Window on State Government Susan Combs, Texas Comptroller
Texas Comptroller of Public Accounts

Revised February 9, 2007

CALIFORNIA

California Resident Bidder Preference

Agricultural Aircraft Operators: Giving contracts and purchasing supplies from residents, Cal. Gov’t Code § 4361. Preference given to agricultural aircraft operators who are residents if bids do not exceed by more than 5% lowest bid of nonresident agricultural aircraft operators.

Art in Public Buildings: State architect and council; duties, Cal. Gov’t Code § 15813.3. Preference may be given to artists who are California residents.

Employment and Economic Incentive Act: Worksite preference—contract for goods, Cal. Code Regs. tit. 2, § 1896.101. For contract in excess of $100,000, preference of 5% for California based companies with no less than 50% of labor accomplished at worksite or worksites located in program area.

Employment and Economic Incentive Act: Hiring preference—contract for goods, Cal. Code Regs. tit. 2, § 1896.102. Additional preferences for bidder complying with rule 1896.101 from 1% to 4% in accordance with Cal. Gov’t Code § 7084.

Employment and Economic Incentive Act: Worksite preference—contract for services, Cal. Code Regs. tit. 2, § 1896.104. For contract for services in excess of $100,000, preference of 5% for California companies that perform contract at worksite or worksites located in program area.

Employment and Economic Incentive Act: Hiring preference—contract for services, Cal. Code Regs. tit. 2, § 1896.105. Additional preferences for bidder complying with rule 1896.104 from 1% to 4% in accordance with Cal. Gov’t Code § 7084.

Enterprise Zone Act: State contracts for goods; preferences for bidders with worksites in enterprise zones, Cal. Gov’t Code § 7084. Subsection (a)—Preference of 5% when a the state prepares a solicitation for a contract for goods in excess of $100,000 to California based companies who certify that not less than 50% of the labor hours required to perform the contract shall be accomplished at a worksite or worksites located in an enterprise zone.

Subsection (b)—Preference of 5% in evaluating proposals for contracts for services in excess of $100,000 to California based companies who certify that not less than 90% of the labor hours required to perform the contract shall be accomplished at a worksite or worksites located in an enterprise zone.

Subsection (c)—Bidders complying with subsection (a) or (b) receive additional preference as follows:

1% preference given to bidders who agree to hire persons living within a targeted employment area or enterprise zone equal to 5 to 9% of its workforce.

2% preference given to bidders who agree to hire persons living within a targeted employment area or enterprise zone equal to 10 to 14% of its work force.

3% preference given to bidders who agree to hire persons living within a targeted employment area or enterprise zone equal to 15 to 19% of its workforce.

4% preference given to bidders who agree to hire persons living within a targeted employment area or enterprise zone equal to 20% or more of its workforce during the period of the contract performance.

Subsection (e)—Small business bidders qualified in accordance with Section 14838 shall have preference over nonsmall business bidders.

Local Agency Military Base Recovery Area Act: Preferences awarded to bidders on state contracts, Cal. Gov’t Code § 7118. Subsection (a)—Preference of 5% is awarded to California-based companies in contracts for goods in excess of $100,000 if no less than 50% of the labor required to perform the contract is accomplished at a worksite or worksites located in a local agency military base recovery area (“LAMBRA”).

Subsection (b)—Preference of 5% is awarded to California-based companies in contracts for services in excess of $100,000 if no less than 90% of the labor required to perform the contract is accomplished at a worksite or worksites located in a local LAMBRA.

Subsection (c)—Bidders complying with subsection (a) or (b) receive additional preference as follows:

1% preference for bidders who agree to hire persons living within a LAMBRA that is equal to 5 to 9% of its work force during the period of contract performance.

2% preference for bidders who agree to hire persons living within a LAMBRA that is equal to 10 to 14% of its work force during the period of contract performance.

3% preference for bidders who agree to hire persons living within a LAMBRA that is equal to 15 to 19% of its work force during the contract performance.

4% preference for bidders who hire persons living within a LAMBRA that is equal to 20% or more of its work force during the contract performance.

Subsection (e)—Small business bidder qualified in accordance with Section 14838 given preference over nonsmall business bidder.

Public Contracts: Acquisition of information technology goods and services, Cal. Pub. Cont. Code § 12102. Preference of 5% for small business.

Small Business: Application of preferences, Cal. Code Regs. tit. 2, § 1896.6. Small Businesses granted 5% preference.

Small Business: Computing the preferences, Cal. Code Regs. tit. 2, § 1896.8. Application of small business preference.

Small Business: Eligibility for Certification as small business, Cal. Code Regs. tit. 2, § 1896.12. Eligibility for certification as small business includes requirement that the principal office is located in California.

