Senate Bill 802 threatens special districts’ ability to manage construction projects and protect taxpayers’ money. The bill forces local governments to lower their payment retention amount from 10 percent to 5 percent.

Local governments use this withheld amount to make sure contractors stay on the job and do a satisfactory job, protect public funds, and to have a certain amount left to use to complete the project in case a contractor does leave the job.

SB 802 threatens this and is unnecessary, as local governments currently have the authority to lower the retained percentage to 5 percent or even zero if the contractor is doing a satisfactory job. SB 802 would take away this flexibility.
SB 802 will be heard in the Senate Governmental Organization Committee soon.

CSDA needs your help to stop the bill—send your opposition letter in by Thursday, April 9! For a template letter, go to CSDA’s webpage and sign onto the Members Section. The template letter is located under the Legislation and Grassroots tab.