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PRIOR PRINTER'S NO. 2252
PRINTER'S NO. 2974
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1600
Session of
2015
INTRODUCED BY MACKENZIE, ACOSTA, BARRAR, BIZZARRO, CORBIN,
D. COSTA, DRISCOLL, FEE, GROVE, A. HARRIS, JOZWIAK, KINSEY,
KNOWLES, MALONEY, McNEILL, MILLARD, MURT, NEILSON, READSHAW,
ROZZI, SCHLOSSBERG, SCHWEYER, THOMAS, WARD, WARNER, WHITE,
COHEN, GILLEN, ROTHMAN, BRADFORD AND KORTZ,
SEPTEMBER 29, 2015
AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 16, 2016
AN ACT
Amending Titles TITLE 51 (Military Affairs) and 74
(Transportation) of the Pennsylvania Consolidated Statutes,
in veteran-owned small businesses, further providing for
definitions, AND for regulations, for participation goal, for
duties of Department of General Services, for bonding and
progress payments and for reports; AND providing for business
fee exemption; making editorial changes; in administrative
practice and procedure, further providing for diverse
business participation; and providing for the status of a
veteran-owned small business and a service-disabled veteran-
owned small business.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 96 of Title 51 of the Pennsylvania
Consolidated Statutes is amended by adding a subchapter heading
to read:
SUBCHAPTER A
PRELIMINARY PROVISIONS
Section 2. Section 9601 of Title 51 is amended to read:
§ 9601. Definitions.
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Subject to section 9602 (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:
"Commonwealth agency." As defined in 62 Pa.C.S. § 103
(relating to definitions).
"Executive agency." As defined in 62 Pa.C.S. § 103 (relating
to definitions).
"Purchasing agency." As defined in 62 Pa.C.S. § 103
(relating to definitions).
["Service-disabled." Being in possession of:
(1) a disability rating letter issued by the United
States Department of Veterans Affairs; or
(2) a disability determination from the United States
Department of Defense.
"Service-disabled veteran-owned small business." A small
business owned and controlled by:
(1) a service-disabled veteran or veterans; or
(2) if approved by the Department of General Services, a
surviving spouse or permanent caregiver of a service-disabled
veteran.]
"Small business." As defined in 62 Pa.C.S. § 2102 (relating
to definitions).
"State-affiliated entity." As defined in 62 Pa.C.S. § 103
(relating to definitions).
"Veteran." [An individual 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.
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(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.] An individual
who served in the United States Armed Forces, including a
reserve component or the National Guard, and who was
discharged or released from service under conditions other
than dishonorable.
"Veteran-owned small business." A small business owned and
controlled by a veteran or veterans.
Section 3. Chapter 96 of Title 51 is amended by adding a
subchapter heading to read:
SUBCHAPTER B
PARTICIPATION
Section 4. Sections 9602, 9603, 9604, 9605 and 9607 of Title
51 are amended to read: SECTION 9602 OF TITLE 51 IS AMENDED TO
READ:
§ 9602. Regulations.
(a) Promulgation.--The Department of General Services shall
establish policy in accordance with this [chapter] subchapter
for executive agencies and independent agencies and may, in
consultation with the department, promulgate regulations
establishing detailed definitions of the words and phrases
defined in section 9601 (relating to definitions) using, in
addition to the criteria set forth in section 9601, other
criteria as it deems appropriate, including the number of
employees and the dollar volume of business.
(b) Implementation.--State-affiliated entities shall
implement the policy for their procurement programs.
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(c) Antifraud provisions.--The Department of General
Services shall establish policy and promulgate regulations
establishing antifraud provisions to deter and penalize
businesses that are not owned by [those who are service-disabled
or by] veterans but who falsely claim that they are in order to
receive any action authorized by this [chapter] subchapter.
(d) Notice.--Notice of the antifraud provisions and an
e-mail address and telephone number to report violations of the
antifraud provisions to the Department of General Services shall
be included, if feasible, in any application to be certified or
to be included in any source list authorized by this [chapter]
subchapter. The Department of General Services shall include in
its annual reports to the General Assembly information about the
number of businesses penalized for violating antifraud
provisions.
§ 9603. Participation goal.
A Statewide annual goal of not less than 3% participation by
veteran-owned small businesses[, including service-disabled
veteran-owned small businesses,] is established. The
participation goal shall apply to the total value of all
contracts available to small businesses in each fiscal year.
§ 9604. Duties of Department of General Services.
The Department of General Services, with the assistance of
the department, shall have the following duties:
(1) If feasible, provide appropriate staff, who shall be
responsible to the Department of General Services and who
shall serve within designated Commonwealth agencies to assist
veteran-owned small businesses [and service-disabled veteran-
owned small businesses] in this Commonwealth in learning how
to do business with Commonwealth agencies.
