Bill Text: IN HB1121 | 2010 | Regular Session | Introduced
Bill Title: State contracting with disabled veterans.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-19 - Representative Barnes added as coauthor [HB1121 Detail]
Download: Indiana-2010-HB1121-Introduced.html
Citations Affected: IC 4-13-16.7; IC 4-13.6-6; IC 5-16-1; IC 5-22-15;
IC 8-23.
Synopsis: State contracting with disabled veterans. Provides a 3%
price preference for a service disabled veteran small business for
purposes of state public works contracts, state purchasing of goods and
services, and state highway contracts. Establishes the governor's
commission on service disabled veteran small business (commission).
Provides that the commission must establish programs and set annual
goals for the use of service disabled veteran small businesses in state
contracts. Creates the office of deputy commissioner for service
disabled veteran small business development within the department of
administration. Requires the department of administration to adopt
administrative rules to ensure that certain goals established by the
commission are met.
Effective: July 1, 2010.
January 5, 2010, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Chapter 16.7. Governor's Commission on Service Disabled Veteran Small Business
Sec. 1. As used in this chapter, "commission" refers to the governor's commission on service disabled veteran small business established by section 8 of this chapter.
Sec. 2. (a) As used in this chapter, "contract" means any contract awarded by a state agency for construction projects or the procurement of goods or services, including professional services.
(b) For purposes of this section, 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.
Sec. 3. As used in this chapter, "department" refers to the
Indiana department of administration established by IC 4-13-1-2.
Sec. 4. As used in this chapter, "deputy commissioner" refers to
the deputy commissioner for service disabled veteran small
business development appointed under section 10 of this chapter.
Sec. 5. As used in this chapter, "separate body corporate and
politic" refers to an entity established by the general assembly as
a body corporate and politic.
Sec. 6. As used in this chapter, "service disabled veteran small
business" means a small business concern owned and controlled by
a service disabled veteran (as defined in 15 U.S.C. 632(q)(2)), as in
effect on January 1, 2010.
Sec. 7. As used in this chapter, "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.
Sec. 8. (a) The governor's commission on service disabled
veteran small business is established. The commission consists of
the following members:
(1) The governor's designee, who shall serve as chairperson of
the commission.
(2) The director of the Indiana department of veterans' affairs
established by IC 10-17-1-2.
(3) The chairperson of the board of the Indiana economic
development corporation or the chairperson's designee.
(4) The commissioner of the department.
(5) Nine (9) individuals with demonstrated capabilities in
business and industry, especially in service disabled veteran
small businesses, appointed by the governor from the
following geographical areas of the state:
(A) Three (3) from the northern one-third (1/3) of Indiana.
(B) Three (3) from the central one-third (1/3) of Indiana.
(C) Three (3) from the southern one-third (1/3) of Indiana.
(6) Two (2) members of the house of representatives, who may
not be members of 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, who may not be members
of the same political party, appointed by the president pro
tempore of the senate to serve in a nonvoting, advisory
capacity.
Not more than six (6) of the ten (10) members appointed or
designated by the governor may be of the same political party.
Appointed members of the commission serve four (4) year terms.
A vacancy occurs if a legislative member leaves office for any
reason. Any vacancy in a position on the commission shall be filled
in the same manner as the position was originally filled under this
subsection.
(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 chairperson considers necessary.
Sec. 9. (a) The duties of the commission include, but are not
limited to, the following:
(1) Identify service disabled veteran small businesses in
Indiana.
(2) Assess the needs of service disabled veteran small
businesses.
(3) Initiate aggressive programs to assist service disabled
veteran small businesses in obtaining state contracts.
(4) Give special publicity to procurement, bidding, and
qualifying procedures.
(5) Include service disabled veteran small businesses on
solicitation mailing lists.
(6) Define the duties, goals, and objectives of the deputy
commissioner 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 2 of this chapter or any other law,
contracts of state educational institutions) to a service
disabled veteran small business.
(7) Establish annual goals for the use of service disabled
veteran small businesses that:
(A) are derived from a statistical analysis of utilization
study of state contracts (including, notwithstanding section
2 of this chapter or any other law, contracts of state
educational institutions); and
(B) shall be updated every five (5) years.
(8) Prepare a review of the commission and the various
affected departments of government to be submitted to the
governor and the legislative council (in an electronic format
under IC 5-14-6) on March 1 and October 1 of each year,
evaluating progress made in the areas described in this
subsection.
(9) Ensure that the statistical analysis required under
subdivision (7):
(A) is based on goals for the participation of service
disabled veteran small businesses that are consistent with
federal and state law;
(B) includes information on both contracts and
subcontracts (including, notwithstanding section 2 of this
chapter or any other law, contracts and subcontracts of
state educational institutions); and
(C) uses data on the combined capacity of service disabled
veteran small businesses in Indiana and not only regional
data.
(b) The department shall adopt rules of ethics under IC 4-22-2
for commission members other than commission members
appointed under section 8(a)(6) and 8(a)(7) of this chapter.
(c) The department shall furnish administrative support and
staff as is necessary for the effective operation of the commission.
Sec. 10. (a) The office of deputy commissioner for service
disabled veteran small business development is created in the
department. Upon consultation with the commission, the
commissioner of the department, with the approval of the
governor, shall appoint an individual who possesses demonstrated
capability in business or industry, especially in service disabled
veteran small businesses, to serve as deputy commissioner to work
with the commission in the implementation of this chapter.
