BILL ANALYSIS Ó
AB 413
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
413 (Chávez) - As Amended March 16, 2015
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|Committee: |and the Economy | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill, following the death or permanent disability of an
owner of a certified disabled veteran-owned business enterprise
(DVBE), authorizes a spouse or child to enter into additional
state contracts during the three years currently permitted for
AB 413
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the continued operation of a DVBE. Existing law limits the
business' activities to the completion of existing contracts.
FISCAL EFFECT:
Unknown, likely minor state impact. The Department of General
Services (DGS) anticipates a small increase in the number of
firms capable of claiming DVBE status for purposes of new
contract awards. DGS also notes minor administrative costs
related to rulemaking.
COMMENTS:
1)Background. The Disabled Veteran Business Enterprise Program
(DVBE) was established in 1989 to acknowledge California
disabled veterans for their sacrifice and service to the
State. The program mandates DVBE participation in state
contracting to promote competition and encourage greater
economic opportunity for DVBE contractors. Agencies and
departments are legislatively mandated to meet annual goals of
3% DVBE participation statewide and ensure a portion of the
state's overall annual contract dollars are awarded to
certified DVBE businesses.
2)Purpose. The DVBE program authorizes a child or spouse of a
qualified veteran to continue to operate a DVBE for 3 years
after the death or the certification of a permanent medical
disability of a disabled veteran who was the majority owner of
that DVBE, but only for purposes of any contract entered into
before his or her death or certification of disability.
AB 413
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This bill deletes the provision requiring contracts to be
entered into before death or certification of disability,
thereby allowing for new contracts within the three year
period. According to the author, this provides the families
time to continue the business after the death or disability of
a veteran without an immediate end to the business.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081