Senate Bill #85 (2017)

AN ACT RELATING TO PUBLIC PROPERTY AND WORKS

Creates a veteran's preference in the issuance of state contracts.

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Changes since original draft

  • 2017 – S 0085
  • 2017 – S 0085 SUBSTITUTE A
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  • LC000365
  • LC000365/SUB A
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  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2017
  • ____________
  • A N A C T
  • RELATING TO PUBLIC PROPERTY AND WORKS
  • Introduced By: Senators Cote, Felag, Lynch Prata, and Seveney
  • Date Introduced: January 18, 2017
  • Referred To: Senate Special Legislation and Veterans Affairs
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND WORKS" is hereby amended by adding thereto the following chapter:
  • CHAPTER 14.3
  • VETERAN-OWNED BUSINESS ENTERPRISES
  • 37-14.3-1. Purpose.
  • The purposes of this chapter are to honor the courageous members of the military for their service and to assist them by increasing opportunities for active duty and veteran-owned small businesses to participate in state agency contracts and subcontracts, and to carry out the state's policy of supporting the fullest possible participation of firms owned and controlled by individuals actively serving or veterans in state-funded and state-directed public construction programs and projects and in-state purchases of goods and services. This includes assisting such businesses throughout the life of contracts in which they participate.
  • The purposes of this chapter are to honor veterans of the United States armed services for their service and to assist them by increasing opportunities for veteran-owned small businesses to participate in state agency contracts and subcontracts, and to carry out the state's policy of supporting the fullest possible participation of firms owned and controlled by certified veterans in state-funded and state-directed public works projects and in-state purchases of goods and services. This includes assisting such businesses throughout the life of contracts in which they participate.
  • 37-14.3-2. Applicability.
  • This chapter shall apply to any and all state purchasing, including, but not limited to, the procurement of goods, services, construction projects, or contracts funded in whole or in part by state funds, or funds which, in accordance with a federal grant or otherwise, the state expends or administers or in which the state is a signatory to the construction contract.
  • This chapter shall apply to any and all state procurements, including, but not limited to, the procurement of goods, services, public works projects, or contracts funded in whole or in part by state funds, or funds which, in accordance with a federal grant or otherwise, the state expends or administers or in which the state is a signatory to the construction contract.
  • 37-14.3-3. Definitions.
  • As used in this chapter, the following words shall have the following meanings:
  • (1) "Compliance" means the condition existing when a contractor has met and implemented the requirements of this chapter.
  • (2) "Contract" means a mutually binding legal relationship or any modification thereof obligating the seller to furnish supplies or services, including construction, and the buyer to pay for them. For purposes of this chapter, a lease is a contract.
  • (3) "Contractor" means one who participates, through a contract or subcontract, in any procurement or program covered by this chapter and includes lessees and material suppliers.
  • (4) "Noncompliance" means the condition existing when a recipient or contractor has failed to implement the requirements of this chapter.
  • (5) "Veteran" means all forms of military service members that are defined in chapter 22 of title 30.
  • (6) "Veteran-owned small business enterprise" means a business that has been verified by the United States Department of Veterans' Affairs in accordance with 38 CFR part 74, and may include a business owned by a surviving spouse or permanent caregiver of a veteran as provided by 38 CFR part 74.
  • (4) "Economically disadvantaged" means that the veteran's personal net worth is not in excess of the economic disadvantaged criteria as established in 49 CFR part 26.
  • (5) "Noncompliance" means the condition existing when a recipient or contractor has failed to implement the requirements of this chapter.
  • (6) "Small business concern" means a concern, including its affiliates, that is independently owned and operated, not dominant in the field of operations in which it is bidding on state government contracts, and qualified as a small business under the criteria and size standards in 13 CFR part 121.
  • (7) "Veteran" means a person who served on active duty with the U.S. Army, Air Force, Navy, Marine Corps or Coast Guard, for a minimum of one hundred eighty (180) days and who was discharged or released under conditions other than dishonorable. Reservists or members of the National Guard called to federal active duty (for other than training) or disabled from a disease or injury incurred or aggravated in the line of duty or while in training status also qualify as a veteran pursuant to 38 CFR part 74.
  • (8) "Veteran-owned small business enterprise" means a small business concern, not less than fifty-one percent (51%) of which is owned and controlled by one or more economically disadvantaged veterans, and may include a business owned by a surviving spouse or permanent caregiver of a veteran as provided by 38 CFR part 74.
  • 37-14.3-4. Veteran-owned small business enterprise participation.
  • The state annual goal for veteran-owned small business enterprises to participate in state contracts shall be no less than three percent (3%) of the total value of all contracts available to businesses in each fiscal year. The director of the department of administration is further authorized and directed to establish by rules and regulation formulas for giving veteran-owned small business enterprises a preference in all procurements and construction projects and in contract and subcontract awards.
  • (a) The state's annual goal for veteran-owned small business enterprises to participate in state procurements shall be no less than three percent (3%) of the total value of all contracts available to businesses in each fiscal year. The director of the department of administration is authorized and directed to establish by rules and regulations formulas for giving veteran-owned small business enterprises a preference in all procurements and public works projects and in contract and subcontract awards.
  • (b) The director of the department of administration is further authorized to establish, by rules and regulations adopted in accordance with chapter 35 of title 42, compliance formulas, procedures for implementation, and procedures for enforcement.
  • 37-14.3-5. Establishment of criteria, guidelines and certification.
  • (a) The director of the department of administration, in consultation with the division of veterans' affairs, shall establish, by rules and regulations adopted in accordance with chapter 35 of title 42, standards which shall determine whether a construction project is covered by this chapter, compliance formulas, procedures for implementation, and procedures for enforcement which are consistent with 49 CFR part 23. As to Rhode Island department of transportation contracts, the director of administration may delegate this authority to the director of transportation.
  • (b) The director of the department of administration may establish additional criteria to certify veteran-owned small business enterprises and maintain and update publicly accessible lists of veteran-owned small business enterprises that are certified by the department.
  • The director of the department of administration shall, in consultation with the office of veterans' affairs, establish, by rules and regulations adopted in accordance with chapter 35 of title 42, criteria to certify veteran-owned small business enterprises and maintain and update publically accessible lists of veteran-owned small business enterprises that are certified by the department.
  • 37-14.3-6. Sanctions.
  • (a) The director of the department of administration shall have the power to impose sanctions upon contractors not in compliance with this chapter and shall include, but not be limited to:
  • (1) Suspension of payments;
  • (2) Termination of the contract;
  • (3) Recovery by the state of ten percent (10%) of the contract award price as liquidated damages; and
  • (4) Denial of right to participate in future projects for up to three (3) years.
  • (b) As to Rhode Island department of transportation contracts, the director of the department of administration may delegate this authority to the director of transportation.
  • (b) As to Rhode Island department of transportation contracts, the director of the department of administration may delegate this authority to the director of the department of transportation.
  • 37-14.3-7. Reporting.
  • By August 1, 2018 and each August 1 thereafter, the department of administration shall submit an annual report to the governor, speaker of the house, senate president and associate director of veterans' affairs for the period from July 1 to June 30 on the actual utilization of veteran-owned small business enterprises as contractors, subcontractors, suppliers and professional service providers for the state. The annual report shall include a list of all veteran- owned small businesses that participated as contractors, subcontractors, suppliers and professional service providers for the state during the previous fiscal year.
  • By August 1, 2018 and each August 1 thereafter, the department of administration shall submit an annual report to the governor, speaker of the house, senate president and director of the office of veterans' affairs for the period from July 1 to June 30 on the actual utilization of veteran- owned small business enterprises as contractors, subcontractors, suppliers and professional service providers for the state. The annual report shall include a list of all veteran-owned small businesses that participated as contractors, subcontractors, suppliers and professional service providers for the state during the previous fiscal year.
  • SECTION 2. This act shall take effect upon passage.
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  • LC000365
  • LC000365/SUB A
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  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO PUBLIC PROPERTY AND WORKS
  • ***
  • This act would create a veteran's preference in the issuance of state contracts.
  • This act would take effect upon passage. ======== LC000365 ========
  • This act would take effect upon passage. ======== LC000365/SUB A ========

