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COMPILATION OF NEW 2008 CALIFORNIA CONSTRUCTION RELATED LAWS

Existing law establishes standards for the designation of a highway or road segment as a Safety Enhancement-Double Fine Zone and limits the term of such a zone to 4 years. This bill would modify the standards for the designation of a segment of a state highway as a Safety Enhancement-Double Fine Zone, including requiring the Director of Transportation, in consultation with the Commissioner of the California Highway Patrol, to certify that a segment of state highway meets specified criteria. The bill would provide that designation as a Safety Enhancement-Double Fine Zone would be valid for a minimum of 2 years and would authorize the renewal and revocation of a designation, as specified. The bill would declare that a specified segment of State Highway Route 12 is eligible for designation as a Safety Enhancement-Double Fine Zone. The bill would also require the Department of Transportation to conduct a Safety Enhancement-Double Fine Zone study, as specified.

AB 118 (Nunez) Chapter 750 Alternative fuels and vehicle technologies: funding programs.

The bill would create the Alternative and Renewable Fuel and Vehicle Technology Fund (Alternative Fund), and would require the Energy Commission to expend the moneys in the Alternative Fund, upon appropriation by the Legislature, to implement the Alternative and Renewable Fuel and Vehicle Technology Program. The bill would require $10,000,000 to be transferred annually to the Alternative Fund from the Public Interest Research, Development, and Demonstration Fund. The bill would also create the Air Quality Improvement Program, to be administered by the State Air Resources Board, to fund air quality improvement projects, upon appropriation by the Legislature, relating to fuel and vehicle technologies. The bill would create the Air Quality Improvement Fund, and would require the state board to expend the moneys in that fund, upon appropriation by the Legislature, to implement the Air Quality Improvement Program.

AB 233 (Jones) Chapter 359 Diesel vehicles and engines: Healthy Heart and Lung Act.

(1) Existing law gives the State Air Resources Board the responsibility for control of emissions from motor vehicles and requires the state board to coordinate efforts of all levels of government as they affect air quality. The state board is required to identify toxic air contaminants and to establish airborne toxic control measures for toxic air contaminants. The state board has adopted an airborne toxic control measure to limit diesel-fueled commercial motor vehicle idling. Violations of this regulation are subject to a minimum civil penalty of $100. This bill would increase this minimum civil penalty to $300. The bill would also require the state board, every 3 years, to review enforcement of specified diesel emission control regulations and develop a strategic plan for consistent, comprehensive, and fair enforcement of these regulations. The bill would require the state board to submit this plan to the relevant legislative policy and fiscal committees by January 1, 2009, and every 3 years thereafter. (2) Existing law requires a commercial motor vehicle that operates with a declared gross or combined gross vehicle weight that exceeds 10,000 pounds to register with the Department of Motor Vehicles, and subjects these vehicles to special weight fees. This bill would require the department to, for any diesel commercial vehicle subject to these provisions, refuse registration, or renewal or transfer of registration, if the owner or an operator of the vehicle has been cited for a violation pertaining to the vehicle of specified air pollution laws until the violation has been cleared, as determined by the State Air Resources Board.

AB 243 (Nakanishi) Chapter 85 Contractors: filing complaints and disciplinary actions.

Existing law, the Contractors' State License Law, provides for the licensure and regulation of contractors by the Contractors' State License Board. Existing law establishes time frames for filing various complaints and accusations, which are grounds for disciplinary action against a licensed contractor. Existing law requires an accusation regarding an alleged breach of an express, written warranty by a licensee to be filed within the duration of the warranty. This bill would require a disciplinary action to be filed against a licensee convicted of crimes related to the qualifications, functions, and duties of a contractor within 2 years after discovery of the conviction by the registrar of contractors or the board. The bill would also require a disciplinary action regarding an alleged breach of an express, written warranty by a licensee to be filed within 18 months from the expiration of the warranty.

AB 244 (Nakanishi) Chapter 230 Contractors: home improvement contracts: service and repair contracts.

