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---
type: "Bill"
title: "Small Business Procurement and Contract Act: small business."
description: "The Small Business Procurement and Contract Act requires the Director of General Services and the heads of other state agencies that enter into contracts for the acquisition of goods, services, and information technology and for the construction of state facilities to establish goals for the participation of small businesses and microbusinesses in these contracts, to provide for a small business preference in the award of these contracts, to give special consideration and special assistance to small businesses, and, whenever possible, to make awards to small businesses, as specified. Existing law defines a \"small business\" for these purposes as, among other things, an independently owned and operated business that is not dominant in its field of operation that has average annual gross receipts of $10 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law defines a \"microbusiness\" as a small business which, together with affiliates, has average annual gross receipts of $2.5 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law requires the director to conduct a biennial review of those average annual gross receipt levels and authorizes the director to adjust the average annual gross receipts threshold to reflect changes in the California Consumer Price Index for all items. Existing law requires a contractor requesting a small business or microbusiness preference to do so under penalty of perjury."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20172018"
identifier: "SB 605"
citation: "California SB 605 (20172018)"
classification: ["bill"]
subjects: ["Small Business Procurement and Contract Act: small business."]
status: "enacted"
primary_sponsors: ["Galgiani"]
version_count: 6
action_count: 29
vote_count: 6
first_action: "2017-02-17"
last_action: "2017-10-11"
source: "openstates"
source_identifier: "ocd-bill/2674a048-85b6-4e79-aae2-0aa5cc835ff6"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB605"
source_hash: "6004f3d281cc671b4b24a0fe975d880697f0f12e21ffa4bb84f933f8ffe13028"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---
# California SB 605 (20172018) — Small Business Procurement and Contract Act: small business.
The Small Business Procurement and Contract Act requires the Director of General Services and the heads of other state agencies that enter into contracts for the acquisition of goods, services, and information technology and for the construction of state facilities to establish goals for the participation of small businesses and microbusinesses in these contracts, to provide for a small business preference in the award of these contracts, to give special consideration and special assistance to small businesses, and, whenever possible, to make awards to small businesses, as specified. Existing law defines a "small business" for these purposes as, among other things, an independently owned and operated business that is not dominant in its field of operation that has average annual gross receipts of $10 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law defines a "microbusiness" as a small business which, together with affiliates, has average annual gross receipts of $2.5 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Existing law requires the director to conduct a biennial review of those average annual gross receipt levels and authorizes the director to adjust the average annual gross receipts threshold to reflect changes in the California Consumer Price Index for all items. Existing law requires a contractor requesting a small business or microbusiness preference to do so under penalty of perjury.
## Version chain
The bill's text revisions, in order — the diff chain from filing to enrollment.
1. **02/17/17 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201720180SB605&version=20170SB60599INT)
2. **05/26/17 - Amended Senate** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201720180SB605&version=20170SB60598AMD)
3. **07/18/17 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201720180SB605&version=20170SB60597AMD)
4. **10/11/17 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201720180SB605&version=20170SB60595CHP)
5. **SB605** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB605)
6. **09/15/17 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=201720180SB605&version=20170SB60596ENR)
## Votes
- Do pass. — **160** (pass) · lower
- 3rd Reading — **390** (pass) · upper
- Unfinished Business SB605 Galgiani Concurrence — **400** (pass) · upper
- Do pass as amended — **70** (pass) · upper
- SB 605 Galgiani Senate Third Reading By GARCIA, E. — **780** (pass) · lower
- Do pass as amended and be re-referred to the Committee on [Appropriations] — **60** (pass) · lower
## Sponsors
- Galgiani — primary (person)
## Timeline
The legislative action history — every referral, reading, and vote.
- **2017-02-17** Introduced. Read first time. To Com. on RLS. for assignment. To print. `introduction, reading-1`
- **2017-02-21** From printer. May be acted upon on or after March 23.
- **2017-03-02** Referred to Com. on G.O. `referral-committee`
- **2017-03-07** Set for hearing March 28.
- **2017-03-15** March 28 set for first hearing canceled at the request of author.
- **2017-03-30** Set for hearing April 25.
- **2017-04-25** From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 827.) (April 25). Re-referred to Com. on APPR. `committee-passage-favorable, committee-passage, referral-committee`
- **2017-05-01** Set for hearing May 8.
- **2017-05-03** May 8 hearing postponed by committee.
- **2017-05-04** Set for hearing May 15.
- **2017-05-15** May 15 hearing: Placed on APPR. suspense file.
- **2017-05-19** Set for hearing May 25.
- **2017-05-26** From committee: Do pass as amended. (Ayes 7. Noes 0. Page 1188.) (May 25). `committee-passage-favorable, committee-passage, amendment-passage`
- **2017-05-26** Read second time and amended. Ordered to third reading. `reading-1, amendment-passage, reading-2`
- **2017-05-26** Published May 26 at 2 p.m.
- **2017-05-31** Read third time. Passed. (Ayes 39. Noes 0. Page 1340.) Ordered to the Assembly. `reading-3, passage, reading-1`
- **2017-06-01** In Assembly. Read first time. Held at Desk. `reading-1`
- **2017-06-15** Referred to Com. on J., E.D., & E. `referral-committee`
- **2017-07-17** From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (July 11). `committee-passage-favorable, committee-passage, amendment-passage`
- **2017-07-18** Read second time and amended. Re-referred to Com. on APPR. `amendment-passage, reading-2, referral-committee, reading-1`
- **2017-08-23** August 23 set for first hearing. Placed on APPR. suspense file.
- **2017-09-01** From committee: Do pass. (Ayes 16. Noes 0.) (September 1). `committee-passage-favorable, committee-passage`
- **2017-09-05** Read second time. Ordered to third reading. `reading-2, reading-1`
- **2017-09-12** Read third time. Passed. (Ayes 78. Noes 0. Page 3201.) Ordered to the Senate. `reading-3, passage, reading-1`
- **2017-09-13** In Senate. Concurrence in Assembly amendments pending.
- **2017-09-13** Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2843.) Ordered to engrossing and enrolling. `committee-passage-favorable, amendment-passage`
- **2017-09-19** Enrolled and presented to the Governor at 4 p.m.
- **2017-10-11** Approved by the Governor. `executive-signature`
- **2017-10-11** Chaptered by Secretary of State. Chapter 673, Statutes of 2017.
## Source
OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/2674a048-85b6-4e79-aae2-0aa5cc835ff6`. Confidence: reported (aggregated from official California legislature records).