*  LEGISLATIVE ADVOCACY  -Page 2

RECAPPING THE CAPITOL

This is ASAC’s preliminary list of bills that affect Subcontractors. Your Government Relations Committee is analyzing them and will recommend positions of “Support”, “Oppose” or “Seek to Amend” those that are most important. AB 1354 is our bill. This is only a partial list which is divided by general categories. Hearings start in a month and may last until September. Most bills will, if signed by the Governor, become effective January 1, 2012 unless they are “urgency bills”.

ASAC recently convened the annual “Construction Industry Round Table” among a dozen associations that lobby these bills. 2011 will be a busy year for us; please stand ready to help by communicating with certain legislators when asked!

BONDING, LIENS, & INSURANCE CLAIMS

SB 190(Lowenthal) Mechanics liens.
Summary: Would require that a person forfeit his or her lien if the person willfully includes labor or materials in a lien claim that were not furnished to the property in the claim.

SB 221(Simitian) Small claims court: jurisdiction.
Summary: Would increase the jurisdiction of the small claims court to $10,000 from $7,500.

SB 293(Padilla) Payment bonds: laborers.
Summary: A preliminary notice to enforce a claim against a payment does not apply to a laborer. The bill might be amended to effect late bond claims for all subcontractors.

SB 424(Rubio) Mechanics liens: design professionals.
Summary: Would authorize a design professional to convert a recorded design professional lien to a mechanics lien.

CONSTRUCTION

AB 1342(Dickinson) Public contracts: roof projects.
Summary: Requires specifications for a roof project to contain certain information regarding manufacturers, and would prohibit specifications requiring proprietary products or a proprietary warranty.
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INSURANCE

SB 474(Evans) Insurance: construction.
Summary: Would express the intent of the Legislature to enact legislation to govern the use of indemnification and additional-insured provisions in construction contracts in order to provide for the equitable resolution of claims fraud, willful injury, or any other violation of law. Expect significant amendments.

MISCELLANEOUS

AB 249(Berryhill, Bill) Contractors.
Summary: Would authorize a person who utilizes the services of an unlicensed contractor for the construction or improvement of residential property, as specified, to bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the contractor for performance of any act or contract during the time the contractor was not properly licensed.

SB 341(Lowenthal) Vehicles: dump trucks: backup alarms.
Summary: Requires a dump truck to be equipped with an automatic backup audible alarm.

SB 541(Price) Contractors' State License Board.
Summary: Would extend the operation of the CSLB until January 1, 2016.

SUBCONTRACTOR BIDDING... RIGHTS & PROTECTIONS

AB 356(Hill) Public works projects: local hiring policies.
Summary: Would exempt any public works project that is funded, in whole or in part, with state funds from a policy imposed by a local agency that mandates that any portion or percentage of project work hours be performed by local residents.

AB 457(Wagner) Public works contracts: relief for bidders.
Summary: Would entitle a bidder who successfully challenges the award of a contract determined to be invalid due to errors or omissions of the public entity to recover costs and attorney's fees incurred in pursuing the challenge.
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AB 720(Hall) Public contracts: uniform construction cost accounting provisions: alternative procedures.
Summary: Would repeal the law that specifies that a board of supervisors or a county road commissioner is not prohibited from using alternative procedures governing county highway contracts.

AB 780(Calderon, Charles) Sales and use taxes: exemption: fixed price contract.
Summary: Would, for any increase or extension of counties and cities, also impose a sales and use tax at a combined rate of 1% the sales and use tax rate on and after July 1, 2011, exclude from that increased rate of tax, the gross receipts from certain sales and uses of tangible personal property that are subject to a fixed price pursuant to a contract entered into prior to the operative date of the sales and use tax rate increase.

AB 948(Furutani) Public contracts: competitive bidding: best value.
Summary: Would provide that bid evaluation and selection for these contracts may include competitive means for obtaining best value.

AB 1354(Huber) Public works: payments: retention. (ASAC’s bill)
Summary: 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.

SB 497(Rubio) Public contracts: bid preferences.
Summary: Would require a state agency that accepts bids or proposals for a contract for supplies, materials, or equipment to provide a preference of 5 percent to a California business.

SB 555(Hancock) Public contracts: state: bid preferences.
Summary: Would require a state agency that accepts bids or proposals for specified contracts for goods or services exceeding $1,000,000, or for the distribution of funds pursuant to the federal American Recovery and Reinvestment Act of 2009, on or before July 1, 2017, to provide a 5% preference, as provided, to a business that directly provides the goods or services when 90% of the employees of the business performing work on the contract reside in the state. This bill would state that these bidding preferences are not applicable to contracts that are subject to the State Contract Act or to contracts for specified professional services.

SB 693(Dutton) Public contracts: local agencies.
Summary: Would allow private-public partnership agreements for transportation projects.

 Respectfully,
Skip Daum
ASAC Legislative Advocate
ASACLobbyist@aol.com

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(Page updated March 2012)