Lawmakers approve bill to provide contractors with list of minority- and women-owned businesses
STATE HOUSE — The General Assembly approved legislation sponsored by Sen. Lammis J. Vargas and Rep. Joshua J. Giraldo to provide a list of minority-owned businesses to all contractors of state-funded public construction projects.
The legislation, which now goes to the governor, is a priority of the Rhode Island Black, Latino, Indigenous, Asian American and Pacific Islander caucus this year.
The bill (2025-H 5684, 2025-S 0311) will require the Department of Administration to provide a list of certified minority and women-owned business enterprises to each prospective contractor of a construction project, and would prohibit the issuance of a waiver from this requirement until the contractor received assistance from the department.
“This legislation is an important milestone for equitable procurement by expanding opportunities for historically excluded business owners. By promoting exposure to minority and women-owned businesses, we also promote transparency and accountability in the construction process,” said Representative Giraldo (D-Dist. 56, Central Falls).
Said Senator Vargas (D-Dist. 28, Cranston, Providence), “Rhode Island has, for years, required that minority- and women-owned companies be represented in the contracts we award. But even in a state as small as Rhode Island, it isn’t easy for small companies to get the word out that they are minority- or women-owned and are available for subcontracting. Providing a list of the companies that are certified as being women- or minority-owned makes it easier for contractors to fulfill this requirement and gives small companies a boost toward being selected for work on state-funded projects. This list will help ensure the success of the minority and women business enterprise requirement for state contracts.”
Sen. Lammis J. Vargas
Ellijah McLean, manager of government relations and policy for United Way Rhode Island, testified in favor of the legislation, saying, “As highlighted in a 2023 Brookings Institution report, Black- and Latino-owned businesses are significantly underrepresented in public contracting, receiving less than 2% of federal procurement dollars nationally, despite representing a much larger share of the population and small business sector. Rhode Island must continue to lead with policies that correct these imbalances. Strengthening supports for MWBEs ensures that public investments generate shared economic prosperity across all communities.”