| 1 | A bill to be entitled |
| 2 | An act relating to service-disabled veteran business |
| 3 | enterprises; creating the Florida Service-Disabled Veteran |
| 4 | Business Enterprise Opportunity Act; providing legislative |
| 5 | intent; providing definitions; providing a selection |
| 6 | preference in state contracting for certified service- |
| 7 | disabled veteran business enterprises; providing a |
| 8 | certification procedure to be established by the |
| 9 | Department of Management Services and the Department of |
| 10 | Veterans' Affairs and reviewed biennially and updated as |
| 11 | necessary; providing requirements for application for, |
| 12 | renewal of, and revocation of certification; providing |
| 13 | duties of the departments; providing for data reporting by |
| 14 | the Florida Small Business Development Center; authorizing |
| 15 | the departments to adopt rules; amending s. 288.705, F.S.; |
| 16 | requiring the center to report the percentage of service- |
| 17 | disabled veteran business enterprises using the statewide |
| 18 | contracts register; providing an effective date. |
| 19 |
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| 20 | Be It Enacted by the Legislature of the State of Florida: |
| 21 |
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| 22 | Section 1. Florida Service-Disabled Veteran Business |
| 23 | Enterprise Opportunity Act.-- |
| 24 | (1) SHORT TITLE.--This section may be cited as the |
| 25 | "Florida Service-Disabled Veteran Business Enterprise |
| 26 | Opportunity Act." |
| 27 | (2) INTENT.--It is the intent of the Legislature to |
| 28 | rectify the economic disadvantage of service-disabled veterans, |
| 29 | who are statistically the least likely to be self-employed when |
| 30 | compared to the veteran population as a whole and who have made |
| 31 | extraordinary sacrifices on behalf of the nation, the state, and |
| 32 | the public, by providing opportunities for service-disabled |
| 33 | veteran business enterprises as set forth in this section. |
| 34 | (3) DEFINITIONS.--For the purpose of this section, the |
| 35 | term: |
| 36 | (a) "Certified service-disabled veteran business |
| 37 | enterprise" means a business that has been certified by the |
| 38 | Department of Management Services to be a service-disabled |
| 39 | veteran business enterprise as defined in paragraph (c). |
| 40 | (b) "Service-disabled veteran" means a veteran who is a |
| 41 | permanent Florida resident with a service-connected disability |
| 42 | of 10 percent or greater as determined by the United States |
| 43 | Department of Veterans Affairs or who has been terminated from |
| 44 | military service by reason of disability by the United States |
| 45 | Department of Defense. |
| 46 | (c) "Service-disabled veteran business enterprise" means |
| 47 | an independently owned and operated business that: |
| 48 | 1. Employs 200 or fewer permanent full-time employees; |
| 49 | 2. Together with its affiliates has a net worth of $5 |
| 50 | million or less or, if a sole proprietorship, has a net worth of |
| 51 | $5 million or less including both personal and business |
| 52 | investments; |
| 53 | 3. Is organized to engage in commercial transactions; |
| 54 | 4. Is domiciled in this state; |
| 55 | 5. Is at least 51 percent owned by one or more service- |
| 56 | disabled veterans; and |
| 57 | 6. The management and daily business operations of which |
| 58 | are controlled by one or more service-disabled veterans or, for |
| 59 | a service-disabled veteran with a permanent and total |
| 60 | disability, by the spouse or permanent caregiver of the veteran. |
| 61 | (4) VENDOR PREFERENCE.-- |
| 62 | (a) A state agency, when considering two or more bids, |
| 63 | proposals, or replies for the procurement of commodities or |
| 64 | contractual services, at least one of which is from a certified |
| 65 | service-disabled veteran business enterprise, that are equal |
| 66 | with respect to all relevant considerations, including price, |
| 67 | quality, and service, shall award such procurement or contract |
| 68 | to the certified service-disabled veteran business enterprise. |
| 69 | (b) Notwithstanding s. 287.057(12), Florida Statutes, if a |
| 70 | service-disabled veteran business enterprise entitled to the |
| 71 | vendor preference under this section and one or more businesses |
| 72 | entitled to this preference or another vendor preference |
| 73 | provided by law submit bids, proposals, or replies for |
| 74 | procurement of commodities or contractual services that are |
| 75 | equal with respect to all relevant considerations, including |
| 76 | price, quality, and service, then the state agency shall award |
| 77 | the procurement or contract to the business having the smallest |
| 78 | net worth. |
| 79 | (c) Political subdivisions of the state are encouraged to |
| 80 | offer a similar consideration to businesses certified under this |
| 81 | section. |
| 82 | (5) CERTIFICATION PROCEDURE.-- |
| 83 | (a) The application for certification as a service- |
| 84 | disabled veteran business enterprise must, at a minimum, |
| 85 | include: |
| 86 | 1. The name of the business enterprise applying for |
| 87 | certification and the name of the service-disabled veteran |
| 88 | submitting the application on behalf of the business enterprise. |
| 89 | 2. The names of all owners of the business enterprise, |
| 90 | including owners who are service-disabled veterans and owners |
| 91 | who are not service-disabled veterans, and the percentage of |
| 92 | ownership interest held by each owner. |
| 93 | 3. The name of all persons involved in both the management |
| 94 | and daily operations of the business, including the spouse or |
| 95 | permanent caregiver of a veteran with a permanent and total |
| 96 | disability. |
| 97 | 4. The service-connected disability rating of all persons |
| 98 | listed under subparagraphs 1., 2., and 3., as applicable, with |
