Existing law that governs state acquisition of goods and services exempts certain consulting services contracts from advertising and bidding requirements, including contracts that can only be performed by a public entity, as defined.

This bill would additionally exempt contracts that can only be performed by a federally recognized California Native American tribe from the above-described advertising and bidding requirements.

Existing law requires a state agency to secure at least 3 competitive bids or proposals for each contract for services. Existing law exempts specified contracts from this requirement, including a contract that is with, among other entities, another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college.

This bill would additionally exempt a contract that is with a federally recognized California Native American tribe from the above-described provisions and would authorize a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling an interagency agreements if the contracting federally recognized California Native American tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.

Existing law prohibits a person, firm, or subsidiary thereof that has been awarded a consulting services contract from submitting a bid for, or being awarded a contract for, the provision of services, the procurement of goods or supplies, or any other related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract, with certain exceptions.

This bill would exempt California Native American tribes awarded a consulting services contract for tribal cultural resources purposes, as defined, from the above-described provisions.

Existing law that governs state acquisition of goods and services exempts certain consulting services contracts from advertising and bidding requirements, including contracts that can only be performed by a public entity, as defined.

This bill would additionally exempt contracts that can only be performed by a federally recognized California Native American tribe from the above-described advertising and bidding requirements.

Existing law requires a state agency to secure at least 3 competitive bids or proposals for each contract for services. Existing law exempts specified contracts from this requirement, including a contract that is with, among other entities, another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college.

This bill would additionally exempt a contract that is with a federally recognized California Native American tribe from the above-described provisions and would authorize a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling an interagency agreements if the contracting federally recognized California Native American tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.

Existing law prohibits a person, firm, or subsidiary thereof that has been awarded a consulting services contract from submitting a bid for, or being awarded a contract for, the provision of services, the procurement of goods or supplies, or any other related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract, with certain exceptions.

This bill would exempt California Native American tribes awarded a consulting services contract for tribal cultural resources purposes, as defined, from the above-described provisions.

Existing law that governs state acquisition of goods and services exempts certain consulting services contracts from advertising and bidding requirements, including contracts that can only be performed by a public entity, as defined.

This bill would additionally exempt contracts that can only be performed by a federally recognized California Native American tribe from the above-described advertising and bidding requirements.

Existing law requires a state agency to secure at least 3 competitive bids or proposals for each contract for services. Existing law exempts specified contracts from this requirement, including a contract that is with, among other entities, another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college.

This bill would additionally exempt a contract that is with a federally recognized California Native American tribe from the above-described provisions and would authorize a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling an interagency agreements if the contracting federally recognized California Native American tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.

Existing law prohibits a person, firm, or subsidiary thereof that has been awarded a consulting services contract from submitting a bid for, or being awarded a contract for, the provision of services, the procurement of goods or supplies, or any other related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract, with certain exceptions.

This bill would exempt California Native American tribes awarded a consulting services contract for tribal cultural resources purposes, as defined, from the above-described provisions.

 THIRD READING  

Bill No: AB 2187

Author: Ramos (D)

Introduced: 2/19/26

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 6/23/26

AYES: Rubio, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Ochoa Bogh, Padilla, Richardson, Smallwood-Cuevas, Wahab, Weber Pierson

NO VOTE RECORDED: Alvarado-Gil

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26

AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab

ASSEMBLY FLOOR: 73-0, 5/22/26 - See last page for vote

SUBJECT: Public contracts: contracts for services

SOURCE: Twenty-nine Palms Band of Mission Indians

DIGEST: This bill exempts federally recognized California Native American tribes from certain requirements governing public contracts for goods and services, as specified.

ANALYSIS:

Existing law:

1. Governs state acquisition of goods and services, including establishing advertising and bidding requirements. Exempts certain consulting services contracts from these requirements, including contracts that can only be performed by a public entity, as defined. (Public Contracts Code §10335.5)
2. Requires a state agency to secure at least three competitive bids or proposals for each contract for services. Exempts certain contracts from this requirement, including a contract that is with another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college. Specifies, however, that these contracts shall not be used to circumvent competitive bidding requirements. (Public Contracts Code Section 10340)
3. Prohibits a person, firm, or subsidiary thereof who has been awarded a consulting services contract from submitting a bid, or being awarded a contract for, the provision of services, procurement of goods or supplies, or any other related action which is required, suggested, or otherwise deemed appropriate in the end product in the consulting services contract. Specifies, however, that this prohibition does not apply to any person, firm, or subsidiary thereof who is awarded a subcontract of a consulting services contract which amounts to no more than 10 percent of the total monetary value of the consulting services contract. (Public Contracts Code Section 10365.5.)

