Maryland 2022 Regular Session

Maryland House Bill HB389 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	LAWRENCE J. HOGAN, JR., Governor Ch. 155
2	1
3		-	– 1 –
4		-	Chapter 155
5		-	(House Bill 389)
6	2
7		-	AN ACT concerning
	3	+	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
	4	+	[Brackets] indicate matter deleted from existing law.
	5	+	Underlining indicates amendments to bill.
	6	+	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
	7	+	amendment.
	8	+	hb0389
8	9
9		-	Procurement – Minority Business Enterprises – Revisions
	10	+	HOUSE BILL 389
	11	+	P2 2lr3019
	12	+	CF SB 487
	13	+	By: Delegate Wilson
	14	+	Introduced and read first time: January 19, 2022
	15	+	Assigned to: Health and Government Operations
	16	+	Committee Report: Favorable with amendments
	17	+	House action: Adopted
	18	+	Read second time: March 2, 2022
10	19
11		-	FOR the purpose of requiring a procurement officer, in an invitation for bids or a request
12		-	for proposals, to include a certain summary of the factors used to determine the
13		-	expected degree of minority business enterprise participation for the contract;
14		-	authorizing certain entities to retain certification as a minority business enterprise
15		-	if the entity participates as a mentor in a certain mentorship program and under
16		-	certain circumstances; requiring the Special Secretary for the Office of Small,
17		-	Minority, and Women Business Affairs to establish certain statewide minority
18		-	business enterprise participation goals by industry type in a certain manner;
19		-	establishing that certain statewide goals by industry type apply under certain
20		-	circumstances; requiring each unit of the Executive Branch of State government to
21		-	annually report the results of certain compliance assessments to the Governor’s
22		-	Office of Small, Minority, and Women Business Affairs; authorizing the Special
23		-	Secretary to waive the requirement for a unit to report certain information under
24		-	certain circumstances; requiring the Office to maintain and publish on its website a
25		-	list of prime contractors who, based on the results of the compliance assessments,
26		-	Governor’s Office of Small, Minority, and Women Business Affairs and the Office of
27		-	State Procurement, in consultation with the Office of the Attorney General and
28		-	Board of Public Works, to adopt by regulation criteria used to determine that a prime
29		-	contractor has persistently fail failed to meet contract goals; requiring the results of
30		-	certain compliance assessments to be included in certain criteria; requiring the
31		-	Governor’s Office of Small, Minority, and Women Business Affairs to refer certain
32		-	prime contractors to the Office of the Attorney General for debarment; authorizing
33		-	the Board of Public Works to debar a person for a certain period of time under certain
34		-	circumstances; requiring certain units of the Executive Branch of State government
35		-	to designate certain procurements for the small business reserve under certain
36		-	circumstances; requiring certain standards and guidelines relating to participation
37		-	in the small business reserve program to allow for the registration of certain
38		-	businesses without the need to file certain paperwork; establishing that certain
39		-	procurements may be exempt from designation for the small business reserve under
40		-	certain circumstances; making certain provisions of law relating to the prompt
41		-	payment of subcontractors apply to all State contracts, rather than only State
42		-	contracts for construction; creating the position of Minority Business Enterprise
43		-	Ombudsman in the Governor’s Office of Small, Minority, and Women Business
44		-	Affairs; establishing certain duties and authority of the Ombudsman; altering the
45		-	definition of “responsible bidder or offeror” to exclude contractors who persistently
46		-	fail to meet contract goals, based on the results of certain compliance assessments
47		-	requiring the Ombudsman, Governor’s Office of Small, Minority, and Women
48		-	Business Affairs, and the Department of Legislative Services to submit certain Ch. 155 2022 LAWS OF MARYLA ND
	20	+	CHAPTER ______
49	21
50		-	– 2 –
51		-	reports on or before certain dates; and generally relating to procurement and
52		-	minority business enterprises.
	22	+	AN ACT concerning 1
53	23
54		-	BY repealing and reenacting, without amendments,
55		-	Article – State Finance and Procurement
56		-	Section 11–101(a)
57		-	Annotated Code of Maryland
58		-	(2021 Replacement Volume)
	24	+	Procurement – Minority Business Enterprises – Revisions 2
59	25
60		-	BY repealing and reenacting, with amendments,
61		-	Article – State Finance and Procurement
62		-	Section 11–101(s), 13–103(a), 13–104(b), 14–301(f), 14–302(a)(1), 14–303, and
63		-	14–303(b)(2), 14–305; 14–305, and 14–502(f); and 15–226 to be under the
64		-	amended part “Part IV. Prompt Payment of Subcontractors”; and 16–203(d)
65		-	Annotated Code of Maryland
66		-	(2021 Replacement Volume)
	26	+	FOR the purpose of requiring a procurement officer, in an invitation for bids or a request 3
	27	+	for proposals, to include a certain summary of the factors used to determine the 4
	28	+	expected degree of minority business enterprise participation for the contract; 5
	29	+	authorizing certain entities to retain certification as a minority business enterprise 6
	30	+	if the entity participates as a mentor in a certain mentorship program and under 7
	31	+	certain circumstances; requiring the Special Secretary for the Office of Small, 8
	32	+	Minority, and Women Business Affairs to establish certain statewide minority 9
	33	+	business enterprise participation goals by industry type in a certain manner; 10
	34	+	establishing that certain statewide goals by industry type apply under certain 11
	35	+	circumstances; requiring each unit of the Executive Branch of State government to 12
	36	+	annually report the results of certain compliance assessments to the Governor’s 13
	37	+	Office of Small, Minority, and Women Business Affairs; authorizing the Special 14
	38	+	Secretary to waive the requirement for a unit to report certain information under 15
	39	+	certain circumstances; requiring the Office to maintain and publish on its website a 16
	40	+	list of prime contractors who, based on the results of the compliance assessments, 17
	41	+	Governor’s Office of Small, Minority, and Women Business Affairs and the Office of 18
	42	+	State Procurement, in consultation with the Office of the Attorney General and 19
	43	+	Board of Public Works, to adopt by regulation criteria used to determine that a prime 20
	44	+	contractor has persistently fail failed to meet contract goals; requiring the results of 21
	45	+	certain compliance assessments to be included in certain criteria; requiring the 22
	46	+	Governor’s Office of Small, Minority, and Women Business Affairs to refer certain 23
	47	+	prime contractors to the Office of the Attorney General for debarment; authorizing 24
	48	+	the Board of Public Works to debar a person for a certain period of time under certain 25 2 HOUSE BILL 389
67	49
68		-	BY adding to
69		-	Article – State Finance and Procurement
70		-	Section 14–301(e–1) and 14–502.1
71		-	Annotated Code of Maryland
72		-	(2021 Replacement Volume)
73	50
74		-	BY adding to
75		-	Article – State Government
76		-	Section 9–303.3
77		-	Annotated Code of Maryland
78		-	(2021 Replacement Volume)
	51	+	circumstances; requiring certain units of the Executive Branch of State government 1
	52	+	to designate certain procurements for the small business reserve under certain 2
	53	+	circumstances; requiring certain standards and guidelines relating to participation 3
	54	+	in the small business reserve program to allow for the registration of certain 4
	55	+	businesses without the need to file certain paperwork; establishing that certain 5
	56	+	procurements may be exempt from designation for the small business reserve under 6
	57	+	certain circumstances; making certain provisions of law relating to the prompt 7
	58	+	payment of subcontractors apply to all State contracts, rather than only State 8
	59	+	contracts for construction; creating the position of Minority Business Enterprise 9
	60	+	Ombudsman in the Governor’s Office of Small, Minority, and Women Business 10
	61	+	Affairs; establishing certain duties and authority of the Ombudsman; altering the 11
	62	+	definition of “responsible bidder or offeror” to exclude contractors who persistently 12
	63	+	fail to meet contract goals, based on the results of certain compliance assessments 13
	64	+	requiring the Ombudsman, Governor’s Office of Small, Minority, and Women 14
	65	+	Business Affairs, and the Department of Legislative Services to submit certain 15
	66	+	reports on or before certain dates; and generally relating to procurement and 16
	67	+	minority business enterprises. 17
79	68
80		-	BY repealing and reenacting, ~~with~~ amendments,
81		-	Article – State ~~Government~~
82		-	Section 9–~~305~~(~~b)(7~~)
83		-	Annotated Code of Maryland
84		-	(2021 Replacement Volume)
	69	+	BY repealing and reenacting, without amendments, 18
	70	+	Article – State Finance and Procurement 19
	71	+	Section 11–101(a) 20
	72	+	Annotated Code of Maryland 21
	73	+	(2021 Replacement Volume) 22
85	74
86		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
87		-	That the Laws of Maryland read as follows:
	75	+	BY repealing and reenacting, with amendments, 23
	76	+	Article – State Finance and Procurement 24
	77	+	Section 11–101(s), 13–103(a), 13–104(b), 14–301(f), 14–302(a)(1), 14–303, and 25
	78	+	14–303(b)(2), 14–305; 14–305, and 14–502(f); and 15–226 to be under the 26
	79	+	amended part “Part IV. Prompt Payment of Subcontractors”; and 16–203(d) 27
	80	+	Annotated Code of Maryland 28
	81	+	(2021 Replacement Volume) 29
88	82
89		-	Article – State Finance and Procurement
	83	+	BY adding to 30
	84	+	Article – State Finance and Procurement 31
	85	+	Section 14–301(e–1) and 14–502.1 32
	86	+	Annotated Code of Maryland 33
	87	+	(2021 Replacement Volume) 34
90	88
91		-	11–101.
