Act 1222
The State of Arkansas supports equal opportunity as well as economic development in every sector, ensuring that 10% of the total amount expended in state-funded and state-directed public construction programs and in the purchase of goods and services for the state each fiscal year is paid to minority businesses.
Subchapter 3
Minority Business Economic Development Act
15-4-307. Minority Business Advisory Council.
15-4-310. Minority business officer.
15-4-311. Annual minority purchasing plan.
15-4-312. State agencies to submit reports.
15-4-313. Accelerated payments.
15-4-314. Minority business enterprises certification process.
15-4-315 - 15-4-320. [Repealed.]
A.C.R.C. Notes. References to "this subchapter" in §§ 15-4-301 - 15-4-305 may not apply to §§ 15-4-311 - 15-4-319 which were enacted subsequently.
Cross References. Department of Economic Development, § 25-11-101.
Effective Dates. Acts 1979, No. 1060, § 13: July 1, 1979. Emergency clause provided: "It is hereby found and determined by the Seventy-Second General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two year period; that the effectiveness of this Act on July 1, 1979 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1979 could work irreparable harm upon the proper administration and providing of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1979."
Acts 1983, No. 644, § 3: July 1, 1983.
This subchapter shall be known and may be cited as the "Minority Business Economic Development Act."
History. Acts 1977, No. 544, § 2; A.S.A. 1947, § 5-916.3; Acts 1997, No. 540, § 69; 2009, No. 1222, § 1.
Amendments. The 2009 amendment rewrote the section.
(a) The General Assembly finds that it is the policy of the State of Arkansas to support equal opportunity as well as economic development in every sector.
(b) The General Assembly recognizes that it is the purpose of this subchapter to support to the fullest all possible participation of firms owned and controlled by minority persons in state-funded and state-directed public construction programs and in the purchase of goods and services for the state.
(c) All state agencies shall attempt to ensure that 10% of the total amount expended in state-funded and state-directed public construction programs and in the purchase of goods and services for the state each fiscal year is paid to minority businesses.
History. Acts 1977, No. 544, § 1; 1979, No. 1060, § 9; 1983, No. 644, § 1; A.S.A. 1947, §§ 5-916.2, 5-916.2a, 5-916.2a note; Acts 1997, No. 540, §§ 24, 70; 2009, No. 1222, § 2.
15-4-303. Definitions.
As used in this subchapter:
(1)
(A) "Exempt" means goods and services classified as exempt for the purpose of administering this subchapter.
(B) The classification shall be determined by the Office of State Procurement of the Department of Finance and Administration and the Division of Minority Business Enterprise of the Arkansas Economic Development Commission and submitted to the Arkansas Economic Development Council for its review and consideration for the purposes of this subchapter.
(2) "Minority" means a lawful permanent resident of this state who is:
(A) African American
(B) Hispanic American
(C) American Indian
(D) Asian American
(E) Pacific Islander American
(F) A service-disabled veteran as designated by the United States Department of Veteran Affairs
(3) "Minority business enterprise" means a business that is at least 51% owned by one or more minority persons as defined in this section
(4) "Minority business officer" means the individual within each state agency with the responsibility for carrying out the intended purposes of this subchapter
(5) "Nonexempt" means goods and services classified as nonexempt for the purpose of administering this subchapter
(A) The classification shall be determined by the office and the division and submitted to the council for its review and consideration for the purposes of this subchapter
(6) "Procurement" means buying, purchasing, renting, leasing or otherwise acquiring any goods or services
(7) "State agency" means a department, an office, a board, a commission, or an institution of this state, including a state-supported institution of higher education
(8) "State contract" means a state agreement, regardless of what it may be called, for the purchase of commodities and services and for the disposal of surplus commodities and services not otherwise exempt
History: Acts 1977, No. 544, § 5; A.S.A. 1947, § 5-916.6; Acts 2003, No. 1814, § 2; 2009, No. 1222, § 3; 2011, No. 893, § 1
15-4-304. Creation.
The Division of Minority Business Enterprise of the Arkansas Economic Development Commission:
(1) Is established and confirmed within the commission under the jurisdiction of the Arkansas Economic Development Council
(2) Shall be operated as a division within the commission
(3) Shall perform the functions and duties as provided in this subchapter
History. Acts 1977, No. 544, § 3; A.S.A. 1947, § 5-916.4; Acts 2009, No. 1222, § 4.
15-4-305. Administrator.
The head of the Division of Minority Business Enterprise of the Arkansas Economic Development Commission is the Administrator of the Division of Minority Business Enterprise of the Arkansas Economic Development Commission and shall be appointed by the Governor.
History. Acts 1977, No. 544, § 4; A.S.A. 1947, § 5-916.5; Acts 2009, No. 1222, § 5
15-4-306. Duties.
