Menu
Search

Notice of Rulemaking

New Broadcast: Notice of Proposed Small Business Certification Rules for the purpose of Public Works contract preferences [7/20]

 

Small Business Regulations

The Department of General Services, Procurement Division, Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS), in accordance with the requirements of the Administrative Procedure Act, (APA) proposes revision of California Code of Regulations (CCR) Sections 1896 1896.22, Title 2, Division 2, Chapter 3, Subchapter 8; Office of Small Business Procurement and Contracts. This CCR is also known as the Small Business (SB) regulations. 

This action incorporates Senate Bill 605 (Statutes of 2017, Chapter 673, Sections 3 & 4), amending Government Code (GC) Sections 14837 and 14838.  Specifically, this law: (1) Created a new category of Small Business for the purpose of public works; and (2) Increased existing eligibility size standards for the average annual gross receipts for other small businesses and microbusinesses certified by the Department of General Services. This triggers adjustment in existing SB rules Title 2, §§ 1896.4, 1896.12 and 1896.17 together with adoption of rule 1896.13 in accordance with APA necessity, clarity, consistency and nonduplication principles. 

Links to the text of the proposed regulations (7/09/2018 version), the Notice of Proposed Rulemaking, the Initial Statement of Reasons (ISOR), and the regulations as they appear before revision (for comparative purpose), are all provided on this page. A period for public input and a hearing date have been set as specified in these links:

  • Notice of Anticipated Rule Changes and Supporting Documentation: Public Comment Period: July 20, 2018 September 4, 2018; Scheduled Hearing Date: September 4, 2018.

Availability of the Changed or Modified Text

After holding the public hearing and considering all timely and relevant comments received, DGS may adopt the proposed regulations substantially as described in the notice. If DGS makes modifications which are sufficiently related to the originally proposed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15-days before DGS takes action to adopt the regulations as revised. Any such 15-day Re-notice will be posted on this website page. Please send requests for copies of any modified regulations to the addresses indicated in the notice and/or broadcast links.

Availability of the Final Statement of Reasons

Upon its completion, copies of the Final Statement of Reasons (FSOR) may be obtained by contacting individuals identified in the rulemaking announcements. Adopted final text and FSOR will also be posted on this website page. It is DGS’ expectation that all of the APA rulemaking adoption steps will be completed by this upcoming Fall and changes to be effective on January 1, 2019.

You may access existing Small Business regulations and the Small Business & DVBE Request for Certification (Application) at   the following links:

 

 

BroadcastNotice of Proposed Rulemaking affecting Disabled Veteran Business Enterprise Incentive Regulations

DVBE Regulations


The Department of General Services (DGS), Procurement Division, Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS), in accordance with Administrative Procedure Act (APA) requirements, is proposing revisions to California Code of Regulations (CCR) Sections 1896.99.100 1896.99.100 Title 2,Division 2, Chapter 3, Subchapter 10.6, Disabled Veteran Business Enterprise (DVBE) Participation Incentive. 

Currently the executive's authority of contract awarding department to exempt contracts from the DVBE incentive is interpreted as permitted only when participation goals are met within stated timeframe and frequency. While not disagreeing with the availability of exemption, stakeholders object that as written the rule inhibits attainmentof greater than 3 percent DVBE participation goals. 

This is because existing language seems to imply, despite the presence of "may" as opposed to "shall", that incentive augmentations in contracts DVBEs would like to bid on will no longer be offered, once the 3 percent threshold is attained by that particular agency. Discontinuing incentives simply because the participation goal has beenreached, especially if the entire volume of state contracting is taken into consideration, undermines individual awarding department motive to achieve higher participation levels, contrary to the intent of the Legislature to establish an incentive. These rule revisions are intended to remedy this problem. 

Links to the text of the proposed regulations (6/18/2018 version), the Notice of Proposed Rulemaking, the Initial Statement of Reasons (ISOR), and the regulations as they appear before revision (for comparative purpose), are all provided on this page. period for public input and hearing date have been set as specified in the above links to the Broadcast and Notice. 

Availability of the Changed or Modified Text

After holding the public hearing and considering all timely and relevant comments received, DGS may adopt the proposed regulations substantially as described in the notice. If DGS makes modifications which are sufficiently related to the originally proposed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15-days before DGS takes action to adopt the regulation as revised. Any such 15-day Re-notice will be posted on this website page. Please send request for copies of any modified regulations to the addresses indicated in the notice and/or broadcast links. 

Availability of the Final Statement of Reasons

Upon its completion, copies of the Final Statement of Reasons (FSOR) may be obtained by contacting individuals identified in the rulemaking announcements. Adopted final text and FSOR will also be posted on this website page. It is DGS’ expectation that all of the APA rulemaking adoption steps will be completed by this upcoming Summer and changes effective Fall, 2018. 

DVBE Rules for which Comment has Reopened for 15 additional days

In accordance with APA regulations, proposed revisions to CCR Section 1896.60 - 1896.97, Title 2, Chapter 3, Subchapter 10.5; Disabled Veteran Business Enterprise Participation Goal Program have undergone 45 days of public review. The comment period of March 16, 2018 - April 30, 2018 has occurred and an April 30, 2018 scheduled Public Hearing took place.

Further changes in the previously posted revision are being considered (see link below). Accordingly, an additional 15-day opportunity for public comment is taking place commencing September 10, 2018 and closing 5 p.m. September 25, 2018. (Broadcast Bulletin E-13-18) This re-notice period has been widely announced to stakeholder individuals, organizations and officials of other agencies by electronic means, in addition to inclusion on this web page. The Final Adopted text and Final Statement of Reasons posting on this page will occur, along with links to all relevant documents, following a final review of rule changes for APA sufficiency by the Office of Administrative Law.

The Department has until March 16, 2019 to finalize this revision.

You may access the current DVBE regulations and the Small Business & DVBE Request for Certification (Application) at the following links: 


What's New