California 2019-2020 Regular Session

California Senate Bill SB588 Compare Versions

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1-Senate Bill No. 588 CHAPTER 80An act to amend Section 999.5 of, and to add Section 999.7 to, the Military and Veterans Code, relating to public contracts. [ Approved by Governor September 11, 2020. Filed with Secretary of State September 11, 2020. ] LEGISLATIVE COUNSEL'S DIGESTSB 588, Archuleta. Public contracts: Disabled Veteran Business Enterprise Program.Under existing law, the Department of General Services, except in the case of contracts for professional bond services, is the administering agency of the California Disabled Veteran Business Enterprise Program, which requires state agencies and all other state entities contracting for materials, supplies, equipment, alteration, repair, or improvement to have at least 3% participation goals for disabled veteran business enterprises (DVBEs), as defined. Existing law requires an awarding department, upon completion of 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 specified information relating to amounts paid under the contract, as specified. Existing law subjects a person or entity that knowingly provides false information on this certification to certain criminal and civil penalties, as specified.This bill would require an awarding department, on a contract entered into on or after January 1, 2021, to withhold $10,000, or the full payment if it is less than $10,000, from the final payment on a contract until that certification is received by the awarding department. The bill would require the awarding department to give a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. The bill would require the awarding department to permanently deduct $10,000 from the final payment, or the full payment if it is less than $10,000, from a contract with a contractor who does not comply with those requirements within the specified time period. The bill would require the Legislative Analysts Office to complete an assessment and report of the DVBE program, as specified, and submit that report to the Legislature on or before January 1, 2024.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.SEC. 2. Section 999.7 is added to the Military and Veterans Code, to read:999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
1+Enrolled August 28, 2020 Passed IN Senate August 27, 2020 Passed IN Assembly August 24, 2020 Amended IN Assembly March 05, 2020 Amended IN Assembly September 06, 2019 Amended IN Assembly August 12, 2019 Amended IN Assembly June 27, 2019 Amended IN Senate March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 588Introduced by Senator Archuleta(Principal coauthor: Assembly Member Cervantes)February 22, 2019An act to amend Section 999.5 of, and to add Section 999.7 to, the Military and Veterans Code, relating to public contracts.LEGISLATIVE COUNSEL'S DIGESTSB 588, Archuleta. Public contracts: Disabled Veteran Business Enterprise Program.Under existing law, the Department of General Services, except in the case of contracts for professional bond services, is the administering agency of the California Disabled Veteran Business Enterprise Program, which requires state agencies and all other state entities contracting for materials, supplies, equipment, alteration, repair, or improvement to have at least 3% participation goals for disabled veteran business enterprises (DVBEs), as defined. Existing law requires an awarding department, upon completion of 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 specified information relating to amounts paid under the contract, as specified. Existing law subjects a person or entity that knowingly provides false information on this certification to certain criminal and civil penalties, as specified.This bill would require an awarding department, on a contract entered into on or after January 1, 2021, to withhold $10,000, or the full payment if it is less than $10,000, from the final payment on a contract until that certification is received by the awarding department. The bill would require the awarding department to give a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. The bill would require the awarding department to permanently deduct $10,000 from the final payment, or the full payment if it is less than $10,000, from a contract with a contractor who does not comply with those requirements within the specified time period. The bill would require the Legislative Analysts Office to complete an assessment and report of the DVBE program, as specified, and submit that report to the Legislature on or before January 1, 2024.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.SEC. 2. Section 999.7 is added to the Military and Veterans Code, to read:999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
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3- Senate Bill No. 588 CHAPTER 80An act to amend Section 999.5 of, and to add Section 999.7 to, the Military and Veterans Code, relating to public contracts. [ Approved by Governor September 11, 2020. Filed with Secretary of State September 11, 2020. ] LEGISLATIVE COUNSEL'S DIGESTSB 588, Archuleta. Public contracts: Disabled Veteran Business Enterprise Program.Under existing law, the Department of General Services, except in the case of contracts for professional bond services, is the administering agency of the California Disabled Veteran Business Enterprise Program, which requires state agencies and all other state entities contracting for materials, supplies, equipment, alteration, repair, or improvement to have at least 3% participation goals for disabled veteran business enterprises (DVBEs), as defined. Existing law requires an awarding department, upon completion of 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 specified information relating to amounts paid under the contract, as specified. Existing law subjects a person or entity that knowingly provides false information on this certification to certain criminal and civil penalties, as specified.This bill would require an awarding department, on a contract entered into on or after January 1, 2021, to withhold $10,000, or the full payment if it is less than $10,000, from the final payment on a contract until that certification is received by the awarding department. The bill would require the awarding department to give a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. The bill would require the awarding department to permanently deduct $10,000 from the final payment, or the full payment if it is less than $10,000, from a contract with a contractor who does not comply with those requirements within the specified time period. The bill would require the Legislative Analysts Office to complete an assessment and report of the DVBE program, as specified, and submit that report to the Legislature on or before January 1, 2024.