	89	+	BY adding to 35
	90	+	Article – State Government 36
	91	+	Section 9–303.3 37
	92	+	Annotated Code of Maryland 38
	93	+	(2021 Replacement Volume) 39
92	94
93		-	(a) In this Division II the following words have the meanings indicated unless:
	95	+	BY repealing and reenacting, with amendments, 40
	96	+	Article – State Government 41
	97	+	Section 9–305(b)(7) 42 HOUSE BILL 389 3
94	98
95		-	(1) the context clearly requires a different meaning; or
96		-	LAWRENCE J. HOGAN, JR., Governor Ch. 155
97	99
98		-	~~– 3 –~~
99		-	(2) ~~a different definition is provided for a particular title or provision.~~
	100	+	Annotated Code of Maryland 1
	101	+	(2021 Replacement Volume) 2
100	102
101		-	(s) “Responsible bidder or offeror” means a person who:
	103	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
	104	+	That the Laws of Maryland read as follows: 4
102	105
103		-	(1) has the capability in all respects to perform fully the requirements for
104		-	a procurement contract; [and]
	106	+	Article – State Finance and Procurement 5
105	107
106		-	(2) possesses the integrity and reliability that will ensure good faith
107		-	performance; AND
	108	+	11–101. 6
108	109
109		-	(3) IS NOT A CONTRACTOR WHO PERSISTENTLY FAI LS TO MEET
110		-	CONTRACT GOALS AS DETER MINED UNDER § 14–305(C)(2) OF THIS ARTICLE .
	110	+	(a) In this Division II the following words have the meanings indicated unless: 7
111	111
112		-	~~13–103.~~
	112	+	(1) the context clearly requires a different meaning; or 8
113	113
114		-	(a) (1) Whenever procurement is based on competitive sealed bids, a
115		-	procurement officer shall seek bids by issuing an invitation for bids.
	114	+	(2) a different definition is provided for a particular title or provision. 9
116	115
117		-	(2) Subject to subsection (b) of this section, an invitation for bids shall
118		-	include:
	116	+	(s) “Responsible bidder or offeror” means a person who: 10
119	117
120		-	(i) the specifications of the procurement contract, including the
121		-	expected degree of minority business enterprise participation, as provided in § 14–303(b) of
122		-	this article;
	118	+	(1) has the capability in all respects to perform fully the requirements for 11
	119	+	a procurement contract; [and] 12
123	120
124		-	(II) A SUMMARY OF THE FAC TORS USED TO DETERMINE THE
125		-	EXPECTED DEGREE OF M INORITY BUSINESS ENT ERPRISE PARTICIPATIO N FOR THE
126		-	PROCUREMENT CONTRACT , INCLUDING SUBCONTRAC TING OPPORTUNITIES
127		-	IDENTIFIED FOR THE P ROJECT, ANY APPLICABLE NORTH AMERICAN INDUSTRY
128		-	CLASSIFICATION SYSTEM CODES LINKED TO THE SUBCONTRACTIN G
129		-	OPPORTUNITIES , AND THE NUMBER OF CE RTIFIED MINORITY BUS INESS
130		-	ENTERPRISES IN THOSE INDUSTRIES;
	121	+	(2) possesses the integrity and reliability that will ensure good faith 13
	122	+	performance; AND 14
131	123
132		-	[(ii)] (III) whether the procurement contract will be awarded based
133		-	on the lowest bid price, the lowest evaluated bid price or, if the procurement is subject to §
134		-	11–202(3) of this article, the bid most favorable to the State;
	124	+	(3) IS NOT A CONTRACTOR WHO PERSISTENTLY FAI LS TO MEET 15
	125	+	CONTRACT GOALS AS DETER MINED UNDER § 14–305(C)(2) OF THIS ARTICLE . 16
135	126
136		-	[(iii)] (IV) if the procurement contract will be based on evaluated bid
137		-	price, the objective measurable criteria by which the lowest evaluated bid price will be
138		-	determined; and
	127	+	13–103. 17
139	128
140		-	[(iv)] (V) if the Secretary of General Services, the Secretary of
141		-	Transportation, or the Chancellor of the University System of Maryland has so designated,
142		-	the small business preference.
143		-	Ch. 155 2022 LAWS OF MARYLA ND
	129	+	(a) (1) Whenever procurement is based on competitive sealed bids, a 18
	130	+	procurement officer shall seek bids by issuing an invitation for bids. 19
144	131
145		-	~~– 4 –~~
146		-	~~13–104.~~
	132	+	(2) Subject to subsection (b) of this section, an invitation for bids shall 20
	133	+	include: 21
147	134
148		-	(b) (1) Whenever procurement is based on competitive sealed proposals, a
149		-	procurement officer shall seek proposals by issuing a request for proposals.
	135	+	(i) the specifications of the procurement contract, including the 22
	136	+	expected degree of minority business enterprise participation, as provided in § 14–303(b) of 23
	137	+	this article; 24
150	138
151		-	(2) A request for proposals shall include a statement of:
	139	+	(II) A SUMMARY OF THE FAC TORS USED TO DETERMI NE THE 25
	140	+	EXPECTED DEGREE OF M INORITY BUSINESS ENT ERPRISE PARTICIPATIO N FOR THE 26
	141	+	PROCUREMENT CONTRACT , INCLUDING SUBCONTRAC TING OPPORTUNITIES 27
	142	+	IDENTIFIED FOR THE P ROJECT, ANY APPLICABLE NORTH AMERICAN INDUSTRY 28
	143	+	CLASSIFICATION SYSTEM CODES LINKED T O THE SUBCONTRACTING 29
	144	+	OPPORTUNITIES , AND THE NUMBER OF CE RTIFIED MINORITY BUS INESS 30
	145	+	ENTERPRISES IN THOSE INDUSTRIES; 31 4 HOUSE BILL 389
152	146
153		-	(i) the scope of the procurement contract, including the expected
154		-	degree of minority business enterprise participation, as provided in § 14–303(b) of this
155		-	article;
156	147
157		-	(II) A SUMMARY OF THE FAC TORS USED TO DETERMI NE THE
158		-	EXPECTED DEGREE OF M INORITY BUSINESS ENT ERPRISE PARTICIPATIO N FOR THE
159		-	PROCUREMENT CONTRACT , INCLUDING SUBCONTRAC TING OPPORTUNITIES
160		-	IDENTIFIED FOR THE P ROJECT, ANY APPLICABLE NORTH AMERICAN INDUSTRY
161		-	CLASSIFICATION SYSTEM CODES LINKED T O THE SUBCONTRACTING
162		-	OPPORTUNITIES , AND THE NUMBER OF CE RTIFIED MINORITY BUS INESS
163		-	ENTERPRISES IN THOSE INDUSTRIES;
164	148
165		-	[(ii)] (III) the factors, including price, that will be used in evaluating
166		-	proposals; and
	149	+	[(ii)] (III) whether the procurement contract will be awarded based 1
	150	+	on the lowest bid price, the lowest evaluated bid price or, if the procurement is subject to § 2
	151	+	11–202(3) of this article, the bid most favorable to the State; 3
167	152
168		-	[(iii)] (IV) the relative importance of each factor.
