AB 2019

Bill Subjects

Abstract

(1) Existing law requires each state agency that significantly regulates or impacts small business to designate at least one person to serve as a small business liaison for the agency. Existing law requires the small business liaison to be responsible for, among other things, receiving and responding to complaints received by the agency from small businesses and assisting in ensuring that the procurement and contracting processes of the entity are administered in order to meet or exceed the goal of 25% small business participation. This bill would also require the small business liaison to develop an "economic equity first" action plan and policy for the agency to provide, among other things, direction, recommendations, and strategies as to how to ensure that small businesses, as specified, are effectively involved and benefiting from the agency's procurement process. The bill would require the action plan and policy to be adopted by January 1, 2024. The bill would require the action plan to include, as part of a general outreach effort to all small businesses, education, outreach, and stakeholder engagement with representative business organizations and business enterprises owned by women, minorities, and members of the LGBTQ community. (2) Existing law establishes the Office of Small Business Advocate within the Governor's Office of Business and Economic Development, also known as GO-Biz, and prescribes the duties and functions of the Small Business Advocate, who is also the Director of the Office of Small Business Advocate. Existing law requires the advocate to prepare and submit a written annual report to the Governor and the Legislature that describes the activities and recommendations of the office, including an evaluation of the efforts of state agencies and, where appropriate, specific departments, that significantly regulate small businesses to assist minority and other small business enterprises, and make appropriate recommendations to assist the development of these enterprises. This bill would require the annual report to also include details regarding the office's activities to support procurement participation by small businesses, microbusinesses, disabled veteran business enterprises, and businesses owned by women, minorities, or members of the LGBTQ community that also qualify as a small business, microbusiness, or disabled veteran business enterprise, as well as compliance and implementation of specified action plans and policies by state agency liaisons and advocates. The bill would require each state agency to provide information regarding its activities to the advocate upon request. Existing law requires the advocate to post certain information on the GO-Biz or the advocate's internet website, including how to receive assistance in certifying as a small business and identifying and participating in state procurement opportunities. This bill would require the above-described information, and also information in receiving assistance in certifying as a disabled veteran business enterprise, to be easily accessible from the homepage of the Go-Biz internet website. (3) Existing law, the Small Business Procurement and Contract Act, declares that it is essential that opportunity is provided for full participation in our free enterprise system by small business enterprises. This bill would also declare that the state economy is strengthened by the diversity and resiliency of its small businesses and that it is essential to ensure all small businesses are able to fully participate in the domestic and global markets, including businesses owned by women and other specified groups. Existing law requires the Director of General Services and the heads of other state agencies that enter into contracts for the acquisition of goods, services, and information technology and for the construction of state facilities to establish goals for the participation of small businesses and microbusinesses in these contracts, to provide for a small business preference in the award of these contracts, to give special consideration and special assistance to small businesses, and, whenever possible, to make awards to small businesses, as specified. This bill would instead require those directors to establish a minimum goal of 25% procurement participation for small businesses, including microbusinesses. Existing law, requires the department to make rules and regulations for the purpose of administering these provisions. This bill would require the department to consider appropriate remedial actions to be taken in regards to mandatory reporting agencies that failed in 3 out of 5 years to meet their small business or disabled veteran business enterprise goals. The bill would require the department to set forth the department's actions in its consolidated annual report. This bill would require the department to contract for a statewide procurement and contracting disparity study, in order to guide outreach strategies, state government program development, and improvements to contracting policies. The bill would require the department to post the report, with prescribed content, to its internet website on or before January 1, 2025. (4) Existing law establishes the Office of Small Business and Disabled Veteran Business Enterprise Services within the department and charges it with specified duties, including making recommendations to the department and other state agencies for simplification of specifications and terms in order to increase the opportunities for small business, microbusiness, and disabled veteran business enterprise participation. This bill would include, with those recommendations, simplification of specifications and terms in order to increase opportunities for minority-owned business, women-owned business, and LGBTQ-owned business. The bill would add duties for the office of marketing the benefits and availability of state small business certification to businesses that currently hold a federal certification as a disadvantaged business enterprise and making available the option for an applicant or certified firm to voluntarily identify that the business is at least 51% owned by, and whose management and daily operations are controlled by, individuals who identify as one of specified categories. This bill would require the department to make available the option for an applicant or certified firm to voluntarily identify that the business is at least 51% owned by, and whose management and daily operations are controlled by, individuals who identify as one of specified categories. By expanding the crime of perjury, the bill would create a state-mandated local program. This bill would state that its provisions are severable. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.