Existing law provides for the licensing and regulation of contractors by the Contractors' State License Board. Existing law requires a home improvement contract, as defined, to be in writing and to contain certain information, notices, and disclosures. Under existing law, if a downpayment is charged, the contract must express the details of the downpayment and must include a statement that the downpayment may not exceed the lesser of $1,000 or 10% of thecontract amount. In addition, under existing law, if progress payments are to be made, the contract must express the details of those payments and must include a specified statement. This bill would provide that a contractor furnishing a bond, bond equivalent, or joint control approved by the registrar need not include the progress payment details, the progress payment statement, or the downpayment statement as part of the contract. Under existing law, a violation of certain provisions regulating home improvement contracts and service and repair contracts, as defined, is a crime. Existing law requires that an indictment or information alleging a violation be brought within a specified period of time after the date the buyer signs the contract. This bill would require that the information or indictment be brought within a specified period of time from the date of the contract or, if the contract is not reduced to writing, from the date the buyer makes the first payment.

AB 422 (Hancock) Chapter 597 Hazardous substances: water quality.

(1) Existing law, the Carpenter-Presley-Tanner Hazardous Substance Account Act (California Superfund Act) imposes liability for hazardous substance removal or remedial actions and requires the Department of Toxic Substances Control to adopt, by regulation, criteria for the selection and for the priority ranking of hazardous substance release sites for removal or remedial action under the act. The California Superfund Act excludes releases of petroleum from that act. The California Superfund Act requires any response action taken or approved under that act to meet certain requirements with regard to, among other things, the preparation of the health or ecological risk assessment. The act requires the exposure assessment of that risk assessment to meet specified requirements, including the development of reasonable maximum estimates of exposure for both current land use conditions and reasonably foreseeable future land use conditions at the site. This bill would require that the exposure assessment of any health or ecological risk assessment prepared in conjunction with a response action taken or approved pursuant to the California Superfund Act include the development of reasonable maximum estimates of exposure to volatile organic compounds that may enter structures that are on the site or that are proposed to be constructed on the site and may cause exposure due to accumulation of those volatile organic compounds in the indoor air of those structures. (2) Existing law, the Porter-Cologne Water Quality Control Act (water quality control act), requires a person who discharges waste into the waters of the state in violation of waste discharge requirements or other order or prohibition issued by a regional board or the state water board, upon the order of that regional board or the state board, to clean up the waste or to abate the effects of the waste. The act subjects a person who violates a cleanup or abatement order to civil penalties. This bill would authorize the state board or a regional board to require a person conducting cleanup, abatement, or other remedial action for a brownfield site, as defined, to assess the potential human health or ecological risks caused or created by the discharge using human health and environmental screening levels or a site-specific assessment of risks.The bill would provide that this authority applies only to an order issued by the state board or a regional board on or after January 1, 2008, but the bill would allow the state board or a regional board to require a site-specific assessment of human health or ecological risks at a brownfield site that is subject to an order issued before January 1, 2008, pursuant to the water quality control act as it read on December 31, 2007. The bill would provide that if the state board or a regional board requires a site-specific assessment of human health or ecological risks at a brownfield site that is subject to an order issued before January 1, 2008, the state board or a regional board would be required to make a specified determination.

AB 609 (Eng) Chapter 600 State building construction: energy conservation.

The State Building Construction Act of 1955 authorizes the State Public Works Board to acquire and to engage in the construction of, cogeneration equipment, alternative energy equipment, or conservation measures, and any combination thereof, and to enter into energy service contracts at any structure, building, facility, site, or work used, owned, or acquired by state agencies, subject to specified criteria. Equipment, conservation measures, or energy services contracts subject to these provisions are required to be anticipated to provide cost savings to the state in each year during the term of any revenue bonds, notes, or energy service contracts issued or entered into pursuant to the act or other specified provisions of law, except as otherwise authorized by the Legislature. This bill would instead require the equipment, conservation measures, or energy service contracts to be anticipated to provide cost savings to the state during the useful life of the equipment or conservation measure.

