Policy makers in Washington are pushing ahead with legislation designed to formally create a framework for Socially Disadvantaged Businesses within an existing certification system in Washington State, and are considering redefining eligibility criteria for small businesses to access public contracting opportunities.

House Bill 2684 proposes to clarify and update definitions of "socially disadvantaged individual" under the state's certification systems for business access and participation in public procurement.

The bill proposes that the state would assume that certain populations (e.g., women, minority populations, and other historically underutilized populations) meet the definition of a social disadvantage and that the state would create a process to clarify that additional populations can be considered through rule-making. The legislation further enhances and expands upon existing state law for Minority & Women-Owned Business Enterprise (MWBEs).

This proposal is part of broader policy reform efforts by states (including recent changes to tax and other policies) to improve small businesses' ability to start, grow, and compete as a part of major changes in government contracting initiatives through legislative action by state government administrations across the country, such as Washington state.

The proposal may affect the eligibility for future state-funded project participation opportunities for contractors. Understanding the terms of contracts and meeting compliance is becoming more critical as we see changes in procurement procedures.

The move to increase opportunities for contractors follows the ongoing concern regarding the lack of use of businesses owned by minority and women in local projects, including the results from places like Vancouver, Washington.