BILL NUMBER: AB 499	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 16, 2005

   An act to amend Section 2002 of the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 499, as introduced, Leno.   Public contracts: preferences:
small and local businesses.
   Existing law authorizes a local agency to provide for a small
business preference in construction, the procurement of goods, or the
delivery of services, and to establish a subcontracting
participation goal for small businesses on contracts with a
preference for those bidders who meet the goal. Existing law, for
purposes of this authority, requires that the term "small business"
be defined by each local agency.
   This bill would authorize a local agency to provide similar
preferences to a small and local business, and would require each
local agency to define the term "small and local business," as
specified.
   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 2002 of the  Public Contract Code  is amended
to read:
   2002.  (a) Notwithstanding any other provision of law requiring a
local agency to award contracts to the lowest responsible bidder, any
local agency may do any of the following in facilitating contract
awards to small businesses  or small and local businesses  :
(1) Provide for a small business  preference, or a small and
local business  preference  ,  in construction, the
procurement of goods, or the delivery of services where
responsibility and quality are equal. The preference to a small
business  or a small and local business  shall be up to 5
percent of the lowest responsible bidder meeting specifications.
   (2) Establish a subcontracting participation goal for small
businesses  or small and local businesses  on contracts and
grant a preference, up to a maximum of 5 percent, to those bidders
who meet the goal.
   (3) Require bidders to make good faith efforts to meet a
subcontracting participation goal for small business contracts 
or small and local business contracts  . Bidders that fail to
meet the goal shall demonstrate that they made good faith efforts to
utilize small business contractors  or small and local business
contractors .
   (b) The term "small  business,"   business"
or "a small and local business,"  as used in this section, shall
be defined by each local agency.  The term   " 
 local,   "   however, may not be def 
 ined to mean a geographical area that is smaller than the
boundaries of the local agency.