BILL ANALYSIS
AB 499
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GOVERNOR'S VETO
AB 499 (Leno)
As Amended May 10, 2005
2/3 vote
ECONOMIC DEVELOPMENT 5-0
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|Ayes:|Arambula, Houston, Baca, | | |
| |Canciamilla, Garcia | | |
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| | | | |
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ASSEMBLY: 50-25 (May 19, 2005) SENATE:
22-15 (August 22, 2005)
SUMMARY : Creates a five-year pilot project allowing the San
Francisco Community College District (District) to grant local
bidding preferences of up to 5% in the award of contracts to
small and local businesses and other businesses meeting
subcontracting goals. Specifically, this bill :
1)Stipulates the definition of the term "small business" in a
manner consistent with the current definition held by the
Department of General Services in regulations governing small
business contracts with the state.
2)Limits the District from self-defining the term "local" as
being a geographical area smaller than the boundaries of the
City and County of San Francisco and no greater than the area
comprising Alameda, Contra Costa, Marin, Napa, San Francisco,
San Mateo, Santa Clara, Solano, and Sonoma Counties.
3)Requires the District to provide an annual report to the
Legislative Analyst for each of the five years of the pilot
project, including specified data.
EXISTING LAW :
AB 499
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1)Allows local agencies to grant bidding preferences of up to 5%
in the award of specified contracts to local agency-defined
small businesses and other businesses meeting subcontracting
goals.
2)Requires each local agency awarding the small business
preference to define the term small business.
FISCAL EFFECT : Unknown
COMMENTS : There is no provision in current law that allows
local agencies to award geographically-based preferences such as
a local business preference. This pilot project and the
reporting requirement therein seek to allow one local agency to
engage in such a practice and study the contract award results
and changes, if any, under such a practice.
GOVERNOR'S VETO MESSAGE :
Encouraging the growth and stability of local business is an
objective that I fully support. However, this bill could
increase the contracting and operating costs of the San
Francisco Community College District. Public agencies should
focus on getting the most cost effective solution for taxpayers.
This bill would place geographic proximity as a higher priority
than cost effectiveness.
Analysis Prepared by: Tom Higgins / J., E.D. & E. / (916)
319-2090
FN: 0013226
AB 499
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