BILL ANALYSIS
SENATE COMMITTEE ON VETERANS AFFAIRS
JEFF DENHAM, CHAIRMAN
Bill No: SB 643
Author: Denham
Version: As Introduced
Hearing Date: April 14, 2009
Fiscal: Yes
Consultant: Donald E. Wilson
SUBJECT OF BILL
Prompt Payment for Disabled Veterans Business Enterprises
(DVBE).
PROPOSED LAW
Give certified DVBEs the same prompt payment protections
that California now gives certified small businesses.
EXISTING LAW AND BACKGROUND
Certified small businesses are guaranteed prompt payment
when they enter into business with the state under the
premise that many of these businesses cannot afford to go
long periods without payment.
Theoretically, DVBEs are guaranteed prompt payment, but
there is no penalty for violating this provision. There
are penalty payments for violating prompt payment
protections when transacting with certified small
businesses.
COMMENT
1. This is the same bill as SB 159 (Wyland) of 2007,
which passed this committee 4-0 and was a consent
calendar item in the Senate as well as receiving
unanimous support in Assembly policy committees.
2. Fewer than 190 businesses in the state qualify for
DVBE but not small business status.
3. This bill guarantees all DVBEs will receive prompt
payment protection by including them in the same
definitions as small businesses and removing the
unequal application of the law as it presently stands.
SUPPORT
AMVETS, Department of California
OPPOSE
None received
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