CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1011Introduced by Assembly Member WeberFebruary 15, 2023 An act to amend Section 20104.70 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 1011, as introduced, Weber. Local public contracts: second lowest bidder.Existing law, the Local Agency Public Construction Act, sets forth the requirements for competitive bidding on various types of contracts awarded by local agencies. The act authorizes the 2nd lowest bidder to bring an action in superior court if the 2nd lowest bidder suffers damages as a result of the successful bidders violation of specified laws, but prohibits the action if the 2nd lowest bidder has been convicted of a violation of specified labor laws or unemployment insurance laws within one year prior to fulfilling the bid for public work and has failed to take affirmative steps to correct the violation.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 20104.70 of the Public Contract Code is amended to read:20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.(c) For purposes of an action brought pursuant to this section:(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1011Introduced by Assembly Member WeberFebruary 15, 2023 An act to amend Section 20104.70 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 1011, as introduced, Weber. Local public contracts: second lowest bidder.Existing law, the Local Agency Public Construction Act, sets forth the requirements for competitive bidding on various types of contracts awarded by local agencies. The act authorizes the 2nd lowest bidder to bring an action in superior court if the 2nd lowest bidder suffers damages as a result of the successful bidders violation of specified laws, but prohibits the action if the 2nd lowest bidder has been convicted of a violation of specified labor laws or unemployment insurance laws within one year prior to fulfilling the bid for public work and has failed to take affirmative steps to correct the violation.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1011
Introduced by Assembly Member WeberFebruary 15, 2023
Introduced by Assembly Member Weber
February 15, 2023
An act to amend Section 20104.70 of the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1011, as introduced, Weber. Local public contracts: second lowest bidder.
Existing law, the Local Agency Public Construction Act, sets forth the requirements for competitive bidding on various types of contracts awarded by local agencies. The act authorizes the 2nd lowest bidder to bring an action in superior court if the 2nd lowest bidder suffers damages as a result of the successful bidders violation of specified laws, but prohibits the action if the 2nd lowest bidder has been convicted of a violation of specified labor laws or unemployment insurance laws within one year prior to fulfilling the bid for public work and has failed to take affirmative steps to correct the violation.This bill would make nonsubstantive changes to those provisions.
Existing law, the Local Agency Public Construction Act, sets forth the requirements for competitive bidding on various types of contracts awarded by local agencies. The act authorizes the 2nd lowest bidder to bring an action in superior court if the 2nd lowest bidder suffers damages as a result of the successful bidders violation of specified laws, but prohibits the action if the 2nd lowest bidder has been convicted of a violation of specified labor laws or unemployment insurance laws within one year prior to fulfilling the bid for public work and has failed to take affirmative steps to correct the violation.
This bill would make nonsubstantive changes to those provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 20104.70 of the Public Contract Code is amended to read:20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.(c) For purposes of an action brought pursuant to this section:(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 20104.70 of the Public Contract Code is amended to read:20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.(c) For purposes of an action brought pursuant to this section:(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
SECTION 1. Section 20104.70 of the Public Contract Code is amended to read:
### SECTION 1.
20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.(c) For purposes of an action brought pursuant to this section:(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.(c) For purposes of an action brought pursuant to this section:(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.(c) For purposes of an action brought pursuant to this section:(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
20104.70. (a) (1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidders violation, as evidenced by the conviction of the successful bidder therefor, of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both. Code.
(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, Code was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.
(b) In an action brought pursuant to this section, the court may award costs and reasonable attorneys fees, in an amount to be determined in the courts discretion, to the prevailing party.
(c) For purposes of an action brought pursuant to this section:
(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750.5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.
(2) Second lowest bidder means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.
(3) The second lowest bidder and the successful bidder may include any person, firm, association, corporation, or other legal entity.
(d) A second lowest bidder who has been convicted of a violation of any provision of either or both Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, Code within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.