Bill Text: IN HB1252 | 2013 | Regular Session | Introduced
Bill Title: Veterans business set-aside.
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2013-01-17 - Representative Klinker added as coauthor [HB1252 Detail]
Download: Indiana-2013-HB1252-Introduced.html
Citations Affected: IC 4-13-16.5.
Synopsis: Veterans business set-aside. Service disabled veterans'
businesses. Changes the name of the governor's commission on
minority and women's business enterprises to the governor's
commission on minority, women's, and service disabled veterans'
business enterprises. Expands the membership of the commission, and
makes the director of the Indiana department of veterans' affairs a
member of the commission. Specifies qualifications that a business
must meet to be a service disabled veterans' business enterprise.
Requires the commission to establish annual goals for the use of
service disabled veteran owned businesses in state contracts.
Effective: July 1, 2013.
January 14, 2013, read first time and referred to Committee on Veterans Affairs and Public
Safety.
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A BILL FOR AN ACT to amend the Indiana Code concerning
military and veterans.
(b) "Commission" refers to the governor's commission on minority,
(c) "Commissioner" refers to the deputy commissioner for minority,
(d) "Contract" means any contract awarded by a state agency or, as set forth in section 2(f)(11) of this chapter, awarded by a recipient of state grant funds, for construction projects or the procurement of goods or services, including professional services. For purposes of this subsection, "goods or services" may not include the following when determining the total value of contracts for state agencies:
(1) Utilities.
(2) Health care services (as defined in IC 27-8-11-1(c)).
(3) Rent paid for real property or payments constituting the price of an interest in real property as a result of a real estate transaction.
(e) "Contractor" means a person or entity that:
(1) contracts with a state agency; or
(2) as set forth in section 2(f)(11) of this chapter:
(A) is a recipient of state grant funds; and
(B) enters into a contract:
(i) with a person or entity other than a state agency; and
(ii) that is paid for in whole or in part with the state grant funds.
(f) "Department" refers to the Indiana department of administration established by IC 4-13-1-2.
(g) "Minority business enterprise" or "minority business" means an individual, partnership, corporation, limited liability company, or joint venture of any kind that is owned and controlled by one (1) or more persons who are:
(1) United States citizens; and
(2) members of a minority group or a qualified minority nonprofit corporation.
(h) "Qualified minority nonprofit corporation", "qualified service disabled veterans' nonprofit business", or "qualified women's nonprofit corporation" means a corporation (or, in the case of a qualified service disabled veterans' nonprofit business, an individual, partnership, corporation, limited liability company, or joint venture of any kind) that:
(1) is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code;
(2) is headquartered in Indiana;
(3) has been in continuous existence for at least five (5) years;
(4) has a board of directors that has been in compliance with all other requirements of this chapter for at least five (5) years;
(5) is chartered (or, in the case of a service disabled veterans' nonprofit business, established) for the benefit of the minority community, the service disabled veterans' community, or women; and
(6) provides a service that will not impede competition among minority business enterprises,
or a women's business enterprise.
(i) "Owned and controlled" means:
(1) if the business is a qualified minority nonprofit corporation, a
majority of the board of directors are minority;
(2) if the business is a qualified women's nonprofit corporation,
a majority of the members of the board of directors are women; or
(3) if the business is a qualified service disabled veterans'
nonprofit business that has a board of directors, a majority of
the board of directors are service disabled veterans; or
(4) if the business is a business other than a qualified minority
nonprofit corporation, a qualified service disabled veterans'
nonprofit business, or a qualified women's nonprofit
corporation, having:
(A) ownership of at least fifty-one percent (51%) of the
enterprise, including corporate stock of a corporation;
(B) control over the management and active in the day-to-day
operations of the business; and
(C) an interest in the capital, assets, and profits and losses of
the business proportionate to the percentage of ownership.
(j) "Minority group" means:
(1) Blacks;
(2) American Indians;
(3) Hispanics; and
(4) Asian Americans.
(k) "Separate body corporate and politic" refers to an entity
established by the general assembly as a body corporate and politic.
(l) "State agency" refers to any authority, board, branch,
commission, committee, department, division, or other instrumentality
of the executive, including the administrative, department of state
government.
(m) "Service disabled veteran" has the meaning set forth in 15
U.S.C. 632(q)(1), as in effect January 1, 2013.
