Last Wednesday, February 16, Missouri State Attorney General Jay Nixon appeared before U.S. District Judge Gary A. Fenner in Kansas City requesting clarification of a preliminary injunction by the judge which prohibits the state from writing contracts that stipulate the inclusion of minority- and women-owned businesses.
“Basically the judge declined to verify. He just said that his ruling is self-explanatory,” said Jim Gardner, press secretary for the attorney general.
“The judge indicated that he believed that 98-21 is unconstitutional.”
Initiated in 1998, Executive Order 98-21 established minimum minority- and women-owned (MBE/WBE) participation levels for government contracts. The order sets minority participation at 10 percent and female participation at 5 percent. To be recognized as an MBE/WBE, a business must be at least 51 percent owned and controlled by minorities or women.
“The attorney general is already on record saying that he will vigorously defend the policies that are in place in Missouri,” Gardner said.
Judge Fenner originally put the injunction in place January 24. The issue is set for adjudication on May 23. Although the injunction has only been in effect for a month, business owners are already beginning to feel its impact.
Annetta Vickers, president and CEO of T.A.B. Company, said that she has already had to confront the issue with one contractor.
“I know that the state of Missouri went back to the bidders and informed them that they could resubmit their bids without minority- or women-owned participation,” Vickers said.
“The company that I was working with contacted me and asked if I was aware of what was going on with the state and said they would keep me on their bid.”
Vickers said that during a visit to her office last week, Gov. Matt Blunt voiced his support for Executive Order 98-21. Paul Sloca, a spokesperson for the governor, told the American that he plans to publicly reserve his comments until the litigation has played out.
“The governor has stressed the importance of economic development and the growth of small business in Missouri, and obviously minority firms and businesses are definitely a part of those plans,” Sloca said.
Brenda Newberry, president and CEO of the Newberry Group, said that although the program has had its problems, it has yielded benefits.
“Without the goals in place, we will have no opportunity,” Newberry said.
“We had very few with it, and many times prime vendors still found a way to get around them any way. At this point, they would have absolutely no reason to use small businesses n women-owned, minority-owned or otherwise.”
