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• Workers’ Compensation:A package of workers’ compensation legislation, sponsored by applicant attorneys and labor, was carefully reviewed. AGC advocates will monitor and engage as this policy develops.


Proactive Policy Proposals AGC advocates have begun educating new legislators on the importance of transportation infrastructure funding, highlighting a projected 10-year revenue shortfall of $216.4 billion. Advocates are also working with industry partners to sponsor legislation that limits retention payments withheld by an owner from a direct contractor, or by a contractor from a subcontractor, to 5% of the payment for private works of improvement. Tis would help improve cash flow for contractors and subcontractors. Additionally, advocates are working


Despite a modest budget surplus in 2025, anticipated fiscal headwinds could challenge the state’s treasury throughout the legislative year. Volatile federal presidential orders and potential trade tariffs add to the uncertainty, impacting key federal revenue streams and California taxpayers.


to clarify laws in the payment and per- formance bond arena, ensuring bonds are not effective unless all beneficiaries are obligated to make payments to the general contractor or the surety in ac- cordance with contract terms.


Conclusion


Te meeting concluded with a clear set of priorities and action items for the upcom- ing Legislative Day. Members of the AGC


Felipe Fuentes


of California and the San Diego chapters are now well-prepared to advocate for their interests at the Capitol, ensuring their voices are heard on critical issues impacting the construction industry.


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