BILL NUMBER: SB 734	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 25, 2011
	AMENDED IN SENATE  APRIL 14, 2011

INTRODUCED BY   Senator Price
    (   Principal coauthor:   Assembly Member
  Galgiani   ) 
    (   Coauthor:  
Assembly Member   Galgiani   )


                        FEBRUARY 18, 2011

   An act to add Section 185034.1 of the Public Utilities Code,
relating to small business.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 734, as amended, Price. High-Speed Rail Authority: 
Small   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 to identify essential
components of, and adopt, a small business program as part of
contracts to be awarded by the authority relative to development and
construction of the high-speed rail system. The bill would require
the authority to provide certain bidding preferences and to establish
a goal methodology to determine the appropriate level of involvement
of small businesses in authority contracts. The bill would require
at least one public hearing by the authority before the program is
adopted and would require the authority to include a plan for
outreach to small businesses.
   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 185034.1 is added to the Public Utilities Code, to
read:
   185034.1.  (a) The authority shall work with the Department of
General Services to identify essential components of, and adopt, a
small business program as part of contracts to be awarded by the
authority relative to the construction of the high-speed rail system.
The program may have separate elements for small businesses,
microbusinesses, and disabled veteran business enterprises, as those
terms are defined in subdivision (e). The program shall include
proper oversight of expenditure of state and federal funds,
contractor compliance monitoring and enforcement efforts, tracking
and reporting mechanisms, and prompt payment, reporting, and project
closeout provisions.
   (b) In developing the small business program, the authority shall
do all of the following:
   (1) Review and consider examples of existing small business
programs used by other public agencies in California.
   (2) Establish a goal methodology to determine the appropriate
level of involvement of small businesses in authority contracts,
based on the likely nature of the work needed to be performed and the
likely ability of the small businesses to do that work.
   (3) Provide three small business preferences, as follows:
   (A) Provide a 5 percent bid preference to a responsible bid
meeting specifications that is submitted by a small business.
   (B) Provide an incentive to nonsmall business bidders that submit
a responsible bid meeting specifications if the bid incorporates the
participation of small businesses in the manner consistent with the
goals set forth in the authority's program established pursuant to
this section. A nonsmall business bidder shall be granted a 5 percent
bid preference for meeting the goals.
   (C) Grant an additional price preference or score of 2.5 percent
of the bid amount to qualified state-certified microbusinesses that
are local to a worksite.
   (4) Establish, if determined to be desirable by the authority, a
prequalified list of contractors for certain types of authority
contracts, including, but not limited to, architectural and
engineering contracts.
   (5) Include a plan for outreach, including information on training
and technical assistance that is available to assist small
businesses in understanding and bidding on contracts to be offered by
the authority. The authority shall specifically conduct a outreach
campaign that contacts certified small businesses listed in the
certification directories of the Department of General Services.
   (c) The authority shall hold at least one public hearing on the
small business goal methodology required by paragraph (2) of
subdivision (b), and on the overall program developed pursuant to
this section. Following the public hearing, the authority shall adopt
the plan at a regularly scheduled meeting of the board. 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 the Legislature may hold
prior to adoption of the plan.
   (d) Upon approval by the authority of the small business program,
its provisions shall be included in the design-build procurement for
Phase 1 and Phase 2 of the high-speed rail program and in the
environmental, architectural, and engineering stage for Phase 2 of
the high-speed rail program.
   (e) As used in this section, the following terms have the
following meanings:
   (1) "Disabled veteran business enterprise" means an enterprise
that has been certified as meeting the qualifications established by
subdivision (g) of Section 999 of the Military and Veterans Code.
   (2) "Microbusiness" means a microbusiness as defined in paragraph
(2) of subdivision (d) of Section 14837 of the Government Code.
   (3) "Small business" means a small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.