SJ0051 96TH GENERAL ASSEMBLY

SJ0051 LRB096 11977 GRL 23630 r

SENATE JOINT RESOLUTION

WHEREAS, Women Construction Owners and Executives (WCOE) is a national organization with a chapter in Illinois; and

WHEREAS, WCOE promotes opportunities and business for women-owned firms in the construction industry; and

WHEREAS, WCOE monitors and provides input on legislation affecting women construction owners and executives; and

WHEREAS, WCOE is celebrating its 25th anniversary on March 23, 2009 in Washington, D.C.; and

WHEREAS, WCOE has at the top of its national legislative agenda improvements to the United States Department of Transportation's Disadvantaged Business Enterprise (DBE) program; and

WHEREAS, These changes will enable recipients of federal stimulus moneys to be prepared with a strong pool of qualified DBE firms to perform the work that is being funded; and

WHEREAS, The present DBE program imposes a $750,000 personal net worth limitation on any qualifying owners seeking DBE certification and this limit has never been increased; and

WHEREAS, The present DBE program in 49 C.F.R. § 26.65 imposes the U.S. Small Business Administration's (SBA) size standards on the gross revenues of any firm seeking DBE certification, but also imposes an absolute limit, currently $20.1 million, even if the SBA standard is higher; and

WHEREAS, Bonding capacity and ability to secure lines of credit are directly tied to both a DBE owner's personal net worth as well as the DBE firm's gross revenues; and

WHEREAS, These artificially low limits on personal net worth and gross revenues are particularly challenging for DBE firms in Illinois due to a higher cost of living and higher construction costs; and

WHEREAS, The City of Chicago and Cook County have established personal net worth limitations of $2 million for their Minority and Women Business Enterprise (M/WBE) programs; and

WHEREAS, The current SBA gross revenue size standard for construction firms is $33.5 million; and

WHEREAS, Governmental agencies that provide DBE construction opportunities must develop statistical and anecdotal evidence to show the extent of discrimination against women and minorities in the construction industry; and

WHEREAS, The DBE program presently provides no guidelines for the methodology that should be used for these disparity studies; and

WHEREAS, The Transportation Research Board of the National Academy of Sciences is in the process of developing a model disparity study methodology; and

WHEREAS, Such a model disparity study methodology would greatly benefit the DBE program; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES CONCURRING HEREIN, that we urge President Obama, the Illinois congressional delegation, and the Secretary of the United States Department of Transportation to take immediate action to increase the personal net worth limitation in the DBE program to $2 million; and be it further

RESOLVED, That we urge President Obama, the Illinois congressional delegation, and the Secretary of the United States Department of Transportation to take immediate action to remove the cap on DBE gross receipts to reflect the applicable SBA size standards; and be it further

RESOLVED, That we urge President Obama, the Illinois congressional delegation, and the Secretary of the United States Department of Transportation to take immediate action to adopt the Transportation Research Board of the National Academy of Sciences' model disparity study methodology; and be it further

RESOLVED, That a suitable copy of this resolution be delivered to President Obama, the Illinois congressional delegation, and the Secretary of the United States Department of Transportation.