SB 802 — Works of improvement: progress payments: notice: retention proceeds.

Summary

(1) Existing law requires that, for private and public works of improvement, and in a public works contract, a prime contractor or subcontractor pay to any subcontractor, not later than 10 days after receipt of each progress payment, unless otherwise agreed to in writing, the respective amount allowed the contractor on account of the work performed by the subcontractors, to the extent of each contractor's interest therein, as prescribed. This bill would, instead, require that those amounts be paid not later than 7 days after receipt of each progress payment. (2) Existing law requires, with regard to a contract entered into on or after January 1, 1995, in order to enforce a claim upon any payment bond given in connection with a public work, that a claimant give the 20-day public works bond preliminary notice, as provided. Existing law further authorizes a claimant, if the 20-day public works preliminary bond notice was not given as prescribed by statute, to enforce a claim by giving written notice to the surety and the bond principal, as provided, within 15 days after recordation of a notice of completion, or if no notice of completion has been recorded, within 75 days after completion of the work of improvement. This bill would, instead, with regard to a contract entered into on or after January 1, 2010, require that the written notice to be given to the surety and the bond principal be given prior to the completion, as defined, of the project, or recordation of a notice of completion. (3) Existing law authorizes the Department of General Services, or any other department with authority to enter into contracts, to contract with suppliers for goods and services and for public works. Existing law provides that in a contract relating to the construction of a public work of improvement between the public entity and original contractor, the original contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of retention proceeds withheld cannot exceed the percentage specified in the contract between the public entity and the original contractor. This bill would instead prohibit retention proceeds from exceeding 5% of the payment, as specified, for those contracts entered into on or after January 1, 2010, between a public entity, as defined, and an original contractor, between an original contractor and a subcontractor, and between all subcontractors thereunder. (4) Existing law contains various provisions relating to contracts for the performance of public works of improvement, including provisions for the payment of progress payments and the disbursing and withholding of retention proceeds. Existing law prohibits progress payments upon these contracts from being made in excess of 95% of the percentage of actual work completed plus a like percentage of the value of material delivered, as specified, and requires the Department of General Services to withhold not less than 5% of the contract price until final completion and acceptance of the project. This bill would, until December 31, 2013, instead, prohibit progress payments upon these contracts from being made in excess of 100% of the percentage of actual work completed, and would require the Department of General Services to withhold not more than 5% of the contract price until final completion and acceptance of the project.

Bill Text

• Enrolled 09/15/09 - Enrolled Current pdf September 15, 2009
• Amended 09/04/09 - Amended Assembly pdf September 04, 2009
• Introduced 02/27/09 - Introduced pdf February 27, 2009
• SB802 View text html

Action History

1. January 19, 2010

   Stricken from Senate file.

2. October 11, 2009

   In Senate. To unfinished business. (Veto)

3. October 11, 2009

   Vetoed by Governor.

4. September 28, 2009

   Enrolled. To Governor at 1 p.m.

5. September 10, 2009

   Senate concurs in Assembly amendments. (Ayes 39. Noes 0. Page 2388.) To enrollment.

6. September 10, 2009

   In Senate.

7. September 09, 2009

   Read third time. Passed. (Ayes 75. Noes 1. Page 3189.) To Senate.

8. September 04, 2009

   Read third time. Amended. (Ayes 40. Noes 29. Page 3046.) To third reading.

9. September 04, 2009

   Assembly Rule 69(b) suspended. (Ayes 43. Noes 29. Page 3046.)

10. September 04, 2009

    Action rescinded whereby the bill was read a third time and amended.

11. September 04, 2009

    Read third time. Amended. (Page 3037.) To third reading.

12. August 24, 2009

    Read second time. To third reading.

13. August 20, 2009

    (Heard in committee on August 19.)

14. August 20, 2009

    From committee: Do pass. (Ayes 17. Noes 0.)

15. July 07, 2009

    (Heard in committee on July 7.)

16. July 07, 2009

    From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 11. Noes 0.) Re-referred to Com. on APPR.

17. June 30, 2009

    Set, first hearing. Further hearing to be set.

18. May 21, 2009

    To Com. on B. & P.

19. May 06, 2009

    In Assembly. Read first time. Held at Desk.

20. May 06, 2009

    Read third time. Passed. (Ayes 35. Noes 0. Page 795.) To Assembly.

21. April 28, 2009

    Read second time. To third reading.

22. April 27, 2009

    From committee: Do pass. (Ayes 12. Noes 0. Page 656.)

23. April 17, 2009

    Set for hearing April 27.

24. April 14, 2009

    From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 12. Noes 1. Page 478.) Re-referred to Com. on APPR.

25. March 27, 2009

    Set for hearing April 14.

26. March 19, 2009

    To Com. on G.O.

27. March 02, 2009

    Read first time.

28. March 01, 2009

    From print. May be acted upon on or after March 31.

29. February 27, 2009

    Introduced. To Com. on RLS. for assignment. To print.

Sponsors

• Fuentes · Cosponsor
• Leno · Primary

Votes

Subjects