Maryland House Bill HB646

Maryland 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/6/23

Caption

State Procurement - Minority Business Enterprises and Small Business Enterprises - Procurement Forecast, Employee Performance, and Outreach (Small Business Protection Act of Maryland)

Impact

The legislation imposes specific performance expectations on procurement officers and employees responsible for state purchases. If these individuals fail to meet set minority business enterprise goals, they may be denied merit increases or promotions. Furthermore, if there is no improvement over three consecutive fiscal years, they face potential termination or reassignment. Such provisions are intended to incentivize efforts towards achieving diversity and inclusion in state procurement.

Summary

House Bill 646, known as the Small Business Protection Act of Maryland, aims to enhance the participation of minority and small business enterprises in state procurement. The bill requires that each government unit publish an annual procurement forecast on their website, detailing anticipated procurements and setting goals for minority business participation. This transparency is designed to foster greater awareness and opportunities for small businesses within state contracting processes.

Contention

While the bill seeks to promote small and minority business participation, it has raised concerns among various stakeholders. Some critics argue that the punitive measures for procurement officers may lead to adverse effects on operations, potentially discouraging employees from taking risks in their procurement strategies. Proponents argue that these measures are necessary to ensure accountability and to achieve the broader socio-economic goals of inclusion and diversity in state contracts.