	153	+	[(iii)] (IV) if the procurement contract will be based on evaluated bid 4
	154	+	price, the objective measurable criteria by which the lowest evaluated bid price will be 5
	155	+	determined; and 6
169	156
170		-	14–301.
	157	+	[(iv)] (V) if the Secretary of General Services, the Secretary of 7
	158	+	Transportation, or the Chancellor of the University System of Maryland has so designated, 8
	159	+	the small business preference. 9
171	160
172		-	~~(f) “Minority business enterprise” means:~~
	161	+	13–104. 10
173	162
174		-	(1) any legal entity, except a joint venture, that is:
	163	+	(b) (1) Whenever procurement is based on competitive sealed proposals, a 11
	164	+	procurement officer shall seek proposals by issuing a request for proposals. 12
175	165
176		-	~~[(1)]~~ (I) ~~organized to engage in commercial transactions;~~
	166	+	(2) A request for proposals shall include a statement of: 13
177	167
178		-	[(2)] (II) at least 51% owned and controlled by 1 or more individuals who
179		-	are socially and economically disadvantaged; and
	168	+	(i) the scope of the procurement contract, including the expected 14
	169	+	degree of minority business enterprise participation, as provided in § 14–303(b) of this 15
	170	+	article; 16
180	171
181		-	[(3)] (III) managed by, and the daily business operations of which are
182		-	controlled by, one or more of the socially and economically disadvantaged individuals who
183		-	own it; OR
	172	+	(II) A SUMMARY OF THE FAC TORS USED TO DETERMI NE THE 17
	173	+	EXPECTED DEGREE OF M INORITY BUSINESS ENT ERPRISE PARTICIPATIO N FOR THE 18
	174	+	PROCUREMENT C ONTRACT, INCLUDING SUBCONTRAC TING OPPORTUNITIES 19
	175	+	IDENTIFIED FOR THE P ROJECT, ANY APPLICABLE NORTH AMERICAN INDUSTRY 20
	176	+	CLASSIFICATION SYSTEM CODES LINKED T O THE SUBCONTRACTING 21
	177	+	OPPORTUNITIES , AND THE NUMBER OF CE RTIFIED MINORITY BUS INESS 22
	178	+	ENTERPRISES IN THOSE INDUSTRIES; 23
184	179
185		-	(2) AN ENTITY THAT:
	180	+	[(ii)] (III) the factors, including price, that will be used in evaluating 24
	181	+	proposals; and 25
186	182
187		-	(I) HAS GRADUATED OR OTH ERWISE IS NO LONGER CERTIFIED
188		-	UNDER THE TERMS OF T HE GRADUATION PROGRA M ESTABLISHED IN ACC ORDANCE
189		-	WITH § 14–303(B)(15) OF THIS SUBTITLE; AND LAWRENCE J. HOGAN, JR., Governor Ch. 155
	183	+	[(iii)] (IV) the relative importance of each factor. 26
190	184
191		-	– ~~5 –~~
	185	+	14–301. 27
192	186
193		-	(II) HAS BEEN AUTHORIZED TO RETAIN CERTIFICAT ION UNDER
194		-	§ 9–305(B)(7) OF THE STATE GOVERNMENT ARTICLE.
	187	+	(f) “Minority business enterprise” means: 28
195	188
196		-	(E–1) “INDUSTRY TYPE ” MEANS THE FOLLOWING PROCUREMENT
197		-	CATEGORIES:
	189	+	(1) any legal entity, except a joint venture, that is: 29
198	190
199		-	(1) CONSTRUCTION ;
	191	+	[(1)] (I) organized to engage in commercial transactions; 30
	192	+	HOUSE BILL 389 5
200	193
201		-	(2) ARCHITECTURAL AND EN GINEERING SERVICES A ND OTHER
202		-	CONSTRUCTION –RELATED PROFESSIONAL SERVICES;
203	194
204		-	(3) MAINTENANCE ;
	195	+	[(2)] (II) at least 51% owned and controlled by 1 or more individuals who 1
	196	+	are socially and economically disadvantaged; and 2
205	197
206		-	(4) INFORMATION TECHNOLO GY;
	198	+	[(3)] (III) managed by, and the daily business operations of which are 3
	199	+	controlled by, one or more of the socially and economically disadvantaged individuals who 4
	200	+	own it; OR 5
207	201
208		-	(5) ~~SERVICES; AND~~
	202	+	(2) AN ENTITY THAT: 6
209	203
210		-	(6) GOODS, SUPPLIES, AND EQUIPMENT .
	204	+	(I) HAS GRADUATED OR OTH ERWISE IS NO LONGER CERTIFIED 7
	205	+	UNDER THE TERMS OF T HE GRADUATION PROGRA M ESTABLISH ED IN ACCORDANCE 8
	206	+	WITH § 14–303(B)(15) OF THIS SUBTITLE; AND 9
211	207
212		-	14–302.
	208	+	(II) HAS BEEN AUTHORIZED TO RETAIN CERTIFICAT ION UNDER 10
	209	+	§ 9–305(B)(7) OF THE STATE GOVERNMENT ARTICLE. 11
213	210
214		-	(a) (1) (i) 1. Except for leases of real property, each unit shall structure
215		-	procurement procedures, consistent with the purposes of this subtitle, to try to achieve an
216		-	overall percentage goal of the unit’s total dollar value of procurement contracts being made
217		-	directly or indirectly to certified minority business enterprises.
	211	+	(E–1) “INDUSTRY TYPE ” MEANS THE FOLLOWING PROCUREMENT 12
	212	+	CATEGORIES: 13
218	213
219		-	2. Notwithstanding subsubparagraph 1 of this
220		-	subparagraph, the following contracts may not be counted as part of a unit’s total dollar
221		-	value of procurement contracts:
	214	+	(1) CONSTRUCTION ; 14
222	215
223		-	A. a ~~procurement contract awarded in accordance with~~
224		-	~~Subtitle 1 of this title~~;
	216	+	(2) ARCHITECTURAL AND EN GINEERING SERVICES A ND OTHER 15
	217	+	CONSTRUCTION –RELATED PROFESSIONAL SERVICES; 16
225	218
226		-	B. a procurement contract awarded to a nonprofit entity in
227		-	accordance with requirements mandated by State or federal law; and
	219	+	(3) MAINTENANCE ; 17
228	220
229		-	C. a procurement by the Maryland Developmental
230		-	Disabilities Administration of the Maryland Department of Health for family and
231		-	individual support services, community residential services, resource coordination services,
232		-	behavioral support services, vocational and day services, and respite services, as those
233		-	terms are defined in regulations adopted by the Maryland Department of Health.
	221	+	(4) INFORMATION TECHNOLO GY; 18
234	222
235		-	(ii) 1. The overall percentage goal shall be established on a
236		-	biennial basis by the Special Secretary for the Office of Small, Minority, and Women Ch. 155 2022 LAWS OF MARYLA ND
	223	+	(5) SERVICES; AND 19
237	224
238		-	– 6 –
239		-	Business Affairs, in consultation with the Secretary of Transportation and the Attorney
240		-	General.
	225	+	(6) GOODS, SUPPLIES, AND EQUIPMENT . 20
241	226
242		-	2. During any year in which there is a delay in establishing
243		-	the overall goal, the previous year’s goal will apply.
	227	+	14–302. 21
244	228
245		-	(~~III~~) 1. ~~IN CONSULTATION WITH THE SECRETARY~~ OF
246		-	~~TRANSPORTATION AND TH E ATTORNEY GENERAL,~~ THE ~~SPECIAL SECRETARY FOR~~
247		-	~~THE OFFICE~~ OF ~~SMALL, MINORITY,~~ ~~AND WOMEN BUSINESS AFFAIRS SHALL~~
248		-	~~ESTABLISH STATEWIDE GOALS BY INDUSTRY TY PE ON A BIENNIAL BAS IS~~.
