Rhode Island 2025 Regular Session

Rhode Island House Bill H6173 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 6173
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7	7	LC002672
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PUBLIC PROPERTY AND WORKS -- RHODE ISLAND BID RIGGING ACT
16	16	Introduced By: Representatives Serpa, Fellela, Casimiro, Messier, Noret, Carson,
17	17	Speakman, Ajello, J. Brien, and Solomon
18	18	Date Introduced: April 04, 2025
19	19	Referred To: House Judiciary
20	20	(Attorney General)
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Legislative findings 1
24	24	The General Assembly finds and declares that competition and fairness are fundamental to 2
25	25	a healthy marketplace and the administration of good government. 3
26	26	SECTION 2. Title 37 of the General Laws entitled "PUBLIC PROPERTY AND WORKS" 4
27	27	is hereby amended by adding thereto the following chapter: 5
28	28	CHAPTER 27 6
29	29	RHODE ISLAND BID RIGGING ACT 7
30	30	37-27-1. Short title. 8
31	31	This chapter shall be known and may be cited as the “Rhode Island Bid Rigging Act.” 9
32	32	37-27-2. Definitions. 10
33	33	For the purposes of this chapter, unless the context clearly requires otherwise: 11
34	34	(1) “Bid rigging” means a concerted activity of two (2) or more persons to predetermine 12
35	35	the winning bidder of a contract proposed, offered, or otherwise submitted for competitive bidding 13
36	36	by a government entity including, but not limited to, a contract proposed, offered, or otherwise 14
37	37	submitted for competitive bidding pursuant to processes set forth pursuant to law, regulation or 15
38	38	ordinance including, but not limited to, procurement processes established pursuant to chapter 2 of 16
39	39	title 37 or chapter 55 of title 45, or regulations promulgated thereto: 17
40	40	(i) “Bid rigging” includes, but is not limited to, any one or more of the following: 18
41	41	(A) Price fixing; 19
42	42
43	43
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45	45	(B) Submitting identical bids; 1
46	46	(C) Rotating bids; 2
47	47	(D) Sharing profits with a contractor who does not submit the low bid; 3
48	48	(E) Submitting prearranged bids, agreed-upon higher or lower bids or other complementary 4
49	49	bids; 5
50	50	(F) Dividing up territories to restrict competition; and/or 6
51	51	(G) Not submitting a bid; 7
52	52	(ii) Notwithstanding other provisions of this chapter, it is not unlawful for the same person 8
53	53	to simultaneously submit bids for the same work, or a portion thereof, as a proposed prime 9
54	54	contractor and subcontractor. 10
55	55	(2) “Debarment” means the exclusion from all state procurements and termination of 11
56	56	existing or outstanding contracts. 12
57	57	(3) “Person” means an individual or a firm, association, organization, business trust, 13
58	58	company, corporation, joint venture, partnership, proprietorship, or other business entity, whether 14
59	59	or not for profit, and any government or public entity. 15
60	60	(4) “Government entity” means any department, commission, council, board, bureau, 16
61	61	committee, institution, legislative body, agency, or government corporation of the executive, 17
62	62	legislative, or judicial branches of state, and/or local governments including, but not limited to, 18
63	63	those entities defined in § 37-2-7 relating to state governmental entities, public agencies, state 19
64	64	agencies, and governmental entities. 20
65	65	(5) “Prime contractor” means any person who has entered into a public contract. 21
66	66	37-27-3. Bid rigging prohibited. 22
67	67	It is unlawful for any person to knowingly conspire, collude, combine, or agree with 23
68	68	another to commit or attempt to commit bid rigging involving: 24
69	69	(1) A contract for the purchase of equipment, goods, services or materials or for 25
70	70	construction or repair proposed, offered, or otherwise submitted by a government entity; or 26
71	71	(2) A subcontract for the purchase of equipment, goods, services or materials or for 27
72	72	construction or repair with a prime contractor or proposed prime contractor for a government entity. 28
73	73	37-27-4. Interference with contract submission and award by public official. 29
74	74	(a) It is unlawful for any person who is an official of or employed by any unit of state or 30
75	75	local government, or any public officers who are subject to the code of ethics set forth in § 36-14-31
76	76	4, to knowingly convey, either directly or indirectly, outside of any publicly available official 32
77	77	procurement process adopted pursuant to law, regulation or ordinance by that unit of government 33
78	78	including, but not limited, to procurement processes established pursuant to chapter 2 of title 37 or 34
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82	82	chapter 55 of title 45, or regulations promulgated thereto, to any person any information concerning 1
83	83	the specifications for such contract or the identity of any particular potential subcontractors, when 2
84	84	inclusion of such information concerning the specifications or contractors in the bid or offer would 3
85	85	influence the likelihood of acceptance of such bid or offer. It shall not constitute a violation of this 4
86	86	subsection to convey information intended to clarify plans or specifications regarding a public 5
87	87	contract where such disclosure of information is also made generally available to the public. 6
88	88	(b) It is unlawful for any person who is an official of or employed by any unit of state or 7
