Amended in Senate September 6, 2013

Senate Bill No. 722

Introduced by Senator Correa

February 22, 2013

An act to amend Section begin delete 999 end delete begin insert 1341 end insert of the Military and Veterans Code, relating to veterans begin insert , making an appropriation therefor, and declaring the urgency thereof, to take effect immediately end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 722, as amended, Correa. begin delete California Disabled Veteran Business Enterprise Program. end delete begin insert California Mexican American Veterans’ Memorial Beautification and Enhancement Fund end insert begin insert : extension of operation end insert begin insert . end insert

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Existing law requires the Secretary of Veterans Affairs to establish a California Mexican American Veterans’ Memorial Beautification Committee for the purpose of beautification and enhancement of a specified existing memorial on state grounds. Under existing law funds for the beautification and enhancement of the memorial are required to be provided through private contributions and through existing funds collected under the auspices of the former California Mexican American Veterans’ Memorial Beautification Commission. Under existing law these funds are required to be deposited in the California Mexican American Veterans’ Memorial Beautification and Enhancement Account, a continuously appropriated account within the General Fund. Existing law requires any funds remaining in the account as of July 1, 2014, to revert to the General Fund.

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This bill would extend the date for the reversion of funds in this account until July 1, 2016.

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By extending the operation of a continuously appropriated account, this bill would make an appropriation.

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This bill would declare that it is to take effect immediately as an urgency statute.

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Existing law encourages state agencies entering into contracts to establish goals to facilitate the participation of disabled veteran business enterprises, and establishes the California Disabled Veteran Business Enterprise Program for this purpose. Existing law defines “disabled veteran,” for purposes of that program, as a veteran of the military, naval, or air service of the United States, as specified, who has at least 10% service-connected disability and who is domiciled in the state.

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This bill would define “disabled veteran,” for purposes of that program, as a veteran of the Armed Forces of the United States, as specified, who has a service-connected disability, as documented by a letter from any branch of the United States Armed Forces or the federal Department of Veterans Affairs, and who is domiciled in the state.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 1341 of the end insert begin insert Military and Veterans Code end insert
begin insert is amended to read: end insert

1341.  

(a) Notwithstanding Section 13340 of the Government
Code, all funds deposited in the California Mexican American
Veterans’ Memorial Beautification and Enhancement Account
established pursuant to Section 1340 are hereby continuously
appropriated, without regard to fiscal year, to the Department of
Veterans Affairs for the beautification and enhancement of an
existing memorial and surrounding grounds at the State Capitol
pursuant to Chapter 7 (commencing with Section 1330).

(b) On July 1, begin delete 2014, end delete begin insert 2016, end insert any moneys remaining in the
California Mexican American Veterans’ Memorial Beautification
and Enhancement Account shall revert to the General Fund.

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begin insert SEC. 2. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

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In order to prevent the expiration of funding needed for the
beautification and enhancement of the California Mexican
American Veterans’ Memorial, it is necessary for this act to take
effect immediately.

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SECTION 1.  

Section 999 of the Military and Veterans Code is
amended to read:

999.  

(a) This article shall be known as, and may be cited as,
the California Disabled Veteran Business Enterprise Program. The
California Disabled Veteran Business Enterprise Program is
established to address the special needs of disabled veterans
seeking rehabilitation and training through entrepreneurship and
to recognize the sacrifices of Californians disabled during military
service. It is the intent of the Legislature that every state
procurement authority honor California’s disabled veterans by
taking all practical actions necessary to meet or exceed the disabled
veteran business enterprise participation goal of a minimum of 3
percent of total contract value.

(b) As used in this article, the following definitions apply:

(1) “Administering agency” means the Treasurer in the case of
contracts for professional bond services, and the Department of
General Services’ Office of Small Business and Disabled Veteran
Business Enterprise Services, in the case of contracts governed by
Section 999.2.

(2) “Awarding department” means a state agency, department,
governmental entity, or other officer or entity empowered by law
to issue bonds or enter into contracts on behalf of the state.

(3) “Bonds” means bonds, notes, warrants, certificates of
participation, and other evidences of indebtedness issued by, or
on behalf of, the state.

