DGS and OSDS prepare to revise Small Business regulations.

The California Department of General Services (DGS) held a public meeting on March 5, 2015 to hear public opinion on proposed changes to the California’s Small Business (SB) certification program. DGS and the Office of Small Business & Disabled Veteran Business Enterprise Services (OSDS) propose to revise California Code of Regulations (CCR), Title 2, Division 2, Chapter 3, Subchapter 8, Office of Small Business Procurement and Contracts, Sections 1896 – 1896.22, also known as the Small Business (SB) regulations. The regulations revise will incorporate legislation changes between 2005 through 2012, delete obsolete terms and parallel, where applicable, the Small Business regulations with the Disabled Veteran Business Enterprise regulations.

According to State officials the SB regulations have not received an extensive revision for several years. However, affecting changed legislation has been implemented, as appropriate. In 2010, the SB regulations were revised to only reflect an increase in the Gross Annual Receipts thresholds from $12 M – $14 M for small businesses and from $2.75 M to $3.5 M for micro-businesses.

Officials continue to say the SB regulations are outdated and contain obsolete information. They do not communicate clear directions for all stakeholders. This lack of direction has resulted in inconsistent and subjective interpretation of changes legislation. The proposed regulations provide effective and clear directions for all stakeholders regarding the SB certification program.

The proposed regulations are intended to honor the intention and commitment of the Legislature to assist SBs by communicating to them the rules established for the administration of the SB certification program. The proposed SB regulations are written in the same format as the Disabled Veteran Business Enterprise (DVBE) regulations, where applicable, and provide clarity for firms wanting to participate in the SB certification program. They will also promote consistent application of the law. This will benefit applicants who apply or possess dual certifications to better understand program similarities and differences. DGS and OSDS will benefit from this regulatory revise in the administration of the SB and DVBE certification programs.

This rulemaking supports GC 14836(a-b) which reads:

(a) The Legislature hereby declares that it serves a public purpose, and it is of benefit to the state, to promote and facilitate the fullest possible participation by all citizens in the affairs of the State of California in every possible way. It is also essential that opportunity is provided for full participation in our free enterprise system by small business enterprises.

(b) Further, it is the declared policy of the Legislature that the state should aid, counsel, assist, and protect, to the maximum extent possible, the interests of small business concerns, including micro-businesses, in order to preserve free competitive enterprise and to ensure that a fair proportion of the total purchases and contracts or subcontracts for property and services for the state be placed with these enterprises.

Current law promotes the usage of small businesses in obtaining state contracting dollars. The Small Business regulations provide the information and program requirements for California businesses seeking certification. In turn, the small business certification affords these enterprises certain benefits and opportunities to be competitive in securing state contracting dollars.

To learn more about the proposed changes, Click here….

If you would like assistance in obtaining a SB and/or DVBE certification for your business, contact the Orange County SBDC at 714.564.5200.