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2 | 2 | | HOUSE DOCKET, NO. 3891 FILED ON: 1/20/2023 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 2997 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Antonio F. D. Cabral |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to public procurement and inclusive entrepreneurship. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Antonio F. D. Cabral13th Bristol1/20/2023Patricia A. Duffy5th Hampden1/26/2023Christopher Hendricks11th Bristol1/26/2023Paul A. Schmid, III8th Bristol2/1/2023Vanna Howard17th Middlesex2/1/2023 1 of 20 |
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16 | 16 | | HOUSE DOCKET, NO. 3891 FILED ON: 1/20/2023 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 2997 |
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18 | 18 | | By Representative Cabral of New Bedford, a petition (accompanied by bill, House, No. 2997) of |
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19 | 19 | | Antonio F. D. Cabral and others relative to public procurement and inclusive entrepreneurship |
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20 | 20 | | through the development, inclusion, and utilization of certified minority-owned business |
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21 | 21 | | enterprises. State Administration and Regulatory Oversight. |
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22 | 22 | | The Commonwealth of Massachusetts |
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23 | 23 | | _______________ |
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24 | 24 | | In the One Hundred and Ninety-Third General Court |
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25 | 25 | | (2023-2024) |
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26 | 26 | | _______________ |
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27 | 27 | | An Act relative to public procurement and inclusive entrepreneurship. |
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28 | 28 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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29 | 29 | | of the same, as follows: |
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30 | 30 | | 1 SECTION 1. Subsection (i) of section 16G of chapter 6A of the General Laws, as |
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31 | 31 | | 2appearing in the 2020 Official Edition, is hereby amended by inserting, at the end of the first |
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32 | 32 | | 3paragraph, the following sentence: |
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33 | 33 | | 4 The annual report shall include an analysis of the share of economic development funds |
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34 | 34 | | 5administered by state agencies, including loans, grants, tax credits, and technical assistance |
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35 | 35 | | 6services, provided to entities certified under federal or state law as a minority-owned business. |
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36 | 36 | | 7 SECTION 2. Subsection (i) of said section 16G of said chapter 6A, as so appearing, is |
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37 | 37 | | 8hereby further amended by striking out, in the second paragraph, clauses 8 and 9, lines 82-94, |
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38 | 38 | | 9inclusive, and inserting in place thereof the following: |
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39 | 39 | | 10 (8) a report of patents or products resulting from agency-funded activities; |
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40 | 40 | | 11 (9) a description of technical assistance that the agency provided; and 2 of 20 |
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41 | 41 | | 12 (10) the share of loans, grants, tax credits, or technical assistance services provided to |
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42 | 42 | | 13entities certified under federal or state law as a minority-owned business. |
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43 | 43 | | 14 SECTION 3. Subsection (l) of said section 16G of said chapter 6A, as so appearing, is |
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44 | 44 | | 15hereby amended by striking out the second paragraph and inserting in place thereof the following |
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45 | 45 | | 16paragraph: |
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46 | 46 | | 17 The secretary of housing and economic development, with the assistance of economic |
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47 | 47 | | 18development planning council appointed under this section, shall develop and implement a |
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48 | 48 | | 19written comprehensive economic development policy for the commonwealth and a strategic plan |
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49 | 49 | | 20for implementing the policy. The policy shall set long term goals and measurable benchmarks |
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50 | 50 | | 21which are not limited to a particular gubernatorial administration and shall give consideration to |
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51 | 51 | | 22any impacts the plan may have on businesses employing 10 or fewer people. The strategic plan |
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52 | 52 | | 23shall include any major economic development initiatives and programs of the secretariat and |
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53 | 53 | | 24any agencies subject to this section. The strategic plan shall also include an assessment of racial |
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54 | 54 | | 25and ethnic disparities in employment and business ownership and an analysis of how the |
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55 | 55 | | 26economic development initiatives contained in the plan will contribute to reducing such |
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56 | 56 | | 27disparities. In developing the policy, the council shall review the published economic |
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57 | 57 | | 28development policy and plan in effect at the commencement of the governor's term of office and |
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58 | 58 | | 29may hold public hearings throughout the commonwealth. However, the council shall hold at least |
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59 | 59 | | 30one public hearing on the topic of racial and ethnic disparities in employment and business |
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60 | 60 | | 31ownership in the commonwealth. |
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61 | 61 | | 32 SECTION 4. Chapter 7 of the General Laws, as so appearing, is hereby amended by |
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62 | 62 | | 33inserting after section 62, the following section: 3 of 20 |
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63 | 63 | | 34 Section 63. (a) The general court finds and declares that: |
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64 | 64 | | 35 (1) It is in the state’s interest to encourage competitive business opportunities for all of its |
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65 | 65 | | 36people. As anchor institutions, hospitals and higher education institutions are uniquely positioned |
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66 | 66 | | 37to build relationships within the communities they serve through the development, inclusion, and |
