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SENATE BILL 2197 (CAMPBELL – 1978)

CHAPTER 1374, STATUTES OF 1978, SB 2197

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Section 1670 was added to the Civil Code in 1978 following legislative passage of Senate Bill 2197, which affected this section only.  (See Exhibit #1d)  Senator William Campbell introduced the bill on April 24, 1978 at the request of the Associated General Contractors Association.  (See Exhibits #1a and #3) 

While before the Legislature, Senate Bill 2197 was heard by the Senate Committee on Judiciary and the Assembly Committee on Judiciary.  (See Exhibits #3 and #7)  Senate Bill 2197 was amended twice, once in each House.  (See Exhibits #1b, #1c, and #2) After approval by the Legislature Senate Bill 2197 was approved by Governor Edmund G. Brown, Jr., and recorded as Chapter 1374 of the Statutes of 1978.  (See Exhibits #1d and #2)

The Enrolled Bill Memorandum that was prepared by the Legislative Secretary of described Senate Bill 2197 as last amended as follows:

This bill would require any dispute arising under a public works contract which contains a provision specifying that one party to the contract will decide disputes to be resolved through independent arbitration, if mutually agreeable, otherwise by litigation.
(See Exhibit #12, document PE-1)

The analysis prepared for the Senate Committee on Judiciary stated that the “purpose of the bill is to enable construction contractors to obtain de novo review of disputes arising from contracts with public agencies.” (See Exhibit #3, page 1)