BILL NUMBER: SB 642	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Denham

                        FEBRUARY 27, 2009

   An act to amend Section 14838.5 of, and to add Section 14841 to,
the Government Code, and to amend Section 10105 of the Public
Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 642, as introduced, Denham. Public contracts: Small Business
Procurement and Contract Act.
   (1) The Small Business Procurement and Contract Act permits a
state agency to award a contract for goods, services, or information
technology with a value of between $5,000 and $100,000 to a certified
small business, including a microbusiness and a disabled veteran
business enterprise, without complying with specified competitive
bidding requirements.
   This bill would increase the maximum amount of the contract from
$100,000 to $250,000.
   (2) Existing law encourages state agencies that enter into
contracts to establish goals to facilitate the participation of small
businesses and disabled veteran business enterprises.
   This bill also would require the contractor, upon completion of a
public contract for which a commitment to achieve small business or
disabled veteran business enterprise participation goals was made, to
report the actual percentage of small business or disabled veteran
business enterprise participation that was achieved.
   (3) The State Contract Act governs contracting between state
agencies and private contractors, and sets forth requirements, for
the bidding, awarding, and overseeing of contracts for projects,
which it defines to include the construction or other improvement to
a state structure or building with a total cost threshold equal to
$100,000 for calendar year 1993, as adjusted every 2 years.
   This bill would instead establish a 2009 cost threshold at
$250,000, which would be adjusted every 2 years.
   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 14838.5 of the Government Code is amended to
read:
   14838.5.  (a) Notwithstanding the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this code and Chapter 2 (commencing with Section 10290) and Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, a state agency may award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than five thousand dollars ($5,000), but
less than  one hundred   two hundred fifty 
thousand dollars  ($100,000),   ($250,000)
 to a certified small business, including a microbusiness, or to
a disabled veteran business enterprise, as long as the agency
obtains price quotations from two or more certified small businesses,
including microbusinesses, or from two or more disabled veterans
business enterprises.
   (b) In carrying out subdivision (a), state agencies shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled veteran
business enterprise.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the acquisition of goods, services, or
information technology, or a greater amount as administratively
established by the director, a state agency shall obtain at least two
price quotations from responsible suppliers whenever there is reason
to believe a response from a single source is not a fair and
reasonable price.
  SEC. 2.  Section 14841 is added to the Government Code, to read:
   14841.  Upon completion of a public contract for which a
commitment to achieve small business or disabled veteran business
enterprise participation goals was made, the contractor shall report
to the awarding department the actual percentage of small business
and disabled veteran business enterprise participation that was
achieved.
  SEC. 3.  Section 10105 of the Public Contract Code is amended to
read:
   10105.  (a) As used in this part, "project" includes the erection,
construction, alteration, repair or improvement of  any
  a  state structure, building, road, or other
state improvement of any kind  which   that
 will exceed a total cost calculated pursuant to subdivision
(b).
   (b) The total cost limit for calendar year  1993 
 2009  shall be  one hundred   two
hundred fifty  thousand dollars  ($100,000), 
 ($250,000),  and at two year intervals thereafter, the
total cost limit shall be adjusted upward or downward by the Director
of Finance to reflect the percentage change in the annual California
Construction Index as used by the Department of General Services.
The amount shall be rounded off to the nearest one thousand dollar
($1,000) figure.