Sacramento - Last week, two significant bills authored by Assemblymember Curren Price (D- Inglewood) passed out the California State Assembly Committee on Jobs, Economic Development, and the Economy: AB 2376 and AB 2773.  In his capacity as Chair of the Assembly Select Committee on Procurement, Assemblymember Price has made progressive strides to advance small business procurement.

Existing law establishes the Office of Small Business Advocate and specifies the duties and functions of the office.  AB 2376 will require the Department of Transportation, in consultation with the Office of Small Business Advocate, to establish by June 1, 2009 a Small and Emerging Contractor Technical Assistance Program.  The program will provide training and technical assistance for small contractors to improve their ability to secure surety bond guarantees offered by the federal Small Business Administration, that are necessary to qualify for public works construction projects.  

While AB 2376 will allow for the easier acquisition of surety bonds by small businesses, AB 2773 authorizes departments to use the Small Business/DVBE Option for contracts up to $250,000.  This bill will more than double the existing contract minimum of $100,000.  The State of California has historically set a goal of having 25 percent of State contracting dollars go to small businesses and 3 percent go to DVBEs.  Although the State achieved its small business goal in 2006-07, it has historically struggled to achieve their small business and DVBE goals.  As the State begins to award contracts funded through the 2006 infrastructure bonds, it is important to ensure that contracting officials have the tools they need to promote robust small business and DVBE participation in those projects.

In order to increase small and emerging contractor participation rates in public works contracting, and to satisfy state small business contracting participation goals and federal goals for participation of minority-owned, women-owned, and disadvantaged business enterprises, it is in the state’s interest to develop programs to provide small and emerging contractors with technical assistance that will give them the knowledge and skills to overcome barriers to securing surety bonds and purchasing liability insurance.

“Policy makers must work together to pass legislation that supports the advancement of small business contractors,” said Assemblymember Price. “It is imperative that the law promotes a level playing field for businesses of all sizes.”