Amended in Senate March 12, 2014

Senate Bill No. 839

Introduced by Senator Correa

January 6, 2014

An act to begin delete amend Section 999.6 of end delete begin insert add Section 999.7 to end insert the Military and Veterans Code, begin insert and to amend Section 10111 of, and to add Section 10115.14 to, the Public Contract Code, end insert relating to veterans.

LEGISLATIVE COUNSEL’S DIGEST

SB 839, as amended, Correa. The California Disabled Veteran Business Enterprise begin delete Program. end delete begin insert Program: state contracts. end insert

Existing law establishes goals begin insert that apply to the overall dollar amount expended each year by an awarding department, as defined, end insert to facilitate the participation of disabled veteran business enterprises begin insert in state contracts end insert , and establishes the California Disabled Veteran Business Enterprise Program for this purpose. begin delete Existing law requires an officer or agency empowered to enter into a contract, in implementing the program, to utilize existing resources, including, but not limited to, specified state and federal entities. end delete

begin delete

This bill would make technical, nonsubstantive changes to that resource utilization provision.

end delete begin insert

Existing law requires the Department of General Services to make available a report on contracting activity containing specified information, including the level of participation, by agency, of disabled veteran business enterprises in statewide contracting, including the dollar values of contract award in specified categories.

end insert begin insert

This bill would require the contracting activity report, with respect to disabled veteran business enterprise participation, commencing with the 2015-16 fiscal year and each fiscal year thereafter, to include the dollar amounts expended annually on contracts pursuant to the program, and would require an awarding department to report those expenditures to the Department of General Services. The bill would require the awarding department, for each disabled veteran business enterprise that contracts directly with an awarding department as a prime contractor, to report expenditures based on the amounts paid during the fiscal year, and to maintain accounting records and other supporting documentation sufficient for the verification and audit of the reported payments. The bill would require the awarding department, for each disabled veteran business enterprise that works as a subcontractor to a prime contractor, to report expenditures based on a joint certification from both the prime contractor and the disabled veteran business enterprise subcontractor, attesting to the amounts paid to the disabled veteran business enterprise under each contract, and to maintain signed certifications for the verification and audit of the reported payments. The bill would require the Department of General Services, in consultation with the Department of Veterans Affairs, to develop, before July 1, 2015, a joint certification form to be used by awarding departments.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 999.7 is added to the end insert begin insert Military and
Veterans Code end insert begin insert , to read: end insert

begin insert

begin insert 999.7. end insert   

In implementing this article, an awarding department
shall report its annual expenditures on disabled veteran business
enterprises pursuant to Section 10115.14 of the Public Contract
Code.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 10111 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10111.  

Commencing January 1, 2007, the department shall
make available a report on contracting activity containing the
following information:

(a) A listing of consulting services contracts that the state has
entered into during the previous fiscal year. The listing shall
include the following:

(1) The name and identification number of each contractor.

(2) The type of bidding entered into, the number of bidders,
whether the low bidder was accepted, and if the low bidder was
not accepted, an explanation of why another contractor was
selected.

(3) The amount of the contract price.

(4) Whether the contract was a noncompetitive bid contract,
and why the contract was a noncompetitive bid contract.

(5) Justification for entering into each consulting services
contract.

(6) The purpose of the contract and the potential beneficiaries.

(7) The date when the initial contract was signed, and the date
when the work began and was completed.

(b) The report shall also include a separate listing of consultant
contracts completed during that fiscal year, with the same
information specified in subdivision (a).

(c) The information specified in subdivisions (a) and (b) shall
also include a list of any contracts underway during that fiscal year
on which a change was made regarding the following:

(1) The completion date of the contract.

(2) The amount of money to be received by the contractor, if it
exceeds 3 percent of the original contract price.

(3) The purpose of the contract or duties of the contractor. A
brief explanation shall be given if the change in purpose is
significant.

(d) The level of participation, by agency, of disabled veteran
business enterprises in statewide contracting and shall include
dollar values begin delete of contract award end delete begin insert expended annually as specified in
Section 10115.14 end insert for the following categories:

(1) Construction.

