HOUSE AMENDED

 

PRIOR PRINTER'S NOS. 641, 1978, 2002, 2408

PRINTER'S NO.  2454

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

623

Session of

2011

  

  

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

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, OCTOBER 2, 2012   

  

  

  

AN ACT

  

1

Amending Title 62 (Procurement) 51 (Military Affairs) of the

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2

Pennsylvania Consolidated Statutes, providing for contracting

3

with veteran-owned small businesses; and imposing duties on

4

the Department of General Services and other Commonwealth

5

purchasing agencies.

6

The General Assembly of the Commonwealth of Pennsylvania

7

hereby enacts as follows:

8

Section 1.  Title 62 51 of the Pennsylvania Consolidated

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9

Statutes is amended by adding a chapter to read:

10

CHAPTER 22

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11

VETERAN-OWNED SMALL BUSINESSES

12

Sec.

13

2201.  Definitions.

14

2202.  Regulations.

15

2203.  Veteran-owned small business participation goals.

16

2204.  Duties of department.

17

2205.  Bonding and progress payments.

 


1

2206.  (Reserved).

2

2207.   Reports.

3

2208.  Compliance with Federal requirements.

4

§ 2201.  Definitions.

5

Subject to section 2202 (relating to regulations), the

6

following words and phrases when used in this chapter shall have

7

the meanings given to them in this section unless the context

8

clearly indicates otherwise:

9

"Service disabled."  A veteran who possesses either a

10

disability rating letter issued by the United States Department

11

of Veterans Affairs or a disability determination from the

12

United States Department of Defense.

13

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

14

business owned and controlled by a service-disabled veteran or

15

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

16

a surviving spouse or permanent caregiver of a service-disabled

17

veteran.

18

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

19

limitation on revenue or number of employees established by the

20

Department of General Services for designation as a small

21

business.

22

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

23

States Armed Forces, including any of the following:

24

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

25

discharged or released from the service under honorable

26

conditions.

27

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

28

completed an initial term of enlistment or qualifying period

29

of service.

30

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

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1

disabled in the line of duty during training.

2

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

3

controlled by a veteran or veterans.

4

§ 2202.  Regulations.

5

The department shall establish policy in accordance with this

6

chapter for executive agencies and independent agencies and may

7

promulgate regulations establishing detailed definitions of the

8

words and phrases defined in section 2201 (relating to

9

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

10

section 2201, other criteria as it deems appropriate, including

11

the number of employees and the dollar volume of business.

12

State-affiliated entities shall implement the policy for their

13

procurement programs.

14

§ 2203.  Veteran-owned small business participation goals.

15

Each purchasing agency shall have an annual goal of not less

16

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

17

contracts entered into by the purchasing agency. The

18

participation goal shall apply to the overall dollar amount

19

expended by the purchasing agency with respect to the contracts.

20

§ 2204.  Duties of department.

21

The department shall have the following duties:

22

(1)  Where feasible, provide appropriate staff who shall

23

be responsible to the department and who shall serve within

24

designated Commonwealth agencies to assist veteran-owned 

25

small businesses and service-disabled veteran-owned small

26

businesses in this Commonwealth in learning how to do

27

business with Commonwealth agencies.

28

(2)  Give special publicity to procurement procedures and

29

issue special publications designed to assist veteran-owned 

30

small businesses and service-disabled veteran-owned small

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1

businesses in learning how to do business with Commonwealth

2

agencies.

3

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

4

veteran-owned small businesses and service-disabled

5

veteran-owned small businesses for the purpose of encouraging

6

procurement from veteran-owned small businesses.

7

(4)  Include veteran-owned small businesses and

8

service-disabled veteran-owned small businesses on

9

solicitation mailing lists.

10

(5)  Assure that veteran-owned small businesses and

11

service-disabled veteran-owned small businesses are solicited

12

on each procurement for which the businesses may be suited.

13

(6)  Develop special training programs to assist veteran-

14

owned small businesses and service-disabled veteran-owned

15

small businesses in learning how to do business with

16

Commonwealth agencies.

17

(7)  Assure that participation by veteran-owned small 

18

businesses and service-disabled veteran-owned small

19

businesses is appropriately factored into the evaluation of

20

proposals for supplies, services or construction when a

21

purchasing agency uses the competitive sealed proposals

22

method under section 513 (relating to competitive sealed

23

proposals).

24

(8)  Certify businesses that have been identified as

25

veteran-owned small businesses and service-disabled

26

veteran-owned small businesses.

27

§ 2205.  Bonding and progress payments.

28

(a)  Bonding.--Notwithstanding other provisions of this part:

29

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

30

agency may reduce the level or change the types of bonding

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1

normally required or accept alternative forms of security to

2

the extent reasonably necessary to encourage procurement from

3

veteran-owned small businesses and service-disabled

4

veteran-owned small businesses.

