1. (a) Contractors shall not loan contract funds to individuals, corporations, organizations, public agencies or private agencies.
2. (b) Contractors shall not advance unearned salary to employees.

3. (c) Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for:

   1. (1) Subcontractors providing preschool services; and
   2. (2) Subcontractors with subcontracts exempt from the provisions of article 2 of this subchapter as specified in section 17797.

Note: Authority cited: Sections 8231 and 8247, Education Code. Reference: Section 8231, Education Code.

History

1. New section filed 7-1-2022; operative 7-1-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 26).