Article 7. Contracts With Nonprofit Veteran Service Agencies of California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 7.
It is the intent of the Legislature in enacting this
article to encourage state agencies, cities, counties, districts, and
other political subdivisions to purchase goods manufactured by, and
services provided by, a nonprofit veteran service agency whenever it
is both feasible to do so and the location of the nonprofit veteran
service agency makes the purchases reasonably convenient.
(a) A nonprofit veteran service agency shall be eligible
for certification as a small business under the Small Business
Procurement and Contract Act, as described in Chapter 6.5 (commencing
with Section 14835) of Part 5.5 of Division 3 of Title 2 of the
Government Code, and may be granted a small business bid preference
if it meets all of the following conditions:
(1) The goods or services meet the specifications and needs of the
(2) The goods or services are purchased at a fair and reasonable
price, as determined by the appropriate state or local agency.
(3) The nonprofit veteran service agency complies with all of the
(A) The nonprofit veteran service agency shall employ veterans
receiving services from the nonprofit veteran service agency for not
less than 75 percent of the person-hours of direct labor required for
the production of goods and the provision of services performed
pursuant to a contract under this section.
(B) The nonprofit veteran service agency agrees to make those
elections permitted of any nonprofit corporation under the Federal
Insurance Contributions Act (26 U.S.C. Sec. 3103 et seq.) and the
Unemployment Insurance Code in order to provide social security and
unemployment and disability benefits for its employees, commencing
with its first contract or purchase order under this section and
continuing thereafter. In the event that the nonprofit veteran
service agency ceases to provide those benefits, any existing
contract or purchase order under this section with the nonprofit
veteran service agency is terminated and no further contracts or
purchase orders shall be awarded to that nonprofit veteran service
agency for the period of two years after the nonprofit veteran
service agency ceases to provide the benefits.
(C) The nonprofit veteran service agency does not commit any
unfair labor practices, as defined in the National Labor Relations
Act, at Section 158 of Title 29 of the United States Code.
(D) The nonprofit veteran service agency abides by the provisions
of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Sec. 201
et seq.), the Walsh-Healy Public Contract Act (41 U.S.C. Sec. 35 et
seq.), and the regulations of the Department of Industrial Relations
(8 Cal. Code Regs. 1 et seq.).
(b) For purposes of this section:
(1) "Nonprofit veteran service agency" means a community-based
organization that meets the following requirements:
(A) It is exempt from tax under Section 501(c)(3) of the Internal
(B) Its principal purpose is to provide housing, substance abuse,
case management, and employment training services for low-income
veterans, disabled veterans, or homeless veterans and their families.
(2) "Direct labor" includes all work required for preparation,
processing, and packing of a good, or work directly relating to the
performance of a service, excluding supervision, administration,
inspection, and shipping.
(3) A veteran receiving services from the nonprofit veteran
service agency shall be considered an employee when performing