BILL REQ. #:  S-1744.1 

READ FIRST TIME 02/22/13.   

     AN ACT Relating to veteran-owned businesses; amending RCW 43.60A.190, 43.60A.195, and 43.60A.200; and reenacting and amending RCW 43.60A.010.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 43.60A.010 and 2010 1st sp.s. c 7 s 117 and 2010 c 5 s 2 are each reenacted and amended to read as follows:
     As used in this chapter the following words and phrases shall have the following meanings unless the context clearly requires otherwise:
     (1) "Committee" means the veterans affairs advisory committee.
     (2) "Department" means the department of veterans affairs.
     (3) "Director" means the director of the department of veterans affairs.
     (4) "Goods and services" includes professional services and all other goods and services.
     (5) "Procurement" means the purchase, lease, or rental of any goods or services.
     (6) "State agency" includes the state of Washington and all agencies, departments, offices, divisions, boards, commissions, and correctional and other types of institutions.
     (7) "Veteran-owned business" means a business that is certified by the department ((to be at least fifty-one percent owned and controlled by:
     (a) A veteran as defined in RCW 41.04.007; or
     (b) An active or reserve member in any branch of the armed forces of the United States, including the national guard, coast guard, and armed forces reserves)) under RCW 43.60A.190.

Sec. 2   RCW 43.60A.190 and 2008 c 187 s 1 are each amended to read as follows:
     (1) The department shall:
     (a) Develop and maintain a current list of veteran-owned businesses; and
     (b) Make the list available on the department's public web site.
     (2) To qualify as a veteran-owned business, the ((business must be at least fifty-one percent owned and controlled by)) department must certify that:
     (a) ((A veteran as defined in RCW 41.04.007; or
     (b) An active or reserve member in any branch of the armed forces of the United States, including the national guard, coast guard, and armed forces reserves.)) The business is at least fifty-one percent owned and controlled:
     (i) By a veteran as defined in this section; or
     (ii) Jointly by a veteran and his or her spouse or domestic partner if the veteran is involved in the day-to-day business operations; and
     (b) The state of Washington is where:
     (i) The principal office of the business is located;
     (ii) The veteran owner is a resident; or
     (iii) All corporate officers are residents if the business is a corporation.
     (3) To participate in the linked deposit program under chapter 43.86A RCW, a veteran-owned business qualified under this section must be certified by the department as a business:
     (a) In which the veteran owner possesses and exercises sufficient expertise specifically in the business's field of operation to make decisions governing the long-term direction and the day-to-day operations of the business;
     (b) That is organized for profit and performing a commercially useful function; and
     (c) That meets the criteria for a small business concern as established under chapter 39.19 RCW.
     (4) The department shall create a logo for the purpose of identifying veteran-owned businesses to the public. The department shall put the logo on an adhesive sticker or decal suitable for display in a business window and distribute the stickers or decals to veteran-owned businesses listed with the department.
     (5)(a) Businesses may submit an application on a form prescribed by the department for inclusion on the list or to apply for certification under this section.
     (b) The department must notify the state treasurer of veteran-owned businesses that are no longer certified under this section. The written notification to the state treasurer must contain information regarding the reasons for the decertification and information on financing provided to the veteran-owned business under RCW 43.86A.060.
     (6) The department may adopt rules necessary to implement this section.
     (7) For purposes of this section, "veteran" means:
     (a) A person who meets the definition in RCW 41.04.007; or
     (b) An active or reserve member in any branch of the armed forces of the United States, including the national guard, coast guard, and armed forces reserves.

Sec. 3   RCW 43.60A.195 and 2010 c 5 s 3 are each amended to read as follows:
     (1) The department shall develop a procedure for certifying veteran-owned businesses and maintain a list of veteran-owned businesses ((on the department's public web site)) to be accessible for all state agencies and educational institutions. The department shall work with the department of enterprise services to provide access to a centralized list of certified veteran-owned businesses.
     (2) The department shall adopt rules necessary to implement chapter 5, Laws of 2010. The department shall consult agencies to determine what specific information they must report to the department.
     (3) The department ((shall collaborate with and may assist agencies in implementing outreach to veteran-owned businesses)) and the department of enterprise services shall work together to develop a comprehensive plan insuring that certified veteran-owned businesses are provided an opportunity to participate in public contracts for public works and goods and services.

Sec. 4   RCW 43.60A.200 and 2010 c 5 s 4 are each amended to read as follows:
     (1) State agencies are encouraged to award ((three)) five percent of all procurement contracts ((that are exempt from competitive bidding requirements under RCW 43.19.1906(2))) under chapters 39.04, 39.26, 39.80, and 47.28 RCW to veteran-owned businesses certified by the department under RCW 43.60A.195.
     (2) State agencies shall:
     (a) Perform outreach to veteran-owned businesses in collaboration with the department to increase opportunities for veteran-owned businesses to sell goods and services to the state; and
     (b) ((Work to match)) Provide agency ((procurement)) contracting records with the department's database of certified veteran-owned businesses to establish how many procurement contracts are being awarded to those businesses.
     (3) Beginning January 1, 2014, the department shall report annually on all state agencies and educational institutions contracting with veteran-owned businesses.