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AB-2762 Public contracts: disabled veteran business enterprises: local small business enterprises: social enterprises.(2017-2018)

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Date Published: 03/23/2018 04:00 AM
AB2762:v98#DOCUMENT

Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2762


Introduced by Assembly Members Carrillo and Muratsuchi

February 16, 2018


An act to amend Section 2002 of the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 2762, as amended, Carrillo. Public contracts: disabled veteran business enterprises: local small business enterprises: social enterprises.
Existing law authorizes a local agency in facilitating contract awards to small businesses to provide for a small business preference of 5% in construction, the procurement of goods, or the delivery of services, and establishes a subcontracting participation goal for small businesses on contracts with a 5% preference for those bidders who meet the goal. Existing law authorizes each local agency to define a small business for the purposes of these preferences and goals.
This bill would expand this preference to disabled veteran businesses and social enterprises, as defined, and would increase the preferences to 15%. The bill would also authorize each local agency to define a disabled veteran business and social enterprise for the purposes of these preferences and goals.

Existing law establishes the California Disabled Veteran Business Enterprise Program to address the special needs of disabled veterans by assisting state procurement authorities in meeting or exceeding the disabled veteran enterprise participation goal of 3% of total contract value for procurement contracts.

Existing law, the Small Business Procurement and Contract Act, grants a specified preference for small businesses and microbusinesses in the award of a contract for goods, services, or information technology to the state and in the construction of state facilities.

This bill would state the intent of the Legislature to enact legislation pertaining to contracting opportunities for disabled veteran business enterprises, local small business enterprises, and social enterprises.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 2002 of the Public Contract Code is amended to read:

2002.
 (a) Notwithstanding any other provision of law requiring a local agency to award contracts to the lowest responsible bidder, any local agency may do any of the following in facilitating contract awards to small businesses: businesses, disabled veteran businesses, or social enterprises:
(1) Provide for a small business business, disabled veteran business, or social enterprise preference in construction, the procurement of goods, or the delivery of services where responsibility and quality are equal. The preference to a small business these businesses shall be up to 5 15 percent of the lowest responsible bidder meeting specifications.
(2) Establish a subcontracting participation goal for small businesses businesses, disabled veteran businesses, or social enterprises on contracts and grant a preference, up to a maximum of 5 15 percent, to those bidders who meet the goal.
(3) Require bidders to make good faith efforts to meet a subcontracting participation goal for small business business, disabled veteran business, or social enterprise contracts. Bidders that fail to meet the goal shall demonstrate that they made good faith efforts to utilize small business contractors.
(4) Set additional guidelines for local preference purposes.
(b) The term “small business,” terms “small business,” “disabled veteran business,” and “social enterprise,” as used in this section, shall be defined by each local agency.
(c) Notwithstanding subdivision (b), “small for the purposes of this section:
(1) “Small business” shall include a small business enterprise certified pursuant to Article 1 (commencing with Section 14835) of Chapter 6.5 of Part 5.5 of Division 3 of Title 2 of the Government Code.
(2) “Disabled veteran business” includes a disabled veteran business enterprise certified pursuant to Article 6 (commencing with Section 999) of Chapter 6 of Division 4 of the Military and Veterans Code.
(3) “Social enterprise” includes a nonprofit or for profit business whose primary purpose is to benefit the economic, environmental, or social health of the community and which uses the methods and disciplines of business and the power of the marketplace to advance its social, environmental, and human justice agendas, wherein the organization applies commercial strategies to maximize improvements in human and environmental well-being that may include maximizing social impact rather than profits for external shareholders. Social enterprise shall include a business that has been in operation for at least one year providing transitional or permanent employment to a transitional workforce or providing social, environmental, or human justice services. “Social enterprise” shall also include a social enterprise certified by the administering local agency.
(4) “Transitional employment” means short-term or long-term, wage-paying, subsidized or nonsubsidized employment that combines real work, skill development, and supportive services to help a traditional workforce overcome barriers to employment and transition to unsubsidized competitive employment.
(5) “Transitional workforce” means underemployed or hard-to-employ persons who may be homeless, formerly incarcerated, or who either have not worked for an extended period of time or face significant barriers to employment, where applicable.

SECTION 1.

It is the intent of the Legislature to enact legislation pertaining to contracting opportunities for disabled veteran business enterprises, local small business enterprises, and social enterprises.