BILL ANALYSIS AB 2249 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2249 (Ruskin) As Amended July 15, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |63-0 |(May 28, 2010) |SENATE: |34-0 |(August 9, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: J., E.D. & E. SUMMARY : Requires the Department of General Services (DGS) to require a Disabled Veteran Business Enterprise (DVBE) to file a completed form 4506-T from the federal Internal Revenue Service (IRS), also known as a Request for Transcript of Tax Return, as specified. The Senate amendments : 1)Specify that at least 51% of the stock or voting stock of a publicly owned business be unconditionally owned by a DVBE. 2)Define "just cause" as specified. 3)Delete section 999.2 of the Military and Veterans Code from the bill and instead adds a cross reference to the government code specifying all the information submitted to DGS pursuant to Section 999.2 of the Military and Veterans Code is true and correct. 4)Make several technical changes. EXISTING LAW : 1)Provides that DGS is the administering agency of the California DVBE Program. 2)Sets an annual DVBE contract participation goal of 3% for each state department which awards contacts, including school districts, when expending certain state moneys for goods and services and defines DVBE as specified. 3)Requires state entities contracting for materials, supplies, equipment, alterations, or repairs to meet specified DVBE participation goals when submitting a bid for a state contract, including the requirement that the bid go to the lowest AB 2249 Page 2 responsible bidder that meets the goal. AS PASSED BY THE ASSEMBLY , this bill requires the Department of General Services (DGS) to require a DVBE to file a completed form 4506-T from the federal Internal Revenue Service (IRS), also known as a Request for Transcript of Tax Return, if DGS has received a complaint regarding the DVBE; or if the DVBE is being audited by DGS. FISCAL EFFECT : According to the Senate Appropriations Committee analysis, there are no significant costs associated with this legislation. COMMENT : This bill will help in limiting the number of claims that DVBEs have been fraudulently added to contracts without any real intention that they would perform a commercially useful function Analysis Prepared by : Mercedes Flores / J., E.D. & E. / (916) 319-2090 FN: 0005407