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New law updates California DVBE, SBE contracting preferences
Published on 09/28/2018

Governor Jerry Brown recently signed into law AB 2762, a measure which makes provision for two changes in preferences given to certain classes of business in California public contracting.

The first change accomplished by the bill is to raise the maximum value of the small business procurement preference used by local agencies when awarding contracts to 7 percent. The preference had been 5 percent. The maximum value for such a preference is currently $150,000.

The second change is to authorize local agencies within Alameda, Contra Costa, Lake, Los Angeles, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma counties to establish a disabled veteran business preference as well as a social enterprise preference policy in local contracting. The value of such preferences would also be 7 percent. The maximum value for such preferences, if multiple preferences are applied, is 15 percent, and the maximum value is $150,000, if multiple preferences are applied.The bill also makes provision for local agencies to allow prime bidders to make certain substitutions with subcontractors engaged under specified circumstances.

These provisions are authorized from January 1st of 2019 through January 1st of 2024.

The new law can be read in full at https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB2762.

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