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2024 Regular Session
SENATE BILL NO. 189
BY SENATOR COUSSAN
PUBLIC CONTRACTS. Provides relative to state procurement awards for service-
connected disabled veteran owned small businesses. (gov sig)
1 AN ACT
2 To amend and reenact the heading of Part VIII of Chapter 17 of Subtitle III of Title 39 of the
3 Louisiana Revised Statutes of 1950 and R.S. 39:1732(3), (4), (5), and (6), 1733(F)
4 and (G), 1734, the introductory paragraph of 1736, 1736(5), and 2174 and to enact
5 R.S. 39:1732(7), 1733(H), and 1736(6), relative to state procurement; to provide
6 relative to set-aside procurement awards for certain small businesses; to provide a
7 preference for service-connected disabled veteran owned small businesses; to
8 provide relative to state goals for veterans in state procurement and public contracts;
9 to provide for definitions; to provide for reporting requirements; and to provide for
10 related matters.
11 Be it enacted by the Legislature of Louisiana:
12 Section 1. The heading of Part VIII of Chapter 17 of Subtitle III of Title 39 of the
13 Louisiana Revised Statutes of 1950 and R.S. 39:1732(3), (4), (5), and (6), 1733(F) and (G),
14 1734, the introductory paragraph of 1736, 1736(5), and 2174 are hereby amended and
15 reenacted and R.S. 39:1732(7), 1733(H), and 1736(6) are hereby enacted to read as follows:
16 PART VIII. ASSISTANCE TO SMALL AND DISADVANTAGED
17 BUSINESSES AND WOMEN OWNED BUSINESSES AND SERVICE-
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1 CONNECTED DISABLED VETERAN OWNED SMALL BUSINESSES
2 * * *
3 §1732. Definitions of terms used in this Part
4 As used in this Part, the following words and phrases shall have the meaning
5 ascribed to them in this Section, except as otherwise may be provided or unless a
6 different meaning is plainly required by the context:
7 * * *
8 (3) "Service-connected disabled veteran owned small business" means
9 any corporation, partnership, individual, sole proprietorship, joint stock
10 company, joint venture, or any other legal entity that has not less than fifty-one
11 percent ownership by a veteran of the United States Armed Forces with a
12 service-connected disability who also controls and operates it, and meets the
13 criteria for certification by the secretary of the Department of Economic
14 Development pursuant to R.S. 39:2176. For the purposes of this definition,
15 "control" means exercising the power to make policy decisions and "operate"
16 means being actively involved in the day-to-day management. Service-connected
17 disability shall be confirmed through appropriate documents from the United
18 States Department of Veterans Affairs or the Louisiana Department of Veterans
19 Affairs.
20 (3)(4) "Services" means the furnishing of labor, time, or effort by a
21 contractor, not involving the delivery of a specific end product other than reports
22 which are merely incidental to the required performance. This term shall include
23 those services covered by this Chapter and services performed by an architect,
24 engineer, or landscape architect as provided by Part VII of Chapter 10 of Title 38 of
25 the Louisiana Revised Statutes of 1950. This term shall not include collective
26 bargaining agreements.
27 (4)(5) "Small business" means a small business as defined by the Small
28 Business Administration of the United States Government which for purposes of size
29 eligibility or other factors meets the applicable criteria set forth in 13 Code of
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1 Federal Regulations, Part 121, as amended, and which has its principal place of
2 business in Louisiana.
3 (5)(6) "Socially or economically disadvantaged person" means a person who
4 has been deprived of the opportunity to develop and maintain a competitive position
5 in the economy because of social or economic disadvantage. This disadvantage may
6 arise from cultural, social or economic circumstances or background or physical
7 location.
8 (6)(7) "Women owned business" means a business that is at least fifty-one
9 percent owned by a woman or women who also control and operate it. "Control" in
10 this context means exercising the power to make policy decisions. "Operate" in this
11 context means being actively involved in the day-to-day management. In
12 determining whether a business is fifty-one percent owned by a woman or women,
13 the percent ownership of the woman or women shall not be diminished because she
14 is part of a community property regime.
15 §1733. Procurement from small businesses
16 * * *
17 F. Preference to service-connected disabled veterans. At least ten percent
18 of the value of the procurements designated for set-aside awards shall be
19 awarded, if possible, to small businesses owned and operated by
20 service-connected disabled veterans. In the event small businesses owned and
21 operated by service-connected disabled veterans are unable to perform at least
22 ten percent of the set-aside awards, then the commissioner shall award the
23 balance of the set-aside contracts to other small businesses.
24 F.G. Award of contracts after unsuccessful set-aside procedures. In the event
25 that the provisions of this Part do not operate to extend a contract award to a small
26 business, the award shall be placed pursuant to the existing solicitation and award
27 provisions established by law. The commissioner shall thereupon designate and set
28 aside for small businesses additional state procurements corresponding in
29 approximate value to the contract unable to be awarded pursuant to the provisions
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1 of this Part.
2 G.H. Conflict with other code provisions. All laws and rules pertaining to
3 solicitations, bid evaluations, contract awards, and other procurement matters shall
4 apply as consistent to procurements set aside for small businesses. In the event of
5 conflict with other rules, the provisions of this Part shall govern.
