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 ----------------------------------------------------------------- |Policy |Jobs, Economic Development, |Vote:|9 - 0 | |Committee: |and the Economy | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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