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SB 1044CALIFORNIASession 20252026

California SB 1044 increases small business contract threshold to $350,000

Original title: Public contracts: Small Business Procurement and Contract Act.

August 13, 2026

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The Frame

What this does

This change expands the pool of state contracts that small businesses, es, and disabled veteran-owned enterprises can secure through streamlined procurement processes, potentially increasing their access to state-funded work.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Certified small businesses

These businesses gain access to a larger range of state contracts that can be awarded without the competitive bidding process.

Disabled veteran business enterprises

These enterprises are eligible for the increased non-competitive contract threshold.

State agencies

Agencies are permitted to use the higher $350,000 threshold when awarding contracts to small businesses.

What changed

Last recorded activity August 13, 2026.

What's next

Introduced.

Summary

This bill increases the maximum value of state and California State University contracts that can be awarded to certified small businesses without from $250,000 to $350,000. It also mandates a biennial review of this limit starting in 2029, allowing for adjustments based on the .

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

This change expands the pool of state contracts that small businesses, es, and disabled veteran-owned enterprises can secure through streamlined procurement processes, potentially increasing their access to state-funded work.

Frequently Asked Questions

What is the new maximum contract value for small businesses?
The bill increases the maximum value for non-competitive contracts to $350,000.
Does this apply to all state contracts?
It applies to contracts for goods, services, or information technology awarded by state agencies or the California State University to certified small businesses, es, or disabled veteran business enterprises.
Will this limit stay at $350,000 forever?
No, starting January 1, 2029, the Director of General Services must review the limit every two years and may adjust it based on the .

News Coverage

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Connected Entities

organizationCalifornia State UniversityAuthorized to award contracts under the act.Map →
otherSmall Business Procurement and Contract ActThe legislative act being amended.Map →
organizationDepartment of General ServicesResponsible for reviewing and adjusting contract thresholds.Map →

Sources

Open source document

openstates.org

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy10
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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