September 20th 2023.
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Rhode Island's practices in regards to its minority-owned business contracting program are under fire for allegedly violating Title VI of the Civil Rights Act of 1964. According to the Rhode Island Current, Lawyers for Civil Rights wrote a letter to Governor Dan McKee, Department of Administration Director Jonathan Womer, and Tomas Avila, the associate director of Rhode Island's Office of Diversity, Equity and Opportunity.
In the letter, Lawyers for Civil Rights addressed the "distressing under-utilization of Minority and Women Business Enterprises in state contracting for construction, goods, and services." They suggested that Rhode Island should alter its actions to "avoid legal liability." The minority- and Business Contracting Program law was passed in 1986 with a mandate that 10% of state contracts and purchase dollars be allocated for women- or minority-owned businesses. However, the state has only met or surpassed the guidelines three times in 2018, 2019 and 2022.
Tasheena Davis, a litigation fellow with Lawyers for Civil Rights, stated that it was too early to tell whether or not the group will file a Title VI complaint. Lisa Ranglin, CEO and President of the Rhode Island Black Business Association (RIBBA), explained that their goal is not to sue the state, but rather to "get businesses to feel they can participate." This push for reform was triggered by a state-commissioned study revealing discriminatory practices against minority-owned businesses.
The letter, which doesn't threaten the state at the federal level, detailed the legal obligations that Rhode Island must adhere to federal anti-discrimination laws. It also suggested "Numerous steps–both race-neutral and race-conscious–are available to the State to break down exclusionary barriers and reduce these disparities." However, nothing has been done, even though “it is plain that less discriminatory alternatives to the State’s current contracting system exist.”
Given the $3 million state minority business accelerator program, Ranglin decided to reach out to Lawyers for Civil Rights. Ranglin claims that the program, run through Rhode Island Commerce, did not carry out its obligation to advocate and support minority businesses. Instead, the funds were distributed to organizations outside of this scope.
In response to the letter, Laura Hart, a spokesperson for the Rhode Island Department of Administration, stated that the state is taking steps to improve its minority and women-business contracting. Hart provided evidence of the increased mandated participation, outlined in the 2024 budget, which will jump from 10% to 15%. Furthermore, a disparity study will be released every five years, beginning in 2025, and new software to manage the business contracts will be implemented.
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