BILL NUMBER: AB 31	CHAPTERED
	BILL TEXT

	CHAPTER  212
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2009
	APPROVED BY GOVERNOR  OCTOBER 11, 2009
	PASSED THE SENATE  AUGUST 24, 2009
	PASSED THE ASSEMBLY  AUGUST 27, 2009
	AMENDED IN SENATE  JULY 16, 2009

INTRODUCED BY   Assembly Member Price
   (Coauthor: Senator Denham)

                        DECEMBER 1, 2008

   An act to amend Section 14838.5 of, and to add Section 14841 to,
the Government Code, and to amend Section 10105 of the Public
Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 31, Price. Public contracts: Small Business Procurement and
Contract Act.
   (1) The Small Business Procurement and Contract Act permits a
state agency to award a contract for goods, services, or information
technology with a value of between $5,000 and $100,000 to a certified
small business, including a microbusiness and a disabled veteran
business enterprise, without complying with specified competitive
bidding requirements.
   This bill would increase the maximum amount of the contract from
$100,000 to $250,000.
   (2) Existing law encourages state agencies that enter into
contracts to establish goals to facilitate the participation of small
businesses and disabled veteran business enterprises.
   This bill also would require the contractor, upon completion of a
public contract for which a commitment to achieve small business or
disabled veteran business enterprise participation goals was made, to
report the actual percentage of small business and disabled veteran
business enterprise participation that was achieved.
   (3) The State Contract Act governs contracting between state
agencies and private contractors, and sets forth requirements for the
bidding, awarding, and overseeing of contracts for projects, which
it defines to include the construction or other improvement to a
state structure or building with a total cost threshold equal to
$100,000 for calendar year 1993, as adjusted every 2 years.
   This bill would instead establish a 2010 cost threshold at
$250,000, which would be adjusted every 2 years.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14838.5 of the Government Code is amended to
read:
   14838.5.  (a) Notwithstanding the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this part and Chapter 2 (commencing with Section 10290) and Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, a state agency may award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than five thousand dollars ($5,000), but
less than two hundred fifty thousand dollars ($250,000), to a
certified small business, including a microbusiness, or to a disabled
veteran business enterprise, as long as the agency obtains price
quotations from two or more certified small businesses, including
microbusinesses, or from two or more disabled veterans business
enterprises.
   (b) In carrying out subdivision (a), a state agency shall consider
a responsive offer timely received from a responsible certified
small business, including a microbusiness, or from a disabled veteran
business enterprise.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the acquisition of goods, services, or
information technology, or a greater amount as administratively
established by the director, a state agency shall obtain at least two
price quotations from responsible suppliers whenever there is reason
to believe a response from a single source is not a fair and
reasonable price.
  SEC. 2.  Section 14841 is added to the Government Code, to read:
   14841.  Upon completion of a public contract for which a
commitment to achieve small business or disabled veteran business
enterprise participation goals was made, the contractor shall report
to the awarding department the actual percentage of small business
and disabled veteran business enterprise participation that was
achieved.
  SEC. 3.  Section 10105 of the Public Contract Code is amended to
read:
   10105.  (a) As used in this part, "project" includes the erection,
construction, alteration, repair or improvement of any state
structure, building, road, or other state improvement of any kind
that will exceed a total cost calculated pursuant to subdivision (b).

   (b) The total cost limit for calendar year 2010 shall be two
hundred fifty thousand dollars ($250,000), and at two year intervals
thereafter, the total cost limit shall be adjusted upward or downward
by the Director of Finance to reflect the percentage change in the
annual California Construction Index as used by the Department of
General Services. The amount shall be rounded off to the nearest one
thousand dollar ($1,000) figure.