Public contracts: Department of Transportation: bid preferences: employee stock ownership plans.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill would require the California Department of Transportation (Caltrans) to give preference to contractors that have an employee stock ownership plan (ESOP) when bidding on state construction projects. Specifically, if an ESOP contractor owns 30% or more of their company, they would receive a bid preference, with the amount increasing based on the percentage of ownership. The bill also establishes penalties for fraudulent attempts to obtain or maintain ESOP bid preferences and outlines procedures for verifying contractor compliance.
Key provisions
- Provides bid preferences to contractors with an Employee Stock Ownership Plan (ESOP) that owns 30% or more of the company.
- The bid preference amount increases based on the percentage of ownership (up to 4% for 100% ESOP ownership).
- Provides an additional 1% preference for ESOP contractors with union-represented employees.
- Establishes penalties for fraudulent attempts to obtain or maintain ESOP bid preferences, including suspension from bidding and civil fines.
- Requires ESOP contractors to provide documentation verifying their ownership percentage.
- Defines key terms related to ESOPs and contractors.
- Sets a date of January 1, 2028, for the implementation of these provisions.
- Outlines a process for the Department to verify contractor compliance with ESOP requirements.
Who is affected
- California Department of Transportation (Caltrans)
Bill text
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Sponsors
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1 on record
Primary sponsor
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