BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 413


                                                                    Page  1





          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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          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