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67 | 67 | | 38utilization of certified minority-owned business enterprises whenever possible |
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68 | 68 | | 39 (2) By providing that each major anchor institution submit to the Office of Supplier |
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69 | 69 | | 40Diversity a report explaining the institutions supplier diversity statement and expressing its goals |
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70 | 70 | | 41regarding certified minority-owned businesses, and the office placing that information on the |
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71 | 71 | | 42office’s internet website, that online resource will help facilitate these supplier relationships. |
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72 | 72 | | 43 (b) As used in this section, the following words shall have the following meanings, unless |
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73 | 73 | | 44a contrary intent is clearly indicated: |
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74 | 74 | | 45 “Anchor institution”, a licensed hospital or college or university physically located in |
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75 | 75 | | 46Massachusetts. |
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76 | 76 | | 47 “Certified business enterprise”, a state- or federally-designated minority-owned business |
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77 | 77 | | 48physically located in the United States. |
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78 | 78 | | 49 “Office”, means the Office of Supplier Diversity. |
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79 | 79 | | 50 “Operating expenses”, means operating expenses, excluding physician professional fees, |
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80 | 80 | | 51as reflected in the annual financial report submitted to the office. |
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81 | 81 | | 52 (c) On or before July 1 of each year, each anchor institution with operating expenses of |
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82 | 82 | | 53$50,000,000 or more, or $25,000,000 or more when operating as a component of a larger |
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83 | 83 | | 54hospital or university system, shall submit an annual report to the office on its minority 4 of 20 |
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84 | 84 | | 55enterprise procurement efforts during the previous year. The annual report shall include all of the |
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85 | 85 | | 56following: |
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86 | 86 | | 57 (1) The anchor institution’s supplier diversity policy statement. |
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87 | 87 | | 58 (2) The anchor institution’s outreach and communications to minority business |
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88 | 88 | | 59enterprises, including: |
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89 | 89 | | 60 (i) How the anchor institution encourages and seeks out minority business enterprises to |
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90 | 90 | | 61become potential suppliers. |
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91 | 91 | | 62 (ii) How the anchor institution encourages its employees involved in procurement to seek |
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92 | 92 | | 63out minority business enterprises to become potential suppliers. |
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93 | 93 | | 64 (iii) How the anchor institution conducts outreach and communication to minority |
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94 | 94 | | 65business enterprises. |
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95 | 95 | | 66 (iv) How the anchor institution supports organizations that promote or certify minority |
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96 | 96 | | 67business enterprises. |
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97 | 97 | | 68 (v) Information regarding appropriate contacts at the anchor institution for interested |
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98 | 98 | | 69business enterprises. |
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99 | 99 | | 70 (vi) The anchor institution’s procurements that are made from minority business |
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100 | 100 | | 71enterprises with at least a majority of the enterprise’s workforce in Massachusetts, with each |
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101 | 101 | | 72category aggregated separately, to the extent that information is readily accessible. An anchor |
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102 | 102 | | 73institution that is part of a system may report the diversity of its procurement in compliance with |
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103 | 103 | | 74this subparagraph from a system level if there are suppliers that provide services or goods to all 5 of 20 |
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104 | 104 | | 75units within the system. An anchor institution shall report the diversity of the remainder of its |
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105 | 105 | | 76procurement, including the suppliers that do not resource the entire system. |
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106 | 106 | | 77 (3) The report may include other relevant information the office or anchor institution |
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107 | 107 | | 78deems necessary. |
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108 | 108 | | 79 (d) This section shall not be construed to require quotas, set-asides, or preferences in an |
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109 | 109 | | 80anchor institution’s goods or services. |
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110 | 110 | | 81 (e) By July 1, 2021, the office shall establish and maintain a link on the office’s internet |
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111 | 111 | | 82website that provides public access to the contents of each anchor institution’s report on minority |
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112 | 112 | | 83business enterprise procurement efforts. The office shall include a statement on the office’s |
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113 | 113 | | 84internet website that the information contained in the anchor institution’s report on minority |
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114 | 114 | | 85business enterprises is provided for informational purposes only. |
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115 | 115 | | 86 SECTION 5. Chapter 10 of the General Laws, as so appearing, is hereby amended by |
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116 | 116 | | 87inserting after section 10B, the following section: |
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117 | 117 | | 88 Section 10C. Prior to the state treasurer’s deposit of cash reserves to eligible lending and |
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118 | 118 | | 89banking institutions, as defined in section 10A of chapter 10 of the general laws, the treasurer |
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119 | 119 | | 90shall ensure the division of banks, as defined in section 1 of chapter 167 of the general laws, has |
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120 | 120 | | 91collected data required of lending institutions pursuant to section 13A of chapter 167 of the |
