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<ns0:Id>20250SB__115499INT</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Reyes</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Reyes</ns0:Name>
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<ns0:Title> An act to add and repeal Article 41.6 (commencing with Section 20666) to Chapter 1 of Part 3 of Division 2 of the Public Contract Code, relating to public contracts. </ns0:Title>
<ns0:RelatingClause>public contracts</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public contracts: best value procurement: community college districts.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law, the Local Agency Public Construction Act, sets forth procedures that a local agency is required to follow when procuring certain services or work. The act requires the governing board of any school district and the governing board of any community college district to let contracts for the purchase of, among other things, equipment, materials, or supplies to be furnished, sold, or leased to the district, involving an expenditure of more than $50,000, to the lowest responsible bidder that gives security as the board requires, or else reject all bids. The act also authorizes the governing board of a school district, as described, to use, before December 31, 2030, a best value procurement method for bid evaluation and selection for public projects that exceed $1,000,000. </html:p>
<html:p>This bill would additionally authorize the governing board of a
community college district to use, before December 31, 2030, a best value procurement method for bid evaluation and selection for public projects that exceed $1,000,000. The bill would establish various requirements applicable to the use of the best value procurement method under this authorization. The bill would require a community college district to submit a report on the use of the best value procurement method, as specified, to the appropriate policy and fiscal committees of the Legislature, on or before January 1, 2030. The bill would repeal these provisions on January 1, 2031. </html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_15A90CFD-FA72-4434-A28E-86B97563BD6E">
<ns0:Num>SECTION 1.</ns0:Num>
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Article 41.6 (commencing with Section 20666) is added to Chapter 1 of Part 3 of Division 2 of the
<ns0:DocName>Public Contract Code</ns0:DocName>
, to read:
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<ns0:LawHeading type="ARTICLE" id="id_160F1607-2348-47CF-9EB3-B92DC9AE0D0D">
<ns0:Num>41.6.</ns0:Num>
<ns0:LawHeadingVersion id="id_3BE828E1-ADA1-4DD7-91BC-52C1929FE316">
<ns0:LawHeadingText>Best Value Procurement for Community College Districts</ns0:LawHeadingText>
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<ns0:LawSection id="id_2D734660-0627-4C98-BC1B-D6FA47A2C149">
<ns0:Num>20666.</ns0:Num>
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<html:p>As used in this article:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Best value” means a procurement process whereby the selected bidder may be selected on the basis of objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Best value contract” means a competitively bid contract entered into pursuant to this article.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Best value contractor” means a properly licensed person, firm, or corporation that submits a bid for and is awarded a best value contract.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Best value score” means the resulting score
when the community college district divides the bidder’s price by the bidder’s qualification score.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Demonstrated management competency” means the experience, competency, capability, and capacity of the proposed management staffing to complete projects of similar size, scope, or complexity.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Financial condition” means the financial resources needed to perform the contract. The criteria used to evaluate a bidder’s financial condition shall include, at a minimum, capacity to obtain all required payment bonds and required insurance.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Governing board” or “governing board of the community college district” means the governing board of a community college district.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Labor compliance” means the ability to comply with, and past conformance
with, contract and statutory requirements for the payment of wages and qualifications of the workforce. The criteria used to evaluate a bidder’s labor compliance shall include, at a minimum, the bidder’s ability to comply with the apprenticeship requirements of the California Apprenticeship Council and the Department of Industrial Relations, its past conformance with such requirements, and its past conformance with requirements to pay prevailing wages on public works projects.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
“Project” has the same meaning as “public project,” as defined in subdivision (c) of Section 22002.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
“Qualifications” means financial condition, relevant experience, demonstrated management competency, labor compliance, the safety record of the bidder, and, to the extent relevant, the preceding qualifications as they pertain to all subcontractors proposed to be used by the bidder for designated
portions of the work.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
“Relevant experience” means the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
“Safety record” shall be deemed “acceptable” if a contractor’s experience modification rate for the most recent three-year period is an average of 1.00 or less, and the contractor’s average total recordable injury or illness rate and average lost work rate for the most recent three-year period do not exceed the applicable statistical standards for its business category or if the bidder is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.
