2017 -- H 5090

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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 Lancia, Vella-Wilkinson, Mendonca, McLaughlin, and
Marshall

     Date Introduced: January 12, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND

WORKS" is hereby amended by adding thereto the following chapter:

CHAPTER 14.3

VETERAN-OWNED BUSINESS ENTERPRISES

     37-14.3-1. Purpose.

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

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

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

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

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

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

businesses throughout the life of contracts in which they participate.

     37-14.3-2. Applicability.

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

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

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

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

     37-14.3-3. Definitions.

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

implemented the requirements of this chapter.

     (b) "Contract" means a mutually binding legal relationship or any modification thereof

obligating the seller to furnish supplies or services, including construction, and the buyer to pay

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

     (c) "Contractor" means one who participates, through a contract or subcontract, in any

procurement or program covered by this chapter and includes lessees and material suppliers.

     (d) "Veteran" shall mean all forms of military service members that are defined in chapter

22 of title 30.

     (e) "Veteran-owned small business enterprise" means a business that has been verified by

the United States Department of Veterans' Affairs in accordance with 38 CFR part 74, and may

include a business owned by a surviving spouse or permanent caregiver of a veteran as provided

by 38 CFR part 74.

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

failed to implement the requirements of this chapter.

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

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

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

businesses in each fiscal year. In order to achieve this goal, veteran-owned small business

enterprises shall be included in all procurements and construction projects under this chapter and

shall be awarded a minimum of three percent (3%) of the dollar value of the entire procurement

or project. The director of the department of administration is further authorized to establish by

rules and regulation formulas for giving veteran-owned small business enterprises a preference in

contract and subcontract awards.

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

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

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

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

compliance formulas, procedures for implementation, and procedures for enforcement which are

not inconsistent with 49 CFR part 23. As to Rhode Island department of transportation contracts,

the director of administration may delegate this authority to the director of transportation.

     (b) The director of the department of administration may establish additional criteria to

certify veteran-owned small business enterprises and maintain and update publicly accessible lists

of veteran-owned small business enterprises that are certified by the department.

     37-14.3-6. Sanctions.

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

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

limited to:

     (1) Suspension of payments;

     (2) Termination of the contract;

     (3) Recovery by the state of ten percent (10%) of the contract award price as liquidated

damages; and

     (4) Denial of right to participate in future projects for up to three (3) years.

     (b) As to Rhode Island department of transportation contracts, the director of the

department of administration may delegate this authority to the director of transportation.

     37-14.3-7. Reporting.

     By August 1, 2017 and each August 1 thereafter, the department of administration shall

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

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

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

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

owned small businesses that participated as contractors, subcontractors, suppliers and

professional service providers for the state during the previous fiscal year.

     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.

     This act would take effect upon passage.

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