BILL ANALYSIS                                                                                                                                                                                                    Ķ





                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular  Session


          SB 885 (Wolk)
          Version: April 18, 2016
          Hearing Date: May 3, 2016
          Fiscal: No
          Urgency: No
          TH   


                                        SUBJECT
                                           
                          Construction Contracts: Indemnity

                                      DESCRIPTION  

          This bill provides that a design professional, as defined, shall  
          only have the duty to defend himself or herself from claims and  
          lawsuits that arise out of, pertain to, or relate to, the  
          negligence, recklessness, or willful misconduct of the design  
          professional, as specified.  This bill provides that a design  
          professional shall have no duty to defend claims and lawsuits  
          against other persons or entities, and that a design  
          professional shall be obligated to reimburse reasonable defense  
          costs incurred by other persons or entities, limited to the  
          design professional's degree of fault, as determined by a court,  
          arbitration, or negotiated settlement.  This bill would apply to  
          contracts entered into on or after January 1, 2017.

                                      BACKGROUND  

          During the past several years, the Legislature has enacted a  
          number of measures intended to address the use of certain types  
          of risk shifting in indemnity agreements, particularly those  
          that appear in contracts for residential construction and public  
          works.

          In 2005, AB 758 (Calderon, Ch. 394, Stats. 2005) was enacted to  
          address alleged abuses of "Type I" indemnification clauses in  
          contracts imposed on subcontractors by builders.  These clauses  
          typically required the subcontractor to assume liability for the  
          builder's negligence and misconduct, beyond what the  








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          subcontractor would be obligated to pay under tort law in the  
          absence of the Type I agreement.  Under AB 758, all provisions  
          contained in residential construction contracts entered into  
          after January 1, 2006, that purport to indemnify the builder by  
          a subcontractor against liability for claims of construction  
          defects are unenforceable to the extent the claims pertain to,  
          or relate to the negligence of the builder or his or her agents.  
           These provisions of existing law may not be waived or modified  
          by contractual agreement, act, or omission of the parties.

          The following year, the Legislature built upon AB 758 by  
          enacting AB 573 (Wolk, Ch. 455, Stats. 2006) in response to  
          concerns that local public agencies were requiring broad  
          indemnity agreements in contracts with design professionals.   
          Those agreements were generally requiring the design  
          professional to hold the public agency harmless against the  
          conduct of the public agency or other third parties in a public  
          works project.  AB 573 provided that, for contracts entered into  
          on or after January 1, 2007, with a public agency for design  
          professional services, all provisions that purport to indemnify  
          the public agency against liability for claims against the  
          public agency, are unenforceable, except for claims that arise  
          out of, pertain to, or relate to the negligence, recklessness,  
          or willful misconduct of the design professional.

          That same year, the Legislature enacted SB 138 (Calderon, Ch.  
          32, Stats. 2007), which provided that in residential  
          construction contracts, provisions that purported to require  
          subcontractors to indemnify a general contractor or contractor  
          not affiliated with the builder would be unenforceable to the  
          extent they related to the negligence of the non-affiliated  
          general contractor or contractor.  SB 138 sought to end a  
          practice in residential construction contracting where existing  
          laws limiting risk shifting agreements were being circumvented  
          through hiring an unaffiliated general contractor or contractor  
          to act in the builder's stead in contracting with  
          subcontractors.

          Subsequently, AB 2738 (Jones, Ch. 467, Stats. 2008) was enacted  
          as a follow up to AB 758 due to concerns that builders had been  
          circumventing the intent of AB 758 by requiring subcontractors  
          to pay for the builder's defense costs that had no relation to  
          the contractor's work.  AB 2738, among other things, provided  
          that a subcontractor would have no defense or indemnity  
          obligation to a builder or general contractor for a construction  







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          defect claim unless, and until, the builder or general  
          contractor provides a written tender of the claim to the  
          subcontractor which includes all of the information provided to  
          the builder or general contractor by the claimant or claimants  
          relating to claims caused by that subcontractor's scope of work.  
           

          Finally, SB 972 (Wolk, Ch. 510, Stats. 2010) was enacted to  
          address issues left unresolved by prior legislation with respect  
          to a design professional's exposure to liability for defense  
          costs in indemnity agreements contained in contracts with public  
          agencies.  SB 972 provided, with respect to contracts and  
          solicitation documents between design professionals and public  
          agencies, that all provisions which purport to require the  
          design professional to defend the public agency under an  
          indemnity agreement, including the duty and the cost to defend,  
          are unenforceable, except for claims that arise out of, pertain  
          to, or relate to the negligence, recklessness, or willful  
          misconduct of the design professional.

