Controller Malia M. Cohen’s Sponsored Bill to Increase Bid Limits for Public Construction Projects Will Improve Efficiency and Increase Flexibility for Public Agencies[...]

SACRAMENTO - Governor Gavin Newsom has signed AB 2192 (Carrillo) into law. This measure will improve efficiency and increase flexibility for public agencies by increasing bid limits under the California Uniform Public Construction Cost Accounting Act (Act) to keep up with rising costs.

The Act was enacted in 1983 to offer agencies an efficient process for executing smaller public works projects while ensuring rigorous accounting standards for these projects. This bill increases from $60,000 to $75,000 the limit under which a public agency, through its own Force Account, can use its own workforce, negotiated contract, or purchase order to complete the work. It also increases from $200,000 to $ 220,000 the limit under which a local agency can execute a contract through an informal bidding process. The Act is a voluntary program available to all public agencies in the State, but it applies only to those public agencies that have "opted in" as prescribed by the Act. These changes keep these limits in line with increasing project costs, speeding up the award process and expediting project delivery.

"The increase of the public agency construction bid limit to $75,000 will assist local agencies to account for the rising costs of construction and will provide them with more flexibility in the execution of public works projects that are under $ 220,000." stated Controller Cohen. "As the state's chief fiscal officer, AB 2192 is a fiscally responsible measure that will reduce the time, effort, and expense associated with bidding projects that will in improves the state's infrastructure and the quality of life for all Californians."

According to Assemblymember Juan Carillo, "AB 2192 is a key step toward addressing California's housing shortage while improving our public works projects statewide. The adopted changes are designed to reduce administrative burdens on public agencies by adjusting current bidding limits to reflect inflation and the rising costs of construction. This will help us promote uniformity and fairness in cost accounting standards for construction work performed or contracted. By making it easier for public agencies to build efficiently, we can increase the construction of affordable housing and infrastructure that our communities desperately need. I would like to thank Governor Newsom for his leadership and support to sign this important piece of legislation."

"The construction industry is very thankful for both Controller Cohen's and Assemblymember Carrillo's efforts in passing AB 2192, which will put in place statutory updates that ensure proper oversight and implementation of the Act. The bill also increases the bid limits for compliance, which will advance the Commission's on-going goal of attracting all public agencies in California to voluntarily opt into the Act by making the Act as appealing as possible," stated Michelle Pickens, Executive Director of the Construction Industry Force Account Council.

"On behalf of our more than 1,000 special district members delivering local services to millions of Californians, the California Special Districts Association applauds Governor Newsom for signing AB 2192, and thanks State Controller Cohen for her leadership in sponsoring this important measure authored by Assembly Member Juan Carrillo. AB 2192 gives local agencies greater flexibility to efficiently and effectively deliver critical infrastructure projects essential to the state's housing goals. Over 400 special districts have voluntarily joined this program and, with continued improvements like those enacted by AB 2192, we are confident we can grow both the participation and the benefits for the communities we serve," stated Neil McCormick, Chief Executive Officer of the California Special Districts Association.

As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state's financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation's two largest public pension funds. Follow the Controller on X at @CAController and on Facebook at California State Controller's Office.

###