	229	+	(a) (1) (i) 1. Except for leases of real property, each unit shall structure 22
	230	+	procurement procedures, consistent with the purposes of this subtitle, to try to achieve an 23
	231	+	overall percentage goal of the unit’s total dollar value of procurement contracts being made 24
	232	+	directly or indirectly to certified minority business enterprises. 25
249	233
250		-	2. IN ESTABLISHING STATE WIDE GOALS BY INDUST RY
251		-	TYPE, THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, MINORITY, AND
252		-	WOMEN BUSINESS AFFAIRS SHALL USE THE SAME METHODOLOGY USE D TO
253		-	DEVELOP THE OVERALL STATEWIDE GOAL UNDER SUBPARAGRAPH (II) OF THIS
254		-	PARAGRAPH , WITH CONSIDERATION G IVEN TO AVAILABILITY AND UTILIZATION OF
255		-	MINORITY BUSINESS EN TERPRISES IN TH E INDUSTRY.
	234	+	2. Notwithstanding subsubparagraph 1 of this 26
	235	+	subparagraph, the following contracts may not be counted as part of a unit’s total dollar 27
	236	+	value of procurement contracts: 28
256	237
257		-	3. DURING ANY YEAR IN WH ICH THERE IS A DELAY IN
258		-	ESTABLISHING THE STA TEWIDE GOALS BY INDU STRY TYPE, THE PREVIOUS YEAR ’S
259		-	GOALS WILL APPLY .
	238	+	A. a procurement contract awarded in accordance with 29
	239	+	Subtitle 1 of this title; 30 6 HOUSE BILL 389
260	240
261		-	[(iii)] (IV) 1. In consultation with the Secretary of
262		-	Transportation and the Attorney General, the Special Secretary for the Office of Small,
263		-	Minority, and Women Business Affairs shall establish guidelines on a biennial basis for
264		-	each unit to consider while determining whether to set subgoals for the minority groups
265		-	listed in § 14–301(k)(1)(i)1, 2, 3, 4, and 6 of this subtitle.
266	241
267		-	2. During any year in which there is a delay in establishing
268		-	the subgoal guidelines, the previous year’s subgoal guidelines will apply.
269	242
270		-	[(iv)] (V) 1. The Special Secretary for the Office of Small,
271		-	Minority, and Women Business Affairs, in consultation with the Secretary of
272		-	Transportation and the Attorney General, shall establish goals and subgoal guidelines that,
273		-	to the maximum extent feasible, approximate the level of minority business enterprise
274		-	participation that would be expected in the absence of discrimination.
	243	+	B. a procurement contract awarded to a nonprofit entity in 1
	244	+	accordance with requirements mandated by State or federal law; and 2
275	245
276		-	2. ~~In establishing overall goals and subgoal guidelines,~~ the
277		-	~~Special Secretary~~ for ~~the Office of Small, Minority,~~ and ~~Women Business Affairs shall~~
278		-	~~provide for public participation by consulting with minority~~, ~~women’s~~, ~~and general~~
279		-	~~contractor groups~~, ~~community organizations~~, and ~~other officials or organizations that could~~
280		-	~~be expected to have information concerning:~~
	246	+	C. a procurement by the Maryland Developmental 3
	247	+	Disabilities Administration of the Maryland Department of Health for family and 4
	248	+	individual support services, community residential services, resource coordination services, 5
	249	+	behavioral support services, vocational and day services, and respite services, as those 6
	250	+	terms are defined in regulations adopted by the Maryland Department of Health. 7
281	251
282		-	A. the availability of minority– and women–owned
283		-	businesses; LAWRENCE J. HOGAN, JR., Governor Ch. 155
	252	+	(ii) 1. The overall percentage goal shall be established on a 8
	253	+	biennial basis by the Special Secretary for the Office of Small, Minority, and Women 9
	254	+	Business Affairs, in consultation with the Secretary of Transportation and the Attorney 10
	255	+	General. 11
284	256
285		-	– 7 –
	257	+	2. During any year in which there is a delay in establishing 12
	258	+	the overall goal, the previous year’s goal will apply. 13
286	259
287		-	B. the effects of discrimination on opportunities for
288		-	minority– and women–owned businesses; and
	260	+	(III) 1. IN CONSULTATION WITH THE SECRETARY OF 14
	261	+	TRANSPORTATION AND TH E ATTORNEY GENERAL, THE SPECIAL SECRETARY FOR 15
	262	+	THE OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS SHALL 16
	263	+	ESTABLISH STATEWIDE GOALS BY INDUSTRY TY PE ON A BIENNIAL BAS IS. 17
289	264
290		-	C. the State’s operation of the Minority Business Enterprise
291		-	Program.
	265	+	2. IN ESTABLISHING STATE WIDE GOALS BY INDUST RY 18
	266	+	TYPE, THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, MINORITY, AND 19
	267	+	WOMEN BUSINESS AFFAIRS SHALL USE THE SAME METHODOLOGY USE D TO 20
	268	+	DEVELOP THE OVERALL STATEWIDE GOAL UNDER SUBPARAGRAPH (II) OF THIS 21
	269	+	PARAGRAPH , WITH CONSIDERATION G IVEN TO AVAILABILITY AND UTILIZATION OF 22
	270	+	MINORITY BUSINESS EN TERPRISES IN THE INDUSTR Y. 23
292	271
293		-	[(v)] (VI) In establishing overall goals, the factors to be considered
294		-	shall include:
	272	+	3. DURING ANY YEAR IN WH ICH THERE IS A DELAY IN 24
	273	+	ESTABLISHING THE STA TEWIDE GOALS BY INDU STRY TYPE, THE PREVIOUS YEAR ’S 25
	274	+	GOALS WILL APPLY . 26
295	275
296		-	1. the relative availability of minority– and women–owned
297		-	businesses to participate in State procurement as demonstrated by the State’s most recent
298		-	disparity study;
	276	+	[(iii)] (IV) 1. In consultation with the Secretary of 27
	277	+	Transportation and the Attorney General, the Special Secretary for the Office of Small, 28
	278	+	Minority, and Women Business Affairs shall establish guidelines on a biennial basis for 29
	279	+	each unit to consider while determining whether to set subgoals for the minority groups 30
	280	+	listed in § 14–301(k)(1)(i)1, 2, 3, 4, and 6 of this subtitle. 31
299	281
300		-	2. ~~past participation of minority business enterprises~~ in
301		-	~~State procurement~~, ~~except for procurement related to leases of real property; and~~
	282	+	2. During any year in which there is a delay in establishing 32
	283	+	the subgoal guidelines, the previous year’s subgoal guidelines will apply. 33
302	284
303		-	3. other factors that contribute to constitutional goal setting.
	285	+	[(iv)] (V) 1. The Special Secretary for the Office of Small, 34
	286	+	Minority, and Women Business Affairs, in consultation with the Secretary of 35
	287	+	Transportation and the Attorney General, shall establish goals and subgoal guidelines that, 36 HOUSE BILL 389 7
304	288
305		-	[(vi)] (VII) Notwithstanding § 12–101 of this article, the Special
306		-	Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt
307		-	regulations in accordance with Title 10, Subtitle 1 of the State Government Article setting
308		-	forth the State’s overall goal.
309	289
310		-	14–303.
	290	+	to the maximum extent feasible, approximate the level of minority business enterprise 1
	291	+	participation that would be expected in the absence of discrimination. 2
311	292
312		-	(a) (1) (i) In accordance with Title 10, Subtitle 1 of the State Government
313		-	Article, the Board shall adopt regulations consistent with the purposes of this Division II
314		-	to carry out the requirements of this subtitle.
	293	+	2. In establishing overall goals and subgoal guidelines, the 3
	294	+	Special Secretary for the Office of Small, Minority, and Women Business Affairs shall 4
	295	+	provide for public participation by consulting with minority, women’s, and general 5
	296	+	contractor groups, community organizations, and other officials or organizations that could 6
	297	+	be expected to have information concerning: 7
315	298
316		-	(ii) The Board shall keep a record of information regarding any
317		-	waivers requested in accordance with § 14–302(a)(9)(i) of this subtitle and subsection
318		-	(b)(12) of this section and submit a copy of the record to the General Assembly on or before
319		-	October 1 of each year, in accordance with § 2–1257 of the State Government Article.
