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ASAC WANTS YOU TO ATTEND!
SPECIAL PRICE DISCOUNT OFFERED.

California Subcontractors Legislative Conference
Wednesday, April 2, 2014
9:00 a.m. - 4:00 p.m.
Hyatt Regency Sacramento
1209 L Street, Sacramento CA

Keynote Speaker:

Robert Padilla
Small Business Advocate
CALIFORNIA HIGH-SPEED RAIL AUTHORITY

Bills Being Lobbied:

AB 1705 SUPPORT; clean up "substantially complex" so 5% retention cap can be maintained
AB 2471 SUPPORT; getting change orders and payment on them!

Issues Being Discussed:

Subcontractor Right to Stop Work for Non-Payment
474 Clean Up
Remove "unless otherwise agreed to in writing"

YOUR Concerns -- An opportunity to ask questions and identify current and emerging issues of subcontractors and suppliers.

Special Panel Discussion:

Surety, Insurance and Contract Concerns of 2014

CLICK HERE TO REGISTER

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ASAC companies in Assembly Member Das Williams' district 37 (Santa Barbara, Ventura, Goleta, Santa Paula, and the Channel   Islands) initially spoke to him about introducing a bill that would cap retentions at 5% in private works. This is great grassroots action!

Upon further discussion with several lobbying trade groups, the idea needs a bit more time to brew, as the 5% cap in public works already has some problems. School districts are declaring simple projects as "substantially complex" which allows the cap to be exceeded. The strategy has long been to let public works accommodate this limitation first and then go for private works. And, the idea that the State should dictate private contracting is troublesome to many.

Assembly Member Williams decided to fix the problems in public works first and has introduced AB 1705 for ASAC. Since then NECA and SMACNA have offered to co-sponsor the measure. ASAC intends to make this the main focus for 2014, and we will lobby this bill when you are here for the CA Subcontractors Legislative Conference on April 2.

CLICK HERE FOR INFORMATION ON THE LEGISLATIVE CONFERENCE

On another issue, ASAC has decided that it will not sponsor legislation this year that would prevent situations whereby subcontractors are required to provide additional insurance for the negligence of general contractors. The current law, effective just 14 months ago, contained a provision that inadvertently allowed this to occur. ASAC's Government Relations Committee detected this deficiency and even suggested amendments to the law that would prevent it from happening.

However, there has been scant evidence of actual harm or damages to subcontractors thus far. Without this many legislators would be (and as other trade organizations already are) reluctant to re-open the debate as the first venture at reforming indemnity laws was extremely hard fought and opponents would quickly seize upon another such bill to attempt further amendments to the detriment of the subcontracting community.

Among several reasons for this decision are:
1. Not enough damage has been caused yet. (Indeed, some maintain that such indemnity policies are unenforceable.)
2. There's enough on our plate already by sponsoring AB 1705 to clean up the "substantially complex" loophole found in AB 293 and already being exploited by some public agencies.
3. Other bills are coming in that we will need to deal with, change orders being one.
4. The legislature doesn't prevent problems...it waits for the whole train to wreck (the "not enough damage" argument).
5. We will have a fight on our hands with AB 1705 as school districts, sanitation districts and maybe water agencies (who will be building facilities pursuant to the Governor's drought legislation) will oppose.
6. There will be opportunities to initiate another bill in January 2015, after the elections when new legislators arrive and the above issues are behind us.

ASAC President Brett Eckles and Government Relations Chair Dan McLennon appreciate your understanding and continuing support as we work through the remainder of this legislative session. Please be sure to register for the second annual CA Subcontractors Legislative Conference on April 2 so you can have a hand in lobbying our many issues! Go here: (www.CaSubLegConf.org)

This is very important...to you.

When Senate Bill 293 passed last year subcontractors believed that they finally achieved a 5% cap on retention in public projects. However, a clause in the bill allows the cap to be exceeded if the project is "substantially complex". Since then we've seen simple projects being declared substantially complex. In effect, public entities are evading the law. Worse, subcontractors are being taken advantage of...again!

We need your help to stop this abuse.
Legislators are convinced of a need only when confronted with actual proof of the abuse. We need your help to prove the problem exists. Gathering hundreds of examples will help legislators move toward retaining the 5% cap.

Please fax or scan and email copies of all bidding docs that declare a project to be "SC" to ASAC immediately. This is your opportunity to "citizen lobby" the issue. YOU hold the key!

No Proof = No 5% Cap!

ASAC represents its Members, and together we make change happen.

FAX TO 530-662-2865
OR
SCAN AND E-MAIL TO
ASAC@ASACALIF.COM

ASAC Appreciates YOUR Help!

Once again as we work in a very active legislative session, ASAC leaders anticipate your doing your part, helping our Subcontractor community when we ask for your letters and phone calls.

Remember -- We only ask when we truly believe your efforts will be influential in determining the direction a bill or movement heads.

Those efforts do make a difference! There's strength in numbers!!!!!

(Updated March 24, 2014)