MINORITY CONTRACTORS BUSINESS ASSISTANCE PROGRAM (MCBAP)

Amended Substitute House Bill 584, also known as the "Set-Aside Law', established the Minority Contractors and Business Assistance Program (MCBAP) in 1980. Specific definition of the MCBAP program is found under Section 122.92 - 122.94 of the Ohio Revised Code. This legislation originally designated specific geographic areas be awarded grants from the Ohio Department of Development to establish programs to assist in the development of minority business enterprises.

Each year, the grant agreement established a "service area" for designated MCBAP programs. The Minority Business Development Office determines which cities need Minority Contractors Business Assistance programs by utilizing U.S. Census Bureau data and zip codes to locate the highest concentration of minority businesses. It is also the responsibility of the Minority Business Development Office to determine the number of MCBAP centers and the amount of funding to be provided to each program based qualified applicants and negotiated deliverables.

Minority Business Enterprises (MBEs) are individuals, corporations or joint ventures of any kind, that are 51% owned and controlled by minorities who are of the following economically disadvantaged groups, Black, American Indian, Hispanic, and Oriental.

Because of their outstanding track record, the MCBAP's are in a unique position to exert greater leverage on behalf of minority business enterprises. Although initially their emphasis was on the construction industry, these organizations have broadened their base to include assistance to those businesses providing goods and services.

Because local community needs and resources vary, complete program coverage is unrealistic for each center; thus, MCBAP's may select program areas best suited for their client base. However, all program areas must be addressed in some manner either by the MCBAP or in conjunction with other local minority business assistance providers.

Prior to House Bill 584, many of the non-profit organizations that currently comprise the MCBAP centers were assisting minority businesses under a similar federally funded organization. The first group of state funded MCBAP centers induced some of these same non-profit organizations.

HISTORICAL HIGHLIGHTS

The Ohio Minority Business Development Division was created through the Ohio Legislature in December 1980 with the passage of House Bill 534.

Section 122.92 - 122.94 of the Revised Code (ORC) depict the legislative intent of House Bill 584 for Minority Business Development Division (MBDD).

House Bill 584 created the Minority Development Financing Commission (MDFC) to provide loans and surety bonds to ninety-three Ohio minority construction contractors.

House Bill 584 established requirements for the set-aside of state procurement contracts with the private sector for bidding only by "certified minority business enterprises" located in Ohio.

Required 15 percent of state purchases for goods and services, 5 percent of all prime construction contracts and 7 percent of construction sub-contracts and materials are set-aside for minority business enterprises.

1983 - MBDD and MDFC merged with the Small and Developing Business Division. Prior to 1983, the MBDD and the MDFC existed as a separate division with a Deputy Director for MBDD and an Executive Director for MDFC.

1991 - Governor Voinovich signed Executive Order 91-251V to reorganize minority assistance programs offered by the State.

This executive order created an Equal Opportunity Center within the Division of Equal Employment Opportunity. The reorganization included consolidating offices and revamping programs with the intent of eliminating redundancy.

1995 - MDFC was abolished and replaced by the Minority Development Financing Advisory Board.

1997 - Executive Order 97-14V established Historically Underutilized Business (HUE) program.

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.

November 1998 - a Federal Court decision by Judge Graham in the case of Associated Genera! Contractors v Sandra Drabik found House Bill 58- unconstitutional and denied a motion to stay the decision pending appeal.

November 1998 - Attorney General instructs all minority programs to cease until further notice.

April 1999 - Minority programs are reinstated without a set aside for construction projects.

January 2000 - Legislatively mandated geographic designations were removed.

Back to Top ^