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AB-349 Small businesses: contracting: outreach: underrepresented groups. (2021-2022)

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Date Published: 04/15/2021 09:00 PM
AB349:v98#DOCUMENT

Amended  IN  Assembly  April 15, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 349


Introduced by Assembly Member Holden

January 28, 2021


An act to add Section 14838.3 to the Government Code, and to amend Section 10140 of the Public Contract Code, and to amend Section 2032 of, and to add Section 2032.7 to, the Streets and Highways Code, relating to transportation, and making an appropriation therefor. small businesses.


LEGISLATIVE COUNSEL'S DIGEST


AB 349, as amended, Holden. Department of Transportation: Small businesses: contracting: outreach: underrepresented groups.
(1) 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.
This bill, in order to facilitate the participation of small business, would require the director and the heads of other state agencies that enter such contracts, in addition to any other applicable requirement for public notice of contracts, to publish or otherwise make available information regarding public notice of contracts, as the awarding agency determines to be appropriate, in order to ensure all communities have access to the public notice. The bill would define “publish or otherwise make available” for this purpose.

(1)

(2) Existing law creates the Department of Transportation within the Transportation Agency. Existing law requires the department to develop a detailed outreach plan intended to increase procurement opportunities for new and limited contracting small business enterprises, as defined, including, but not limited to, those owned by women, minority, disabled veterans, LGBT, LGBT individuals, and other disadvantaged groups, in all the department’s transportation programs, to undertake specified outreach activities required to be included in the plan, and to update that plan and submit it to specified entities.
Existing law requires the department to achieve a minimum percentage of certified small business participation in state-funded contracts and procurements. Existing law requires the department to take all lawful and reasonable steps to raise to 100 the disparity indices for contracts awarded under the federal Disadvantaged Business Enterprise Program (DBEP) to foster equal opportunity for firms owned by disadvantaged individuals on certain contracts and procurements and to implement the recommendations from every disparity study undertaken by the department as part of DBEP, as specified. Existing law requires the department to prepare a detailed plan that includes steps the department will take to ensure that it is in conformance with its policies to prevent discrimination or preferences in its employing practices or its practices in bidding and awarding public contracts to provide equal access to opportunities for all qualified applicants, and requires the department to report the plan and any necessary updates to the Legislature.
Existing law requires the department to give public notice of a project by publication, as specified, but allows the department to comply with this requirement by publishing the notice on its internet website. Existing law requires the department, if it publishes the notice on its internet website, to also publish information regarding notices listed on the department’s internet website in trade papers, newspapers, or magazines, as appropriate, including those whose primary audience consists of underrepresented groups, including, but not limited to, women, minorities, LGBT, LGBT individuals, and disabled veterans, as specified.
This bill would clarify that the last requirement does not affect the department’s authority to use existing resources for outreach efforts for events to promote small business enterprises, including, but not limited to, those owned by women, minorities, disabled veterans, LGBT, LGBT individuals, and other disadvantaged groups, trainings to improve diversity, materials for matchmaking events, and resources for relationship development events to achieve the outreach and participation goals described above.

(2)

Existing law creates the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. Existing law provides for the deposit of various funds, including revenues from certain fuel taxes and vehicle fees, for the program in the Road Maintenance and Rehabilitation Account. Existing law requires funds available for the program to be allocated for various specified purposes and requires the remaining funds available for the program to be continuously appropriated 50% for allocation to the Department of Transportation for maintenance of the state highway system or for the State Highway Operation and Protection Program and 50% for apportionment to cities and counties by the Controller pursuant to a specified formula.

This bill would require the department to use 12 of 1% of those funds allocated to the department to conduct outreach efforts to small business enterprises to increase their participation in contracting and procurement in the department’s transportation programs and to implement evidence-based supportive services programs to support the creation and growth of small business enterprises that contract with, or provide procurements to, the department for any of its transportation programs. By expanding the purposes for which continuously appropriated funds are required to be used, the bill would make an appropriation.

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

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


SECTION 1.