(4) “Contract” includes any agreement or joint agreement to
provide professional bond services to the State of California or an
awarding department. “Contract” also includes any agreement or
joint development agreement to provide labor, services, materials,
supplies, or equipment in the performance of a contract, franchise,
concession, or lease granted, let, or awarded for, and on behalf of,
the state.

(5) (A) “Contractor” means any person or persons, regardless
of race, color, creed, national origin, ancestry, sex, marital status,
disability, religious or political affiliation, age, or any sole
proprietorship, firm, partnership, joint venture, corporation, or
combination thereof that submits a bid and enters into a contract
with a representative of a state agency, department, governmental
entity, or other officer empowered by law to enter into contracts
on behalf of the state. “Contractor” includes any provider of
professional bond services who enters into a contract with an
awarding department.

(B) “Disabled veteran business enterprise contractor,
subcontractor, or supplier” means any person or entity that has
been certified by the administering agency pursuant to this article
and that performs a “commercially useful function,” as defined
below, in providing services or goods that contribute to the
fulfillment of the contract requirements:

(i) A person or an entity is deemed to perform a “commercially
useful function” if a person or entity does all of the following:

(I) Is responsible for the execution of a distinct element of the
work of the contract.

(II) Carries out the obligation by actually performing, managing,
or supervising the work involved.

(III) Performs work that is normal for its business services and
functions.

(IV) Is responsible, with respect to products, inventories,
materials, and supplies required for the contract, for negotiating
price, determining quality and quantity, ordering, installing, if
applicable, and making payment.

(V) Is not further subcontracting a portion of the work that is
greater than that expected to be subcontracted by normal industry
practices.

(ii) A contractor, subcontractor, or supplier will not be
considered to perform a “commercially useful function” if the
contractor’s, subcontractor’s, or supplier’s role is limited to that
of an extra participant in a transaction, contract, or project through
which funds are passed in order to obtain the appearance of a
disabled veteran business enterprise participation.

(6) “Disabled veteran” means a veteran of the Armed Forces of
the United States, including, but not limited to, the Philippine
Commonwealth Army, the Regular Scouts, “Old Scouts,” and the
Special Philippine Scouts, “New Scouts,” who has a
service-connected disability, as documented by a letter from any
branch of the United States Armed Forces or the federal
Department of Veterans Affairs, and who is domiciled in the state.

(7) (A) “Disabled veteran business enterprise” means a business
certified by the administering agency as meeting all of the
following requirements:

(i) It is a sole proprietorship at least 51 percent owned by one
or more disabled veterans or, in the case of a publicly owned
business, at least 51 percent of its stock is unconditionally owned
by one or more disabled veterans; a subsidiary that is wholly owned
by a parent corporation, but only if at least 51 percent of the voting
stock of the parent corporation is unconditionally owned by one
or more disabled veterans; or a joint venture in which at least 51
percent of the joint venture’s management, control, and earnings
are held by one or more disabled veterans.

(ii) The management and control of the daily business operations
are by one or more disabled veterans. The disabled veterans who
exercise management and control are not required to be the same
disabled veterans as the owners of the business.

(iii) It is a sole proprietorship, corporation, or partnership with
its home office located in the United States, which is not a branch
or subsidiary of a foreign corporation, foreign firm, or other
foreign-based business.

(B) Notwithstanding subparagraph (A), after the death or the
certification of a permanent medical disability of a disabled veteran
who is a majority owner of a business that qualified as a disabled
veteran business enterprise prior to that death or certification of a
permanent medical disability, and solely for purposes of any
contract entered into before that death or certification, that business
shall be deemed to be a disabled veteran business enterprise for a
period not to exceed three years after the date of that death or
certification of a permanent medical disability, if the business is
inherited or controlled by the spouse or child of that majority
owner, or by both of those persons.

(8) “Foreign corporation,” “foreign firm,” or “foreign-based
business” means a business entity that is incorporated or has its
principal headquarters located outside the United States of
America.

(9) “Goal” means a numerically expressed objective that
awarding departments and contractors are required to make efforts
to achieve.

(10) “Management and control” means effective and
demonstrable management of the business entity.

(11) “Professional bond services” include services as financial
advisers, bond counsel, underwriters in negotiated transactions,
underwriter’s counsel, financial printers, feasibility consultants,
and other professional services related to the issuance and sale of
bonds.

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