BILL ANALYSIS �
AB 2672
Page 1
Date of Hearing: April 25, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2672 (Committee on JEDE) - As Amended: April 10, 2012
Policy Committee: JEDE Vote:4-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires a number of reports on state contracts
awarded to firms located in the state's enterprise zones.
Specifically, this bill:
1)Requires awarding state agencies to prepare a yearly report to
the Department of General Services (DGS) on the number of
businesses located in enterprise zones or in Local Agency
Military Base Realignment Areas (LAMBRAs) claiming preferences
for state contracts.
2)Requires DGS to report to the Department of Housing and
Community Development (HCD) aggregate figures on the number of
businesses located in enterprise zones or in Local Agency
Military Base Realignment Areas (LAMBRAs) claiming preferences
for state contracts.
3)Requires the Department of Personnel Administration to change
their contracts training program to address the requirements
for preference for small businesses, disabled veteran-owned
business and enterprise zone preferences.
FISCAL EFFECT
General Fund and special fund costs of approximately $100,000
annually.
COMMENTS
1)Author's purpose : The bill requires the Department of General
services to report to the Housing and Community Development
Department the participation of small businesses located in
AB 2672
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enterprise zones. The author argues that absent this change,
the public has no way of knowing how many small business
preferences are being allocated to businesses in enterprise
zones.
2)Background. The California Enterprise Zone Program and the
other geographically-targeted economic development areas are
state economic development programs. Eligibility is limited to
areas within communities that can demonstrate blighted
conditions such as high poverty or high unemployment rates.
HCD administers four of these programs including: Enterprise
Zones (EZs), Manufacturing Enhancement Areas (MEAs), Local
Agency Military Base Realignment Areas (LAMBRAs) and the
Targeted Tax Area (TTA).
AB 2672
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3)Technical Amendments .
Page 7, lines 3-7
(j) Commencing on January 1, 2013, and on January 1 of each
year thereafter, the Department of General Services shall
report to the Department of Housing and Community Development
on the number of businesses that claim enterprise zone local
agency military base recovery area preferences as identified
in this section.
Page 7, lines 19-23
(b) The training program shall address the requirements in
existing law relating to state contract administration and
management, including, but not limited to, small business
preferences, disabled veteran-owned business preferences, and
enterprise zone and local agency military base recovery area
preferences.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081