Bill Text: VA HB381 | 2024 | Regular Session | Prefiled
Bill Title: Virginia Public Procurement Act; participation by veteran-owned small businesses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2024-02-13 - Left in General Laws [HB381 Detail]
Download: Virginia-2024-HB381-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §§2.2-4310, 2.2-4310.2, and 2.2-4310.3 of the Code of Virginia are amended and reenacted as follows:
§2.2-4310. Discrimination prohibited; participation of small, women-owned, minority-owned, and service disabled veteran-owned businesses and employment services organizations.
A. In the solicitation or awarding of contracts, no public body shall discriminate against a bidder or offeror because of race, religion, color, sex, sexual orientation, gender identity, national origin, age, disability, status as a service disabled veteran, or any other basis prohibited by state law relating to discrimination in employment. Whenever solicitations are made, each public body shall include businesses selected from a list made available by the Department of Small Business and Supplier Diversity, which list shall include all companies and organizations certified by the Department.
B. All public bodies shall establish programs consistent with
this chapter to facilitate the participation of small businesses, businesses
owned by women, minorities, and veterans, service disabled
veterans, and employment services organizations in procurement transactions.
The programs established shall be in writing and shall comply with the
provisions of any enhancement or remedial measures authorized by the Governor
pursuant to subsection C or, where applicable, by the chief executive of a
local governing body pursuant to §15.2-965.1, and shall include specific plans
to achieve any goals established therein. State agencies shall submit annual
progress reports on (i) small, women-owned, and minority-owned business
procurement, (ii) veteran-owned and
service disabled veteran-owned business procurement, and (iii) employment
services organization procurement to the Department of Small Business and
Supplier Diversity in a form specified by the Department of Small Business and
Supplier Diversity. Such annual
progress reports shall include a breakdown of any overlap by a
business that qualified for more than one category. All
state agencies shall cooperate with the Department of Small Business and
Supplier Diversity's annual review of their programs pursuant to §2.2-1605 and
shall update such programs to incorporate any feedback and suggestions for
improvement. Contracts and subcontracts awarded to employment services
organizations and service disabled veteran-owned businesses shall be credited
toward the small business, women-owned, and minority-owned business contracting
and subcontracting goals of state agencies and contractors. The Department of
Small Business and Supplier Diversity shall make information on service
disabled veteran-owned procurement available to the Department of Veterans
Services upon request.
C. Whenever there exists (i) a rational basis for small business or employment services organization enhancement or (ii) a persuasive analysis that documents a statistically significant disparity between the availability and utilization of women-owned and minority-owned businesses, the Governor is authorized and encouraged to require state agencies to implement appropriate enhancement or remedial measures consistent with prevailing law. Any enhancement or remedial measure authorized by the Governor pursuant to this subsection for state public bodies may allow for small businesses certified by the Department of Small Business and Supplier Diversity or a subcategory of small businesses established as a part of the enhancement program to have a price preference over noncertified businesses competing for the same contract award on designated procurements, provided that the bid of the certified small business or the business in such subcategory of small businesses established as a part of an enhancement program does not exceed the low bid by more than five percent.
D. In awarding a contract for services to a small, women-owned, or minority-owned business that is certified in accordance with § 2.2-1606, or to a business identified by a public body as a service disabled veteran-owned business where the award is being made pursuant to an enhancement or remedial program as provided in subsection C, the public body shall include in every such contract of more than $10,000 the following:
"If the contractor intends to subcontract work as part of its performance under this contract, the contractor shall include in the proposal a plan to subcontract to small, women-owned, minority-owned, and service disabled veteran-owned businesses."
E. In the solicitation or awarding of contracts, no state agency, department, or institution shall discriminate against a bidder or offeror because the bidder or offeror employs ex-offenders unless the state agency, department, or institution has made a written determination that employing ex-offenders on the specific contract is not in its best interest.
F. As used in this section:
"Employment services organization" means an organization that provides community-based employment services to individuals with disabilities that is an approved Commission on Accreditation of Rehabilitation Facilities (CARF) accredited vendor of the Department for Aging and Rehabilitative Services.