AB 711 (Emmerson) Chapter 107 Contractors: landscape contractors.

Existing law, the Contractors' State License Law, creates the Contractors' State License Board within the Department of Consumer Affairs and provides for the licensing and regulation of contractors. Existing law authorizes a landscape contractor working within the classification of his or her license to enter into a prime contract for the construction of a swimming pool, spa, or hot tub, provided that the improvements are included within a landscape project that the landscape contractor is supervising and are subcontracted to a single licensed swimming pool contractor or are performed by the landscape contractor who is a licensed swimming pool contractor. Existing law specifies various acts and omissions that constitute grounds for disciplinary action against a licensed contractor, and authorizes the Registrar of Contractors to deny an application for licensure or renewal of licensure, issue a citation, or suspend or revoke a license or registration for any act or omission constituting a cause for disciplinary action. This bill would authorize a landscape contractor working within the classification of his or her license to enter into a prime contract for the construction of an outdoor cooking center or an outdoor fireplace provided that the improvements are included within a residential landscape project that the contractor is supervising and that, in the case of an outdoor fireplace, it is not attached to a dwelling. The bill would require any work performed in connection with the construction of the outdoor cooking center or outdoor fireplace that is outside of the scope of the landscape contractor classification to be performed by a general building contractor, as specified, or an appropriately licensed specialty contractor, unless the landscape contractor is also a general building contractor or holds an appropriate specialty license classification to perform the work. The bill would provide that a violation of these provisions and related provisions of existing law would be grounds for disciplinary action.

AB 739 (Laird) Chapter 610 Stormwater discharge.

Under existing law, the State Water Resources Control Board and the California regional water quality control boards prescribe waste discharge requirements for the discharge of stormwater in accordance with the national pollutant discharge elimination system (NPDES) permit program established by the federal Clean Water Act and the Porter-Cologne Water Quality Control Act (state act). The Safe Drinking Water, Water Quality and Supply, Flood Control,River, and Coastal Protection Bond Act of 2006 (initiative bond act) authorizes the issuance of bonds in the amount of $5,388,000,000. The Disaster Preparedness and Flood Prevention Bond Act of 2006 authorizes the issuance of bonds in the amount of $4,090,000,000 for the purposes of financing a disaster preparedness and flood prevention program. This bill would require the Department of Water Resources to develop project selection and evaluation guidelines to implement a specified stormwater flood management grant program financed by the Disaster Preparedness and Flood Prevention Bond Act of 2006. The billwould provide that the design and construction of projects for combined municipal sewer and stormwater systems are eligible for financing under that grant program. The bill would require the state board to develop project selection and evaluation guidelines for the allocation of funds made available by the initiative bond act for a stormwater contamination prevention and reduction program. The bill would provide for the expenditure of those funds, upon appropriation, for specified projects. Grant recipients would be required to assess and report on project effectiveness. The bill would require the state board and the department to consult with each other, as necessary, with regard to the development of project selection and evaluation guidelines for various programs involving stormwater management that are financed by the initiative bond act or the Disaster Preparedness and Flood Prevention Bond Act of 2006. Thestate board would be required, no later than July 1, 2009, and after holding public workshops and soliciting public comments, to develop a comprehensive guidance document for evaluating and measuring the effectiveness of municipal stormwater management programs undertaken,and permits issued, in accordance with the NPDES permit program and the state act. The state board and the regional boards would be required to refer to the guidance document when establishing requirements in municipal stormwater programs and permits for evaluation and reporting on program effectiveness. The bill would require the state board to appoint a stormwater management task force comprised of public agencies, representatives of the regulated community, and nonprofit organizations, and to submit a specified report on polluted runoff control to the Ocean Protection Council no later than January 1, 2009.

AB 761 (Coto) Chapter 611 State contracts: infrastructure bonds: small businesses.

