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House Engrossed |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HOUSE BILL 2199 |
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AN ACT
amending title 41, chapter 23, article 3, Arizona Revised Statutes, by adding section 41‑2560; 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 41-2560, to read:
41-2560. State contracts; veteran owned business; participation goal; rules; definitions
A. Notwithstanding any other law, the director shall establish a veteran owned business participation goal of awarding, pursuant to existing procurement rules, to qualified, operated and controlled veteran owned businesses state contracts involving the procurement of materials, services or construction or the disposal of materials. The participation goal shall be at least one and one‑half per cent during the first year following the effective date of this section and shall increase to three per cent or more for every year after the first year. 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 included in the registry.
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 goal using a registry of certified veteran owned businesses that is compiled by the director of the department of veterans' services. The director, by rule, may allow a procurement officer to reserve certain procurements for registered veteran owned businesses.
D. In the performance of a contract for services, a veteran owned business shall use at least fifty per cent 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 and who is separated from the armed forces under honorable conditions following more than six months of active duty.
2. "Veteran owned business" means a business concern where all of the following apply:
(a) The business is an individual proprietorship, partnership, corporation or joint venture that is at least fifty‑one per cent owned by one or more veterans or, in the case of any business whose stock is publicly held, where at least fifty‑one per cent of the stock is owned by one or more veterans.
(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, firm or other business.
Sec. 2. Effective date
Section 41-2560, Arizona Revised Statutes, as added by this act, is effective from and after December 31, 2010.