Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 247Introduced by Senator Smallwood-CuevasJanuary 30, 2025 An act to amend Section 2500.5 of add Article 1.7 (commencing with Section 10117) to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 247, as amended, Smallwood-Cuevas. Construction: workforce development: public contracts. State agency contracts: bid preference: equity metrics.Existing law establishes bid preferences and participation goals in public contracting for certain types of bidders. The Small Business Procurement and Contract Act establishes a minimum goal of 25% procurement participation for small businesses, including microbusinesses, in the provision of goods, information technology, and services to the state, and in the construction of state facilities. The Small Business Procurement and Contract Act requires that state agencies awarding contracts for goods, information technology, services, and construction give 5% bid preferences, as specified, to small business and microbusiness bidders. The California Disabled Veteran Business Enterprise Program requires state departments that award contracts to establish 3% participation goals for certain types of contracts for certified disabled veteran business enterprises, as defined. This bill would require an awarding department, defined to include a state agency or department, to provide a bid preference of 10% in the award of contracts to contractors that set equity metrics, as prescribed. The bill would prohibit awarding a preference to a noncompliant bidder and would also prohibit the preference from being used to achieve any applicable minimum requirements. The bill would require the Department of General Services to adopt rules and regulations for the purpose of implementing these provisions. Existing law, on or after January 1, 2026, authorizes a state agency to use, enter into, or require contractors to enter into, a project labor agreement that applies to a project or set of projects with aggregate construction costs in excess of $35,000,000 only if the agreement also includes provisions to address community benefits, as described.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the California Good Jobs Act.SEC. 2. Article 1.7 (commencing with Section 10117) is added to Part 2 of Division 2 of the Public Contract Code, to read: Article 1.7. Equity Metrics in State Contracting10117. As used in this article:(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state. (b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state (c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations. 10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.(b) The bid preference shall operate as follows:(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications. (2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score. (3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements. 10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article. (b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.SECTION 1.Section 2500.5 of the Public Contract Code is amended to read:2500.5.(a)A state agency may use, enter into, or require contractors to enter into, a project labor agreement, pursuant to this chapter, that applies to a project or set of projects with aggregate construction costs in excess of thirty-five million dollars ($35,000,000) only if the agreement also includes provisions to address community benefits. Community benefits may include partnerships with high road construction careers programs, as defined in Section 14005 of the Unemployment Insurance Code, local hire goals, coordination with programs that assist veterans in transitioning to civilian employment, job fairs for construction apprenticeship or preapprenticeship programs, or other methods agreed upon by the parties to promote employment and training opportunities for veterans and individuals who reside in economically disadvantaged areas.(b)This section shall apply to project labor agreements entered into on or after January 1, 2026.
Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 247Introduced by Senator Smallwood-CuevasJanuary 30, 2025 An act to amend Section 2500.5 of add Article 1.7 (commencing with Section 10117) to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 247, as amended, Smallwood-Cuevas. Construction: workforce development: public contracts. State agency contracts: bid preference: equity metrics.Existing law establishes bid preferences and participation goals in public contracting for certain types of bidders. The Small Business Procurement and Contract Act establishes a minimum goal of 25% procurement participation for small businesses, including microbusinesses, in the provision of goods, information technology, and services to the state, and in the construction of state facilities. The Small Business Procurement and Contract Act requires that state agencies awarding contracts for goods, information technology, services, and construction give 5% bid preferences, as specified, to small business and microbusiness bidders. The California Disabled Veteran Business Enterprise Program requires state departments that award contracts to establish 3% participation goals for certain types of contracts for certified disabled veteran business enterprises, as defined. This bill would require an awarding department, defined to include a state agency or department, to provide a bid preference of 10% in the award of contracts to contractors that set equity metrics, as prescribed. The bill would prohibit awarding a preference to a noncompliant bidder and would also prohibit the preference from being used to achieve any applicable minimum requirements. The bill would require the Department of General Services to adopt rules and regulations for the purpose of implementing these provisions. Existing law, on or after January 1, 2026, authorizes a state agency to use, enter into, or require contractors to enter into, a project labor agreement that applies to a project or set of projects with aggregate construction costs in excess of $35,000,000 only if the agreement also includes provisions to address community benefits, as described.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Senate March 26, 2025
Amended IN Senate March 26, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 247
Introduced by Senator Smallwood-CuevasJanuary 30, 2025
Introduced by Senator Smallwood-Cuevas
January 30, 2025
An act to amend Section 2500.5 of add Article 1.7 (commencing with Section 10117) to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 247, as amended, Smallwood-Cuevas. Construction: workforce development: public contracts. State agency contracts: bid preference: equity metrics.
