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.
<ins>(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
</ins>
<ins>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.</ins> <del>Reserved."
</del> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.