Existing law creates within the Governor's Office of Business and Economic Development the Office of Small Business Advocate in order to advocate the causes of small business and to provide small businesses with the information they need to survive in the marketplace to be led by the Small Business Advocate. The California Employee Ownership Act requires, upon appropriation by the Legislature, the Office of Small Business Advocate to establish the California Employee Ownership Hub (hub) and to appoint an Employee Ownership Hub Manager (manager) to administer the hub. The act authorizes the manager to be responsible for certain duties, including working with all California state agencies whose regulations and programs affect employee-owned companies, and businesses with the potential to become employee-owned, to enhance opportunities and reduce barriers.
This bill would require the Director of General Services to issue an employee stock ownership plan (ESOP) contractor certificate to a qualified contractor, as defined, with an ESOP that meets certain criteria, including that at least an unspecified percentage of the qualified contractor's employees participate in the ESOP, as specified. The bill would additionally authorize the manager to be responsible for compiling and maintaining a comprehensive bidders list of qualified contractors that have received that certificate from the Director of General Services. The bill would also require, beginning January 1, 2027, the Department of Transportation to ensure that an unspecified percentage of state funded construction contracts and construction-related procurements involve contractors who have received that certificate.

Statutes affected:
SB 713: 12100.32 GOV, 12100.33 GOV
02/21/25 - Introduced: 12100.32 GOV, 12100.33 GOV