The Public Contract Code governs local public contracting and, in specified circumstances, requires bidders to submit information concerning participation goals and other procurement requirements.
AB 1838 establishes a new disclosure requirement for contractors bidding on public works contracts with local agencies. To submit a bid, the contractor must disclose specified federal, state, and local wage-and-hour violations occurring within the preceding five (5) years and provide documentation showing that disclosed violations have been corrected or resolved, including proof that fines, penalties, and back wages have been paid. The contractor must also provide a written statement describing steps taken to prevent future violations. Failure to provide the required information may result in disqualification of the bid. AB 1838 also establishes an appeal process for bid disqualification and excludes specified projects, including public works contracts covered by a project labor agreement and projects for which the local agency requires contractor prequalification as a condition of bidding.
Local agencies should review their bid documents and procurement processes consistent with the new law.
AB 1838 adds Public Contract Code Section 2011.
