California · 2025–26 Regular Session · Senate Bill
SB 1174: Public contracts: Department of Transportation: bid preferences: employee stock ownership plans.
Passed one chamber Official data
- Introduced
- In committee
- Passed one chamber
- Passed both chambers
- Enacted
Last official action: ·Record last updated:
Plain-language summary
SB 1174 is a senate bill introduced in the California Senate on February 18, 2026. According to its official title, it concerns: Public contracts: Department of Transportation: bid preferences: employee stock ownership plans. Primary sponsor: Suzette Martinez Valladares (R). Most recent recorded action (August 13, 2026): August 13 hearing: Held in committee and under submission.
Generated automatically from the official title, sponsor list, and status record only. It does not characterize the bill’s purpose or effects. How summaries are written
Official summary
Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.
Existing law establishes the Department of Transportation and requires it to improve and maintain the state highways. Existing law authorizes the department to enter into any contracts required for the performance of its duties, as provided. Existing law establishes bid preferences in public contracting for certain types of bidders, including, but not limited to, small business and microbusiness bidders.
This bill would, on and after January 1, 2028, require the department to provide certain bid preferences to a contractor or subcontractor with an employee stock ownership plan (ESOP) in which 30% or more is owned by the ESOP when the contractor or subcontractor bids or is part of a bid on a state-funded construction contract, as specified. The bill would make it unlawful for a person, contractor, or subcontractor to engage in specified behaviors related to the fraudulent obtaining or retaining of an ESOP bid preference and would subject a person, contractor, or subcontractor engaged in those behaviors to a suspension from bidding on or participating in any contract with the department for certain periods and specified civil penalties.
Sponsors
Sponsors by party (alphabetical): Republican 1
| Name | Role | Party | Chamber | District |
|---|---|---|---|---|
| Suzette Martinez Valladares | Primary sponsor | Republican | Senate | 23 |
“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.
Recent official actions
- August 13 hearing: Held in committee and under submission.
- August 5 set for first hearing. Placed on suspense file.
- From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 30). Re-referred to Com. on APPR.
- From committee: Do pass and re-refer to Com. on JUD. (Ayes 15. Noes 0.) (June 22). Re-referred to Com. on JUD.
- From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS.
- Referred to Coms. on TRANS. and JUD.
- In Assembly. Read first time. Held at Desk.
- Read third time. Passed. (Ayes 33. Noes 0. Page 4419.) Ordered to the Assembly.
- Ordered to special consent calendar.
- Read second time. Ordered to third reading.
- From committee: Do pass. (Ayes 7. Noes 0. Page 4267.) (May 14).
- Set for hearing May 14.