AB 460, as introduced, Weber. Veterans: disabled veterans business enterprises.
Existing law requires contracts awarded by any state agency, department, officer, or other state governmental entity, including school districts, as provided, to have statewide participation goals of not less than 3% for disabled veteran business enterprises, as defined.
This bill would make technical, nonsubstantive changes to that provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 999.2 of the Military and Veterans Code
2 is amended to read:
(a) Notwithstanding any otherbegin delete provision ofend delete law,
4contracts awarded by any state agency, department, officer, or
5other state governmental entity, including school districts when
6they are expending state funds for construction, professional
7services (except those subject to Chapter 6 (commencing with
8Section 16850) of Part 3 of Division 4 of Title 2 of the Government
P2 1Code), materials, supplies, equipment, alteration, repair, or
2improvement shall have statewide participation goals of not less
3than 3 percent for disabled veteran business enterprises. These
4goals apply to the overall dollar amount expended each year by
5the awarding department.
6(b) For purposes of thisbegin delete section:end deletebegin insert
section the following definitions
7apply:end insert
8(1) “Broker” or “agent” means any individual or entity, or any
9combination thereof, that does not have title, possession, control,
10and risk of loss of materials, supplies, services, or equipment
11provided to an awarding department, unless one or more certified
12disabled veterans has 51 percent ownership of the quantity and
13value of the materials, supplies, services, and of each piece of
14equipment provided under the contract.
15(2) “Equipment” means any piece of equipment that is used or
16provided for rental to any state agency, department, officer, or
17other state governmental entity, including equipment for which
18operators are provided.
19(3) “Equipment broker” means any broker or agent who rents
20equipment to an awarding department.
21(c) A disabled veteran business enterprise that rents equipment
22to an awarding department shall be deemed to be an equipment
23broker unless one or more disabled veterans has 51-percent
24ownership of the quantity and the value of each piece of equipment.
25If the equipment is owned by one or more disabled veterans, each
26disabled veteran owner shall, prior to performance under any
27contract, submit to the awarding department a declaration signed
28by the disabled veteran owner stating that the owner is a disabled
29veteran and providing the name, address, telephone number, and
30tax identification number of the disabled veteran owner. Each
31disabled veteran owner shall submit his or her federal income tax
32returns to the administering agency pursuant to subdivision (g) as
33if he or she were a disabled veteran business enterprise. The
34disabled veteran business enterprise of a disabled veteran owner
35who fails to submit his or her tax returns will be deemed to be an
36
equipment broker.
37(d) A disabled veteran business enterprise that rents equipment
38to an awarding department shall, prior to performing the contract,
39submit to the awarding department a declaration signed by each
40disabled veteran owner and manager of the enterprise stating that
P3 1the enterprise obtained the contract by representing that the
2enterprise was a disabled veteran business enterprise meeting and
3maintaining all of the requirements of a disabled veteran business
4enterprise. The declaration shall include the name, address,
5telephone number, and tax identification number of the owner of
6each piece of equipment identified in the contract.
7(e) State funds expended for equipment rented from equipment
8brokers pursuant to contracts awarded under this section shall not
9be credited toward the 3-percent goal.
10(f) A
disabled veteran business enterprise that is a broker or
11agent and that obtains a contract pursuant to subdivision (a) shall,
12prior to performing the contract, disclose to the awarding
13department that the business is a broker or agent. The disclosure
14shall be made in a declaration signed and executed by each disabled
15veteran owner and manager of the enterprise, declaring that the
16enterprise is a broker or agent, and identifying the name, address,
17and telephone number of the principal for whom the enterprise is
18acting as a broker or agent.
19(g) (1) A disabled veteran business enterprise, and each owner
20thereof, shall, at the time of certification, submit to the
21administering agency complete copies of the enterprise’s federal
22income tax returns for the three previous tax years.
23(2) A disabled veteran business enterprise, and each owner
24thereof, shall submit to
the administering agency complete copies
25of the enterprise’s federal income tax returns that have a
26postcertification due date, on or before the due date, including
27extensions.
28(3) A disabled veteran business enterprise that, and each owner
29thereof who, has not submitted to the administering agency
30complete copies of the enterprise’s federal income tax returns for
31the three tax years preceding certification nor for each
32postcertification tax year for which a return was required to be
33filed, shall have 90 days to submit those returns.
34(4) A disabled veteran business enterprise that fails to comply
35with any provision of this subdivision shall be prohibited from
36participating in any state contract until the disabled veteran
37business enterprise complies with the provisions of this subdivision.
38Funds expended involving a disabled veteran business enterprise
39during any period in which
that enterprise is not in compliance
P4 1with the provisions of this subdivision shall not be credited toward
2the awarding department’s 3-percent goal.
3(h) A disabled veteran business enterprise that fails to maintain
4the certification requirements set forth in this article shall
5immediately notify the awarding department and the administering
6agency of that failure by filing a notice of failure that states with
7particularity each requirement the disabled veteran business
8enterprise has failed to maintain.
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