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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