SB 616, as introduced, Wright. Public works: payment bonds.
Existing law requires a direct contractor that is awarded a public works contract involving an expenditure greater than $25,000 to give a payment bond to, and approved by, the officer or public entity by when the contract was awarded, as specified.
This bill would make nonsubstantive changes to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 9550 of the Civil Code is amended to
2read:
(a) A direct contractor that is awarded a public works
4contract involving an expenditurebegin delete in excess ofend deletebegin insert greater thanend insert
5 twenty-five thousand dollars ($25,000) shall, before
6commencement of work, give a payment bond to and approved
7by the officer or public entity by whom the contract was awarded.
8(b) A public entity shall state in its call for bids that a payment
9bond is required for a public works contract involving an
10expenditurebegin delete in excess ofend deletebegin insert
greater thanend insert twenty-five thousand dollars
11($25,000).
P2 1(c) A payment bond given and approved under this section will
2permit performance of and provide coverage for work pursuant to
3a public works contract that supplements the contract for which
4the bond is given, if the requirement of a new bond is waived by
5the public entity.
6(d) For the purpose of this section, a design professional is not
7deemed a direct contractor and is not required to give a payment
8bond.
9(e) This section does not apply to a public works contract with
10a “state entity” as defined in subdivision (d) of Section 7103 of
11the Public Contract Code.
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