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Measure SB 61
Authors Cortese  
Subject Private works of improvement: retention payments.
Relating To relating to works of improvement.
Title An act to add Section 8811 to the Civil Code, relating to works of improvement.
Last Action Dt 2025-07-14
State Chaptered
Status Chaptered
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee No
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-07-14     Chaptered by Secretary of State. Chapter 49, Statutes of 2025.
2025-07-14     Approved by the Governor.
2025-07-03     Enrolled and presented to the Governor at 11:15 a.m.
2025-06-23     In Senate. Ordered to engrossing and enrolling.
2025-06-23     Read third time. Passed. (Ayes 71. Noes 0. Page 2247.) Ordered to the Senate.
2025-06-18     Read second time. Ordered to consent calendar.
2025-06-17     From committee: Do pass. Ordered to consent calendar. (Ayes 11. Noes 0.) (June 17).
2025-05-12     Referred to Com. on JUD.
2025-04-24     In Assembly. Read first time. Held at Desk.
2025-04-24     Read third time. Passed. (Ayes 37. Noes 0. Page 887.) Ordered to the Assembly.
2025-04-10     Read second time. Ordered to consent calendar.
2025-04-09     From committee: Do pass. Ordered to consent calendar. (Ayes 13. Noes 0. Page 705.) (April 8).
2025-03-26     From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-03-26     Set for hearing April 8.
2025-01-29     Referred to Com. on JUD.
2025-01-10     From printer. May be acted upon on or after February 9.
2025-01-09     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Keywords
Tags
Versions
Chaptered     2025-07-14
Enrolled     2025-06-25
Amended Senate     2025-03-26
Introduced     2025-01-09
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Cortese</ns0:AuthorText>
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		<ns0:Title> An act to add Section 8811 to the Civil Code, relating to works of improvement.</ns0:Title>
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			<ns0:Subject>Private works of improvement: retention payments.</ns0:Subject>
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			<html:p>Existing law generally governs retention payments withheld with respect to a contract for a private work of improvement, including by requiring an owner that withholds a retention from a direct contractor to, within 45 days after completion of the work of improvement, pay the retention to the contractor.</html:p>
			<html:p>With respect to a contract for a private work of improvement, this bill would limit the amount of a retention payment by, among other things, prohibiting a retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, from exceeding 5% of the payment, subject to certain exceptions. The bill would require a court to award reasonable attorney’s fees to the prevailing party in any action to enforce these
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				Section 8811 is added to the 
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								(a)
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								This section is applicable to a contract relating to a private work of improvement entered into on or after January 1, 2026.
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								(b)
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								(1)
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								(A)
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								A retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, for a private work of improvement, shall not exceed 5 percent of the payment.
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								(B)
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								In no event shall the total retention proceeds withheld exceed 5 percent of the contract price.
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								(C)
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								In a contract between the direct contractor and a subcontractor, and
				  in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention payment withheld shall not exceed the percentage specified in the contract between the owner and the direct contractor.
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								(2)
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								Paragraph (1) does not apply to a direct contractor or subcontractor if the direct contractor or subcontractor provides written notice to a subcontractor before, or at, the time that the bid is requested that a faithful performance and payment bond shall be required, and a subcontractor subsequently fails to furnish to the direct contractor or subcontractor a performance and payment bond issued by an admitted surety insurer.
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								(3)
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								Paragraph (1) does not apply to an owner, direct contractor, or subcontractor on a residential project if the project is not mixed-use and does not exceed four stories.
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								In any action to enforce the provisions of this section, a court shall award reasonable attorney’s fees to the prevailing party. 
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Last Version Text Digest Existing law generally governs retention payments withheld with respect to a contract for a private work of improvement, including by requiring an owner that withholds a retention from a direct contractor to, within 45 days after completion of the work of improvement, pay the retention to the contractor. With respect to a contract for a private work of improvement, this bill would limit the amount of a retention payment by, among other things, prohibiting a retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, from exceeding 5% of the payment, subject to certain exceptions. The bill would require a court to award reasonable attorney’s fees to the prevailing party in any action to enforce these provisions.