AMENDED IN SENATE JUNE 11, 2026

AMENDED IN SENATE JUNE 3, 2026

AMENDED IN ASSEMBLY APRIL 6, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

96

Introduced by Assembly Member Berman

February 11, 2026

An act to add Section 2011 to the Public Contract Code, relating to public contracts.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law governs the procurement process for contracts of specified public entities. Existing law requires a local agency that requires that contracts be awarded to the lowest responsible bidder meeting, or making a good faith effort to meet, participation goals for minority, women, or disabled veteran business enterprises to provide in the general conditions under which bids will be received that any person making a bid or offer to perform a contract shall include specified information in that bid or offer.

This bill would require a contractor, as a condition of submitting a bid to a local agency for a public works contract, to fully disclose any history of wage and hour violations, as specified, and provide supporting documentation, as described. The bill would authorize a contractor that fails to provide the required disclosures and supporting materials to be disqualified from the bid. The bill would require a local agency to establish a process for a contractor to appeal their bid disqualification, as specified. By requiring local agencies to establish a bid disqualification appeal process, this bill would impose a state-mandated local program. The bill would exempt public works contracts covered by a project labor agreement, and projects where local agencies require contractors to prequalify as a condition of bidding.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1.

Section 2011 is added to the Public Contract Code, to read:

2011.

(a) (1) As a condition of submitting a bid to a local agency for a public works contract, a contractor shall fully disclose any history of wage and hour violations and provide supporting documentation. documentation, as required by this section.

(2) To the extent applicable, the contractor shall submit all of the following:

(A) A written disclosure of any federal, state, or local wage and hour violations within the past five years, including violations involving unpaid wages, overtime, meal or rest break violations, or misclassification of employees or independent contractors.

(B) (i) Documents demonstrating that each disclosed wage and hour violation has been corrected or otherwise resolved.

(ii) To the extent applicable, the documentation shall include copies of court orders, judgments, or final administrative determinations, along with proof that all fines, penalties, or back wages have been paid in full.

(b) Failure to provide the required disclosures and supporting materials pursuant to this section may result in disqualification of the bid.

(c) A local agency shall establish a process that allows a contractor to appeal a bid disqualification for failure to comply with this section and shall ensure that the process complies with all of the following:

(1) The process shall include a written notification to the contractor regarding the basis for the contractor’s disqualification and any supporting evidence, including any disclosures submitted to the local agency or adduced as a result of an investigation by the local agency.

(2) The contractor shall be given the opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the public entity local agency that supports why the contractor should be found qualified.

(3) If the contractor elects to not avail themself of this process, the proposed bid disqualification may be adopted without further proceedings.

(d) (1) For purposes of this section, “violation” means a final judgment, order, or determination by a court or any federal, state, or local administrative agency finding the contractor liable for owed wages or related damages, interest, fines, or penalties.

(2) A contractor shall not be disqualified for any judgment, order, or determination that is under appeal, provided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means.

(e) This section shall not apply to either of the following:

(1) A public works contract that is covered by a project labor agreement.

(2) A project for which a local agency requires contractors, as a condition of bidding, to prequalify by disclosing all wage and hour violations within the past five years, including violations regarding unpaid wages, overtime, meal or rest break requirements, or the misclassification of employees or independent contractors.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.