By
The Associated Press
WASHINGTON - The Supreme Court re-entered the debate over affirmative action, agreeing yesterday to decide whether a federal program to help disadvantaged businesses amounts to unlawful race discrimination.
Adarand Constructors Inc., won a major ruling in 1995 that sharply restricted federal affirmative action programs. Yesterday, the justices said they will hear Adarand's challenge to the Transportation Department's revised highway-construction program.
The justices imposed significant limits on affirmative action in 1995, ruling that federal programs offering minorities special help to remedy past discrimination must meet a strict standard. The court said such aid must be narrowly tailored to meet a compelling government interest - a standard few programs can meet.
Adarand had sued over a 1990 Transportation Department program that gave bonuses to highway contractors if at least 10 percent of their subcontracts went to "disadvantaged business enterprises." Companies owned by racial minorities were presumed to be disadvantaged.
The Colorado-based Adarand, owned by a white man, said the program was unlawfully based on race.
After the 1995 ruling, Congress reauthorized the law and the Transportation Department revised the program. It kept the presumption that minority-owned businesses are disadvantaged and added the presumption for companies owned by women.
In addition, all companies claiming such status must certify that they are socially and economically disadvantaged and show that their owner's personal net worth is less than $750,000. Anyone can challenge a company's claim of being disadvantaged. State and local highway construction programs that receive federal funds must set their own goals for including disadvantaged businesses, and can devise their own way to meet the goal. The financial incentives were dropped.
In September, the 10th U.S. Circuit Court of Appeals upheld the new program, saying it met the strict standards set by the Supreme Court. Congress provided strong evidence that minority businesses suffered intentional discrimination in highway construction bidding, the court said.
In the appeal acted yesterday, Adarand's lawyers said the rules "compel race discrimination." The government could have used race-neutral alternatives such as simpler bidding rules, the company's lawyers said.
Justice Department lawyers said Congress had evidence of overt discrimination and an "old-boy network that effectively excluded minorities and women." The revised program ensures that benefits "flow only to those who are truly disadvantaged," government lawyers said.
The case is Adarand Constructors vs. Mineta, 00-730.
