Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1986 Compare Versions

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2	2	SENATE DOCKET, NO. 2270 FILED ON: 1/20/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1986
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	John J. Cronin
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to promote public procurement and inclusive entrepreneurship.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :John J. CroninWorcester and Middlesex 1 of 20
16	16	SENATE DOCKET, NO. 2270 FILED ON: 1/20/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1986
18	18	By Mr. Cronin, a petition (accompanied by bill, Senate, No. 1986) of John J. Cronin for
19	19	legislation to promote public procurement and inclusive entrepreneurship. State Administration
20	20	and Regulatory Oversight.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act to promote public procurement and inclusive entrepreneurship.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Subsection (i) of section 16G of chapter 6A of the General Laws, as
30	30	2appearing in the 2020 Official Edition, is hereby amended by inserting, at the end of the first
31	31	3paragraph, the following sentence:
32	32	4 The annual report shall include an analysis of the share of economic development funds
33	33	5administered by state agencies, including loans, grants, tax credits, and technical assistance
34	34	6services, provided to entities certified under federal or state law as a minority-owned business.
35	35	7 SECTION 2. Subsection (i) of said section 16G of said chapter 6A, as so appearing, is
36	36	8hereby further amended by striking out, in the second paragraph, clauses 8 and 9, lines 82-94,
37	37	9inclusive, and inserting in place thereof the following:
38	38	10 (8) a report of patents or products resulting from agency-funded activities;
39	39	11 (9) a description of technical assistance that the agency provided; and 2 of 20
40	40	12 (10) the share of loans, grants, tax credits, or technical assistance services provided to
41	41	13entities certified under federal or state law as a minority-owned business.
42	42	14 SECTION 3. Subsection (l) of said section 16G of said chapter 6A, as so appearing, is
43	43	15hereby amended by striking out the second paragraph and inserting in place thereof the following
44	44	16paragraph:
45	45	17 The secretary of housing and economic development, with the assistance of economic
46	46	18development planning council appointed under this section, shall develop and implement a
47	47	19written comprehensive economic development policy for the commonwealth and a strategic plan
48	48	20for implementing the policy. The policy shall set long term goals and measurable benchmarks
49	49	21which are not limited to a particular gubernatorial administration and shall give consideration to
50	50	22any impacts the plan may have on businesses employing 10 or fewer people. The strategic plan
51	51	23shall include any major economic development initiatives and programs of the secretariat and
52	52	24any agencies subject to this section. The strategic plan shall also include an assessment of racial
53	53	25and ethnic disparities in employment and business ownership and an analysis of how the
54	54	26economic development initiatives contained in the plan will contribute to reducing such
55	55	27disparities. In developing the policy, the council shall review the published economic
56	56	28development policy and plan in effect at the commencement of the governor's term of office and
57	57	29may hold public hearings throughout the commonwealth. However, the council shall hold at least
58	58	30one public hearing on the topic of racial and ethnic disparities in employment and business
59	59	31ownership in the commonwealth.
60	60	32 SECTION 4. Chapter 7 of the General Laws, as so appearing, is hereby amended by
61	61	33inserting after section 62, the following section: 3 of 20
62	62	34 Section 63. (a) The general court finds and declares that:
63	63	35 (1) It is in the state’s interest to encourage competitive business opportunities for all of its
64	64	36people. As anchor institutions, hospitals and higher education institutions are uniquely positioned
65	65	37to build relationships within the communities they serve through the development, inclusion, and
66	66	38utilization of certified minority-owned business enterprises whenever possible
67	67	39 (2) By providing that each major anchor institution submit to the Office of Supplier
68	68	40Diversity a report explaining the institutions supplier diversity statement and expressing its goals
69	69	41regarding certified minority-owned businesses, and the office placing that information on the
70	70	42office’s internet website, that online resource will help facilitate these supplier relationships.
71	71	43 (b) As used in this section, the following words shall have the following meanings, unless
72	72	44a contrary intent is clearly indicated:
73	73	45 “Anchor institution”, a licensed hospital or college or university physically located in
74	74	46Massachusetts.
75	75	47 “Certified business enterprise”, a state- or federally-designated minority-owned business
76	76	48physically located in the United States.
77	77	49 “Office”, means the Office of Supplier Diversity.
78	78	50 “Operating expenses”, means operating expenses, excluding physician professional fees,
79	79	51as reflected in the annual financial report submitted to the office.
