BILL NUMBER: AB 499	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 10, 2005
	AMENDED IN ASSEMBLY  APRIL 21, 2005

INTRODUCED BY   Assembly Member Leno

                        FEBRUARY 16, 2005

   An act to 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 the San Francisco Community College
District, pursuant to a  specified  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
the district to define the term "small and local business" for each
contract that is bid under this section, as specified  
as defined  .
   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   These provisions would be repealed on January 1, 2011.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: no.
State-mandated local program: no.


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


  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). 

   (2) "Small and local business" means a business that meets all of
the following criteria:   
   (A) Is independently owned and operated by owners or corporate
officers who are domiciled in this state.   
   (B) Maintains its principal office in this state.   
   (C) Does not dominate its field of operation.   
   (D) Is either:   
   (i) A nonmanufacturing employer that employs no more than 100
employees and has earned an average of ten million dollars
($10,000,000) or less in annual gross receipts for each of the
preceding three taxable years.   
   (ii) Is a manufacturing employer that employs no more than 100
employees.   
   (E) Is located in a geographic area to be defined by the district
in the initial solicitation for each contract that is bid pursuant to
this section. In defining the geographic area for the initial
solicitation for each contract, the district shall select 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. 
   (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) 
    (5)  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.