2017 -- H 5280

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LC001093

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS

     

     Introduced By: Representatives Morin, Casey, Phillips, Barros, and McLaughlin

     Date Introduced: January 27, 2017

     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 14.3

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VETERAN-OWNED BUSINESS ENTERPRISES

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     37-14.3-1. Purpose.

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     The purposes of this chapter are to honor the courageous members of the military for

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their service and to assist them by increasing opportunities for active duty and veteran-owned

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small businesses to participate in state agency contracts and subcontracts, and to carry out the

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state's policy of supporting the fullest possible participation of firms owned and controlled by

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individuals actively serving or veterans in state-funded and state-directed public construction

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programs and projects and in-state purchases of goods and services. This includes assisting such

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businesses throughout the life of contracts in which they participate.

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     37-14.3-2. Applicability.

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     This chapter shall apply to any and all state purchasing, including, but not limited to, the

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procurement of goods, services, construction projects, or contracts funded in whole or in part by

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

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administers or in which the state is a signatory to the construction contract.

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     37-14.3-3. Definitions.

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     As used in this chapter, the following words shall have the following meanings:

 

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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" means all forms of military service members that are defined in chapter 22

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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 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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     37-14.3-4. Veteran-owned small business enterprise participation.

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     The state annual goal for veteran-owned small business enterprises to participate in state

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contracts shall be no less than three percent (3%) of the total value of all contracts available to

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businesses in each fiscal year. The director of the department of administration is further

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authorized and directed to establish by rules and regulation formulas for giving veteran-owned

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small business enterprises a preference in all procurements and construction projects and in

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contract and subcontract awards.

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     37-14.3-5. Establishment of criteria, guidelines and certification.

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     (a) The director of the department of administration, in consultation with the division of

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veterans' affairs, shall establish, by rules and regulations adopted in accordance with chapter 35

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of title 42, standards which shall determine whether a construction project is covered by this

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chapter, compliance formulas, procedures for implementation, and procedures for enforcement

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which are consistent with 49 CFR part 23. As to Rhode Island department of transportation

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

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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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     37-14.3-6. Sanctions.

 

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     (a) The director of the department of administration shall have the power to impose

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sanctions upon contractors not in compliance with this chapter and shall include, but not be

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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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     37-14.3-7. Reporting.

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     By August 1, 2018 and each August 1 thereafter, the department of administration shall

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submit an annual report to the governor, speaker of the house, senate president and associate

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director of veterans' affairs for the period from July 1 to June 30 on the actual utilization of

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veteran-owned small business enterprises as contractors, subcontractors, suppliers and

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professional service providers for the state. The annual report shall include a list of all veteran-

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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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