20250SB__007098AMD INTRODUCED 2025-01-14 AMENDED_SENATE 2025-03-03 REVISED 2025-07-08 2025 SB AMD Introduced by Senator Seyarto (Coauthors: Senators Alvarado-Gil, Choi, Dahle, Niello, Ochoa Bogh, and Valladares) (Coauthors: Assembly Members Alanis, Chen, Hadwick, Sanchez, Tangipa, and Wallis) LEAD_AUTHOR SENATE Seyarto COAUTHOR SENATE Alvarado-Gil COAUTHOR SENATE Choi COAUTHOR SENATE Dahle COAUTHOR SENATE Niello COAUTHOR SENATE Ochoa Bogh COAUTHOR SENATE Valladares COAUTHOR ASSEMBLY Alanis COAUTHOR ASSEMBLY Chen COAUTHOR ASSEMBLY Hadwick COAUTHOR ASSEMBLY Sanchez COAUTHOR ASSEMBLY Tangipa COAUTHOR ASSEMBLY Wallis

An act to amend Sections 14838.5 and 14838.64 of the Government Code, relating to public contracts. public contracts Public contracts: Small Business Procurement and Contract Act. The Small Business Procurement and Contract Act permits a state agency or the California State University to award a contract for goods, services, or information technology with an estimated value 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 estimated value of a contract for goods, services, or information technology awarded pursuant to the act from $250,000 to $350,000. Commencing January 1, 2028, and biennially thereafter, the bill would require the Director of General Services to conduct a review of that maximum value, and would authorize the director to adjust that value to reflect changes in the California Consumer Price Index. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 14838.5 of the Government Code is amended to read: 14838.5. (a)

(1) 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 of Division 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 three hundred fifty thousand dollars ($350,000), 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.

(2) Commencing January 1, 2028, and biennially thereafter, the Director of General Services shall conduct a review of the maximum estimated contract value specified in this subdivision and may adjust that value to reflect changes in the California Consumer Price Index. (

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.

SEC.

Section 14838.64 of the Government Code is amended to read: 14838.64. (a)

(1) Notwithstanding any other law, including, but not limited to, the advertising, bidding, and protest provisions of

Chapter 6 (commencing with

Section 14825) of this part and

Chapter 2.5 (commencing with

Section 10700) and

Chapter 3 (commencing with

Section 12100) of Part of Division of the Public Contract Code, the California State University 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 three hundred fifty thousand dollars ($350,000), to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, if the California State University obtains price quotations from two or more certified small businesses, including microbusinesses, or from two or more disabled veteran business enterprises.

(2) Commencing January 1, 2028, and biennially thereafter, the Director of General Services shall conduct a review of the maximum estimated contract value specified in this subdivision and may adjust that value to reflect changes in the California Consumer Price Index. (

b) In carrying out subdivision (a), the California State University shall consider a responsive offer timely received from a responsible certified small business, including a microbusiness, or from a disabled veteran business enterprise. REVISIONS: Heading—Line 2.