This bill:

1. Exempts contracts that can only be performed by a federally recognized California Native American tribe from certain advertising and bidding requirements under the law that governs state acquisition of goods and services.
2. Exempts contracts with a federally recognized California Native American Tribe from an existing law that requires a state agency offering a public contract to secure at least three competitive bids or proposals for each contract. This exemption parallels an existing exemption for state agency contracts with other public entities.
3. Authorizes a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling interagency agreements if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
4. Exempts California Native American tribes awarded a consulting services contract for tribal cultural resources from an existing law that prohibits a person or entity that has been awarded a consulting services contract from submitting a bid or being awarded a contract relating to services, goods, supplies or other action that is required or deemed appropriate in the end product of the consulting services contract.

Background

Author Statement. According to the author’s office, “AB 2187 will help strengthen the state’s relationship with California’s tribes by making it easier for state agencies to work directly with tribal governments and their businesses. Right now, tribes are disproportionally disadvantaged when competing for state contracts. While the federal government already allows direct contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. AB 2187 will address this inequity by ensuring that state contracting with tribal nations and their businesses is recognized as government-to-government negotiation. This change will give tribes access to more contracting opportunities, helping them support their local economies and their people.”

Current Exemptions. The Public Contract Code (PCC) establishes uniform contracting procedures designed to safeguard public funds and seeks to promote fairness in public procurement. It serves as the primary legal framework governing contracts between most public entities and their contractors, largely through the imposition of competitive bidding requirements and related restrictions on the acquisition of goods and services.

Existing law generally requires state agencies to solicit at least three bids for each service contract and, with limited exceptions, prohibits a contractor awarded a prime contract from bidding on its component subcontracts. However, current law also provides exemptions from these requirements for certain contracts – including those with other state agencies, local governmental entities, auxiliary organizations of the California State University, and auxiliary organizations of California Community colleges – particularly where such contracts involve the provision of goods, services, or specified consulting services.

The author’s office argues that current law places tribal governments and tribal- owned businesses at structural disadvantages in competing for state contracts. Tribes are required to navigate the same competitive bidding processes as large private sector companies, despite long-standing economic and historical barriers that have constrained tribal economic development. Because existing law neither recognizes nor accounts for these disparities, tribal-owned businesses frequently lack the capacity to gain entry into the state contracting market. The author’s office argues that this exclusion limits tribal governments’ ability to grow their economies and provide for their communities. Absent a more accessible pathway into state procurement, tribes remain at a material disadvantage relative to private sector counterparts that possess substantially greater institutional capacity and resources.

This bill extends comparable exemptions to federally recognized California Native American tribes that hold sovereign governmental status. California is home to 109 federally recognized tribes, ranging in membership from a handful to more than 5,000 individuals. Based on U.S. Census figures, in 2022, 1.7% of the state population is Native American or approximately 660,600 people.

Related/Prior Legislation

AB 630 (Ramos, Chapter 137, Statutes of 2023) removed requirements in existing law that limit the authority of Department of Transportation to contract with federally recognized Indian tribes and entities they own.

AB 2387 (Pan, Chapter 504, Statutes of 2014) exempts the Commission on Peace Officer Standards and Training (POST) from specified notification requirements when entering into personal services contracts, as specified; and exempts both POST and the Office of Emergency Services from the requirement of obtaining three competitive bids when those contracts are solely for the services of instructors for public safety training.

AB 906 (Pan, Chapter 744, Statutes of 2013) prohibits a state agency from executing a personal services contract for non-cost savings reasons, except in specified sudden and unexpected situations, until it has certified that all employee organizations that perform the type of work being contracted out have been notified and required the Department of General Services to establish the certification of notification process.

SB 1189 (Chesbro, Chapter 274, Statutes of 2004) authorizes the California Department of Transportation to contract with federally recognized Indian tribes for the performance of specified transportation duties.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, unknown, potentially significant state procurement cost pressures (General Fund and various special funds). Exempting federally recognized tribes from certain public contracting requirements removes standard oversight by DGS. Foregoing this review process could result in unforeseen liability or financial exposure for the state, with the actual fiscal impact depending on the specific scope of each contract. DGS does not anticipate any significant administrative costs resulting from the implementation of this bill.

SUPPORT: (Verified 8/13/26)

Twenty-nine Palms Band of Mission Indians (source)

California Rural Indian Health Board, Inc.

Habematolel Pomo of Upper Lake

Santa Ynez Band of Chumash Indians

OPPOSITION: (Verified 8/13/26)

None received

ARGUMENTS IN SUPPORT: According to the Twenty-nine Palms Band of Mission Indians, “Under the Buy Indian Act, federal agencies such as the Bureau of Indian Affairs and the Bureau of Indian Education are required to prioritize contracting with American Indian and Alaska Native businesses whenever feasible. California, however, does not have a similar system in place, which limits how easily the state can partner with tribes. AB 2187 helps address this gap by allowing state agencies to contract directly with federally recognized tribes and their tribally owned enterprises without going through the full competitive bidding process. This makes it easier for the state and local governments to work with tribes in areas where they have specialized expertise, such as in land management, cultural resource protection, and environmental stewardship.”

