Governor Gavin Newsom signed NECA’s “5% Retention Cap Bill,” AB-2173 by Assemblymember Cottie Petrie-Norris (D-Laguna Beach).
The current public works 5% retention cap statute was set to expire at the end of this year. Now that AB-1273 has been signed by the Governor, the 5% public works retention cap policy is placed into California law for perpetuity.
NECA would like to thank all the contractors and other industry leaders who took the time to use grassroots advocacy to send an email to Governor Newsom asking that he sign the bill. Your voice makes a difference. We would also like to thank Assemblymember Cottie Petrie-Norris and her staff for all their hard work in getting AB-1273 passed into law. Assemblymember Petrie-Norris is a long-time industry supporter, and we truly appreciate her continue efforts in making prompt and fair payment in the construction industry a priority.
Finally, we would like to thank Eddie Bernacchi and the entire Politico Team in Sacramento for all their efforts throughout the year!