System would track minority businesses
The bill, HB236, would allow businesses to report the gender or race of one or more business owners when they register with the Division of Corporations and Commercial Code.
Rep. Mark Wheatley, D-Murray, said his bill is aimed at "having accurate data" on businesses operating in Utah, which could be used to attract lucrative federal contracts reserved for businesses owned by women and minorities.
Some $119.6 million in such contracts were awarded to Utah businesses through the U.S. Small Business Administration last year, he said. HB237 would help "identify more and more businesses who may qualify," he said.
Wheatley told lawmakers that the fiscal note is sufficient to start collecting the data.
However, Francine Giani, executive director of the Department of Commerce, said the fiscal note of $50,000 for the first year and $30,000 for the second year falls far short of what she'd need to implement the program.
Giani also questioned whether the data would be accurate. She noted that it would be optional to report demographic information and added that not all businesses in Utah register with the state.
"They will not be receiving the information they think they'll get," she said.
Currently, the only data available is dated information from the U.S. Census Bureau's economic census, taken most recently in 2002, and independent surveys, Wheatley said.
Rep. Steve Mascaro, R-Salt Lake, said the bill provides "access to federal dollars that are our tax dollars and bring them back to the state of Utah."
E-mail: dbulkeley@desnews.com
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