| 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 and updated biennially; |
| 11 | providing requirements for application for, renewal of, |
| 12 | and revocation of certification; providing for appeal of |
| 13 | denial or revocation; providing duties of the departments; |
| 14 | providing for data reporting by the Small Business |
| 15 | Development Center; authorizing the departments to adopt |
| 16 | rules; amending s. 288.705, F.S.; requiring the center to |
| 17 | report the percentage of businesses using the statewide |
| 18 | contracts registry that are certified service-disabled |
| 19 | veteran business enterprises; amending s. 288.703, F.S.; |
| 20 | requiring the state rules ombudsman to review state rules |
| 21 | that adversely affect service-disabled veteran business |
| 22 | enterprises; providing an effective date. |
| 23 |
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| 24 | Be It Enacted by the Legislature of the State of Florida: |
| 25 |
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| 26 | Section 1. Florida Service-Disabled Veteran Business |
| 27 | Enterprise Opportunity Act.-- |
| 28 | (1) TITLE.--This section may be cited as the "Florida |
| 29 | Service-Disabled Veteran Business Enterprise Opportunity Act." |
| 30 | (2) INTENT.--It is the intent of the Legislature to |
| 31 | rectify the economic disadvantage of service-disabled veterans, |
| 32 | who are statistically the least likely to be self-employed when |
| 33 | compared to the veteran population as a whole and who have made |
| 34 | extraordinary sacrifices on behalf of the nation, the state, and |
| 35 | the public, by providing opportunities for service-disabled |
| 36 | veteran business enterprises as set forth in this section. |
| 37 | (3) DEFINITIONS.--For the purpose of this section, the |
| 38 | term: |
| 39 | (a) "Certified service-disabled veteran business |
| 40 | enterprise" means a business that has been certified by the |
| 41 | state to be a service-disabled veteran business enterprise as |
| 42 | defined in paragraph (c). |
| 43 | (b) "Service-disabled veteran" means a veteran who has a |
| 44 | service-connected disability of 10 percent or greater as |
| 45 | determined by the United States Department of Veterans Affairs |
| 46 | or who has been terminated from military service by reason of |
| 47 | disability by the United States Department of Defense. |
| 48 | (c) "Service-disabled veteran business enterprise" means |
| 49 | an independently owned and operated business that: |
| 50 | 1. Employs 200 or fewer permanent full-time employees; |
| 51 | 2. Together with its affiliates has a net worth of $5 |
| 52 | million or less and, if a sole proprietorship, the net worth |
| 53 | includes both personal and business investments; |
| 54 | 3. Is organized to engage in commercial transactions; |
| 55 | 4. Is domiciled in this state; |
| 56 | 5. Is at least 51 percent owned by one or more service- |
| 57 | disabled veterans; and |
| 58 | 6. The management and daily business operations of which |
| 59 | are controlled by one or more service-disabled veterans or, for |
| 60 | a service-disabled veteran with a permanent and total |
| 61 | disability, by the spouse or permanent caregiver of the veteran. |
| 62 | (4) VENDOR PREFERENCE.-- |
| 63 | (a) A state agency, when considering two or more bids, |
| 64 | proposals, or replies for the procurement of commodities or |
| 65 | contractual services, at least one of which is from a certified |
| 66 | service-disabled veteran business enterprise, and that are equal |
| 67 | with respect to all relevant considerations including price, |
| 68 | quality, and service, shall award such procurement or contract |
| 69 | to the certified service-disabled veteran business enterprise. |
| 70 | (b) Notwithstanding s. 287.057(12), Florida Statutes, if a |
| 71 | business that is entitled to the vendor preference under |
| 72 | paragraph (a) and one or more businesses entitled to this |
| 73 | preference or another vendor preference are equal with respect |
| 74 | to all relevant considerations including price, quality, and |
| 75 | service, the business having the smallest net worth or average |
| 76 | annual income shall receive the award. |
| 77 | (c) Political subdivisions of the state are encouraged to |
