BILL NUMBER: SCR 59	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Cedillo

                        SEPTEMBER 8, 2009

   Relative to the American Recovery and Reinvestment Act of 2009.


	LEGISLATIVE COUNSEL'S DIGEST


   SCR 59, as introduced, Cedillo. Public contracts: The American
Recovery and Reinvestment Act of 2009.
   This act would urge all state and local government agencies,
departments, offices, and other entities responsible for the
allocation and disbursement of federal American Recovery and
Reinvestment Act funds for public contracts and infrastructure
projects in the state, to the extent permitted under state and
federal law, to ensure that Latino-owned and minority-owned small
businesses receive an equal share of the available federal stimulus
funds.
   Fiscal committee: no.



   WHEREAS, The economy of the United States is experiencing a
recession that is causing significant unemployment and loss of income
for many American families; and
   WHEREAS, On February 17, 2009, President Barack Obama signed the
$787 billion American Recovery and Reinvestment Act of 2009 (Public
Law 111-15), hereafter known as the ARRA, for the purposes of saving
jobs, creating jobs, and getting our economy moving again; and
   WHEREAS, The ARRA appropriates funds to be used for the purposes
of stimulating the economy, including, but not limited to, green job
creation, broadband technology expansion, smart-energy grid
construction, healthcare efficiency through technology, scientific
research, tax cuts, creation of business-friendly tax incentives,
infrastructure development, construction of roads, bridges, mass
transit, clean water projects, expansion of unemployment benefits,
and other social provisions and offers as incentives for domestic
spending in education, health care, and infrastructure; and
   WHEREAS, Of the $787 billion provided to the states under the
ARRA, $288 billion was directed at tax relief and $499 billion for
spending-related incentives, including $144 billion for state and
local fiscal relief, $111 billion for health care, $53 million for
education and training, and $43 billion for energy; and
   WHEREAS, Of the $787 billion total available under the ARRA, 25%
of the stimulus fund money is intended to be spent by September 2009,
another 50% by September 2010, and yet another 15% by September
2011, for a projected total of 90% of the total $787 billion to be
spent by September 2011; and
   WHEREAS, The federal stimulus package under ARRA emphasizes the
need for each state to boost its economy through the initiation of a
wide range of projects, recognizing the importance of providing
economic stimulus opportunities to all sectors of the economy,
including public and private; and
   WHEREAS, California has been awarded a greater share of funding
under the ARRA than any other state in the nation. In this regard,
California is projected to receive $95 billion, with $11 billion of
that total being directed toward the state budget shortfall. On March
5, 2009, Governor Schwarzenegger reaffirmed California's commitment
to use the ARRA funds to create jobs and promote economic growth; and

   WHEREAS, The federal government has estimated that the ARRA will
create 396,000 jobs in California, and federal stimulus funds will be
allocated to both state entities and local government bodies; and
   WHEREAS, The State of California, in order to promote economic
growth to all contributing sectors of the economy, needs a
comprehensive federal stimulus package that allocates a fair share of
funding by stimulating a variety of the segments of the state's
economy, so that all citizens of all regions of the state will
benefit; and
   WHEREAS, Much of the economic stimulus fund money that has been
distributed up to date has been directed towards departments in the
state; and
   WHEREAS, In order for the economy to fully recover from the ground
up and rebuild small communities, it is necessary for small
businesses, especially Latino-owned and minority-owned small
business, to overcome this recession with the help of economic
stimulus funds; and
   WHEREAS, Governor Schwarzenegger has stated that California's
economic recovery is tied directly to the success of the state's
business community, particularly California's small business
community; now, therefore, be it
   Resolved, by the Senate of the State of California, the Assembly
thereof concurring, That the Legislature urges all state and local
government agencies, departments, offices, and other entities that
are responsible for the allocation and disbursement of federal ARRA
funds for public contracts and infrastructure projects in the state,
to the extent permitted by federal and state law, to ensure that
Latino-owned and minority-owned small businesses in the state receive
an equal share of the federal stimulus funds made available to
California under the ARRA; and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the author for appropriate distribution.