PRINTER'S NO. 424
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
438
Session of
2023
INTRODUCED BY BARTOLOTTA, PHILLIPS-HILL, YAW, ROBINSON, COLLETT,
KANE, SCHWANK, BREWSTER, COSTA, MILLER AND MASTRIANO,
MARCH 14, 2023
REFERRED TO VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS,
MARCH 14, 2023
AN ACT
Amending Title 51 (Military Affairs) of the Pennsylvania
Consolidated Statutes, in veteran-owned small businesses,
further providing for definitions; providing for
miscellaneous provisions; and imposing a penalty.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "veteran" in section 9601 of
Title 51 of the Pennsylvania Consolidated Statutes is amended to
read:
ยง 9601. Definitions.
Subject to section 9602 (relating to regulations), the
following words and phrases when used in this chapter shall have
the meanings given to them in this section unless the context
clearly indicates otherwise:
* * *
"Veteran." [An individual who served in the United States
Armed Forces, including a reserve component or the National
Guard, and who was discharged or released from service under
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conditions other than dishonorable.] Any of the following:
(1) An individual who served on active duty in the
United States Armed Forces, including the Reserve and
National Guard, who was discharged or released from service
under honorable conditions.
(2) A reservist or member of the National Guard who
completed an initial term of enlistment or qualifying period
of service.
(3) A reservist or member of the National Guard who was
disabled in the line of duty during training.
* * *
Section 2. Chapter 96 of Title 51 is amended by adding a
subchapter to read:
SUBCHAPTER D
MISCELLANEOUS PROVISIONS
Sec.
9621. Definitions.
9622. Veteran-owned business logotype.
9623. Nonprofit membership association.
ยง 9621. Definitions.
As used in this subchapter, the following words and phrases
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Nonprofit membership association." A nonprofit organization
whose mission is to support veterans, reservists, National Guard
members, their spouses and families.
"Veteran-owned business." A business owned or controlled by
a veteran.
ยง 9622. Veteran-owned business logotype.
(a) Logotype.--Except as provided under section 9623
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(relating to nonprofit membership association), the department
shall develop and design an official Commonwealth logotype to be
used by a veteran-owned business.
(b) Application.--Except as provided under section 9623, the
department shall develop an application, criteria and
affirmation upon which an eligible business may apply for a
license to use the logotype under this section.
(c) Eligibility.--A veteran-owned business shall be eligible
to be issued a license to use the logotype if:
(1) the business is registered with the Department of
State; and
(2) at least 51% of the ownership interest in the
business is held by a veteran.
(d) Verification of military service status.--Except as
provided under section 9623, the following shall apply:
(1) The department shall verify the military service
status of each business owner seeking status as a veteran-
owned business without additional verification, by confirming
that the business:
(i) Possesses a valid verification issued by the
Department of General Services as a Veteran Business
Enterprise, including a Veteran-Owned Small Business
Enterprise or a Service-Disabled Veteran-Owned Small
Business Enterprise.
(ii) Possesses a valid verification issued by the
United States Department of Veterans Affairs through
VETBIZ or its successor.
(2) Nothing under this subsection shall prohibit the
department from working with another State agency or an
additional third-party entity to establish veteran-owned
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business verification.
(e) Notice.--Within 10 days of the creation of a logotype
under this section and the establishment of the criteria
necessary to use and display the logotype and the applications
and instructions on how to complete and submit an application,
the department shall post on a publicly accessible Internet
website of the department, a notice that:
(1) The logotype under this section is available to an
eligible business.
(2) Includes the criteria necessary to receive a license
to use and display the logotype and allows for access to the
applications and instructions on how to complete and submit
the applications.
(f) Issuance.--Except as provided under section 9623, the
department shall issue a license to use and display the logotype
to an applicant deemed eligible under subsection (c).
(g) Fee.--
(1) An initial fee of $250 is established for the
issuance of a license to use and display the logotype.
(2) A renewal fee of $100 is established for each
subsequent license renewal term.
(3) Fees collected under this subsection shall be used
as follows:
(i) Fifty percent of the fee shall be transferred to
the Veterans' Trust Fund.
(ii) Fifty percent of the fee shall be used for
administrative costs.
(4) If a nonprofit membership association is chosen
under section 9623, the nonprofit membership association
shall:
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(i) collect the fee under this subsection;
(ii) transfer 50% of the fee quarterly to the
department for disposition under paragraph (3)(i);
(iii) retain 50% of the fee for administrative
costs; and
(iv) annually submit an audit to the Auditor General
of the fees collected, transferred and retained under
this paragraph.
(5) The department shall adjust the fee amounts under
this subsection every three years to reflect any upward
changes in the Consumer Price Index for All Urban Consumers
for the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD area in
the preceding 12 months and shall transmit the adjusted fee
amount to the Legislative Reference Bureau for publication as
a notice in the next available Pennsylvania Bulletin. The fee
shall be adjusted by multiplying the annual fee amount by any
percentage increase to the Consumer Price Index for All Urban
Consumers for the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
area, rounded to the nearest $10. The resultant product shall
be added to the fee amount, and the sum shall become the new
annual fee amount under this subsection.
(h) Penalty.--
(1) An individual commits a misdemeanor of the third
degree if the individual fraudulently holds the individual
out to be a veteran for the purpose of obtaining a license or
using a logotype under this subchapter.
(2) Notwithstanding any other provision of law, the full
amount of each fine collected for a violation of paragraph
(1) shall be deposited into the Veterans' Trust Fund.
(i) Report.--By March 31 of each year, the department shall
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prepare an annual report on the number of veteran-owned
businesses issued a license to use the logotype, the annual
applications and renewals of the license to use the logotype and
the administration fees collected during the preceding year. A
copy of the report shall be sent to the Veterans Affairs and
Emergency Preparedness Committee of the Senate and the Veterans
Affairs and Emergency Preparedness Committee of the House of
Representatives.
ยง 9623. Nonprofit membership association.
The department may, except for section 9622(d) (relating to
veteran-owned business logotype), contract with a nonprofit
membership association to perform the duties and
responsibilities under section 9622.
Section 3. This act shall take effect in 60 days.
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