REFERENCE TITLE: procurement; veterans; Arizona bidders; preference

 

 

 

 

State of Arizona

House of Representatives

Fifty-third Legislature

Second Regular Session

2018

 

 

HB 2424

 

Introduced by

Representatives Espinoza: Andrade, Benally, Bolding, Cardenas, Clark, Fernandez, Friese, Gabaldón, Gonzales, Martinez, Navarrete, Powers Hannley, Saldate, Salman

 

 

AN ACT

 

amending title 41, chapter 23, article 1, Arizona Revised Statutes, by adding section 41‑2505; relating to the procurement code.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 41, chapter 23, article 1, Arizona Revised Statutes, is amended by adding section 41-2505, to read:

START_STATUTE41-2505.  Preference for veteran-owned business bidders and Arizona bidders for identical bids; reciprocal preference; definitions

A.  For contracts awarded pursuant to section 41-2533, subsection G, a purchasing agency shall give preference to a veteran-owned business bidder or an Arizona bidder in the following order over a nonresident bidder if there are two or more low, responsive offers from responsible bidders that are identical in price:

1.  A veteran‑owned business bidder.

2.  An Arizona bidder.

B.  A purchasing agency shall add a percentage increase to the bid of a nonresident bidder equal to the percentage, if any, of the preference given to the bidder in the state in which the bidder resides.  On or before January 1 of each year, the department shall publish a list of states that give preference to in‑state bidders with the percentage increase applied in each state.  A purchasing agency may rely on the names of states and percentages so published in determining the lowest responsible bidder without incurring any liability to any bidder.

C.  For the purposes of this section:

1.  "Arizona bidder" means a bidder that satisfies all of the following:

(a)  Is authorized to transact business in this state.

(b)  Maintains its headquarters in this state for at least twelve consecutive months before submitting a bid, except that the requirement for maintaining headquarters in this state does not apply if the bidder employs five hundred or more full‑time residents of this state who are provided health care benefits through their employer.

(c)  Pays all assessed taxes.

2.  "Headquarters" means a principal central administrative office where primary headquarters‑related functions and services are performed, including financial, personnel, administrative, legal, planning and similar business functions.

3.  "Veteran" means a person who is a veteran of the armed forces of the United States and who is separated from the armed forces of the United States under honorable conditions.

4.  "Veteran‑owned business" means a business to which all of the following apply:

(a)  The business is an individual proprietorship, partnership, corporation or joint venture that is at least fifty‑one percent owned by one or more veterans or, for a business whose stock is publicly held, at least fifty‑one percent of the stock is owned by one or more veterans.

(b)  The management and daily operations of the business are controlled by one or more veterans who own the business.

(c)  The home office of the business is located in this state and is not a branch or subsidiary of a foreign corporation or firm or other foreign business. END_STATUTE