It is the intent of the Legislature that any awarding department shall accept for purposes of public contract work any state or local agency certification for minority, women, and disadvantaged business enterprises if that certification meets the certification criteria contained in Part 23 of Title 49 of the Code of Federal Regulations. It is also the intent of the Legislature that definitions for minority and women business enterprises, as specified in subdivisions (e) and (f) of Section 10115.1, shall constitute a clarification of, rather than a change in,
existing law.
Administrative ProvisionsCertification of Minority and Women Business Enterprises
Section § 2050
This law states that any department awarding a public contract in California should accept certifications for minority, women, and disadvantaged business enterprises from state or local agencies, as long as these certifications comply with federal criteria. It also clarifies that the state definitions of minority and women business enterprises are meant to clarify, not change, current law.
public contract work state certification local agency certification
Section § 2051
This section provides definitions related to awarding contracts in California. It defines an 'awarding department' as any state or local agency or officer authorized to make contracts for the state.
It identifies 'minorities' as U.S. citizens who belong to certain ethnic groups and outlines the requirements for 'minority business enterprises,' which must be at least 51% owned and controlled by minorities.
Similarly, 'women business enterprises' must be at least 51% owned and controlled by women. A 'disadvantaged business enterprise' follows federal guidelines but must also benefit the U.S. economy.
The section also explains that 'participating state or local agencies' can involve various government entities, such as districts or state agencies, which may choose to take part in the certification process.
As used in this chapter, the following definitions apply:
(a)CA Public Contract Code § 2051(a) “Awarding department” means any state agency, department, governmental entity, including the California State University, or officer or entity empowered by law to enter into contracts on behalf of the State of California.
(b)CA Public Contract Code § 2051(b) “Department” means the Department of Transportation.
(c)CA Public Contract Code § 2051(c) “Minority,” for purposes of this section, means a citizen or lawful permanent resident of the United States who is an ethnic person of color and who is: Black (a person having origins in any of the Black racial groups of Africa); Hispanic (a person of Mexican, Puerto Rican, Cuban,
Central or South American, or other Spanish or Portuguese culture or origin regardless of race); Native American (an American Indian,
Inuit, Aleut, or Native Hawaiian); Pacific-Asian (a person whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, or the United States Trust Territories of the Pacific or including the Northern Marianas); Asian-Indian (a person whose origins are from India, Pakistan, or Bangladesh); or any other group of natural persons identified as minorities in the respective project specifications of an awarding department or participating local agency.
(d)CA Public Contract Code § 2051(d) “Minority business enterprise” means a business concern that meets all of the following criteria:
(1)CA Public Contract Code § 2051(d)(1) The business is at least 51 percent owned by one or more minorities or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more minorities.
(2)CA Public Contract Code § 2051(d)(2) A business whose management and daily operations are controlled by one or more minorities who own the business.
(3)CA Public Contract Code § 2051(d)(3) A business concern with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm, or other business.
(e)CA Public Contract Code § 2051(e) “Women business enterprise” means a business concern that meets all of the following criteria:
(1)CA Public Contract Code § 2051(e)(1) The business is at least 51 percent owned by one or more women or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more women.
(2)CA Public Contract Code § 2051(e)(2) A business whose management and daily operations are controlled by one or more women who own the business.
(3)CA Public Contract Code § 2051(e)(3) A
business concern with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm, or other business.
(f)CA Public Contract Code § 2051(f) A “disadvantaged business enterprise” means a business concern that is all of the following:
(1)CA Public Contract Code § 2051(f)(1) A “disadvantaged business” as that term is used in Section 23.62 of Title 49 of the Code of Federal Regulations.
(2)CA Public Contract Code § 2051(f)(2) An individual proprietorship, partnership, corporation, or joint venture.
(3)CA Public Contract Code § 2051(f)(3) Organized for profit, with a place of business located in the United States and which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials, or labor.
(g)CA Public Contract Code § 2051(g) “Participating state
or local agency” means any state or local agency that elects to participate in the certification process pursuant to this chapter. For purposes of this subdivision, the following definitions apply:
(1)CA Public Contract Code § 2051(g)(1) “District” means an agency of the state, formed pursuant to general law or special act, for the local performance of governmental or proprietary functions within limited boundaries.
(2)CA Public Contract Code § 2051(g)(2) “Local agency” means a county or city, whether general law or chartered, city and county, school district, or other district.