Participation of small businesses, as certified by the Department of General Services, in state agency contracts, and sets forth the duties of the Director of General Services and the directors of other state agencies in this regard. This bill, in order to encourage the participation of small businesses in the construction of the state's infrastructure, as provided in specific infrastructure-related bond acts of 2006, would additionally require each state agency, as defined, to establish a 25% goal for the participation of small businesses in the construction of the state's infrastructure, as provided in those bond acts, to advertise all upcoming opportunities to bid on contracts for projects funded by those bond acts, as specified, including bidding procedures, and to provide California small businesses with information regarding available training and technical assistance for understanding and bidding on contracts for projects funded by those bond acts. This bill would also require each state agency, on or before August 1, 2009, and annually thereafter, that has awarded any contract financed with the proceeds of the infrastructure-relatedbond acts in the previous fiscal year to report to the Director of General Services on certain statistics regarding small business and microbusiness participation.

AB 812 (Hernandez) Chapter 615 Workers' compensation: audits.

Existing law provides that workers' compensation insurers generally perform a payroll verification audit to compare the actual premium to the estimated premium. This information is generally supplied by the insured employer. This bill would provide that if an employer fails to provide for access by the insurer or its authorized representative to its records, to enable the insurer to perform an audit, the employer shall be liable to pay to the insurer a total premium for the policy equal to 3 times the insurer's then-current estimate of the annual premium on the expiration date of the policy. The employer shall also be liable for costs, as specified. This bill would require the insurer to have and follow regular and reasonable rules and procedures for access to records, as specified. This bill would specify the procedures to be followed if the employer fails to provide access as required, and makes other changes.

AB 937 (Committee on Business and Professions)

Chapter 275 Architects: landscape architects.

The Architects Practice Act provides for licensing and regulation of persons engaged in the practice of architecture by the California Architects Board. Existing law provides for the licensing of certain persons, as defined, to practice architecture and permits an architect to form a partnership with nonarchitects if certain conditions are met. Existing law requires architects to have responsible control, as defined, over certain aspects of practice. Existing law authorizes a corporation to furnish or supply by contract architectural services by and under the responsible control of a licensed architect or architects. Existing law makes it a crime for an unlicensed person to engage in certain activities related to architecture, for a person to make certain representations, or for a licensee in responsible control of plans, specifications, and instruments of service not to sign off on those documents. This bill would revise the definition of a person for purposes of the Architects Practice Act to also include a partnership or a professional corporation and would specify that the term includes a general corporation rather than a corporation. The bill would permit an architect to form a business entity or collaborate with a nonarchitect as long as certain conditions are met and would define the terms "business entity" and "collaboration" to include an employer and employee relationship, a joint venture, a partnership, a general corporation, and a consulting relationship, as specified. The bill would additionally revise the definition of "responsible control" to mean control over the content of all architectural instruments of service, rather than control over the content of technical submissions. The bill would permit a corporation to furnish or supply by contract architectural services as long as any architects' professional services are offered and provided under the responsible control of a licensed architect or architects. The bill would declare that its provisions shall not be construed to restrict or limit the scope of practice of a professional engineer or a professional land surveyor who forms a business entity or collaborates with one or more architects or a corporation providing architectural services. Because this bill would expand the application of certain criminal provisions, it would impose a state-mandated local program. Existing law provides for the licensure and regulation of landscape architects by the California Architects Board and makes it a misdemeanor for any person to, among other things, engage in the practice of landscape architecture without a valid, unrevoked license from the board. Existing law requires landscape architects to provide customers with detailed written contracts that include specified provisions, including, but not limited to, a description of the procedure that the landscape architect and client will use to accommodate additional services. This bill would specify exceptions to that written contract requirement, would require that the contract be executed prior to the landscape architect commencing work, except as specified, and would require that the written contract also include a description of the procedure to be used by either party to terminate the contract. The bill would also specify that a written contract includes a contract in electronic form. In addition, this bill would make it a misdemeanor for an unlicensed person to use the stamp of a licensed landscape architect, as specified, or to advertise or put out a device that might indicate to the public that he or she is a licensed landscape architect or qualified to engage in landscape architecture. Because the bill would create new crimes, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

AB 1047 (Houston) Chapter 144 Uniform Public Construction Cost Accounting Act: notification.

