BILL NUMBER: AB 1783	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 28, 2012
	PASSED THE ASSEMBLY  MAY 3, 2012
	AMENDED IN ASSEMBLY  APRIL 10, 2012

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 21, 2012

   An act to amend Section 14839.1 of the Government Code, and to
amend Section 2002 of the Public Contract Code, relating to public
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1783, Perea. Public contracts: small business preferences.
   Existing law requires state agencies to give small businesses a 5%
preference in contracts for construction, the procurement of goods,
or the delivery of services, establishes a procedure by which a
business can be certified as a small business by the Department of
General Services for the purposes of these preferences, and specifies
that a business that has been certified by, or on behalf of, another
governmental entity may be eligible for certification as a small
business if the certifying entity uses substantially the same or more
stringent definitions as those set forth in existing law, as
provided.
   This bill would revise the small business certification procedure
to provide that the Department of General Services has the sole
responsibility for certifying and determining eligibility of small
businesses and would provide that local agencies have access to the
department's list of certified small businesses.
   Existing law also authorizes a local agency to provide for a small
business preference in construction, the procurement of goods, or
the delivery of services, and to establish a subcontracting
participation goal for small businesses on contracts with a
preference for those bidders who meet the goal. Existing law
authorizes each local agency to define a small business for the
purposes of these preferences and goals.
   This bill would include a certified small business, certified at
the state level, as a small business for local preference and goal
purposes and would authorize a local agency to set additional
guidelines for local preference purposes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14839.1 of the Government Code is amended to
read:
   14839.1.  (a) The department shall have sole responsibility for
certifying and determining the eligibility of small businesses and
microbusinesses under this chapter.
   (b) Local agencies shall have access to the department's list of
certified small businesses on the department's Internet Web site,
which is available to the public, for use as a reference guide to
confirm a small business certification.
  SEC. 2.  Section 2002 of the Public Contract Code is amended to
read:
   2002.  (a) Notwithstanding any other provision of law requiring a
local agency to award contracts to the lowest responsible bidder, any
local agency may do any of the following in facilitating contract
awards to small businesses:
   (1) Provide for a small business preference in construction, the
procurement of goods, or the delivery of services where
responsibility and quality are equal. The preference to a small
business shall be up to 5 percent of the lowest responsible bidder
meeting specifications.
   (2) Establish a subcontracting participation goal for small
businesses on contracts and grant a preference, up to a maximum of 5
percent, to those bidders who meet the goal.
   (3) Require bidders to make good faith efforts to meet a
subcontracting participation goal for small business contracts.
Bidders that fail to meet the goal shall demonstrate that they made
good faith efforts to utilize small business contractors.
   (4) Set additional guidelines for local preference purposes.
   (b) The term "small business," as used in this section, shall be
defined by each local agency.
   (c) Notwithstanding subdivision (b), "small business" shall
include a small business enterprise certified pursuant to Article 1
(commencing with Section 14835) of Chapter 6.5 of Part 5.5 of
Division 3 of Title 2 of the Government Code.