(a) Certified status is granted to those business entities who have met and complied with sections 1896.80, 1896.81, and 1896.82 requirements.
(b) Qualified DVBEs are issued the following certifications:
(1) DVBE certification, valid for twenty four (24) months.
(2) Multiple certifications, valid for twenty four (24) months. Multiple certifications mean DVBEs also have small business and small business for the purpose of public works certifications. Refer to sections 1896.4, subdivision (u) and 1896.4, subdivision (v) of Title 2, California Code of Regulations (CCR), for the definition of a small business and small business for the purpose of public works designations.
(3) Multiple certifications, with microbusiness and small business for the purpose of public works designations, valid for twenty four (24) months. Refer to section 1896.4, subdivision (p) of Title 2, California Code of Regulations (CCR), for the definition of a microbusiness designation.
(4) OSDS, at its discretion, may issue short-term certifications, for up to twenty four (24) months on a case-by-case basis based on the requirements set forth in section 1896.81. In addition, OSDS may extend the length of certifications as long as the total period of certification, including sequential extensions, is not exceeding sixty (60) months.
(c) The business shall be electronically notified of its certification, length of certification, and inclusion in the certification database.
(d) Recertification must be applied for, in the manner set forth in section 1896.80, prior to expiration of an existing certification.
(1) Requests for recertification, either electronically or on paper, may not be submitted earlier than ninety (90) calendar days before certifications expire.
(2) Unless otherwise instructed by OSDS, recertification requests must contain updated information and/or replacement of obsolete content to demonstrate continued eligibility.
(3) The qualifying DV shall declare in writing there are no changes in the service-connected disability as previously documented or, if there have been changes, provide the verification referenced in section 1896.82, subdivision (b).
(e) DVBEs are subject to verification of eligibility by OSDS at any time. Whenever eligibility requirements are no longer met, DVBEs shall withdraw in writing from certification or OSDS will discontinue certification thirty (30) days after written notice.
(f) In order to maintain certification when there are changes in ownership or business structure the following shall be required:
(1) DVBEs shall submit a new certification request identifying the new DV owners, DV managers and new business structure. Continued eligibility and the award of any new contracts require that OSDS first verify that all eligibility requirements are met by the business and the new owners; and
(2) Similarly, any exchange of a DV owner with another DV owner while in the course of contract performance must be approved by the awarding department and OSDS prior to such change.
(g) In the event of a certification of permanent medical disability or death of qualifying DV owners, the business shall do the following:
(1) Notify OSDS and awarding departments as soon as possible, not exceeding thirty (30) calendar days following the occurrence of permanent disability or death.
(2) Submit a new certification request to OSDS in accordance with section 1896.80 within ninety (90) calendar days following the occurrence of permanent disability or death.
(3) Submit documentation certifying the DV's permanent medical disability or death to OSDS along with the certification request. In addition, provide documents verifying who controls or has inherited the business. If permanent medical disability or death is confirmed, DVBE certification may continue, or recertification may be granted, for a period not to exceed three (3) years after the certified date of permanent medical disability, or death, if the business is inherited or controlled by the spouse or child of the majority owner, or by both of those persons.
(4) Such businesses are deemed to continue as a DVBE pursuant to Military and Veterans Code section 999, subdivision (b)(7)(B) solely for the purposes of the following:
(A) Fulfilling the requirements of an existing contract, entered into prior to the DV's death or certification of permanent medical disability, if the business is inherited or controlled by the spouse or child of the majority owner, or by both of those persons, for the duration of said contract, or,
(B) Providing sufficient time to make orderly and equitable arrangements for the disposition of the business, provided that the business shall not enter into any new contract as a DVBE, if the contract cannot be completed within the allowable three (3) year period.
(h) DVBEs shall maintain all licenses, insurance coverage, permits and registrations, including but not limited, to those issued by any California state department or local government jurisdiction required for the conduct of business. OSDS and the awarding department shall be noticed of any changes in licenses, permits, registrations, operation or ownership within thirty (30) calendar days.
(i) DVBEs must promptly notify OSDS in writing upon any change in the business address, contact information, or the DVs home address that may occur subsequent to obtaining certification.
(j) DVBEs shall maintain active status with the California Secretary of State and Contractors State License Board, when legally required to do so.
(k) DVBEs shall notify OSDS and the awarding department, in accordance with the provisions in Military and Veterans Code section 999.2, subdivision (h), if the requirements for certification have not been maintained.
Credits
Note: Authority cited: Sections 14600 and 14839, Government Code; and Section 999.5, Military and Veterans Code. Reference: Sections 14615.1, 14837 and 14838, Government Code; and Section 999, Military and Veterans Code.
