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 Analyst's 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.