89	89	local government, or any public officers who are subject to the code of ethics set forth in § 36-14-8
90	90	4, to take any action to deliberately influence the award or attempted award of a contract to a 9
91	91	particular bidder, prime contractor or subcontractor in contravention of any official procurement 10
92	92	process set forth pursuant to law, regulation or ordinance including, but not limited, to procurement 11
93	93	processes established pursuant to chapter 2 of title 37 or chapter 55 of title 45, or regulations 12
94	94	promulgated thereto, when such invitation to bid is required by law, regulation, or ordinance. 13
95	95	37-27-5. Penalties. 14
96	96	(a) Unless otherwise specified, any violation of any provision of this chapter shall be 15
97	97	deemed a felony punishable by imprisonment not exceeding three (3) years and by a fine of up to 16
98	98	one million dollars ($1,000,000) or three (3) times the value of the submitted award or bid, 17
99	99	whichever is greater. Any criminal proceeding brought pursuant to this chapter must be commenced 18
100	100	within six (6) years after the alleged criminal act occurred. 19
101	101	(b) The attorney general may also institute in the name of the state actions or proceedings 20
102	102	to prevent or restrain civil violations of this chapter. The attorney general may apply for an order 21
103	103	enjoining the continuance of any violation of this chapter, and directing restitution, damages, 22
104	104	penalties of up to one million dollars ($1,000,000) and, in an appropriate case, cancelling any 23
105	105	certificate filed with the secretary of state and debarment from state contracting for a period of up 24
106	106	to five (5) years, and the court may award the relief applied for or so much thereof as it may deem 25
107	107	proper. 26
108	108	(b) It shall not constitute a violation of this chapter where any person who is an official of 27
109	109	or employed by any unit of state or local government follows procedures established by federal, 28
110	110	state or local laws or regulations including, but not limited, to processes established pursuant to 29
111	111	chapter 2 of title 37 or chapter 55 of title 45, or regulations promulgated thereto. 30
112	112	(c) It shall not constitute a violation of this chapter for any person who is an official of or 31
113	113	employed by any unit of state or local government to provide to any person a copy of the transcript 32
114	114	or other summary of any pre-bid conference where such transcript or summary is also made 33
115	115	generally available to the public. 34
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119	119	37-27-6. Civil investigative demands. 1
120	120	When the attorney general has reasonable cause to believe that any person has engaged in, 2
121	121	is engaging in, or may have information related to a civil violation of § 37-27-3, the attorney general 3
122	122	is authorized to take proof and make a determination of the relevant facts and to issue civil 4
123	123	investigative demands to any person, in accordance with and subject to the limitations of the rules 5
124	124	set forth in § 6-13.1-7. Such authorization may precede any application, action or proceeding 6
125	125	instituted pursuant to § 37-27-5 and shall not abate or terminate by reason of any application, action, 7
126	126	or proceeding brought by the attorney general under this chapter. 8
127	127	37-27-7. Debarment. 9
128	128	(a) Any vendor debarred pursuant to this chapter shall not perform work as a prime 10
129	129	contractor, consultant, subcontractor or subconsultant for the state and shall be excluded from all 11
130	130	state procurements and any contract between the state and the vendor shall be terminated. 12
131	131	(b) Any person who is found to be in violation of any provision of this chapter shall be 13
132	132	subject to debarment, pursuant to chapter 2 of title 37 or any regulations promulgated thereto, from 14
133	133	state contracting for a period of up to five (5) years. 15
134	134	(c) A government entity that proposes, offers, or otherwise submits a contract for 16
135	135	competitive bidding shall maintain a current list of persons excluded or ineligible, by reason of 17
136	136	debarment, for participation in contracts or subcontracts with that government entity. 18
137	137	37-27-8. Severability. 19
138	138	Should any part of this chapter be declared invalid or unenforceable, or the enforcement or 20
139	139	compliance with it is suspended, restrained, or barred, either by the state or by the final judgment 21
140	140	of a court of competent jurisdiction, the remainder of this chapter shall remain in full force and 22
141	141	effect. 23
142	142	SECTION 3. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby 24
143	143	amended by adding thereto the following section: 25
144	144	37-2-83. Penalties. 26
145	145	Any person who knowingly and intentionally violates any provision of this chapter shall 27
146	146	be subject to a misdemeanor, punishable by a fine of not more than five hundred dollars ($500), or 28
147	147	by imprisonment for not more than one year, or both. 29
148	148	SECTION 4. This act shall take effect upon passage. 30
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155	155	EXPLANATION
156	156	BY THE LEGISLATIVE COUNCIL
157	157	OF
158	158	A N A C T
159	159	RELATING TO PUBLIC PROPERTY AND WORKS -- RHODE ISLAND BID RIGGING ACT
160	160	***
161	161	This act would establish the Rhode Island Bid Rigging Act. 1
162	162	This act would take effect upon passage. 2
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164	164	LC002672
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