CASH Legislative Update – April 2020
In response to COVID-19 and the statewide stay-at-home order, the Legislature is in recess until at least May 4. They are evaluating options for enforcing social distancing for committee hearings and floor sessions upon their return. Work continues on bills that were introduced this year; however, we face significant uncertainty when the Legislature reconvenes. We are hearing that legislators may face stricter caps on the number of bills they may author, possibly as few as five bills. We are also hearing that they may be asked to author only those bills that address the most critical state priorities, including the COVID-19 crisis, disaster emergency response, homelessness and affordable housing, and sunset extensions.
Some authors have already pulled their bills from consideration this year so that they can focus on the top priorities. Below is an update on a selection of bills. We do not know if these bills will meet the topic threshold to be considered in 2020, unless otherwise noted. Click the bill number to view the full text of the bill.
AB 2088 (O’Donnell) retires the use of the number “13” for naming statewide ballot measures. CASH supports this bill, due to the confusion that the number may cause for voters.
AB 2186 (Grayson) eliminates the requirement for local agencies, including schools, to withhold a minimum of 5% of the contract price for retention. CASH has taken an oppose position on this bill, as the mandatory retention is an important tool used to protect public funds in the event of performance issues. Additionally, we are concerned that this bill would negatively impact a school district’s ability to withhold additional retention amounts for substantially complex projects. The author has pulled this bill from consideration and it will not move forward in 2020.
AB 2184 (O’Donnell) provides an additional option for K-12 projects using the Design-Build delivery method. CASH has taken a support position on this bill. AB 2184 allows Design-Build projects to use additional minimum factors in their best value selection criteria (design cost, general conditions, overhead, and profit as a component of project price). Under this option, subcontracts would be subject to an “open book” evaluation by the school district, providing additional flexibility to determine the project’s final contract price closer to construction.
AB 2987 (Flora) provides an option to noticing requirements for CUPCCAA projects. Current law requires local agencies, including schools, to provide notice of CUPCCAA formal bid projects over $200,000 in a newspaper of general circulation at least 14 days before the date of bid opening. This bill would allow a local agency to publish this notice inviting formal bids electronically on its website at least 14 days before bid opening, in lieu of the newspaper notice requirement. If the agency chooses this option, it is still required to notify construction trade journals at least 15 days in advance of the bid opening. CASH has taken a support position on this bill, which could serve as a pilot project for possibly expanding the option beyond CUPCCAA projects in the future.
CASH Legislative Advocate