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121 | 121 | | 92general laws. |
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122 | 122 | | 93 SECTION 6. Chapter 167 of the General Laws, as so appearing, is hereby amended by |
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123 | 123 | | 94inserting, after section 13, the following section: 6 of 20 |
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124 | 124 | | 95 Section 13A. (a) The division of banks shall require the collection of small business |
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125 | 125 | | 96lending data from all lenders, including online lenders, and small businesses on an annual basis. |
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126 | 126 | | 97The division shall also analyze the impacts that lenders, including online lenders, and their |
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127 | 127 | | 98practices have on minority borrowers in the Commonwealth. |
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128 | 128 | | 99 (b) The division shall promulgate regulations relative to the required collection of small |
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129 | 129 | | 100business lending data. Said regulations shall include, but not be limited to the following: |
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130 | 130 | | 101 (1) the establishment of a central depository of the collection and analysis of small |
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131 | 131 | | 102business lending data, to include, but not be limited to the following: lending and banking |
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132 | 132 | | 103institutions’ average annual percent rates, default rates, and fees. |
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133 | 133 | | 104 (2) procedures for the solicitation and acceptance of reports regarding small businesses’ |
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134 | 134 | | 105incidents of predatory lending practices. |
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135 | 135 | | 106 (3) procedures for assessing the credibility and accuracy of reports of small business |
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136 | 136 | | 107lending data from lending institutions. |
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137 | 137 | | 108 (c) The division shall file an annual report with the information obtained pursuant to |
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138 | 138 | | 109subsections (a) and (b) as well as recommendations for best practices for small business |
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139 | 139 | | 110borrower lending with the house and senate clerks and the house and senate chairs of the joint |
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140 | 140 | | 111committee on financial services not later than July 1. |
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141 | 141 | | 112 SECTION 7. (a) Notwithstanding any general or special law to the contrary, all |
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142 | 142 | | 113appointive boards and commissions in the commonwealth established by the Massachusetts |
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143 | 143 | | 114general laws, including boards and commissions of a political subdivision of the state, if not |
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144 | 144 | | 115otherwise provided by law, shall adopt policies and practices designed to increase the racial and 7 of 20 |
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145 | 145 | | 116ethnic diversity of their board membership and commission membership. To meet this goal, said |
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146 | 146 | | 117boards and commissions shall report on an annual basis to the secretary of state and the office of |
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147 | 147 | | 118the governor the following: (i) data on specific qualifications, skills and experience that the |
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148 | 148 | | 119board appointees considers for its board of directors and nominees for the board of directors and |
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149 | 149 | | 120commissions; (ii) the self-identified race and ethnicity of each member of said board of directors |
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150 | 150 | | 121and commissions; (iii) the number of total individuals on said boards and commissions; iv) a |
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151 | 151 | | 122description of the process of said board or commission for identifying, evaluating, and |
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152 | 152 | | 123determining nominees and appointees including, but not limited to, how demographic diversity is |
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153 | 153 | | 124considered; and (v) a description of the policies and practices of said boards and commissions for |
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154 | 154 | | 125promoting diversity, equity and inclusion among said boards and commissions and (vi) the total |
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155 | 155 | | 126number of people of color and the total number of individuals who serve as members on all |
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156 | 156 | | 127boards and commissions in the commonwealth. |
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157 | 157 | | 128 (b) To track and measure progress, an annual report shall be published by the office of |
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158 | 158 | | 129the governor, annually, not later than July 1, that provides: (i) demographic data provided by all |
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159 | 159 | | 130public board and commission applicants, including boards and commissions of a political |
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160 | 160 | | 131subdivision of the state, relative to ethnicity and race; and (ii) demographic data provided by all |
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161 | 161 | | 132public board and commission nominees or appointees, including boards and commissions of a |
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162 | 162 | | 133political subdivision of the state, relative to ethnicity and race, pursuant to section (a) of this act. |
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163 | 163 | | 134Any demographic data disclosed or released pursuant to this section shall be anonymized to the |
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164 | 164 | | 135extent practicable and shall not identify an individual applicant, nominee or appointed board |
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165 | 165 | | 136member or commissioner. Said demographic data shall also disclose aggregated statistical data |
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166 | 166 | | 137by commission or board sector and by secretariat that governs said board or commission, if |
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167 | 167 | | 138applicable. 8 of 20 |
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168 | 168 | | 139 (c) Notwithstanding any general or special law to the contrary, and pursuant to any |
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169 | 169 | | 140established appointment procedures of individual boards or commissions in the commonwealth, |
