AB 1019: California Uniform Construction Cost Accounting Commission.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-09-13
Existing law establishes the California Uniform Construction Cost Accounting Commission and requires the commission to recommend for adoption by the Controller uniform construction cost accounting procedures for implementation by public agencies in the performance of, or in contracting for, construction on public projects and cost accounting procedures designed especially for implementation by California cities with populations of less than 75,000. Existing law requires the Controller to make available for the conduct of the commissions business, staff and other support as does not conflict with the accomplishment of the other business of the office of the Controller.
This bill would remove the requirement that the staff and other support made available by the Controller not conflict with the accomplishment of the other business of the office of the Controller.
Existing law establishes the California Uniform Construction Cost Accounting Commission and requires the commission to recommend for adoption by the Controller uniform construction cost accounting procedures for implementation by public agencies in the performance of, or in contracting for, construction on public projects and cost accounting procedures designed especially for implementation by California cities with populations of less than 75,000. Existing law authorizes the commission to accept grants in order to assist the commission in carrying out its duties, functions, and powers. requires the Controller to make available for the conduct of the commissions business, staff and other support as does not conflict with the accomplishment of the other business of the office of the Controller.
This bill would make nonsubstantive changes to the provision authorizing the commission to accept grants. remove the requirement that the staff and other support made available by the Controller not conflict with the accomplishment of the other business of the office of the Controller.
Existing law establishes the California Uniform Construction Cost Accounting Commission and requires the commission to recommend for adoption by the Controller uniform construction cost accounting procedures for implementation by public agencies in the performance of, or in contracting for, construction on public projects and cost accounting procedures designed especially for implementation by California cities with populations of less than 75,000. Existing law authorizes the commission to accept grants in order to assist the commission in carrying out its duties, functions, and powers.
This bill would make nonsubstantive changes to the provision authorizing the commission to accept grants.
(a)The Controller shall make available for the conduct of the commissions business, staff and other support.
(b)Each member of the commission shall serve without compensation, but shall be reimbursed for travel and other expenses necessarily incurred in the performance of the members duties. Reimbursement rates shall conform to the Controllers travel guideline rates.
(c)The commission may accept grants from federal, state, or local public agencies, or from private foundations or individuals, in order to assist the commission in carrying out the commissions duties, functions, and powers under this chapter.
(a)The Controller shall make available for the conduct of the commissions business, such staff and other support as does not conflict with the accomplishment of the other business of the office of the Controller. support.
(b)Each member of the commission shall serve without compensation, but shall be reimbursed for travel and other expenses necessarily incurred in the performance of the members duties. Reimbursement rates shall conform to the Controllers travel guideline rates.
(c)The commission may accept grants from federal, state, or local public agencies, or from private foundations or individuals, in order to assist the commission in carrying out the commissions duties, functions, and powers under this chapter.
(a)The Controller shall make available for the conduct of the commissions business, such staff and other support as does not conflict with the accomplishment of the other business of the office of the Controller.
(b)Each member of the commission shall serve without compensation, but shall be reimbursed for travel and other expenses necessarily incurred in the performance of the members duties. Reimbursement rates shall conform to the Controllers travel guideline rates.
(c)The commission may accept grants from federal, state, or local public agencies, or from private foundations or individuals, in order to assist it the commission in carrying out its the commissions duties, functions, and powers under this chapter.
