2021 -- H 5717

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- MINORITY BUSINESS

ENTERPRISE

     Introduced By: Representatives Williams, Hull, Barros, Alzate, Batista, Henries, Biah,
Abney, Morales, and Diaz

     Date Introduced: February 24, 2021

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 37-14.1-1, 37-14.1-3 and 37-14.1-6 of the General Laws in Chapter

37-14.1 entitled "Minority Business Enterprise" are hereby amended to read as follows:

     37-14.1-1. Purpose.

     The purpose of this chapter is to carry out the state's policy of supporting the fullest possible

participation of firms owned and controlled by minorities and women (MBE's) in state funded and

state directed public construction programs and projects and in state purchases of goods and

services. This includes assisting MBE's throughout the life of contracts in which they participate.

     37-14.1-3. Definitions.

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

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

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

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

the requirements of this chapter.

     (c) "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.

     (d) "Contractor" means one a person or entity who participates, through a contract or

subcontract, in any procurement or program covered by this chapter and includes lessees and

material suppliers.

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

States state and who is:

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

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

other Spanish culture or origin, regardless of race);

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

regardless of race);

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

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

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

peoples of North America); or

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

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

amended, 15 U.S.C. § 637(a).

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

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

which is owned and controlled by one or more minorities or women and is organized and located

within the state. For the purposes of this chapter, owned and controlled means a business:

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

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 minorities or women; and

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

individuals.

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

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

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

to implement the requirements of this chapter.

     37-14.1-6. Minority business enterprise participation.

     (a) Minority business enterprises shall be included in all procurements and construction

projects under this chapter and shall be awarded a minimum of ten percent (10%) twenty-five

percent (25%) 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 the

certification process and formulas for giving minority business enterprises a preference in contract

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and subcontract awards.

     (b) Any minority business enterprise currently certified by the U.S. Small Business

Administration as an 8(a) firm governed by 13 C.F.R. part 124 shall be deemed to be certified by

the department of administration as a minority business enterprise and shall only be required to

submit evidence of federal certification of good standing.

     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 amend the Minority Business Enterprise chapter. The act would eliminate

women as a basis of qualification as a minority business enterprise. The act would further raise the

percentage of dollar value for applicable state procurement contracts from ten percent (10%) to

twenty-five percent (25%) for required minority business enterprises preference in contract awards.

     This act would take effect upon passage.

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