Tennessee House Bill HB0698

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 2/1/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 12, relative to veterans.

Impact

The legislation is expected to result in increased opportunities for veteran-owned businesses to participate in state contracts. Notably, it mandates that at least 5% of contracts awarded by the state's procurement commission must be allocated to veteran-owned businesses, setting a clear expectation for inclusion. This amendment seeks to level the playing field for veterans in the business community, particularly in competing with other minority-owned businesses, and to ensure equitable representation in state contracting processes.

Summary

House Bill 0698 aims to amend the Tennessee Code to include veteran-owned businesses in the state's procurement guidelines. This bill defines a veteran and a veteran-owned business, establishing that a veteran is someone who has served honorably in the armed forces. The bill stipulates that for a business to be classified as a veteran-owned business, it must be at least 51% owned and controlled by one or more veterans or, in the case of a public company, at least 51% of the stock must be owned by veterans. This inclusion reflects a growing recognition of the contributions of veterans to society and the economy.

Sentiment

The overall sentiment surrounding HB 0698 appears to be positive, particularly among advocacy groups and legislators focused on supporting veterans. Many view the bill as a crucial step towards recognizing and fostering veteran entrepreneurship. However, there may be concerns about how this mandate could impact the dynamics of contracting opportunities for other groups, particularly women and minority-owned businesses, as the legislation could lead to competitive tensions among different categories seeking equal opportunities for state contracts.

Contention

While the bill is largely supported, there may be points of contention regarding quotas and the potential division of limited resources among various groups. Critics may argue that specifying a percentage of contracts for veteran-owned businesses could inadvertently create a hierarchy among business groups, potentially neglecting the needs of other disadvantaged businesses. The implementation of this law will be closely monitored to ensure that fair opportunities are maintained across all categories of business ownership.