AB 778
Local Agency Public Construction Act: internet website posting.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Local Government
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Sign in to take action- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill requires local agencies in California that have websites to post information about their construction project payments online. Specifically, agencies must post details about the project, the contractor paid, the payment date, identifying information, and the payment amount. Contracts valued below $25,000 are exempt from this requirement, and agencies could face penalties if they fail to comply.
Key provisions
- Local agencies with websites must post construction payment information.
- The information posted must include project details, contractor name, payment date, identifying information, and payment amount.
- Contracts valued at $25,000 or less are exempt.
- Failure to comply can result in withholding of retention proceeds.
- The bill establishes a state-mandated local program.
- Reimbursement for costs associated with the program will be provided by the state.
Who is affected
- Local Agencies
- Construction Contractors
- Public Entities
- Government Agencies
Notable changes
- Expands the requirements of the Local Agency Public Construction Act to include online posting.
- Creates a new section (20104.60) in the Public Contract Code.
- Establishes a penalty for non-compliance regarding retention proceeds.
Fiscal impact
The bill is determined to contain state-mandated costs, and therefore, reimbursement will be provided to local agencies and school districts pursuant to the statutory provisions outlined in Part 7 of Division 4 of Title 2 of the Government Code.
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AB778:v99#DOCUMENT
Bill Start
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 778
| Introduced by Assembly Member Chen |
| February 18, 2025 |
An act to add Section 20104.60 to the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 778, as introduced, Chen. Local Agency Public Construction Act: internet website posting.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 20104.60 is added to the Public Contract Code, immediately following Section 20104.50, to read:
20104.60.
(a) Within 10 days of making a construction contract payment, a local agency that maintains an internet website shall post on its internet website the following:
(1) The project for which the payment was made.
(2) The name of the construction contractor or company paid.
(3) The date the payment was made or the date the local agency transmitted instructions to make the payment.
(4) The payment application number or other identifying information.
(5) The amount of the payment.
(b) This section shall not apply to a construction contract valued below twenty-five thousand dollars ($25,000).
(c) A local agency that fails to comply with this section shall not withhold any retention proceeds from any remaining payment by a public entity, as described in subdivision (b) of Section 7201.
SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.