California SB713 proposes to give preference to contractors with employee stock ownership plans in state-funded construction contracts.

California SB713 amends the Government Code to establish a preference for qualified contractors with employee stock ownership plans (ESOPs) in state-funded construction contracts. The bill defines "qualified contractor" and outlines the criteria for ESOP contractor certificates, including having an independent ESOP trustee and a favorable determination letter from the Internal Revenue Service. The Director of General Services will issue these certificates, which must be renewed every three years.

California SB713 proposes to give preference to contractors with employee stock ownership plans in state-funded construction contracts.

California SB713 amends the Government Code to establish a preference for qualified contractors with employee stock ownership plans (ESOPs) in state-funded construction contracts. The bill defines "qualified contractor" and outlines the criteria for ESOP contractor certificates, including having an independent ESOP trustee and a favorable determination letter from the Internal Revenue Service. The Director of General Services will issue these certificates, which must be renewed every three years.