HB 1760 — An Act amending Titles 51 (Military Affairs), 62 (Procurement) and 74 (Transportation) of the Pennsylvania Consolidated Statutes, in veteran-owned small businesses, further providing for definitions, for regulations, for participation goal, for duties of Department of General Services and for bonding and progress payments, providing for request for full or partial waiver of contract-specific goal, further providing for reports and providing for disparity study; in small and disadvantaged businesses, further providing for policy and for definitions, providing for Small Diverse Business Program and for nonapplicability, further providing for regulations and for duties of department, providing for request for full or partial waiver of contract-specific goal, further providing for bonding and progress payments and for report to General Assembly and providing for aspirational target, for disparity study and for program expiration; providing for Participation Program for Construction and Design Professional Services; and making editorial changes.

PRINTER'S NO.   2168

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1760
                                               Session of
                                                 2025

     INTRODUCED BY SCOTT, GUENST, GIRAL, HILL-EVANS, SANCHEZ, CEPEDA-
        FREYTIZ, MAYES, HOHENSTEIN, D. WILLIAMS AND HADDOCK,
        JULY 23, 2025

     REFERRED TO COMMITTEE ON COMMERCE, JULY 23, 2025


                                    AN ACT
 1   Amending Titles 51 (Military Affairs), 62 (Procurement) and 74
 2      (Transportation) of the Pennsylvania Consolidated Statutes,
 3      in veteran-owned small businesses, further providing for
 4      definitions, for regulations, for participation goal, for
 5      duties of Department of General Services and for bonding and
 6      progress payments, providing for request for full or partial
 7      waiver of contract-specific goal, further providing for
 8      reports and providing for disparity study; in small and
 9      disadvantaged businesses, further providing for policy and
10      for definitions, providing for Small Diverse Business Program
11      and for nonapplicability, further providing for regulations
12      and for duties of department, providing for request for full
13      or partial waiver of contract-specific goal, further
14      providing for bonding and progress payments and for report to
15      General Assembly and providing for aspirational target, for
16      disparity study and for program expiration; providing for
17      Participation Program for Construction and Design
18      Professional Services; and making editorial changes.
19      The General Assembly of the Commonwealth of Pennsylvania
20   hereby enacts as follows:
21      Section 1.    Sections 9601, 9602 heading, (a) and (c), 9603,
22   9604, 9605, 9606 and 9607 of Title 51 of the Pennsylvania
23   Consolidated Statutes are amended to read:
24   § 9601.   Definitions.
25      Subject to section 9602 (relating to policy and regulations),
 1   the following words and phrases when used in this chapter shall
 2   have the meanings given to them in this section unless the
 3   context clearly indicates otherwise:
 4      "Aspirational target."    A target established by the Secretary
 5   of General Services under section 9603 (relating to Statewide
 6   participation goal and aspirational target).
 7      "Commonwealth agency."    As defined in 62 Pa.C.S. § 103
 8   (relating to definitions).
 9      "Contract-specific goal."    A goal established by the
10   Department of General Services in collaboration with the
11   purchasing agency for utilization of veteran business
12   enterprises on a specific procurement.
13      "Disparity study."    A study conducted to determine whether a
14   disparity exists between the availability of veteran business
15   enterprises and the Commonwealth's utilization of veteran
16   business enterprises.
17      "Executive agency."    As defined in 62 Pa.C.S. § 103
18   [(relating to definitions)].
19      "Purchasing agency."   As defined in 62 Pa.C.S. § 103
20   [(relating to definitions)].
21      "Service-disabled."    Being in possession of:
22          (1)   a disability rating letter issued by the United
23      States Department of Veterans Affairs; or
24          (2)   a disability determination from the United States
25      Department of Defense.
26      "Service-disabled veteran-owned small business."     A small
27   business owned and controlled by:
28          (1)   a service-disabled veteran or veterans; [or
29          (2)   if approved by the Department of General Services, a
30      surviving spouse or permanent caregiver of a service-disabled

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 1      veteran.]
 2          (2)     if approved by the Department of General Services, a
 3      spouse of a disabled veteran who has been classified by the
 4      United States Department of Veterans Affairs' Veterans
 5      Benefits Administration as having a permanent total
 6      disability;
 7          (3)     if approved by the Department of General Services, a
 8      surviving spouse who is an unmarried spouse of a deceased or
 9      service-disabled veteran or of a service member who died on
10      active duty in the United States Armed Forces, including a
11      reserve component or National Guard; or
12          (4)     if approved by the Department of General Services, a
13      permanent caregiver of a service-disabled veteran.
14      "Small business."    As defined in 62 Pa.C.S. § 2102 (relating
15   to definitions).
16      "State-affiliated entity."    As defined in 62 Pa.C.S. § 103
17   [(relating to definitions)].
18      "Utilization schedule."     A document, submitted by a bidder or
19   offeror as part of a bid or proposal, in which a bidder or
20   offeror commits to a level of veteran business enterprise
21   participation for a contract, identifies the associated
22   responsibilities and scopes of work and identifies the dollar
23   value or percentages of the work to be performed.
24      "Veteran."    An individual who served in the United States
25   Armed Forces, including a reserve component or the National
26   Guard, and who was discharged or released from service under
27   conditions other than dishonorable.
28      "Veteran business enterprise."       Any of the following:
29          (1)     A veteran-owned small business.
30          (2)     A service-disabled veteran-owned small business.

