. The county may cause the notice to be printed as display advertising in such the form and style as it deems appropriate. The notice shall describe in general terms the project to be done and state a closing date for submission of such those informal bids. Publication of notice pursuant to this section shall be in a physical newspaper of general circulation printed and published within the jurisdiction of the county, or, if there is no such newspaper within the jurisdiction of the county, publication shall be made in a physical newspaper of general circulation which that is circulated in the jurisdiction of the county, or, if there is no such publication, the notice shall be posted in at least three public places within the jurisdiction of the county as have been designated by ordinance or regulation of such the county as places for the posting of its notices. Notice shall be published in accordance with Section 6061 of the Government Code and shall be completed at least 24 hours before the time scheduled for opening of the bids.
(b) The notice shall also be published online.

In

(c) In addition to notice published published, at a minimum, in a physical newspaper of general circulation, mailed, or posted, pursuant to this section, and online, the county may also publish notice inviting bids in a trade publication.

SEC. 4.

 Section 20169 of the Public Contract Code is amended to read:

20169.
  (a)  Annually before the beginning of the fiscal year, in cities where there is more than one newspaper of general circulation printed and published, the legislative body shall publish a notice inviting bids and contract for the publication of legal notices required to be published in such a newspaper. The contract shall include the printing and publishing of all such legal notices during the fiscal year.

If there is only one such newspaper, the legislative body may contract with it without advertising for bids.

(b) The legislative body shall also publish the notice online.

SEC. 5.

  If the Commission on State Mandates determines that this act contains 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.

SEC. 6.

 The Legislature finds and declares that Sections 1 to 4, inclusive, of this act amending Sections 20125, 20150.7, and 20169 of, and adding Article 1.9 (commencing with Section 20104.90) to Chapter 1 of Part 3 of Division 2 of, the Public Contract Code address a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 to 4, inclusive, of this act apply to all cities, including charter cities.
SECTION 1.

It is the intent of the Legislature to enact legislation that would amend the Local Agency Public Construction Act.

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