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2 | 2 | | HOUSE DOCKET, NO. 449 FILED ON: 1/9/2025 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 3442 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Christopher J. Worrell |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to transparency and accountability in procurement. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Christopher J. Worrell5th Suffolk1/9/2025 1 of 5 |
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16 | 16 | | HOUSE DOCKET, NO. 449 FILED ON: 1/9/2025 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 3442 |
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18 | 18 | | By Representative Worrell of Boston, a petition (accompanied by bill, House, No. 3442) of |
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19 | 19 | | Christopher J. Worrell that the Supplier Diversity Office annually collect and report certain |
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20 | 20 | | procurement activity related to certified business enterprises and non-certified businesses by |
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21 | 21 | | businesses, nonprofit corporations, and state authorities. State Administration and Regulatory |
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22 | 22 | | Oversight. |
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23 | 23 | | The Commonwealth of Massachusetts |
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24 | 24 | | _______________ |
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25 | 25 | | In the One Hundred and Ninety-Fourth General Court |
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26 | 26 | | (2025-2026) |
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27 | 27 | | _______________ |
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28 | 28 | | An Act relative to transparency and accountability in procurement. |
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29 | 29 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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30 | 30 | | of the same, as follows: |
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31 | 31 | | 1 SECTION 1. Whereas the Commonwealth of Massachusetts, pursuant to section 57 of |
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32 | 32 | | 2chapter 7 of the Massachusetts General Laws, has established a policy to foster an inclusive |
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33 | 33 | | 3marketplace that offers competitive opportunity for businesses as diverse as the people of the |
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34 | 34 | | 4commonwealth; and whereas the Commonwealth of Massachusetts pursuant to section 58A of |
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35 | 35 | | 5chapter 7 of the Massachusetts General Laws, has established a Supplier Diversity Office or |
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36 | 36 | | 6“SDO” to implement the supplier diversity objectives of the commonwealth, or more |
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37 | 37 | | 7specifically, to effect the purposes of sections 57 to 61, inclusive, of said chapter 7; and whereas |
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38 | 38 | | 8the Commonwealth of Massachusetts, acting through agencies of the executive branch, enters |
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39 | 39 | | 9into contracts with businesses to facilitate the delivery of services and/or activities for the |
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40 | 40 | | 10commercial and/or personal benefit of residents of the Commonwealth; it is the intention of the |
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41 | 41 | | 11general court to take meaningful actions to better understand the inclusiveness of the 2 of 5 |
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42 | 42 | | 12Massachusetts marketplace as it relates to businesses as diverse as the people of the |
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43 | 43 | | 13commonwealth. To achieve the purposes as stated in this section and sections 2 and 3, inclusive, |
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44 | 44 | | 14this Act shall be known as the Transparency and Accountability in Procurement Act. |
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45 | 45 | | 15 SECTION 2. As used in sections 1 to 3, inclusive, of this act, the following words shall |
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46 | 46 | | 16have the following meanings, unless a contrary intent is clearly indicated: - |
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47 | 47 | | 17 “Business”, means a corporation, sole proprietorship, partnership, limited liability |
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48 | 48 | | 18company, or any other organization formed for the purpose of engaging in a commercial |
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49 | 49 | | 19function; provided that said corporation, sole proprietorship, partnership, limited liability |
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50 | 50 | | 20company, or other organization has annual revenue equal to or greater than one hundred million |
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51 | 51 | | 21dollars. |
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52 | 52 | | 22 “Black-owned Business”, means a business that is owned and controlled by one or more |
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53 | 53 | | 23Black persons or African Americans. |
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54 | 54 | | 24 “Minority Business Enterprise” or “MBE”, means a business certified pursuant to section |
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55 | 55 | | 2561 of chapter 7 of the General Laws owned and controlled by one or more socially or |
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56 | 56 | | 26economically disadvantaged persons. Such disadvantage may arise from cultural, racial, chronic |
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57 | 57 | | 27economic circumstances or background or other similar causes. For purposes of this Act, such |
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58 | 58 | | 28persons shall include Blacks or African Americans and Western Hemisphere Hispanics. |
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59 | 59 | | 29 ''Certified business enterprises” means minority business enterprises and woman business |
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60 | 60 | | 30enterprises, certified pursuant to section 61 of chapter 7 of the General laws, and as both terms |
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61 | 61 | | 31are defined in this section. 3 of 5 |
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62 | 62 | | 32 “Non-certified businesses” shall mean Black-owned businesses, Western Hemisphere |
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63 | 63 | | 33Hispanic-owned businesses, and “Women-owned” businesses. |
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64 | 64 | | 34 ''Women business enterprise'' or ''WBE'', means a business certified pursuant to section |
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65 | 65 | | 3561 of chapter 7 of the General laws that is both owned and controlled, by one or more women |
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66 | 66 | | 36who have invested in an ongoing business free of conversion rights. |
