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CaliforniaAB 3612025-2026 Regular SessionHouseWALLET

Best value procurement: school districts.

Sponsored By: Nick Schultz (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

5% retention cap on bonded school jobs

When a job requires a performance and payment bond, the district cannot withhold more than 5% from the prime. A prime cannot hold back from subs more than the percent in the prime contract. If a sub got written notice a bond may be needed and cannot or refuses to get one, the prime may withhold more from that sub.

Skilled workforce required to prequalify

To be prequalified or short‑listed, a bidder must promise to use a skilled and trained workforce for apprenticeable jobs. This promise covers the bidder and all tiers of subcontractors. The rule does not apply if a project labor agreement binds all contractors and subs. It is also waived for extensions or renewals of PLAs the district signed before January 1, 2025, or if the bidder has a PLA that binds its subs.

LAUSD keeps separate, ongoing best value

Los Angeles Unified is not covered by this article. The law repeals Sections 20119.5 and 20119.7. Under this legislation, LAUSD’s best value authority is made indefinite. LAUSD continues to use its own program.

School best-value bidding allowed through 2030

School boards can choose best value for projects over $1,000,000 through December 31, 2030. The law ends this authority on January 1, 2031. Boards must publish fair scoring rules, invite sealed bids, and list all criteria and weights. Districts score qualifications first and keep bidder names and prices confidential until that step is done. Awards use price divided by the qualification score. If the top bidder will not sign, the board may move to the second, then third. The lowest‑responsible‑bidder rule still applies unless this article says otherwise.

Stronger protections for subs and bid info

Subcontractors who bid on these jobs get the protections in Chapter 4 (starting at Section 4100). Some bidder materials stay confidential when the Public Records Act exempts them. Districts must withhold those items from public release when the Act allows it.

Districts must report results by 2030

Any district that uses best value must pay for an independent report to the Legislature by January 1, 2030. Districts may file a joint report. It must list projects, award amounts, contractor names, protests and outcomes, prequalification steps, criteria and weights used, and how projects performed. The reporting duty ends on January 1, 2031.

Sponsors & Cosponsors

Sponsor

  • Nick Schultz

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 125 • No: 14

Senate vote • 9/3/2025

Item 81 — Senate SFLOOR

Yes: 31 • No: 8

legislature vote • 6/25/2025

Vote in CS44

Yes: 5 • No: 2

House vote • 6/2/2025

Item 68 — Assembly AFLOOR

Yes: 70 • No: 3

legislature vote • 5/23/2025

Vote in CX25

Yes: 12 • No: 1

legislature vote • 3/12/2025

Vote in CX03

Yes: 7 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 144, Statutes of 2025.

    10/1/2025Senate

  2. Approved by the Governor.

    10/1/2025legislature

  3. Enrolled and presented to the Governor at 3 p.m.

    9/9/2025legislature

  4. In Assembly. Ordered to Engrossing and Enrolling.

    9/3/2025House

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 8. Page 2428.).

    9/3/2025Senate

  6. Read second time. Ordered to third reading.

    6/26/2025Senate

  7. From committee: Do pass. (Ayes 5. Noes 2.) (June 25).

    6/25/2025Senate

  8. Referred to Com. on ED.

    6/11/2025Senate

  9. In Senate. Read first time. To Com. on RLS. for assignment.

    6/3/2025Senate

  10. Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 3. Page 1821.)

    6/2/2025House

  11. Read third time and amended. Ordered to third reading. (Page 1756.)

    5/28/2025House

  12. Read second time. Ordered to third reading.

    5/27/2025House

  13. From committee: Do pass. (Ayes 12. Noes 1.) (May 23).

    5/23/2025House

  14. In committee: Set, first hearing. Referred to APPR. suspense file.

    4/9/2025House

  15. Re-referred to Com. on APPR. pursuant to Assembly Rule 97.

    3/28/2025House

  16. Read second time. Ordered to third reading.

    3/19/2025House

  17. Read second time and amended. Ordered returned to second reading.

    3/18/2025House

  18. From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (March 12).

    3/17/2025House

  19. Re-referred to Com. on ED.

    3/4/2025House

  20. From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended.

    3/3/2025House

  21. Referred to Com. on ED.

    2/18/2025House

  22. From printer. May be heard in committee March 2.

    1/31/2025House

  23. Read first time. To print.

    1/30/2025House

Bill Text

  • Chaptered

    10/1/2025

    HTML

  • Enrolled

    9/5/2025

    HTML

  • Amended Assembly

    5/28/2025

    HTML

  • Amended Assembly

    3/18/2025

    HTML

  • Amended Assembly

    3/3/2025

    HTML

  • Introduced

    1/30/2025

    HTML

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