BILL NUMBER: SB 497	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 30, 2011

INTRODUCED BY   Senator Rubio
    (   Principal coauthor:   Senator 
 Hancock   ) 
    (   Coauthor:   Assembly Member  
Solorio   ) 

                        FEBRUARY 17, 2011

   An act to add Article 7 (commencing with Section 10390) to Chapter
2 of Part 2 of Division 2 of the Public Contract Code, relating to
public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 497, as amended, Rubio. Public contracts:  state agencies:
 bid preferences.
   Existing law imposes various requirements with respect to
contracting by state agencies.
   This bill would require a state agency that accepts bids or
proposals for a contract for  supplies, materials, or
equipment   goods  to provide a preference of
 5 percent   5%  to a California business
meeting specified criteria. The bill would also require the
Department of General Services to establish a process to verify that
a business meets the criteria for the  5-percent 
 5%  preference.
   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.  The Legislature finds and declares all of the
following:
   (a) California faces the most severe economic downturn since the
Great Depression. Over two million Californians are out of work and
California's unemployment rate is one of the highest in the nation.
   (b) At a time of scarce state resources, state contracts should be
used to stimulate our state economy and put people back to work.
   (c) The purpose of this act is to revive local communities by
creating new jobs and stimulating the economy.
  SEC. 2.  Article 7 (commencing with Section 10390) is added to
Chapter 2 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 7.  Preference for Businesses that Employ State
Residents


   10390.  (a) Notwithstanding any other provision, any state agency
that accepts bids or proposals for a contract for  supplies,
materials, or equipment   goods  shall provide a
preference of 5 percent to a California business, as defined in
subdivision (b). The preference shall be provided as follows:
   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a California
business shall be 5 percent of the bid price of the lowest
responsible bidder meeting specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
California business shall be 5 percent of the total score of the
highest responsible bidder.
   (3) The preferences awarded pursuant to paragraph (1) or (2) shall
not be awarded to a noncompliant bidder and shall not be used to
satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent preference
authorized pursuant to this section, a business shall submit all
required substantiating documentation and information needed by the
state agency to determine if the business is eligible for the
preference.
   (b) For purposes of this section, "California business" means a
sole proprietorship, partnership, joint venture, limited liability
company, corporation, or other business entity, that holds any
required business license when bids for the public contract were
opened, that has its principal place of business in California, that
would directly provide the  supplies, materials, or
equipment,   goods  for the public contract  ,
 and that certifies that at least 90 percent of the business's
employees performing work on the contract are residents of this
state.
   (c) The Department of General Services shall establish a process
to verify that a business meets the criteria for the 5-percent
preference.