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Date
|
Status
|
|---|---|
| Jan 12, 2018 | Stricken from file. |
| Jan 3, 2018 | Consideration of Governor's veto pending. |
| Oct 15, 2017 | Vetoed by Governor. |
| Sep 20, 2017 | Enrolled and presented to the Governor at 4:30 p.m. |
| Sep 11, 2017 | In Assembly. Ordered to Engrossing and Enrolling. |
| Sep 11, 2017 | Read third time. Passed. Ordered to the Assembly. |
| Sep 5, 2017 | Read second time. Ordered to third reading. |
| Sep 1, 2017 | From committee: Do pass. (Ayes 7. Noes 0.) (September 1). |
| Jun 26, 2017 | In committee: Referred to suspense file. |
| Jun 14, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 6. Noes 0.) (June 14). Re-referred to Com. on APPR. |
| Jun 1, 2017 | Referred to Com. on GOV. & F. |
| May 18, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 18, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1618.) |
| May 11, 2017 | Read second time. Ordered to Consent Calendar. |
| May 10, 2017 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 10). |
| Apr 27, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 26). Re-referred to Com. on APPR. |
| Apr 17, 2017 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Mar 29, 2017 | Re-referred to Com. on L. GOV. |
| Mar 28, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Mar 27, 2017 | Referred to Com. on L. GOV. |
| Feb 17, 2017 | From printer. May be heard in committee March 19. |
| Feb 16, 2017 | Read first time. To print. |
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Date
|
Description
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Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 11, 2017 | Assembly 3rd Reading AB1019 Chiu By Hertzberg | Senate Floor |
Passed |
|
| Sep 1, 2017 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 26, 2017 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 14, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 18, 2017 | AB 1019 CHIU Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 10, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 26, 2017 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Air Conditioning Sheet Metal Association | ** Support | Sep 2, 2017 |
| Air-Conditioning & Refrigeration Contractors Association | ** Support | Sep 2, 2017 |
| California State Council Of Laborers | ** Support | Apr 25, 2017 |
| Construction Industry Force Account Council | ** Support | Sep 2, 2017 |
| Construction Industry Force Account Council [SPONSOR] | ** Support | Apr 25, 2017 |
| Finishing Contractors Association Of Southern California | ** Support | Sep 2, 2017 |
| National Electrical Contractors Association | ** Support | Sep 2, 2017 |
| Northern California Allied Trades | ** Support | Sep 2, 2017 |
| United Contractors | ** Support | Sep 2, 2017 |
| Unknown. | ** Against | Jun 9, 2017 |
| Wall and Ceiling Alliance | ** Support | Sep 2, 2017 |
GOVERNOR'S VETO
GV Bill Id:AB 1019
Author:(Chiu)
As Enrolled Ver:September 13, 2017
2/3 vote
Committee | Votes | Ayes | Noes |
Local Government | 9-0 | Aguiar-Curry, Waldron, Bloom, Caballero, Gonzalez Fletcher, Grayson, Lackey, Ridley-Thomas, Voepel | |
Appropriations | 17-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Calderon, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Gray, Muratsuchi, Obernolte, Reyes |
ASSEMBLY: | 69-0 | (May 18, 2017) | SENATE: | 40-0 | (September 11, 2017) |
SUMMARY: Removes a requirement that staff and other support made available by the State Controller's Office (SCO) for the conduct of the California Uniform Construction Cost Accounting Commission's business not conflict with the accomplishment of the other business of the SCO.
EXISTING LAW:
- Establishes the Uniform Public Construction Cost Accounting Act (Act), which is a voluntary program that allows public agencies to perform projects costing $45,000 or less with the public agency's force account, by negotiated contract, or by purchase order, and to use an alternative bidding procedure set forth in the Act for projects costing $175,000 or less.
- Establishes the California Uniform Construction Cost Accounting Commission (Commission) to administer the Act.
- Requires the Controller to make available for the conduct of the Commission's business staff and other support as does not conflict with the accomplishment of the other business of the SCO.
FISCAL EFFECT: According to the Assembly Appropriations Committee, the SCO anticipates ongoing annual costs of $106,000 for one Personnel Year to assist the Commission.
COMMENTS:
- Bill Summary. This bill removes a requirement that staff and other support made available by the SCO for the conduct of the Commission's business not conflict with the accomplishment of the other business of the SCO. This bill is sponsored by Construction Industry Force Account Council.
