Bill Text: CA AB2185 | 2011-2012 | Regular Session | Introduced

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Bill Title: Public contracts: bonds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-03-08 - Referred to Com. on B., P. & C.P. [AB2185 Detail]

Download: California-2011-AB2185-Introduced.html

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BILL NUMBER: AB 2185	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bonnie Lowenthal

                        FEBRUARY 23, 2012

   An act to repeal and amend Section 10222 of the Public Contract
Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2185, as introduced, Bonnie Lowenthal. Public contracts: bonds.

   The State Contract Act requires that every contract provide for
the filing of separate performance and payment bonds, as provided,
and that the performance and payment bonds each equal at least 1/2 of
the contract price, subject to certain exceptions. Existing law
gives the Department of Transportation discretion to specify that,
for projects with a contract price greater than $250,000,000, the
payment bond shall be the lesser of 1/2 the contract price or
$500,000,000.
   This bill would authorize the High-Speed Rail Authority to provide
that, for projects with a contract price greater than $250,000,000,
the payment bond be the lesser of 1/2 the contract price or
$500,000,000.
   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 10222 of the Public Contract Code, as amended
by Section 1 of Chapter 186 of the Statutes of 2003, is repealed.

   10222.  (a) Each bond shall equal at least one-half of the
contract price, except as otherwise provided in Section 3248 of the
Civil Code, in the California Toll Bridge Authority Act (Chapter 1
(commencing with Section 30000) of Division 7 of the Streets and
Highways Code), or in subdivision (b).
   (b) Notwithstanding subdivision (a), for projects with a contract
price greater than two hundred fifty million dollars ($250,000,000),
the Department of Transportation shall have the discretion to specify
that the payment bond shall equal not less than one-half of the
contract price or five hundred million dollars ($500,000,000),
whichever is less. 
  SEC. 2.  Section 10222 of the Public Contract Code, as amended by
Section 45 of Chapter 697 of the Statutes of 2010, is amended to
read:
   10222.  (a) Each bond shall equal at least one-half of the
contract price, except as otherwise provided in Section 9554 of the
Civil Code, in the California Toll Bridge Authority Act (Chapter 1
(commencing with Section 30000) of Division 7 of the Streets and
Highways Code), or in subdivision (b).
   (b) Notwithstanding subdivision (a), for projects with a contract
price greater than two hundred fifty million dollars ($250,000,000),
the Department of Transportation  and the High-   Speed
Rail Authority  shall have the discretion to specify that the
payment bond shall equal not less than one-half of the contract price
or five hundred million dollars ($500,000,000), whichever is less.