California Legislature—2013–14 Regular Session

Assembly BillNo. 717

Introduced by Assembly Member Chávez

February 21, 2013

An act to amend Section 999.51 of the Military and Veterans Code, relating to veterans.


AB 717, as introduced, Chávez. Nonprofit veteran service agencies.

Existing law allows a nonprofit veteran service agency, as defined, to be eligible for certification as a small business, as described, and be granted a small business bid preference, provided certain requirements are met.

This bill would make a nonsubstantive change to that provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

P1    1


Section 999.51 of the Military and Veterans Code
2 is amended to read:



(a) A nonprofit veteran service agency shall be eligible
4for certification as a small business under the Small Business
5Procurement and Contract Act, as described in Chapter 6.5
6(commencing with Section 14835) of Part 5.5 of Division 3 of
7Title 2 of the Government Code, and may be granted a small
8business bid preference if it meets all of the following conditions:

9(1) The goods or services meet the specifications and needs of
10the purchasing agency.

P2    1(2) The goods or services are purchased at a fair and reasonable
2price, as determined by the appropriate state or local agency.

3(3) The nonprofit veteran service agency complies with all of
4the following requirements:

5(A) The nonprofit veteran service agency shall employ veterans
6receiving services from the nonprofit veteran service agency for
7not less than 75 percent of the person-hours of direct labor required
8for the production of goods and the provision of services performed
9pursuant to a contract under this section.

10(B) The nonprofit veteran service agency agrees to make those
11elections permitted of any nonprofit corporation under the Federal
12Insurance Contributions Act (26 U.S.C. Sec. 3103 et seq.) and the
13Unemployment Insurance Code in order to provide social security
14and unemployment and disability benefits for its employees,
15commencing with its first contract or purchase order under this
16section and continuing thereafter. In the event that the nonprofit
17veteran service agency ceases to provide those benefits, any
18 existing contract or purchase order under this section with the
19nonprofit veteran service agency is terminated and no further
20contracts or purchase orders shall be awarded to that nonprofit
21veteran service agency for the period of two years after the
22nonprofit veteran service agency ceases to provide the benefits.

23(C) The nonprofit veteran service agency does not commit any
24unfair labor practices, as defined in the National Labor Relations
25Act, at Section 158 of Title 29 of the United States Code.

26(D) The nonprofit veteran service agency abides by the
27provisions of the federal Fair Labor Standards Act of 1938 (29
28U.S.C. Sec. 201 et seq.), the Walsh-Healy Public Contract Act (41
29U.S.C. Sec. 35 et seq.), and the regulations of the Department of
30Industrial Relations (8 Cal. Code Regs. 1 et seq.).

31(b) For purposes of this sectionbegin insert, all of the following shall applyend insert:

32(1) “Nonprofit veteran service agency” means a
33community-based organization that meets the following

35(A) It is exempt from tax under Section 501(c)(3) of the Internal
36Revenue Code.

37(B) Its principal purpose is to provide housing, substance abuse,
38case management, and employment training services for
39low-income veterans, disabled veterans, or homeless veterans and
40their families.

P3    1(2) “Direct labor” includes all work required for preparation,
2processing, and packing of a good, or work directly relating to the
3performance of a service, excluding supervision, administration,
4inspection, and shipping.

5(3) A veteran receiving services from the nonprofit veteran
6service agency shall be considered an employee when performing
7productive work.