Public contracts: best value construction contracting for counties, cities, and the San Gabriel Valley Council of Governments.

Budget Crime Education

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Harabedian
Last action: 2026-04-23
Official status: From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 22). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

The official source material does not specify the exact financial impacts, such as savings or spending amounts.

Construction Contracts: Best Value Method

AB-1786 allows counties, general law cities, eligible joint powers authorities, and the San Gabriel Valley Council of Governments to choose construction contractors based on best value for projects over $500,000 instead of just $1 million. It also changes reporting requirements and extends program rules until 2040.

What This Bill Does

Allows counties, general law cities, eligible joint powers authorities, and the San Gabriel Valley Council of Governments to choose construction contractors based on best value for projects over $500,000 instead of just $1 million.
Removes the ability for these entities to use a best value method for repair or remodeling contracts not exceeding $3,000,000.
Requires governing bodies to report project information to legislative committees and budget groups by March 1, 2031.
Expands the crime of perjury related to false statements in construction bidding processes.
Extends program rules until January 1, 2040.

Who It Names or Affects

Counties
General law cities
Eligible joint powers authorities
The San Gabriel Valley Council of Governments

Terms To Know

Best value construction contracting: A method where the contractor is chosen based on a combination of cost and quality, not just the lowest price.
Joint powers authority: An organization formed by two or more local governments to work together on specific projects.

Limits and Unknowns

Does not specify how much money will be saved or spent.
The bill does not provide details about the impact on construction costs or quality of work.
It is unclear if there are any additional costs for local governments to implement these changes.

Bill History

2026-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 22). Re-referred to Com. on APPR.
2026-04-06 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2026-03-16 California Legislative Information
Re-referred to Com. on L. GOV.
2026-03-12 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
2026-02-23 California Legislative Information
Referred to Com. on L. GOV.
2026-02-11 California Legislative Information
From printer. May be heard in committee March 13.
2026-02-10 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1786, as amended, Harabedian.
Public contracts: best value construction contracting for counties, cities, and
joint powers authorities.
the San Gabriel Valley Council of Governments.
Existing law establishes a program to allow counties to select a bidder on the basis of best value, as defined, for construction projects in excess of $1,000,000. Existing law also authorizes counties to use a best value construction contracting method to award individual annual contracts, not to exceed $3,000,000, for repair, remodeling, or other repetitive work to be done according to unit prices, as specified. Existing law establishes procedures and criteria for the selection of a best value contractor and requires that bidders verify specified information under oath. Existing law requires the board of supervisors of a participating county to submit a report that contains specified information about the projects awarded using the best value procedures described above to the appropriate policy committees of the Legislature and the Joint Legislative Budget Committee before March 1,
2029. Existing law repeals the program provisions on January 1, 2030.
This bill would, instead, authorize a county,
general law city, and eligible joint powers authority, as defined, to utilize this program,
city, or the San Gabriel Valley Council of Governments to select a bidder on the basis of best value, as described above, for construction projects in excess of $500,000,
would make various conforming changes to the above-described provisions, and would extend the operation of those provisions until January 1, 2040.
The bill would delete the provisions authorizing counties to use a best value construction contracting method to award individual annual contracts, not to exceed $3,000,000, for repair, remodeling, or other repetitive work to be done according to unit prices, as specified.
With regard to the above-specified reporting requirement, the bill would, instead, require the governing body of a participating county, city, or
eligible joint powers authority
the San Gabriel Valley Council of Governments
to submit the report, as specified, to the appropriate policy committees of the Legislature and the Joint Legislative Budget Committee before March 1, 2031. The bill would expand the crime of perjury by extending the operation of the program and expanding the program to
general law
cities and
eligible joint powers authorities,
the San Gabriel
Valley Council of Governments,
thereby imposing a state-mandated local program.
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.

Current Bill Text

Read the full stored bill text

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