We are now eight weeks into 2023 legislative sessions, and we’ve seen tremendous policy action on behalf of our small minority contractors and small businesses. Here is our update!
The Washington state legislature is currently considering several pieces of legislation that could have a profound impact on small minority businesses in this state. These bills are being discussed in both chambers, and if passed could provide much needed financial assistance for minority business owners. In this article we’ll take a look at the proposed legislation and what it could mean for small businesses owned by people of color.
The bills up for consideration:HB 1050: requires public work contracts awarded by a municipality that costs more than $1M to include specifications that no less than 15% of the labor hours be performed by apprentices. The bill would also require subcontractors of public work contracts with initial subcontract price of $350,000 or more to include specifications with no less than 15% of the labor hours be performed by apprentices. This is problematic for our small businesses. Apprenticeship programs can be great tool for workplace development
This bill restricts open shop contractors from bidding on public works. The bill mandates more apprenticeship utilization before increasing access to apprenticeship programs.
To use apprentices, contractor or subcontractor has to be a training agent with an approved apprenticeship program.
The process to approve programs is broken and inefficient without more approved programs this requirement will suppress the labor market and drive up the cost of construction. We are working with Rep. Ricelli to amend the bill and he will in attendance at the Membership Meeting February 25th, 2023
SB5133: is a piece of legislation threatening to close the door on many small businesses and contractors trying to work in public works. It would deny any non-union contractor from bidding, while blocking access for those unable to participate in an apprenticeship program, which are few and far between. This is due to the risk of system abuse by competitors meaning that on the job training opportunities could be drastically reduced or eliminated entirely, placing countless aspiring entrepreneurs at an even greater disadvantage than before. This bill will not promote apprenticeship opportunities, but rather suppress the labor market and will increase construction costs. This hurts Washington state, the trades, and the employees. We are working with Sen. Keiser to amend the bill.
We are pleased to report that after extensive discussions and no common ground being found between the parties involved SB 5418, SB5458 and SB5658 were effectively blocked, this marks a significant victory for Tabor 100 and those in favor of strengthening minority contracting opportunities.
Our members are concerned about the potential implication of SB5186, requiring anti-discrimination clauses in public contracting. Following a productive meeting with Majority Leader Andy Billig to understand the reasoning behind the bill and its origin from an instance of discrimination in Spokane, we showed our support by signing it off on support. The WBBA and Tabor 100 have proposed additional language that would involve OMWBE collaborating alongside with the Human Rights Commission for small minority businesses; To guarantee voices representing their interests will be heard if any legitimate interventions become necessary.
After substantial negotiations and stakeholder engagements, the WBBA and Tabor 100 are proudof our strong offer for SB5684. Even with a certain reservations in mind, we still produced amendments that allowed us to stay on board. Additionally, HB1391 underwent language alterations pertaining to PLA requirements as well as prevailing wage specifications- underscoring our dedication towards creating meaningful collaborations between all parties involved. The results of this session truly reflect the strength of relationships built within Olympia; However, it is central that members remain engaged if further progress is expected moving forward.
Other business: Funding for minority small businesses
The BIPOC small business policy proposal calls for a package of investments totaling $125M over the next three years. We envision a continuum of services to support BIPOC small businesses, from those needing technical assistance to business ready to purchase commercial real estate. The proposal has been very well received by legislature and in particular by Sen. Hasegawa, Sen. Frame and Rep. Ryu. ERRA has engaged a lobbyist, (Paula Sardinas) who supports the WA Build Back Black Alliance. The process is transparent and open- you may contact me at [email protected] if you have questions
