SB 159, as amended, Nielsen. California Disabled Veteran Business Enterprise Program: goal achievement.
Existing law establishes statewide participation 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 the Department of General Services to make available a report on contracting activity containing specified information, including a statistical summary detailing each awarding department’s goal achievement under the California Disabled Veteran Business Enterprise Program and a statewide total of those goals.
This bill would specify that an awarding department’s goal achievement under the California Disabled Veteran Business Enterprise Program, and statewide total of those goals, be measured as specified. The bill would also make a legislative finding that this bill is clarifying and declaratory of existing law.
begin insertThis bill would incorporate additional changes to Section 10111 of the Public Contract Code proposed by SB 1219 that would become operative if this bill and SB 1219 are enacted and this bill is enacted last.
end insertThis bill would declare that it is to take effect immediately as an urgency statute.
end deleteVote: begin delete2⁄3 end deletebegin insertmajorityend insert.
Appropriation: no.
Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10111 of the Public Contract Code is
2amended to read:
Commencing January 1, 2007, the department shall
4make available a report on contracting activity containing the
5following information:
6(a) A listing of consulting services contracts that the state has
7entered into during the previous fiscal year. The listing shall
8include the following:
9(1) The name and identification number of each contractor.
10(2) The type of bidding entered into, the number of bidders,
11whether the low bidder was accepted, and if the low bidder was
12not accepted, an explanation of why another contractor was
13selected.
14(3) The amount of the contract price.
15(4) Whether the contract was a noncompetitive bid contract,
16and why the contract was a noncompetitive bid contract.
17(5) Justification for entering into each consulting services
18contract.
19(6) The purpose of the contract and the potential beneficiaries.
20(7) The date when the initial contract was signed, and the date
21when the work began and was completed.
22(b) The report shall also include a separate listing of consultant
23contracts completed during that fiscal year, with the same
24information specified in subdivision (a).
P3 1(c) The information specified in subdivisions (a) and (b) shall
2also include a list of any contracts underway during that fiscal year
3on which a change was made regarding the following:
4(1) The completion date of the contract.
5(2) The amount of money to be received by the contractor, if it
6exceeds 3 percent of the original contract price.
7(3) The purpose of the contract or duties of the contractor. A
8brief explanation shall be given if the change in purpose is
9significant.
10(d) The level of participation, by agency, of disabled veteran
11business enterprises in statewide contracting and shall include
12dollar values of contract award for the following
categories:
13(1) Construction.
14(2) Architectural, engineering, and other professional services.
15(3) Procurement of materials, supplies, and equipment.
16(4) Information technology procurements.
17Additionally, the report shall include a statistical summary
18detailing each awarding department’s goal achievement and a
19statewide total of those goals. An awarding department’s goal
20achievement is to be measured pursuant to subdivision (a) of
21Section 999.2 of the Military and Veterans Code and subdivision
22(c) of Section 10115 of this code.
23(e) The level of participation by small
business in state
24contracting including:
25(1) Upon request, an up-to-date list of eligible small business
26bidders by general procurement and construction contract
27categories, noting company names and addresses and also noting
28which small businesses also qualify as microbusinesses.
29(2) By general procurement and construction contract categories,
30statistics comparing the small business and microbusiness contract
31participation dollars to the total state contract participation dollars.
32(3) By awarding department and general procurement and
33construction categories, statistics comparing the small business
34and microbusiness contract participation dollars to the total state
35contract participation dollars.
36(4) Any recommendations for changes in statutes or state
37policies to improve opportunities for small businesses and
38microbusinesses.
39(5) A statistical summary of small businesses and
40microbusinesses certified for state contracting by the number of
P4 1employees at the business for each of the following categories:
20-5, 26-50, 51-75, and 76-100.
3(6) To the extent feasible, beginning in the year 2008, the
4number of contracts awarded by the department in the categories
5specified in paragraph (5).
