Public contracts: Small Business Procurement and Contract Act.

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Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Reyes
Last action: 2026-04-13
Official status: April 13 hearing: Placed on APPR. suspense file.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide details on the initial contract value limit before the increase to $350,000.

Small Business Contract Act

This act allows state agencies and universities to give contracts worth up to $350,000 to small businesses without following regular bidding rules.

What This Bill Does

Allows state agencies and the California State University to award contracts between $5,000 and $350,000 to certified small businesses, including microbusinesses and disabled veteran business enterprises.
Exempts these contracts from certain competitive bidding requirements.
Requires the Director of General Services to review and adjust the maximum contract value every two years starting January 1, 2029.

Who It Names or Affects

State agencies in California
The California State University system
Certified small businesses, microbusinesses, and disabled veteran business enterprises

Terms To Know

certified small business: A business that meets specific criteria set by the state to qualify as a small business.
microbusiness: A very small business, often with fewer employees and lower revenue than other small businesses.

Limits and Unknowns

The bill does not specify how many contracts will be awarded or the exact impact on larger businesses.
It is unclear if there are any limits to how many times a single small business can receive these contracts.

Bill History

2026-04-13 California Legislative Information
April 13 hearing: Placed on APPR. suspense file.
2026-03-27 California Legislative Information
Set for hearing April 13.
2026-03-24 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 0. Page 3657.) (March 24). Re-referred to Com. on APPR.
2026-03-10 California Legislative Information
Set for hearing March 24.
2026-02-18 California Legislative Information
Referred to Com. on G.O.
2026-02-12 California Legislative Information
From printer. May be acted upon on or after March 14.
2026-02-11 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1044, as introduced, Reyes.
Public contracts: Small Business Procurement and Contract Act.
The Small Business Procurement and Contract Act permits a state agency or the California State University to award a contract for goods, services, or information technology with an estimated value between $5,000 and $250,000 to a certified small business, including a microbusiness and a disabled veteran business enterprise, without complying with specified competitive bidding requirements.
This bill would increase the maximum estimated value of a contract for goods, services, or information technology awarded pursuant to the act from $250,000 to $350,000. Commencing January 1, 2029, and biennially thereafter, the bill would require the Director of General Services to conduct a review of that maximum value, and would authorize the director to adjust that value to reflect changes in the California Consumer Price Index.

Current Bill Text

Read the full stored bill text

Download Bill PDF