6 §1734. Assistance to small businesses
7 The commissioner of administration, and the executive director of the
8 Louisiana division of minority and women's business enterprise in the Department
9 of Economic Development, and the Louisiana Department of Veterans Affairs
10 shall publicize the provisions of the set-aside program, attempt to locate small
11 businesses able to perform set-aside procurement awards, and encourage
12 participation. When the commissioner of administration determines that a small
13 business is unable to perform under a set-aside contract, he shall so inform the
14 secretary of economic development, who shall assist the small business in attempting
15 to remedy the causes of the inability to perform a set-aside award. In assisting the
16 small business, the executive director of the Louisiana division of minority and
17 women's business enterprise and the Louisiana Department of Veterans Affairs,
18 in cooperation with the commissioner of administration, shall use any management
19 or financial assistance programs that may be available by or through the Louisiana
20 division of minority and women's business enterprise, the Louisiana Department
21 of Veterans Affairs, or other state or governmental agencies.
22 * * *
23 §1736. Reports
24 The commissioner of administration shall submit an annual report to the
25 governor and the legislature, with a copy thereof going to the Louisiana division of
26 minority and women's business enterprise and the Louisiana Department of
27 Veterans Affairs, indicating the progress being made toward the objectives and
28 goals of this Part during each fiscal year. This report shall include the following
29 information:
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1 * * *
2 (5) The total dollar value and number of set-aside contracts awarded to
3 small businesses owned and operated by service-connected disabled veterans,
4 with appropriate designation as to the total number and value of set-aside
5 contracts awarded to each small business, and the percentages of the total state
6 procurements the figures of total dollar value and the number of set-asides
7 reflect.
8 (5)(6) The number of contracts which were designated and set aside but
9 which were not awarded to a small business, the estimated total dollar value of these
10 awards, the lowest offer or bid on each of these awards made by the small business,
11 and the price at which these contracts were awarded pursuant to the normal
12 procurement procedures.
13 * * *
14 §2174. State goals for procurements and public contracts
15 The commissioner of administration shall establish annual goals in
16 accordance with the provisions of R.S. 39:1733 for veteran and service-connected
17 disabled veteran-owned small entrepreneurship participation in state procurements
18 and public contracts. The commissioner shall determine the appropriate level and
19 number of goals for each year. The formulation of each goal shall be based on
20 historical procurement and public contracting data and any other factors which the
21 commissioner deems useful. As part of development of goals, the commissioner may
22 consider the capacity of veteran and service-connected disabled veteran-owned small
23 entrepreneurships available to participate in meeting goals, which may be determined
24 based on past experience, available veteran and service-connected disabled veteran-
25 owned small entrepreneurship certifications, and recognized industry composition.
26 The commissioner shall provide guidance to agencies with respect to estimation of
27 dollar values for anticipated procurement and contract activity to be used in the
28 development of a goal. Agencies shall report any data required by the commissioner
29 in this regard in accordance with a schedule established by the commissioner.
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1 Section 2. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Curry Lann.
DIGEST
SB 189 Original 2024 Regular Session Coussan
Present law (R.S. 39:1731 et seq.) provides for the "Louisiana Small Business Procurement
Act" and requires the commissioner of administration to provide for a set-aside not to exceed
10% of total state procurement of goods and services to small and disadvantaged businesses
and women owned businesses.
Proposed law retains present law.
Proposed law adds a preference of at least 10% of the value of the procurements designated
for set-aside awards, if possible, for service-connected disabled veteran owned small
businesses. Requires the commissioner to award the balance of the set-aside contracts to
other small businesses if small businesses owned and operated by service-connected disabled
veterans are unable to perform at least 10% of the set-aside awards.
Proposed law defines "service-connected disabled veteran owned small business" as any
corporation, partnership, individual, sole proprietorship, joint stock company, joint venture,
or any other legal entity that has not less than 51% ownership by a veteran of the U.S.
Armed Forces with a service-connected disability who also controls and operates it, and
meets the criteria for certification by the secretary of the Dept. of Economic Development.
For the purposes of this definition, "control" means exercising the power to make policy
decisions and "operate" means being actively involved in the day-to-day management.
Service-connected disability shall be confirmed through appropriate documents from the
U.S. Dept. of Veterans Affairs or the La. Dept. of Veterans Affairs.
Proposed law requires the La. Dept. of Veterans Affairs to publicize the provisions of the
set-aside program and provide assistance through other management or financial assistance
programs for service-connected disabled veterans.
Proposed law requires the commissioner of administration to submit an annual report to the
La. Dept. of Veterans Affairs, indicating the progress being made toward the goals of
proposed law during each fiscal year, including the total dollar value and number of set-aside
contracts awarded to small businesses owned and operated by service-connected disabled
veterans.
Present law (R.S. 39:2174) requires the commissioner of administration to establish annual
goals for veteran and service-connected disabled veteran-owned small entrepreneurship
participation in state procurement and public contracts.
Proposed law requires the annual goals to be established in accordance with the provisions
of the "Louisiana Small Business Procurement Act" and otherwise retains present law.
Effective upon signature of the governor or lapse of time of time for gubernatorial action.
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(Amends the heading of Part VIII of Chapter 17 of Subtitle III of Title 39 of the Louisiana
Revised Statutes of 1950 and R.S. 39:1732(3), (4), (5), and (6), 1733(F) and (G), 1734,
1736(intro para), 1736(5), and 2174; Adds R.S. 39:1732(7), 1733(H), and 1736(6))
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