AB 1302, as introduced, Brown. Public Contracts: disabled veterans.
Existing law requires a state agency, department, officer, or other state governmental entity to meet an annual statewide participation goal of not less than 3% for disabled veteran business enterprises for specified contracts entered into by the awarding department during the year.
This bill would increase that participation goal to 5%.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 999 of the Military and Veterans Code
2 is amended to read:
(a) This article shall be known as, and may be cited as,
4the California Disabled Veteran Business Enterprise Program. The
5California Disabled Veteran Business Enterprise Program is
6established to address the special needs of disabled veterans
7seeking rehabilitation and training through entrepreneurship and
8to recognize the sacrifices of Californians disabled during military
P2 1service. It is the intent of the Legislature that every state
2procurement authority honor California’s disabled veterans by
3taking all practical actions necessary to meet or exceed the disabled
4veteran business enterprise participation goal of a minimum of
begin delete 3end delete
5 percent of total contract value.
6(b) As used in this article, the following definitions apply:
7(1) “Administering agency” means the Treasurer in the case of
8contracts for professional bond services, and the Department of
9General Services’ Office of Small Business and Disabled Veteran
10Business Enterprise Services, in the case of contracts governed by
12(2) “Awarding department” means a state agency, department,
13governmental entity, or other officer or entity empowered by law
14to issue bonds or enter into contracts on behalf of the state.
15(3) “Bonds” means bonds, notes, warrants, certificates of
16participation, and other evidences of indebtedness issued by, or
17on behalf of, the state.
18(4) “Contract” includes any agreement or joint agreement to
19provide professional bond services to the State of California or an
20awarding department. “Contract” also includes any agreement or
21joint development agreement to provide labor, services, materials,
22supplies, or equipment in the performance of a contract, franchise,
23concession, or lease granted, let, or awarded for, and on behalf of,
25(5) (A) “Contractor” means any person or persons, regardless
26of race, color, creed, national origin, ancestry, sex, marital status,
27disability, religious or political affiliation, age, or any sole
28proprietorship, firm, partnership, joint venture, corporation, or
29combination thereof that submits a bid and enters into a contract
30with a representative of a state agency, department, governmental
31entity, or other officer empowered by law to enter into contracts
32on behalf of the state. “Contractor” includes any provider of
33professional bond services who enters into a contract with an
35(B) “Disabled veteran business enterprise contractor,
36subcontractor, or supplier” means any person or entity that has
37been certified by the administering agency pursuant to this article
38and that performs a “commercially useful function,” as defined
39below, in providing services or goods that contribute to the
40fulfillment of the contract requirements:
P3 1(i) A person or an entity is deemed to perform a “commercially
2useful function” if a person or entity does all of the following:
3(I) Is responsible for the execution of a distinct element of the
4work of the contract.
5(II) Carries out the obligation by actually performing, managing,
6or supervising the work involved.
7(III) Performs work that is normal for its business services and
9(IV) Is responsible, with respect to products, inventories,
10materials, and supplies required for the contract, for negotiating
11price, determining quality and quantity, ordering, installing, if
12applicable, and making payment.
13(V) Is not further subcontracting a portion of the work that is
14greater than that expected to be subcontracted by normal industry
16(ii) A contractor, subcontractor, or supplier will not be
17considered to perform a “commercially useful function” if the
18contractor’s, subcontractor’s, or supplier’s role is limited to that
19of an extra participant in a transaction, contract, or project through
20which funds are passed in order to obtain the appearance of a
21disabled veteran business enterprise participation.
22(6) “Disabled veteran” means a veteran of the military, naval,
23or air service of the United States, including, but not limited to,
24the Philippine Commonwealth Army, the Regular Scouts, “Old
25Scouts,” and the Special Philippine Scouts, “New Scouts,” who
26has at least a 10-percent service-connected disability and who is
27domiciled in the state.
