2019 -- H 5036

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS - DISABILITY BUSINESS

ENTERPRISES

     Introduced By: Representatives Ruggiero, Azzinaro, McNamara, Abney, and
Marszalkowski

     Date Introduced: January 04, 2019

     Referred To: House Veterans` Affairs

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 37-2.2-2 and 37-2.2-3.1 of the General Laws in Chapter 37-2.2

entitled "Disability Business Enterprises" are hereby amended to read as follows:

     37-2.2-2. Definitions.

     As used in this chapter, the following words and phrases shall have the following

meanings unless the context shall indicate another or different meaning or intent:

     (1) "Persons with disabilities" or "person with a disability" shall mean any individual who

has a physical or mental impairment which constitutes a substantial barrier to employment as

certified by the department of human services or the department of behavioral healthcare,

developmental disabilities and hospitals, the U.S. Department of Veterans' Affairs, the Social

Security Administration, or any other certifying state or federal entity.

     (2) "Small disadvantaged businesses owned and controlled by persons with disabilities "

shall mean small business concern, which is at least fifty-one percent (51%) owned by one or

more person(s) with disabilities or, in the case of a publicly owned business, at least fifty-one

percent (51%) of the stock of which is owned by one or more disabled person, whose

management and daily business operations are controlled by one or more person(s) with

disabilities, and have fifty or fewer employees.

     (3) "A physical or mental impairment" shall mean any physiological disorder or

condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body

systems: neurological; musculoskeletal; special sense organs; respiratory, including speech

organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and

endocrine; or any mental psychological disorder, such as mental retardation, organic brain

syndrome, emotional or mental illness, and specific learning disabilities.

     37-2.2-3.1. Policy and applicability.

     (a) It is the policy of the state of Rhode Island that small disadvantaged disability

businesses shall have the maximum opportunity to participate in the performance of procurements

and projects as outlined in this chapter. This chapter shall apply to any and all state purchasing,

including, but not limited to, the procurement of goods and 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.

     (b) The director of administration, in consultation with the governor's commission on

disabilities, is authorized and directed to establish rules and regulation formulas for awarding

contracts to small disadvantaged businesses owned and controlled by persons with disabilities in

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

by state funds, in accordance with § 37-2-9(b)(14) on or before January 1, 2013.

     (c) The state's annual goal for disability business enterprises to participate in state

procurements and construction projects under this chapter shall be no less than three percent (3%)

of the total value of all contracts available to businesses in each fiscal year. The director of the

department of administration is further authorized to establish, by rules and regulations, formulas

for giving disability business enterprises a preference in contract and subcontract awards.

     SECTION 2. Chapter 37-2.2 of the General Laws entitled "Disability Business

Enterprises" is hereby amended by adding thereto the following sections:

     37-2.2-6. Sanctions.

     The director of the department of administration shall have the power to impose sanctions

upon contractors not in compliance with this chapter including, but not 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.

     37-2.2-7. Reporting.

     By August 1, 2020, 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 executive

secretary of the governor’s commission on disabilities for the period from July 1 to June 30 on

the actual utilization of disability-owned small business enterprises as contractors, subcontractors,

suppliers, and professional service providers for the state. The annual report shall include a list of

all disability-owned small businesses that participated as contractors, subcontractors, suppliers,

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

     SECTION 3. Chapter 37-2.4 of the General Laws entitled "Habilitation Procurement

Program" is hereby amended by adding thereto the following section:

     37-2.4-4. Habilitation facilities participation.

     The state's annual goal for the habilitation facilities to participate in state procurements

and construction projects under this chapter shall be no less than three percent (3%) of the total

value of all contracts available to businesses in each fiscal year. The director of the department of

administration is further authorized to establish, by rules and regulations, formulas for giving

disability business enterprises a preference in contract and subcontract awards.

     37-2.4-5. Sanctions.

     The director of the department of administration shall have the power to impose sanctions

upon contractors not in compliance with this chapter including, but not 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.

     37-2.4-5. Reporting.

     By August 1, 2020, and each August 1 thereafter, the department of administration shall

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

executive office of health and human services, the director of the department of behavioral

healthcare, developmental disabilities, and hospitals and the director of the office of rehabilitation

services for the period from July 1 to June 30 on the actual utilization of habilitation facilities as

contractors, subcontractors, suppliers, and professional service providers for the state. The annual

report shall include a list of all disability-owned small businesses that participated as contractors,

subcontractors, suppliers, and professional service providers for the state during the previous

fiscal year.

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     SECTION 4. 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 - DISABILITY BUSINESS

ENTERPRISES

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     This act would expand the existing disability business enterprises program by allowing

Veterans' Affairs, the Social Security Administration and others to verify that a business owner

has a disability and is eligible for the current program. This act would set a goal of no less than

three percent (3%) for state procurement.

     This act would take effect upon passage.

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