(n) "Service disabled veterans' business" or "service disabled
veterans' business enterprise" means an individual, partnership,
corporation, limited liability company, or joint venture of any kind
that:
(1) is owned and controlled by one (1) or more persons who
are:
(A) service disabled veterans; and
(B) citizens of the United States; and
(2) has a current verification as a service disabled veteran
owned business under 38 CFR 74 et seq. by the Center of
Veterans Enterprise of the United States Department of
Veterans Affairs.
(1) A governor's designee, who shall serve as chairman of the commission.
(2) The commissioner of the Indiana department of transportation, or the economic opportunity director of the Indiana department of transportation if the commissioner of the Indiana department of transportation so designates.
(3) The chairperson of the board of the Indiana economic development corporation or the chairperson's designee.
(4) The commissioner of the department.
(5)
(A)
(B)
(C)
(6) Two (2) members of the house of representatives, no more than one (1) from the same political party, appointed by the speaker of the house of representatives to serve in a nonvoting advisory capacity.
(7) Two (2) members of the senate, no more than one (1) from the same political party, appointed by the president pro tempore of the senate to serve in a nonvoting advisory capacity.
(8) The director of the Indiana department of veterans' affairs established by IC 10-17-1-2.
Not more than
(b) Each member of the commission who is not a state employee is entitled to the following:
(1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses and other expenses actually incurred in connection with the member's duties as provided under IC 4-13-1-4 and in the state travel policies and procedures established by the Indiana department of administration and approved by the budget agency.
(c) Each legislative member of the commission is entitled to receive the same per diem, mileage, and travel allowances established by the legislative council and paid to members of the general assembly serving on interim study committees. The allowances specified in this subsection shall be paid by the legislative services agency from the amounts appropriated for that purpose.
(d) A member of the commission who is a state employee but who is not a member of the general assembly is not entitled to any of the following:
(1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses as provided under IC 4-13-1-4.
(3) Other expenses actually incurred in connection with the member's duties.
(e) The commission shall meet at least four (4) times each year and at other times as the chairman considers necessary.
(f) The duties of the commission shall include but not be limited to the following:
(1) Identify minority,
(2) Assess the needs of minority,
(3) Initiate aggressive programs to assist minority,
(4) Give special publicity to procurement, bidding, and qualifying procedures.
(5) Include minority,
veterans' business enterprises on solicitation mailing lists.
(6) Evaluate the competitive differences between:
(A) qualified minority or women's nonprofit corporations and
qualified service disabled veterans' nonprofit businesses;
and
(B) business enterprises other than qualified minority or
women's nonprofit corporations and qualified service
disabled veterans' nonprofit businesses that offer similar
services;
and make recommendation to the department on policy changes
necessary to ensure fair competition among minority, and
women's, and service disabled veterans' business enterprises.
(7) Define the duties, goals, and objectives of the deputy
commissioner of the department as created under this chapter to
assure compliance by all state agencies, separate bodies corporate
and politic, and state educational institutions with state and
federal legislation and policy concerning the awarding of
contracts (including, notwithstanding section 1(d) of this chapter
or any other law, contracts of state educational institutions) to
minority business enterprises, service disabled veterans'
business enterprises, and women's business enterprises.
(8) Establish annual goals:
(A) for the use of minority business enterprises, service
disabled veterans' business enterprises, and women's
business enterprises; and
(B) derived from a statistical analysis of utilization study of
state contracts (including, notwithstanding section 1(d) of this
chapter or any other law, contracts of state educational
institutions) that are required to be updated every five (5)
years.
(9) Prepare a review of the commission and the various affected
departments of government to be submitted to the governor and
the legislative council on March 1 and October 1 of each year,
evaluating progress made in the areas defined in this subsection.
(10) Ensure that the statistical analysis required under this
section:
(A) is based on goals for participation of minority business
enterprises established in Richmond v. Croson, 488 U.S. 469
(1989);
(B) includes information on both contracts and subcontracts
(including, notwithstanding section 1(d) of this chapter or any
other law, contracts and subcontracts of state educational
institutions); and
(C) uses data on the combined capacity of minority business
enterprises, service disabled veterans' business enterprises,
and women's businesses enterprises in Indiana and not just
regional data.