ASSEMBLY FLOOR: 73-0, 5/22/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Tangipa, Valencia, Wallis, Ward, Wilson, Zbur, Rivas

NO VOTE RECORDED: Arambula, Bauer-Kahan, Chen, Gabriel, Celeste Rodriguez, Ta, Wicks

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

8/14/26 16:06:28

**** END ****

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 2187 (Ramos) - Public contracts: contracts for services

Bill Summary:

AB 2187 exempts federally recognized California Native American tribes from certain requirements governing public contracts for goods and services, as specified.

Fiscal Impact:

• Unknown, potentially significant state procurement cost pressures (General Fund and various special funds). Exempting federally recognized tribes from certain public contracting requirements removes standard oversight by the Department of General Services (DGS). Foregoing this review process could result in unforeseen liability or financial exposure for the state, with the actual fiscal impact depending on the specific scope of each contract.
• DGS does not anticipate any significant administrative costs resulting from the implementation of this bill.

Background:

The Public Contract Code (PCC) establishes uniform contracting procedures designed to safeguard public funds and seeks to promote fairness in public procurement. It serves as the primary legal framework governing contracts between most public entities and their contractors, largely through the imposition of competitive bidding requirements and related restrictions on the acquisition of goods and services.

Existing law generally requires state agencies to solicit at least three bids for each service contract and, with limited exceptions, prohibits a contractor awarded a prime contract from bidding on its component subcontracts. However, current law also provides exemptions from these requirements for certain contracts, including those with other state agencies, local governmental entities, auxiliary organizations of the California State University, and auxiliary organizations of California Community colleges, particularly where such contracts involve the provision of goods, services, or specified consulting services.

Proposed Law:

• Exempts contracts that can only be performed by a federally recognized California Native American tribe from certain advertising and bidding requirements under the law that governs state acquisition of goods and services.
• Exempts contracts with a federally recognized California Native American Tribe from an existing law that requires a state agency offering a public contract to secure at least three competitive bids or proposals for each contract. This exemption parallels an existing exemption for state agency contracts with other public entities.
• Authorizes a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling interagency agreements if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
• Exempts California Native American tribes awarded a consulting services contract for tribal cultural resources from an existing law that prohibits a person or entity that has been awarded a consulting services contract from submitting a bid or being awarded a contract relating to services, goods, supplies or other action that is required or deemed appropriate in the end product of the consulting services contract.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Susan Rubio

Chair

2025 - 2026 Regular

Bill No: Hearing Date: 6/23/2026

SUBJECT:

DIGEST: This bill exempts federally recognized California Native American tribes from certain requirements governing public contracts for goods and services, as specified.

ANALYSIS:

Existing law:

1. Governs state acquisition of goods and services, including establishing advertising and bidding requirements. Exempts certain consulting services contracts from these requirements, including contracts that can only be performed by a public entity, as defined. (Public Contracts Code 10335.5)
2. Requires a state agency to secure at least three competitive bids or proposals for each contract for services. Exempts certain contracts from this requirement, including a contract that is with another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college. Specifies, however, that these contracts shall not be used to circumvent competitive bidding requirements. (Public Contracts Code Section 10340)
3. Prohibits a person, firm, or subsidiary thereof who has been awarded a consulting services contract from submitting a bid, or being awarded a contract for, the provision of services, procurement of goods or supplies, or any other related action which is required, suggested, or otherwise deemed appropriate in the end product in the consulting services contract. Specifies, however, that this prohibition does not apply to any person, firm, or subsidiary thereof who is awarded a subcontract of a consulting services contract which amounts to no more than 10 percent of the total monetary value of the consulting services contract. (Public Contracts Code Section 10365.5.)

This bill:

1. Exempts contracts that can only be performed by a federally recognized California Native American tribe from certain advertising and bidding requirements under the law that governs state acquisition of goods and services.
2. Exempts contracts with a federally recognized California Native American Tribe from an existing law that requires a state agency offering a public contract to secure at least three competitive bids or proposals for each contract. This exemption parallels an existing exemption for state agency contracts with other public entities.
3. Authorizes a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling interagency agreements if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
4. Exempts California Native American tribes awarded a consulting services contract for tribal cultural resources from an existing law that prohibits a person or entity that has been awarded a consulting services contract from submitting a bid or being awarded a contract relating to services, goods, supplies or other action that is required or deemed appropriate in the end product of the consulting services contract.

Background

Author Statement. According to the author’s office, “AB 2187 will help strengthen the state’s relationship with California’s tribes by making it easier for state agencies to work directly with tribal governments and their businesses. Right now, tribes are disproportionally disadvantaged when competing for state contracts. While the federal government already allows direct contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. AB 2187 will address this inequity by ensuring that state contracting with tribal nations and their businesses is recognized as government-to-government negotiation. This change will give tribes access to more contracting opportunities, helping them support their local economies and their people.”

Current Exemptions. The Public Contract Code (PCC) establishes uniform contracting procedures designed to safeguard public funds and seeks to promote fairness in public procurement. It serves as the primary legal framework governing contracts between most public entities and their contractors, largely through the imposition of competitive bidding requirements and related restrictions on the acquisition of goods and services.