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 1      "Veteran-owned small business."     A small business owned and
 2   controlled by a veteran or veterans.
 3   § 9602.    [Regulations] Policy and regulations.
 4      (a)    Promulgation.--The Department of General Services shall
 5   establish policy [in accordance with this subchapter] for
 6   executive agencies and those independent agencies [and may, in
 7   consultation with the department, promulgate regulations
 8   establishing detailed definitions of the words and phrases
 9   defined in section 9601 (relating to definitions) using, in
10   addition to the criteria set forth in section 9601, other
11   criteria as it deems appropriate, including the number of
12   employees and the dollar volume of business.] for which the
13   Department of General Services acts as a purchasing agency. The
14   Department of General Services in its discretion may promulgate
15   regulations. The policy or regulations may establish detailed
16   definitions of the words and phrases defined under section 9601
17   (relating to definitions) using, in addition to the criteria
18   specified under section 9601, other criteria as the Department
19   of General Services deems appropriate, including the number of
20   employees and the dollar volume of business.
21      * * *
22      (c)    Antifraud provisions.--The Department of General
23   Services shall establish policy and promulgate regulations
24   establishing antifraud provisions to deter and penalize
25   businesses that [are not owned by those who are service-disabled
26   or by veterans but who falsely claim that they are] falsely
27   claim the businesses are owned by service-disabled individuals
28   or veterans in order to receive any [action] status authorized
29   by this subchapter.
30      * * *

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 1   § 9603.    [Participation goal.] Statewide participation goal and
 2                   aspirational target.
 3      A Statewide annual goal of not less than [3%] 5%
 4   participation by [veteran-owned small businesses, including
 5   service-disabled veteran-owned small businesses,] veteran
 6   business enterprises is established. [ The participation goal
 7   shall apply to the total value of all contracts available to
 8   small businesses in each fiscal year.] The Secretary of General
 9   Services may set a Statewide aspirational target for veteran
10   business enterprise participation which may be reviewed and
11   adjusted every five years upon completion of a disparity study
12   and which shall not be less than the Statewide annual goal.
13   § 9604.    Duties of Department of General Services.
14      The Department of General Services[, with the assistance of
15   the department,] shall have the following duties:
16             (1)   [If feasible, provide] Provide, at the discretion of
17      the Secretary of General Services, appropriate staff, who
18      shall be responsible to the Department of General Services
19      and who shall [serve within designated Commonwealth agencies
20      to assist veteran-owned small businesses and service-disabled
21      veteran-owned small businesses] assist veteran business
22      enterprises in this Commonwealth in learning how to do
23      business with Commonwealth agencies.
24             (2)   Give special publicity to procurement procedures and
25      issue special publications designed to assist [veteran-owned
26      small businesses and service-disabled veteran-owned small
27      businesses] veteran business enterprises in learning how to
28      do business with Commonwealth agencies.
29             (2.1)   Verify the current certification of businesses
30      claiming to be certified as veteran business enterprises.

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 1        (3)    [Compile, maintain and make available source lists
 2    of veteran-owned small businesses and service-disabled
 3    veteran-owned small businesses] Develop and maintain a
 4    directory of veteran business enterprises for the purpose of
 5    encouraging procurement from [veteran-owned small businesses]
 6    veteran business enterprises.
 7        (4)    Include [veteran-owned small businesses and service-
 8    disabled veteran-owned small businesses] veteran business
 9    enterprises on solicitation mailing lists.
10        (5)    Assure that [veteran-owned small businesses and
11    service-disabled veteran-owned small businesses are
12    solicited] purchasing agencies solicit veteran business
13    enterprises on procurements for which the businesses may be
14    suited.
15        (6)    Develop [special] training programs to assist
16    [veteran-owned small businesses and service-disabled veteran-
17    owned small businesses] veteran business enterprises in
18    learning how to do business with Commonwealth agencies.
19        [(7)    Assure that participation by veteran-owned small
20    businesses and service-disabled veteran-owned small
21    businesses is, if appropriate, factored into the evaluation
22    of proposals for supplies, services or construction when a
23    purchasing agency uses the competitive sealed proposals
24    method under 62 Pa.C.S. § 513 (relating to competitive sealed
25    proposals).
26        (8)    Verify the current certification of businesses
27    claiming to be certified as veteran-owned small businesses
28    and service-disabled veteran-owned small businesses.]
29        (9)    Establish contract-specific goals for utilization of
30    veteran business enterprises, in collaboration with the

