Maryland Senate Bill SB438

Maryland 2023 Regular Session

• Introduced: 2/2/23
• Refer: 2/2/23

Caption

Minority Business Enterprises - Calculation of Participation Rates - Procurements From Maryland Correctional Enterprises

Impact

The bill seeks to provide more equitable opportunities for minority business enterprises, thereby potentially increasing the volume of contracts awarded to such businesses. By including Maryland Correctional Enterprises in the MBE participation calculations, the bill acknowledges the valuable services these enterprises provide, while also fostering a more competitive and inclusive procurement environment. This change encourages the state to engage with a wider array of suppliers and service providers, which could diversify supply chains significantly.

Summary

Senate Bill 438 is designed to enhance the participation of minority-owned businesses in state procurement processes by requiring state procurement units to include the dollar value of contracts awarded to Maryland Correctional Enterprises in their calculations of Minority Business Enterprise (MBE) participation rates. The legislation aims to uplift historically marginalized business communities by recognizing and integrating the contributions of businesses that operate within correctional facilities into the broader economic framework.

Contention

Although the bill has positive intentions aimed at promoting economic parity, there may be contention around the inclusion of Maryland Correctional Enterprises in the MBE program calculations. Critics could argue that the focus should instead be on direct support and contract opportunities for minority-owned businesses that operate outside of correctional contexts. Additionally, there are concerns about the quality and competitiveness of the services provided by Maryland Correctional Enterprises compared to private sector counterparts, which might fuel debate among stakeholders in the business community.