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170 | 170 | | 141racial diversity shall be considered in any subsequent appointments made after July 1, 2021, to |
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171 | 171 | | 142any public boards and commissions in the commonwealth. |
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172 | 172 | | 143 (d) By January 1, 2025, all boards and commissions shall, to the extent feasible, broadly |
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173 | 173 | | 144reflect the general public of the commonwealth, including the percentage of racial and ethnic |
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174 | 174 | | 145minorities in the general population. |
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175 | 175 | | 146 SECTION 8. Sections 4 and 10 shall take effect on July 1, 2025. |
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176 | 176 | | 147 SECTION 9. Chapter 149 of the General Laws, as so appearing, is hereby amended by |
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177 | 177 | | 148inserting after section 44M, the following section: |
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178 | 178 | | 149 44N. (a) For purposes of this section the following phrases shall have the following |
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179 | 179 | | 150meanings: |
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180 | 180 | | 151 ''Underutilized bidder'', any minority person or business beneficially owned by one or |
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181 | 181 | | 152more minority persons in conformity with clauses (1) to (4), inclusive, of the definition of |
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182 | 182 | | 153''minority business'' set forth in section 40N of chapter 7, any business beneficially owned by one |
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183 | 183 | | 154or more women as provided in the definition of ''women-owned business'' set forth in said |
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184 | 184 | | 155section 40N, any small business as provided in any micro- - of chapter 23A, and any local |
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185 | 185 | | 156business, defined as having its principal office in the geographic area over which the |
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186 | 186 | | 157procurement officer has jurisdiction and the owners of more than 50 percent of the business |
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187 | 187 | | 158enterprise are residents of the geographic area over which the procurement officer has |
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188 | 188 | | 159jurisdiction. 9 of 20 |
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189 | 189 | | 160 ''Sheltered market program'', a program under which certain contracts are designated by |
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190 | 190 | | 161the chief procurement officer for procurement from one or more classes of underutilized bidders. |
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191 | 191 | | 162 (b) When authorized by majority vote, a chief procurement officer may establish a |
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192 | 192 | | 163sheltered market program in conformity with the requirements of this section. Such authorization |
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193 | 193 | | 164may apply to a single contract or to any number or types of contracts, shall specify the class or |
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194 | 194 | | 165classes of underutilized bidders to be included in the sheltered market program, and shall to the |
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195 | 195 | | 166extent constitutionally required be based on findings that such program is a remedy for the |
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196 | 196 | | 167present effects of past discrimination. |
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197 | 197 | | 168 (c) A procurement officer shall not solicit or award a contract pursuant to a sheltered |
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198 | 198 | | 169market program until the chief procurement officer, after notice and a public hearing, has |
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199 | 199 | | 170approved written procedures for the operation of such program, has filed such procedures with |
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200 | 200 | | 171the state office of minority and women business assistance and the secretary of state, and has |
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201 | 201 | | 172published such procedures or a summary thereof in a newspaper of general circulation within the |
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202 | 202 | | 173area served by the governmental body and in any publication established by the secretary of state |
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203 | 203 | | 174for the advertisement of such notices. |
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204 | 204 | | 175 Such written procedures shall, at a minimum, include: |
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205 | 205 | | 176 (1) procedures for the certification of underutilized bidders, which procedures shall |
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206 | 206 | | 177require the use of standardized application forms, the submission of applications sworn to under |
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207 | 207 | | 178the penalties of perjury, the maintenance of certification records by the chief procurement officer |
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208 | 208 | | 179or his designee, an opportunity for a business denied certification to be heard on such denial, the |
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209 | 209 | | 180issuance of certificates valid for a period not longer than two years, notice and an opportunity to |
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210 | 210 | | 181be heard prior to revocation of certificates, and a public information campaign to encourage 10 of 20 |
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211 | 211 | | 182certification; provided, however, that a governmental body's certification procedures may |
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212 | 212 | | 183authorize participation in its sheltered market program by any eligible underutilized bidder duly |
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213 | 213 | | 184certified under the sheltered market program of another governmental body or by the state office |
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214 | 214 | | 185of minority and women business assistance; |
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215 | 215 | | 186 (2) in the event the authorization required by paragraph (b) does not designate the |
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216 | 216 | | 187specific contracts to which the sheltered market program applies, procedures for designating |
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217 | 217 | | 188such contracts, which procedures shall (i) set forth criteria for designating contracts, (ii) require |
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218 | 218 | | 189that each designation be in writing and based on written findings that the contract meets such |
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219 | 219 | | 190criteria, and (iii) provide for an administrative review of the appropriateness of including the |
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220 | 220 | | 191contract in the sheltered market program; |
