Indiana Black Legislative Caucus calls Braun's order ending MWBE programs illegal
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The Indiana Black Legislative Caucus and business leaders at the Statehouse on Monday. Photo: Arika Herron/Axios
The Indiana Black Legislative Caucus says it will fight back against what it says was an illegal action by Gov. Mike Braun, ending programs that gave preference to minority- and women-owned businesses in state contracts.
Catch up quick: Indiana's race- and sex-based spending goals for most state contracts pushed state agencies and government contractors to allocate a minimum percentage of state funds spent on contracts to businesses owned by minority groups or women.
- The purpose of such programs, in place in cities and states around the nation, is to ensure that socially and economically disadvantaged small business owners are included in government spending.
- Braun ended the state's supplier diversity programs last month through an executive order, following an opinion from state Attorney General Todd Rokita that the programs were unconstitutional under the equal protection clause of the 14th Amendment.
Driving the news: Sen. Greg Taylor (D-Indianapolis) called Braun's order illegal during an IBLC press conference Monday.
- Taylor said the caucus hasn't found a plaintiff willing to file legal action against the state, but he said small business owners that have been impacted by the end of the MWBE program should contact their local elected officials.
- He says they believe the program passes constitutional muster.
What they're saying: "If the governor and the attorney general want to eliminate a program, they should go through the legislative process to get that done — not through an executive order."
- The program was created by the legislature in the 1980s.
The other side: The attorney general and governor's office declined to comment.
State of play: Earl Harris (D-East Chicago) said the programs weren't a handout, but ensured that qualified businesses had the opportunity to compete.
- The state has a responsibility, he said, to understand whether there is a disparity in state contracting before ending the program designed to correct it.
- Indiana had previously conducted disparity studies but Harris said the last one was conducted in 2020.
What's next: Harris, chair of the IBLC, said they will continue to work to support small businesses and investigate the outcomes of Braun's action.
What we're watching: Lawmakers said Monday it wasn't clear they'd have standing to sue without an impacted business owner, so it's unclear if or when an actual lawsuit challenging Braun's order will be filed.