2025 Regular Session HB 2820

• Bill Title: Relating to compensation ratios in certain nonprofit corporations; prescribing an effective date.

Catchline/Summary

Digest: Tells a public agency not to take an offer for a public contract from a not-for-profit company if the person who earns the most money at the company earns more than 50 times as much as the person who earns the least money. Takes effect on the 91st day after the session ends. (Flesch Readability Score: 60.2).

Provides that a contracting agency may not accept a bid or proposal for a public contract from a covered entity for which the ratio between highest amount of total compensation and lowest amount of total compensation that the covered entity pays employees of the covered entity exceeds 50 to 1.

Requires a contracting agency to disclose the prohibition in an advertisement or solicitation for the public contract and provide in the public contract that a failure to comply subjects the covered entity to a termination of the public contract and debarment or disqualification, as appropriate.

Becomes operative on January 1, 2026.

Takes effect on the 91st day following adjournment sine die.

• Fiscal Impact: May Have Fiscal Impact, But No Statement Yet Issued
• Revenue Impact: May Have Revenue Impact, But No Statement Yet Issued
• Current Location: In House Committee
• Current Committee: House Committee On Labor and Workplace Standards