2025 -- S 0945 SUBSTITUTE A | |
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LC002535/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2025 | |
____________ | |
A N A C T | |
RELATING TO PUBLIC PROPERTY AND WORKS -- RHODE ISLAND ANTI-BID- | |
RIGGING ACT | |
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Introduced By: Senators DiPalma, Lauria, de la Cruz, Raptakis, McKenney, LaMountain, | |
Date Introduced: April 04, 2025 | |
Referred To: Senate Judiciary | |
(Attorney General) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND WORKS" |
2 | is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 27 |
4 | RHODE ISLAND ANTI-BID-RIGGING ACT |
5 | 37-27-1. Short title. |
6 | This chapter shall be known and may be cited as the “Rhode Island Anti-Bid-Rigging Act.” |
7 | 37-27-2. Definitions. |
8 | For the purposes of this chapter, unless the context clearly requires otherwise: |
9 | (1) “Bid rigging” means an intentional and concerted activity of two (2) or more persons |
10 | to predetermine the winning bidder of a contract proposed, offered, or otherwise submitted for |
11 | competitive bidding by a government entity including, but not limited to, a contract proposed, |
12 | offered, or otherwise submitted for competitive bidding in violation of processes set forth pursuant |
13 | to law, regulation or ordinance including, but not limited to, procurement processes established |
14 | pursuant to chapter 2 of title 37 or chapter 55 of title 45, or regulations promulgated thereto: |
15 | (i) “Bid rigging” includes, but is not limited to, any one or more of the following: |
16 | (A) Price fixing; |
17 | (B) Submitting identical bids; |
18 | (C) Rotating bids; |
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1 | (D) Sharing profits with a contractor who does not submit the low bid; |
2 | (E) Submitting prearranged bids, agreed-upon higher or lower bids or other complementary |
3 | bids; |
4 | (F) Dividing up territories to restrict competition; and/or |
5 | (G) Not submitting a bid; |
6 | (ii) Notwithstanding other provisions of this chapter, it is not unlawful for the same person |
7 | to simultaneously submit bids for the same work, or a portion thereof, as a proposed prime |
8 | contractor and subcontractor. |
9 | (2) “Debarment” means the exclusion from all state procurements and termination of |
10 | existing or outstanding contracts. |
11 | (3) “Person” means an individual or a firm, association, organization, business trust, |
12 | company, corporation, joint venture, partnership, proprietorship, or other business entity, whether |
13 | or not for profit, and any government or public entity. |
14 | (4) “Government entity” means any department, commission, council, board, bureau, |
15 | committee, institution, legislative body, agency, or government corporation of the executive, |
16 | legislative, or judicial branches of state, and/or local governments including, but not limited to, |
17 | those entities defined in § 37-2-7 relating to state governmental entities, public agencies, state |
18 | agencies, and governmental entities. |
19 | (5) “Prime contractor” means any person who has entered into a public contract. |
20 | 37-27-3. Bid rigging prohibited. |
21 | It is unlawful for any person to knowingly conspire, collude, combine, or agree with |
22 | another to commit or attempt to commit bid rigging involving: |
23 | (1) A contract for the purchase of equipment, goods, services or materials or a contract for |
24 | construction or repair proposed, offered, or otherwise submitted by a government entity; or |
25 | (2) A subcontract for the purchase of equipment, goods, services or materials or for |
26 | construction or repair with a prime contractor or proposed prime contractor for a government entity. |
27 | 37-27-4. Intentional interference with contract submission and award by public |
28 | official. |
29 | (a) It is unlawful for any person who is an official of or employed by any unit of state or |
30 | local government, or any public officers who are subject to the code of ethics set forth in § 36-14- |
31 | 4, to knowingly and willfully convey, outside of any official procurement process adopted pursuant |
32 | to law, regulation or ordinance by that unit of government including, but not limited, to |
33 | procurement processes established pursuant to chapter 2 of title 37 or chapter 55 of title 45, or |
34 | regulations promulgated thereto, to any person any information concerning the specifications for |
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1 | such contract or the identity of any particular potential subcontractors, when conveyance of such |
2 | information concerning the specifications or contractors in the bid or offer is intended to improperly |
3 | influence acceptance of such bid or offer in contravention of the official procurement process. It |
4 | shall not constitute a violation of this subsection to convey information intended to clarify plans or |
5 | specifications regarding a public contract where such disclosure of information is also made |
6 | generally available to the public. |
7 | (b) It is unlawful for any person who is an official of or employed by any unit of state or |
8 | local government, or any public officers who are subject to the code of ethics set forth in § 36-14- |
9 | 4, to knowingly and willfully take any action to deliberately and improperly influence the award in |
10 | favor of a particular bidder, prime contractor or subcontractor in contravention of official |
11 | procurement processes set forth pursuant to law, regulation or ordinance including, but not limited, |
12 | to procurement processes established pursuant to chapter 2 of title 37 or chapter 55 of title 45, or |
13 | regulations promulgated thereto, when such invitation to bid is required by law, regulation, or |
14 | ordinance. |
15 | 37-27-5. Penalties. |
16 | (a) Unless otherwise specified, any violation of §§ 37-27-3 or 37-27-4 shall be deemed a |
17 | felony punishable by imprisonment not exceeding three (3) years and by a fine of up to one million |
18 | dollars ($1,000,000) or three (3) times the value of the submitted award or bid, whichever is greater. |
19 | Any criminal proceeding brought pursuant to this chapter must be commenced within three (3) |
20 | years after the alleged criminal act occurred. |
21 | (b) It shall not constitute a violation of this chapter when any person who is an official of |
22 | or employed by any unit of state or local government follows procedures established by federal, |
23 | state or local laws or regulations including, but not limited, to processes established pursuant to |
24 | chapter 2 of title 37 or chapter 55 of title 45, or regulations promulgated thereto. |
25 | (c) It shall not constitute a violation of this chapter for any person who is an official of or |
26 | employed by any unit of state or local government to provide to any person a copy of the transcript |
27 | or other summary of any pre-bid conference when such transcript or summary is also made |
28 | generally available to the public. |
29 | 37-27-6. Debarment. |
30 | (a) Any vendor debarred pursuant to this chapter shall not perform work as a prime |
31 | contractor, consultant, subcontractor or subconsultant for the state and shall be excluded from all |
32 | state procurements and any contract between the state and the vendor shall be terminated. |
33 | (b) Any person who is found to be in violation of any provision of this chapter shall be |
34 | subject to debarment, pursuant to chapter 2 of title 37 or any regulations promulgated thereto, from |
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1 | state contracting for a period of up to five (5) years. |
2 | (c) A government entity that proposes, offers, or otherwise submits a contract for |
3 | competitive bidding shall maintain a current list of persons excluded or ineligible, by reason of |
4 | debarment, for participation in contracts or subcontracts with that government entity. |
5 | 37-27-7. Severability. |
6 | Should any part of this chapter be declared invalid or unenforceable, or the enforcement or |
7 | compliance with it is suspended, restrained, or barred, either by the state or by the final judgment |
8 | of a court of competent jurisdiction, the remainder of this chapter shall remain in full force and |
9 | effect. |
10 | 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 -- RHODE ISLAND ANTI-BID- | |
RIGGING ACT | |
*** | |
1 | This act would establish the Rhode Island Anti-Bid-Rigging Act. |
2 | This act would take effect upon passage. |
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