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Bill Aiming To Curb Vet Unemployment May Face Legal Issues

By Brandon Smith

Posted February 5, 2013

State Senator Mike Delph (R-Carmel) wants each state agency to set aside 10 percent of its contracts each year for veteran-owned small businesses. Supporters say the measure will help reduce veteran unemployment.

Governor Mike Pence signed an executive order his first day in office establishing a goal of procuring three percent of state contracts for veteran-owned businesses.

Proposed legislation would expand that to 10 percent something American Legion state commander Richard Jewell says could help reduce veteran unemployment, which is double the state rate.

"Veteran-owned businesses tend to hire veterans. So we look at this as not only a great opportunity for the veteran-owned businesses in the state of Indiana, but it also has an opportunity to put those newest patriots back to work," Jewell says.

Indianapolis Democratic Senator Greg Taylor says while help for veteran-owned businesses is needed, the proposed bill may run into constitutional problems.

Taylor says his concerns are based on his experience with a similar program, the minority- and women-owned business preference.

"You have to show a history of disparity in order to have the goal set. So, in order for this program to hold muster and actually pass legal scrutiny, we need to have a disparity study to include veteran-owned businesses," Taylor says.

Taylor says until that kind of study can be done, the issue is best left to the governor's executive order and the state Department of Administration.

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