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 1      purchasing agency, based upon relevant factors, including the
 2      availability of veteran business enterprises to provide the
 3      supplies, materials and equipment or services required by the
 4      scope of work of the procurement.
 5             (10)   In collaboration with the purchasing agency, review
 6      utilization schedules, consider requests for waivers of
 7      contract-specific goals based upon a showing of all efforts
 8      and evaluate the extent to which contract-specific goals were
 9      achieved.
10             (11)   Monitor contracts to evaluate compliance with
11      contract-specific goals and commitments.
12             (12)   Cooperate with and provide assistance to
13      Commonwealth agencies to facilitate participation by veteran
14      business enterprises in procurements.
15             (13)   Receive, review and act upon complaints and
16      suggestions concerning the utilization of veteran business
17      enterprises, with the assistance of the purchasing agency, as
18      appropriate.
19             (14)   Monitor and evaluate the Commonwealth's utilization
20      of veteran business enterprises and the Commonwealth's
21      progress toward the aspirational target.
22   § 9605.    Bonding and progress payments.
23      (a)    Bonding.--Notwithstanding 62 Pa.C.S. Pt. I (relating to
24   Commonwealth Procurement Code) or any other law or regulation:
25             (1)    Except as provided in paragraph (2), a purchasing
26      agency may reduce the [level] amount or change the types of
27      bonding normally required or accept alternative forms of
28      security to the extent reasonably necessary to encourage
29      procurement from [veteran-owned small businesses and service-
30      disabled veteran-owned small businesses] veteran business

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 1      enterprises.
 2             (2)   For contracts under $25,000, [veteran-owned small
 3      businesses and service-disabled veteran-owned small
 4      businesses] veteran business enterprises shall be exempt from
 5      any bonding requirements.
 6      (b)    Progress payments.--A purchasing agency may make special
 7   provisions for progress payments as it deems reasonably
 8   necessary to encourage procurement from [veteran-owned small
 9   businesses and service-disabled veteran-owned small businesses]
10   veteran business enterprises.
11   § 9606.    [(Reserved).] Request for full or partial waiver of
12                   contract-specific goal.
13      Notwithstanding any provision of this subchapter, bidders or
14   offerors may request a partial or full waiver of a contract-
15   specific goal for veteran business enterprise participation for
16   any unmet portion of a contract-specific goal. The following
17   apply:
18             (1)   A bidder or offeror requesting a partial or full
19      waiver shall submit, in writing, a report detailing all
20      efforts to meet the contract-specific goal as required by the
21      solicitation.
22             (2)   In reviewing a bidder's or offeror's written request
23      for a partial or full waiver of a contract-specific goal, the
24      purchasing agency, based on the recommendation of the
25      Department of General Services, shall determine if a bidder
26      or offeror has made all efforts to meet the contract-specific
27      goal and whether the waiver request should be granted.
28             (3)   In determining if a bidder or offeror has made all
29      efforts, the purchasing agency and the Department of General
30      Services may consider levels of participation by veteran

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 1      business enterprises by other bidders or offerors.
 2   § 9607.    Reports.
 3      [(a)    Report to Department of General Services.--By August
 4   15, 2013, and each August 15 thereafter, each executive agency
 5   and independent agency shall submit an annual report for the
 6   period of July 1 to June 30 to the Department of General
 7   Services on actual utilization of veteran-owned small businesses
 8   and service-disabled veteran-owned small businesses as
 9   contractors, subcontractors, suppliers and professional service
10   providers.
11      (b)    Report to standing committees.--
12             (1)   The Department of General Services and each State-
13      affiliated entity shall annually, before October 1, report in
14      writing to the Veterans Affairs and Emergency Preparedness
15      Committee of the Senate and the Veterans Affairs and
16      Emergency Preparedness Committee of the House of
17      Representatives the actual utilization, Statewide and by each
18      purchasing agency, of veteran-owned small businesses and
19      service-disabled veteran-owned small businesses during the
20      preceding fiscal year.
21             (2)   The report shall include a list of all veteran-owned
22      small businesses and service-disabled veteran-owned small
23      businesses that participated as contractors, subcontractors,
24      suppliers and professional service providers during the
25      preceding fiscal year.
26             (3)   Initial reports under this subsection shall be
27      submitted to the standing committees by October 1, 2013.]
28      (c)    Annual report.--
29             (1)   The Department of General Services shall annually
30      report in writing to the Veterans Affairs and Emergency

