BILL ANALYSIS
GOVERNMENT MODERNIZATION, EFFICIENCY AND ACCOUNTABILITY
Senator Liz Figueroa, Chair
2005-2006 Regular Session
AB 348 A
Assembly Member Arambula B
Version: April 12, 2005
Hearing Date: June 15, 2005 3
4
Consultant: Vincent D. Marchand 8
SUBJECT : Small business certification and reciprocity
program.
SUMMARY : Adds to the duties of the Office of Small
Business and Disabled Veteran Business Enterprise Services
(Office) by requiring the Office to make efforts to develop
a core statewide small business certification application
that may be adopted by local governments and special
districts, and permits the Department of General Services
(DGS) to accept a local agency's certification of a small
business if it determines that the local agency has applied
certification criteria and review processes that are
substantially the same as those applied by DGS.
EXISTING LAW :
1)Establishes the Office of Small Business and Disabled
Veteran Business Enterprise Services (Office) within DGS,
charged with the following duties:
a) Compiling and maintaining a comprehensive bidders
list of qualified small businesses and disabled
veteran business enterprises, and noting which small
businesses also qualify as microbusinesses;
b) Coordinating with the Federal Small Business
Administration, the Minority Business Development
Agency, and the Office of Small Business Development
of the Department of Economic and Business
Development;
(more)
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c) Providing technical and managerial aids to small
businesses, microbusinesses, and disabled veteran
business enterprises, by conducting workshops on
matters in connection with government procurement and
contracting;
d) Assisting small businesses, microbusinesses, and
disabled veteran business enterprises, in complying
with the procedures for bidding on state contracts;
e) Working with appropriate state, federal, local, and
private organizations and business enterprises in
disseminating information on bidding procedures and
opportunities available to small businesses,
microbusinesses, and disabled veteran business
enterprises;
f) 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; and,
g) Developing, by regulation, other programs and
practices that are reasonably necessary to aid and
protect the interest of small businesses,
microbusinesses, and disabled veteran business
enterprises in contracting with the state;
2)Defines "small business" as an independently owned and
operated business that is not dominant in its field of
operation, the principal office of which is located in
California, the officers of which are domiciled in
California, and that, together with affiliates, has 100
or fewer employees, and average annual gross receipts of
$10 million or less over the previous three years, or is
a manufacturer, as defined, with 100 or fewer employees.
3)Defines "microbusiness" as a small business that,
together with affiliates, has average gross receipts of
$2,500,000 or less over the previous three years, or is a
manufacturer with 25 or fewer employees.
THIS BILL:
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1)Requires the duties of the Office to include, in addition
to its existing duties, making efforts to develop, in
cooperation with associations representing counties,
cities, and special districts, a core statewide small
business certification application that may be adopted by
all participating entities, with any supplemental
provisions to be added as necessary by the respective
entities.
2)Permits DGS, notwithstanding a provision of law requiring
DGS to have sole responsibility for certifying and
determining the eligibility of small businesses, to
accept certification of a small business made by a local
agency if it determines that the local agency has applied
certification criteria and review processes that are
substantially the same as those applied by DGS.
FISCAL EFFECT : Unknown.
COMMENTS :
1)Purpose of the bill. According to the author, many small
businesses that would otherwise be eligible to contract
with the state do not apply for small business
certifications because it is too time consuming and labor
intensive. The author states that California lacks a
simplified certification application form for
microbusinesses and sole proprietorships. The author
states that this bill authorizes DGS to accept a small
business certification provided by a local agency if it
determines that the local agency has applied
certification criteria that are substantially the same as
those applied by DGS.
2)Related Legislation. SB 115 (Florez), previously
approved by this committee and pending in the Assembly,
makes various changes to the Disabled Veteran Business
Enterprise Program (DVBE Program), including requiring
the DGS to establish a DVBE participation incentive to
bidders that would be mandatory for all state agencies,
and requiring the Department of Veterans Affairs to
establish a method of monitoring adherence to the DVBE
participation goals. SB 115 is pending in the Assembly.
Support:
AB 348
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California Association of Collectors
California Business Network
California Chamber of Commerce
California Small Business Association
California State Controller
Consulting Engineers and Land Surveyors of California
Economic Development Corporation of Fresno County
Lumber Association of California and Nevada
National Federation of Independent Business
Opposition:
None on file
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