BILL NUMBER: AB 1745	CHAPTERED  08/04/03

	CHAPTER  186
	FILED WITH SECRETARY OF STATE  AUGUST 4, 2003
	APPROVED BY GOVERNOR  AUGUST 3, 2003
	PASSED THE ASSEMBLY  JULY 21, 2003
	PASSED THE SENATE  JULY 17, 2003
	AMENDED IN SENATE  JUNE 23, 2003
	AMENDED IN ASSEMBLY  APRIL 10, 2003

INTRODUCED BY   Committee on Transportation (Dutra (Chair), Berg,
Chan, Chu, Kehoe, Liu, Longville, Nakano, Oropeza, Parra, and
Salinas)

                        MARCH 11, 2003

   An act to amend Section 10222 of the Public Contract Code,
relating to public contracts, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1745, Committee on Transportation.  Public contracts:  bonds.
   The State Contract Act requires that every contract provide for
the filing of separate performance and payment bonds, as provided,
and that the performance and payment bonds each equal at least 1/2 of
the contract price, subject to certain exceptions.
   This bill would give the Department of Transportation discretion
to specify that, for projects with a contract price greater than
$250,000,000, the payment bond shall be the lesser of 1/2 the
contract price or $500,000,000.
  This bill would declare that it is to take effect immediately as an
urgency statute.


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


  SECTION 1.  Section 10222 of the Public Contract Code is amended to
read:
   10222.  (a) Each bond shall equal at least one-half of the
contract price, except as otherwise provided in Section 3248 of the
Civil Code, in the California Toll Bridge Authority Act (Chapter 1
(commencing with Section 30000) of Division 7 of the Streets and
Highways Code), or in subdivision (b).
   (b) Notwithstanding subdivision (a), for projects with a contract
price greater than two hundred fifty million dollars ($250,000,000),
the Department of Transportation shall have the discretion to specify
that the payment bond shall equal not less than one-half of the
contract price or five hundred million dollars ($500,000,000),
whichever is less.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to ensure that the Department of Transportation will be
allowed to secure competitive bids for the department's urgently
needed major construction projects in the state, including bridge
seismic retrofit projects, it is necessary that this act take effect
immediately.