- Author's Statement. According to the author, "The Uniform Public Construction Cost Accounting Act (UPCCAA) allows local agencies increased bidding flexibility, like using their own workforce, if the agency follows the procedures set forth by the Commission. When framework for administering the program was adopted, the Controller's office was provided some flexibility in providing staff to the Commission. At the time there were less than 100 participants and this was understandable. Now there are more than 1000 signatory agencies and the workload has increased as a result. In order (to) ensure that fair and open construction and accounting practices are being applied and voluntary participants are getting the support they need, the statute should be clarified that staff will be provided by the Controller's office."
- Background. The Act was created in 1983 to help promote "uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state." The Act is a voluntary program that is available to all public entities in the State. The Act allows public projects costing $45,000 or less to be performed by the public agency's force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the Act.
The Act promotes statewide uniformity of cost accounting standards and flexibility in bidding procedures on construction work performed or contracted by public entities in California. This results in cost savings and improved efficiency to public agencies in the bidding, award, execution and completion of public works projects.
The 14-member Commission, which must meet at least once a year, administers the Act and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the Act. The Commission also reviews public complaints and recommends audits when the criteria of the Act are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the Act and maintains a Commission web page on the SCO's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.
According to the SCO, there were 105 participating in 1989 (the earliest year for which the SCO has participation data). As of March 2017, there are 1,040 participants. The SCO has one or two staff members who assist the Commission, but this is a discretionary activity and their other duties are mandatory. Therefore, the assistance is only provided when these staff members have no conflicting duties. It appears the SCO's last request for a budget augmentation for assisting the Commission was in Fiscal Year 2007-08, which was denied. Since then, it appears that budget requests have been to perform functions that are mandated by statute.
In its annual report to the Legislature for 2015, the Commission noted that it "continues to be concerned that the lack of adequate and stabilized funding hampers the Commission's ability to fully implement the statutory requirements of the Act. In response, the Commission Chair appointed a subcommittee to review the feasibility of an annual registration fee. After review by various agencies, the subcommittee recommended seeking an alternative funding avenue to provide continued support to informing and training participating agencies as well as conduct audits in a timely manner."
- Arguments in Support. The Construction Industry Force Account Council, sponsor of this bill, writes, "The State Controller's Office provides staff and other support to the Commission for its operations, where such support does not hinder the Controller's other business. Current law is unclear on the extent to which the controller must staff and service the Commission and the agencies subject to the Act… This bill will help ensure that the Commission's operating statutes provide for the greatest amount of functionality and efficiency…Ensuring the Commission has the ability to service and responds to the greatly increased number of participating agencies is imperative to the continued success of the Act."
- Arguments in Opposition. None on file.
This bill requires the State Controller's Office to make staff available to support the California Uniform Construction Cost Accounting Commission.
The need for this bill is unclear. I am confident that the State Controller's Office is more than capable of dedicating the necessary staff to support the Commission and its work without the mandate called for in this bill.
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0002472
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1019
:
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 6/14/17
AYES: McGuire, Nguyen, Beall, Hertzberg, Lara, Moorlach
NO VOTE RECORDED: Hernandez
SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
ASSEMBLY FLOOR: 69-0, 5/18/17 (Consent) - See last page for vote
SOURCE: Construction Industry Force Account Council
DIGEST:
This bill removes a requirement that staff only be made available by the State Controller’s Office (SCO) to the California Uniform Construction Cost Accounting Commission if it does not interfere with the business of the SCO.
Existing law:
- Establishes the Uniform Public Construction Cost Accounting Act (Act), which is a voluntary program that allows public agencies to perform projects costing $45,000 or less with the public agency’s force account, by negotiated contract, or by purchase order, and to use an alternative bidding procedure set forth in the Act for projects costing $175,000 or less.
- Establishes the California Uniform Construction Cost Accounting Commission (Commission) to administer the Act.
- Requires the Controller to make available for the conduct of the Commission’s business staff and other support as does not conflict with the accomplishment of the other business of the SCO.
This bill requires the SCO to make available to the Commission staff and other support for the conduct of the Commission’s business.
