BILL NUMBER: AB 2249	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 11, 2010
	AMENDED IN ASSEMBLY  APRIL 28, 2010
	AMENDED IN ASSEMBLY  APRIL 13, 2010

INTRODUCED BY   Assembly Member Ruskin

                        FEBRUARY 18, 2010

   An act to add Section 14840 to the Government Code,   and to
amend Section 999.2 of the Military and Veterans Code, 
relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2249, as amended, Ruskin. State government: small business or
disabled veteran business enterprise certification.
   Existing law, the Small Business Procurement and Contract Act,
encourages the participation of a small business enterprise,
including, but not limited to, a microbusiness, or a disabled veteran
business enterprise that is certified by the Department of General
Services in state contracts. Existing law requires those business
enterprises to submit certain information under penalty of perjury.
   Existing law, the California Disabled Veterans Business Enterprise
Program, establishes a disabled veteran business enterprise
participation goal of 3% for certain state procurement contracts.
Existing law requires a disabled veteran business enterprise to
provide the administering agency with prescribed information,
including, but not limited to, federal income tax returns and whether
the enterprise is an equipment broker, as defined.
   This bill would restate provisions related to the 3% participation
goal for disabled veteran business enterprises, and would require a
small business or a disabled veteran business enterprise to submit to
the department a written declaration, under penalty of perjury, that
all information submitted, including the additional information for
disabled veteran business enterprises, is true and correct, and would
authorize the department to require, in certain cases, the
enterprise to complete and submit to the department a specified
federal tax form requesting a transcript of a tax return. By
expanding the definition of the existing crime of perjury, this bill
would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14840 is added to the Government Code, to read:

