BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 548
Author: Huff (R)
Amended: 7/15/09
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 4/14/09
AYES: Denham, Correa, Wiggins, Negrete McLeod, Cedillo,
Wyland, Maldonado
SENATE APPROPRIATIONS COMMITTEE : 12-0, 5/28/09
AYES: Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,
Leno, Oropeza, Runner, Walters, Wyland, Yee
NO VOTE RECORDED: Wolk
SENATE FLOOR : 39-0, 6/3/09 (Consent)
AYES: Aanestad, Alquist, Ashburn, Benoit, Calderon,
Cedillo, Cogdill, Corbett, Correa, Cox, Denham,
DeSaulnier, Ducheny, Dutton, Florez, Hancock, Harman,
Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal,
Maldonado, Negrete McLeod, Oropeza, Padilla, Pavley,
Romero, Runner, Simitian, Steinberg, Strickland, Walters,
Wiggins, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Vacancy
ASSEMBLY FLOOR : 74-0, 8/27/09 (Consent) - See last page
for vote
SUBJECT : California Disabled Veteran Business Enterprise
Program
SOURCE : Author
CONTINUED
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DIGEST : This bill requires an awarding department, upon
completion of an awarded contract for which a commitment to
achieve disabled veteran business enterprise goal was made,
to require the prime contractor that entered into a
subcontract with a disabled veteran business enterprise to
certify to the awarding department certain information
pertaining to the contract, and that all payments under the
contract have been made to the disabled veteran business
enterprise. This bill also requires an awarding department
to keep that certification on file. This bill specifies
that a person or entity that knowingly provides false
information is subject to a civil penalty, as specified,
and that an action for a civil penalty may be brought by
any public prosecutor in the name of the people of the
State of California.
Assembly Amendments (1) require certain information
pertaining to the contract be submitted by a prime
contractor to an awarding department; (2) authorize a prime
contractor, subject to the approval of the Department of
General Services, to replace a disabled veteran business
enterprise identified by the prime contractor in its bid or
offer, as provided, with another disabled veteran business
enterprise; and (3) add co-authors.
ANALYSIS : Under existing law, the Department of General
Services (DGS), except in the case of contracts for
professional bond services, is the administering agency of
the California Disabled Veteran Business Enterprise (DVBE)
Program, which requires state agencies and all other state
entities contracting for materials, supplies, equipment,
alteration, repair, or improvement to have at least three
percent participation goals for disabled veteran business
enterprises. Existing law specifies the duties of DGS and
the Department of Veterans Affairs in meeting that
requirement, and sets standards for meeting the program's
participation goals, as provided.
This bill requires the awarding department to keep that
certification on file. DGS indicates one-time costs of
about $40,000 to develop regulations, and to develop bid
language that requires the primary contractor who makes a
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commitment to use a DVBE to either:
1.Certify all of the following:
A. The total amount the prime contractor received
under the contract.
B. The name and address of the DVBE that participated
in the performance of the contract.
C. The amount each DVBE received from the prime
contractor.
D. That all payments under the contract have been
made to the DVBE.
2.Document why there was no subcontract with the DVBE.
This bill also provides that any person or entity that
knowingly provides false information will be subject to a
civil penalty of between $2,500 to a maximum of $25,000.
The bill also authorizes a prime contractor, subject to the
approval of DGS, replace a DVBE identified by the prime
contractor in its bid or offer with another disabled
The DBVE Program was established in 1989 and gives
preference points to qualifying businesses when awarding
state contracts. Prime contractors are required to include
DVBEs in at least three percent of their work in order to
meet participation goals. This bill is intended to ensure
that contractors do not list a DVBE as a subcontractor for
purposes of gaining a preference during the awards phase of
bidding, and then no using that DVBE on the project.
Current law defines a DVBE as a business certified to have
51 percent of its ownership held by one or more disabled
veteran, or in the case of a publicly owned business, at
least 51 percent of the stock is owned by disabled
veterans. DGS is the state entity responsible for
certifying businesses and meeting the definition of DVBE.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Admin expenses $40 $0
$0 General
SUPPORT : (Verified 8/28/09)
American Legion, Department of California
AMVETS, Department of California
Complianice News
Gennis and Associates, Engineers
Katin Engineering Consulting
The California Disabled Veterans Business Alliance
Legion of Valor of the USA (Medal of Honor Legion)
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Feuer, Fletcher, Fong,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Ruskin, Salas, Silva, Skinner, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Evans, Fuentes, Hall, Saldana, Bass,
Vacancy
TSM:cm 8/28/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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