6(7) The number of contracts and dollar amounts awarded
7annually pursuant to Section 14838.5 of the Government Code to
8small businesses, microbusinesses, and disabled
veteran business
9enterprises.
10(f) The level of participation of business enterprises, by race,
11ethnicity, and gender of the owner, in contracts to the extent that
12the information has been voluntarily reported to the department.
13In addition, the report shall contain the levels of participation of
14business enterprises, by race, ethnicity, and gender of the owner,
15and whether the business is a lesbian, gay, bisexual, or transgender
16owned business for the following categories of contracts, to the
17extent that the information has been voluntarily reported to the
18department:
19(1) Construction.
20(2) Purchases of materials, supplies, or equipment.
21(3) Professional services.
22(g) In the years 2011 and 2012, any errors reported to the
23department by an awarding agency as required by Sections 10302,
2410344, and 12104.5, in the previous fiscal year.
25(h) The amendments made to this section by Chapter 861 of the
26Statutes of 2012 shall apply on and after January 1, 2013.
begin insertSection 10111 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
28amended to read:end insert
Commencing January 1, 2007, the department shall
30make available a report on contracting activity containing the
31following information:
32(a) A listing of consulting services contracts that the state has
33entered into during the previous fiscal year. The listing shall
34include the following:
35(1) The name and identification number of each contractor.
36(2) The type of bidding entered into, the number of bidders,
37whether the low bidder was accepted, and if the low bidder was
38not accepted, an explanation of why another contractor was
39selected.
40(3) The amount of the contract price.
P5 1(4) Whether the contract was a noncompetitive bid contract,
2and why the contract was a noncompetitive bid contract.
3(5) Justification for entering into each consulting services
4contract.
5(6) The purpose of the contract and the potential beneficiaries.
6(7) The date when the initial contract was signed, and the date
7when the work began and was completed.
8(b) The report shall also include a separate listing of consultant
9contracts completed during that fiscal year, with the same
10information specified in subdivision (a).
11(c) The information specified in subdivisions (a) and (b) shall
12also include a list of any contracts underway
during that fiscal year
13on which a change was made regarding the following:
14(1) The completion date of the contract.
15(2) The amount of money to be received by the contractor, if it
16exceeds 3 percent of the original contract price.
17(3) The purpose of the contract or duties of the contractor. A
18brief explanation shall be given if the change in purpose is
19significant.
20(d) The level of participation, by agency, of disabled veteran
21business enterprises in statewide contracting and shall include
22dollar values of contract award for the following categories:
23(1) Construction.
24(2) Architectural, engineering, and other professional services.
25(3) Procurement of materials, supplies, and equipment.
26(4) Information technology procurements.
27Additionally, the report shall include a statistical summary
28detailing each awarding department’s goal achievement and a
29statewide total of those goals.begin insert An awarding department’s goal
30achievement is to be measured pursuant to subdivision (a) of
31Section 999.2 of the Military and Veterans Code and subdivision
32(c) of Section 10115 of this code.end insert
33(e) The level of participation by small business in state
34contracting including:
35(1) Upon request, an up-to-date list of eligible
small business
36bidders by general procurement and construction contract
37categories, noting company names and addresses and also noting
38which small businesses also qualify as microbusinesses.
P6 1(2) By general procurement and construction contract categories,
2statistics comparing the small business and microbusiness contract
3participation dollars to the total state contract participation dollars.
4(3) By awarding department and general procurement and
5construction categories, statistics comparing the small business
6and microbusiness contract participation dollars to the total state
7contract participation dollars.
8(4) Any recommendations for changes in statutes or state
9policies to improve opportunities for small businesses and
10microbusinesses.
11(5) A
statistical summary of small businesses and
12microbusinesses certified for state contracting by the number of
13employees at the business for each of the following categories:
140-5, 26-50, 51-75, and 76-100.
