ADVOCATING FOR THE INDUSTRY


As California faces ongoing fiscal uncertainty and increasing demands on its infrastructure systems, AGC remains focused on advancing policies that support efficient project delivery, strengthen the construction workforce, and ensure sustained investment in the state’s built environment.


AGC Joint Legislative Committee Sets 2026 Advocacy Agenda


BY FELIPE FUENTES O


n March 12, members of the AGC of California and AGC San Diego (AGC) gathered at Unger


Construction for the organizations’ long- standing Joint Legislative Committee meeting—an annual convening that brings together industry leaders to align advocacy priorities and assess the evolving policy landscape affecting California’s construction industry. Te meeting remains a cornerstone of


AGC’s advocacy efforts, offering members direct insight from legislative advocates and staff on the most pressing issues facing the industry. With strong partic- ipation from both chapters, this year’s discussion reflected both continuity in AGC’s priorities and the growing com- plexity of California’s policy environment.


Political and Fiscal Outlook As in years past, the meeting opened with a comprehensive overview of the state’s political climate and fiscal outlook. Attendees received an update on the California governor’s proposed budget, which—while sizable—faces ongoing uncertainty tied to federal funding vol- atility, economic headwinds, and rising costs in core programs such as education and healthcare. Tese pressures are compounded by


the California State Legislature, which is still adapting to significant turnover, with dozens of new members navigating an increasingly complex policy environment, all while the dynamics of this year’s gu- bernatorial election begin to take shape. Broader political trends were also


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CALIFORNIA CONSTRUCTOR MAY/JUNE 2026


front and center. Participants discussed affordability concerns, emerging pro- posals around artificial intelligence regulation, and the continued push to advance climate and housing policies. Together, these issues are expected to shape both the pace and direction of policymaking in 2026, as lawmakers attempt to balance ambitious goals with tightening fiscal constraints. A central focus of the meeting was re-


fining AGC’s legislative agenda priorities for the year ahead. Members reviewed a wide range of


proposals affecting the construction industry, with particular attention to employer mandates, housing produc- tion, climate resiliency investments, and transportation funding. Te committee also discussed recently introduced anti- trust legislation, as well as a package of workers’ compensation proposals that could mitigate employer obligations.


AGC Sponsored Legislation Equally important was the opportunity for members to weigh in on AGC-sponsored legislation—core proposals that reflect the industry’s proactive approach to policy. One of the organization’s key mea-


sures, AB 2067 (Patel), would extend au- thorization for the use of the lease-lease- back (LLB) procurement method for school construction projects through 2032. This approach has consistently helped school districts—particularly smaller districts—deliver projects on time and within budget by enabling early collaboration between contractors,


architects, and owners. Te bill preserves strong transparency and competitive bidding requirements while providing certainty for public agencies and builders. AGC, alongside the Carpenters and


Laborers, is also sponsoring SB 1065 (Wiener), which addresses apprentice- ship regulations that have constrained the construction labor pool. Te measure clarifies that apprentices may perform the full scope of work within their craft under the supervision of journeypersons, consistent with longstanding industry practice. By restoring this flexibility, SB 1065 would expand workforce opportu- nities, reduce unnecessary regulatory complexity, and support more efficient project delivery. Another priority bill, AB 1885 (Carril-


lo), takes aim at outdated state contract- ing practices by eliminating retention withholding on public works projects where robust bonding requirements are already in place. Originally intended as a safeguard decades ago, retention now ties up hundreds of millions of dollars that could otherwise be reinvested into workforce development and project de- livery. With performance and payment bonds already providing strong financial protections, AB 1885 would improve cash flow—particularly for small and mid-sized contractors—while helping accelerate infrastructure delivery across the state.


Setting Industry Priorities Te meeting concluded with a clear set of priorities heading into AGC’s upcoming


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