BILL NUMBER: SB 115	CHAPTERED
	BILL TEXT

	CHAPTER  451
	FILED WITH SECRETARY OF STATE  OCTOBER 3, 2005
	APPROVED BY GOVERNOR  OCTOBER 3, 2005
	PASSED THE SENATE  SEPTEMBER 7, 2005
	PASSED THE ASSEMBLY  AUGUST 31, 2005
	AMENDED IN ASSEMBLY  AUGUST 29, 2005
	AMENDED IN ASSEMBLY  JUNE 27, 2005
	AMENDED IN SENATE  APRIL 11, 2005

INTRODUCED BY   Senator Florez

                        JANUARY 25, 2005

   An act to amend Section 14845 of the Government Code, and to amend
Sections 999, 999.5, 999.7, 999.11, and 999.12 of the Military and
Veterans Code, relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 115, Florez  California Disabled Veteran Business Enterprise
Program.
   Under existing law, state agencies and all other state entities
contracting for materials, supplies, equipment, alteration, repair,
or improvement are required to have at least 3% participation goals
for disabled veteran business enterprises. Existing law requires the
Department of Veterans Affairs and the awarding departments to
appoint a Disabled Veteran Business Enterprise Program Advocate to
assist in meeting the participation goals.
   This bill would specify that the Department of General Services is
the administering agency of the California Disabled Veteran Business
Enterprise Program, except in the case of contracts for professional
bond services, would specify the duties of the Department of General
Services in meeting that requirement, and would set standards for
meeting the program's participation goals.
   Existing law requires the Department of General Services' small
business advocate to provide, at a minimum, specified services to
small businesses.
   This bill, instead, would require the department's small business
advocate to provide these services to certified small businesses and
certified disabled veteran business enterprises.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14845 of the Government Code is amended to
read:
   14845.  Using existing resources, the Department of General
Services' small business advocate shall, at a minimum, provide the
following services:
   (a) Assist certified small businesses and certified disabled
veteran business enterprises by providing information regarding all
of the following:
   (1) Identification of potential certified small business and
certified disabled veteran business enterprise subcontractors and
potential subcontracting opportunities.
   (2) Solicitation protest procedures and timelines.
   (3) Prompt payment procedures.
   (b) Using existing resources, develop and maintain an outreach and
education program to assist certified small businesses and certified
disabled veteran business enterprises to establish the California
multiple award schedule. The department shall actively promote the
availability of certified small business and certified disabled
veteran business enterprise suppliers to deliver or provide a broad
range of goods and services to governmental agencies through their
participation in the California multiple award schedule program
established pursuant to Chapter 2 (commencing with Section 10290) of
Part 2 of Division 2 of the Public Contract Code and other types of
contracts established by state agencies for repetitively used and
commonly needed goods and services.
   (c) Whenever the director consolidates the needs of multiple state
agencies and establishes a contract for repetitively purchased or
commonly needed goods or services, the director shall both encourage
bidders to utilize certified small business and certified disabled
veteran business enterprise suppliers and subcontractors, and utilize
multiple award methods whenever practicable to further ensure that a
fair proportion of needed goods and services are obtained from
certified small businesses and certified disabled veteran business
enterprises.
   (d) Using existing resources, establish a training and development
program for acquisition professionals, including methods for
structuring solicitations to enhance the participation of certified
small businesses and certified disabled veteran business enterprises
in state contracting.
   (e) Using existing resources, the department shall establish a
recognition and awards program for state employees who make an
outstanding contribution to the state's overall effort to increase
the level of certified small business participation in state
contracting or certified disabled veteran business enterprise
participation in state contracting.
   (f) Prepare, and make available to the public, a directory of
certified small business and certified disabled veteran business
enterprise suppliers.
   (g) In its review of state agency acquisitions, the department, as
applicable, shall identify areas where improvements in the level of
participation of certified small businesses and certified disabled
veteran business enterprises in state contracting can be achieved.

