Amended in Assembly June 24, 2015

Amended in Senate March 23, 2015

Senate BillNo. 159


Introduced by Senator Nielsen

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(Coauthors: Assembly Members Brough, Brown, Chu, Eduardo Garcia, Kim, and Mathis)

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February 3, 2015


An act to amend Section 10111 of the Public Contract Code, relating to statebegin delete government.end deletebegin insert government, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 159, as amended, Nielsen. California Disabled Veteran Business Enterprise Program: goal achievement.

Existing law establishes statewide participation goals that apply to the overall dollar amount expended each year by an awarding department, as defined, to facilitate the participation of disabled veteran business enterprises in state contracts, and establishes the California Disabled Veteran Business Enterprise Program for this purpose. Existing law requires the Department of General Services to make available a report on contracting activity containing specified information, including a statistical summary detailing each awarding department’s goal achievement under the California Disabled Veteran Business Enterprise Program and a statewide total of those goals.

This bill would specify that an awarding department’s goal achievement under the California Disabled Veteran Business Enterprise Program, and statewide total of those goals, be measured as specified. The bill would also make a legislative finding that this bill is clarifying and declaratory of existing law.

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This bill would declare that it is to take effect immediately as an urgency statute.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 10111 of the Public Contract Code is
2amended to read:

3

10111.  

Commencing January 1, 2007, the department shall
4make available a report on contracting activity containing the
5following information:

6(a) A listing of consulting services contracts that the state has
7entered into during the previous fiscal year. The listing shall
8include the following:

9(1) The name and identification number of each contractor.

10(2) The type of bidding entered into, the number of bidders,
11whether the low bidder was accepted, and if the low bidder was
12not accepted, an explanation of why another contractor was
13selected.

14(3) The amount of the contract price.

15(4) Whether the contract was a noncompetitive bid contract,
16and why the contract was a noncompetitive bid contract.

17(5) Justification for entering into each consulting services
18contract.

19(6) The purpose of the contract and the potential beneficiaries.

20(7) The date when the initial contract was signed, and the date
21when the work began and was completed.

22(b) The report shall also include a separate listing of consultant
23contracts completed during that fiscal year, with the same
24information specified in subdivision (a).

25(c) The information specified in subdivisions (a) and (b) shall
26also include a list of any contracts underway during that fiscal year
27on which a change was made regarding the following:

28(1) The completion date of the contract.

29(2) The amount of money to be received by the contractor, if it
30exceeds 3 percent of the original contract price.

31(3) The purpose of the contract or duties of the contractor. A
32brief explanation shall be given if the change in purpose is
33significant.

P3    1(d) The level of participation, by agency, of disabled veteran
2business enterprises in statewide contracting and shall include
3dollar values of contract award for the following categories:

4(1) Construction.

5(2) Architectural, engineering, and other professional services.

6(3) Procurement of materials, supplies, and equipment.

7(4) Information technology procurements.

8Additionally, the report shall include a statistical summary
9detailing each awarding department’s goal achievement and a
10statewide total of those goals. An awarding department’s goal
11achievement is to be measured pursuant to subdivision (a) of
12Section 999.2 of the Military and Veterans Code and subdivision
13(c) of Section 10115 of this code.

14(e) The level of participation by small business in state
15contracting including:

16(1) Upon request, an up-to-date list of eligible small business
17bidders by general procurement and construction contract
18categories, noting company names and addresses and also noting
19which small businesses also qualify as microbusinesses.

20(2) By general procurement and construction contract categories,
21statistics comparing the small business and microbusiness contract
22participation dollars to the total state contract participation dollars.

23(3) By awarding department and general procurement and
24construction categories, statistics comparing the small business
25and microbusiness contract participation dollars to the total state
26contract participation dollars.

27(4) Any recommendations for changes in statutes or state
28policies to improve opportunities for small businesses and
29microbusinesses.

30(5) A statistical summary of small businesses and
31microbusinesses certified for state contracting by the number of
32employees at the business for each of the following categories:
330-5, 26-50, 51-75, and 76-100.

34(6) To the extent feasible, beginning in the year 2008, the
35number of contracts awarded by the department in the categories
36specified in paragraph (5).

37(7) The number of contracts and dollar amounts awarded
38annually pursuant to Section 14838.5 of the Government Code to
39small businesses, microbusinesses, and disabled veteran business
40enterprises.

P4    1(f) The level of participation of business enterprises, by race,
2ethnicity, and gender of the owner, in contracts to the extent that
3the information has been voluntarily reported to the department.
4In addition, the report shall contain the levels of participation of
5business enterprises, by race, ethnicity, and gender of the owner,
6and whether the business is a lesbian, gay, bisexual, or transgender
7owned business for the following categories of contracts, to the
8extent that the information has been voluntarily reported to the
9department:

10(1) Construction.

11(2) Purchases of materials, supplies, or equipment.

12(3) Professional services.

13(g) In the years 2011 and 2012, any errors reported to the
14department by an awarding agency as required by Sections 10302,
1510344, and 12104.5, in the previous fiscal year.

16(h) The amendments made to this section by Chapter 861 of the
17Statutes of 2012 shall apply on and after January 1, 2013.

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SEC. 2.  

The Legislature finds and declares that the amendments
19made by this act to Section 10111 of the Public Contract Code are
20clarifying and declaratory of existing law.

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This act is an urgency statute necessary for the
22immediate preservation of the public peace, health, or safety within
23the meaning of Article IV of the Constitution and shall go into
24immediate effect. The facts constituting the necessity are:

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25(1) California State Auditor Report 2013-115 on the Disabled
26Veteran Business Enterprise (DVBE) Program found that during
27the 2012-13 fiscal year, 83 percent of the DVBE contract award
28amounts went to only 30 DVBE firms and that a lack of
29standardized reporting by awarding agencies may distort an
30 assessment of whether the program is meeting the legislative intent.

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31(2) The California State Auditor’s Office recommended that in
32order to ensure accuracy and consistency in reporting requirements
33for the DVBE Program, it is necessary for the Legislature to clarify
34that an awarding department’s goal achievement under the DVBE
35Program is to be measured by the overall dollar amount expended
36each fiscal year.

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37(3) Since the DVBE Program comprises of a minimum of 3
38percent of all state contracts awarded each fiscal year, which,
39according to the Department of General Services, was over $299
40million for the 2013-14 fiscal year, the sheer magnitude of the
P5    1program necessitates urgency in establishing accurate and
2consistent reporting across all awarding departments.

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3(4) For the above-mentioned reasons, it is necessary that this
4bill take effect immediately.

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