| 99 | supporting documentation from the United States Department of |
| 100 | Veterans Affairs or the United States Department of Defense. |
| 101 | 5. The number of permanent full-time employees. |
| 102 | 6. The location of the business headquarters. |
| 103 | 7. The total net worth of the business enterprise and its |
| 104 | affiliates. In the case of a sole proprietorship, the net worth |
| 105 | includes personal and business investments. |
| 106 | (b) To maintain certification, a service-disabled veteran |
| 107 | business enterprise shall renew its certification biennially. |
| 108 | (c) The provisions of chapter 120 relating to application, |
| 109 | denial, and revocation procedures shall apply to certifications |
| 110 | under this section. |
| 111 | (d) A certified service-disabled veteran business |
| 112 | enterprise must notify the Department of Management Services |
| 113 | within 30 business days after any event that may significantly |
| 114 | affect the certification of the business, including, but not |
| 115 | limited to, a change in ownership or change in management and |
| 116 | daily business operations. |
| 117 | (e) The certification of a service-disabled veteran |
| 118 | business enterprise shall be revoked for 12 months if the |
| 119 | Department of Management Services determines that the business |
| 120 | enterprise violated paragraph (d). An owner of a certified |
| 121 | service-disabled veteran business enterprise whose certification |
| 122 | is revoked is not permitted to reapply for certification under |
| 123 | this section as an owner of any business enterprise during the |
| 124 | 12-month revocation period. |
| 125 | 1. During the 12-month revocation period, a service- |
| 126 | disabled veteran business enterprise whose certification has |
| 127 | been revoked may bid on state contracts but is not eligible for |
| 128 | any preference available under this section. |
| 129 | 2. A service-disabled veteran business enterprise whose |
| 130 | certification has been revoked may apply for certification at |
| 131 | the conclusion of the 12-month revocation period by complying |
| 132 | with requirements applicable to initial certifications. |
| 133 | (6) DUTIES OF THE DEPARTMENT OF VETERANS' AFFAIRS.--The |
| 134 | department shall: |
| 135 | (a) Assist the Department of Management Services in |
| 136 | establishing a certification procedure, which shall be reviewed |
| 137 | biennially and updated as necessary. |
| 138 | (b) Identify eligible service-disabled veteran business |
| 139 | enterprises by any electronic means, including electronic mail |
| 140 | or Internet website, or by any other reasonable means. |
| 141 | (c) Encourage and assist eligible service-disabled veteran |
| 142 | business enterprises to apply for certification under this |
| 143 | section. |
| 144 | (d) Provide information regarding services that are |
| 145 | available from the Office of Veterans' Business Outreach of the |
| 146 | Florida Small Business Development Center to service-disabled |
| 147 | veteran business enterprises. |
| 148 | (7) DUTIES OF THE DEPARTMENT OF MANAGEMENT SERVICES.--The |
| 149 | department shall: |
| 150 | (a) With assistance from the Department of Veterans' |
| 151 | Affairs, establish a certification procedure, which shall be |
| 152 | reviewed biennially and updated as necessary. |
| 153 | (b) Grant, deny, or revoke the certification of a service- |
| 154 | disabled veteran business enterprise under this section. |
| 155 | (c) Maintain an electronic directory of certified service- |
| 156 | disabled veteran business enterprises for use by the state, |
| 157 | political subdivisions of the state, and the public. |
| 158 | (8) REPORT.--The Small Business Development Center shall |
| 159 | include in its report required by s. 288.705, Florida Statutes, |
| 160 | the percentage of certified service-disabled veteran business |
| 161 | enterprises using the statewide contracts register. |
| 162 | (9) RULES.--The Department of Veterans' Affairs and the |
| 163 | Department of Management Services, as appropriate, may adopt |
| 164 | rules as necessary to administer this section. |
| 165 | Section 2. Section 288.705, Florida Statutes, is amended |
| 166 | to read: |
| 167 | 288.705 Statewide contracts register.--All state agencies |
| 168 | shall in a timely manner provide the Florida Small Business |
| 169 | Development Center Procurement System with all formal |
| 170 | solicitations for contractual services, supplies, and |
| 171 | commodities. The Small Business Development Center shall |
| 172 | coordinate with Minority Business Development Centers to compile |
| 173 | and distribute this such information to Florida small and |
| 174 | minority businesses requesting such service for the period of |
| 175 | time necessary to familiarize the business with the market |
| 176 | represented by state agencies. On or before February 1 of each |
| 177 | year, the Small Business Development Center shall report to the |
| 178 | Agency for Workforce Innovation Department of Labor and |
| 179 | Employment Security on the use utilization of the statewide |
| 180 | contracts register. The Such report shall include, but not be |
| 181 | limited to, information relating to: |
| 182 | (1) The total number of solicitations received from state |
| 183 | agencies during the calendar year. |
| 184 | (2) The number of solicitations received from each state |
| 185 | agency during the calendar year. |
| 186 | (3) The method of distributing solicitation information to |
| 187 | those businesses requesting such service. |
| 188 | (4) The total number of businesses using the service. |
| 189 | (5) The percentage of businesses using the service which |
| 190 | are owned and controlled by minorities. |
| 191 | (6) The percentage of service-disabled veteran business |
| 192 | enterprises using the service. |
| 193 | Section 3. This act shall take effect November 11, 2008. |