Assembly committee advances bill to raise small‑business procurement cap to $350,000

On Tuesday, July 11, 2025, the California State Assembly Committee on Economic Development, Growth and House with Impact voted to send SB 70 to the Appropriations Committee, a bill that would raise the maximum contract value under the Small Business Procurement and Contract Act from $250,000 to $350,000 and tie future adjustments to the California Consumer Price Index.

Supporters said the increase updates a cap that has not changed since 2009 and would reflect today’s economic conditions. "The current $250,000 cap has remained unchanged since 2009 despite significant economic changes," the bill’s sponsor said during the committee hearing, arguing that the 2009 cap would be roughly $370,000 in today’s dollars and that indexing to the CPI will help keep the threshold current.

Opponents, including the Coalition of Small and Disabled Veteran Businesses and small‑business owner Steven Simpson, testified that raising the cap could concentrate opportunities with larger firms and create practical burdens for small vendors. "I contract with the state of California...this will not enhance small business participation in contracting with the state," Simpson said, adding that many small firms cannot carry large inventories or float the payment cycles required when the state takes weeks to pay for delivered goods.

Committee members debated oversight and fraud concerns raised by opponents and the bill’s sponsors pointed to recent reforms and oversight tools that they said reduce the risk of abuse. After committee discussion the motion to pass SB 70 to appropriations carried by recorded vote and the committee secretary reported the item out of committee, 7‑0.

Votes at the committee: SB 70 — due pass to appropriations (approved 7‑0).