 Section 14838.3 is added to the Government Code, to read:

14838.3.
 (a) In order to facilitate the participation of small business, including microbusiness, in the provision of goods, information technology, and services to the state, and in the construction, including alteration, demolition, repair, or improvement, of state facilities, the director and the directors of other state agencies that enter those contracts, each within their respective areas of responsibility, in addition to any other applicable requirement for public notice of contracts, shall publish or otherwise make available information regarding public notice of contracts, as the awarding agency determines to be appropriate, in order to ensure all communities have access to the public notice.
(b) As used in this section, “publish or otherwise make available” includes, but is not limited to, the following:
(1) Placement of information in media, including, but not limited to, the following:
(A) General circulation newspapers, general circulation publications, and general market radio and television stations, including electronic media.
(B) Local and regional community newspapers.
(C) Newspapers, publications, and radio and television stations that provide information in languages other than English and whose primary audience is residents of minority and low-income communities.
(D) Publications, including electronic media, that are distributed to the general market and to newspapers, publications, and radio and television stations whose primary audience is composed of underrepresented groups, including, but not limited to, women, minorities, LGBT individuals, and disabled veterans.
(2) Information booths at job fairs or conferences oriented to both the general market and the economically disadvantaged, as well as those events drawing a significant participation by minorities or women.
(3) Dissemination of information to other platforms as the awarding agency deems appropriate.

SECTION 1.SEC. 2.

 Section 10140 of the Public Contract Code is amended to read:

10140.
 (a) Public notice of a project shall be given by publication once a week for at least two consecutive weeks or once a week for more than two consecutive weeks if the longer period of advertising is deemed necessary by the department, as follows:
(1) In a newspaper of general circulation published in the county in which the project is located, or if located in more than one county, in such a newspaper in a county in which a major portion of the work is to be done.
(2) In a trade paper of general circulation published in San Francisco for projects located in County Group No. 1, as defined in Section 187 of the Streets and Highways Code, or in Los Angeles for projects located in County Group No. 2, as defined in Section 187 of the Streets and Highways Code, devoted primarily to the dissemination of contract and building news among contracting and building materials supply firms.
(b) The department may publish the notice to bidders for a project in additional trade papers or newspapers of general circulation that it deems advisable.
(c) (1) In the case of the Department of Transportation, instead of the public notice described in subdivision (a), the public notice requirement of this section may instead be met by publishing the public notice electronically on that department’s internet website.
(2) If the department Department of Transportation exercises its authority under paragraph (1), the department Department of Transportation shall also publish information regarding notices listed on the department’s Department of Transportation’s internet website in trade papers, newspapers, or magazines, as appropriate in order to ensure all communities have access to the public notice, including those publications whose primary audience consists of underrepresented groups, including, but not limited to, women, minorities, LGBT, LGBT individuals, and disabled veterans, pursuant to the frequency requirements specified in subdivision (a). This requirement does not affect the authority of the department Department of Transportation to use existing resources for outreach efforts for events to promote small business enterprises, including, but not limited to, those owned by women, minorities, disabled veterans, LGBT, LGBT individuals, and other disadvantaged groups, trainings to improve diversity, materials for matchmaking events, and resources for relationship development events to achieve goals established by Sections 14110.1 to 14110.4, inclusive, of the Government Code.

SEC. 2.Section 2032 of the Streets and Highways Code is amended to read:
2032.

(a)(1)After deducting the amounts appropriated in the annual Budget Act, as provided in Section 2031.5, two hundred million dollars ($200,000,000) of the remaining revenues deposited in the Road Maintenance and Rehabilitation Account shall be set aside annually for local or regional transportation agencies that have sought and received voter approval of taxes or that have imposed fees, including uniform developer fees as defined by subdivision (b) of Section 8879.67 of the Government Code, which taxes or fees are dedicated solely to transportation improvements. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, the Controller shall set aside one-eighth of this amount, to accumulate a total of two hundred million dollars ($200,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(2)Eligible projects under this subdivision include, but are not limited to, sound walls for a freeway that was built before 1987 without sound walls and with or without high-occupancy vehicle lanes if the completion of the sound walls has been deferred due to lack of available funding for at least 20 years and a noise barrier scope summary report has been completed within the last 20 years.

