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| To amend section 123.152 and to enact section 125.083 | 1 |
| of the Revised Code to generally require that | 2 |
| state agencies set aside a certain amount of | 3 |
| purchases for which only EDGE business | 4 |
| enterprises may compete. | 5 |
| Section 1. That section 123.152 be amended and section | 6 |
| 125.083 of the Revised Code be enacted to read as follows: | 7 |
| Sec. 123.152. (A) As used in this section, "EDGE business | 8 |
| enterprise" means a sole proprietorship, association, partnership, | 9 |
| corporation, limited liability corporation, or joint venture | 10 |
| certified as a participant in the encouraging diversity, growth, | 11 |
| and equity program by the director of administrative services | 12 |
| under this section of the Revised Code. | 13 |
| (B) The director of administrative services shall establish a | 14 |
| business assistance program known as the encouraging diversity, | 15 |
| growth, and equity program and shall adopt rules in accordance | 16 |
| with Chapter 119. of the Revised Code to administer the program | 17 |
| that do all of the following: | 18 |
| (1) Establish procedures by which a sole proprietorship, | 19 |
| association, partnership, corporation, limited liability | 20 |
| corporation, or joint venture may apply for certification as an | 21 |
| EDGE business enterprise; | 22 |
| (2) Except as provided in division (B)(14) of this section, | 23 |
| establish agency procurement goals for contracting with EDGE | 24 |
| business enterprises in the award of contracts under Chapters | 25 |
| 123., 125., and 153. of the Revised Code based on the availability | 26 |
| of eligible program participants by region or geographic area, as | 27 |
| determined by the director, and by standard industrial code or | 28 |
| equivalent code classification. | 29 |
| (a) Goals established under division (B)(2) of this section | 30 |
| shall be based on a percentage level of participation and a | 31 |
| percentage of contractor availability. | 32 |
| (b) Goals established under division (B)(2) of this section | 33 |
| shall be applied at the contract level, relative to an overall | 34 |
| dollar goal for each state agency, in accordance with the | 35 |
| following certification categories: construction, architecture, | 36 |
| and engineering; professional services; goods and services; and | 37 |
| information technology services. | 38 |
| (c) Goals established under division (B)(2) of this section | 39 |
| shall be consistent with the set-aside requirements of section | 40 |
| 125.083 of the Revised Code. | 41 |
| (3) Establish a system of certifying EDGE business | 42 |
| enterprises based on a requirement that the business owner or | 43 |
| owners show both social and economic disadvantage based on the | 44 |
| following, as determined to be sufficient by the director: | 45 |
| (a) Relative wealth of the business seeking certification as | 46 |
| well as the personal wealth of the owner or owners of the | 47 |
| business; | 48 |
| (b) Social disadvantage based on any of the following: | 49 |
| (i) A rebuttable presumption when the business owner or | 50 |
| owners demonstrate membership in a racial minority group or show | 51 |
| personal disadvantage due to color, ethnic origin, gender, | 52 |
| physical disability, long-term residence in an environment | 53 |
| isolated from the mainstream of American society, location in an | 54 |
| area of high unemployment; | 55 |
| (ii) Some other demonstration of personal disadvantage not | 56 |
| common to other small businesses; | 57 |
| (iii) By business location in a qualified census tract. | 58 |
| (c) Economic disadvantage based on economic and business size | 59 |
| thresholds and eligibility criteria designed to stimulate economic | 60 |
| development through contract awards to businesses located in | 61 |
| qualified census tracts. | 62 |
| (4) Establish standards to determine when an EDGE business | 63 |
| enterprise no longer qualifies for EDGE business enterprise | 64 |
| certification; | 65 |
| (5) Develop a process for evaluating and adjusting goals | 66 |
| established by this section to determine what adjustments are | 67 |
| necessary to achieve participation goals established by the | 68 |
| director; | 69 |
| (6) Establish a point system or comparable system to evaluate | 70 |
| bid proposals to encourage EDGE business enterprises to | 71 |
| participate in the procurement of professional design and | 72 |
| information technology services; | 73 |
| (7) Establish a system to track data and analyze each | 74 |
| certification category established under division (B)(2)(b) of | 75 |
| this section; | 76 |
| (8) Establish a process to mediate complaints and to review | 77 |
| EDGE business enterprise certification appeals; | 78 |
| (9) Implement an outreach program to educate potential | 79 |
| participants about the encouraging diversity, growth, and equity | 80 |
| program; | 81 |
| (10) Establish a system to assist state agencies in | 82 |
| identifying and utilizing EDGE business enterprises in their | 83 |
| contracting processes; | 84 |
| (11) Implement a system of self-reporting by EDGE business | 85 |
| enterprises as well as an on-site inspection process to validate | 86 |
| the qualifications of an EDGE business enterprise; | 87 |