Existing law generally requires state agencies to solicit at least three bids for each service contract and, with limited exceptions, prohibits a contractor awarded a prime contract from bidding on its component subcontracts. However, current law also provides exemptions from these requirements for certain contracts – including those with other state agencies, local governmental entities, auxiliary organizations of the California State University, and auxiliary organizations of California Community colleges – particularly where such contracts involve the provision of goods, services, or specified consulting services.

The author’s office argues that current law places tribal governments and tribal- owned businesses at structural disadvantages in competing for state contracts. Tribes are required to navigate the same competitive bidding processes as large private sector companies, despite long-standing economic and historical barriers that have constrained tribal economic development. Because existing law neither recognizes nor accounts for these disparities, tribal-owned businesses frequently lack the capacity to gain entry into the state contracting market. The author’s office argues that this exclusion limits tribal governments’ ability to grow their economies and provide for their communities. Absent a more accessible pathway into state procurement, tribes remain at a material disadvantage relative to private sector counterparts that possess substantially greater institutional capacity and resources.

This bill would extend comparable exemptions to federally recognized California Native American tribes that hold sovereign governmental status. California is home to 109 federally recognized tribes, ranging in membership from a handful to more than 5,000 individuals. Based on U.S. Census figures, in 2022, 1.7 percent of the state population is Native American or approximately 660,600 people.

Prior/Related Legislation

AB 630 (Ramos, Chapter 137, Statutes of 2023) removed requirements in existing law that limit the authority of Department of Transportation to contract with federally recognized Indian tribes and entities they own.

AB 2387 (Pan, Chapter 504, Statutes of 2014) exempts the Commission on Peace Officer Standards and Training (POST) from specified notification requirements when entering into personal services contracts, as specified; and exempts both POST and the Office of Emergency Services from the requirement of obtaining three competitive bids when those contracts are solely for the services of instructors for public safety training.

AB 906 (Pan, Chapter 744, Statutes of 2013) prohibits a state agency from executing a personal services contract for non-cost savings reasons, except in specified sudden and unexpected situations, until it has certified that all employee organizations that perform the type of work being contracted out have been notified and required the Department of General Services to establish the certification of notification process.

SB 1189 (Chesbro, Chapter 274, Statutes of 2004) authorizes the California Department of Transportation to contract with federally recognized Indian tribes for the performance of specified transportation duties.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Twenty-nine Palms Band of Mission Indians (Source)

California Rural Indian Health Board, Inc.

Habematolel Pomo of Upper Lake

Santa Ynez Band of Chumash Indians

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Twenty-nine Palms Band of Mission Indians, “Under the Buy Indian Act, federal agencies such as the Bureau of Indian Affairs and the Bureau of Indian Education are required to prioritize contracting with American Indian and Alaska Native businesses whenever feasible. California, however, does not have a similar system in place, which limits how easily the state can partner with tribes. AB 2187 helps address this gap by allowing state agencies to contract directly with federally recognized tribes and their tribally owned enterprises without going through the full competitive bidding process. This makes it easier for the state and local governments to work with tribes in areas where they have specialized expertise, such as in land management, cultural resource protection, and environmental stewardship.”

ASSEMBLY THIRD READING

ATR Bill Id:AB 2187

Author:(Ramos)

As Introduced Ver:February 19, 2026

Majority vote

SUMMARY

Exempts California Native American tribes from certain requirements governing public contracts for goods and services.

Major Provisions

1. Exempts contracts that can only be performed by a federally recognized California Native American tribe from certain advertising and bidding requirements under the law that governs state acquisition of goods and services.
2. Exempts contracts with a federally recognized California Native American tribe from an existing law that requires a state agency offering a public contract to secure at least three competitive bids or proposals for each contract. This exemption parallels an existing exemption for state agency contracts with other public entities.
3. Authorizes a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling interagency agreements if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
4. Exempts California Native American tribes awarded a consulting services contract for tribal cultural resources from an existing law that prohibits a person or entity that has been awarded a consulting services contract from submitting a bid or being awarded a contract relating to services, goods, supplies or other action that is required or deemed appropriate in the end product of the consulting services contract.

COMMENTS

The Public Contracts Code governs state acquisition of goods and services, most notably by imposing bidding requirements and restrictions. For example, existing law requires a public agency to secure at least three bids for each service contract, and, subject to certain exemptions, it prohibits an entity that is awarded a contract from bidding on constituent subcontracts. However, existing law also makes several exemptions to these requirements, especially and most notably where a public entity contracts with another public entity for goods and services. This bill would effectively provide some of the same exemptions to federally recognized California Native American tribes, which, after all, are sovereign governments in their own right.

