BILL ANALYSIS �
AB 1353
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Date of Hearing: April 3, 2013
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 1353 (Linder) - As Introduced: February 22, 2013
SUBJECT : Public Contracts
SUMMARY : Defines who is required to be listed as a
subcontractor when seeking bids for any public work or
improvement project.
Specifically, this bill :
1)Requires an agency that is seeking bids for a public work or
improvement project to provide in the specifications for the
work a requirement that bids include the name and business
location of each subcontractor.
2)Defines subcontractor as someone licensed by the Contractors
State License Board who will perform work or render services
to the prime contractor related to the construction of the
project if the subcontractor's cost of the work exceeds half
of one percent of the prime contractor's total bid or $10,000
(whichever is greater).
EXISTING LAW Current law already requires agencies that are
seeking bids to specify the inclusion of the names and business
locations of subcontractors if the subcontractor's project cost
exceeds half of one percent of the prime contractor's total bid
or $10,000 (whichever is greater). However, current law does not
define subcontractor as someone licensed by the Contractors
State License Board. Instead, it defines subcontractor as
someone "licensed by the State of California."
FISCAL EFFECT : Unknown
COMMENTS : The bill defines subcontractor as someone licensed
by the Contractors State License Board (CSLB). The CSLB licenses
and regulates the state's construction industry. It is
responsible for administering exams to prospective contractors,
issuing licenses and investigating complaints against
contractors. California has about 300,000 licensed contractors
in 43 different licensing classifications.
This bill clarifies who is defined as a subcontractor as it
AB 1353
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pertains to listing requirements on public work or improvement
bid documents. According to the author, current language has
caused confusion because in the construction industry a
subcontractor is someone with a contractor's license who is
doing some of the work required by the prime contract while in a
legal sense a subcontractor can be anyone who has a contract
with the contractor.
The author provided examples that the lessor of trailers for an
onsite office or someone who supplies a construction site with
drinking water could be considered a subcontractor under current
law. The author's stated intent is to clarify the definition of
subcontractor to be in line with the construction industry's
definition.
REGISTERED SUPPORT / OPPOSITION :
Support
Air Conditioning Trade Association
Engineering Contractors' Association
Marin Builders Association
Plumbing-Heating-Cooling Contractors Association of California
California Fence Contractors' Association
California Chapter of American Fence Association
Flasher Barricade Association
Western Electrical Contractors Association
Opposition
None on file
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600