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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB2820 • 2025

Provides that a contracting agency may not accept a bid or proposal for a public contract from a covered entity for which the ratio between highest amount of total compensation and lowest amount of total compensation that the covered entity pays employees of the covered entity exceeds 50 to 1.

Provides that a contracting agency may not accept a bid or proposal for a public contract from a covered entity for which the ratio between highest amount of total compensation and lowest amount of total compensation that the covered entity pays employees of the covered entity exceeds 50 to 1.

Labor
Passed Legislature

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

Sponsor
Representative Evans
Last action
2025-06-27
Official status
In House Committee
Effective date
Not listed

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Bill History

  1. 2025-06-27 House

    In committee upon adjournment.

  2. 2025-01-17 House

    Referred to Labor and Workplace Standards.

  3. 2025-01-13 House

    First reading. Referred to Speaker's desk.

Official Summary Text

Digest: Tells a public agency not to take an offer for a public contract from a not-for-profit company if the person who earns the most money at the company earns more than 50 times as much as the person who earns the least money. Takes effect on the 91st day after the session ends. (Flesch Readability Score: 60.2).
Provides that a contracting agency may not accept a bid or proposal for a public contract from a covered entity for which the ratio between highest amount of total compensation and lowest amount of total compensation that the covered entity pays employees of the covered entity exceeds 50 to 1.
Requires a contracting agency to disclose the prohibition in an advertisement or solicitation for the public contract and provide in the public contract that a failure to comply subjects the covered entity to a termination of the public contract and debarment or disqualification, as appropriate.
Becomes operative on January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to compensation ratios in certain nonprofit corporations; prescribing an effective date.
Current location: In House Committee