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H. 5073
STATUS INFORMATION
General Bill
Sponsors: Rep. W.D. Smith
Document Path: l:\council\bills\bbm\10154sj04.doc
Introduced in the House on March 31, 2004
Currently residing in the House Committee on Ways and Means
Summary: S.C. Works Act, state procurement procedures
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/31/2004 House Introduced and read first time HJ-38 3/31/2004 House Referred to Committee on Ways and Means HJ-39
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 36 SO AS TO ENACT THE "SOUTH CAROLINA WORKS ACT" WHICH ESTABLISHES A STATE PROCUREMENT PROGRAM WHEREBY GOVERNMENTAL AGENCIES ARE REQUIRED, UNDER CERTAIN CIRCUMSTANCES, TO PURCHASE CERTAIN PRODUCTS AND TO PROCURE CERTAIN SERVICES FROM NOT-FOR-PROFIT AGENCIES OR GOVERNMENTAL AGENCIES FOR PERSONS WITH SEVERE DISABILITIES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 11 of the 1976 Code is amended by adding:
Section 11-36-10. This chapter may be cited as the 'South Carolina Works Act'.
Section 11-36-20. (A) The purpose of this chapter is to further the policy of the State to encourage and assist persons with severe disabilities to achieve maximum personal independence through useful, productive, and gainful employment by ensuring an expanded and constant market for their products and services, thereby enhancing their dignity and capacity for self-support and minimizing their dependence on welfare and entitlements.
(B) The contracting and purchasing portions of this chapter cover all political subdivisions of the State, including counties, municipalities, school districts, colleges, universities, libraries, public authorities, corporations, and commissions and any other public body supported in whole or part by the General Assembly.
(C) The provisions of this chapter and participation under the procurement program established pursuant to this chapter are optional for approved not-for-profit agencies and governmental agencies for persons with severe disabilities. These agencies may precede under this chapter when seeking the purchase of their products and services. Participation under this program does not preclude approved not-for-profit agencies and governmental agencies for persons with severe disabilities from participating in alternative programs at any time.
Section 11-36-30. As used in this chapter:
(1) 'Central not-for-profit agency' or 'CNA' means the agency established by the committee to facilitate procurement and distribution, by direct allocation, or subcontracting for products and services on the procurement list among approved not-for-profit agencies and governmental and to support the committee in administering the program established pursuant to this chapter.
(2) 'Committee' or 'the committee for purchase' means the committee established pursuant to this chapter that oversees the procurement program provided for in this chapter.
(3) 'Direct labor', for reporting purposes only, means all work required for preparation, processing, and packing, excluding supervision, administration, inspection, shipping, and overhead functions. This requirement does not preclude a person with significant disabilities from moving into a supervisory or an administrative position.
(4) 'Governmental agency' means an entity of government that serves persons with severe disabilities and that:
(a) is organized under the laws of the United States or this State, operated in the interest of persons with disabilities, and operated under the auspices of a division of state or county government;
(b) complies with applicable occupational health and safety standards prescribed by the Secretary of Labor of the United States;
(c) in the production of products and the provision of services during the fiscal year, employs persons with severe disabilities for not less than seventy-five percent of the total agency's direct labor for the production of products or provisions of services;
(d) has an affirmative action policy that commits to upward employment mobility of persons with significant disability as well as persons of varying race, creed, sex, or age.
'Governmental agency' includes any subdivision of the agency, such as a satellite location or off-site location, where direct labor is performed for the agency or any location that is supported in whole or in part by funds appropriated by the agency.
(5) 'Products or services' means:
(a) those products produced by persons with severe disabilities with 'value added' by any qualified not-for-profit agency or governmental agency;
(b) the services provided by persons with severe disabilities with 'value added' by any qualified not-for-profit agency or governmental agency; and
(c) those products and services that have been recommended by the CNA as suitable for procurement by an entity of government pursuant to this chapter and that have been approved by the committee for this purpose.
(6) 'Procurement list' is a list of mandatory procurement products and services that has been approved by the committee.
(7) 'Qualified not-for-profit agency' means an agency serving persons with severe disabilities that:
(a) is incorporated under the laws of the United States or of this State, operated in the interest of persons with disabilities, and the net income of which does not inure in whole or part to the benefit of any shareholder or other individual;
(b) complies with all applicable occupational health and safety standards prescribed by the Secretary of Labor of the United States;
(c) in the production of products and the provision of services during the fiscal year, employs persons with severe disabilities for not less than seventy-five percent of the total agency's direct labor for the production of products or provision of services;
(d) meets the criteria for determining not-for-profit status under applicable provisions of law and that is registered and in good standing with the Secretary of State as a charitable organization; and
(e) has an affirmative action policy that commits to upward employment mobility of persons with significant disability as well as persons of varying race, creed, sex, or age.
'Qualified not-for-profit agency' includes any subdivision of the not-for-profit agency, such as a satellite location or off-site location, where direct labor is performed for the agency or any other location that is supported in whole or in part by funds appropriated by the agency.
