Labor and Public Employees Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6476
Title: AN ACT CONCERNING A DISPARITY STUDY.
Vote Date: 3/18/2021
Vote Action: Joint Favorable
PH Date: 3/4/2021
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Labor and Public Employees Committee
REASONS FOR BILL:
There has not been a disparity study since 1992 and the data is outdated.
RESPONSE FROM ADMINISTRATION/AGENCY:
CT DEPARTMENT OF ADMINISTRATIVE SERVICES
This data will provide essential information in the process of developing new, legally
justifiable goals and definitions. This study must identify the number of Minority Business
Enterprises and non-MBEs who are ready, willing and able to perform work with the State of
CT, identify the number of vendors in each category and analyze the results to determine if
there is a disparity between the availability and utilization of these companies. They ask that
any legislation requiring a disparity study that advances out of committee have DAS
designated as the lead agency administering the request for proposal and disparity study in
consultation with OPM and CHRO.
KONSTANTINOS DIAMANTIS, DEPUTY SECRETARY, OFFICE OF POLICY AND
MANAGEMENT
The bill will have a fiscal impact that the General Assembly will have to prioritize in its budget
deliberations. They support conducting this study in phases and recommend the following
order of priority: Phase l. Vertical and horizontal construction contracts.
Phase 2. State agency goods/services contracts, including IT service and
facilities-related services.
Phase 3. State agency health and human services contracts, including
Personal Service Agreements.
Phase 4. Quasi-public agency contracts.
The precise amount of funding that will be allocated for the study will be determined in final
budget deliberations. The number of phases that can be completed in one year will be
determined by RFP results. They believe the study should be led by the Department of
Administrative Services because it has statewide implications and implicates the Supplier
Diversity Program at DAS. Also, OPM and CHRO should be included. They also ask for JFS
language that specifies that DAS, in consultation with OPM and CHRO, develop an issue with
RFP for the disparity study.
TANYA HUGHES, EXECUTIVE DIRECTOR, CHRO
CHERYL SHARP, DEPUTY DIRECTOR, CHRO
The set-aside program guarantees that comprehensive bidding and other contracting
processes will give qualified but underutilized small businesses, and 25% of those small
business for enterprises owned by women, ethnic minorities and individuals with disabilities,
greater inclusion of historically disadvantaged persons in state funded public works contracts.
It assures dollars will be turned over within the state and keep state dollars in local small
businesses. The last disparity study was done in 1992 and diversity and economy has
changed substantially in this time.
DAVID LEHMAN, COMMISSIONER, DEPT. OF ECONOMIC AND COMMUNITY
DEVELOPMENT
A disparity study will help us better understand the utilization and availability of state
contracts to minority, women, veteran, and disabled-owned enterprises. This is necessary to
update existing set-aside statutes and other efforts for state contracting reforms. It should be
noted that disparity studies are a national best practice standard and are conducted by state,
regional and local governments across the United States.
NATURE AND SOURCES OF SUPPORT:
DON SHUBERT, CT CONSTRUCTION INDUSTRIES ASSOCIATION
For the sake of resurrecting the crucial and necessary process of rooting CT's set-aside
program on solid legal footing, they support this bill. The current minority business enterprise
program is not designed as a narrowly-tailored program and does not meet the strict scrutiny
standard for justifying a race-based program. It would provide an analysis of existing
statistical data concerning the state's set-aside program to determine whether its current form
achieves the goal of facilitating the participation in state contracts of small contractors and
minority business enterprises. The purpose of a minority business enterprise program should
be to eliminate the discrimination in state contracting. The program now in place intends to
achieve this objective, but the state must first show in a disparity study that discrimination
exists in state contracting to justify the program. The success of CT's MBE/WBE program will
depend greatly on the effectiveness of the disparity study.
CARL CHISEM, PRESIDENT, MUNICIPAL EMPLOYEES UNION INDEPENDENT, SEIU
LOCAL 506, CT EMPLOYEES UNION INDEPENDENT, SEIU LOCAL 511
CT is one of the richest states in the nation, but it is also the #1 segregated state both racially
and economically. As a result, huge inequities leave many to deal with education gaps, health
disparities, unattainable home ownership and other hardships. The Pandemic has only
exacerbated these inequities exposing economic challenges that were never imagined. It is
time to face these problems and prioritize what really matters and address the unfairness that
exists in our state. We must bridge the racial and economic gaps so that all can enjoy the
Page 2 of 5 HB-6476
basic qualities of life, earning a living wage, having affordable healthcare, accessing high-
quality education and even being able to save for a rainy day. The pandemic has only
exacerbated these inequities.
