California 2019 2019-2020 Regular Session

California Senate Bill SB197 Chaptered / Bill

Filed 10/12/2019

                    Senate Bill No. 197 CHAPTER 842 An act to amend Section 7202 of the Public Contract Code, relating to public contracts.  [ Approved by  Governor  October 12, 2019.  Filed with  Secretary of State  October 12, 2019. ] 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.

 Senate Bill No. 197 CHAPTER 842 An act to amend Section 7202 of the Public Contract Code, relating to public contracts.  [ Approved by  Governor  October 12, 2019.  Filed with  Secretary of State  October 12, 2019. ] 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 

 Senate Bill No. 197 CHAPTER 842

 Senate Bill No. 197

 CHAPTER 842

 An act to amend Section 7202 of the Public Contract Code, relating to public contracts. 

 [ Approved by  Governor  October 12, 2019.  Filed with  Secretary of State  October 12, 2019. ] 

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.