as amended, Frazier.
begin deleteCalifornia State University Contract Law. end delete
The existing California State University Contract Law sets forth a process through which contracts for projects, as defined, that are entered into with respect to the California State University may be competitively bid, entered into, and executed.end delete
This bill would make nonsubstantive changes to these provisions.end delete
begin deleteno end delete.
State-mandated local program: begin deleteno end delete.
The people of the State of California do enact as follows:
(a) Except as provided in Section 20111.5, a public
4entity subject to this part may require that each prospective bidder
5for a contract complete and submit to the entity a standardized
6questionnaire and financial statement in a form specified by the
7entity, including a complete statement of the prospective bidder’s
8experience in performing public works. The standardized
9questionnaire may not require prospective bidders to disclose any
10violations of Chapter 1 (commencing with Section 1720) of Part
117 of Division 2 of the Labor Code committed prior to January 1,
121998, if a violation was based on a subcontractor’s failure to
13comply with these provisions and the bidder had no knowledge of
14the subcontractor’s violations. The Department of Industrial
15Relations, in collaboration with affected agencies and interested
16parties, shall develop model guidelines for rating bidders, and draft
17the standardized questionnaire, that may be used by public entities
P3 1for the purposes of this part. The Department of Industrial
2Relations, in developing the standardized questionnaire, shall
3consult with affected public agencies, cities and counties, the
4construction industry, the surety industry, and other interested
5parties. The questionnaire and financial statement shall be verified
6under oath by the bidder in the manner in which civil pleadings in
7civil actions are verified. The questionnaires and financial
8statements shall not be public records and shall not be open to
9public inspection; however, records of the names of contractors
10applying for prequalification status shall be public records subject
11to disclosure under Chapter 3.5 (commencing with Section 6250)
12of Division 7 of Title 1 of the Government Code.
13(b) Any public entity requiring
prospective bidders to complete
14and submit questionnaires and financial statements, as described
15in subdivision (a), shall adopt and apply a uniform system of rating
16bidders on the basis of the completed questionnaires and financial
17statements, in order to determine both the minimum requirements
18permitted for qualification to bid, and the type and size of the
19contracts upon which each bidder shall be deemed qualified to bid.
20The uniform system of rating prospective bidders shall be based
21on objective criteria.
22(c) A public entity may establish a process for prequalifying
23prospective bidders pursuant to this section on a quarterly basis
24and a prequalification pursuant to this process shall be valid for
25one calendar year following the date of initial prequalification.
26(d) Any public entity requiring prospective bidders on a public
27works project to prequalify pursuant to this section shall establish
28a process that will allow prospective bidders to dispute their
29proposed prequalification rating prior to the closing time for receipt
30of bids. The appeal process shall include the following:
31(1) Upon request of the prospective bidder, the public entity
32shall provide notification to the prospective bidder in writing of
33the basis for the prospective bidder’s disqualification and any
34supporting evidence that has been received from others or adduced
35as a result of an investigation by the public entity.
36(2) The prospective bidder shall be given the opportunity to
37rebut any evidence used as a basis for disqualification and to
38present evidence to the public entity as to why the prospective
39bidder should be found qualified.
P4 1(3) If the prospective bidder chooses not to avail itself of this
2process, the proposed prequalification rating may be adopted
3without further proceedings.
4(e) For the purposes of subdivision (a), a financial statement
5shall not be required from a contractor who has qualified as a Small
6Business Administration entity pursuant to paragraph (1) of
7subdivision (d) of Section 14837 of the Government Code, when
8the bid is no more than 25 percent of the qualifying amount
9provided in paragraph (1) of subdivision (d) of Section 14837 of
10the Government Code.
11(f) Nothing in this section shall preclude an awarding agency
12from prequalifying or disqualifying a subcontractor. The
13disqualification of a subcontractor by an awarding agency does
14not disqualify an otherwise prequalified contractor.
(a) The governing board of the district may require
36that each prospective bidder for a contract, as described under
37Section 20111, complete and submit to the district a standardized
38questionnaire and financial statement in a form specified by the
39district, including a complete statement of the prospective bidder’s
40financial ability and experience in performing public works. The
P5 1questionnaire and financial statement shall be verified under oath
2by the bidder in the manner in which civil pleadings in civil actions
3are verified. The questionnaires and financial statements shall not
4be public records and shall not be open to public inspection.
5(b) Any school district requiring prospective bidders to complete
6and submit questionnaires and financial statements, as described
7in subdivision (a), shall adopt and apply a uniform system of rating
8bidders on the basis of the completed questionnaires and financial
9statements, in order to determine the size of the contracts upon
10which each bidder shall be deemed qualified to bid.
11(c) Each prospective bidder on any contract described under
12Section 20111 shall be furnished by the school district letting the
13contract with a standardized proposal form that, when completed
14and executed, shall be submitted as his or her bid. Bids not
15presented on the forms so furnished shall be disregarded.
16(d) A proposal form required pursuant to subdivision (c) shall
17not be accepted from any person or other entity who is required
18to submit a completed questionnaire and financial statement for
19prequalification pursuant to subdivision (a), but has not done so
20at least five days prior to the date fixed for the public opening of
21sealed bids or has not been prequalified, pursuant to subdivision
22(b), for at least one day prior to that date.
23(e) Notwithstanding subdivision (d), any school district may
24establish a process for prequalifying prospective bidders pursuant
25to this section on a quarterly basis and may authorize that
26prequalification to be considered valid for up to one calendar year
27following the date of initial prequalification.
(a) This section shall apply only to public projects,
10as defined in subdivision (c) of Section 22002, for which the
11governing board of the district uses funds received pursuant to the
12Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
13(commencing with Section 17070.10) of Part 10 of Division 1 of
14Title 1 of the Education Code) or any funds from any future state
15school bond for a public project that involves a projected
16expenditure of one million dollars ($1,000,000) or more.
