Cal. Code Regs. Tit. 2, § 1896.4 - Definitions

The terms defined in this article shall have the following meanings whenever they appear in this subchapter:

(a) Affiliate or affiliation refers to a relationship of direct or indirect control or shared interests, as determined in section 1896.12, subdivision (d)(6), between the applicant or a small business and another business.

(b) ALJ means Administrative Law Judge appointed by the Office of Administrative Hearings in accordance with Government Code section 11502, subdivision (b).

(c) Applicant means a business that has filed for certification as a small business with OSDS.

(d) Assignment means a transfer of all or part of one's property, interest, rights, or responsibility.

(e) Awarding department means a state agency, department, office, board, commission, and any other entity empowered by law to enter into contracts on behalf of the State of California.

(f) Bid means an offer made in response to a solicitation.

(g) Business means an entity organized for profit including, but not limited to, sole proprietorship, partnership, limited liability partnership, corporation, limited liability company, joint venture, association or cooperative.

(h) Contract means an agreement made by an individual or business which secures services, supplies, equipment or other such considerations for or on behalf of the state.

(i) Control means having the power and authority to direct the overall destiny and/or day-to-day operations of the business.

(j) Department means the Department of General Services.

(k) Disabled Veteran Business Enterprise (DVBE) means a business defined in the Military and Veterans Code section 999, subdivision (b)(7)(A).

(l) Discontinuance means an interruption in certification pursuant to section 1896.17 subdivision (b), remediable by restoration to the certified status in accordance with section 1896.17, subdivision (c).

(m) Employee means an employed individual that is:

(1) Reported as an employee to the State of California, Employment Development Department (EDD) on the business's Quarterly Contribution Return and Report of Wages or other format accepted by EDD; or

(2) Reported as an employee by the business on another state's report equivalent to the EDD's Quarterly Contribution Return and Report of Wages; or

(3) A person whose wages are reported to EDD on behalf of the business by a professional employer organization (PEO) or other human resource entities.

(n) Gross annual receipts (GAR) means "Total Gross Receipts or Sales" less "Returns and Allowances," as reported on income tax returns, as filed with the federal Internal Revenue Service. Gross annual receipts and annual gross receipts are used interchangeably and calculation of gross annual receipts of a business shall not be further adjusted to reflect individual ownership percentages, for the purposes of this subchapter.

(o) Local agency means any county, city, city and county, district, public authority, public agency, school district, and any other political subdivision or public corporation in the state, but does not include the state.

(p) Microbusiness means:

(1) A small business as defined in Government Code section 14837, subdivision (d)(2), or

(2) A manufacturer, as defined in Government Code section 14837, subdivision (c), that, together with all affiliates, has twenty-five (25) or fewer employees.

(q) Net bid price means the verified price of a bid, after all adjustments described in the solicitation have been made.

(r) Non-small business means a business that is not certified by OSDS.

(s) Principal office means a physical location where the business is headquartered and where management, direction and control of operations originate. In accordance with section 1896.12, the street address or physical location must be in California. Post office boxes (P.O. Box) and private mailboxes (PMB) are not acceptable replacements for a physical business street address.

(t) Responsive bid and Responsible bidder are defined in the State Contracting Manual Volume 2 Chapter 14 Section 1404.2.

(u) Small Business means a business that meets the eligibility requirements contained herein and has been certified by OSDS as a small business as defined in Government Code section 14837, subdivision (d)(1)(A) and in accordance with the requirements of section 1896.12. For the purposes of these regulations, whenever the term small business is used, it means a certified small business and includes microbusinesses and small businesses for the purpose of public works.

(v) Small Business for the purpose of public works is defined in Government Code section 14837, subdivision (d)(1)(B) and certified in accordance with the requirements of section 1896.13.

(w) Solicitation is defined in the State Contracting Manual Volume 2 Chapter 14 Section 1405.1.

(x) Subcontractor means a contractor who contracts directly with the prime contractor, and as defined in Public Contract Code section 4113.

(y) Tax return means all forms, schedules and attachments submitted to the Internal Revenue Service, the Franchise Tax Board and/or other jurisdictions.

Notes

Cal. Code Regs. Tit. 2, § 1896.4

1. Amendment and renumbering of Section 1896.20 to Section 1896.4 filed 9-25-78; effective thirtieth day thereafter (Register 78, No. 39). For prior history, see Register 74, No. 16.
2. Editorial correction of NOTE filed 12-6-82 (Register 82, No. 50).
3. Amendment filed 6-6-88 as an emergency; operative 6-6-88 (Register 88, No. 25). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 10-4-88.
4. Certificate of Compliance transmitted to OAL 10-4-88 and filed 11-2-88 (Register 88, No. 46).
5. Change without regulatory effect amending section and NOTE filed 3-30-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 14).
6. Repealer and new section filed 8-10-2004; operative 9-9-2004 (Register 2004, No. 33).
7. Amendment of subsection (q) filed 1-11-2007; operative 1-11-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 2).
8. Amendment of subsection (q) and NOTE filed 12-21-2009; operative 1-20-2010 (Register 2009, No. 52).
9. Amendment of section and NOTE filed 1-23-2017; operative 1-23-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 4).
10. Amendment of subsection (o), new subsection (u) and subsection relettering filed 11-8-2018; operative 1-1-2019 (Register 2018, No. 45).
11. Amendment of subsections (a)-(b) and (k), new subsection (l), subsection relettering, amendment of newly designated subsection (p), new subsections (p)(1)-(2), amendment of newly designated subsections (s)-(x) and amendment of NOTE filed 6-29-2023; operative 6-29-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 26).

Note: Authority cited: Sections 14600, 14837 and 14843, Government Code. Reference: Sections 927, 927.2, 11000, 11502, 14615, 14837, 14838, 14839.1 and 14842.5, Government Code; Sections 999 and 999.5, Military and Veterans Code; Sections 4100, 4113 and 10115.10, Public Contracts Code; and Volume 2, Chapter 14, State Contracting Manual.

1. Amendment and renumbering of Section 1896.20 to Section 1896.4 filed 9-25-78; effective thirtieth day thereafter (Register 78, No. 39). For prior history, see Register 74, No. 16.
2. Editorial correction of NOTE filed 12-6-82 (Register 82, No. 50).
3. Amendment filed 6-6-88 as an emergency; operative 6-6-88 (Register 88, No. 25). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 10-4-88.
4. Certificate of Compliance transmitted to OAL 10-4-88 and filed 11-2-88 (Register 88, No. 46).
5. Change without regulatory effect amending section and Note filed 3-30-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 14).
6. Repealer and new section filed 8-10-2004; operative 9-9-2004 (Register 2004, No. 33).
7. Amendment of subsection (q) filed 1-11-2007; operative 1-11-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 2).
8. Amendment of subsection (q) and Note filed 12-21-2009; operative 1-20-2010 (Register 2009, No. 52).
9. Amendment of section and Note filed 1-23-2017; operative 1-23-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 4).
10. Amendment of subsection (o), new subsection (u) and subsection relettering filed 11-8-2018; operative 1/1/2019 (Register 2018, No. 45).
11. Amendment of subsections (a)-(b) and (k), new subsection (l), subsection relettering, amendment of newly designated subsection (p), new subsections (p)(1)-(2), amendment of newly designated subsections (s)-(x) and amendment of Note filed 6-29-2023; operative 6/29/2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 26).