AB 1860

AB1860:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1860

An act to amend Sections 17250.10, 17250.15, and 17250.60 17250.20, 17250.60, and 17250.61 of the Education Code, and to amend Section 20110 of the Public Contract Code, relating to county offices of education. school facilities.

LEGISLATIVE COUNSEL'S DIGEST

AB 1860, as amended, McKinnor. County offices of education: school School facilities: design-build: public contracts. alternative design-build: county superintendents of schools.

(1) Existing law authorizes a school district, with the approval of the governing board of the school district, to procure design-build contracts for public works projects in excess of $1,000,000, awarding the contract to either the low bid or the best value, as provided. Existing law requires specified information relating to design-build bid proposals to be verified under penalty of perjury. Existing law, until January 1, 2029, authorizes a school district, with the approval of its governing board, to procure alternative design-build contracts for public works projects in excess of $5,000,000, awarding the contract to either the low bid or the best value, as provided.

Existing law authorizes county boards of education that have had all or a portion of certain duties and functions relating to expenses transferred to them by the county board of supervisors to acquire, lease, lease-purchase, hold, and convey real property for purposes of housing the offices and the services of the county superintendent of schools.

This bill would authorize county offices of education, with the approval of the county board of education, superintendents of schools to procure those the same above-described design-build and alternative design-build contracts, subject to the same requirements that are applicable to school districts. districts, except that the bill would, notwithstanding any other law, require county superintendents of schools to have exclusive authority to award design-build and alternative design-build contracts on behalf of a county office of education and county board of education. The bill would include findings that these provisions address a matter of statewide concern and, therefore, apply to all counties, including charter counties. By expanding the crime of perjury, the bill would impose a state-mandated local program.

(2)Existing law, the Leroy F. Greene School Facilities Act of 1998, provides for the adoption of rules, regulations, and procedures, under the administration of the Director of General Services, for the allocation of state funds by the State Allocation Board for the construction and modernization of public school facilities.

The Local Agency Public Construction Act regulates, among other things, the letting of contracts by school district governing boards involving an expenditure of more than $50,000 for specified purposes, including the purchase of equipment, materials, or supplies to be furnished, sold, or leased to the school district, services other than construction services, and repairs, including maintenance, as defined. The act requires school district governing board to let any contract involving an expenditure of $15,000 or more to the lowest responsible bidder, as specified.

The act requires a prospective bidder for a construction contract for certain school facility projects to submit a prequalification questionnaire and financial statement, under oath, as part of the bidding process, and requires each prospective bidder to submit a bid by completing and executing a standardized proposal form. That act applies these requirements only to public projects, as defined, for which the governing board of the school district uses state general funds, the Leroy F. Greene School Facilities Act of 1998, or from future state school bonds, that involves a projected expenditure of $1,000,000 or more, as specified.

This bill, notwithstanding any other law, would apply the Local Agency Public Construction Act to county offices of education in the same manner that it is applied to school districts. By expanding the crime of perjury, this bill would establish a state-mandated local program.

(3)

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

Bill Text

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

SECTION 1.

Section 17250.10 of the Education Code is amended to read:

17250.10.

(a) The Legislature finds and declares that the design-build method of project delivery, using a best value procurement methodology, has been authorized for various agencies that have reported benefits from those projects, including reduced project costs, expedited project completion, and design features that are not achievable through the traditional design-bid-build method.

(b) It is the intent of the Legislature that:

(1) This chapter provide general authorization for school districts and county offices of education to use the design-build method for projects.

(2) This chapter shall not be deemed to express a preference for the design-build method over other procurement methodologies.

SEC. 2.

Section 17250.15 of the Education Code is amended to read:

17250.15.

For purposes of this chapter, except as otherwise provided, the following definitions apply:

(a) (1) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, price, features, functions, life-cycle costs, experience, and past performance.

(2) A best value determination may involve the selection of the lowest cost proposal meeting the interests of the school district and the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring school district, or a tradeoff between price and other factors.