Existing law establishes bid preferences and participation goals in public contracting for certain types of bidders. The Small Business Procurement and Contract Act establishes a minimum goal of 25% procurement participation for small businesses, including microbusinesses, in the provision of goods, information technology, and services to the state, and in the construction of state facilities. The Small Business Procurement and Contract Act requires that state agencies awarding contracts for goods, information technology, services, and construction give 5% bid preferences, as specified, to small business and microbusiness bidders. The California Disabled Veteran Business Enterprise Program requires state departments that award contracts to establish 3% participation goals for certain types of contracts for certified disabled veteran business enterprises, as defined. This bill would require an awarding department, defined to include a state agency or department, to provide a bid preference of 10% in the award of contracts to contractors that set equity metrics, as prescribed. The bill would prohibit awarding a preference to a noncompliant bidder and would also prohibit the preference from being used to achieve any applicable minimum requirements. The bill would require the Department of General Services to adopt rules and regulations for the purpose of implementing these provisions. Existing law, on or after January 1, 2026, authorizes a state agency to use, enter into, or require contractors to enter into, a project labor agreement that applies to a project or set of projects with aggregate construction costs in excess of $35,000,000 only if the agreement also includes provisions to address community benefits, as described.This bill would make nonsubstantive changes to those provisions.
Existing law establishes bid preferences and participation goals in public contracting for certain types of bidders. The Small Business Procurement and Contract Act establishes a minimum goal of 25% procurement participation for small businesses, including microbusinesses, in the provision of goods, information technology, and services to the state, and in the construction of state facilities. The Small Business Procurement and Contract Act requires that state agencies awarding contracts for goods, information technology, services, and construction give 5% bid preferences, as specified, to small business and microbusiness bidders. The California Disabled Veteran Business Enterprise Program requires state departments that award contracts to establish 3% participation goals for certain types of contracts for certified disabled veteran business enterprises, as defined.
This bill would require an awarding department, defined to include a state agency or department, to provide a bid preference of 10% in the award of contracts to contractors that set equity metrics, as prescribed. The bill would prohibit awarding a preference to a noncompliant bidder and would also prohibit the preference from being used to achieve any applicable minimum requirements. The bill would require the Department of General Services to adopt rules and regulations for the purpose of implementing these provisions.
Existing law, on or after January 1, 2026, authorizes a state agency to use, enter into, or require contractors to enter into, a project labor agreement that applies to a project or set of projects with aggregate construction costs in excess of $35,000,000 only if the agreement also includes provisions to address community benefits, as described.
This bill would make nonsubstantive changes to those provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the California Good Jobs Act.SEC. 2. Article 1.7 (commencing with Section 10117) is added to Part 2 of Division 2 of the Public Contract Code, to read: Article 1.7. Equity Metrics in State Contracting10117. As used in this article:(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state. (b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state (c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations. 10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.(b) The bid preference shall operate as follows:(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications. (2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score. (3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements. 10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article. (b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.SECTION 1.Section 2500.5 of the Public Contract Code is amended to read:2500.5.(a)A state agency may use, enter into, or require contractors to enter into, a project labor agreement, pursuant to this chapter, that applies to a project or set of projects with aggregate construction costs in excess of thirty-five million dollars ($35,000,000) only if the agreement also includes provisions to address community benefits. Community benefits may include partnerships with high road construction careers programs, as defined in Section 14005 of the Unemployment Insurance Code, local hire goals, coordination with programs that assist veterans in transitioning to civilian employment, job fairs for construction apprenticeship or preapprenticeship programs, or other methods agreed upon by the parties to promote employment and training opportunities for veterans and individuals who reside in economically disadvantaged areas.(b)This section shall apply to project labor agreements entered into on or after January 1, 2026.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the California Good Jobs Act.