28(7) (A) “Disabled veteran business enterprise” means a business
29certified by the administering agency as meeting all of the
31(i) It is a sole proprietorship at least 51 percent owned by one
32or more disabled veterans or, in the case of a publicly owned
33business, at least 51 percent of its stock is unconditionally owned
34by one or more disabled veterans; a subsidiary that is wholly owned
35by a parent corporation, but only if at least 51 percent of the voting
36stock of the parent corporation is unconditionally owned by one
37or more disabled veterans; or a joint venture in which at least 51
38percent of the joint venture’s management, control, and earnings
39are held by one or more disabled veterans.
P4 1(ii) The management and control of the daily business operations
2are by one or more disabled veterans. The disabled veterans who
3exercise management and control are not required to be the same
4disabled veterans as the owners of the business.
5(iii) It is a sole proprietorship, corporation, or partnership with
6its home office located in the United States, which is not a branch
7or subsidiary of a foreign corporation, foreign firm, or other
9(B) Notwithstanding subparagraph (A),
after the death or the
10certification of a permanent medical disability of a disabled veteran
11who is a majority owner of a business that qualified as a disabled
12veteran business enterprise prior to that death or certification of a
13permanent medical disability, and solely for purposes of any
14contract entered into before that death or certification, that business
15shall be deemed to be a disabled veteran business enterprise for a
16period not to exceed three years after the date of that death or
17certification of a permanent medical disability, if the business is
18inherited or controlled by the spouse or child of that majority
19owner, or by both of those persons.
20(8) “Foreign corporation,” “foreign firm,” or “foreign-based
21business” means a business entity that is incorporated or has its
22principal headquarters located outside the United States of
24(9) “Goal” means a numerically
expressed objective that
25awarding departments and contractors are required to make efforts
27(10) “Management and control” means effective and
28demonstrable management of the business entity.
29(11) “Professional bond services” include services as financial
30advisers, bond counsel, underwriters in negotiated transactions,
31underwriter’s counsel, financial printers, feasibility consultants,
32and other professional services related to the issuance and sale of
Section 999.1 of the Military and Veterans Code is
35amended to read:
(a) (1) Notwithstanding any other provision of law,
37each awarding department shall have annual statewide participation
38goals of not less than
begin delete 3end delete percent for disabled veteran business
39enterprises for contracts entered into by the awarding department
40during the year for professional bond services. This section shall
P5 1not apply if a contract for professional bond services of an
2underwriter is to be obtained by competitive bid. However, each
3awarding department shall establish goals for contracts to be
4obtained by competitive bid for professional bond services.
5(2) These goals shall apply to the overall dollar amount
6expended by the awarding department with respect to the contracts
7for professional bond services relating to the issuance of bonds by
8the awarding department, including amounts spent as underwriter’s
10(b) In attempting to meet the goals set forth in subdivision (a),
11the awarding department shall consider establishing cocounsel,
12joint venture, and subcontracting relationships, including disabled
13veteran business enterprises, in all contracts for professional bond
14services. It shall be the responsibility of the head of each awarding
15department to be supportive of the Treasurer’s program for
16assigning representative portions of professional bond services
17contracts for purposes of meeting the goals established pursuant
18to this section. However, nothing in this article shall preclude the
19awarding department from achieving the goals set forth in this
20section without requiring joint ventures, cocounsel, or
22(c) This section shall not limit the ability of any awarding
23department to meet a goal higher than those set forth in subdivision
24(a) for the participation of disabled veteran business enterprises
25in contracts awarded by the awarding department.
Section 999.2 of the Military and Veterans Code is
27amended to read:
(a) Notwithstanding any other provision of law,
29contracts awarded by any state agency, department, officer, or
30other state governmental entity, including school districts when
31they are expending state funds for construction, professional
32services (except those subject to Chapter 6 (commencing with
33Section 16850) of Part 3 of Division 4 of Title 2 of the Government
34Code), materials, supplies, equipment, alteration, repair, or
35improvement shall have statewide participation goals of not less
begin delete 3end delete percent for disabled veteran business enterprises. These
37goals apply to the overall dollar amount expended each year by
38the awarding department.
