California 20252026 Regular Session Status: Introduced 1 R cosponsors

SB 1174 — Public contracts: Department of Transportation: bid preferences: employee stock ownership plans.

Last action — August 13 hearing: Held in committee and under submission.

  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the Senate. Introduced February 18, 2026. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Stalled 28% · moderate confidence

  • Introduced

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Cleared a recorded vote

    Passed 7 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill establishes bid preferences for contractors with employee stock ownership plans in state-funded projects.

This bill requires the Department of Transportation to provide bid preferences to contractors with employee stock ownership plans starting January 1, 2028. It aims to support businesses that are partially employee-owned while imposing penalties for fraudulent behavior related to bid preferences.

What this means for you
  • Workers: Workers at companies with employee stock ownership plans might benefit from more opportunities for their employers to secure state contracts.
  • Families: {}
  • Small Business: If you own a small business that is employee-owned, this legislation may provide you with an advantage in state contract bids.

Summary

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.

Bill Text

Action History

  1. August 13 hearing: Held in committee and under submission.

  2. August 5 set for first hearing. Placed on suspense file.

  3. From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 30). Re-referred to Com. on APPR.

  4. From committee: Do pass and re-refer to Com. on JUD. (Ayes 15. Noes 0.) (June 22). Re-referred to Com. on JUD.

  5. From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS.

  6. Referred to Coms. on TRANS. and JUD.

  7. In Assembly. Read first time. Held at Desk.

  8. Read third time. Passed. (Ayes 33. Noes 0. Page 4419.) Ordered to the Assembly.

  9. Ordered to special consent calendar.

  10. Read second time. Ordered to third reading.

  11. From committee: Do pass. (Ayes 7. Noes 0. Page 4267.) (May 14).

  12. Set for hearing May 14.

  13. May 4 hearing: Placed on APPR. suspense file.

  14. Set for hearing May 4.

  15. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 3978.) (April 21). Re-referred to Com. on APPR.

  16. Set for hearing April 21.

  17. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 12. Noes 0. Page 3760.) (April 7). Re-referred to Com. on JUD.

  18. Set for hearing April 7.

  19. Referred to Coms. on TRANS. and JUD.

  20. From printer. May be acted upon on or after March 21.

  21. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass and be re-referred to the Committee on [Appropriations]

Passed 10 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 7002
Republican 3000
Total 10002
% of votes cast 83%0%0%17%
How each member voted (12)
Member Party Vote
Bauer-Kahan, Rebecca Democratic Not Voting
Bryan, Isaac G. Democratic Yea
Connolly, Damon Democratic Yea
Harabedian, John Democratic Yea
Kalra, Ash Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Stefani, Catherine Democratic Yea
Zbur, Rick Chavez Democratic Not Voting
Dixon, Diane Republican Yea
Macedo, Alexandra Republican Yea
Sanchez, Kate Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Judiciary]

Passed 15 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 10001
Republican 4000
Unaffiliated 1000
Total 15001
% of votes cast 94%0%0%6%
How each member voted (16)
Member Party Vote
Ávila Farías — Yea
Ahrens, Patrick Democratic Yea
Carrillo, Juan Democratic Yea
Elhawary, Sade Democratic Yea
Harabedian, John Democratic Yea
Hart, Gregg Democratic Yea
Jackson, Corey A. Democratic Yea
Papan, Diane Democratic Yea
Ransom, Rhodesia Democratic Not Voting
Rogers, Chris Democratic Yea
Ward, Christopher M. Democratic Yea
Wilson, Lori D. Democratic Yea
Davies, Laurie Republican Yea
Hoover, Josh Republican Yea
Lackey, Tom Republican Yea
Macedo, Alexandra Republican Yea

Official roll call →

Special Consent

Passed 33 Yea · 0 Nay · 7 Other
Party YeaNayPresentNot Voting
Democratic 25005
Republican 8002
Total 33007
% of votes cast 83%0%0%18%
How each member voted (40)
Member Party Vote
Allen, Benjamin Democratic Not Voting
Archuleta, Bob Democratic Yea
Arreguín, Jesse Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Not Voting
Blakespear, Catherine S. Democratic Yea
Cabaldon, Christopher Democratic Yea
Caballero, Anna M. Democratic Yea
Cervantes, Sabrina Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Hurtado, Melissa Democratic Not Voting
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
McNerney, Jerry Democratic Yea
Menjivar, Caroline Democratic Yea
Padilla, Stephen C. Democratic Not Voting
Pérez, Sasha Renée Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Richardson, Laura Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Not Voting
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Not Voting
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Not Voting
Ochoa Bogh, Rosilicie Republican Yea
Seyarto, Kelly Republican Yea
Strickland, Tony Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar

Passed 13 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 11000
Republican 2000
Total 13000
% of votes cast 100%0%0%0%
How each member voted (13)
Member Party Vote
Allen, Benjamin Democratic Yea
Ashby, Angelique V. Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Laird, John Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wiener, Scott D. Democratic Yea
Niello, Roger W. Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Judiciary] with the recommendation: To Consent Calendar

Passed 12 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 9000
Republican 3001
Total 12001
% of votes cast 92%0%0%8%
How each member voted (13)
Member Party Vote
Archuleta, Bob Democratic Yea
Arreguín, Jesse Democratic Yea
Blakespear, Catherine S. Democratic Yea
Cortese, Dave Democratic Yea
Gonzalez, Lena A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Menjivar, Caroline Democratic Yea
Richardson, Laura Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Not Voting
Seyarto, Kelly Republican Yea
Strickland, Tony Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Subjects

labor transportation
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Frequently asked questions

What does SB 1174 do?
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.
Who sponsors SB 1174?
SB 1174 is sponsored by Valladares, Suzette Martinez (Republican).
What is the current status of SB 1174?
This bill has been introduced in the Senate. Introduced February 18, 2026. It must pass committee before a floor vote.
Where can I track SB 1174?
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