Bill Text: CA AB1808 | 2019-2020 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Public contracts: goods and services: installation of carpet, resilient flooring, and synthetic turf.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-06-19 - Re-referred to Coms. on GOV. & F. and G.O. [AB1808 Detail]
Download: California-2019-AB1808-Introduced.html
his or her their functions under this chapter. businesses businesses, and designate a small business contracting advocate as a liaison to small business suppliers.
Bill Title: Public contracts: goods and services: installation of carpet, resilient flooring, and synthetic turf.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-06-19 - Re-referred to Coms. on GOV. & F. and G.O. [AB1808 Detail]
Download: California-2019-AB1808-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
| Assembly Bill | No. 1808 |
| Introduced by Committee on Jobs, Economic Development, and the Economy (Assembly Members Cervantes (Chair), Cunningham (Vice Chair), Chau, Chen, Ramos, Luz Rivas, and Smith) |
February 28, 2019 |
An act to amend Sections 7401, 12098.3, 12098.4, and 14846 of, and to add Section 14838.8 to, the Government Code, relating to small businesses.
LEGISLATIVE COUNSEL'S DIGEST
AB 1808, as introduced, Committee on Jobs, Economic Development, and the Economy.
Public contracts: small business participation: small business contracting advocate.
(1) The Small Business Procurement and Contract Act requires the Director of General Services and the heads of other state agencies that enter into contracts for the provision of goods, services, and information technology and for the construction of state facilities to establish goals for the participation of small businesses in these contracts, to provide for small business preferences in the award of these contracts, to give special consideration and special assistance to small businesses, and, whenever possible, to make awards to small businesses, as specified.
This bill would require a state agency to establish and achieve an annual goal that at least 25% of the procurement activities administered by that agency include a small business participant, to ensure that the agency’s procurement
practices are administered in a manner that supports the agency in meeting or exceeding the goal, and to report to the director statistics regarding small business participation in the agency’s procurement activities. The bill would require the Department of General Services to monitor the progress of the agencies toward meeting the goal and to provide this information to the Office of the Small Business Advocate. The bill would also require a state agency that has not achieved the goal by the close of the fiscal year to submit a corrective action plan to the department within 45 days. The bill would require the department, in collaboration with the Office of the Small Business Advocate, to undertake reasonable means to assist agencies in improving small business participation in their contracting.
The bill would define “state agency” to mean all state public entities that receive state public funding, including the California State University, the University of
California, and the California Community Colleges. In calculating the total amount of contracting covered by this bill, the California State University, the University of California, and the California Community Colleges would only be required to meet the 25% goal for state funding used in contracting.
(2) Existing law requires each state agency to consolidate its existing staff functions that relate to contract opportunities for small businesses into a single point of contact for small businesses, and to designate a small business advocate as a liaison to small business suppliers. Existing law requires each state agency that significantly regulates small business or significantly impacts small business to designate at least one individual who shall serve as a small business liaison for the agency. Existing law requires the Director of the Office of Small Business Advocate to, among other duties, maintain, publicize,
and distribute an annual list of persons serving as small business ombudspersons throughout state government.
This bill would change the term “small business advocate” to “small business contracting advocate.” The bill would require the Director of the Office of Small Business Advocate to maintain, publicize, and distribute an annual list of persons serving as small business contracting advocates or small business liaisons throughout state government. The bill would make conforming changes to that effect.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known and may be cited as the Small Business Procurement Goal Act of 2019.SEC. 2.
The Legislature finds and declares all of the following:(a) California’s dominance in many economic areas is based, in part, on the significant role small businesses play in the state’s $2.7 trillion economy.
(b) Two separate studies, one by the United States Census Bureau and another by the Ewing Marion Kauffman Foundation, found that net job growth was strongest among businesses with fewer than 20 employees. California firms represented 12.6 percent of all businesses in the United States in 2015, with 88.3 percent of firms having fewer than 20 employees.
(c) The Small Business Procurement and Contract Act,
administered through the Department of General Services, was implemented more than 40 years ago to establish a small business preference within the state’s procurement process that would increase the number of contracts between the state and small businesses. A 2006 executive order sets a 25 percent goal for small businesses and microbusinesses within state agencies, departments, boards, and commissions.
(d) The Small Business Procurement and Contract Act states that it is the policy of the State of California that the state aid the interests of small businesses in order to preserve free competitive enterprise and to ensure that a fair portion of the total purchases and contracts of the state be placed with these enterprises.
(e) Supporting small business development has shown to be a successful inclusive economic growth strategy advantaging businesses throughout the state,
including historically underserved business groups including minority-, women-, and veteran-owned businesses, and hard-to-serve areas of the state, including low-wealth, rural, and disaster-impacted communities.