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<ns0:LawSection id="id_D9CD806B-AB20-4A06-8132-6A2D1451B397">
<ns0:Num>20666.1.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The governing board, for projects over one million dollars ($1,000,000), before December 31, 2030, may use the best value procurement method in accordance with this article.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The bidder may be selected on the basis of the best value to the governing board of the community college district.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In order to implement this method of selection, the governing board of the community college district shall adopt and publish procedures and required guidelines for evaluating the qualifications of the bidders that ensure the best value selections by the community college district and conducted in a fair and impartial manner.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
These procedures and guidelines shall conform to this article and shall be mandatory for the community college district when using best value selection.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the governing board of the community college district deems it to be for the best interest of the community college district, the governing board of the community college district, on the refusal or failure of the selected bidder for a project to execute a tendered contract, may award it to the bidder with the second lowest best value score.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the second bidder fails or refuses to execute the contract, the governing board of the community college district may likewise award it to the bidder with the third lowest best value score.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The governing board of the
community college district shall let any contract for a project pursuant to this article to the selected bidder that represents the best value or else reject all bids.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the community college district elects to award a project pursuant to this section, retention proceeds withheld by the community college district from the selected best value contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
In a contract between the selected best value contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the community college district and the selected best value
contractor.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the selected best value contractor provides written notice to a subcontractor that, prior to or at the time the bid is requested, a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the selected best value contractor, then the selected best value contractor may withhold retention proceeds in excess of the percentage specified in the contract between the community college district and the selected best value contractor from any payment made by the selected best value contractor to the subcontractor.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
All subcontractors bidding on contracts pursuant to this chapter shall be afforded the protection contained in Chapter 4 (commencing with Section 4100) of Part 1.
</html:p>
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<ns0:LawSection id="id_47BCCE06-9B0D-4EA0-A22C-B039FB78BCB2">
<ns0:Num>20666.2.</ns0:Num>
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<ns0:Content>
<html:p>The governing board of the community college district shall proceed in accordance with all of the following when awarding best value contracts under this article: </html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The community college district shall prepare a solicitation for bids and give notice pursuant to Section 20651.7.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The community college district shall establish a procedure to prequalify bidders as required by this code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Information submitted by the bidder as part of the evaluation process shall not be open to public inspection to the extent that information is exempt from disclosure under the California Public
Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A best value entity shall not be prequalified or shortlisted unless the entity provides an enforceable commitment to the governing board of the community college district that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Paragraph (2) shall not apply if any of the following requirements are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The community college district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to
use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the community college district prior to January 1, 2027.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Each solicitation for bids shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Invite prequalified bidders to submit sealed bids in the manner prescribed by this article.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Include a section identifying and describing all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Criteria that the community college district will consider in evaluating the qualifications of the bidders.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The methodology and rating or weighting system that will be used by the community college district in evaluating bids.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The relative importance or weight assigned to the criteria for evaluating the qualifications of bidders identified in the request for bids.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Final evaluation of the bidders shall be done in a manner that prevents the identity of the bidders and the cost or price
information from being revealed in evaluating the qualifications of the bidders prior to completion of qualification scoring.
</html:p>
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<ns0:LawSection id="id_E5B41E3E-7361-42C2-80B5-71F36B6900DB">
<ns0:Num>20666.3.</ns0:Num>
<ns0:LawSectionVersion id="id_A7D608BC-F125-4B92-852F-399B145C3257">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A community college district that uses the best value procurement method pursuant to this article shall submit to the appropriate policy and fiscal committees of the Legislature a report on the use of the best value procurement method.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The report shall be prepared by an independent third party and the community college district shall pay for the cost of the report.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Multiple community college districts may work together to submit a single report reflecting each of the participating community college districts.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The report shall be submitted on or
before January 1, 2030, to the appropriate policy and fiscal committees of the Legislature.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The report shall include, but is not limited to, all of the following information:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A description of the projects awarded using the best value procedures.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The contract award amounts.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The names of the best value contractors awarded the projects.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A description of any written protests concerning any aspect of the solicitation, bid, or award of the best value contracts, including the resolution of the protests.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A description of the prequalification process.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The criteria used to evaluate the bids, including the weighting of the criteria and an assessment of the effectiveness of the methodology.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
If a project awarded under this article has been completed, an assessment of the project performance, including a summary of any delays or cost increases.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The requirement for submitting a report imposed under subdivision (a) is inoperative on January 1, 2031, pursuant to Section 10231.5 of the Government Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
</html:p>
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<ns0:LawSection id="id_AE742A12-F952-423D-8412-CC08A8CACA67">
<ns0:Num>20666.4.</ns0:Num>
<ns0:LawSectionVersion id="id_DC56162A-E238-4B1B-9C47-9258B7A0281F">
<ns0:Content>
<html:p>Except as otherwise provided in this article, the best value procurement method is not intended to change any guideline, criterion, procedure, or requirement of the governing board of the community college district to let a contract for a project to the lowest responsible bidder or else reject all bids.</html:p>
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<ns0:LawSection id="id_EAB89067-4795-434F-B02B-CC9FDE2A8E2C">
<ns0:Num>20666.5.</ns0:Num>
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<html:p>This article shall remain in effect only until January 1, 2031, and as of that date is repealed.</html:p>
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