Bill Text: CA AB1354 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Civil procedure: discovery: objections.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-07 - Chaptered by Secretary of State - Chapter 232, Statutes of 2012. [AB1354 Detail]

Download: California-2011-AB1354-Introduced.html

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BILL NUMBER: AB 1354	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Huber

                        FEBRUARY 18, 2011

   An act to amend Section 10261 of, and to add Section 7201 to, the
Public Contract Code, relating to public works.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1354, as introduced, Huber. Public works: payments: retention.
   Existing law authorizes the Department of General Services, or any
other department with authority to enter into contracts, to contract
with suppliers for goods and services and for public works. Existing
law provides that a contract entered into no or after January 1,
1999, relating to the construction of a public work of improvement
between the original contractor and a subcontractor or between any
subcontractors thereunder, the percentage of retention proceeds
withheld cannot exceed the percentage specified in the contract
between the public entity and the original contractor. Existing law
also prohibits the Department of General Services from making
payments upon such contracts in excess of 95% of the percentage of
actual work completed plus a like percentage of the value of material
delivered, as specified, and requires the department to withhold not
less than 5% of the contract price until final completion and
acceptance of the project.
   This bill would delete the prohibition against payments being made
in excess of 95% of the work completed and the requirement that the
department withhold not less than 5% of the contract price until
final completion and acceptance of the project, and would instead
prohibit the retention of any amount with respect to all contracts
entered into on or after January 1, 2012, between a public entity and
an original contractor, between an original contractor and a
subcontractor, and between all subcontractors thereunder, relating to
the construction of any public work of improvement, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7201 is added to the Public Contract Code, to
read:
   7201.  (a) (1) This section shall apply with respect to all
contracts entered into on or after January 1, 2012, between a public
entity and an original contractor, between an original contractor and
a subcontractor, and between all subcontractors thereunder, relating
to the construction of any public work of improvement.
   (2) Under no circumstances shall any provision of this section be
construed to limit the ability of any public entity to withhold 150
percent of the value of any disputed amount of work from the final
payment, as provided for in subdivision (c) of Section 7107. In the
event of a good faith dispute, nothing in this section shall be
construed to require a public entity to pay for work that is not
approved or accepted in accordance with the proper plans or
specifications.
   (3) For purposes of this section, "public entity" means the state,
including every state agency, office, department, division, bureau,
board, or commission, the California State University, the University
of California, a city, county, city and county, including chartered
cities and chartered counties, district, special district, public
authority, political subdivision, public corporation, or nonprofit
transit corporation wholly owned by a public agency and formed to
carry out the purposes of the public agency.
   (b) (1) A public entity shall not withhold retention proceeds when
making progress payments to a contractor for work performed.
   (2) In a contract between the original contractor and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, there shall be no withholding of
retentions.
   (c) Nothing in this section shall alter, amend, or impair the
rights, duties, and obligations of an original contractor, its
subcontractors, and all subcontractors thereunder, relating to the
construction of any public work of improvement as set forth in
Section 7200.
  SEC. 2.  Section 10261 of the Public Contract Code is amended to
read:
   10261.   Payments   For contracts entered
into on and after January 1, 2012, payments  upon contracts
shall be made as the department prescribes upon estimates made and
approved by the department  , but progress payments shall not
be made in excess of 95 percent of the percentage of actual work
completed plus a like percentage of the value of material delivered
on the ground or stored subject to or under the control of the state,
and unused, except as otherwise provided in this section. The
department shall withhold not less than 5 percent of the contract
price until final completion and acceptance of the project. However,
at any time after 95 percent of the work has been completed, the
department may reduce the funds withheld to an amount not less than
125 percent of the estimated value of the work yet to be completed,
as determined by the department, if the reduction has been approved,
in writing, by the surety on the performance bond and by the surety
on the payment bond   as set forth in Section 7201 and
no amount may be retained from any payment  . The Controller
shall draw his or her warrants upon estimates so made and approved by
the department and the Treasurer shall pay them. The funds may be
released by electronic transfer if that procedure is requested by the
contractor, in writing, and if the public entity has, in place at
the time of the request, the mechanism for the transfer.