CA AB975

Provides contractor payment protection for school facility lease-leaseback projects executed before July 1, 2015 that are later determined to be invalid by a court.

Entitles contractors to reasonable compensation for labor, equipment, materials, and services furnished before the invalidity determination, provided the contractor acted in good faith and no fraud occurred.

Limits contractor payments to costs included in the original instrument plus approved change orders.

Declares the act an urgency statute effective immediately to address legal challenges to lease-leaseback school construction agreements following a June 1, 2015 appellate court decision.

Does not affect existing protests, legal proceedings, or rights under California Code of Civil Procedure sections 337.1 or 337.15.