Senate Bill 61 (SB 61) – Private Works Retention Cap
Effective Date: January 1, 2026
What it does: Caps the amount a contractor or owner can withhold as “retention” on private construction projects at 5% (previously up to 10%).
Why it matters: Helps contractors and subcontractors get paid faster, improves cash flow, and reduces financial pressure on small construction businesses.
Link: https://lanak-hanna.com/news/california-private-works-retention-capped-5-percent/
Senate Bill 253 (SB 253) & Senate Bill 261 (SB 261) Climate & Risk Reporting Laws
Effective Date: SB 261 January 1, 2026 first reports due : SB 253 June 30, 2026 first emissions reports due
What it does:
SB 261: Companies with more than $500 million in revenue must post reports on climate-related financial risks.
SB 253: Companies with more than $1 billion in revenue must disclose greenhouse gas emissions (Scope 1, 2, and later 3).
Why it matters: Increases corporate transparency on climate impact, pressures big companies to reduce emissions, and supports California’s climate goals.
Link: https://www.persefoni.com/blog/california-sb253-sb261
Senate Bill 1210 (SB 1210) Utility Connection Fee & Timeline Disclosure
Effective Date: January 1, 2026
What it does: Requires utility providers to publicly post estimated fees and timelines for new construction service connections on their websites.
Why it matters: Gives builders and developers better cost and time estimates, helping them plan housing projects more efficiently and avoid unexpected delays.
Link: https://www.fennemorelaw.com/legislative-update-california-adopts-new-housing-laws/
Senate Bill 216 (SB 216) Workers’ Compensation for Contractors
Effective Date: January 1, 2026
What it does: Requires all licensed contractors in California to have proof of workers compensation insurance before renewing or maintaining a license.
Why it matters: Protects workers, ensures all contractors are insured, and reduces legal and financial risks for both contractors and their clients.
Link: https://www.eclipseinsurance.com/senate-bill-216-new-law-affecting-all-california-contractors/
