2011 -- S 0352 AS AMENDED

=======

LC01101

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2011

____________

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS - DISABILITY BUSINESS

ENTERPRISES

     Introduced By: Senators Lanzi, Tassoni, DeVall, Nesselbush, and DiPalma

     Date Introduced: February 16, 2011

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Sections 37-2.2-2, 37-2.2-3, 37-2.2-3.1 and 37-2.2-4 of the General Laws in

1-2

Chapter 37-2.2 entitled "Disability Business Enterprises" are hereby amended to read as follows:

1-3

     37-2.2-2. Definitions. -- As used in this chapter, the following words and phrases shall

1-4

have the following meanings unless the context shall indicate another or different meaning or

1-5

intent:

1-6

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

1-7

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

1-8

certified by the department of human services or the department of mental health, retardation, and

1-9

hospitals.

1-10

      (2) "Products" shall mean any goods or merchandise provided by persons with

1-11

disabilities if not less than sixty percent (60%) of the work hours or direct labor required for the

1-12

products are performed by persons with disabilities.

1-13

      (3) "Rehabilitation facility" or "rehabilitation facilities" shall mean a facility which is

1-14

operated for the primary purpose of providing vocational rehabilitation services to and gainful

1-15

employment for persons with disabilities. The rehabilitation services, listed below, may be

1-16

provided directly or by the facility's parent corporation. The facility must provide singly or in

1-17

combination one or more of the following services for persons with disabilities:

1-18

      (i) Comprehensive rehabilitation services which shall include under one management:

2-1

medical, psychological, social, and vocational services;

2-2

      (ii) Testing, fitting, or training in the use of prosthetic and orthotic services;

2-3

      (iii) Pre-vocational evaluation or recreational therapy;

2-4

      (iv) Physical and occupational therapy;

2-5

      (v) Speech and hearing services;

2-6

      (vi) Psychological and social services;

2-7

      (vii) Evaluation;

2-8

      (viii) Personal and work adjustment;

2-9

      (ix) Vocational training in combination with other rehabilitation services;

2-10

      (x) Evaluation or control of special disabilities; and

2-11

      (xi) Transitional or long-term employment for persons who have severe disabilities and

2-12

cannot be readily absorbed into the competitive labor market.

2-13

      (4) "Services" shall mean any services provided by persons with disabilities if not less

2-14

than sixty percent (60%) of the work hours or direct labor required for the services are performed

2-15

by persons with disabilities.

2-16

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

2-17

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

2-18

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

2-19

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

2-20

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

2-21

disabilities, and have fifty or fewer employees.

2-22

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

2-23

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

2-24

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

2-25

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

2-26

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

2-27

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

2-28

      (7) "Vocational rehabilitation services" shall mean any goods and services including

2-29

diagnostic and related services necessary to render a person with a disability fit to engage in a

2-30

gainful occupation and services to the families of persons with disabilities when those services

2-31

will contribute substantially to the rehabilitation of those individuals.

2-32

     (8) "Direct labor" shall mean and include include all work required for preparation,

2-33

processing, and packing of a commodity, or work directly relating to the performance of a

2-34

service, but not supervision, administration, inspection or shipping.

3-1

     37-2.2-3. Preference for products and services produced by persons with disabilities.

3-2

-- (a) Whenever any products made, manufactured by, or services provided by nonprofit

3-3

rehabilitation facilities, or in profit making facilities where sixty percent (60%) of the work hours

3-4

or direct labor is performed by employees who are disabled, meet the requirements of any

3-5

department, institution, or agency supported, in whole or in part, by the state as to quantity,

3-6

quality, and price, those products shall have preference over products or services from other

3-7

providers.

3-8

      (b) All departments, institutions, and agencies supported, in whole or in part, by the state

3-9

shall purchase articles made or manufactured and services provided by persons with disabilities.

3-10

Any political subdivision of the state may purchase those articles and services directly from those

3-11

agencies. If any government entity intends to procure any commodity or service on the

3-12

procurement list, that entity shall, in accordance with rules and regulations of the disability

3-13

business enterprise committee, procure such commodity or service, at the price established by the

3-14

committee, from any certified rehabilitation facility or small disadvantaged businesses owned and

3-15

controlled by persons with disabilities, if the commodity or service is available within the period

3-16

required by that government entity, except that this section shall not apply with respect to the

3-17

procurement of any commodity which is available for procurement from an industry established

3-18

pursuant to chapter 13-7 ("Prisoner Made Goods") or chapter 40-9 ("Services for People who are

3-19

Blind or Visually Impaired") of the general laws.

3-20

      (c) A procurement list describing the styles, designs, sizes, and varieties of articles made

3-21

by persons with disabilities and describing all available services and subcontract work which can

3-22

be provided by those persons shall be prepared by the governor's commission on disabilities',

3-23

disability business enterprise committee in cooperation with the state office of rehabilitation

3-24

services. The governor's commission on disabilities shall cooperate with various facilities for

3-25

persons with disabilities by submitting necessary information concerning the products and

3-26

services to the state purchasing agent.

