AB 1026

This bill modifies certain bidding requirements related to rail projects that are

funded in any part with public funds.

Under current law, subject to several exceptions, a project involving the

construction, rehabilitation, improvement, demolition, or repair of rail property or

rail property improvements that is funded in any part with public funds must be let

by contract on the basis of competitive bids and the contract must be awarded to the

lowest responsible bidder. Current law also provides that DOT or the recipient of

public funds may not subdivide a project into more than one contract, allocate work

or workers in any manner, or transfer the jurisdiction of a project to avoid these

bidding requirements. Under one of the exceptions, the bidding requirements do not

apply if the project involves only rail property or rail property improvements owned

or leased by a railroad and the project is to be performed by the railroad using its own

employees.

Under this bill, the exception from the bidding requirements for a project

involving only rail property or rail property improvements being performed by the

railroad's own employees is eliminated. In place of this exception, the bill provides

that a railroad may perform any portion of a project using its own employees without

complying with the bidding requirements as to that portion of the project if the

portion of the project involves only rail property or rail property improvements

owned or leased by the railroad.