BILL NUMBER: AB 2336	CHAPTERED  07/10/00

	CHAPTER   126
	FILED WITH SECRETARY OF STATE   JULY 10, 2000
	APPROVED BY GOVERNOR   JULY 8, 2000
	PASSED THE ASSEMBLY   JUNE 26, 2000
	PASSED THE SENATE   JUNE 22, 2000
	AMENDED IN SENATE   JUNE 5, 2000
	AMENDED IN ASSEMBLY   APRIL 3, 2000

INTRODUCED BY   Assembly Member Zettel

                        FEBRUARY 24, 2000

   An act to amend Section 9203 of the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2336, Zettel.  Local agency contracts.
   Existing law prescribes limits on progress payment that may be
made on any contract with a local agency for the creation,
construction, alteration, repair, or improvement of any public
structure, building, road, or other improvement, that exceeds $5,000.

   This bill would provide that a county water authority shall be
subject to a $25,000 limit for purposes of these provisions.


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


  SECTION 1.  Section 9203 of the Public Contract Code is amended to
read:
   9203.  (a) Payment on any contract with a local agency for the
creation, construction, alteration, repair, or improvement of any
public structure, building, road, or other improvement, of any kind
which will exceed in cost a total of five thousand dollars ($5,000),
shall be made as the legislative body prescribes upon estimates
approved by the legislative body, but progress payments shall not be
made in excess of 95 percent of the percentage of actual work
completed plus a like percentage of the value of material delivered
on the ground or stored subject to, or under the control of, the
local agency, and unused.  The local agency shall withhold not less
than 5 percent of the contract price until final completion and
acceptance of the project.  However, at any time after 50 percent of
the work has been completed, if the legislative body finds that
satisfactory progress is being made, it may make any of the remaining
progress payments in full for actual work completed.
   (b) Notwithstanding the dollar limit specified in subdivision (a),
a county water authority shall be subject to a twenty-five thousand
dollar ($25,000) limit for purposes of subdivision (a).