1 of 1 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.