80	80	52 (c) On or before July 1 of each year, each anchor institution with operating expenses of
81	81	53$50,000,000 or more, or $25,000,000 or more when operating as a component of a larger
82	82	54hospital or university system, shall submit an annual report to the office on its minority 4 of 20
83	83	55enterprise procurement efforts during the previous year. The annual report shall include all of the
84	84	56following:
85	85	57 (1) The anchor institution’s supplier diversity policy statement.
86	86	58 (2) The anchor institution’s outreach and communications to minority business
87	87	59enterprises, including:
88	88	60 (i) How the anchor institution encourages and seeks out minority business enterprises to
89	89	61become potential suppliers.
90	90	62 (ii) How the anchor institution encourages its employees involved in procurement to seek
91	91	63out minority business enterprises to become potential suppliers.
92	92	64 (iii) How the anchor institution conducts outreach and communication to minority
93	93	65business enterprises.
94	94	66 (iv) How the anchor institution supports organizations that promote or certify minority
95	95	67business enterprises.
96	96	68 (v) Information regarding appropriate contacts at the anchor institution for interested
97	97	69business enterprises.
98	98	70 (vi) The anchor institution’s procurements that are made from minority business
99	99	71enterprises with at least a majority of the enterprise’s workforce in Massachusetts, with each
100	100	72category aggregated separately, to the extent that information is readily accessible. An anchor
101	101	73institution that is part of a system may report the diversity of its procurement in compliance with
102	102	74this subparagraph from a system level if there are suppliers that provide services or goods to all 5 of 20
103	103	75units within the system. An anchor institution shall report the diversity of the remainder of its
104	104	76procurement, including the suppliers that do not resource the entire system.
105	105	77 (3) The report may include other relevant information the office or anchor institution
106	106	78deems necessary.
107	107	79 (d) This section shall not be construed to require quotas, set-asides, or preferences in an
108	108	80anchor institution’s goods or services.
109	109	81 (e) By July 1, 2021, the office shall establish and maintain a link on the office’s internet
110	110	82website that provides public access to the contents of each anchor institution’s report on minority
111	111	83business enterprise procurement efforts. The office shall include a statement on the office’s
112	112	84internet website that the information contained in the anchor institution’s report on minority
113	113	85business enterprises is provided for informational purposes only.
114	114	86 SECTION 5. Chapter 10 of the General Laws, as so appearing, is hereby amended by
115	115	87inserting after section 10B, the following section:
116	116	88 Section 10C. Prior to the state treasurer’s deposit of cash reserves to eligible lending and
117	117	89banking institutions, as defined in section 10A of chapter 10 of the general laws, the treasurer
118	118	90shall ensure the division of banks, as defined in section 1 of chapter 167 of the general laws, has
119	119	91collected data required of lending institutions pursuant to section 13A of chapter 167 of the
120	120	92general laws.
121	121	93 SECTION 6. Section 22A of chapter 40 of the General Laws, as so appearing, is hereby
122	122	94amended by inserting after the phrase “improvements to the public realm”, in line 28, the
123	123	95following words: “including district management activities and operations” 6 of 20
124	124	96 SECTION 7. Section 22C of said chapter 40 of the General Laws, as so appearing, is
125	125	97hereby amended by inserting after the phrase, “public transportation station accessibility
126	126	98improvements”, in line 11, the following words: “district management activities and operations,”
127	127	99 SECTION 8. Chapter 167 of the General Laws, as so appearing, is hereby amended by
128	128	100inserting, after section 13, the following section:
129	129	101 Section 13A. (a) The division of banks shall require the collection of small business
130	130	102lending data from all lenders, including online lenders, and small businesses on an annual basis.
131	131	103The division shall also analyze the impacts that lenders, including online lenders, and their
132	132	104practices have on minority borrowers in the Commonwealth.
133	133	105 (b) The division shall promulgate regulations relative to the required collection of small
134	134	106business lending data. Said regulations shall include, but not be limited to the following:
135	135	107 (1) the establishment of a central depository of the collection and analysis of small
136	136	108business lending data, to include, but not be limited to the following: lending and banking
137	137	109institutions’ average annual percent rates, default rates, and fees.
138	138	110 (2) procedures for the solicitation and acceptance of reports regarding small businesses’
139	139	111incidents of predatory lending practices.