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 1      Preparedness Committee of the Senate and the Veterans Affairs
 2      and Emergency Preparedness Committee of the House of
 3      Representatives concerning the utilization of veteran
 4      business enterprises in Commonwealth contracts.
 5             (2)    Each annual report shall include statistical
 6      information regarding veteran business enterprises, including
 7      business classification, location and industry.
 8             (3)    In preparing an annual report, the Department of
 9      General Services shall verify if commitments made to veteran
10      business enterprises in the course of awarding the contracts
11      have been maintained or achieved.
12      Section 2.       Title 51 is amended by adding a section to read:
13   § 9609.    Disparity study.
14      In conjunction with the schedule for the disparity study
15   completed on June 30, 2024, and every five years thereafter, the
16   Department of General Services shall complete a Statewide
17   disparity study on the availability and utilization of veteran
18   business enterprises, the results of which may be used to set an
19   aspirational target under section 9603 (relating to Statewide
20   participation goal and aspirational target).
21      Section 3.       Chapter 21 heading and sections 2101 and 2102 of
22   Title 62 are amended to read:
23                                    CHAPTER 21
24                   SMALL [AND DISADVANTAGED] DIVERSE BUSINESSES
25   § 2101.    Policy.
26      The policy of this Commonwealth is to assist [small and
27   disadvantaged businesses in learning how to do business with
28   Commonwealth agencies. The department shall implement this
29   policy in accordance with regulations promulgated by the
30   department.] small businesses and small diverse businesses in

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 1   learning how to do business with Commonwealth agencies. The
 2   department shall implement this policy in accordance with
 3   department regulations and policy.
 4   § 2102.    Definitions.
 5      Subject to section 2103 (relating to policy and regulations),
 6   the following words and phrases when used in this chapter shall
 7   have the meanings given to them in this section unless the
 8   context clearly indicates otherwise:
 9      "Agency liaison."      An agency employee reporting directly to a
10   secretary, agency head or equivalent responsible for assisting
11   the agency on issues related to the program.
12      "Aspirational target."      A target established by the Secretary
13   of General Services under section 2109 (relating to aspirational
14   target).
15      "Contract-specific goal."      A goal established by the
16   department in collaboration with the purchasing agency for
17   utilization of small diverse businesses on a specific
18   procurement.
19      ["Disadvantaged business."      A small business which is owned
20   or controlled by a majority of persons, not limited to members
21   of minority groups, who have been deprived of the opportunity to
22   develop and maintain a competitive position in the economy
23   because of social disadvantages.]
24      "Disparity study."     A study conducted to determine whether
25   there is a disparity between the availability and utilization of
26   small diverse businesses in Commonwealth procurement.
27      "Program."    The Small Diverse Business Program established
28   under section 2102.1 (relating to Small Diverse Business
29   Program).
30      "Race-neutral and gender-neutral measures."      Methodologies

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 1   that are or can be used to assist businesses, notwithstanding
 2   the social, economic, racial or gender composition of the
 3   individuals that own or control the business.
 4      "Small business."     A business in the United States which is
 5   independently owned[,] and is not dominant in its field of
 6   operation and employs [100] 500 or fewer employees.
 7      "Small diverse business."      A small business owned or
 8   controlled by a majority of persons, not limited to members of
 9   minority groups, that have been deprived of the opportunity to
10   develop and maintain a competitive position in the economy
11   because of economic and social disadvantages.
12      "Utilization schedule."      A document, submitted by a bidder or
13   offeror as part of a bid or proposal, in which a bidder or
14   offeror commits to a level of small diverse business
15   participation for a contract, identifies the associated
16   responsibilities and scopes of work and identifies the dollar
17   value or percentages of the work to be performed.
18      Section 4.   Title 62 is amended by adding sections to read:
19   § 2102.1.   Small Diverse Business Program.
20      The Small Diverse Business Program is established within the
21   department to assist small diverse businesses in accordance with
22   this chapter.
23   § 2102.2.   Nonapplicability.
24      Beginning on the effective date of this section, this chapter
25   shall not apply to procurements for construction and design
26   professional services.
27      Section 5.   Sections 2103 and 2104 of Title 62 are amended to
28   read:
29   § 2103.   [Regulations] Policy and regulations.
30      [The] To implement the program, the department shall

