CA AB2762

Increases small business preference for local agency contracts from 5% to 7%, with a maximum financial value of $150,000 per bid.

Establishes temporary preferences (until January 1, 2024) for disabled veteran businesses and social enterprises in 11 specified counties (Alameda, Contra Costa, Lake, Los Angeles, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma), with a maximum of 7% for individual preferences and 15% for combined preferences on a single bid.

Defines "social enterprise" as a nonprofit or for-profit business in operation for at least one year that provides transitional employment or social services, and requires local certification processes for social enterprises.

Permits prime contractors to substitute subcontractors with approval from the local agency, subject to meeting specified conditions and requirements that construction subcontractors receive all Subletting and Subcontracting Fair Practices Act protections.

Requires local agencies offering preferences to adopt procurement policies defining eligible entities, setting preference percentages and values, establishing good faith effort standards, and implementing fraud oversight and verification procedures.