BILL NUMBER: AB 2390 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 26, 2010
INTRODUCED BY Assembly Member Buchanan
FEBRUARY 19, 2010
An act relating to public contracts. An
act to amend Sections 3300 and 4104 of the Public Contract Code,
relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2390, as amended, Buchanan. Public works: bidding
requirements Public works projects: bidding practices:
licenses and worker's compensation insurance .
Existing law requires a public entity, the University of
California, and the California State University to specify for
inclusion in any plans and notice prepared for a public project the
classification of the contractor's license, which a contractor is
required to possess at the time a contract is awarded.
This bill would instead require the contractor to possess that
license at the time the contractor makes a bid or offer to perform
the work, and would also require a contractor to possess current,
valid workers' compensation insurance at that time.
The Subletting and Subcontracting Fair Practices Act requires the
entity taking bids for public works to specify that any person making
a bid or offer set forth the name and location of the place of
business of each subcontractor who will perform work or labor or
render service to the prime contractor, or a subcontractor who, under
subcontract to the prime contractor, specially fabricates and
installs a portion of the work according to specifications, in an
amount in excess of one-half of 1% of the prime contractor's total
bid, or in the case of bids or offers for the construction of streets
or highways, including bridges, in an amount in excess of one-half
of 1% of the prime contractor's total bid or $10,000, whichever is
greater.
This bill would instead require the person making a bid or offer
to set forth, in addition to each subcontractor's name and business
location, the current, valid license number issued by the State of
California, and proof of current, valid worker's compensation
insurance of each subcontractor who will perform work.
Existing law contains various provisions relating to the bidding
process for public works projects.
This bill would state the intent of the Legislature to enact
legislation that would require a contracting firm and a
subcontracting firm to have a valid license and workers' compensation
insurance at the time of submission of a bid for a public works
construction project.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3300 of the Public
Contract Code is amended to read:
3300. (a) Any public entity, as defined in Section 1100, the
University of California, and the California State University shall
specify the classification of the contractor's license ,
which a contractor shall possess at the time a contract is
awarded the contractor makes a bid or offer to perform
the work . The specification shall be included in any plans
prepared for a public project and in any notice inviting bids
required pursuant to this code.
This requirement shall apply only with respect to contractors who
contract directly with the public entity.
(b) A contractor shall possess current, valid workers'
compensation insurance at the time the contractor makes a bid or
offer to perform the work.
(b)
(c) A contractor who is not awarded a public contract
because of the failure of an entity, as defined in subdivision (a),
to comply with that subdivision shall not receive damages for the
loss of the contract.
SEC. 2. Section 4104 of the Public
Contract Code is amended to read:
4104. Any officer, department, board or commission taking bids
for the construction of any public work or improvement shall provide
in the specifications prepared for the work or improvement or in the
general conditions under which bids will be received for the
doing of the work incident to the public work or
improvement that any person making a bid or offer to perform the work
, shall, in his or her bid or offer, set forth:
(a) (1) The name and the location of the place of
, business location, current valid license
number issued by the State of California, and proof of current, valid
workers' compensation insurance of each subcontractor who will
perform work or labor or work, labor, or
render service to the prime contractor in or about the
construction of the work or improvement , or a subcontractor
licensed by the State of California who, under subcontract to the
prime contractor, specially fabricates and installs a portion of the
work or improvement according to detailed drawings contained in the
plans and specifications, in an amount in excess of one-half of 1
percent of the prime contractor's total bid or, in the case of bids
or offers for the construction of streets or highways, including
bridges, in excess of one-half of 1 percent of the prime contractor's
total bid or ten thousand dollars ($10,000), whichever is greater
.
(2) (A) Subject to subparagraph (B), any information requested by
the officer, department, board, or commission concerning any
subcontractor who the prime contractor is required to list under this
subdivision, other than the subcontractor's name and location of
business, may be submitted by the prime contractor up to 24 hours
after the deadline established by the officer, department, board, or
commission for receipt of bids by prime contractors.
(B) A state or local agency may implement subparagraph (A) at its
option.
(b) The portion of the work that will be done by each
subcontractor under this act. The prime contractor shall list only
one subcontractor for each portion as is defined by the prime
contractor in his or her bid.
SECTION 1. It is the intent of the Legislature
to enact legislation that would require a contracting firm and a
subcontracting firm to have a valid license and workers' compensation
insurance at the time of submission of a bid for a public works
construction project.