WSR 25-14-093
PERMANENT RULES
OFFICE OF MINORITY AND
WOMEN'S BUSINESS ENTERPRISES
[Filed July 1, 2025, 8:04 a.m., effective August 1, 2025]
Effective Date of Rule: Thirty-one days after filing.
Purpose: The office of minority and women's business enterprises (OMWBE) proposes to amend WAC 326-20-048 to include LGBTQ individuals as socially disadvantaged. This will provide rule clarity and ensure qualifications; procedures and guidelines for determining eligibility for the LGBTQ certification are aligned with OMWBE's portfolio of programs, ensuring balance and equity.
OMWBE proposes to adopt WAC 326-20-088 to implement the LGBTQ certification program in accordance with SB [ESSB] 5950.
Citation of Rules Affected by this Order: New WAC 326-20-088; and amending WAC 326-20-048.
Statutory Authority for Adoption: RCW
39.19.030.
Adopted under notice filed as WSR 25-09-102 on April 18, 2025.
Date Adopted: July 1, 2025.
Julie Bracken
Public Records Officer
Records Manager
Rules Coordinator
RDS-6326.2
AMENDATORY SECTION(Amending WSR 25-01-023, filed 12/6/24, effective 1/6/25)
WAC 326-20-048Presumption of disadvantage.
(1) Social disadvantage. The agency rebuttably presumes the following persons are socially disadvantaged individuals for the purposes of certification, consistent with 49 C.F.R. Section 26.67: Women; persons who are Black/African American, Hispanic/Latino, Native American, Asian, Pacific Islander, Native Hawaiian, and Alaska Native; and other minorities found disadvantaged by the small business association. Additionally, the agency rebuttably presumes that LGBTQ individuals are socially disadvantaged individuals for the purposes of certification.
(2) Each presumptively socially disadvantaged applicant must submit a signed declaration of eligibility (DOE), as provided by the office, that they are socially and economically disadvantaged.
(3)(a) Economic disadvantage. Each owner of a firm applying for state certification must sign a declaration that they have a personal net worth that does not exceed $2,047,000, per WAC 326-20-049. The office will adjust the personal net worth cap routinely.
(b) Rebuttal of economic disadvantage. If the statement of personal net worth that an individual submits under this section shows that the individual's personal net worth exceeds $2,047,000 or a reasonable person would not consider the person economically disadvantaged, the individual's economic disadvantage is rebutted, and the individual is not deemed to be economically disadvantaged. Such an individual is no longer eligible to participate in the program and cannot regain eligibility by making an individual showing of disadvantage. The office is not required to have a proceeding under this section to rebut the presumption of economic disadvantage in this case.
(4) Individual determinations of social and economic disadvantage. Firms owned and controlled by individuals who are not presumed to be socially and economically disadvantaged may apply for Socially and Economically Disadvantaged Business Enterprise (SEDBE) certification. The office makes a case-by-case determination of whether each individual whose ownership and control are relied upon for SEDBE certification is socially and economically disadvantaged. In such a proceeding, the applicant firm has the burden of demonstrating to the office, by a preponderance of the evidence, that the individuals who own and control it are socially and economically disadvantaged. An individual whose personal net worth exceeds $2,047,000 shall not be deemed to be economically disadvantaged. In making these determinations, the office uses WAC 326-20-046 and 326-20-047. The office requires that applicants provide sufficient information to permit determinations under WAC 326-20-046 and 326-20-047.
NEW SECTION
WAC 326-20-088LGBTQBE certification program.
(1) To foster small business participation, and to promote equity in state contracting while further recognizing the protected class status of LGBTQ, an LGBTQBE certification program is created.
(2) LGBTQBE certification program will require all other criteria included in state certification programs, including social disadvantage, economic disadvantage, ownership, control, and business size.
(3) Whenever issues arise regarding eligibility based on personal net worth, business size, ownership, and control which cannot be resolved by reference to these regulations, 49 C.F.R. Part 26 shall provide guidance to resolve such issues.