According to the author, this will strengthen the state's relationship with California's tribes by making it easier for state agencies to work directly with tribal governments and their businesses. While the federal government already prioritizes contracting with tribes, recognizing the importance of supporting their self-governance, the author maintains that California has no similar policy. This bill addresses this disparity by exempting federally recognized California tribes from bidding requirements similar to the manner in which public agencies are exempted from these requirements. This will make it easier for state agencies to contract with Native California tribes without being subject to the usual bidding requirements.

According to the Author

AB 2187 will help strengthen the state's relationship with California's tribes by making it easier for state agencies to work directly with tribal governments and their businesses. Right now, tribes are disproportionately disadvantaged when competing for state contracts. While the federal government already allows direct contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. AB 2187 will address this inequity by ensuring that state contracting with tribal nations and their businesses is recognized as government‑to‑government negotiation. This change will give tribes access to more contracting opportunities, helping them support their local economies and their people.

Arguments in Support

The Twenty Nine Palms Band of Mission Indians, the bill's sponsor, writes in support:

[The] U.S. Department of the Interior has long recognized the importance of supporting

tribal economic development through procurement opportunities. Under the Buy Indian Act, federal agencies such as the Bureau of Indian Affairs and the Bureau of Indian Education are required to prioritize contracting with American Indian and Alaska Native businesses whenever feasible. California, however, does not have a similar system in place, which limits how easily the state can partner with tribes.

AB 2187 helps address this gap by allowing state agencies to contract directly with federally recognized tribes and their tribally owned enterprises without going through the full competitive bidding process. This makes it easier for the state and local governments to work with tribes in areas where they have specialized expertise, such as in land management, cultural resource protection, and environmental stewardship.

By expanding access to state procurement opportunities, AB 2187 would create new pathways for tribal nations to support their communities and advance long-term self-sufficiency. It would also allow the state to benefit from tribal knowledge in reaching the state's environmental and cultural goals.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee, minor and absorbable costs to the Department of General Services (DGS) to update the State Contracting Manual and related materials with this bill's exemptions for certain state contracts with a tribe.

However, if such exemptions are enacted, DGS would no longer review exempt contracts between a tribe and a state agency. DGS notes that the value of its contract oversight is to ensure a state agency appropriately awards the contract inclusive of statutorily required terms and conditions. DGS notes that the potential fiscal impact of failing to include terms that protect the state from liabilities or other monetary harm can be substantial to the awarding agency. Thus, this bill could result in costs of an unknown, but potentially significant amount, in excess of $150,000, to the state (General Fund (GF) or special fund).

The Legislative Analyst's Office recently warned of GF structural deficits of around $35 billion per year in the 2027-28 fiscal year and ongoing.

VOTES

ASM JUDICIARY: 12-0-0

YES: Kalra, Macedo, Lee, Bryan, Connolly, Dixon, Harabedian, Pacheco, Papan, Sanchez, Stefani, Zbur

ASM GOVERNMENTAL ORGANIZATION: 21-0-1

YES: Blanca Rubio, Davies, Alvarez, Bryan, Carrillo, Dixon, Fong, Gabriel, Gallagher, Gipson, Macedo, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Solache, Soria, Ta, Valencia, Wallis

ABS, ABST OR NV: Berman

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

UPDATED

VERSION: February 19, 2026

CONSULTANT: Tom Clark / JUD. / (916) 319-2334 FN: 0002632

Date of Hearing: May 6, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2187

Author:(Ramos) – As Introduced Ver:February 19, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill exempts a federally recognized California Native American tribe (“tribe”) from certain Public Contracts Code (PCC) requirements.

Specifically, this bill:

1. Expands the existing exemption from PCC advertising and bidding requirements applicable to a consulting services contract that can only be performed by a public entity to additionally apply to a consulting services contract that can only be performed by a tribe.
2. Expands the existing exemption from the PCC requirement to secure three competitive bids applicable to a service contract with another state agency, local government entity, or certain auxiliary organizations of public education institutions to additionally apply to a service contract with a tribe.
3. Allows a tribe to include a subcontract with a subdivision, subsidiary, or business enterprise wholly owned by a tribe for the purpose of fulling an interagency agreement if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
4. Provides that a tribe awarded a consulting services contract for tribal cultural resources purposes is exempt from the existing PCC prohibition on an entity awarded a consulting services contract subsequently bidding on the provision of services, procurement of goods, or other related action resulting from the consulting services contract.

FISCAL EFFECT:

Minor and absorbable costs to the Department of General Services (DGS) to update the State Contracting Manual and related materials with this bill’s exemptions for certain state contracts with a tribe.

However, if such exemptions are enacted, DGS would no longer review exempt contracts between a tribe and a state agency. DGS notes that the value of its contract oversight is to ensure a state agency appropriately awards the contract inclusive of statutorily required terms and conditions. DGS notes that the potential fiscal impact of failing to include terms that protect the state from liabilities or other monetary harm can be substantial to the awarding agency. Thus, this bill could result in costs of an unknown, but potentially significant amount, in excess of $150,000, to the state (General Fund (GF) or special fund).

The Legislative Analyst’s Office recently warned of GF structural deficits of around $35 billion per year in the 2027-28 fiscal year and ongoing.

