BILL NUMBER: AB 3024	CHAPTERED  07/08/08

	CHAPTER  79
	FILED WITH SECRETARY OF STATE  JULY 8, 2008
	APPROVED BY GOVERNOR  JULY 8, 2008
	PASSED THE SENATE  JUNE 26, 2008
	PASSED THE ASSEMBLY  MAY 1, 2008
	AMENDED IN ASSEMBLY  APRIL 15, 2008

INTRODUCED BY   Assembly Member Duvall

                        FEBRUARY 22, 2008

   An act to amend Section 7103 of the Public Contract Code, relating
to payment bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3024, Duvall. Payment bonds: public works.
   Existing law requires every original contractor who is awarded a
public works contract by a state entity, as defined, involving an
expenditure in excess of $5,000, to file a payment bond.
   This bill instead would require every original contractor who is
awarded a public works contract by a state entity involving an
expenditure in excess of $25,000, to file a payment bond.


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

  SECTION 1.  Section 7103 of the Public Contract Code is amended to
read:
   7103.  (a) (1) Every original contractor to who is awarded a
contract by a state entity, as defined in subdivision (d), involving
an expenditure in excess of twenty-five thousand dollars ($25,000)
for any public work shall, before entering upon the performance of
the work, file a payment bond with and approved by the officer or
state entity by who the contract was awarded. The bond shall be in a
sum not less than one hundred percent of the total amount payable by
the terms of the contract.
   (2) The state entity shall state in its call for bids for any
contract that a payment bond is required in the case of such an
expenditure.
   (b) A payment bond filed and approved in accordance with this
section shall be sufficient to enter upon the performance of work
under a duly authorized contract that supplements the contract for
which the payment bond was filed if the requirement of a new bond is
waived by the state entity.
   (c) For purposes of this section, providers of architectural,
engineering, and land surveying services pursuant to a contract with
a state entity for a public work shall not be deemed an original
contractor and shall not be required to post or file the payment bond
required in subdivisions (a) and (b).
   (d) For purposes of this section, "state entity" means every state
office department, division, bureau, board, or commission, but does
not include the Legislature, the courts, any agency in the judicial
branch of government, or the University of California. All other
public entities shall be governed by Section 3247 of the Civil Code.
   (e) For purposes of this section, "public work" includes the
erection, construction, alteration, repair, or improvement of any
state structure, building, road, or other state improvement of any
kind.