KANSAS UNVEILS DETAILS ON NEW M/WBE PROGRAM
Denise Farris
11/02/09
On June 24, 2008, Kansas Governor Kathleen Sebelius introduced Kansas’ new Minority and Women Business Enterprise Order through execution of Executive Order 08-08. Designed to expand the State’s existing Disadvantaged Business Enterprise Program, restricted to Department of Transportation work only, the new program aims to increase Kansas record-keeping of its growing minority and women-owned businesses while providing expended certification and procurement opportunities for those same businesses.
Recently Rhonda Harris of the Kansas Department of Commerce unveiled preliminary details concerning the new program. Those details are summarized below:
Certification Criteria:
The State’s current Disadvantaged Business Enterprise certification, subject to 49 CFR, Part 26 (U.S. D.O.T. Regulations), contains a Personal Net Worth Limitation of $750,000, excluding home and business. These standards will still apply for DOT / DBE certification. However, the new Minority / Women Business Certification will require proof of 51% ownership and control of the business by a minority or woman; business net worth size standards in accordance with SBA definition of “Small Business”, but WILL NOT be subject to the DBE net worth limitation.
Certification Process:
The process currently in use for DBE certification will be expanded to include the new M/WBE certification. Applicants will be required to submit a form approved by the Kansas Department of Commerce. The Department of Commerce will review and where applicable, approve the MBE/WBE certification as well as DBE certification when applicable.
Application.
The current application in use for DBE certification will be used and modified as required. Applications can be obtained on line at www.kansascommerce.com. Click on 'Business Development', click on 'Minority and Women Business', then click on 'view documents and forms' and download the application. A request for the application can also be emailed to rharris@kansascommerce.com or phone (785) 296-3425. The application will need to be submitted along with required back-up documentation. Office staff will review documents submitted and schedule on site visits for Kansas companies when appropriate. Staff will make a determination of eligibility.
Certification Period.
If certified, the certification will be valid for three years with annual updates required. If the certification is denied, the applicant will be notified and, if they wish to appeal, a process will be available.
Reciprocity.
A streamlined process for those certified with national organizations such as WBENC, NWBOC and the Mid-America Minority Business Development Council is under consideration. The reciprocity piece will probably not be in place when applications are initially accepted given the time it will take to work out the reciprocity details.
Directory.
Once verified, certified M/WBE businesses will be listed in a directory of certified businesses available on line.
Implementation:
The kick off for the MBE/WBE program will be announced again during the Minority/Enterprise Development (MED) Week Awards Luncheon in Topeka on October 16, 2008. Applications for MBE/WBE certifications will be accepted after that date. Watch for further news on the upcoming kick-off!
© September 24, 2009 (Reprint of September 28, 2008 Article). Denise E. Farris, Esq. All Rights Reserved. This article may not be reprinted without the express permission of the author. Denise is an AV rated attorney and managing member of the Farris Law Firm LLC, which practices business, commercial construction and government contracting, and equine law. She is nationally known for her special emphasis in government contracting and minority / women business programs. Denise can be reached at: (816) 842-0800; Email: dfarris@farrislawfirm.com, or web page www.farrislawfirm.com.
Reprinted with the Permission of Kansas City Small Business Monthly.