House File 463 - Introduced HOUSE FILE 463 BY HALL A BILL FOR An Act related to certain veteran-owned businesses by 1 establishing certain state procurement goals and preferences 2 in government contracting. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2170YH (4) 86 aw/sc

H.F. 463 Section 1. Section 15.102, subsection 10, paragraph a, 1 unnumbered paragraph 1, Code 2015, is amended to read as 2 follows: 3 “Targeted small business” means a small business which is 4 fifty-one percent or more owned, operated, and actively managed 5 by one or more women, minority persons, service-disabled 6 veterans, or persons with a disability provided the business 7 meets all of the following requirements: 8 Sec. 2. Section 15.102, subsection 10, paragraph b, Code 9 2015, is amended by adding the following new subparagraph: 10 NEW SUBPARAGRAPH . (4) “Service-disabled veteran” means the 11 same as defined in 15 U.S.C. §632. 12 Sec. 3. Section 73.14, subsection 1, Code 2015, is amended 13 to read as follows: 14 1. The state, board of regents institutions, counties, 15 townships, school districts, community colleges, cities, 16 and other public entities, and every person acting as 17 contracting agent for any such entity, shall, when issuing 18 bonds or other obligations, make a good-faith effort to 19 utilize minority-owned , service-disabled veteran-owned, 20 and female-owned businesses for attorneys, accountants, 21 financial advisors, banks, underwriters, insurers, and other 22 occupations necessary to carry out the issuance of bonds or 23 other obligations by the entity. 24 Sec. 4. Section 73.14, subsection 2, Code 2015, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . c. “Service-disabled veteran-owned business” 27 means a business that is fifty-one percent or more owned, 28 operated, and actively managed by one or more service-disabled 29 veterans, as defined in 15 U.S.C. §632. 30 Sec. 5. Section 73.16, subsection 2, paragraph d, Code 2015, 31 is amended to read as follows: 32 d. Of the total value of anticipated procurements of 33 goods and services under this subsection , an additional 34 goal shall be established to procure at least forty percent 35 -1- LSB 2170YH (4) 86 aw/sc 1/ 2

H.F. 463 from minority-owned businesses , and forty percent from 1 female-owned businesses and forty percent from service-disabled 2 veteran-owned businesses, as defined in section 73.14, that are 3 targeted small businesses . 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to service-disabled veteran-owned 8 businesses by establishing certain state procurement goals 9 and preferences in government contracting and by expanding 10 the definition of a targeted small business to include such 11 businesses. 12 Under current law the state, board of regents institutions, 13 counties, townships, school districts, community colleges, 14 cities, and other public entities, and every person acting as 15 contracting agent for such entities, are required to make a 16 good-faith effort to utilize minority-owned and female-owned 17 businesses for attorneys, accountants, financial advisors, 18 banks, underwriters, insurers, and other occupations necessary 19 to carry out the issuance of bonds or other obligations. The 20 bill requires that such entities also make a good-faith effort 21 to utilize service-disabled veteran-owned businesses in such 22 instances. 23 Current law also requires the establishment of procurement 24 goals from certified targeted small businesses. Current law 25 also establishes a goal that at least 40 percent of the total 26 value of anticipated procurements from certified targeted small 27 businesses be procured from minority-owned businesses and 40 28 percent from female-owned businesses. The bill establishes an 29 additional goal that at least 40 percent of the total value 30 of anticipated procurements from certified targeted small 31 businesses be procured from service-disabled veteran-owned 32 businesses. 33 -2- LSB 2170YH (4) 86 aw/sc 2/ 2