140	140	112 (3) procedures for assessing the credibility and accuracy of reports of small business
141	141	113lending data from lending institutions.
142	142	114 (c) The division shall file an annual report with the information obtained pursuant to
143	143	115subsections (a) and (b) as well as recommendations for best practices for small business 7 of 20
144	144	116borrower lending with the house and senate clerks and the house and senate chairs of the joint
145	145	117committee on financial services not later than July 1.
146	146	118 SECTION 9. (a) Notwithstanding any general or special law to the contrary, all
147	147	119appointive boards and commissions in the commonwealth established by the Massachusetts
148	148	120general laws, including boards and commissions of a political subdivision of the state, if not
149	149	121otherwise provided by law, shall adopt policies and practices designed to increase the racial and
150	150	122ethnic diversity of their board membership and commission membership. To meet this goal, said
151	151	123boards and commissions shall report on an annual basis to the secretary of state and the office of
152	152	124the governor the following: (i) data on specific qualifications, skills and experience that the
153	153	125board appointees considers for its board of directors and nominees for the board of directors and
154	154	126commissions; (ii) the self-identified race and ethnicity of each member of said board of directors
155	155	127and commissions; (iii) the number of total individuals on said boards and commissions; iv) a
156	156	128description of the process of said board or commission for identifying, evaluating, and
157	157	129determining nominees and appointees including, but not limited to, how demographic diversity is
158	158	130considered; and (v) a description of the policies and practices of said boards and commissions for
159	159	131promoting diversity, equity and inclusion among said boards and commissions and (vi) the total
160	160	132number of people of color and the total number of individuals who serve as members on all
161	161	133boards and commissions in the commonwealth.
162	162	134 (b) To track and measure progress, an annual report shall be published by the office of
163	163	135the governor, annually, not later than July 1, that provides: (i) demographic data provided by all
164	164	136public board and commission applicants, including boards and commissions of a political
165	165	137subdivision of the state, relative to ethnicity and race; and (ii) demographic data provided by all
166	166	138public board and commission nominees or appointees, including boards and commissions of a 8 of 20
167	167	139political subdivision of the state, relative to ethnicity and race, pursuant to section (a) of this act.
168	168	140Any demographic data disclosed or released pursuant to this section shall be anonymized to the
169	169	141extent practicable and shall not identify an individual applicant, nominee or appointed board
170	170	142member or commissioner. Said demographic data shall also disclose aggregated statistical data
171	171	143by commission or board sector and by secretariat that governs said board or commission, if
172	172	144applicable.
173	173	145 (c) Notwithstanding any general or special law to the contrary, and pursuant to any
174	174	146established appointment procedures of individual boards or commissions in the commonwealth,
175	175	147racial diversity shall be considered in any subsequent appointments made after July 1, 2021, to
176	176	148any public boards and commissions in the commonwealth.
177	177	149 (d) By January 1, 2025, all boards and commissions shall, to the extent feasible, broadly
178	178	150reflect the general public of the commonwealth, including the percentage of racial and ethnic
179	179	151minorities in the general population.
180	180	152 SECTION 10. Sections 4 and 10 shall take effect on July 1, 2025.
181	181	153 SECTION 11. Chapter 149 of the General Laws, as so appearing, is hereby amended by
182	182	154inserting after section 44M, the following new section:-
183	183	155 44N. (a) For purposes of this section the following phrases shall have the following
184	184	156meanings:
185	185	157 ''Underutilized bidder'', any minority person or business beneficially owned by one or
186	186	158more minority persons in conformity with clauses (1) to (4), inclusive, of the definition of
187	187	159''minority business'' set forth in section 40N of chapter 7, any business beneficially owned by one 9 of 20
188	188	160or more women as provided in the definition of ''women-owned business'' set forth in said
189	189	161section 40N, any small business as provided in any micro- - of chapter 23A, and any local
190	190	162business, defined as having its principal office in the geographic area over which the
191	191	163procurement officer has jurisdiction and the owners of more than 50 percent of the business
192	192	164enterprise are residents of the geographic area over which the procurement officer has
193	193	165jurisdiction.
194	194	166 ''Sheltered market program'', a program under which certain contracts are designated by
195	195	167the chief procurement officer for procurement from one or more classes of underutilized bidders.
