SB 199 — Requiring purchases of certain commodities and services from state use program partners

WEST VIRGINIA LEGISLATURE REGULAR SESSION Committee Substitute for Committee Substitute for Senate Bill 199 ByB SenatorsYSENATORS Hamilton,HAMILTON, Karnes,ARNES Phillips,, Barrett,HILLIP, Martin,ARRETT, Queen,M Maroney,ARTIN, andUEEN, OliverioMARONEY,AND OLIVERIO [Originating in the Committee on GovernmentFinance; Organization;

reported on February 7,27, 2023] CS for CS for SB 199 A BILL to amend and reenact §5A-1-1 of the West Virginia Code, 1931, as amended;

and to amend and reenact §5A-3A-2,§5A-3A-2 §5A-3A-3, §5A- 3A-4, and §5A-3A-6 of said code,code; all relating to requiring purchases of certain commodities and services from state use program partners;

and to repeal §5A-3A-3, §5A-3A-4, §5A-3A-5, and §5A-3A-6 of said code, all relating to requiring purchases of certain commodities and services from state use program partners;

and requiring directorDivision of Purchasing to purchase certain commodities and services from approved state use program partners;partners if approved state use program partner bid is within five percent of lowest competitor bid.

providing that determination that commodities and services purchased from state use program partners are of fair market value and quality comparable to commodities and services otherwise available is to be made by Committee on the Purchase of Commodities and Services from the Disabled;

revising qualifications for chair of committee;

and clarifying date for annual report of committee.

(6) "Electronic transmission" or "electronically transmitted" means any process of 1 CS for SB 199 communication not directly involving the physical transfer of paper that is suitable for the retention, retrieval, and reproduction of information by the recipient.

CS for CS for SB 199 (7) "Expendable commodities" means those commodities which, when used in the ordinary course of business, will become consumed or of no market value within the period of one year or less.

(9) "Nonprofit workshops" “Approved"Approved state use program partner”partner" means an establishment:

(B) which is operated either by a public agency or private approved partner working with a nonprofit through apprenticeship or memorandum of understanding or by a cooperative or by a nonprofit private corporation or nonprofit association in which no part of the net earnings thereof inures, or may lawfully inure, to the benefit of any private shareholder or individual;

(14) "Removable property" means any personal property not permanently affixed to or 2 CS for SB 199 forming a part of real estate.

CS for CS for SB 199 (16) "Responsible bidder" means a vendor who has the capability to fully perform the contract requirements, and the integrity and reliability which that will assure good-faith performance.

employee 3 CS for SB 199 to assist in dealings with nonprofit workshops central nonprofit agency;

CS for CS for SB 199 (a) A purchase of and contract for commodities, printing, and services shall be based on competitive bids, except when another method of procurement is determined to be in the best interest of the state.

The director may set a higher or lower delegated procurement limit for a particular spending unit if the director determines that such action would be in the best interest of the spending unit and the State.state.

(c) Spending units shall not make an individual purchase in excess of the delegated procurement limit established in subsection (b) of this section, issue a series of requisitions for the same or similar commodity or service or divide or plan procurements with the intention to circumvent the delegated procurement limit established in subsection (b),(b) of this section, or otherwise avoid the use of sealed bids.

The director may conduct a review of 4 CS for SB 199 any spending unit to ensure compliance with this subsection.

Following a CS for CS for SB 199 review, in consultation with the relevant spending unit, the director shall complete a report summarizing his or her findings and forward the report to the spending unit.

(f) (1) The director maymay, shall, without competitive bidding, purchase commodities and services produced and offered for sale by nonprofit workshops an approved state use program partner, as defined in §5A-1-1 of this code, which are located in this state:state.:

Provided, That the commodities and services shall be of a fair market price and of like quality comparable to other commodities and services otherwise available as determined by the director CommitteeShould fora qualified state use program partner bid exceed the Purchaselowest bid by 5 percent or less, the Division of CommoditiesPurchasing andshall Servicesoffer fromthe partner the Disabled.opportunity to match the lowest bid.

(2) To encourage contracts for commodities and services with nonprofit workshops approved state use program partners, the director shall employ a person whose responsibilities in addition to other duties are to identify all commodities and services available for purchase from nonprofit workshops approved state use program partners, to evaluate the need of the state for commodities and services to coordinate with the various nonprofit workshops central nonprofit agency in their production efforts, and to make available to the workshops central nonprofit agency information about available opportunities within state government for purchase of CS for CS for SB 199 commodities or services which might be produced and sold by such workshops approved state use program partners.

5 CS for SB 199 (g) For all commodities and services in an amount exceeding $1 million, if the procurement of the commodity or service is continuing in nature, 12 months prior to the expiration of the contract or final renewal option, whichever is later, the spending unit shall coordinate with the Purchasing Division on a new procurement for such commodity or service under the requirements of this article.

A central nonprofit agency approved by the director of the Division of Rehabilitation Services is established for the purpose of coordinating purchases under the provisions of §5A-3- 10 of this code, between various “spending"spending units”units" of the state and “nonprofit workshops.” “approved"approved state use program partners”.partners".

(b) Evaluating the qualifications and capabilities of workshops approved state use program partners and entering, as necessary, into contracts with government procuring entities for the furnishing of the commodities or services provided by the workshops approved state use program partners;partners and;

list the commodities and services of participating CS for CS for SB 199 workshops approved state use program partners, research and assist the workshops approved state use program partners in developing new products and upgrading existing ones, and shall 6 CS for SB 199 survey applicable private industry to provide input on fair market prices;prices.;

and (d) Present an annual report for each fiscal year concerning the operations of its nonprofit workshops approved state use program partners to the director of the Division of Rehabilitation ServicesServices. Committee for the Purchase of Commodities and Services from the Disabled.

Committee for the purchase of commodities and services from the handicappedhandicapped. disabled.

(a)[Repealed]. The committee for the purchase of commodities and services from the handicapped disabled is hereby created as a part of the Department of Administration and shall be composed of the following six members who are to be appointed by the Governor with the advice and consent of the Senate:

A private citizen who is conversant with the problems incidental to the employment of handicapped disabled persons;

a representative of a producing nonprofit workshop approved state use program partner;

a representative of the Division of Rehabilitation Services;

a representative of the Department of Administration who is knowledgeable in the purchasing requirements of the state;

a representative of private business who is knowledgeable in the activities involved in the sale of commodities or services to governmental entities;

and a representative of organized labor who is knowledgeable in matters relating to employment of the disabled.

The Governor shall appoint one nongovernmental employee member to serve as chairperson.

(b) Members of the committee are appointed to serve two-year terms expiring on January 31 of odd-numbered years.

Members who are not state employees shall receive compensation for their service of $50 per day for each day actually engaged in the work of the committee and all members shall receive reimbursement by the state for expenses incurred in performing their duties as members.

(c) The committee shall have as an executive secretary the person charged with program management in §5A-3-10 of this code.