Employee stock ownership plans: contractors: certification: bid preferences.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
Take action
Record your position on this measure.
Create an account to take a stance, submit a written position, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill aims to encourage employee ownership in the construction industry by creating a certification process for contractors with Employee Stock Ownership Plans (ESOPs). It requires the Director of General Services to issue ‘ESOP contractor certificates’ to qualified companies that meet specific criteria, including a certain percentage of employee participation in the ESOP and a favorable IRS determination letter. The bill also directs the Department of Transportation to prioritize contracts with these certified contractors, offering bid preferences based on the percentage of the company owned by its ESOP.
Key provisions
- Requires the Director of General Services to issue ‘ESOP contractor certificates’ to qualified contractors with ESOPs.
- Establishes criteria for ESOP certification, including employee participation and IRS determination letter.
- Mandates a three-year renewal period for ESOP contractor certificates.
- Creates a comprehensive bidders list of qualified contractors with certificates.
- Directs the Department of Transportation to prioritize state-funded construction contracts for certified contractors.
- Provides bid preferences to certified contractors based on their ESOP ownership percentage.
- Requires the Department of Transportation to ensure at least a specified percentage of construction contracts involve certified contractors.
- Establishes a process for determining and applying bid preferences based on ESOP ownership levels.
Who is affected
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours