Department would audit equal-opportunity practices in state programs

The Department of General Services would run an Equal Opportunity Audit Program with help from the Pennsylvania Human Relations Commission. The program would cover contractors and people or organizations seeking state loans, grants, contracts, jobs, or tax incentives. Selected entities would certify that they maintain nondiscrimination policies, publish merit standards, and collect and keep certain demographic data as allowed by law. The department would use an independent qualified auditor and may select entities randomly or based on published risk criteria. If enacted, this section would take effect 60 days after enactment, and covered entities would be audited at least once every three years.

The department would review demographic data, merit standards, procurement and subcontracting practices, and barriers to protected groups, then publish a summary of its findings. Audits would examine entities covered by the program, including their opportunities involving state contracts, loans, grants, jobs, and tax incentives. The department would protect confidential business information and personally identifying information under applicable law. An entity found in material noncompliance would receive written notice and up to 90 days to submit and carry out corrective action. The audit would compare required demographic data with benchmark data and could identify disparity thresholds not justified by merit standards or a legitimate business need. If enacted, the department would have to issue implementing regulations within one year after the section takes effect; a notified entity would have no more than 90 days after notice to cure the violation.

After an entity fails to cure material noncompliance within 90 days, an awarding agency could suspend or end a contract, withhold or recover funds, deny or revoke a tax benefit, or seek debarment. These remedies would apply to entities that receive written notice of material noncompliance and do not cure it within the allowed period. Agencies and the department would have to match remedies to the seriousness and persistence of the violation and the entity's corrective efforts. The remedies would be in addition to those available under other state or federal laws, regulations, or contracts. The bill would preserve existing rules on source selection and contract formation. The remedies could be used after the 90-day cure period ends without a cure.