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221 | 221 | | 192 (3) procedures for ensuring effective competition among underutilized bidders for |
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222 | 222 | | 193contracts within the sheltered market program, including procedures requiring (i) supplemental |
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223 | 223 | | 194advertising in media serving underutilized communities, (ii) for the procurement of the |
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224 | 224 | | 195construction, reconstruction, installation, demolition, maintenance or repair of any building in |
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225 | 225 | | 196the amount of one thousand dollars but less than ten thousand dollars, the receipt of written or |
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226 | 226 | | 197oral quotations from no fewer than three certified underutilized bidders customarily providing |
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227 | 227 | | 198such construction services; provided, however, that a quotation shall not be considered until the |
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228 | 228 | | 199bidder has submitted to the procurement officer a copy of a valid certificate, and (iii) for the |
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229 | 229 | | 200procurement of the construction, reconstruction, installation, demolition, maintenance or repair |
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230 | 230 | | 201of any building in the amount of ten thousand dollars or more, the receipt of responsive bids or |
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231 | 231 | | 202proposals from no fewer than three certified underutilized bidders; provided, however, that a bid |
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232 | 232 | | 203or proposal shall not be considered unless accompanied by a copy of a valid certificate; and 11 of 20 |
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233 | 233 | | 204 (4) procedures for review and assessment of the sheltered market program, at least |
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234 | 234 | | 205annually, based upon a detailed written report by the chief procurement officer or his designee, |
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235 | 235 | | 206which report shall at a minimum set forth for the twelve months then ending (i) the number and |
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236 | 236 | | 207dollar value of contracts awarded to underutilized bidders under the sheltered market program, |
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237 | 237 | | 208(ii) the total number, the percentage, the total dollar value, and the percentage dollar value of |
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238 | 238 | | 209contracts awarded by the governmental body to underutilized bidders eligible for participation in |
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239 | 239 | | 210the sheltered market program, (iii) a description of other efforts undertaken by the governmental |
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240 | 240 | | 211body to increase its contracting with underutilized bidders, and (iv) recommendations for |
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241 | 241 | | 212continuing, modifying, or terminating the program. |
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242 | 242 | | 213 A violation of any valid procedure adopted pursuant to this section shall constitute a |
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243 | 243 | | 214violation of this chapter. |
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244 | 244 | | 215 (d) Advertisements for a contract within the sheltered market program shall state that the |
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245 | 245 | | 216contract will be awarded under a sheltered market program and shall specify the class or classes |
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246 | 246 | | 217of underutilized bidders to which competition for the contract is limited. |
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247 | 247 | | 218 (e) In no event shall a contract designated for inclusion in a sheltered market program be |
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248 | 248 | | 219awarded on a sole source basis. If fewer than three responsive bids, proposals, or quotations are |
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249 | 249 | | 220received, or if all bids, proposals, or quotations are rejected, the contract shall not be awarded |
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250 | 250 | | 221under the sheltered market program. |
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251 | 251 | | 222 (f) No contract shall be awarded under a sheltered market program for a term exceeding |
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252 | 252 | | 223three years, including any renewal, extension, or option. No underutilized bidder shall be |
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253 | 253 | | 224awarded a sheltered market program contract if at the time of award such bidder is a party to any |
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254 | 254 | | 225other sheltered market program contract the term of which, including any renewal, extension, or 12 of 20 |
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255 | 255 | | 226option, has not expired. No underutilized bidder shall be awarded more than three sheltered |
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256 | 256 | | 227market program contracts by one or more governmental bodies within any one-year period. |
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257 | 257 | | 228 (g) Except as otherwise provided in this section, all procurements under a sheltered |
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258 | 258 | | 229market program shall be undertaken in accordance with the provisions of this chapter. |
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259 | 259 | | 230 SECTION 10. Section 44A of chapter 149, as so appearing, is hereby amended by |
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260 | 260 | | 231inserting after subsection 5, the following subsection: |
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261 | 261 | | 232 (6) An awarding authority awarding a contract under this chapter may ensure the prompt |
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262 | 262 | | 233payment to any subcontractor with whom the contractor has contracted by implementing a |
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263 | 263 | | 234prompt payment program. Any subcontractor that has fully performed in accordance with the |
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264 | 264 | | 235terms of the contract is entitled to prompt payment from a contractor under such a program. |
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265 | 265 | | 236 (a) If an awarding authority implements a prompt payment program, a contractor shall |
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266 | 266 | | 237notify all subcontractors with which it has contracted of the schedule of payments due to it by the |
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267 | 267 | | 238awarding authority and the receipt of such payments. |
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268 | 268 | | 239 (b) Within 14 days of receipt of a payment from the awarding authority, a contractor shall |