          This bill would extend the protections for design professionals  
          that were enacted in SB 972.  Specifically, the bill would state  
          that a design professional shall only have the duty to defend  
          himself or herself from claims and lawsuits that arise out of,  
          pertain to, or relate to, the negligence, recklessness, or  
          willful misconduct of the design professional, commencing with  
          contracts entered into on or after January 1, 2017, whether with  
          a public agency or with another party.  The bill would state  
          that design professionals have no duty to defend claims and  
          lawsuits against other persons or entities, and that design  
          professionals are obligated to reimburse reasonable defense  
          costs incurred by other persons or entities, limited to the  
          design professional's degree of fault, as determined by a court,  
          arbitration, or negotiated settlement.  This bill would not  
          apply to contracts where a project-specific general liability  
          policy insures all project participants for general liability  
          exposure on a primary basis, or to design professionals who are  
          party to a written design-build joint venture agreement.

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that specified rules are to be applied in  
          the interpretation of a contract of indemnity, unless a contrary  
          intention appears.  Pursuant to these rules, an indemnity  
          against claims, or demands, or liability, embraces the costs of  







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          defense against such claims, demands, or liability.  (Civ. Code  
          Sec. 2778.)

           Existing law  provides that the person indemnifying is bound, on  
          request of the person indemnified, to defend actions or  
          proceedings brought against the latter in respect to the matters  
          embraced by the indemnity.  However, the person indemnified has  
          the right to conduct those defenses, if he or she chooses to do  
          so.  (Civ. Code Sec. 2778.)

           Existing case law  states that, unless otherwise provided, a duty  
          to defend under the above provisions arises out of an indemnity  
          obligation as soon as the litigation commences, and regardless  
          of whether the indemnitor (the person indemnifying) is  
          ultimately found negligent.  (Crawford v. Weather Shield (2008)  
          44 Cal.4th 541; see also UDC-Universal Development, L.P. v. CH2M  
          Hill (2010) 181 Cal.App.4th 10.)

           Existing law  states, for all contracts, and amendments thereto,  
          entered into on or after January 1, 2007, with a public agency  
          for design professional services, all provisions, clauses,  
          covenants, and agreements contained in, collateral to, or  
          affecting any such contract, and amendments thereto, that  
          purport to indemnify, including the duty and the cost to defend,  
          the public agency by a design professional against liability for  
          claims against the public agency, are unenforceable, except for  
          claims that arise out of, pertain to, or relate to the  
          negligence, recklessness, or willful misconduct of the design  
          professional.  (Civ. Code Sec. 2782.8.)

           Existing law  specifies, for purposes of the above provision,  
          that "design professional" includes all of the following:
           an individual licensed as an architect, and a business entity  
            offering architectural services, as specified;
           an individual licensed as a landscape architect, and a  
            business entity offering landscape architectural services, as  
            specified;
           an individual registered as a professional engineer, and a  
            business entity offering professional engineering services as  
            specified; and
           an individual licensed as a professional land surveyor, and a  
            business entity offering professional land surveying services,  
            as specified.

           This bill  states that commencing with contracts entered into on  







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          or after January 1, 2017, a design professional shall only have  
          the duty to defend himself or herself from claims and lawsuits  
          that arise out of, pertain to, or relate to, the negligence,  
          recklessness, or willful misconduct of the design professional.

           This bill  states that a design professional shall have no duty  
          to defend claims and lawsuits against other persons or entities.

           This bill  states that a design professional shall be obligated  
          to reimburse reasonable defense costs incurred by other persons  
          or entities, limited to the design professional's degree of  
          fault, as determined by a court, arbitration, or negotiated  
          settlement.

           This bill  specifies that its provisions do not apply to either  
          of the following:
           a claim, lawsuit, or arbitration demand where a  
            project-specific general liability policy insures all project  
            participants for general liability exposures on a primary  
            basis and also covers all design professionals for their legal  
            liability arising out of their professional services on a  
            primary basis; or
           a design professional who is a party to a written design-build  
            joint venture agreement.

           This bill  specifies that its provisions shall not be waived or  
          modified by contract, that contract provisions in violation  
          these provisions are void and unenforceable, and that the duty  
          of a design professional to defend is limited as provided in the  
          above provisions.

           This bill  makes related findings and declarations.