	299	+	A. the availability of minority– and women–owned 8
	300	+	businesses; 9
320	301
321		-	(2) The regulations shall establish procedures to be followed by units,
322		-	prospective contractors, and successful bidders or offerors to maximize notice to, and the
323		-	opportunity to participate in the procurement process by, a broad range of minority
324		-	business enterprises.
	302	+	B. the effects of discrimination on opportunities for 10
	303	+	minority– and women–owned businesses; and 11
325	304
326		-	(b) These regulations shall include:
	305	+	C. the State’s operation of the Minority Business Enterprise 12
	306	+	Program. 13
327	307
328		-	(1) provisions:
	308	+	[(v)] (VI) In establishing overall goals, the factors to be considered 14
	309	+	shall include: 15
329	310
330		-	(i) designating one State agency to certify and decertify minority
331		-	business enterprises for all units through a single process that meets applicable federal Ch. 155 2022 LAWS OF MARYLA ND
	311	+	1. the relative availability of minority– and women–owned 16
	312	+	businesses to participate in State procurement as demonstrated by the State’s most recent 17
	313	+	disparity study; 18
332	314
333		-	– 8 –
334		-	requirements, including provisions that promote and facilitate the submission of some or
335		-	all of the certification application through an electronic process;
	315	+	2. past participation of minority business enterprises in 19
	316	+	State procurement, except for procurement related to leases of real property; and 20
336	317
337		-	(ii) for the purpose of certification under this subtitle, that promote
338		-	and facilitate certification of minority business enterprises that have received certification
339		-	from a federal or a county program that uses a certification process substantially similar
340		-	to the process established in accordance with item (i) of this item, including a provision that
341		-	provides for certification of a business as a minority business enterprise if the business:
	318	+	3. other factors that contribute to constitutional goal setting. 21
342	319
343		-	1. has obtained certification under the federal
344		-	Disadvantaged Business Enterprise Program; and
	320	+	[(vi)] (VII) Notwithstanding § 12–101 of this article, the Special 22
	321	+	Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt 23
	322	+	regulations in accordance with Title 10, Subtitle 1 of the State Government Article setting 24
	323	+	forth the State’s overall goal. 25
345	324
346		-	2. meets the eligibility requirements of the Minority
347		-	Business Enterprise Program;
	325	+	14–303. 26
348	326
349		-	(iii) requiring the agency designated to certify minority business
350		-	enterprises to complete the agency’s review of an application for certification and notify the
351		-	applicant of the agency’s decision within 90 days of receipt of a complete application that
352		-	includes all of the information necessary for the agency to make a decision; and
	327	+	(a) (1) (i) In accordance with Title 10, Subtitle 1 of the State Government 27
	328	+	Article, the Board shall adopt regulations consistent with the purposes of this Division II 28
	329	+	to carry out the requirements of this subtitle. 29
353	330
354		-	(iv) authorizing the agency designated to certify minority business
355		-	enterprises to extend the notification requirement established under item (iii) of this item
356		-	once, for no more than an additional 60 days, if the agency provides the applicant with a
357		-	written notice and explanation;
	331	+	(ii) The Board shall keep a record of information regarding any 30
	332	+	waivers requested in accordance with § 14–302(a)(9)(i) of this subtitle and subsection 31
	333	+	(b)(12) of this section and submit a copy of the record to the General Assembly on or before 32
	334	+	October 1 of each year, in accordance with § 2–1257 of the State Government Article. 33
	335	+	8 HOUSE BILL 389
358	336
359		-	(2) a requirement that the solicitation document accompanying each
360		-	solicitation:
361	337
362		-	(I) set forth the expected degree of minority business enterprise
363		-	participation based, in part, on the factors set forth in § 14–302(a)(3)(ii) of this subtitle;
364		-	AND
	338	+	(2) The regulations shall establish procedures to be followed by units, 1
	339	+	prospective contractors, and successful bidders or offerors to maximize notice to, and the 2
	340	+	opportunity to participate in the procurement process by, a broad range of minority 3
	341	+	business enterprises. 4
365	342
366		-	(II) INCLUDE A SUMMARY OF THE FACTORS USED TO
367		-	DETERMINE THE EXPECT ED DEGREE OF MINORIT Y BUSINESS ENTERPRIS E
368		-	PARTICIPATION , INCLUDING SUBCONTRAC TING OPPORTUNITIES I DENTIFIED FOR
369		-	THE PROJECT , ANY APPLICABLE NORTH AMERICAN INDUSTRY CLASSIFICATION
370		-	SYSTEM CODES LINKED T O THE SUBCONTRACTING OPPORTUNITIES , AND THE
371		-	NUMBER OF CERTIFIED MINORITY BUSINESS EN TERPRISES IN THOSE I NDUSTRIES;
	343	+	(b) These regulations shall include: 5
372	344
373		-	(3) a requirement that bidders or offerors complete a document setting
374		-	forth the percentage of the total dollar amount of the contract that the bidder or offeror
375		-	agrees will be performed by certified minority business enterprises;
	345	+	(1) provisions: 6
376	346
377		-	(4) a requirement that within 10 days after notice from the prime
378		-	contractor of the State’s intent to award a contract, each minority business enterprise LAWRENCE J. HOGAN, JR., Governor Ch. 155
	347	+	(i) designating one State agency to certify and decertify minority 7
	348	+	business enterprises for all units through a single process that meets applicable federal 8
	349	+	requirements, including provisions that promote and facilitate the submission of some or 9
	350	+	all of the certification application through an electronic process; 10
379	351
380		-	– 9 –
381		-	serving as a subcontractor on the contract complete a document setting forth the percentage
382		-	and type of work assigned to the subcontractor under the contract and submit copies of the
383		-	completed form to both the procurement officer and the contractor;
	352	+	(ii) for the purpose of certification under this subtitle, that promote 11
	353	+	and facilitate certification of minority business enterprises that have received certification 12
	354	+	from a federal or a county program that uses a certification process substantially similar 13
	355	+	to the process established in accordance with item (i) of this item, including a provision that 14
	356	+	provides for certification of a business as a minority business enterprise if the business: 15
384	357
385		-	(5) a requirement that the solicitation documents completed and submitted
386		-	by the bidder or offeror in connection with its minority business enterprise participation
387		-	commitment must be attached to and made a part of the contract;
	358	+	1. has obtained certification under the federal 16
	359	+	Disadvantaged Business Enterprise Program; and 17
388	360
389		-	(6) [(i) a requirement that all contracts containing minority business
390		-	enterprise participation goals shall contain a liquidated damages provision that applies in
391		-	the event that the contractor fails to comply in good faith with the provisions of this subtitle
392		-	or the pertinent terms of the applicable contract; and
	361	+	2. meets the eligibility requirements of the Minority 18
	362	+	Business Enterprise Program; 19
393	363
394		-	(ii) a provision that prohibits a unit from assessing liquidated
395		-	damages for an indefinite delivery contract or an indefinite performance contract if a unit
396		-	fails to request the performance or delivery of a task for which:
	364	+	(iii) requiring the agency designated to certify minority business 20
	365	+	enterprises to complete the agency’s review of an application for certification and notify the 21
	366	+	applicant of the agency’s decision within 90 days of receipt of a complete application that 22
	367	+	includes all of the information necessary for the agency to make a decision; and 23
397	368
398		-	1. a minority business enterprise subcontractor was named
399		-	on the participation schedule; or
	369	+	(iv) authorizing the agency designated to certify minority business 24
	370	+	enterprises to extend the notification requirement established under item (iii) of this item 25
	371	+	once, for no more than an additional 60 days, if the agency provides the applicant with a 26
	372	+	written notice and explanation; 27
400	373
401		-	2. a minority business enterprise subcontractor was named
402		-	on the participation schedule and qualified based on the subcontractor’s existing North
403		-	American Industry Classification System code;
	374	+	(2) a requirement that the solicitation document accompanying each 28
	375	+	solicitation: 29
404	376
405		-	(7)] a requirement that the unit provide a current list of certified minority