39(b) For purposes of this section:
P6 1(1) “Broker” or “agent” means any individual or entity, or any
2combination thereof, that does not have title, possession, control,
3and risk of loss of materials, supplies, services, or equipment
4provided to an awarding department, unless one or more certified
5disabled veterans has 51 percent ownership of the quantity and
6value of the materials, supplies, services, and of each piece of
7equipment provided under the contract.
8(2) “Equipment” means any piece of equipment that is used or
9provided for rental to any state agency, department, officer, or
10other state governmental entity, including equipment for which
11operators are provided.
12(3) “Equipment broker” means any broker or
agent who rents
13equipment to an awarding department.
14(c) A disabled veteran business enterprise that rents equipment
15to an awarding department shall be deemed to be an equipment
16broker unless one or more disabled veterans has 51-percent
17ownership of the quantity and the value of each piece of equipment.
18If the equipment is owned by one or more disabled veterans, each
19disabled veteran owner shall, prior to performance under any
20contract, submit to the awarding department a declaration signed
21by the disabled veteran owner stating that the owner is a disabled
22veteran and providing the name, address, telephone number, and
23tax identification number of the disabled veteran owner. Each
24disabled veteran owner shall submit his or her federal income tax
25returns to the administering agency pursuant to subdivision (g) as
26if he or she were a disabled veteran business enterprise. The
27disabled veteran business enterprise of a disabled veteran owner
28who fails to submit his or her tax returns will be deemed to be an
30(d) A disabled veteran business enterprise that rents equipment
31to an awarding department shall, prior to performing the contract,
32submit to the awarding department a declaration signed by each
33disabled veteran owner and manager of the enterprise stating that
34the enterprise obtained the contract by representing that the
35enterprise was a disabled veteran business enterprise meeting and
36maintaining all of the requirements of a disabled veteran business
37enterprise. The declaration shall include the name, address,
38telephone number, and tax identification number of the owner of
39each piece of equipment identified in the contract.
P7 1(e) State funds expended for equipment rented from equipment
2brokers pursuant to contracts awarded under this section shall not
3be credited toward the
begin delete 3-percentend delete goal.
4(f) A disabled veteran business enterprise that is a broker or
5agent and that obtains a contract pursuant to subdivision (a) shall,
6prior to performing the contract, disclose to the awarding
7department that the business is a broker or agent. The disclosure
8shall be made in a declaration signed and executed by each disabled
9veteran owner and manager of the enterprise, declaring that the
10enterprise is a broker or agent, and identifying the name, address,
11and telephone number of the principal for whom the enterprise is
12acting as a broker or agent.
13(g) (1) A disabled veteran business enterprise, and each owner
14thereof, shall, at the time of certification, submit to the
15administering agency complete copies of the enterprise’s federal
16income tax returns for the three previous tax years.
17(2) A disabled veteran business enterprise, and each owner
18thereof, shall submit to the administering agency complete copies
19of the enterprise’s federal income tax returns that have a
20postcertification due date, on or before the due date, including
22(3) A disabled veteran business enterprise that, and each owner
23thereof who, has not submitted to the administering agency
24complete copies of the enterprise’s federal income tax returns for
25the three tax years preceding certification nor for each
26postcertification tax year for which a return was required to be
27filed, shall have 90 days to submit those returns.
28(4) A disabled veteran business enterprise that fails to comply
29with any provision of this subdivision shall be prohibited from
30participating in any state contract until the disabled veteran
31business enterprise complies with the provisions of this subdivision.
32Funds expended involving a disabled veteran business enterprise
33during any period in which that enterprise is not in compliance
34with the provisions of this subdivision shall not be credited toward
35the awarding department’s
begin delete 3-percentend delete goal.
