A N EW K IND OF B USINESS Ohio’s Legislative and Outreach Efforts: From House Bill 584 to Now

O HIO ’ S M INORITY B USINESS L EGISLATIVE HISTORY From House Bill 584 to Now

H OUSE B ILL 584 Also known as the “Set Aside Law”, established the Minority Contractors and Business Assistance Program (MCBAP) in Prior to House Bill 584, many of the non-profit organizations that currently comprise the MCBAP Minority Development Financing Commission (MDFC) was created to provide loans and surety bonds Required 15% of state purchases for goods and services, 5% of all prime construction contracts and 7% of construction sub-contracts and materials are set-aside for minority business enterprise

E XECUTIVE ORDERS In 1991, Governor Voinovich signed Executive Order V which reorganized minority assistance programs offered by the state, creating the Equal Opportunity Center with the division of Equal Employment Opportunity. In 1997, Executive Order 97-14V established Historically Underutilized Business (HUB) program. The executive order provided incentive for the state to do business with Historically Underutilized Business groups, including minorities. Women owned businesses could also apply for inclusion in the HUB program. In 2008, Governor Ted Strickland signed Executive Order S which outlines practices and initiatives to increase participation in the MBE and EDGE programs. The executive order required State Agencies to appoint an EEO Officer. The EEO Officer is responsible for monitoring compliance with Ohio Law regarding MBE/EDGE programs and for reporting compliance or non- compliance for their respective agency to EOD.

H OUSE B ILL 318 Created the Construction Reform Demonstrations Project which will utilize alternative methods of construction delivery. State institutions that are part of the project must have a reasonable plan for meeting or exceeding the EDGE contracting goal for the project. Each state institution of higher education undertaking a Construction Reform Demonstration Project shall use best efforts to seek to maximize EDGE business enterprise contracting on the project. All business enterprises certified as minority business enterprises under the laws of Ohio, for the purposes on any of the Construction Reform Demonstration Projects, will be considered EDGE business enterprises.

C ONTROLLING B OARD Sec of the Revised Code establishes 7 members to the Controlling Board. Director of the Office of Budget and Management, or an employee, designated by the Director of the Office of Budget and Management. Chairs of the Senate and House Finance Committees Majority member appointed by both the Senate President and Speaker of the House Minority member appointed by both the Senate President and Speaker of the House Three key areas in which the Board operates are: Fiscal and Budgetary Purchasing Legislative Oversight

C ONTROLLING B OARD ( CONT.) The Controlling Board provides legislative oversight to the inclusion of MBE/EDGE vendors. The Controlling Board reviews and approves/disapproves request beyond $50,000 in which an agency seeks a waiver of competitive selection. This is the limit, in law, that an agency must seek a waiver of competitive selection for state contracts. Members of the Board through testimony of agency representatives, ensure that agencies, boards/commissions, college and universities are proactively and fairly seeking out the best companies, while holding each agency, board/commission, college and university to the goals and standards of inclusion for minority, women and small businesses set forth in the executive order issued by Governor Strickland. When the Board has found an agency not of been in good faith, or rather believe more time can be used to locate MBE/EDGE vendors, members have amended the contracts to lesser time than originally intended, and required it to be put out to bid again.

S TATE O UTREACH E FFORTS Bridging the Gap Between Minority, Women and Small business, to the State

M INORITY S TIMULUS T ASK F ORCE Formed in 2009 by State Representative Tracy Maxell Heard, the goal of this Task Force was to identify stimulus dollars available to the “minority” business community, and research efforts made to ensure fair and equitable bidding on stimulus projects. From this task force came the Central Ohio Stimulus Symposium which assisted businesses in marketing government entities to competitively bid on contracts, as well as provide them with information on how government contracts work.

R EVERSE T RADE F AIRS Beginning in 2008, the Reverse Trade Fair is an annual event sponsored by the Department of Administrative Services, Equal Opportunity Division in which minority and small business owners from around Ohio have the opportunity to network with nearly 100 state agencies, boards and commissions, and colleges and universities. During this event businesses are educated and briefed on state procurement opportunities. Also there is onsite MBE/EDGE certification assistance and resources for technical support to encourage business development and growth.

F UTURE O UTREACH E FFORTS In late 2009, the Ohio Department of Administrative Services’ Equal Opportunity Division created the position of Outreach Coordinator. The Outreach Coordinator will serve as the liaison between minority, women and small businesses and government agencies, boards/commissions, colleges and universities. As the face of EOD, the outreach coordinator will be responsible for developing relationships with the various ethnic chambers around the state, and working with all communities to continue to foster and develop relationships.

F UTURE O UTREACH E FFORTS ( CONT.) Certification Workshops Between April and August of 2010 the office of EOD will be hosting Certification Workshops in partnership with the local MCABPs and various chambers to help businesses with onsite certification. These workshops will also cover set aside contracts and local resources. MBE/EDGE Vendor Orientation New Vendor Orientation will be geared toward post certification business practices. New certified vendors will meet with state EEO officers, as well as do a workshop on state contracts and marketing to state entities.

M INORITY B USINESS AND R ESOURCE S YMPOSIUM T HURSDAY, M ARCH 25, 2010