AB 778

Existing law, the Local Agency Public Construction Act, sets forth the requirements for the payment of construction projects by local agencies. Existing law, the State Contract Act, imposes specified requirements on state agencies regarding payment of construction contracts, including requiring, within 10 days of making a construction contract payment, a state agency that maintains an internet website to post on its internet website the project for which the payment was made, the name of the construction contractor or company paid, the date the payment was made or the date the state agency transmitted instructions to the Controller or other payer to make the payment, the payment application number or other identifying information, and the amount of the payment. Existing law exempts from these provisions, among other things, construction contracts valued below $25,000. This bill would require a local agency that maintains an internet website to post on its internet website the information described above. The bill would exempt from these provisions construction contracts valued below $25,000. The bill would prohibit a local agency that fails to comply with these provisions from withholding any retention proceeds from any remaining payment, as specified. By adding to the duties of local agencies, the bill 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.