                                        COMMENT
           
           1.Stated need for the bill 

          According to the author:

            Senate Bill 885 prohibits contracts that require state  
            licensed design professionals, including engineers, land  
            surveyors, architects, and landscape architects, to defend  
            claims made against other persons or entities involved in  
            construction projects.  A design professional's Errors &  
            Omissions professional liability insurance does not provide  







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            coverage for the defense of claims against other persons and  
            entities involved in construction projects.  It only covers  
            claims related to the negligent acts of the design  
            professional.  A first-dollar expense obligation essentially  
            converts the design professional's firm into the functional  
            equivalent of an unlicensed insurance company.  It is in the  
            public's best interest for all persons and entities in  
            projects to defend themselves against claims of negligence or  
            error.  Design professionals will pay their proportional share  
            of defense costs.  However, when insurance coverage is not  
            available, it is unfair to obligate them to defend lawsuits  
            against other persons or entities.

            This bill:
                 Maintains the current requirement that design  
               professionals have the duty to defend claims that are the  
               result of their misconduct.
                 Specifies that design professionals do not have an  
               immediate and uninsurable duty to defend claims against  
               other persons or entities with whom they contract.
                 Requires that design professionals reimburse reasonable  
               defense costs incurred by other persons or entities with  
               whom they contract, tied directly to the design  
               professional's degree of fault.

           1.Crawford v. Weather Shield
           
          In Crawford v. Weather Shield (2008) 44 Cal.4th 541, the  
          California Supreme Court considered whether, by their particular  
          terms, the provisions of a pre-2006 residential construction  
          subcontract obliged a subcontractor to defend its indemnitee,  
          the developer-builder of the project, in lawsuits brought  
          against both parties, even though (1) a jury ultimately found  
          that the subcontractor was not negligent, and (2) the parties  
          had accepted an interpretation of the subcontract that gave the  
          builder no right of indemnity unless the subcontractor was  
          negligent.  In the contract at issue, Weather Shield (the  
          subcontractor) promised to (1) "indemnify and save [contractor]  
          harmless against all claims for damages ? losses, ? and/or theft  
          growing out of the execution of [Weather Shield's] work," and  
          (2) "at [its] own expense to defend any suit or action brought  
          against [the contractor] founded upon the claim of such  
          damage[,] loss, ? or theft."  (Id. at 547-548.) 

          The Court held that the terms of the agreement, even if strictly  







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          construed in Weather Shield's favor, obligated Weather Shield to  
          defend, from the outset, any suit against the general contractor  
          insofar that the suit was founded upon claims alleging damage or  
          loss arising from the Weather Shield's negligence.  The Court  
          interpreted Civil Code Section 2778(d), as placing in every  
          indemnity contract, unless otherwise provided, a separate duty  
          to assume the indemnitee's defense if tendered against all  
          claims embraced by the indemnity.  The Court further held that  
          this duty does not depend on the outcome of the litigation, and  
          the subcontractor thus had a contractual duty to defend the suit  
          even thought it was later found not to be negligent.  

          In reaching this decision, the Court noted that, in noninsurance  
          contexts, the indemnitee often has superior bargaining power,  
          which it may utilize to unfairly shift a disproportionate share  
          of the financial consequences of its own legal fault onto  
          someone else.  (Id. at 552.)  The Court further noted that these  
          policy reasons have been the basis for statutory limits on the  
          enforceability of noninsurance indemnity agreements in the  
          construction industry.  (Id.)  However, focusing on the specific  
          language of the contract, the Court found that Weather Shield  
          had a contractual obligation to defend claims alleging damage or  
          loss arising from Weather Shield's negligent role in the  
          residential project.    

          Two years later, the California Court of Appeal, Sixth Appellate  
          District, applied the Crawford holding in UDC-Universal  
          Development, L.P. v. CH2M Hill (2010) 181 Cal.App.4th 10.  The  
          court held that, pursuant to the specific terms of the contract  
          at issue, a design professional had a duty to defend a developer  
          of a condominium project independent from the duty to indemnify,  
          even though a jury ultimately found that the design professional  
          had not been negligent.  The court further held that the duty to  
          defend arose when the homeowners association alleged harm  
          resulting from deficient work that was within the scope of the  
          services for which the developer had retained the consultant.   
          The court found that the clause under scrutiny was comparable to  
          the one in Crawford in that it was broadly worded to apply to  
          claims connected in any way to any negligent act or omission by  
          the design professional.  (Id. at 21.)  The court thus rejected  
          the design professional's assertion that the underlying  
          plaintiff must have alleged negligence by the design  
          professional in order for the defense obligation.  The court  
          noted that such a requirement would contravene Civil Code  
          Section 2778 and the Supreme Court's admonition that a duty to  







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          defend arises out of an indemnity obligation as soon as  
          litigation commences and regardless of whether the indemnitor is  
          ultimately found negligent.  (Id. at 21-22.) 

