Public Contract Code

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6984. (a) Beginning 12 months after an entity is awarded a covered public contract, the contractor shall annually submit information that is necessary to demonstrate its compliance with the requirements, as specified in Sections 6983 and 6985, to the relevant public agency. (b) Before receiving any final payment on a covered public contract, a contractor shall submit a final report to the relevant public agency that demonstrates its compliance with the requirements, as specified in Sections 6983 and 6985, for the duration of the covered public contract. (c) If a contractor fails to comply with the reporting requirements specified in subdivision (a), for each missed report the relevant public agency shall withhold ten thousand dollars ($10,000) in payment to the contractor, or the full payment to the contractor if the amount due is less than ten thousand dollars ($10,000), until the contractor takes steps to cure the defect, pursuant to subdivision (e). (d) If a contractor fails to comply with the final reporting requirements specified in subdivision (b), the relevant public agency shall withhold ten thousand dollars ($10,000) from the final payment, or the full final payment, if the amount due is less than ten thousand dollars ($10,000), until the contractor takes steps to cure the defect, pursuant to subdivision (e). (e) A contractor that fails to comply with the reporting requirements established in subdivision (a) or (b) shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days, but not more than 30 calendar days from the date of notice, the contractor refuses to comply with the reporting requirements, the relevant public agency shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if the amount due is less than ten thousand dollars ($10,000). (f) For covered public contracts awarded pursuant to a master agreement or master contract agreement, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the reporting requirements described in subdivisions (a) and (b). (g) This section does not limit the availability of standard breach of contract remedies if a contractor fails to comply with the requirements specified in Sections 6983 and 6985, including, but not limited to, termination of the covered contract. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 6986.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6985. (a) The Legislature declares all of the following: (1) California will experience an increased prevalence of severe wildfires, heat, drought, and rising sea levels in the coming years as a result of climate change. (2) The effects of climate change have already cost the state billions of dollars and will only continue to increase if we do not take immediate and decisive action to cut emissions. To name a few, these costs include all of the following: (A) In 2018, California wildfire damages were estimated to total one hundred forty-eight billion five hundred million dollars ($148,500,000,000). (B) The 2021 drought directly cost the California agriculture sector about one billion one hundred million dollars ($1,100,000,000) and nearly 8,750 full- and part-time jobs. (C) The sea level along California's coasts is projected to rise by as much as 20 to 55 inches by the end of the century. A 55-inch sea level rise could put nearly half a million people at risk of flooding by 2100, and threaten one hundred billion dollars ($100,000,000,000) in costs to property and infrastructure, including roadways, buildings, hazardous waste sites, power plants, parks, and tourist destinations. (3) The Intergovernmental Panel on Climate Change (IPCC) has found global emissions must be reduced by 43 percent by 2030 in order to limit global warming to around 1.5 degrees Celsius. (4) The transportation sector in California accounts for 41 percent of the state’s total carbon emissions. (5) Recognizing the extreme financial threat climate change poses to the economy of California, the state has a financial interest in rolling out zero-emission transit vehicles as quickly and expeditiously as possible. (b) To protect the state’s proprietary and economic interests in performing the covered public contract without interruption due to the economic effects of a labor dispute, the contractor and any subcontractors performing work to fulfill the covered public contract, shall enter into a labor peace agreement with any organization of any kind in which its employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work and which requests a labor peace agreement. (1) The labor peace agreement shall include a binding and enforceable provision prohibiting the organization and its members from engaging in picketing, work stoppages, boycotts, or any other economic interference for the duration of the labor peace agreement, which shall include the entire term of the covered public contract. (2) This subdivision shall not be construed as requiring a contractor or any subcontractor to change terms and conditions of employment for its employees, recognize a labor organization as the bargaining representative for its employees, adopt any particular recognition process, or enter into a collective bargaining agreement with a labor organization. (3) This subdivision does not abridge the rights, privileges, and benefits afforded by federal law, as applicable, including, but not limited to, Section 5333 of Title 49 of the United States Code. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, pursuant to Section 6986.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.8. High Road Jobs in Transportation-Related Public Contracts and Grants Pilot Program [6980 - 6986] ( Chapter 6.8 added by Stats. 2022, Ch. 875, Sec. 1. ) ## 6986. This chapter shall remain in effect only until January 1, 2028, and as of that date is repealed. (Added by Stats. 2022, Ch. 875, Sec. 1. (SB 674) Effective January 1, 2023. Repealed as of January 1, 2028, by its own provisions. Note: Repeal affects Chapter 6.8, commencing with Section 6980.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.9. Embedding Workforce Standards in Procurement and Contracting [6990 - 6990.1] ( Chapter 6.9 added by Stats. 