07/21/2006 GAAS:472:06 FOR IMMEDIATE RELEASE
Gov. Schwarzenegger Calls for Small, Disadvantaged Businesses to Participate in California's Infrastructure Growth
Governor Schwarzenegger today issued Executive Order S-11-06 that will help California's disadvantaged businesses play a key role in rebuilding the state's transportation infrastructure. The executive order calls for the creation of a Small Enterprise Officer, increasing outreach and assistance by state agencies to small and disadvantaged firms and the creation of a $40 million State Transportation Bond Guarantee fund to help small businesses secure adequate insurance protection for state projects.
"Small businesses are the backbone of the California economy. They are the innovators and the job creators, employing nearly seven million Californians - almost half of our workforce," said Governor Schwarzenegger.
"California needs a massive infrastructure upgrade with more roads, more bridges, on-ramps, off-ramps, interchanges and HOV lanes - everything to help our economy grow and improve our quality of life. We will need all hands on deck to get the job done. That includes big business, small business, women-owned business and minority-owned business."
The Governor signed an executive order at the State Capitol with representatives of businesses groups whose members will potentially contract with the California Department of Transportation (Caltrans) to build roads and transit-related systems to meet the State's growing population demands. During the ceremony, fifteen major business and employer groups signed a separate partnership agreement with Caltrans to work as a cohesive team to maximize the participation of Disadvantaged Business Enterprises in the state's transportation program.
The Small Enterprise Officer, the newly created position within the Business Housing and Transportation Agency, will inform and assist Small Business Enterprise firms in growing their business expertise and increasing their capacity to acquire and perform on state transportation contracts.
The Governor announced today that Samuel Wallace, 56, of Sacramento, has been appointed Small Enterprise Officer. He has served as owner and principal of Williams-Wallace Management Consultants, a marketing planning, research and consulting firm since 1993. Previously, Wallace served as the Region IX representative for the Secretary of the U.S. Department of Labor from 1989 to 1993 and was president and chief operating officer for the consulting firm, Xodex Enterprises from 1980 to 1989. This position does not require Senate confirmation and the compensation is $99,500. Wallace is a Republican.
The order also requires the agency to develop a legislative proposal to create a $40 million State Transportation Bonding Guarantee Program to assist small and emerging businesses that bid on federally assisted transportation and transit-related projects.
Starting immediately, the agency will utilize the Small Business Expansion Fund through agreements with Financial Development Corporations to provide approximately $4 million in federal funds to guarantee $17 million in loans to small and disadvantaged businesses participating in state and federal transportation projects.
To encourage participation by small and disadvantaged businesses, the agency and CalTrans will develop outreach programs such as providing marketing tools to Caltrans District Offices, consulting with major employer groups including the Associated General Contractor of California, Engineers and Land Surveyors of California and others, and coordinating with the Governor's Small Business Advocate and other state agency procurement officials.
In March of 2006, the Governor launched the California Business Portal (www.calbusiness.ca.gov), a Web site aimed at helping entrepreneurs from all over the world start small businesses in California. The site is a one-stop shop for businesses to access information and resources for starting, growing, financing, expanding or relocating a business to California.
The Governor has also campaigned to curb the most egregious abuses of the legal system while preserving the ability of those with actual damages to use the courts to receive fair compensation. This effort removed the ability for those without damages to harass small businesses with lawsuits.
