Bill Text: CA AB541 | 2009-2010 | Regular Session | Amended

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Bill Title: Public contracts: claims: arbitration of contract

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB541 Detail]

Download: California-2009-AB541-Amended.html

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BILL NUMBER: AB 541	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Duvall

                        FEBRUARY 25, 2009

   An act to amend Section 20104 of the Public Contract Code,
relating to contracting by local agencies.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 541, as amended, Duvall. Public contracts: claims: arbitration
of contract disputes.
   Existing law provides for the resolution of public works
construction claims, as defined, arising between a contractor and a
local agency. It establishes specified procedures for the resolution
of these claims, including civil action, mediation, and arbitration.
   This bill would allow a public agency and a contractor to mutually
agree to resolve a claim through independent arbitration.
   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 20104 of the Public Contract Code is amended to
read:
   20104.  (a) (1) This article applies to all public works claims of
three hundred seventy-five thousand dollars ($375,000) or less which
arise between a contractor and a local agency.
   (2) This article shall not apply to any claims resulting from a
contract between a contractor and a public agency when the public
agency has elected to resolve any disputes pursuant to Article 7.1
(commencing with Section 10240) of Chapter 1 of Part 2 or when the
public agency and the contractor have mutually agreed to submit the
claim to independent arbitration  pursuant to Section 1670 of
the Civil Code  .
   (b) (1) "Public work" has the same meaning as in Sections 3100 and
3106 of the Civil Code, except that "public work" does not include
any work or improvement contracted for by the state or the Regents of
the University of California.
   (2) "Claim" means a separate demand by the contractor for (A) a
time extension, (B) payment of money or damages arising from work
done by, or on behalf of, the contractor pursuant to the contract for
a public work and payment of which is not otherwise expressly
provided for or the claimant is not otherwise entitled to, or (C) an
amount the payment of which is disputed by the local agency.
   (c) The provisions of this article or a summary thereof shall be
set forth in the plans or specifications for any work which may give
rise to a claim under this article.
   (d) This article applies only to contracts entered into on or
after January 1, 1991.