2023, Ch. 61, Sec. 3. ) ## 6990. It is the intent of the Legislature, in enacting this chapter, to develop procurement models in alignment with initiatives to enhance the state’s training and access pipeline for quality jobs and the application of community benefits on infrastructure and manufacturing investments funded by the federal Infrastructure and Investment Jobs Act, the Inflation Reduction Act, and the CHIPS and Science Act. (Added by Stats. 2023, Ch. 61, Sec. 3. (SB 150) Effective July 10, 2023.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 6.9. Embedding Workforce Standards in Procurement and Contracting [6990 - 6990.1] ( Chapter 6.9 added by Stats. 2023, Ch. 61, Sec. 3. ) ## 6990.1. (a) The Labor and Workforce Development Agency, the Government Operations Agency, and the Transportation Agency shall do all of the following: (1) Convene relevant stakeholders to provide input on recommendations to establish terms to be included as a material part of a contract, including measurable results to ensure that investments maximize benefits to marginalized and disadvantaged communities. (2) Meet with those stakeholders no less than three times during the process of developing recommendations described in paragraph (1). (3) Consult with the Civil Rights Department, other relevant state agencies, and a research or academic institution for the University of California for purposes of developing recommendations described in paragraph (1). (b) The recommendations described in paragraph (1) of subdivision (a) shall be provided to the Governor and the Legislature by March 30, 2024. The recommendations shall also be presented to the California Workforce Development Board in a regularly scheduled public meeting. (c) For purposes of this section, relevant stakeholders shall include representatives from local public agencies, labor organizations that represent workers in manufacturing, business organizations, nonprofit organizations that represent women in the construction industry, organizations representing the formerly incarcerated, and organizations that represent populations historically marginalized in the California economy. (Added by Stats. 2023, Ch. 61, Sec. 3. (SB 150) Effective July 10, 2023.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7100. Provisions in public works contracts with public entities which provide that acceptance of a payment otherwise due a contractor is a waiver of all claims against the public entity arising out of the work performed under the contract or which condition the right to payment upon submission of a release by the contractor of all claims against the public entity arising out of performance of the public work are against public policy and null and void. This section shall not prohibit a public entity from placing in a public works contract and enforcing a contract provision which provides that payment of undisputed contract amounts is contingent upon the contractor furnishing the public entity with a release of all claims against the public entity arising by virtue of the public works contract related to those amounts. Disputed contract claims in stated amounts may be specifically excluded by the contractor from the operation of the release. (Added by Stats. 1982, Ch. 1120, Sec. 4.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7101. The state or any other public entity in any public works contract awarded to the lowest bidder, may provide for the payment of extra compensation to the contractor for the cost reduction changes in the plans and specifications for the project made pursuant to a proposal submitted by the contractor. The extra compensation to the contractor shall be 50 percent of the net savings in construction costs as determined by the public entity. For projects under the supervision of the Department of Transportation or local or regional transportation entities, the extra compensation to the contractor shall be 60 percent of the net savings, if the cost reduction changes significantly reduce or avoid traffic congestion during construction of the project, in the opinion of the public entity. The contractor may not be required to perform the changes contained in an eligible change proposal submitted in compliance with the provisions of the contract unless the proposal was accepted by the public entity. (Amended by Stats. 2001, Ch. 166, Sec. 1. Effective January 1, 2002.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7102. Contract provisions in construction contracts of public agencies and subcontracts thereunder which limit the contractee’s liability to an extension of time for delay for which the contractee is responsible and which delay is unreasonable under the circumstances involved, and not within the contemplation of the parties, shall not be construed to preclude the recovery of damages by the contractor or subcontractor. No public agency may require the waiver, alteration, or limitation of the applicability of this section. Any such waiver, alteration, or limitation is void. This section shall not be construed to void any provision in a construction contract which requires notice of delays, provides for arbitration or other procedure for settlement, or provides for liquidated damages. (Amended by Stats. 1987, Ch. 98, Sec. 1.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7103. (a) (1) Every original contractor that is awarded a contract by a state entity, as defined in subdivision (d), involving an expenditure in excess of twenty-five thousand dollars ($25,000) for any public work shall, before entering upon the performance of the work, file a payment bond with and approved by the officer or state entity that awarded the contract. The bond shall be in a sum not less than 100 percent of the total amount payable by the terms of the contract. (2) The state entity shall state in its call for bids for any contract that a payment bond is required in the case of such an expenditure. (b) A payment bond filed and approved in accordance with this section shall be sufficient to enter upon the performance of work under a duly authorized contract that supplements the contract for which the payment bond was filed if the requirement of a new bond is waived by the state entity. (c) For purposes of this section, providers of architectural, engineering, and land surveying services pursuant to a contract with a state entity for a public work shall not be deemed an original contractor and shall not be required to post or file the payment bond required in subdivisions (a) and (b). (d) For purposes of this section, “state entity” means every state office, department, division, bureau, board, or commission, but does not include the Legislature, the courts, any agency in the judicial branch of government, or the University of California. All other public entities shall be governed by Section 9550 of the Civil Code. (e) For purposes of this section, “public work” includes the erection, construction, alteration, repair, or improvement of any state structure, building, road, or other state improvement of any kind. (Amended by Stats. 