BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 759
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 759 (Ma)
          As Amended  April 14, 2009
          Majority vote 

           BUSINESS & PROFESSIONS    7-4   APPROPRIATIONS      11-5        
           
           ------------------------------------------------------------------ 
          |Ayes:|Hayashi, Eng, Hernandez,  |Ayes:|De Leon, Ammiano, Charles  |
          |     |Nava,                     |     |Calderon, Davis,           |
          |     |John A. Perez, Price,     |     |Krekorian, Hall, John A.   |
          |     |Ruskin                    |     |Perez, Price, Skinner,     |
          |     |                          |     |Solorio, Torlakson         |
          |     |                          |     |                           |
          |-----+--------------------------+-----+---------------------------|
          |Nays:|Emmerson, Conway, Niello, |Nays:|Nielsen, Duvall, Harkey,   |
          |     |Smyth                     |     |Miller,                    |
          |     |                          |     |Audra Strickland           |
          |     |                          |     |                           |
           ------------------------------------------------------------------ 

           SUMMARY  :   Includes architectural, engineering, and information  
          technology (IT) contracts 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  :  According to the Assembly Appropriations Committee  
          analysis, minor annual special fund costs (around $30,000) to DGS  
          for the additional reporting requirements.

           COMMENTS  :  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  







                                                                  AB 759
                                                                  Page  2


          expands these reporting requirements to [include] architectural,  
          engineering, other professional services and IT procurements [and]  
          require[s] the DGS to report the dollar value of the contracts  
          awarded in these instances." 
           
           The Small Business Act 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.  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.  This bill  
          includes architectural, engineering, and IT contracts within these  
          provisions.


           Analysis Prepared by  :    Joanna Gin / B. & P. / (916) 319-3301 

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