Regular Session 2021-2022 House Bill 1712 P.N. 2731

PRIOR PRINTER'S NO. 1941

PRINTER'S NO. 2731

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1712

Session of

2021

INTRODUCED BY STRUZZI, RIGBY, MASSER, DAVANZO, SMITH, CIRESI,

SAINATO, COOK, OWLETT, E. NELSON, O'NEAL, LEWIS DELROSSO,

JAMES AND C. WILLIAMS, JULY 8, 2021

AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF

REPRESENTATIVES, AS AMENDED, FEBRUARY 9, 2022

AN ACT

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, in diverse and disadvantaged businesses, further

providing for definitions, for woman-owned business,

minority-owned business or veteran-owned business and

providing for HUB zone business procurement.

AMENDING TITLE 62 (PROCUREMENT) OF THE PENNSYLVANIA CONSOLIDATED

STATUTES, IN DIVERSE AND DISADVANTAGED BUSINESSES, FURTHER

PROVIDING FOR DEFINITIONS AND FOR WOMAN-OWNED BUSINESS,

MINORITY-OWNED BUSINESS OR VETERAN-OWNED BUSINESS AND

ESTABLISHING THE HUB ZONE BUSINESS PROCUREMENT PROGRAM.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "diverse and disadvantaged

businesses" in section 2201 of Title 62 of the Pennsylvania

Consolidated Statutes is amended and the section is amended by

adding definitions to read:

§ 2201. Definitions.

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:

"Diverse and disadvantaged businesses." A woman-owned

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business, a minority-owned business [or], a veteran-owned

business or a HUB zone business.

"HUB zone." A historically under-utilized business zone.

"HUB zone business." A for-profit business located in a HUB

zone of this Commonwealth that satisfies the qualification

criteria specified at 13 CFR Pt. 126, Subpt. B (relating to

requirements to be a certified HUBZone small business concern).

* * *

Section 2. Section 2202 heading and (c) of Title 62 are

amended to read:

§ 2202. [Woman-owned business, minority-owned business or

veteran-owned business] Diverse and disadvantaged

businesses.

* * *

available source lists of businesses verified by the department

as a diverse or disadvantaged business for the purpose of

encouraging procurement from those businesses and for the

purpose of complying with section 2203 (relating to HUB zone

business procurement).

* * *

Section 3. Title 62 is amended by adding a section to read:

§ 2203. HUB zone business procurement.

Within six months of the effective date of this section, each

Commonwealth agency shall ensure that at least 40% of the dollar

amount of all contracts entered into by the Commonwealth agency

are awarded to HUB zone businesses.

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

SECTION 1. THE DEFINITION OF "DIVERSE AND DISADVANTAGED

BUSINESSES" IN SECTION 2201 OF TITLE 62 OF THE PENNSYLVANIA

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CONSOLIDATED STATUTES IS AMENDED AND THE SECTION IS AMENDED BY

ADDING DEFINITIONS TO READ:

§ 2201. DEFINITIONS.

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:

"CONTRACT-SPECIFIC GOAL." A GOAL ESTABLISHED UNDER SECTION

2203 (RELATING TO HUB ZONE BUSINESS PROCUREMENT PROGRAM) FOR USE

OF HUB ZONE BUSINESSES ON A SPECIFIC PROCUREMENT.

"DIVERSE AND DISADVANTAGED BUSINESSES." A WOMAN-OWNED

BUSINESS, A MINORITY-OWNED BUSINESS [OR], A VETERAN-OWNED

BUSINESS OR A HUB ZONE BUSINESS.

"GOOD-FAITH EFFORTS." THE PRACTICES OR ACTIVITIES INSTITUTED

BY A BIDDER OR OFFEROR TO PROMOTE AND ENSURE PARTICIPATION BY

HUB ZONE BUSINESSES IN A PROCUREMENT IN ORDER TO MEET A

CONTRACT-SPECIFIC GOAL.

"HUB ZONE." A HISTORICALLY UNDERUTILIZED BUSINESS ZONE.

"HUB ZONE BUSINESS." A FOR-PROFIT BUSINESS LOCATED IN A HUB

ZONE OF THIS COMMONWEALTH THAT SATISFIES THE QUALIFICATION

CRITERIA SPECIFIED AT 13 CFR PT. 126 SUBPT. B (RELATING TO

REQUIREMENTS TO BE A CERTIFIED HUBZONE SMALL BUSINESS CONCERN).

