Bill Text: CA SB969 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public works.

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Vetoed) 2014-09-30 - In Senate. Consideration of Governor's veto pending. [SB969 Detail]

Download: California-2013-SB969-Amended.html

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BILL NUMBER: SB 969	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 5, 2014

INTRODUCED BY   Senator DeSaulnier
    (   Coauthors:   Senators   Beall,
  Gaines,   and Galgiani   ) 

                        FEBRUARY 10, 2014

   An act to amend Sections 8847 and 8847.1 of, to amend the heading
of Chapter 11 (commencing with Section 8847) of Division 1 of Title 2
of, and to add Sections 8849 and 8850 to, the Government Code,
relating to public works.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 969, as amended, DeSaulnier. Public works.
   Existing law generally defines "public work" as construction,
alteration, demolition, installation, or repair work done under
contract and paid for in whole or in part out of public funds; work
done for irrigation, utility, reclamation, and improvement districts,
and other districts of this type; street, sewer, or other
improvement work done under the direction and supervision or by the
authority of any officer or public body of the state or of any
political subdivision or district thereof, and public transportation
demonstration projects, as specified. Existing law, the Public Works
Project Peer Review Act of 2013, authorizes a public agency
principally tasked with administering, planning, developing, and
operating a public works project to establish a peer review group, as
defined. If a peer review group is established, existing law
requires the administering agency to draft a charter, published on
the agency's Internet Web site, related to the duties of the peer
review group.
   This bill would authorize these provisions, instead, to be known
and cited as the Public Works Project  Overview 
 Oversight  Improvement Act. The bill would define a
"megaproject" as a transportation project with total estimated
development and construction costs exceeding $1,000,000,000. The bill
would require the agency administering a megaproject to establish a
peer review group and to take specified actions to manage the risks
associated with a megaproject including establishing a comprehensive
risk management plan, and regularly reassessing its reserves for
potential claims and unknown risks. Because this bill would require
local agencies to perform additional duties, the 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, 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 these
statutory provisions.
   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.  The heading of Chapter 11 (commencing with Section
8847) of Division 1 of Title 2 of the Government Code is amended to
read:
      CHAPTER 11.  THE PUBLIC WORKS PROJECT  OVERVIEW
  OVERSIGHT  IMPROVEMENT ACT


  SEC. 2.  Section 8847 of the Government Code is amended to read:
   8847.  This chapter shall be known and may be cited as the Public
Works Project  Overview   Oversight 
Improvement Act.
  SEC. 3.  Section 8847.1 of the Government Code is amended to read:
   8847.1.  For purposes of this chapter, the following terms have
the following meanings, unless expressly stated otherwise:
   (a) "Administering agency" means a public agency principally
tasked with administering, planning, developing, and operating a
public works project.
   (b) "Megaproject" means a transportation project with total
estimated development and construction costs exceeding one billion
dollars ($1,000,000,000).
   (c) "Peer review group" means a group of persons qualified by
training and experience in particular scientific or technical fields
related to the public works project under review, who give expert
advice on the scientific and technical aspects of the public works
project.
  SEC. 4.  Section 8849 is added to the Government Code, to read:
   8849.  To ensure that an administering agency manages the risks
associated with a megaproject, the agency shall, at a minimum, take
all of the following actions:
   (a) Establish a comprehensive risk management plan that clearly
defines roles and responsibilities for risk management and addresses
the process by which it will identify and quantify project risks,
implement and track risk response activities, and monitor and control
risks throughout the duration of the project.
   (b) Qualify the effect of identified risks in financial terms.
   (c) Develop and maintain documents to track identified risks and
related mitigation steps.
   (d) Regularly update its estimates of  capitol 
 capital  and  capitol  capital 
outlay support costs.
   (e) Regularly reassess its reserves for potential claims and
unknown risks, incorporating information related to risks identified
and quantified through its risk assessment process.
   (f) Regularly integrate estimates for capital, capital outlay
support costs, and contingency reserves into a programwide report.
  SEC. 5.  Section 8850 is added to the Government Code, to read:
   8850.  (a) In the case of a megaproject, an administering agency
shall establish a peer review group for the purpose of reviewing the
planning, engineering, financing, and other elements of the agency's
plans and issuing an analysis to the agency's governing board, or in
the case of a state agency, to the Legislature.
   (b) The administering agency shall provide the peer review group
any and all information that the peer review group may request to
carry out its responsibilities.
   (c) This section does not apply to any peer review group created
on or before January 1, 2014, by another provision of law.
  SEC. 6.  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.