The Office of Minority and Women's Business Enterprises (OMWBE) was created to provide minority- and women-owned and controlled businesses with the maximum practicable opportunity for increased participation in public works contracts and public contracts for goods and services. The OMWBE is the sole authority in Washington for certifying minority- and women-owned business enterprises.
A business must apply for certification with the OMWBE and must meet qualification criteria. The primary owner must have 51 percent ownership of the business and be both socially and economically disadvantaged. There are also restrictions on business size and gross receipts.
Certified business enterprises are listed in the OMWBE database. Cities, counties, state agencies, transportation, and educational institutions use the database to source small and diverse firms for potential contracting opportunities. A certified business is also eligible for a program which decreases interest rates on small business loans.
The OMWBE rules define a "socially disadvantaged individual" as consistent with federal law:
Women, Black/African American, Hispanic/Latino, Native American, Asian, Pacific Islander, Native Hawaiian, Middle Eastern/North African, LGBTQ, and other individuals identified by the OMWBE in rule are presumed to be socially disadvantaged for the purpose of state certification. The presumption is rebuttable.
(In support) Middle Eastern- and Arab-owned businesses face similar barriers as other minorities but are refused minority status and are not accounted for under current rules. Individuals do not choose to be a minority, but disadvantages in daily life are constant reminders of minority status. Including the minorities in the Office of Minority and Women's Business Enterprises (OMWBE) gives disadvantaged businesses an opportunity to thrive in a highly competitive environment by allowing them to participate in community public contract opportunities. The minority designation has real consequences, when a business is not considered a minority but white, the business is bypassed and not listed by the OMWBE as a minority business. This simple fix will close the gap and make the playing field level for all minorities, including Middle Eastern and North African (MENA) businesses.
Social disadvantage is only one factor in the OMWBE's certification process. The OMWBE assists small business owners in accessing capital and small business contracting. Middle Eastern men have been hurt by the exclusion from the minority system. Business owners are told they are not qualified for certification because they are classified as white, even while they experience cultural and social barriers. As a result, they miss contract opportunities, and are excluded from programs, including access to lower interest loans. These are tools that affect business survival, and it creates confusion for businesses and contractors with no meaningful recourse. Including the minorities does not expand the OMWBE's mission or create a new entitlement. Instead, it creates fairness and access to opportunity.
(Opposed) People should not be judged based on what they do not have control over, whether it is viewed as disadvantaged or privileged. Special treatment is not always needed, even when a handicap is a disadvantage. The bill grants the OMWBE unlimited authority to grant a group minority status by administrative rule, without standards or oversight. Currently, biracial children suffer in schools and are treated differently by their peers and teachers because of laws. On an ethical and moral basis, the implications of the bill will cause community resentment. The long-term effects of divisive policy create a bad future environment and codifies stereotypes into state contracting law.
Article I, section 12 of the Constitution prohibits special immunities to cohorts. The Supreme Court decision involving Harvard concluded that racial classifications in government programs violate equal protection unless the program meets strict scrutiny. Using proof of identity as a proxy for disadvantage fails constitutional scrutiny. There is a perverse incentive to ask invasive questions to establish minority status.
Discrimination is wrong. The state has promoted discrimination based on sex and race. Penalizing an applicant for a state job is pure discrimination, when someone is penalized 5-10 percent for their sex or race. Applicants for a contract start at a disadvantage. In Washington, standing up to discriminatory bills is like standing up to a tank in Tiananmen Square. The tank does not follow rules, the road, or the institution, and will run over anything in its path. State-sponsored discrimination is wrong. Equal protection should treat people as individuals, not demographic groups.
(In support) Imraan Siddiqi, Council on American-Islamic Relations Washington (CAIR-WA); Eddie Shahwan, EAS Engineering, LLC; Mhd Arar, Arar Studio; and Sharon Harvey-Hughes, OMWBE.
Ahmad Al-Hawasli, UMMAH AEROSPACE LLC.