3-27

     37-2.2-3.1. Policy and applicability. -- It is the policy of the state of Rhode Island that

3-28

small disadvantaged disability businesses shall have the maximum opportunity to participate in

3-29

the performance of procurements and projects as outlined in this chapter. This chapter shall apply

3-30

to any and all state purchasing, including, but not limited to, the procurement of goods and

3-31

services, construction projects, or contracts funded in whole or in part by state funds, or funds

3-32

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

3-33

which the state is a signatory to the construction contract.

3-34

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

4-1

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

4-2

awarding contracts to small disadvantaged businesses owned and controlled by persons with

4-3

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

4-4

whole or in part by state funds, in accordance with section 37-2-9(b)(14) on or before January 1,

4-5

2012.

4-6

     37-2.2-4. Disability business enterprise committee -- Membership -- Duties. -- (a)

4-7

There is hereby established within the governor's commission on disabilities a committee,

4-8

consisting of nine (9) persons, to be known as the disability business enterprise committee.

4-9

      (b) The committee, shall consist of the director of the department of human services or

4-10

his or her designee; the director of the department of mental health, retardation, and hospitals or

4-11

his or her designee; the director of the economic development corporation or his or her designee;

4-12

the state purchasing agent or his or her designee; and two (2) persons with disabilities and three

4-13

(3) representatives of rehabilitation facilities in the state of Rhode Island appointed by the

4-14

chairperson of the governor's commission on disabilities. All members of the committee shall

4-15

serve without compensation. Of the number appointed originally under this chapter, one-third

4-16

(1/3) shall be appointed for a term of one year; one-third (1/3) shall be appointed for a term of

4-17

two (2) years; and one-third (1/3) shall be appointed for a term of three (3) years. Thereafter,

4-18

vacancies created by expiration of terms shall be filled with appointments for terms of three (3)

4-19

years. Members whose terms expire may be reappointed to succeed themselves. The chairperson

4-20

of the governor's commission on disabilities or his or her designee shall serve as chairperson of

4-21

the committee. The members of the committee shall elect a vice chairperson and other officers as

4-22

are necessary from amongst themselves annually.

4-23

      (c) The governor's commission on disabilities shall promulgate such rules and

4-24

regulations, in accordance with the Administrative Procedures Act, chapter 35 of title 42, as are

4-25

necessary and proper to ensure responsible management, operation, oversight of the committee,

4-26

and ensure that all facilities, both nonprofit and profit-making, referred to in sections 37-2.2-3

4-27

and 37-2.2-3.1 meet all applicable government regulations and standards, including those of the

4-28

United States department of labor, the state department of human services, and the chief

4-29

purchasing officer with regard to developing a program which involves small disadvantaged

4-30

businesses as contractors, section 37-2-9(b)(14).

4-31

      (d) The committee shall establish a procedure to certify small disadvantaged disability

4-32

businesses and rehabilitation facilities that qualify under their regulation for a preference under

4-33

section 37-2.2-3 or 37-2.2-3.1 and submit a list of the certified small disadvantaged disability

4-34

businesses and rehabilitation facilities and the products and services provided by them to the chief

5-1

purchasing officer at least once a year. The chief purchasing officer shall utilize that procurement

5-2

list in the program which involves small disadvantaged businesses as contractors established by

5-3

section 37-2-9(b)(14).

5-4

     (e) The committee shall determine the fair market price of commodities and services

5-5

which are contained on the procurement list and which are offered for sale to the government by

5-6

any certified rehabilitation facility or small disadvantaged businesses owned and controlled by

5-7

persons with disabilities. The committee shall also revise from time to time in accordance with

5-8

changing market conditions its price determinations with respect to such commodities and

5-9

services. The committee may make rules and regulations regarding: (1) Specifications for

5-10

commodities and services on the procurement list; (2) The time of their delivery; and (3) Such

5-11

other matters as may be necessary to carry out the purposes herein.

5-12

     SECTION 2. This act shall take effect on July 1, 2011.

=======

LC01101

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC PROPERTY AND WORKS - DISABILITY BUSINESS

ENTERPRISES

***

6-1

     This act would authorize the disability business enterprise committee to determine the

6-2

fair market price of commodities and services which are contained on the procurement list and

6-3

which are offered for sale to the government by any certified rehabilitation facility or small

6-4

disadvantaged businesses owned and controlled by persons with disabilities. This act would also

6-5

require the department of administration to issue regulations for awarding contracts to small

6-6

disadvantaged businesses owned and controlled by persons with disabilities in the procurement of

6-7

goods, services, construction projects, or contracts funded in whole or in part by state funds on or

6-8

before January 1, 2012.

6-9

     This act would take effect on July 1, 2011.

=======

LC01101

=======