Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2997 Latest Draft

Bill / Introduced Version Filed 02/16/2023

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