1. (a) Within the time frames specified by the department's bid or sole source package, potential contractors shall be required to provide the department with either (1) or (2) below:

   1. (1) Documentation, as required in the department's bid or sole source package, that they have met the DVBE goal established in the respective package which shall include, but not be limited to, the names of their subcontractors; certification pursuant to section 3467; and dollar amounts of the subcontracts.
   2. (2) Documentation, as required in the department's bid or sole source package, of their efforts as a responsible bidder pursuant to section 3468 to meet the DVBE goal established in the department's bid or sole source package.

2. (b) For the purpose of this article, a DVBE must perform a Commercially Useful Function (CUF). A DVBE is considered to be performing a CUF when it meets all of the following criteria:

   1. (1) Executes a distinct element of the work of the contract.
   2. (2) Carries out the obligation by actually performing, managing, or supervising the work involved.
   3. (3) Performs work that is normal for its business services and functions.
   4. (4) Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable, and making payment.
   5. (5) Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.
3. (c) A contractor, subcontractor, or supplier will not be considered to perform a CUF if the contractor's, subcontractor's, or supplier's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of a DVBE participation.

Note: Authority cited: Section 5058, Penal Code; and Section 10115.3(b), Public Contract Code. Reference: Sections 10115, 10115.2 and 10115.3, Public Contract Code; and Section 999, Military and Veterans Code.

History

1. Renumbering of section 3476 to new section 3466, including amendment of subsections (a)(1)-(2), filed 3-25-2020 as an emergency; operative 6-1-2020 (Register 2020, No. 13). Pursuant to Penal Code section 5058.3, a Certificate of Compliance must be transmitted to OAL by 11-9-2020 or emergency language will be repealed by operation of law on the following day.

2. Emergency filed 3-25-2020 and operative 6-1-2020 extended 60 days pursuant to Executive Order N-40-20 and an additional 60 days pursuant to Executive Order N-66-20 (Register 2020, No. 42). A Certificate of Compliance must be transmitted to OAL by 3-9-2021 or emergency language will be repealed by operation of law on the following day.

3. Renumbering of section 3476 to new section 3466, including amendment of subsections (a)(1)-(2), refiled 2-25-2021 as an emergency; operative 3-10-2021 (Register 2021, No. 9). Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20). A Certificate of Compliance must be transmitted to OAL by 10-8-2021 or emergency language will be repealed by operation of law on the following day.

4. Renumbering of section 3476 to new section 3466, including amendment of subsections (a)(1)-(2), refiled 10-4-2021 as an emergency; operative 10-8-2021 pursuant to Government Code section 11346.1(d) (Register 2021, No. 41). A Certificate of Compliance must be transmitted to OAL by 1-6-2022 pursuant to Government Code section 11346.1(h) or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 10-4-2021 order transmitted to OAL 12-7-2021 and filed 1-5-2022 (Register 2022, No. 1).

6. Amendment of section and Note filed 3-10-2022; operative 7-1-2022 (Register 2022, No. 10).