CA AB1671

Prohibits the Department of Transportation from withholding retention proceeds on progress payments to contractors for work performed on transportation projects until January 1, 2020.

Expands acceptable forms of bidder's security to include electronic bidder's bonds from admitted surety insurers, signed bidder's bonds from admitted surety insurers, and cash or cashier's/certified checks.

Requires bidder's security to equal at least 10 percent of the amount bid and mandates that bids be presented under sealed cover accompanied by one of the approved security forms.

Requires the Department of Transportation to notify the Legislature if the state's interests are compromised due to retention not being withheld on a transportation project.

Establishes legislative findings that zero-percent retentions improve contractor viability and employment in California's construction industry during economic downturns.