2012 -- H 7628 AS AMENDED

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LC01662

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS - SMALL DISABILITY BUSINESS

ENTERPRISES

     Introduced By: Representatives Walsh, and Serpa

     Date Introduced: February 16, 2012

     Referred To: House Small Business

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 37-2.2-1, 37-2.2-2, 37-2.2-3.1 and 37-2.2-4 of the General Laws in

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Chapter 37-2.2 entitled "Disability Business Enterprises" are hereby amended to read as follows:

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     37-2.2-1. Short title and purpose. -- This chapter shall be known as the "Disability

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Business Enterprises Act." The purpose of this chapter is to carry out the state's policy of

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supporting the fullest possible participation of small disadvantaged businesses owned and

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controlled by persons with disabilities or where sixty percent (60%) of the work hours or direct

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labor is performed by employees who are persons with disabilities, or non-profit rehabilitation

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facilities in state funded and state directed public construction, public projects, and in state

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purchases of goods and services. This includes assisting disadvantaged disability businesses and

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non-profit rehabilitation facilities throughout the life of contracts in which they participate.

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     37-2.2-2. Definitions. -- As used in this chapter, the following words and phrases shall

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have the following meanings unless the context shall indicate another or different meaning or

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intent:

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      (1) "Persons with disabilities" or "person with a disability" shall mean any individual

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who has a physical or mental impairment which constitutes a substantial barrier to employment as

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certified by the department of behavioral healthcare, developmental disabilities and hospitals.

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      (2) "Products" shall mean any goods or merchandise provided by persons with

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disabilities if not less than sixty percent (60%) of the work hours or direct labor required for the

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products are performed by persons with disabilities.

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      (3) "Rehabilitation facility" or "rehabilitation facilities" shall mean a facility which is

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operated for the primary purpose of providing vocational rehabilitation services to and gainful

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employment for persons with disabilities. The rehabilitation services, listed below, may be

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provided directly or by the facility's parent corporation. The facility must provide singly or in

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combination one or more of the following services for persons with disabilities:

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      (i) Comprehensive rehabilitation services which shall include under one management:

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medical, psychological, social, and vocational services;

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      (ii) Testing, fitting, or training in the use of prosthetic and orthotic services;

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      (iii) Pre-vocational evaluation or recreational therapy;

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      (iv) Physical and occupational therapy;

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      (v) Speech and hearing services;

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      (vi) Psychological and social services;

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      (vii) Evaluation;

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      (viii) Personal and work adjustment;

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      (ix) Vocational training in combination with other rehabilitation services;

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      (x) Evaluation or control of special disabilities; and

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      (xi) Transitional or long-term employment for persons who have severe disabilities and

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cannot be readily absorbed into the competitive labor market.

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      (4) (2) "Services" shall mean any services provided by persons with disabilities if not

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less than sixty percent (60%) of the work hours or direct labor required for the services are

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performed by persons with disabilities.

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      (5) (2) "Small disadvantaged businesses owned and controlled by persons with

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disabilities " shall mean small business concern, which is at least fifty-one percent (51%) owned

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by one or more person(s) with disabilities or, in the case of a publicly owned business, at least

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fifty-one percent (51%) of the stock of which is owned by one or more disabled person, whose

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management and daily business operations are controlled by one or more person(s) with

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disabilities, and have fifty or fewer employees.

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      (6) (3) "A physical or mental impairment" shall mean any physiological disorder or

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condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body

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systems: neurological; musculoskeletal; special sense organs; respiratory, including speech

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organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and

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endocrine; or any mental psychological disorder, such as mental retardation, organic brain

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syndrome, emotional or mental illness, and specific learning disabilities.

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      (7) "Vocational rehabilitation services" shall mean any goods and services including

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diagnostic and related services necessary to render a person with a disability fit to engage in a

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gainful occupation and services to the families of persons with disabilities when those services

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will contribute substantially to the rehabilitation of those individuals.

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     37-2.2-3.1. Policy and applicability. -- (a) It is the policy of the state of Rhode Island

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that small disadvantaged disability businesses shall have the maximum opportunity to participate

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in the performance of procurements and projects as outlined in this chapter. This chapter shall

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apply to any and all state purchasing, including, but not limited to, the procurement of goods and

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services, construction projects, or contracts funded in whole or in part by state funds, or funds

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which, in accordance with a federal grant or otherwise, the state expends or administers or in

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which the state is a signatory to the construction contract.