5

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

6

businesses and service-disabled veteran-owned small

7

businesses shall be exempt from any bonding requirements.

8

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

9

provisions for progress payments as it deems reasonably

10

necessary to encourage procurement from veteran-owned small 

11

businesses and service-disabled veteran-owned small businesses.

12

§ 2206.  (Reserved).

13

§ 2207.  Reports.

14

(a)  Report to Department of General Services.--By August 15,

15

2013, and each August 15 thereafter, each executive and

16

independent agency shall submit an annual report for the period

17

of July 1 to June 30 to the Department of General Services on

18

actual utilization of veteran-owned small businesses and

19

service-disabled veteran-owned small businesses as contractors,

20

subcontractors, suppliers and professional service providers.

21

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

22

State-affiliated entity shall annually, before October 1, report

23

in writing to the Veterans Affairs and Emergency Preparedness

24

Committee of the Senate and the Veterans Affairs and Emergency

25

Preparedness Committee of the House of Representatives

26

concerning total contract dollars awarded to veteran-owned small

27

businesses and service-disabled veteran-owned small businesses 

28

by the purchasing agency during the preceding fiscal year. The

29

report shall include a list of all veteran-owned small

30

businesses and service-disabled veteran-owned small businesses

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1

that participated as contractors, subcontractors or suppliers

2

during the preceding fiscal year. The department and State-

3

affiliated entity initial reports shall be submitted to the

4

standing committees under this section on or before October 1, 

5

2012, or on or before October 1 at least 12 months after the

6

effective date of this section, whichever is later.

7

§ 2208.  Compliance with Federal requirements.

8

If a procurement involves the expenditure of Federal

9

assistance or contract funds, the purchasing agency shall comply

10

with Federal law and authorized regulations that are mandatorily

11

applicable and that are not presently reflected in this part.

12

CHAPTER 96

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13

VETERAN-OWNED SMALL BUSINESSES

14

Sec.

15

9601.  Definitions.

16

9602.  Regulations.

17

9603.  Participation goal.

18

9604.  Duties of Department of General Services.

19

9605.  Bonding and progress payments.

20

9606.  (Reserved).

21

9607.  Reports.

22

9608.  Compliance with Federal requirements.

23

§ 9601.  Definitions.

24

Subject to section 9602 (relating to regulations), the

25

following words and phrases when used in this chapter shall have

26

the meanings given to them in this section unless the context

27

clearly indicates otherwise:

28

"Commonwealth agency."  As defined in 62 Pa.C.S. § 103

29

(relating to definitions).

30

"Executive agency."  As defined in 62 Pa.C.S. § 103.

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1

"Purchasing agency."  As defined in 62 Pa.C.S. § 103.

2

"Service-disabled."  Being in possession of:

3

(1)  a disability rating letter issued by the United

4

States Department of Veterans Affairs; or

5

(2)  a disability determination from the United States

6

Department of Defense.

7

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

8

business owned and controlled by:

9

(1)  a service-disabled veteran or veterans; or

10

(2)  if approved by the Department of General Services, a

11

surviving spouse or permanent caregiver of a service-disabled

12

veteran.

13

"Small business."  As defined in 62 Pa.C.S. § 2102 (relating

14

to definitions).

15

"State-affiliated entity."  As defined in 62 Pa.C.S. § 103.

16

"Veteran."  An individual who served on active duty in the

17

United States Armed Forces, including any of the following:

18

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

19

discharged or released from the service under honorable

20

conditions.

21

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

22

completed an initial term of enlistment or qualifying period

23

of service.

24

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

25

disabled in the line of duty during training.

26

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

27

controlled by a veteran or veterans.

28

§ 9602.  Regulations.

29

(a)  Promulgation.--The Department of General Services shall

30

establish policy in accordance with this chapter for executive

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1

agencies and independent agencies and may, in consultation with

2

the department, promulgate regulations establishing detailed

3

definitions of the words and phrases defined in section 9601

4

(relating to definitions) using, in addition to the criteria set

5

forth in section 9601, other criteria as it deems appropriate,

6

including the number of employees and the dollar volume of

7

business.

8

(b)  Implementation.--State-affiliated entities shall

9

implement the policy for their procurement programs.

10

(c)  Antifraud provisions.--The Department of General

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11

Services shall establish policy and promulgate regulations

12

establishing antifraud provisions to deter and penalize

13

businesses that are not owned by those who are service-disabled

14

or by veterans but who falsely claim that they are in order to

15

receive any action authorized by this chapter.

