BILL NUMBER: AB 409 CHAPTERED
BILL TEXT
CHAPTER 767
FILED WITH SECRETARY OF STATE OCTOBER 10, 1999
APPROVED BY GOVERNOR OCTOBER 7, 1999
PASSED THE ASSEMBLY SEPTEMBER 2, 1999
PASSED THE SENATE AUGUST 30, 1999
AMENDED IN SENATE AUGUST 17, 1999
AMENDED IN SENATE JULY 1, 1999
AMENDED IN ASSEMBLY APRIL 27, 1999
AMENDED IN ASSEMBLY APRIL 19, 1999
INTRODUCED BY Assembly Members Dickerson and Bates
(Coauthors: Assembly Members Maddox and Rod Pacheco)
(Coauthor: Senator Johannessen)
FEBRUARY 12, 1999
An act to amend Sections 999, 999.5, and 999.7 of, and to add
Sections 999.2, 999.11, and 999.12 to, the Military and Veterans
Code, relating to veterans.
LEGISLATIVE COUNSEL'S DIGEST
AB 409, Dickerson. Disabled veterans: contracts.
(1) Existing provisions of the Military and Veterans Code specify
disabled veterans participation goals for professional bond services
and state contacts and set forth definitions for these purposes.
This bill would revise the definitions of "administering agency,"
"awarding department," and "contract," for the above purposes, as
specified.
(2) Existing provisions of the Military and Veterans Code require
any state governmental entity that awards contracts for professional
bond services to have annual statewide participation goals of not
less than 3% for disabled veteran business enterprises, as defined.
This bill would require a business concern, which qualified as a
disabled veteran business enterprise prior to the death or
certification of a permanent medical disability of the disabled
veteran who is a majority owner of that business concern, to be
deemed to be, solely for purposes of any contract entered into before
that death or certification, a disabled veteran business enterprise
for a period not to exceed 3 years after the date of that death or
certification of a permanent medical disability, if the business
concern is inherited or controlled by the spouse or child of that
majority owner, or by both of those persons.
(3) Existing provisions of the Public Contract Code governing
public contracts (a) require any state agency, department, officer,
or other governmental entity that awards contracts for construction,
certain professional services, materials, supplies, equipment,
alteration, repair, or improvement to have, among other goals, annual
statewide participation goals of not less than 3% for disabled
veteran business enterprises, and (b) require a state governmental
entity, in awarding a contract to the lowest responsible bidder, to
consider the efforts of a bidder to meet, among other goals, disabled
veteran business enterprise goals, and (c) require the awarding
department to award the contract to the lowest responsible bidder
meeting or making good faith efforts to meet those goals, as
described.
This bill would add similar provisions to the Military and
Veterans Code (a) to require any state agency, department, officer,
or other governmental entity that awards contracts for construction,
certain professional services, materials, supplies, equipment,
alteration, repair, or improvement to have annual statewide
participation goals of not less than 3% for disabled veteran business
enterprises, and (b) to require a method of monitoring adherence to
these goals, as specified.
(4) Existing law requires the Office of Small and Minority
Business and each awarding department to report annually to the
Governor and the Legislature on the level of participation by
disabled veteran business enterprises, as specified.
This bill (a) would require the Department of Veterans Affairs to
appoint an advocate to undertake specified responsibilities relating
to the implementation of annual statewide participation goals, and
(b) would require the Office of Small and Minority Business to work
in conjunction with the advocate in making that annual report to the
Governor and the Legislature.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 999 of the Military and Veterans Code is
amended to read:
999. As used in this article, the following definitions apply:
(a) "Administering agency" means the Treasurer in the case of
contracts for professional bond services, and the Department of
General Services' Office of Small Business Certification and
Resources, formerly known as the Office of Small and Minority
Business, in the case of contracts governed by Section 999.2.
(b) "Awarding department" means any state agency, department,
governmental entity, or other officer or entity empowered by law to
issue bonds or enter into contracts on behalf of the State of
California.
(c) "Bonds" means bonds, notes, warrants, certificates of
participation, and other evidences of indebtedness issued by or on
behalf of the State of California.
(d) "Contract" includes any agreement or joint agreement to
provide professional bond services to the State of California or an
awarding department. "Contract" also includes any agreement or joint
development agreement to provide labor, services, material,
supplies, or equipment in the performance of a contract, franchise,
concession, or lease granted, let, or awarded for and on behalf of
the State of California.
(e) "Contractor" means any person or persons, regardless of race,
color, creed, national origin, ancestry, sex, marital status,
disability, religious or political affiliation, or age, or any sole
proprietorship, firm, partnership, joint venture, corporation, or
combination thereof who submits a bid and enters into a contract with
a representative of a state agency, department, governmental entity,
or other officer empowered by law to enter into contracts on behalf
of the State of California. "Contractor" includes any provider of
professional bond services who enters into a contract with an
awarding department.