Existing law allows a public agency to elect to be subject to the Uniform Public Construction Cost Accounting Act, which authorizes bidding procedures for public projects, as specified.This bill would require the Controller to send a notice, on or before January 1, 2009, to all public agencies describing the provisions of, and the benefits of, using the bidding procedures authorized under the act.Existing law requires the California Uniform Public Construction Cost Accounting Commission to make recommendations to the Controller regarding adjustments to specified monetary limits based on material changes in public construction costs, which shall become effective beginning with the fiscal year that commences following the Controller's notification to affected public agencies of the adjustment, as specified. This bill would instead require the Controller's notification of the adjustment to be sent to all public agencies, and would require the notification to also include a description of the provisions of, and the benefits of, using the bidding procedures authorized under the act.

AB 1073 (Nava) Chapter 621 Workers' compensation: medical treatment utilization schedule.

Existing law establishes a workers' compensation system to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires that the Administrative Director of the Division of Workers' Compensation, on or beforeJanuary 1, 2004, adopt, after public hearings, a medical treatment utilization schedule, as specified. Existing law provides that, notwithstanding the medical treatment utilization schedule or guidelines set forth in the American College of Occupational andEnvironmental Medicine's Occupational Medicine Practice Guidelines, for injuries occurringon and after January 1, 2004, an employee shall be entitled to no more than 24 chiropractic, 24 occupational therapy, and 24 physical therapy visits per industrial injury, but specifies that this limit shall not apply when an employer authorizes, in writing, additional visits to a health carepractitioner for physical medicine services. This bill would also prohibit the limit on the number of chiropractic, occupational therapy, and physical therapy visits from applying to visits for postsurgical physical medicine andpostsurgical rehabilitative services, as provided.

AB 1488 (Mendoza) Chapter 739 Air pollution: smog check program: diesel-powered vehicles.

(1) Existing law establishes a motor vehicle inspection and maintenance program (smog check), administered by the Department of Consumer Affairs and the State Air Resources Board, that provides for the inspection of all motor vehicles, except those specifically exempted from the program, upon registration, biennially upon renewal of registration, upon transfer of ownership, and in certain other circumstances. Existing law also establishes an enhanced motor vehicle inspection and maintenance program (smog check II) in each urbanized area of the state, any part of which is classified by the United States Environmental Protection Agency as a serious, severe, or extreme nonattainment area for specified air contaminants. Existing law also requires the smog tests to include, at minimum, loaded mode dynamometer testing in enhanced areas, and 2-speed testing in all other program areas, and a visual or functional check of emission control devices specified by the department. Existing law exempts diesel-powered vehicles from these requirements, unless the department determines that the inclusion of those vehicles is technologically and economically feasible, and, if the department makes that determination, requires a visual inspection of emission control devices and the diesel-powered vehicle's exhaust emissions, and authorizes the testing of emissions of specified pollutants and the measurement of emissions of smoke or particulates, or both. Violations of smog check requirements are a crime. This bill would, starting January 1, 2010, include diesel-powered vehicles manufactured after the 1997 model-year that have a gross vehicle weight rating of less than 8,501 pounds in the biennial smog check program, as provided. The bill would authorize diesel-powered vehicle smog check testing to include on-board diagnostic testing. Because violations of these requirements would be a crime, this bill would impose a state-mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by thisact for a specified reason.

SB 138 (Calderon) Chapter 32 Construction contracts: indemnity.

This bill provides that, except as specified, all agreements affecting any residential construction contract and amendments to contracts entered into after January 1, 2008, that purport to indemnify the general contractor or contractor not affiliated with the builder by a subcontractor against liability for claims of construction defects or other injury to property arising from, pertaining to, or relating to the negligence of the nonaffiliated general contractor or nonaffiliated contractors who are directly responsible to the nonaffiliated general contractor or nonaffiliated contractor, or for defects in design furnished by those persons, or for claims that are unrelated to the scope of the work in the agreement, are unenforceable.

