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by Dustin Steiner, Executive Vice President and Felipe Fuentes, Legislative Advocate, Pacific Coast Capitol Advisors (published in Monday Morning Quarterback on January 12, 2026) A new year brings with it…new laws! In California we have a full-time legislature that seems to measure success by bills passed. In 2025, 2,250 bills were introduced, 794 were signed into law, and 123 were vetoed by Gov. Newsom. These bills ranged from outlawing declawing (say that three times fast), to making admissions to several Cal State Universities automatic (sorry, SDSU is not on the list), to a bit of COVID-era irony making masking (of law enforcement officials) illegal. What’s new for the construction industry? Our legislative advocate, Felipe Fuentes, and his crack team in Sacramento, Pacific Coast Capitol Advisors, has you covered with the following list. Please note AB 889 was covered in last week’s MMQB and we will likely have more to come on that. Key Legislative Actions in 2025: What Contractors Need to Know As we close out 2025 and move into 2026, it’s important for AGC members to understand the legislative landscape and how recent actions by the Governor will impact our industry. Several bills were sent to the Governor last session, and while some were signed into law, others were vetoed. Below is a summary of the most significant measures affecting construction, labor, and public works. Artificial Intelligence SB 7 (Vetoed) This bill sought to introduce requirements for employers using automated decision systems in employment-related processes. While the Governor vetoed SB 7, its introduction signals growing interest in regulating AI in the workplace. Contractors should anticipate future proposals that could impose compliance obligations around hiring and workforce management technologies. Highway Safety AB 289 (Chaptered) This new law authorizes a five-year pilot program for work zone speed camera enforcement, deploying 35 cameras statewide. The goal is to improve safety in construction zones, reducing accidents and protecting workers. Contractors and workers should benefit from stricter enforcement and will want to ensure crews are aware of speed compliance requirements. AB 390 (Chaptered) Expanding California’s “move over” law, AB 390 now includes contractor vehicles working on highways. This change enhances safety for roadside crews and underscores the importance of proper signage and traffic control measures on job sites. Labor and Employment SB 809 (Chaptered) This legislation establishes a voluntary construction trucking employer amnesty program. Sponsored by the Teamsters, this program is voluntary and attempts to have GCs consider hiring drivers under a “two-check” system. Contractors with trucking operations are reminded to review their practices to make sure that they are compliant with the Construction Trucking exemption found in AB 5. Public Works AB 538 (Chaptered) Contractors must now provide certified payroll records upon request within 10 days if the awarding body lacks the documents. This change emphasizes transparency and timely compliance, so contractors should ensure recordkeeping systems are robust and responsive. AB 963 (Vetoed) This bill would have required developers and owners of public works projects to grant access to specific records to Labor entities. The Governor vetoed it, citing redundancy and potential interference with enforcement priorities. While vetoed, the proposal reflects ongoing scrutiny of public works documentation. SB 369 (Vetoed) Aimed at imposing skilled and trained workforce requirements for Salton Sea restoration projects, SB 369 was vetoed due to concerns about delaying shovel-ready projects. Expect similar workforce-related measures to resurface in future sessions. Payments SB 440 (Chaptered) Known as the Private Works Change Order Fair Payment Act, this law strengthens protections for contractors by ensuring fair and timely payment for change orders. Contractors should review contract language and payment timelines to align with the new requirements. Retention SB 61 (Chaptered) Retention on private construction contracts is now capped at 5%, and timely payment to contractors and subcontractors is mandated. Additionally, prevailing parties in enforcement actions may recover attorney’s fees. This is a significant win for cash flow management in the private sector. Unpaid Wages AB 1002 (Chaptered) The Attorney General now has authority to bring civil actions against contractors who fail to pay full wages, ignore wage judgments, or violate court orders. This underscores the importance of strict compliance with wage laws to avoid costly litigation and reputational harm. What This Means for AGC Members The 2025 legislative session brought meaningful changes that will affect compliance, safety, and payment practices across the industry. While some vetoes prevented additional burdens, the signed bills reflect a clear trend toward greater accountability and worker protections. AGC will continue to monitor developments and provide resources to help members navigate these changes. Stay tuned for updates on the 2026 legislative session.