20250HB1760PN2168                     - 12 -
 1   establish policy for executive and those independent agencies
 2   for which the department acts as purchasing agency and may
 3   promulgate regulations. [establishing detailed definitions of
 4   the words and phrases defined in section 2102 (relating to
 5   definitions) using, in addition to the criteria set forth in
 6   section 2102, other criteria as it deems appropriate, including
 7   the number of employees and the dollar volume of business.
 8   State-affiliated entities shall implement the policy for their
 9   procurement programs.] The policy may establish detailed
10   definitions of the words and phrases defined under section 2102
11   (relating to definitions) using, in addition to the criteria
12   specified under section 2102, other criteria as the department
13   deems appropriate, including the number of employees and the
14   dollar volume of business. State-affiliated entities shall
15   implement the policy for their procurement.
16   § 2104.    Duties of department.
17      [The department shall have the following duties:
18             (1)   Where feasible, provide appropriate staff who shall
19      be responsible to the department and who shall serve within
20      designated Commonwealth agencies to assist small and
21      disadvantaged businesses in this Commonwealth in learning how
22      to do business with Commonwealth agencies.
23             (2)   Give special publicity to procurement procedures and
24      issue special publications designed to assist small and
25      disadvantaged businesses in learning how to do business with
26      Commonwealth agencies.
27             (3)   Compile, maintain and make available source lists of
28      small and disadvantaged businesses for the purpose of
29      encouraging procurement from small and disadvantaged
30      businesses.

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 1        (4)   Include small and disadvantaged businesses on
 2    solicitation mailing lists.
 3        (5)   Assure that small and disadvantaged businesses are
 4    solicited on each procurement for which the businesses may be
 5    suited.
 6        (6)   Develop special training programs to assist small
 7    and disadvantaged businesses in learning how to do business
 8    with Commonwealth agencies.] The department shall administer
 9    the program. The department's duties shall include:
10        (1)   Formulating, proposing and implementing policy and
11    regulations for the development, implementation and
12    monitoring of the program, including the process or
13    procedures to govern the following:
14              (i)    The process and criteria for certification,
15        verification, recertification and decertification of
16        small businesses and small diverse businesses.
17              (ii)    The setting of contract-specific goals.
18              (iii)    Changes to solicitation and contract language,
19        requirements and forms.
20              (iv)    Monitoring and tracking contract commitments
21        and utilization of small diverse businesses.
22              (v)    Mentor-protégé programs.
23              (vi)    Program-related education, training, networking
24        and outreach.
25              (vii)    Any other processes or procedures the
26        department deems necessary to implement the program.
27        (2)   Developing, using and assisting purchasing agencies
28    in using race-neutral and gender-neutral measures to
29    facilitate the participation of all businesses in
30    Commonwealth procurement activities, including the

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 1    implementation of a program to reserve procurements for award
 2    to self-certified small businesses only.
 3        (3)   Developing and maintaining a directory of small
 4    businesses and small diverse businesses.
 5        (4)   Providing information and assistance to small
 6    businesses and small diverse businesses relating to the
 7    program, including special training programs to assist small
 8    businesses and small diverse businesses in learning how to do
 9    business with Commonwealth agencies and serving as liaison to
10    community, contractors, professionals and supplier groups,
11    associations and organizations.
12        (5)   Collaborating with and providing information and
13    assistance to Commonwealth agencies to facilitate
14    participation by small businesses and small diverse
15    businesses in procurements.
16        (6)   Establishing thresholds for procurements which
17    require the setting of contract-specific goals.
18        (7)   Ensuring that small diverse businesses are solicited
19    on procurements for which the businesses may be suited.
20        (8)   Establishing contract-specific goals, in
21    collaboration with the purchasing agency, based upon relevant
22    factors, including, but not limited to, the availability of
23    small diverse businesses to provide the supplies, materials
24    and equipment or services required by the scope of work of
25    the procurement.
26        (9)   In collaboration with the purchasing agency,
27    reviewing utilization schedules, considering requests for
28    waivers of contract-specific goals based upon a showing of
29    all efforts and evaluating the extent to which contract-
30    specific goals were achieved.

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 1          (10)     Monitoring contracts to evaluate compliance with
 2      contract-specific goals and commitments.
 3          (11)     Receiving, reviewing and acting upon complaints and
 4      suggestions concerning the program, with the assistance of
 5      the purchasing agency, as appropriate.
 6          (12)     Coordinating with agency liaisons on agency issues
 7      related to the program.
 8          (13)     Evaluating the effectiveness and utility of the
 9      program.
10          (14)     Monitoring the program and the Commonwealth's
11      progress toward the aspirational target.
12          (15)     Identifying barriers to participation by small
13      diverse businesses in Commonwealth procurement.
14          (16)     Providing appropriate staff, in the discretion of
15      the Secretary of General Services, to assist small diverse
16      businesses in this Commonwealth in learning how to do
17      business with Commonwealth agencies.
18      Section 6.    Title 62 is amended by adding a section to read:
19   § 2104.1.    Request for full or partial waiver of contract-
20                 specific goal.
21      Notwithstanding any provision of this chapter, bidders or
22   offerors may request a partial or full waiver of a contract-
23   specific goal for small diverse business participation. The
24   following apply:
25          (1)    A bidder or offeror requesting a partial or full
26      waiver shall submit, in writing, a report detailing all of
27      the bidder's or offeror's efforts to meet the contract-
28      specific goal as required by the solicitation.
29          (2)    In reviewing a bidder's or offeror's written request
30      for a partial or full waiver of a contract-specific goal, the