196	196	168 (b) When authorized by majority vote, a chief procurement officer may establish a
197	197	169sheltered market program in conformity with the requirements of this section. Such authorization
198	198	170may apply to a single contract or to any number or types of contracts, shall specify the class or
199	199	171classes of underutilized bidders to be included in the sheltered market program, and shall to the
200	200	172extent constitutionally required be based on findings that such
201	201	173 program is a remedy for the present effects of past discrimination.
202	202	174 (c) A procurement officer shall not solicit or award a contract pursuant to a sheltered
203	203	175market program until the chief procurement officer, after notice and a public hearing, has
204	204	176approved written procedures for the operation of such program, has filed such procedures with
205	205	177the state office of minority and women business assistance and the secretary of state, and has
206	206	178published such procedures or a summary thereof in a newspaper of general circulation within the
207	207	179area served by the governmental body and in any publication established by the secretary of state
208	208	180for the advertisement of such notices. Such written procedures shall, at a minimum, include: 10 of 20
209	209	181 (1) procedures for the certification of underutilized bidders, which procedures shall
210	210	182require the use of standardized application forms, the submission of applications sworn to under
211	211	183the penalties of perjury, the maintenance of certification records by the chief procurement officer
212	212	184or his designee, an opportunity for a business denied certification to be heard on such denial, the
213	213	185issuance of certificates valid for a period not longer than two years, notice and an opportunity to
214	214	186be heard prior to revocation of certificates, and a public information campaign to encourage
215	215	187certification; provided, however, that a governmental body's certification procedures may
216	216	188authorize participation in its sheltered market program by any eligible underutilized bidder duly
217	217	189certified under the sheltered market program of another governmental body or by the state office
218	218	190 of minority and women business assistance;
219	219	191 (2) in the event the authorization required by paragraph (b) does not designate the
220	220	192specific contracts to which the sheltered market program applies, procedures for designating
221	221	193such contracts, which procedures shall (i) set forth criteria for designating contracts, (ii) require
222	222	194that each designation be in writing and based on
223	223	195 written findings that the contract meets such criteria, and (iii) provide for an
224	224	196administrative review of the appropriateness of including the contract in the sheltered market
225	225	197program;
226	226	198 (3) procedures for ensuring effective competition among underutilized bidders for
227	227	199contracts within the sheltered market program, including procedures requiring (i) supplemental
228	228	200advertising in media serving underutilized communities, (ii) for the procurement of the
229	229	201construction, reconstruction, installation, demolition, 11 of 20
230	230	202 maintenance or repair of any building in the amount of one thousand dollars but less than
231	231	203ten thousand dollars, the receipt of written or oral quotations from no fewer than three certified
232	232	204underutilized bidders customarily providing such construction services; provided, however, that
233	233	205a quotation shall not be considered
234	234	206 until the bidder has submitted to the procurement officer a copy of a valid certificate, and
235	235	207(iii) for the procurement of the construction, reconstruction, installation, demolition, maintenance
236	236	208or repair of any building in the amount of ten thousand dollars or more, the receipt of responsive
237	237	209bids or proposals from no fewer than three certified underutilized bidders; provided, however,
238	238	210that a bid or proposal shall not be considered unless accompanied by a copy of a valid certificate;
239	239	211and
240	240	212 (4) procedures for review and assessment of the sheltered market program, at least
241	241	213annually, based upon a detailed written report by the chief procurement officer or his designee,
242	242	214which report shall at a minimum set forth for the twelve months then ending (i) the number and
243	243	215dollar value of contracts awarded to underutilized
244	244	216 bidders under the sheltered market program, (ii) the total number, the percentage, the
245	245	217total dollar value, and the percentage dollar value of contracts awarded by the governmental
246	246	218body to underutilized bidders eligible for participation in the sheltered market program, (iii) a
247	247	219description of other efforts undertaken by the governmental body to increase its contracting with
248	248	220underutilized bidders, and (iv) recommendations for continuing, modifying, or terminating the
249	249	221program.A violation of any valid procedure adopted pursuant to this section shall constitute a
250	250	222violation of this chapter. 12 of 20
251	251	223 (d) Advertisements for a contract within the sheltered market program shall state that the
252	252	224contract will be awarded under a sheltered market program and shall specify the class or classes
253	253	225of underutilized bidders to which competition for the contract is limited.
254	254	226 (e) In no event shall a contract designated for inclusion in a sheltered market program be
255	255	227awarded on a sole source basis. If fewer than three responsive bids, proposals, or quotations are
256	256	228received, or if all bids, proposals, or quotations are rejected, the contract shall not be awarded
257	257	229under the sheltered market program.