           2.Response to Crawford and subsequent decisions  

          The Legislature enacted SB 972 (Wolk, Ch. 510, Stats. 2010)  
          largely in response to the Crawford ruling that a duty to defend  
          is a separate obligation that arises out of an indemnity  
          agreement which commences at the outset of litigation,  
          irrespective of whether the indemnitor is found negligent.  SB  
          972 provided, with respect to contracts and solicitation  
          documents between design professionals and public agencies, that  
          all provisions which purport to require the design professional  
          to defend the public agency under an indemnity agreement,  
          including the duty and the cost to defend, are unenforceable,  
          except for claims that arise out of, pertain to, or relate to  
          the negligence, recklessness, or willful misconduct of the  
          design professional.

          Despite the enactment of SB 972, a broad range of stakeholders  
          have represented that contracts entered into with design  
          professionals continue to include terms that would trigger an  
          immediate duty to defend claims against other parties,  
          particularly in complex, multi-party actions.  According to the  
          sponsor, American Council of Engineering Companies, California  
          (ACEC):

            [These obligations] are particularly risky to the public and  
            onerous because design professionals are distinguishable from  
            contractors in two ways:
                 No Insurance:  The insurance products that (1) provide  
               coverage to a contractor who contractually agrees to defend  
               its client and (2) allows a contractor to name its client  
               as an additional insured do not exist for design  
               professionals.  A designer's professional liability policy  
               does not cover an agreement to defend a third party and  
               does not afford additional insured status to a design  
               professional's client.
                 Personal liability:  Licensed design professionals are  
               required to seal construction drawings by stamping them,  
               which creates personal liability for the design  
               professional, regardless of the corporate or business  
               entity formation of the firm.








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          ACEC asserts that "[r]equiring a design professional to provide  
          an immediate defense to a third party creates an uninsured  
          exposure that places the public at risk, [the] individual's  
          personal assets at risk, [and] sets a false expectation for a  
          public agency or private developer that it will be defended in a  
          lawsuit."

          This bill responds to those concerns by explicitly stating that  
          a design professional shall have no duty to defend claims and  
          lawsuits against other persons or entities, and that a design  
          professional shall only be obligated to reimburse reasonable  
          defense costs incurred by other persons or entities, limited to  
          the design professional's degree of fault, as determined by a  
          court, arbitration, or negotiated settlement.  The bill would  
          continue to require a design professional to defend himself or  
          herself from claims and lawsuits that arise out of, pertain to,  
          or relate to, the negligence, recklessness, or willful  
          misconduct of the design professional.

           1.Shifting defense cost burdens  

          This bill would potentially allow design professionals to avoid  
          defense costs in certain types of lawsuits involving mixed  
          claims against multiple parties.  By its terms, the bill would  
          likely exclude design professionals from participating in the  
          defense of lawsuits against "other persons or entities," even if  
          such a suit involved claims relating to the design  
          professional's work or conduct.  For such claims, the bill would  
          instead require a design professional to reimburse reasonable  
          defense costs incurred by those other persons or entities,  
          "limited to the design professional's degree of fault, as  
          determined by a court, arbitration, or negotiated settlement."   
          Design professionals, unlike other litigants, would apparently  
          have no duty to contribute toward defense costs while such a  
          suit is pending, and no duty to reimburse would apparently  
          attach if the conclusion of the suit resulted in a defense  
          verdict.

          Generally, in the United States, the "American rule" is that  
          parties are to bear their own costs in civil litigation.   
          Indemnity agreements entered into by parties, such as those  
          affected by this bill, shift the responsibility of a party to  
          bear their litigation costs in some fashion.  As discussed above  
          in the Background, the Legislature has considered several bills  
          in the last few years addressing various abuses that parties in  







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          the construction industry have engaged in with regard to  
          indemnity agreements.  According to the California Special  
          Districts Association (CSDA), whose views are representative of  
          a large segment of opposition stakeholders, this bill would  
          unfairly shift the costs of defending lawsuits involving design  
          professionals to public sector agencies.  CSDA writes:

            SB 885 forces taxpayers and ratepayers to front the legal  
            costs for the private sector, even for claims where the design  
            professional is ultimately deemed to be 100 percent at fault.   
            Requiring the public agency to defend the actions of the  
            design professional creates a "reimbursement only" process  
            that results in the public agency defending the actions of the  
            design professional and shouldering upfront all of the  
            associated costs.  The public agency would then have to seek  
            reimbursement from the design professional, to the extent the  
            design professional is found negligent, once a settlement is  
            reached or the claim is fully litigated and a court or  
            arbitrator renders a final decision.  This process not only  
            requires a public entity to front the costs for a private  
            entity, it also creates conflict within the public-private  
            partnership, effectually eliminating the incentive to work  
            together towards a swift settlement.