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      (b) The director of administration, in consultation with the governor's commission on

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disabilities, is authorized and directed to establish rules and regulations regulation formulas for

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awarding contracts to small disadvantaged businesses owned and controlled by persons with

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disabilities in the procurement of goods, services, construction projects, or contracts funded in

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whole or in part by state funds, in accordance with section 37-2-9(b)(14) on or before January 1,

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2013.

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     37-2.2-4. Disability business enterprise committee -- Membership -- Duties. -- (a)

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There is hereby established within the governor's commission on disabilities a committee,

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consisting of nine (9) seven (7) persons, to be known as the disability business enterprise

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committee.

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      (b) The committee, shall consist of the director of the department of human services or

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his or her designee; the director of the department of behavioral healthcare, developmental

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disabilities and hospitals or his or her designee; the director of the economic development

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corporation or his or her designee; the state purchasing agent director of administration or his or

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her designee; and two (2) three (3) persons with disabilities and three (3) representatives of

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rehabilitation facilities in the state of Rhode Island appointed by the chairperson of the governor's

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commission on disabilities. All members of the committee shall serve without compensation. Of

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the number appointed originally under this chapter, one-third (1/3) shall be appointed for a term

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of one year; one-third (1/3) shall be appointed for a term of two (2) years; and one-third (1/3)

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shall be appointed for a term of three (3) years. Thereafter, vacancies created by expiration of

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terms shall be filled with appointments for terms of three (3) years. Members whose terms expire

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may be reappointed to succeed themselves. The chairperson of the governor's commission on

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disabilities or his or her designee shall serve as chairperson of the committee. The members of the

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committee shall elect a vice chairperson and other officers as are necessary from amongst

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themselves annually.

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      (c) The governor's commission on disabilities shall promulgate such rules and

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regulations, in accordance with the Administrative Procedures Act, chapter 35 of title 42, as are

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necessary and proper to ensure responsible management, operation, oversight of the committee,

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and ensure that all facilities, both nonprofit and profit-making, businesses referred to in sections

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37-2.2-3 and section 37-2.2-3.1 meet all applicable government regulations and standards,

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including those of the United States department of labor, the state department of human services,

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and the chief purchasing officer with regard to developing a program which involves small

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disadvantaged businesses as contractors, section 37-2-9(b)(14).

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      (d) The committee shall establish a procedure to certify small disadvantaged disability

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businesses and rehabilitation facilities that qualify under their regulation for a preference under

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section 37-2.2-3 or 37-2.2-3.1 and submit a list of the certified small disadvantaged disability

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businesses and rehabilitation facilities and the products and services provided by them to the chief

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purchasing officer at least once a year. The chief purchasing officer shall utilize that procurement

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list in the program which involves small disadvantaged businesses as contractors established by

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subsection 37-2-9(b)(14).

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     SECTION 2. Section 37-2.2-3 of the General Laws in Chapter 37-2.2 entitled "Disability

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Business Enterprises" is hereby repealed.

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     37-2.2-3. Preference for products and services produced by persons with disabilities.

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-- (a) Whenever any products made, manufactured by, or services provided by nonprofit

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rehabilitation facilities, or in profit making facilities where sixty percent (60%) of the work hours

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or direct labor is performed by employees who are disabled, meet the requirements of any

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department, institution, or agency supported, in whole or in part, by the state as to quantity,

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quality, and price, those products shall have preference over products or services from other

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providers.

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      (b) All departments, institutions, and agencies supported, in whole or in part, by the state

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shall purchase articles made or manufactured and services provided by persons with disabilities.

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Any political subdivision of the state may purchase those articles and services directly from those

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agencies.

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      (c) A list describing the styles, designs, sizes, and varieties of articles made by persons

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with disabilities and describing all available services and subcontract work which can be provided

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by those persons shall be prepared by the governor's commission on disabilities, disability

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business enterprise committee in cooperation with the state office of rehabilitation services. The

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governor's commission on disabilities shall cooperate with various facilities for persons with

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disabilities by submitting necessary information concerning the products and services to the state

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purchasing agent.

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     SECTION 3. This act shall take effect upon passage.

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LC01662

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS - SMALL DISABILITY BUSINESS

ENTERPRISES

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     This act would focus the disability business enterprise program to assisting small

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businesses owned by persons with disabilities. The act would eliminate the conflicts between this

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program and the chapter 37-2.4 habilitation procurement program.

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     This act would take effect upon passage.

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LC01662

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