THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY TOMLINSON, BAKER, SCARNATI, PILEGGI, ERICKSON, VOGEL, YAW, FONTANA, BOSCOLA, STACK, RAFFERTY, SOLOBAY, BRUBAKER, ALLOWAY, WAUGH, BROWNE, TARTAGLIONE, D. WHITE, COSTA, WILLIAMS, MENSCH, GREENLEAF, FARNESE, WARD AND BREWSTER, FEBRUARY 23, 2011

REFERRED TO VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, FEBRUARY 23, 2011  

AN ACT

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, providing for contracting with veteran-owned small 

businesses; and imposing duties on the Department of General

Services and other Commonwealth purchasing agencies.

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

VETERAN-OWNED SMALL BUSINESSES

Sec.

2201.  Definitions.

2202.  Regulations.

2203.  Veteran-owned small business participation goals.

2204.  Duties of department.

2205.  Bonding and progress payments.

2206.  (Reserved).

2207.  Report to standing committees.

2208.  Compliance with Federal requirements.

§ 2201.  Definitions.

Subject to section 2202 (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:

"Active service."  Full-time military duty, other than active

duty for training, as a member of the United States Army, Air

Force, Navy, Marine Corps or Coast Guard, or their reserve

components or the National Guard. The term includes full-time

service for more than 30 consecutive days performing active

State duty for emergencies as a member of the Pennsylvania

National Guard.

"Veteran."  An individual who performed active service in the

armed forces of the United States, including the reserve

components and the National Guard, who was discharged from the

active service under honorable conditions.

"Veteran-owned small business."  A business having 100 or

fewer full-time employees and not less than 51% of which is

owned by one or more 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 veterans, and the management and daily business

operations of which are controlled by one or more veterans.

§ 2202.  Regulations.

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 and may

promulgate regulations establishing detailed definitions of the

words and phrases defined in section 2201 (relating to

definitions) using, in addition to the criteria set forth in

section 2201, other criteria as it deems appropriate, including

the number of employees and the dollar volume of business.

State-affiliated entities shall implement the policy for their

procurement programs.

§ 2203.  Veteran-owned small business participation goals.

Each purchasing agency shall have an annual goal of not less

than 5% participation by veteran-owned small businesses in all

contracts entered into by the purchasing agency. The

participation goal shall apply to the overall dollar amount

expended by the purchasing agency with respect to the contracts.

§ 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 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

veteran-owned small businesses for the purpose of encouraging

procurement from veteran-owned small businesses.

(4)  Include veteran-owned small businesses on

solicitation mailing lists.

(5)  Assure that veteran-owned small businesses are

solicited on each procurement for which the businesses may be

suited.

(6)  Develop special training programs to assist veteran-

owned small businesses in learning how to do business with

Commonwealth agencies.

(7)  Assure that participation by 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).

(8)  Certify businesses that have been identified as

veteran-owned small business.

§ 2205.  Bonding and progress payments.

(a)  Bonding.--Notwithstanding other provisions 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

veteran-owned small businesses.

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

businesses.

§ 2206.  (Reserved).

§ 2207.  Report to standing committees.

Each purchasing agency shall annually, before October 1,

report in writing to the Veterans Affairs and Emergency

Preparedness Committee of the Senate and the Veterans Affairs

and Emergency Preparedness Committee of the House of

Representatives concerning total contract dollars awarded to

veteran-owned small businesses by the purchasing agency during

the preceding fiscal year. The report shall include a list of

all veteran-owned small businesses that participated as

contractors, subcontractors or suppliers during the preceding

fiscal year. The report shall include a list of all veteran work

force utilization businesses during the preceding fiscal year.

The purchasing agencies shall submit the initial reports to the

standing committees under this section on or before October 1,

2011, or on or before October 1 at least 12 months after the

effective date of this section, whichever is later.

§ 2208.  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.