COMMENTS:

1. Purpose. According to the author:

Right now, tribes are disproportionately disadvantaged when competing for state contracts. While the federal government already allows direct contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. This bill will address this inequity by ensuring that state contracting with tribal nations and their businesses is recognized as government-to-government negotiation. This change will give tribes access to more contracting opportunities, helping them support their local economies and their people.

This bill is supported by various tribal nations and the California Rural Indian Health Board.

1. PCC. The PCC establishes uniform contracting procedures designed to safeguard public funds and promote fairness in public procurement. The PCC regulates the state’s acquisition of goods and services, primarily by imposing competitive bidding requirements and related restrictions. For example, the PCC generally requires a public agency to solicit at least three bids for each service contract and prohibits an entity awarded a prime contract from bidding on subsequent related contracts. However, the PCC also provides certain exemptions from these requirements and prohibitions, notably contracts with other state agencies and local government entities. This bill expands such exemptions to a federally recognized California Native American tribe, which is a sovereign government. This bill also provides a tribe with additional exemptions related to subcontracting with a subsidiary and contracting for subsequent related contracts.
2. Related Legislation. AB 2300 (Arambula) exempts certain grants awarded by the Employment Development Department to local workforce development boards from state contracting requirements. AB 2300 is pending hearing by this committee.
3. Prior Legislation. AB 630 (Ramos), Chapter 137, Statutes of 2023, removed requirements in existing law that limited the authority of the Department of Transportation to contract with a tribe.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 22, 2026

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 2187 (

Author:Ramos) – As Introduced Ver:February 19, 2026

SUBJECT: Public contracts: contracts for services

SUMMARY: This bill would exempt federally recognized California Native American tribes from certain requirements governing public contracts for goods and services, as described. Specifically, this bill:

1) Exempts contracts that can only be performed by a federally recognized California Native American tribe from certain advertising and bidding requirements under the law that governs state acquisition of goods and services.

2) Exempts contracts with a federally recognized California Native American tribe from an existing law that requires a state agency offering a public contract to secure at least three competitive bids or proposals for each contract. This exemption parallels an existing exemption for state agency contracts with other public entities.

3) Authorizes a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling interagency agreements if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.

4) Exempts California Native American tribes awarded a consulting services contract for tribal cultural resources from an existing law that prohibits a person or entity that has been awarded a consulting services contract from submitting a bid or being awarded a contract relating to services, goods, supplies or other action that is required or deemed appropriate in the end product of the consulting services contract.

EXISTING LAW:

1) Governs state acquisition of goods and services, including by establishing advertising and bidding requirements. Exempts certain consulting services contracts from these requirements, including contracts that can only be performed by a public entity, as defined. (Public Contracts Code Section 10335.5 (c).)

2) Requires a state agency to secure at least three competitive bids or proposals for each contract for services. Exempts certain contracts from this requirement, including a contract that is with another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college. Specifies, however, that these contracts shall not be used to circumvent competitive bidding requirements. (Public Contracts Code Section 10340.)

3) Prohibits a person, firm, or subsidiary thereof who has been awarded a consulting services contract from submitting a bid, or being awarded a contract for, the provision of services, procurement of goods or supplies, or any other related action which is required, suggested, or otherwise deemed appropriate in the end product in the consulting services contract. Specifies, however, that this prohibition does not apply to any person, firm, or subsidiary thereof who is awarded a subcontract of a consulting services contract which amounts to no more than 10 percent of the total monetary value of the consulting services contract. (Public Contracts Code Section 10365.5.)

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author, “AB 2187 will help strengthen the state’s relationship with California’s tribes by making it easier for state agencies to work directly with tribal governments and their businesses. Right now, tribes are disproportionately disadvantaged when competing for state contracts. While the federal government already allows direct contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. This bill will address this inequity by ensuring that state contracting with tribal nations and their businesses is recognized as government‑to‑government negotiation. This change will give tribes access to more contracting opportunities, helping them support their local economies and their people.”

Background.

What problem does this bill solve? According to information provided by the author’s office, “This bill seeks to expand the participation of tribal governments and tribal business enterprises in the state’s procurement process by exempting California’s federally recognized tribes from state’s competitive bidding requirements. This will allow tribes to more easily provide services to the state and provide them with new financial opportunities to support their economies. Under this bill, tribes would be added to the existing list of exempt entities, such as state and local agencies, for certain procurement services that are essential to advancing the state’s environmental and policy goals.

Current law makes it difficult for tribal governments and tribally owned businesses to compete for state contracts. Tribes must enter the same competitive bidding process as large private companies, even though many tribal communities face long standing economic challenges that make it harder to compete on equal terms. Because the law does not recognize or consider the economic and historical barriers of tribes, their businesses are often unable to break into the state contracting market. This leaves tribes with fewer opportunities to grow their economies and support their communities. Without a more accessible pathway into state procurement, tribes remain at a significant disadvantage compared to private companies that have far greater capacity and resources.”

