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Assembly Bill 1094 (Thurman – 1977)

Chapter 721, Statutes of 1977

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Section 7108.5 was added to the Business and Professions Code in 1977 following legislative passage of Assembly Bill 1094, which affected only this section.  (See Exhibit #1c)  This bill was introduced on March 24, 1977 by Assembly member John E. Thurman at the request of the Construction Industry Legislative Council.  (See Exhibits #1a and #10, document PE-2)

Assembly Bill 1094 was assigned to the Assembly Committee on Labor, Employment and Consumer Affairs and the Senate Committee on Governmental Organization where policy issues raised by the bill were considered.  (See Exhibits #3 and #5)  One amendment was made to Assembly Bill 1094.  (See Exhibit #1b)  Subsequent to legislative approval, Governor Edmund G. Brown, Jr., signed the bill on September 12, 1977, and it was recorded by the Secretary of State on that date as Chapter 721 of the Statutes of 1977.  (See Exhibits #1c and #2)

The Senate Republican Caucus’ Third Reading analysis of Assembly Bill 1094 as last amended described this bill as follows:

Requires all prime building contractors, in all public and private projects, to pay the specialty contractors with whom they subcontract within 10 days of receipt of a progress payment, unless a different arrangement is made in writing.

Failure to pay the amount within 10 days is cause for disciplinary action.
(See Exhibit #7, page 1)