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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          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    
                                                                    FN:  
          0001689