BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2630
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2630 (Hueso) - As Amended:  April 10, 2012 

          Policy Committee:                              JEDE Vote:4-2

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Department of General Services (DGS) to 
          include the activities each state agency used to inform small 
          businesses of contracting preferences and the total number of 
          preferences claimed in bids for the year in its annual 
          contracting report.

           FISCAL EFFECT  

          General Fund and special fund costs of approximately $100,000 
          annually.

           COMMENTS  

           1)Purpose of this bill  .  According to the author, the 
            Legislature has created incentives to promote and encourage 
            small business in this state through the creation of various 
            programs, including preferences on bidding for state 
            contracts.  However, the author argues the benefits of these 
            current programs are limited to businesses that are aware of 
            them and know how to navigate the programs and utilize them.  
            The author concludes it is in the state's best interest to 
            inform businesses of the many tools already provided to them 
            that are intended to promote employment and growth.  
           
           2)Background  .  The Small Business Act (SBA), administered 
            through DGS, was implemented more than 30 years ago to 
            establish a small business preference within the state's 
            procurement process.  The goal of these preferences is to 
            increase the number of contracts between the state and small 
            businesses.  In 1989, a disabled veteran owned business 
            enterprise (DVBE) component was added to state procurement 








                                                                  AB 2630
                                                                  Page  2

            practices.
             
             Current law requires DGS to prepare an annual report on state 
            contracting.  The requirements include specific information 
            about the participation levels of small businesses in state 
            contracts.

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081