Existing law provides that, except as specified, all agreements affecting any residential construction contract and amendment to such a contract entered into after January 1, 2006, that purport to indemnify the builder by a subcontractor against liability for claims of construction defects or other injury to property arising from, pertaining to, or relating to the negligence of the builder or the builder's other agents, servants, or independent contractors who are directly responsible to the builder, or for defects in design furnished by those persons, or for claims that are unrelated to the scope of the work in the agreement, are unenforceable.This bill would provide that, except as specified, all agreements affecting any residential construction contract and amendments to such a contract entered into after January 1, 2008, that purport to indemnify the general contractor or contractor not affiliated with the builder by a subcontractor against liability for claims of construction defects or other injury to property arising from, pertaining to, or relating to the negligence of the nonaffiliated general contractor or nonaffiliated contractor or their other agents, servants, or independent contractors who are directly responsible to the nonaffiliated general contractor or nonaffiliated contractor, or for defects in design furnished by those persons, or for claims that are unrelated to the scope of the work in the agreement, are unenforceable.

SB 161 (Margett) Chapter 427 Public works contracts: Internet submissions.

Existing public contract law authorizes public entities to adopt methods and procedures to receive bids on public works or other contracts over the Internet, as specified.This bill would authorize public entities to receive supporting materials submitted pursuant to a public works contract over the Internet, as specified. This bill would require public entities that receive bids and supporting materials over the Internet to provide an electronic receipt to the contractor either by immediate transmission or by providing access to the contractor to an electronic file that contains the receipt, as specified. The California State University Contract Law requires that bids on contracts of the university be sealed and accompanied by one of several specified forms of bidder's security in an amount equal to 10% of the amount of the bid. That law prohibits a bid from being considered if the bid does not contain this security. This bill would specify that bids made under the California State University Contract Law may be submitted electronically as under the other provisions of the bill, but only if the bidder submits the required bidder's security within 24 hours after the opening of bids.

SB 233 (Cox) Chapter 584 Public contracts: design-build contracting.

Existing law requires public entities to comply with certain procedures in soliciting and evaluating bids and awarding contracts for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement.Existing law, until January 1, 2011, authorizes certain counties, with the approval of the board of supervisors, to enter into specified design-build contracts for construction projects, inaccordance with specified provisions. Existing law defines a "project" as the construction of a building and the improvements directly related to the construction of a building. Existing law includes findings and declarations for this provision stating the intent of the Legislature with regard to enabling the specified counties to use cost-effective options for modernizing public facilities. This bill would change the definition of project to mean the construction of a building and improvements directly related to the construction of a building, and county wastewater treatment facilities. This bill would also change the findings and declarations for this provision to state the intent of the Legislature to enable the specified counties to use the design-build method for buildings and county sanitation wastewater treatment infrastructure. This billwould also remove a portion of the legislative findings and declarations. This bill would incorporate additional changes to Section 20133 of the Public Contract Code, proposed by SB 416, to be operative only if SB 416 and this bill are both enacted, each bill amends Section 20133 of the Public Contract Code, and this bill is enacted after SB 416.

SB 306 (Ducheny) Chapter 642 Health facilities: seismic safety.

Existing law, the Alfred E. Alquist Hospital Facilities Seismic Safety Act of 1983, establishes, under the jurisdiction of the Office of Statewide Health Planning and Development, a program of seismic safety building standards for certain hospitals constructed on and after March 7, 1973. Existing law authorizes the office to assess an application fee for the review of facilities design and construction, and requires that full and complete plans be submitted to the office for reviewand approval. This bill would authorize the department to, in its discretion, enter into a phased submission and review agreement with the hospital governing authority, would authorize the office to assess a related fee, and would require that the fee be deducted from the application fee. This bill would require the office to prepare and provide a report to the Legislature by April 1, 2008, that details how a specified field review and approval process will be implemented without undue delay. Existing law requires that, after January 1, 2008, any general acute care hospital building that is determined to be a potential risk of collapse or pose significant loss of life be used only fornonacute care hospital purposes. The act authorizes the office to grant a delay in this deadline under certain circumstances. This bill would authorize certain hospital owners who do not havethe financial capacity to bring certain buildings into compliance by2013 to, instead, replace those buildings by January 1, 2020, byfiling a declaration to that effect that includes specified financial information and a fee to cover the additional costs. The bill would require the hospital to bear the costs of reviewing and verifying the financial information.

