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AB-961 Disabled Veteran Business Enterprise Program.(2017-2018)

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Date Published: 09/15/2017 09:00 PM
AB961:v95#DOCUMENT

Enrolled  September 15, 2017
Passed  IN  Senate  September 11, 2017
Passed  IN  Assembly  September 13, 2017
Amended  IN  Senate  June 19, 2017
Amended  IN  Assembly  April 18, 2017
Amended  IN  Assembly  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 961


Introduced by Assembly Member Quirk-Silva
(Principal coauthor: Assembly Member Cervantes)

February 16, 2017


An act to amend Section 999.5 of the Military and Veterans Code, relating to disabled veterans.


LEGISLATIVE COUNSEL'S DIGEST


AB 961, Quirk-Silva. Disabled Veteran Business Enterprise Program.
Under existing law, the administering agency for the California Disabled Veteran Business Enterprise Program is the Department of General Services, except in the case of contracts for professional bond services. Existing law requires the Director of General Services to adopt written policies and guidelines establishing a uniform process for state contracting to provide a disabled veteran business enterprise (DVBE) participation incentive to bidders, which all state agencies are required to use when awarding contracts.
Existing law requires the Department of Veterans Affairs to perform designated activities in connection with the California Disabled Veteran Business Enterprise Program, including maintaining complete records of its promotional efforts, and tracking the effectiveness of its efforts to promote the program with periodic surveys of newly certified DVBEs to determine specified information about the DVBE’s experience with the program.
This bill would require the records of the department’s promotional efforts to include specified information about the business attending or participating in those promotional efforts. The bill would delete the periodic survey requirement and instead would require the department to compare a list of businesses that participate in promotional efforts with a list of those businesses that become newly certified DVBEs, and those that become prime contractors or subcontractors with the state.
Existing law requires an awarding department, upon completion of an awarded contract for which a commitment to achieve a DVBE goal was made, to require the prime contractor that entered into a subcontract with a DVBE to certify to the awarding department specified information relating to amounts paid under the contract, as specified.
This bill would require an awarding department to maintain all records of the information provided by the prime contractor pursuant to those provisions and to retain the records for a minimum of 6 years after collection. The bill would establish appropriate review procedures for those records to ensure the accuracy and completeness of the award amounts and paid amounts reported.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 999.5 of the Military and Veterans Code is amended to read:

999.5.
 (a) The administering agency for the California Disabled Veteran Business Enterprise Program is the Department of General Services, except in the case of contracts for professional bond services. The Department of General Services shall consult with the California Disabled Veteran Business Enterprise Program Advocate, appointed by the Secretary of the Department of Veterans Affairs pursuant to Section 999.11, on all matters relating to the California Disabled Veteran Business Enterprise Program. The Director of General Services shall adopt written policies and guidelines establishing a uniform process for state contracting that would provide a disabled veteran business enterprise participation incentive to bidders. The incentive program shall be used by all state agencies when awarding contracts.
(b) The Department of Veterans Affairs shall do all of the following:
(1) Establish a method of monitoring adherence to the goals specified in Sections 999.1 and 999.2.
(2) Promote the California Disabled Veteran Business Enterprise Program to the fullest extent possible.
(3) Maintain complete records of its promotional efforts, including a list that identifies the name, location, number, and type of business, by size and industry sector, attending or participating in a promotional effort.
(4) Establish a system to track the effectiveness of its efforts to promote the California Disabled Veteran Business Enterprise Program. At a minimum, the system shall include an annual comparison of the list of businesses participating in promotional efforts during the current and preceding two years with a list of those businesses that become newly certified disabled veteran business enterprises, and those that become a prime or subcontractor with the state. The result of the annual comparison pursuant to this paragraph shall be one performance measure of the success of the promotional efforts.
(c) An awarding department shall not credit toward the department’s 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that does not meet and maintain the certification requirements.
(d) Upon completion of an awarded contract for which a commitment to achieve a disabled veteran business enterprise goal was made, an awarding department shall require the prime contractor that entered into a subcontract with a disabled veteran business enterprise to certify to the awarding department all of the following:
(1) The total amount the prime contractor received under the contract.
(2) The name and address of the disabled veteran business enterprise that participated in the performance of the contract.
(3) The amount each disabled veteran business enterprise received from the prime contractor.
(4) That all payments under the contract have been made to the disabled veteran business enterprise. An awarding department shall keep that certification on file. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation in the minimum amount of two thousand five hundred dollars ($2,500) and the maximum amount of twenty-five thousand dollars ($25,000). An action for a civil penalty under this subdivision may be brought by any public prosecutor in the name of the people of the State of California and the penalty imposed shall be enforceable as a civil judgment.
(e) An awarding department shall maintain all records of the information provided by the prime contractor pursuant to subdivision (d) and shall establish appropriate review procedures for those records to ensure the accuracy and completeness of the award amounts and paid amounts reported. Records collected pursuant to this subdivision shall be retained for a minimum of six years after collection.
(f) A prime contractor may, subject to the approval of the Department of General Services, replace a disabled veteran business enterprise identified by the prime contractor in its bid or offer, pursuant to subdivision (a) of Section 999.10, with another disabled veteran business enterprise.
(g) The administering agency shall adopt rules and regulations, including standards for good faith efforts, for the purpose of implementing this section. Emergency regulations consistent with this section may be adopted.