2010, Ch. 697, Sec. 44. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7103.5. (a) As used in this section: (1) “Public works contract” means a contract awarded through competitive bids by the state or any of its political subdivisions or public agencies, on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code, for the erection, construction, alteration, repair, or improvement of any structure, building, road, or other improvement of any kind. (2) “Awarding body” means the state or the subdivision or agency awarding a public works contract. (b) In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties. (c) Subdivision (b) shall be included in full in the specifications for the public works contract or in the general provisions incorporated therein and shall be included in full in the public works contract or in the general provisions incorporated therein. (Added by renumbering Section 7103 (as added by Stats. 1990, Ch. 694) by Stats. 1991, Ch. 1091, Sec. 121.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7104. Any public works contract of a local public entity which involves digging trenches or other excavations that extend deeper than four feet below the surface shall contain a clause which provides the following: (a) That the contractor shall promptly, and before the following conditions are disturbed, notify the local public entity, in writing, of any: (1) Material that the contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law. (2) Subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to bidders prior to the deadline for submitting bids. (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract. (b) That the local public entity shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order under the procedures described in the contract. (c) That, in the event that a dispute arises between the local public entity and the contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the contractor’s cost of, or time required for, performance of any part of the work, the contractor shall not be excused from any scheduled completion date provided for by the contract, but shall proceed with all work to be performed under the contract. The contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties. (Amended by Stats. 2006, Ch. 183, Sec. 1. Effective January 1, 2007.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7105. (a) Construction contracts of public agencies shall not require the contractor to be responsible for the cost of repairing or restoring damage to the work, which damage is determined to have been proximately caused by an act of God, in excess of 5 percent of the contracted amount, provided, that the work damaged is built in accordance with accepted and applicable building standards and the plans and specifications of the awarding authority. However, contracts may include provisions for terminating the contract. The requirements of this section shall not be mandatory as to construction contracts financed by revenue bonds. This section shall not prohibit a public agency from requiring that a contractor obtain insurance to indemnify the public agency for any damage to the work caused by an act of God if the insurance premium is a separate bid item. If insurance is required, requests for bids issued by public agencies shall set forth the amount of the work to be covered and the contract resulting from the requests for bids shall require that the contractor furnish evidence of satisfactory insurance coverage to the public agency prior to execution of the contract. (b) For the purposes of this section: (1) “Public agency” shall include the state, the Regents of the University of California, a city, county, district, public authority, public agency, municipal utility, and any other political subdivision or public corporation of the state. (2) “Acts of God” shall include only the following occurrences or conditions and effects: earthquakes in excess of a magnitude of 3.5 on the Richter Scale and tidal waves. (c) Public agencies may make changes in construction contracts for public improvements in the course of construction to bring the completed improvements into compliance with environmental requirements or standards established by state and federal statutes and regulations enacted after the contract has been awarded or entered into. The contractor shall be paid for the changes in accordance with the provisions of the contract governing payment for changes in the work or, if no provisions are set forth in the contract, payment shall be as agreed to by the parties. (d) (1) Where authority to contract is vested in any public agency, excluding the state, the authority shall include the power, by mutual consent of the contracting parties, to terminate, amend, or modify any contract within the scope of such authority. (2) Paragraph (1) shall not apply to contracts entered into pursuant to any statute expressly requiring that contracts be let or awarded on the basis of competitive bids. Contracts of public agencies, excluding the state, required to be let or awarded on the basis of competitive bids pursuant to any statute may be terminated, amended, or modified only if the termination, amendment, or modification is so provided in the contract or is authorized under provision of law other than this subdivision. The compensation payable, if any, for amendments and modifications shall be determined as provided in the contract. The compensation payable, if any, in the event the contract is so terminated shall be determined as provided in the contract or applicable statutory provision providing for the termination. (3) Contracts of public agencies may include provisions for termination for environmental considerations at the discretion of the public agencies. (Added by renumbering Section 7104 (as added by Stats. 