Bill Summary for S 568 (2021-2022)

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Summary date: 

Apr 6 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 568 (Public) Filed Tuesday, April 6, 2021
AN ACT APPROPRIATING FUNDS TO THE DEPARTMENT OF ADMINISTRATION AND CLARIFYING THE DEFINITION OF THE TERM "RESPONSIBLE, RESPONSIVE BIDDER" TO INCREASE THE NUMBER OF MINORITY AND HISTORICALLY UNDERUTILIZED BUSINESSES USED IN STATE CONTRACTS.
Intro. by deViere, Robinson, Foushee.

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Bill summary

Appropriates $500,000 for 2020-21 from the General Fund to the Department of Administration, Offices of Historically Underutilized Business (HUB), to improve existing and create new outreach plans to educate minority businesses on State laws that encourage or require minority participation in State contracts. Also requires HUB to improve and create programs to foster interaction between minority and nonminority businesses to increase the number of minority subcontractors used in State contracts. Requires HUB to study whether the current "good-faith efforts" required under GS 143-128.2 (Minority business participation goals) should be expanded or simplified and requires a report on findings and recommendations by February 15, 2022, to the specified NCGA committee and division. 

Appropriates $15 million for 2020-21 from the General Fund to the Department of Administration for the ReTOOLNC grant program to provide assistance to historically underutilized businesses in recovering from the COVID-19 pandemic. 

Appropriates $2 million for 2020-21 from the General Fund to HUB to be allocated to community development financial institutions to support and develop African American and minority-owned businesses.

Appropriates $1 million for 2020-21 from the General Fund to HUB to be allocated to African American and community-based organizations to aid in outreach to encourage participation in State contracts and to conduct training on the certification process. Requires the Department of Administration to develop a grant process for these funds and requires a report on the criteria and recipients by December 1, 2021, to the specified NCGA committee and division.

Appropriates $2 million for 2020-21 from the General Fund to HUB to be allocated to local governments to study disparities in the awarding of local public contracts to minority and nonminority contractors and subcontractors. Requires the Department of Administration to develop a grant process for these funds and requires a report on the criteria and recipients by December 1, 2021, to the specified NCGA committee and division.

Appropriates $250,000 for 2020-21 from the General Fund to HUB to purchase or contract for software to collect compliance data on: (1) the State's policy to encourage and promote the use of small contractors, minority contractors, physically handicapped contractors, and women contractors in State purchasing of goods and services and (2) the State's verifiable 10% goal for participation by minority businesses in the total value of work for each State building project. Also requires HUB to use the software for quarterly reports on data and compliance with GS 143-38 (State policy; cooperation in promoting the use of small contractors, minority contractors, physically handicapped contractors, and women contractors; purpose; required annual reports) and GS 143-128.2 (Minority business participation goals).  Requires HUB to report annually on the data and information collected for each of the preceding four quarters to the specified NCGA committee and division.

Part II.

Amends GS 143-129, concerning the procedure for the letting of public contracts, to allow proposals to be rejected for failure to comply with GS 143-128.2(c), which sets out requirements for a bidder to identify on its bid the minority businesses that it will use on the project and an affidavit listing the good faith efforts it has made and the total dollar value of the bid that will be performed by the minority businesses. Requires, when awarding the contract, taking into consideration the bidder's compliance with that same provision, and past performance on contracts.

Part III.

Provides that the act's headings do not expand, limit, or define the text of this act.

Part IV.

Effective July 1, 2021.