"HUB ZONE PROGRAM." THE HUB ZONE BUSINESS PROCUREMENT

PROGRAM ESTABLISHED UNDER SECTION 2203(A).

* * *

"UTILIZATION SCHEDULE." A DOCUMENT, SUBMITTED BY A BIDDER OR

OFFEROR AS PART OF A BID OR PROPOSAL, IN WHICH A BIDDER OR

OFFEROR OUTLINES HUB ZONE BUSINESS PARTICIPATION FOR A CONTRACT

AND IDENTIFIES THE DOLLAR VALUE OR PERCENTAGES OF THE WORK TO BE

PERFORMED.

* * *

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SECTION 2. SECTION 2202 HEADING AND (C) OF TITLE 62 ARE

AMENDED TO READ:

§ 2202. [WOMAN-OWNED BUSINESS, MINORITY-OWNED BUSINESS OR

VETERAN-OWNED BUSINESS] DIVERSE AND DISADVANTAGED

BUSINESSES.

* * *

AVAILABLE SOURCE LISTS OF BUSINESSES VERIFIED BY THE DEPARTMENT

AS A DIVERSE OR DISADVANTAGED BUSINESS FOR THE PURPOSE OF

ENCOURAGING PROCUREMENT FROM THOSE BUSINESSES AND FOR THE

PURPOSE OF COMPLYING WITH SECTION 2203 (RELATING TO HUB ZONE

BUSINESS PROCUREMENT PROGRAM ) .

* * *

SECTION 3. TITLE 62 IS AMENDED BY ADDING A SECTION TO READ:

§ 2203. HUB ZONE BUSINESS PROCUREMENT PROGRAM.

(A) ESTABLISHMENT.--THE HUB ZONE BUSINESS PROCUREMENT

PROGRAM IS ESTABLISHED WITHIN THE DEPARTMENT FOR THE PURPOSE OF

ENSURING THAT EXECUTIVE AGENCIES AND INDEPENDENT AGENCIES FOR

WHICH THE DEPARTMENT ACTS AS PURCHASING AGENCY ENTER INTO

CONTRACTS WITH HUB ZONE BUSINESSES AS PROVIDED UNDER THIS

SECTION. THE DEPARTMENT SHALL ADMINISTER THE HUB ZONE PROGRAM.

THE DEPARTMENT'S DUTIES SHALL INCLUDE:

(1) FORMULATING, PROPOSING AND IMPLEMENTING POLICY AND

REGULATIONS FOR THE DEVELOPMENT, IMPLEMENTATION AND

MONITORING OF THE HUB ZONE PROGRAM.

(2) PROVIDING INFORMATION AND ASSISTANCE TO HUB ZONE

BUSINESSES RELATING TO THE HUB ZONE PROGRAM, INCLUDING

SPECIAL TRAINING PROGRAMS FOR HUB ZONE BUSINESSES TO LEARN

HOW TO DO BUSINESS WITH EXECUTIVE AGENCIES AND INDEPENDENT

AGENCIES FOR WHICH THE DEPARTMENT ACTS AS PURCHASING AGENCY

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AND SERVING AS A LIAISON TO COMMUNITY, CONTRACTORS,

PROFESSIONALS AND SUPPLIER GROUPS, ASSOCIATIONS AND

ORGANIZATIONS.

(3) ENSURING THAT HUB ZONE BUSINESSES ARE SOLICITED ON

PROCUREMENTS FOR WHICH THE HUB ZONE BUSINESSES MAY BE SUITED.

(4) ESTABLISHING CONTRACT-SPECIFIC GOALS, IN

COLLABORATION WITH THE PURCHASING AGENCY, BASED UPON RELEVANT

FACTORS, INCLUDING THE AVAILABILITY OF HUB ZONE BUSINESSES TO

MEET THE SCOPE OF WORK OF THE PROCUREMENT.

(5) IN COLLABORATION WITH THE PURCHASING AGENCY,

REVIEWING UTILIZATION SCHEDULES, CONSIDERING REQUESTS FOR

WAIVERS OF CONTRACT-SPECIFIC GOALS BASED UPON A SHOWING OF

GOOD-FAITH EFFORTS AND EVALUATING THE EXTENT TO WHICH

CONTRACT-SPECIFIC GOALS WERE ACHIEVED.

