Bill Text: CA ABX110 | 2015-2016 | Regular Session | Introduced

---

Bill Title: Public works: contracts: extra compensation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - Died at Desk. [ABX110 Detail]

Download: California-2015-ABX110-Introduced.html

---

BILL NUMBER: ABX1 10	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Levine

                        AUGUST 19, 2015

   An act to add Section 7101.5 to the Public Contract Code, relating
to public works.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 10, as introduced, Levine. Public works: contracts: extra
compensation.
   Existing law sets forth requirements for provisions in public
works contracts awarded by a state entity. Under existing law, the
state or any other public entity in any competitively bid public
works contract may provide for the payment of extra compensation to
the contractor for cost reduction changes.
   This bill would provide that a state entity in a
megainfrastructure project contract, as defined, may not provide for
the payment of extra compensation to the contractor until the
megainfrastructure project, as defined, has been completed and an
independent third party has verified that the megainfrastructure
project meets all architectural or engineering plans and safety
specifications of the contract. This bill would apply to contracts
entered into or amended on or after the effective date of this bill.

   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 7101.5 is added to the Public Contract Code, to
read:
   7101.5.  (a) Notwithstanding any other law, a state entity in a
megainfrastructure project contract may not provide for the payment
of extra compensation to the contractor until the megainfrastructure
project has been completed and an independent third party has
verified that the megainfrastructure project meets all architectural
or engineering plans and safety specifications of the contract.
   (b) This section shall apply to contracts entered into or amended
on or after the effective date of this section.
   (c) This section shall only apply to megainfrastructure projects
that, consistent with the requirement of subdivision (b) of Section 3
of Article IV of the California Constitution, relate to the
proclamation issued by the Governor on June 16, 2015, to convene the
Legislature to assemble in extraordinary session to, among other
things, consider and act upon legislation necessary to incorporate
project development efficiencies to expedite project delivery or
reduce project costs.
   (d) For purposes of this section, all of the following definitions
shall apply:
   (1) "Extra compensation" means any extra compensation that is
provided for in the megainfrastructure project contract pursuant to
the authorization in Section 7101.
   (2) "Megainfrastructure project" means the erection, construction,
alteration, repair, or improvement of any public structure,
building, road, or other public improvement of any kind that exceeds
one billion dollars ($1,000,000,000) in cost.
   (3) "Megainfrastructure project contract" means an agreement for a
megainfrastructure project.
   (4) "State entity" means every state office, department, division,
bureau, board, or commission, but does not include the Legislature,
the courts, any agency in the judicial branch of government, or the
University of California.