1990, Ch. 694) by Stats. 1991, Ch. 1091, Sec. 122.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7106. Every bid on every public works contract of a public entity shall include a declaration under penalty of perjury under the laws of the State of California, in the following form: “NONCOLLUSION DECLARATION TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID The undersigned declares: I am the ____ of ____, the party making the foregoing bid. The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose. Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ___[date], at ___[city], ___[state].” (Amended by Stats. 2011, Ch. 432, Sec. 37. (SB 944) Effective January 1, 2012.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7107. (a) This section is applicable with respect to all contracts entered into on or after January 1, 1993, relating to the construction of any public work of improvement. (b) The retention proceeds withheld from any payment by the public entity from the original contractor, or by the original contractor from any subcontractor, shall be subject to this section. (c) Within 60 days after the date of completion of the work of improvement, the retention withheld by the public entity shall be released. In the event of a dispute between the public entity and the original contractor, the public entity may withhold from the final payment an amount not to exceed 150 percent of the disputed amount. For purposes of this subdivision, “completion” means any of the following: (1) The occupation, beneficial use, and enjoyment of a work of improvement, excluding any operation only for testing, startup, or commissioning, by the public agency, or its agent, accompanied by cessation of labor on the work of improvement. (2) The acceptance by the public agency, or its agent, of the work of improvement. (3) After the commencement of a work of improvement, a cessation of labor on the work of improvement for a continuous period of 100 days or more, due to factors beyond the control of the contractor. (4) After the commencement of a work of improvement, a cessation of labor on the work of improvement for a continuous period of 30 days or more, if the public agency files for record a notice of cessation or a notice of completion. (d) Subject to subdivision (e), within seven days from the time that all or any portion of the retention proceeds are received by the original contractor, the original contractor shall pay each of its subcontractors from whom retention has been withheld, each subcontractor’s share of the retention received. However, if a retention payment received by the original contractor is specifically designated for a particular subcontractor, payment of the retention shall be made to the designated subcontractor, if the payment is consistent with the terms of the subcontract. (e) The original contractor may withhold from a subcontractor its portion of the retention proceeds if a bona fide dispute exists between the subcontractor and the original contractor. The amount withheld from the retention payment shall not exceed 150 percent of the estimated value of the disputed amount. (f) In the event that retention payments are not made within the time periods required by this section, the public entity or original contractor withholding the unpaid amounts shall be subject to a charge of 2 percent per month on the improperly withheld amount, in lieu of any interest otherwise due. Additionally, in any action for the collection of funds wrongfully withheld, the prevailing party shall be entitled to attorney’s fees and costs. (g) If a state agency retains an amount greater than 125 percent of the estimated value of the work yet to be completed pursuant to Section 10261, the state agency shall distribute undisputed retention proceeds in accordance with subdivision (c). However, notwithstanding subdivision (c), if a state agency retains an amount equal to or less than 125 percent of the estimated value of the work yet to be completed, the state agency shall have 90 days in which to release undisputed retentions. (h)Any attempted waiver of the provisions of this section shall be void as against the public policy of this state. (Amended by Stats. 1998, Ch. 857, Sec. 3. Effective January 1, 1999.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7108. Any contract of a public entity to provide train service shall require compliance with the personnel requirements of Chapter 2 (commencing with Section 6900) of Part 2 of Division 5 of the Labor Code. (Added by Stats. 1994, Ch. 976, Sec. 2. Effective January 1, 1995.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7109. (a) For purposes of this section: (1) “Antigraffiti technology” means landscaping, paint, or other covering resistant to graffiti, or other procedures to deter graffiti. (2) “Graffiti” means any unauthorized inscription, work, figure, or design that is marked, etched, scratched, drawn, or painted on any structural component of any building, structure, or other facility regardless of its content or nature and regardless of the nature of the material of the structural component. (3) “Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (b) If a public entity determines that a project may be vulnerable to graffiti and the public entity will be awarding a public works contract after January 1, 1996, for that project, it is the intent of the Legislature that the public entity may do one or more of the following: (1) Include a provision in the public works contract that specifies requirements for antigraffiti technology in the plans and specifications for the project. (2) Establish a method to finance a graffiti abatement program. (3) Establish a program to deter graffiti. (Added by Stats. 