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(2) Give special publicity to procurement procedures and
issue special publications designed to assist veteran-owned
small businesses [and service-disabled 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 [and service-disabled veteran-
owned small businesses] for the purpose of encouraging
procurement from veteran-owned small businesses.
(4) Include veteran-owned small businesses [and service-
disabled veteran-owned small businesses] on solicitation
mailing lists.
(5) Assure that veteran-owned small businesses [and
service-disabled veteran-owned small businesses] are
solicited on procurements for which the businesses may be
suited.
(6) Develop special training programs to assist veteran-
owned small businesses [and service-disabled veteran-owned
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
businesses] is, if appropriate, factored into the evaluation
of proposals for supplies, services or construction when a
purchasing agency uses the competitive sealed proposals
method under 62 Pa.C.S. § 513 (relating to competitive sealed
proposals).
(8) Verify the current certification of businesses
claiming to be certified as veteran-owned small businesses
[and service-disabled veteran-owned small businesses].
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§ 9605. Bonding and progress payments.
(a) Bonding.--Notwithstanding 62 Pa.C.S. Pt. I (relating to
Commonwealth Procurement Code):
(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 veteran-
owned small businesses].
(2) For contracts under $25,000, veteran-owned small
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].
§ 9607. Reports.
(a) Report to Department of General Services.--By August 15,
2013, and each August 15 thereafter, each executive agency 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.--
(1) The Department of General Services 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
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Emergency Preparedness Committee of the House of
Representatives the actual utilization, Statewide and by each
purchasing agency, of veteran-owned small businesses [and
service-disabled veteran-owned small businesses] during the
preceding fiscal year.
(2) The report shall include a list of all veteran-owned
small businesses [and service-disabled veteran-owned small
businesses] that participated as contractors, subcontractors,
suppliers and professional service providers during the
preceding fiscal year.
(3) Initial reports under this subsection shall be
submitted to the standing committees by October 1, 2013.
Section 5. Chapter 96 of Title 51 is amended by adding a
subchapter to read:
SUBCHAPTER C
BUSINESS FEE EXEMPTION
Sec.
9610. Definitions.
9611. Exemption.
§ 9610. Definitions.
As used in this subchapter, the following words and phrases
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business fee." A fee required to be paid to the
Commonwealth or an instrumentality of the Commonwealth for
starting or opening a business within this Commonwealth. THE
TERM DOES NOT INCLUDE A FEE FOR MAINTAINING LICENSURE OR OTHER
REQUIREMENT FOR CONTINUING TO OPERATE A BUSINESS.
§ 9611. Exemption.
(a) Payment.--A veteran-owned small business shall be exempt
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from the payment of a business fee.
(b) Proof.--A veteran must provide the department with proof
of the veteran's status using any of the following:
(1) A copy of a Federal DD-214 form.
(2) A copy of a Federal NGB-22 form.
(3) A valid Federal Veterans' Administration card.
(4) An identification card issued under 75 Pa.C.S. §
1510(a.1) (relating to issuance and content of driver's
license).
(c) Status.--The Department of State, in consultation with
the department, shall OTHER COMMONWEALTH AGENCIES, MAY determine
an applicant's status as a veteran in accordance with this
section.
(d) Offenses.--
(1) A person who fraudulently obtains a business fee
exemption commits a misdemeanor of the third degree.
(2) A person assigning, transferring or attempting to
assign or transfer a business fee exemption or using or
attempting to use a business fee exemption contrary to this
section commits a misdemeanor of the third degree.
(e) Reporting.--The Department of State shall annually
determine the total number of business fee exemptions issued
under this section.
Section 6. The definitions of "diverse business" and
"service-disabled veteran-owned small business" in section
303(b) of Title 74 are amended to read:
§ 303. Diverse business participation.
* * *
(b) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
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subsection:
* * *
"Diverse business." A disadvantaged business, minority-owned
or women-owned business [or service-disabled veteran-owned] or
veteran-owned small business that has been certified by a third-
party certifying organization.
* * *
["Service-disabled veteran-owned small business." As defined
in 51 Pa.C.S. § 9601 (relating to definitions).]
* * *
Section 7 6. The amendment of 51 Pa.C.S. §§ 9601, 9602,
9603, 9604, 9605 and 9607 and the definitions of "diverse
business" and "service-disabled veteran-owned small business" in
74 Pa.C.S. § 303(b) AND 9602 shall not affect nor impair the
status of any of the following under 51 Pa.C.S. Ch. 96 or 74
Pa.C.S.:
(1) A veteran-owned small business.
(2) A service-disabled veteran-owned small business.
Section 8 7. This act shall take effect in 60 days.
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