Bill
AB 778
Local agencies must post construction payment details on their websites within 10 days of payment, boosting transparency for taxpayers and contractors.
Overview
- Date introduced: February 18, 2025
- Author: Assemblymember Chen
- Status: Referred to the Assembly Committee on Local Government (L. GOV) on March 3, 2025
- Topic: Requires local agencies with internet websites to publicly post certain construction payment information to increase transparency, aligning local practice with existing state posting requirements.
Purpose and intent
- The bill aims to improve transparency around local public construction payments by ensuring timely public posting of key payment information on local agency websites.
- It mirrors the posting requirements already in place for state agencies under the State Contract Act, but applies them to local agencies.
Key provisions
- Posting obligation:
- A local agency that maintains an internet website must post within 10 days of making a construction contract payment:
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 agency transmitted instructions to make the payment
4) The payment application number or other identifying information
5) The amount of the payment
- Exemption:
- The posting requirement does not apply to construction contracts valued below $25,000.
- Retention provision:
- If a local agency fails to comply with the posting requirement, it shall not withhold any retention proceeds from any remaining payment to a public entity (as described in subdivision (b) of Section 7201).
- Fiscal and mandate provisions:
- The bill creates a state-mandated local program, meaning the state may reimburse local entities for certain costs if mandated costs are determined.
- If the California Commission on State Mandates determines the bill contains costs mandated by the state, reimbursement would follow Government Code Part 7 (commencing with Section 17500) of Division 4 of Title 2.
Who is affected
- Local agencies that maintain an internet website (cities, counties, and certain special districts) that engage in construction contracts and make payments under those contracts.
- Contractors, subcontractors, and the public who rely on payment information for transparency and verification.
Timing and procedural notes
- The bill is currently in the committee stage (L. GOV).
- Timeline highlights:
- February 18, 2025: Introduced
- February 19, 2025: From printer; may be heard in committee March 21
- March 3, 2025: Referred to Committee on Local Government
- If enacted, the posting requirements would take effect upon becoming law, with the 10-day posting window applying to payments after enactment.
Impact considerations
- Potential benefits: Enhanced transparency for taxpayers and contractors; easier public tracking of local government payments; potential reduction in disputes related to contract payments.
- Potential burdens: Administrative workload for local agencies to publish payment data within 10 days; compliance systems may need updating to ensure timely posting.
- Financial implications: No explicit appropriation; costs, if any, may be reimbursed if the mandate is deemed state-mandated, per mandate procedures.
Compiled from official sources — confirm details with the bill’s official record.
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