(a) Notwithstanding any other provision of law requiring a
local agency to award contracts to the lowest responsible bidder, any
local agency may do any of the following in facilitating contract
awards to small businesses:
   (1) Provide for a small business preference in construction, the
procurement of goods, or the delivery of services where
responsibility and quality are equal.  The preference to a small
business shall be up to 5 percent of the lowest responsible bidder
meeting specifications.
   (2) Establish a subcontracting participation goal for small
businesses on contracts and grant a preference, up to a maximum of 5
percent, to those bidders who meet the goal.
   (3) Require bidders to make good faith efforts to meet a
subcontracting participation goal for small business contracts.
Bidders that fail to meet the goal shall demonstrate that they made
good faith efforts to utilize small business contractors.
   (b) The term "small business," as used in this section, shall be
defined by each local agency.

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Last modified: July 31, 2008