CA AB2672

Department of General Services must report annually to the Department of Housing and Community Development, beginning January 1, 2013, on the number of businesses claiming enterprise zone preferences and local agency military base recovery area preferences.

California-based companies performing at least 50 percent of labor hours (for goods) or 90 percent of labor hours (for services) in enterprise zones or military base recovery areas on contracts exceeding $100,000 receive a 5-percent bidding preference.

Bidders hiring 5 to 9 percent of workforce from targeted employment areas receive 1-percent preference, with preference increasing up to 4-percent for those hiring 20 or more percent, with a maximum combined preference cap of 15 percent or $100,000.

Department of Human Resources replaces Department of Personnel Administration in establishing a contract administration training program for state agency personnel, including curriculum on small business preferences, disabled veteran-owned business preferences, military base recovery area preferences, and enterprise zone preferences.

Businesses providing false certifications to obtain preferences face penalties including restitution of cost differences, penalties up to 10 percent of contract value, and ineligibility to conduct state business for 6 to 36 months.