Bill Text: CA SB734 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State and local workforce investment boards: funding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2011-10-06 - Chaptered by Secretary of State. Chapter 498, Statutes of 2011. [SB734 Detail]

Download: California-2011-SB734-Amended.html

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BILL NUMBER: SB 734	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 26, 2011
	AMENDED IN SENATE  APRIL 25, 2011
	AMENDED IN SENATE  APRIL 14, 2011

INTRODUCED BY   Senator Price
   (Principal coauthor: Assembly Member Galgiani)

                        FEBRUARY 18, 2011

   An act to add Section 185034.1 of the Public Utilities Code,
relating to small business.


	LEGISLATIVE COUNSEL'S DIGEST

F   SB 734, as amended, Price. High-Speed Rail Authority: small
business program: bidding preferences.
   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 Director of General Services and the directors of other
Fstate agencies in this regard.   Existing law, the California High-Speed Rail Act, creates the
High-Speed Rail Authority to develop and implement a high-speed rail
system in the state, with specified powers and duties. Existing law,
pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act
for the 21st Century, approved by the voters as Proposition 1A at the
November 4, 2008, general election, provides for the issuance of
$9.95 billion in general obligation bonds for high-speed rail and
related purposes.
   This bill would require the authority  to identify
essential components of, and adopt, a small business program as part
of contracts to be awarded by the authority relative to development
and construction of the high-speed rail system. The bill would
require the authority to provide certain bidding preferences and to
establish a goal methodology to determine the appropriate level of
involvement of small businesses in authority contracts. The bill
would require at least one public hearing by the authority before the
program is adopted and would require the authority to include a plan
for outreach to small businesses.   , with the
assistance of the Department of General Services, to prepare a small
business, microbusiness, and disabled veteran business outreach and
retention plan by July 31, 2012, in order to ensure that the
percentage of contracts awarded meets the small business
participation goals established by Executive Order S-02-06. 

