BILL NUMBER: AB 309 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 23, 2009
INTRODUCED BY Assembly Member Price
FEBRUARY 17, 2009
An act to add Section 14838.8 to the Government Code, relating to
public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 309, as amended, Price. Public contracts: small business
participation.
Existing law, the Small Business Procurement and Contract Act,
requires the Director of General Services and the heads of other
state agencies that enter into contracts for the provision of goods,
services, and information technology and for the construction of
state facilities to establish goals for the participation of small
businesses in these contracts, to provide for small business
preference in the award of these contracts, to give special
consideration and special assistance to small businesses, and,
whenever possible, to make awards to small businesses, as specified.
This bill would require all state agencies, departments, boards,
and commissions to establish and achieve a an
annual goal of 25% small business participation in state
procurements and contracts, to ensure that the state's procurement
and contract processes are administered in order to meet or exceed
the goal, and to report to the Director of General Services
statistics regarding small business participation in his or her
agency's procurements and contracts.
The bill would require the Department of General Services to
monitor the progress of the agencies toward meeting the goal
, to notify the head of each agency of his or her agency's successes
and deficiencies toward meeting the goal, and to provide
this information to the Office of Small Business Advocate.
The bill would also require a state agency, department, board, or
commission that has not achieved the goal by December 31,
2010, the close of the fiscal year to submit an
implementation and corrective action plan to the Department of
General Services on or before August 1, 2011,
within 45 days and every year thereafter as long as that
agency fails to meet or exceed the goal. The bill would require the
department, in collaboration with the Office of Small Business
Advocate, to review any implementation and corrective action
plans received, and to explore ways to work with the agencies that
have not met the goal to improve performance to
undertake reasonable means to assist agencies in improving small
business participation in their contracting .
The bill would require all state agencies, departments, boards,
and commissions to work with the department to help small businesses
market their products, goods, and services to the state by providing
access to information about current bid opportunities on their
Internet Web sites.
The bill would also require the Office of Small Business Advocate
to collaborate with the Department of General Services to
cooperatively enhance the state's small business program by helping
small businesses secure needed financing
access capital and other financial resources necessary to
successfully fulfill state cont r acts .
This bill applies to all state public entities that receive state
public funding, including the California State University, University
of California, and California Community Colleges. In calculating the
total amount of contracting covered by this bill, the California
State University, the University of California, and the California
Community Colleges will only be required to meet the 25% goal for
state funding used in contracting.
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 14838.8 is added to the Government Code, to
read:
14838.8. In order to encourage small business participation in
state contracts, all state agencies, departments, boards, and
commissions shall establish and achieve a an
annual goal of 25 percent small business participation in state
procurements and contracts.
(a) Notwithstanding any other provision of this chapter, the heads
of all state agencies, departments, boards, and commissions shall
ensure that the state's procurement and contract processes are
administered in order to meet or exceed the 25 percent small business
participation goal, and shall report to the Director of General
Services statistics regarding small business annual
participation in his or her agency's procurements and contracts.
(b) (1) The Department of
General Services shall monitor the progress of all state agencies,
departments, boards, and commissions toward meeting the 25 percent
small business participation goal. The department shall
regularly share information with the Office of Small Business
Advocate on each individual agency, department, board, and commission'
s progress in meeting the annual goal, including, but not limited to,
providing copies of corrective action plans.
(2) The department shall notify the head of each state agency,
department, board, or commission of his or her agency's successes and
deficiencies toward meeting the 25 percent small business
participation goal, based on its findings from monitoring that agency'
s progress.
(3) The department shall provide this information to the Office of
Small Business Advocate.
(c) (1) A state agency, department, board, or commission that has
not achieved the 25 percent small business participation goal by
December 31, 2010, th e close of
the fiscal year shall submit an implementation and corrective
action plan to the Department of General Services on or
before August 1, 2011, within 45 days and
annually thereafter as long as that agency fails to meet or exceed
the goal.
(2) The Department of General Services, in collaboration with the
Office of Small Business Advocate, shall review any
implementation and corrective action plans received, and shall
explore ways, including memoranda of understanding, to work
undertake reasonable means to assist agencies in improving
small business participation in their contracting,
including entering into memoranda of understanding with the
agencies that have not met the goal to improve performance.
(d) All state agencies, departments, boards, and commissions shall
use the Statutory Informal Bidding Provisions
contracting procedure authorized in Section 14838 to
contract with small businesses for goods and services contracts under
one hundred thousand dollars ($100,000) and construction contracts
under one hundred twenty thousand dollars ($120,000) whenever
possible.
(e) (1)
The Department of General Services shall actively promote small
business certification, help small businesses market their products,
goods, and services to the state, and promote the use of
technologies and other innovative solutions for notifying small
businesses of state contracting opportunities, including, but not
limited to, the Subscription Outreach Service of the State
Contracts Register.
(2) All state agencies, departments, boards, and commissions shall
work with the department to help small businesses market their
products, goods, and services to the state by providing access to
information about current bid opportunities on their Internet Web
sites.
(f) The Office of Small Business Advocate
Department of General Services shall collaborate with
the Department of General Services to cooperatively enhance the state'
s small business program by helping small businesses secure needed
financing. with the Office of the Small Business
Advocate in the office's work to assist small businesses access
capital and other financial resources necessary to successfully
fulfill state contracts.
(g) This section applies to all state agencies, departments,
boards, commissions, and other state public entities that receive
state funding including the California State University, the
University of California, and the California Community Colleges. In
calculating the total amount of contracting covered by this section,
the California State University, the University of California, and
the California Community Colleges shall only be required to meet the
25 percent goal for state funding used in contracting.