California Rolls Out New Laws for 2017 G

overnor Jerry Brown signed 900 new laws that will take effect in 2017.

Below is a list of selected major new

laws AGC was following that have an impact on the construction industry. Descriptions of these new laws are intentionally brief and should not be considered a complete summary of each bill. For a copy of any legislation and

a complete analysis, access the state’s Legislative website at: www.leginfo., or see AGC’s recent December Legislative Update.

Public Works Contracting –

Alternative Procurement Lease/Leaseback School

Construction – AB 2316 (O’Donnell)

– Reforms the lease-leaseback procurement process for school construction to address recent court decisions and protect contractors from possible disgorgement of monies paid under current and past lease-leaseback contracts. (Co-Sponsored by AGC and the Construction Employers

Association) University of California: Best

Value Construction Contracting Pilot Program - SB 1214 (Allen) – Extends authorization for the University of California to use Best Value Construction Contracting until January 1, 2018 for all campuses in the UC system.

Public Works/Public Contracts Prompt Payment on Change

Orders – AB 626 (Chiu) – Establishes a process to provide prompt payment to contractors for change order work. AB 626 puts a process in place that requires agencies to respond to a contractors’ claim, requires the agency to pay out portions of the work not in dispute they acknowledge/agree they owe the contractor, and implements a fair process for resolving any disputed

6 January/February 2017

portions of payment. Prevailing Wage for Ready-Mix

Drivers – SB 836 – Implementation of AB 219 (Daly) - AB 219 was signed into law last year and, effective July 1, 2016, extends the application of prevailing wage to the delivery of ready-mix concrete to public works construction sites. SB 836 makes clarifying corrections to AB 219 that were effective as of July 1 of this year. However, the final status of AB 219 is in doubt due to the issuance of a temporary restraining order halting the enforcement of the legislation.

Apprenticeship Public works: prevailing wage:

apprentices - AB 1926 (Cooper) – Requires that when a contractor requests the dispatch of an apprentice to perform work on a public works project and requires compliance with certain pre-employment activities as a condition of employment, that the apprentice be paid the prevailing rate for the time spent on any required pre-employment activity. Tis includes travel time to and from the activity unless the apprentice fails to pass the drug test.


Contractors: license requirements: recovery actions - AB 1793 (Holden) – Revises certain of the criteria for a court to find that a contractor is in substantial compliance with the licensure requirements, including removing the condition that the contractor did not know or should not have reasonably have known, that he or she was unlicensed during

performance of the contract. Building construction:

contractors: discipline: reporting: building standards - SB 465 (Hill) – Requires contractors to report to CSLB within 90 days of the occurrence of a conviction of any felony or a conviction

of any crime that is substantially related to the qualifications of their license. Also requires CSLB to prepare a study of judgments, arbitration awards and settlements that were a result of construction defect claims for rental residential units by January 1, 2018, and to evaluate whether or not this information enhances their ability to protect the public.

Liability, Claims and Contracts Prevailing wage claims - AB 326

(Frazier) – Sponsored by AGC, AB 326 addresses the issue of contractors having to post a cash deposit with the Department of Industrial Relations (DIR) to avoid liquidated damages from prevailing wage claims. Tis bill will require DIR, following a settlement or dismissal, to refund the cash deposit to the contractor within 30 days. Currently there is no deadline and it has taken, in many cases, months to return monies rightfully owed to contractors.

DVBE Los Angeles County Metropolitan Transportation Authority: contracting

– AB 2690 (Ridley-Tomas) - Autho- rizes the LACMTA to establish disabled veteran business enterprise participation goals, and would define “disabled veteran business enterprise” for these purposes.

Labor and Employment Applicants for employment:

criminal history - AB 1843 (Stone, Mark) – Prohibits an employer from asking an applicant for employment to disclose information concerning or related to an arrest, detention, processing, diversion, supervision, adjudication, or court disposition that occurred while the person was subject to the process and jurisdiction of juvenile court law. 

California Constructor

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