Bill Text: CA AB3290 | 2019-2020 | Regular Session | Introduced
Bill Title: The Subletting and Subcontracting Fair Practices Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-04-24 - Referred to Com. on B. & P. [AB3290 Detail]
Download: California-2019-AB3290-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 3290
| Introduced by Assembly Member Eduardo Garcia (Coauthor: Assembly Member Blanca Rubio) |
February 21, 2020 |
An act to amend Section 4107 of the Public Contracts Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 3290, as introduced, Eduardo Garcia.
The Subletting and Subcontracting Fair Practices Act.
The Subletting and Subcontracting Fair Practices Act generally prohibits a prime contractor whose bid is accepted by an awarding authority from substituting a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority may consent to the substitution of another person as a subcontractor in specified situations.
This bill would provide that only a prime contractor may request and initiate the substitution of a subcontractor listed in the original bid and that these provisions do not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 4107 of the Public Contract Code is amended to read:4107.
(a) A prime contractor whose bid is accepted may not:(a)
(1) Substitute a person as subcontractor in place of the subcontractor listed in the original bid, except that the awarding authority, or its duly authorized officer, may, except as otherwise provided in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the following situations:
(1)
(A) When the subcontractor listed in the bid, after having had a reasonable opportunity to do so, fails or refuses to execute a written contract for the scope of work specified in the subcontractor’s bid and at the price specified in the subcontractor’s bid, when that written contract, based upon the general terms, conditions, plans, and specifications for the project involved or the terms of that subcontractor’s written bid, is presented to the subcontractor by the prime contractor.
(2)
(B) When the listed
subcontractor becomes insolvent or the subject of an order for relief in bankruptcy.
(3)
(C) When the listed subcontractor fails or refuses to perform his or her their subcontract.
(4)
(D) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Section 4108.
(5)
(E) When the prime contractor demonstrates to the awarding authority, or its duly authorized officer, subject to the further provisions set forth in Section 4107.5, that the name of the subcontractor was listed as the result of an inadvertent clerical error.
(6)
(F) When the listed subcontractor is not licensed pursuant to the Contractors License Law.
(7)
(G) When the awarding authority, or its duly authorized officer, determines that the work performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or that the subcontractor is substantially delaying or disrupting the progress of the work.
(8)
(H) When the listed subcontractor is ineligible to work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code.
(9)
(I) When the awarding authority determines that a listed subcontractor is not a responsible contractor.
Prior to approval of the prime contractor’s request for the substitution, the awarding authority, or its duly authorized officer, shall give notice in writing to the listed subcontractor of the prime contractor’s request to substitute and of the reasons for the request. The notice shall be served by certified or registered mail to the last known address of the subcontractor. The
listed subcontractor who has been so notified has five working days within which to submit written objections to the substitution to the awarding authority. Failure to file these written objections constitutes the listed subcontractor’s consent to the substitution.
If written objections are filed, the awarding authority shall give notice in writing of at least five working days to the listed subcontractor of a hearing by the awarding authority on the prime contractor’s request for substitution.
(b)
(2) Permit a subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original
subcontractor listed in the original bid, without the consent of the awarding authority, or its duly authorized officer.
(c)
(3) Other than in the performance of “change orders” causing changes or deviations from the original contract, sublet or subcontract any portion of the work in excess of one-half of 1 percent of the prime contractor’s total bid as to which his or her
the prime contractor’s original bid did not designate a subcontractor.
(b) Only a prime contractor may request and initiate a substitution pursuant to subdivision (a).
(c) This section shall not prevent an awarding authority from pursuing contractual remedies against a prime contractor.