The Division of Minority Business Enterprise of the Arkansas Economic Development Commission shall:
(1) Provide technical, managerial and counseling services and assistance to minority business enterprises
(2) With the participation of other state departments and agencies as appropriate:
(A) Develop comprehensive plans and specific program goals for a minority business enterprise program
(B) Establish regular performance monitoring and reporting systems to assure that goals are being achieved
(C) Evaluate the impact of federal and state support in achieving the objectives established by the commission
(3) Implement state policy in support of minority business enterprise development and coordinate the plans, programs and operations of state government that affect or may contribute to the establishment, preservation and strengthening of minority business enterprises
(4) Coordinate, make application for and administer federal funding grants from the Minority Business Development Agency of the United States Department of Commerce and other federal agencies where applicable
(5) Promote the mobilization of activities and resources of state agencies and local governments, business and trade associations, universities, foundations, professional organizations and volunteer and other groups toward the growth of minority business enterprises, and facilitate the coordination of the efforts of these groups with those of other state departments and agencies
(6) Establish a center for the development, collection and dissemination of information that will be helpful to persons and organizations throughout the state in undertaking or promoting the establishment and successful operation of minority business enterprises
(7) Conduct coordinated reviews of all proposed state training and technical assistance activities in direct support of the minority business enterprise program to ensure consistency with program goals and to preclude duplication of effort of other state agencies with overlapping jurisdiction
(8) Recommend appropriate legislative or executive actions to enhance minority business opportunities in this state
(9) Assist minority businesses in obtaining governmental or commercial financing for business expansion, establishment of new businesses or industrial development projects
(10) Provide services to promote the organization of local development corporations for rural development and assist minority business persons in agrarian endeavors
(11) Assist minority businesses to promote reciprocal foreign trade and investment
(12) Assist minority business persons in business contract procurement from governmental and private commercial sources
(13) Provide a program effort to ensure participation of veterans in Arkansas minority business enterprise activities
History. Acts 2009, No. 1222, § 6.
15-4-307. Minority Business Advisory Council.
The Division of Minority Business Enterprise of the Arkansas Economic Development Commission shall be represented by a statewide Minority Business Advisory Council and shall report to that council.
(1) The council shall consist of seven members
(2) The council shall:
(a) Monitor progress, make recommendations, and develop strategic plans for performance improvement; and
(b) Report to the Governor, the Speaker of the House of Representatives and the President Pro Tempore of the Senate
(3) The Governor shall appoint three members of the council with the advice and consent of the Senate
(4) The President Pro Tempore of the Senate shall appoint two members of the council
(5) The Speaker of the House of Representatives shall appoint two members of the council
(4) Appointments shall reflect and be representative of the minority business community, resource organizations, entrepreneurs, corporations and other minority business advocates
(6) Except as otherwise provided by law, members of the council shall serve without compensation
(7) The term of office of the council shall be at the pleasure of the appointing officer
(8) There is established a formal relationship between the council and the Administrator of the Division of Minority Business Enterprise of the Arkansas Economic Development Commission
(9) The administrator and the small disadvantaged business officer shall be the liaison to the council and shall be responsible for submitting to the council any reports and documents under the provisions of this section
(10) Their duties in relation to this section shall be considered official duty in the conduct of state business
(11) The council's duties and responsibilities shall be to:
(a) Review reports and interpret each agency's achievement of its goals
(b) Advise the Governor when an agency has not reached its goals
(c) Make annual reports to the Governor
(d) Recommend to the state agency, the division and the Office of State Procurement of the Department of Finance and Administration corrective actions to strengthen minority business opportunities in the state
(e) Conduct public hearings when necessary to obtain public input and support for the purpose of carrying out the provisions of this subchapter
(13) Each state agency, through its minority business officer, shall submit to the division, the council, and the office the agency's plan to reach its goals for the coming fiscal year and shall:
(a) Be submitted to the division by June 30 of each year
(b) Contain the name of the state agency submitting the plan
(c) Contain a policy statement signed by the agency head expressing a commitment to use minority businesses in all aspects of contracting to the maximum extent feasible
(d) Identify the name of the minority business officer in the agency who is responsible for developing and administering the compliance plan
(e) Establish a timetable for the agency to reach its goals under the plan and the manner in which the agency intends to reach its goals
(f) Contain any other procedures the division deems necessary to comply with the goals and the compliance plan
History. Acts 2009, No. 1222, § 6.
15-4-308. Administration.
