Washington State Bill Analysis — HB 2684, Technology, Economic Development, & Veterans Committee

Summary

House of Representatives Office of Program Research bill analysis for HB 2684, prepared for the Technology, Economic Development, & Veterans Committee, with Representatives Farivar, Salahuddin and Parshley as sponsors and a hearing date of 2/3/26. It concerns guidelines on what constitutes a socially disadvantaged individual for business enterprise state certification. The brief summary says the bill creates a rebuttable presumption that women, Black/African American, Hispanic/Latino, Native American, Asian, Pacific Islander, Native Hawaiian, Middle Eastern/North African, LGBTQ, or other individuals identified by the Office of Minority and Women's Business Enterprises in rule are socially disadvantaged. The bill takes effect 90 days after adjournment of the session in which it is passed.

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Full text

Washington State                    BILL
House of Representatives
Office of Program Research   ANALYSIS
Technology, Economic Development, &
Veterans Committee
                                        HB 2684
Brief Description: Establishing guidelines for what constitutes a socially disadvantaged
     individual for the purpose of business enterprise state certification.

Sponsors: Representatives Farivar, Salahuddin and Parshley.


                                     Brief Summary of Bill
          • Creates a rebuttable presumption that women, Black/African American,
            Hispanic/Latino, Native American, Asian, Pacific Islander, Native
            Hawaiian, Middle Eastern/North African, LGBTQ, or other individuals
            identified by the Office of Minority and Women's Business Enterprises
            in rule are socially disadvantaged for purposes of state certification.


Hearing Date: 2/3/26

Staff: Martha Wehling (786-7067).

Background:

The Office of Minority and Women's Business Enterprises (OMWBE) was created to provide
minority- and women-owned and controlled businesses with the maximum practicable
opportunity for increased participation in public works contracts and public contracts for goods
and services. The OMWBE is the sole authority in Washington for certifying minority- and
women-owned business enterprises.

A business must apply for certification with the OMWBE, and must meet qualification criteria.
The primary owner must have 51 percent ownership of the business and be both socially and
economically disadvantaged. There are also restrictions on business size and gross receipts.



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

House Bill Analysis                             -1-                                         HB 2684
Certified business enterprises are listed in the OMWBE database. Cities, counties, state
agencies, transportation, and educational institutions use the database to source small and diverse
firms for potential contracting opportunities. A certified business is also eligible for a program
which decreases interest rates on small business loans.

The OMWBE rules define a "socially disadvantaged individual" as consistent with federal law
and including:
   • A person who has been subjected to racial or ethnic prejudice or cultural bias within
      American society because of his or her identity as a member of groups and without regard
      to his or her individual qualities. The social disadvantage must stem from circumstances
      beyond the individual's control.
   • Any individual who the agency finds to be a socially disadvantaged individual on a case-
      by-case basis.
   • Any individual in the following groups, members of whom are rebuttably presumed to be
      socially disadvantaged for the purposes of certification:
          • persons who are Asian or Pacific islander; person whose origins are from Japan,
             China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea),
             Thailand, Malaysia, Indonesia, the Philippines, Brunei, Guam, the Republic of
             Palau, the Federated States of Micronesia, and the Republic of Marshall Islands,
             Commonwealth of the Northern Mariana Islands, Samoa, Macao, Fiji, Tonga,
             Kirbati, Tuvalu, Nauru, Hong Kong, India, Pakistan, Bangladesh, Bhutan, the
             Maldives Islands, Nepal, or Sri Lanka;
          • persons who are black/African American; persons having origins in any of the black
             racial groups of Africa;
          • persons who are Hispanic/Latino; persons of Mexican, Puerto Rican, Cuban, Central
             or South American, or other Spanish or Portuguese culture or origin, regardless of
             race;
          • persons who are Native American or Alaska native; persons who are members or
             descendants of a federal or state recognized Indian tribe or Alaska native
             corporation;
          • persons who are native Hawaiian; persons whose ancestors were natives, prior to
             1778, of the area which now comprises the state of Hawaii;
          • women;
          • any additional groups whose members are designated as socially and economically
             disadvantaged by the United States Small Business Administration (SBA), at such
             time as the SBA designation becomes effective; and
          • LGBTQ individuals.

Summary of Bill:

Women, Black/African American, Hispanic/Latino, Native American, Asian, Pacific Islander,
Native Hawaiian, Middle Eastern/North African, LGBTQ, and other individuals identified by the
OMWBE in rule are presumed to be socially disadvantaged for the purpose of state certification.


House Bill Analysis                            -2-                                         HB 2684
The presumption is rebuttable.

Appropriation: None.

Fiscal Note: Requested on January 27, 2026.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -3-                                         HB 2684


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