Small Business Procurement and Contract Act: small business.

The Small Business Procurement and Contract Act requires the Director of General Services and the heads of other state agencies that enter into contracts for the acquisition of goods, services, and information technology and for the construction of state facilities to establish goals for the participation of small businesses and microbusinesses in these contracts, to provide for a small business preference in the award of these contracts, to give special consideration and special assistance to small businesses, and, whenever possible, to make awards to small businesses, as specified. Existing law defines a "small business" for these purposes as, among other things, an independently owned and operated business that is not dominant in its field of operation that has average annual gross receipts of $10 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law defines a "microbusiness" as a small business which, together with affiliates, has average annual gross receipts of $2.5 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law requires the director to conduct a biennial review of those average annual gross receipt levels and authorizes the director to adjust the average annual gross receipts threshold to reflect changes in the California Consumer Price Index for all items. Existing law requires a contractor requesting a small business or microbusiness preference to do so under penalty of perjury. This bill would revise those definitions to increase, commencing January 1, 2019, the dollar amount threshold for a small business to $15 million and for a microbusiness to $5 million and commencing on that date would require those dollar amounts to be adjusted to reflect changes in the California Consumer Price Index biennially. The bill would establish a new definition of small business for the purposes of public works contracts and engineering contracts for public works projects, as specified, with alternate thresholds for number of employees and average annual gross receipts, operative January 1, 2019. The bill would allow directors of the department and other state agencies to count contractors that would be considered a small business or microbusiness in 2019, if the directors are unable to make the small business participation goals under existing law. The bill, by revising those definitions, would allow additional contractors to qualify as a small business or microbusiness, thus expanding the contractors authorized to request a preference filed under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.