09 LC 38
0814S
The
House Committee on Economic Development and Tourism offers the following
substitute to HB 196:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 3 of Chapter 5 of Title 50 of the Official Code of Georgia
Annotated, relating to state purchasing, so as to provide for a short title; to
provide for legislative intent; to provide for definitions; to provide for a
selection preference in state contracting for certified service-disabled veteran
business enterprises; to provide for a certification procedure to be established
by the Department of Administrative Services and the Department of Veterans
Service and reviewed biennially and updated as necessary; to provide for
requirements for application for, renewal of, and revocation of certification;
to provide for duties of the departments; to require the Department of Veterans
Service to report the percentage of service-disabled veteran business
enterprises using the statewide contracts register; to amend Article 4 of
Chapter 2 of Title 32 of the Official Code of Georgia Annotated, relating to the
Department of Transportation exercising its power to contract, so as to provide
for a selection preference in department contracting for certified
service-disabled veteran business enterprises; to provide for related matters;
to repeal conflicting laws; to provide for an effective date.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
This
Act shall be known and may be cited as the "Georgia Service-Disabled Veteran
Business Enterprise Opportunity Act."
SECTION
2.
Article
3 of Chapter 5 of Title 50 of the Official Code of Georgia Annotated, relating
to state purchasing, is amended by adding a new part to read as
follows:
"Part
6
50-5-139.
It
is the intent of the General Assembly to rectify the economic disadvantage of
service-disabled veterans, who are statistically the least likely to be
self-employed when compared to the veteran population as a whole and who have
made extraordinary sacrifices on behalf of the nation, the state, and the
public, by providing opportunities for service-disabled veteran business
enterprises.
50-5-139.1.
For
the purpose of this part, the term:
(1)
'Certified service-disabled veteran business enterprise' means a business that
has been certified by the Department of Administrative Services to be a
service-disabled veteran business enterprise as defined in paragraph (4) of this
Code section.
(2)
'Department' means the Department of Administrative Services.
(3)
'Service-disabled veteran' means a veteran who is a permanent Georgia resident
with a service-connected disability of 10 percent or greater as determined by
the United States Department of Veterans Affairs or who has been terminated from
military service by reason of disability by the United States Department of
Defense.
(4)
'Service-disabled veteran business enterprise' means an independently owned and
operated business that:
(A)
Employs 200 or fewer permanent full-time employees;
(B)
Together with its affiliates has a net worth of $5 million or less or, if a sole
proprietorship, has a net worth of $5 million or less including both personal
and business investments;
(C)
Is organized to engage in commercial transactions;
(D)
Is domiciled in this state;
(E)
Is at least 51 percent owned by one or more service-disabled veterans;
and
(F)
The management and daily business operations of which are controlled by one or
more service-disabled veterans or, for a service-disabled veteran with a
permanent and total disability, by the spouse or permanent caregiver of the
veteran.
50-5-139.2.
(a)
The department, when considering two or more bids, proposals, or replies for the
procurement of commodities or contractual services, at least one of which is
from a certified service-disabled veteran business enterprise, that are equal
with respect to all relevant considerations, including price, quality, and
service, shall award such procurement or contract to the certified
service-disabled veteran business enterprise.
(b)
If a service-disabled veteran business enterprise entitled to the vendor
preference pursuant to this Code section and one or more businesses entitled to
this preference or another vendor preference provided by law submit bids,
proposals, or replies for procurement of commodities or contractual services
that are equal with respect to all relevant considerations, including price,
quality, and service, then the department shall award the procurement or
contract to the business having the smallest net worth.
(c)
Political subdivisions of the state are encouraged to offer a similar
consideration to businesses certified under this Code section.
50-5-139.3.
(a)
The application for certification as a service-disabled veteran business
enterprise must, at a minimum, include:
(1)
The name of the business enterprise applying for certification and the name of
the service-disabled veteran submitting the application on behalf of the
business enterprise.
(2)
The names of all owners of the business enterprise, including owners who are
service-disabled veterans and owners who are not service-disabled veterans, and
the percentage of ownership interest held by each owner.
(3)
The name of all persons involved in both the management and daily operations of
the business, including the spouse or permanent caregiver of a veteran with a
permanent and total disability.
(4)
The service-connected disability rating of all persons listed under paragraphs
1, 2, and 3 of this subsection, as applicable, with supporting documentation
from the United States Department of Veterans Affairs or the United States
Department of Defense.
(5)
The number of permanent full-time employees.
(6)
The location of the business headquarters.
(7)
The total net worth of the business enterprise and its affiliates. In the case
of a sole proprietorship, the net worth includes personal and business
investments.
(b)
To maintain certification, a service-disabled veteran business enterprise shall
renew its certification biennially.
(c)
A certified service-disabled veteran business enterprise must notify the
department within 30 business days after any event that may significantly affect
the certification of the business, including, but not limited to, a change in
ownership or change in management and daily business operations.
(d)
The certification of a service-disabled veteran business enterprise shall be
revoked for 12 months if the department determines that the business enterprise
violated subsection (c) of this Code section. An owner of a certified
service-disabled veteran business enterprise whose certification is revoked is
not permitted to reapply for certification under this subsection as an owner of
any business enterprise during the 12-month revocation period. During the
12-month revocation period, a service-disabled veteran business enterprise whose
certification has been revoked may bid on state contracts but is not eligible
for any preference available under this section. A service-disabled veteran
business enterprise whose certification has been revoked may apply for
certification at the conclusion of the 12-month revocation period by complying
with requirements applicable to initial certifications.
50-5-139.4.
The
department shall:
(1)
Identify eligible service-disabled veteran business enterprises by any
electronic means, including e-mail or Internet website, or by any other
reasonable means.
(2)
Encourage and assist eligible service-disabled veteran business enterprises to
apply for certification under this section.
(3)
With assistance from the Department of Veterans Services, establish a
certification procedure, which shall be reviewed biennially and updated as
necessary.
(4)
Grant, deny, or revoke the certification of a service-disabled veteran business
enterprise under this section.
(5)
Maintain an electronic directory of certified service-disabled veteran business
enterprises for use by the state, political subdivisions of the state, and the
public.
50-5-139.5.
The
department shall submit a report biennially to the Department of Veterans
Services reporting the percentage of certified service-disabled veteran business
enterprises using the statewide contracts register.
50-5-139.6.
The
Department of Veterans Services and the department, as appropriate, shall
promulgate such rules as necessary to administer this
section."
SECTION
3.
Article
4 of Chapter 2 of Title 32 of the Official Code of Georgia Annotated, relating
to the Department of Transportation exercising its power to contract, is amended
by adding a new subsection to Code Section 32-2-69, relating to the award of a
contract to lowest reliable bidder, to read as follows:
"(e)
The department, when considering two or more bids and at least one of such bids
has been submitted by a service-disabled veteran business enterprise as defined
in Code Section 50-5-139.1, shall award the contract to the certified
service-disabled veteran business enterprise, provided that such
service-disabled veteran business enterprise has submitted a bid that is equal
with respect to all relevant conditions, including price, quality, and service
to the bids to which the department otherwise would have awarded the contract.
Prior to a service-disabled veteran business enterprise being awarded a contract
pursuant to this Code section, it shall first meet all conditions and
requirements set out in this article to qualify it for submitting a bid to the
department."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.