California Can Build Faster and Smarter By Keeping Cash Flow to Construction Contractors Flowing For Materials & Labor on Private Projects

SACRAMENTO – The California State Senate Judiciary Committee today approved Senator Dave Cortese’s Senate Bill 61 (SB 61), which would expedite money payments to construction contractors and subcontractors for work performed.

SB 61 is critically needed as the state scrambles to build more privately financed affordable housing and rebuild from the Southern California wildfires. The bill now advances to the Senate Appropriations Committee.

“SB 61 will enable small business owners, minority contractors and subcontractors working on private projects to keep the cash flow flowing for materials used and labor performed just as if the private project was a public works project” said California State Senator Dave Cortese, a longtime labor champion. “Keeping the cash flow flowing will reduce construction timelines and costs.”

BACKGROUND:

• More than 20 states including Oregon, Nevada and New York have also signed into law five percent retention caps for private projects.
• In California, recent legislation is making it easier for privately financed affordable housing developments to move forward. The makes SB 61 even more critical.

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