HB 29 — 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.

PRINTER'S NO.   10

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 29
                                               Session of
                                                 2025

     INTRODUCED BY GUZMAN, CEPEDA-FREYTIZ, GIRAL, HILL-EVANS, PIELLI,
        KHAN, SANCHEZ AND PARKER, JANUARY 10, 2025

     REFERRED TO COMMITTEE ON COMMERCE, JANUARY 10, 2025


                                    AN ACT
 1   Amending Title 62 (Procurement) of the Pennsylvania Consolidated
 2      Statutes, in diverse and disadvantaged businesses, further
 3      providing for definitions and for woman-owned business,
 4      minority-owned business or veteran-owned business and
 5      establishing the HUB Zone Business Procurement Program.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    The definition of "diverse and disadvantaged
 9   businesses" in section 2201 of Title 62 of the Pennsylvania
10   Consolidated Statutes is amended and the section is amended by
11   adding definitions to read:
12   § 2201.   Definitions.
13      The following words and phrases when used in this chapter
14   shall have the meanings given to them in this section unless the
15   context clearly indicates otherwise:
16      "Contract-specific goal."    A goal established under section
17   2203 (relating to HUB Zone Business Procurement Program) for use
18   of HUB zone businesses on a specific procurement.
19      "Diverse and disadvantaged businesses."    A woman-owned
 1   business, a minority-owned business [or], a veteran-owned
 2   business or a HUB zone business.
 3      "Good faith efforts."     The practices or activities instituted
 4   by a bidder or offeror to promote and ensure participation by
 5   HUB zone businesses in a procurement in order to meet a
 6   contract-specific goal.
 7      "HUB zone."     A historically underutilized business zone in
 8   this Commonwealth.
 9      "HUB zone business."    A for-profit business located in a HUB
10   zone that satisfies the qualification criteria specified at 13
11   CFR Pt. 126 Subpt. B (relating to requirements to be a certified
12   HUBZone small business concern).
13      "HUB Zone Program."     The HUB Zone Business Procurement
14   Program established under section 2203(a).
15      * * *
16      "Utilization schedule."     A document, submitted by a bidder or
17   offeror as part of a bid or proposal, in which a bidder or
18   offeror outlines HUB zone business participation for a contract
19   and identifies the dollar value or percentages of the work to be
20   performed.
21      * * *
22      Section 2.    Section 2202 heading and (c) of Title 62 are
23   amended to read:
24   § 2202.    [Woman-owned business, minority-owned business or
25                veteran-owned business] Diverse and disadvantaged
26                businesses.
27      * * *
28      (c)    Lists.--The department shall compile, maintain and make
29   available source lists of businesses verified by the department
30   as a diverse or disadvantaged business for the purpose of

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 1   encouraging procurement from those businesses and for the
 2   purpose of complying with section 2203 (relating to HUB Zone
 3   Business Procurement Program).
 4      * * *
 5      Section 3.     Title 62 is amended by adding a section to read:
 6   § 2203.    HUB Zone Business Procurement Program.
 7      (a)    Establishment.--The HUB Zone Business Procurement
 8   Program is established within the department for the purpose of
 9   ensuring that executive agencies and independent agencies for
10   which the department acts as purchasing agency enter into
11   contracts with HUB zone businesses as provided under this
12   section. The department shall administer the HUB Zone Program,
13   including:
14             (1)   Formulating, proposing and implementing policy and
15      regulations for the development, implementation and
16      monitoring of the HUB Zone Program.
17             (2)   Providing information and assistance to HUB zone
18      businesses relating to the HUB Zone Program, including
19      special training programs for HUB zone businesses to learn
20      how to do business with executive agencies and independent
21      agencies for which the department acts as purchasing agency
22      and serving as a liaison to communities, contractors,
23      professional and supplier groups, associations and
24      organizations.
25             (3)   Ensuring that HUB zone businesses are solicited on
26      procurements for which the HUB zone businesses may be suited.
27             (4)   Establishing contract-specific goals, in
28      collaboration with the purchasing agency, based upon relevant
29      factors, including the availability of HUB zone businesses to
30      meet the scope of work of the procurement.

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 1          (5)    In collaboration with the purchasing agency,
 2    reviewing utilization schedules, considering requests for
 3    waivers of contract-specific goals based upon a showing of
 4    good faith efforts and evaluating the extent to which
 5    contract-specific goals were achieved.
 6          (6)    Monitoring contracts to evaluate compliance with
 7    contract-specific goals and commitments.
 8          (7)    Receiving, reviewing and acting upon complaints and
 9    suggestions concerning the HUB Zone Program.
10          (8)    Evaluating the effectiveness and utility of the HUB
11    Zone Program.
12    (b)   HUB zone business procurement.--
13          (1)    Within six months of the effective date of this
14    section, an executive agency and independent agency for which
15    the department acts as purchasing agency shall establish
16    contract-specific goals that ensure that a contract entered
17    into by the purchasing agency garners:
18                 (i)    not less than 20% participation from HUB zone
19          businesses on contracts totaling at least $100,000 and
20          not more than $750,000; or
21                 (ii)    not less than 25% participation from HUB zone
22          businesses on contracts totaling more than $750,000.
23          (2)    Paragraph (1) shall not apply to a contract:
24                 (i)    where no qualified HUB zone business exists; or
25                 (ii)    that has received a waiver under subsection
26          (c).
27          (3)    To satisfy requirements under paragraph (1), a
28    purchasing agency may award contracts directly to prime HUB
29    zone business contractors or indirectly to HUB zone business
30    subcontractors.

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 1      (c)   Request for a full or partial waiver and good faith
 2   efforts.--
 3            (1)   Bidders or offerors may request a partial or full
 4      waiver of a contract-specific goal for HUB zone business
 5      participation. A bidder or offeror requesting a partial or
 6      full waiver shall submit, in writing, a report detailing
 7      efforts to meet the contract-specific goal as required by the
 8      solicitation.
 9            (2)   In reviewing a bidder's or offeror's written request
10      for a partial or full waiver of a contract-specific goal, the
11      purchasing agency, based on the recommendation of the
12      department, shall determine if a bidder or offeror has made
13      good faith efforts to meet the contract-specific goal and to
14      what extent the waiver request should be granted. In
15      determining if a bidder or offeror has made good faith
16      efforts, the purchasing agency and the department may
17      consider levels of participation by HUB zone businesses by
18      other bidders or offerors.
19      (d)   Compliance.--The department shall perform compliance
20   reviews and monitor contracts with HUB zone businesses on a
21   monthly basis.
22      (e)   Payment verification reports.--A purchasing agency shall
23   submit payment verification reports to the department to assist
24   with monitoring compliance and to determine if the prime
25   contractor met the prime contractor's overall contract-specific
26   goal and any subgoals that were established for the contract.
27      Section 4.    This act shall take effect in 60 days.




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