Plain English Breakdown
The source material does not specify the exact effective date of the law.
Raising Bidding Threshold for Water and Sanitation Districts
This law raises the dollar limit at which municipal water districts and sanitation districts must choose the lowest responsible bidder from $35,000 to $220,000.
What This Bill Does
- Increases the contract amount threshold for mandatory competitive bidding from $35,000 to $220,000.
- Requires municipal water districts and sanitation districts to award contracts below this new limit without using the lowest responsible bidder rule.
- Directs the Controller to adjust the dollar amount every year starting January 1, 2028.
- Mandates that annual adjustments reflect a percentage change as specified in the bill.
Who It Names or Affects
- Municipal water districts
- Sanitation districts
Terms To Know
- Lowest responsible bidder
- A rule requiring agencies to give a contract to the qualified company that asks for the lowest price.
- Threshold dollar amount
- The specific cost level where new rules, like competitive bidding, must start applying.
Limits and Unknowns
- The text does not specify the exact percentage formula used for annual adjustments.
- The effective date of this law is not listed in the provided source material.
- The bill summary does not explain how contracts between $35,000 and $220,000 will be awarded.