House approves program to buy from nonprofits that employ people with disabilities, capped at $5 million

The Utah House voted to pass Senate Bill 59, a measure intended to direct a portion of state contracting to nonprofit community rehabilitation programs that employ people with disabilities.

Representative Lockhart, who explained the bill on the floor, said the program would work through existing community rehabilitation providers and create a purchasing preference for goods and services they provide. "There's a $5,000,000 cap on this ability of the state to contract with these organizations for services," Lockhart said, clarifying that the cap does not mean new spending equal to $5 million but rather a cap on the portion of state contracting that may be awarded under this program.

Floor discussion clarified the program applies to state contracts only; it does not impose the new procurement route on cities and counties. Supporters compared the proposal to the long-standing federal Javits-Wagner-O'Day (JWOD) program, which creates set-asides for nonprofits that employ people with disabilities. Representative Mascara, who disclosed a personal connection to the industry, urged adoption and said the model trains people with disabilities for work and reduces reliance on welfare.

Opponents did not prevail. The House recorded passage of SB 59, 63 yes to 8 no; the bill will be signed by the Speaker and returned to the Senate for the President's signature. Supporters described the bill as a way to expand employment and training opportunities for people with disabilities without creating new ongoing welfare costs.