(11) Establish annual goals for the use of minority business
enterprises, service disabled veterans' business enterprises,
and women's business enterprises for any contract that:
(A) will be paid for in whole or in part with state grant funds;
and
(B) involves the use of real property of a unit (as defined in
IC 4-4-32.2-9).
(g) The department shall direct contractors to demonstrate a good
faith effort to meet the annual participation goals established under
subsection (f)(11). The good faith effort shall be demonstrated by
contractors using the repository of certified firms created under section
3 of this chapter or a similar repository maintained by a unit (as defined
in IC 4-4-32.2-9).
(h) The department shall adopt rules of ethics under IC 4-22-2 for
commission members other than commission members appointed
under subsection (a)(6) or (a)(7).
(i) The department shall furnish administrative support and staff as
is necessary for the effective operation of the commission.
(j) The commission shall advise the department on developing a
statement, to be included in all applications for and agreements
governing grants made with state funds, stating the importance of the
use of minority business enterprises, service disabled veterans'
business enterprises, and women's business enterprises in fulfilling
the purposes of the grant.
(b) The deputy commissioner shall do the following:
(1) Identify and certify minority,
disabled veterans' business enterprises for state projects.
(2) Establish a central certification file.
(3) Periodically update the certification status of each minority, or
women's, or service disabled veterans' business enterprise.
(4) Monitor the progress in achieving the goals established under
section 2(f)(8) and 2(f)(11) of this chapter.
(5) Require all state agencies, separate bodies corporate and
politic, and state educational institutions to report on planned and
actual participation of minority, and women's, and service
disabled veterans' business enterprises in contracts awarded by
state agencies. The commissioner may exclude from the reports
uncertified minority, service disabled veterans', and women's
business enterprises.
(6) Determine and define opportunities for minority, service
disabled veterans', and women's business participation
enterprises to participate in contracts awarded by all state
agencies, separate bodies corporate and politic, and state
educational institutions.
(7) Implement programs initiated by the commission under
section 2 of this chapter.
(8) Perform other duties as defined by the commission or by the
commissioner of the department.
(b) The department shall adopt rules under IC 4-22-2 to ensure that the goals set under section 2(f)(8) of this chapter for:
(1) minority business enterprises;
(2) service related disabled veterans' business enterprises; and
(3) women's business enterprises;
are met. Expenditures with business enterprises that qualify as
one (1) of the types of business enterprises, at the election made by the procurer of goods, services, or goods and services, but not both.
(b) Notwithstanding any other law, a certification of a business as a minority business enterprise, a service disabled veterans' business enterprise, or a women's business enterprise under this chapter satisfies any Indiana law providing for or requiring the certification of a business as a minority business enterprise, a service disabled veterans' business enterprise, or a women's business enterprise.
(1) personal financial information; or
(2) confidential business information;
submitted by an applicant for certification as a minority business enterprise, a service disabled veterans' business enterprise, or a women's business enterprise are confidential.
(b) As used in this section, "contract" refers to any of the following:
(1) A contract for the purchase of supplies by a state agency.
(2) A contract for the performance of services for a state agency.
(3) A public works contract (as defined in IC 4-13.6-1-14).
(4) A contract to perform professional services (as defined in IC 4-13.6-1-11) in connection with a public works contract.
(c) As used in this section, "contractor" refers to a person awarded a contract by a state agency.
(d) As used in this section, "offer" means a response to a solicitation. The term includes a bid, proposal, and quote.
(e) As used in this section, "solicitation" means the procedure by which a state agency invites persons to submit an offer to enter into a contract with the state agency. The term includes an invitation for bids, a request for proposals, and a request for quotes.
(f) Before beginning work on a contract, a contractor shall do the
following:
(1) Notify in writing each minority business enterprise, service
disabled veterans' business enterprise, and women's business
enterprise designated in the contractor's offer that the contractor
has been awarded the contract.
(2) Give copies of each notification to the state agency that
awarded the contract.
(g) If a contractor fails to comply with subsection (f), the awarding
state agency may consider the failure a breach of contract and do any
of the following:
(1) Cancel the contract.
(2) Collect from the contractor all funds paid to the contractor
under the contract.
(3) Exercise any of the state's rights set out in the contract.
(4) Use the failure as a basis for finding the contractor not
responsible when awarding other contracts.
