Committee advances bill to streamline state certification, add women‑ and veteran‑owned firms to incentives

Representative Hong presented HB128 to the State Planning & Community Affairs committee as a measure to streamline state certification for state contract procurement and to add women‑owned and veteran‑owned firms to the state certification and related tax incentive. The sponsor said the bill removes the requirement that businesses first obtain federal DBE certification from the Department of Transportation before seeking state certification and places the state process under the Department of Administrative Services (DOAS).

Representative Hong described the bill's tax provision: prime contractors that subcontract with eligible certified firms may deduct 10% of qualified payments from gross income, up to a $100,000 cap. The bill extends that deduction beyond minority‑owned businesses to include women‑owned and veteran‑owned firms.

Autumn Cole (identified in testimony as general counsel of DOAS) described DOAS' implementation plan: DOAS intends to accept certifications from established national certifying organizations (for example SBA Women Owned Small Business, VA veteran verification and certain minority supplier councils) rather than creating wholly new duplicative vetting that would burden small firms. "DOAS' plan ... is to simply accept these certifications from other well known national certifying organizations," a DOAS representative said, emphasizing the goal of reducing paperwork and avoiding relocation of red tape.

Committee members asked for clarity on definitions (51% ownership thresholds) and how local procurement goals would interact with the state certification list. Witnesses said ownership thresholds remain at 51% for classification and that DOAS would provide policy to specify which outside certifications it accepts.

Representative Bentley moved a 'due pass' recommendation for HB128; Representative Reese recommended due pass as well. The motion was seconded and the committee voted in favor; the chair announced the motion passed and the bill will advance from committee.

What happens next: HB128 was given a favorable committee recommendation and will proceed to the next stage in the legislative process. DOAS will develop policy guidance identifying the third‑party certifying organizations it will accept and set implementation details.