A BILL TO BE ENTITLED
AN ACT providing that qualified disabled veteran businesses shall be given a ten percent preference when bidding on state construction or repair contracts and appropriating funds to implement the preference.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read as follows:
"§ 143‑128.5.  Preference for qualified disabled veteran businesses.
(a)	Definitions. – For purposes of this section, the following definitions apply:
(1)	Qualified disabled veteran. – A veteran with a service‑connected disability.
(2)	Qualified disabled veteran business. – A business that is fifty‑one percent (51%) or more owned by one or more qualified disabled veterans.
(3)	Service‑connected disability. – A disability incurred or aggravated in the line of duty in active military, naval, or air service.
(4)	Veteran. – As defined in G.S. 128‑15(b)(2).
(b)	Policy; Preference Stated. – It is the policy of this State to encourage and promote the use of qualified disabled veteran owned businesses in State construction or repair contracts requiring an expenditure of public money. All State agencies, departments, and institutions shall cooperate with the Department of Administration in implementing this policy by giving a ten percent (10%) preference, as provided in subsection (c) of this section, to qualified disabled veteran businesses.
(c)	Preference Implementation. – The ten percent (10%) preference authorized in subsection (b) of this section shall be given to each qualified disabled veteran business bidding on a contract to be let by the governing body of a State agency, department, or institution. The preference shall be calculated by deducting ten percent (10%) of the lowest responsible, responsive bid of all bids submitted from the bid of each qualified disabled veteran business. If, with the preference, the bid of a qualified disabled veteran business is the lowest responsible, responsive bid, the contract shall be awarded to that qualified disabled veteran business. If, with the preference, the bid of a qualified disabled veteran business is not the lowest responsible, responsive bid, the contract shall be awarded to the lowest responsible, responsive bid. For purposes of determining eligibility for the preference, each qualified disabled veteran business shall include in its sealed bid all of the following:
(1)	Proof of service and conditions of discharge in the form of a DD Form 214 and Department of Veterans Affairs claim decision letter.
(2)	Proof of a service‑connected disability in the form of a DD Form 214, if the disability was documented at the time of discharge, or a Department of Veterans Affairs rating decision letter, if the disability was documented after discharge.
(3)	Proof of legal ownership of the business, and proof that the business has its principal place of business in this State.
(d)	Loss of Preference. – If, during the term of the contract, a business awarded a preference under this section no longer meets the definition of a qualified disabled veteran business, as defined in subdivision (2) of subsection (a) of this section, the contract price shall be discounted by the amount of the preference granted.
(e)	Bidder Notification. – When the Secretary or the governing body of a State agency, department, or institution puts a contract up for competitive bidding, they shall endeavor to provide notice to all qualified disabled veteran business bidders who have expressed an interest in bidding on contracts of that nature. Notice under this section may be given by electronic means only."
SECTION 2.  There is appropriated from the General Fund to the Department of Administration, Purchase and Contract Division, the sum of twenty‑five thousand dollars ($25,000) in nonrecurring funds for the 2019‑2020 fiscal year to implement the provisions of this act.
SECTION 3.  This act becomes effective October 1, 2019, and applies to construction or repair contracts submitted on or after that date.