            SB 885 stipulates a "one-size fits all" solution to  
            contractual negotiations by establishing a reimbursement-only  
                   system, with public entities paying defense costs until a  
            final determination of degree of fault is determined by a  
            court, arbitration or settlement.  The bill specifies that  
            these provisions may not be waived or modified by contract.   
            This precludes public entities and their design professional  
            partners from negotiating other contractual arrangements that  
            may better suit the particulars of a project.

          CSDA also states that "defense costs are not necessarily  
          reflective of an entity's finally determined liability."  It is  
          not unusual for a party to successfully defend against a  
          lawsuit, yet bear responsibility for paying the costs of its  
          defense.  CSDA states that "[a]s such, it does not make sense to  
          limit the design professional's defense obligation strictly to  
          the percentage of determined liability in a judicial system  
          without that direct correlation."

          To more fairly apportion defense costs among design  
          professionals and other parties in complex, multi-party  







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          litigation, while simultaneously ensuring that design  
          professionals are not held financially responsible for the full  
          cost of defending such suits, the Committee may wish to consider  
          the following set of amendments.  These amendments would nullify  
          clauses in indemnity agreements that require design  
          professionals to defend claims against other parties, but would  
          still allow other parties to bring design professionals into  
          lawsuits involving claims related to their performance through a  
          cross-complaint or other procedural mechanism to expand the  
          scope of a suit.  By eliminating these clauses in indemnity  
          agreements, the amendments would also require parties to bear  
          their own costs in litigation in-line with the "American rule."
             Suggested Amendments  :

            On page 6, strike lines 31 through 40, on page 7, strike lines  
            1 through 2, and insert:

            (j) (1) Commencing with contracts entered into on or after  
            January 1, 2017, a design professional, as defined in  
            paragraph (2) of subdivision (c) of Section 2782.8, shall only  
            have the duty to defend himself or herself from claims that  
            arise out of, pertain to, or relate to, the negligence,  
            recklessness, or willful misconduct of the design  
            professional.  All provisions, clauses, covenants, and  
            agreements contained in, collateral to, or affecting any such  
            contract that purport to require a design professional to  
            defend claims against another party shall be unenforceable.
            (2) Paragraph (1) does not prohibit a design professional from  
            mutually agreeing with another party to the timing or  
            immediacy of a defense and provisions for reimbursement of  
            defense fees and costs, so long as that agreement does not  
            waive or modify the provisions of paragraph (1).
            (3) Paragraph (1) shall not be construed to affect any duty of  
            a design professional to pay a reasonable allocated share of  
            the defense fees and costs with respect to claims and lawsuits  
            alleging negligence, recklessness, or willful misconduct of  
            the design professional on an ongoing basis during their  
            pendency, including any amounts reallocated upon final  
            resolution of a claim or lawsuit, either by settlement or  
            judgment.


           Support  :  Adobe Associates, Inc.; AECOM; Alan Burr, Murphy Burr  
          Curry Inc.; Alex Kiam, National Engineering & Consulting, Inc.;  
          Allied Geotechnical Engineers, Inc.; AllWest Environmental,  







