2017 -- H 5280 SUBSTITUTE A

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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 veterans of the United States armed services for

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their service and to assist them by increasing opportunities for veteran-owned small businesses to

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participate in state agency contracts and subcontracts, and to carry out the state's policy of

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supporting the fullest possible participation of firms owned and controlled by certified veterans in

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state-funded and state-directed public works projects and in-state purchases of goods and

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services. This includes assisting such businesses throughout the life of contracts in which they

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participate.

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     37-14.3-2. Applicability.

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

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the procurement of goods, services, public works projects, or contracts funded in whole or in part

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

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or 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) "Economically disadvantaged" means that the veteran's personal net worth is not in

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excess of the economic disadvantaged criteria as established in 49 CFR part 26.

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     (5) "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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     (6) "Small business concern" means a concern, including its affiliates, that is

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independently owned and operated, not dominant in the field of operations in which it is bidding

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on state government contracts, and qualified as a small business under the criteria and size

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standards in 13 CFR part 121.

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     (7) "Veteran" means a person who served on active duty with the U.S. Army, Air Force,

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Navy, Marine Corps or Coast Guard, for a minimum of one hundred eighty (180) days and who

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was discharged or released under conditions other than dishonorable. Reservists or members of

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the National Guard called to federal active duty (for other than training) or disabled from a

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disease or injury incurred or aggravated in the line of duty or while in training status also qualify

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as a veteran pursuant to 38 CFR part 74.

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     (8) "Veteran-owned small business enterprise" means a small business concern, not less

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than fifty-one percent (51%) of which is owned and controlled by one or more economically

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disadvantaged veterans, and may include a business owned by a surviving spouse or permanent

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caregiver of a veteran as provided by 38 CFR part 74.

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

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     (a) The state's annual goal for veteran-owned small business enterprises to participate in

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

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

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

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small business enterprises a preference in all procurements and public works projects and in

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contract and subcontract awards.

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     (b) The director of the department of administration is further authorized to establish, by

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rules and regulations adopted in accordance with chapter 35 of title 42, compliance formulas,

 

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procedures for implementation, and procedures for enforcement.

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

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     The director of the department of administration shall, in consultation with the office of

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

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42, criteria to certify veteran-owned small business enterprises and maintain and update

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publically accessible lists of veteran-owned small business enterprises that are certified by the

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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 the department of

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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 director of the

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

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owned small business enterprises as contractors, subcontractors, suppliers and professional

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

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businesses that participated as contractors, subcontractors, suppliers and professional service

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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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