(8) 'Severe disability' means a physical, mental, or other significant disability, including blindness, which, according to criteria established by the committee, constitutes a substantial barrier to employment and is of such a nature as to prevent the individual under the disability from currently engaging in normal competitive employment.
Section 11-36-40. (A) If a government agency intends to procure a product or service on the procurement list, the agency shall procure, in accordance with rules and regulations of the CNA, these products or services at the price established by the committee from a qualified not-for-profit agency or governmental agency if the product or service is available within a reasonable delivery time.
(B) This chapter has precedence over any law requiring state agency procurement of products or services including, but not limited to prison services, unless the precedence is waived by the CNA in accordance with its regulations.
Section 11-36-50. (A) There is established the Committee for Purchase, which shall provide oversight to the central not-for-profit agency in developing and implementing a state procurement program for the purchase of products and services from qualified not-for-profit agencies and governmental agencies for persons with severe disabilities. The committee shall establish the CNA commission rate and approve contracts for the procurement list. The committee shall recommend fair market price for approved products and services submitted by the CNA. The Governor or the Governor's designee shall appoint representatives from government agencies and the private sector to serve on the committee for terms of three years.
(B) The committee shall:
(1) establish a CNA to facilitate the distribution of orders placed by government purchasing agencies for products or services appearing on the procurement list; this distribution may be by direct allocation or by subcontracting to qualified not-for-profit or governmental agencies;
(2) review those rules and regulations proposed by the CNA and promulgate regulations that will effectively implement this chapter;
(3) conduct an annual evaluation of the activities of the CNA under this chapter for the purposes of ensuring effective and efficient administration of this chapter;
(4) evaluate pricing proposed by the CNA to determine fair market price, which must recover the costs projected for the qualified not-for-profit agency or governmental agency to produce or provide these products or services;
(5) approve the initial procurement procedures established under this chapter and any subsequent additions, deletions, or other revisions;
(6) establish and implement a compliance program for government purchasing agencies, including appropriate sanctions and penalties for noncompliance with this chapter;
(7) annually submit a report to the General Assembly outlining activities completed in accordance with this chapter and the benefits to the State and to persons with severe disabilities.
Section 11-36-60. (A) The CNA also shall:
(1) facilitate the allocation of orders among qualified not-for-profit agencies and governmental agencies and carry out other relevant matters of procedure as necessary to fulfill the purposes of this chapter. The CNA shall authorize the purchase of products and services elsewhere when requisitions cannot reasonably be satisfied through the not-for-profit agencies or governmental agencies;
(2) determine and recommend the market price of all products and services offered for sale to the various agencies of the state by any qualified not-for-profit or governmental agency. The price must recover for the agency the cost of raw materials, labor, overhead, and delivery and must be revised annually in accordance with changing cost factors;
(3) propose rules and regulations to the committee, as necessary, regarding specifications, time of delivery, and assignment of products and services to be supplied by not-for-profit agencies or governmental agencies;
(4) establish and publish a list of products and services provided by a qualified not-for-profit agency or governmental agency that the committee determines are suitable for procurement by government purchasing agencies pursuant to this chapter. The procurement list and revisions to the list must be distributed to all purchasing officers of the State and its political subdivisions. All products offered for purchase by the State and its political subdivision by a qualified not-for-profit agency or governmental agency shall have value added, as determined by the committee; and
(5) a contract between any legislative, executive, or judicial agency of the State and any private contract vendor for the procurement of products or services must contain the following language:
'IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY PRODUCTS AND/OR SERVICES REQUIRED TO CARRY OUT THIS CONTRACT WILL BE PURCHASED FROM A QUALIFIED NOT-FOR-PROFIT AGENCY OR GOVERNMENTAL AGENCY FOR PERSONS WITH SEVERE DISABILITIES'; and
(6) ensure appropriate evaluation of workers with disabilities reported will be assessed to determine their capabilities and to ensure strategies that maximize their employment capabilities.
(B) The central not-for-profit agency may waive priority on a proposed product or service on a one time basis if the commodity or service is unavailable through a not-for-profit agency or governmental agency and if the product or service can be purchased in the local community for a similar price and quality.
Section 11-36-70. In furtherance of the purposes of this chapter and in order to contribute to the economy of state government, it is the intent of the General Assembly that there be close cooperation between the committee and any agency of the state from which procurement of products or services is required under the provision of any law currently in effect. The committee and any such agency of the state are authorized to enter into contractual agreements, cooperative working relationships, or other arrangements as may be determined to be necessary for effective coordination and efficient realization of the objectives of this chapter and of any other law requiring procurement of products or services by any agency of the state.
Section 11-36-80. The CNA shall secure directly from any agency of the state information necessary to enable the CNA to carry out its responsibilities under this chapter. Upon request of the CNA, the head of the agency shall furnish this information to the CNA.
Section 11-36-90. Space must be set aside in the State Capitol building for the purpose of exhibiting products produced by the clients of qualified not-for-profit agencies or governmental agencies."
SECTION 2. This act takes effect upon approval by the Governor.
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