Bill
AB 716
Establishes a 5% state procurement target for woman-owned architectural and engineering firms and requires DOA reporting on progress and eligible purchases.
Status (selected timeline)
- Introduced: February 14, 2025 (Read first time)
- Assembly actions: Passed Assembly (3rd reading) May–June 2025 (Ayes 79, Noes 0). Multiple committee referrals and amendments followed; moved through Emergency Management, Utilities & Energy, Appropriations, Governmental Organization. As of 2025-08-29, held under submission in committee.
- Note: bill text and procedural history provided indicate the bill is intended to be enacted into statutes governing state procurement.
Summary — purpose and intent
- Establishes an affirmative procurement goal for woman‑owned businesses in state spending on architectural and engineering (A/E) services and adds reporting and definitional changes so the Department of Administration (DOA) can track and report progress.
- The goal parallels existing provisions that set a 5% target for minority‑owned businesses.
Key provisions
- New statutory definition: creates 16.75 (3m)(a)5 — defines “woman‑owned business” as a business certified by the department under s.16.285.
- Reporting amendments (16.75 (3m)(c)4): requires DOA to include in its annual report to the governor and legislature the total amounts paid to and indebtedness underwritten by minority, woman‑owned, disabled‑veteran‑owned businesses (and associated advisers/investment firms) and the state’s progress toward meeting procurement goals. The report must include percentages of total payments and obligations attributable to these categories.
- Calculation/eligibility (16.75 (3m)(c)5.a): when determining compliance with procurement goals, the DOA shall count only amounts paid to businesses certified under the appropriate certification statutes (s.16.283, 16.285, 16.287(2)).
- Procurement goal (16.87 (2)(bm)): DOA shall “attempt to ensure” that 5% of the total amount expended under its A/E services procurement authority each fiscal year is paid to woman‑owned businesses (mirrors the 5% goal for minority‑owned businesses).
- Federal limitations: excludes purchases or contracts where a preference would violate federal law, contract terms with a federal agency, or where the preference would reduce federal aid to the state.
Who is affected
- Department of Administration — new reporting duties and a statutory procurement goal to pursue.
- State agencies and units procuring A/E services — procurement planning and outreach may change to meet the 5% target.
- Woman‑owned businesses certified under s.16.285 — increased contracting opportunities if DOA meets the goal.
- Existing certified minority and disabled‑veteran‑owned businesses — will continue to be tracked alongside woman‑owned businesses in DOA reports.
Procedural / fiscal notes
- The bill uses a performance/attempt standard (“shall attempt to ensure”) rather than an absolute set‑aside.
- The analysis references a state fiscal estimate to be appended; the Digest notes “Fiscal Committee: YES” but “Appropriation: NO.” DOA administrative workload for outreach, certification verification, and reporting is a likely fiscal consideration.
- The bill contains explicit exclusions to avoid conflict with federal law or loss of federal funds.
Potential impacts (practical considerations)
- May increase state contracting opportunities for certified woman‑owned A/E firms if DOA achieves the 5% target.
- Could require DOA and procuring agencies to expand outreach, certification tracking, and reporting systems.
- Legal/administrative constraints (federal compliance, existing contracting rules) may limit the reach of the preference in some procurements.
Compiled from official sources — confirm details with the bill’s official record.
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