AB 1809 — Disabled veteran business enterprises.

Summary

(1) The Small Business Procurement and Contract Act requires state agencies to provide for small business preference in the award of contracts for goods, information technology, services, and construction, with a 5% bid preference on applicable bid specifications. This act also authorizes a state agency to award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than $5,000, but less than $250,000, to a certified small business, including a microbusiness, or to a disabled veteran business enterprise (DVBE) , as long as the agency obtains price quotations from 2 or more certified small businesses, including a microbusiness, or from a DVBE, without complying with specified competitive bidding requirements. This bill, commencing March 1, 2020, and until March 1, 2024, would authorize a state agency to award a contract for services or information technology that has an estimated value of between $5,000 and $500,000 to a certified small business, including a microbusiness, or to a DVBE, as long as the agency obtains price quotations from 2 or more certified small businesses or 2 or more DVBEs. The bill would specify that a certified small business or DVBE that utilizes this process as an alternative to the competitive bidding requirements may not also receive the small business preference or the DVBE participation incentive, as specified. (2) 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 DVBE participation incentive to bidders, which all state agencies are required to use when awarding contracts. Existing law requires the Department of Veterans Affairs to maintain complete records of its promotional efforts regarding the program and requires the department to perform regular, periodic surveys of newly certified DVBEs. This bill would require the department to establish a method an awarding department shall use to track and report adherence to specified goals and to provide guidance to awarding departments on how to process complaints regarding abuse of the DVBE program. The bill would also require the California Disabled Veteran Business Enterprise Program Advocate to promote and facilitate efforts to implement the program and to establish a system to track the effectiveness of the program, as specified. The bill would additionally repeal the requirement that the department perform regular, periodic surveys of newly certified DVBEs. (3) Existing law requires a department, after completing an awarded contract for which a commitment to achieve a DVBE goal was made, to require the prime contractor that entered into a subcontract with a DVBE to certify to the awarding department that all payments under the contract have been made to the DVBE. Existing law requires the awarding department to keep that certification on file. This bill would instead require the awarding department to post a list of its state contracts for which certification has been received on its internet website for no less than 3 years. (4) Existing law makes it a crime to fraudulently represent participation of a disabled veteran business enterprise in order to obtain or retain a bid preference or a state contract. Existing law requires the Department of General Services to report certain violations to the Attorney General and requires the Attorney General to consider whether to bring a civil action against a person for the violation. This bill would authorize any public prosecutor to bring a civil action for a violation involving a knowing fraudulent representation that a commercially useful function is being performed by a disabled veteran business enterprise in order to obtain or retain a bid preference for a state contract. The bill would prohibit the public prosecutor, other than the Attorney General, from bringing a civil action for that violation if the Department of General Services has concluded an administrative action for the violation. (5) Existing law requires that a person making a bid or offer to perform a contract shall, in the bid or offer, set forth specified information, including the name and the location of the place of business of each subcontractor certified as a DVBE. This bill would also require the bid or offer to include the DVBE certification number, contact information of the subcontractors certified as DVBEs, and a certification, under penalty of perjury, that the work to be done by each subcontractor serves a commercially useful function, as specified. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. (6) Existing law requires the Secretary of Veterans Affairs to appoint the California Disabled Veteran Business Enterprise Program Advocate and requires the advocate to perform certain duties, including disseminating information on the program and coordinating specified reports. Existing law requires each awarding department to appoint an agency Disabled Veteran Business Enterprise Program Advocate and requires the agency advocate to meet regularly with the state advocate and contract and procurement staff to disseminate information about the program. This bill would instead require the state advocate to support and facilitate the activities of administering agencies, including assisting awarding departments to identify certified DVBEs that can offer services and assisting DVBEs to clearly identify the products and services the DVBE has on offer. The bill would remove the requirement that the agency advocate meet regularly with the state advocate and would require the agency advocate to learn of future contracting opportunities and identify the types of goods, services, and information technology contracts for which the contract and procurement staff may have difficulty in identifying DVBE contractors and subcontractors. (7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Amended 08/12/19 - Amended Senate Current pdf August 12, 2019
• Amended 06/13/19 - Amended Senate pdf June 13, 2019
• Amended 04/10/19 - Amended Assembly pdf April 10, 2019
• Amended 04/08/19 - Amended Assembly pdf April 08, 2019
• Introduced 02/28/19 - Introduced pdf February 28, 2019
• AB1809 View text html

Action History

1. August 30, 2019

   In committee: Held under submission.

2. August 19, 2019

   In committee: Referred to APPR. suspense file.

3. August 12, 2019

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.

4. July 31, 2019

   In committee: Hearing postponed by committee.

5. July 09, 2019

   From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (July 9). Re-referred to Com. on APPR.

6. June 25, 2019

   From committee: Do pass and re-refer to Com. on V.A. (Ayes 16. Noes 0.) (June 25). Re-referred to Com. on V.A.

7. June 13, 2019

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O.

8. June 06, 2019

   Referred to Coms. on G.O. and V.A.

9. May 24, 2019

   In Senate. Read first time. To Com. on RLS. for assignment.

10. May 23, 2019

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1913.)

11. May 20, 2019

    Read second time. Ordered to third reading.

12. May 16, 2019

    From committee: Do pass. (Ayes 18. Noes 0.) (May 16).

13. May 08, 2019

    In committee: Set, first hearing. Referred to APPR. suspense file.

14. April 24, 2019

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 24). Re-referred to Com. on APPR.

15. April 11, 2019

    Re-referred to Com. on A. & A.R.

16. April 10, 2019

    From committee chair, with author's amendments: Amend, and re-refer to Com. on A. & A.R. Read second time and amended.

17. April 09, 2019

    Re-referred to Com. on A. & A.R.

18. April 08, 2019

    Read second time and amended.

19. April 04, 2019

    From committee: Amend, and do pass as amended and re-refer to Com. on A. & A.R. (Ayes 7. Noes 0.) (April 2).

20. March 28, 2019

    Referred to Coms. on J., E.D., & E. and A. & A.R.

21. March 01, 2019

    From printer. May be heard in committee March 31.

22. February 28, 2019

    Read first time. To print.

Sponsors

• Sabrina Cervantes · Primary

Votes

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