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          Inc.; Alta Vista; AMA Inc.; American Institute of Architects,  
          California Council; American Society of Landscape Architects;  
          American Society of Landscape Architects, San Diego Chapter;  
          Anderson Penna; Ashley & Vance Engineering, Inc.; Associated  
          Transportation Engineers; Atkins North America, Inc.; ATM  
          Engineering; Avila and Associates; Axiom Engineers;  
          Baker-Williams Engineering Group; Bedrock Engineering; Benner  
          and Caprenter, Inc.; BergerABAM; Bhatia Associates, Inc.; Biggs  
          Cardosa Associates, Inc.; Blackburn Consulting; Blair, Church, &  
          Flynn Consulting Engineers; BKF Engineers; Brian Foust  
          Architecture; Buehler & Buehler Structural Engineers, Inc.;  
          Burns McDonnell; Calhoun + Associates, Inc.; Bryant Surveys,  
          Inc.; California Department of Insurance; California Land  
          Surveyors Association; California Professional Association of  
          Specialty Contractors; California Society of Professional  
          Engineers; Callas Architects; CALTROP; CASC Engineering &  
          Consulting; CBC Geospatial Consulting, Inc.; CDM Smith, Inc.;  
          CEI Engineering Associates, Inc.; Cesar A. Sifuentes, P.E.; CHJ  
          Consultants; CH2MHILL; Charles M Salter & Associates; Chaudhary  
          & Associates, Inc.; Christensen Engineering & Surveying;  
          Christian Wheeler Engineering; Civil Design Consultants, Inc.;  
          Clark & Green Associates; Clark, Richardson and Biskup  
          Consulting Engineers, Inc.; Cleary Consultants, Inc.; CNC  
          Engineering; Coast Surveying, Inc.; Coleman Engineering;  
          Converse Consultants; Cornerstone Earth Group; Cornerstone  
          Structural Engineering Group, Inc.; Covello Group; CPC  
          Architects; Craig Hiett, Advanced Structural Design, Inc.;  
          Creegan & D'Angelo Engineers; CSW/Stuber-Stroeh Engineering  
          Group, Inc.; CTS Inc.; Cullen-Sherry & Associates, Inc.; CYS  
          Structural Engineers; Dahlin Group; Dale Hendsbee, Mesiti-Miller  
          Engineering Inc.; Dane Hansen, BWE Structural Engineering; David  
          Cocke, Structural Focus; David H. Lee & Associates, Inc.; Dealy,  
          Renton & Associates; Degenkolb Engineers; DES Architects +  
          Engineers, Inc.; Design Group; DGA Planning Architecture  
          Interiors; Diaz, Yourman & Associates; DMHA Architecture &  
          Interior Design; Drake Haglan and Associates; D. Wooley &  
          Associates; Earth Systems, Inc.; EFS Engineering, Inc.; EHDD;  
          ENGEO Incorporated; ESA Associates; Evergreen Landscape  
          Architects, Inc.; FOG Studios; Fougeron Architecture; Francis  
          Lo, Miyamoto International; FTF Engineering, Inc.; Gast  
          Architects; GEI Consultants; Gekko Engineering, Inc.; GEOCON  
          Incorporated; Geoprofessional Business Association; Geotechnical  
          Professionals, Inc.; Gerard M. Nieblas, S.E.; Ghirardelli  
          Associates; Gouveia Engineering, Inc.; Gregory P. Luth &  
          Associates; Group Delta Consultants, Inc.; Guida Surveying,  







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          Inc.; Haney Station, Inc.; Harris & Associates; Harris & Sloan  
          Consulting Engineers, Inc.; Harris Design; Hatch Mott MacDonald;  
          HDR; Henry Liang-AECOM; Hermann Design Group; Heston Chau  
          Architect; HMH Engineers; HNTB; Hogan Land Services;  
          Hope-Amundson Structural Engineers; Huitt-Zollars; Huntsman  
          Architectural Group; Infrastructure Engineering Corporation;  
          Inland Foundation Engineering, Inc.; Insight Structural  
          Engineers; Insurance Office of America; Island Architects; Jack  
          Brewer, Advanced Structural Design, Inc.; James A. Adams, S.E.;  
          James Hill Architect; Jason Horwedel; Jeff Sultan, P.E.; John  
          Corless, Nichols Melburg & Rossetto; Joseph P. Paoluccio; Joseph  
          C. Truxaw & Associates, Inc.; Josephson Werdowatz & Associates;  
          Kennedy and Associates; Kennedy/Jenks Consults; Kenneth  
          Luttrell, CYS Structural Engineers Inc.; Kier & Wright, Civil  
          Engineers & Surveyors, Inc.; Kimley Horn; Kister, Savio & Rei,  
          Inc.; Kjeldsen, Sinnock & Neudeck, Inc.; KKCS World, Inc.;  
          Kleinfelder; KMA Architecture; KNA Consulting Engineers, Inc.;  
          KOA Corporation; Konet Architecture; KPFF Consulting Engineers,  
          Inc.; KSA Design Studio; L & L Bridges; L.A. Paul & Associates;  
          Land Concern; Lane Engineers, Inc.; Laugenour and Meikle; LCC  
          Engineering & Survey, Inc.; Lee Engelmeier, Smith Structural  
          Group, LLP; Lee & Pierce, Inc.; Leighton Consulting, Inc.;  
          Leppert Engineering Corporation; Lescure Engineers, Inc.;  
          Lexington Insurance Company; Liftech Consultants, Inc.; Lopez  
          Engineering, Inc.; Lynn Capouya, Inc.; Marguerite Bello, S.E.;  
          Mark Bozzo, Advanced Structural Design, Inc.; Mark Davis Design;  
          Mark English Architects; Martin & Libby Structural Engineers;  
          Matthew Knusten, Peoples Associates Structural Engineers;  
          Madrone Engineering; Max Moheb, S.E.; Melineh Zamorrodian,  
          Structural Focus; Melissa Sanchez, Structural Focus;  
          Mesiti-Miller Engineering, Inc.; Michael Baker International;  
          Michael Parolini, Smith Structural Group, LLP; Michael Smith,  
          Smith Structural Group, LLP; Michael Woods, P.E.; Mike  
          Kaszpurenko, S.E.; MK Engineering Group, Inc.; MKN & Associates;  
          MNS Engineers, Inc.; Moffat & Nichol; Monterey Bay Engineers,  
          Inc.; Monterey Peninsula Chamber of Commerce; Morton & Pitalo,  
          Inc.; Murtaugh, Meyer, Nelson & Treglia, LLP; Nasland  
          Engineering; Neri Landscape Architecture; Ninyo & Moore;  
          Northwest Hydraulic Consultants, Inc.; NV5; O'Day Consultants,  
          Inc.; OLMM Consulting Engineers; Option One Consulting  
          Engineers; Parikh; Patel Burica & Associates Inc.; Peter  
          Carlson, Miyamoto International; Philip Overbaugh, Architect;  
          Praxis Consolidated International, Inc.; Precision Civil  
          Engineering, Inc.; Provost & Pritchard Consulting Group; Psomas;  
          PZSE, Inc.; Quad Knopf, Inc.; Quattrocchi Kwak Architects;  







