BILL NUMBER: AB 172	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Weber

                        JANUARY 24, 2013

   An act to amend Section 14838 of the Government Code, relating to
public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 172, as introduced, Weber. State agency contracts:
microbusiness preference.
   Existing law, the Small Business Procurement and Contract Act,
provides for various programs to encourage the participation of small
businesses, as certified by the Department of General Services, in
state agency contracts, including a microbusiness and a disabled
veteran business enterprise. Existing law requires directors of state
agencies, in awarding prescribed contracts, to provide a 5%
preference to small businesses and microbusinesses, and a preference
of up to 5% to a nonsmall business that provides for small business
or microbusiness subcontractor participation, not to exceed
prescribed amounts.
   This bill would raise the microbusiness preference to 7% and would
raise the preference for a nonsmall business with microbusiness
subcontractor participation to a maximum of 7%.
   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.  Section 14838 of the Government Code is amended to
read:
   14838.  In order to facilitate the participation of small
business, including microbusiness, in the provision of goods,
information technology, and services to the state, and in the
construction (including alteration, demolition, repair, or
improvement) of state facilities, the directors of the department and
other state agencies that enter those contracts, each within their
respective areas of responsibility, shall do all of the following:
   (a) Establish goals, consistent with those established by the
Office of Small Business Certification and Resources, for the extent
of participation of small businesses, including microbusinesses, in
the provision of goods, information technology, and services to the
state, and in the construction of state facilities.
   (b) Provide for small business preference, or nonsmall business
preference for bidders that provide for small business and
microbusiness subcontractor participation, in the award of contracts
for goods, information technology, services, and construction, as
follows:
   (1) In solicitations where an award is to be made to the lowest
responsible bidder meeting specifications, the preference to small
business  and microbusiness  shall be 5 percent 
, and the preference to microbusiness shall be 7 percent,  of
the lowest responsible bidder meeting specifications. The preference
to nonsmall business bidders that provide for small business 
or microbusiness  subcontractor participation shall
 be,   be  up to a maximum of 5 percent of
the lowest responsible bidder meeting specifications,  and the
preference for nonsmall business bidders that provide for
microbusiness subcontractor   participation shall be up to a
maximum o   f 7 percent of the lowest responsible bidder
meeting specifications,  determined according to rules and
regulations established by the Department of General Services.
   (2) In solicitations where an award is to be made to the highest
scored bidder based on evaluation factors in addition to price, the
preference to small business  or microbusiness 
shall be 5 percent  , and the preference to microbusiness shall
be 7 percent,  of the highest responsible bidder's total score.
The preference to nonsmall business bidders that provide for small
business  or microbusiness  subcontractor
participation shall be up to a maximum 5 percent of the highest
responsible bidder's total score,  and the preference to nonsmall
business bidders that provide for microbusiness subcontractor
participation shall be up to a maximum of 7 percent of the highest
responsible bidder's total score  determined according to rules
and regulations established by the Department of General Services.
   (3) The preferences under paragraphs (1) and (2) shall not be
awarded to a noncompliant bidder and shall not be used to achieve any
applicable minimum requirements.
   (4) The preference under paragraph (1) shall not exceed fifty
thousand dollars ($50,000) for any bid, and the combined cost of
preferences granted pursuant to paragraph (1) and any other provision
of law shall not exceed one hundred thousand dollars ($100,000). In
bids in which the state has reserved the right to make multiple
awards, this fifty thousand dollar ($50,000) maximum preference cost
shall be applied, to the extent possible, so as to maximize the
dollar participation of small businesses, including microbusinesses,
in the contract award.
   (c) Give special consideration to small businesses and
microbusinesses by both:
   (1) Reducing the experience required.
   (2) Reducing the level of inventory normally required.
   (d) Give special assistance to small businesses and
microbusinesses in the preparation and submission of the information
requested in Section 14310.
   (e) Under the authorization granted in Section 10163 of the Public
Contract Code, make awards, whenever feasible, to small business and
microbusiness bidders for each project bid upon within their
prequalification rating. This may be accomplished by dividing major
projects into subprojects so as to allow a small business or
microbusiness contractor to qualify to bid on these subprojects.
   (f) Small business and microbusiness bidders qualified in
accordance with this chapter shall have precedence over nonsmall
business bidders in that the application of a bidder preference for
which nonsmall business bidders may be eligible under this section or
any other provision of law shall not result in the denial of the
award to a small business or microbusiness bidder. In the event of a
precise tie between the low responsible bid of a bidder meeting
specifications of a small business or microbusiness, and the low
responsible bid of a bidder meeting the specifications of a disabled
veteran-owned small business or microbusiness, the contract shall be
awarded to the disabled veteran-owned small business or
microbusiness. This provision applies if the small business or
microbusiness bidder is the lowest responsible bidder, as well as if
the small business or microbusiness bidder is eligible for award as
the result of application of the small business and microbusiness
bidder preference granted by subdivision (b).