(3)Notwithstanding Section 13340 of the Government Code, the funds available under this subdivision in each fiscal year are hereby continuously appropriated for allocation by the commission for road maintenance and rehabilitation and other transportation improvement projects pursuant to Section 2033.

(b)After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amount allocated in subdivision (a), beginning in the 2017–18 fiscal year, one hundred million dollars ($100,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, on the Active Transportation Program established pursuant to Chapter 8 (commencing with Section 2380) to be allocated by the California Transportation Commission pursuant to Section 2381. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of one hundred million dollars ($100,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(c)After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) and (b), beginning in the 2017–18 fiscal year, four hundred million dollars ($400,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for bridge and culvert maintenance and rehabilitation. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of four hundred million dollars ($400,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(d)After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (c), inclusive, beginning in the 2017–18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be transferred annually to the State Highway Account for expenditure, upon appropriation by the Legislature, to supplement the freeway service patrol program. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(e)After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (d), inclusive, in the 2017–18 to 2021–22 fiscal years, inclusive, from revenues in the Road Maintenance and Rehabilitation Account that are not subject to Article XIX of the California Constitution, five million dollars ($5,000,000) shall be appropriated in each fiscal year to the California Workforce Development Board to assist local agencies to implement policies to promote preapprenticeship training programs to carry out the projects that are funded by the account pursuant to Section 2038. Funds appropriated pursuant to this subdivision in the Budget Act but remaining unexpended at the end of each applicable fiscal year shall be reappropriated for the same purposes in the following year’s Budget Act, but all funds appropriated or reappropriated pursuant to this subdivision in the Budget Act shall be liquidated no later than June 30, 2027.

(f)After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (e), inclusive, beginning in the 2017–18 fiscal year, twenty-five million dollars ($25,000,000) of the remaining revenues shall be available annually for expenditure, upon appropriation by the Legislature, by the department for local planning grants, as described in Section 2033.5. The Controller shall each month set aside one-twelfth of this amount, except in the 2017–18 fiscal year, when the Controller shall set aside one-eighth of this amount, to accumulate a total of twenty-five million dollars ($25,000,000) in each fiscal year. The Controller may adjust the amount in the final month or months of each fiscal year if necessary to achieve the annual amount specified in this subdivision.

(g)After deducting the amounts appropriated in the annual Budget Act pursuant to Section 2031.5 and the amounts allocated in subdivisions (a) to (f), inclusive, beginning in the 2017–18 fiscal year and each fiscal year thereafter, from the remaining revenues, five million dollars ($5,000,000) shall be available, upon appropriation, to the University of California for the purpose of conducting transportation research and two million dollars ($2,000,000) shall be available, upon appropriation, to the California State University for purposes of conducting transportation research and transportation-related workforce education, training, and development. Before the start of each fiscal year, the Secretary of Transportation and the Chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation and Housing may set out a recommended priority list of research components to be addressed in the upcoming fiscal year.

(h)Notwithstanding Section 13340 of the Government Code, the balance of the revenues deposited in the Road Maintenance and Rehabilitation Account are hereby continuously appropriated as follows:

(1)Fifty percent for allocation to the department for maintenance of the state highway system or for purposes of the State Highway Operation and Protection Program and for the purposes, and in the amounts, specified in Section 2032.7.

(2)Fifty percent for apportionment to cities and counties by the Controller pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103 for the purposes authorized by this chapter.

SEC. 3.Section 2032.7 is added to the Streets and Highways Code, to read:
2032.7.

The department shall use one-half of 1 percent of the revenues annually allocated pursuant to paragraph (1) of subdivision (h) of Section 2032 to do both of the following:

(a)Conduct outreach efforts to small business enterprises to increase their participation in contracting and procurement in the department’s transportation programs.

(b)Implement evidence-based supportive services programs to support the creation and growth of small business enterprises that contract with, or provide procurements to, the department for any of its transportation programs.