406		-	business enterprises to each prospective contractor;
	377	+	(I) set forth the expected degree of minority business enterprise 30
	378	+	participation based, in part, on the factors set forth in § 14–302(a)(3)(ii) of this subtitle; 31
	379	+	AND 32
407	380
408		-	[(8)] (7) provisions to ensure the uniformity of requests for bids on
409		-	subcontracts;
	381	+	(II) INCLUDE A SUMMARY OF THE FACTORS USED TO 33
	382	+	DETERMINE THE EXPECT ED DEGREE OF MINORIT Y BUSINESS ENTERPRIS E 34
	383	+	PARTICIPATION , INCLUDING SUBCONTRAC TING OPPORTUNITIES I DENTIFIED FOR 35 HOUSE BILL 389 9
410	384
411		-	[(9)] (8) provisions relating to the timing of requests for bids on
412		-	subcontracts and of submission of bids on subcontracts;
413	385
414		-	~~[(10)] (9) provisions designed to ensure that a fiscal disadvantage to~~ the
415		-	~~State does not result from an inadequate response by minority business enterprises to a~~
416		-	~~request for bids~~;
	386	+	THE PROJECT , ANY APPLICABLE NORTH AMERICAN INDUSTRY CLASSIFICATION 1
	387	+	SYSTEM CODES LINKED T O THE SUBCONTRACTING OPPORTUNITIES , AND THE 2
	388	+	NUMBER OF CERTIFIED MINORITY BUSINESS EN TERPRISES IN THOSE I NDUSTRIES; 3
417	389
418		-	~~[(11)]~~ (10) ~~provisions relating to joint ventures, under which~~ a ~~bidder may~~
419		-	~~count toward meeting its minority business enterprise participation goal,~~ the ~~minority~~
420		-	business ~~enterprise portion of the joint venture~~;
	390	+	(3) a requirement that bidders or offerors complete a document setting 4
	391	+	forth the percentage of the total dollar amount of the contract that the bidder or offeror 5
	392	+	agrees will be performed by certified minority business enterprises; 6
421	393
422		-	[(12)] (11) consistent with § 14–302(a)(9) of this subtitle, provisions relating
423		-	to any circumstances under which a unit may waive obligations of the contractor relating
424		-	to minority business enterprise participation;
425		-	Ch. 155 2022 LAWS OF MARYLA ND
	394	+	(4) a requirement that within 10 days after notice from the prime 7
	395	+	contractor of the State’s intent to award a contract, each minority business enterprise 8
	396	+	serving as a subcontractor on the contract complete a document setting forth the percentage 9
	397	+	and type of work assigned to the subcontractor under the contract and submit copies of the 10
	398	+	completed form to both the procurement officer and the contractor; 11
426	399
427		-	– 10 –
428		-	[(13)] (12) provisions requiring a monthly submission to the unit by
429		-	minority business enterprises acknowledging all payments received in the preceding 30
430		-	days under a contract governed by this subtitle;
	400	+	(5) a requirement that the solicitation documents completed and submitted 12
	401	+	by the bidder or offeror in connection with its minority business enterprise participation 13
	402	+	commitment must be attached to and made a part of the contract; 14
431	403
432		-	[(14)] (13) a requirement that a unit shall verify and maintain data
433		-	concerning payments received by minority business enterprises, including a requirement
434		-	that, upon completion of a project, the unit shall compare the total dollar value actually
435		-	received by minority business enterprises with the amount of contract dollars initially
436		-	awarded, and an explanation of any discrepancies therein;
	404	+	(6) [(i) a requirement that all contracts containing minority business 15
	405	+	enterprise participation goals shall contain a liquidated damages provision that applies in 16
	406	+	the event that the contractor fails to comply in good faith with the provisions of this subtitle 17
	407	+	or the pertinent terms of the applicable contract; and 18
437	408
438		-	~~[(15)]~~ (14) a ~~requirement~~ that a unit ~~verify that minority business~~
439		-	~~enterprises listed in~~ a ~~successful bid are actually participating to the extent listed in the~~
440		-	~~project~~ for which ~~the bid was submitted;~~
	409	+	(ii) a provision that prohibits a unit from assessing liquidated 19
	410	+	damages for an indefinite delivery contract or an indefinite performance contract if a unit 20
	411	+	fails to request the performance or delivery of a task for which: 21
441	412
442		-	[(16)] (15) provisions establishing a graduation program based on the
443		-	financial viability of the minority business enterprise, using annual gross receipts or other
444		-	economic indicators as may be determined by the Board;
	413	+	1. a minority business enterprise subcontractor was named 22
	414	+	on the participation schedule; or 23
445	415
446		-	~~[(17)] (16)~~ a ~~requirement that a bid or proposal based on a solicitation with~~
447		-	~~an expected degree of minority business enterprise~~ participation ~~identify~~ the ~~specific~~
448		-	~~commitment of certified minority business enterprises at the time of submission~~;
	416	+	2. a minority business enterprise subcontractor was named 24
	417	+	on the participation schedule and qualified based on the subcontractor’s existing North 25
	418	+	American Industry Classification System code; 26
449	419
450		-	[(18)] ~~(17) provisions promoting and providing for~~ the ~~counting and~~
451		-	~~reporting of certified minority~~ business enterprises ~~as prime contractors~~;
	420	+	(7)] a requirement that the unit provide a current list of certified minority 27
	421	+	business enterprises to each prospective contractor; 28
452	422
453		-	[(19)] (18) provisions ~~establishing standards~~ to ~~require a minority business~~
454		-	~~enterprise to perform a commercially useful function on a contract~~;
	423	+	[(8)] (7) provisions to ensure the uniformity of requests for bids on 29
	424	+	subcontracts; 30
455	425
456		-	[(20)] (19) a requirement that each unit work with the Governor’s Office of
457		-	Small, Minority, and Women Business Affairs to designate certain procurements as being
458		-	excluded from the requirements of § 14–302(a) of this subtitle;
	426	+	[(9)] (8) provisions relating to the timing of requests for bids on 31
	427	+	subcontracts and of submission of bids on subcontracts; 32
459	428
460		-	[(21)] (20) provisions promoting and providing for the counting and
461		-	reporting of minority business enterprises certified as both a woman–owned business and
462		-	a business owned by a member of an ethnic or racial group in accordance with §
463		-	14–302(a)(5) of this subtitle; and
	429	+	[(10)] (9) provisions designed to ensure that a fiscal disadvantage to the 33
	430	+	State does not result from an inadequate response by minority business enterprises to a 34
	431	+	request for bids; 35 10 HOUSE BILL 389
464	432
465		-	[(22)] (21) other provisions that the Board considers necessary or
466		-	appropriate to encourage participation by minority business enterprises and to protect the
467		-	integrity of the procurement process.
468	433
469		-	(c) The regulations adopted under this section shall specify that:
470	434
471		-	(1) a unit may not allow a business to participate as if it were a certified
472		-	minority business enterprise if the business’s certification is pending; AND LAWRENCE J. HOGAN, JR., Governor Ch. 155
	435	+	[(11)] (10) provisions relating to joint ventures, under which a bidder may 1
	436	+	count toward meeting its minority business enterprise participation goal, the minority 2
	437	+	business enterprise portion of the joint venture; 3
473	438
474		-	– 11 –
	439	+	[(12)] (11) consistent with § 14–302(a)(9) of this subtitle, provisions relating 4
	440	+	to any circumstances under which a unit may waive obligations of the contractor relating 5
	441	+	to minority business enterprise participation; 6
475	442
476		-	(2) A ~~UNIT SHALL ALLOW A BUSINESS~~ TO ~~PARTICIP ATE AS A~~
477		-	~~CERTIFIED~~ MINORITY ~~B USINESS ENTERPRISE I F~~ THE ~~CERTIFICATION HAS BEEN~~
478		-	~~GRANTED~~ UNDER § 9~~–305(B)(7) OF THE STATE GOVERNMENT ARTICLE.~~
	443	+	[(13)] (12) provisions requiring a monthly submission to the unit by 7
	444	+	minority business enterprises acknowledging all payments received in the preceding 30 8
	445	+	days under a contract governed by this subtitle; 9
479	446
480		-	14–305.
	447	+	[(14)] (13) a requirement that a unit shall verify and maintain data 10
	448	+	concerning payments received by minority business enterprises, including a requirement 11
	449	+	that, upon completion of a project, the unit shall compare the total dollar value actually 12
	450	+	received by minority business enterprises with the amount of contract dollars initially 13
	451	+	awarded, and an explanation of any discrepancies therein; 14
481	452
482		-	(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to
483		-	the Governor’s Office of Small, Minority, and Women Business Affairs, the certification
484		-	agency, and, subject to § 2–1257 of the State Government Article, the Joint Committee on
485		-	Fair Practices and Personnel Oversight.
