Bill Text: CA AB230 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Disabled veteran business enterprises.

Spectrum: Bipartisan Bill

Status: (Passed) 2019-10-09 - Chaptered by Secretary of State - Chapter 676, Statutes of 2019. [AB230 Detail]

Download: California-2019-AB230-Amended.html

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Amended  IN  Assembly  February 15, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 230

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Introduced by Assembly Member Brough

January 17, 2019

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An act to amend Section 699.5 999.5 of the Military and Veterans Code, relating to veterans.

LEGISLATIVE COUNSEL'S DIGEST

AB 230, as amended, Brough. Military veterans: claims. Disabled veteran business enterprises.

Under existing law, the administering agency for the California Disabled Veteran Business Enterprise Program is the Department of General Services, except in the case of contracts for professional bond services. Existing law requires the Director of General Services to adopt written policies and guidelines establishing a uniform process for state contracting to provide a disabled veteran business enterprise (DVBE) participation incentive to bidders, which all state agencies are required to use when awarding contracts.

Existing law states the intent of the Legislature that every state procurement authority meet or exceed a DVBE participation goal of a minimum of 3% of total contract value.

This bill would prohibit a department from crediting towards the department’s DVBE goal state funds that include a disabled veteran business enterprise firm that works as a subcontractor, unless the awarding department can obtain sufficient assurance regarding the amounts paid to the disabled veteran business enterprise subcontractor, as certified by the subcontractor.

Existing law authorizes the Department of Veterans Affairs to assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing specified claims, including claims for disability compensation benefits and burial benefits, as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing any rights to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.

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

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

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

SECTION 1.

 It is the intent of the Legislature in enacting this legislation to implement the recommendations of the California State Auditor Report 2018-114 on the Disabled Veteran Business Enterprise Program.

SEC. 2.

 Section 999.5 of the Military and Veterans Code is amended to read:

999.5.

 (a) The administering agency for the California Disabled Veteran Business Enterprise Program is the Department of General Services, except in the case of contracts for professional bond services. The Department of General Services shall consult with the California Disabled Veteran Business Enterprise Program Advocate, appointed by the Secretary of the Department of Veterans Affairs pursuant to Section 999.11, on all matters relating to the California Disabled Veteran Business Enterprise Program. The Director of General Services shall adopt written policies and guidelines establishing a uniform process for state contracting that would provide a disabled veteran business enterprise participation incentive to bidders. The incentive program shall be used by all state agencies when awarding contracts.

(b) The Department of Veterans Affairs shall do all of the following:

(1) Establish a method of monitoring adherence to the goals specified in Sections 999.1 and 999.2.

(2) Promote the California Disabled Veteran Business Enterprise Program to the fullest extent possible.

(3) Maintain complete records of its promotional efforts.

(4) Establish a system to track the effectiveness of its efforts to promote the California Disabled Veteran Business Enterprise Program, which shall include regular, periodic surveys of newly certified disabled veteran business enterprises to determine how they learned of the program, why they became certified, and what their experience with awarding departments has been.

(c) An awarding department shall not credit toward the department’s 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that does not meet and maintain the certification requirements.

(d) Upon completion of an awarded contract for which a commitment to achieve a disabled veteran business enterprise goal was made, an awarding department shall require the prime contractor that entered into a subcontract with a disabled veteran business enterprise to certify to the awarding department all of the following:

(1) The total amount the prime contractor received under the contract.

(2) The name and address of the disabled veteran business enterprise that participated in the performance of the contract.

(3) The amount each disabled veteran business enterprise received from the prime contractor.

(4) That all payments under the contract have been made to the disabled veteran business enterprise. An awarding department shall keep that certification on file. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation in the minimum amount of two thousand five hundred dollars ($2,500) and the maximum amount of twenty-five thousand dollars ($25,000). An action for a civil penalty under this subdivision may be brought by any public prosecutor in the name of the people of the State of California and the penalty imposed shall be enforceable as a civil judgment.

(e) An awarding department shall not credit toward the department’s 3-percent goal state funds expended on a contract that includes a disabled veteran business enterprise firm that works as a subcontractor, unless the awarding department can obtain sufficient assurance regarding the amounts paid to the disabled veteran business enterprise subcontractor, as certified by the subcontractor.

(e)

(f) A prime contractor may, subject to the approval of the Department of General Services, replace a disabled veteran business enterprise identified by the prime contractor in its bid or offer, pursuant to subdivision (a) of Section 999.10, with another disabled veteran business enterprise.

(f)

(g) The administering agency shall adopt rules and regulations, including standards for good faith efforts, for the purpose of implementing this section. Emergency regulations consistent with this section may be adopted.

SECTION 1.Section 699.5 of the Military and Veterans Code is amended to read:

699.5.

(a)(1)The department may assist every veteran of the United States, and the dependent or survivor of every veteran of the United States, in presenting and pursuing any claim as the veteran, dependent, or survivor may have against the United States arising out of military service, and in establishing the veteran’s, dependent’s, or survivor’s right to any privilege, preference, care, or compensation provided for by the laws of the United States or of this state.

(2)The department may cooperate and, with the approval of the Department of Finance, contract with any veterans service organization, and pursuant to the contract may compensate the organization for services within the scope of this section rendered by it to any veteran or dependent or survivor of a veteran.

(3)The contract shall not be made unless the department determines that, owing to the confidential relationships involved and the necessity of operating through agencies that the veterans, dependents, or survivors involved will feel to be sympathetic toward their problems, the services cannot satisfactorily be rendered otherwise than through the agency of the veterans organization and that the best interests of the veterans, dependents, or survivors involved will be served if the contract is made.

(b)(1)The Legislature finds and declares that services provided by veterans service organizations play an important role in the department’s responsibilities to assist veterans and their dependents and survivors in presenting and pursuing claims against the United States, and that it is an efficient and reasonable use of state funds to provide compensation to veterans service organizations for these services.

(2)The Legislature further finds and declares that paragraph (1) shall not be implemented by using the General Fund until the annual budget for county veterans service officers reaches a minimum of five million dollars ($5,000,000). This subdivision does not preclude the use of federal funding in implementing these provisions.

(c)Veterans service organizations that elect to contract with the department in accordance with this section shall document the claims processed each year by the veterans service officers employed by the veterans service organization at offices located in the state. The documentation shall be in accordance with procedures established by the department.

(d)The department shall determine annually the amount of monetary benefits paid to eligible veterans and their dependents and survivors in the state as a result of the work of the veterans service officers of the contracting organizations. The department shall, on or before January 1 of each year, prepare and transmit its determination for the preceding fiscal year to the Department of Finance and the Legislature. The department shall also identify federal sources to support the efforts of veterans service organizations pursuant to this section. The Department of Finance shall review the department’s determination in time to use the information in the annual Budget Act for the budget of the department for the next fiscal year.

(e)For purposes of this section, the following definitions apply:

(1)“Survivor” means any relation of a deceased veteran who may be entitled to make a claim for any privilege, preference, care, or compensation under the laws of the United States or this state based upon the veteran’s war service.

(2)“Veterans service officer” means an individual employed by a veterans service organization and accredited by the United States Department of Veterans Affairs to process and adjudicate claims and other benefits for veterans and their dependents and survivors.

(3)“Veterans service organization” means an organization that meets all of the following criteria:

(A)Is formed by and for United States military veterans.

(B)Is chartered by the United States Congress.

(C)Has regularly maintained an established committee or agency in a regional office of the United States Department of Veterans Affairs in the state rendering services to veterans and their dependents and survivors.