(3)CA Public Contract Code § 2051(g)(3) “State agency” means any department, division, board, bureau, commission, or agency of the executive branch of government.
awarding department minority minority business enterprise
Section § 2052
This law states that all awarding departments and local agencies in California must accept certifications from state or local agencies that comply with federal guidelines (Part 23 of Title 49). These certifications qualify minority, women, and disadvantaged business enterprises for contracts funded by federal, state, or local governments.
Awarding agencies must recognize these certifications as proof of ownership and control of a business by minority, women, or disadvantaged owners, and can't require additional certifications. However, local agencies can add extra conditions about ethnicity, business size, or location for their local programs.
(a)CA Public Contract Code § 2052(a) All awarding departments and local agencies shall accept a certification by any participating state agency whose certification criteria complies with Part 23 of Title 49 of the Code of Federal Regulations. All awarding departments shall, and local agencies may, accept a certification by any participating local agency whose certification criteria complies with Part 23. Those participating state or local agency certifications shall be deemed sufficient to qualify minority, women, and disadvantaged business enterprises for purposes of
contracts that are fully or partially funded by the federal government, contracts fully or partially funded by all state agencies, and contracts fully or partially funded by all local agencies, as defined in Part 3 (commencing with Section 20100).
(b)CA Public Contract Code § 2052(b) All awarding departments and local agencies shall accept the certification of a minority, women, or disadvantaged business enterprise made by a participating state agency as valid status of that enterprise, with respect to the identities of the persons certified as having ownership and control of the business enterprise, when awarding contracts to minority, women, and disadvantaged business enterprises. All awarding departments shall, and local agencies may, accept this certification when made by a participating local agency. No awarding department shall require a business enterprise, which has complied with the certification criteria of a participating state or local agency, to comply with any
other certification process for certifying minority, women, and disadvantaged business enterprises. However, a participating local agency may impose additional conditions for certification of a business enterprise concerning its status as a minority, women, or disadvantaged business enterprise relating to ethnicity, business size, and business location for participation in local programs.
certification acceptance minority business certification women-owned business
Section § 2053
This law outlines how businesses can be certified as minority, women, or disadvantaged enterprises by state or local agencies. To gain certification, businesses must meet specific definitions and eligibility criteria as outlined in federal regulations.
These agencies can conduct a site visit to verify a business's ownership and control, but only once a year unless significant changes occur. The entire certification process should be completed within 60 working days of receiving a completed application. Once certified, this status is valid for two years. If denied, a business can reapply after six months. There are protections to ensure the security of information collected during the process.
(a)CA Public Contract Code § 2053(a) A participating state or local agency shall certify a business enterprise as a minority or women business enterprise if that business enterprise meets the definition of a minority or women business enterprise specified in subdivisions (d) and (e) of Section 2051 in accordance with the eligibility standards set forth in Section 23.53 of Title 49 of the Code of Federal Regulations.
(b)CA Public Contract Code § 2053(b) A participating state or local agency shall certify a business enterprise as a
disadvantaged business enterprise if that business enterprise meets the definition of a disadvantaged business enterprise specified in subdivision (f) of Section 2051, in accordance with the “Guidance for Making Determinations of Social and Economic Disadvantage” set forth in Appendix C to Subpart D of Part 23 of Title 49 of the Code of Federal Regulations.
(c)CA Public Contract Code § 2053(c) The participating state or local agency may include a site visit as part of its certification process. However, if a participating state or local agency certifies an applicant without conducting a site visit, any other participating state or local agency may conduct a site visit to verify ownership and control of the minority, women, or disadvantaged business enterprise. For purposes of conducting a site visit, certification documentation retained by the participating state or local agency shall be provided, upon request, to any other participating state or local agency. The applicant
shall be subject to only one site visit per year, unless ownership and control changes have occurred in the business within the 12-month period following a site visit. Nothing in this chapter shall prohibit a participating state or local agency from conducting a site visit for purposes of preparing a response to an appeal from a notice of intent to decertify pursuant to Section 2055.
(d)CA Public Contract Code § 2053(d) A participating state or local agency shall complete the certification process, including verification of information submitted by the applicant and the performance of a site visit, if applicable, within 60 working days after receipt of a completed application, and shall submit the appropriate information to the Department of Transportation for insertion into the computerized data bank created pursuant to Section 2056.
(e)CA Public Contract Code § 2053(e) The grant of certification of a business enterprise by a participating
state or local agency shall be valid for two years. A business enterprise that has been denied certification by a participating state or local agency may reapply for certification after six months have elapsed since the date of the denial of certification.