Background
The Legislature enacted the Act in 1983 to promote statewide uniformity of cost accounting standards and flexibility in bidding procedures on construction work performed or contracted by public entities in California. The Act is a voluntary program that is available to all public entities in the State. The Act allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the Act.
The 14-member Commission, which must meet at least once a year, administers the Act and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the Act. The Commission also reviews public complaints and recommends audits when the criteria of the Act are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the Act, and maintains a Commission Web page on the SCO's Web site. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.
According to the SCO, 105 entities chose to opt in to these standards in 1989 (the earliest year for which the SCO has participation data). As of March 2017, there are 1,040 participants. The SCO has one or two staff members who assist the Commission, but this is a discretionary activity. Current law only requires the SCO to make staff available to the Commission if it does not interfere with their normal job duties. Therefore, assistance is only provided when these staff members have no conflicting duties. The SCO’s last request for a budget augmentation for assisting the Commission was in FY 2007-08, which was denied.
In its annual report to the Legislature for 2015, the Commission noted that it "continues to be concerned that the lack of adequate and stabilized funding hampers the Commission’s ability to fully implement the statutory requirements of the Act. In response, the Commission Chair appointed a subcommittee to review the feasibility of an annual registration fee. After review by various agencies, the subcommittee recommended seeking an alternative funding avenue to provide continued support to informing and training participating agencies as well as conduct audits in a timely manner." In response to the Commission’s report to the Legislature and due to the increased workload since the Act’s adoption, the Construction Industry Force Account Council wants to ensure that staff and support is available to provide the necessary assistance to participating public agencies.
Comments
Purpose of the bill. According to the author, “The Act allows local agencies increased bidding flexibility, like using their own workforce, if the agency follows the procedures set forth by the California Uniform Construction Cost Accounting Commission. When framework for administering the program was adopted, the Controller’s office was provided some flexibility in providing staff to the Commission. At the time there were less than 100 participants and this was understandable. Now there are more than 1000 signatory agencies and the workload has increased as a result. In order ensure that fair and open construction and accounting practices are being applied and voluntary participants are getting the support they need, the statute should be clarified that staff will be provided by the Controller’s office.”
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee:
The SCO estimates mandatory support of the Commission’s work would require approximately 1.25 PY of staff time at cost of approximately $132,000 annually. (General Fund)
Construction Industry Force Account Council (source)
Air Conditioning Sheet Metal Association
Air-Conditioning & Refrigeration Contractors Association
California Legislative Conference of the Plumbing, Heating, and Piping Industry California State Council of Laborers
Finishing Contractors Association of Southern California
National Electrical Contractors Association
Northern California Allied Trades
United Contractors
Wall and Ceiling Alliance
None received
ASSEMBLY FLOOR: 69-0, 5/18/17
AYES: Acosta, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Cervantes, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Gallagher, Cristina Garcia, Eduardo Garcia, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood
NO VOTE RECORDED: Aguiar-Curry, Calderon, Chau, Frazier, Friedman, Gipson, Gloria, Holden, Mullin, Santiago, Rendon
9/2/17 13:37:36
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
AB 1019 (Chiu) - California Uniform Construction Cost Accounting Commission
Version: March 28, 2017 | Policy Vote: GOV. & F. 6 - 0 |
Urgency: No | Mandate: No |
Hearing Date: June 26, 2017 | Consultant: Mark McKenzie |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 1019 would require the State Controller (SCO) to make staff and other support available for the conduct of business by the California Uniform Construction Cost Accounting Commission (Commission), rather than making those resources available only to the extent it does not conflict with other SCO business.
