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