Rep. Maria Chappelle-Nadal, District 72
573-751-4265 Maria.ChappelleNadal@house.mo.gov
February 17, 2005

A federal court injunction was put into place in Jan 2005, affecting contracts awarded by the State of Missouri. The injunction freezes the Missouri Office of Administration from awarding new contracts to those involved in Minority/Women Business Enterprises (MBE/WBE). Without this program, most MBE/WBEs will no longer be included in goals, as set by the program, for participation. This will effectively limit these business enterprises out of prime contracts. Some sub-contractors will definitely be harmed by the loss of this program.

The implementation and oversight of the MBE/WBE program is flawed. There is little to no individual consideration involved. There are very loose rules concerning the minority and women participation rates and seems at times to be completely arbitrary, leaving the program open to attacks.

What this injunction means for us is that from now until May, no effort will or can be made to influence state contracts to go to the minority or women owned businesses that make up such a large part of our community.

Some of you may be familiar with the reverse discrimination case against the University of Michigan to do away with their affirmative action program. The Supreme Court ruled that race can be one of many factors considered by colleges when selecting their students because it furthers "a compelling interest in obtaining the educational benefits that flow from a diverse student body." The Supreme Court, however, ruled (6-3) that the more formulaic approach of the University of Michigan's undergraduate admissions program, which uses a point system that rate students and awards additional points to minorities, had to be modified. According to the Supreme Court, "individualized consideration" of applicants is necessary to the constitutionality of an affirmative action program.

The University of Michigan case is very similar to the MBE/WBE case that we?re currently facing. Unfortunately, the way the MBE/WBE program is set up, it could easily be interpreted as unconstitutional. While preparing for the case is important, it is vital that we work towards a complete overhaul of not only the MBE/WBE program, but the Office of Administration, as well. If not dealt with, this case could possibly open up the opportunity to do away with the program completely.

The Missouri Legislative Black Caucus and I are working with numerous organizations to make those involved with this case understand the importance of this program to the minority and women business entities. We are compiling information in an effort to support the argument that there is still a profound need for this program.

If you would like more information on the injunction, or would like to be involved in the effort to save the program, please call me at 573-751-4265, or send an e-mail to Maria.ChappelleNadal@house.mo.gov <mailto:Maria.ChappelleNadal@house.mo.gov>. The Missouri Legislative Black Caucus is also available and can be reached at 573-751-0169. If you have ideas or your organization has taken action of any kind regarding this issue, it is very important that you contact us immediately. Thank you for you time, and we look forward to hearing from you soon.