Fiscal Impact:
The SCO estimates mandatory support of the Commission’s work would require approximately 1.25 PY of staff time at cost of approximately $132,000 annually. (General Fund)
Background:
Existing law, the Uniform Public Construction Cost Accounting Act (Act), authorizes a local agency that agrees to conform to specified uniform cost accounting standards for construction projects to use flexible bidding procedures for public construction work. The Act is a voluntary program that allows public projects costing $45,000 or less to be performed by the public agency’s own employees through a force account, by negotiated contract, or by purchase order. Public agencies that opt into the Act receive certain public contracting benefits, such as the authority to pre-qualify contractors and use informal and streamlined bidding procedures for projects that cost $175,000 or less. There are no fees or dues imposed on local agencies that opt into the Act.
Existing law establishes a 14-member Commission to administer the Act and provide technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the Act. The Commission also reviews public complaints and recommends audits when the criteria of the Act are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the Act, and maintains a Commission web page on the SCO's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.
According to the SCO, 105 entities chose to opt in to the uniform standards of the Act in 1989 (the earliest year for which the SCO has participation data). As of May 2017, there are 1,064 participants. The SCO currently has one to two staff members who assist the Commission, but this is a discretionary activity, and the SCO staff only provides support to the Commission if it does not interfere with their normal job duties.
Proposed Law:
AB 1019 would delete the condition that the SCO must only provide staff and support to the Commission to the extent use of those resources for Commission work does not interfere with the conduct of SCO business, and instead require the SCO to make staff and other support available for the conduct of the Commission’s business.
Staff Comments:
The Commission has noted in its annual report to the Legislature that the lack of dedicated staff and stabilized funding hampers its ability to fully implement the statutory requirements of the Act. The Commission has explored the feasibility of an annual registration fee to provide permanent funding to support its activities, but ultimately decided to seek other funding alternatives. This bill would require that SCO staff is dedicated specifically for the work of the Commission, at a state General Fund cost of approximately $132,000 annually, which would ensure that audits are conducted in a timely manner and support and training are provided to participating local agencies.
-- END --
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Mike McGuire, Chair
2017 - 2018 Regular
Bill No: | AB 1019 | Hearing Date: | 6/14/17 |
Author: | Chiu | Tax Levy: | No |
Version: | 3/28/17 | Fiscal: | Yes |
Consultant: | MacDonald | ||
California Uniform Construction Cost Accounting Commission
Removes a requirement that staff only be made available by the State Controller’s Office (SCO) to the California Uniform Construction Cost Accounting Commission if it does not interfere with the business of the SCO.
Background
The Legislature enacted the Uniform Public Construction Cost Accounting Act (Act) in 1983 to promote statewide uniformity of cost accounting standards and flexibility in bidding procedures on construction work performed or contracted by public entities in California. The Act is a voluntary program that is available to all public entities in the State. The Act allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the Act.
The 14-member Commission, which must meet at least once a year, administers the Act and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the Act. The Commission also reviews public complaints and recommends audits when the criteria of the Act are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the Act, and maintains a Commission web page on the SCO's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.
According to the SCO, 105 entities chose to opt in to these standards in 1989 (the earliest year for which the SCO has participation data). As of March 2017, there are 1,040 participants. The SCO has one or two staff members who assist the Commission, but this is a discretionary activity. Current law only requires the SCO to make staff available to the Commission if it does not interfere with their normal job duties. Therefore, assistance is only provided when these staff members have no conflicting duties. The SCO’s last request for a budget augmentation for assisting the Commission was in FY 2007-08, which was denied.
In its annual report to the Legislature for 2015, the Commission noted that it "continues to be concerned that the lack of adequate and stabilized funding hampers the Commission’s ability to fully implement the statutory requirements of the Act. In response, the Commission Chair appointed a subcommittee to review the feasibility of an annual registration fee. After review by various agencies, the subcommittee recommended seeking an alternative funding avenue to provide continued support to informing and training participating agencies as well as conduct audits in a timely manner." In response to the Commission’s report to the Legislature and due to the increased workload since the Act’s adoption, the Construction Industry Force Account Council wants to ensure that staff and support is available to provide the necessary assistance to participating public agencies.
