BILL NUMBER: AB 674	CHAPTERED  10/13/01

	CHAPTER  847
	FILED WITH SECRETARY OF STATE  OCTOBER 13, 2001
	APPROVED BY GOVERNOR  OCTOBER 12, 2001
	PASSED THE SENATE  SEPTEMBER 14, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 14, 2001
	AMENDED IN SENATE  SEPTEMBER 13, 2001

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 22, 2001

   An act to add Section 7034.1 to the Business and Professions Code,
and to add Section 21162 to the Public Contract Code, relating to
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 674, Dutra.  Contracts.
   Existing law, the Contractors' State License Law, prohibits a
licensed contractor from inserting a provision in a contract that
shields the contractor from liability when that provision has been
determined to be void or unenforceable.
   This bill would provide that a temporary employment agency,
employment referral service, labor contractor, or other similar
entity supplying an employee to a licensed contractor would not be
required to secure the payment of compensation for any employee for
whom the contractor is required to secure payment compensation.  The
bill would provide that this provision would be operative only if AB
1679 is enacted.
   Existing law prescribes bidding procedures for any improvement or
unit of work not performed by the personnel of the Santa Clara Valley
Water District if the district estimates the work to cost over
$25,000.
   This bill would authorize the district, upon approval of the board
of directors, to use prescribed bidding procedures for building
construction contracts.


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


  SECTION 1.  Section 7034.1 is added to the Business and Professions
Code, to read:
   7034.1.  The temporary employment agency, employment referral
service, labor contractor, or other similar entity that supplied the
employee pursuant to Section 7034 shall not be required to secure the
payment of compensation for any employee for whom a licensed
contractor is required to secure payment of compensation.
  SEC. 2.  Section 21162 is added to the Public Contract Code, to
read:
   21162.  Notwithstanding any other provision of law, upon the
approval of the board of directors, and without the approval of the
board of supervisors, the district may use, for building construction
contracts, the procedures described in Section 20133, as that
section reads on January 1, 2002 or as it may be amended after that
date.
  SEC. 3.  Section 7034.1 of the Business and Professions Code, as
added by Section 1 of this act, shall become operative only if
Assembly Bill 1679 of the 2001-02 Regular Session is enacted and
becomes operative on or before January 1, 2002.