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

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, MARCH 5, 2012   

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 Reports.

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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

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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.

"Service disabled."  A veteran who possesses either a

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disability rating letter issued by the United States Department

of Veterans Affairs or a disability determination from the

United States Department of Defense.

"Service-disabled veteran-owned business."  A small business

owned and controlled by a service-disabled veteran or veterans

or, if approved by the Department of General Services, a

surviving spouse or permanent caregiver of a service-disabled

veteran.

"Small business."  A business that does not exceed the

limitation on revenue or number of employees established by the

Department of General Services for designation as a small

business.

"Veteran."  A person who served on active duty in the United

States Armed Forces, including any of the following:

(1)  A reservist or member of the National Guard who was

discharged or released from the service under honorable

conditions.

(2)  A reservist or member of the National Guard who

completed an initial term of enlistment or qualifying period

of service.

(3)  A reservist or member of the National Guard who was

disabled in the line of duty during training.

"Veteran-owned small business."  A business owned and

controlled by a veteran or veterans.

§ 2202.  Regulations.

The department shall establish policy in accordance with this

chapter for executive agencies and those independent agencies

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for which the department acts as purchasing agency and may

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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 and service-disabled veteran-owned small

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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 and service-disabled veteran-owned small

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businesses in learning how to do business with Commonwealth

agencies.

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

veteran-owned small businesses and service-disabled

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veteran-owned small businesses for the purpose of encouraging

procurement from veteran-owned small businesses.

(4)  Include veteran-owned small businesses and

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service-disabled veteran-owned small businesses on

solicitation mailing lists.

(5)  Assure that veteran-owned small businesses and

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service-disabled 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 and service-disabled veteran-owned

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small businesses in learning how to do business with

Commonwealth agencies.

(7)  Assure that participation by veteran-owned small 

businesses and service-disabled veteran-owned small

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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 businesses and service-disabled

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veteran-owned small businesses.

§ 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 and service-disabled

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veteran-owned small businesses.

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

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businesses shall be exempt from the bonding requirements of

this part.

(2)  For contracts under $50,000, veteran-owned small

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businesses and service-disabled veteran-owned small

businesses shall be exempt from any bonding requirements.

(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 and service-disabled veteran-owned small businesses.

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§ 2206.  (Reserved).

§ 2207.  Report to standing committees Reports.

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Each purchasing agency (a)  Report to Department of General

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Services.--By August 15, 2013, and each August 15 thereafter,

each executive and independent agency shall submit an annual

report for the period of July 1 to June 30 to the Department of

General Services on actual utilization of veteran-owned small

businesses and service-disabled veteran-owned small businesses

as contractors, subcontractors, suppliers and professional

service providers.

(b)  Report to standing committees.--The department and each

State-affiliated entity 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 and service-disabled veteran-owned small businesses 

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by the purchasing agency during the preceding fiscal year. The

report shall include a list of all veteran-owned small

businesses and service-disabled veteran-owned small businesses  

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that participated as contractors, subcontractors or suppliers

during the preceding fiscal year. The report shall include a

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list of all veteran work force utilization businesses during the

preceding fiscal year. The purchasing agencies shall submit the

initial reports The department and State-affiliated entity

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initial reports shall be submitted 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.