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PRINTER'S NO. 3046
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2267
Session of
2024
INTRODUCED BY GUZMAN, CEPEDA-FREYTIZ, GIRAL, HILL-EVANS,
SCHLOSSBERG, SANCHEZ, McANDREW, MAYES AND BELLMON,
MAY 3, 2024
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 3, 2024
AN ACT
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:
"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
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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.
* * *
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.
* * *
(c) Lists.--The department shall compile, maintain and make
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
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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
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,
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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
paragraph, each executive agency and independent agency for
which the department acts as purchasing agency shall
establish contract-specific goals that ensure that each
contract entered into by the purchasing agency garners:
(i) Twenty percent participation from HUB zone
businesses on contracts totaling at least $100,000 and
not more than $750,000.
(ii) Twenty 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.
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(c) Request for a full or partial waiver and good faith
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
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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