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ Enrolled August 28, 2020 Passed IN Senate August 27, 2020 Passed IN Assembly August 24, 2020 Amended IN Assembly March 05, 2020 Amended IN Assembly September 06, 2019 Amended IN Assembly August 12, 2019 Amended IN Assembly June 27, 2019 Amended IN Senate March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 588Introduced by Senator Archuleta(Principal coauthor: Assembly Member Cervantes)February 22, 2019An act to amend Section 999.5 of, and to add Section 999.7 to, the Military and Veterans Code, relating to public contracts.LEGISLATIVE COUNSEL'S DIGESTSB 588, Archuleta. Public contracts: Disabled Veteran Business Enterprise Program.Under existing law, the Department of General Services, except in the case of contracts for professional bond services, is the administering agency of the California Disabled Veteran Business Enterprise Program, which requires state agencies and all other state entities contracting for materials, supplies, equipment, alteration, repair, or improvement to have at least 3% participation goals for disabled veteran business enterprises (DVBEs), as defined. Existing law requires an awarding department, upon completion of 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 specified information relating to amounts paid under the contract, as specified. Existing law subjects a person or entity that knowingly provides false information on this certification to certain criminal and civil penalties, as specified.This bill would require an awarding department, on a contract entered into on or after January 1, 2021, to withhold $10,000, or the full payment if it is less than $10,000, from the final payment on a contract until that certification is received by the awarding department. The bill would require the awarding department to give a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. The bill would require the awarding department to permanently deduct $10,000 from the final payment, or the full payment if it is less than $10,000, from a contract with a contractor who does not comply with those requirements within the specified time period. The bill would require the Legislative Analysts Office to complete an assessment and report of the DVBE program, as specified, and submit that report to the Legislature on or before January 1, 2024.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5- Senate Bill No. 588 CHAPTER 80
5+ Enrolled August 28, 2020 Passed IN Senate August 27, 2020 Passed IN Assembly August 24, 2020 Amended IN Assembly March 05, 2020 Amended IN Assembly September 06, 2019 Amended IN Assembly August 12, 2019 Amended IN Assembly June 27, 2019 Amended IN Senate March 27, 2019
66
7- Senate Bill No. 588
7+Enrolled August 28, 2020
8+Passed IN Senate August 27, 2020
9+Passed IN Assembly August 24, 2020
10+Amended IN Assembly March 05, 2020
11+Amended IN Assembly September 06, 2019
12+Amended IN Assembly August 12, 2019
13+Amended IN Assembly June 27, 2019
14+Amended IN Senate March 27, 2019
815
9- CHAPTER 80
16+ CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
17+
18+ Senate Bill
19+
20+No. 588
21+
22+Introduced by Senator Archuleta(Principal coauthor: Assembly Member Cervantes)February 22, 2019
23+
24+Introduced by Senator Archuleta(Principal coauthor: Assembly Member Cervantes)
25+February 22, 2019
1026
1127 An act to amend Section 999.5 of, and to add Section 999.7 to, the Military and Veterans Code, relating to public contracts.
12-
13- [ Approved by Governor September 11, 2020. Filed with Secretary of State September 11, 2020. ]
1428
1529 LEGISLATIVE COUNSEL'S DIGEST
1630
1731 ## LEGISLATIVE COUNSEL'S DIGEST
1832
1933 SB 588, Archuleta. Public contracts: Disabled Veteran Business Enterprise Program.
2034
2135 Under existing law, the Department of General Services, except in the case of contracts for professional bond services, is the administering agency of the California Disabled Veteran Business Enterprise Program, which requires state agencies and all other state entities contracting for materials, supplies, equipment, alteration, repair, or improvement to have at least 3% participation goals for disabled veteran business enterprises (DVBEs), as defined. Existing law requires an awarding department, upon completion of 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 specified information relating to amounts paid under the contract, as specified. Existing law subjects a person or entity that knowingly provides false information on this certification to certain criminal and civil penalties, as specified.This bill would require an awarding department, on a contract entered into on or after January 1, 2021, to withhold $10,000, or the full payment if it is less than $10,000, from the final payment on a contract until that certification is received by the awarding department. The bill would require the awarding department to give a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. The bill would require the awarding department to permanently deduct $10,000 from the final payment, or the full payment if it is less than $10,000, from a contract with a contractor who does not comply with those requirements within the specified time period. The bill would require the Legislative Analysts Office to complete an assessment and report of the DVBE program, as specified, and submit that report to the Legislature on or before January 1, 2024.
2236
2337 Under existing law, the Department of General Services, except in the case of contracts for professional bond services, is the administering agency of the California Disabled Veteran Business Enterprise Program, which requires state agencies and all other state entities contracting for materials, supplies, equipment, alteration, repair, or improvement to have at least 3% participation goals for disabled veteran business enterprises (DVBEs), as defined. Existing law requires an awarding department, upon completion of 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 specified information relating to amounts paid under the contract, as specified. Existing law subjects a person or entity that knowingly provides false information on this certification to certain criminal and civil penalties, as specified.