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for Passage

April 25, 2017 at 4:31pm
Yeas: 33 / Nays: 0 / Not voting: 4 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Calkin Y
Sen. Ciccone NV
Sen. Conley Y
Sen. Cote Y
Sen. Coyne Y
Sen. Crowley Y
Sen. DaPonte NV
Sen. DiPalma Y
Sen. Doyle Y
Sen. Felag Y
Sen. Fogarty Y
Sen. Gallo NV
Sen. Gee Y
Sen. Goldin Y
Sen. Goodwin Y
Sen. Jabour Y
Sen. Kettle Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey Y
Sen. Metts Y
Sen. Miller Y
Sen. Morgan NV
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis Y
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y

Floor vote for PASSAGE IN CONCURRENCE

June 27, 2017 at 5:40pm
Yeas: 70 / Nays: 0 / Not voting: 5 / Recused: 0
Legislator Vote
Rep. Abney Y
Rep. Ackerman Y
Rep. Ajello Y
Rep. Almeida Y
Rep. Amore Y
Rep. Azzinaro Y
Rep. Barros Y
Rep. Bennett Y
Rep. Blazejewski Y
Rep. Canario Y
Rep. Carson Y
Rep. Casey Y
Rep. Casimiro Y
Rep. Chippendale Y
Rep. Corvese Y
Rep. Costantino NV
Rep. Coughlin Y
Rep. Craven Y
Rep. Cunha Y
Rep. Diaz NV
Rep. Donovan Y
Rep. Edwards Y
Rep. Fellela Y
Rep. Filippi Y
Rep. Fogarty Y
Rep. Giarrusso Y
Rep. Handy Y
Rep. Hearn Y
Rep. Hull Y
Rep. Jacquard Y
Rep. Johnston Y
Rep. Kazarian NV
Rep. Keable Y
Rep. Kennedy Y
Rep. Knight Y
Rep. Lancia Y
Rep. Lima Y
Rep. Lombardi Y
Rep. Maldonado Y
Rep. Marshall Y
Rep. Marszalkowski Y
Rep. Mattiello Y
Rep. McEntee Y
Rep. McKiernan Y
Rep. McLaughlin Y
Rep. McNamara Y
Rep. Mendonca Y
Rep. Messier Y
Rep. Morgan Y
Rep. Morin Y
Rep. Nardolillo Y
Rep. Newberry Y
Rep. Nunes Y
Rep. O'Brien NV
Rep. O'Grady Y
Rep. Perez Y
Rep. Phillips NV
Rep. Price Y
Rep. Quattrocchi Y
Rep. Ranglin-Vassell Y
Rep. Regunberg Y
Rep. Roberts Y
Rep. Ruggiero Y
Rep. Serpa Y
Rep. Shanley Y
Rep. Shekarchi Y
Rep. Slater Y
Rep. Solomon Y
Rep. Tanzi Y
Rep. Tobon Y
Rep. Ucci Y
Rep. Vella-Wilkinson Y
Rep. Walsh Y
Rep. Williams Y
Rep. Winfield Y