258	258	230 (f) No contract shall be awarded under a sheltered market program for a term exceeding
259	259	231three years, including any renewal, extension, or option. No underutilized bidder shall be
260	260	232awarded a sheltered market program contract if at the time of award such bidder is a party to any
261	261	233other sheltered market program contract the term of which, including any renewal, extension, or
262	262	234option, has not expired. No underutilized bidder shall be awarded more than three sheltered
263	263	235market program contracts by one or more governmental bodies within any one-year period.
264	264	236 (g) Except as otherwise provided in this section, all procurements under a sheltered
265	265	237market program shall be undertaken in accordance with the provisions of this chapter.
266	266	238 SECTION 12. Section 44A of chapter 149, as so appearing, is hereby amended by
267	267	239inserting after subsection 5, the following new subsection:
268	268	240 (6) An awarding authority awarding a contract under this chapter may ensure the prompt
269	269	241payment to any subcontractor with whom the contractor has contracted by implementing a
270	270	242prompt payment program. Any subcontractor that has fully performed in accordance with the
271	271	243terms of the contract is entitled to prompt payment from a contractor under such a program. 13 of 20
272	272	244 (a) If an awarding authority implements a prompt payment program, a contractor shall
273	273	245notify all subcontractors with which it has contracted of the schedule of payments due to it by the
274	274	246awarding authority and the receipt of such payments.
275	275	247 (b) Within 14 days of receipt of a payment from the awarding authority, a contractor shall
276	276	248pay a subcontractor the full or proportional amount received for each such subcontractor's work
277	277	249and material, based on work completed or services provided under the subcontract, unless the
278	278	250contract says otherwise.
279	279	251 (c) A contractor may withhold payment within the 14-day period if a written notice
280	280	252stating the reason for withholding is provided to the subcontractor and the
281	281	253 (d) (1) If a subcontractor does not receive payment within the required period, the
282	282	254subcontractor may give written notice of the nonpayment to the procurement officer, indicating:
283	283	255 (i) the name of the contractor;
284	284	256 (ii) the project under which the dispute exists;
285	285	257 (iii) the amount in dispute;
286	286	258 (iv) the itemized description on which the amount in dispute is based.
287	287	259 (2) After review of the written notice, the procurement officer may schedule a meeting
288	288	260with the subcontractor and contractor to evaluate the dispute and determine if the contractor is
289	289	261wrongfully withholding or refusing payment. 14 of 20
290	290	262 (i) If the procurement officer determines that the contractor is wrongfully withholding or
291	291	263refusing payment, the contractor shall provide payment to the subcontractor within 7 days of the
292	292	264meeting.
293	293	265 (ii) If the contractor further withholds or refuses payment, the procurement officer may
294	294	266impose a penalty of $100 per day until the contractor provides payment to a subcontractor.
295	295	267 (e) If a contractor fails or refuses to pay a subcontractor within the required period after
296	296	268the receipt of a payment from the awarding authority, a contractor shall pay, in addition to the
297	297	269payment amount, interest accrued for each business day beyond the required payment period.
298	298	270 (1) Interest will not begin to accrue until the beginning of the business day on from the
299	299	271awarding authority.
300	300	272 (2) procurement officer.
301	301	273 SECTION 13. Chapter 149 of the General Laws, as so appearing, is hereby amended by
302	302	274inserting after section 44A 1/2, the following new section:
303	303	275 44A 3/4 (a) A procurement officer may establish, for contracts awarded under
304	304	276subsections 44A(c)-(d) of this chapter, an underutilized business subcontracting program for the
305	305	277purpose of increasing participation of underutilized businesses in the public construction
306	306	278industry. As used beneficially owned by one or more minority persons in conformity with
307	307	279clauses (1) to (4), inclusive, of the definition of ''minority business'' set forth in section 40N of
308	308	280chapter 7, any business beneficially owned by one or more women as provided in the definition
309	309	281of ''women owned business'' set forth in said section 40N, any small business as provided in the
310	310	282definition of -business as provided in the - any local business, defined as having its principal 15 of 20
311	311	283office in the geographic area over which the procurement officer has jurisdiction and the owners
312	312	284of more than 50 percent of the business enterprise are residents of the geographic area over
313	313	285which the procurement officer has jurisdiction.