  SEC. 2.  Section 999 of the Military and Veterans Code is amended
to read:
   999.  (a) This article shall be known as, and may be cited as, the
California Disabled Veteran Business Enterprise Program. The
California Disabled Veteran Business Enterprise Program is
established to address the special needs of disabled veterans seeking
rehabilitation and training through entrepreneurship and to
recognize the sacrifices of Californians disabled during military
service. It is the intent of the Legislature that every state
procurement authority honor California's disabled veterans by taking
all practical actions necessary to meet or exceed the disabled
veteran business enterprise participation goal of a minimum of 3
percent of total contract value.
   (b) As used in this article, the following definitions apply:
   (1) "Administering agency" means the Treasurer in the case of
contracts for professional bond services, and the Department of
General Services' Office of Small Business and Disabled Veteran
Business Enterprise Services, in the case of contracts governed by
Section 999.2.
   (2) "Awarding department" means any state agency, department,
governmental entity, or other officer or entity empowered by law to
issue bonds or enter into contracts on behalf of the State of
California.
   (3) "Bonds" means bonds, notes, warrants, certificates of
participation, and other evidences of indebtedness issued by, or on
behalf of, the State of California.
   (4) "Contract" includes any agreement or joint agreement to
provide professional bond services to the State of California or an
awarding department. "Contract" also includes any agreement or joint
development agreement to provide labor, services, materials,
supplies, or equipment in the performance of a contract, franchise,
concession, or lease granted, let, or awarded for, and on behalf of,
the State of California.
   (5) (A) "Contractor" means any person or persons, regardless of
race, color, creed, national origin, ancestry, sex, marital status,
disability, religious or political affiliation, age, or any sole
proprietorship, firm, partnership, joint venture, corporation, or
combination thereof who submits a bid and enters into a contract with
a representative of a state agency, department, governmental entity,
or other officer empowered by law to enter into contracts on behalf
of the State of California. "Contractor" includes any provider of
professional bond services who enters into a contract with an
awarding department.
   (B) "Disabled veteran business enterprise contractor,
subcontractor, or supplier" means any person or entity that has been
certified by the administering agency pursuant to this article and
that performs a "commercially useful function," as defined below, in
providing services or goods that contribute to the fulfillment of the
contract requirements:
   (i) A person or an entity is deemed to perform a "commercially
useful function" if a person or entity does all of the following:
   (I) (aa) Is responsible for the execution of a distinct element of
the work of the contract.
   (ab) Carries out the obligation by actually performing, managing,
or supervising the work involved.
   (ac) Performs work that is normal for its business services and
functions.
   (II) Is not further subcontracting a portion of the work that is
greater than that expected to be subcontracted by normal industry
practices.
   (ii) A contractor, subcontractor, or supplier will not be
considered to perform a "commercially useful function" if the
contractor's, subcontractor's, or supplier's role is limited to that
of an extra participant in a transaction, contract, or project
through which funds are passed in order to obtain the appearance of a
disabled veteran business enterprise participation.
   (6) "Disabled veteran" means a veteran of the military, naval, or
air service of the United States, including, but not limited to, the
Philippine Commonwealth Army, the Regular Scouts, "Old Scouts," and
the Special Philippine Scouts, "New Scouts," who has at least a
10-percent service-connected disability and who is domiciled in the
State of California.
   (7) (A) "Disabled veteran business enterprise" means a business
certified by the administering agency as meeting all of the following
requirements:
   (i) It is a sole proprietorship at least 51 percent owned by one
or more disabled veterans or, in the case of a publicly owned
business, at least 51 percent of its stock is owned by one or more
disabled veterans; a subsidiary that is wholly owned by a parent
corporation, but only if at least 51 percent of the voting stock of
the parent corporation is owned by one or more disabled veterans; or
a joint venture in which at least 51 percent of the joint venture's
management, control, and earnings are held by one or more disabled
veterans.
   (ii) The management and control of the daily business operations
are by one or more disabled veterans. The disabled veterans who
exercise management and control are not required to be the same
disabled veterans as the owners of the business.
   (iii) It is a sole proprietorship, corporation, or partnership
with its home office located in the United States, which is not a
branch or subsidiary of a foreign corporation, foreign firm, or other
foreign-based business.
   (B) Notwithstanding subparagraph (A), after the death or the
certification of a permanent medical disability of a disabled veteran
who is a majority owner of a business that qualified as a disabled
veteran business enterprise prior to that death or certification of a
permanent medical disability, and solely for purposes of any
contract entered into before that death or certification, that
business shall be deemed to be a disabled veteran business enterprise
for a period not to exceed three years after the date of that death
or certification of a permanent medical disability, if the business
is inherited or controlled by the spouse or child of that majority
owner, or by both of those persons.
   (8) "Foreign corporation," "foreign firm," or "foreign-based
business" means a business entity that is incorporated or has its
principal headquarters located outside the United States of America.