Proposed Law
Assembly Bill 1019 requires the SCO to make available to the Commission staff and other support for the conduct of the Commission’s business.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, The Act allows local agencies increased bidding flexibility, like using their own workforce, if the agency follows the procedures set forth by the California Uniform Construction Cost Accounting Commission. When framework for administering the program was adopted, the Controller’s office was provided some flexibility in providing staff to the Commission. At the time there were less than 100 participants and this was understandable. Now there are more than 1000 signatory agencies and the workload has increased as a result. In order ensure that fair and open construction and accounting practices are being applied and voluntary participants are getting the support they need, the statute should be clarified that staff will be provided by the Controller’s office.”
Assembly Actions
Assembly Local Government 9-0
Assembly Appropriations 17-0
Assembly Floor 69-0
Support and Opposition
(6/8/17)
Support: Construction Industry Force Account Council (Sponsor); Air Conditioning Sheet Metal Association; Air-conditioning & Refrigeration Contractors Association; California Legislative Conference of the Plumbing, Heating, and Piping Industry; California State Council of Laborers; Finishing Contractors Association of Southern California; National Electrical Contractors Association; Northern California Allied Trades; United Contractors; Wall and Ceiling Alliance.
Opposition: Unknown.
-- END --
Date of Hearing: May 10, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1019
Author:(Chiu) – As Amended Ver:March 28, 2017
Policy Committee: | Local Government | Vote: | 9 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill removes a requirement that staff and other support made available by the State Controller's Office (SCO) for the conduct of the California Uniform Construction Cost Accounting Commission's (Commission) business not conflict with the accomplishment of the other business of the SCO.
FISCAL EFFECT:
The SCO anticipates ongoing annual costs of $106,000 for one PY to assist the Commission.
COMMENTS:
- Purpose. According to the author, "The Uniform Public Construction Cost Accounting Act (Act) allows local agencies increased bidding flexibility, like using their own workforce, if the agency follows the procedures set forth by the Commission. When framework for administering the program was adopted, the Controller’s office was provided some flexibility in providing staff to the Commission. At the time there were less than 100 participants and this was understandable. Now there are more than 1,000 signatory agencies and the workload has increased as a result. In order (to) ensure that fair and open construction and accounting practices are being applied and voluntary participants are getting the support they need, the statute should be clarified that staff will be provided by the Controller’s office."
- Background. The Act was created in 1983 to help promote "uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state." The Act is a voluntary program available to all public entities in the State. The Act allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the Act.
The 14-member Commission administers the Act and provides technical support to public agencies. The Commission also reviews public complaints and recommends audits when the criteria of the Act are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies, and maintains a Commission web page on the SCO's website.
According to the SCO, participating agencies have increased from 105 in 1989 to 1,040 as of March 2017. The SCO has one or two staff members who assist the Commission, but only when these staff members have no conflicting duties.
In its annual report to the Legislature for 2015, the Commission noted that it "continues to be concerned that the lack of adequate and stabilized funding hampers the Commission’s ability to fully implement the statutory requirements of the Act. In response, the Commission Chair appointed a subcommittee to review the feasibility of an annual registration fee. After review by various agencies, the subcommittee recommended seeking an alternative funding avenue to provide continued support to informing and training participating agencies as well as conduct audits in a timely manner."
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 26, 2017
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
ABPCA Bill Id:AB 1019 (
Author:Chiu) – As Amended Ver:March 28, 2017
SUBJECT: California Uniform Construction Cost Accounting Commission.
SUMMARY: Removes a requirement that staff and other support made available by the State Controller's Office (SCO) for the conduct of the California Uniform Construction Cost Accounting Commission's business not conflict with the accomplishment of the other business of the SCO.
EXISTING LAW:
- Establishes the Uniform Public Construction Cost Accounting Act (Act), which is a voluntary program that allows public agencies to perform projects costing $45,000 or less with the public agency’s force account, by negotiated contract, or by purchase order, and to use an alternative bidding procedure set forth in the Act for projects costing $175,000 or less.
