An act to amend
Sections 6300, 6302, and 6304 of, and to repeal Sections 6301, 6303, and 6305 of, the Government Code, relating to state government.
Section 13332.19 of the Government Code, and to amend Sections 10187.5 and 10190 of the Public Contract Code, relating to public contracts.

The people of the State of California do enact as follows:


SECTION 1.
Section 13332.19 of the Government Code is amended to read:
13332.19.
(a) For the purposes of this section, the following definitions shall apply:
(1) “Design-build” means a construction procurement process in which both the design and construction of a project are procured from a single entity.
(2) “Design-build project” means a capital outlay project using the design-build construction procurement process.
(3) “Design-build entity” means a partnership, corporation, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed.
(4) “Design-build solicitation package” means the performance criteria, any concept drawings, the form of contract, and all other documents and information that serve as the basis on which bids or proposals will be solicited from the design-build entities.
(5) “Design-build phase” means the period following the award of a contract to a design-build entity in which the design-build entity completes the design and construction activities necessary to fully complete the project in compliance with the terms of the contract.
(6) “Performance criteria” means the information that fully describes the scope of the proposed project and includes, but is not limited to, the size, type, and design character of the buildings and site; the required form, fit, function, operational requirements, and quality of design, materials, equipment, and workmanship; and any other information deemed necessary to sufficiently describe the state’s needs. Performance criteria may include concept drawings, which include any schematic drawings or architectural renderings that are prepared in the detail necessary to sufficiently describe the state’s needs.
(b) (1) Except as otherwise specified in subparagraphs (A) to
(D),
(E),
inclusive, of paragraph (2) funds appropriated for a design-build project shall not be expended by any state agency, including, but not limited to, the University of California, the California State University, the California Community Colleges, and the Judicial Council, until the Department of Finance and the State Public Works Board have approved performance criteria.
(2) This section shall not apply to any of the following:
(A) Amounts for acquisition of real property, in fee or any lesser interest.
(B) Amounts for equipment or minor capital outlay projects.
(C) Amounts appropriated for performance criteria.
(D) Amounts appropriated for preliminary plans, if the appropriation was made prior to January 1, 2005.
(E) Amounts appropriated for projects at the Salton Sea.
(c) Any appropriated amounts for the design-build phase of a design-build project, where funds have been expended on the design-build phase by any state agency prior to the approval of the performance criteria by the State Public Works Board, and all amounts not approved by the board under this section shall be reverted to the fund from which the appropriation was made. A design-build project for which a capital outlay appropriation is made shall not be put out to design-build solicitation until the bid package has been approved by the Department of Finance. A substantial change shall not be made to the performance criteria as approved by the board and the Department of Finance without written approval by the Department of Finance. The Department of Finance shall approve any proposed bid or proposal alternates set forth in the design-build solicitation package.
(d) The State Public Works Board may augment a design-build project in an amount of up to 20 percent of the capital outlay appropriations for the project, irrespective of whether any such appropriation has reverted. For projects authorized through multiple fund sources, including, but not limited to, general obligation bonds and lease-revenue bonds, to the extent permissible, the Department of Finance shall have full authority to determine which of the fund sources will bear all or part of an augmentation. The board shall defer all augmentations in excess of 20 percent of the amount appropriated for each design-build project until the Legislature makes additional funds available for the specific project.
(e) In addition to the powers provided by Section 15849.6, the State Public Works Board may further increase the additional amount in Section 15849.6 to include a reasonable construction reserve within the construction fund for any capital outlay project without augmenting the project. The amount of the construction reserve shall be within the 20 percent augmentation limitation. The board may use this amount to augment the project, when and if necessary, after the lease-revenue bonds are sold to ensure completion of the project.
(f) Any augmentation in excess of 10 percent of the amounts appropriated for each design-build project shall be reported to the Chairperson of the Joint Legislative Budget Committee, or his or her designee, 20 days prior to board approval, or not sooner than whatever lesser time the chairperson, or his or her designee, may in each instance determine.
(g) (1) The Department of Finance may change the administratively or legislatively approved scope for major design-build projects.
(2) If the Department of Finance changes the approved scope pursuant to paragraph (1), the department shall report the changes and associated cost implications to the Chairperson of the Joint Legislative Budget Committee, the chairpersons of the respective fiscal committees, and the legislative members of the State Public Works Board 20 days prior to the proposed board action to recognize the scope change.
