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LEGAL WATCHDOG DEMANDS THAT OMAHA IMMEDIATELY REPEAL CONTRACTING QUOTASPLF “Cease and Desist” Letter: Omaha Must Comply With Measure 424, Or Invite A Possible Lawsuit
OMAHA, Nebraska; March 12, 2009: The City of Omaha must repeal sections of its municipal code that give race- and sex-based preferences in the awarding of public contracts. That is the message of a formal “cease and desist” letter that was sent to the City last night (by express service).
Alan W. Foutz
PLF Attorney
Alan Speaks About the Letter
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The letter is sent by Pacific Legal Foundation, a Sacramento-based nonprofit public interest legal organization that litigates nationwide in defense of limited government and individual rights.
The PLF letter targets provisions of Omaha’s contracting compliance ordinance that automatically designates businesses as “disadvantaged” if they are owned and operated by members of specified racial or ethnic groups, or by women. Businesses designated as “disadvantaged” because of the race or sex of their owners are eligible for various preferences in the bidding process on public contracts. For instance: - On certain contracts, only members of designated racial groups, or women, are allowed to enter bids during the first 30 days; other contractors are excluded during that period.
- The City maintains a quota of awarding 10% of its contracting dollars to businesses owned by members of the designated racial groups and by women.
These provisions violate the new Nebraska Civil Rights Initiative, enacted by state voters in November, 2009, as Measure 424. It amended the Nebraska Constitution to ban discrimination or preferences in public contracting, employment, and education.
“Omaha’s race- and sex-based preferences for public contracts are unfair and illegal,” said PLF attorney Alan W. Foutz. “Businesses are automatically classified as ‘disadvantaged’ based solely on the owners’ sex or skin color – without regard to the company’s financial status. That’s not fair and not logical. And the preferences are illegal because they directly violate Measure 424’s mandate for colorblindness in government contracts.”
“If government wants to help give a leg up to business people who are at a real financial disadvantage, the best way – the legal way – is to look at a business’ financial status, not the skin color or sex of the person who owns it,” Foutz continued.
Across the country, PLF is America’s leading litigator against government programs that discriminate or grant preferences based on race or sex. In California, PLF has been the chief defender in court of Proposition 209, the ban against government race- and sex-based discrimination that served as the model for Nebraska’s Measure 424.
“PLF has been contacted by taxpaying residents of Omaha who are concerned about Omaha’s illegal contracting quotas,” said Foutz. “If the City does not repeal them, the City is inviting a lawsuit.”
“Measure 424 is a mandate for equal opportunity,” Foutz continued. “It is also a mandate for the important civil rights principle that people should be judged by their character, and their individual achievements and contributions – not by race. Finally, it is a mandate for using tax dollars as efficiently as possible – something that was never more important than today.”
“PLF calls on Omaha to rescind its quota policies and move into compliance with the state constitution,” Foutz said. “All people, contractors included, deserve to be treated as individuals with dignity and not pigeon-holed based on their sex or skin color.”
About Pacific Legal Foundation
Pacific Legal Foundation (www.pacificlegal.org) is the oldest and most successful public interest legal organization that litigates for limited government, individual rights, and property rights, in courts across the country.
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