BILL ANALYSIS �
AB 2248
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Date of Hearing: May 9, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2248 (Cook) - As Amended: April 10, 2012
Policy Committee: Veterans
AffairsVote: 8-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Department of General Services (DGS) to
identify state contracts for social services for veterans and
their families and to create an incentive for bidders who
demonstrate knowledge and experience in providing services to
veterans.
This bill further requires the incentive program established
pursuant to this bill be used by all state agencies in awarding
contracts for social services intended for veterans or their
families. Specifically, this bill:
1)Requires DGS to adopt written policies and guidelines for use
by contracting entities to determine whether a contract is a
contract for social services to veterans or their families.
2)Directs DGS to adopt written policies and guidelines
establishing a uniform process for state contracting that
creates a participation incentive to bidders that demonstrate
specified competency , including, but is not limited to:
a) Knowledge, experience, and capacity to provide services
to veterans.
b) Audits and employment history documenting fiscal and
management capacity to capably perform public contracts.
c) Documentation the bidder is a nonprofit whose charitable
purpose is the provision of services to veterans and their
families.
d) Documentation the majority of the bidder's resources are
dedicated to serving veterans.
e) Documentation of current required filings with the
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Secretary of State, the Office of the Attorney General, and
the Franchise Tax Board.
FISCAL EFFECT
1)DGS indicates ongoing GF costs in the range of $350,000 to
create a small unit similar to the Small Business and Disabled
Veterans Business Enterprise program model.
2)Unknown state costs to the extent that the proposed incentive
program adds a marginal cost to state contracts. For example,
if the proposed incentive increases contract costs by three
percent for every $10 million in contracts the cost would be
$300,000. The universe of contracts that could be affected by
this bill, however, is not clear. In addition, in many cases,
veterans-related services are federally funded, and the state
serves as a pass-through entity only.
COMMENTS
1)Rationale . The author's intent is to provide continuity and
expertise in providing veterans' services through state
contracts.
2)Concerns . This bill appears problematic in that it attempts
to address and impact an undefined universe of services, many
of which are federally funded and beyond the scope of state
procurement. For example, contracts for social services to
veterans or their families, such as housing services, mental
health services, and employment and job training services are
not awarded under the Public Contract Code, and DGS has no
oversight role. Therefore, a contracting incentive to veteran
groups that perform these services would not work. In general,
these services are funded through federal block grants and
awarded through a grant process established by the various
authorized social services departments.
In addition, there is already an incentive for disabled
veteran business enterprises (DVBE) and a five percent
contracting preference for veteran own non-profit
organizations. The incentive proposed in this bill could allow
a provider to double-dip.
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Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081