State agency contracts: bid preference: equity metrics.

Senator Smallwood-Cuevas's California Good Jobs Act establishes a new framework of bid preferences for state contracts exceeding $35 million that are funded through federal infrastructure, climate, or technology initiatives. The legislation creates incentives for contractors to hire workers from disadvantaged communities and distressed areas.

The bill institutes a graduated scale of bid preferences, with contractors receiving larger advantages based on the percentage of total labor hours performed by workers from qualifying areas. The preferences range from 1% for contractors employing eligible workers for 5-9% of labor hours up to 10% for those reaching 90% of total contract hours. These preferences apply specifically to projects funded through the Infrastructure Investment and Jobs Act, Inflation Reduction Act, or CHIPS and Science Act.

Under the measure, the Department of General Services must develop regulations requiring contractors to track and report their hiring of eligible workers to demonstrate compliance. The department will oversee enforcement of the new requirements, with preferences prohibited for contractors who fail to meet their committed hiring targets. The preferences also cannot be used to satisfy any existing minimum participation requirements for state contracts.