	453	+	[(15)] (14) a requirement that a unit verify that minority business 15
	454	+	enterprises listed in a successful bid are actually participating to the extent listed in the 16
	455	+	project for which the bid was submitted; 17
486	456
487		-	(2) A report under this subsection shall for the preceding fiscal year:
	457	+	[(16)] (15) provisions establishing a graduation program based on the 18
	458	+	financial viability of the minority business enterprise, using annual gross receipts or other 19
	459	+	economic indicators as may be determined by the Board; 20
488	460
489		-	(i) state the total number and value of procurement contracts
490		-	between the unit and certified minority business enterprises, by specific category of
491		-	minority business enterprise AND BY INDUSTRY TYPE , including whether the minority
492		-	business enterprise participated as a prime contractor or as a subcontractor;
	461	+	[(17)] (16) a requirement that a bid or proposal based on a solicitation with 21
	462	+	an expected degree of minority business enterprise participation identify the specific 22
	463	+	commitment of certified minority business enterprises at the time of submission; 23
493	464
494		-	(ii) indicate the percentage that those procurement contracts
495		-	represent, by specific category of minority business enterprise AND BY INDUSTRY TYPE ,
496		-	of the total number and value of procurement contracts;
	465	+	[(18)] (17) provisions promoting and providing for the counting and 24
	466	+	reporting of certified minority business enterprises as prime contractors; 25
497	467
498		-	(iii) state the total number and the names of certified minority
499		-	business enterprises that participated as prime contractors or as subcontractors on
500		-	procurement contracts awarded by a unit;
	468	+	[(19)] (18) provisions establishing standards to require a minority business 26
	469	+	enterprise to perform a commercially useful function on a contract; 27
501	470
502		-	(iv) ~~for~~ each ~~minority business included in~~ the ~~report under item (iii)~~
503		-	~~of this paragraph~~, ~~list all procurement contracts awarded by a unit~~ to ~~the minority business~~
504		-	~~enterprise, including a description~~ of ~~the contract AND INDUSTRY TYPE~~ ; ~~[and]~~
	471	+	[(20)] (19) a requirement that each unit work with the Governor’s Office of 28
	472	+	Small, Minority, and Women Business Affairs to designate certain procurements as being 29
	473	+	excluded from the requirements of § 14–302(a) of this subtitle; 30
505	474
506		-	(V) PROVIDE THE RESULTS OF EACH COMPLIANCE ASSESSMEN T
507		-	CONDUCTED BY THE UNI T UNDER § 14–303(B)(14)(B)(15) OF THIS SUBTITLE ,
508		-	INCLUDING FOR EACH C ONTRACT COMPLETED DU RING THE FISCAL YEAR :
	475	+	[(21)] (20) provisions promoting and providing for the counting and 31
	476	+	reporting of minority business enterprises certified as both a woman–owned business and 32
	477	+	a business owned by a member of an ethnic or racial group in accordance with § 33
	478	+	14–302(a)(5) of this subtitle; and 34
	479	+	HOUSE BILL 389 11
509	480
510		-	1. THE NAMES OF EACH PR IME CONTRACTOR AND E ACH
511		-	MINORITY BUSINESS SUBCONTRACTOR THAT PARTICIPATED IN THE CONTRACT ;
512	481
513		-	2. THE TYPE OF GOOD OR SERVICE PROVIDED BY THE
514		-	CONTRACT;
	482	+	[(22)] (21) other provisions that the Board considers necessary or 1
	483	+	appropriate to encourage participation by minority business enterprises and to protect the 2
	484	+	integrity of the procurement process. 3
515	485
516		-	3. THE MINORITY BUSINES S ENTERPRISE
517		-	PARTICIPATION GOAL F OR THE CONTRACT ;
518		-	Ch. 155 2022 LAWS OF MARYLA ND
	486	+	(c) The regulations adopted under this section shall specify that: 4
519	487
520		-	– 12 –
521		-	4. WHETHER A WAIVER WAS GRANTED FOR THE
522		-	MINORITY BUSINESS EN TERPRISE PARTICIPATI ON GOAL;
	488	+	(1) a unit may not allow a business to participate as if it were a certified 5
	489	+	minority business enterprise if the business’s certification is pending; AND 6
523	490
524		-	~~5. THE TOTAL DOLLAR VAL UE OF PAYMENTS MADE~~ TO
525		-	~~EACH PRIME CONTRACTO R AND BY EACH PRIME CONTRACTOR TO EACH~~
526		-	~~SUBCONTRACTOR DURING~~ THE ~~CONTRACT TERM ;~~
	491	+	(2) A UNIT SHALL ALLOW A BUSINESS TO PARTICIP ATE AS A 7
	492	+	CERTIFIED MINORITY B USINESS ENTERPRISE I F THE CERTIFICATION HAS BEEN 8
	493	+	GRANTED UNDER § 9–305(B)(7) OF THE STATE GOVERNMENT ARTICLE. 9
527	494
528		-	6. WHETHER EACH SUBCONT RACTOR IS A CERTIFIE D
529		-	MINORITY BUSINESS EN TERPRISE; AND
	495	+	14–305. 10
530	496
531		-	7. IF APPLICABLE, A DESCRIPTION OF FACTORS T HAT
532		-	MAY HAVE CONTRIBUTED TO FAILURE TO ACHIEV E THE MINORITY BUSIN ESS
533		-	ENTERPRISE PARTICIPA TION GOAL FOR THE CO NTRACT, INCLUDING DOCUMENTED
534		-	NONPERFORMANCE OR UN AVAILABILITY OF A MI NORITY BUSINESS ENTE RPRISE;
535		-	AND
	497	+	(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 11
	498	+	the Governor’s Office of Small, Minority, and Women Business Affairs, the certification 12
	499	+	agency, and, subject to § 2–1257 of the State Government Article, the Joint Committee on 13
	500	+	Fair Practices and Personnel Oversight. 14
536	501
537		-	[(v)] (VI) contain other such information as required by the
538		-	Governor’s Office of Small, Minority, and Women Business Affairs and the certification
539		-	agency and approved by the Board.
	502	+	(2) A report under this subsection shall for the preceding fiscal year: 15
540	503
541		-	(3) As to procurement contracts for architectural services and engineering
542		-	services reported under paragraph (2) of this subsection, the report shall identify by
543		-	separate category of minority business enterprise procurements for:
	504	+	(i) state the total number and value of procurement contracts 16
	505	+	between the unit and certified minority business enterprises, by specific category of 17
	506	+	minority business enterprise AND BY INDUSTRY TYPE , including whether the minority 18
	507	+	business enterprise participated as a prime contractor or as a subcontractor; 19
544	508
545		-	(i) architectural services; and
	509	+	(ii) indicate the percentage that those procurement contracts 20
	510	+	represent, by specific category of minority business enterprise AND BY INDUSTRY TYPE , 21
	511	+	of the total number and value of procurement contracts; 22
546	512
547		-	(ii) engineering services.
	513	+	(iii) state the total number and the names of certified minority 23
	514	+	business enterprises that participated as prime contractors or as subcontractors on 24
	515	+	procurement contracts awarded by a unit; 25
548	516
549		-	(4) A report under ~~this subsection shall be in a form prescribed by the~~
550		-	~~Governor’s Office~~ of ~~Small~~, Minority~~, and Women~~ Business ~~Affairs and the certification~~
551		-	~~agency~~ and ~~approved by the Board.~~
	517	+	(iv) for each minority business included in the report under item (iii) 26
	518	+	of this paragraph, list all procurement contracts awarded by a unit to the minority business 27
	519	+	enterprise, including a description of the contract AND INDUSTRY TYPE; [and] 28
552	520
553		-	(5) THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL,
554		-	MINORITY, AND WOMEN BUSINESS AFFAIRS MAY WAIVE THE REQUIREMENT FOR A
555		-	UNIT TO REPORT MINOR ITY BUSINESS PARTICI PATION BY INDUSTRY T YPE UNDER
556		-	PARAGRAPH (2) OF THIS SUBSECTION I F THE SPENDING THRES HOLD FOR THE
557		-	INDUSTRY TYPE IS TOO LOW FOR THE UNIT TO PROVIDE SUFFICIENT D ATA.