Small Business Procurement and Contract Act: Definitions, Cal. Gov’t Code § 14837. Definition of “small business” includes requirement that the principal office of the business is located in California.

Small Business Procurement and Contract Act: Duties of directors of General Services and other state agencies, Cal. Gov’t Code § 14838. Small business given 5% preference over the lowest responsible bidder meeting specifications in state procurement, construction contracts, and in service contracts. The maximum small business preference shall not exceed $50,000 for any bid and the combined cost for preferences granted by law shall not exceed $100,000.

Target Area Contract Preference Act: Legislative declaration and intent, Cal. Gov’t Code § 4531. Preference for California based companies submitting bids or proposals for state contracts to be performed at worksites in distressed areas by persons with a high risk of unemployment when the contract is for goods or services in excess of $100,000.00.

Target Area Contract Preference Act: Contracts for goods; preference to companies performing contracts in distressed areas, Cal. Gov’t Code § 4533. Preference of 5% in contracts for goods in excess of $100,000 given to California based companies that have at least 50% of the labor hours required to manufacture the goods and perform the contract performed at a worksite or worksites located in a distressed area.

Target Area Contract Preference Act: Contracts for goods; additional preference, Cal. Gov’t Code § 4533.1. Additional preference awarded to bidders for contracts of goods in excess of $100,000 and who comply with § 4533 in following amounts:

1% preference for bidders who agree to hire persons with high risk of unemployment equal to 5 to 9% of its work force during the period of contract performance;

2% preference for bidders who agree to hire persons with high risk of unemployment equal to 10 to 14% of its work force during the period of contract performance;

3% preference for bidders who agree to hire persons with high risk of unemployment equal to 15 to 19% of its workforce during the period of contract performance; and

4% preference for bidders who agree to hire persons with high risk of unemployment equal to 20% or more of its workforce during the period of contract performance.

Target Area Contract Preference Act: Contracts for services; preference to companies performing contract in distressed areas, Cal. Gov’t Code § 4534. Preference of 5% in contracts for services in excess of $100,000 given to California based companies that have no less than 90% of the labor required for the contract performed at a worksite or worksites located in a distressed area.

Target Area Contract Preference Act: Contracts for services; additional preferences, Cal. Gov’t Code § 4534.1. Additional preference awarded to bidders for contracts for services in excess of $100,000 and who comply with § 4534 in following amounts:

1% preference for bidders who agree to hire persons with high risk of unemployment equal to 5 to 9% of its work force during the period of contract performance;

2% preference for bidders who agree to hire persons with high risk of unemployment equal to 10 to 14% of its work force during the period of contract performance;

3% preference for bidders who agree to hire persons with high risk of unemployment equal to 15 to 19% of its workforce during the period of contract performance; and

4% preference for bidders who agree to hire persons with high risk of unemployment equal to 20% or more of its workforce during the period of contract performance.

Target Area Contract Preference Act: Maximum preference; small business bidder preference, Cal. Gov’t Code § 4535.2. The maximum preference and incentive a bidder may be awarded under Chapter 10.5, the Target Area Contract Preference Act, is 15% and is not to exceed a cost preference of $50,000. The combined cost of preferences and incentives granted pursuant to Chapter 10.5 and any other provision of law is not to exceed $100,000. Small business bidders qualified in accordance with Section 14838 shall have precedence over non-small business bidders.

Target Area Contract Preference Act: Worksite preference—purchase of goods, Cal. Code Regs. tit. 2, § 1896.31. For contract in excess of $100,000, preference of 5% for California based companies who certify that no less than 50% of labor shall be accomplished at worksite located in distressed area.

Target Area Contract Preference Act: Hiring preference—purchase of goods, Cal. Code Regs. tit. 2 § 1896.32. Additional preferences for bidder complying with rule 1896.31 from 1% to 4% in accordance with Cal. Gov’t Code § 4533.1.

Target Area Contract Preference Act: Worksite preference—contract for services, Cal. Code Regs. tit. 2, § 1896.34. For contract for services in excess of $100,000, preference of 5% for California based companies that perform contract at worksite or worksites located in distressed area.

Target Area Contract Preference Act: Hiring Preference—contract for services, Cal. Code Regs. tit. 2, § 1896.35. Additional preferences for bidder complying with rule 1896.34 from 1% to 4% in accordance with Cal. Gov’t Code § 4534.1.

California Reciprocal Preference

Public Contracts: California company; reciprocal preference against nonresident contractors, Cal. Pub. Cont. Code § 6107. Application of reciprocal preference.


Susan Combs
Texas Comptroller of Public Accounts

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