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<ns0:Description>
<ns0:Id>20250SB__027295CHP</ns0:Id>
<ns0:VersionNum>95</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-04</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-18</ns0:ActionDate>
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<ns0:ActionDate>2025-08-28</ns0:ActionDate>
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<ns0:ActionDate>2025-09-03</ns0:ActionDate>
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<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-05</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>CHAPTERED</ns0:ActionText>
<ns0:ActionDate>2025-10-03</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>APPROVED</ns0:ActionText>
<ns0:ActionDate>2025-10-03</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>FILED</ns0:ActionText>
<ns0:ActionDate>2025-10-03</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>272</ns0:MeasureNum>
<ns0:MeasureState>CHP</ns0:MeasureState>
<ns0:ChapterYear>2025</ns0:ChapterYear>
<ns0:ChapterType>CHP</ns0:ChapterType>
<ns0:ChapterSessionNum>0</ns0:ChapterSessionNum>
<ns0:ChapterNum>310</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Becker</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthors: Assembly Members Berman and Stefani)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Becker</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Berman</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Stefani</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add and repeal Article 13 (commencing with Section 103399.5) of Chapter 5 of Part 15 of Division 10 of the Public Utilities Code, relating to public contracts. </ns0:Title>
<ns0:RelatingClause>public contracts</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>San Mateo County Transit District: job order contracting: pilot program.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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 also sets forth specific public contracting requirements for certain transit districts, including the San Mateo County Transit District for construction work contracts. The act authorizes certain local agencies, including school districts and community college districts, to engage in job order contracting, as prescribed.</html:p>
<html:p>This bill would establish a pilot program to authorize the San Mateo County Transit District to use job order contracting as a procurement method. The bill would impose a $5,000,000 cap on awards under a single job order contract and a $1,000,000 cap on any single job order. The bill would limit the term of an initial contract to a maximum of 12 months, with extensions as
prescribed. The bill would establish various procedures and requirements for the use of job order contracting under the pilot program. The bill would require the district, on or before January 1, 2030, to submit to the appropriate policy and fiscal committees of the Legislature a report on the use of job order contracting under the bill. The pilot program would be repealed on January 1, 2032.</html:p>
<html:p>This bill would make legislative findings and declarations as to the necessity of a special statute for the San Mateo County Transit District.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>NO</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_314470FA-01C0-4A85-8D30-F9F3138094CE">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'15.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'13.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 103399.5" ns3:type="locator">
Article 13 (commencing with Section 103399.5) is added to Chapter 5 of Part 15 of Division 10 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawHeading id="id_6A8A7C93-5A39-456E-8E8B-F633FBC50063" type="ARTICLE">
<ns0:Num>13.</ns0:Num>
<ns0:LawHeadingVersion id="id_6FDACFBF-0FEF-4401-ABD1-12918A0C561C">
<ns0:LawHeadingText>Job Order Contracting</ns0:LawHeadingText>
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<ns0:LawSection id="id_326A6642-3ECB-4D11-97D5-0A9E5727EB2F">
<ns0:Num>103399.5.</ns0:Num>
<ns0:LawSectionVersion id="id_49039FFB-BCB4-4FF4-8184-7358CE23B9AA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding Article 19 (commencing with Section 20330) of Chapter 1 of Part 3 of Division 2 of the Public Contract Code, the district may use the procurement method outlined in this article for a job order contract.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The district shall not contract for work that is protected by applicable collective bargaining agreements. All job order contracts shall comply
with all district collective bargaining agreements.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Job order contracts of the district shall be competitively bid and awarded to bidders providing qualified responsive bids.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Job order contracts shall be for repair, remodeling, or other repetitive work to be done according to unit prices. No annual contracts may be awarded for any new construction.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A job order contract shall be subject to a project labor agreement between the district and the San Mateo Building Trades Council, or an amendment or extension to that agreement.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Solicitations for job order contracts shall progress as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The
district shall prepare a set of solicitation documents for job order contracts. The documents shall include a unit price catalog or other established unit prices, job order contract terms, job order contract technical specifications, and any other information the district deems necessary to adequately describe the district’s needs.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An architect, engineer, consultant, or contractor retained by the district to assist in the development of the job order contract solicitation documents shall not be eligible to bid or to participate in the preparation of a job order contract bid.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The district may award multiple job order contracts in response to a single job order contract solicitation.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The district shall
develop a system for evaluating job order contract bids for awarding job order contracts.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The award of a job order contract shall progress as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The district shall prepare a request for bids for job order contracts based on the solicitation documents prepared under paragraph (1) of subdivision (b) that invites job order contractors to submit sealed bids in the manner prescribed by the district.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Each bidding job order contractor shall include in its bid one or more adjustment factors to the established unit prices provided in the request for bids based on the contract’s technical specifications.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Each bidding job order contractor shall agree to identify
