HB863: HB863 Georgia Small Business Set-Aside Act; enact

26 LC 59 0367S The House Committee on Governmental Affairs offers the following substitute to HB 863: A BILL TO BE ENTITLED AN ACT To amend Part 3 of Article 3 of Chapter 5 of Title 50 of the Of ficial Code of Georgia1 Annotated, relating to small business assistance relative to state purchasing, so as to provide2 for a small business set-aside program administered by the Depa rtment of Administrative3 Services under which state agencies would be required to make reasonable efforts to dedicate4 20 percent of their annual procurement contracts to projects and contracts involving Georgia5 small businesses; to provide for certification of small busines ses; to provide for a small6 business directory; to provide for an annual reporting requirement; to provide for rules and7 regulations; to provide for definitions; to provide for a short title; to provide for related8 matters; to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 This Act shall be known and may be cited as the "Georgia Small Business Set-Aside Act."12 H. B. 863 (SUB) - 1 - 26 LC 59 0367S SECTION 2.13 Part 3 of Article 3 of Chapter 5 of Title 50 of the Official Co de of Georgia Annotated,14 relating to small business assistance relative to state purchasing, is amended by revising Code15 Section 50-5-120, which is reserved, as follows:16 "50-5-120.17 (a) As used in this part, the term:18 (1) 'Department' means the Department of Administrative Services.19 (2) 'Set-aside program' means a procurement process in which t he department makes20 reasonable efforts to ensure a specified percentage of contract s or procurement21 opportunities are reserved exclusively for small businesses.22 (3) 'Small business' means a business that is independently ow ned and operated. In23 addition, such business must have either fewer than 50 employee s or less than $1024 million in gross receipts per year.25 (4) 'State agency' means any department, agency, commission, board, or other entity of26 the state that engages in the procurement of goods, services, or construction.27 (b) The department shall establish a set-aside program under which each state agency shall28 make reasonable efforts to set aside at least 20 percent of its annual procurement contracts29 exclusively for small businesses. The department shall identif y eligible contracts and30 publish set-aside program opportunities on its official procurement website.31 (c) To qualify for the set-aside program, a business shall be certified by the department as32 a small business. Certification criteria shall include business size, revenue, and operational33 capacity. The department shall establish an application proces s for certification and34 maintain a directory of certified small businesses.35 (d) Each state agency shall submit an annual report to the dep artment detailing the total36 value of contracts awarded to small businesses under the set-as ide program. The37 department shall submit an annual report to the Governor and Ge neral Assembly38 documenting the total value of cont racts awarded by state agenc ies to small businesses39 H. B. 863 (SUB) - 2 - 26 LC 59 0367S under the set-aside program. State agencies failing to set aside at least 20 percent of their40 annual procurement contracts for small businesses, as provided for under subsection (b) of41 this Code section, shall submit a corrective action plan to the department.42 (e) The department shall develop rules and regulations necessary to implement and enforce43 the provisions of this Code section. The department is authori zed to conduct training44 sessions and provide resources to assist small businesses in navigating state procurement45 opportunities under the set-aside program. Reserved."46 SECTION 3.47 All laws and parts of laws in conflict with this Act are repealed.48 H. B. 863 (SUB) - 3 -