Bill Text: CA AB550 | 2013-2014 | Regular Session | Amended


Bill Title: State government: Office of Small Business and Disabled

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB550 Detail]

Download: California-2013-AB550-Amended.html
BILL NUMBER: AB 550	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2013
	AMENDED IN ASSEMBLY  MARCH 14, 2013

INTRODUCED BY   Assembly Member Brown
    (   Coauthors:   Assembly Members 
 Fox   and Medina   ) 

                        FEBRUARY 20, 2013

   An act to amend  Sections 14838.5 and  
Section  14841 of, and to add Section 14838.6 to, the Government
Code, relating to state government.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 550, as amended, Brown. State government: Office of Small
Business and Disabled Veteran Business Enterprise Services.
   Existing law provides for various programs to encourage the
participation of small businesses, as certified by the Department of
General Services, in state agency contracts, and sets forth the
duties of the Office of Small Business and Disabled Veteran Business
Enterprise Services in this regard.
   This bill would require the head of a state agency to 
promote the use of small businesses in state contracting activity and
take every reasonable means to  ensure that a state
contracting program is administered in a manner that promotes small
business participation. This bill would require the head of a state
agency  to annually review small business participation levels
and  to develop a plan for increasing small business
participation levels within 60 days when participation levels are
low.
   This bill would require the Department of General Services 
and the Office of the Small Business Advocate  to 
examine   serve as a resource to assist the heads of
state agencies in identifying  best practices for utilization of
small businesses in their contracting programs  and to
present findings and recommendations to the Legislature detailing
changes to the state's business practices that will provide
businesses with greater contracting opportunities within the State of
California, as specified  .
   This bill would encourage independent state entities, as
specified, to take all necessary actions to comply with the intent
and the requirements of this bill.
   This bill would require a state agency to  aggressively
  proactively  pursue an annual 25% small business
participation level in state contracting and, for an agency that does
not achieve this level, to submit to the Governor's office  ,
the Office of the Small Business Advocate,  and the Legislature
 an explanation for why the level   ,  
within 60 days of the close of the calendar year, notice that the
small business participation  was not achieved and a plan for
improving small business contracting. This bill would require the
Department of General Services  , and authorize the Office of the
Small Business Advocate,  to provide guidance to state agencies
in developing a plan for, and taking the necessary actions toward,
achieving the 25% participation level. 
    Existing law allows a state agency to award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than $5,000, but less than $250,000, to a
certified small business, including a microbusiness, or to a
disabled veteran business enterprise, as long as the agency obtains
price quotations from 2 or more certified small businesses, including
microbusinesses, or from 2 or more disabled veterans business
enterprises.  
   This bill would increase the $250,000 amount to $500,000.

   This bill would not require an action that would result in the
violation of a court order or a loss of eligibility for federal
funding.
   This bill would also make findings and declarations regarding
small business participation in state contracting.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California spends billions of dollars each year on goods,
information technology, services, construction, and public works
contracts.
   (b) California small businesses comprise nearly 98 percent of all
businesses in the state, employing more than 50 percent of California'
s workforce, and generating more than one-half of the state's gross
domestic product.
   (c) Small businesses are the principal source of new jobs in
California's economy and are instrumental to the health of California'
s economy.
   (d) California should lead the nation in creating an optimum
environment that affords all businesses equal access to state agency
contracting opportunities, thereby enhancing and encouraging
competition and preserving the free enterprise system.
   (e) Disabled veterans have made incomparable sacrifices while
serving and protecting our country and most disabled veteran business
enterprises are also certified California small businesses.
   (f) Enhancing opportunities for small business to participate in
the state contracting process is "good business" for California.

  SEC. 2.    Section 14838.5 of the Government Code
is amended to read:
   14838.5.  (a) Notwithstanding the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this part and Chapter 2 (commencing with Section 10290) and Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, a state agency may award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than five thousand dollars ($5,000), but
less than five hundred thousand dollars ($500,000), to a certified
small business, including a microbusiness, or to a disabled veteran
business enterprise, as long as the agency obtains price quotations
from two or more certified small businesses, including
microbusinesses, or from two or more disabled veterans business
enterprises.
   (b) In carrying out subdivision (a), a state agency shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled veteran
business enterprise.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the acquisition of goods, services, or
information technology, or a greater amount as administratively
established by the director, a state agency shall obtain at least two
price quotations from responsible suppliers whenever there is reason
to believe a response from a single source is not a fair and
reasonable price. 
   SEC. 3.   SEC. 2.   Section 14838.6 is
added to the Government Code, to read:
   14838.6.  (a) The head of a state agency shall  promote
the use of small business in state contracting activities and take
every reasonable means to  ensure that a state contracting
program is administered in a manner that promotes small business
participation. The head of a state agency shall review small business
participation levels within the agency  on an annual basis 
and develop a plan for increasing small business participation
levels within 60 days when participation levels are low.
   (b) The Department of General Services  and the Office of the
Small Business Advocate  shall  research and examine
  serve as a resource to assist the heads of state
agencies in identifying  the best practices of both the public
and private sectors in the utilization of small businesses in their
contracting practices and programs.  The Department of
General Services shall prepare and present findings and
recommendations to the Legislature detailing changes to the state's
business practices that will provide businesses with greater
contracting opportunities within the State of California. 
   (c) State constitutional officers, the University of California,
the California State University, the Lottery Commission, the Public
Employees' Retirement System, that State Teachers' Retirement System,
the State Compensation Insurance Fund, and other independent state
entities are encouraged to take all necessary actions to comply with
the intent and the requirements of the act adding this section.
   (d) This section shall not be construed to require an action that
would result in the violation of a court order or a loss of
eligibility for federal funding.
   SEC. 4.   SEC. 3.   Section 14841 of the
Government Code is amended to read:
   14841.  (a) Upon completion of a public contract for which a
commitment to achieve small business or disabled veteran business
enterprise participation goals was made, the contractor shall report
to the awarding department the actual percentage of small business
and disabled veteran business enterprise participation that was
achieved.
   (b) A state agency shall aggressively  
proactively  pursue an annual 25 percent small business
participation level in state contracting. A state agency that does
not achieve a 25 percent level shall  submit  
give  to the Governor's office  , the Office of the Small
Business Advocate,  and the Legislature  an explanation
for why the   , within 60 days of the close of the
calendar year, notice that the small business participation 
level was not  achieved. The explanation shall include
  achieved and shall submit  a plan for improving
contracting opportunities for small businesses. The Department of
General Services shall  , and the Office of the Small Business
Advocate may,  provide guidance to state agencies in developing
a plan for and taking the necessary actions towards achieving the 25
percent participation level. This subdivision shall not be construed
to require an action that would result in the violation of a court
order or a loss of eligibility for federal funding.
      
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