California Senate Bill SB497 Amended / Bill

 BILL NUMBER: SB 497AMENDED BILL TEXT AMENDED IN SENATE MARCH 30, 2011 INTRODUCED BY Senator Rubio  (   Principal coauthor:   Senator   Hancock   )   (   Coauthor:   Assembly Member   Solorio   )  FEBRUARY 17, 2011 An act to add Article 7 (commencing with Section 10390) to Chapter 2 of Part 2 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST SB 497, as amended, Rubio. Public contracts:  state agencies:  bid preferences. Existing law imposes various requirements with respect to contracting by state agencies. This bill would require a state agency that accepts bids or proposals for a contract for  supplies, materials, or equipment   goods  to provide a preference of  5 percent   5%  to a California business meeting specified criteria. The bill would also require the Department of General Services to establish a process to verify that a business meets the criteria for the  5-percent   5%  preference. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) California faces the most severe economic downturn since the Great Depression. Over two million Californians are out of work and California's unemployment rate is one of the highest in the nation. (b) At a time of scarce state resources, state contracts should be used to stimulate our state economy and put people back to work. (c) The purpose of this act is to revive local communities by creating new jobs and stimulating the economy. SEC. 2. Article 7 (commencing with Section 10390) is added to Chapter 2 of Part 2 of Division 2 of the Public Contract Code, to read: Article 7. Preference for Businesses that Employ State Residents 10390. (a) Notwithstanding any other provision, any state agency that accepts bids or proposals for a contract for  supplies, materials, or equipment   goods  shall provide a preference of 5 percent to a California business, as defined in subdivision (b). The preference shall be provided as follows: (1) For solicitations to be awarded to the lowest responsible bidder meeting specifications, the preference to a California business shall be 5 percent of the bid price of the lowest responsible bidder meeting specifications. (2) For solicitations to be awarded to the highest scored bidder based on evaluation factors in addition to price, the preference to a California business shall be 5 percent of the total score of the highest responsible bidder. (3) The preferences awarded pursuant to paragraph (1) or (2) shall not be awarded to a noncompliant bidder and shall not be used to satisfy any applicable minimum requirements. (4) In order to be eligible for the 5-percent preference authorized pursuant to this section, a business shall submit all required substantiating documentation and information needed by the state agency to determine if the business is eligible for the preference. (b) For purposes of this section, "California business" means a sole proprietorship, partnership, joint venture, limited liability company, corporation, or other business entity, that holds any required business license when bids for the public contract were opened, that has its principal place of business in California, that would directly provide the  supplies, materials, or equipment,   goods  for the public contract  ,  and that certifies that at least 90 percent of the business's employees performing work on the contract are residents of this state. (c) The Department of General Services shall establish a process to verify that a business meets the criteria for the 5-percent preference.