2438
2539 This bill would require an awarding department, on a contract entered into on or after January 1, 2021, to withhold $10,000, or the full payment if it is less than $10,000, from the final payment on a contract until that certification is received by the awarding department. The bill would require the awarding department to give a prime contractor that fails to meet those certification requirements 15 to 30 calendar days to cure the defect. The bill would require the awarding department to permanently deduct $10,000 from the final payment, or the full payment if it is less than $10,000, from a contract with a contractor who does not comply with those requirements within the specified time period. The bill would require the Legislative Analysts Office to complete an assessment and report of the DVBE program, as specified, and submit that report to the Legislature on or before January 1, 2024.
2640
2741 ## Digest Key
2842
2943 ## Bill Text
3044
3145 The people of the State of California do enact as follows:SECTION 1. 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.SEC. 2. Section 999.7 is added to the Military and Veterans Code, to read:999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
3246
3347 The people of the State of California do enact as follows:
3448
3549 ## The people of the State of California do enact as follows:
3650
3751 SECTION 1. 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.
3852
3953 SECTION 1. Section 999.5 of the Military and Veterans Code is amended to read:
4054
4155 ### SECTION 1.
4256
4357 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.
4458
4559 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.
4660
4761 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 departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or 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 and the contract number.(3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and 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. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.(e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.(f) 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.(g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.(h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.
4862
4963
5064
5165 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.
5266
5367 (b) The Department of Veterans Affairs shall do all of the following:
5468
5569 (1) Establish a method of monitoring adherence to the goals specified in Sections 999.1 and 999.2.
5670
5771 (2) Promote the California Disabled Veteran Business Enterprise Program to the fullest extent possible.
5872
5973 (3) Maintain complete records of its promotional efforts.
6074
6175 (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.
6276
6377 (c) An awarding department shall not credit toward the departments 3-percent goal state funds expended on a contract with a disabled veteran business enterprise that is not certified at the time of the award or does not meet and maintain the certification requirements.
6478
6579 (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:
6680
6781 (1) The total amount the prime contractor received under the contract.
6882
6983 (2) The name and address of the disabled veteran business enterprise that participated in the performance of the contract and the contract number.
7084
7185 (3) The amount and percentage of work the prime contractor committed to provide to one or more disabled veteran business enterprises under the requirements of the contract and the amount each disabled veteran business enterprise received from the prime contractor.
7286
7387 (4) That all payments under the contract have been made to the disabled veteran business enterprise. Upon request by the awarding department, the prime contractor shall provide proof of payment for the work.
7488
7589 (e) An awarding department shall keep the certification required pursuant to subdivision (d) on file.
7690
7791 (f) 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.
7892
7993 (g) After being awarded a contract, the prime contractor shall use the disabled veteran business enterprise subcontractors or suppliers proposed in the bid or proposal to the state unless a substitution is requested and approved. The prime contractor shall request the substitution in writing to the awarding department and receive approval from both the awarding department and the Department of General Services in writing prior to the commencement of any work by the proposed subcontractor or supplier. A substitution pursuant to this subdivision shall additionally comply with regulations adopted by the Department of General Services.
8094
8195 (h) The administering agency shall adopt rules and regulations for the purpose of implementing this section.
8296
8397 SEC. 2. Section 999.7 is added to the Military and Veterans Code, to read:999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
8498
8599 SEC. 2. Section 999.7 is added to the Military and Veterans Code, to read:
86100
87101 ### SEC. 2.
88102
89103 999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
90104
91105 999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
92106
93107 999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.(b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.(2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:(A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.(B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.(C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.(D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.(E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.(c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.
94108
95109
96110
97111 999.7. (a) The awarding department shall withhold, on a contract entered into on or after January 1, 2021, ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000), until a prime contractor complies with the certification requirements of subdivision (d) of Section 999.5. A prime contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, the awarding department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000). For contracts awarded for use by multiple state agencies, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the certification requirement.
98112
99113 (b) (1) On or before January 1, 2024, the Legislative Analysts Office shall complete a comprehensive assessment of the disabled veteran business enterprise program and submit a report to the Legislature. All other state entities shall assist the Legislative Analysts Office in completing its assessment to the greatest extent practicable.
100114
101115 (2) The report submitted pursuant to paragraph (1) shall include, but is not limited to:
102116
103117 (A) Reports of noncompliance with the requirements of the disabled veteran enterprise program.
104118
105119 (B) Whether the Department of General Services is tracking complaints of abuse of the program, and information about those complaints, if available, including the type of abuse, how it was reported or discovered, dates that specific actions were taken on the case, and preventive measures taken by awarding departments.
106120
107121 (C) Whether the awarding departments notified disabled veteran business enterprise subcontractors when they were named on an awarded contract.
108122
109123 (D) Whether prime contractors received approval by the Department of General Services to replace a disabled veteran business enterprise subcontractor identified by the prime contractor in its bid or offer.
110124
111125 (E) Whether withholding payments have deterred prime contractors from failing to provide accurate certifications.
112126
113127 (3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
114128
115129 (c) Notwithstanding any other law, an awarding department shall not withhold more than the amount specified in subdivision (a) on the final payment of any disabled veteran business enterprise contract for the purposes of ensuring compliance with the certification requirements of subdivision (d) of Section 999.5.