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 1      purchasing agency, based on the recommendation of the
 2      department, shall determine if a bidder or offeror has made
 3      all efforts to meet the contract-specific goal and to what
 4      extent the waiver request should be granted.
 5             (3)   In determining if a bidder or offeror has made all
 6      efforts, the purchasing agency and the department may
 7      consider levels of participation by small diverse businesses
 8      by other bidders or offerors.
 9      Section 7.     Sections 2105 and 2107 of Title 62 are amended to
10   read:
11   § 2105.    Bonding and progress payments.
12      (a)    Bonding.--[Notwithstanding other provisions of this
13   part, a] A purchasing agency may reduce the [level] amount or
14   change the types of bonding normally required or accept
15   alternative forms of security to the extent reasonably necessary
16   to encourage procurement from [small and disadvantaged
17   businesses] small businesses and small diverse businesses.
18      (b)    Progress payments.--A purchasing agency may make special
19   provisions for progress payments as it deems reasonably
20   necessary to encourage procurement from [small and disadvantaged
21   businesses] small businesses and small diverse businesses.
22   § 2107.    Report to General Assembly.
23      The department shall annually[, before October 1,] submit a
24   report in writing to the General Assembly concerning the
25   awarding of contracts [to small and disadvantaged businesses]
26   and subcontracts to small businesses and small diverse
27   businesses during the preceding fiscal year. The report shall
28   include [a list of all small and disadvantaged businesses that
29   participated as contractors, subcontractors or suppliers during
30   the preceding fiscal year for contracts if the number of

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 1   contractors under a previously existing contract for the same
 2   supply or service is reduced to a single contractor or reduced
 3   by more than 50% of the number existing on September 30, 2003.]
 4   statistical information regarding the program and information
 5   regarding small businesses and small diverse businesses,
 6   including business classification, location and industry. In
 7   preparing the report, the department shall verify whether
 8   commitments made to small [and disadvantaged] diverse businesses
 9   in the course of awarding these contracts have been maintained
10   or achieved.
11      Section 8.   Title 62 is amended by adding sections to read:
12   § 2109.   Aspirational target.
13      The Secretary of General Services shall set an aspirational
14   target for small diverse business participation by the
15   Commonwealth, which shall be reviewed and adjusted every five
16   years upon completion of a disparity study.
17   § 2110.   Disparity study.
18      (a)    Requirement.--In conjunction with the schedule for the
19   disparity study completed on June 30, 2024, and at least once
20   every five years thereafter, the department shall complete a
21   Statewide disparity study on the availability and utilization of
22   small diverse businesses, the results of which shall be used to
23   set an aspirational target under section 2109 (relating to
24   aspirational target).
25      (b)    Notice and publication.--The Secretary of General
26   Services shall transmit notice to the Legislative Reference
27   Bureau for publication in the next available issue of the
28   Pennsylvania Bulletin regarding whether or not the disparity
29   study shows a statistically significant disparity.
30   § 2111.   Program expiration.

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 1      This chapter shall expire December 31, 2030, unless the
 2   disparity study shows a statistically significant disparity in
 3   the utilization of small diverse businesses.
 4      Section 9.   Title 62 is amended by adding a chapter to read:
 5                               CHAPTER 21A
 6               PARTICIPATION PROGRAM FOR CONSTRUCTION AND
 7                       DESIGN PROFESSIONAL SERVICES
 8   Sec.
 9   21A01.   Definitions.
10   21A02.   Participation Program for Construction and Design
11               Professional Services.
12   21A03.   Applicability.
13   21A04.   Policy and regulations.
14   21A05.   Duties of department.
15   21A06.   Request for full or partial waiver of contract-specific
16               goal.
17   21A07.   Bonding and progress payments.
18   21A08.   Report to General Assembly.
19   21A09.   Aspirational target.
20   21A10.   Disparity study.
21   21A11.   Compliance with Federal requirements.
22   21A12.   Expiration.
23   § 21A01.   Definitions.
24      The following words and phrases when used in this chapter
25   shall have the meanings given to them in this section unless the
26   context clearly indicates otherwise:
27      "Aspirational target."   A target established by the Secretary
28   of General Services under section 21A09 (relating to
29   aspirational target).
30      "Contract-specific goal."      A goal established by the

