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.
SB 813 amends Pennsylvania’s procurement law in Title 62 to expand the state’s “diverse and disadvantaged businesses” category to include HUB zone businesses, alongside woman-owned, minority-owned, and veteran-owned businesses. It adds definitions for HUB zones, HUB zone businesses, contract-specific goals, good faith efforts, and utilization schedules, and renames the relevant section to reflect the broader category of diverse and disadvantaged businesses.
The bill also creates a new HUB Zone Business Procurement Program within the Department of General Services. Under the program, the department would develop policy and regulations, provide outreach and training, help agencies identify qualified HUB zone businesses, set contract-specific participation goals, review waiver requests, monitor compliance, and evaluate the program’s effectiveness. Executive agencies and independent agencies for which the department serves as purchasing agency would be required, within six months of the effective date, to establish HUB zone participation goals for covered contracts, with a 20% goal for contracts between $100,000 and $750,000 and a 25% goal for contracts over $750,000, unless no qualified HUB zone business exists or a waiver is granted.
The bill’s practical impact would be to create a new state procurement preference and compliance framework for businesses located in historically underutilized business zones in Pennsylvania. It would affect state purchasing practices, contractor bidding, subcontracting opportunities, and reporting obligations, while giving the department ongoing oversight authority through monthly compliance reviews and payment verification reports. It also allows agencies to meet goals either through direct awards to HUB zone prime contractors or through HUB zone subcontracting participation.
Overall sentiment appears supportive and policy-oriented, with the bill’s sponsors from both parties suggesting a broad interest in expanding procurement opportunities for underrepresented businesses and economically distressed areas. No committee transcript or vote record was provided, so there is no documented opposition or recorded floor debate in the supplied materials.
Potential points of contention would likely center on the new participation targets, the administrative burden on agencies and bidders, and how waivers and “good faith efforts” are evaluated. Contractors or agencies could also question whether sufficient qualified HUB zone businesses exist to meet the required percentages on certain procurements, and whether the program could affect competition, pricing, or procurement flexibility.
SB 813 would amend Title 62 of the Pennsylvania Consolidated Statutes by broadening the definition of “diverse and disadvantaged businesses” and by adding a new statutory procurement program for HUB zone businesses. It would impose new duties on the Department of General Services and covered purchasing agencies, including goal-setting, outreach, compliance monitoring, waiver review, and reporting requirements, while creating new opportunities and obligations for bidders, prime contractors, and subcontractors in state procurement.
Based on the bill’s bipartisan sponsorship and the absence of recorded opposition in the provided materials, the general sentiment appears favorable toward expanding procurement access for HUB zone businesses. The measure is framed as an economic development and inclusion initiative, with no committee discussion or vote history supplied to indicate formal resistance or controversy.
The most likely areas of contention are the mandatory participation goals, the administrative and reporting requirements placed on agencies and contractors, and the waiver process tied to “good faith efforts.” Stakeholders may also dispute whether the required HUB zone participation percentages are realistic in all regions or procurement categories, especially where the pool of qualified businesses is limited. Agencies concerned about procurement efficiency and contractors concerned about compliance costs would be the most likely sources of criticism.