PREFILED DEC 13 2016
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REFERENCE TITLE: veteran-owned businesses; procurement preference |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HB 2004 |
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Introduced by Representative Cardenas
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AN ACT
amending title 41, chapter 23, article 3, Arizona Revised Statutes, by adding section 41-2545; relating to the Arizona procurement code.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 23, article 3, Arizona Revised Statutes, is amended by adding section 41-2545, to read:
41-2545. State contracts; veteran-owned businesses; participation goal; registry; definitions
A. Notwithstanding any other law, the director of the department of administration shall establish a veteran‑owned business participation goal of awarding, pursuant to existing procurement rules, to veteran‑owned businesses state contracts involving the procurement of materials, services or construction or the disposal of materials. The participation goal is at least one and one‑half percent for the year beginning on january 1, 2018 and increases to three percent or more for every year thereafter. The goal applies to the overall dollar amount spent each year by this state pursuant to this article.
B. The director of the department of veterans' services shall:
1. Establish a registry of veteran‑owned businesses to verify the veteran status and eligibility of businesses seeking to be awarded a contract under this section.
2. Use any resources, including the United States department of veterans affairs vetbiz registry, or its successor registry, or the United States department of defense form dd-214, or its successor form, to determine business eligibility.
C. The director of the department of administration shall establish procedures for meeting the participation goal using the registry of veteran‑owned businesses established under subsection B of this section. The director of the department of administration, by rule, may allow a procurement officer to reserve certain procurements for registered veteran‑owned businesses.
D. In performing a contract for services under this section, a veteran‑owned business shall use at least fifty percent of the proceeds of the contract to pay for the salaries of employees of the veteran‑owned business. This subsection does not apply to construction contracts.
E. For the purposes of this section:
1. "Veteran" means a person who is a veteran of the armed forces of the United States, is separated from the armed forces under honorable conditions following more than six months of active duty and meets the requirements of section 38‑492, subsection E.
2. "Veteran‑owned business" means a business to which all of the following apply:
(a) The business is an individual proprietorship, partnership, corporation or joint venture that is at least fifty-one percent owned by one or more veterans who receive combat-related special compensation pursuant to 10 United States Code section 1413a or, for a business whose stock is publicly held, at least fifty-one percent of the stock is owned by one or more veterans who receive combat-related special compensation pursuant to 10 United States Code section 1413a.
(b) The management and daily operations of the business are controlled by one or more veterans who own the business.
(c) The home office of the business is located in this state and is not a branch or subsidiary of a foreign corporation or firm or other foreign business.
Sec. 2. Effective date
This act is effective from and after December 31, 2017.