(1) The Division of Minority Business Enterprise of the Arkansas Economic Development Commission and the Office of State Procurement of the Department of Finance and Administration shall serve as the principal coordinators of the initiative to ensure the successful implementation of this subchapter
(2) The division and the office shall provide assistance to minority businesses seeking contract opportunities with various state agencies
(3) The division and the office shall maintain a directory of all minority business officers for each state agency
(4) The division and the office shall provide management and technical assistance to any state agency that experiences difficulty in complying with the provisions of this subchapter
(5) The division and the office shall maintain a current directory of minority businesses and shall make the directory available to each state agency and minority business officer
(6) The division shall serve as a central clearinghouse for information on state contracts, including a record of all pending state contracts upon which minority businesses may participate
History. Acts 2009, No. 1222, § 6.
15-4-309. Exempt contracts.
Upon the approval of the Minority Business Advisory Council, the Division of Minority Business Enterprise of the Arkansas Economic Development Commission and the Office of State Procurement of the Department of Finance and Administration shall determine the classifications of contracts to be exempted from the goals established by this subchapter whenever there exists an insufficient number of minority businesses to ensure adequate competition.
History. Acts 2009, No. 1222, § 6.
15-4-310. Minority business officer.
(1) Each state agency shall designate an individual as its minority business officer
(2) The minority business officer shall be the person within the agency with whom the Division of Minority Business Enterprise of the Arkansas Economic Development Commission and the Minority Business Advisory Council shall work in their efforts to accomplish the goals of this subchapter
(3) Upon the appointment of the minority business officer in each state agency, the agency shall notify the division and the Office of State Procurement of the Department of Finance and Administration
History. Acts 2009, No. 1222, § 6.
15-4-311. Annual minority purchasing plan.
(a) Prior to June 30 each year, each state agency shall submit to the Division of Minority Business Enterprise of the Arkansas Economic Development Commission and the Office of State Procurement of the Department of Finance and Administration a minority purchasing plan that shall outline the agency's plan to reach its goals for the coming fiscal year
(b) The minority purchasing plan shall include without limitation:
(1) The name of the state agency;
(2) A policy statement signed by the agency head expressing a commitment to use minority business in all aspects of contracting to the maximum extent feasible;
(3) The name of the minority business officer in the agency who is responsible for developing and administering the compliance plan;
(4) The time table for the agency to reach its goals under the plan and the manner in which the agency intends to reach its goals; and
(5) Any other procedures the agency deems necessary to comply with the goals and the compliance plan.
History. Acts 1991, No. 698, § 1; 2007, No. 692, § 1; 2009, No. 1222, § 7.
15-4-312. State agencies to submit reports.
The Minority Business Advisory Council shall require each state agency to produce within 15 days of the close of each three-month period a report summing up total procurement for all contracts, except exempt contracts of the agency, and the dollar value and the percentage of the contracts of the agency awarded to minority businesses.
History. Acts 1991, No. 698, § 2; 2009, No. 1222, § 8.
15-4-313. Accelerated payments.
To ensure that minority businesses are not financially hindered due to delays in payment by state agencies entering into contracts with minority businesses under this subchapter, state agencies shall accelerate payment to minority vendors to preclude accounts receivable problems of minority businesses caused by the State of Arkansas.
History. Acts 1991, No. 698, § 3; 1995, No. 1296, § 48; 1997, No. 540, § 25; 2003, No. 487, § 12; 2007, No. 692, § 2; 2009, No. 481, § 1; 2009, No. 1222, § 9.
15-4-314. Minority business enterprises certification process.
(a) The Division of Minority Business Enterprise of the Arkansas Economic Development Commission shall promulgate rules to create a certification process for minority business enterprises.
(b) The certification process shall include without limitation:
(1) Criteria for certification that shall include without limitation:
(A) A determination that the business is structured as a minority business enterprise;
(B) Verification of minority ownership and control of the business; and
(C) Annual updates indicating continuing minority ownership and control;
(2) A formal application process;
(3) An education program to assist minority business enterprises in achieving certification; and
(4) An outreach to ensure the broadest possible participation of minority business enterprises and persons proposing new minority business enterprises.
(c) The Office of State Procurement of the Department of Finance and Administration shall cooperate with the division to the fullest extent possible in sharing information concerning certification and registration of minority business enterprises carrying out the purposes of this section.
History. Acts 1991, No. 698, § 6; 2009, No. 1222, § 10.
15-4-315 - 15-4-320. [Repealed.]
Annotations
Publisher's Notes. These sections, concerning administration, exempt contracts, minority business officer, state agencies to submit reports, accelerated payments, and minority business enterprises certification process, were repealed by Acts 2009, No. 1222, § 11. They were derived from the following sources:
15-4-315. Acts 1991, No. 698, § 7; 1995, No. 1296, § 48.
15-4-316. Acts 1991, No. 698, § 9; 1995, No. 1296, § 48.
15-4-317. Acts 1991, No. 698, § 5.
15-4-318. Acts 1991, No. 698, § 4.
15-4-319. Acts 1991, No. 698, § 8.
15-4-320. Acts 2003, No. 1456, § 1.