AB 466

Currently, minority-owned businesses and disabled veteran-owned

businesses that are certified by the Department of Administration (DOA) receive

certain preferences in governmental procurement. Under current law, state

agencies must attempt to ensure that they pay minority-owned businesses 5 percent

of the total amount expended for state procurements or certain state construction

projects in each fiscal year and must make efforts to ensure that they pay disabled

veteran-owned businesses a portion of the total amount expended for state

procurements or certain state construction projects in each fiscal year. Under this

bill, state agencies must attempt to ensure that they pay disabled veteran-owned

businesses at least 1 percent of the total amount expended for state procurements

or certain state construction projects in each fiscal year. This requirement also

applies to highway construction, maintenance, and engineering procurements by the

Department of Transportation and to the Investment Board's procurements of

investment analysis and brokerage services.

Under current law, certain metropolitan sewerage commissions (commissions)

must attempt to ensure that 5 percent of the total funds expended for financial and

investment analysis and for common stock and convertible bond brokerage

commissions in each fiscal year is expended for the services of minority-owned

financial advisers or minority-owned investment firms. Current law contracting

provisions that apply to special purpose districts (local exposition districts,

professional baseball park districts, professional football stadium districts, and

cultural arts districts) also contain provisions that relate to the hiring of and

contracting with minorities and women.

Generally, persons awarded contracts for local exposition districts must agree

that at least 25 percent of the employees hired because of the contracts will be

minority group members; at least 5 percent of the employees hired will be women;

at least 25 percent of the aggregate dollar value of certain contracts will be awarded

to minority businesses; and at least 5 percent of the aggregate dollar value of certain

contracts will be awarded to women's businesses. In the case of the other special

purpose districts, the minority and women contracting provisions are goals, which

generally include the same participation percentages, except that the participation

percentages for minority group members is 15 percent for football stadium districts

and cultural arts districts. Similar preferences exist under current law in awarding

these local government contracts or orders to disabled veteran-owned businesses

certified by DOA, except that current law does not create any goals for the number

of persons hired or total amounts or percentages of contracts or orders to be awarded

to these businesses.

With regard to contracts let by commissions and special purpose districts, this

bill sets a goal to ensure that at least 1 percent of the persons hired under the

contracts, the dollar value of contracts let, and the amount of funds spent for certain