BILL NUMBER: AB 499	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2005

INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 16, 2005

   An act to  amend Section 2002   add and
repeal Section 2002.3  of the Public Contract Code, relating to
public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 499, as amended, Leno.  Public contracts: preferences: small
and local businesses  : San Francisco Community College District
 .
   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  
the San Francisco Community College District, pursuant to a 5-year
pilot project,  to provide similar preferences to a small and
local business,  would define "local," for the purposes of the
bill,  and would require  each local agency 
 the district  to define the term "small and local 
business,"   business" for each contract that is bid
under this section,  as specified.  
   The bill would require the district to include prescribed data
relating to the pilot project in an annual report to the Legislative
Analyst.  
   The bill would declare that unique circumstances applicable to the
San Francisco Community College District preclude the enactment of a
general statute.  
   These provisions would be repealed on January 1, 2011. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . 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: 
  SECTION 1.   Section 2002.3 is added to the   Public
Contract Code   , to read:  
   2002.3.  (a)  This section establishes a pilot project that
applies only to the San Francisco Community College District.
   (b) Notwithstanding any other provision of law requiring a local
agency to award contracts to the lowest responsible bidder, the
district may do any of the following in facilitating contract awards
to small and local businesses:
   (1) Provide for 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
and local business shall be up to 5 percent of the lowest
responsible bidder meeting specifications.
   (2) Establish a subcontracting participation goal for 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 and local business
contracts. Bidders that fail to meet the goal shall demonstrate that
they made good faith efforts to utilize small and local business
contractors.
   (c)  As used in this section:
   (1) "District" means the San Francisco Community College District.

   (2) "Local" refers to an area that is no smaller than, or
coterminous with, the jurisdiction of the San Francisco Community
College District and that is no larger than, or coterminous with, an
area that consists of the member counties of the Association of Bay
Area Governments, which include the counties of Alameda, Contra
Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano,
and Sonoma.
   (3) "Small and local business" shall be defined by the district
for each contract to be awarded under this section. The district
shall issue this definition no later than the initial solicitation
for each contract that is bid under this section. In defining "small
and local business" under this paragraph, the district shall adhere
to the definition of "local" set forth in paragraph (2).
   (d) For each year of the pilot project established by this
section, the district shall include all of the following in an annual
report to the Legislative Analyst:
   (1) The number of bidders for each contract that is bid under this
section.
   (2) The number of bidders that qualified for the small business
preference established under Section 2002 for each contract that is
bid under this section.
   (3) The number of bidders that qualified for the small and local
business preference for each contract that is bid under this section.

   (4) The number of contracts bid under this section in which the
small business preference established under Section 2002 was the
deciding factor in the award of the contract.(4) The number of
contracts bid under this section in which the small and local
business preference was the deciding factor in the award of the
contract.
   (e) This section shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.  
  SEC. 2.    The Legislature finds and declares that, because of
the unique circumstances applicable to the San Francisco Community
College District, a general statute within the meaning of Section 16
of Article IV of the California Constitution cannot be enacted. The
enactment of Section 1 of this act is therefore necessary. 


   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" 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 defined to mean a geographical area
that is smaller than the boundaries of the local agency.