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ASSEMBLY BILL 2660 (AGUIAR – 1996)
CHAPTER 1040, STATUTES OF 1996 AB 2660
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Government Code sections 5956, et seq., were enacted by Assembly Bill 2660 of 1996. (See Exhibit A, #1i) Assembly member Fred Aguiar introduced the legislation on February 21, 1996 at the request of the Consulting Engineers and Land Surveyors of California (CELSOC). (See Exhibit A, #1a and #21a, document A-1)
The measure was assigned to two Assembly policy committees, the Committee on Consumer Protection, Governmental Efficiency, and Economic Development and the Committee on Local Government where policy issues raised by the bill were considered. (See Exhibit A, #2, #3, and #5) After approval by these Committees, the Assembly Committee on Appropriations examined its fiscal ramifications. (See Exhibit A, #8) The Assembly amended the bill on April 22 and April 29, 1996. (See Exhibit A, #1b, #1c, and #2) Assembly Bill 2660 was approved by the Assembly and forwarded to the Senate on May 30, 1996. (See Exhibit A, #2)
While in the Senate, the Committee on Governmental Organization and the Committee on Local Government considered the policy issues raised by the bill. (See Exhibit A, #2, #12, and #14) Subsequent to approval by these Committees, the measure was assigned to the Senate Committee on Appropriations that examined its fiscal implications. (See Exhibit A, #16) The Senate made five amendments to Assembly Bill 2660 between June and August of 1996. (See Exhibit A, #1d through #1h and #2) The Senate thereafter approved the bill and returned it to the Assembly. (See Exhibit A, #2)
The Assembly approved the Senate amendments and Assembly Bill 2660 was forwarded to the Governor on August 30, 1996. Governor Pete Wilson signed the bill on September 28, 1996, and the Secretary of State recorded it the following day as Chapter 1040 of the Statutes of 1996. (See Exhibit A, #1i and #2)
The Concurrence in Senate Amendments analysis prepared by the Assembly Committee on Consumer Protection, Governmental Efficiency and Economic Development as last amended on August 19, 1996 summarized Assembly Bill 2660 as follows:
SUMMARY: Authorizes local governmental agencies to utilize private sector investment capital to study, design, construct, finance, and operate fee-producing infrastructure facilities, as specified. Requires local governmental agencies to utilize a competitive negotiation process when soliciting proposals and entering into agreements with private entities pursuant to the provisions of this bill. Provides that the infrastructure developed by a private entity may be owned by a governmental agency, and the agreement with the private entity shall provide for the lease of the facilities to, or ownership by, the private entity for a term up to 35 years.
(See Exhibit A, #20, page 1)
Specifically, the bill sets forth legislative findings and expresses the intent of the Legislature in regards to the provisions proposed. (See Exhibit A, #1h [sections 5956, 5956.1, and 5956.2] and #18b)
Background on this measure was provided in the analysis prepared by the Senate Committee on Local Government, which stated:
The state’s Local Agency Public Construction Act establishes the parameters for awarding public works contracts by local agencies.
Generally, state law requires that on local public works projects exceeding specified dollar limits (cities, $5,000/ counties $4,000), the governing board shall take competitive bids and contract out projects to the lowest responsible bidder after complying with pre‑bid public notice requirements. In an emergency, however, local agency governing boards, by a super majority vote, are generally permitted to make repairs or replace facilities without taking competitive bids.
With the aging of a large number of public facilities, there is a growing need for their repair, renovation or replacement. Proponents seek to contract out the financing and operation of local government infrastructure projects.
(See Exhibit A, #14, page 1)