1994, Ch. 504, Sec. 1. Effective January 1, 1995.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7110. (a) It is the policy of this state that anyone who enters into a contract with a state agency shall recognize the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code. (b) Every written contract in excess of one hundred thousand dollars ($100,000) executed between a contractor and a state agency shall contain the following: (1) An acknowledgment by the contractor of the policy of the state set forth in subdivision (a). (2) An acknowledgment by the contractor that to the best of its knowledge it is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the Employment Development Department. (Added by Stats. 1998, Ch. 899, Sec. 3. Effective January 1, 1999.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7200. (a) (1) This section shall apply with respect to all contracts entered into on or after January 1, 1999, between a public entity and an original contractor, between an original contractor and a subcontractor, and between all subcontractors thereunder, relating to the construction of any public work of improvement. (2) For purposes of this section, “public entity” means the state, including every state agency, office, department, division, bureau, board, or commission, a city, county, city and county, including chartered cities and chartered counties, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. (b) In a contract between the original contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld may not exceed the percentage specified in the contract between the public entity and the original contractor. (c) When a performance and payment bond is required in the solicitation for bids, subdivision (b) shall not apply to either of the following: (1) The original contractor, if the subcontractor fails or refuses to provide a performance and payment bond, issued by an admitted surety insurer, to the original contractor. (2) The subcontractor, if a subcontractor thereunder fails or refuses to provide a performance and payment bond, issued by an admitted surety insurer, to the subcontractor. (d) No party identified in subdivision (b) shall require any other party to waive any provision of this section. (e) In the event that the contractor elects to substitute securities in lieu of retentions, the contractor may withhold from his or her subcontractors, who have not elected to substitute securities in lieu of retentions, the amount of retentions that would have otherwise been withheld. (Added by Stats. 1998, Ch. 857, Sec. 4. Effective January 1, 1999.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7201. (a) (1) This section shall apply with respect to all contracts entered into on or after January 1, 2012, between a public entity and an original contractor, between an original contractor and a subcontractor, and between all subcontractors thereunder, relating to the construction of any public work of improvement. (2) Under no circumstances shall any provision of this section be construed to limit the ability of any public entity to withhold 150 percent of the value of any disputed amount of work from the final payment, as provided for in subdivision (c) of Section 7107. In the event of a good faith dispute, nothing in this section shall be construed to require a public entity to pay for work that is not approved or accepted in accordance with the proper plans or specifications. (3) For purposes of this section, “public entity” means the state, including every state agency, office, department, division, bureau, board, or commission, the California State University, the University of California, a city, county, city and county, including charter cities and charter counties, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. (b) (1) The retention proceeds withheld from any payment by a public entity from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder shall not exceed 5 percent of the payment. In no event shall the total retention proceeds withheld exceed 5 percent of the contract price. In a contract between the original contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the public entity and the original contractor. (2) This subdivision shall not apply if the contractor provides written notice to the subcontractor, pursuant to subdivision (c) of Section 4108, prior to, or at, the time that the bid is requested, that bonds shall be required, and the subcontractor subsequently is unable or refuses to furnish to the contractor a performance and payment bond issued by an admitted surety insurer. (3) Notwithstanding any other provision of this subdivision, the retention proceeds withheld from any payment by an awarding entity set forth in paragraphs (1) to (5), inclusive, of subdivision (a) of Section 10106, from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, may exceed 5 percent on specific projects where the director of the department has made a finding prior to the bid that the project is substantially complex and therefore requires a higher retention amount than 5 percent and the department includes in the bid documents details explaining the basis for the finding and the actual retention amount. In a contract between the original contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the department and the original contractor. (4) Notwithstanding any other provision of this subdivision, the retention proceeds withheld from any payment by the awarding entity of a city, county, city and county, including charter cities and charter counties, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency, from the original contractor, by the original contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, may exceed 5 percent on specific projects where the governing body of the public entity or designee, including, but not limited to, a general manager or other director of an appropriate department, has approved a finding, on a project by project basis, during a properly noticed and normally scheduled public hearing and prior to bid that the project is substantially complex and therefore requires a higher retention amount than 5 percent and the awarding entity includes in the bid documents details explaining the basis for the finding and the actual retention amount. In a contract between the original contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the department and the original contractor. (5) Any finding by a public entity that a project is substantially complex shall include a description of the specific project and why it is a unique project that is not regularly, customarily, or routinely performed by the agency or licensed contractors. (c) A party identified in subdivision (a) shall not require any other party to waive any provision of this section. (Amended by Stats. 