HOUSE BILL REPORT

                 ESJM 8015

As Passed House:

                        March 3, 2000

Brief Description:  Requesting the office of minority and women's business enterprises to certify socially and economically disadvantaged businesses, including those owned by disabled persons.

Sponsors:  Senators Honeyford, Rasmussen, Fairley, Oke, Patterson, Heavey, Rossi, Hargrove, McAuliffe, Winsley, Bauer, Stevens and Kohl‑Welles.

Brief History:

  Committee Activity:

Commerce & Labor:  2/23/00.

Floor Activity:

Passed Senate:  2/11/00, 46-0.

Passed House:  3/3/00, 98-0.

            Brief Summary of Engrossed Bill

$Requests 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.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority/Minority Report:  None.  (Bill removed from committee on 3/1/00)

Staff:  Chris Cordes (786-7103).

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.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill will give the same boost to the business opportunities of disabled persons as minority and women businesses now have.  The disabled person would have to show that he or she was disadvantaged.  Resolution of this issue has been difficult, but there is now agreement by all parties.

Testimony Against:  None.

Testified:  Senator Jim Honeyford, prime sponsor; Skip Dreps, Paralyzed Veterans of America; and Juan Huey-Ray, Office of Women and Minority Business Enterprises.