BILL NUMBER: AB 351	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones-Sawyer

                        FEBRUARY 17, 2015

   An act to add Section 14838.8 to the Government Code, relating to
public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 351, as introduced, Jones-Sawyer. Public contracts: small
business participation.
   The Small Business Procurement and Contract Act requires the
Director of General Services and the heads of other state agencies
that enter into contracts for the provision of goods, services, and
information technology and for the construction of state facilities
to establish goals for the participation of small businesses in these
contracts, to provide for small business preference in the award of
these contracts, to give special consideration and special assistance
to small businesses, and, whenever possible, to make awards to small
businesses, as specified.
   This bill would require all state agencies, departments, boards,
and commissions to establish and achieve an annual goal of 25% small
business participation in state procurements and contracts, to ensure
that the state's procurement and contract processes are administered
in order to meet or exceed the goal, and to report to the director
statistics regarding small business participation in the agency's
procurements and contracts.
   The bill would require the Department of General Services to
monitor the progress of the agencies toward meeting the goal and to
provide this information to the Office of Small Business Advocate.
   The bill would also require a state agency, department, board, or
commission that has not achieved the goal by the close of the fiscal
year to submit a corrective action plan to the department within 45
days. The bill would require the department, in collaboration with
the Office of Small Business Advocate, to undertake reasonable means
to assist agencies in improving small business participation in their
contracting.
   The bill would require all state agencies, departments, boards,
and commissions to use a contracting procedure established in the act
for specified contracts with small businesses whenever possible.
   The bill would also require the Office of Small Business Advocate
to collaborate with the department to cooperatively enhance the state'
s small business program by helping small businesses access capital
and other financial resources necessary to successfully fulfill state
contracts.
   The bill would apply to all state public entities that receive
state public funding, including the California State University, the
University of California, and the California Community Colleges. In
calculating the total amount of contracting covered by this bill, the
California State University, the University of California, and the
California Community Colleges would only be required to meet the 25%
goal for state funding used in contracting.
   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 14838.8 is added to the Government Code, to
read:
   14838.8.  (a) In order to encourage small business participation
in state contracts, all state agencies, departments, boards, and
commissions shall establish and achieve an annual goal of 25 percent
small business participation in state procurements and contracts.
   (b) Notwithstanding any other provision of this chapter, the heads
of all state agencies, departments, boards, and commissions shall
ensure that the state's procurement and contract processes are
administered in order to meet or exceed the 25 percent small business
participation goal, and shall report to the director statistics
regarding small business annual participation in his or her agency's
procurements and contracts.
   (c) The Department of General Services shall monitor the progress
of all state agencies, departments, boards, and commissions toward
meeting the 25 percent small business participation goal. The
department shall regularly share information with the Office of Small
Business Advocate on the progress of each individual agency,
department, board, and commission in meeting the annual goal,
including, but not limited to, providing copies of corrective action
plans.
   (d) (1) A state agency, department, board, or commission that has
not achieved the 25 percent small business participation goal by the
close of the fiscal year shall submit a corrective action plan to the
Department of General Services within 45 days.
   (2) The Department of General Services, in collaboration with the
Office of Small Business Advocate, shall undertake reasonable means
to assist agencies in improving small business participation in their
contracting, including entering into memoranda of understanding with
the agencies that have not met the goal to improve performance.
   (e) All state agencies, departments, boards, and commissions shall
use the contracting procedure authorized in Section 14838.5 to
contract with small businesses for goods and services contracts under
one hundred thousand dollars ($100,000) and construction contracts
under one hundred twenty thousand dollars ($120,000) whenever
possible.
   (f) The Department of General Services shall actively promote
small business certification, help small businesses market their
products, goods, and services to the state, and promote the use of
technologies and other innovative solutions for notifying small
businesses of state contracting opportunities, including, but not
limited to, the Subscription Outreach Service of the California State
Contracts Register.
   (g) The Department of General Services shall collaborate with the
Office of the Small Business Advocate in the office's work to assist
small businesses access capital and other financial resources
necessary to successfully fulfill state contracts.
   (h) This section applies to all state agencies, departments,
boards, commissions, and other state public entities that receive
state funding including the University of California, the California
State University, and the California Community Colleges. In
calculating the total amount of contracting covered by this section,
the University of California, the California State University, and
the California Community Colleges shall only be required to meet the
25 percent goal for state funding used in contracting.