Certifying California Minority and Women Business Enterprises

California’s Public Contract Code, in Division 2, Part 1, Chapter 2.5, deals with the certification of minority and women business enterprises. Section 2050 established the intent of the Legislature that any awarding department shall accept for purposes of public contract work any state or local agency certification for minority, women, and disadvantaged business enterprises if that certification meets the certification criteria contained in federal law.

Section 2051 defines the following terms: “awarding department,” “Department,” “minority,” “minority business enterprise,” “women business enterprise,” “disadvantaged business enterprise,” “participating state or local agency,” “state agency,” “local agency,” and “district.”

Section 2052 requires all awarding departments and local agencies to accept a certification by any participating state agency whose certification criteria complies with federal law. All awarding departments are required to, and local agencies may, accept a certification by any participating local agency whose certification criteria complies with federal law.

Those participating state or local agency certifications are deemed sufficient to qualify minority, women, and disadvantaged business enterprises for purposes of contracts that are fully or partially funded by the federal government, contracts fully or partially funded by all state agencies, and contracts fully or partially funded by all local agencies.

In addition, all awarding departments and local agencies are required to accept the certification of a minority, women, or disadvantaged business enterprise made by a participating state agency as valid status of that enterprise, with respect to the identities of the persons certified as having ownership and control of the business enterprise, when awarding contracts to minority, women, and disadvantaged business enterprises.

Finally, a participating local agency may impose additional conditions for certification of a business enterprise concerning its status as a minority, women, or disadvantaged business enterprise relating to ethnicity, business size, and business location for participation in local programs.

Section 2053 requires a participating state or local agency to certify a business enterprise as a minority or women business enterprise if that business enterprise meets the definition of a minority or women business enterprise under state and federal laws. And, a participating state or local agency must certify a business enterprise as a disadvantaged business enterprise if that business enterprise meets the definition of a disadvantaged business enterprise specified in state and federal laws.

Additionally, the participating state or local agency may include a site visit as part of its certification process. A participating state or local agency is required to complete the certification process, including verification of information submitted by the applicant and the performance of a site visit, if applicable, within 60 working days after receipt of a completed application.

The grant of certification of a business enterprise by a participating state or local agency is valid for two years. A business enterprise that has been denied certification by a participating state or local agency may reapply for certification after six months have elapsed since the date of the denial of certification.

Section 2054 requires the department to develop and make available to all awarding departments and local agencies a directory of all state and local agencies participating in the standardized certification process pursuant to this chapter. An awarding department may count, for purposes of meeting statewide participation goals, those business enterprises that have been certified by a participating state or local agency.

The certification must be filed under penalty of perjury, and the certification application form is required to include specified information. A participating state or local agency granting or denying the certification must compile and maintain documentation supporting each of the criteria is state law for a minimum of two years. The documentation is required to include specified information.

Section 2055 authorizes a participating state or local agency to challenge the certification of a business enterprise made by another participating state or local agency by following specified procedures.

Section 2056 requires the department to establish and administer a computerized databank containing a list of certified minority, women, and disadvantaged business enterprises. The data is made accessible to all awarding departments, local agencies, and the public for use in contracting for goods, construction, and services with those business enterprises. The databank is required to include specified information.

Section 2057 states that this chapter does not apply to any professional services contract subject to the Government Code.