Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3442 Compare Versions

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22 HOUSE DOCKET, NO. 449 FILED ON: 1/9/2025
33 HOUSE . . . . . . . . . . . . . . . No. 3442
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Christopher J. Worrell
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to transparency and accountability in procurement.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Christopher J. Worrell5th Suffolk1/9/2025 1 of 5
1616 HOUSE DOCKET, NO. 449 FILED ON: 1/9/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 3442
1818 By Representative Worrell of Boston, a petition (accompanied by bill, House, No. 3442) of
1919 Christopher J. Worrell that the Supplier Diversity Office annually collect and report certain
2020 procurement activity related to certified business enterprises and non-certified businesses by
2121 businesses, nonprofit corporations, and state authorities. State Administration and Regulatory
2222 Oversight.
2323 The Commonwealth of Massachusetts
2424 _______________
2525 In the One Hundred and Ninety-Fourth General Court
2626 (2025-2026)
2727 _______________
2828 An Act relative to transparency and accountability in procurement.
2929 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3030 of the same, as follows:
3131 1 SECTION 1. Whereas the Commonwealth of Massachusetts, pursuant to section 57 of
3232 2chapter 7 of the Massachusetts General Laws, has established a policy to foster an inclusive
3333 3marketplace that offers competitive opportunity for businesses as diverse as the people of the
3434 4commonwealth; and whereas the Commonwealth of Massachusetts pursuant to section 58A of
3535 5chapter 7 of the Massachusetts General Laws, has established a Supplier Diversity Office or
3636 6“SDO” to implement the supplier diversity objectives of the commonwealth, or more
3737 7specifically, to effect the purposes of sections 57 to 61, inclusive, of said chapter 7; and whereas
3838 8the Commonwealth of Massachusetts, acting through agencies of the executive branch, enters
3939 9into contracts with businesses to facilitate the delivery of services and/or activities for the
4040 10commercial and/or personal benefit of residents of the Commonwealth; it is the intention of the
4141 11general court to take meaningful actions to better understand the inclusiveness of the 2 of 5
4242 12Massachusetts marketplace as it relates to businesses as diverse as the people of the
4343 13commonwealth. To achieve the purposes as stated in this section and sections 2 and 3, inclusive,
4444 14this Act shall be known as the Transparency and Accountability in Procurement Act.
4545 15 SECTION 2. As used in sections 1 to 3, inclusive, of this act, the following words shall
4646 16have the following meanings, unless a contrary intent is clearly indicated: -
4747 17 “Business”, means a corporation, sole proprietorship, partnership, limited liability
4848 18company, or any other organization formed for the purpose of engaging in a commercial
4949 19function; provided that said corporation, sole proprietorship, partnership, limited liability
5050 20company, or other organization has annual revenue equal to or greater than one hundred million
5151 21dollars.
5252 22 “Black-owned Business”, means a business that is owned and controlled by one or more
5353 23Black persons or African Americans.
5454 24 “Minority Business Enterprise” or “MBE”, means a business certified pursuant to section
5555 2561 of chapter 7 of the General Laws owned and controlled by one or more socially or
5656 26economically disadvantaged persons. Such disadvantage may arise from cultural, racial, chronic
5757 27economic circumstances or background or other similar causes. For purposes of this Act, such
5858 28persons shall include Blacks or African Americans and Western Hemisphere Hispanics.
5959 29 ''Certified business enterprises” means minority business enterprises and woman business
6060 30enterprises, certified pursuant to section 61 of chapter 7 of the General laws, and as both terms
6161 31are defined in this section. 3 of 5
6262 32 “Non-certified businesses” shall mean Black-owned businesses, Western Hemisphere
6363 33Hispanic-owned businesses, and “Women-owned” businesses.
6464 34 ''Women business enterprise'' or ''WBE'', means a business certified pursuant to section
6565 3561 of chapter 7 of the General laws that is both owned and controlled, by one or more women
6666 36who have invested in an ongoing business free of conversion rights.
6767 37 “Women-owned Business”, means a business that is both owned and controlled by one or
6868 38more women.
6969 39 "Non-profit corporation" means all corporations organized for a purpose consistent with
7070 40section 4 of chapter 180 of the General Laws and which has annual revenue equal to or greater
7171 41than one hundred million dollars.
7272 42 ''State authority'' a body politic and corporate constituted as a public instrumentality of
7373 43the commonwealth and established by an act of the General Court to serve an essential
7474 44governmental function and that has annual revenue equal to or greater than one hundred million
7575 45dollars; provided, however, that state authority shall not include: (1) a state agency; (2) a city or
7676 46town; (3) a body controlled by a city or town; or (4) a separate body politic for which the
7777 47governing body is elected, in whole or in part, by the general public or by representatives of
7878 48member cities or towns.
7979 49 ''Hospital'', means a hospital licensed or certified by the Department of Public Health
8080 50pursuant to section 51 of Chapter 111 or other applicable law, with an emergency department,
8181 51and the teaching hospital of the University of Massachusetts Medical School. 4 of 5
8282 52 “Institution of higher education” means an educational institution domiciled in the
8383 53Commonwealth and that (1) admits as regular students only persons having a certificate of
8484 54graduation from a school providing secondary education, or the recognized equivalent of such a
8585 55certificate, or persons who meet the requirements of section 1091(d) of 20 United States Code;
8686 56(2) is legally authorized to provide a program of education beyond secondary education; (3)
8787 57provides an educational program for which the institution awards a bachelor’s degree or provides
8888 58not less than a 2-year program that is acceptable for full credit toward such a degree, or awards a
8989 59degree that is acceptable for admission to a graduate or professional degree program, subject to
9090 60review and approval by the Secretary; (4) is a public or nonprofit institution; (5) is accredited by
9191 61a nationally recognized accrediting agency or association, or if not so accredited, is an institution
9292 62that has been granted preaccreditation status by such an agency or association that has been
9393 63recognized by the United States Secretary of Education for the granting of preaccreditation
9494 64status, and said Secretary has determined that there is satisfactory assurance that the institution
9595 65will meet the accreditation standards of such an agency or association within a reasonable time;
9696 66and (6 has annual revenue equal to or greater than one hundred million dollars.
9797 67 ''Museum'', an institution or entity located in the commonwealth that: (i) is operated by a
9898 68nonprofit corporation, trust, association, public agency, or educational institution; (ii) is operated
9999 69primarily for educational, scientific, historic preservation, cultural or aesthetic purposes; (iii)
100100 70owns, borrows, cares for, exhibits, studies, archives or catalogs property; and (iv) has annual
101101 71revenue equal to or greater than one hundred million dollars.
102102 72 ''SDO'' or ''Supplier Diversity Office'', the commonwealth's supplier diversity office as
103103 73designated by section 58A and section 61 of chapter 7 of the General Laws. The Supplier 5 of 5
104104 74Diversity Office is the successor agency to the state office of minority and women business
105105 75assistance.
106106 76 SECTION 3. The SDO shall promulgate regulations for the annual collection and
107107 77reporting of procurement activity as such activity relates to certified business enterprises and
108108 78non-certified businesses by businesses, nonprofit corporations, and state authorities.
109109 79 In addition to annually collecting and reporting such procurement activity, the SDO shall
110110 80submit, by April 30 of each year, an annual report that details by business, museum, institution of
111111 81higher education, hospital, nonprofit corporation, and state authority each entity’s procurement
112112 82activity with certified business enterprises and non-certified business enterprises. Said annual
113113 83report shall be submitted to the governor, lieutenant governor, and the general court. Said annual
114114 84report shall also be made available to the public via the SDO’s website