EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1458*
HOUSE BILL 1458
P2 2lr3199
CF 2lr3200
By: Delegate D. Barnes
Introduced and read first time: February 24, 2022
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
State Procurement – Small Business Reserve Program 2
FOR the purpose of altering the definition of “small business” for the purposes of the Small 3
Business Reserve Program by adding a requirement that the principal office of the 4
business must be located in the State; increasing the minimum percent of a unit’s 5
procurements that, to the extent practicable, are to be made directly from small 6
businesses; altering the intervals within which certain standards and guidelines for 7
participation in the Small Business Reserve Program are required to be established; 8
and generally relating to the Small Business Reserve Program. 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 14–501 and 14–502 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – State Finance and Procurement 17
14–501. 18
(a) In this subtitle the following words have the meanings indicated. 19
(b) “Small business” means: 20
(1) a certified minority business enterprise, as defined in § 14–301 of this 21
title, that meets the criteria specified under item (3) of this subsection; 22
2 HOUSE BILL 1458
(2) a veteran–owned small business enterprise, as defined in § 14–601 of 1
this title, that meets the criteria specified under item (3) of this subsection; or 2
(3) a business, other than a broker, that meets the following criteria: 3
(i) the business is independently owned and operated; 4
(ii) the business is not a subsidiary of another business; 5
(iii) the business is not dominant in its field of operation; [and] 6
(iv) THE BUSINESS ’S PRINCIPAL OFFICE I S LOCATED IN THE 7
STATE; AND 8
(V) 1. A. the wholesale operations of the business did not 9
employ more than 50 persons in its most recently completed 3 fiscal years; 10
B. the retail operations of the business did not employ more 11
than 25 persons in its most recently completed 3 fiscal years; 12
C. the manufacturing operations of the business did not 13
employ more than 100 persons in its most recently completed 3 fiscal years; 14
D. the service operations of the business did not employ more 15
than 100 persons in its most recently completed 3 fiscal years; 16
E. the construction operations of the business did not employ 17
more than 50 persons in its most recently completed 3 fiscal years; and 18
F. the architectural and engineering services of the business 19
did not employ more than 100 persons in its most recently completed 3 fiscal years; or 20
2. A. the gross sales of the wholesale operations of the 21
business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal 22
years; 23
B. the gross sales of the retail operations of the business did 24
not exceed an average of $3,000,000 in its most recently completed 3 fiscal years; 25
C. the gross sales of the manufacturing operations of the 26
business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal 27
years; 28
D. the gross sales of the service operations of the business did 29
not exceed an average of $10,000,000 in its most recently completed 3 fiscal years; 30
HOUSE BILL 1458 3
E. the gross sales of the construction operations of the 1
business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal 2
years; and 3
F. the gross sales of the architectural and engineering 4
services of the business did not exceed an average of $4,500,000 in its most recently 5
completed 3 fiscal years. 6
(c) “Small business reserve” means those procurements that are limited to 7
responses from small businesses under § 14–502(b) of this subtitle. 8
14–502. 9
(a) Except as provided in subsection (d) of this section, this subtitle applies to all 10
procurements by a unit. 11
(b) This subsection does not apply to procurements subject to Subtitle 1 of this 12
title. 13
(c) To the extent practicable, a unit shall structure its procurement procedures to 14
achieve a minimum of [15%] 30% of the unit’s total dollar value of goods, supplies, services, 15
maintenance, construction, construction–related services, and architectural and 16
engineering service contracts to be made directly to small businesses. 17
(d) The total dollar value of procurements by a unit does not include the value of 18
contracts to which this section does not apply because of a conflict with federal law. 19
(e) A unit may apply toward the unit’s overall annual Small Business Reserve 20
payment achievement only those payments resulting from a procurement tha t is 21
designated a Small Business Reserve procurement. 22
(f) The Special Secretary for the Office of Small, Minority, and Women Business 23
Affairs, in consultation with the Attorney General, shall establish standards and guidelines 24
for participation in the Small Business Reserve Program AT LEAST every 5 years. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2022. 27