Tennessee Senate Bill SB0965

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23

Caption

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

Impact

The inclusion of veteran-owned businesses in state procurement processes is expected to foster greater competition and provide necessary support to those who have served in the military. By mandating that a minimum percentage of contracts be allocated to these businesses, the state aims to not only uplift veterans economically but also to recognize their sacrifices and contributions to society. This act could potentially rebound to provide socio-economic benefits as it encourages entrepreneurship among veterans, which may lead to job creation and community development.

Summary

Senate Bill 965 (SB0965) aims to amend the Tennessee Code Annotated, Title 12, to recognize and enhance the status and opportunities for veteran-owned businesses within the state. This legislation adds specific provisions that define what constitutes a veteran and a veteran-owned business, ensuring that these businesses are adequately represented alongside woman-owned and minority-owned businesses in procurement processes. Specifically, it stipulates that at least five percent of state contracts must be awarded to veteran-owned businesses, thereby directly impacting the landscape of business opportunities for veterans in Tennessee.

Contention

While SB0965 is likely to be well-received as a measure to support veterans, some points of contention could arise regarding the implications of having set quotas for state contracts. Critics might argue that specific percentages could lead to unintended consequences, potentially placing undue paperwork or compliance burdens on veteran-owned businesses. Others may raise concerns about the balance of supporting veteran-owned businesses against those owned by other marginalized groups, leaving open discussions on the fairness and effectiveness of quota systems in promoting diversity in business ownership.