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                                                       PRINTER'S NO. 121

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 87 Session of 2007


        INTRODUCED BY TOMLINSON, SCARNATI, WONDERLING, BOSCOLA, COSTA,
           FONTANA, ERICKSON, PUNT, BRUBAKER, RAFFERTY, C. WILLIAMS,
           TARTAGLIONE, BROWNE, FERLO, RHOADES, ROBBINS, ARMSTRONG,
           D. WHITE, GREENLEAF, REGOLA, MUSTO, PILEGGI, MELLOW, STACK,
           LOGAN AND BAKER, FEBRUARY 13, 2007

        REFERRED TO VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS,
           FEBRUARY 13, 2007

                                     AN ACT

     1  Amending Title 62 (Procurement) of the Pennsylvania Consolidated
     2     Statutes, providing for contracting with veteran-owned
     3     businesses; and imposing duties on the Department of General
     4     Services.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Title 62 of the Pennsylvania Consolidated
     8  Statutes is amended by adding a chapter to read:
     9                             CHAPTER 22
    10                      VETERAN-OWNED BUSINESSES
    11  Sec.
    12  2201.  Definitions.
    13  2202.  Regulations.
    14  2203.  Veteran-owned business participation goals.
    15  2204.  Duties of department.
    16  2205.  Bonding and progress payments.
    17  2206.  Business assistance offices.

     1  2207.  Report to General Assembly.
     2  2208.  Compliance with Federal requirements.
     3  § 2201.  Definitions.
     4     Subject to section 2202 (relating to regulations), the
     5  following words and phrases when used in this chapter shall have
     6  the meanings given to them in this section unless the context
     7  clearly indicates otherwise:
     8     "Veteran."  A veteran of the armed forces of the United
     9  States, including, but not limited to, the National Guard, who
    10  has received an honorable discharge and who is domiciled in this
    11  Commonwealth.
    12     "Veteran-owned business."  A business that is owned or
    13  controlled by a majority of persons who are veterans.
    14  § 2202.  Regulations.
    15     The department shall establish policy in accordance with this
    16  chapter for executive agencies and those independent agencies
    17  for which the department acts as purchasing agency and may
    18  promulgate regulations establishing detailed definitions of the
    19  words and phrases defined in section 2201 (relating to
    20  definitions) using, in addition to the criteria set forth in
    21  section 2201, other criteria as it deems appropriate. State-
    22  affiliated entities shall implement the policy for their
    23  procurement programs.
    24  § 2203.  Veteran-owned business participation goals.
    25     Each purchasing agency shall have an annual goal of not less
    26  than 5% participation by veteran-owned businesses in all
    27  contracts entered into by the purchasing agency. The
    28  participation goal shall apply to the overall dollar amount
    29  expended by the purchasing agency with respect to the contracts.
    30  § 2204.  Duties of department.
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     1     The department shall have the following duties:
     2         (1)  Where feasible, provide appropriate staff who shall
     3     be responsible to the department and who shall serve within
     4     designated Commonwealth agencies to assist veteran-owned
     5     businesses in this Commonwealth in learning how to do
     6     business with Commonwealth agencies.
     7         (2)  Give special publicity to procurement procedures and
     8     issue special publications designed to assist veteran-owned
     9     businesses in learning how to do business with Commonwealth
    10     agencies.
    11         (3)  Compile, maintain and make available source lists of
    12     veteran-owned businesses for the purpose of encouraging
    13     procurement from veteran-owned businesses.
    14         (4)  Include veteran-owned businesses on solicitation
    15     mailing lists.
    16         (5)  Assure that veteran-owned businesses are solicited
    17     on each procurement for which the businesses may be suited.
    18         (6)  Develop special training programs to assist veteran-
    19     owned businesses in learning how to do business with
    20     Commonwealth agencies.
    21         (7)  Facilitate achievement of the participation goals
    22     for veteran-owned businesses under section 2203 (relating to
    23     veteran-owned business participation goals).
    24  § 2205.  Bonding and progress payments.
    25     (a)  Bonding.--Notwithstanding other provisions of this part,
    26  a purchasing agency may reduce the level or change the types of
    27  bonding normally required or accept alternative forms of
    28  security to the extent reasonably necessary to encourage
    29  procurement from veteran-owned businesses.
    30     (b)  Progress payments.--A purchasing agency may make special
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     1  provisions for progress payments as it deems reasonably
     2  necessary to encourage procurement from veteran-owned
     3  businesses.
     4  § 2206.  Business assistance offices.
     5     The department shall establish, as it deems appropriate,
     6  business assistance offices throughout this Commonwealth to
     7  assist and carry out the provisions of this chapter.
     8  § 2207.  Report to General Assembly.
     9     The department shall annually, before October 1, report in
    10  writing to the General Assembly concerning the awarding of
    11  contracts to veteran-owned businesses during the preceding
    12  fiscal year. The report shall include a list of all veteran-
    13  owned businesses that participated as contractors,
    14  subcontractors or suppliers during the preceding fiscal year for
    15  contracts if the number of contractors under a previously
    16  existing contract for the same supply or service is reduced to a
    17  single contractor or reduced by more than 50% of the number
    18  existing on December 31, 2006. In preparing the report, the
    19  department shall verify whether commitments made to veteran-
    20  owned businesses in the course of awarding these contracts have
    21  been maintained.
    22  § 2208.  Compliance with Federal requirements.
    23     If a procurement involves the expenditure of Federal
    24  assistance or contract funds, the purchasing agency shall comply
    25  with Federal law and authorized regulations that are mandatorily
    26  applicable and that are not presently reflected in this part.
    27     Section 2.  This act shall take effect in 60 days.


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