It is enacted by the General Assembly as follows:

SECTION 1. Title 37 of the General Laws entitled "Public Property and Works" is hereby amended by adding thereto the following chapter:

{ADD 37-21-1. Short title. -- ADD} {ADD This chapter shall be known and cited as the "Minority Business Development Compliance Act". ADD}

{ADD 37-21-2. Minority business development compliance account. -- ADD} {ADD (a) There is hereby established in the general fund of the state treasury a "minority business development compliance account" which shall maintain on deposit all moneys transferred to it under this chapter.

(b) Moneys contained in the minority business development compliance account shall be continuously appropriated to the department of administration to be administered by the department of administration for the purposes set forth in this chapter.

To the extent required by agency agreements described in subsection (d), the director of administration shall establish separate restricted sub-accounts for the purpose of retaining funds received for each project which is subject to the provisions of this chapter to be used exclusively for the project for which funds are received. All funds from such separate restricted sub-accounts not used for the purposes of this chapter may be returned to the appropriate agency for use in connection with the project which generated the funds.

(c) Except as set forth below in section 37-21-3(c), a percentage of the portion of any receipt by an agency of capital development funds for construction, renovation or rehabilitation purposes shall be transferred to the minority business development compliance account. Individual receipts for construction, renovation, or rehabilitation projects having total construction, renovation, and rehabilitation costs of less than one million dollars ($1,000,000) shall be exempt from the provisions of this chapter. To the extent possible, the funds shall be allocated to the minority business account prior to the commencement of work on a project financed by the receipt or the awarding of any prime contracts or subcontracts. For the purposes of this section, total construction costs shall include direct expenditures relating to construction, renovation, and rehabilitation, including the cost of materials, labor costs, architectural and engineering services.

(d) The portion of total construction, renovation, and rehabilitation costs of each receipt of capital development funds subject to this chapter which shall be transferred to the minority business development compliance account shall be determined based upon the following scale: ADD} {ADD PORTION OF RECEIPT TO BE ADD} {ADD AMOUNT TO BE TRANSFERRED ADD} {ADD USED FOR CONSTRUCTION, ADD} {ADD MINORITY BUSINESS ADD} {ADD RENOVATION, OR REHABILITATION ADD} {ADD DEVELOPMENT ACCOUNT ADD} {ADD With Costs of ADD} {ADD But less than ADD} {ADD Percent of Base "plus" ADD} {ADD At least ADD} {ADD percent over base ADD} {ADD (Base) ADD} {ADD $1,000,000 ADD} {ADD $10,000,000 ADD} {ADD 2.00% + 1.0% ADD} {ADD 10,000,000 ADD} {ADD 50,000,000 ADD} {ADD 1.25% + 0.5% ADD} {ADD 50,000,000 ADD} {ADD 100,000,000 ADD} {ADD 0.75% + 0.4% ADD} {ADD 100,000,000 ADD} {ADD 200,000,000 ADD} {ADD 0.60% + 0.2% ADD} {ADD 200,000,000 ADD} {ADD 300,000,000 ADD} {ADD 0.40% + 0.1% ADD} {ADD 300,000,000 ADD} {ADD 0.30% + 0.0% ADD}

{ADD In no event shall the amount allocated for the purposes of this act exceed nine hundred thousand dollars ($900,000) for any one (1) receipt of capital development funds.

The department of administration may enter into an agreement with an agency in respect of any receipt restricting the use of all or a portion of the funds transferred to the minority business development compliance account to the project or projects financed with such receipt and providing that such portion may be deposited in separate sub-accounts and budgeted for expenditure by the department of administration over the life of the projects funded.

(e) For purposes of this chapter, the term "agency" means the state and any department, agency, commission, board, council, corporation, authority, or subdivision thereof that has authority to receive capital development funds for the purpose of financing construction, renovation, or rehabilitation, but excludes cities and towns and any department, agency, commission, board, council, bureau, authority, or subdivision thereof. ADD}

{ADD 37-21-3. Use of minority business development compliance account. -- ADD} {ADD (a) All sums in the minority business development compliance account shall be used for the primary purpose of developing the monitoring and compliance functions relating to equal opportunity laws and the state's minority business enterprise programs. The account shall be used for the purpose of guaranteeing maximum minority business enterprise and minority workforce participation on state and federally funded construction projects, and to assure the fullest possible implementation of the state's minority business enterprise procurement program.

(b) Subject to any agency agreements described in section 37-21-2(d), funds shall be used for compliance analysis, on-site monitoring, special studies, outreach to the minority business enterprise community, training and apprenticeship programs, general administration of the program, and related purposes. The funds are intended to supplement those funds regularly allocated for minority business enterprise development purposes to the departments of administration and economic development.

(c) The following receipts of capital development funds shall be exempt from this chapter:

(i) Receipts of proceeds of previously authorized general obligation bonds issued by the state or municipalities.

(ii) Receipts by the Rhode Island Housing and Mortgage Finance Corporation to finance construction and mortgage loans for residential housing.

(iii) Receipts to finance projects undertaken exclusively by municipalities.

(iv) Receipts to finance projects undertaken by the department of transportation.

(v) Receipts having a construction portion of less than one million dollars ($1,000,000).

(vi) Receipts to finance projects for the benefit of not-for-profit end users, provided that no state agency is the owner or operator of the project. ADD}

{ADD 37-21-4. Annual summary of account expenditures. -- ADD} {ADD The department of administration shall promulgate rules and regulations to implement the provisions of this chapter. The director of administration shall on an annual basis or within sixty (60) days following the completion of a project, file with the minority business enterprise commission a summary of all expenditures from any sub-account established with respect to such project. ADD}

{ADD 37-21-5. Receipt of capital development funds defined. -- ADD} {ADD For purposes of this chapter, the term "receipt of capital development funds" or "receipt" means the receipt by an agency of funds from any source that are designated or appropriated by the agency for construction, renovation, or rehabilitation or to make a loan to any entity (other than an agency) to the extent such loan is for the purpose of financing construction, renovation, or rehabilitation. A receipt shall be deemed to occur on the later of the date such funds are actually received by the agency or the date they are so designated or appropriated. ADD}

SECTION 2. This act shall take effect upon passage.