- Establishes the California Uniform Construction Cost Accounting Commission (Commission) to administer the Act.
- Requires the Controller to make available for the conduct of the Commission’s business staff and other support as does not conflict with the accomplishment of the other business of the SCO.
FISCAL EFFECT: This bill is keyed fiscal.
COMMENTS:
- Bill Summary. This bill removes a requirement that staff and other support made available by the State Controller's Office (SCO) for the conduct of the California Uniform Construction Cost Accounting Commission's business not conflict with the accomplishment of the other business of the SCO. This bill is sponsored by Construction Industry Force Account Council.
- Author's Statement. According to the author, "The Uniform Public Construction Cost Accounting Act (UPCCAA) allows local agencies increased bidding flexibility, like using their own workforce, if the agency follows the procedures set forth by the Commission. When framework for administering the program was adopted, the Controller’s office was provided some flexibility in providing staff to the Commission. At the time there were less than 100 participants and this was understandable. Now there are more than 1000 signatory agencies and the workload has increased as a result. In order (to) ensure that fair and open construction and accounting practices are being applied and voluntary participants are getting the support they need, the statute should be clarified that staff will be provided by the Controller’s office."
- Background. The Act was created in 1983 to help promote "uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state." The Act is a voluntary program that is available to all public entities in the State. The Act allows public projects costing $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects costing $175,000 or less can use informal bidding procedures set forth in the Act.
The Act promotes statewide uniformity of cost accounting standards and flexibility in bidding procedures on construction work performed or contracted by public entities in California. This results in cost savings and improved efficiency to public agencies in the bidding, award, execution and completion of public works projects.
The 14-member Commission, which must meet at least once a year, administers the Act and provides technical support to public agencies by prescribing uniform construction cost accounting procedures for agencies that opt into the Act. The Commission also reviews public complaints and recommends audits when the criteria of the Act are not fulfilled. In addition, the Commission conducts meetings open to the public, provides a manual for use by public agencies signatory to the Act and maintains a Commission web page on the SCO's website. Commissioners also facilitate and participate in outreach and training to participating agencies, candidate agencies, and professional organizations.
According to the SCO, there were 105 participating in 1989 (the earliest year for which the SCO has participation data). As of March 2017, there are 1,040 participants. The SCO has one or two staff members who assist the Commission, but this is a discretionary activity and their other duties are mandatory. Therefore, the assistance is only provided when these staff members have no conflicting duties. It appears the SCO’s last request for a budget augmentation for assisting the Commission was in FY 2007-08, which was denied. Since then, it appears that budget requests have been to perform functions that are mandated by statute.
In its annual report to the Legislature for 2015, the Commission noted that it "continues to be concerned that the lack of adequate and stabilized funding hampers the Commission’s ability to fully implement the statutory requirements of the Act. In response, the Commission Chair appointed a subcommittee to review the feasibility of an annual registration fee. After review by various agencies, the subcommittee recommended seeking an alternative funding avenue to provide continued support to informing and training participating agencies as well as conduct audits in a timely manner."
- Arguments in Support. The Construction Industry Force Account Council, sponsor of this bill, writes, "The State Controller’s Office provides staff and other support to the Commission for its operations, where such support does not hinder the Controller’s other business. Current law is unclear on the extent to which the controller must staff and service the Commission and the agencies subject to the Act…This bill will help ensure that the Commission’s operating statutes provide for the greatest amount of functionality and efficiency…Ensuring the Commission has the ability to service and responds to the greatly increased number of participating agencies is imperative to the continued success of the Act."
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Construction Industry Force Account Council [SPONSOR]
Air Conditioning Sheet Metal Association
Air-conditioning & Refrigeration Contractors Association
California Legislative Conference of the Plumbing, Heating and Piping Industry
California State Council of Laborers
Finishing Contractors Association of Southern California
National Electrical Contractors Association
Northern California Allied Trades
United Contractors
Wall and Ceiling Alliance
Opposition
None on file
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958
Discussed in Hearing
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