2022, Ch. 121, Sec. 1. (AB 2173) Effective January 1, 2023.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 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 state’s best interests are compromised because retention was not withheld on a transportation project. (Amended by Stats. 2019, Ch. 842, Sec. 1. (SB 197) Effective January 1, 2020.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 7. Contract Clauses [7100 - 7203] ( Chapter 7 added by Stats. 1982, Ch. 1120, Sec. 4. ) ## 7203. (a) A public works contract entered into on or after January 1, 2016, that contains a clause that expressly requires a contractor to be responsible for delay damages is not enforceable unless the delay damages have been liquidated to a set amount and identified in the public works contract. (b) “Delay damages” as used in this section, means damages incurred by the public agency for each day after the date on which the work was to be completed by the contractor pursuant to the public works contract. Delay damages shall not include damages incurred by a public agency after the filing of a notice of completion or, in the absence of a notice of completion, the acceptance by the public agency of the public work as complete. (c) “Public agency” shall include the state, the Regents of the University of California, a city, charter city, county, charter county, district, public authority, municipal utility, and any other political subdivision or public corporation of the state. (d) This section shall not be construed to limit a right or remedy that the public agency has to enforce the express terms of the public works contract, except for a clause that expressly requires a contractor to be liable for delay damages. (e) This section shall not be construed to preclude a public agency from including more than one clause for delay damages for specified portions of work when the delay damages have been liquidated to a set amount for each individual clause and identified in the public works contract. (f) This section shall not apply to departments identified in Section 10106. (Added by Stats. 2015, Ch. 434, Sec. 2. (AB 552) Effective January 1, 2016.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 9. Claims and Disputes [9201 - 9204] ( Chapter 9 added by Stats. 1982, Ch. 1120, Sec. 5. ) ## 9201. (a) A public entity shall have full authority to compromise or otherwise settle any claim relating to a contract at any time. (b) The public entity shall include provisions in a public works contract for timely notification of the contractor of the receipt of any third-party claim, relating to the contract. (c) The public entity shall be entitled to recover its reasonable costs incurred in providing the notification required by subdivision (b). (Amended by Stats. 2002, Ch. 315, Sec. 1. Effective January 1, 2003.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 9. Claims and Disputes [9201 - 9204] ( Chapter 9 added by Stats. 1982, Ch. 1120, Sec. 5. ) ## 9203. (a) Payment on any contract with a local agency for the creation, construction, alteration, repair, or improvement of any public structure, building, road, or other improvement, of any kind which will exceed in cost a total of five thousand dollars ($5,000), shall be made as the legislative body prescribes upon estimates approved by the legislative body, but progress payments shall not be made in excess of 95 percent of the percentage of actual work completed plus a like percentage of the value of material delivered on the ground or stored subject to, or under the control of, the local agency, and unused. The local agency shall withhold not less than 5 percent of the contract price until final completion and acceptance of the project. However, at any time after 50 percent of the work has been completed, if the legislative body finds that satisfactory progress is being made, it may make any of the remaining progress payments in full for actual work completed. (b) Notwithstanding the dollar limit specified in subdivision (a), a county water authority shall be subject to a twenty-five thousand dollar ($25,000) limit for purposes of subdivision (a). (Amended by Stats. 2000, Ch. 126, Sec. 1. Effective January 1, 2001.)

## Public Contract Code - PCC ## DIVISION 2. GENERAL PROVISIONS [1100 - 22355] ( Division 2 enacted by Stats. 1981, Ch. 306. ) ## PART 1. ADMINISTRATIVE PROVISIONS [1100 - 9204] ( Heading of Part 1 added by Stats. 1982, Ch. 1120, Sec. 2. ) ## CHAPTER 9. Claims and Disputes [9201 - 9204] ( Chapter 9 added by Stats. 1982, Ch. 1120, Sec. 5. ) ## 9204. (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner. (b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project. (c) For purposes of this section: (1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project. (3) (A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. (B) “Public entity” shall not include the following: (i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. (v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority. (4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor. (d) (1) (A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision. (B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply. (2) (A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. (C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced. (E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute. (3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2027, deletes or extends that date. (Amended by Stats. 2019, Ch. 489, Sec. 1. (AB 456) Effective January 1, 2020. Repealed as of January 1, 2027, by its own provisions.)