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Introduced Version - Originating in Committee Senate Bill 741 History

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Key: Green = existing Code. Red = new code to be enacted




Senate Bill No. 741

(By Senators Wooton, Hunter, Kessler, Minard, Mitchell, Oliverio, Rowe, Snyder, Deem and McKenzie)

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[Originating in the Committee on the Judiciary;


reported March 1, 2002.]

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A BILL to amend and reenact sections one and three, article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to the small business state contracting act of 2002; providing definition of small business; and authorizing the director of purchasing to propose legislative rules to develop and implement a method for spending units to purchase commodities from resident small business vendors with a goal of twenty-three percent of state contracts awarded to resident small businesses.

Be it enacted by the Legislature of West Virginia:
That sections one and three, article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:
ARTICLE 3. PURCHASING DIVISION.
§5A-3-1. Division created; purpose; director; applicability of article; continuation.

(a) There is hereby created the purchasing division of the department of administration for the purpose of establishing centralized offices to provide purchasing, travel and leasing services to the various state agencies.
(b) No person shall may be appointed director of the purchasing division unless that person is, at the time of appointment, a graduate of an accredited college or university and shall have who has spent a minimum of ten of the fifteen years immediately preceding his or her appointment employed in an executive capacity in purchasing for any unit of government or for any business, commercial or industrial enterprise.
(c) The provisions of this article shall apply to all of the spending units of state government, except as is otherwise provided by this article or by law: Provided, That the provisions of this article shall do not apply to the legislative branch unless otherwise provided by law or the Legislature or either house thereof requests the director to render specific services under the provisions of this chapter, nor to purchases of stock made by the alcohol beverage control commissioner, nor to purchases of textbooks for the state board of education.
(d) For the purposes of this section, a small business has the same definition as set out in section seven-a, article thirteen-c, chapter eleven of this code.
§5A-3-3. Powers and duties of director of purchasing.
(a) The director, under the direction and supervision of the secretary, shall be the executive officer of the purchasing division and shall have the power and duty to:
(1) Direct the activities and employees of the purchasing division;
(2) Ensure that the purchase of or contract for commodities and printing shall be based, whenever possible, on competitive bid;
(3) Purchase or contract for, in the name of the state, the commodities and printing required by the spending units of the state government;
(4) Apply and enforce standard specifications established in accordance with section five of this article as hereinafter provided;
(5) Transfer to or between spending units or sell commodities that are surplus, obsolete or unused as hereinafter provided;
(6) Have charge of central storerooms for the supply of spending units;
(7) Establish and maintain a laboratory for the testing of commodities and make use of existing facilities in state institutions for that purpose as hereinafter provided;
(8) Suspend the right and privilege of a vendor to bid on state purchases when the director has evidence that such vendor has violated any of the provisions of the purchasing law or the rules and regulations of the director;
(9) Examine the provisions and terms of every contract entered into for and on behalf of the state of West Virginia that impose any obligation upon the state to pay any sums of money for commodities or services and approve each such contract as to such provisions and terms; and the duty of examination and approval herein set forth does not supersede the responsibility and duty of the attorney general to approve such contracts as to form: Provided, That the provisions of this subdivision do not apply in any respect whatever to construction or repair contracts entered into by the division of highways of the department of transportation: Provided, however, That the provisions of this subdivision do not apply in any respect whatever to contracts entered into by the university of West Virginia board of trustees or by the board of directors of the state college system, except to the extent that such boards request the facilities and services of the director under the provisions of this subdivision; and
(10) Assure that the specifications and commodity descriptions in all "requests for quotations" are prepared so as to permit all potential suppliers-vendors who can meet the requirements of the state an opportunity to bid and to assure that the specifications and descriptions do not favor a particular brand or vendor. If the director determines that any such specifications or descriptions as written favor a particular brand or vendor or if it is decided, either before or after the bids are opened, that a commodity having different specifications or quality or in different quantity can be bought, the director may rewrite the "requests for quotations" and the matter shall be rebid; and
(11) Propose legislative rules to implement and develop the method for spending units of state government to purchase commodities including personal computers, materials, supplies, services and equipment from resident small business vendors. The rules shall provide that the policy of the state is for small businesses to be encouraged to bid for state contracts, with a goal of at least twenty-three percent of contract bids going to state small businesses as is the case in federal government contract bids. Small businesses may join together to bid on contracts and may not be limited by contract bundling by the state when it prevents small businesses from bidding. The rules shall further provide that small businesses may subcontract services on contracts and may not be excluded from contract bids or from being awarded contracts for the sole reason that the small business cannot comply with performance bond requirements, financial statement requirements or warranty specifications or can not provide any other service, if the small business can satisfy these requirements and others through subcontracts or other methods.
The rules shall further provide a method for monitoring the implementation of the policy to encourage resident small businesses to bid for state contracts, for determining whether the goal of twenty-three percent has been met and for evaluating what further steps must be taken to meet the goal of twenty-three percent of state contract bids going to resident small businesses.
(b) The purchasing division is directed to collaborate with the West Virginia small business development center in the drafting of these rules and the monitoring of progress in attaining the goals of this section. The division shall submit a report to the joint committee on government and finance prior to the first day of July, two thousand three, and each succeeding year documenting progress made towards meeting these goals and the means to be implemented in future years for meeting the goals set forth in this section.
(c) The purchasing division is further directed to conduct a review of its rules to determine whether any previously adopted rules are not in conformity with the new policy of encouraging resident small businesses to bid on state contracts and the goal of twenty-three percent of state contracts going to resident small businesses and to recommend the adoption of new rules to ensure future conformity with this new policy.

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(NOTE: The purpose of this bill is to establish a new public policy encouraging resident small businesses to bid for state contracts, to set a goal of twenty-three percent of all state contracts for purchases going to resident small businesses and to establish rules to fulfill this policy and monitor the progress towards achieving these goals.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.)
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