17(b) If the governing board of the district enters into a contract
18meeting the criteria of subdivision (a), then the governing board
19of the district shall require that prospective bidders for a
20construction contract complete and submit to the board of the
21district a standardized prequalification questionnaire and financial
22statement. The questionnaire and financial statement shall be
23verified under oath by the bidder in the manner in which civil
24pleadings in civil actions are verified. The questionnaires and
25financial statements shall not be public records and shall not be
26open to public inspection.
27(c) The board of the district shall adopt and apply a uniform
28system of rating bidders on the basis of the completed
29questionnaires and financial statements. This system shall also
30apply to a person, firm, or corporation that constructs a building
31described in Section 17406 or 17407 of the Education Code.
32(d) The questionnaire and financial statement described in
33subdivision (b), and the uniform system of rating bidders described
34in subdivision (c), shall cover, at a minimum, the issues covered
35by the standardized questionnaire and model guidelines for rating
36 bidders developed by the Department of Industrial Relations
37pursuant to subdivision (a) of Section 20101.
38(e) Each prospective bidder shall be furnished by the school
39district letting the contract with a standardized proposal form that,
P7 1when completed and executed, shall be submitted as his or her bid.
2Bids not presented on the forms so furnished shall be disregarded.
3(f) A proposal form required pursuant to subdivision (e) shall
4not be accepted from any person or other entity that is required to
5submit a completed questionnaire and financial statement for
6prequalification pursuant to subdivision (b) or from any person or
7other entity that uses a subcontractor that is required to submit a
8completed questionnaire and financial statement for
9prequalification pursuant to subdivision (b), but has not done so
10at least 10 business days prior to the date fixed for the public
11opening of sealed bids or has not been prequalified for at least five
12business days prior to that date. The district may require the
13completed questionnaire and financial statement for
14prequalification to be submitted more than 10 business days prior
15to the fixed date for the public opening of sealed bids. The district
16may also require the prequalification more than five business days
17prior to the fixed date.
18(g) (1) The board of the district may establish a process for
19prequalifying prospective bidders pursuant to this section on a
20quarterly or annual basis and a prequalification pursuant to this
21process shall be valid for one calendar year following the date of
23(2) The board shall establish a process to prequalify a person,
24firm, or corporation, including, but not limited to, the prime
25contractor and, if used, an electrical, mechanical, and plumbing
26subcontractor, to construct a building described in Section 17406
27or 17407 of the Education Code on a quarterly or annual basis. A
28prequalification pursuant to this process shall be valid for one
29calendar year following the date of initial prequalification.
30(h) This section shall not preclude the governing board of the
31district from prequalifying or disqualifying a subcontractor of any
32specialty classification described in Section 7058 of the Business
33and Professions Code.
34(i) For purposes of this section, bidders shall include both of
36(1) A prime contractor, as defined in Section 4113, that is either
37of the following:
38(A) A general engineering contractor described in Section 7056
39of the Business and Professions Code.
P8 1(B) A general building contractor described in Section 7057 of
2the Business and Professions Code.
3(2) If utilized, each electrical, mechanical, and plumbing
4contractor, whether as a prime contractor or as a subcontractor, as
5defined in Section 4113.
6(j) If a public project covered by this section includes electrical,
7mechanical, or plumbing components that will be performed by
8electrical, mechanical, or plumbing contractors, a list of
9prequalified general contractors and electrical, mechanical, and
10plumbing subcontractors shall be made available by the school
11district to all bidders at least five business days prior to the dates
12fixed for the public opening of sealed bids. The district may require
13the list to be made available more than five business days prior to
14the fixed dates for the public opening of sealed bids.
15(k) For purposes of this section, electrical, mechanical, and
16plumbing subcontractors are contractors licensed pursuant to
17Section 7058 of the Business and Professions Code, specifically
18contractors holding C-4, C-7, C-10, C-16, C-20, C-34, C-36, C-38,
19C-42, C-43, and C-46 licenses, pursuant to regulations of the
20Contractors’ State License Board.
21(l) This section shall not apply to a school district with an
22average daily attendance of less than 2,500.
P9 1(m)end delete
2 (1) This section shall apply only to contracts awarded on
3or after January 1, 2014.
4(2) The amendments made to this section by the act adding this
5paragraph shall apply only to contracts awarded on or after January
8 (1) On or before January 1, 2018, the Director of Industrial
9Relations shall (A) submit a report to the Legislature evaluating
10whether, during the years this section has applied to contracts,
11violations of the Labor Code on school district projects have
12decreased as compared to the same number of years immediately
13preceding the enactment of this section, and (B) recommend
14improvements to the system for prequalifying contractors and
15subcontractors on school district projects.
16(2) A report to be submitted pursuant to this subdivision shall
17be submitted in compliance with Section 9795 of the Government
20 This section shall become inoperative on January 1, 2019,
21and, as of July 1, 2019, is repealed.
Section 10701 of the Public Contract Code is
28amended to read:
As used in this chapter:
30(a) “Project” includes the erection, construction, alteration,
31painting, repair, or improvement of a state structure, building, road,
32or other state improvement of any kind. “Project” includes a project
33located on California State University property and performed
34pursuant to a contract entered into or awarded by an auxiliary
35organization, as defined in Section 89901 of the Education Code,
36and funded in whole or in part by public funds.
37(b) “Service contract” means
a contract for services in
38connection with a project other than a project contract, and
39includes, but is not limited to, contracts for architectural,
P10 1engineering, planning, testing, general studies, or feasibility
3(c) “Trustees” means the Trustees of the California State
4University and their designees.