AB 1734 Summary

• Establishes a statewide goal of 25% small business participation in state procurements and contracts for all state agencies, departments, boards, and commissions, with reporting requirements and corrective action plans for agencies that fail to meet the goal.

• Gradually increases the disabled veteran business enterprise participation goal from 3% to 5% by the 2017-18 fiscal year, with intermediate targets of 3.5%, 4%, and 4.5% for fiscal years 2014-15 through 2016-17.

• Requires the Director of General Services to establish policies providing higher incentives for disabled veteran business enterprise prime contractors than for non-veteran prime contractors using disabled veteran subcontractors.

• Applies to all state public entities receiving state funding, including the University of California, California State University, and California Community Colleges, though these institutions only count state-funded contracting toward the 25% small business goal.

• Establishes new reporting requirements on disabled veteran business enterprise utilization plans and requires tracking of promotional efforts and their effectiveness in recruiting certified disabled veteran businesses to participate in state contracts.