New law aims to help small businesses
SACRAMENTO — A greater number of California small businesses will be eligible to participate in the state’s small business contracting program under a new law authored by State Sen. Cathleen Galgiani.
Approved Wednesday by Governor Jerry Brown, S.B. 605 increases the annual income limit from $10 million to $36 million for small businesses bidding on public works projects.
For all other state contracts for goods and services, the revenue limit was statutorily increased from $10 million to $15 million for small businesses and from $2.5 million to $5 million for microbusinesses.
Small and micro-businesses must be independently owned and operated, must not dominate in a field of operation, must have a principal office located in California, and owners must live in California.
The new law will go into effect in 2019.