Legislative Update

After months of advocacy led by UCON and our labor partners, a proposal to address a long-standing competitive disadvantage on public works projects cleared a major legislative hurdle and is now headed to the full Senate for a vote. We also have an update on a closely watched proposal that would have made significant changes to how Caltrans contracts are awarded.

Fixing a Long-Standing Competitive Disadvantage on Public Works Projects

AB 1198, a UCON-backed bill and one of our top legislative priorities, passed the Senate Appropriations Committee and is now headed to the Senate floor for a vote by the full Senate.

WHY IT MATTERS
Union contractors are required to pay wages negotiated in their collective bargaining agreements. On long-term projects, those wages often increase over time. Under current law, the prevailing wage rate used for the project may be based on a determination issued years earlier. AB 1198 updates the system so prevailing wage rates reflect the rates in effect when the work is performed, helping address a competitive disadvantage faced by many union contractors on public works projects.

STATUS
✅ Passed the Senate Appropriations Committee
✅ Advancing to the Senate Floor for a full vote

If approved by the Senate, the bill will head to Governor Newsom for consideration.

TAKE ACTION
We need your help to ensure AB 1198 gets signed into law. TAKE ACTION and urge your Senator to support AB 1198.

ESOP Bid Preferences Bill Fails to Advance

SB 1174 was one of the most closely watched construction bills of the year. The measure would have required Caltrans to provide certain bid preferences for employee-owned companies competing for state-funded projects.

WHY IT MATTERS
While UCON's Legislative Advisory Committee took a neutral position on the proposal due to differing views within our membership, the bill was closely monitored because of its potential impact on the public bidding process. 

The bill also raised broader industry concerns. According to the state's fiscal analysis, Caltrans projected the proposal could increase contracting costs by millions of dollars annually and warned that, without additional funding, fewer maintenance and rehabilitation projects could be delivered. 

STATUS
❌ Held in the Assembly Appropriations Committee and will not move forward this year.

UCON-Sponsored Prompt Payment Bill Signed into Law

Governor Gavin Newsom has signed SB 33 (Cortese) into law, making permanent California's process for resolving public works change order and claim disputes.

WHAT DOES SB 33 DO?
SB 33 permanently protects the framework that requires public agencies to review contractor claims in a timely manner, pay undisputed amounts, and work toward resolving disputes before they escalate into costly litigation.

WHY IT MATTERS
When contractors perform extra work at the direction of an owner, they deserve a fair and timely process to resolve payment disputes. This law helps ensure contractors are not forced to carry the financial burden of unpaid change orders for months or years while waiting for claims to be resolved.

We’re leading an aggressive legislative agenda to expand the market share and improve the business environment for union contracts—and encourage all UCON members to stay informed and get involved. 

All legislative positions are determined by UCON’s Legislative Advisory Committee (LAC). The LAC is open to all UCON members. If you’re interested in getting involved, contact Gus Flores, Director of Government Relations, (916) 347-6849.