Dems propose bill to classify 70% of Washingtonians as 'Socially Disadvantaged'

Democrats in the Washington state legislature are pushing a proposal that establishes a list of demographic groups that are presumed to be “socially disadvantaged” for the purposes of state business certification. Based on the breadth of those categories, roughly 70 percent of Washington state residents would fall under the bill’s definition of “socially disadvantaged.”

Under existing statute, the Office of Minority and Women’s Business Enterprises (OMWBE) defines a “socially disadvantaged individual” as someone who has experienced racial or ethnic prejudice or cultural bias within American society due to group identity, stemming from circumstances beyond the individual’s control. The agency may also determine social disadvantage on a case-by-case basis.

HB 2684 states that “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.” The bill also covers people whose ancestry originates in a wide range of countries and regions across East Asia, South Asia, Southeast Asia, the Pacific Islands, and parts of the Middle East and North Africa, as well as members or descendants of federally or state-recognized tribes. In addition, the legislation authorizes the Office of Minority and Women’s Business Enterprises to designate other groups as socially disadvantaged through future rulemaking.

Todd Myers, vice president of research at the Washington Policy Center, commented on social media, “Based on this list, roughly 70% of Washington state residents would be socially disadvantaged.” One commenter responded: “Everyone in WA is socially disadvantaged except straight, white, Christian or Jewish males.”

The proposal comes just days after the US Small Business Administration (SBA) issued formal guidance reiterating that race-based presumptions are not permitted in the federal 8(a) Business Development Program. The SBA emphasized that “race-based discrimination within the 8(a) Program is unconstitutional and unlawful,” and clarified that it does not deny access to the program simply because a business owner is white.

The guidance further states that the SBA “does not consider any business owner to be ‘socially disadvantaged’… simply because they are a member of a certain minority group,” adding that no American may be denied government services based on race.