          SB 885 (Wolk)
          Page 14 of ? 

          Quincy Engineering; R2H Engineering, Inc.; Ralph Stone and  
          Company, Inc.; Randall Lamb; Ratcliff; Raymond Fox & Associates;  
          RED Architectural Group; RFD; Rick Engineering Company; Riggs  
          Architecture; RJM Design Group; RMW Architecture & Interiors;  
          Robert Dack, Advanced Structural Design, Inc.; Robert Gravano,  
          Advanced Structural Design, Inc.; Ross Yamamoto, P.E.;  
          Rossington Architecture; RRM Design Group; RSA Consulting Civil  
          Engineers and Surveyors; RT Engineering & Associates, Inc.;  
          Rutherford + Chekene; SA Associates; Sage Engineers; Salinas  
          Valley Chamber of Commerce; Sandis; Schaaf & Wheeler; Scott  
          Wallace Structural Engineers; SESOL, Inc.; Shannon & Wilson,  
          Inc.; Snipes-Dye Associates; Sprotte Watson Architecture +  
          Planning; Standard; Stephen Gonsalves, Nichols Melburg &  
          Rossetto; Steve H. Nakashima Consulting Civil Engineer; Stevens  
          Cresto Engineering, Inc.; Stover Engineering; Structural  
          Engineers Association of California; Stuart Engineering; Studio  
          Robbins Cortina; Sukow Engineering; Sven Lavine Architecture; SW  
          Structural, Inc.; Syska Hennessy; T.Y. Lin International; Taylor  
          Design; TerraCosta Consulting Group, Inc.; Terra Insurance  
          Company; The Holt Group, Inc.; Tipping Structural Engineers;  
          Towill, Inc.; Transpedia Consulting Engineers; TranSystems;  
          Travelers; TSAC Engineering; Tuan and Robinson Structural  
          Engineers, Inc.; Turpin & Rattan Engineering, Inc.; Twining;  
          Utility Specialists; Vali Cooper & Associates, Inc.; Vasilis  
          Papadatos, AIA; VER Consultants; Verdon Architects; Victor D.  
          Schinnerer & Company, Inc.; Victor Garcia-Delgado; Victor O.  
          Schinnerer & Company; Viriditas Design; Wagner Engineering &  
          Survey, Inc.; Wallace Group; Walter P Moore;  
          Weatherby-Reynolds-Fritson Engineering and Design; Weil & Drage;  
          West Consultants, Inc.; Whitson Engineers; Wood Rodgers; XL  
          Catlin; Yagade Consulting, Inc.; Yeh and Associates, Inc.; YEI  
          Engineers, Inc.; Zurich

           Opposition  :  Alpine Village-Sequoia Crest Community Services  
          District; Ambrose Recreation and Park District; American Canyon  
          Fire Protection District; Apple Valley Fire Protection District;  
          Association of California Healthcare Districts; Association of  
          California School Administrators; Auburn Area Recreation and  
          Park District; Barstow Heights Community Services District;  
          Board of Harbor Commissioners, Moss Landing Harbor District;  
          Buckingham Park Water District; CAL SMACNA; California  
          Association of Joint Powers Authorities; California Association  
          of School Business Officials; California Building Industry  
          Association; California Legislative Conference of the Plumbing,  
          Heating and Piping Industry; California-Nevada Conference of  







          SB 885 (Wolk)
          Page 15 of ? 