(b) “Construction subcontract” means a subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or will render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the state which, 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) “Design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity.

(d) “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.

(e) (1) “Design-build team” means the design-build entity and the individuals or other entities identified by the design-build entity as members of its team.

(2) Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.

(f) “Project” means the construction of any school facility.

(g) “School Except for subdivision (a) of Section 17250.20, “school district” means a school district or a county office of education. superintendent of schools.

SEC. 3.

Section 17250.20 of the Education Code is amended to read:

17250.20.

(a) (1) A school district, with approval of its governing board, or a county superintendent of schools, may procure design-build contracts for projects in excess of one million dollars ($1,000,000), awarding the contract to either the low bid or the best value.

(2) Notwithstanding any other law, the county superintendent of schools shall have exclusive authority to award design-build contracts pursuant to this chapter on behalf of a county office of education and county board of education.

(b) The school district shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the school district relating to the solicitation of a design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to each school district entering into design-build contracts authorized under this chapter.

(c) This chapter shall apply to bid requests issued on or after July 1, 2016.

SEC. 3.SEC. 4.

Section 17250.60 of the Education Code is amended to read:

17250.60.

For purposes of this chapter, except as otherwise provided, the following definitions apply:

(a) “Alternative design-build” means a project delivery process in which both the design and construction of a project are procured from a single design-build entity based on its proposed design cost, general conditions, overhead, and profit as a component of the project price.

(b) (1) “Best value” means a value determined by evaluation of objective criteria that may include, but are not limited to, price, features, functions, life-cycle costs, experience, and past performance.

(2) A best value determination may involve the selection of the lowest cost proposal meeting the interests of the school district and the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring school district, or a tradeoff between price and other factors.

(c) “Construction subcontract” means a subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or will render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the state which, 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.

(d) “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 an alternative design-build contract.

(e) (1) “Design-build team” means the design-build entity and the individuals or other entities identified by the design-build entity as members of its team.

(2) Members shall include the general contractor and, if utilized in the design of the project, all electrical, mechanical, and plumbing contractors.

(f) “Project” means the construction of any school facility.

(g) “School Except for subdivision (a) of Section 17250.61, “school district” means a school district or a county office of education. superintendent of schools.

SEC. 4.Section 20110 of the Public Contract Code is amended to read:

20110.

Notwithstanding any other law, this part shall apply to contracts awarded by any of the following:

(a)School districts subject to Part 21 (commencing with Section 35000) of Division 3 of Title 2 of the Education Code.

(b)(1)County offices of education subject to Part 2 (commencing with Section 1000) of Division 1 of Title 1 of the Education Code.

(2)For purposes of this article, a county office of education shall be deemed a school district and the governing body of a county office of education shall be deemed the county board of education, and a reference to a school district or the governing board of a school district shall be deemed to also reference a county office of education or the county board of education, as applicable.

SEC. 5.

Section 17250.61 of the Education Code is amended to read:

17250.61.

(a) (1) A school district, with approval of its governing board, or a county superintendent of schools, may procure alternative design-build contracts for projects in excess of five million dollars ($5,000,000), awarding the contract to either the low bid or the best value.

(2) Notwithstanding any other law, the county superintendent of schools shall have exclusive authority to award alternative design-build contracts pursuant to this chapter on behalf of a county office of education and county board of education.

(b) The school district shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the school district relating to the solicitation of an alternative design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to each school district entering into alternative design-build contracts authorized under this chapter.

SEC. 6. The Legislature finds and declares that Sections 3 and 5 of this act, amending Sections 17250.20 and 17250.61, respectively, of the Education Code, address a matter of statewide concern. Therefore, Sections 3 and 5 of this act apply to all counties, including charter counties, and the provisions of those sections shall supersede any inconsistent provisions in the charter of any county.

SEC. 5.SEC. 7.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.