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269 | 269 | | 240pay a subcontractor the full or proportional amount received for each such subcontractor's work |
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270 | 270 | | 241and material, based on work completed or services provided under the subcontract, unless the |
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271 | 271 | | 242contract says otherwise. |
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272 | 272 | | 243 (c) A contractor may withhold payment within the 14-day period if a written notice |
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273 | 273 | | 244stating the reason for withholding is provided to the subcontractor and the |
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274 | 274 | | 245 (d) (1) If a subcontractor does not receive payment within the required period, the |
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275 | 275 | | 246subcontractor may give written notice of the nonpayment to the procurement officer, indicating: 13 of 20 |
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276 | 276 | | 247 (i) the name of the contractor; |
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277 | 277 | | 248 (ii) the project under which the dispute exists; |
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278 | 278 | | 249 (iii) the amount in dispute; |
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279 | 279 | | 250 (iv) the itemized description on which the amount in dispute is based. |
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280 | 280 | | 251 (2) After review of the written notice, the procurement officer may schedule a meeting |
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281 | 281 | | 252with the subcontractor and contractor to evaluate the dispute and determine if the contractor is |
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282 | 282 | | 253wrongfull withholding or refusing payment. |
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283 | 283 | | 254 (i) If the procurement officer determines that the contractor is wrongfully withholding or |
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284 | 284 | | 255refusing payment, the contractor shall provide payment to the subcontractor within 7 days of the |
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285 | 285 | | 256meeting. |
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286 | 286 | | 257 (ii) If the contractor further withholds or refuses payment, the procurement officer may |
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287 | 287 | | 258impose a penalty of $100 per day until the contractor provides payment to a subcontractor. |
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288 | 288 | | 259 (e) If a contractor fails or refuses to pay a subcontractor within the required period after |
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289 | 289 | | 260the receipt of a payment from the awarding authority, a contractor shall pay, in addition to the |
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290 | 290 | | 261payment amount, interest accrued for each business day beyond the required payment period. |
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291 | 291 | | 262 (1) Interest will not begin to accrue until the beginning of the business day on from the |
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292 | 292 | | 263awarding authority. |
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293 | 293 | | 264 (2) procurement officer. |
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294 | 294 | | 265 SECTION 11. Chapter 149 of the General Laws, as so appearing, is hereby amended by |
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295 | 295 | | 266inserting after section 44A 1/2, the following section: 14 of 20 |
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296 | 296 | | 267 44A 3/4 (a) A procurement officer may establish, for contracts awarded under |
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297 | 297 | | 268subsections 44A(c)-(d) of this chapter, an underutilized business subcontracting program for the |
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298 | 298 | | 269purpose of increasing participation of underutilized businesses in the public construction |
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299 | 299 | | 270industry. As used beneficially owned by one or more minority persons in conformity with |
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300 | 300 | | 271clauses (1) to (4), inclusive, of the definition of ''minority business'' set forth in section 40N of |
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301 | 301 | | 272chapter 7, any business beneficially owned by one or more women as provided in the definition |
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302 | 302 | | 273of ''women owned business'' set forth in said section 40N, any small business as provided in the |
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303 | 303 | | 274definition of -business as provided in the - any local business, defined as having its principal |
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304 | 304 | | 275office in the geographic area over which the procurement officer has jurisdiction and the owners |
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305 | 305 | | 276of more than 50 percent of the business enterprise are residents of the geographic area over |
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306 | 306 | | 277which the procurement officer has jurisdiction. |
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307 | 307 | | 278 (b) In establishing such a program, a procurement officer shall set project-specific |
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308 | 308 | | 279participation goals for underutilized subcontractors based on an assessment of the availability of |
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309 | 309 | | 280underutilized subcontractors to do the needed work. If a procurement officer implements such a |
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310 | 310 | | 281program, the requirement of a good-faith effort to meet these goals shall be included in the |
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311 | 311 | | 282evaluation of bidders, along with the requirements and criteria set forth in the invitation for bids. |
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312 | 312 | | 283A procurement officer may reject the lowest bid if the bidder does not meet the project |
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313 | 313 | | 284participation goals or show good faith efforts to meet the project participation goals outlined in |
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314 | 314 | | 285the invitation for bids. |
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315 | 315 | | 286 (1) Good-faith efforts, as used in this section, may include: (i) actively soliciting |
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316 | 316 | | 287underutilized businesses (ii) engaging in outreach to underutilized businesses in socially and |
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317 | 317 | | 288economically disadvantaged communities, (iii) making project plans available to underutilized |
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318 | 318 | | 289businesses for pre-bid inspection, (iv) providing bonding assistance to underutilized 15 of 20 |
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319 | 319 | | 290subcontractors, and (v) working and developing relationships with trade and community |
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320 | 320 | | 291organizations that support underutilized businesses. |
