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AB-2381 • 2026

Local Agency Public Construction Act: municipal water districts: sanitation districts: lowest responsible bidder.

Local Agency Public Construction Act: municipal water districts: sanitation districts: lowest responsible bidder.

Passed Legislature

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

Sponsor
Johnson
Last action
2026-03-09
Official status
Referred to Com. on L. GOV.
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Local Agency Public Construction Act: Water and Sanitation Districts

This law changes how water and sanitation districts in California choose contractors for big projects, making it so they only have to pick the lowest bidder if the project costs $220,000 or more.

What This Bill Does

  • Changes the amount of money that triggers a requirement for water and sanitation districts to award contracts to the lowest responsible bidder from $35,000 to $220,000.
  • Requires the State Controller to adjust this threshold annually starting in January 2028 based on changes in costs.
  • Publishes the adjusted amount each year on the Controller's website.

Who It Names or Affects

  • Municipal water districts
  • Sanitation districts

Terms To Know

lowest responsible bidder
The contractor who can do a job for the least amount of money while still meeting all requirements.
State Controller
An official in charge of managing California's finances and accounting.

Limits and Unknowns

  • Does not specify how adjustments to the threshold will be calculated.
  • The bill does not state when it would take effect after passing both chambers.

Bill History

  1. 2026-03-09 California Legislative Information

    Referred to Com. on L. GOV.

  2. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  3. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2381, as introduced, Johnson.
Local Agency Public Construction Act: municipal water districts: sanitation districts: lowest responsible 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. Under existing law, a municipal water district and a sanitation district, when letting a contract for $35,000 or more, is required to let the contract to the lowest responsible bidder.
This bill would increase that threshold dollar amount to $220,000. The bill would require the Controller, commencing January 1, 2028, to adjust that amount annually to reflect the percentage change, as specified, and publish the adjusted amount on its internet website.

Current Bill Text

Read the full stored bill text 
Download Bill PDF