BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 759
                                                                  Page  1

          Date of Hearing:   April 28, 2009

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                      AB 759 (Ma) - As Amended:  April 14, 2009
           
          SUBJECT  :   Public contracts:  Department of General Services:   
          reporting. 

           SUMMARY  :   Includes architectural, engineering, and information  
          technology (IT) in existing reporting requirements on the  
          participation levels of businesses that include the owner's  
          race, ethnicity, and gender in state contracts.

           EXISTING LAW  :  Requires the Department of General Services (DGS)  
          to report the participation levels of disabled veteran business  
          enterprises (DVBEs) and businesses that include the owner's  
          race, ethnicity, and gender, in specified state contracts. 
           
          FISCAL EFFECT  :   Unknown 

           COMMENTS  :   


           Purpose of the bill  .  According to the author's office, this  
          bill allows the state to better assess the participation rate  
          and goals of women or minority-owned businesses in statewide  
          contracting.  The author's office states, "AB 759 will provide  
          the legislature and the public with greater information about  
          the types of contractors receiving contracts from the state?  
          Currently the DGS must only report on voluntary information as  
          it pertains to contracts provided to minority- and women-owned  
          businesses for the following types of contracts:  construction,  
          purchases of materials, supplies, or equipment, and professional  
          services.  This bill expands these reporting requirements to  
          (include) architectural, engineering, and other professional  
          services and IT procurements (and) require(s) the DGS to report  
          the dollar value of the contracts awarded in these instances." 

           
          Background  .  The Small Business Act, administered through DGS,  
          was established 30 years ago to grant a small business  
          preference within the state's procurement process.  In 1989, a  
          DVBE component was added to state procurement practices.   
          Current law requires DGS to report the participation levels of  








                                                                  AB 759
                                                                  Page  2

          DVBEs and businesses that include the owner's race, ethnicity,  
          and gender information in statewide contracts. 

          Currently, DGS is required to report the participation levels of  
          DVBEs in the following state contracts:  construction, IT,  
          architectural, engineering, other professional services, and the  
          procurement of materials, supplies, and equipment.  In addition,  
          DGS must report the participation levels of businesses that  
          include the owner's race, ethnicity, and gender in the following  
          state contracts:  construction, professional services, and  
          purchases of materials, supplies or equipment.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file. 

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B. & P. / (916) 319-3301