2013 -- S 0684

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LC01711

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS

     Introduced By: Senators Cote, Felag, and Lynch

     Date Introduced: March 06, 2013

     Referred To: Senate Special Legislation and Veterans Affairs

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND

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WORKS" is hereby amended by adding thereto the following chapter:

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     CHAPTER 2.5

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VETERAN-OWNED BUSINESS ENTERPRISES

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     37-2.5-1. Purpose. -- The purposes of this chapter are to honor the courageous members

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of the military for their service and to assist them by increasing opportunities for active duty and

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veteran-owned small businesses to participate in state agency contracts and subcontracts, and to

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carry out the state's policy of supporting the fullest possible participation of firms owned and

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controlled by individuals actively serving or veterans in state funded and state directed public

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construction programs and projects and in state purchases of goods and services. This includes

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assisting such businesses throughout the life of contracts in which they participate.

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     37-14.1-2. Applicability. -- This chapter shall apply to any and all state purchasing,

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including, but not limited to, the procurement of goods, services, construction projects, or

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contracts funded in whole or in part by state funds, or funds which, in accordance with a federal

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grant or otherwise, the state expends or administers or in which the state is a signatory to the

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construction contract.

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     37-14.1-3. Definitions. -- (a) "Compliance" means the condition existing when a

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contractor has met and implemented the requirements of this chapter.

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     (b) "Contract" means a mutually binding legal relationship or any modification thereof

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obligating the seller to furnish supplies or services, including construction, and the buyer to pay

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for them. For purposes of this chapter, a lease is a contract.

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     (c) "Contractor" means one who participates, through a contract or subcontract, in any

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procurement or program covered by this chapter and includes lessees and material suppliers.

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     (d) "Veteran" shall mean all forms of military service members that are defined in chapter

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30-22 of the general laws.

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     (e) "Veteran-owned small business enterprise" means a business that has been verified by

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the United States department of veterans' affairs in accordance with 38 CFR part 74, and may

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include a business owned by a surviving spouse or permanent caregiver of a veteran as provided

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by 38 CFR part 74.

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     (f) "Noncompliance" means the condition existing when a recipient or contractor has

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failed to implement the requirements of this chapter.

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     37-14.1-4. Veteran-owned small business enterprise participation. -- The state annual

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goal for veteran-owned small business enterprises to participate in state contracts shall be no less

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than three percent (3%) of the total value of all contracts available to businesses in each fiscal

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year. In order to achieve this goal veteran-owned small business enterprises shall be included in

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all procurements and construction projects under this chapter and shall be awarded a minimum of

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three percent (3%) of the dollar value of the entire procurement or project. The director of the

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department of administration is further authorized to establish by rules and regulation formulas

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for giving veteran-owned small business enterprises a preference in contract and subcontract

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awards.

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     37-14.1-5. Establishment of criteria, guidelines and certification. -- (a) The director of

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the department of administration shall in consultation with the division of veterans' affairs

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establish, by rule and regulations adopted in accordance with chapter 35 of title 42, standards

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which shall determine whether a construction project is covered by this chapter, compliance

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formulas, procedures for implementation, and procedures for enforcement which are not

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inconsistent with 49 CFR 23 of the federal regulations. As to Rhode Island department of

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transportation contracts, the director of administration may delegate this authority to the director

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of transportation.

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     (b) The director of the department of administration may establish additional criteria to

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certify veteran-owned small business enterprises and maintain and update publicly accessible lists

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of veteran-owned small business enterprises that are certified by the department.

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     37-14.1-6. Sanctions. -- (a) The director of the department of administration shall have

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the power to impose sanctions upon contractors not in compliance with this chapter and shall

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include, but not be limited to:

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     (1) Suspension of payments;

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     (2) Termination of the contract;

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     (3) Recovery by the state of ten percent (10%) of the contract award price as liquidated

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damages; and

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     (4) Denial of right to participate in future projects for up to three (3) years.

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     (b) As to Rhode Island department of transportation contracts, the director of the

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department of administration may delegate this authority to the director of transportation.

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     37-14.1-7. Reporting. -- By August 1, 2014 and each August 1st thereafter, the

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department of administration shall submit an annual report to the governor, speaker of the house,

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senate president and associate director of veterans' affairs for the period from July 1 to June 30 on

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the actual utilization of veteran-owned small business enterprises as contractors, subcontractors,

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suppliers and professional service providers for the state. The annual report shall include a list of

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all veteran-owned small businesses that participated as contractors, subcontractors, suppliers and

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professional service providers for the state during the previous fiscal year.

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     SECTION 2. This act shall take effect upon passage.

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LC01711

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS

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     This act would create a veteran's preference in the issuance of state contracts.

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     This act would take effect upon passage.

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LC01711

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