HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No.  HB 1652

Providing entrepreneurial opportunities for disabled persons.

Brief Title                              Hearing Date: 2/17/99

Reps. Carlson and Clements                 Staff: Steve Lundin

Sponsor(s)                          State Government Committee

                                              Phone:  786-7127

BACKGROUND:

The Office of Minority and Women=s Business Enterprises develops overall goals for the participation by qualified minority and women-owned and controlled businesses in contracts let by each state agency and institution of higher education, certifies businesses as being minority and women-owned and controlled businesses, and adopts standard contract clauses for the inclusion of women and minority-owned businesses.

Each state agency and institution of higher education was required to comply with the annual goals established for the agency or institution and to adopt a plan to insure that minority and women-owned and controlled businesses are afforded the maximum practicable opportunity to directly and meaningfully participate in the public contracts let by the agency or institution for public works and the purchase of goods and services.

However, Initiative Measure No. 200 (I-200) was approved by voters in 1998.  Among other provisions, I-200 provides that the state shall not grant preferential treatment to any individual or group on the basis or race or sex in the operation of public contracting.  The Governor issued Governor=s Directive No. 98-01 in December of 1998.  Among other items, this directive provided that race and sex may not be used in the final selection of a bidder to a public contract and that adding points or preferences under the Minority and Women=s Business Enterprises program shall be discontinued.  The directive continued to provide that the goals set under the Minority and Women=s Business Enterprises program shall not be mandatory, that sanctions may not be imposed for failing to comply with the goals, and the goals thereby do not conflict with I-200.

SUMMARY:

A five-year program is established to certify businesses that are owned and controlled by disabled persons and to apply the provisions of the Minority and Women Business Enterprises Program to businesses so certified, but not including any requirement that the goals established for such businesses are mandatory or a requirement to waive performance bonds in projects not exceeding $25,000 in value.  This program commences on July 1, 1999, and ends on June 30, 2004.

No more than 80 businesses per year may be certified as being owned and controlled by disabled persons and the Office of Minority and Women=s Business Enterprises.  For purposes of this program, a Adisabled person@ is defined as a person with a physical or mental impairment that substantially limits a major life activity.  The impairment must be material and medically cognizable or diagnosable, and must be permanent, but does not include drug or alcohol addiction or any negative effects brought on by the use of drugs or alcohol.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE: This bill contains an emergency clause and takes effect July 1, 1999.