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1999 SESSION

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991579400
HOUSE BILL NO. 2580 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the House Committee on General Laws) (Patrons Prior to Substitute--Delegates Phillips [HB 2580] and Clement [HB 2747]) House Amendments in [ ] -- February 9, 1999 A BILL to amend the Code of Virginia by adding a section numbered 11-47.5, relating to the Public Procurement Act; preference for HUBZone small businesses.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 11-47.5 as follows:

§ 11-47.5. Preference for HUBZone small businesses.

A. As used in this section:

"Federal act" means the federal HUBZone Act of 1997 (Title VI of P.L. 105-135).

"HUBZone" or "historically underutilized business zone" has the same meaning given that term in the federal act.

"HUBZone small business" means a business included on the list of qualified HUBZone small business concerns maintained by the Administrator of the U.S. Small Business Administration as required by the federal act pursuant to 15 U.S.C. § 632 (p) (5) (D).

B. In determining the award of any contract for products or services to be purchased for use by agencies of the Commonwealth using competitive sealed bidding, a price offered by a HUBZone small business shall be deemed to be lower than the price offered by another bidder (other than another HUBZone small business), if the price offered by the HUBZone small business is not more than five percent higher than the price offered by the otherwise lowest responsive and responsible bidder.

C. In the case of a tie bid, after application of the provisions of subsection B, between a bidder who is a HUBZone small business and a bidder who is not a HUBZone small business, preference shall be given to the bidder who is a HUBZone small business.

D. A bidder shall not be eligible for the preference provided by this section unless it submits, with its bid, certification that it is a HUBZone small business. Any bidder who knowingly makes a wrongful claim that it is a HUBZone small business shall be subject to debarment as provided in § 11-46.1.

[ 2. That the provisions of this act shall take effect on July 1, 2000. ]