(f) "Disabled veteran" means a veteran of the military, naval, or
air service of the United States, including, but not limited to, the
Philippine Commonwealth Army, the Regular Scouts ("Old Scouts"), and
the Special Philippine Scouts ("New Scouts"), with a
service-connected disability who is a resident of the State of
California.
(g) (1) "Disabled veteran business enterprise" means a business
concern certified by the administering agency as meeting all of the
following requirements:
(A) It is a sole proprietorship at least 51 percent owned by one
or more disabled veterans or, in the case of a publicly owned
business, at least 51 percent of its stock is owned by one or more
disabled veterans; a subsidiary which is wholly owned by a parent
corporation, but only if at least 51 percent of the voting stock of
the parent corporation is owned by one or more disabled veterans; or
a joint venture in which at least 51 percent of the joint venture's
management and control and earnings are held by one or more disabled
veterans.
(B) The management and control of the daily business operations
are by one or more disabled veterans. The disabled veterans who
exercise management and control are not required to be the same
disabled veterans as the owners of the business concern.
(C) It is a sole proprietorship, corporation, or partnership with
its home office located in the United States, which is not a branch
or subsidiary of a foreign corporation, foreign firm, or other
foreign-based business.
(2) Notwithstanding paragraph (1), after the death or the
certification of a permanent medical disability of a disabled veteran
who is a majority owner of a business concern that qualified as a
disabled veteran business enterprise prior to that death or
certification of a permanent medical disability, and solely for
purposes of any contract entered into before that death or
certification, that business concern shall be deemed to be a disabled
veteran business enterprise for a period not to exceed three years
after the date of that death or certification of a permanent medical
disability, if the business concern is inherited or controlled by the
spouse or child of that majority owner, or by both of those persons.
(h) "Foreign corporation," "foreign firm," and "foreign-based
business" means a business entity that is incorporated or has its
principal headquarters located outside the United States of America.
(i) "Goal" means a numerically expressed objective that awarding
departments and contractors are required to make efforts to achieve.
(j) "Management and control" means effective and demonstrable
management of the business entity.
(k) "Professional bond services" include services as financial
advisers, bond counsel, underwriters in negotiated transactions,
underwriter's counsel, financial printers, feasibility consultants,
and other professional services related to the issuance and sale of
bonds.
SEC. 2. Section 999.2 is added to the Military and Veterans Code,
to read:
999.2. Notwithstanding any other provision of law, contracts
awarded by any state agency, department, officer, or other state
governmental entity for construction, professional services (except
those subject to Chapter 6 (commencing with Section 16850) of Part 3
of Division 4 of Title 2 of the Government Code), materials,
supplies, equipment, alteration, repair, or improvement shall have
statewide participation goals of not less than 3 percent for disabled
veteran business enterprises. These goals apply to the overall
dollar amount expended each year by the awarding department.
SEC. 3. Section 999.5 of the Military and Veterans Code is amended
to read:
999.5. (a) The administering agency shall establish a method of
monitoring adherence to the goal specified in Section 999.1,
including requiring a followup report from all contractors upon the
completion of any sale of bonds.
(b) The awarding department shall establish a method of monitoring
adherence to the goals specified in Section 999.2.
(c) The administering agency shall adopt rules and regulations,
including standards for good faith efforts for the purpose of
implementing this section. Emergency regulations consistent with
this section may be adopted.
SEC. 4. Section 999.7 of the Military and Veterans Code is amended
to read:
999.7. (a) Notwithstanding Section 7550.5 of the Government Code,
on January 1 of each year, each awarding department shall report to
the Governor, the Legislature, the Office of Small Business
Certification and Resources, and the Department of Veterans Affairs
on the level of participation by disabled veteran business
enterprises in contracts identified in this article. If the
established goals are not met, the awarding department shall report
to the the Legislature, the Office of Small Business Certification
and Resources, and the Department of Veterans Affairs the reasons for
the awarding department's inability to achieve the goals and
identify steps it shall take in an effort to achieve the goals.
(b) Notwithstanding Section 7550.5 of the Government Code, on
April 1 of each year, the Office of Small Business Certification and
Resources shall prepare for the Governor, the Legislature, and the
Department of Veterans Affairs a statewide statistical summary
detailing each awarding department's goal achievement and a statewide
total of those goals.
SEC. 5. Section 999.11 is added to the Military and Veterans Code,
to read:
999.11. The Department of Veterans Affairs shall appoint an
advocate to do all of the following:
(a) Oversee, promote, and coordinate efforts to facilitate
implementation of this article.
(b) Disseminate information on this article.
(c) Coordinate reports pursuant to Section 999.7.
(d) Coordinate with administering agencies and existing and
potential disabled veteran business enterprises to achieve the goals
specified in Sections 999.1 and 999.2.
SEC. 6. Section 999.12 is added to the Military and Veterans Code,
to read:
999.12. This article includes language similar to that contained
in Article 1.5 (commencing with Section 10115) of Chapter 1 of Part 2
of Division 2 of the Public Contract Code and does not create an
independent or additional goal or program.