(f) In order for the state to fully leverage the economic opportunities represented by supporting small businesses, it is the intent of the Legislature that the Department of General Services, the Office of the Small Business Advocate, and each state agency’s small business contracting advocate actively promote small business certification, help small businesses market their products, goods, and services to the state, and promote the use of technologies and other innovative solutions for notifying small businesses of state contracting opportunities.
SEC. 3.
Section 7401 of the Government Code is amended to read:7401.
(a) The Governor’s Task Force on Diversity and Outreach, in its August 1, 2000, report, concluded that data on minority business participation is not currently available, and that lack of useful data on minority business participation in state contracting is an overarching issue to be addressed.(b) In contracting for and procuring goods, services, information technology, construction, architecture, and engineering consulting, and other consulting services, state and local departments and agencies are authorized to engage in focused outreach activities in addition to general outreach, for purposes of increasing participation by California’s small business sector and increasing diversity in the state’s contracting and procurement activities.
(c) Outreach activities may include, but are not limited to, the following:
(1) Invitations to bid distributed by state and local departments and agencies to state and local small business and trade associations and chambers of commerce, including ethnic chambers of commerce, and other business and professional associations, including professional minority, women, minority-, women-, and disabled veteran-owned businesses and professional groups and associations, as appropriate.
(2) Publication of advertising concerning state and local contracting and procurement opportunities in trade papers and other publications focusing on small
business enterprises, including publications and newspapers in languages other than English and those whose primary readership is minority, women, minority-, women-, or disabled veteran-owned businesses.
(3) Outreach by small business contracting advocates in each state or local government department or agency to state and local small business and trade associations and chambers of commerce, including ethnic chambers of commerce, and other business and professional associations, including professional minority, women,
minority-, women-, and disabled veteran-owned businesses and professional groups and associations, as appropriate.
SEC. 4.
Section 12098.3 of the Government Code is amended to read:12098.3.
(a) The Small Business Advocate shall be appointed by, and shall serve at the pleasure of, the Governor.(b) The Governor shall appoint the employees who are needed to accomplish the purposes of this article.
(c) The duties and functions of the advocate shall include all of the following:
(1) Serve as the principal advocate in the state on behalf of small businesses, including, but not limited to, advisory participation in the consideration of all legislation and administrative regulations that affect small businesses, and advocacy on state policy and programs related to small businesses.
(2) Represent the views and interests of small businesses before other state agencies whose policies and activities may affect small business.
(3) Enlist the cooperation and assistance of public and private agencies, businesses, and other organizations in disseminating information about the programs and services provided by state government that are of benefit to small businesses, and information on how small businesses can participate in, or make use of, those programs and services.
(4) Consult with experts and authorities in the fields of small business investment, venture capital investment, and commercial banking and other comparable financial institutions involved in the financing of business, and with individuals with regulatory, legal, economic, or financial expertise, including members of the academic community,
and individuals who generally represent the public interest.
(5) Seek the assistance and cooperation of all state agencies and departments providing services to, or affecting, small business, including the small business liaison designated pursuant to Section 14846, 11148.5, to ensure coordination of state efforts.
(6) Receive and respond to complaints from small businesses concerning the actions of state agencies and the operative effects of state laws and regulations adversely affecting those businesses.
(7) Counsel small businesses on how to resolve questions and problems concerning the relationship of small business to state
government.
(8) Collaborate with the Office of Small Business and Disabled Veteran Business Enterprise Services in their activities under the Small Business Procurement and Contract Act (Chapter 6.5 (commencing with Section 14835) of Part 5.5), including, but not limited to, promoting small business certification and undertaking reasonable means to assist state agencies in improving small business participation. Among other activities, the advocate shall maintain, publicize, and distribute an annual list of persons serving as a small business ombudsperson liaison, designated pursuant to Section 11148.5, or a small business contracting advocate, designated pursuant to Section
14846, throughout state government.
SEC. 5.
Section 12098.4 of the Government Code is amended to read:12098.4.
(a) Each agency of the state shall furnish to the advocate the reports, documents, and information that are public records and that the advocate deems necessary to carry out(b) The advocate shall prepare and submit a written annual report to the Governor and to the Legislature that describes the activities and recommendations of the office, including an evaluation of the efforts of state agencies and, where appropriate, specific departments, that significantly regulate small businesses to assist minority and other small business
enterprises, and making recommendations that may be appropriate to assist the development and strengthening of minority and other small business enterprises.
(c) (1) The advocate may establish a centralized interactive telephone referral system and Internet Web site internet website to assist small and minority businesses in their operations, including governmental requirements, such as taxation, accounting, and pollution control, and to provide information concerning the agency from which more specialized assistance may be obtained.
