BILL NUMBER: AB 2405	CHAPTERED
	BILL TEXT

	CHAPTER   917
	FILED WITH SECRETARY OF STATE   SEPTEMBER 28, 1998
	APPROVED BY GOVERNOR   SEPTEMBER 28, 1998
	PASSED THE ASSEMBLY   AUGUST 28, 1998
	PASSED THE SENATE   AUGUST 27, 1998
	AMENDED IN SENATE   AUGUST 24, 1998
	AMENDED IN SENATE   AUGUST 12, 1998
	AMENDED IN ASSEMBLY   MAY 22, 1998
	AMENDED IN ASSEMBLY   APRIL 29, 1998

INTRODUCED BY   Assembly Members Leach, Cunneen, and Runner
   (Coauthor:  Senator Kopp)

                        FEBRUARY 20, 1998

   An act to add a heading as Article 1 (commencing with Section
14835) to, and to add Article 2 (commencing with Section 14845) to,
Chapter 6.5 of Part 5.5 of Division 3 of Title 2 of the Government
Code, relating to state contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2405, Leach.  Small business contracts.
   Existing law provides for various programs for the development of
small business opportunities in the state, and sets forth the duties
of the Department of General Services, and the small business
advocate within the department, in promoting small business
participation in state contracts.
   This bill would require the small business advocate in the
Department of General Services to provide specified services in
assisting small businesses, and would require each state agency, with
specified exceptions, to designate a small business advocate as a
liaison to small business suppliers by performing specified duties.
It would require state agencies to conduct solicitation and
acquisition activities according to certain criteria and authorize
state agencies to apply certain considerations to business awards.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  A heading is added to the Government Code immediately
preceding Section 14835, to read:

      Article 1.  General Provisions

  SEC. 2.  Article 2 (commencing with Section 14845) is added to
Chapter 6.5 of Part 5.5 of Division 3 of Title 2 of the Government
Code, to read:

      Article 2.  Small Business Advocacy

   14845.  Using existing resources, the Department of General
Services' small business advocate shall, at a minimum, provide the
following services:
   (a) Assist small businesses by providing information regarding all
of the following:
   (1) Identification of potential small business subcontractors and
potential subcontracting opportunities.
   (2) Solicitation protest procedures and timelines.
   (3) Prompt payment procedures.
   (b) Using existing resources, develop and maintain an outreach and
education program to assist small businesses to establish the
California multiple award schedule.  The department shall actively
promote the availability of small business suppliers to deliver or
provide a broad range of goods and services to governmental agencies
through their participation in the California multiple award schedule
program established pursuant to Chapter 2 (commencing with Section
10290) of Part 2 of Division 2 of the Public Contract Code and other
types of contracts established by state agencies for repetitively
used and commonly needed goods and services.
   (c) Whenever the director consolidates the needs of multiple state
agencies and establishes a contract for repetitively purchased or
commonly needed goods or services, the director shall both encourage
bidders to utilize small business suppliers and subcontractors, and
utilize multiple award methods whenever practicable to further ensure
that a fair proportion of needed goods and services are obtained
from small businesses.
   (d) Using existing resources, establish a training and development
program for acquisition professionals, including methods for
structuring solicitations to enhance the participation of small
businesses in state contracting.
   (e) Using existing resources, the department shall establish a
recognition and awards program for state employees who make an
outstanding contribution to the state's overall effort to increase
the level of small business participation in state contracting.
   (f) Prepare, and make available to the public, a directory of
certified small business suppliers.
   (g) In its review of state agency acquisitions, the department, as
applicable, shall identify areas where improvements in the level of
participation of small businesses in state contracting can be
achieved.
   14846.  (a) (1) Using existing resources, each state agency shall
consolidate its existing staff functions that relate to contract
opportunities for small business into a single point of contact for
small businesses and designate a small business advocate as a liaison
to small business suppliers.
   (2) Each small business advocate shall, at a minimum, provide for
both of the following:
   (A) Make information regarding pending solicitations available to,
and consider offers from, California small business suppliers
capable of meeting the state's business need, and who have registered
with the state for this purpose.
   (B) Ensure that payments due on a contract with a small business
are made promptly, as provided for in Section 926.15 or 927,
whichever applies.
   (3) This subdivision shall not apply to state agencies whose
contracting expenditures total less than one hundred thousand dollars
($100,000) annually.
   (b) Prior to placing orders under the California multiple awards
schedule program, state agencies shall first consider offers from
small businesses that have established multiple award schedules
whenever practicable.
   (c) State agencies shall identify and implement innovative
acquisition operating processes, including payment processes, and
strategies for small business participation.  To maximize the
benefits, state agencies shall actively share information about these
innovative processes with other state agencies.
   (d) State agencies shall prepare solicitations, and any related
bid submission requirements, in a manner consistent with the scope,
complexity, and anticipated cost of the acquisition.  Where
appropriate, state agencies shall provide bidders with simplified and
streamlined tools and methods for responding to solicitations that
allow bidders to efficiently, expeditiously, and cost-effectively
respond to the contracting opportunity.
   14847.  (a) In determining eligibility of a business for an award,
state agencies may consider all of the following:
   (1) Whether the bidder has the necessary facilities,
organizational capability, experience, managerial and technical
competency and skills, and financial resources to fulfill the terms
of the contract.
   (2) Whether the bidder has the capability to comply with the
required delivery or performance schedule, taking into consideration
other business commitments.
   (3) Whether the bidder has a history of satisfactory or better
performance, as demonstrated by a results-oriented track record,
written performance evaluations, or other relevant information
obtained from references.
   (b) State agencies may enter into contracts with multiple sources
when in the best interests of the state.
   (c) The Department of General Services shall establish procedures
and guidelines for the implementation of this article.