California Public Contracts Code. The Public Contract Code (PCC) establishes uniform contracting procedures designed to safeguard public funds and promote fairness in public procurement. It serves as the primary legal framework governing contracts between most public entities and their contractors. The PCC regulates the state’s acquisition of goods and services, largely by imposing competitive bidding requirements and related restrictions.

For instance, existing law generally requires a public agency to solicit at least three bids for each service contract and, with limited exceptions, bars a contractor awarded a prime contract from bidding on its component subcontracts. However, current law also provides exemptions from these requirements. These exemptions apply to certain contracts, including those with other state agencies, local governmental entities, auxiliary organizations of the California State University, and auxiliary organizations of California community colleges—particularly when the contracts involve the provision of goods, services, or specified consulting services.

This bill would extend similar exemptions to federally recognized California Native American tribes, which are sovereign governments. California is home to 109 federally recognized Native American tribes. These sovereign nations range in size from five to over 5,000 members and are located across 34 counties. California has the largest Native American population in the country with more than 700,000 people in the state, according to the United States Census Bureau.

Double referral. This bill was dual referred to the Assembly Committee on Judiciary, which heard and passed this bill (12-0) on April 7, 2026.

In support. The Twenty-Nine Palms Band of Mission Indians writes, “The U.S. Department of the Interior has long recognized the importance of supporting tribal economic development through procurement opportunities. Under the Buy Indian Act, federal agencies such as the Bureau of Indian Affairs and the Bureau of Indian Education are required to prioritize contracting with American Indian and Alaska Native businesses whenever feasible. California, however, does not have a similar system in place, which limits how easily the state can partner with tribes. This bill helps address this gap by allowing state agencies to contract directly with federally recognized tribes and their tribally owned enterprises without going through the full competitive bidding process. This makes it easier for the state and local governments to work with tribes in areas where they have specialized expertise, such as in land management, cultural resource protection, and environmental stewardship. By expanding access to state procurement opportunities, AB 2187 would create new pathways for tribal nations to support their communities and advance long-term self-sufficiency. It would also allow the state to benefit from tribal knowledge in reaching the state's environmental and cultural goals.”

Prior legislation. AB 630 (Ramos), Chapter 137, Statutes of 2023. Removed requirements in existing law that limit the authority Department of Transportation to contract with federally recognized Indian tribes and entities they own.

AB 2387 (Pan), Chapter 504, Statutes of 2014. Exempted the Commission on Peace Officer Standards and Training (POST) from specified notification requirements when entering into personal services contracts, as specified; and exempts both POST and the Office of Emergency Services (OES) from the requirement of obtaining three competitive bids when those contracts are solely for the services of instructors for public safety training.

AB 906 (Pan), Chapter 744, Statutes of 2013. Prohibited a state agency from executing a personal services contract for non-cost savings reasons, except in specified sudden and unexpected situations, until it has certified that all employee organizations that perform the type of work being contracted out have been notified and required the DGS to establish the certification of notification process.

SB 1189 (Chesbro), Chapter 274, Statutes of 2004: Authorized Caltrans to contract with federally recognized Indian tribes for the performance of specified transportation duties.

REGISTERED SUPPORT / OPPOSITION:

Support

California Rural Indian Health Board, INC.
Habematolel Pomo of Upper Lake
Twenty-Nine Palms Band of Mission Indians

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

Date of Hearing: April 7, 2026

ASSEMBLY COMMITTEE ON JUDICIARY

Ash Kalra, Chair

ABPCA Bill Id:AB 2187

Author:(Ramos) – As Introduced Ver:February 19, 2026

PROPOSED CONSENT

SUBJECT: Public contracts: contracts for services

KEY ISSUE: should California native American tribes be exempt from certain requirements governing public contracts for goods and service, similar to exemptions that now apply to contracts between public entities?

SYNOPSIS

The Public Contracts Code governs state acquisition of goods and services, most notably by imposing bidding requirements and restrictions. For example, existing law requires a public agency to secure at least three bids for each service contract, and, subject to certain exemptions, it prohibits an entity that is awarded a contract from bidding on constituent subcontracts. However, existing law also makes several exemptions to these requirements, especially and most notably where a public entity contracts with another public entity for goods and services. This bill would provide similar exemptions to federally recognized California Native American tribes, which, after all, are sovereign governments in their own right.

According to the author, this will strengthen the state’s relationship with California’s tribes by making it easier for state agencies to work directly with tribal governments and their businesses. While the federal government already prioritizes contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. This bill will address this disparity by exempting federally recognized California tribes from bidding requirements similar to the manner in which public agencies are currently exempted from these requirements.

This bill is sponsored by the Twenty-Nine Palms Band of Mission Indians. There is no known opposition to this bill. If the bill passes out of this Committee, it will be referred to the Assembly Committee on Governmental Organization.