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 1   department in collaboration with the purchasing agency for
 2   utilization of small diverse businesses on a specific
 3   procurement.
 4      "Disparity study."     A study conducted to determine whether
 5   there is a disparity between the availability and utilization of
 6   small diverse businesses in Commonwealth procurement for
 7   construction and design professional services.
 8      "Program."   The Participation Program for Construction and
 9   Design Professional Services established under section 21A02
10   (relating to Participation Program for Construction and Design
11   Professional Services).
12      "Race-neutral and gender-neutral measures."     Methodologies
13   that are or can be used to assist businesses, notwithstanding
14   the social, economic, racial or gender composition of
15   individuals that own or control the business.
16      "Small business."    A business in the United States which is
17   independently owned and is not dominant in its field of
18   operation and employs 500 or fewer employees.
19      "Small diverse business."     A small business owned or
20   controlled by a majority of persons, not limited to members of
21   minority groups, who have been deprived of the opportunity to
22   develop and maintain a competitive position in the economy
23   because of economic and social disadvantages.
24      "Utilization schedule."     A document, submitted by a bidder or
25   offeror as part of a bid or proposal, in which a bidder or
26   offeror commits to a level of small diverse business
27   participation for a contract, identifies the associated
28   responsibilities and scope of work and identifies the dollar
29   value or percentages of the work to be performed.
30   § 21A02.   Participation Program for Construction and Design

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 1                Professional Services.
 2      The Participation Program for Construction and Design
 3   Professional Services is established in the department.
 4   § 21A03.   Applicability.
 5      This chapter shall apply to procurements for construction and
 6   design professional services.
 7   § 21A04.   Policy and regulations.
 8      To implement the program, the department shall establish
 9   policy for executive and independent agencies for which the
10   department acts as a purchasing agency and may promulgate
11   regulations. The policies and regulations may establish detailed
12   definitions of the words and phrases defined in section 21A01
13   (relating to definitions) using, in addition to the criteria
14   specified under section 21A01, other criteria as the department
15   deems appropriate, including the number of employees and the
16   dollar volume of business. State-affiliated entities shall
17   implement the policy for their procurement programs.
18   § 21A05.   Duties of department.
19      The department shall administer the program. The department's
20   duties shall include:
21          (1)   Formulating, proposing and implementing policy and
22      regulations for the development, implementation and
23      monitoring of the program, which shall include processes or
24      procedures to govern the following:
25                (i)    The process and criteria for certification,
26          verification, recertification and decertification of
27          small businesses and small diverse businesses.
28                (ii)    The setting of contract-specific goals.
29                (iii)    Changes to solicitation and contract language,
30          requirements and forms.

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 1              (iv)    Monitoring and tracking contract commitments
 2        and utilization of small diverse businesses.
 3              (v)     Mentor-protégé programs.
 4              (vi)     Program-related education, training, networking
 5        and outreach.
 6              (vii)    Any other processes or procedures the
 7        department deems necessary to implement the program for
 8        construction and design professional services.
 9        (2)   Developing, using and assisting purchasing agencies
10    in using race-neutral and gender-neutral measures to
11    facilitate the participation of businesses in Commonwealth
12    procurement activities, including the implementation of a
13    program to reserve procurements for award to small diverse
14    businesses only.
15        (3)   Providing information and assistance to small
16    businesses and small diverse businesses relating to the
17    program, including special training programs to assist small
18    businesses and small diverse businesses in learning how to do
19    business with Commonwealth agencies and serving as a liaison
20    to community, contractors, professionals and supplier groups,
21    associations and organizations.
22        (4)   Establishing thresholds for construction and design
23    professional services procurements which require the setting
24    of contract-specific goals.
25        (5)   Ensuring that small diverse businesses are solicited
26    on procurements for which the businesses may be suited.
27        (6)   Establishing contract-specific goals, in
28    collaboration with the purchasing agency, based upon relevant
29    factors, including the availability of small diverse
30    businesses to provide the supplies, materials and equipment

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 1    or services required by the scope of work of the procurement.
 2        (7)    In collaboration with the purchasing agency,
 3    reviewing utilization schedules, considering requests for
 4    waivers of contract-specific goals based upon a showing of
 5    all efforts and evaluating the extent to which contract-
 6    specific goals were achieved.
 7        (8)    Monitoring contracts to evaluate compliance with
 8    contract-specific goals and commitments.
 9        (9)    Receiving, reviewing and acting upon complaints and
10    suggestions concerning the program, with the assistance of
11    the purchasing agency, as appropriate.
12        (10)    Evaluating the effectiveness and utility of the
13    program.
14        (11)    Monitoring the program and the Commonwealth's
15    progress toward the aspirational target.
16        (12)    Identifying barriers to equitable participation by
17    small diverse businesses in Commonwealth procurements for
18    construction and design professional services.
19        (13)    Providing appropriate staff, in the discretion of
20    the Secretary of General Services, to assist small diverse
21    businesses in this Commonwealth in learning how to do
22    business with Commonwealth agencies.
23        (14)    Developing and maintaining a directory of small
24    businesses and small diverse businesses.
25        (15)    Collaborating with and providing information and
26    assistance to Commonwealth agencies to facilitate
27    participation by small businesses and small diverse
28    businesses in construction and design professional services
29    procurements.
30        (16)    Developing the conditions under which a contract-