   14840.  (a) In the process of certifying and determining the
eligibility of a disabled veteran business enterprise or a small
business enterprise, including, but not limited to, a microbusiness,
the department shall require the enterprise to submit a written
declaration, under penalty of perjury, that the information submitted
to the department pursuant to this chapter, and in the case of a
disabled veteran enterprise all information submitted to the
department pursuant to subdivision (c), is true and correct.
   (b)  (1)    If the department determines that
just cause exists, it may require the enterprise to complete and
submit to the department a federal Form 4506-T from the Internal
Revenue Service, United States Department of the Treasury, requesting
a transcript of a tax return. 
   (2) For the purposes of this subdivision, "just cause" means
either of the following circumstances exists:  
   (A) The department receives a complaint regarding the disabled
veteran business enterprise.  
   (B) The department determines, based on its findings during the
course of any audit of the disabled veteran business enterprise, that
the action described in paragraph (1) is necessary. 
   (c) (1) Notwithstanding any other law, contracts awarded by any
state agency, department, officer, or other state governmental
entity, including school districts when they are expending state
funds for construction, professional services (except those subject
to Chapter 6 (commencing with Section 16850) of Part 3 of Division
4), materials, supplies, equipment, alteration, repair, or
improvement shall have statewide participation goals of not less than
3 percent for disabled veteran business enterprises. These goals
apply to the overall dollar amount expended each year by the awarding
department.
   (2) For purposes of this subdivision:
   (A) "Broker" or "agent" means any individual or entity, or any
combination thereof, that does not have title, possession, control,
and risk of loss of materials, supplies, services, or equipment
provided to an awarding department, unless one or more certified
disabled veterans has 51 percent ownership of the quantity and value
of the materials, supplies, services, and of each piece of equipment
provided under the contract.
   (B) "Equipment" means any piece of equipment that is used or
provided for rental to any state agency, department, officer, or
other state governmental entity, including equipment for which
operators are provided.
   (C) "Equipment broker" means any broker or agent who rents
equipment to an awarding department.
   (3) A disabled veteran business enterprise that rents equipment to
an awarding department shall be deemed to be an equipment broker
unless one or more disabled veterans has 51-percent ownership of the
quantity and the value of each piece of equipment. If the equipment
is owned by one or more disabled veterans, each disabled veteran
owner shall, prior to performance under any contract, submit to the
awarding department a declaration signed by the disabled veteran
owner stating that the owner is a disabled veteran and providing the
name, address, telephone number, and tax identification number of the
disabled veteran owner. Each disabled veteran owner shall submit his
or her federal income tax returns to the administering agency
pursuant to paragraph (7) as if he or she were a disabled veteran
business enterprise. The disabled veteran business enterprise of a
disabled veteran owner who fails to submit his or her tax returns
shall be deemed to be an equipment broker.
   (4) A disabled veteran business enterprise that rents equipment to
an awarding department shall, prior to performing the contract,
submit to the awarding department a declaration signed by each
disabled veteran owner and manager of the enterprise stating that the
enterprise obtained the contract by representing that the enterprise
was a disabled veteran business enterprise meeting and maintaining
all of the requirements of a disabled veteran business enterprise.
The declaration shall include the name, address, telephone number,
and tax identification number of the owner of each piece of equipment
identified in the contract.
   (5) State funds expended for equipment rented from equipment
brokers pursuant to contracts awarded under this subdivision shall
not be credited toward the 3-percent goal.
   (6) A disabled veteran business enterprise that is a broker or
agent and that obtains a contract pursuant to paragraph (1) shall,
prior to performing the contract, disclose to the awarding department
that the business is a broker or agent. The disclosure shall be made
in a declaration signed and executed by each disabled veteran owner
and manager of the enterprise, declaring that the enterprise is a
broker or agent, and identifying the name, address, and telephone
number of the principal for whom the enterprise is acting as a broker
or agent.
   (7) (A) A disabled veteran business enterprise, and each owner
thereof, shall, at the time of certification, submit to the
administering agency complete copies of the enterprise's federal
income tax returns for the three previous tax years.
   (B) A disabled veteran business enterprise, and each owner
thereof, shall submit to the administering agency complete copies of
the enterprise's federal income tax returns that have a
postcertification due date, on or before the due date, including
extensions.
   (C) A disabled veteran business enterprise that, and each owner
thereof who, has not submitted to the administering agency complete
copies of the enterprise's federal income tax returns for the three
tax years preceding certification nor for each postcertification tax
year for which a return was required to be filed, shall have 90 days
to submit those returns.
   (D) A disabled veteran business enterprise that fails to comply
with any provision of this paragraph shall be prohibited from
participating in any state contract until the disabled veteran
business enterprise complies with the provisions of this paragraph.
Funds expended involving a disabled veteran business enterprise
during any period in which that enterprise is not in compliance with
the provisions of this paragraph shall not be credited toward the
awarding department's 3-percent goal.
   (8) A disabled veteran business enterprise that fails to maintain
the certification requirements set forth in Article 6 (commencing
with Section 999) of Chapter 6 of Division 4 of the Military and
