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SB 1058

School districts: contracting: purchases for child nutrition programs.

2025-2026 Regular Session Introduced by Jerry McNerney

SB-1058 allows school districts to weigh factors beyond price in child nutrition purchases under federal standards, not requiring price as the sole primary determinant.

Enrolled and presented to the Governor at 2 p.m.
#schooldistricts #contracting #purchasesforchildnutritionprograms
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Bill Summary · SB 1058

Summary of SB-1058 (2025-2026) – California

Purpose and intent

  • SB-1058 amends the Public Contract Code to adjust procurement rules for school districts that operate at least one federal nonprofit child nutrition program.
  • The core change is to modify how price factors into bid decisions for purchases and to update the federal procurement standards that districts must follow when awarding these purchases.

Key provisions and changes

  • Procurement standard for child nutrition purchases (current law vs. SB-1058):

    • Existing law requires that procurements for purchases in support of federal nonprofit child nutrition programs be consistent with specific federal procurement standards and that awards be let to the most responsive and responsible party with price as the primary consideration (but not the only factor).
    • SB-1058 would eliminate the explicit requirement that price be the primary consideration (while continuing to allow price to be a major factor). In other words, price would no longer have to be the sole primary determinant.

  • Federal procurement standards:

    • The bill reiterates that procurement for these programs must be consistent with the federal standards in 2 C.F.R. Parts 200.318–200.326 and 200.317–200.327, and it requires that awards be to the most responsive and responsible party. The explicit emphasis on price as the primary factor would be removed, allowing other factors (e.g., quality, service, reliability) to have greater weight in awarding decisions.

  • Scope and applicability:

    • Applies to contracts for purchases of equipment, materials, or supplies (including services other than construction) and certain repairs, where the district expenditure exceeds $50,000.
    • Applies to contracts for public projects (construction-related) with thresholds set in the bill, including bid security provisions and formal bid processes.

  • General procurement framework remains intact:

    • Contracts must be let to the lowest responsible bidder who provides required security, or bids may be rejected.
    • For public projects, construction bids must be sealed with specified bidder security (cash, cashier’s check, certified check, or bidder’s bond) and security returned within 60 days if not awarded.
    • Provisions continue to allow adjustments to the dollar thresholds for inflation (via annual adjustments tied to the Implicit Price Deflator).

Who is affected

  • Primary audience: California school districts that operate at least one federal nonprofit child nutrition program.
  • Impact on procurement decisions: Districts will have greater flexibility in evaluating bids beyond price, potentially prioritizing factors such as quality, reliability, vendor performance, and service terms when awarding contracts.

Procedural and timeline aspects

  • Bill status (as of the provided text):

    • Introduced February 12, 2026.
    • Referred to the Assembly Committee on Education (ED) and progressed through standard legislative steps, including committee hearings, second and third readings, and referral to the Assembly.
    • Action history shows: read and passed in committee, moved to Assembly, with subsequent readings and approvals leading to referral to the Assembly floor for consideration.

  • Fiscal impact: The summary indicates no direct appropriation associated with the bill.

  • Inflation adjustments: The bill preserves the mechanism to adjust dollar thresholds annually for inflation using the Implicit Price Deflator, rounded to the nearest $100.

Potential impact and considerations

  • Administrative impact: Districts may need to revise procurement policies and evaluation criteria to reflect the reduced emphasis on price as the sole primary determinant, ensuring compliance with federal standards and any local board requirements.
  • Contracting outcomes: Could lead to greater consideration of supplier performance, program integrity, and service quality, potentially improving nutrition program reliability and compliance with federal rules.
  • Transitional considerations: Districts will need clear guidance on how to balance multiple factors in bid evaluations while still adhering to the overarching federal standards.

This summary focuses on the substantive changes SB-1058 would implement, the affected entities, and the practical implications for school district procurement related to child nutrition programs.

Compiled from official sources — confirm details with the bill’s official record.

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