(2) Architectural, engineering, and other professional services.

(3) Procurement of materials, supplies, and equipment.

(4) Information technology procurements.

Additionally, the report shall include a statistical summary
detailing each awarding department’s goal achievement and a
statewide total of those goals.

(e) The level of participation by small business in state
contracting including:

(1) Upon request, an up-to-date list of eligible small business
bidders by general procurement and construction contract
categories, noting company names and addresses and also noting
which small businesses also qualify as microbusinesses.

(2) By general procurement and construction contract categories,
statistics comparing the small business and microbusiness contract
participation dollars to the total state contract participation dollars.

(3) By awarding department and general procurement and
construction categories, statistics comparing the small business
and microbusiness contract participation dollars to the total state
contract participation dollars.

(4) Any recommendations for changes in statutes or state
policies to improve opportunities for small businesses and
microbusinesses.

(5) A statistical summary of small businesses and
microbusinesses certified for state contracting by the number of
employees at the business for each of the following categories:
0-5, 26-50, 51-75, and 76-100.

(6) To the extent feasible, beginning in the year 2008, the
number of contracts awarded by the department in the categories
specified in paragraph (5).

(7) The number of contracts and dollar amounts awarded
annually pursuant to Section 14838.5 of the Government Code to
small businesses, microbusinesses, and disabled veteran business
enterprises.

(f) The level of participation of business enterprises, by race,
ethnicity, and gender of the owner, in contracts to the extent that
the information has been voluntarily reported to the department.
In addition, the report shall contain the levels of participation of
business enterprises, by race, ethnicity, and gender of the owner,
and whether the business is a lesbian, gay, bisexual, or transgender
owned business for the following categories of contracts, to the
extent that the information has been voluntarily reported to the
department:

(1) Construction.

(2) Purchases of materials, supplies, or equipment.

(3) Professional services.

(g) In the years 2011 and 2012, any errors reported to the
department by an awarding agency as required by Sections 10302,
10344, and 12104.5, in the previous fiscal year.

(h) The amendments made to this section by the act adding this
subdivision shall apply on and after January 1, 2013.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 10115.14 is added to the end insert begin insert Public Contract Code end insert begin insert ,
to read: end insert

begin insert

begin insert 10115.14. end insert   

Commencing with the 2015-16 fiscal year and each
fiscal year thereafter, the information contained in a contracting
activity report pursuant to subdivision (d) of Section 10111 shall
include the dollar amounts expended annually by each awarding
department on contracts with disabled veteran business enterprises
pursuant to Sections 999.1 and 999.2 of the Military and Veterans
Code. An awarding department shall report those expenditures to
the Department of General Services in accordance with the
following:

(a) For each disabled veteran business enterprise that contracts
directly with an awarding department as a prime contractor, the
awarding department shall report expenditures based on the
amounts paid during the fiscal year. The awarding department
shall maintain accounting records and other supporting
documentation sufficient for the verification and audit of the
reported payments.

(b) For each disabled veteran business enterprise that works
as a subcontractor to a prime contractor, the awarding department
shall report expenditures based on a joint certification from both
the prime contractor and the disabled veteran business enterprise
subcontractor, attesting to the amounts paid to the disabled veteran
business enterprise under each contract. An awarding department
shall maintain signed certifications for the verification and audit
of the reported payments. The Department of General Services,
in consultation with the Department of Veterans Affairs, shall
develop, before July 1, 2015, a joint certification form to be used
by awarding departments.

(c) An awarding department shall develop policies and
procedures for the preparation of expenditure reports pursuant to
subdivisions (a) and (b) to ensure that the expenditure amounts
reported to the Department of General Services are accurate,
complete, and verifiable against the awarding department’s
accounting records and subcontractor certifications.

end insert

begin delete

SECTION 1.  

Section 999.6 of the Military and Veterans Code
is amended to read:

999.6.  

In implementing this article, the awarding department
shall utilize existing resources, including, but not limited to, the
Office of Small Business and Disabled Veteran Business Enterprise
Services, the Department of Veterans Affairs, the United States
Department of Veterans Affairs, and the federal Small Business
Administration.

end delete