Veterans Code, shall immediately notify the awarding department and
the administering agency of that failure by filing a notice of
failure that states with particularity each requirement the disabled
veteran business enterprise has failed to maintain.
   SEC. 2.    Section 999.2 of the   Military
and Veterans Code   is amended to read: 
   999.2.  (a) Notwithstanding any other provision of law, contracts
awarded by any state agency, department, officer, or other state
governmental entity, including school districts when they are
expending state funds for construction, professional services (except
those subject to Chapter 6 (commencing with Section 16850) of Part 3
of Division 4 of Title 2 of the Government Code), materials,
supplies, equipment, alteration, repair, or improvement shall have
statewide participation goals of not less than 3 percent for disabled
veteran business enterprises. These goals apply to the overall
dollar amount expended each year by the awarding department.
   (b) For purposes of this section:
   (1) "Broker" or "agent" means any individual or entity, or any
combination thereof, that does not have title, possession, control,
and risk of loss of materials, supplies, services, or equipment
provided to an awarding department, unless one or more certified
disabled veterans has 51 percent ownership of the quantity and value
of the materials, supplies, services, and of each piece of equipment
provided under the contract.
   (2) "Equipment" means any piece of equipment that is used or
provided for rental to any state agency, department, officer, or
other state governmental entity, including equipment for which
operators are provided.
   (3) "Equipment broker" means any broker or agent who rents
equipment to an awarding department.
   (c) A disabled veteran business enterprise that rents equipment to
an awarding department shall be deemed to be an equipment broker
unless one or more disabled veterans has 51-percent ownership of the
quantity and the value of each piece of equipment. If the equipment
is owned by one or more disabled veterans, each disabled veteran
owner shall, prior to performance under any contract, submit to the
awarding department a declaration signed by the disabled veteran
owner stating that the owner is a disabled veteran and providing the
name, address, telephone number, and tax identification number of the
disabled veteran owner. Each disabled veteran owner shall submit his
or her federal income tax returns to the administering agency
pursuant to subdivision (g) as if he or she were a disabled veteran
business enterprise. The disabled veteran business enterprise of a
disabled veteran owner who fails to submit his or her tax returns
will be deemed to be an equipment broker.
   (d) A disabled veteran business enterprise that rents equipment to
an awarding department shall, prior to performing the contract,
submit to the awarding department a declaration signed by each
disabled veteran owner and manager of the enterprise stating that the
enterprise obtained the contract by representing that the enterprise
was a disabled veteran business enterprise meeting and maintaining
all of the requirements of a disabled veteran business enterprise.
The declaration shall include the name, address, telephone number,
and tax identification number of the owner of each piece of equipment
identified in the contract.
   (e) State funds expended for equipment rented from equipment
brokers pursuant to contracts awarded under this section shall not be
credited toward the 3-percent goal.
   (f) A disabled veteran business enterprise that is a broker or
agent and that obtains a contract pursuant to subdivision (a) shall,
prior to performing the contract, disclose to the awarding department
that the business is a broker or agent. The disclosure shall be made
in a declaration signed and executed by each disabled veteran owner
and manager of the enterprise, declaring that the enterprise is a
broker or agent, and identifying the name, address, and telephone
number of the principal for whom the enterprise is acting as a broker
or agent.
   (g) (1) A disabled veteran business enterprise, and each owner
thereof, shall, at the time of certification, submit to the
administering agency complete copies of the enterprise's federal
income tax returns for the three previous tax years.
   (2) A disabled veteran business enterprise, and each owner
thereof, shall submit to the administering agency complete copies of
the enterprise's federal income tax returns that have a
postcertification due date, on or before the due date, including
extensions.
   (3) A disabled veteran business enterprise that, and each owner
thereof who, has not submitted to the administering agency complete
copies of the enterprise's federal income tax returns for the three
tax years preceding certification nor for each postcertification tax
year for which a return was required to be filed, shall have 90 days
to submit those returns.
   (4) A disabled veteran business enterprise that fails to comply
with any provision of this subdivision shall be prohibited from
participating in any state contract until the disabled veteran
business enterprise complies with the provisions of this subdivision.
Funds expended involving a disabled veteran business enterprise
during any period in which that enterprise is not in compliance with
the provisions of this subdivision shall not be credited toward the
awarding department's 3-percent goal.
   (h) A disabled veteran business enterprise that fails to maintain
the certification requirements set forth in this article shall
immediately notify the awarding department and the administering
agency of that failure by filing a notice of failure that states with
particularity each requirement the disabled veteran business
enterprise has failed to maintain. 
   (i) The department shall require a disabled veteran business
enterprise to file with the department a completed Form 4506-T from
the federal Internal Revenue Service, United States Department of the
Treasury, also known as a Request for Transcript of Tax Return, if
either of the following circumstances exists:  
   (1) The department receives a complaint regarding the disabled
veteran business enterprise.  
   (2) The department determines, based on its findings during the
course of any audit of the disabled veteran business enterprise, that
it is necessary to require a Request for Transcript of Tax Return.

   SEC. 2.   SEC. 3.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.