It is enacted by the General Assembly as follows:

SECTION 1. Section 37-2-7 of the General Laws in Chapter 37-2 entitled "State Purchases" is hereby amended to read as follows:

37-2-7. Definitions -- The words defined in this section shall have the meanings set forth below whenever they appear in this chapter, unless the context in which they are used clearly requires a different meaning or a different definition is prescribed for a particular section, group of sections or provision.

(1) "Business" shall mean any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted.

(2) "Change order" shall mean a written order signed by the purchasing agent or contractor directing or allowing the contractor to make changes which the changes clause of the contract authorizes the purchasing agent or contractor to order without the consent of the contractor or purchasing agent.

(3) "Chief purchasing officer for a state agency" shall mean the director of administration, who shall be responsible for all purchases by the state and for a public agency. "Chief purchasing officer" shall mean the executive director or the chief operational officer of the agency.

(4) "Construction" shall mean the process of building, altering, repairing, improving, or demolishing any public structures or building, or other public improvements of any kind to any public real property. It does not include the routine maintenance or repair of existing structures, buildings, or real property performed by salaried employees of the state of Rhode Island in the usual course of their jobs.

(5) "Contract" shall mean all types of agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It shall include awards; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; purchase orders; and construction management contracts. It also includes supplemental agreements with respect to any of the foregoing. "Contract" does not include labor contracts with employees of state agencies.

(6) "Contract amendment" shall mean any written alteration in the specifications, delivery point, rate of delivery, contract period, price, quantity, or other contract provisions of any existing contract, whether accomplished by unilateral action in accordance with a contract provision, or by mutual action of the parties to the contract. It shall include bilateral actions, such as supplemental agreements, and unilateral actions, such as change orders, administrative changes, notices of termination, and notices of the exercise of a contract option.

(7) "Contractor" shall mean any person having a contract with a governmental body.

(8) "Data" shall mean recorded information, regardless of form or characteristic.

(9) "Designee" shall mean a duly authorized representative of a person holding a superior position.

(10) "Employee" shall mean an individual drawing a salary from a state governmental entity.

(11) "State governmental entity" shall mean any entity created as a legislative body or a public or state agency by the general assembly or constitution of this state, except for municipal, regional or county governmental entities.

(12) "May" shall mean permissive.

(13) "Negotiation" shall mean contracting by either the method set forth in section 37-2-19, 37-2-20, or 37-2-21.

(14) "Person" shall mean any business, individual, organization, or group of individuals.

(15) "Procurement" shall mean the purchasing, buying, renting, leasing, or otherwise obtaining of any supplies, services, or construction. It shall also include all functions that pertain to the obtaining of any supply, service, or construction item, including a description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

(16) "Public agency" shall mean the Rhode Island industrial recreational building authority, the Rhode Island economic development corporation, the Rhode Island industrial facilities corporation, the Rhode Island refunding bond authority, the Rhode Island housing and mortgage finance corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit authority, the Rhode Island student loan authority, the Howard development corporation, the water resources board corporate, the Rhode Island health and education building corporation, the Rhode Island higher education assistance authority, the Rhode Island turnpike and bridge authority, the Blackstone Valley district commission, the Narragansett Bay water quality management district commission, Rhode Island telecommunications authority, the convention center authority, Channel 36 foundation, the Rhode Island lottery commission their successors and assigns, and any other body corporate and politic which has been or will be created or established within this state excepting cities and towns. The board of governors for higher education for all purchases which are funded by restricted, sponsored or auxiliary monies shall be included in the definition of "public agency" only through July 1, 2000 only through July 1, 2001.

(17) "Purchase request" or "purchase requisition" shall mean that document whereby a using agency requests that a contract be entered into to obtain goods and/or services for a specified need, and may include, but is not limited to, the technical description of the requested item, delivery requirements, transportation mode request, criteria for evaluation of proposals, and/or preparation of suggested sources of supply, and information supplied for the making of any written determination and finding required by section 37-2-6.

(18) "Purchasing agency" shall mean any state governmental entity which is authorized by this chapter, its implementing regulations, or by way of delegation from the chief purchasing officer to contract on its own behalf rather than through the central contracting authority of the chief purchasing officer.

(19) "Purchasing agent" shall mean any person authorized by a governmental entity in accordance with procedures prescribed by regulations, to enter into and administer contracts and make written determinations and findings with respect thereto. The term shall also include an authorized representative acting within the limits of authority. "Purchasing agent" shall also mean the person appointed in accordance with section 37-2-1.

(20) "Services" shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product, other than reports which are merely incidental to the required performance of services. "Services" does not include labor contracts with employees of state agencies.

(21) "Shall" shall mean imperative.

(22) "State" shall mean the state of Rhode Island and any of its departments or agencies and public agencies.

(23) "Supplemental agreement" shall mean any contract modification which is accomplished by the mutual action of the parties.

(24) "Supplies" shall mean all property, including, but not limited to, leases of real property, printing, and insurance, except land or permanent interest in land.

(25) "Using agency" shall mean any state governmental entity which utilizes any supplies, services or construction purchased under this chapter.

(26) As used in section 37-2-59, "architect" or "engineer" services shall mean those professional services within the scope of practice of architecture, professional engineering, or registered land surveying, pertaining to construction, as defined by the laws of this state. "Consultant" means any person with whom the state and/or a public agency has a contract which contract provides for the person to give direction or information as regards a particular area of knowledge in which the person is a specialist and/or has expertise.

(27) For purposes of sections 37-2-62 -- 37-2-70, "directors" shall mean those members of a public agency appointed pursuant to a statute, who comprise the governing authority of the board, commission, authority, and/or corporation.

(28) "State agency" shall mean any department, commission, council, board, bureau, committee, institution, or other governmental entity of the executive or judicial branch of this state not otherwise established as a body corporate and politic, and shall include, without limitation, the board of governors for higher education except for purchases which are funded by restricted sponsored or auxiliary moneys, for the period through July 1, 2000, for the period through July 1, 2001, as provided for in subdivision (16) of this section, and the board of regents for elementary and secondary education.

(29) "Governmental entity" shall mean any department, commission, council, board, bureau, committee, institution, legislative body, agency, or government corporation of the executive, legislative or judicial branches of state, federal and/or local governments.

SECTION 2. This act shall take effect upon passage.