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 ASSEMBLY  AUGUST 15, 2011
	AMENDED IN ASSEMBLY  JUNE 27, 2011
	AMENDED IN SENATE  MAY 31, 2011
	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)
   (Coauthor: Senator Alquist)
   (Coauthors: Assembly Members Buchanan, Furutani, Bonnie Lowenthal,
and Solorio)

                        FEBRUARY 18, 2011

   An act to amend Section 14838.1 of, and to add Section 14838.6 to,
the Government Code, and to amend Section 185033 of the Public
Utilities Code, relating to small business.


	LEGISLATIVE COUNSEL'S DIGEST


   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
state 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, 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   authority annually
 meets the small business participation goals established by
Executive Order S-02-06.
   This 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 granted to qualified
state-certified microbusinesses.
   The bill would provide that contracts financed by the authority
with bond proceeds from the Safe, Reliable High-Speed Passenger Train
Bond Act for the 21st Century shall be subject to the provisions of
the Small Business Procurement and Contract Act.
   Existing law requires the authority to prepare, publish, adopt,
and submit to the Legislature a business plan containing specified
elements beginning January 1, 2012, and every 2 years thereafter.
   This bill would require the authority to include in that business
plan or in an addendum a strategy for ensuring the participation of
California-certified small businesses in contracts awarded by the
authority with state  funds,  or  eligible  federal
funds during all phases of the project. The bill would also require
the authority to adopt, by July 31, 2012, a small business,
microbusiness, and disabled veteran business enterprise outreach and
retention plan.
   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) 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
jobs 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
microbusinesses.
  SEC. 2.  Section 14838.1 of the Government Code is amended to read:

