Employee stock ownership plans: contractors: certification.
- Establishes a new certification program for contractors with employee stock ownership plans.
- Requires state construction contracts to include certified employee-owned contractors starting 2027.
- Creates a California Employee Ownership Hub to support and promote employee-owned businesses.
- Mandates independent trustees and employee participation requirements for certified contractors.
Senator Valladares's proposal establishes a certification program for employee stock ownership plan (ESOP) contractors and mandates their inclusion in state construction projects. The legislation creates a framework for the Director of General Services to certify contractors whose ESOPs meet specific requirements, including independent trustee oversight, minimum employee participation thresholds, and IRS approval.
The bill expands the duties of California's Employee Ownership Hub to maintain a comprehensive list of certified ESOP contractors. These contractors must employ a yet-to-be-determined minimum number of full-time workers and ensure broad employee participation in stock ownership, with limits on individual employee holdings. The Director of General Services may implement certification fees and require renewals every three years.
Beginning January 1, 2027, the Department of Transportation must ensure that a specified percentage of state-funded construction contracts involve certified ESOP contractors. The legislation builds upon existing state infrastructure supporting employee ownership by adding procurement requirements and establishing formal certification standards. The California Employee Ownership Hub will continue its broader mission of coordinating with state agencies, providing educational resources, and facilitating access to capital programs for employee-owned businesses.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Latest Voting History
 Roger NielloR Senator | Committee Member |  Not Contacted | |
 Steven ChoiR Senator | Committee Member | Not Contacted | |
 Tim GraysonD Senator | Committee Member | Not Contacted | |
 Bob ArchuletaD Senator | Committee Member | Not Contacted | |
 Tom UmbergD Senator | Committee Member | Not Contacted |
- Establishes a new certification program for contractors with employee stock ownership plans.
- Requires state construction contracts to include certified employee-owned contractors starting 2027.
- Creates a California Employee Ownership Hub to support and promote employee-owned businesses.
- Mandates independent trustees and employee participation requirements for certified contractors.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Senator Valladares's proposal establishes a certification program for employee stock ownership plan (ESOP) contractors and mandates their inclusion in state construction projects. The legislation creates a framework for the Director of General Services to certify contractors whose ESOPs meet specific requirements, including independent trustee oversight, minimum employee participation thresholds, and IRS approval.
The bill expands the duties of California's Employee Ownership Hub to maintain a comprehensive list of certified ESOP contractors. These contractors must employ a yet-to-be-determined minimum number of full-time workers and ensure broad employee participation in stock ownership, with limits on individual employee holdings. The Director of General Services may implement certification fees and require renewals every three years.
Beginning January 1, 2027, the Department of Transportation must ensure that a specified percentage of state-funded construction contracts involve certified ESOP contractors. The legislation builds upon existing state infrastructure supporting employee ownership by adding procurement requirements and establishing formal certification standards. The California Employee Ownership Hub will continue its broader mission of coordinating with state agencies, providing educational resources, and facilitating access to capital programs for employee-owned businesses.
Latest Voting History
Roger NielloR Senator | Committee Member | Not Contacted | |
Steven ChoiR Senator | Committee Member | Not Contacted | |
Tim GraysonD Senator | Committee Member | Not Contacted | |
Bob ArchuletaD Senator | Committee Member | Not Contacted | |
Tom UmbergD Senator | Committee Member | Not Contacted |