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321 | 321 | | 292 (c) When implementing a subcontracting program, a procurement officer may establish a |
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322 | 322 | | 293preapprenticeship program to provide relevant training to develop the skills and expertise of |
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323 | 323 | | 294underutilized individuals in the construction industry. This pre-apprenticeship program may |
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324 | 324 | | 295include (1) training and courses on specific trades within the construction industry, financial |
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325 | 325 | | 296literacy, and exposure to apprenticeship programs, (2) support services and community building, |
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326 | 326 | | 297and (3) assistance in entering apprenticeship programs. |
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327 | 327 | | 298 (d) A procurement officer may set mandatory subcontracting minimums, either on an |
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328 | 328 | | 299annual basis or for individual projects estimated to cost over $50,000. The minimums shall be |
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329 | 329 | | 300expressed as a percentage of the total project value rather than as a percentage of the total |
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330 | 330 | | 301estimated subcontracting value. |
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331 | 331 | | 302 (1) Before adopting mandatory subcontracting minimums, a procurement officer may and |
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332 | 332 | | 303hold public hearings to determine the acceptable minimum benchmarks. The following |
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333 | 333 | | 304information may be considered when determining the appropriate mandatory subcontracting |
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334 | 334 | | 305minimum: (1) current participation of underutilized businesses on city construction projects, (2) |
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335 | 335 | | 306availability of underutilized businesses in the relevant geographic area to perform subcontracting |
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336 | 336 | | 307work on city construction projects estimated to cost over $50,000, and (3) barriers that currently |
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337 | 337 | | 308exist in the construction industry to exclude underutilized businesses in the relevant geographic |
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338 | 338 | | 309area. |
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339 | 339 | | 310 (2) An awarding authority of a public construction contract awarded under section 5 of |
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340 | 340 | | 311this chapter shall reject any bid that does not demonstrate feasible compliance with the 16 of 20 |
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341 | 341 | | 312mandatory subcontracting minimum. A bidder must provide, in its proposal, a detailed plan for |
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342 | 342 | | 313engaging with underutilized businesses and for meeting the mandatory subcontracting minimum. |
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343 | 343 | | 314An awarding authority shall the mandatory subcontracting minimum and conduct an independent |
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344 | 344 | | 315assessment of subcontracting opportunities for underutilized businesses. |
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345 | 345 | | 316 (3) If a bidder does not demonstrate best efforts to meet the mandatory subcontracting |
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346 | 346 | | 317minimum, the awarding authority shall deem the bidder non-responsive. |
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347 | 347 | | 318 (4) An awarding authority shall include the mandatory subcontracting minimum in any |
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348 | 348 | | 319solicitations, requests for qualifications, requests for proposals, and any other bidding notices to |
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349 | 349 | | 320prospective bidders. |
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350 | 350 | | 321 (e) The procurement office of a local municipality located in the Commonwealth shall |
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351 | 351 | | 322make available an online public database for the purpose of tracking underutilized business |
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352 | 352 | | 323 (1) The procurement office shall engage in ongoing collection of the following |
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353 | 353 | | 324information: (1) the names and contact information of underutilized businesses in (2) the total |
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354 | 354 | | 325year-to-date dollar value paid directly to underutilized subcontractors on city procurement |
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355 | 355 | | 326projects, (3) the total year-to-date percentage of participation of underutilized businesses in the |
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356 | 356 | | 327relevant geographic area, (4) the year-to-date percentage of participation of underutilized |
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357 | 357 | | 328businesses in the relevant geographic area for each category of subcontract or trade work |
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358 | 358 | | 329enumerated in subsection 44F(1)(a), and (5) the diversity plans of each bidder on any public |
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359 | 359 | | 330construction project. |
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360 | 360 | | 331 (f) In addition to a public database containing information about a low to underutilized |
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361 | 361 | | 332business participation goals in public construction projects, a local procurement office shall 17 of 20 |
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362 | 362 | | 333create and make available to small businesses and micro-businesses a public dashboard listing |
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363 | 363 | | 334upcoming public construction project opportunities. |
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364 | 364 | | 335 (1) A procurement officer may post an upcoming contracting opportunity prior to |
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365 | 365 | | 336soliciting prospective bidders from a list of past bidders. |
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366 | 366 | | 337 (2) A procurement officer may make good faith efforts to advertise the availability of the |
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367 | 367 | | 338dashboard to underutilized businesses a reasonable amount of time prior to the main website. |
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368 | 368 | | 339 (3) The dashboard shall set forth the following information: |
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369 | 369 | | 340 (a) The contract type |
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370 | 370 | | 341 (b) The estimated total contract value |
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371 | 371 | | 342 (c) The expected categories of subcontract and trade work required |
