Bill > SB1174

This bill, effective January 1, 2028, requires the California Department of Transportation (Department) to provide bid preferences to contractors who utilize an Employee Stock Ownership Plan (ESOP), which is a retirement plan that allows employees to own stock in the company they work for. Contractors with an ESOP will receive a percentage-based preference on state-funded construction contracts, with the preference increasing based on the percentage of the company owned by the ESOP, and an additional preference if employees are covered by a collective bargaining agreement. The bill also makes it illegal for anyone to fraudulently obtain or retain ESOP bid preferences, or to make false statements to influence ESOP contractor acceptance, and establishes civil penalties and suspension from bidding on Department contracts for those who violate these provisions.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1174