(2) The advocate shall post on the GO-Biz Internet Web site
internet website or the advocate’s Internet Web site: internet website:
(A) Information on how to receive assistance in identifying and understanding the state’s regulatory requirements. This information shall include:
(i) The name, telephone number, Internet Web site, internet website, and email of the small business liaison designated pursuant to Section 11148.5 to assist small businesses with understanding and adhering to the regulatory requirements of the state
entities in which they serve.
(ii) The Internet Web site internet website developed and maintained by GO-Biz to identify licensing, permitting, and registration requirements of state agencies, pursuant to the requirements of Section 12097.1
(B) Information on how to receive assistance in certifying as a small business and identifying and participating in state procurement opportunities. This information shall include:
(i) The name, telephone number, Internet Web site,
internet website, and email of the small business contracting advocate designated pursuant to Section 14846 to assist small businesses in contracting with the state entities in which they serve.
(ii) Contact information for the Office of Small Business and Disabled Veteran Business Enterprise Services established pursuant to Section 14839.
(C) Information about emergency preparedness, responses to emergencies, and recovery strategies for small businesses. This information shall be developed and updated in consultation with relevant state agencies and emergency responders.
(D) A link to the Energy Upgrade California Internet Web site
internet website to assist small business owners in accessing information on the availability of various programs promoting the efficient use of energy.
(E) Information on programs administered through the statewide network of small business financial development corporations. Programs covered shall include loan guarantees, direct lending, surety bond guarantees, and disaster loans. Information shall be presented in a manner appropriate to address the needs of both small businesses and existing and potential financial institutions and financial companies.
(F) Information on how to identify and access services provided through the statewide network of small business technical assistance centers, including, but not limited to, small business development centers, women business centers, veteran business outreach centers, procurement technical
assistance centers, and the Manufacturing Extension Partnership.
SEC. 6.
Section 14838.8 is added to the Government Code, to read:14838.8.
(a) In order to encourage small business participation in state contracts, a state agency shall establish and achieve an annual goal that at least 25 percent of the procurement activities administered by that agency include a small business participant. Nothing in this chapter prohibits an agency from setting a higher small business participation goal when complying with the requirements of subdivision (b) of Section 14838.(b) In carrying out the purposes of this chapter, the head of a state agency shall ensure that the agency’s procurement practices are administered in a manner that supports the agency in meeting or exceeding the 25-percent small business participation goal, and shall report to the director statistics regarding small business
annual participation in that agency’s procurement activities.
(c) Consistent with the requirements of subdivision (g) of Section 14845, the department shall monitor the progress of a state agency toward meeting the 25-percent small business participation goal. The department shall regularly share information with the Office of the Small Business Advocate on the progress of each individual agency, department, board, and commission in meeting the annual goal, including, but not limited to, providing copies of corrective action plans.
(d) (1) A state agency that has not achieved the 25-percent small business participation goal by the close of the fiscal year shall submit a corrective action plan to the department within 45 days.
(2) The department, in collaboration with the Office of the Small Business Advocate, shall undertake reasonable means to assist agencies in improving small business participation in their contracting, including entering into memoranda of understanding with the agencies that have not met the goal to improve performance.
(e) For purposes of this section, “state agency” means all state agencies, departments, boards, commissions, and other state public entities that receive state funding, including the University of California, the California State University, and the California Community Colleges. In calculating the total amount of contracting covered by this section, the University of California, the California State University, and the California Community Colleges shall only be required to meet the 25-percent goal for state funding used in contracting.
SEC. 7.
Section 14846 of the Government Code is amended to read:14846.
(a) (1) Using existing resources, each state agency shall consolidate its existing staff functions that relate to contract opportunities for small business into a single point of contact for small(2) Each small business
contracting advocate shall, at a minimum, provide for both of the following:
(A) Make information regarding pending solicitations available to, and consider offers from, California small business suppliers capable of meeting the state’s business need, and who have registered with the state for this purpose.
(B) Ensure that payments due on a contract with a small business are made promptly, as provided for in Section 926.15 or 927, whichever applies. 927.
(3) This subdivision shall not apply to state agencies whose contracting expenditures total less than one hundred thousand dollars
($100,000) annually.
(b) Prior to placing orders under the California multiple awards schedule program, state agencies shall first consider offers from small businesses that have established multiple award schedules whenever practicable.
(c) State agencies shall identify and implement innovative acquisition operating processes, including payment processes, and strategies for small business participation. To maximize the benefits, state agencies shall actively share information about these innovative processes with other state agencies.
(d) State agencies shall prepare solicitations, and any related bid submission requirements, in a manner consistent with the scope, complexity, and anticipated cost of the acquisition. Where
If appropriate, state agencies shall provide bidders with simplified and streamlined tools and methods for responding to solicitations that allow bidders to efficiently, expeditiously, and cost-effectively respond to the contracting opportunity.
