AMENDED IN SENATE APRIL 15, 2026
AMENDED IN SENATE MARCH 23, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
97
Introduced by Senator Hurtado
February 20, 2026
An act to add Section 16763 of to the Business and Professions Code, relating to business regulation.
Vote: majority Appropriation: no Fiscal committee: yes Local program: yes
LEGISLATIVE COUNSEL’S DIGEST
Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts.
This bill would authorize the Department of Justice to request to examine all records, files, documents, accounts, and data related to contracts with
contract records, as defined, held by a public entity that concern a contract amount over $100,000 to identify bid rigging and other violations, as provided. if the request seeks information that is reasonably related to an investigation initiated by the Attorney General to identify bid rigging and other violations of California law concerning the public procurement of goods and services, and the contract amount exceeds $100,000. The bill would require a public entity to permit the examination and, upon demand, produce within 30 days, in complete and unredacted form, all books, records, data, contracts, contract proposals, specified electronic communications, and papers in its offices, as prescribed.
copies of all contract records. The bill would require information and documents obtained under the bill’s provisions to only be used for the purpose described above, and would exempt documents or information protected by the attorney-client privilege, as specified. The bill would define “public entity” to include certain local public entities. the state, local agencies, and any other political subdivision or public corporation. By imposing new duties on local public entities, the bill would impose a state-mandated local program. The bill would require the department to pay a fee to the public entity limited to the direct cost of duplication under these provisions, or a statutory fee, if applicable. The bill would require the department to maintain the confidentiality of the documents
or information received to the greatest extent required by law. law, as specified. The bill would prohibit information obtained in response to a request under these provisions from being provided in response to a request pursuant to the California Public Records Act, as described.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
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 16763 is added to the Business and Professions Code, to read:
16763.
(a) The For purposes of this section, the following definitions apply:
(1) “Contract records” is limited to records, files, documents, emails, communications, accounts, and data related to a contract with any public entity that are received from, sent to, or communicated with a third party outside the public entity, or would be available under a request pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(2) “Public entity” has the same meaning as defined in Section 1100 of the Public Contract Code.
(b) The Department of Justice may request to examine all records, files, documents, accounts, and data related to contracts with any public entity, as defined by Section 1100 of the Public Contract Code, that concern a contract amount over one hundred thousand dollars ($100,000) to identify bid rigging and other violations under California law. The department may request or
contract records held by a public entity or to enter any public office or institution in this state and examine any records, files, books, data, papers, or documents contained therein or belonging thereto for the purpose of making the examination. contract records if both of the following are true:
(1) The request seeks information reasonably related to an active investigation initiated by the Attorney General to identify bid rigging and other violations of California law concerning the public procurement of goods and services.
(2) The contract amount exceeds one hundred thousand dollars ($100,000).
(c) A public entity shall permit the examination under subdivision (a) (b) and, upon demand, shall produce within 30 days, in complete and unredacted form,
copies of all books, records, data,
contracts, contract proposals, specified electronic communications, including, but not limited to, emails, and papers in its offices and furnish information touching books, papers, contracts, and other matters pertaining to the public entity. contract records.
(d) The department shall pay a fee to the public entity limited to the direct cost of duplication under this section, or a statutory fee, if applicable. Upon request, an exact copy shall be provided unless impracticable to do so. The cost of duplication of an electronic record shall be limited to the direct cost of producing a copy of a record in an electronic format.
(e) (1) Information and documents obtained under subdivisions (b) and (c) shall be used only for the purpose of identifying bid rigging and other violations of California law related to the public procurement of goods and services.
(2) A public entity responding to a request shall not be required to permit examination of, or to produce copies of, documents or information protected by the attorney-client privilege or any other applicable privilege.
(f) (1) The department shall maintain the confidentiality of the documents or information received to the greatest extent required by law. law, and at a minimum as if they had been subpoenaed
under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code.
(2) (A) Information obtained under this section shall not be considered a public record and shall not be disclosed by the department pursuant to a request under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(B) This paragraph does not affect a public entity’s obligation to produce records under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
SEC. 2.
The Legislature finds and declares that Section 1 of this act, which adds Section 16763 to the Business and Professions Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to facilitate cooperation by public agencies and the expeditious transfer and examination of records, it is necessary that this act limit the public’s right of access to that information.
SEC. 3.
The Legislature finds and declares that Section 1 of this act, which adds Section 16763 to the Business and Professions Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
In order to facilitate cooperation by local agencies and the expeditious transfer and examination of records, it is necessary that this act limit the public’s right of access to that information.
SEC. 2.SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.