LETICIA CONLIN De MAJIAS, INTERIM CHAIR, LATINO AND PUERTO RICAN AFFAIRS
ADVISORY BOARD, CGA COMMISSION ON WOMEN, CHILDREN, SENIORS, EQUITY
AND OPPORTUNITY (CWCSEO)
It is not a secret that disparities exist in our state. These long-standing social and economic
disparities have been barriers to the health and wealth of our minority communities for far too
long. They assert that lack of access to disaggregated data regarding these disparities has
stood in the way of equitable policy making, planning and budgeting. Our communities seek
equal support and equal opportunities to create new paths to stable social and economic
improvement. Disparity studies have become a legally necessary step in the development of
programs and policies that attempt to level the playing field for black and brown residents and
businesses. These are not enough to create effective intervention, but they will identify
opportunities for development and open doors. It is unfortunate that these studies must be
done to justify programs to support communities of color. They offer these friendly
amendments: Ensure the study is properly funded, ensure it accurately collects/reflects
disaggregated data, oversight is completed by an inclusive and diverse committee, define
appropriate scope and final deadline and make effective and efficient use of time and
resources.
COLIN DAWKINS, MCM ACOUSTICS, INC
He has been in the construction industry since 1993, as an apprentice in the Carpenters
Union and worked up to journeyman to become the best in what he does. As a black man in
the union, work was not available as much as it was before. At the time, only 3 towns out of
169 asked for black and brown workers. This limited him in caring for his family. There is
discrimination in policies and laws when employing black and brown workers while using CT
tax dollars. Minority does not capture the essence of the struggle a black or brown person
endures, especially in the construction industry. He suggests putting the city of Hartford set-
aside program on all state projects, schools, colleges and all quasi-state agencies. The
threshold for micro businesses is $3 million now but should go up to $6 million again.
There should be separate black and brown contracts. A round table meeting should be held
with the unions about PLA jobs when working with black and brown workers and stop putting
money in roadblocks. "The state has been putting their knees in the backs of black and brown
contractors' necks for years. We can't breathe."
JENNIFER LITTLE-GREER, EXECUTIVE DIRECTOR MINORITY CONSTRUCTION
COUNCIL
The last time a Disparity Study was completed was in 1992. In 2013, an incomplete study
was started, but never completed so the data was useless and no changes were made to
identify the true percentages that should have been allotted to ethnic,
Minority/Women/Disabled Business Enterprises. The State Budget and Finance Committee
met and reported the State would be allocating over $637million in 2021 in grants on 15
projects. With so may projects scheduled, this study is needed. This will ensure qualified,
underutilized minority and disabled contractors can participate.
Page 3 of 5 HB-6476
SAL LUCIANO, PRESIDENT, CONNECTICUT AFL-CIO
Inequities are deep-rooted in CT. Long standing social and economic disparity have been
built into state and budgets, policies and procedures for generations. The COVID-19
pandemic exposed and deepened these inequities, especially in areas of public pre K-12 and
higher education, healthcare access, mental health access, housing, and workforce
development. Disparity studies can identify obstacles and opportunities and are an essential
step in prioritizing policy changes that can provide greater equality.
STAN J. McCAWLEY, PRESIDENT, GREATER HARTFORD AFRICAN AMERICAN
ALLIANCE
Extreme disparities exist between white and black contractors in CT spanning many decades
and many ethnic minority contractors have lost their businesses waiting for their fair share of
CT's construction work. When cranes go up and development begins, ethnic minority
contractors are not seen working at urban job sites. They are not seen on highway projects
that proliferate around urban centers and we don't see major construction projects or school
building projects supporting black and Latinx contractors/laborers. Those who choose the
construction industry are often kept out of good paying union jobs and are not able to obtain
bonding or business loans so they can bid competitively on larger jobs. Racism, exclusion,
mass incarceration and so may other 'isms' are prevalent throughout the banks, insurance
companies and unions that have been major points of exclusion. Many ethnic minority
contractors have been locked out of business loans and are unable to obtain the bonds
necessary to secure some of the larger construction projects. Addressing these issues
through the funding of a statewide disparity study will go a long way towards leveling the
playing field.
BERNARD THOMAS, PRESIDENT
Greatly simplified, a disparity study evaluates the past contracting practices of local
government that proposes to implement an MBE/WBE program within the market area from
which the contractors doing business with the unit are drawn, and the availability of qualified
MBE/WBE contractors within that market area in the trades used by the unit. The study
analyzes whether there is a significant statistical disparity between the firms available and
those used by the local government, attempting to control race-neutral factors such as firm
size and experience. Such disparity is evidence of discrimination.
MAGALI VERDUGO, OWNER/PRESIDENT, AMERICAN BUILDING WRECKERS
CHARLES LaCONCHE, LABOR RELATIONS SPECIALIST
His firm works primarily in the abatement and demolition industries. American Building
Wreckers has had the good fortune of needed resources to sustain their business model
through the good and bad times. Unfortunately, most MBEs & WBEs do not have this luxury.
In order to level the playing field with more established firms, it is important to determine the
percentage of construction work both in the public and private sectors performed by minority
and women owned businesses. Many large cities have passed regulations to ensure that set-
aside programs are available to the above-mentioned groups. These set-aside programs
have not always guaranteed success to the companies they are aimed to help.
A compilation of the amount of work MBEs & WBEs acquire is the necessary first step in
order to determine the eventual success of any minority or women owned businesses.
Employment and opportunity would be greatly enhanced by this study.
Page 4 of 5 HB-6476
NATURE AND SOURCES OF OPPOSITION:
None submitted.
Reported by: Marie Knudsen, Assistant Clerk Date: March 20, 2021
Page 5 of 5 HB-6476