BILL ANALYSIS Ó
AB 413
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CONCURRENCE IN SENATE AMENDMENTS
AB
413 (Chávez)
As Amended June 30, 2015
Majority vote
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|ASSEMBLY: |78-0 |(May 14, 2015) |SENATE: |39-0 |(September 1, |
| | | | | |2015) |
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Original Committee Reference: J., E.D., & E.
SUMMARY: Authorizes a spouse or child to enter into additional
state contracts during the existing three-year designation
extension following the death or permanent disability of an
owner of a certified disabled veteran-owned business enterprise
(DVBE). Existing law limits business activities to the
completion of contracts entered into prior to death or permanent
disability of the veteran owner.
The Senate amendments add legislative intent as to the purposes
of the bill and clarify that all existing contracts at the time
of the disabled veteran's death or permanent disability may be
completed and that all new state contracts are also required to
be completed within the three-year time period.
EXISTING LAW:
AB 413
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1)Establishes the California Disabled Veteran Business
Enterprise Program for the purpose of addressing the special
needs of disabled veterans seeking rehabilitation and training
through entrepreneurship and to recognize the sacrifices
California's disabled veterans made during their military
service.
2)Designates the Department of General Services (DGS) as the
administrator of the state Small Business Procurement and
Contract Act (Small Business Procurement Act), including the
oversight of the California Disabled Veteran Business
Enterprise Program and the certification of the DVBEs.
FISCAL EFFECT: According to the Senate Appropriations
Committee, the aggregate impact of this bill is unknown. Some
of these factors would potentially increase state costs, while
others would likely lead to a reduction in state costs. DGS
would incur minor and absorbable costs related to rulemaking.
COMMENTS: California is home to 1.8 million veterans,
representing 8% of the total United States veteran population.
This bill proposes to extend new contracting authority for a
previously certified DVBE, which is owned and operated by a
spouse or child of a qualifying disabled veteran following their
death or permanent disability. Current law only allows the
business to complete existing contracts during the three-year
DBVE designation extension period. This bill authorizes the
family to bid on and complete additional state contracts during
the same three-year period.
Background: California, Texas, and Florida have the highest
number of veterans among the 50 states. Approximately 1.8
million veterans live in California, with an additional 30,000
being discharged into the state each year.
The veteran populations in Los Angeles, Orange, Riverside,
Sacramento, San Bernardino, San Diego, and Ventura Counties are
among the highest in the United States. Based on age, the
AB 413
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United States Department of Veterans Affairs (VA) reports that
California has a greater percentage of veterans under the age of
25 than the rest of the country, as well as the largest overall
number of older veterans.
The federal Small Business Administration estimates that the
most common industry sector in which veterans participate is the
professional, science, and technology services sector, with
20.4% of all veteran-owned businesses being within the industry
sector. California veterans also tend to be entrepreneurs at
higher rates than the national average, 13.2% vs. 10.9%.
Approximately four million California veterans receive some
level of VA disability compensation, with about 500,000 of those
individuals certified as 100% disabled. Given the aging
population of the veterans who served in Vietnam, and the
significant nature of the medical challenges faced by the
younger veteran population, the number of DVBEs potentially
impacted by this bill is likely to increase in the coming
decade.
Analysis Prepared by:
Toni Symonds / J., E.D., & E. / (916) 319-2090
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