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AB-3236 Public contracts: Small Business Procurement and Contract Act.(2023-2024)



Current Version: 02/16/24 - Introduced

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AB3236:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 3236

Introduced by Assembly Member Hoover

February 16, 2024

An act to amend Section 14838.5 of the Government Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 3236, as introduced, Hoover. Public contracts: Small Business Procurement and Contract Act.
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 $250,000 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 a contract awarded pursuant to the act from $250,000 to $500,000.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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), five hundred thousand dollars ($500,000), 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.