(h) The Department of Finance shall report to the Chairperson of the Joint Legislative Budget Committee, the chairpersons of the respective fiscal committees, and the legislative members of the State Public Works Board 20 days prior to the proposed board approval of performance criteria for any project when it is determined that the estimated cost of the total design-build project is in excess of 20 percent of the amount recognized by the Legislature.
SEC. 2.
Section 10187.5 of the Public Contract Code is amended to read:
10187.5.
For purposes of this article, the following definitions and the definitions in subdivision (a) of Section 13332.19 of the Government Code shall apply:
(a) “Best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price and other specified factors.
(b) “Construction subcontract” means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)
(1)
“Department” means the Department of General Services and the Department of Corrections and Rehabilitation.
(2) For the purposes of projects at the Salton Sea, “department” means the Department of Water Resources.
(d) “Design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity.
(e) “Design-build entity” means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a design-build contract.
(f) “Design-build team” means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.
(g)
(1)
“Director” means, with respect to procurements undertaken by the Department of General Services, the Director of General Services or, with respect to procurements undertaken by the Department of Corrections and Rehabilitation, the secretary of that department.
(2) For purposes of projects at the Salton Sea, “director” means the Director of Water Resources.
SEC. 3.
Section 10190 of the Public Contract Code is amended to read:
10190.
(a)
The director shall notify the State Public Works Board regarding the method to be used for selecting the design-build entity, prior to advertising the design-build project.
(b) Notwithstanding subdivision (a), for purposes of projects at the Salton Sea, the Director of the Department of Water Resources shall notify the California Water Commission regarding the method to be used for selecting the design-build entry, prior to advertising the design-build project.
SECTION 1.
Section 6300 of the
Government Code
is amended to read:
6300.
The following definitions govern this chapter:
(a)“Act of Congress” means the act of Congress approved June 18, 1934, entitled “An act to provide for the establishment, operation, and maintenance of foreign-trade zones in ports of entry of the United States, to expedite and encourage foreign commerce, and for other purposes” (Public Law 73-397; 48 Stat. 998).
(b)“Public corporation” means the state, any political subdivision thereof, any incorporated municipality therein, any public agency of the state, of any political subdivision thereof, or of any municipality therein, or any corporate municipal instrumentality of this state or of this state and one or more other states.
(c)“Private corporation” means an entity organized under the laws of the state subsequent to September 15, 1935, for the purpose of establishing, operating, and maintaining a foreign-trade zone in accordance with the Act of Congress.
SEC. 2.
Section 6301 of the
Government Code
is repealed.
SEC. 3.
Section 6302 of the
Government Code
is amended to read:
6302.
(a)Any public corporation may apply for the privilege of establishing, operating, and maintaining a foreign-trade zone in accordance with the act of Congress.
(b)Any private corporation may apply for the privilege of establishing, operating, and maintaining a foreign-trade zone in accordance with the act of Congress.
SEC. 4.
Section 6303 of the
Government Code
is repealed.
SEC. 5.
Section 6304 of the
Government Code
is amended to read:
6304.
Any public or private corporation authorized by this chapter to make an application and whose application is granted pursuant to the terms of the act of Congress may establish, operate, and maintain the foreign-trade zone:
(a)Subject to the conditions and restrictions of the act of Congress, and any amendments thereto.
(b)Under such rules and regulations and for the period of time that may be prescribed by the board established by the act of Congress to carry out the act.
SEC. 6.
Section 6305 of the
Government Code
is repealed.

Summary: Existing law, except as specified, prohibits any state agency from expending funds appropriated for design-build projects until the Department of Finance and the State Public Works Board have approved performance criteria for the project.
This bill would include among the exceptions to those provisions amounts appropriated for projects at the Salton Sea.
Existing law requires either the Director of General Services or the Secretary of the Department of Corrections and Rehabilitation to notify the State Public Works Board regarding the method to be used for selecting a design-build entity, prior to advertising the design-build project.
This bill would, for purposes of projects at the Salton Sea, instead require the Director of the Department of Water Resources to notify the California Water Commission regarding the method to be used for selecting a design-build entry, prior to advertising a design-build project.
The bill would make other conforming changes.
Existing law authorizes any public corporation, as defined, and specified private corporations to apply for the privilege of establishing, operating, and maintaining a foreign-trade zone in accordance with federal law, and provides that any public or private corporation whose application is granted pursuant to federal law is authorized to establish, operate, and maintain a foreign-trade zone, subject to specified conditions. Existing law also authorizes a public corporation, if authorized to establish, operate, and maintain a foreign trade zone, to provide the United States with indemnity or assurance and to deposit sums of money with the United States as requested.
This bill would combine and reorganize these provisions and would repeal that indemnity and assurance provision.