(6) MONITORING CONTRACTS TO EVALUATE COMPLIANCE WITH

CONTRACT-SPECIFIC GOALS AND COMMITMENTS.

(7) RECEIVING, REVIEWING AND ACTING UPON COMPLAINTS AND

SUGGESTIONS CONCERNING THE HUB ZONE PROGRAM.

(8) EVALUATING THE EFFECTIVENESS AND UTILITY OF THE HUB

ZONE PROGRAM.

(B) HUB ZONE BUSINESS PROCUREMENT.--THE FOLLOWING SHALL

APPLY:

(1) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS

SECTION, EACH EXECUTIVE AGENCY AND INDEPENDENT AGENCY FOR

WHICH THE DEPARTMENT ACTS AS PURCHASING AGENCY SHALL

ESTABLISH CONTRACT-SPECIFIC GOALS THAT ENSURE EACH CONTRACT

ENTERED INTO BY THE PURCHASING AGENCY GARNERS:

(I) TEN PERCENT PARTICIPATION FROM HUB ZONE

BUSINESSES ON CONTRACTS TOTALING AT LEAST $100,000 AND

NOT MORE THAN $750,000.

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(II) FIFTEEN PERCENT PARTICIPATION FROM HUB ZONE

BUSINESSES ON CONTRACTS TOTALING MORE THAN $750,000.

(2) PARAGRAPH (1) SHALL NOT APPLY TO CONTRACTS:

(I) WHERE NO QUALIFIED HUB ZONE BUSINESS EXISTS; OR

(II) WHICH HAVE RECEIVED A WAIVER UNDER SUBSECTION

(C).

(3) TO SATISFY REQUIREMENTS UNDER PARAGRAPH (1), A

PURCHASING AGENCY MAY AWARD CONTRACTS DIRECTLY TO PRIME HUB

ZONE BUSINESS CONTRACTORS OR INDIRECTLY TO HUB ZONE BUSINESS

SUBCONTRACTORS.

EFFORTS.--NOTWITHSTANDING ANY PROVISION OF THIS TITLE, BIDDERS

OR OFFERORS MAY REQUEST A PARTIAL OR FULL WAIVER OF A CONTRACT-

SPECIFIC GOAL FOR HUB ZONE BUSINESS PARTICIPATION. A BIDDER OR

OFFEROR REQUESTING A PARTIAL OR FULL WAIVER SHALL SUBMIT, IN

WRITING, A REPORT DETAILING EFFORTS TO MEET THE CONTRACT-

SPECIFIC GOAL AS REQUIRED BY THE SOLICITATION. IN REVIEWING A

BIDDER'S OR OFFEROR'S WRITTEN REQUEST FOR A PARTIAL OR FULL

WAIVER OF A CONTRACT-SPECIFIC GOAL, THE PURCHASING AGENCY, BASED

ON THE RECOMMENDATION OF THE DEPARTMENT, SHALL DETERMINE IF A

BIDDER OR OFFEROR HAS MADE GOOD-FAITH EFFORTS TO MEET THE

CONTRACT-SPECIFIC GOAL AND TO WHAT EXTENT THE WAIVER REQUEST

SHOULD BE GRANTED. IN DETERMINING IF A BIDDER OR OFFEROR HAS

MADE GOOD-FAITH EFFORTS, THE PURCHASING AGENCY AND THE

DEPARTMENT MAY CONSIDER LEVELS OF PARTICIPATION BY HUB ZONE

BUSINESSES BY OTHER BIDDERS OR OFFERORS.

(D) COMPLIANCE.--THE DEPARTMENT SHALL PERFORM COMPLIANCE

REVIEWS AND MONITOR CONTRACTS WITH HUB ZONE BUSINESSES ON A

MONTHLY BASIS.

(E) PAYMENT VERIFICATION REPORTS.--A PURCHASING AGENCY SHALL

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SUBMIT PAYMENT VERIFICATION REPORTS TO THE DEPARTMENT TO ASSIST

WITH MONITORING COMPLIANCE AND TO DETERMINE IF THE PRIME

CONTRACTOR MET THE PRIME CONTRACTOR'S OVERALL CONTRACT-SPECIFIC

GOAL AND ANY SUBGOALS THAT WERE ESTABLISHED FOR THE CONTRACT.

SECTION 4. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.

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