BILL ANALYSIS �
AB 2248
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Date of Hearing: April 24, 2012
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 2248 (Cook) - As Amended: April 10, 2012
SUBJECT : State contracts: veterans' services
SUMMARY : This bill requires the Director of General Services
(DGS) to establish criteria identifying state contracts for
social services provided to veterans or their families and to
create a process that would provide a participation incentive to
specified bidders for state contracts for social services
provided to veterans or their families for use by all state
agencies. This bill would also make findings and declarations
regarding the need for these programs. Specifically, this bill:
1. Makes findings and declarations that it is necessary to
make explicit, in the award of state contracts for social
services to veterans or their families, that consideration
be made by the contracting entity of the experience and
qualifications of the bidders for the contract and to
provide an incentive for the selection of those bidders
that demonstrate competency.
2. Directs DGS to adopt written policies and guidelines for
use by contracting entities in determining whether a
contract is a contract for social services to veterans or
their families. A type of contract for social services may
include, but is not limited to, the following:
a. A contract for housing services.
b. A contract for mental health services.
c. A contract for employment and job training
services.
3. Directs DGS to adopt written policies and guidelines
establishing a uniform process for state contracting that
provides a participation incentive to bidders that
demonstrate indicia of competency under a contract for
social services to veterans or their families. Indicia of
competency includes, but is not limited to:
a. Knowledge, experience, and capacity to provide
services to veterans.
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b. Audits and employment history documenting
fiscal and management capacity to capably perform
public contracts.
c. Documentation that the bidder is exempt from
income taxation as an organization described in
Section 501(c)(3) of the Internal Revenue Code and
whose charitable purpose is the provision of services
to veterans and their families.
d. Documentation that the majority of the
bidder's resources are dedicated to serving the needs
of veterans and their families.
e. Documentation of current required filings with
the Secretary of State, the Office of the Attorney
General, and the Franchise Tax Board.
4. States that the incentive program established by this
subdivision shall be used by all state agencies when
awarding contracts for social services that are
specifically intended to serve veterans or their families,
notwithstanding any other law.
5. Directs DGS to adopt rules and regulations as necessary
or appropriate to implement this statute.
EXISTING LAW
1. Public Contract Code section 10115 and provides that
nearly all state contracts shall have statewide
participation goals of not less than 15 percent for
minority business enterprises, not less than 5 percent for
women business enterprises and 3 percent for Disabled
Veteran Business Enterprises (DVBEs).
2. The Department of General Services (Department)
certifies DVBEs according to statutory criteria.
3. The Department also certifies Nonprofit Veteran Service
Agencies (NVSAs) as small businesses and entitles them to
small business certification benefits providing certain
eligibility requirements are met. The NVSA must:
a. Be a community-based organization,
b. Be a nonprofit corporation (under Section
501(c)(3) of the Internal Revenue Code), and
c. Provide housing, substance abuse, case
management, and employment training services (as its
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principal purpose) for
i. low income veterans,
ii. disabled veterans, or
iii. homeless veterans and their
families.
FISCAL EFFECT : Unknown. This bill is keyed fiscal.
COMMENTS : According to the author:
California service contracts are currently awarded by
California State Agencies. These agencies tend to pick
vendors based on political or personal ties as opposed to
the vendor's qualifications. This has led to massive
changes in vendors when a new administration comes into
office. Frequently, the new vendors lack experience and
expertise in providing services to veterans and, as a
result, there is a decline in the quality of social
services provided to veterans.
AB 2248 would require the Director of General Services to
establish criteria identifying state contracts for social
services provided to veterans or their families and to create a
process that would provide a participation incentive to
specified bidders for state contracts for social services
provided to veterans or their families for use by all state
agencies.
When providing social services to veteran and their families,
the state should strive to get the best services possible for a
reasonable price. The bill makes this policy explicit and
promotes it through the incentive program.
Late comments were received from DGS. Staff is aware that
discussions are ongoing with DGS and the author about further
amendments to the bill including moving the code sections to the
Welfare and Institutions Code and amendments to encompass the
process by which these kinds of contracts are awarded which
differs from the traditional competitive bidding process.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Veteran Service Agencies
AB 2248
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Opposition
None on file.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550