any subcontractors to be used for the job orders performed pursuant to the job order contract.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The award of job order contracts, if any, shall be made to a job order contractor or to job order contractors that the district determines to be qualified and responsive based upon preestablished criteria to be determined by the district.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The job order contractors shall comply with the district’s project labor agreement, as applicable.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Notwithstanding paragraph (4), the district, by a process determined by the district, may award any job order for repair or renovation work with a value equal to or less than two hundred fifty thousand dollars ($250,000) to a job order contractor that is also a certified small
business enterprise, as established by the district’s small business enterprise certification process or any similar certification process acceptable to the district, or to a job order contractor that is also a disabled veterans business enterprise, as certified by the Department of General Services.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_F1478B81-252F-4BBD-8963-D2E7E8D70C72">
<ns0:Num>103399.6.</ns0:Num>
<ns0:LawSectionVersion id="id_582F3EAD-963D-4217-A75F-065C55372201">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The maximum total dollar amount that may be awarded under a single job order contract shall not exceed five million dollars ($5,000,000) in the initial contract term of the job order contract. No single job order may exceed one million dollars ($1,000,000).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Job order contracts may be executed for an initial contract term of no more than 12 months and may be extended or renewed for two subsequent annual terms and a maximum of ten million dollars ($10,000,000) over the subsequent two terms of the contract.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Work shall not be split or separated into smaller job orders for the purpose
of evading the cost limits of the article.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Dollar amounts specified in this section may be adjusted annually to reflect the percentage change in the California Consumer Price Index.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_CAC46330-7784-4CAF-97C8-A01276A0E2DA">
<ns0:Num>103399.7.</ns0:Num>
<ns0:LawSectionVersion id="id_2F4EFBF5-84DD-4C87-AFE5-4FDD7589831E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
All work bid under job order contracts shall comply with Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code and is subject to all of the penalties and provisions set forth in that chapter.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this article, if a job order contractor chooses to use a subcontractor, the job order contractor shall verify that the subcontractor possesses and maintains the appropriate licenses and credentials required.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the district, after conducting an administrative due process review, determines that there has been a violation of Chapter 4 (commencing with
Section 4100) of Part 1 of Division 2 of the Public Contract Code, including, but not limited to, bid shopping by the job order contractor, the district may terminate the job order contract, declare the contractor ineligible for future job order contracts for a period of time to be determined by the district, or withdraw authorization for the contractor to proceed with awarded work.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_14CC0D51-89AA-40A2-895D-BD78A101D803">
<ns0:Num>103399.8.</ns0:Num>
<ns0:LawSectionVersion id="id_AACDA7E3-8D0A-4D01-ADB4-A8470DC11DF8">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A job order contract shall set forth in the general conditions of the job order contract the party or parties responsible for seeing that Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code is complied with.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of job order contracting, prevailing wages shall apply to all work ordered under the job order contract regardless of thresholds set forth in Section 1771.5 of the Labor Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The job order contractor shall pay the prevailing wage in effect at the time the job order contract is issued by the district and all increases as published
by the Department of Industrial Relations for the term of the job order contract, including all overtime, holiday, and shift provisions published by the Department of Industrial Relations.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The district shall designate one individual to act as a monitor to inspect job sites for labor compliance violations at the request of the designated labor representative in its project labor agreement.
</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_F317A862-6E59-47C6-817E-F30820AC0BFD">
<ns0:Num>103399.9.</ns0:Num>
<ns0:LawSectionVersion id="id_23EC324F-73C3-4F01-B65A-3FF1028EE610">
<ns0:Content>
<html:p>In order to prevent fraud, waste, and abuse, the district shall prepare for each individual job order developed under a job order contract an independent cost estimate. The estimate shall be prepared before the receipt of any job order contractor’s estimate for the work and shall be compared to the job order contractor’s estimate to determine the reasonableness of that estimate before issuance of any job order. If the district finds the job order contractor’s estimate to perform work for a given job order to be unreasonable, not cost effective, or undesirable, the district may elect not to issue the job order to the job order contractor, and may, instead, use any other available procurement procedures or choose not to move forward with the work.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_E109A0B3-B29A-4D35-98C8-B9B4C0C24E07">
<ns0:Num>103399.10.</ns0:Num>
<ns0:LawSectionVersion id="id_7DF54CAD-9388-451D-BA60-0F52A544D904">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The district shall submit to the appropriate policy and fiscal committees of the Legislature, on or before January 1, 2030, a report on the use of job order contracting under this article. The report shall include, but shall not be limited to, all of the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A description of the district’s system for evaluating job order contract bids for award of job order contracts, including, but not limited to, the criteria used by the district to determine a qualified and responsive job order contractor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A description of each job order contract awarded and the contractor awarded the
contract.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An assessment of the use of job order contracting under this article.
</html:p>
<html:p>
(b)
<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>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_C834CB72-112F-42E7-BC0C-6EB978E93490">
<ns0:Num>103399.11.</ns0:Num>
<ns0:LawSectionVersion id="id_E43790A9-50F8-409D-AD86-3304D207ABDD">
<ns0:Content>
<html:p>This article shall remain in effect only until January 1, 2032, and as of that date is repealed.</html:p>
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<ns0:BillSection id="id_FF8CBDF2-EC36-48DD-BD7B-2DB019016DF0">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need for a pilot program to determine the potential benefits of job order contracting to a large transportation agency without setting policy for smaller local agencies.</html:p>
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