Senator Dave Cortese Secures Victory for Contractors, Workers, and California Infrastructure with Signage of Senate Bill 33

SACRAMENTO, CA — California State Senator Dave Cortese (D-San Jose) today announced that Governor Gavin Newsom has signed his Senate Bill 33 (SB 33) into law, making permanent California's successful public works claims-resolution process and ensuring contractors are paid fairly and promptly for work performed on public projects.

By eliminating the January 1, 2027 sunset date for Public Contracts, SB 33 preserves a proven framework that has reduced costly litigation, prevented project delays, and improved delivery of critical infrastructure projects throughout California for nearly a decade.

Under existing law, contractors performing extra or change-order work on public projects often carry substantial financial risk while awaiting payment, despite having to cover labor costs, employee benefits, materials, and overhead expenses in real time. Prior to the creation of the claims-resolution process in 2016, some contractors waited months or even years to be paid for completed work, creating financial hardship for businesses and workers alike.

The existing claims-resolution process requires public agencies to respond to contractor claims within specified timelines, pay portions of claims they acknowledge are owed, and participate in structured dispute-resolution efforts including meet-and-confer discussions and nonbinding mediation for contested claims.

Supporters of SB 33 include the National Electrical Contractors Association and United Contractors, along with a broad coalition of construction industry and labor organizations representing contractors and skilled trades workers throughout California.

“California’s union electrical contractors applaud Senator Cortese for his leadership in championing SB 33. By permanently extending California’s public works claims-resolution process, this legislation provides certainty that contractors performing critical infrastructure projects will continue to have access to a fair, transparent, and efficient process for resolving payment disputes. Prompt payment keeps skilled workers on the job, projects on schedule, and taxpayer-funded infrastructure moving forward. We appreciate Senator Cortese’s commitment to policies that strengthen California’s construction industry while protecting the public interest,” said Fred Neubauer, District 9 Vice President with National Electrical Contractors Association (NECA).

Senator Dave Cortese represents Senate District 15, which encompasses San Jose and much of Santa Clara County in the heart of Silicon Valley. Visit Senator Cortese’s website: https://sd15.senate.ca.gov

 

Mario B. Lopez, Communications Director

Office of Senator Dave Cortese | District 15

Phone: 408-545-8205 | Email: Mario.lopez@sen.ca.gov 

Natasha Waxman, Executive Assistant

Office of Senator Dave Cortese | District 15

Email: natasha.waxman@sen.ca.gov

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