Governor Schwarzenegger Signs Business Friendly Legislation

Earlier this month, Gov. Arnold Schwarzenegger signed Assembly Bill 31 by Senator Curren Price (SD 26- Los Angeles) that expands small business and disabled veteran business enterprise (SB/DVBE) participation in state contracts and American Recovery and Reinvestment Act (Recovery Act) projects. This is great news for California’s job creators, as they are now eligible for more of California’s $10 billion in annual contracts and billions more in federal stimulus dollars.

The bill specifically expands a current streamlined contracting process called the “SB/DVBE Option” that allows state departments to contract directly with these firms for contracts and purchases of up to $100,000 ($147,000 for public works contracts). AB 31 increased the allowable thresholds in both areas to $250,000. 

“Small businesses will now have access to more opportunities for larger contracts that are not open to competition from large corporations,” said John Kabateck, NFIB/CA Executive Director, “Expanding this ‘option’ will also save taxpayer money through the streamlined contracting process.”

“I intend to push the state to provide small businesses and DVBEs more opportunities to do win state business, expand operations and create new jobs. Small businesses can jump-start economic growth and new job development throughout California in 2010 when we provide them with the right incentives,” Sen. Price said.

Gov. Schwarzenegger’s signature of this law builds on his 2006 Executive Order requiring state agencies to meet a 25 percent SB/DVBE participation goal. 

We continue to work in Sacramento to ensure that more bills that help, not harm, small businesses are introduced and signed by the governor.