16

(d)  Notice.--Notice of the antifraud provisions and an e-

17

mail address and telephone number to report violations of the

18

antifraud provisions to the Department of General Services shall

19

be included, if feasible, in any application to be certified or

20

to be included in any source list authorized by this chapter.

21

The Department of General Services shall include in its annual

22

reports to the General Assembly information about the number of

23

businesses penalized for violating antifraud provisions.

24

§ 9603.  Participation goal.

25

A Statewide annual goal of not less than 3% participation by

26

veteran-owned small businesses, including service-disabled

27

veteran-owned small businesses, is established. The

28

participation goal shall apply to the total value of all

29

contracts available to small businesses in each fiscal year.

30

§ 9604.  Duties of Department of General Services.

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1

The Department of General Services, with the assistance of

2

the department, shall have the following duties:

3

(1)  If feasible, provide appropriate staff, who shall be

4

responsible to the Department of General Services and who

5

shall serve within designated Commonwealth agencies to assist

6

veteran-owned small businesses and service-disabled veteran-

7

owned small businesses in this Commonwealth in learning how

8

to do business with Commonwealth agencies.

9

(2)  Give special publicity to procurement procedures and

10

issue special publications designed to assist veteran-owned

11

small businesses and service-disabled veteran-owned small

12

businesses in learning how to do business with Commonwealth

13

agencies.

14

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

15

veteran-owned small businesses and service-disabled veteran-

16

owned small businesses for the purpose of encouraging

17

procurement from veteran-owned small businesses.

18

(4)  Include veteran-owned small businesses and service-

19

disabled veteran-owned small businesses on solicitation

20

mailing lists.

21

(5)  Assure that veteran-owned small businesses and

22

service-disabled veteran-owned small businesses are solicited

23

on procurements for which the businesses may be suited.

24

(6)  Develop special training programs to assist veteran-

25

owned small businesses and service-disabled veteran-owned

26

small businesses in learning how to do business with

27

Commonwealth agencies.

28

(7)  Assure that participation by veteran-owned small

29

businesses and service-disabled veteran-owned small

30

businesses is, if appropriate, factored into the evaluation

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1

of proposals for supplies, services or construction when a

2

purchasing agency uses the competitive sealed proposals

3

method under 62 Pa.C.S. § 513 (relating to competitive sealed

4

proposals).

5

(8)  Verify the current certification of businesses

6

claiming to be certified as veteran-owned small businesses

7

and service-disabled veteran-owned small businesses.

8

§ 9605.  Bonding and progress payments.

9

(a)  Bonding.--Notwithstanding 62 Pa.C.S. Pt. I (relating to

10

Commonwealth Procurement Code):

11

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

12

agency may reduce the level or change the types of bonding

13

normally required or accept alternative forms of security to

14

the extent reasonably necessary to encourage procurement from

15

veteran-owned small businesses and service-disabled veteran-

16

owned small businesses.

17

(2)  For contracts under $25,000, veteran-owned small

18

businesses and service-disabled veteran-owned small

19

businesses shall be exempt from any bonding requirements.

20

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

21

provisions for progress payments as it deems reasonably

22

necessary to encourage procurement from veteran-owned small

23

businesses and service-disabled veteran-owned small businesses.

24

§ 9606.  (Reserved).

25

§ 9607.  Reports.

26

(a)  Report to Department of General Services.--By August 15,

27

2013, and each August 15 thereafter, each executive agency and

28

independent agency shall submit an annual report for the period

29

of July 1 to June 30 to the Department of General Services on

30

actual utilization of veteran-owned small businesses and

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1

service-disabled veteran-owned small businesses as contractors,

2

subcontractors, suppliers and professional service providers.

3

(b)  Report to standing committees.--

4

(1)  The Department of General Services and each State-

5

affiliated entity shall annually, before October 1, report in

6

writing to the Veterans Affairs and Emergency Preparedness

7

Committee of the Senate and the Veterans Affairs and

8

Emergency Preparedness Committee of the House of

9

Representatives the actual utilization, Statewide and by each

10

purchasing agency, of veteran-owned small businesses and

11

service-disabled veteran-owned small businesses during the

12

preceding fiscal year.

13

(2)  The report shall include a list of all veteran-owned

14

small businesses and service-disabled veteran-owned small

15

businesses that participated as contractors, subcontractors,

16

suppliers and professional service providers during the

17

preceding fiscal year.

18

(3)  Initial reports under this subsection shall be

19

submitted to the standing committees by October 1, 2013.

20

§ 9608.  Compliance with Federal requirements.

21

If a procurement involves the expenditure of Federal

22

assistance or contract funds, the purchasing agency shall comply

23

with Federal law and authorized regulations that are mandatorily

24

applicable and that are not presently reflected in 62 Pa.C.S.

25

Pt. I (relating to Commonwealth Procurement Code).

26

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

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