314	314	286 (b) In establishing such a program, a procurement officer shall set project-specific
315	315	287participation goals for underutilized subcontractors based on an assessment of the availability of
316	316	288underutilized subcontractors to do the needed work. If a procurement officer implements such a
317	317	289program, the requirement of a good-faith effort to meet these goals shall be included in the
318	318	290evaluation of bidders, along with the requirements and criteria set forth in the invitation for bids.
319	319	291A procurement officer may reject the lowest bid if the bidder does not meet the project
320	320	292participation goals or show good faith efforts to meet the project participation goals outlined in
321	321	293 the invitation for bids.
322	322	294 (1) Good-faith efforts, as used in this section, may include: (i) actively soliciting
323	323	295underutilized businesses (ii) engaging in outreach to underutilized businesses in socially and
324	324	296economically disadvantaged communities, (iii) making project plans available to underutilized
325	325	297businesses for pre-bid inspection, (iv) providing bonding assistance to underutilized
326	326	298subcontractors, and (v) working and developing relationships with trade and community
327	327	299organizations that support underutilized businesses.
328	328	300 (c) When implementing a subcontracting program, a procurement officer may establish a
329	329	301preapprenticeship program to provide relevant training to develop the skills and expertise of
330	330	302underutilized individuals in the construction industry. This pre-apprenticeship program may
331	331	303include (1) training and courses on specific trades within the construction industry, financial 16 of 20
332	332	304literacy, and exposure to apprenticeship programs, (2) support services and community
333	333	305building,and (3) assistance in entering apprenticeship programs.
334	334	306 (d) A procurement officer may set mandatory subcontracting minimums, either on an
335	335	307annual basis or for individual projects estimated to cost over $50,000. The minimums shall be
336	336	308expressed as a percentage of the total project value rather than as a percentage of the total
337	337	309estimated subcontracting value.
338	338	310 (1) Before adopting mandatory subcontracting minimums, a procurement officer may and
339	339	311hold public hearings to determine the acceptable minimum benchmarks. The following
340	340	312information may be considered when determining the appropriate mandatory subcontracting
341	341	313minimum: (1) current participation of underutilized
342	342	314 businesses on city construction projects, (2) availability of underutilized businesses in the
343	343	315relevant geographic area to perform subcontracting work on city construction projects estimated
344	344	316to cost over $50,000, and (3) barriers that currently exist in the construction industry to exclude
345	345	317underutilized businesses in the relevant geographic area.
346	346	318 (2) An awarding authority of a public construction contract awarded under section 5 of
347	347	319this chapter shall reject any bid that does not demonstrate feasible compliance with the
348	348	320mandatory subcontracting minimum. A bidder must provide, in its proposal, a detailed plan for
349	349	321engaging with underutilized businesses and for meeting the mandatory subcontracting minimum.
350	350	322An awarding authority shall the mandatory subcontracting minimum and conduct an independent
351	351	323assessment of subcontracting opportunities for underutilized businesses.
352	352	324 (3) If a bidder does not demonstrate best efforts to meet the mandatory subcontracting
353	353	325minimum, the awarding authority shall deem the bidder non-responsive. 17 of 20
354	354	326 (4) An awarding authority shall include the mandatory subcontracting minimum in any
355	355	327solicitations, requests for qualifications, requests for proposals, and any other bidding notices to
356	356	328prospective bidders.
357	357	329 (e) The procurement office of a local municipality located in the Commonwealth shall
358	358	330make available an online public database for the purpose of tracking underutilized business (1)
359	359	331The procurement office shall engage in ongoing collection of the following information: (1) the
360	360	332names and contact information of underutilized businesses in (2) the total year-to-date dollar
361	361	333value paid directly to underutilized subcontractors on city procurement projects, (3) the total
362	362	334year-to-date percentage of participation of underutilized businesses in the relevant geographic
363	363	335area, (4) the year-to-date percentage of participation of underutilized businesses in the relevant
364	364	336geographic area for each category of subcontract or trade work enumerated in subsection
365	365	33744F(1)(a), and (5) the diversity plans of each bidder on any public construction project.
366	366	338 (f) In addition to a public database containing information about a l to underutilized
367	367	339business participation goals in public construction projects, a local procurement office shall
368	368	340create and make available to small businesses and micro-businesses a public dashboard listing
369	369	341upcoming public construction project opportunities.
