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PRINTER'S NO. 949
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
754
Session of
2019
INTRODUCED BY BARTOLOTTA, STREET, COSTA, YUDICHAK, MENSCH,
STEFANO AND J. WARD, JUNE 11, 2019
REFERRED TO STATE GOVERNMENT, JUNE 11, 2019
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in small and disadvantaged businesses, further
providing for policy, for definitions, for regulations, for
duties of department, for bonding and progress payments and
for report to General Assembly and providing for small
business reserve program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The heading of Chapter 21 and section 2101 of
Title 62 of the Pennsylvania Consolidated Statutes are amended
to read:
CHAPTER 21
SMALL AND [DISADVANTAGED] DIVERSE BUSINESSES
§ 2101. Policy.
The policy of this Commonwealth is to assist small and
[disadvantaged] diverse businesses in learning how to do
business with Commonwealth agencies. The department shall
implement this policy in accordance with regulations promulgated
by the department.
Section 2. The definition of "disadvantaged business" in
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section 2102 of Title 62 is amended and the section is amended
by adding definitions to read:
§ 2102. Definitions.
Subject to section 2103 (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:
["Disadvantaged business." A small business which is owned
or controlled by a majority of persons, not limited to members
of minority groups, who have been deprived of the opportunity to
develop and maintain a competitive position in the economy
because of social disadvantages.]
"Diverse and disadvantaged businesses." As defined in
section 2201 (relating to definitions).
"Diverse business." A department-verified business,
including, but not limited to, a service-disabled veteran-owned
business, veteran-owned business, women-owned business or
minority-owned business which has in place a diversity plan for
vendors and subcontractors.
"Service-disabled." As defined in 51 Pa.C.S. § 9601
(relating to definitions).
"Service-disabled veteran-owned small business." As defined
in 51 Pa.C.S. § 9601.
* * *
"Small diverse business." A business which is both a diverse
business and a small business.
"Veteran." As defined in 51 Pa.C.S. § 9601.
"Veteran-owned small business." As defined in 51 Pa.C.S. §
9601.
Section 3. Sections 2103, 2104, 2105 and 2107 of Title 62
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are amended to read:
§ 2103. Regulations.
The department shall establish policy for executive 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 2102]
sections 2102 (relating to d efinitions ) and 2201 (relating to
definitions) using, in addition to the criteria set forth in
[section 2102] sections 2102 and 2201, other criteria as it
deems appropriate, including the number of employees and the
dollar volume of business. The policy shall give priority for
procurement to small diverse businesses. However, if there are
no small diverse businesses available to fulfill the procurement
requirements or the bids submitted by small diverse businesses
exceed an amount that is 125% of the budgeted amount, the
department may solicit bids from diverse and disadvantaged
business as defined and verified by the department in accordance
with sections 2201 and 2202 (relating to woman-owned business,
minority-owned business or veteran-owned business). State-
affiliated entities shall implement the policy for their
procurement programs.
§ 2104. 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 small [and
disadvantaged] diverse 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 small [and
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disadvantaged] diverse businesses in learning how to do
business with Commonwealth agencies.
(3) Compile, maintain and make available source lists of
small [and disadvantaged] diverse businesses and d iverse and
disadvantaged businesses for the purpose of encouraging
procurement from small diverse businesses or diverse and
disadvantaged businesses.
(4) Include small diverse businesses and diverse and
disadvantaged businesses on solicitation mailing lists.
(5) Assure that small [and disadvantaged] diverse
businesses are solicited on each procurement for which the
businesses may be suited. If there are not any small diverse
businesses suited then open the solicitation to diverse
businesses.
(6) Develop special training programs to assist small
[and disadvantaged] diverse businesses in learning how to do
business with Commonwealth agencies.
(7) Assure that the participation by diverse 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
section 513 (relating to competitive sealed proposals).
(8) Verify the current certification of a business
seeking diverse verification of diverse businesses.
§ 2105. Bonding and progress payments.
(a) Bonding.--Notwithstanding other provisions of this part,
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 small [and disadvantaged] diverse businesses.
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(b) Progress payments.--A purchasing agency may make special
provisions for progress payments as it deems reasonably
necessary to encourage procurement from small [and
disadvantaged] diverse businesses.
(c) Exemption.--For contracts under $25,000, a small diverse
business shall be exempt from the bonding requirements under
subsection (a).
§ 2107. Report to General Assembly.
The department shall annually, before October 1, report in
writing to the General Assembly concerning the awarding of
contracts to small [and disadvantaged] diverse businesses and
diverse businesses during the preceding fiscal year on the
actual utilization of small diverse businesses or diverse
businesses as contractors and subcontractors. The report shall
include a list of all small [and disadvantaged] diverse
businesses or diverse businesses that participated as
contractors, subcontractors or suppliers during the preceding
fiscal year. [for contracts if the number of contractors under a
previously existing contract for the same supply or service is
reduced to a single contractor or reduced by more than 50% of
the number existing on September 30, 2003. In preparing the
report, the department shall verify whether commitments made to
small and disadvantaged businesses in the course of awarding
these contracts have been maintained.]
Section 4. Title 62 is amended by adding a section to read:
§ 2109. Small business reserve program.
The department shall establish a small business reserve
program for the purpose of increasing economic opportunities for
small businesses and affording small businesses, including small
diverse businesses, veteran-owned businesses and service-
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disabled veteran-owned businesses, the opportunity to bid on
Commonwealth agency contracts without competing with larger
businesses.
Section 5. This act shall take effect in 60 days.
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