Ohio establishes EDGE certification process for minority business contracting

Ohio's Senate Bill 145 aims to bolster opportunities for minority and EDGE (Encouraging Diversity, Growth, and Equity) business enterprises in state contracting. Introduced on March 12, 2025, the bill mandates that a minimum of 15% of contracts for equipment, materials, supplies, or services be set aside exclusively for certified minority business enterprises. This initiative is designed to enhance diversity in state procurement processes and ensure equitable access to government contracts.

Key provisions of the bill include a requirement for businesses to obtain certification from the Department of Housing and Development before bidding on contracts. The director of the department is tasked with maintaining a list of certified minority and EDGE businesses, streamlining the bidding process for these enterprises. Additionally, the bill encourages boards of alcohol, drug addiction, and mental health services to aim for a procurement goal of 5% of their construction contracts to be awarded to EDGE businesses.

The introduction of Senate Bill 145 has sparked discussions among lawmakers and advocacy groups. Supporters argue that the bill is a crucial step toward addressing systemic inequities in state contracting, while opponents express concerns about potential limitations on competition and the effectiveness of set-aside programs.

The implications of this legislation could be significant, potentially leading to increased economic opportunities for minority-owned businesses in Ohio. Experts suggest that if implemented effectively, the bill could foster a more inclusive business environment and stimulate local economies by empowering diverse entrepreneurs.

As the bill moves through the legislative process, stakeholders are closely monitoring its progress, anticipating debates that could shape its final form. The outcome of Senate Bill 145 may set a precedent for future legislation aimed at promoting diversity and equity in state contracting practices.