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 1      specific goal may be waived, either partially or fully, upon
 2      request of a bidder or offeror in accordance with section
 3      21A06 (relating to request for full or partial waiver of
 4      contract-specific goal).
 5   § 21A06.    Request for full or partial waiver of contract-
 6                  specific goal.
 7      Bidders or offerors may request a partial or full waiver of a
 8   contract-specific goal for small diverse business participation.
 9   The following apply:
10            (1)   A bidder or offeror requesting a partial or full
11      waiver shall submit, in writing, a report detailing all of
12      the bidder's or offeror's efforts to meet the contract-
13      specific goal as required by the solicitation.
14            (2)   In reviewing a bidder's or offeror's written request
15      for a partial or full waiver of a contract-specific goal, the
16      purchasing agency, based on the recommendation of the
17      department, shall determine if a bidder or offeror has made
18      all efforts to meet the contract-specific goal and if the
19      waiver request should be granted.
20            (3)   In determining if a bidder or offeror has made all
21      efforts, the purchasing agency and the department may
22      consider levels of participation by small diverse businesses
23      by other bidders or offerors.
24   § 21A07.    Bonding and progress payments.
25      (a)     Bonding.--A purchasing agency may reduce the level or
26   change the types of bonding normally required or accept
27   alternative forms of security to the extent reasonably necessary
28   to encourage procurement from small businesses and small diverse
29   businesses.
30      (b)     Progress payments.--A purchasing agency may make special

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 1   provisions for progress payments as it deems reasonably
 2   necessary to encourage procurement from small businesses and
 3   small diverse businesses.
 4   § 21A08.    Report to General Assembly.
 5      The department shall annually submit a report in writing to
 6   the General Assembly regarding the awarding of contracts and
 7   subcontracts to small businesses and small diverse businesses
 8   during the preceding fiscal year. The following apply:
 9            (1)   The report shall include statistical data from the
10      program, including business classification, location and
11      industry.
12            (2)   In preparing the report, the department shall verify
13      if the commitments made in the awarding of contracts were
14      maintained or achieved.
15   § 21A09.    Aspirational target.
16      The Secretary of General Services shall set an aspirational
17   target for small diverse business participation by the
18   Commonwealth on procurements subject to this chapter, which
19   shall be reviewed and adjusted every five years upon completion
20   of a disparity study.
21   § 21A10.    Disparity study.
22      (a)     Requirement.--In conjunction with the schedule for the
23   disparity study completed on June 30, 2024, and at least once
24   every five years thereafter, the department shall complete a
25   Statewide disparity study on the availability and utilization of
26   small diverse businesses in Commonwealth construction and design
27   professional services, the results of which shall be used to set
28   an aspirational target under section 21A09 (relating to
29   aspirational target).
30      (b)     Notice and publication.--The Secretary of General

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 1   Services shall transmit notice to the Legislative Reference
 2   Bureau for publication in the next available issue of the
 3   Pennsylvania Bulletin regarding whether or not the disparity
 4   study shows a statistically significant disparity in the
 5   utilization of small diverse businesses.
 6   § 21A11.   Compliance with Federal requirements.
 7      If a procurement involves the expenditure of Federal
 8   assistance or contract money, the purchasing agency shall comply
 9   with Federal law and authorized regulations which are
10   mandatorily applicable and which are not presently reflected in
11   this chapter.
12   § 21A12.   Expiration.
13      This chapter shall expire December 31, 2030, unless the
14   disparity study shows a statistically significant disparity in
15   the utilization of small diverse businesses.
16      Section 10.   Section 303(a.4) of Title 74 is amended to read:
17   § 303.   Diverse business participation.
18      * * *
19      (a.4)   Construction.--Nothing in this section shall be
20   construed to supersede, nullify or otherwise affect 51 Pa.C.S. §
21   9603 (relating to [participation goal] Statewide participation
22   goal and aspirational target). In the case of an inconsistency
23   between this section and 51 Pa.C.S. Ch. 96 (relating to veteran-
24   owned small businesses), the provisions of 51 Pa.C.S. Ch. 96
25   shall prevail.
26      * * *
27      Section 11.   This act shall take effect in 60 days.




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