A new Sacramento bill is being introduced to promote a statewide quota for Small Business Enterprise (SBE) utilization. If passed it will enforce the awarding of 25 percent of all state contracts to small businesses. 

A previous bill set a goal of awarding 25 percent of state contracts to small businesses, but there was no enforcement or implementation of the goal or efforts towards the goal. Right now, the State has 231 total agencies, but only 12 have implemented a Disabled Veterans Business Enterprise (DVBE) or Small Business Enterprise (SBE) policy. 

The new bill would extend the quota to all agencies and also implement an enforcement plan to ensure that all of the agencies participating meet the goal by 2027. If the participating agencies do not meet the goal by 2027, they can be subject to audits, although there will be no fines for failing to meet the goal. The new bill will include DBEs and other small businesses such as LGBT-owned small businesses. If passed, the bill will take effect on January 2022.