370	370	342 (1) A procurement officer may post an upcoming contracting opportunity prior to
371	371	343soliciting prospective bidders from a list of past bidders.
372	372	344 (2) A procurement officer may make good faith efforts to advertise the availability of the
373	373	345dashboard to underutilized businesses a reasonable amount of time prior to the main website.
374	374	346 (3) The dashboard shall set forth the following information: 18 of 20
375	375	347 (a) The contract type
376	376	348 (b) The estimated total contract value
377	377	349 (c) The expected categories of subcontract and trade work required
378	378	350 (d) The expected period of performance
379	379	351 (e) The contract-specific underutilized business participation goals
380	380	352 (f) The date that an invitation for bids will be issued and published
381	381	353 (g) Any other information that the procurement officer deems necessary and beneficial to
382	382	354underutilized businesses.
383	383	355 (h) For a competitive grant program to be administered by the supplier diversity office, in
384	384	356consultation with the secretary of technology services and security, to assist cities and towns
385	385	357with information technology to facilitate the provisions of this section, including compiling data
386	386	358to track the participation of and contracts awarded to minority-owned and women-owned
387	387	359businesses, small and micro-businesses, and local businesses. Provided, that eligible uses shall
388	388	360include, but not limited to, planning and studies, purchase, procurement, acquisition, and
389	389	361licensing.
390	390	362 SECTION 14. Subsection (3) of section 44J of chapter 149, as so appearing, is hereby
391	391	363amended by inserting the following clause:
392	392	364 (a) An awarding authority may split any contract or preliminary plans and specifications
393	393	365for the purpose of making public projects more accessible to underutilized micro-businesses. 19 of 20
394	394	366 (i) For each individual new contract created from a split contract or preliminary plans and
395	395	367specifications, an awarding authority shall adhere to the bidding procedures and provisions of
396	396	368this section as if the contract or preliminary plans and specifications had not been split.
397	397	369 SECTION 15. Section 39M of chapter 30, as so appearing, is hereby amended by
398	398	370inserting after subsection (e), the following new subsection:
399	399	371 (f) When authorized by majority vote, a chief procurement officer may establish a
400	400	372sheltered market program, as established under section 44K of chapter 149, in conformity with
401	401	373the requirements of this section.
402	402	374 SECTION 16. Section 49 of chapter 7C, as so appearing, is hereby amended by inserting
403	403	375after
404	404	376 subsection (e), the following new subsection:-
405	405	377 (f) On any project procured under this chapter, including by any city, town, or agency,
406	406	378board, commission, authority or instrumentality thereof, an awarding authority may set project
407	407	379participation goals and/or include as an additional qualification that applicant meet these goals or
408	408	380engage in good faith efforts to meet these goals.
409	409	381 (i) Such good faith efforts may include:-
410	410	382 (a) Ensuring the participation of underutilized businesses;
411	411	383 (b) Outreach to local communities and underutilized businesses within these
412	412	384communities, including communicating project opportunities;
413	413	385 (c) Developing creative, specific plans to increase diversity and inclusion of 20 of 20
414	414	386 underutilized businesses.
415	415	387 (ii) An awarding authority may require applicants to provide an affidavit that they will
416	416	388exercise good faith efforts to meet project goals.
417	417	389 (iii) An awarding authority may exercise discretion to reject any application that does not
418	418	390show a commitment to diversity and inclusion.
419	419	391 SECTION 17. Subsection (a) of section 18 of chapter 30B, as so appearing, is hereby
420	420	392amended by striking the definition of “Disadvantaged vendor” and inserting in place thereof the
421	421	393following new definition:
422	422	394 any business beneficially owned by one or more minority persons in conformity with
423	423	395clauses (1) to (4), inclusive, of the definition of ''Minority business'' set forth in section forty of
424	424	396chapter seven, and any business beneficially owned by one or more women as provided in the
425	425	397definition of ''Women-owned business'' set forth in said section 40N and any business
426	426	398beneficially owned by 1 or more veterans as provided in the definition of ''veteran-owned
427	427	399business'' as set forth in section 40N, and any small business as provided in the definition of -
428	428	400business as provided in the - having its principal office in the geographic area over which the
429	429	401procurement officer has jurisdiction and the owners of more than 50 percent of the business
430	430	402enterprise are residents of the geographic area over which the procurement officer has
431	431	403jurisdiction.