GOVERNMENT AFFAIRS UPDATE
JANUARY 2026

2026 Legislative Session Convenes January 7 – NYECA Will be There

With the new year ringing in, the 2026 legislative session will convene on January 7. This moment reflects the beginning of the second session of the 2025-26 legislative term. The following week, session begins in earnest and Governor Hochul (who will be ramping up her reelection campaign) presents the annual State of the State address. In this speech, the governor sets out her policy agenda for the year. Soon thereafter, she will also propose her Executive Budget, which begins three months of budget negotiations that set the tone for the session. NYECA will carefully evaluate the budget for any proposals impacting electrical construction contractors.

Offsite Prefabrication Bill Approved Over NYECA Objections

We are disappointed by the governor’s enactment of S.2536 (Sen. Jackson), Chapter 713 of the Laws of 2025, which subjects off-site pre-fabrication work to prevailing wage requirements. Despite NYECA’s sustained objections to the language of the bill (but not its general goal), the bill was ultimately enacted subject to revisions that will be adopted by the legislature in 2026 (via a Chapter Amendment). NYECA is presently reviewing the draft chapter amendment which may, or may not, make the new law more palatable.  Either way, expect a likely court challenge on the constitutionality of the new law.

Legislative Win: Governor Signs New Law Further Limiting Retainage on Private Construction Projects

Section 757 of New York’s General Business Law renders certain provisions in private construction contracts void and unenforceable. On December 19, Governor Hochul signed legislation strengthening Section 757 to make it clear that retainage on private construction contracts is limited to a maximum of five percent of the construction sum (Chapter 654, Laws of 2025). Any provision in a private construction contract setting a higher retainage is now void and unenforceable, without limitation. This new law takes effect immediately. NYECA lobbied for its passage.

NYECA Priority Bill Status Update

With the 2025 legislative session now concluded, please find out our final status report for the year below.

Vetoed

• • • • 6063 Lunsford/S.4423 Hoylman-Sigal – Provides for the types of damages that may be awarded to the persons for whose benefit an action for wrongful death is brought. LEGISLATIVE WIN: NYECA OPPOSED
      • 8429-B Bronson/S.7950-A Bailey – Relates to the establishment of a fraud assessment commission, an assessment for workers’ compensation fraud investigations and the workers’ compensation fraud investigation fund. LEGISLATIVE WIN: NYECA OPPOSED
      • 7235 Bichotte Hermelyn/S.6315 Sanders – Establishes expanded construction mentorship opportunities for small and minority and women-owned business enterprises. NEUTRAL
      • 7388 (Ramos)/A.7863 (Bronson) – Enacts the remedial construction of New York labor law act. Opposed

Signed Into Law

• • • • 5405 (Hunter)/S.5655 (Ryan) – Compliance with the statutory requirement of a maximum 5% retainage in construction contracts. LEGISLATIVE WIN: NYECA PRIORITY SUPPORT

Signed Into Law with Chapter Amendment

• • • • 2536-A (Jackson)/A.2747-A (Bronson) – Relates to the inclusion of certain off-site custom fabrication as public work for the purposes of payment of prevailing wage. PRIORITY OPPOSE
        • Chapter Amendment required
      • 4727 (Bronson)/S.50 (Comrie) – Relates to paid family leave benefits. Neutral
        • Chapter Amendment required
      • 7222 (Bichotte Hermelyn)/S.8393 (Webb) – Relates to the requirements of the annual report from the division of minority and women’s business development.
        • Chapter Amendment required
      • 596 (Hinchey)/A.2296 (McDonald) – Provides a rebuttable presumption relating to recertification as a minority and women-owned business enterprise.
        • Chapter Amendment required

If you have any questions or would like additional information on any New York State or New York City legislative matter, including copies of any legislation or regulations mentioned in this article, please contact Peter Rescigno or NYECA lobbyist Perry Ochacher at (914) 319-9173.

Best wishes to all NYECA members for a happy and healthy 2026!

If you have any questions or would like additional information on any New York State or New York City legislative matter, including copies of any legislation or regulations mentioned in this article, please contact Peter Rescigno or NYECA lobbyist Perry Ochacher at (914) 319-9173.