   (9) "Goal" means a numerically expressed objective that awarding
departments and contractors are required to make efforts to achieve.

   (10) "Management and control" means effective and demonstrable
management of the business entity.
   (11) "Professional bond services" include services as financial
advisers, bond counsel, underwriters in negotiated transactions,
underwriter's counsel, financial printers, feasibility consultants,
and other professional services related to the issuance and sale of
bonds.
  SEC. 3.  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 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) 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.
  SEC. 4.  Section 999.7 of the Military and Veterans Code, as
amended by Section 55 of Chapter 74 of the Statutes of 2005, is
amended to read:
   999.7.  (a) (1) Notwithstanding Section 10115.5 of the Public
Contract Code, on January 1 of each year, each awarding department
shall report to the Department of General Services and the Department
of Veterans Affairs on the level of participation by disabled
veteran business enterprises in contracts identified in this article
for the previous fiscal year.
   (2) If the awarding department has not met the established goals
for that year, the awarding department shall report to the Department
of General Services and the Department of Veterans Affairs the
reasons for the awarding department's inability to achieve the goals
and shall identify steps it shall take in an effort to achieve the
goals.
   (3) The Director of General Services shall adopt a streamlined
reporting procedure for state agencies to use in reporting their
disabled veteran business enterprise participation to the department.

   (b) On April 1 of each year, the Department of General Services
shall prepare for the Governor, the Legislature, and the Department
of Veterans Affairs a statewide statistical summary detailing each
awarding department's goal achievement and a statewide total of those
goals.
   (c) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 5.  Section 999.11 of the Military and Veterans Code is
amended to read:
   999.11.  The Secretary of the Department of Veterans Affairs shall
appoint the California Disabled Veteran Business Enterprise Program
Advocate. The California Disabled Veteran Business Enterprise Program
Advocate shall report directly to the secretary and shall do all of
the following:
   (a) Oversee, promote, and coordinate efforts to facilitate
implementation of this article.
   (b) Disseminate information on this article.
   (c) Coordinate reports pursuant to Section 999.7.
   (d) Coordinate with administering agencies and existing and
potential disabled veteran business enterprises to achieve the goals
specified in Sections 999.1 and 999.2.
   (e) Coordinate with the California Disabled Veteran Business
Enterprise Program Advocate appointed in all awarding departments
pursuant to Section 999.12.
  SEC. 6.  Section 999.12 of the Military and Veterans Code is
amended to read:
   999.12.  Each awarding department shall appoint an agency Disabled
Veteran Business Enterprise Program Advocate.  This person shall be
the same individual appointed pursuant to Section 14846 of the
Government Code. The agency Disabled Veteran Business Enterprise
Program Advocate shall do all of the following:
   (a) Assist certified disabled veteran business enterprises in
participating in that agency's contracting process.
   (b) Assist contract officers in seeking disabled veteran business
enterprises to participate in the agency's contract and procurement
activities by performing outreach efforts to recruit disabled veteran
business enterprises to offer their services as either a prime
contractor or subcontractor on any contract proposed by the awarding
department that requires disabled veteran business enterprise
participation, and by other feasible means.
   (c)  Meet regularly with the California Disabled Veteran Business
Enterprise Program Advocate and contract and procurement staffs of
their departments to disseminate information about the California
Disabled Veteran Business Enterprise Program.
   (d) Serve as an advocate for the disabled veteran business
enterprises that are utilized as the agency's contractors or
subcontractors.
   (e) Report to the Office of Small Business and Disabled Veteran
Business Enterprise Services regarding any violation of this article.

   (f) Coordinate and meet, on a regular basis, with the California
Disabled Veteran Business Enterprise Program Advocate at the
Department of Veterans Affairs in an effort to meet the statewide
3-percent goal provided for in Section 999.2.