36(h) A disabled veteran business enterprise that fails to maintain
37the certification requirements set forth in this article shall
38immediately notify the awarding department and the administering
39agency of that failure by filing a notice of failure that states with
P8 1particularity each requirement the disabled veteran business
2enterprise has failed to maintain.
Section 999.5 of the Military and Veterans Code is
4amended to read:
(a) The administering agency for the California Disabled
6Veteran Business Enterprise Program is the Department of General
7Services, except in the case of contracts for professional bond
8services. The Department of General Services shall consult with
9the California Disabled Veteran Business Enterprise Program
10Advocate, appointed by the Secretary of the Department of
11Veterans Affairs pursuant to Section 999.11, on all matters relating
12to the California Disabled Veteran Business Enterprise Program.
13The Director of General Services shall adopt written policies and
14guidelines establishing a uniform process for state contracting that
15would provide a disabled veteran business enterprise participation
16incentive to bidders. The incentive program shall be used by all
17state agencies when awarding contracts.
18(b) The Department of Veterans Affairs shall do all of the
20(1) Establish a method of monitoring adherence to the goals
21specified in Sections 999.1 and 999.2.
22(2) Promote the California Disabled Veteran Business Enterprise
23Program to the fullest extent possible.
24(3) Maintain complete records of its promotional efforts.
25(4) Establish a system to track the effectiveness of its efforts to
26promote the California Disabled Veteran Business Enterprise
27Program, which shall include regular, periodic surveys of newly
28certified disabled veteran business enterprises to determine how
29they learned of the program, why they became certified, and what
30their experience with awarding departments has been.
31(c) An awarding department shall not credit toward the
begin delete 3-percentend delete goal state funds expended on a
33contract with a disabled veteran business enterprise that does not
34meet and maintain the certification requirements.
35(d) Upon completion of an awarded contract for which a
36commitment to achieve a disabled veteran business enterprise goal
37was made, an awarding department shall require the prime
38contractor that entered into a subcontract with a disabled veteran
39business enterprise to certify to the awarding department all of the
P9 1(1) The total amount the prime contractor received under the
3(2) The name and address of the disabled veteran business
4enterprise that participated in the performance of the contract.
5(3) The amount each disabled veteran business
6received from the prime contractor.
7(4) That all payments under the contract have been made to the
8disabled veteran business enterprise. An awarding department shall
9keep that certification on file. A person or entity that knowingly
10provides false information shall be subject to a civil penalty for
11each violation in the minimum amount of two thousand five
12hundred dollars ($2,500) and the maximum amount of twenty-five
13thousand dollars ($25,000). An action for a civil penalty under this
14subdivision may be brought by any public prosecutor in the name
15of the people of the State of California and the penalty imposed
16shall be enforceable as a civil judgment.
17(e) A prime contractor may, subject to the approval of the
18Department of General Services, replace a disabled veteran
19business enterprise identified by the prime contractor in its bid or
20offer, pursuant to subdivision (a) of Section 999.10, with another
21disabled veteran business enterprise.
22(f) The administering agency shall adopt rules and regulations,
23including standards for good faith efforts, for the purpose of
24implementing this section. Emergency regulations consistent with
25this section may be adopted.
Section 999.12 of the Military and Veterans Code is
27amended to read:
Each awarding department shall appoint an agency
29Disabled Veteran Business Enterprise Program Advocate. This
30person shall be the same individual appointed pursuant to Section
3114846 of the Government Code. The agency Disabled Veteran
32Business Enterprise Program Advocate shall do all of the
34(a) Assist certified disabled veteran business enterprises in
35participating in that agency’s contracting process.
