THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MICCARELLI, WHEATLEY, ADOLPH, AUMENT, BAKER, BARBIN, BARRAR, BEAR, BENNINGHOFF, BOBACK, B. BOYLE, BRENNAN, BROWNLEE, CALTAGIRONE, CARROLL, CHRISTIANA, CLYMER, D. COSTA, P. COSTA, COX, CUTLER, DAVIDSON, DAVIS, DEASY, DeLUCA, DePASQUALE, DERMODY, DeWEESE, DiGIROLAMO, ELLIS, EMRICK, EVERETT, FABRIZIO, FARRY, FLECK, FREEMAN, GABLER, GALLOWAY, GEIST, GEORGE, GERBER, GIBBONS, GINGRICH, GODSHALL, GOODMAN, GROVE, HACKETT, HAHN, HARHART, HARKINS, HARPER, HELM, HENNESSEY, HESS, HICKERNELL, HORNAMAN, HUTCHINSON, JOSEPHS, F. KELLER, M. K. KELLER, W. KELLER, KILLION, KNOWLES, KOTIK, LAWRENCE, MAJOR, MALONEY, MANN, MARKOSEK, MARSHALL, MARSICO, MASSER, MATZIE, McGEEHAN, METCALFE, MICOZZIE, MILLARD, MURPHY, MURT, MUSTIO, NEUMAN, D. O'BRIEN, M. O'BRIEN, O'NEILL, PASHINSKI, PAYTON, PEIFER, PETRI, PYLE, QUIGLEY, QUINN, RAPP, RAVENSTAHL, REED, REICHLEY, ROAE, ROCK, SABATINA, SACCONE, SAINATO, SANTONI, SAYLOR, SCAVELLO, SCHRODER, SIMMONS, STEPHENS, STEVENSON, SWANGER, TALLMAN, THOMAS, TOBASH, TOEPEL, TOOHIL, TURZAI, VEREB, WATERS, WATSON AND WILLIAMS, APRIL 8, 2011

REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, APRIL 8, 2011  

AN ACT

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, providing for disabled veteran-owned small

businesses.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 62 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 22

DISABLED VETERAN-OWNED SMALL BUSINESSES

Sec.

2201.  Definitions.

2202.  Policy.

2203.  Disabled veteran-owned small business participation

goals.

2204.  Duties of department.

2205.  Bonding and progress payments.

2206.  Reporting requirements.

2207.  Compliance with Federal requirements.

§ 2201.  Definitions.

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:

"Disabled veteran."  An individual who:

(1)  Served in the armed forces of the United States,

including the reserve components and the National Guard.

(2)  Was discharged from service under honorable

conditions.

(3)  Has at least a 10% service-connected disability.

"Disabled veteran-owned small business."  A business:

(1)  That has 100 or fewer full-time employees.

(2)  Not less than 51% of which is owned by one or more

disabled veterans or, in the case of any publicly owned

business, not less than 51% of the stock of which is owned by

one or more disabled veterans.

(3)  The management and daily business operations of

which are controlled by one or more disabled veterans.

(4)  That satisfies such other criteria as established by

regulation of the department.

§ 2202.  Policy.

The department shall establish policy in accordance with this

chapter for executive agencies and those independent agencies

for which the department acts as purchasing agency to implement

this chapter. State-affiliated entities shall implement the

policy for their procurement programs.

§ 2203.  Disabled veteran-owned small business participation

goals.

Each purchasing agency shall establish an annual goal of not

less than 3% participation by disabled veteran-owned small

businesses in all contracts entered into by the purchasing

agency. The participation goal shall apply to the overall dollar

amount expended on the contracts by the purchasing agency.

§ 2204.  Duties of department.

The department shall have the following duties:

(1)  Where feasible, provide appropriate staff who shall

be responsible to the department and who shall serve within

designated Commonwealth agencies to assist disabled veteran-

owned small businesses in this Commonwealth in learning how

to do business with Commonwealth agencies.

(2)  Give special publicity to procurement procedures and

issue special publications designed to assist veteran-owned

small businesses in learning how to do business with

Commonwealth agencies.

(3)  Compile, maintain and make available source lists of

disabled veteran-owned small businesses for the purpose of

encouraging procurement from disabled veteran-owned small

businesses.

(4)  Include disabled veteran-owned small businesses on

solicitation mailing lists.

(5)  Assure that disabled veteran-owned small businesses

are solicited on each procurement for which the businesses

may be suited.

(6)  Develop special training programs to assist disabled

veteran-owned small business in learning how to do business

with Commonwealth agencies.

(7)  Assure that participation by disabled veteran-owned

small businesses is appropriately factored into the

evaluation of proposals for supplies, services or

construction when a purchasing agency uses the competitive

sealed proposals method under section 513 (relating to

competitive sealed proposals).

§ 2205.  Bonding and progress payments.

(a)  General rule.--Notwithstanding any other provision of

this part:

(1)  Except as provided in paragraph (2), a purchasing

agency may reduce the level or change the types of bonding

normally required or accept alternative forms of security to

the extent reasonably necessary to encourage procurement from

disabled veteran-owned small businesses.

(2)  For contracts under $100,000, disabled veteran-owned

small businesses shall be exempt from the bonding

requirements of this part.

(b)  Progress payments.--A purchasing agency may make special

provisions for progress payments as it deems reasonably

necessary to encourage procurement from disabled veteran-owned

small businesses.

§ 2206.  Reporting requirements.

(a)  Purchasing agencies.--

(1)  On July 1 of each year, a purchasing agency shall

report to the Governor, the General Assembly, the department

and the Department of Military and Veterans Affairs on the

participation by disabled veteran-owned small businesses in

contracts of the purchasing agency for the previous fiscal

year.

(2)  If a purchasing agency has not met the established

participation goal for the previous fiscal year, the

purchasing agency shall identify the reasons the goal was not

met and the steps the purchasing agency will take to achieve

the goal in the future.

(b)  Department.--On September 1 of each year, the department

shall present to the Governor, the General Assembly and the

Department of Military and Veterans Affairs a Statewide

statistical summary detailing each purchasing agency's goal

achievement and a Statewide total of goal achievement.

§ 2207.  Compliance with Federal requirements.

If a procurement involves the expenditure of Federal

assistance or contract funds, the purchasing agency shall comply

with Federal law and authorized regulations that are mandatorily

applicable and that are not presently reflected in this part.

Section 2.  This act shall take effect in 60 days.