   14838.1.  (a) In order to encourage the participation of small
businesses in the construction, alteration, demolition, repair, or
improvement, of the state's infrastructure, as provided in the
infrastructure-related bond acts of 2006 and 2008, as described in
subdivision (c), each state agency awarding contracts financed with
the proceeds of these bonds shall do all of the following:
   (1) Establish a 25 percent small business participation goal in
all contracts it financed with the proceeds of the
infrastructure-related bond acts of 2006 and 2008.
   (2) Advertise, in the California State Contracts Register, all
upcoming opportunities to bid on contracts for projects funded by the
infrastructure-related bond acts of 2006 and 2008, described in
subdivision (c), and include in the advertisement an Internet link to
information for prospective bidders, including, but not limited to,
general bidding procedures and how to properly prepare a bid for
those contracts.
   (3) Provide information to California small businesses regarding
training and technical assistance that is available to assist these
small businesses in understanding and bidding on contracts for
projects funded by the infrastructure-related bond acts of 2006 and
2008, described in subdivision (c).
   (b) For purposes of this section, "small business" has the same
meaning as set forth in subdivision (d) in Section 14837.
   (c) For purposes of this section, all of the following measures
are deemed to be the infrastructure-related bond acts of 2006 and
2008:
   (1) The Highway Safety, Traffic Reduction, Air Quality, and Port
Security Bond Act of 2006 (Chapter 12.49 (commencing with Section
8879.20) of Division 1 of the Government Code).
   (2) The Housing and Emergency Shelter Trust Fund Act of 2006 (Part
12 (commencing with Section 53540) of Division 31 of the Health and
Safety Code).
   (3) The Kindergarten-University Public Education Facilities Bond
Act of 2006 (Part 69 (commencing with Section 101000) of the
Education Code).
   (4) The Disaster Preparedness and Flood Prevention Bond Act of
2006 (Chapter 1.699 (commencing with Section 5096.800) of Division 5
of the Public Resources Code).
   (5) The Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006 (Division 43
(commencing with Section 75001) of the Public Resources Code).
   (6) The Safe, Reliable High-Speed Passenger Train Bond Act for the
21st Century (Chapter 20 (commencing with Section 2704) of Division
3 of the Streets and Highways Code).
   (d) For the purposes of this section, "state agency" includes each
agency provided for in Section 12800 and each state entity included
in Section 10335.7 of the Public Contract Code in which the head of
the agency is appointed by the Governor. For the purposes of this
section, "state agency" also includes the High-Speed Rail Authority.
   (e) This section does not require the expenditure of the proceeds
of the sale of the bonds described in this section, except as
permitted by the measure authorizing the issuance of the bond.
   (f) On or before August 1, 2009, and annually thereafter, each
state agency that has awarded any contract financed with the proceeds
of the infrastructure-related bond acts of 2006 and 2008 in the
previous fiscal year shall report to the Director of General Services
statistics comparing the small business and microbusiness
participation dollars for contracts funded by these bonds to the
total contract dollars for contracts funded by these bonds. If an
agency did not meet its participation goal, then the agency shall
include in its report a plan of action to meet its participation goal
during the current fiscal year.
  SEC. 3.  Section 14838.6 is added to the Government Code, to read:
   14838.6.  (a) The High-Speed Rail Authority, with the assistance
of the department, 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
  authority   annually  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  and   the United States  .
   (b) 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
site and shall implement the outreach strategy.
   (c) 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 to attend all bidders' conferences and to answer all
questions regarding this chapter.
   (d) In addition to the preferences otherwise required by this
chapter, the authority shall grant an additional price preference or
score of 2.5 percent of the bid amount to qualified state-certified
microbusinesses.
  SEC. 4.  Section 185033 of the Public Utilities Code is amended to
read:
   185033.  (a) The authority shall prepare, publish, adopt, and
submit to the Legislature, not later than January 1, 2012, and every
two years thereafter, a business plan. At least 60 days prior to the
publication of the plan, the authority shall publish a draft business
plan for public review and comment. The draft plan shall also be
submitted to the Senate Committee on Transportation and Housing, the
Assembly Committee on Transportation, the Senate Committee on Budget
and Fiscal Review, and the Assembly Committee on Budget. The business
plan shall identify all of the following: the type of service the
authority anticipates it will develop, such as local, express,
commuter, regional, or interregional; a description of the primary
benefits the system will provide; a forecast of the anticipated
patronage, operating and maintenance costs, and capital costs for the
system; an estimate and description of the total anticipated
federal, state, local, and other funds the authority intends to
access to fund the construction and operation of the system; and the
proposed chronology for the construction of the eligible corridors of
the statewide high-speed train system. The business plan shall also
include a discussion of all reasonably foreseeable risks the project
may encounter, including, but not limited to, risks associated with
the project's finances, patronage, right-of-way acquisition,
environmental clearances, construction, equipment, and technology,
and other risks associated with the project's development. The plan
shall describe the authority's strategies, processes, or other
actions it intends to utilize to manage those risks.
   (b) (1) In addition to the requirements of subdivision (a), the
business plan shall include, but need not be limited to, all of the
following elements:
   (A) Using the most recent patronage forecast for the system,
develop a forecast of the expected patronage and service levels for
the Phase 1 corridor as identified in paragraph (2) of subdivision
(b) of Section 2704.04 of the Streets and Highways Code and by each
segment or combination of segments for which a project level
environmental analysis is being prepared for Phase 1. The forecast
shall assume a high, medium, and low level of patronage and a
realistic operating planning scenario for each level of service.
Alternative fare structures shall be considered when determining the
level of patronage.
   (B) Based on the patronage forecast in subparagraph (A), develop
alternative financial pro formas for the different levels of service,
and identify the operating break-even points for each alternative.
Each pro forma shall assume the terms of subparagraph (J) of
paragraph (2) of subdivision (c) of Section 2704.08 of the Streets
and Highways Code.
   (C) Identify the expected schedule for completing environmental
review, and initiating and completing construction for each segment
of Phase 1.
   (D) Identify the source of federal, state, and local funds
available for the project that will augment funds from the bond act
and the level of confidence for obtaining each type of funding.
   (E) Identify written agreements with public or private entities to
fund components of the high-speed rail system, including stations
and terminals, any impediments to the completion of the system, such
as the inability to gain access to existing railroad rights-of-way.
   (F) Identify alternative public-private development strategies for
the implementation of Phase 1.
   (2) To the extent feasible, the business plan should draw upon
information and material developed according to other requirements,
including, but not limited to, the preappropriation review process
and the preexpenditure review process in the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century pursuant to
Section 2704.08 of the Streets and Highways Code. The authority shall
hold at least one public hearing on the business plan and shall
adopt the plan at a regularly scheduled meeting. 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 that the Legislature may hold prior to adoption of
the plan.
   (c) In the business plan to be submitted on January 1, 2012, or as
an addendum to that plan to be submitted on March 1, 2012, the
authority shall include a strategy for ensuring the participation of
California-certified small businesses in contracts awarded by the
authority with state  or   funds, or eligible
 federal funds  ,  during all phases of the project.