BILL NUMBER: SCR 59INTRODUCED BILL TEXT INTRODUCED BY Senator Cedillo SEPTEMBER 8, 2009 Relative to the American Recovery and Reinvestment Act of 2009. LEGISLATIVE COUNSEL'S DIGEST SCR 59, as introduced, Cedillo. Public contracts: The American Recovery and Reinvestment Act of 2009. This act would urge all state and local government agencies, departments, offices, and other entities responsible for the allocation and disbursement of federal American Recovery and Reinvestment Act funds for public contracts and infrastructure projects in the state, to the extent permitted under state and federal law, to ensure that Latino-owned and minority-owned small businesses receive an equal share of the available federal stimulus funds. Fiscal committee: no. WHEREAS, The economy of the United States is experiencing a recession that is causing significant unemployment and loss of income for many American families; and WHEREAS, On February 17, 2009, President Barack Obama signed the $787 billion American Recovery and Reinvestment Act of 2009 (Public Law 111-15), hereafter known as the ARRA, for the purposes of saving jobs, creating jobs, and getting our economy moving again; and WHEREAS, The ARRA appropriates funds to be used for the purposes of stimulating the economy, including, but not limited to, green job creation, broadband technology expansion, smart-energy grid construction, healthcare efficiency through technology, scientific research, tax cuts, creation of business-friendly tax incentives, infrastructure development, construction of roads, bridges, mass transit, clean water projects, expansion of unemployment benefits, and other social provisions and offers as incentives for domestic spending in education, health care, and infrastructure; and WHEREAS, Of the $787 billion provided to the states under the ARRA, $288 billion was directed at tax relief and $499 billion for spending-related incentives, including $144 billion for state and local fiscal relief, $111 billion for health care, $53 million for education and training, and $43 billion for energy; and WHEREAS, Of the $787 billion total available under the ARRA, 25% of the stimulus fund money is intended to be spent by September 2009, another 50% by September 2010, and yet another 15% by September 2011, for a projected total of 90% of the total $787 billion to be spent by September 2011; and WHEREAS, The federal stimulus package under ARRA emphasizes the need for each state to boost its economy through the initiation of a wide range of projects, recognizing the importance of providing economic stimulus opportunities to all sectors of the economy, including public and private; and WHEREAS, California has been awarded a greater share of funding under the ARRA than any other state in the nation. In this regard, California is projected to receive $95 billion, with $11 billion of that total being directed toward the state budget shortfall. On March 5, 2009, Governor Schwarzenegger reaffirmed California's commitment to use the ARRA funds to create jobs and promote economic growth; and WHEREAS, The federal government has estimated that the ARRA will create 396,000 jobs in California, and federal stimulus funds will be allocated to both state entities and local government bodies; and WHEREAS, The State of California, in order to promote economic growth to all contributing sectors of the economy, needs a comprehensive federal stimulus package that allocates a fair share of funding by stimulating a variety of the segments of the state's economy, so that all citizens of all regions of the state will benefit; and WHEREAS, Much of the economic stimulus fund money that has been distributed up to date has been directed towards departments in the state; and WHEREAS, In order for the economy to fully recover from the ground up and rebuild small communities, it is necessary for small businesses, especially Latino-owned and minority-owned small business, to overcome this recession with the help of economic stimulus funds; and WHEREAS, Governor Schwarzenegger has stated that California's economic recovery is tied directly to the success of the state's business community, particularly California's small business community; now, therefore, be it Resolved, by the Senate of the State of California, the Assembly thereof concurring, That the Legislature urges all state and local government agencies, departments, offices, and other entities that are responsible for the allocation and disbursement of federal ARRA funds for public contracts and infrastructure projects in the state, to the extent permitted by federal and state law, to ensure that Latino-owned and minority-owned small businesses in the state receive an equal share of the federal stimulus funds made available to California under the ARRA; and be it further Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.