HOUSE BILL ANALYSIS

                    ESJM 8015

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

Sponsors:  Senators Honeyford and Rasmussen

Hearing:  February 23, 2000

                 Brief Summary of Bill

CRequests the Office of Minority and Women=s Business Enterprises to certify socially and economically disadvantaged business enterprises, including businesses owned and controlled by disabled persons who can demonstrate such a disadvantage.

BACKGROUND:

The Office of Minority and Women=s Business Enterprises (OMWBE) certifies minority and women-owned businesses and sets goals for participation by these enterprises in state agency and educational institution contracting.   The participation goals are established for expenditures for public works, architectural and engineering services, professional services, purchased goods, and purchased services.  In 1998 these categories represented about 15 percent of all state expenditures.   The goals are not mandatory and failure to meet them is not subject to sanction.

To be certified under the state program, 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 be a small independent business that performs a commercially useful function.

The OMWBE also certifies businesses participating in the Federal Highway Administration's disadvantaged business enterprises program.  Businesses certified under this program are those owned and controlled by persons demonstrating social and economic disadvantage.

SUMMARY OF BILL: 

The Legislature recognizes the state's strong interest in having equal opportunities for disabled business persons to compete and support themselves, and to be awarded public contracts.  The Legislature requests the Office of Minority and Women's Business Enterprises to certify, as socially  and economically disadvantaged business enterprises, businesses owned and controlled by persons demonstrating social and economic disadvantage, including disabled persons who can demonstrate such a disadvantage.

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

FISCAL NOTE: Not requested.