CDCAN Advocacy Without Borders :: One Community

Current Status

This was returned to the Secretary of the Senate pursuant to Joint Rule 56.

Joint Rule 56

Bills introduced in the first year of the regular session and passed by the house of origin on or before the January 31st constitutional deadline are "carryover bills." Immediately after January 31, bills introduced in the first year of the regular session that do not become "carryover bills" shall be returned to the Chief Clerk of the Assembly or Secretary of the Senate, respectively. Notwithstanding Rule 4, as used in this rule "bills" does not include constitutional amendments.

Rule 4: Definition of the Word "Bill"

Whenever the word "bill" is used in these rules, it includes any constitutional amendment, any resolution ratifying a proposed amendment to the United States Constitution, and any resolution calling for a constitutional convention.

Summary

SB 755 would establish a statewide participation goal of not less than one percent for persons with developmental disabilities business enterprises (PDDBEs) to participate in contracts awarded by state agencies for goods and services. This bill would require, until June 30, 2014, that each state agency awarding contracts take specified actions to encourage that participation. The Department of General Services (DGS) shall adopt regulations and consult with the Department of Developmental Disabilities (DDS) with respect to implementation of this bill. This bill would impose civil penalties for the first and subsequent violations of providing false or fraudulent information with respect to the qualification of a person with a PDDBE, and would prohibit the person or entity that made the false statement from bidding on or participating in state contracts for specified periods of time.

A PDDEE may be a business concern at least 51 percent owned by one or more persons with a developmental disability, a business concern managed by, and the daily business controlled by, one or more persons with a developmental disability, a community based non profit organization meeting certain conditions that employs persons with development disabilities.

To the extent that PDDBE bid preference increases the number of state contracts awarded to other than the low bidder, state contracting costs will increase. While each individual contract may not increase markedly, given the thousands of state contracts awarded annually totaling several billion dollars, the cost of the bill may exceed $1,000,000 annually. The one percent participation goal shall apply to the total number of contracts granted, let, or awarded each year by the awarding department. While not an absolute requirement, achieving that goal, which appears to be the purpose of the legislation, would have a fiscal impact.

As amended on 5/21/2009, this bill would:

• Revise the definition of a community rehabilitation program for the purposes of this bill to mean a certified, vendored, or accredited program, as defined.
• Require the workforce of a public or private nonprofit corporation to be employees of the corporation.
• Delete the prohibition against directors of the corporation who are also employees of the corporation from participating in or being present at discussions of the board of directors regarding labor management contract negotiations.
• Require DGS to designate a nonprofit corporation to coordinate purchases of materials and supplies manufactured and services between a state agency, city or county, political subdivision, or district of the state and these public and private nonprofit California corporations operating community rehabilitation programs serving persons with disabilities.
• Require that the non profit shall not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by these private interests.

A similar bill, SB 1687 (Negrete-McLeod) 2008 was held on the Assembly Appropriations Committee Suspense File.