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HB 863

Georgia Small Business Set-Aside Act; enact

2025-2026 Regular Session Introduced by Bryce Berry and 4 co-sponsors

The Georgia Small Business Set-Aside Act mandates state agencies allocate 20% of contracts to small businesses, boosting their growth and economic impact statewide.

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Bill Summary · HB 863

Summary of House Bill 863: Georgia Small Business Set-Aside Act

Bill Number: HB 863
Introduced: March 25, 2025
Current Status: House Second Readers
Classification: Bill

Purpose and Intent

The Georgia Small Business Set-Aside Act aims to enhance opportunities for small businesses in the state by mandating that state agencies allocate a minimum of 20% of their annual procurement contracts specifically for small businesses. This initiative is designed to support the growth and sustainability of small enterprises within Georgia, ensuring they have fair access to government contracts.

Key Provisions

  1. Set-Aside Program Establishment:

    • The Department of Administrative Services (DOAS) will administer a set-aside program requiring state agencies to make reasonable efforts to reserve 20% of their procurement contracts for small businesses.

  2. Definition of Small Business:

    • A small business is defined as one that is independently owned and operated, not dominant in its field, and meets criteria established by the DOAS.

  3. Certification Process:

    • Businesses must be certified by the DOAS to qualify for the set-aside program. Certification criteria will include business size, revenue, and operational capacity.

  4. Small Business Directory:

    • The DOAS will maintain a directory of certified small businesses to facilitate access to procurement opportunities.

  5. Annual Reporting Requirements:

    • Each state agency must submit an annual report detailing the total value of contracts awarded to small businesses under the set-aside program.
    • The DOAS will compile these reports and submit an annual summary to the Governor and the General Assembly.

  6. Corrective Action Plans:

    • Agencies that fail to meet the 20% set-aside requirement must submit a corrective action plan to the DOAS.

  7. Rules and Regulations:

    • The DOAS is authorized to develop necessary rules and regulations to implement and enforce the provisions of this act, including training sessions to assist small businesses in navigating procurement processes.

Impact

The Georgia Small Business Set-Aside Act is expected to significantly impact small businesses by:
- Increasing their access to state contracts, thereby enhancing their revenue potential.
- Promoting economic growth within local communities by supporting small business development.
- Encouraging state agencies to actively engage with and invest in small businesses, fostering a more diverse and competitive procurement environment.

Procedural Timeline

  • March 25, 2025: Bill introduced and entered the House Hopper.
  • March 27, 2025: Bill read for the first time in the House.
  • March 28, 2025: Bill read for the second time in the House.

Conclusion

The Georgia Small Business Set-Aside Act represents a strategic effort to bolster the state's small business sector by ensuring equitable access to state procurement opportunities. By mandating a set-aside percentage for small businesses, the legislation aims to create a more inclusive economic landscape in Georgia.

Compiled from official sources — confirm details with the bill’s official record.

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