| (12) Establish a waiver mechanism to waive program goals or | 88 |
| participation requirements for those companies that, despite their | 89 |
| best-documented efforts, are unable to contract with certified | 90 |
| EDGE business enterprises; | 91 |
| (13) Establish a process for monitoring overall program | 92 |
| compliance in which equal employment opportunity officers | 93 |
| primarily are responsible for monitoring their respective | 94 |
| agencies; | 95 |
| (14) Establish guidelines for state universities as defined | 96 |
| in section 3345.011 of the Revised Code and the Ohio school | 97 |
| facilities commission created in section 3318.30 of the Revised | 98 |
| Code for awarding contracts pursuant to Chapters 153., 3318., and | 99 |
| 3345. of the Revised Code to allow the universities and commission | 100 |
| to establish agency procurement goals for contracting with EDGE | 101 |
| business enterprises. | 102 |
| (C) Business and personal financial information and trade | 103 |
| secrets submitted by encouraging diversity, growth, and equity | 104 |
| program applicants to the director pursuant to this section are | 105 |
| not public records for purposes of section 149.43 of the Revised | 106 |
| Code, unless the director presents the financial information or | 107 |
| trade secrets at a public hearing or public proceeding regarding | 108 |
| the applicant's eligibility to participate in the program. | 109 |
| Sec. 125.083. (A) As used in this section, "EDGE business | 110 |
| enterprise" has the same meaning as in section 123.152 of the | 111 |
| Revised Code. | 112 |
| (B) From the purchases that the department of administrative | 113 |
| services is required by law to make through competitive selection, | 114 |
| the director of administrative services shall select a number of | 115 |
| such purchases, the aggregate value of which equals approximately | 116 |
| fifteen per cent of the estimated total value of all such | 117 |
| purchases to be made in the current fiscal year. The director | 118 |
| shall set aside the purchases selected for competition only by | 119 |
| EDGE business enterprises. The competitive selection procedures | 120 |
| for such purchases set aside shall be the same as for all other | 121 |
| purchases the department is required to make through competitive | 122 |
| selection, except that only EDGE business enterprises shall be | 123 |
| qualified to compete. | 124 |
| (C) To the extent that any agency of the state, other than | 125 |
| the department of administrative services, the legislative and | 126 |
| judicial branches, boards of elections, and the adjutant general, | 127 |
| is authorized to make purchases, the agency shall set aside a | 128 |
| number of purchases, the aggregate value of which equals | 129 |
| approximately fifteen per cent of the aggregate value of such | 130 |
| purchases for the current fiscal year for competition by EDGE | 131 |
| business enterprises only. The procedures for such purchases shall | 132 |
| be the same as for all other such purchases made by the agency, | 133 |
| except that only EDGE business enterprises shall be qualified to | 134 |
| compete. | 135 |
| (D) In the case of purchases set aside under division (B) or | 136 |
| (C) of this section, if no bid is submitted by an EDGE business | 137 |
| enterprise, the purchase shall be made according to usual | 138 |
| procedures. The contracting agency shall from time to time set | 139 |
| aside such additional purchases for which only EDGE business | 140 |
| enterprises may compete, as are necessary to replace those | 141 |
| purchases previously set aside for which no EDGE business | 142 |
| enterprises bid and to ensure that, in any fiscal year, the | 143 |
| aggregate amount of contracts awarded to EDGE business | 144 |
| enterprises will equal approximately fifteen per cent of the total | 145 |
| amount of contracts awarded by the agency. | 146 |
| (E) The director may, in accordance with Chapter 119. of the | 147 |
| Revised Code, adopt rules necessary for the implementation of this | 148 |
| section. | 149 |
| (F) Nothing in this section precludes any EDGE business | 150 |
| enterprise from competing for any other state purchases that are | 151 |
| not specifically set aside for EDGE business enterprises. | 152 |
| (G) If an EDGE business enterprise is also qualified under | 153 |
| section 125.081 of the Revised Code to compete as a minority | 154 |
| business enterprise, a contract awarded by a state agency to the | 155 |
| business enterprise pursuant to that section shall be considered, | 156 |
| for purposes of this section, a contract awarded to an EDGE | 157 |
| business enterprise. | 158 |
| (H) Any person who intentionally misrepresents self as | 159 |
| owning, controlling, operating, or participating in an EDGE | 160 |
| business enterprise for the purpose of obtaining contracts, | 161 |
| subcontracts, or any other benefits under this section shall be | 162 |
| guilty of theft by deception as provided for in section 2913.02 of | 163 |
| the Revised Code. | 164 |
| Section 2. That existing section 123.152 of the Revised Code | 165 |
| is hereby repealed. | 166 |
| Section 3. Sections 123.152 and 125.083 of the Revised Code, | 167 |
| as amended or enacted by this act, shall first apply to purchases | 168 |
| made in fiscal year 2009. | 169 |