| 78 | offer a similar consideration to businesses certified under this |
| 79 | section. |
| 80 | (5) CERTIFICATION PROCEDURE.-- |
| 81 | (a) The application for certification as a service- |
| 82 | disabled veteran business enterprise must, at a minimum, |
| 83 | include: |
| 84 | 1. The name of the applicant, who must be the service- |
| 85 | disabled veteran business owner, or one of the owners for a |
| 86 | business that has more than one service-disabled veteran owner. |
| 87 | 2. The name of all other owners of the business, including |
| 88 | service-related business owners and nonservice-related owners. |
| 89 | 3. The name of all persons involved in the management and |
| 90 | daily operations of the business, including the spouse or |
| 91 | permanent caregiver of a veteran with a permanent and total |
| 92 | disability. |
| 93 | 4. The service-connected disability of all persons listed |
| 94 | under subparagraphs 1., 2., and 3., as applicable, with |
| 95 | supporting documentation from the United States Department of |
| 96 | Veterans Affairs or the United States Department of Defense. |
| 97 | 5. The number of permanent full-time employees. |
| 98 | 6. The location of the business headquarters. |
| 99 | 7. The total net worth, including affiliates, and, in the |
| 100 | case of a sole proprietor, the total net worth of any personal |
| 101 | or business investments in the business. |
| 102 | (b) To maintain certification, a certified business must |
| 103 | reapply and renew its certification biennially. |
| 104 | (c) The Department of Management Services shall render a |
| 105 | determination on an application for certification and notify the |
| 106 | applying business within 90 days. |
| 107 | (d) A certified service-disabled veteran business |
| 108 | enterprise must report within 30 days to the Department of |
| 109 | Management Services any event that may significantly affect the |
| 110 | certification of the business, including, but not limited to, a |
| 111 | change in ownership or change in management and daily business |
| 112 | operations. |
| 113 | (e) If a certified service-disabled veteran business |
| 114 | enterprise is determined by the Department of Management |
| 115 | Services to have violated paragraph (d), the business shall have |
| 116 | its certification revoked and the business may not reapply for |
| 117 | 12 months. No other service-disabled veteran named on the |
| 118 | certification application who may be eligible to apply for |
| 119 | certification for the business whose certification has been |
| 120 | revoked or for any other business may apply for certification |
| 121 | under this section during the 12-month revocation period. |
| 122 | 1.. During the 12-month revocation period, the business |
| 123 | may continue to bid on state contracts but is not eligible for |
| 124 | any preferences available under this section until it is |
| 125 | recertified. |
| 126 | 2. A business that has its certification revoked may |
| 127 | reapply for certification at the conclusion of the 12-month |
| 128 | period in order to regain the preferences it may be due under |
| 129 | this section. |
| 130 | (f) A business that has its certification denied or |
| 131 | revoked may appeal to the Department of Management Services |
| 132 | within 30 days after notification of the denial or revocation. |
| 133 | The Department of Management Services has up to 90 days to |
| 134 | review the circumstances that led to the denial or revocation |
| 135 | and to notify the appealing business of its determination. A |
| 136 | business appealing under this paragraph does not waive its |
| 137 | rights under chapter 120, Florida Statutes. |
| 138 | (6) DUTIES OF THE DEPARTMENT OF VETERANS' AFFAIRS.--The |
| 139 | department shall: |
| 140 | (a) Assist the Department of Management Services in |
| 141 | establishing a certification application procedure, which shall |
| 142 | be reviewed and updated biennially. |
| 143 | (b) Identify eligible service-disabled veteran business |
| 144 | enterprises by any electronic means, including electronic mail, |
| 145 | Internet website, or, subject to an appropriation, by any other |
| 146 | reasonable means. |
| 147 | (c) Encourage and assist eligible service-disabled veteran |
