BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1219 (Hancock) - Small Business Procurement and Contract Act:
employment social enterprises
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|Version: April 4, 2016 |Policy Vote: G.O. 11 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 27, 2016 |Consultant: Robert Ingenito |
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Bill
Summary: SB 1219 would include employment social enterprises
(ESEs) within the Small Business Procurement and Contract Act,
for the purpose of allowing them to participate in state
contracting bid preferences.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal
Impact:
The Department of General Services (DGS) would incur a
one-time information technology (IT) expense, likely in the
low millions of dollars, to implement the provisions of the
bill. Additionally, DGS would incur rulemaking expenses
likely to range in the hundreds of thousands of dollars.
(See Staff Comments). Finally, DGS would incur unknown
SB 1219 (Hancock) Page 1 of
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ongoing, but potentially significant costs to review and
approve applications for certification as an employment
social enterprise.
All state agencies would experience ongoing costs
associated with both (1) the operation of the bid
preference, and (2) from administration. Because, DGS does
not know many eligible firms exist and would seek
certification, these costs are unknown.
Author
Amendments: Delay implementation, revise the ESE definition, and
require additional documentation to verify non-profit status.
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