"Minority individual" means an individual who is a citizen of the United States or a legal resident alien and who satisfies one or more of the following definitions:
1. "African American" means a person having origins in any of the original peoples of Africa and who is regarded as such by the community of which this person claims to be a part.
2. "Asian American" means a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands, including but not limited to Japan, China, Vietnam, Samoa, Laos, Cambodia, Taiwan, Northern Mariana Islands, the Philippines, a U.S. territory of the Pacific, India, Pakistan, Bangladesh, or Sri Lanka and who is regarded as such by the community of which this person claims to be a part.
3. "Hispanic American" means a person having origins in any of the Spanish-speaking peoples of Mexico, South or Central America, or the Caribbean Islands or other Spanish or Portuguese cultures and who is regarded as such by the community of which this person claims to be a part.
4. "Native American" means a person having origins in any of the original peoples of North America and who is regarded as such by the community of which this person claims to be a part or who is recognized by a tribal organization.
"Minority-owned business" means a business that is at least 51 percent owned by one or more minority individuals who are U.S. citizens or legal resident aliens, or in the case of a corporation, partnership, or limited liability company or other entity, at least 51 percent of the equity ownership interest in the corporation, partnership, or limited liability company or other entity is owned by one or more minority individuals who are U.S. citizens or legal resident aliens, and both the management and daily business operations are controlled by one or more minority individuals, or any historically black college or university as defined in §2.2-1604, regardless of the percentage ownership by minority individuals or, in the case of a corporation, partnership, or limited liability company or other entity, the equity ownership interest in the corporation, partnership, or limited liability company or other entity.
"Service disabled veteran" means a veteran who (i) served on active duty in the United States military ground, naval, or air service, (ii) was discharged or released under conditions other than dishonorable, and (iii) has a service-connected disability rating fixed by the United States Department of Veterans Affairs.
"Service disabled veteran business" means a business that is at least 51 percent owned by one or more service disabled veterans or, in the case of a corporation, partnership, or limited liability company or other entity, at least 51 percent of the equity ownership interest in the corporation, partnership, or limited liability company or other entity is owned by one or more individuals who are service disabled veterans and both the management and daily business operations are controlled by one or more individuals who are service disabled veterans.
"Small business" means a business, independently owned and controlled by one or more individuals, or in the case of a cooperative association organized pursuant to Chapter 3 (§13.1-301 et seq.) of Title 13.1 as a nonstock corporation, controlled by one or more members, who are U.S. citizens or legal resident aliens, and together with affiliates, has 250 or fewer employees, or annual gross receipts of $10 million or less averaged over the previous three years. One or more of the individual owners or members shall control both the management and daily business operations of the small business.
"State agency" means any authority, board, department, instrumentality, institution, agency, or other unit of state government. "State agency" shall not include any county, city, or town.
"Women-owned business" means a business that is at least 51 percent owned by one or more women who are U.S. citizens or legal resident aliens, or in the case of a corporation, partnership, or limited liability company or other entity, at least 51 percent of the equity ownership interest is owned by one or more women who are U.S. citizens or legal resident aliens, and both the management and daily business operations are controlled by one or more women.
§2.2-4310.2. Executive branch agency's goals for participation by small businesses; requirements.
Any executive
branch agency's public body's
goals under §2.2-4310 for participation by small businesses shall include
within the goals a minimum of three five percent participation by veteran-owned and service
disabled veteran-owned businesses as defined in §§2.2-2000.1 and 2.2-4310 when
contracting for goods and services.
As used in this
section, "executive branch agency" means the same as that term is
defined in §2.2-2006.
§2.2-4310.3. Fiscal data pertaining to certain enhancement or remedial measures.
A. The Department of General Services shall make available a dashboard of purchase order reports from the Commonwealth's statewide electronic procurement system known as eVA. The dashboard shall include aggregated data showing (i) current fiscal year purchase orders, (ii) purchase orders from the previous fiscal year, and (iii) other relevant data derived from any enhancement or remedial measure implemented by the Governor pursuant to subsection C of §2.2-4310.
B. The Department of General Services shall add a category for veteran-owned and service disabled veteran-owned small businesses on the eVA portal that is conspicuous to the general public to easily display and search set-aside opportunities for such businesses.
