2014 -- H 7235

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LC003582

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

     Introduced By: Representatives Marshall, Costantino, Casey, O`Grady, and Gallison

     Date Introduced: January 30, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 37-2-80 of the General Laws in Chapter 37-2 entitled "State

Purchases" is hereby amended to read as follows:

     37-2-80. Selection of vendors and services with place of business located in Rhode

Island. – Selection of vendors and services with place of business located in Rhode Island--

Reciprocal preference provision in award of state contracts. -- (a) The State of Rhode Island

and Providence Plantations has a large number of well-qualified vendors and service-oriented

businesses. In instances where contracts are entirely supported by state funds and two (2) or more

vendors or service providers are judged to be equal on all other factors, the chief purchasing

officer shall select a vendor or service provider whose headquarters or primary place of business

is located within the state or secondly select those entities that propose a joint venture with a

vendor or service provider whose headquarters or primary place of business is within the state.

     (b) Notwithstanding any other provision of the law to the contrary commencing on

January 1, 2015, in the award of a contract entirely supported by state funds, after the original

bids have been received and an original lowest responsible bid is identified, the chief purchasing

officer or purchasing agency shall add a percent increase to the original bid of a nonresident

bidder equal to the percent, if any, of the preference given to such nonresident bidder in the state

in which such nonresident bidder resides. If, after application of such percent increase, the bidder

that submits the lowest responsible qualified bid is a resident bidder, the state contracting agency

shall award such contract to such resident bidder provided such resident bidder agrees, in writing,

to meet the original lowest responsible qualified bid. Any such agreement by such resident bidder

to meet the original lowest responsible qualified bid shall be made not later than seventy-two (72)

hours after such resident bidder receives notice from such state purchasing agency that such

resident bidder may be awarded such contract if such resident bidder agrees to meet the original

lowest responsible qualified bid. For the purposes of this section, "nonresident bidder" means a

business that is not a resident of the state that submits a bid in response to an invitation to bid by a

state purchasing agency; "resident bidder" means a business that submits a bid in response to an

invitation to bid by a state purchasing agency and that has paid unemployment taxes or income

taxes in this state during the twelve (12) calendar months immediately preceding submission of

such bid, has a business address in the state and has affirmatively claimed such status in the bid

submission; "contract" means "contract" as defined in § 37-2-7(5); and "purchasing agency"

means "purchasing agency" as defined in § 37-2-7(18).

     (c) Not later than January 1, 2015, and each January thereafter, the department of

administration shall publish a list of states that give preference to in-state bidders with the percent

increase applied in each state. Such list shall be made available to all state purchasing agencies

and may be relied upon by such agencies in determining the lowest responsible bidder.

     (d) This section shall not apply to contracts that are financed in part or in their entirety by

the federal government, including, but not limited to, contracts supported by the Federal Highway

Administration (FHA), the Federal Railroad Administration (FRA), the Federal Aviation

Administration (FAA) or the Environmental Protection Agency (EPA).

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

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     This act would establish a reciprocal preference provision in the awarding of state

contracts and would require the department of administration to publish a list of states that give

preference to in-state bidders with the percent increase applied in each state.

     This act would take effect upon passage.

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