2020 -- H 8117

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LC005264

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- MINORITY BUSINESS

ENTERPRISE

     

     Introduced By: Representatives Williams, Hull, Blazejewski, Alzate, and Slater

     Date Introduced: July 17, 2020

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 37-14.1-3 and 37-14.1-7 of the General Laws in Chapter 37-14.1

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entitled "Minority Business Enterprise" are hereby amended to read as follows:

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     37-14.1-3. Definitions.

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     (a) "Affirmative action" means taking specific steps to eliminate discrimination and its

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effects, to ensure nondiscriminatory results and practices in the future, and to involve minority

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business enterprises fully in contracts and programs funded by the state.

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

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the requirements of this chapter.

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     (c) "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 for

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

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     (d) "Contractor" means any person or entity, organized under the laws of the United States

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or of any state, regardless of whether it has a physical location in this state and is one who

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participates, through a contract or subcontract, in any procurement or program covered by this

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chapter and includes lessees and material suppliers.

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     (e) "Minority" means a person who is a citizen or lawful permanent resident of the United

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States and who is:

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     (1) Black (a person having origins in any of the black racial groups of Africa);

 

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     (2) Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or

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other Spanish culture or origin, regardless of race);

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     (3) Portuguese (a person of Portuguese, Brazilian, or other Portuguese culture or origin,

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regardless of race);

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     (4) Asian American (a person having origins in any of the original peoples of the Far East,

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Southeast Asia, the Indian subcontinent, or the Pacific Islands);

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     (5) American Indian and Alaskan Native (a person having origins in any of the original

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peoples of North America); or

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     (6) Members of other groups or other individuals found to be economically and socially

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disadvantaged by the Small Business Administration under § 8(a) of the Small Business Act, as

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amended, 15 U.S.C. § 637(a).

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     (f) "Minority business enterprise" or "MBE" means a small business concern, as defined

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pursuant to § 3 of the federal Small Business Act, 15 U.S.C. § 632, and implementing regulations,

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which is owned and controlled by one or more minorities or women organized under the laws of

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the United States or of any state, regardless of whether it has a physical location in this state. For

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the purposes of this chapter, owned and controlled means a business:

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     (1) Which is at least fifty-one percent (51%) owned by one or more minorities or women

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or, in the case of a publicly owned business, at least fifty-one percent (51%) of the stock of which

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is owned by one or more minorities or women; and

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     (2) Whose management and daily business operations are controlled by one or more such

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individuals.; or

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     (3) Which is a nonprofit corporation, trust, unincorporated association or other organization

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exempt from federal income tax under section 501(c)(3) of title 26 of the United States code, whose

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board of directors is comprised of at least fifty-one percent (51%) minorities or women and whose

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management and daily business operations are controlled by one or more such individuals.

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     (g) "MBE coordinator" means the official designated to have overall responsibility for

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promotion of minority business enterprise in his or her departmental element.

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

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to implement the requirements of this chapter.

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     37-14.1-7. Establishment of criteria and guidelines.

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     The director of the department of administration shall establish, by rule and regulations

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adopted in accordance with chapter 35 of title 42, standards which shall determine whether a

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construction project is covered by this chapter, compliance formulas, procedures for

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implementation, and procedures for enforcement which are not inconsistent with 49 CFR 23 of the

 

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federal regulations; provided, however, that no company exceeding the net worth as set out in 49

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CFR 23.35 or as defined in 15 U.S.C. § 632, or any other limitation as to net worth set by federal

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law or regulation, shall exclude any company from eligibility under this chapter. As to Rhode Island

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department of transportation (RIDOT) contracts, the director of administration may delegate this

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authority to the director of transportation; provided, however, that any RIDOT contracts that do not

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rely on or utilize federal funds, shall comply with the provisions of this section and with the

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provisions of § 37-14.1-3.

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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 -- MINORITY BUSINESS

ENTERPRISE

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     This act would redefine the terms contractor and minority business enterprise to include

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any business organized under the laws of the United States or any other state, regardless of whether

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they have a physical location within this state, would include nonprofit businesses, would require

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the Rhode Island department of transportation to follow these provisions for any contract not

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utilizing federal funds and would also remove any limit on net worth for businesses eligible for

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consideration under this chapter.

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     This act would take effect upon passage.

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