BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
755 (Negrete-McLeod)
Hearing Date: 5/28/2009 Amended: 5/21/2009
Consultant: Bob Franzoia Policy Vote: Jud 5-0 G O 12-0
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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.
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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 $50 $50 $50
Special*
* Service Revolving Fund
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STAFF COMMENTS: 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.
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 may exceed $1,000,000 annually. The one
percent participation goal shall apply to the total number of
contracts granted, let, or awarded each year by the awarding
department. While not an absolute requirement, achieving that
goal, which appears to be the purpose of the legislation, would
have a fiscal impact.
As amended on 5/21/2009, this bill would:
- Revise the definition of a community rehabilitation program
for the purposes of this bill to mean a certified, vendored, or
accredited program, as defined.
- Require the workforce of a public or private nonprofit
corporation to be employees of the corporation.
- Delete the prohibition against directors of the corporation
who are also employees of the corporation from participating in
or being present at discussions of the board of directors
regarding labor management contract negotiations.
- Require DGS to designate a nonprofit corporation to coordinate
purchases of materials and supplies manufactured and services
between a state agency, city or county, political subdivision,
or district of the state and these public and private nonprofit
California corporations operating community rehabilitation
programs serving persons with disabilities.
- Require that the non profit shall not be organized or operated
for the benefit of private interests, such as the creator or the
creator's family, shareholders of the organization, other
designated individuals, or persons controlled directly or
indirectly by these private interests.
A similar bill, SB 1687 (Negrete-McLeod) 2008 was held on the
Assembly Appropriations Committee Suspense File.