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1A-~ Legislative Bill Action ............................................................... The follow:1g are summaries of just a fpw of the legislative bills that are currentl~ being acte~ ~pon by the Leag:oe of California Cities. For more informati,?n about these an~.other bills, please VISit the League website's new "Issues and .\dvocacy page (www.caCltles..ora~ " issuesandadvocacv) - a one-stop location to access information about legislation, poli?y Issues, and related developments, You can track information on bills (www.cacities.orgllegtracklng), locate legislators and legislative committees, send letters to legislators or the med~a through the online Advocacy Center, research League policy positions, access useful related links, and much more. SB 1839 imposes tort concepts of liability TRANSPORTATION AND PUBLIC WORKS sharing according to fault on contracts, It re- moves the ability of a public entity to negotiate AB 2690 (Hancock) Public Works: Funds. indemnity language, restates the law that it is against public policy to cause someone to indem- This bill is intended to address an issue that has nify another for that person's sole active negli- garnered significant attention in recent months gence or willful misconduct, and it does not allow concerning the use of volunteer labor on certain for transfer of liability for design defects, As public works projects. As Amended 4/12/04 the written, the bill would broadly apply to nearly any bill rovides that, to the extent that public funds are contract related to construction including design, made available for ecological restoration, water- engineering, specialty consultants such as envi- shed-based community outreach and environ- ronmental and geotech consultants, project mental education projects, the funds shall be management, construction management and expended to preserve the ability for citizens to inspection. volunteer and work in concert with workers paid prevailing wages, thereby providing benefits to SB 1839 removes the additional insured both community sustainability and the ecological benefits and causes the city, county and the health of the state's watershed and natural re- contractor's insurance company to sue one sources, another to determine who will pay what. The only entities who will benefit from SB 1839 are the Much of the attention garnered by this bill is a insurance companies and the lawyers for those result of an enforcement action taken by the companies. This will make the lawsuits more Department of Industrial Relations (DIR) in July extensive, reduce the possibility of settlements 2003 in relation to a stream restoration project in and increase litigation. Staff: Natasha Fooman; Shasta County. Staff: Natasha Fooman; Status: Status: SenJud, Hrg. 4/27; Position: Oppose. AsLab&Emp, Hrg. 4/21/04; Position: Support. SB 1839 (Figueroa) Construction Con- AB 2549 (Pacheco) Works of Improvement: Disputed Amounts. The League is working with tracts: Indemnity Agreements. SB 1839 as the sponsor's office to address the following drafted would apply to existing contracts and concerns with this bill: AB 2549 amends Public revise and recast indemnity provisions to apply to Contract Code section 7107, which would directly damages arising in whole or in part from the affect cities and counties. Existing law authorizes negligence or willful misconduct of the indemnitee cities and counties to withhold "an amount not to or his or her agents, servants, or independent exceed 150 percent of the disputed amount" from contractors who are directly or indirectly respon- payments otherwise owed to contractors, AB sible to the indemnitee, as well as to agreements 2549 would limit with holdings to: liquidated dam- to defend an indemnitee. ages, plus the amount withheld pursuant to Civil Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 6