(f)CA Public Contract Code § 2053(f) A participating state or local agency shall provide adequate security methods to prevent contamination and unauthorized access to the information gathered during the verification process.
minority business enterprise women business enterprise disadvantaged business enterprise
Section § 2054
This law requires the development of a directory listing all state and local agencies involved in a standardized certification process for businesses. Businesses certified by participating agencies can be counted towards meeting state participation goals.
The application process for certification includes providing detailed information about the business, such as ownership details and management control, under penalty of perjury. The information required includes company name, contact information, business type, ownership details, and any past business relationships.
State and local agencies must keep documentation supporting certifications for at least two years. Businesses can mark certain information as confidential, and if certification status changes, agencies must respect this confidentiality while still sharing information with other agencies, when necessary.
(a)CA Public Contract Code § 2054(a) The department shall develop and make available to all awarding departments and local agencies a directory of all state and local agencies participating in the standardized certification process pursuant to this chapter. An awarding department may count, for purposes of meeting statewide participation goals, those business enterprises that have been certified by a participating state or local agency.
(b)CA Public Contract Code § 2054(b) The certification shall be under penalty of perjury. The certification
application form shall include, but not be limited to, the following information:
(1)CA Public Contract Code § 2054(b)(1) Name of firm and address.
(2)CA Public Contract Code § 2054(b)(2) Name of person to contact.
(3)CA Public Contract Code § 2054(b)(3) Business telephone.
(4)CA Public Contract Code § 2054(b)(4) Type of ownership.
(5)CA Public Contract Code § 2054(b)(5) Controlling interest (ethnicity and citizenship).
(6)CA Public Contract Code § 2054(b)(6) Documentation or evidence of minority ethnicity.
(7)CA Public Contract Code § 2054(b)(7) Name of owners, general partners, and officers of firm and their percent of ownership in the firm. If a corporation, total outstanding stock and a percentage breakdown of ownership.
(8)CA Public Contract Code § 2054(b)(8) Management
control of firm in the following areas:
(A)CA Public Contract Code § 2054(b)(8)(A) Financial decisions.
(B)CA Public Contract Code § 2054(b)(8)(B) Estimating.
(C)CA Public Contract Code § 2054(b)(8)(C) Marketing and sales.
(D)CA Public Contract Code § 2054(b)(8)(D) Hiring and dismissal of management.
(E)CA Public Contract Code § 2054(b)(8)(E) Purchasing of major equipment and supplies.
(9)CA Public Contract Code § 2054(b)(9) Documentation of identity of owner or management official who is, or has been, within the last three years, an owner, manager, or employee of another firm that has an ownership interest or a present business relationship with the firm. Present business relationships include shared space, employees, equipment, or financing. Explanation of these relationships.
(10)CA Public Contract Code § 2054(b)(10) Bonding capabilities.
(11)CA Public Contract Code § 2054(b)(11) Questions regarding whether the firm has been denied certification, or any of the individuals listed in paragraph (7) have been involved with a firm that has been denied certification, as a minority, women, or disadvantaged business enterprise by a participating state or local agency.
(12)CA Public Contract Code § 2054(b)(12) Type of business (for example, service, goods, construction).
(13)CA Public Contract Code § 2054(b)(13) Provision for the attachment of a copy of an active business and contractor’s license, or any other pertinent license or permit.
(14)CA Public Contract Code § 2054(b)(14) Location area of state to be considered for work.
(15)CA Public Contract Code § 2054(b)(15) Other documentation required to verify ownership and control of a certification applicant in accordance
with Sections 23.51 and 23.53 of Title 49 of the Code of Federal Regulations, and with Publication No. FHWA-CR-90-003, dated April 1990, entitled “Disadvantaged Business Enterprise Program Administration Participant’s Manual” published by the Federal Highway Administration in the United States Department of Transportation.
(16)CA Public Contract Code § 2054(b)(16) Affidavit that all information is true and correct, including statement under penalty of perjury.
(c)CA Public Contract Code § 2054(c) A participating state or local agency granting or denying the certification shall compile and maintain documentation supporting each of the criteria set forth in subdivision (b) for a minimum of two years. The documentation shall include, but not be limited to, one copy of the issued certification with the name of the person or persons responsible for reviewing and authorizing the certification and the date on which each review and authorization
occurred.
