BILL NUMBER: SB 593	CHAPTERED  09/26/08

	CHAPTER  341
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2008
	PASSED THE SENATE  AUGUST 11, 2008
	PASSED THE ASSEMBLY  AUGUST 7, 2008
	AMENDED IN ASSEMBLY  JUNE 24, 2008
	AMENDED IN ASSEMBLY  MARCH 24, 2008
	AMENDED IN ASSEMBLY  JUNE 18, 2007
	AMENDED IN SENATE  MAY 9, 2007
	AMENDED IN SENATE  APRIL 11, 2007

INTRODUCED BY   Senator Margett

                        FEBRUARY 22, 2007

   An act to add and repeal Section 7202 of the Public Contract Code,
relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 593, Margett. Department of Transportation: retention proceeds.

   Existing law contains various provisions relating to contracts for
the performance of public works of improvement, including provisions
for the disbursing and withholding of retention proceeds.
   This bill would prohibit the Department of Transportation from
withholding retention proceeds when making progress payments for work
performed by a contractor.
   This bill would provide for the repeal of these provisions on
January 1, 2014.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7202 is added to the Public Contract Code, 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 of the Public Contract Code.
   (c) The department shall promptly notify the appropriate policy
committees of the Legislature if the state's best interests are
compromised because retention was not withheld on a transportation
project.
   (d) This section shall become inoperative and shall be repealed on
January 1, 2014.