BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB  2249
                                                                Page  1
        CONCURRENCE IN SENATE AMENDMENTS
        AB 2249 (Ruskin)
        As Amended  July 15, 2010
        Majority vote
         
         ----------------------------------------------------------------- 
        |ASSEMBLY:  |63-0 |(May 28, 2010)  |SENATE: |34-0 |(August 9,     |
        |           |     |                |        |     |2010)          |
         ----------------------------------------------------------------- 
          
         Original Committee Reference:    J., E.D. & E.

        SUMMARY  :  Requires the Department of General Services (DGS) to  
        require a Disabled Veteran Business Enterprise (DVBE) to file a  
        completed form 4506-T from the federal Internal Revenue Service  
        (IRS), also known as a Request for Transcript of Tax Return, as  
        specified. 
         
        The Senate amendments  :

        1)Specify that at least 51% of the stock or voting stock of a  
          publicly owned business be unconditionally owned by a DVBE. 

        2)Define "just cause" as specified.

        3)Delete section 999.2 of the Military and Veterans Code from the  
          bill and instead adds a cross reference to the government code  
          specifying all the information submitted to DGS pursuant to  
          Section 999.2 of the Military and Veterans Code is true and  
          correct.

        4)Make several technical changes.
         
        EXISTING LAW  : 

        1)Provides that DGS is the administering agency of the California  
          DVBE Program.   

        2)Sets an annual DVBE contract participation goal of 3% for each  
          state department which awards contacts, including school  
          districts, when expending certain state moneys for goods and  
          services and defines DVBE as specified.

        3)Requires state entities contracting for materials, supplies,  
          equipment, alterations, or repairs to meet specified DVBE  
          participation goals when submitting a bid for a state contract,  
          including the requirement that the bid go to the lowest  







                                                                AB  2249
                                                               Page  2
          responsible bidder that meets the goal.

         AS PASSED BY THE ASSEMBLY  , this bill requires the Department of  
        General Services (DGS) to require a DVBE to file a completed form  
        4506-T from the federal Internal Revenue Service (IRS), also known  
        as a Request for Transcript of Tax Return, if DGS has received a  
        complaint regarding the DVBE; or if the DVBE is being audited by  
        DGS. 

         FISCAL EFFECT  :  According to the Senate Appropriations Committee  
        analysis, there are no significant costs associated with this  
        legislation.

         COMMENT :  This bill will help in limiting the number of claims that  
        DVBEs have been fraudulently added to contracts without any real  
        intention that they would perform a commercially useful function

         Analysis Prepared by  :    Mercedes Flores / J., E.D. & E. / (916)  
        319-2090                                                         FN:  
        0005407