BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 499|
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THIRD READING
Bill No: AB 499
Author: Leno (D)
Amended: 5/10/05 in Assembly
Vote: 21
SENATE GOVERNMENT MODERNIZATION COMM. : 6-3, 6/29/05
AYES: Figueroa, Bowen, Ducheny, Florez, Kuehl, Murray
NOES: Dutton, Ashburn, McClintock
NO VOTE RECORDED: Campbell
ASSEMBLY FLOOR : 50-25, 5/19/05 - See last page for vote
SUBJECT : Public contracts: San Francisco Community
College District
SOURCE : City College of San Francisco
DIGEST : This bill establishes a five-year pilot project
authorizing the San Francisco Community College District to
grant small and local business preferences of up to five
percent in awarding special contracts for construction, the
procurement of goods, or the delivery of services where
responsibility and quality are equal to the lowest
responsible bidder.
ANALYSIS :
Existing law:
1. Allows local agencies to grant bidding preferences of up
CONTINUED
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to five percent in the award of specified contracts to
defined "small businesses" and other businesses meeting
established "small business" subcontracting goals. The
preference is up to five percent of the lowest
responsible bid.
2. Permits local agencies to establish a subcontracting
participation goal for "small businesses" and grant a
preference to bidders meeting this goal.
3. Enables local agencies to require bidders engage in
"good faith" attempts to attain the "small business"
subcontracting participation goal.
4. Requires each local agency awarding the "small business"
preference to define the term "small business."
This bill:
1. Establishes a five-year pilot project allowing for the
San Francisco Community College District (District) to
provide for a small and local business preference in
construction, the procurement of goods, or the delivery
of services where the responsibility and quality are
equal. Stipulates that the preference shall be up to
five percent of the lowest responsible bidder meeting
specifications.
2. Allows the District to establish a subcontracting
participation goal for small and local businesses on
contracts and grant preference, up to a maximum of five
percent, to those bidders who meet the goal.
3. Requires bidders to make good faith efforts to meet a
subcontracting participation goal, and requires bidders
that fail to do so to demonstrate that they made good
faith efforts to use small and local business
contractors.
4. Defines "small and local business" as it relates to
these provisions.
5. Requires the District to report specified information
relating to the bidders and contracts under the pilot
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project to the Legislative Analyst each year, and
sunsets the pilot project on January 1, 2011.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/29/05)
City College of San Francisco (source)
ARGUMENTS IN SUPPORT : According to the author's office,
this bill initially arose from a specific issue following
passage of a local bond measure to fund capital
improvements at a community college campus. The author's
office states even though the bond was passed as a local
measure and, as a result, financed locally, the community
college district was not able to offer any preferences to
local businesses when soliciting and awarding bids. The
author's office asserts this bill gives local governments
the option to keep local money in their community, and it
is modeled on the existing small business preference. This
bill does not require the District to use the local
preference, but authorizes the District to award such a
preference.
ASSEMBLY FLOOR :
AYES: Arambula, Baca, Bass, Berg, Bermudez, Calderon,
Canciamilla, Chan, Chavez, Chu, Cohn, Coto, De La Torre,
Dymally, Evans, Frommer, Goldberg, Hancock, Jerome
Horton, Shirley Horton, Houston, Jones, Karnette, Klehs,
Koretz, Laird, Leno, Levine, Lieber, Matthews, Montanez,
Nakanishi, Nation, Nava, Negrete McLeod, Niello, Oropeza,
Parra, Pavley, Ridley-Thomas, Ruskin, Saldana, Salinas,
Torrico, Tran, Umberg, Vargas, Wolk, Yee, Nunez
NOES: Aghazarian, Blakeslee, Bogh, Cogdill, Daucher,
DeVore, Emmerson, Harman, Haynes, Huff, Keene, La Malfa,
La Suer, Leslie, Maze, McCarthy, Mountjoy, Plescia,
Richman, Sharon Runner, Spitzer, Strickland, Villines,
Walters, Wyland
NO VOTE RECORDED: Benoit, Garcia, Gordon, Liu, Mullin
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JJA:mel 7/1/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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