by Dustin Steiner, Executive Vice President and Felipe Fuentes, Legislative Advocate, Pacific Coast Capitol Advisors (published in Monday Morning Quarterback on January 12, 2026)
A new year brings with it…new laws! In California we have a full-time legislature that seems to measure success by bills passed. In 2025, 2,250 bills were introduced, 794 were signed into law, and 123 were vetoed by Gov. Newsom. These bills ranged from outlawing declawing (say that three times fast), to making admissions to several Cal State Universities automatic (sorry, SDSU is not on the list), to a bit of COVID-era irony making masking (of law enforcement officials) illegal. What’s new for the construction industry? Our legislative advocate, Felipe Fuentes, and his crack team in Sacramento, Pacific Coast Capitol Advisors, has you covered with the following list. Please note AB 889 was covered in last week’s MMQB and we will likely have more to come on that.
Key Legislative Actions in 2025: What Contractors Need to Know As we close out 2025 and move into 2026, it’s important for AGC members to understand the legislative landscape and how recent actions by the Governor will impact our industry. Several bills were sent to the Governor last session, and while some were signed into law, others were vetoed. Below is a summary of the most significant measures affecting construction, labor, and public works. Artificial Intelligence SB 7 (Vetoed) This bill sought to introduce requirements for employers using automated decision systems in employment-related processes. While the Governor vetoed SB 7, its introduction signals growing interest in regulating AI in the workplace. Contractors should anticipate future proposals that could impose compliance obligations around hiring and workforce management technologies. Highway Safety AB 289 (Chaptered) This new law authorizes a five-year pilot program for work zone speed camera enforcement, deploying 35 cameras statewide. The goal is to improve safety in construction zones, reducing accidents and protecting workers. Contractors and workers should benefit from stricter enforcement and will want to ensure crews are aware of speed compliance requirements.
AB 390 (Chaptered) Expanding California’s “move over” law, AB 390 now includes contractor vehicles working on highways. This change enhances safety for roadside crews and underscores the importance of proper signage and traffic control measures on job sites. Labor and Employment SB 809 (Chaptered) This legislation establishes a voluntary construction trucking employer amnesty program. Sponsored by the Teamsters, this program is voluntary and attempts to have GCs consider hiring drivers under a “two-check” system. Contractors with trucking operations are reminded to review their practices to make sure that they are compliant with the Construction Trucking exemption found in AB 5. Public Works AB 538 (Chaptered) Contractors must now provide certified payroll records upon request within 10 days if the awarding body lacks the documents. This change emphasizes transparency and timely compliance, so contractors should ensure recordkeeping systems are robust and responsive. AB 963 (Vetoed) This bill would have required developers and owners of public works projects to grant access to specific records to Labor entities. The Governor vetoed it, citing redundancy and potential interference with enforcement priorities. While vetoed, the proposal reflects ongoing scrutiny of public works documentation.
SB 369 (Vetoed) Aimed at imposing skilled and trained workforce requirements for Salton Sea restoration projects, SB 369 was vetoed due to concerns about delaying shovel-ready projects. Expect similar workforce-related measures to resurface in future sessions.
Payments SB 440 (Chaptered) Known as the Private Works Change Order Fair Payment Act, this law strengthens protections for contractors by ensuring fair and timely payment for change orders. Contractors should review contract language and payment timelines to align with the new requirements.
Retention SB 61 (Chaptered) Retention on private construction contracts is now capped at 5%, and timely payment to contractors and subcontractors is mandated. Additionally, prevailing parties in enforcement actions may recover attorney’s fees. This is a significant win for cash flow management in the private sector.
Unpaid Wages AB 1002 (Chaptered) The Attorney General now has authority to bring civil actions against contractors who fail to pay full wages, ignore wage judgments, or violate court orders. This underscores the importance of strict compliance with wage laws to avoid costly litigation and reputational harm.
What This Means for AGC Members The 2025 legislative session brought meaningful changes that will affect compliance, safety, and payment practices across the industry. While some vetoes prevented additional burdens, the signed bills reflect a clear trend toward greater accountability and worker protections. AGC will continue to monitor developments and provide resources to help members navigate these changes.
Stay tuned for updates on the 2026 legislative session.