AB 2381: Local Agency Public Construction Act: municipal water districts: sanitation districts: lowest responsible bidder.

California · Assembly · 2025–2026 Regular Session · last verified March 10, 2026

What AB 2381 does, verified March 10, 2026

This bill aims to amend the Public Contract Code to adjust the threshold amount for competitive bidding on contracts awarded by local agencies. Currently, municipal water districts and sanitation districts must let contracts for $35,000 or more to the lowest responsible bidder. The bill would increase this threshold to $220,000. The threshold amount would be adjusted annually to reflect the percentage change, starting from January 1, 2028, and published on the Controller's internet website.

Bill journey

1IntroducedCurrent

2In CommitteePending

3First Chamber FloorPending

4Second ChamberPending

5GovernorPending

6ChapteredPending

Last action: Referred to Com. on L. GOV. (2026-03-09)Alert me

Author and sponsors

Asm. Natasha JohnsonAuthor · California State Assembly

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Recent actions3 total · showing 3

Mar. 09, 2026	Referred to Com. on L. GOV.
Feb. 21, 2026	From printer. May be heard in committee March 23.
Feb. 20, 2026	Read first time. To print.

Latest bill textIntroduced version, February 20, 2026 · 569 words

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2381

Introduced by Assembly Member Johnson

February 20, 2026

An act to amend Sections 20642 and 20783 of the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL'S DIGEST

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.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 20642 of the Public Contract Code is amended to read:

20642.

(a) (1) When work is not to be done by the district itself by force account, and the amount involved is ~~thirty-five~~ two hundred twenty thousand dollars ~~($35,000),~~ ($220,000) or more, any contract for the doing of the work shall be let to the lowest responsible bidder, after publication, in the manner prescribed by the board, of notices inviting bids therefor. ~~However,~~

(2) Commencing January 1, 2028, the Controller shall adjust the amount specified in this subdivision annually to reflect the percentage change in the Engineering News-Record Construction Cost Index (20-city average) and publish the adjusted amount on its internet website.

(b) However, the board may reject any and all proposals.

SEC. 2.

Section 20783 of the Public Contract Code is amended to read:

20783.

(a) (1) When work is done by the district itself by force account, the amount shall not exceed five thousand dollars ($5,000). ~~When~~

(2) (A) When
the expenditure required for the work exceeds ~~thirty-five~~ two hundred twenty thousand dollars ~~($35,000),~~ ($220,000) it shall be contracted for and let to the lowest responsible bidder after notice. The notice inviting bids shall set a date for the opening of bids. ~~The~~

(B) Commencing January 1, 2028, the Controller shall adjust the amount specified in this paragraph annually to reflect the percentage change in the Engineering News-Record Construction Cost Index (20-city average) and publish the adjusted amount on its internet website.
(3) The
first publication or posting of the notice shall be at least 10 days before the date of opening the bids. ~~Notice~~

(4) Notice
shall be published at least twice, not less than five days apart, in a newspaper of general circulation, printed and published in the district, or if there is none, it shall be posted in at least three public places in the district that have been designated by the district board as the places for posting this notice. ~~The~~

(5) The
notice shall distinctly state the work to be done.

(b) (1) In its discretion, the district board may reject any bids presented and readvertise. If

(2) If
two or more bids are the same and the lowest, the district board may accept the one it chooses. If

(3) If
no bids are received, the district board may have the work done without further bid.

Text of AB 2381 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions