Today's Law As Amended


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AB-1580 Major infrastructure construction projects: oversight committees.(2019-2020)



As Amends the Law Today


SECTION 1.

 Chapter 13 (commencing with Section 4570) is added to Division 5 of Title 1 of the Government Code, to read:

CHAPTER  13. Major Infrastructure Construction Projects Oversight Committees
4570.
 (a) (1) A state agency undertaking a publicly funded major infrastructure construction project that is estimated to cost one billion dollars ($1,000,000,000) or more shall form an oversight committee subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) and shall develop and use risk management plans, as described in subdivision (b), throughout the course of the project.
(2) The oversight committee shall be composed of at least all of the following members selected by the state agency or agencies undertaking the project:
(A) At least three members each from three different state agencies involved in the project. If there are fewer than three other state agencies involved in the project, the number of members required by this paragraph shall be reduced accordingly.
(B) At least five additional members to support the ability of its members to conduct day-to-day business.
(b) To ensure that the state agency manages the risks associated with a publicly funded major infrastructure construction project, the state agency shall, at a minimum, take all of the following actions:
(1) Establish a comprehensive risk management plan that clearly defines roles and responsibilities for risk management and addresses the process by which it will identify and quantify project risks, implement and track risk response activities, and monitor and control risks throughout the duration of the project.
(2) Quantify the effect of identified risks in financial terms.
(3) Develop and maintain documents to track identified risks and related mitigation steps.
(4) Regularly update its estimates of capital and capital outlay support costs.
(5) Regularly reassess its reserves for potential claims and unknown risks, incorporating information related to risks identified and quantified through its risk assessment processes.
(6) Regularly integrate estimates for capital, capital outlay support costs, and contingency reserves into a programwide report.
(7) When unexpected events occur, quickly inform the committee, created in subdivision (a), describing the effects of these key events on the project’s overall budget and schedule.
(c) The oversight committee shall act as the authority for critical decisions regarding the implementation of the project’s risk management plan and shall have sufficient staff to support decisionmaking.
(d) This section shall not apply to a transportation infrastructure construction project.
(e) For purposes of this chapter, “state agency” includes every state office, officer, department, division, bureau, board, and commission, including the California State University.