Enrolled September 09, 2019 Passed IN Senate April 22, 2019 Passed IN Assembly September 05, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 197Introduced by Senator Beall(Coauthor: Senator Galgiani)January 31, 2019 An act to amend Section 7202 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 197, Beall. Department of Transportation: retention proceeds.Existing law prohibits the Department of Transportation, until January 1, 2020, from withholding retention proceeds when making progress payments for work performed by a contractor.This bill would delete the repeal of this provision, thereby making the prohibition operative indefinitely.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7202 of the Public Contract Code is amended to read:7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project.(b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200.(c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project. Enrolled September 09, 2019 Passed IN Senate April 22, 2019 Passed IN Assembly September 05, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 197Introduced by Senator Beall(Coauthor: Senator Galgiani)January 31, 2019 An act to amend Section 7202 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 197, Beall. Department of Transportation: retention proceeds.Existing law prohibits the Department of Transportation, until January 1, 2020, from withholding retention proceeds when making progress payments for work performed by a contractor.This bill would delete the repeal of this provision, thereby making the prohibition operative indefinitely.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Enrolled September 09, 2019 Passed IN Senate April 22, 2019 Passed IN Assembly September 05, 2019 Enrolled September 09, 2019 Passed IN Senate April 22, 2019 Passed IN Assembly September 05, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 197 Introduced by Senator Beall(Coauthor: Senator Galgiani)January 31, 2019 Introduced by Senator Beall(Coauthor: Senator Galgiani) January 31, 2019 An act to amend Section 7202 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 197, Beall. Department of Transportation: retention proceeds. Existing law prohibits the Department of Transportation, until January 1, 2020, from withholding retention proceeds when making progress payments for work performed by a contractor.This bill would delete the repeal of this provision, thereby making the prohibition operative indefinitely. Existing law prohibits the Department of Transportation, until January 1, 2020, from withholding retention proceeds when making progress payments for work performed by a contractor. This bill would delete the repeal of this provision, thereby making the prohibition operative indefinitely. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 7202 of the Public Contract Code is amended to read:7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project.(b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200.(c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 7202 of the Public Contract Code is amended to read:7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project.(b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200.(c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project. SECTION 1. Section 7202 of the Public Contract Code is amended to read: ### SECTION 1. 7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project.(b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200.(c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project. 7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project.(b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200.(c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project. 7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project.(b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200.(c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project. 7202. (a) The Department of Transportation is prohibited from withholding retention proceeds when making progress payments to a contractor for work performed on a transportation project. (b) Nothing in this section shall alter, amend, or impair the rights, duties, and obligations of an original contractor, its subcontractors, and all subcontractors thereunder, relating to the construction of any public work of improvement as set forth in Section 7200. (c) The Department of Transportation shall promptly notify the appropriate policy committees of the Legislature if the states best interests are compromised because retention was not withheld on a transportation project.