In 2006, the Discrimination Research Center (DRC) issued a report on the impact of Proposition 209, the California Civil Rights Initiative that ended race-conscious goals and affirmative action programs on minority businesses. Major findings of the report were:
- Only a third of the certified MBEs in California’s transportation construction industry are in business now.
- Existing MBEs reported a greater than 50 percent reduction of total awards and contracts from Caltrans.
- MBEs reported that the aspects of the federal race conscious efforts such good faith efforts by prime contractors and pre-bidding conferences were less helpful after 1996.
- Among the surviving firms, African American and minority female owned firms were the most negatively impacted.
- The surviving MBEs could not have initially succeeded or maintained their success without the incentives that helped provided them equal access to bids. http://drcenter.org/studies/free_to_compete_06.pdf