SUMMARY: Exempts California Native American tribes from certain requirements governing public contracts for goods and services. Specifically, this bill:

1. Exempts contracts that can only be performed by a federally recognized California Native American tribe from certain advertising and bidding requirements under the law that governs state acquisition of goods and services.
2. Exempts contracts with a federally recognized California Native American tribe from an existing law that requires a state agency offering a public contract to secure at least three competitive bids or proposals for each contract. This exemption parallels an existing exemption for state agency contracts with other public entities.
3. Authorizes a federally recognized California Native American tribe to include a subcontract with any subdivision, subsidiary, or business enterprise wholly owned by a federally recognized California Native American tribe for the purpose of fulfilling interagency agreements if the tribe provides a limited waiver of sovereign immunity and a justification of cost of service to show market equivalence of similar services.
4. Exempts California Native American tribes awarded a consulting services contract for tribal cultural resources from an existing law that prohibits a person or entity that has been awarded a consulting services contract from submitting a bid or being awarded a contract relating to services, goods, supplies or other action that is required or deemed appropriate in the end product of the consulting services contract.

EXISTING LAW:

1. Governs state acquisition of goods and services, including by establishing advertising and bidding requirements. Exempts certain consulting services contracts from these requirements, including contracts that can only be performed by a public entity, as defined. (Public Contracts Code Section 10335.5 (c).)
2. Requires a state agency to secure at least three competitive bids or proposals for each contract for services. Exempts certain contracts from this requirement, including a contract that is with another state agency, a local governmental entity, an auxiliary organization of the California State University, or an auxiliary organization of a California community college. Specifies, however, that these contracts shall not be used to circumvent competitive bidding requirements. (Public Contracts Code Section 10340.)
3. Prohibits a person, firm, or subsidiary thereof who has been awarded a consulting services contract from submitting a bid, or being awarded a contract for, the provision of services, procurement of goods or supplies, or any other related action which is required, suggested, or otherwise deemed appropriate in the end product in the consulting services contract. Specifies, however, that this prohibition does not apply to any person, firm, or subsidiary thereof who is awarded a subcontract of a consulting services contract which amounts to no more than 10 percent of the total monetary value of the consulting services contract. (Public Contracts Code Section 10365.5.)

FISCAL EFFECT: As currently in print this bill is keyed fiscal.

COMMENTS: According to the author, “AB 2187 will help strengthen the state’s relationship with California’s tribes by making it easier for state agencies to work directly with tribal governments and their businesses. Right now, tribes are disproportionately disadvantaged when competing for state contracts. While the federal government already allows direct contracting with tribes, recognizing the importance of supporting their self-governance, California has no similar policy. AB 2187 will address this inequity by ensuring that state contracting with tribal nations and their businesses is recognized as government‑to‑government negotiation. This change will give tribes access to more contracting opportunities, helping them support their local economies and their people.”

The Public Contracts Code governs state acquisition of goods and services, most notably by imposing bidding requirements and restrictions. For example, existing law requires a public agency to secure at least three bids for each service contract, and, subject to certain exemptions, it prohibits an entity that is awarded a contract from bidding on constituent subcontracts. However, existing law also makes several exemptions to these requirements, especially and most notably where a public entity contracts with another public entity for goods and services. This bill would effectively provide some of the same exemptions to federally recognized California Native American tribes, which, after all, are sovereign governments in their own right.

According to the author, this will strengthen the state’s relationship with California’s tribes by making it easier for state agencies to work directly with tribal governments and their businesses. While the federal government already prioritizes contracting with tribes, recognizing the importance of supporting their self-governance, the author maintains that California has no similar policy. This bill will address this disparity by exempting federally recognized California tribes from bidding requirements similar to the manner in which public agencies are exempted from these requirements. This will make it easier for state agencies to contract with Native California tribes without being subject to the usual bidding requirements.

ARGUMENTS IN SUPPORT: The Twenty Nine Palms Band of Mission Indians, the bill’s sponsor, writes in support:

[The] U.S. Department of the Interior has long recognized the importance of supporting

tribal economic development through procurement opportunities. Under the Buy Indian Act, federal agencies such as the Bureau of Indian Affairs and the Bureau of Indian Education are required to prioritize contracting with American Indian and Alaska Native businesses whenever feasible. California, however, does not have a similar system in place, which limits how easily the state can partner with tribes.

AB 2187 helps address this gap by allowing state agencies to contract directly with federally recognized tribes and their tribally owned enterprises without going through the full competitive bidding process. This makes it easier for the state and local governments to work with tribes in areas where they have specialized expertise, such as in land management, cultural resource protection, and environmental stewardship.

By expanding access to state procurement opportunities, AB 2187 would create new pathways for tribal nations to support their communities and advance long-term self-sufficiency. It would also allow the state to benefit from tribal knowledge in reaching the state's environmental and cultural goals.

REGISTERED SUPPORT / OPPOSITION:

Support

Twenty Nine Palms Band of Mission Indians of California (sponsor)

Opposition

None on file

Analysis Prepared by: Tom Clark / JUD. / (916) 319-2334