State agency contracts: bid preference: equity metrics.

Small Business Technology

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Smallwood-Cuevas
Last action: 2026-01-27
Official status: In Assembly. Read first time. Held at Desk.
Effective date: Not listed

Plain English Breakdown

The exact percentage of the bid preference is left unspecified in the official summary.

State Agency Contracts: Bid Preference Based on Equity Metrics

This law requires state agencies to give a bidding preference to contractors that meet certain equity criteria when awarding contracts for goods, information technology, services, and construction.

What This Bill Does

Requires state agencies to offer a bid preference of a prescribed percentage to contractors who set specific equity metrics in their business practices.
Prohibits giving this preference to contractors who do not comply with the required equity metrics.
Prevents using the preference to meet any minimum requirements for participation goals.
Directs the Department of General Services to create rules and regulations to enforce these new bidding preferences.

Who It Names or Affects

State agencies that award contracts
Contractors who bid on state agency contracts

Terms To Know

Equity metrics: Specific standards or goals set by a contractor to promote fairness and inclusion in their business practices.
Bid preference: An advantage given to certain bidders when awarding contracts, such as offering them a lower price point than others.

Limits and Unknowns

The exact percentage of the bid preference is not specified in the summary.
It's unclear how compliance with equity metrics will be verified and enforced.
The bill does not specify when it becomes effective or what happens if a contractor fails to meet the required metrics.

Bill History

2026-01-27 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-01-27 California Legislative Information
Read third time. Passed. (Ayes 30. Noes 10. Page 3306.) Ordered to the Assembly.
2026-01-22 California Legislative Information
Read second time. Ordered to third reading.
2026-01-22 California Legislative Information
From committee: Do pass. (Ayes 5. Noes 2. Page 3268.) (January 22).
2026-01-21 California Legislative Information
Set for hearing January 22.
2026-01-20 California Legislative Information
January 20 hearing: Placed on APPR. suspense file.
2026-01-09 California Legislative Information
Set for hearing January 20.
2025-05-06 California Legislative Information
May 12 set for first hearing canceled at the request of author.
2025-05-02 California Legislative Information
Set for hearing May 12.
2025-04-22 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 4. Page 830.) (April 22). Re-referred to Com. on APPR.
2025-04-21 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on G.O.
2025-04-10 California Legislative Information
Set for hearing April 22.
2025-04-02 California Legislative Information
Re-referred to Com. on G.O.
2025-03-26 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-02-14 California Legislative Information
Referred to Com. on RLS.
2025-02-03 California Legislative Information
From printer. May be acted upon on or after March 2.
2025-01-30 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 247, as amended, Smallwood-Cuevas.
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%
a prescribed percentage, as specified,
in the award of contracts to contractors that set equity
metrics, as prescribed.
metrics.
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.

Current Bill Text

Read the full stored bill text

Download Bill PDF