1Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2Statutes, in small and disadvantaged businesses, further
3providing for policy, for definitions, for duties of
4department, for bonding and progress payments and for report
5to General Assembly.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 2101 of Title 62 of the Pennsylvania
9Consolidated Statutes is amended to read:

10§ 2101. Policy.

11The policy of this Commonwealth is to assist small, veteran-
12owned and disadvantaged businesses in learning how to do
13business with Commonwealth agencies. The department shall
14implement this policy in accordance with regulations promulgated
15by the department.

16Section 2. Section 2102 of Title 62 is amended by adding

1definitions to read:

2§ 2102. Definitions.

3Subject to section 2103 (relating to regulations), the
4following words and phrases when used in this chapter shall have
5the meanings given to them in this section unless the context
6clearly indicates otherwise:

7* * *

8"Veteran." An individual who performed active service in the 
9armed forces of the United States, including the reserve 
10components and the National Guard, who was discharged from the 
11active service under honorable conditions and who is domiciled 
12in this Commonwealth.

13"Veteran-owned business." A business not less than 51% of 
14which is owned by one or more veterans, or in the case of any 
15publicly owned business, not less than 51% of the stock of which 
16is owned by one or more veterans, and the management and daily 
17business operations of which are controlled by one or more 
18veterans.

19Section 3. Sections 2104, 2105 and 2107 of Title 62 are
20amended to read:

21§ 2104. Duties of department.

22The department shall have the following duties:

23(1) Where feasible, provide appropriate staff who shall
24be responsible to the department and who shall serve within
25designated Commonwealth agencies to assist small, veteran-
26owned and disadvantaged businesses in this Commonwealth in
27learning how to do business with Commonwealth agencies.

28(2) Give special publicity to procurement procedures and
29issue special publications designed to assist small, veteran-
30owned and disadvantaged businesses in learning how to do

1business with Commonwealth agencies.

2(3) Compile, maintain and make available source lists of
3small, veteran-owned and disadvantaged businesses for the
4purpose of encouraging procurement from small, veteran-owned
5and disadvantaged businesses.

6(4) Include small, veteran-owned and disadvantaged
7businesses on solicitation mailing lists.

8(5) Assure that small, veteran-owned and disadvantaged
9businesses are solicited on each procurement for which the
10businesses may be suited.

11(6) Develop special training programs to assist small, 
12veteran-owned and disadvantaged businesses in learning how to
13do business with Commonwealth agencies.

14§ 2105. Bonding and progress payments.

15(a) Bonding.--Notwithstanding other provisions of this part,
16a purchasing agency may reduce the level or change the types of
17bonding normally required or accept alternative forms of
18security to the extent reasonably necessary to encourage
19procurement from small, veteran-owned and disadvantaged
20businesses.

21(b) Progress payments.--A purchasing agency may make special
22provisions for progress payments as it deems reasonably
23necessary to encourage procurement from small, veteran-owned and
24disadvantaged businesses.

25§ 2107. Report to General Assembly.

26The department shall annually, before October 1, report in
27writing to the General Assembly concerning the awarding of
28contracts to small, veteran-owned and disadvantaged businesses
29during the preceding fiscal year. The report shall include a
30list of all small, veteran-owned and disadvantaged businesses

1that participated as contractors, subcontractors or suppliers
2during the preceding fiscal year for contracts if the number of
3contractors under a previously existing contract for the same
4supply or service is reduced to a single contractor or reduced
5by more than 50% of the number existing on September 30, 2003.
6In preparing the report, the department shall verify whether
7commitments made to small, veteran-owned and disadvantaged
8businesses in the course of awarding these contracts have been
9maintained.

10Section 4. This act shall take effect in 60 days.