BILL NUMBER: SB 1484	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 2, 2010
	AMENDED IN ASSEMBLY  JUNE 14, 2010
	AMENDED IN ASSEMBLY  JUNE 7, 2010

INTRODUCED BY   Senator Wright

                        MARCH 8, 2010

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1484, as amended, Wright. Public contracts: procurement: small
business, microbusiness, and disabled veteran business enterprises.
   The Small Business Procurement and Contract Act requires the
directors of the Department of General Services and other state
agencies entering into contracts for the provision of goods,
information technology, and services to the state, and in the
construction of state facilities, to provide for a preference, as
specified, for any bid to small businesses and microbusinesses, under
specified circumstances. The act permits a state agency to award a
contract of a specified limited amount for the acquisition of goods,
services, or information technology, to a certified small business,
including a microbusiness, or to a disabled veteran business
enterprise if the agency receives certain other price quotations, as
specified.
   This bill  , until January 1, 2017,  would  generally
 prohibit the Director of General Services and the directors of
other state departments or offices that enter into contracts from
engaging in the bundling of contracts, as defined, which has the
effect of restricting or excluding small business, microbusiness, or
disabled veteran business enterprise, from the state contracting
process.  The bill would also provide that the participation
goals for small business, microbusiness, or disabled veteran business
enterprises participation for the act are not met by awarding a
contract for goods to a prime contractor that engages a small
business, microbusiness, or disabled veteran business enterprise as a
subcontractor on that contract.   The bill would permit
the bundling of contracts by the Director of General Services during
a state of emergency as declared by   the Governor or if
the director makes specified determinations about the bundled
contract and submits them to the California Small Business Advocate,
who would be required to determine whether or not a bundled contract
is appropriate for that particular transaction and whose
determination would be final and binding on the director. The bill
would permit the advocate to make other recommendations to the
director regarding any terms or conditions that might be incorporated
in the bundled contract to reduce its potential negative impact on
small business. 
   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.  (a) Notwithstanding any other law,  and except as
provided in subdivisions (c) and (d),  to facilitate the
participation of small businesses, microbusinesses, or disabled
veteran business enterprises in the provision of goods to the state,
the Director of General Services and the directors of other state
departments or agencies that enter into contracts within their
respective areas of responsibility shall not engage in bundling of
contracts, which has the effect of restricting or excluding small
businesses, microbusinesses, or disabled veteran business
enterprises, from the state contracting process.
   (b) As used in this section, "bundling of contracts" means a use
of solicitation for a single contract or a multiple award contract to
satisfy two or more requirements of any state agency, department,
board, or commission for goods that restricts competition or limits
the number of suppliers by being likely unsuitable for award to a
small business due to any one or more of the following:
   (1) The diversity, size, or specialized nature of the elements of
the performance specified.
   (2) The aggregate dollar value of the anticipated award.
   (3) The geographical dispersion of the contract performance sites.

   (4) Restrictive contract requirements or any other similar
procurement strategy or factor that limits the ability of a
responsible small business to compete or otherwise participate as a
prime contractor in the procurement process. 
   (c) The director or any agency, department, board, or commission
does not facilitate or provide for small business, microbusiness, or
disabled veteran business enterprise participation within the meaning
of this chapter by awarding a contract for goods to a prime
contractor that engages a small business, microbusiness, or disabled
veteran business enterprise as a subcontractor on that contract.
 
   (c) (1) The Director of General Services may enter into a bundled
contract for goods upon the approval of the California Small Business
Advocate pursuant to the process described in this subdivision.
 
   (2) (A) To enter into a bundled contract for goods, the Director
of General Services shall first make a determination that includes
all of the following:  
   (i) The bundled contract for goods would provide measurable,
substantial benefits to the state. For purposes of this paragraph,
"measurable, substantial benefits" means the contract will provide
cost savings, improvement in quality, or a reduction in acquisition
time.  
   (ii) Alternative acquisition strategies that involve small
business participation cannot reasonably be used.  
   (iii) Sufficient administrative resources exist to adequately
oversee the bundled contract for goods.  
   (B) If the Director of General Services finds and determines that
the bundled contract for goods meets all of the requirements
described in subparagraph (A), the director shall submit a report of
its findings and determinations to the California Small Business
Advocate.  
   (3) The California Small Business Advocate shall review the
findings and determinations submitted pursuant to paragraph (2) and
determine whether or not a bundled contract for goods is appropriate
for that particular transaction. The California Small Business
Advocate shall then promptly inform the Director of General Services
of the advocate's determination regarding the contract, and whether
the director is permitted or prohibited from entering into the
bundled contract for goods. The California Small Business Advocate's
determination shall be final and binding on the director.  
   (4) The California Small Business Advocate, at the time his or her
determination is submitted to the Director of General Services
pursuant to paragraph (3), also may make other recommendations to the
director regarding any terms or conditions that might be
incorporated into the bundled contract to reduce its potential
negative impact on small business.  
   (d) The Director of General Services may enter into a bundled
contract for goods during a state of emergency as declared by the
Governor.  
   (e) This act shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.