BILL NUMBER: AB 1671	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 14, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1671, as introduced, Huffman. Department of Transportation:
retention proceeds.
   Existing law prohibits the Department of Transportation, until
January 1, 2014, from withholding retention proceeds when making
progress payments for work performed by a contractor.
   This bill would make these provisions operative until January 1,
2020. The bill would also make a statement of legislative findings.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) California's construction industry has experienced one of the
worst economic downturns in its history.
   (2) Unemployment within California's construction industry has
exceeded 30 percent or more statewide.
   (3) The California Department of Transportation (Caltrans) remains
one of the few areas in public works that continues to actively
request bids for numerous construction projects statewide.
   (4) These projects have had, and will continue to have, a
significant positive impact on employment within the construction
industry.
   (5) Much of Caltrans' work is funded through federal moneys which
already stipulate that 0-percent retentions can be withheld on all
passthrough funding.
   (6) Zero-percent retentions have had such a positive impact on
contractor viability and, in turn, employment particularly during
these extremely competitive times.
   (7) Increased competition through the viability of contractors
that have benefited from 0-percent retentions ensures that Caltrans
receives the best prices on all of its construction work.
   (8) Extending the operation of 0-percent retentions on
transportation contracts provides confidence within California's
construction industry to continue working with Caltrans on projects
to help rebuild California's infrastructure.
  SEC. 2.  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 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   2020  .