Subcommittee hears bill urging 20% procurement target for small businesses

Governmental Affairs · February 10, 2026

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Summary

HB 863 would direct state procurement officials to make 'reasonable efforts' to dedicate 20% of annual procurement contracts to small businesses; the National Federation of Independent Business expressed conditional support and urged light registration burdens.

House Bill 863 would require "reasonable efforts" to dedicate 20% of annual procurement contracts to projects and contracts involving small businesses and would further define small-business participation in state contracting.

The sponsor framed small businesses as "the backbone" of many communities and said the measure is intended to increase inclusion of small firms in state procurement. "Reasonable efforts to dedicate 20% of the annual procurement contracts to projects and contracts involving small businesses," the presenter said, describing the target as a guide for procurement practices.

A committee member asked whether the requirement could be restricted to Georgia-based businesses; the presenter said he would welcome that change and offered to discuss it offline. Hunter Loggins with the National Federation of Independent Business testified in conditional support, noting small firms are struggling and urging that registration and certification procedures not be overly burdensome to avoid excluding potential participants.

No vote was taken; the measure will be available for further committee consideration.