(b) The deputy commissioner shall do the following:
(1) Identify and certify service disabled veteran small
businesses for state projects.
(2) Establish a central certification file.
(3) Periodically update the certification status of each service
disabled veteran small business.
(4) Monitor progress in achieving the goals established under
section 9(a)(7) 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 service disabled veteran small
businesses in contracts awarded by state agencies. The
commissioner may exclude from the reports uncertified
service disabled veteran small businesses.
(6) Determine and define opportunities for service disabled
veteran small business participation 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 9 of this chapter.
(8) Perform other duties as defined by the commission or by
the commissioner of the department.
Sec. 11. (a) Before January 1 of even-numbered years, the
department shall determine whether, during the two (2) year
period ending the previous July 1, the goals set under section
9(a)(7) of this chapter have been met.
(b) The department shall adopt rules under IC 4-22-2 to ensure
that the goals set under section 9(a)(7) of this chapter are met.
Sec. 12. The department may adopt rules under IC 4-22-2 to
implement this chapter.
Sec. 13. (a) Notwithstanding any other law, the standards
developed under this chapter apply to the determination and
certification of a business as a service disabled veteran small
business under Indiana law.
(b) Notwithstanding any other law, a certification of a business
as a service disabled veteran small business under this chapter
satisfies any Indiana law providing for or requiring the
certification of a business as a service disabled veteran small
business.
Sec. 14. For purposes of IC 5-14-3, materials containing:
(1) personal financial information; or
(2) confidential business information;
submitted by an applicant for certification as a service disabled
veteran small business are confidential.
Sec. 15. (a) This section applies to a contractor whose offer
designates a service disabled veteran small business to furnish any
supplies or perform any work under the contract awarded to the
contractor.
(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 service disabled veteran small
business 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.
Sec. 16. (a) The department shall adopt rules under IC 4-22-2 to establish procedures to resolve grievances arising under this chapter.
(b) The rules may include informal procedures to resolve grievances.
(c) The procedures established under the rules must provide for final resolution of grievances before either of the following:
(1) A panel of three (3) commission members. A panel formed under this subdivision must consist of at least two (2) commission members described in section 8(a)(5) of this chapter.
(2) The commission. However, if the commission acts to resolve a grievance under this subdivision, members of the commission appointed under section 8(a)(6) and 8(a)(7) of this chapter may not participate in the proceeding.
(d) The final resolution of grievances arising under this chapter is subject to IC 4-21.5.
(b) As used in this section, "service disabled veteran" has the meaning set forth in 15 U.S.C. 632(q)(1), as in effect on January 1, 2010.
(c) As used in this section, "service disabled veteran small business" means a small business concern owned and controlled by a service disabled veteran (as defined in 15 U.S.C. 632(q)(2)), as in effect on January 1, 2010.
(d) There is a price preference of three percent (3%) for a
contract entered into under this chapter with a business owned by
a service disabled veteran.
(e) The division shall compute a preference under this section in
the same manner in which a preference is computed under
IC 5-22-15.
(f) The department may adopt rules to carry out this section.
(b) Notwithstanding subsection (a), whenever the cost of any public work is estimated to be less than twenty-five thousand dollars ($25,000), the officer or agent acting on behalf of the state or commission having authority to employ workmen and own, rent, or lease equipment may purchase materials in the manner provided by law and perform the work by means of its own workmen and owned or leased equipment without awarding a construction contract for the work.
(b) As used in this section, "service disabled veteran" has the meaning set forth in 15 U.S.C. 632(q)(1), as in effect on January 1, 2010.
(c) As used in this section, "service disabled veteran small business" means a small business concern owned and controlled by a service disabled veteran (as defined in 15 U.S.C. 632(q)(2)), as in effect on January 1, 2010.
(d) A board, commission, trustee, officer, or agent referred to in section 1.2(a) of this chapter shall grant a three percent (3%)
preference to a business owned by a service disabled veteran. The
board, commission, trustee, officer, or agent shall compute a
preference under this section in the same manner in which a
preference is computed under IC 5-22-15.
(1) An Indiana business preference under rules adopted under section 20 of this chapter or IC 4-13.6-6-2.5.
(2) A preference for supplies as provided by sections 16, 18, 19, and 24 of this chapter.
(3) An Indiana small business preference as provided by section 23 of this chapter.
(4) A service disabled veteran's preference as provided by section 26 of this chapter.
(b) An offeror may not claim more than one (1) preference as provided by sections 16, 18, 19, and 24 of this chapter for a given supply item.
(c) This section does not:
(1) apply to; or
(2) limit;
action of the Indiana department of administration under rules adopted under section 21 of this chapter.
(b) As used in this section, "service disabled veteran" has the meaning set forth in 15 U.S.C. 632(q)(1), as in effect on January 1, 2010.
(c) As used in this section, "service disabled veteran small business" means a small business concern owned and controlled by a service disabled veteran (as defined in 15 U.S.C. 632(q)(2)), as in effect on January 1, 2010.
(d) There is a price preference of three percent (3%) for a business owned by a service disabled veteran that submits an offer for a purchase under this chapter. The department shall compute a preference under this section in the same manner in which other price preferences are computed under this chapter.