(d)CA Public Contract Code § 2054(d) The minority, women, or disadvantaged business enterprises seeking certification shall designate on the application form the information that they consider proprietary. Any information so designated shall be confidential. However, if notice is given by a participating state or local agency of its intention to decertify a business enterprise certified pursuant to this chapter, the participating state or local agency that granted the original certification shall provide access to all of its certification documentation to a participating state or local agency seeking to decertify the business enterprise, if the participating state or local agency seeking to decertify the business enterprise agrees to honor the confidentiality of the information designated as proprietary.
standardized certification process participation goals business certification
Section § 2055
This law section explains how a state or local agency in California can challenge the certification of a business by another agency. First, the challenging agency must notify the certifying agency in writing if it wants to contest the certification. The certifying agency must then review its decision and respond within 30 days.
If the challenging agency is still not happy with the review, it can notify the business and the certifying agency that it plans to revoke the certification. The business in question can appeal this revocation through the challenging agency's established appeal process.
A participating state or local agency may challenge the certification of a business enterprise made by another participating state or local agency as follows:
(a)CA Public Contract Code § 2055(a) The participating state or local agency seeking to challenge the certification determination made by another participating state or local agency shall give written notice to the certifying agency of its intention to challenge the certification determination. The certifying agency shall reexamine its certification determination and submit
written notice to the challenging agency and the business enterprise of its findings after reexamination within 30 days from the date of receipt of the notice.
(b)CA Public Contract Code § 2055(b) If the challenging agency is not satisfied with the finding of the certifying agency after reexamination, the challenging agency shall submit written notice to the business enterprise, with a copy to the certifying agency, of its intention to decertify the business enterprise.
(c)CA Public Contract Code § 2055(c) A business enterprise that has received notice of decertification by an agency may appeal that decertification decision in accordance with the procedures of the agency that made the decertification decision.
challenge certification business certification certification reexamination
Section § 2056
This section requires the creation of a computerized databank that lists certified minority, women, and disadvantaged business enterprises. By July 1, 1993, this databank should be accessible to awarding departments, local agencies, and the public for contracting purposes.
The databank will include detailed information such as the business's name, address, ethnicity, gender, and ownership type. It also records which agency certified or visited the business and any certification-related actions.
The databank is designed to make this information available to public agencies and the public, and it should allow for monitoring and reporting changes in the information.
(a)CA Public Contract Code § 2056(a) The department shall establish and administer a computerized databank containing a list of certified minority, women, and disadvantaged business enterprises. On or before July 1, 1993, the data shall be made accessible to all awarding departments, local agencies, and the public for use in contracting for goods, construction, and services with those business enterprises.
(b)CA Public Contract Code § 2056(b) The databank shall include, but not be limited to, the following information:
(1)CA Public Contract Code § 2056(b)(1) Name, address, and telephone number.
(2)CA Public Contract Code § 2056(b)(2) Ethnicity.
(3)CA Public Contract Code § 2056(b)(3) Gender.
(4)CA Public Contract Code § 2056(b)(4) Name of the participating state or local agency that conducted a site visit, and date of site visit, if applicable.
(5)CA Public Contract Code § 2056(b)(5) Type of ownership.
(6)CA Public Contract Code § 2056(b)(6) Product or service categories.
(7)CA Public Contract Code § 2056(b)(7) Geographical area.
(8)CA Public Contract Code § 2056(b)(8) Name of the participating state or local agency that performed the certification.
(9)CA Public Contract Code § 2056(b)(9) Any additional local requirements met by the enterprise, if applicable.
(10)CA Public Contract Code § 2056(b)(10) A record of actions by a participating state or local agency resulting in certification denial or decertification.
(c)CA Public Contract Code § 2056(c) Information from the databank shall be made available to local public agencies and the public by the date specified in subdivision (a).
(d)CA Public Contract Code § 2056(d) The database developed to implement this section shall enable the department to monitor changes to this information and to issue any reports as may be required.
certified minority business enterprises women-owned businesses disadvantaged business enterprises
Section § 2057
This law section states that the rules in this chapter don't apply to contracts for professional services that are covered by another specific part of the Government Code. Basically, if a professional services contract falls under Chapter 6 starting with Section 16850, different rules apply.
This chapter shall not apply to any professional services contract subject to Chapter 6 (commencing with Section 16850) of Part 3 of Division 4 of Title 2 of the Government Code.
professional services contract exemption Chapter 6
