Georgia CommonsHB 863: Georgia Small Business Set-Aside Act; enact
Comm Sub version, the latest LegiScan holds · Last action February 26, 2026 · Introduced
The text as LegiScan holds it, read from the PDF the legislature publishes with its margin line numbers, running heads, and page footers removed. Line breaks are joined into paragraphs here; no word is changed.
Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
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 Official Code of Georgia Annotated, relating to small business assistance relative to state purchasing, so as to provide for a small business set-aside program administered by the Department of Administrative Services under which state agencies would be required to make reasonable efforts to dedicate 20 percent of their annual procurement contracts to projects and contracts involving Georgia small businesses; to provide for certification of small businesses; to provide for a small business directory; to provide for an annual reporting requirement; to provide for rules and regulations; to provide for definitions; to provide for a short title; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Georgia Small Business Set-Aside Act."
SECTION 2.
Part 3 of Article 3 of Chapter 5 of Title 50 of the Official Code of Georgia Annotated, relating to small business assistance relative to state purchasing, is amended by revising Code Section 50-5-120, which is reserved, as follows:
"50-5-120.
(a) As used in this part, the term:
(1) 'Department' means the Department of Administrative Services.
(2) 'Set-aside program' means a procurement process in which the department makes reasonable efforts to ensure a specified percentage of contracts or procurement opportunities are reserved exclusively for small businesses.
(3) 'Small business' means a business that is independently owned and operated. In addition, such business must have either fewer than 50 employees or less than $10 million in gross receipts per year.
(4) 'State agency' means any department, agency, commission, board, or other entity of the state that engages in the procurement of goods, services, or construction.
(b) The department shall establish a set-aside program under which each state agency shall make reasonable efforts to set aside at least 20 percent of its annual procurement contracts exclusively for small businesses. The department shall identify eligible contracts and publish set-aside program opportunities on its official procurement website.
(c) To qualify for the set-aside program, a business shall be certified by the department as a small business. Certification criteria shall include business size, revenue, and operational capacity. The department shall establish an application process for certification and maintain a directory of certified small businesses.
(d) Each state agency shall submit an annual report to the department detailing the total value of contracts awarded to small businesses under the set-aside program. The department shall submit an annual report to the Governor and General Assembly documenting the total value of contracts awarded by state agencies to small businesses under the set-aside program. State agencies failing to set aside at least 20 percent of their annual procurement contracts for small businesses, as provided for under subsection (b) of this Code section, shall submit a corrective action plan to the department.
(e) The department shall develop rules and regulations necessary to implement and enforce the provisions of this Code section. The department is authorized to conduct training sessions and provide resources to assist small businesses in navigating state procurement opportunities under the set-aside program. Reserved."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.