36(b) Assist contract officers in seeking disabled veteran business
37enterprises to participate in the agency’s contract and procurement
38activities by performing outreach efforts to recruit disabled veteran
39business enterprises to offer their services as either a prime
40 contractor or subcontractor on any contract proposed by the
P10 1awarding department that requires disabled veteran business
2enterprise participation, and by other feasible means.
3(c) Meet regularly with the California Disabled Veteran
4Business Enterprise Program Advocate and contract and
5procurement staffs of their departments to disseminate information
6about the California Disabled Veteran Business Enterprise
8(d) Serve as an advocate for the disabled veteran business
9enterprises that are utilized as the agency’s contractors or
11(e) Report to the Office of Small Business and Disabled Veteran
12Business Enterprise Services regarding any violation of this article.
13(f) Coordinate and meet, on a regular basis, with the California
14Disabled Veteran Business Enterprise Program Advocate at the
15Department of Veterans Affairs in an effort to meet the statewide
begin delete 3-percentend delete goal provided for in Section 999.2.
Section 1104 of the Military and Veterans Code is
18amended to read:
(a) Upon appropriation by the Legislature, money in
20the fund shall be used by the Department of Veterans Affairs for
21the purpose of designing and constructing veterans’ homes in
22California and completing a comprehensive renovation of the
23Veterans’ Home at Yountville. Funding from this bond shall be
24allocated to fund the state’s matching requirement to construct or
25renovate those veterans’ homes in Section 1011 first, and then
26fund any additional homes established under this section. These
27homes shall be in addition to sites authorized under Section 1011.
28(b) Notwithstanding any other provision of law, construction
29contracts awarded for veterans’ homes shall have a statewide
30participation goal of not less than
begin delete 3 percentend delete for disabled
31veteran business enterprises, as defined in
begin delete subdivision (g) ofend delete
32 Section 999.
Section 10115 of the Public Contract Code is amended
(a) The Legislature finds and declares all of the
37(1) The essence of the American economic system of private
38enterprise is free competition. Only through full and free
39competition can free markets, reasonable and just prices, free entry
40into business, and opportunities for the expression and growth of
P11 1personal initiative and individual judgment be assured. The
2preservation and expansion of that competition is basic to the
3economic well-being of this state and that well-being cannot be
4realized unless the actual and potential capacity of minority,
5women, and disabled veteran business enterprises is encouraged
6and developed. Therefore, it is the declared policy of the state to
7aid the interests of minority, women, and disabled veteran business
8enterprises in order to preserve reasonable and just prices and a
9free competitive enterprise, to ensure that a fair proportion of the
10total number of contracts or subcontracts for commodities, supplies,
11technology, property, and services are awarded to minority, women,
12and disabled veteran business enterprises, and to maintain and
13strengthen the overall economy of the state.
14(2) The opportunity for full participation in our free enterprise
15system by minority, women, and disabled veteran business
16enterprises is essential if this state is to attain social and economic
17equality for those businesses and improve the functioning of the
19(3) State agencies which have established short- and long-range
20minority, women, and disabled veteran participation goals are
21awarding 23 percent or more of their contracts to these business
23(4) It is in the state’s interest to expeditiously improve the
24economically disadvantaged position of minority, women, and
25disabled veteran business enterprises.
26(5) The economic position of these businesses can be improved
27by providing long-range substantial goals for procurement by state
28agencies of commodities, professional services, and construction
29work from minority, women, and disabled veteran businesses.
30(6) Procurement by state agencies of goods and services from
31these businesses also benefits the state agencies and the citizens
32of the state by encouraging the expansion of the number of vendors
33for procurements, thereby encouraging competition among the
34vendors and promoting economic efficiency in the process.
35(b) It is the purpose of this article to do all of the following:
36(1) Encourage greater economic opportunity for minority,
37women, and disabled veteran business enterprises.
38(2) Promote competition among state agencies in order to
39enhance long-term economic efficiency in the procurement of
40construction, commodities, and professional services contracts.
