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AB-632 Small Business Procurement and Contract Act: small business and disabled veteran business enterprises.(2017-2018)

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Date Published: 03/22/2017 04:00 AM
AB632:v98#DOCUMENT

Amended  IN  Assembly  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 632


Introduced by Assembly Member Acosta
(Coauthor: Assembly Member Bigelow)(Coauthors: Assembly Members Bigelow and Mathis)

February 14, 2017


An act to amend Section 14838.5 of the Government Code, relating to small business procurement.


LEGISLATIVE COUNSEL'S DIGEST


AB 632, as amended, Acosta. Small Business Procurement and Contract Act: small business and disabled veteran business enterprise. enterprises.

Existing law

The Small Business Procurement and Contract Act requires state agencies to provide for small business preference in the award of contracts for goods, information technology, services, and construction, with a 5% bid preference on applicable bid specifications. This act also authorizes a state agency to award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than $5,000, but less than $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 2 or more certified small business, including a microbusiness, or from a disabled veterans veteran business enterprise. enterprise, without complying with specified competitive bidding requirements. Existing law requires a bidder under these provisions to submit a written declaration under penalty of perjury.
This bill would increase the value of the contract to greater than $5,000, but less than $500,000, for disabled veteran business enterprises under these provisions. The bill also would specify that a certified small business or disabled veteran business enterprise that utilizes this streamlined process as an alternative to the competitive bidding requirements cannot also receive the small business preference or the disabled veteran business enterprise participation incentive, as specified. By expanding the scope of contracts that may be awarded to a disabled veteran business enterprise under these provisions, the bill would expand the crime of perjury and impose a state-mandated local program.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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 the following:
(1) 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, as long as the agency obtains price quotations from two or more certified small businesses, including microbusinesses.
(2) Greater than five thousand dollars ($5,000), but less than five hundred thousand dollars ($500,000), to a disabled veteran business enterprise, as long as the agency obtains price quotations 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.
(d) A certified small business or disabled veteran business enterprise that utilizes the streamlined process set forth in this section shall not, on the contract value, also receive the small business preference set forth in subdivision (b) of Section 14838 or the disabled veteran business enterprise participation incentive provided in Section 999.5 of the Military and Veterans Code.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.