BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
755 (Negrete-McLeod)
Hearing Date: 5/18/2009 Amended: 5/6/2009
Consultant: Bob Franzoia Policy Vote: Jud 5-0 G O 12-0
_________________________________________________________________
____
BILL SUMMARY: SB 755 would establish a statewide participation
goal of not less than one percent for persons with developmental
disabilities business enterprises (PDDBEs) to participate in
contracts awarded by state agencies for goods and services.
This bill would require, until June 30, 2014, that each state
agency awarding contracts take specified actions to encourage
that participation. The Department of General Services (DGS)
shall adopt regulations and consult with the Department of
Developmental Disabilities (DDS) with respect to implementation
of this bill. This bill would impose civil penalties for the
first and subsequent violations of providing false or fraudulent
information with respect to the qualification of a person with a
PDDBE, and would prohibit the person or entity that made the
false statement from bidding on or participating in state
contracts for specified periods of time.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Contract participation goals Unknown, up to $1,000
annually, or more, General/
for PDDBEs ongoing various
Special
DGS/DDS oversight $220 $650 $650
Special*
* Service Revolving Fund
_________________________________________________________________
____
STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
A PDDEE may be a business concern at least 51 percent owned by
one or more persons with a developmental disability, a business
concern managed by, and the daily business controlled by, one or
more persons with a developmental disability, a community based
non profit organization meeting certain conditions that employs
persons with development disabilities.
The one percent participation goal shall apply to the total
number of contracts granted, let, or awarded each year by the
awarding department.
To the extent that PDDBE bid preference increases the number of
state contracts awarded to other than the low bidder, state
contracting costs will increase. While each individual contract
may not increase markedly, given the thousands of state
contracts awarded annually totaling several billion dollars, the
cost of the bill could easily exceed $1,000,000 annually.
A similar bill, SB 1687 (Negrete-McLeod) 2008 was held on the
Assembly Appropriations Committee Suspense File.