2016 -- H 7119

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LC003512

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS

     

     Introduced By: Representatives Lancia, Malik, Azzinaro, Reilly, and Costa

     Date Introduced: January 13, 2016

     Referred To: House Finance

     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 14.2

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VETERAN-OWNED BUSINESS ENTERPRISES

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     37-14.2-1. 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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     37-14.2-2. 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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     37-14.2-3. Definitions. - As used in this chapter, the following words have the following

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meaning:

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     (1) "Compliance" means the condition existing when a contractor has met and

 

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implemented the requirements of this chapter.

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     (2) "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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     (3) "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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     (4) "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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     (5) "Veteran" shall mean all forms of military service members that are defined in chapter

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22 of title 30.

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     (6) "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 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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     37-14.2-4. 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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     37-14.2-5. 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. As to Rhode Island department of transportation contracts, the

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director of administration may delegate this authority to the director 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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     37-14.2-6. 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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     37-14.2-7. Reporting. -- By August 1, 2017 and each August 1 thereafter, the department

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

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

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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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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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