SECTION 1. This act shall be known, and may be cited, as the California Good Jobs Act.
SECTION 1. This act shall be known, and may be cited, as the California Good Jobs Act.
### SECTION 1.
SEC. 2. Article 1.7 (commencing with Section 10117) is added to Part 2 of Division 2 of the Public Contract Code, to read: Article 1.7. Equity Metrics in State Contracting10117. As used in this article:(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state. (b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state (c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations. 10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.(b) The bid preference shall operate as follows:(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications. (2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score. (3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements. 10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article. (b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.
SEC. 2. Article 1.7 (commencing with Section 10117) is added to Part 2 of Division 2 of the Public Contract Code, to read:
### SEC. 2.
Article 1.7. Equity Metrics in State Contracting10117. As used in this article:(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state. (b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state (c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations. 10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.(b) The bid preference shall operate as follows:(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications. (2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score. (3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements. 10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article. (b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.
Article 1.7. Equity Metrics in State Contracting10117. As used in this article:(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state. (b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state (c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations. 10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.(b) The bid preference shall operate as follows:(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications. (2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score. (3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements. 10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article. (b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.
Article 1.7. Equity Metrics in State Contracting
Article 1.7. Equity Metrics in State Contracting
10117. As used in this article:(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state. (b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state (c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations.
10117. As used in this article:
(a) Awarding department means any state agency, department, governmental entity, or other officer or entity empowered by law to enter into contracts on behalf of the state.
(b) Contract includes any agreement or joint development agreement to provide labor, services, material, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the state
(c) Contractor means any person or persons, firm, partnership, corporation, or combination thereof that submits a bid and enters into a contract with a representative of a state agency, department, governmental entity, or other officer empowered by law to enter into contracts on behalf of the State of California.
(d) Equity metrics include, but is not limited to, having a required percentage of the workforce for the contract living in areas below the poverty line, in communities disproportionately affected by environmental pollution, or in regions with high unemployment and low-income concentrations.
10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.(b) The bid preference shall operate as follows:(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications. (2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score. (3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements.
10117.1. (a) Notwithstanding any other law, an awarding department shall provide for a bid preference in the award of contracts, in accordance with subdivision (b), to contractors that set equity metrics.
(b) The bid preference shall operate as follows:
(1) In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, the preference to a contractor described in subdivision (a) shall be 10 percent of the lowest responsible bidder meeting specifications.
(2) In solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, the preference to a contractor described in subdivision (a) shall be 10 percent of the highest responsible bidders total score.
(3) The preferences contained in paragraphs (1) and (2) shall not be awarded to a noncompliant bidder and shall not be used to achieve any applicable minimum requirements.
10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article. (b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.
10117.2. (a) The Department of General Services shall adopt rules and regulations for the purpose of implementing this article.
(b) The rules and regulations adopted by the Department of General Services shall include enforcement methods to ensure compliance with agreed-upon equity metrics, including requiring contractors to track and report progress to the awarding department.
(a)A state agency may use, enter into, or require contractors to enter into, a project labor agreement, pursuant to this chapter, that applies to a project or set of projects with aggregate construction costs in excess of thirty-five million dollars ($35,000,000) only if the agreement also includes provisions to address community benefits. Community benefits may include partnerships with high road construction careers programs, as defined in Section 14005 of the Unemployment Insurance Code, local hire goals, coordination with programs that assist veterans in transitioning to civilian employment, job fairs for construction apprenticeship or preapprenticeship programs, or other methods agreed upon by the parties to promote employment and training opportunities for veterans and individuals who reside in economically disadvantaged areas.
(b)This section shall apply to project labor agreements entered into on or after January 1, 2026.