Assemblyman Josh Hoover, R-Dist. 7, recently introduced legislation aimed at increasing the threshold for small-business contracts.
The current ceiling for certified small-business contracts stands at $250,000. This proposal, known as the Small Business Procurement and Contract Act (A.B. 3236), would see that maximum increase to $500,000 for goods, services and information technology.
The effort follows on the heels of similar legislation that fell short last year, according to scheduler and legislative aide Brianna Palacios with Hoover’s office. The impetus for the bill came from a constituent who voiced concerns about the ability to compete in the current economy.
“This idea was actually brought forward from a constituent, who is a veteran with a small business, and he was saying that from a business standpoint, it’s been a while since the last increase …,” she said.
Assembly Bill 31, which passed in 2009, increased the no-bid contract maximum from $100,000 to $250,000. “It’s been about 15 years since the last increase,” Palacios said.
While earlier attempts to pass legislation may have stalled, Palacios is hopeful that changes to the bill will carry it through committee and the Senate.
