BILL NUMBER: SB 839 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 12, 2014
INTRODUCED BY Senator Correa
JANUARY 6, 2014
An act to amend Section 999.6 of add
Section 999.7 to the Military and Veterans Code, and to
amend Section 10111 of, and to add Section 10115.14 to, the Public
Contract Code, relating to veterans.
LEGISLATIVE COUNSEL'S DIGEST
SB 839, as amended, Correa. The California Disabled Veteran
Business Enterprise Program. Program: state
contracts.
Existing law establishes goals that apply to the overall
dollar amount expended each year by an awarding department, as
defined, to facilitate the participation of disabled veteran
business enterprises in state contracts , and establishes
the California Disabled Veteran Business Enterprise Program for this
purpose. 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.
This bill would make technical, nonsubstantive changes to that
resource utilization provision.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 999.7 is added to the
Military and Veterans Code , to read:
999.7. 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.
SEC. 2. Section 10111 of the Public
Contract Code is amended to read:
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 of contract award expended
annually as specified in Section 10115.14 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.
SEC. 3. Section 10115.14 is added to the
Public Contract Code , to read:
10115.14. 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.
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.