BILL NUMBER: AB 2390	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 2, 2010
	AMENDED IN SENATE  JUNE 23, 2010
	AMENDED IN ASSEMBLY  APRIL 28, 2010
	AMENDED IN ASSEMBLY  APRIL 26, 2010

INTRODUCED BY   Assembly Member Buchanan
   (Principal coauthor: Assembly Member Torrico)

                        FEBRUARY 19, 2010

   An act to amend Section 3300 of, and to add Section 4104.6 to, the
Public Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2390, as amended, Buchanan. Public works  projects
 : bidding practices: licenses and workers' 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
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 require the contractor whose bid was accepted to
provide to the awarding authority, within 5 business days of the
notice of the award, each subcontractor's name and business location,
the current, valid license number issued by the State of California,
and proof of current workers' compensation insurance of each
subcontractor that was listed in the contractor's bid.
   Vote: majority. Appropriation: no. Fiscal committee: 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 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 that contract directly with the public
entity.
   (b) A contractor shall possess current workers' compensation
insurance at the time the contractor makes a bid or offer to perform
the work.
   (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.
   (d) This section shall not apply to a contractor that submits a
bid or offer as a joint venture, pursuant to Section 7029.1 of the
Business and Professions Code. 
   (e) This section shall not apply to an applicant or licensee as
described in subdivision (b) of Section 7125 of the Business and
Professions Code. 
  SEC. 2.  Section 4104.6 is added to the Public Contract Code, to
read:
   4104.6.  (a) A contractor whose bid is accepted shall provide to
the awarding authority, within five business days of the notice of
award, the name, business location, current contractor's license
number issued by the State of California, and proof of current
workers' compensation insurance of each subcontractor listed by the
contractor in the bid pursuant to Section 4104.
   (b)  (1)    Any subcontractor not listed by the
contractor pursuant to paragraph (1) of subdivision (a) of Section
4104, who is subsequently contracted to perform work, shall, prior to
commencing work, provide the awarding authority with its name,
business location, current contractor's license number issued by the
State of California, and proof of current workers' compensation
insurance. 
   (2) The requirement to provide proof of current workers'
compensation insurance shall not apply to an applicant or licensee as
described in subdivision (b) of Section 7125 of the Business and
Professions Code.