CA SB1174

Establishes bid preferences for contractors with Employee Stock Ownership Plans (ESOPs) on California Department of Transportation state-funded construction contracts, effective January 1, 2028

Provides tiered bid preferences based on ESOP ownership percentage: 2% for 30-49% employee ownership, 3% for 50-99% ownership, and 4% for 100% employee ownership

Grants an additional 1% bid preference to ESOP contractors whose employees are covered by a collective bargaining agreement or master labor agreement

Requires ESOP contractors to submit IRS determination letters, Form 5500 filings, and independent accounting firm reviews verifying ownership percentages at time of bid

Imposes civil penalties ranging from $5,000 to $200,000 and suspensions of 30 days to 3 years for fraudulently obtaining or retaining ESOP contractor status