SB 354 (Margett) Chapter 299 Contractors: aiding unlicensed persons.

This bill authorizes the registrar of contractors to order a licensee to pay a specified sum to an injured party if the registrar finds that a licensee has aided an unlicensed person in evading the Contractors' State License Law or allowed an unlicensed person to use his or her license.

Existing law, the Contractors' State License Law, authorizes the Contractors' State License Board to conduct all functions and duties relating to the licensing, regulation, and discipline of licensees and requires the board to appoint a registrar of contractors to perform specified duties. Existing law authorizes the registrar of contractors to issue a citation, instead of initiating disciplinary proceedings, to a licensee when the registrar has probable cause to believe that the licensee has committed acts in violation of the Contractors' State License Law.Existing law authorizes the citation to include an order for payment by a licensee of a specified sum to an injured party. Existing law provides that it is grounds for disciplinary action for a licensed contractor to aid an unlicensed person in evading the Contractors' State License Law or to allow an unlicensed person to use his or her license. This bill would authorize the registrar of contractors to order a licensee to pay a specified sum to an injured party if the registrar finds that a licensee has aided an unlicensed person in evading the Contractors' State License Law or allowed an unlicensed person to use his or her license.

SB 416 (Ashburn) Chapter 585 Design-build: counties.

Procedures in soliciting and evaluating bids and awarding contracts for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement. Existing law, until January 1, 2011, authorizes certain counties,with the approval of the board of supervisors, to enter into design-build contracts, as defined, in accordance with specified provisions. This bill would authorize any county, with the approval of the board of supervisors, to enter into design-build contracts, as defined, in accordance with specified provisions.This bill would require specified information to be verified under oath, thus imposing a state-mandated local program by expanding the scope of an existing crime. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.This bill would incorporate additional changes to Section 20133 of the Public Contract Code, proposed by SB 233, to be operative only if SB 233 and this bill are both enacted, each bill amends Section 20133 of the Public Contract Code, and this bill is enacted after SB 233.

SB 614 (Simitian) Chapter 471 Public works: design-build contracts.

(1) Existing law authorizes, until January 1, 2010, a school district governing board to enter into a design-build contract, as defined, in which factors in addition to price and cost may beconsidered in awarding a contract for the design and construction of a school facility that exceeds $10,000,000. This bill instead would authorize a school district governing board to enter into those contracts that exceed $2,500,000, and would extend this authority until January 1, 2014. (2) Existing law prohibits, in a contract between the design-build entity and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld to exceed the percentage specified in the contract between the school district or community college district and the design-build entity, except as provided. This bill would prohibit retention proceeds withheld by the school district or community college district from the design-build entity to exceed 5% if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids. (3) Existing law requires each contract with a design-build entity to provide that no construction or alteration of any school building is to commence prior to the receipt of the written approval of the plans, as to the safety of design and construction, from theDepartment of General Services. This bill would define "plans" for these purposes to include, but is not limited to, plans for foundations or other building systems, as determined by the Division of the State Architect, based on design criteria provided by the architect or structural engineer of the design-build entity to the Department of General Services prior to the receipt of completed building plans. (4) Existing law authorizes the governing boards of 3 specified community college districts and up to 5 community college facility construction projects selected by the Chancellor of the California Community Colleges to enter into a design-build contract, as defined, until January 1, 2011, in which factors in addition to price and cost may be considered in awarding a contract for the design and construction of a community college facility for an amount that exceeds $10,000,000. This bill instead would make those provisions applicable to any communitycollege district governing board and would authorize the governing board of a community college district to enter into those contracts that exceed $2,500,000, and would extend this authority until January 1, 2014. This bill would provide that, except as provided in the bill, nothing in the bill is to be construed to affect the application of any other law.

