Rhode Island House Bill H5748

Rhode Island 2023 Regular Session

• Introduced: 2/21/23
• Refer: 2/21/23

Caption

Minority Business Enterprise

Impact

This legislation would significantly alter state procurement policies, encouraging greater participation from minority and women-owned enterprises in public projects. By establishing a clear legal framework for the minimum awards, the bill seeks to enhance economic equity in Rhode Island, providing these businesses a more robust platform to compete for government contracts and thereby fostering diversity in the state’s economy. Furthermore, it ensures that these requirements cannot be waived during states of emergency, emphasizing the ongoing commitment to inclusivity.

Summary

House Bill 5748 aims to amend Rhode Island's laws regarding minority business enterprises by increasing the minimum percentage of project values that must be awarded to these businesses. Specifically, the bill raises the required minimum from 10% to 20% for all public procurements and construction projects. It also mandates that at least 10% of this value must be awarded to businesses owned and controlled by minorities, as well as another 10% to businesses owned and controlled by women. The intent is to improve economic opportunities for minority and women-owned businesses within the state.

Contention

While proponents argue that this bill will create a more level playing field for minority and women-owned businesses, concerns may arise regarding the practicality of these requirements. Critics could question whether the increased mandates might limit opportunities for other contractors or complicate the bidding process. Moreover, there may be apprehension from existing businesses that fear their competitive edge could be diminished by the necessity to meet these new regulations, leading to debates about the balance between promoting minority businesses and maintaining an equitable procurement environment for all.