Public contracts: Small Business Procurement and Contract Act.

Senator Seyarto's proposal to modify California's Small Business Procurement and Contract Act would raise the maximum value of state contracts that can be awarded to certified small businesses through streamlined bidding processes from $250,000 to $350,000.

The legislation affects both state agencies and the California State University system, allowing them to award contracts for goods, services, or information technology to certified small businesses, microbusinesses, and disabled veteran business enterprises through an expedited process requiring only two price quotations. For contracts below $5,000, agencies must still obtain multiple quotes if a single-source price appears unreasonable.

Starting January 1, 2028, the Director of General Services would conduct biennial reviews of the maximum contract value and could adjust it based on changes in the California Consumer Price Index. This automatic review mechanism aims to maintain the threshold's relevance as economic conditions evolve. The bill maintains existing requirements for agencies to consider responsive offers received from qualified small businesses and disabled veteran enterprises.