CPWM Regulatory Compliance & Risk Management 5 — Questions and Answers
Question 1: Under the Resource Conservation and Recovery Act (RCRA), which characteristic is NOT used to determine if a waste is classified as hazardous?
- Ignitability
- Corrosivity
- Radioactivity (Correct answer)
- Reactivity
Correct answer: Radioactivity
RCRA defines hazardous waste by four characteristics: ignitability, corrosivity, reactivity, and toxicity — radioactivity is regulated under separate nuclear laws, not RCRA.
Question 2: A public works agency must conduct a formal bidding process for construction contracts exceeding what threshold under most state competitive bidding laws?
- $5,000
- $10,000–$25,000 (varies by state) (Correct answer)
- $100,000
- $500,000
Correct answer: $10,000–$25,000 (varies by state)
Most states require formal competitive sealed bidding for public construction contracts exceeding thresholds typically ranging from $10,000 to $25,000, though exact amounts vary by jurisdiction.
Question 3: Which insurance coverage protects a public agency against claims of bodily injury or property damage caused by agency operations or employees?
- Professional liability insurance
- Commercial general liability (CGL) insurance (Correct answer)
- Directors and officers (D&O) insurance
- Cyber liability insurance
Correct answer: Commercial general liability (CGL) insurance
Commercial general liability insurance covers third-party claims of bodily injury and property damage arising from the agency's operations, products, and completed work.
Question 4: When a public works project requires acquisition of private property, which constitutional provision mandates just compensation to property owners?
- First Amendment
- Fourth Amendment
- Fifth Amendment Takings Clause (Correct answer)
- Fourteenth Amendment Due Process Clause
Correct answer: Fifth Amendment Takings Clause
The Fifth Amendment's Takings Clause prohibits the government from taking private property for public use without paying just compensation to the owner.
Question 5: A public agency's drug and alcohol testing program for safety-sensitive employees in transportation roles must comply with which federal regulation?
- 49 CFR Part 40 (DOT Drug and Alcohol Testing) (Correct answer)
- 29 CFR Part 1910 (OSHA General Industry)
- 40 CFR Part 261 (Hazardous Waste)
- 23 CFR Part 635 (Highway Construction)
Correct answer: 49 CFR Part 40 (DOT Drug and Alcohol Testing)
49 CFR Part 40 establishes DOT procedures for transportation workplace drug and alcohol testing programs, including those for CDL drivers in public works fleets.
Question 6: Which legal concept shields government entities from lawsuits without their consent, though it has been significantly limited by state tort claims acts?
- Qualified immunity
- Sovereign immunity (Correct answer)
- Governmental function immunity
- Official capacity immunity
Correct answer: Sovereign immunity
Sovereign immunity is the historical doctrine that government cannot be sued without consent; most states have waived portions of this immunity through tort claims acts.
Question 7: A public works department seeks to verify that a contractor's insurance certificates are valid and that the agency is properly named. What document should the agency require?
- Certificate of Insurance with Additional Insured Endorsement (Correct answer)
- Contractor's Financial Statement
- Performance Bond only
- General Liability Summary Sheet
Correct answer: Certificate of Insurance with Additional Insured Endorsement
A Certificate of Insurance accompanied by an Additional Insured Endorsement formally confirms active coverage and extends the policy's protection to the agency.
CPWM Regulatory Compliance & Risk Management 5
Under the Resource Conservation and Recovery Act (RCRA), which characteristic is NOT used to determine if a waste is classified as hazardous?