(April 27, 2010) A California Chamber of Commerce-supported job creator bill that expands small business opportunities passed an Assembly committee on April 20.

AB 1771 (Mendoza; D-Norwalk) helps promote new opportunities and business for small businesses and saves the state money by allowing state departments to award contracts of less than $25,000 for goods or services by certified micro businesses, small businesses or Disabled Veteran Business Enterprises (DVBEs) without seeking an exemption of the Prison Industry Authority (PIA) mandate if they are able to make the product for less than the PIA.

Current law in effect gives the PIA precedence over other vendors during the contract bid evaluation process, regardless of the price of the product. The PIA mandate unnecessarily reduces business opportunities for private companies and drives up state costs.

By reducing the impact of the PIA mandate and setting the bidding preference for micro-businesses and small businesses at the same level as the PIA, the state would expand the number of businesses that can compete for small state projects, with likely savings for most bids.

AB 1771 passed the Assembly Jobs, Economic Development and the Economy Committee on a vote of 6-0. It will be considered next by the Assembly Public Safety Committee.

Staff Contact: Marti Fisher