SB 869 (Ridley-Thomas) Chapter 662 Workers' compensation insurance: coverage program.

(1) Existing law requires the Labor Commissioner to establish and maintain a workers' compensation insurance coverage program for targeting employers in industries with the highest incidence of unlawfully uninsured employers and annually report to the Legislatureconcerning the effectiveness of the program. The report is required to include specified information. This bill would revise these provisions to require the program to systematically identify unlawfully uninsured employers and would authorize the Labor Commissioner to prioritize targets for the program in consideration of available resources. The bill would revise the reporting requirements to, among other things, require the report to be posted on the Labor Commissioner's Web site. (2) Existing law establishes the Workers' Compensation Administration Revolving Fund in the State Treasury. Money in the fund may be expended by the Department of Industrial Relations, upon appropriation by the Legislature, for the administration of the workers' compensation program, except as provided, and for the Return-to-Work Program. This bill would also authorize these funds to be used for the enforcement of the insurance coverage program maintained by the Labor Commissioner. (3) Existing law requires the Director of Employment Development to permit the use of any information in his or her possession to the extent necessary for specified purposes. This bill would additionally require the director to permit the use of any information in his or her possession to the extent necessary to enable the Labor Commissioner of the Division of Labor Standards Enforcement in the Department of Industrial Relations to identify unlawfully uninsured employers. (A) This bill would incorporate additional changes to Section 1095 of the Unemployment Insurance Code, proposed by AB 798, to be operative only if AB 798 and this bill are both enacted, each bill amends that section, AB 8 is not enacted, or if enacted, does not amend Section 1095 of the Unemployment Insurance Code, and this bill is enacted after AB 798.(B) This bill would incorporate additional changes to Section 1095 of the Unemployment Insurance Code, proposed by AB 8, to be operative only if AB 8 and this bill are both enacted, each bill amends that section, AB 798 is not enacted, or if enacted, does not amend Section 1095 of the Unemployment Insurance Code, and this bill is enacted after AB 8.(C) This bill would incorporate additional changes to Section 1095 of the Unemployment Insurance Code, proposed by AB 798 and AB 8, to be operative only if AB 798, AB 8, and this bill are all enacted, all 3 bills amend that section, and this bill is enacted after AB 798 and AB 8.

New California Building Code.

Effective January 1, 2008, all building projects submitted for plan check to permitting agencies

must comply with the new 2007 California Building Standards Code (CBSC), Title 24 of the California Code of Regulations.

The California Building Standards Code applies to all forms of occupancies in California. Now that the State of California has adopted the 2007 CBSC, each jurisdiction is required to adopt the code. They will, however, have the right to make changes to the code based on local geographical, climatic, and topographical conditions. Health and Safety Code ยงยง18941.5, 17958.7. The law requires local jurisdictions to put the new CBSC into effect within a minimum of 30 days after the official adoption on January 31, 2008.

The California statute and Code requires that the code edition on which the project is based shall be determined at the time of application or filing for plan check, rather than the date when a permit is actually issued.

Copies of any of these bills can be found online at www.leginfo.ca.gov

With the exception of the section on the new Building Code, this summary of 2008 new California statutes comes from the Legislative Counsel's Digest and was complied by William C. Last, Jr. of Last & Faoro. Mr. Last is an attorney who has been specializing in Construction Law for over twenty seven years. Mr. Last also holds a California A&B contractor's license. If you have any questions Mr. Last can be contacted at 415-764-1990 or 650-425-4679. He has other articles on his web site: lhfconstructlaw.com. It is intended to provide general information about new California laws that go into effect during 2008. The portion of the Legislative Counsel's Digest that is included is provided without assurance that it describes all facets of each statute. There may be other new laws which impact your business or there may be sections of those new laws that are not specifically referenced in this summary. If you have a specific legal question or need legal advice, you should contact an attorney.

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