15(6) To the extent feasible, beginning in the year 2008, the
16number of contracts awarded by the department in the categories
17specified in paragraph (5).
18(7) The number of contracts and dollar amounts awarded
19annually pursuant to Section 14838.5 of the Government Code to
20small businesses, microbusinesses, and disabled veteran business
21enterprises.
22(f) The level of participation of business enterprises, by race,
23ethnicity, and gender of the owner, in contracts to the extent that
24the information has been voluntarily reported to the department.
25In addition, the report shall contain the levels of participation of
26business
enterprises, by race, ethnicity, and gender of the owner,
27and whether the business is a lesbian, gay, bisexual, or transgender
28owned business for the following categories of contracts, to the
29extent that the information has been voluntarily reported to the
30department:
31(1) Construction.
32(2) Purchases of materials, supplies, or equipment.
33(3) Professional services.
34(g) In the years 2011 and 2012, any errors reported to the
35department by an awarding agency as required by Sections 10302,
3610344, and 12104.5, in the previous fiscal year.
37
(h) The level of participation by employment social enterprises
38in state
contracting, including the following:
P7 1
(1) Upon request, an up-to-date list of eligible employment
2social enterprises bidders by general procurement and construction
3contract categories.
4
(2) By general procurement and construction contract
5categories, statistics comparing the employment social enterprises
6contract participation dollars to the total state contract
7participation dollars.
8
(3) By awarding department and general procurement and
9construction categories, statistics comparing the employment social
10enterprises contract participation dollars to the total state contract
11participation dollars.
12
(4) Any recommendations for changes in
statutes or state
13policies to improve opportunities for employment social
14enterprises.
15
(5) The aggregate number of employees participating in
16employment social enterprises and verification of on-the-job and
17life skills training identified in subparagraph (D) of paragraph
18(3) of subdivision (d) of Section 14837 of the Government Code.
19This information shall be reported by categories, as established
20by the department.
21(h)
end delete
22begin insert(i)end insert The amendments made to this section bybegin delete the act adding this
23
subdivisionend delete
24after January 1, 2013.
The Legislature finds and declares that the amendments
26made by this act tobegin insert paragraph (4) of subdivision (d) ofend insert Section
2710111 of the Public Contract Code are clarifying and declaratory
28of existing law.
This act is an urgency statute necessary for the
30immediate preservation of the public peace, health, or safety within
31the meaning of Article IV of the Constitution and shall go into
32immediate effect. The facts constituting the necessity are:
33(1) California State Auditor Report 2013-115 on the Disabled
34Veteran Business Enterprise (DVBE) Program found that during
35the 2012-13 fiscal year, 83 percent of the DVBE contract award
36amounts went to only 30 DVBE firms and that a lack of
37standardized reporting by awarding agencies may distort an
38
assessment of whether the program is meeting the legislative intent.
39(2) The California State Auditor’s Office recommended that in
40order to ensure accuracy and consistency in reporting requirements
P8 1for the DVBE Program, it is necessary for the Legislature to clarify
2that an awarding department’s goal achievement under the DVBE
3Program is to be measured by the overall dollar amount expended
4each fiscal year.
5(3) Since the DVBE Program comprises of a minimum of 3
6percent of all state contracts awarded each fiscal year, which,
7according to the Department of General Services, was over $299
8million for the 2013-14 fiscal year, the sheer magnitude of the
9program necessitates urgency in establishing accurate and
10consistent reporting across all awarding departments.
11(4) For the above-mentioned reasons, it is necessary that
this
12bill take effect immediately.
Section 1.5 of this bill incorporates amendments to
14Section 10111 of the Public Contract Code proposed by both this
15bill and Senate Bill 1219. It shall only become operative if (1) both
16bills are enacted and become effective on or before January 1,
172017, (2) each bill amends Section 10111 of the Public Contract
18Code, and (3) this bill is enacted after Senate Bill 1219, in which
19case Section 1 of this bill shall not become operative.
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