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News & Press: Policy News

CA Governor Schwarzenegger Signs AB31, Increasing Opportunities for Small Businesses

Monday, October 12, 2009  
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Governor Schwarzenegger Signs Legislation Increasing

Opportunities for Small Businesses

Bill Increases Small Business and Disabled Veteran Business Eligibility for

State Contracts and Recovery Act Projects


Specifically, AB 31 expands an existing streamlined contracting process called the SB/DVBE Option to enhance small business (SB) and disabled veteran business enterprise (DVBE) participation in state contracts. Current law allows state departments to contract directly with these firms for goods and services contracts or purchases between $5,000 and $100,000 and up to $147,000 for public works contracts. AB 31 increases the allowable thresholds in both areas to $250,000.


Throughout his Administration, Governor Schwarzenegger has demonstrated his strong commitment to creating an environment where small businesses and DVBEs can thrive. Highlights of his most significant actions include:


·         On April 19, 2004, Governor Schwarzenegger succeeded in reformingCalifornia’s cumbersome workers’ compensation system, which has saved California businesses billions.

·         On March 29, 2006, Governor Schwarzenegger signed Executive Order S-02-06, reaffirming his Administration’s strong commitment to meet or exceed the goal of 25 percent small business participation in procurement and contracting processes.

o   On April, 1, 2008, Governor Schwarzenegger announcedthat California’s SB and DVBEs were registered at record-breaking numbers – jumping 4,000, from 12,000 in 2007 to 16,005 in 2008. 

·         On February 15, 2007, Governor Schwarzenegger’s Department of General Services announcedthat certification times for small businesses and DVBEs would be reduced from six months to one day with online certification.



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