California Senate Bill SB616 Introduced / Bill

 BILL NUMBER: SB 616INTRODUCED BILL TEXT INTRODUCED BY Senator Wright FEBRUARY 22, 2013 An act to amend Section 9550 of the Civil Code, relating to public works. LEGISLATIVE COUNSEL'S DIGEST SB 616, as introduced, Wright. Public works: payment bonds. Existing law requires a direct contractor that is awarded a public works contract involving an expenditure greater than $25,000 to give a payment bond to, and approved by, the officer or public entity by when the contract was awarded, as specified. This bill would make nonsubstantive changes to this provision. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 9550 of the Civil Code is amended to read: 9550. (a) A direct contractor that is awarded a public works contract involving an expenditure  in excess of   greater than  twenty-five thousand dollars ($25,000) shall, before commencement of work, give a payment bond to and approved by the officer or public entity by whom the contract was awarded. (b) A public entity shall state in its call for bids that a payment bond is required for a public works contract involving an expenditure  in excess of   greater than  twenty-five thousand dollars ($25,000). (c) A payment bond given and approved under this section will permit performance of and provide coverage for work pursuant to a public works contract that supplements the contract for which the bond is given, if the requirement of a new bond is waived by the public entity. (d) For the purpose of this section, a design professional is not deemed a direct contractor and is not required to give a payment bond. (e) This section does not apply to a public works contract with a "state entity" as defined in subdivision (d) of Section 7103 of the Public Contract Code.