BILL NUMBER: SB 1108	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Price

                        FEBRUARY 17, 2010

   An act to add Section 14838.8 to the Government Code, relating to
public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1108, as introduced, 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 authorize the Department of General Services to
direct all state agencies, departments, boards, and commissions to
establish the goal to achieve 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 authorize the Department of General Services to
establish policies and procedures to monitor the progress of the
agencies toward meeting the goal of 25% small business participation
and to provide this information to the Office of Small Business
Advocate.
   The bill would also authorize the Department of General Services
to require a state agency, department, board, or commission that has
not achieved its fiscal year goal to submit an implementation and
corrective action plan and every year thereafter as long as that
agency fails to meet or exceed the goal. The bill would also
authorize the department to establish criteria for such a plan, as
specified. The bill would authorize the department to undertake
reasonable means to assist agencies in improving small business
participation in their 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, the Department of General Services may direct all
state agencies, departments, boards, and commissions to establish the
goal to achieve 25 percent small business participation in state
procurements and contracts. Should the department give this
direction, all of the following apply:
   (a) Notwithstanding any other provision of this chapter, the heads
of all state agencies, departments, boards, and commissions, shall
implement procurement and contract processes in order to meet the
goal of 25 percent small business participation, and shall report to
the Director of General Services statistics regarding the annual
participation of small businesses in the agency's procurements and
contracts.
   (b) The Department of General Services may establish policies and
procedures to monitor the progress of all state agencies,
departments, boards, and commissions toward meeting the goal of 25
percent small business participation. The department may 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.
   (c) (1) The Department of General Services may require a state
agency, department, board, or commission that has not achieved its
fiscal year goal of 25 percent small business participation to submit
an implementation and corrective action plan, and to submit such a
plan annually thereafter, as long as that agency fails to meet or
exceed the goal. The department may establish criteria for such a
plan and publish it the State Administrative Manual.
   (2) The Department of General Services may 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.
   (d) The Department of General Services shall establish in the
State Administrative Manual policies for all state agencies,
departments, boards, and commissions to use the contracting procedure
authorized in Section 14838 to contract with small businesses, as
directed.
   (e) The Department of General Services shall actively promote
small business certification.