| 148 | business enterprises to apply for certification under this |
| 149 | section. |
| 150 | (d) Provide information regarding services that are |
| 151 | available from the Office of Veterans' Business Outreach of the |
| 152 | Florida Small Business Development Center to service-disabled |
| 153 | veteran business enterprises. |
| 154 | (e) Subject to an appropriation, contract with a private |
| 155 | entity to carry out any of the duties specified under this |
| 156 | subsection. |
| 157 | (7) DUTIES OF THE DEPARTMENT OF MANAGEMENT SERVICES.--The |
| 158 | department shall: |
| 159 | (a) With assistance from the Department of Veterans' |
| 160 | Affairs, establish a certification application procedure, which |
| 161 | shall be reviewed and updated biennially. |
| 162 | (b) Grant or deny certification of a service-disabled |
| 163 | veteran business enterprise applying under this section. |
| 164 | (c) Maintain an electronic directory of certified service- |
| 165 | disabled veteran business enterprises for use by the state, |
| 166 | political subdivisions of the state, and the public. |
| 167 | (8) REPORT.--The Florida Small Business Development Center |
| 168 | shall include in its report under s. 288.705, Florida Statutes, |
| 169 | the percentage of businesses using the statewide contracts |
| 170 | register which are certified service-disabled veteran business |
| 171 | enterprises. |
| 172 | (9) RULES.--The Department of Veterans' Affairs and the |
| 173 | Department of Management Services, as appropriate, may adopt |
| 174 | rules as necessary to administer this section. |
| 175 | Section 2. Section 288.705, Florida Statutes, is amended |
| 176 | to read: |
| 177 | 288.705 Statewide contracts register.--All state agencies |
| 178 | shall in a timely manner provide the Florida Small Business |
| 179 | Development Center Procurement System with all formal |
| 180 | solicitations for contractual services, supplies, and |
| 181 | commodities. The Small Business Development Center shall |
| 182 | coordinate with Minority Business Development Centers to compile |
| 183 | and distribute this such information to Florida small and |
| 184 | minority businesses requesting such service for the period of |
| 185 | time necessary to familiarize the business with the market |
| 186 | represented by state agencies. On or before February 1 of each |
| 187 | year, the Small Business Development Center shall report to the |
| 188 | Agency for Workforce Innovation Department of Labor and |
| 189 | Employment Security on the use utilization of the statewide |
| 190 | contracts register. The Such report shall include, but not be |
| 191 | limited to, information relating to: |
| 192 | (1) The total number of solicitations received from state |
| 193 | agencies during the calendar year. |
| 194 | (2) The number of solicitations received from each state |
| 195 | agency during the calendar year. |
| 196 | (3) The method of distributing solicitation information to |
| 197 | those businesses requesting such service. |
| 198 | (4) The total number of businesses using the service. |
| 199 | (5) The percentage of businesses using the service which |
| 200 | are owned and controlled by minorities. |
| 201 | (6) The percentage of service-disabled veteran business |
| 202 | enterprises using the service. |
| 203 | Section 3. Subsection (2) of section 288.7015, Florida |
| 204 | Statutes, is amended to read: |
| 205 | 288.7015 Appointment of rules ombudsman; duties.--The |
| 206 | Governor shall appoint a rules ombudsman, as defined in s. |
| 207 | 288.703, in the Executive Office of the Governor, for |
| 208 | considering the impact of agency rules on the state's citizens |
| 209 | and businesses. In carrying out duties as provided by law, the |
| 210 | ombudsman shall consult with Enterprise Florida, Inc., at which |
| 211 | point the office may recommend to improve the regulatory |
| 212 | environment of this state. The duties of the rules ombudsman are |
| 213 | to: |
| 214 | (2) Review state agency rules that adversely or |
| 215 | disproportionately affect impact businesses, particularly those |
| 216 | relating to small and minority businesses and to service- |
| 217 | disabled veteran business enterprises. |
| 218 | Section 4. This act shall take effect November 11, 2008. |