Senate Bill 802 (Leno) has passed the Legislature and is now on the governor’s desk, awaiting his signature or veto. California Special Districts Association is calling for letters to help persuade him to veto this harmful bill.

This bill would lower the retention percentage that public entities can withhold from general contractors from 10 percent to five percent.

Current law allows public entities to withhold at least five percent and up to 10 percent from payments to the general contractor, pending satisfactory completion of the project.

Payment retention is an effective method of keeping contractors on the job until it is complete. This bill takes away that local control and puts special districts’ finances at risk at a time when local governments can least afford it.

Send in your opposition letters to the governor today. Find a template letter here.