AB 1003

This bill eliminates the requirement for the Department of Workforce

Development (DWD) to index dollar amounts for certain public projects. Current law

sets forth provisions that are required to be included in certain contracts with the

state or with local units of government for public improvements or other public

works. The required provisions vary depending on the amount of money involved in

the contract. Current law lists certain requirements for every contract involving

$10,000 or more for performing, furnishing, or procuring labor, services, materials,

plans, or specifications, and other requirements for every contract involving $30,000

or more for those items.

Current law requires varying provisions in state contracts for public

improvements or other public works involving more than $10,000 but less than

$100,000, in contracts involving more than $100,000 but less than $250,000, and in

contracts involving more than $250,000. Current law also requires varying

provisions in local government contracts for public improvements and other public

works involving more than $10,000 but less than $50,000, in contracts involving

more than $50,000 but less than $100,000, and in contracts involving more than

$100,000.

Current law requires DWD to index the dollar amounts biennially and to keep

adjustments proportional to the last adjustment. Under current law, DWD need not

make an adjustment for a biennium if the adjustment would be less than five percent.

This bill sets the dollar amounts involved in the contracts for public

improvements or other public works at their current indexed levels and eliminates

future indexing.