HOUSE BILL ANALYSIS

                    HJM 4017

Brief Description:  Requesting businesses owned by disabled persons be a subcategory of minority business enterprises.

Sponsors:  Representatives Clements and Conway

Hearing:  January 26, 2000

                 Brief Summary of Bill

$The Office of Minority and Women=s Business Enterprises is asked to include businesses owned by disabled persons within the category of minority business enterprises.

BACKGROUND:

The Office of Minority and Women=s Business Enterprises (OMWBE) was created in 1987 to increase minority and women=s business participation in state procurement and public works.  The OMWBE develops and implements programs for increasing this participation.  

The OMWBE also sets goals for participation by minority and women-owned enterprises in the contracting of each state agency and educational institutions.   Goals must be set for expenditures toward public works, architectural/engineering services, professional services, purchased goods, and purchased services.  These categories represent about 15 percent of all state expenditures.

The goals apply to minority and women-owned businesses certified by the OMWBE.  The OMWBE determines the requirements and classes for certification.  To be certified, a woman or minority citizen must own at least 51 percent of the firm and control the business= managerial and operation activities.  The business must also be a small independent business that performs a commercially useful function.  The minorities covered are Black, Asian American, Hispanic, and American/Alaskan Indian. 

Prior to the passage of Initiative Measure 200 (I-200), agencies were required to meet the goal levels set by the OMWBE.  In 1998, the number of minority or women-owned enterprises doing business with the state increased 7.4 percent.  However, in that year only two agencies met their goals for contracting with women-owned businesses.  Only one agency met their goal for minority owned businesses.

The passage of I-200 means that the OMWBE goals are no longer mandatory and agencies are not required to give preferences to  minority or women-owned businesses.  The OMWBE will continue to set goals and assist agencies to meet them, however.  The OMWBE will also continue to identify qualified minority and women-owned businesses, conduct outreach programs, and insure that bidders solicit bids from minority and women-owned businesses and include them on lists for contracts not subject to open bidding statutes.

SUMMARY OF BILL:

The OMWBE is asked to include businesses owned by disabled persons within the category of minority business enterprises.

RULES AUTHORITY:  The bill does not contain provisions addressing the rule making powers of an agency.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of a session in which bill is passed.