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UNC �Y SCHOOL OF GOVERNMENT total value of all building construction projects costing $30,000 or more.16 Goals are adopted after notice and public hearing. A "historically underutilized business' is defined as a business that is at least 51% owned and managed by minority or socially and economically disadvantaged persons. A "minority person' is a citizen or lawful permanent resident who is either (i) African American; (ii) Hispanic; (iii) Asian American; (iv) American Indian; (v) handicapped; or (vi) female. A "socially and economically disadvantaged person' is someone who qualifies as such under federal law.1z HUB's must be certified by the NC Office for Historically Underutilized Businesses to count toward meeting participation goals. In addition to adopting HUB participation goals, local governments and, in some instances bidders, must engage in efforts to recruit HUB participation in certain building construction projects; these efforts vary depending on the cost and funding source of the project. [G.S. 143-128.2(a), (g); G.S. 143-128.4(a), (al), (b), ((e); 15 U.S.C. 573(a)(5)-(6)] a. Building construction projects in the informal bidding range ($30,000-$500,000) — Local governments must (i) solicit HUB participation in contracts; (ii) document efforts to recruit HUB participation; (iii) maintain a record of HUB contractors solicited; and (iv) report all data on HUB participation efforts to the NC Office for Historically Underutilized Businesses. [G.S. 143-131(b)] It is important to note an inconsistent overlap in the statutory requirements for HUB participation for building construction projects costing between $300,000 and $500,000. While one statute (G.S. 143-131) imposes the HUB solicitation and reporting requirements described in this subsection on construction projects in the informal bidding range—which extends to projects costing up to $500,000—another statute (G.S. 143-128.2) imposes more stringent requirements on building projects costing $300,000 or more (these requirements are described in the next subsection). For projects costing between $300,000 and $500,000, the safest course of action is to follow the more stringent requirements of G.S. 143-128.2. b. Building construction projects costing $300,000 or more — Local governments must establish goodfaith efforts for HUB participation prior to bid solicitation. Good faith efforts to encourage HUB participation apply to both local governments and bidders: i. Local government good faith efforts obligations—The local government must (i) develop and implement a HUB outreach plan; (ii) attend scheduled pre-bid conferences; (iii) notify interested HUBS of the opportunity to bid on a project at '6 HUB participation efforts do not apply to building construction projects costing less than $30,000 or to any construction or repair projects not involving public buildings. Local governments may choose to apply these goals to these categories of projects under their local policies. o 15 U.S.C. 637]a)]5). mber 1 \n 13 1 Construction Contracting Basic Legal Requirements Updated September 2013 F-9 Page 89