2008 -- S 2651

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LC01657

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2008

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A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- MINORITY BUSINESS

ENTERPRISE

     Introduced By: Senators Metts, Pichardo, Jabour, Perry, and Sosnowski

     Date Introduced: February 26, 2008

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 37-14.1-1, 37-14.1-3, 37-14.1-4 and 37-14.1-6 of the General

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Laws in Chapter 37-14.1 entitled "Minority Business Enterprise" are hereby amended to read as

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follows:

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     37-14.1-1. Purpose. -- The purpose of this chapter is to carry out the state's policy of

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supporting the fullest possible participation of firms owned and controlled by minorities and

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women (MBE's and WBE's) in state funded and state directed public construction programs and

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projects and in state purchases of goods and services. This includes assisting MBE's and WBE's

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throughout the life of contracts in which they participate.

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     37-14.1-3. Definitions. -- (a) "Affirmative action" means taking specific steps to

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eliminate discrimination and its effects, to ensure nondiscriminatory results and practices in the

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future, and to involve minority business enterprises fully in contracts and programs funded by the

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state.

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

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implemented 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

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

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

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procurement or program covered by this 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

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United 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

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East, 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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      (e) "Minority individual" means an individual who is a citizen of the United States or a

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noncitizen who is in full compliance with United States immigration law and who satisfies one or

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more of the following definitions:

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     (1) "African American" means a person having origins in any of the original peoples of

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Africa.

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     (2) "Asian American" means a person having origins in any of the original peoples of the

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Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands, including, but not

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limited to, Japan, China, Vietnam, Samoa, Laos, Cambodia, Taiwan, Northern Mariana, the

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Philippines, a U.S. Territory of the Pacific, India, Pakistan, Bangladesh, or Sri Lanka.

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     (3) "Latino American" means a person having origins in any of the peoples of Mexico,

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South or Central America, the Caribbean Islands, or Brazil.

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     (4) "Native American" means a person having origins in any of the original peoples of

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North America or who is recognized by a tribal organization; or

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

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socially disadvantaged by the Small Business Administration under section 8(a) of the Small

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Business Act, as amended, 15 U.S.C. section 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 section 3 of the federal Small Business Act, 15 U.S.C. section 632, and implementing

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regulations, which is owned and controlled by one or more minorities or women. For the

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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.

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      (f) "Minority business enterprise" or "MBE" means a small business concern that is at

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least fifty-one percent (51%) owned by one or more minority individuals that are found to be

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socially and economically disadvantaged by the Small Business Administration under section

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8(a) of the Small Business Act, as amended, 15 U.S.C. section 637(a), or in the case of any

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corporation, partnership, or limited liability company or other entity, at least fifty-one percent

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(51%) of the equity ownership is owned by one or more socially and economically disadvantaged

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minority individuals and the management and daily business operations are controlled by one or

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more of the socially and economically disadvantaged minority individuals who own it.

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     (g) "Women-owned business enterprises" or "WBE" means a small business concern that

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is at least fifty-one percent (51%) owned by one or more women that are found to be socially and

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economically disadvantaged by the Small Business Administration under section 8 (a) of the

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Small Business Act, as amended, 15 U.S.C. section 637(a), or in the case of any corporation,

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partnership, or limited liability company or other entity, at least fifty-one percent (51%) of the

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equity ownership is owned by one or more socially and economically disadvantaged women and

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the management and daily business operations are controlled by one or more of the socially and

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economically disadvantaged women who own it.

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

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failed to implement the requirements of this chapter.

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      (j) "Small Business concern" means a business as defined by the Federal Small Business

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Act, 15 U.S.C.

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     (k) State funded and state directed public construction programs and projects means any

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construction project, construction contract or procurement contract for goods and services funded

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in whole or in part by state funds, or funds which, in accordance with federal grant or otherwise,

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the state expends or administers or in which the state is a signatory. Quasi-independent state

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agencies, such as the Rhode Island Public Buildings Authority. The Narragansett Bay

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Commission and the Rhode Island Port Authority, are subject to the requirements outlined under

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these (regulations).

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     37-14.1-4. Policy. -- It is the policy of the state of Rhode Island that minority business

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enterprises (MBE's) and women-owned business enterprises (WBE's) shall have the maximum

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opportunity to participate in the performance of procurements and projects outlined in section 37-

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14.1-2.

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     37-14.1-6. Minority business enterprise participation. -- Minority and women-owned

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business enterprise participation. -- (a) Minority business enterprises shall be included in all

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procurements and construction projects under this chapter and shall be awarded a minimum of ten

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percent (10%) of the dollar value of the entire procurement or project. The director of the

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

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

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     (b) Women-owned business enterprises shall be included in all procurements and

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

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the dollar value of the entire procurement or project. The director of the department of

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

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women-owned business enterprises a preference in contract and subcontract awards. The MBE

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coordinator shall report state expended procurement dollars on minority and women-owned

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businesses. The report shall disclose procurement expenditures by the ethnic category and

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industry under the "minority definition."

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     SECTION 2. Chapter 37-14.1 of the General Laws entitled "Minority Business

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

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     37-14.1-7.1. Cooperation. -- All departments, boards, and agencies of the state shall

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cooperate with all state entities charged with equal opportunity, diversity, minority business

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enterprise, and/or civil rights concerns, such as the human rights commission, the state equal

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opportunity office, the human resources, outreach and diversity, the minority business enterprise

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office, the commission on women, the governor's commission on the handicapped, and shall

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furnish any advice and information, documentary and otherwise, that may be necessary or

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desirable to facilitate the purposes of this chapter.

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     37-14.1-7.2. Quarterly reports. -- The department of administration shall file quarterly

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reports, hereby known as the state contract roster, with the secretary of state of all state contracts.

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The secretary of state shall post the state contract roster on their website for public disclosure.

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Included in the report shall be:

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     (1) The date, dollar amount, date of issuance, contract period, designation of bid or no bid

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status of all state contracts issued during the quarter, by state and agency; and

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     (2) The Rhode Island economic development corporation shall make available

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electronically their directory of businesses in Rhode Island on their website to the secretary of

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state for public disclosure on the secretary of state website, as the recorder of public documents.

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The directory of businesses shall be all inclusive, annually updated, and shall designate minority

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and certified minority status. For purposes of this report, female owned businesses shall be

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distinguished from other minority groups. For purposes of this chapter, minority shall be

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consistent with the definitions contained within.

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     37-14.1-7.3. Severability. -- If any provision or part of this chapter, or application of this

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chapter to any person or circumstances is held unconstitutional or otherwise invalid, the

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remaining provisions of this chapter and the application of those provisions to any other person or

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persons or circumstances, other than those to which it is held invalid, shall not be affected by that

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invalidity.

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     SECTION 3. This act shall take effect upon passage.

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LC01657

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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 include women-owned business enterprises in all state procurements and

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construction projects and award these enterprises a minimum of ten percent (10%) of the dollar

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value of the entire project.

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     This act would take effect upon passage.

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LC01657

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