AB 915

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 disadvantaged business enterprises are effectively involved and benefiting from the procurement process of the agency. The bill would require the action plan and policy to be submitted to the agency secretary, department director, or executive officer by January 1, 2023, and would require adoption of that plan by January 1, 2024. (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, disadvantaged business enterprises, and disabled veteran business enterprises, as well as compliance and implementation of specified action plans and policies by state agency liaisons and advocates. 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 and disadvantaged 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. (4) The Small Business Procurement and Contract Act 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. Existing law defines a "small business" for these purposes as, among other things, an independently owned and operated business that is not dominant in its field of operation that, commencing January 1, 2019, has average annual gross receipts of $15 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law also defines a "microbusiness" as a small business which, together with affiliates, has average annual gross receipts of, commencing January 1, 2019, $5 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law requires the director to conduct a biennial review of those average annual gross receipt levels and authorizes the director to adjust the average annual gross receipts threshold to reflect changes in the California Consumer Price Index, as specified. This bill would require the director to communicate and coordinate with the Small Business Advocate to execute this biennial review. The bill would, for purposes of the act, define "disadvantaged business enterprises" to mean "socially and economically disadvantaged individuals," as described by federal law. Existing law requires the directors of the Department of General Services and other state agencies that enter into contracts concerning the provision of goods, information technology, services, and construction of state facilities, to establish goals for the extent of participation of small businesses, including microbusinesses, for those contracts. This bill would instead require those directors to establish a minimum goal of 25% procurement participation for small businesses, including microbusinesses. Existing law also requires the directors of the Department of General Services and other state agencies that enter into contracts for the provision of goods, information technology, services to the state, and construction of state facilities, to provide for a small business preference, in the award of contracts, in solicitations where an award is to be made to the lowest responsible bidder meeting specifications, with the amount being 5% of the lowest responsible bidder meeting specifications. This bill, with respect to public works contracts, would also require a preference for disadvantaged business enterprises, which would be a separate 5% of the lowest responsible bidder meeting specifications. Existing law further requires a small business or microbusiness preference, in solicitations where an award is to be made to the highest scored bidder based on evaluation factors in addition to price, in an amount of 5% of the highest responsible bidders score. This bill, with respect to public works contracts, would also require a preference to disadvantaged business enterprises, which would be a separate 5% of the highest responsible bidder's total score. Existing law, notwithstanding specified advertising and bidding provisions, authorizes a state agency to award a contract for construction or other state improvement of any kind with an estimated value of greater than $5,000 but less than a specified cost limit, to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, so long as the agency obtains written bid submittals from 2 or more certified small businesses or disabled veteran business enterprises. This bill would expand that provision to include, among those businesses to which this type of contract may be awarded, a disadvantaged business enterprise, so long as the agency obtains written bid submittals from 2 or more of the above-described businesses. (5) Existing law establishes the Office of Small Business and Disabled Veteran Business Enterprise Services within the Department of General Services 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 disadvantaged business enterprises. Existing law requires the department, during the process of certifying and determining the eligibility of a small business or a disabled veteran business enterprise, to require the applicant or certified firm to submit a written declaration, under penalty of perjury, that the information submitted to the department pursuant to specified law is true and correct. This bill would require the department to establish a fast track small business certification process for business enterprises that hold relevant federal certifications. By expanding the crime of perjury, the bill would create a state-mandated local program. The bill would also permit the Department of General Services to apply relevant federal certifications for the business categories and in its delineated procurement authority to other state agencies. (6) The Small Business Procurement and Contract Act requires the department to make rules and regulations for the purpose of carrying into effect the act. 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, and to include department actions in the department's consolidated annual report. (7) Existing law, the State Contract Act, requires the Department of General Services to make available a report on contracting activity containing specified information, including a list of consulting services contracts the state has entered into during the previous fiscal year and the level of participation of business enterprises, as specified. This bill would also require the report to include the level of participation, by agency, of dual certified small business and disadvantaged business enterprises in statewide contracts, including dollar values of contract awards for specified categories. The bill would include related legislative findings. 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.