P12 1(3) Clarify and expand the program for the procurement by state
2agencies of commodities, professional services, and construction
3work from minority, women, and disabled veteran business
5(c) Notwithstanding any other
begin delete provision ofend delete law, contracts
6awarded by any state agency, department, officer, or other state
7governmental entity for construction, professional services (except
8those subject to Chapter 6 (commencing with Section 16850) of
9Part 3 of Division 4 of Title 2 of the Government Code), materials,
10supplies, equipment, alteration, repair, or improvement shall have
11statewide participation goals of not less than 15 percent for
12minority business enterprises, not less than 5 percent for women
13business enterprises and
begin delete 3end delete percent for disabled veteran business
14enterprises. These goals apply to the overall dollar amount
15expended each year by the awarding department, as defined by
16Section 10115.1, pursuant to this article.
Section 10115.13 of the Public Contract Code is
18amended to read:
Notwithstanding any other
begin delete provision ofend delete law,
20contracts awarded by any state agency, department, officer, or
21other state governmental entity for the purchase of general public
22advertisements shall have statewide participation goals of not less
23than 15 percent for minority business enterprises, not less than
begin delete fiveend delete percent for women business enterprises, and begin delete threeend delete
25for disabled veteran business enterprises. These goals apply to the
26overall dollar amount expended each year by the awarding state
27agency, department, offices, or other state governmental entity.
Section 10115.15 of the Public Contract Code is
29amended to read:
(a) Notwithstanding Section 10115.2, when
31awarding contracts for materials, supplies, or equipment, including
32electronic data processing goods and services, an awarding
33department shall accept the submission by a bidder of a minority,
34women, and disabled veteran business enterprise utilization plan
35that has been approved prior to the solicitation due date by the
36Department of General Services. A business utilization plan shall
37be considered approved by the Department of General Services as
38of the date submitted to the department so long as the plan meets
39the minimum criteria established in paragraphs (1) to (12),
40inclusive, and shall be valid for a period of one year, unless the
P13 1department has audited the utilization plan, as authorized under
2subdivision (b), and disapproves it for reasons specified under
3subdivision (c). The decision of whether to establish a minority,
4women, and disabled veteran business enterprise utilization plan
5shall be at the option of the vendor. If a bidder cites an approved
6utilization plan in response to the minority, women, and disabled
7veteran business enterprise participation requirements of a
8solicitation that calls for 15 percent minority-owned, 5 percent
begin delete 3end delete percent disabled veteran-owned business
10participation, then that utilization plan shall be considered
11responsive to the participation goals of the solicitation document.
12If a solicitation specifies higher participation goals than those in
13the bidder’s utilization plan, the bidder shall meet the goals in the
14solicitation. At a minimum, the utilization plan shall include the
16(1) A statement of the vendor’s minority, women, and disabled
17veteran business enterprise utilization plan, including the primary
18objectives of the utilization plan.
19(2) An explanation showing sufficient business reasons why
20the vendor did not meet minority, women, and disabled veteran
21business enterprise participation goals set forth in the vendor’s
22minority, women, and disabled veteran business utilization plan
23submitted to, and approved by, the Department of General Services
24in the previous year, if applicable. Further, if the vendor did not
25meet the minority, women, and disabled veteran business
26participation goals in the previous year, the vendor shall also
27identify remedial steps it will take to meet the goals in the current
29(3) A statement of the vendor’s minority, women, and
30veteran business utilization goals for the succeeding year. At a
31minimum, these utilization goals shall be equal to the statewide
32participation goals set forth in subdivision (c) of Section 10115.
33(4) Estimated total dollars to be subcontracted by the vendor
34for sales within the United States for the succeeding year.
35(5) Estimated total dollars to be subcontracted by the vendor
36for sales within the State of California for the succeeding year.
37(6) Total dollars expressed as a percentage of the amount
38estimated pursuant to paragraph (4), intended to be subcontracted
39with each of the following:
40(A) Minority business enterprises.