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67 | 67 | | 37 “Women-owned Business”, means a business that is both owned and controlled by one or |
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68 | 68 | | 38more women. |
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69 | 69 | | 39 "Non-profit corporation" means all corporations organized for a purpose consistent with |
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70 | 70 | | 40section 4 of chapter 180 of the General Laws and which has annual revenue equal to or greater |
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71 | 71 | | 41than one hundred million dollars. |
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72 | 72 | | 42 ''State authority'' a body politic and corporate constituted as a public instrumentality of |
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73 | 73 | | 43the commonwealth and established by an act of the General Court to serve an essential |
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74 | 74 | | 44governmental function and that has annual revenue equal to or greater than one hundred million |
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75 | 75 | | 45dollars; provided, however, that state authority shall not include: (1) a state agency; (2) a city or |
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76 | 76 | | 46town; (3) a body controlled by a city or town; or (4) a separate body politic for which the |
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77 | 77 | | 47governing body is elected, in whole or in part, by the general public or by representatives of |
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78 | 78 | | 48member cities or towns. |
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79 | 79 | | 49 ''Hospital'', means a hospital licensed or certified by the Department of Public Health |
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80 | 80 | | 50pursuant to section 51 of Chapter 111 or other applicable law, with an emergency department, |
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81 | 81 | | 51and the teaching hospital of the University of Massachusetts Medical School. 4 of 5 |
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82 | 82 | | 52 “Institution of higher education” means an educational institution domiciled in the |
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83 | 83 | | 53Commonwealth and that (1) admits as regular students only persons having a certificate of |
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84 | 84 | | 54graduation from a school providing secondary education, or the recognized equivalent of such a |
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85 | 85 | | 55certificate, or persons who meet the requirements of section 1091(d) of 20 United States Code; |
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86 | 86 | | 56(2) is legally authorized to provide a program of education beyond secondary education; (3) |
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87 | 87 | | 57provides an educational program for which the institution awards a bachelor’s degree or provides |
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88 | 88 | | 58not less than a 2-year program that is acceptable for full credit toward such a degree, or awards a |
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89 | 89 | | 59degree that is acceptable for admission to a graduate or professional degree program, subject to |
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90 | 90 | | 60review and approval by the Secretary; (4) is a public or nonprofit institution; (5) is accredited by |
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91 | 91 | | 61a nationally recognized accrediting agency or association, or if not so accredited, is an institution |
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92 | 92 | | 62that has been granted preaccreditation status by such an agency or association that has been |
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93 | 93 | | 63recognized by the United States Secretary of Education for the granting of preaccreditation |
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94 | 94 | | 64status, and said Secretary has determined that there is satisfactory assurance that the institution |
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95 | 95 | | 65will meet the accreditation standards of such an agency or association within a reasonable time; |
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96 | 96 | | 66and (6 has annual revenue equal to or greater than one hundred million dollars. |
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97 | 97 | | 67 ''Museum'', an institution or entity located in the commonwealth that: (i) is operated by a |
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98 | 98 | | 68nonprofit corporation, trust, association, public agency, or educational institution; (ii) is operated |
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99 | 99 | | 69primarily for educational, scientific, historic preservation, cultural or aesthetic purposes; (iii) |
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100 | 100 | | 70owns, borrows, cares for, exhibits, studies, archives or catalogs property; and (iv) has annual |
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101 | 101 | | 71revenue equal to or greater than one hundred million dollars. |
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102 | 102 | | 72 ''SDO'' or ''Supplier Diversity Office'', the commonwealth's supplier diversity office as |
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103 | 103 | | 73designated by section 58A and section 61 of chapter 7 of the General Laws. The Supplier 5 of 5 |
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104 | 104 | | 74Diversity Office is the successor agency to the state office of minority and women business |
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105 | 105 | | 75assistance. |
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106 | 106 | | 76 SECTION 3. The SDO shall promulgate regulations for the annual collection and |
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107 | 107 | | 77reporting of procurement activity as such activity relates to certified business enterprises and |
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108 | 108 | | 78non-certified businesses by businesses, nonprofit corporations, and state authorities. |
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109 | 109 | | 79 In addition to annually collecting and reporting such procurement activity, the SDO shall |
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110 | 110 | | 80submit, by April 30 of each year, an annual report that details by business, museum, institution of |
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111 | 111 | | 81higher education, hospital, nonprofit corporation, and state authority each entity’s procurement |
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112 | 112 | | 82activity with certified business enterprises and non-certified business enterprises. Said annual |
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113 | 113 | | 83report shall be submitted to the governor, lieutenant governor, and the general court. Said annual |
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114 | 114 | | 84report shall also be made available to the public via the SDO’s website |
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