   The bill would require the authority to form a small business
advisory committee of at least 9 members at the time the authority
initiates the preparation of the plan. The bill would require the
authority to hold a hearing on the draft plan at least one month
before the board meeting at which the authority intends to act on the
proposed plan. The bill would require that all bidders' conferences
convened by the authority include a presentation of the plan and the
state's small business participation goals. The bill would require an
additional price preference or score of 2.5% of the bid amount to be
Fgranted to qualified state-certified microbusinesses.     The bill would state that the authority shall be subject to the
provisions of the Small Business Procurement and Contract Act. 
F   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
F  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) In order to keep faith with the promise to promote California
jobs following the passage of the Safe, Reliable, High-Speed
Passenger Train Bond Act for the 21st Century, the state should aid,
counsel, assist, and protect, to the maximum extent possible, the
interests of small businesses, including microbusinesses.
   (b) California's microbusinesses are known to bring real diversity
to local economies and the state and deserve a fair share of
contracts awarded for the high-speed rail project. Although
microbusinesses comprise over 80 percent of California's certified
small businesses, and while it was the state's intent to afford
microbusinesses the same opportunities as other small businesses in
competing for state contracts, many microbusiness owners are
disadvantaged when competing against their larger small business
counterparts. Data compiled by the Department of General Services
shows that of the $2.4 billion of contract dollars issued by state
agencies to small businesses and microbusinesses in fiscal year
2008-09, microbusinesses were awarded only 37 percent, or $866
million worth of state contracting. Moreover, of the 103,371
contracts issued during the same timeframe, microbusinesses received
only 42,140, or 41 percent of the contracts issued by the state.
   (c) It is beneficial to the state to promote and facilitate the
fullest possible participation by California workers to train for new
Fjobs and careers in today's global economy.   (d) Therefore, it is essential to ensure that a fair proportion of
the total purchases and contracts or subcontracts for property and
services for California's high-speed rail system be placed with these
Fmicrobusinesses.  SEC. 2.  Section 185034.1 is added to the Public Utilities Code, to
Fread:    185034.1.  (a) The authority shall work with the Department of
General Services to identify essential components of, and adopt, a
small business program as part of contracts to be awarded by the
authority relative to the construction of the high-speed rail system.
The program may have separate elements for small businesses,
microbusinesses, and disabled veteran business enterprises, as those
terms are defined in subdivision (e). The program shall include
proper oversight of expenditure of state and federal funds,
contractor compliance monitoring and enforcement efforts, tracking
and reporting mechanisms, and prompt payment, reporting, and project
closeout provisions.
   (b) In developing the small business program, the authority shall
do all of the following:
   (1) Review and consider examples of existing small business
programs used by other public agencies in California.
   (2) Establish a goal methodology to determine the appropriate
level of involvement of small businesses in authority contracts,
based on the likely nature of the work needed to be performed and the
Flikely ability of the small businesses to do that work.   (3) Provide three small business preferences, as follows:
   (A) Provide a 5 percent bid preference to a responsible bid
meeting specifications that is submitted by a small business.
   (B) Provide an incentive to nonsmall business bidders that submit
a responsible bid meeting specifications if the bid incorporates the
participation of small businesses in the manner consistent with the
goals set forth in the authority's program established pursuant to
this section. A nonsmall business bidder shall be granted a 5 percent
Fbid preference for meeting the goals.   (C) Grant an additional price preference or score of 2.5 percent
of the bid amount to qualified state-certified microbusinesses that
are local to a worksite.
   (4) Establish, if determined to be desirable by the authority, a
prequalified list of contractors for certain types of authority
contracts, including, but not limited to, architectural and
engineering contracts.
   (5) Include a plan for outreach, including information on training
and technical assistance that is available to assist small
businesses in understanding and bidding on contracts to be offered by
the authority. The authority shall specifically conduct a outreach
campaign that contacts certified small businesses listed in the
certification directories of the Department of General Services.
   (c) The authority shall hold at least one public hearing on the
small business goal methodology required by paragraph (2) of
subdivision (b), and on the overall program developed pursuant to
this section. Following the public hearing, the authority shall adopt
the plan at a regularly scheduled meeting of the board. When
adopting the plan, the authority shall take into consideration
comments from the public hearing and written comments that it
receives in that regard, and any hearings the Legislature may hold
prior to adoption of the plan.
   (d) Upon approval by the authority of the small business program,
its provisions shall be included in the design-build procurement for
Phase 1 and Phase 2 of the high-speed rail program and in the
environmental, architectural, and engineering stage for Phase 2 of
the high-speed rail program. 
    185034.1.    (a) The High-Speed Rail Authority, with
the assistance of the Department of General Services, shall prepare
a small business, microbusiness, and disabled veteran business
enterprise outreach and retention plan in order to ensure that the
percentage of contracts awarded for architectural, engineering,
manufacturing, and construction activities meets the small business
participation goal established by Executive Order S-02-06. In
developing the plan, the authority shall consider examples of
existing small business programs used by other public agencies in
California.  
   (b) When preparing the plan, the authority shall be guided by the
provisions of the Small Business Procurement and Contract Act
(Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division
3 of Title 2 of the Government Code).  
   (c) At the time the authority initiates the preparation of the
plan, it shall form a small business advisory committee of at least
nine members, the majority of whom shall be selected from the small
business categories identified in subdivision (h). The initiation of
the planning process shall be by action of the authority.  
   (d) The plan required by this section shall be adopted by July 31,
2012. Prior to the adoption of the plan, the authority shall hold a
hearing on the draft plan at a monthly board meeting held at least
one month before the board meeting at which the authority intends to
act on the proposed plan. Both the draft plan and the adopted plan
shall be posted on the homepage of the authority's Internet Web site.
The authority shall include in all its procurement documents a
summary of the plan and a link to the entire plan on its Internet Web
Fsite and shall implement the outreach strategy.     (e) All bidders' conferences convened by the authority shall
include a presentation of the plan and the state's small business
participation goals. The authority shall request a representative of
the Department of General Services to attend all bidders' conferences
and to answer all questions regarding the Small Business Procurement
Fand Contract Act.     (f) The authority shall be subject to the provisions of the Small
Business Procurement and Contract Act (Chapter 6.5 (commencing with
Section 14835) of Part 5.5 of Division 3 of Title 2 of the Government
Code). All contracting preferences granted by the authority shall be
Fconsistent with Section 14838 of the Government Code.     (g) An additional price preference or score of 2.5 percent of the
bid amount shall be granted to qualified state-certified
microbusinesses.  
   (e) 
    (h)  As used in this section, the following terms have
the following meanings:
   (1) "Disabled veteran business enterprise" means an enterprise
that has been certified as meeting the qualifications established by
subdivision (g) of Section 999 of the Military and Veterans Code.
   (2) "Microbusiness" means a microbusiness as defined in paragraph
(2) of subdivision (d) of Section 14837 of the Government Code.
   (3) "Small business" means a small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.