The bill makes substantial changes to Section 520 of Title 62, concerning supplies manufactured and services performed by persons with disabilities, with the following highlights:
- General rule on contracts
- Contracts for supplies manufactured by and services performed by persons with disabilities may be entered without competitive bidding if they meet an “appreciable contribution” standard.
The department determines whether the contribution is appreciable.
Annual review for contracts over $300,000/year
For contracts exceeding $300,000 annually, the department, with the purchasing agency, must conduct an annual compliance review.
If progress or compliance is lacking, the agency for persons with disabilities has 45 days to remedy; failure to remedy can lead to termination and procurement via competitive bidding. Emergency procurements remain possible if noncompliance is present.
Subminimum wage (14(c)) prohibition phased-in
Start: Prohibition on entering new contracts that use Federal 14(c) certificates (subminimum wage) for work connected to this section begins on the effective date.
Two years after the effective date: Prohibition on continuing use of 14(c) certificates for work connected to this section.
Integration requirements
Two years after the effective date, agencies for persons with disabilities must ensure a work environment that is integrated with non-disabled employees for state contracts covered by this section.
Integration details:
- Interaction between disabled and non-disabled coworkers, customers, vendors, and the public (not required for supervisors, job coaches, or service providers).
- An agency for persons with disabilities may be an organization that affirmatively hires/promotes persons with disabilities if it meets integration and eligibility requirements.
- An attestation from every agency confirming integration is required.
- Compliance monitoring via annual reviews and site visits (no less than every five years, or sooner if credible allegations arise).
- The department can delegate monitoring duties to other state agencies (e.g., Office of Vocational Rehabilitation) through interagency agreements.
Prioritization of disability inclusion
Agencies for persons with disabilities must prioritize disability inclusion and representation in employment strategic planning.
Fair market pricing and distribution
The department must determine fair market prices for supplies or services offered by agencies for persons with disabilities and update those prices as market conditions change.
The department or a nonprofit agency (with department approval) shall facilitate distribution of orders for such supplies or services among agencies for persons with disabilities.
Procurement from Commonwealth agencies
If a supply or service is available from a Commonwealth agency under another statute, procurement follows those respective rules.
Exceptions
A specific exception exists for the operation of the Commonwealth’s driver’s license photo centers, where at least 70% of contract payments must cover wages, salaries, and direct costs associated with persons with disabilities.
The department may grant exceptions to ratio or integration requirements due to extraordinary external events, pilots of new employment initiatives, or other reasons to support competitive, integrated employment.
Definitions and clarifications
The bill provides updated definitions for terms used in this section (e.g., agency for persons with disabilities, appreciable contribution, direct labor ratio requirements, manufactured, performed, services, etc.).
It clarifies that “services” include certain packaging or repackaging activities that confer substantial and real benefits to the Commonwealth agency, with procurement arrangements to be made by the relevant Commonwealth agency.
Note: The trauma-informed records program aspect is referenced but not detailed in the text provided. If you need, I can extract potential implications or draft questions for committee analysis based on typical trauma-informed record-keeping and school safety practices.