          Operating Engineers; California School Boards Association;  
          California Special Districts Association; California State  
          Association of Counties; California State Council of Laborers;  
          The California State University; Calleguas Municipal Water  
          District; Carpinteria Sanitary District; Chino Valley Fire  
          District; City of American Canyon; City of Burbank - Office of  
          the Mayor; City of Morgan Hill; City of Tulelake; Coachella  
          Valley Water District; Coalition for Adequate School Housing;  
          Community College Facility Coalition; Construction Employers'  
          Association; Consumnes Community Services District; County  
          School Facilities Consortium; Cucumonga Valley Water District;  
          Dublin San Ramon Services District; Eastern Municipal Water  
          District; Eastside Rural County Fire Protection District; El  
          Dorado Irrigation District; Elk Grove Water District; Fresno  
          Metropolitan Flood Control District; Fulton-El Camino Recreation  
          & Park District; Garberville Sanitary District; Goleta Sanitary  
          District; Goleta West Sanitary District; Granada Community  
          Services District; Greater Vallejo Recreation District; Grizzly  
          Flats Community Services District; Hayward Area Recreation and  
          Parks District; Hesperia Recreation and Park District; Hilmar  
          County Water District; Independent Special Districts of Orange  
          County; Indian Wells Valley Water District; Inland Empire  
          Utilities Agency; Irvine Ranch Water District; Kern County  
          Cemetery District No. 1; Lake Arrowhead Community Services  
          District; Las Gallinas Valley Sanitary District; League of  
          California Cities; Livermore-Amador Valley Zone 7 Water Agency;  
          Los Alamos Community Services District; Los Angeles Unified  
          School District; Los Rios Community College District; Lower Lake  
          County Waterworks District No. 1; Malaga County Water District;  
          McCloud Community Services District; McKinleyville Community  
          Services District; Menlo Park Fire Protection District;  
          Midpeninsula Regional Open Space District; Midway City Sanitary  
          District; Modesto Irrigation District; Monte Vista Water  
          District; Monterey County Regional Fire District; Mountain House  
          Community Services District; Mt. View Sanitary District;  
          Municipal Water District of Orange County; Murphys Sanitary  
          District; National Electrical Contractors Association; North  
          County Fire Protection District; North of the River Recreation &  
          Park District; Northern California Allied Trades; Novato  
          Sanitary District; Oakdale Irrigation District; Oceano Community  
          Services District; Olivenhain Municipal Water District; Orange  
          County Cemetery District; Otay Water District; Palos Verdes  
          Library District; Peninsula Corridor Joint Powers Board; Phelan  
          Piņon Hills Community Services District; Placer County Water  
          Agency; Pleasant Hill Recreation & Park District; Rincon del  







          SB 885 (Wolk)
          Page 16 of ? 

          Diablo Municipal Water District; Riverside County Superintendent  
          of Schools; Rosamond Community Services District; Rossmoor  
          Community Services District; Rowland Water District; Rural  
          County Representatives of California; Sacramento Municipal  
          Utility District; Salinas Valley Chamber of Commerce; Sanitary  
          District No. 5 of Marin County; San Juan Water District; San  
          Lorenzo Valley Water District; San Mateo County Transportation  
          Authority; San Mateo County Transit District; San Ramon Valley  
          Fire Protection District; Santa Clara Valley Water District;  
          Sausalito-Marin City Sanitary District; Self-Help Counties  
          Coalition; Silver Creek Valley Country Club, Geologic Hazard  
          Abatement District; Silverado-Modjeska Recreation and Park  
          District; Spalding Community Services District; South Orange  
          County Wastewater Authority; South San Joaquin Irrigation  
          District; South Tahoe Public Utilities District; Southern  
          California Contractors Association; State Building and  
          Construction Trades Council; Stege Sanitary District; Stockton  
          East Water District; Squaw Valley Public Service District;  
          Summerland Sanitary District; Three Valleys Municipal Water  
          District; Town of Discovery Bay; Tuolumne Utilities District;  
          United Contractors; Union Sanitary District; Urban Counties of  
          California; Vallecitos Water District; Visalia Public Cemetery  
          District; Vista Irrigation District; Wall and Ceiling Alliance;  
          West County Wastewater District; West Valley Sanitation District
                                        HISTORY
           
           Source  :  American Council of Engineering Companies of California

           Related Pending Legislation  :  None Known

           Prior Legislation  :  See Background

                                   **************