Public utilities; contracting with small, women-owned, or minority-owned businesses. (HB432)

Introduced By

Del. Jennifer Carroll Foy (D-Woodbridge) with support from co-patron Del. Hala Ayala (D-Woodbridge)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Public utilities; use of small, women-owned, or minority-owned business. Provides that in any proceeding in which the State Corporation Commission is required to determine whether costs incurred by a public utility in its delivery or provision of any goods or service are reasonable or prudent, the incremental portion of the costs incurred as a result of its contracting with a small, women-owned, or minority-owned business to deliver or provide the goods or service will not be found to be unreasonable or imprudently incurred if the costs of contracting with the small, women-owned, or minority-owned business do not exceed, by more than three percent, the costs that would have been incurred had it used the lowest-cost qualified business. The measure applies to businesses that are certified as small, women-owned, or minority-owned by the Department of Small Business and Supplier Diversity. Read the Bill »


Bill Has Passed


01/03/2020Prefiled and ordered printed; offered 01/08/20 20103279D
01/03/2020Referred to Committee on Labor and Commerce
01/11/2020Impact statement from SCC (HB432)
01/14/2020Assigned L & C sub: Subcommittee #3
01/23/2020Subcommittee recommends reporting with amendment (8-Y 1-N)
01/28/2020Reported from Labor and Commerce with amendment (17-Y 5-N) (see vote tally)
01/30/2020Read first time
01/31/2020Read second time
01/31/2020Committee amendment agreed to
01/31/2020Pending question ordered
01/31/2020Engrossed by House as amended HB432E
01/31/2020Engrossment reconsidered by House
01/31/2020Amendment by Delegate Simon agreed to
01/31/2020Printed as engrossed 20103279D-E
02/03/2020Read third time and passed House (57-Y 42-N)
02/03/2020VOTE: Passage (57-Y 42-N) (see vote tally)
02/04/2020Constitutional reading dispensed
02/04/2020Referred to Committee on Commerce and Labor
02/06/2020Impact statement from SCC (HB432E)
02/24/2020Reported from Commerce and Labor (13-Y 2-N) (see vote tally)
02/26/2020Constitutional reading dispensed (38-Y 0-N) (see vote tally)
02/27/2020Read third time
02/27/2020Passed Senate (22-Y 18-N) (see vote tally)
03/04/2020Bill text as passed House and Senate (HB432ER)
03/05/2020Impact statement from SCC (HB432ER)
03/05/2020Signed by Speaker
03/05/2020Signed by President
03/12/2020Enrolled Bill communicated to Governor on March 12, 2020
03/12/2020G Governor's Action Deadline 11:59 p.m., April 11, 2020
04/06/2020G Approved by Governor-Chapter 744 (effective 7/1/20)
04/06/2020G Acts of Assembly Chapter text (CHAP0744)


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 3 minutes.


William Ballance writes:

The legislators of Virginia should not discriminate against ANYONE ...including large well established businesses that offer the lowest bid. There should be a law requiring our state government to be fiscally prudent with our tax dollars and that ONLY the lowest bids be accepted for ALL state contracts. How much tax dollars would this save?

Waldo Jaquith writes:

There should be a law requiring our state government to be fiscally prudent with our tax dollars and that ONLY the lowest bids be accepted for ALL state contracts.

This is a terrible idea. Vendors routinely underbid, knowing that government will be trapped in that relationship and be forced to amend the contract to spend more, to avoid having to rebid the contract.