Amends TCA Title 12.

The Tennessee Minority-Owned, Woman-Owned, Service-Disabled Veteran-Owned, Business Owned by Persons with Disabilities, and Small Business Procurement and Contracting Act generally requires all state agencies to actively solicit bids and proposals for equipment, supplies, personal services, professional services, consulting services, construction contracts, and architectural and engineering services from a minority-owned business, woman-owned business, service-disabled veteran-owned business, business owned by persons with disabilities, or small business in order to strive to obtain a fair proportion of procurements from such businesses. The Act does not impose a mandatory quota, but the procurement commission is required to annually determine the amount of fair proportion required under the Act. The Act establishes the position of diversity business program director who, among other duties, is required to assist businesses that are covered under the Act in complying with state procurement and contracting procedures and requirements. This bill adds veteran-owned businesses to the types of businesses that are covered under the Act. For purposes of this bill: (1) "Veteran" means a person who served honorably on active duty in the armed forces of the United States; and (2) "Veteran-owned business" means a business that is a continuing, independent, for-profit business located in this state that performs a commercially useful function, and: (A) Is at least 51 percent owned and controlled by one or more veterans; (B) In the case of a business solely owned by one veteran and such person's spouse, is at least 50 percent owned and controlled by the veteran; or (C) In the case of a publicly owned business, at least 51 percent of the stock of which is owned and controlled by one or more veterans and whose management and daily business operations are under the control of one or more veterans. A service-disabled veteran or service-disabled veteran-owned business, while already covered by the Act, will be included in the definitions of "veteran" and "veteran-owned business". This bill requires the procurement commission to strive to ensure that at least 5 percent of contracts awarded pursuant to the Act are awarded to veteran-owned businesses.