Historically Underutilized Businesses Local Government Procurement

The act requires the department of local affairs (department), no later than August 13, 2021, to establish a pilot program to help local governments identify perceptual and substantial barriers to entry for historically underutilized businesses in local government procurement.

The act requires local governments participating in the pilot program to consider a number of items, such as:

• Identifying implementation needs, such as labor and technology, for historically underutilized businesses preference programs for local government procurement (programs);
• Determining the appropriate size contracts that would benefit from a program; and
• Creating a sample program that all local governments may use and articulate the necessary steps to build a program.

The act specifies that pilot program participants may collaborate with the department and the general assembly on future legislation requiring local governments to establish programs.

In January 2022, the department is required to report on the progress of the pilot program as part of the department's presentation to its committee of reference at a hearing held pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act".

In January 2023, the department is required to include the findings of the pilot program as part of the department's presentation to its committee of reference at a hearing held pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act".

The act defines a historically underutilized business as a business that is at least 51% owned and controlled, in both the management and day-to-day business decisions, by one or more individuals who are:

• Members of a racial or ethnic minority group;
• Non-Hispanic Caucasian women;
• Persons with physical or mental disabilities;
• Members of the lesbian, gay, bisexual, and transgender community; or
• Veterans.
  (Note: This summary applies to this bill as enacted.)