Public works projects.

(1) Existing law prohibits any state agency from expending funds appropriated for capital outlay projects, and prohibits the expenditure of funds appropriated for design-build projects, until the Department of Finance and the State Public Works Board have approved preliminary plans for the project. Existing law authorizes the board to augment a major capital outlay or design-build project in an amount of up to 20% of the total appropriation for that project. Prior to board action on any capital outlay or design-build appropriation, the department is required to certify that the requested action is in accordance with the legislatively approved scope and cost. Existing law also requires, in specified circumstances, the board to defer action with respect to the approval of preliminary plans for a capital outlay project and the approval of concept drawings and performance criteria for a design-build project. Existing law authorizes the Director of General Services to enter into only 7 design-build contracts pursuant to these provisions, as specified, and effective July 1, 2009, provides that specified provisions remain operative for these 7 design-build projects. This bill would make clarifying changes to the prohibition on the expenditure of capital outlay or design-build funds prior to approval by the Department of Finance and the State Public Works Board. The bill would provide that for specified projects, the department has full authority to determine which fund sources will bear all or part of a board augmentation. The bill would delete the department's certification requirement and, instead, authorize the department to change the administratively or legislatively approved scope for major capital outlay or design-build projects and to report the changes and associated cost implications, as prescribed. The bill would also delete the board's requirement to defer action, in certain circumstances, with respect to the approval of preliminary plans for a capital outlay project or the approval of concept drawings and performance criteria for a design-build project and, instead, require the department to report to specified individuals 20 days prior to the proposed board approval. The bill would make further technical changes. (2) Existing law establishes the State Public Works Board and prescribes its membership, which includes the Director of Finance. This bill would permit the Director of Finance to designate a deputy to serve as his or her representative to the board and would require that the Director of Finance or his or her representative be chairperson of the board. The bill would authorize the board to delegate its powers to one or more of its members, or to any officer or employee of the board, as specified. (3) Existing law establishes the powers of the State Public Works Board, for the purposes of the State Building Construction Act of 1955, including the authority to lease property as lessor, with the approval of the Department of General Services, to state agencies, and the authority to contract with other state agencies for the use of real property owned by the state, as specified. Existing law establishes certain definitions in this regard. Existing law requires that the board contract with the Department of General Services for the maintenance, repair, and equipment of all public buildings constructed, acquired, or operated by the board, when the Department of General Services elects to furnish maintenance and repair. This bill would authorize the board to exercise its power to lease property, as described above, without the approval of the Department of General Services, would authorize the board to contract or enter into a lease with other state agencies for the use of real property without regard to whether the property is owned by the state, would revise the definition of public building, and would establish a definition of state agency that would include all state agencies, organizations, and offices, without limitation, including the University of California and the Judicial Council. The bill would also repeal provisions requiring the board to contract with the Department of General Services for the maintenance, repair, and equipment of all public buildings, as described above. (4) Existing law requires, except as specified, that the plans and specifications for any public building constructed pursuant to the State Building Construction Act of 1955 be prepared by the Department of General Services and that any building constructed under the act be constructed in accordance with the State Contract Act. This bill would repeal these provisions of law. (5) Existing law permits the Department of General Services, or another state agency with the approval of the department, to lease from the State Board of Public Works, a building constructed by the board for a term not exceeding 35 years, as specified. This bill would provide that the leases described above do not require the approval of the Department of General Services, that a state agency or the board may act as either lessee or lessor, and that these provisions apply to any public building, regardless of whether it was constructed by the board. (6) Existing law permits the State Board of Public Works, exclusively for the purpose of providing the financing for public buildings or equipment through the issuance of certain indebtedness, to buy or lease from any community college district, the Trustees of the California State University, or the Regents of the University of California public facilities and to sell or lease those public facilities back to the relevant entity. Existing law prescribes the terms of such a sale or lease and the public facilities or equipment to which these provisions apply. This bill would revise and recast these provisions to authorize the board, until July 1, 2015, to acquire by lease from any state agency, as defined, buildings that are under the agency's control, for the purpose of facilitating the financing of public buildings, and then lease those buildings back to the agency and pledge the revenues, rentals, or receipts of the lease to secure the repayment of revenue bonds, notes, or certificates issued by the board. The bill would provide that the board is not required to apply the proceeds of the board's bonds, notes, or certificates to acquire, design, construct, or otherwise improve the same public buildings that are leased pursuant to these provisions. The bill would specify the characteristics of the buildings to which these leases would apply and provide that the leases do not require the approval of the Department of General Services. The bill would require that leases made pursuant to this authority prior to July 1, 2015, continue in full force and effect in accordance with their applicable terms, and that any acquisitions made and bonds issued pursuant to this authority prior to that date are binding and valid. The bill would also make conforming, technical changes. (7) Existing law authorizes the State Public Works Board to issue bonds, notes, or other obligations to finance the acquisition or construction of a public building, facility, or equipment, as authorized by the Legislature. Existing law provides that this authorization be applicable to, but not limited to, debt service authorized by appropriations of the Legislature made prior to the effective date of the act adding this provision. This bill would repeal and reinstate this provision of law. (8) Existing law appropriates from each special fund in the State Treasury from which an appropriation is available for acquisition of real property or for construction and equipment of state public works projects an amount sufficient to provide for the payment of the project if the project cannot be undertaken due to insufficient appropriation of funds, as described. This bill would recast these provisions of law and appropriate, without regard to fiscal years, any augmentation of an appropriation for a state public works project from the General Fund or any other fund from which a capital outlay appropriation has been authorized. (9) This bill would declare that it is to take effect immediately as an urgency statute.