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372 | 372 | | 343 (d) The expected period of performance |
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373 | 373 | | 344 (e) The contract-specific underutilized business participation goals |
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374 | 374 | | 345 (f) The date that an invitation for bids will be issued and published |
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375 | 375 | | 346 (g) Any other information that the procurement officer deems necessary and beneficial to |
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376 | 376 | | 347underutilized businesses. |
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377 | 377 | | 348 (h) For a competitive grant program to be administered by the supplier diversity office, in |
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378 | 378 | | 349consultation with the secretary of technology services and security, to assist cities and towns |
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379 | 379 | | 350with information technology to facilitate the provisions of this section, including compiling data |
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380 | 380 | | 351to track the participation of and contracts awarded to minority-owned and women-owned 18 of 20 |
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381 | 381 | | 352businesses, small and micro-businesses, and local businesses. Provided, that eligible uses shall |
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382 | 382 | | 353include, but not limited to, planning and studies, purchase, procurement, acquisition, licensing |
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383 | 383 | | 354 SECTION 12. Subsection (3) of section 44J of chapter 149, as so appearing, is hereby |
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384 | 384 | | 355amended by inserting the following clause: |
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385 | 385 | | 356 (a) An awarding authority may split any contract or preliminary plans and specifications |
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386 | 386 | | 357for the purpose of making public projects more accessible to underutilized micro-businesses. |
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387 | 387 | | 358 (i) For each individual new contract created from a split contract or preliminary plans and |
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388 | 388 | | 359specifications, an awarding authority shall adhere to the bidding procedures and provisions of |
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389 | 389 | | 360this section as if the contract or preliminary plans and specifications had not been split. |
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390 | 390 | | 361 SECTION 13. Section 39M of chapter 30, as so appearing, is hereby amended by |
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391 | 391 | | 362inserting after subsection (e), the following subsection: |
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392 | 392 | | 363 (f) When authorized by majority vote, a chief procurement officer may establish a |
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393 | 393 | | 364sheltered market program, as established under section 44K of chapter 149, in conformity with |
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394 | 394 | | 365the requirements of this section. |
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395 | 395 | | 366 SECTION 14. Section 49 of chapter 7C, as so appearing, is hereby amended by inserting |
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396 | 396 | | 367after subsection (e), the following new subsection:- |
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397 | 397 | | 368 (f) On any project procured under this chapter, including by any city, town, or agency, |
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398 | 398 | | 369board, commission, authority or instrumentality thereof, an awarding authority may set project |
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399 | 399 | | 370participation goals and/or include as an additional qualification that applicant meet these goals or |
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400 | 400 | | 371engage in good faith efforts to meet these goals. |
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401 | 401 | | 372 (i) Such good faith efforts may include:- 19 of 20 |
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402 | 402 | | 373 (a) Ensuring the participation of underutilized businesses; |
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403 | 403 | | 374 (b) Outreach to local communities and underutilized businesses within these |
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404 | 404 | | 375communities, including communicating project opportunities; |
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405 | 405 | | 376 (c) Developing creative, specific plans to increase diversity and inclusion of underutilized |
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406 | 406 | | 377businesses. |
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407 | 407 | | 378 (ii) An awarding authority may require applicants to provide an affidavit that they will |
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408 | 408 | | 379exercise good faith efforts to meet project goals. |
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409 | 409 | | 380 (iii) An awarding authority may exercise discretion to reject any application that does not |
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410 | 410 | | 381show a commitment to diversity and inclusion. |
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411 | 411 | | 382 SECTION 15. Subsection (a) of section 18 of chapter 30B, as so appearing, is hereby |
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412 | 412 | | 383amended by striking the definition of “Disadvantaged vendor” and inserting in place thereof the |
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413 | 413 | | 384following new definition: |
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414 | 414 | | 385 any business beneficially owned by one or more minority persons in conformity with |
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415 | 415 | | 386clauses (1) to (4), inclusive, of the definition of ''Minority business'' set forth in section forty of |
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416 | 416 | | 387chapter seven, and any business beneficially owned by one or more women as provided in the |
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417 | 417 | | 388definition of ''Women-owned business'' set forth in said section 40N and any business |
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418 | 418 | | 389beneficially owned by 1 or more veterans as provided in the definition of ''veteran-owned |
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419 | 419 | | 390business'' as set forth in section 40N, and any small business as provided in the definition of - |
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420 | 420 | | 391business as provided in the - having its principal office in the geographic area over which the |
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421 | 421 | | 392procurement officer has jurisdiction and the owners of more than 50 percent of the business 20 of 20 |
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422 | 422 | | 393enterprise are residents of the geographic area over which the procurement officer has |
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423 | 423 | | 394jurisdiction. |
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