P14 1(B) Women business enterprises.
2(7) Total dollars, expressed as a percentage of the amount
3estimated pursuant to paragraph (5), intended to be subcontracted
4with disabled veteran-owned business enterprises.
5(8) A representative listing of the products and services that the
6vendor anticipates subcontracting, including an identification of
7the types of subcontracting planned for minority, women, and
8disabled veteran business enterprises.
9(9) The name of the individual employed by the vendor who
10will administer the vendor’s utilization plan, including a description
11of the duties of the individual.
12(10) A description of the efforts that the vendor will undertake
13to ensure that minority, women, and disabled veteran business
14enterprises will have an equitable opportunity to compete for
16(11) A listing of the records and reports that the vendor will
17maintain to demonstrate the practices and procedures that have
18been adopted to comply with the requirements and goals of the
20(12) Affirmation that the vendor met the statewide minority,
21women, and disabled veteran business enterprise utilization goals
22for the previous year, if applicable.
23(b) The Department of General Services shall conduct random
24audits of the submitted utilization plans to determine compliance
25with this article, and shall retain on file all submitted utilization
26plans for auditing purposes. During any audit of a submitted
27utilization plan, the Department of General Services may ask a
28vendor to submit a list of all the minority, women, and disabled
29veteran business enterprises included as subcontractors in the
30vendor’s plan for the previous year. This information shall remain
31confidential. Nothing in this section shall be construed to require
32the Department of General Services to audit all of the minority,
33women, and disabled veteran business enterprise utilization plans
34submitted by individual vendors. The Department of General
35Services may establish appropriate fees to cover the actual costs
36of conducting random audits and retaining on file all submitted
38(c) (1) At any time, the Department of General Services may
39disapprove a vendor’s minority, women, and disabled veteran
40business enterprise utilization plan for any of the following reasons:
P15 1(A) The utilization plan fails to evidence a vendor’s intention
2to comply fully with the statewide minority, women, and disabled
3veteran business enterprise goals for the succeeding year, as
4indicated by failure of the utilization plan to contain the information
5specified in subdivision (a).
6(B) The utilization plan fails to evidence sufficient business
7reasons for failure to achieve the minority, women, and disabled
8veteran business enterprise goals set forth in a utilization plan
9submitted in the previous year, if applicable.
10(C) The utilization plan fails to evidence sufficient remedial
11steps the vendor will take if the vendor did not meet the minority,
12women, and disabled veteran business participation goals in the
13previous year, if applicable.
14(2) If a vendor’s utilization plan is disapproved, the vendor may
15not submit a new utilization plan to the department for a period of
16one year from the date of disapproval. Prior to disapproval of a
17vendor’s utilization plan, the vendor shall be entitled to a public
18hearing and to five days’ notice of the time and place thereof. The
19notice shall state the reasons for the hearing.
20(3) A vendor that submits a minority, women, and disabled
21veteran business utilization plan that is approved by the Department
22of General Services, and that is subsequently awarded a contract
23to which the vendor would not otherwise have been entitled, and
24who fails to evidence intention to fully comply with the minority,
25women, and disabled veteran business enterprise goals in the
26utilization plan, or fails to evidence sufficient business reasons for
27failing to achieve the minority, women, and disabled veteran
28business enterprise goals set forth in the utilization plan, shall:
29(A) Pay to the state any difference between the contract amount
30and what the state’s cost would have been if the contract had been
32(B) In addition to the amount specified in subparagraph (A), be
33assessed a penalty in an amount of not more than 10 percent of
34the amount of the contract involved.
35(C) Be ineligible to transact any business with the state for a
36period of not less than three months and not more than 24 months.
37Prior to imposition of any sanction under this chapter, the
38contractor or vendor shall be entitled to a public hearing and to
P16 1five days’ notice of the time and place thereof. The notice shall
2state the reasons for the hearing.