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Assembly Bill 2962 (Baca – 1994)

Chapter 1046, Statutes of 1994

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Civil Code section 3260 was amended in 1994 following legislative passage of Assembly Bill 2962, a single-section bill that amended section 3260 only.  (See Exhibit #1b)  Assembly member Joe Baca introduced Assembly Bill 2962 on February 18, 1994, on behalf of the California Concrete Contractors Association.  (See Exhibits #3, #4, document AP-1, #6; and #7, Document SP-1)

Assembly Bill 2962 was assigned to the Assembly Committee on Consumer Protection, Governmental Efficiency, and Economic Development and the Senate Committee on Judiciary where policy issues raised by the bill were considered.  (See Exhibits #2, #3 and #6)  No amendments were made to Assembly Bill 2962 during the legislative process.  (See Exhibits #1 and #2)  Subsequent to Legislative approval, Governor Pete Wilson signed the bill on September 28, 1994, and it was recorded by the Secretary of State on the following day as Chapter 1046 of the Statutes of 1994.  (See Exhibits #1b and #2) 

The Consent analysis prepared by the Office of Senate Floor Analyses summarized Assembly Bill 2962 as follows:

. . . This bill clarifies the law to provide that a contractor’s bona fide dispute with one particular subcontractor permits the contractor to withhold payment of retention proceeds from that subcontractor, but does not allow the contractor to withhold payment from the other subcontractors.
(See Exhibit #8, page 1)