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SB 1340

Small business liaison: contract information: small business procurement participation: disabled veteran business enterprise participation.

2025-2026 Regular Session Introduced by Jessica Caloza and 1 co-sponsor

SB 1340 requires each state agency’s small business liaison to annually report contract and subcontract details with small businesses to the OSBA, which will publicly post the data

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 8. Noes 0.) (June 23). Re-referred to Com. on APPR.
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Bill Summary · SB 1340

Summary of SB 1340 (2025-2026) – Small Business Liaison: Contract Information

1. Purpose and Intent

  • SB 1340, introduced by Senator Richardson, adds a new requirement to improve transparency around state contracting with small businesses.
  • The bill builds on existing structures: the Office of Small Business Advocate (within the Governor’s Office of Business and Economic Development, GO-Biz) and designated small business liaisons within state agencies.
  • Aim: ensure annual visibility into contracts involving small businesses, including subcontracting arrangements, and to publicly post that information for oversight and public accessibility.

2. Key Provisions and Changes

New Requirement for Agencies

  • Each state agency that significantly regulates or impacts small businesses must designate a small business liaison (existing law already requires this).
  • The small business liaison for every state agency must annually submit contract information to the Office of Small Business Advocate (OSBA).

Information to be Submitted (annual)

Per the added Government Code section 11148.5.1:
1. A list of all current contracts between the state agency and a small business.
2. A list of all contracts of the state agency that include a subcontract with a small business.
3. The total dollar amount of each contract (as described in item 1).
4. The total dollar amount paid to a small business under a contract or subcontract (as described in item 1).

Public Disclosure

  • The OSBA must post the information it receives on its internet website, making contract details and small-business participation publicly accessible.

3. Who/What is Affected

  • State Agencies: those that significantly regulate or impact small businesses (existing baseline) and their designated small business liaisons.
  • Small Businesses: Nathan participants in state contracts, including prime contractors and subcontractors.
  • Office of Small Business Advocate (OSBA): responsible for collecting annual contract information and posting it publicly.

4. Procedural and Timeline Aspects

  • Data Submission: The small business liaison must annually submit the specified contract information to the OSBA.
  • Public Posting: The OSBA is required to post the submitted information on its website.

Status and History (as of introduced bill)

  • Introduced: February 20, 2026
  • Committee actions:
    • From committee with do-pass recommendation and re-reference to Appropriations.
    • Subsequent committee hearings and actions noted (April 2026), including passage from committees and referrals.
  • Sponsors: Primary sponsor Senator Richardson; co-sponsor Senator Laura Richardson.

5. Fiscal Considerations

  • The bill notes “Appropriation: No” (no new state funding is specified for implementation in the legislative text). Fiscal committees are involved, but the bill does not itself create a new appropriation.

6. Practical Implications

  • Increased transparency: Public posting of contract and subcontract data involving small businesses enhances accountability and visibility into how state dollars are spent with small enterprises.
  • Data availability: Stakeholders (small businesses, policymakers, researchers) will be able to analyze levels of small-business participation, contract sizes, and the extent of subcontracting.
  • Administrative burden: Agencies must collect and report annual contract data, requiring processes to compile accurate lists and dollar amounts.

7. Bottom Line

SB 1340 would require each state agency’s small business liaison to annually report to the OSBA detailed contract information for contracts with small businesses and contracts that include small-business subcontracts, including dollar amounts. The OSBA would then publish this information online. The measure seeks to bolster transparency around state contracting with small businesses without creating new appropriations.

Compiled from official sources — confirm details with the bill’s official record.

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