[AUTHOR’S NOTE: The following are “shorthand” explanations of new laws affecting contractors—it is not comprehensive. The list was prepared as being representative of other laws. You should seek the aid of a construction attorney before relying on what is set out herein. While these new laws are in effect in California, contractors in other states should be aware of them because of the likelihood other states might introduce similar legislation soon.]

    AB 243 (Nakanishi)—Contractors: Filing Complaints and Disciplinary ActionsThe California State Licensing Board sponsored this law. The law requires a disciplinary action to be filed against a licensee convicted of crimes related to the qualifications, functions, and duties of a contractor within two years after discovery of the conviction by the Registrar of Contractors or the Board. It also requires a disciplinary action regarding an alleged breach of an express, written warranty by a licensee to be filed within 18 months from the expiration of the warranty.

    AB 244 (Nakanishi)—Contractors: Home Improvement Contracts, Service and Repair ContractsGenerally, this law provides that a contractor furnishing a bond, bond equivalent, or joint control approved by the Registrar need not include the progress payment details, the progress payment statement, or the down payment statement as part of the contract. The new law also requires that an indictment be brought within a specific period of time from the date of the contract.  If the contract was not in writing, then it is from the date the buyer makes the first payment.

    AB 338 (Coto)—Workers’ Compensation: Temporary Disability PaymentsThe period of time during which an employee can receive aggregate disability payments for a single injury has been increased to five years from the date of injury by this law.

    SB 138 (Calderon)—Construction Contracts: Indemnity Another poorly worded law that provides that, except as specified, all agreements affecting any residential construction contract and amendments to such a contract entered into after Jan. 1, that attempts to indemnify the general contractor or contractor not affiliated with the builder by a subcontractor, against liability for claims of construction defects or other injury to property arising from, pertaining to, or relating to the negligence of the nonaffiliated general contractor or nonaffiliated contractor or their other agents, servants, or independent contractors who are directly responsible to the nonaffiliated general contractor or nonaffiliated contractor, or for defects in design furnished by those persons, or for claims that are unrelated to the scope of the work in the agreement, are unenforceable. There are other important provisions in this law that are not set out herein.

    SB 161 (Margett)—Public Works Contracts: Internet Submissions This law authorizes public entities to receive supporting materials submitted pursuant to a public works contract over the Internet. It requires public entities that receive bids and supporting materials over the Internet to provide an electronic receipt to the contractor. The law also specifies that bids made under the California State University Contract Law may be submitted electronically, 24 hours after the opening of bids. 

    SB 354 (Margett)—Contractors: Aiding Unlicensed Persons This law authorized the Registrar of Contractors to order a licensee to pay a specified sum to an injured party if the Registrar finds that a licensee has aided an unlicensed person in evading the Contractors’ State License Law or allowed an unlicensed person to use his or her license. 

    SB 614 (Simitian)—Public Works: Design-Build ContractsGovernor Arnold Schwarzenegger signed a bill that went to the Secretary of State dealing with ‘design-build contracts’ on Public Works projects. The law will authorize a school district governing board to enter in to design-build contracts that exceed $2,500,000 and extends this authority until Jan. 1, 2014.The law also prohibits retention proceeds to be withheld by a school district or a community college district from the design-build entity to exceed five percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of the bids.Another new law will allow the governing boards of all community college districts to enter into design-build contracts that exceed $2,500,000.

    SB 869 (Ridley-Thomas)—Workers’ Compensation Insurance: Coverage Program This law requires the workers’ compensation insurance coverage program to systematically identify unlawfully uninsured employers. It authorizes the prioritization of targets for the program. It revises the reporting requirements to require a report to be posted on the Labor Commissioner’s Web site. The law also authorizes the funds to be used for the enforcement of the insurance coverage program maintained by the Labor Commissioner.