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