By Paul Woolverton Staff writer Fayetteville Observer
RALEIGH — A proposed law would push governments in North Carolina to award contracts to veteran-owned businesses, similar to policies for companies owned by women and minorities.

The bill was sent to a Senate Commerce subcommittee on Tuesday after several senators raised questions about how it would work and whether it is necessary.

Under the proposal, it would be state policy for all layers of government — from city councils to state offices — to try to buy goods and services from veteran-owned businesses. Government agencies would strive to award at least 10 percent of construction work to veteran-owned contractors.

“Veteran” is defined as someone who served at least 180 days in the military or National Guard and was honorably discharged. The bill may be expanded to include current guardsmen and reservists.

General contractors bidding on construction projects would have to show they tried to hire veteran-owned subcontractors for some of the work.

Existing laws are aimed at awarding contracts to small businesses and those owned by minorities, women and physically disabled people.

“I think veterans and Guard, Reserve members need this bill,” said Rep. Ric Killian, a Charlotte Republican who sponsored it.

Killian served in the Army and is a lieutenant colonel in the Army Reserve.

Other states and the federal government have enacted similar laws, said Joe Marchesani, co-founder and chairman of the N.C. Veterans Business Association.

“We do appreciate when people say nice things” to soldiers and veterans, Marchesani said. “But they seem to forget that the modern military today, being that it is volunteer, puts their lives on hold for whatever length of time that they dedicate to the military.”

When soldiers enter the business world, he said, they don’t always compete on a level playing field for work.

Sen. R.C. Soles, chairman of the Senate Commerce Committee, sent the bill to a subcommittee following debate Tuesday morning.

Sometimes this is a tactic to quietly smother legislation without bringing it to a vote. But Soles said there are no plans to kill the bill.

Soles said he heard concerns that the policy change would take state contracts away from minorities.

Sen. Katie Dorsett of Greensboro, a Democrat, said the state would have to spend money to implement the bill in a difficult budget year.

Sen. Floyd McKissick Jr. of Durham, a Democrat, wondered if the bill is necessary.

“I’m not aware of … any data that would support the contention that veterans would constitute some kind of disadvantaged business, as rule,” he said.

The law for other groups followed studies showing that they had been discriminated against, McKissick said. “I’m not getting it when it comes to veterans,” he said.

Killian, the bill’s sponsor, told McKissick that he doesn’t know if there is data to show that veterans have been subject to discrimination.

“But I would also say to you … the veterans have always been there for us,” Killian said. “And I think it’s very appropriate that the veterans be included in this bill.”