BILL NUMBER: AB 550	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 14, 2013

INTRODUCED BY   Assembly Member Brown

                        FEBRUARY 20, 2013

   An act to amend  Section 14839   Sections
14838.5 and 14841  of  , and to add Section 14838.6 to,
 the Government Code, relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 550, as amended, Brown. State government: Office of Small
Business and Disabled Veteran Business Enterprise Services.
   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 Office of Small Business and Disabled Veteran Business
Enterprise Services in this regard. 
   This bill would make a technical, nonsubstantive change to this
provision.  
   This bill would require the head of a state agency to promote the
use of small businesses in state contracting activity and take every
reasonable means to ensure that a state contracting program is
administered in a manner that promotes small business participation.
This bill would require the head of a state agency to develop a plan
for increasing small business participation levels within 60 days
when participation levels are low.  
   This bill would require the Department of General Services to
examine best practices for utilization of small businesses in their
contracting programs and to present findings and recommendations to
the Legislature detailing changes to the state's business practices
that will provide businesses with greater contracting opportunities
within the State of California, as specified.  
   This bill would encourage independent state entities, as
specified, to take all necessary actions to comply with the intent
and the requirements of this bill.  
   This bill would require a state agency to aggressively pursue an
annual 25% small business participation level in state contracting
and, for an agency that does not achieve this level, to submit to the
Governor's office and the Legislature an explanation for why the
level was not achieved and a plan for improving small business
contracting. This bill would require the Department of General
Services to provide guidance to state agencies in developing a plan
for, and taking the necessary actions toward, achieving the 25%
participation level.  
    Existing law allows a state agency to award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than $5,000, but less than $250,000, to a
certified small business, including a microbusiness, or to a
disabled veteran business enterprise, as long as the agency obtains
price quotations from 2 or more certified small businesses, including
microbusinesses, or from 2 or more disabled veterans business
enterprises.  
   This bill would increase the $250,000 amount to $500,000. 

   This bill would not require an action that would result in the
violation of a court order or a loss of eligibility for federal
funding.  
   This bill would also make findings and declarations regarding
small business participation in state contracting. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  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) California spends billions of dollars each year on goods,
information technology, services, construction, and public works
contracts.  
   (b) California small businesses comprise nearly 98 percent of all
businesses in the state, employing more than 50 percent of California'
s workforce, and generating more than one-half of the state's gross
domestic product.  
   (c) Small businesses are the principal source of new jobs in
California's economy and are instrumental to the health of California'
s economy.  
   (d) California should lead the nation in creating an optimum
environment that affords all businesses equal access to state agency
contracting opportunities, thereby enhancing and encouraging
competition and preserving the free enterprise system.  
   (e) Disabled veterans have made incomparable sacrifices while
serving and protecting our country and most disabled veteran business
enterprises are also certified California small businesses. 

   (f) Enhancing opportunities for small business to participate in
the state contracting process is "good business" for California.

   SEC. 2.    Section 14838.5 of the  
Government Code   is amended to read: 
   14838.5.  (a) Notwithstanding the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this part and Chapter 2 (commencing with Section 10290) and Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, a state agency may award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than five thousand dollars ($5,000), but
less than  two hundred fifty thousand dollars ($250,000)
  five hundred thousand dollars ($500,000)  , to a
certified small business, including a microbusiness, or to a disabled
veteran business enterprise, as long as the agency obtains price
quotations from two or more certified small businesses, including
microbusinesses, or from two or more disabled veterans business
enterprises.
   (b) In carrying out subdivision (a), a state agency shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled veteran
business enterprise.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the acquisition of goods, services, or
information technology, or a greater amount as administratively
established by the director, a state agency shall obtain at least two
price quotations from responsible suppliers whenever there is reason
to believe a response from a single source is not a fair and
reasonable price.
   SEC. 3.    Section 14838.6 is added to the  
Government Code   , to read:  
   14838.6.  (a) The head of a state agency shall promote the use of
small business in state contracting activities and take every
reasonable means to ensure that a state contracting program is
administered in a manner that promotes small business participation.
The head of a state agency shall review small business participation
levels within the agency and develop a plan for increasing small
business participation levels within 60 days when participation
levels are low.
   (b) The Department of General Services shall research and examine
the best practices of both the public and private sectors in the
utilization of small businesses in their contracting practices and
programs. The Department of General Services shall prepare and
present findings and recommendations to the Legislature detailing
changes to the state's business practices that will provide
businesses with greater contracting opportunities within the State of
California.
   (c) State constitutional officers, the University of California,
the California State University, the Lottery Commission, the Public
Employees' Retirement System, that State Teachers' Retirement System,
the State Compensation Insurance Fund, and other independent state
entities are encouraged to take all necessary actions to comply with
the intent and the requirements of the act adding this section.
   (d) This section shall not be construed to require an action that
would result in the violation of a court order or a loss of
eligibility for federal funding. 
   SEC. 4.    Section 14841 of the   Government
Code   is amended to read: 
   14841.   (a)    Upon completion of a public
contract for which a commitment to achieve small business or disabled
veteran business enterprise participation goals was made, the
contractor shall report to the awarding department the actual
percentage of small business and disabled veteran business enterprise
participation that was achieved. 
   (b) A state agency shall aggressively pursue an annual 25 percent
small business participation level in state contracting. A state
agency that does not achieve a 25 percent level shall submit to the
Governor's office and the Legislature an explanation for why the
level was not achieved. The explanation shall include a plan for
improving contracting opportunities for small businesses. The
Department of General Services shall provide guidance to state
agencies in developing a plan for and taking the necessary actions
towards achieving the 25 percent participation level. This
subdivision shall not be construed to require an action that would
result in the violation of a court order or a loss of eligibility for
federal funding.  
  SECTION 1.    Section 14839 of the Government Code
is amended to read:
   14839.  There is hereby established within the department the
Office of Small Business and Disabled Veteran Business Enterprise
Services. The duties of the office shall include:
   (a) Compiling and maintaining a comprehensive bidders list of
qualified small businesses and disabled veteran business enterprises,
and noting which small businesses also qualify as microbusinesses.
   (b) Coordinating with the Federal Small Business Administration,
the Minority Business Development Agency, and the Office of Small
Business Development of the Department of Economic and Business
Development.
   (c) Providing technical and managerial aids to small businesses,
microbusinesses, and disabled veteran business enterprises, by
conducting workshops on matters in connection with government
procurement and contracting.
   (d) Assisting small businesses, microbusinesses, and disabled
veteran business enterprises, in complying with the procedures for
bidding on state contracts.
   (e) Working with appropriate state, federal, local, and private
organizations and business enterprises in disseminating information
on bidding procedures and opportunities available to small
businesses, microbusinesses, and disabled veteran business
enterprises.
   (f) Making recommendations to the department and other state
agencies for simplification of terms and specifications in order to
increase the opportunities for small business, microbusiness, and
disabled veteran business enterprise participation.
   (g) Developing, by regulation, other programs and practices that
are reasonably necessary to aid and protect the interest of small
businesses, microbusinesses, and disabled veteran business
enterprises in contracting with the state.
   (h) Making efforts to develop, in cooperation with associations
representing counties, cities, and special districts, a core
statewide small business certification application that may be
adopted by all participating entities, with any supplemental
provisions to be added as necessary by the respective entities.
   (i) The information furnished by each contractor requesting a
small business or microbusiness preference shall be under penalty of
perjury.