Winston‑Salem city officials are set to reshape how local contracting oversight works after the state eliminated minority‑ and women‑owned business (MWBE) scoring requirements. At a 4 p.m. meeting of the General Government Committee on Monday, Oct. 12, council members will consider an ordinance that would rename and refocus the existing advisory board.
State law drives the change
Senate Bill 257, enacted as Session Law 2026‑41 and signed by Gov. Josh Stein on July 7, repealed the state Office for Historically Underutilized Businesses (HUB) and removed several statutes that mandated MWBE participation goals in public contracts. The law also bars such goals in certain construction projects, though it retains requirements for federally funded work.
Because the city’s current advisory‑committee ordinance cites the repealed statutes, Winston‑Salem must update its own rules to stay in compliance. City Attorney Camille French recommends approval, noting that the amendments are necessary to align local ordinances with the new state budget provisions.
What the proposed ordinance does
The draft would change the Minority/Women‑Owned Business Enterprise Advisory Committee into a Small‑Business Enterprise Advisory Committee. The new seven‑member board would retain two‑year terms, public meetings at least quarterly, and a focus on reviewing the city’s small‑business contracting program.
Instead of requiring experience with minority‑ and women‑owned firms, the mayor would now seek members with experience working with small businesses, along with backgrounds in construction, law, or finance. Those qualifications would remain preferences, not mandatory requirements.
The committee would continue to evaluate contractors’ good‑faith efforts to engage small businesses, but the language tying those reviews to MWBE participation goals would be removed. A separate provision would still allow the city to disqualify contractors who violate nondiscrimination laws.
Implications for local firms
While the new framework emphasizes company size rather than ownership, Black‑owned and women‑owned firms that meet the small‑business criteria can still qualify. However, a simple increase in small‑business contracts will not automatically reveal how those owners are faring.
The city’s Small Business Enterprise program page remains a work in progress, with eligibility rules, application procedures, and benefits yet to be announced. Economic Development’s Business Opportunity Division says it will keep offering technical assistance, outreach, training, and help with state small‑business certification.
Transparency and reporting
The ordinance does not create a new public scorecard, leaving open the question of how residents will track who bids on projects, who wins, and how much is paid—especially for minority‑ and women‑owned firms. The city will need to decide what data to collect and how to compare results before and after the change.
Contractors will still be required to demonstrate efforts to seek out small businesses, and the committee will monitor compliance, though the detailed scoring rules are not specified in the draft.
State certification window
A separate state certification period opens Thursday, Oct. 15, and runs through Nov. 30. HUB‑certified firms as of July 7 can use a streamlined digital confirmation if they are headquartered in North Carolina, have 100 or fewer employees, and annual net income of $1.5 million or less. Other eligible firms may apply through the state’s electronic Vendor Portal, though state certification alone does not guarantee eligibility for Winston‑Salem’s upcoming program.
Local businesses can also register through the city’s vendor system to view current bid opportunities.
Next steps
City Council’s decision on the ordinance will determine how the new advisory committee operates and how transparent the contracting process will be for small‑business owners. Residents can expect the first public accounting of bids and awards under the new approach to appear after the committee begins its regular reporting schedule.
Original reporting: Winston-Salem Chronicle — read the source article.