	521	+	(V) PROVIDE THE RESULTS OF EACH COMPLIANCE ASSESSMEN T 29
	522	+	CONDUCTED BY THE UNI T UNDER § 14–303(B)(14)(B)(15) OF THIS SUBTITLE , 30
	523	+	INCLUDING FOR EACH C ONTRACT COMPLETED DU RING THE FISCAL YEAR : 31
558	524
559		-	(b) (1) On or before December 31 of each year, the Governor’s Office of Small,
560		-	Minority, and Women Business Affairs shall submit to the Board of Public Works and,
561		-	subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a
562		-	report summarizing the information the Office receives under subsection (a) of this section.
563		-	LAWRENCE J. HOGAN, JR., Governor Ch. 155
	525	+	1. THE NAMES OF EACH PR IME CONTRACTOR AND E ACH 32
	526	+	MINORITY BUSINESS SUBCONTRACTOR THAT PARTICIPATED IN THE CONTRACT ; 33
	527	+	12 HOUSE BILL 389
564	528
565		-	– 13 –
566		-	(2) IF APPLICABLE, THE REPORT SUBMITTED UNDER PARAGRAPH (1)
567		-	OF THIS SUBSECTION S HALL INCLUDE MINORIT Y BUSINESS ENTERPRIS E
568		-	PARTICIPATION DATA F OR EACH UNIT BY INDU STRY TYPE.
569	529
570		-	(2~~) (3) This report may be prepared in conjunction with~~ the ~~annual~~
571		-	~~report required under § 9–306 of the State Government Article.~~
	530	+	2. THE TYPE OF GOOD OR SERVICE PROVIDED BY THE 1
	531	+	CONTRACT; 2
572	532
573		-	(C) (1) IN THIS SUBSECTION , “MITIGATING FACTORS ” INCLUDES
574		-	DOCUMENTED NONPERFOR MANCE OR UNAVAILABIL ITY OF A MINORITY BU SINESS
575		-	ENTERPRISE DESIGNATE D FOR A CONTRACT .
	533	+	3. THE MINORITY BUSINES S ENTERPRISE 3
	534	+	PARTICIPATION GOAL F OR THE CONTRACT ; 4
576	535
577		-	(2) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN
578		-	BUSINESS AFFAIRS SHALL MAINTAIN AND P UBLISH ON ITS WEBSITE A LIST OF
579		-	PRIME CONTRACTORS WH O, BASED ON THE RESULTS OF THE COMPLIANCE
580		-	ASSESSMENTS RECEIVED UNDER SUBSECTION (A)(2)(V) OF THIS SECTION ,
581		-	PERSISTENTLY FAIL AND THE OFFICE OF STATE PROCUREMENT IN THE
582		-	DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE OFFICE OF
583		-	THE ATTORNEY GENERAL AND THE BOARD OF PUBLIC WORKS, SHALL ADOPT BY
584		-	REGULATION CRITERIA USED TO DETERMINE TH AT A PRIME CONTRACTO R HAS
585		-	PERSISTENTLY FAILED TO MEET CONTRACT GOA LS IN THE ABSENCE OF MITIGATING
586		-	FACTORS.
	536	+	4. WHETHER A WAIVER WAS GRANTED FOR THE 5
	537	+	MINORITY BUSINESS ENT ERPRISE PARTICIPATIO N GOAL; 6
587	538
588		-	~~(3)~~ THE ~~SPECIAL SECRETARY FOR THE OFFICE~~ OF ~~SMALL,~~
589		-	~~MINORITY,~~ AND ~~WOMEN BUSINESS AFFAIRS MAY ADOPT REG ULATIONS NECESSARY~~
590		-	~~TO CARRY OUT~~ THE ~~REQ UIREMENTS OF THIS SU BSECTION.~~
	539	+	5. THE TOTAL DOLLAR VAL UE OF PAYMENTS MADE TO 7
	540	+	EACH PRIME CONTRACTO R AND BY EACH PRIME CONTRACTOR TO EACH 8
	541	+	SUBCONTRACTOR DURING THE CONTRACT TERM ; 9
591	542
592		-	(3) THE CRITERIA ADOPTED UNDER PARAGRAPH (2) OF THIS
593		-	SUBSECTION SHALL INC LUDE THE RESULTS OF THE COMPLIANCE ASSES SMENTS
594		-	MADE UNDER SUBSECTIO N (A)(2)(V) OF THIS SECTION.
	543	+	6. WHETHER EACH SUBCONT RACTOR IS A CERTIFIE D 10
	544	+	MINORITY BUSINESS ENTERPRI SE; AND 11
595	545
596		-	~~(4) THE GOVERNOR’S OFFICE~~ OF ~~SMALL, MINORITY,~~ ~~AND WOMEN~~
597		-	~~BUSINESS AFFAIRS SHALL REFER P RIME CONTRACTORS IDEN TIFIED UNDER~~ THE
598		-	~~CRITERIA ADOPTED UND ER PARAGRAPH (2) OF THIS SUBSECTION T O~~ THE ~~OFFICE~~
599		-	~~OF THE ATTORNEY GENERAL FOR DEBARMENT UNDER § 16–203(D)(4)~~ OF ~~THIS~~
600		-	~~ARTICLE.~~
	546	+	7. IF APPLICABLE, A DESCRIPTION OF FAC TORS THAT 12
	547	+	MAY HAVE CONTRIBUTED TO FAILURE TO ACHIEV E THE MINORITY BUSIN ESS 13
	548	+	ENTERPRISE PARTICIPA TION GOAL FOR THE CO NTRACT, INCLUDING DOCUMENTED 14
	549	+	NONPERFORMANCE OR UN AVAILABILITY OF A MI NORITY BUSINESS ENTER PRISE; 15
	550	+	AND 16
601	551
602		-	14–502.
	552	+	[(v)] (VI) contain other such information as required by the 17
	553	+	Governor’s Office of Small, Minority, and Women Business Affairs and the certification 18
	554	+	agency and approved by the Board. 19
603	555
604		-	(f) ~~(1) The Special Secretary~~ for ~~the Office of Small, Minority,~~ and ~~Women~~
605		-	~~Business Affairs~~, ~~in consultation with~~ the ~~Attorney General,~~ shall ~~establish standards and~~
606		-	~~guidelines for participation in the Small~~ Business ~~Reserve Program every 5 years.~~
	556	+	(3) As to procurement contracts for architectural services and engineering 20
	557	+	services reported under paragraph (2) of this subsection, the report shall identify by 21
	558	+	separate category of minority business enterprise procurements for: 22
607	559
608		-	(2) THE STANDARDS AND GUI DELINES ESTABLISHED UNDER
609		-	PARAGRAPH (1) OF THIS SUBSECTION SHAL L ALLOW FOR THE REGI STRATION OF Ch. 155 2022 LAWS OF MARYLA ND
	560	+	(i) architectural services; and 23
610	561
611		-	– 14 –
612		-	BUSINESSES FOR PARTI CIPATION IN THE SMALL BUSINESS RESERVE PROGRAM
613		-	WITHOUT THE NEED TO FILE ANY ADDITIONAL PAPERWORK OTHER THAN EVIDENCE
614		-	THAT THE BUSINESS :
	562	+	(ii) engineering services. 24
615	563
616		-	(I) IS A SMALL BUSINESS UNDER THIS SUBTITL E; AND
	564	+	(4) A report under this subsection shall be in a form prescribed by the 25
	565	+	Governor’s Office of Small, Minority, and Women Business Affairs and the certification 26
	566	+	agency and approved by the Board. 27
617	567
618		-	(II) 1. IS CERTIFIED AS A MI NORITY BUSINESS ENTE RPRISE
619		-	UNDER SUBTITLE 3 OF THIS TITLE;
	568	+	(5) THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, 28
	569	+	MINORITY, AND WOMEN BUSINESS AFFAIRS MAY WAIVE THE REQUIREMENT FOR A 29
	570	+	UNIT TO REPORT MINOR ITY BUSINESS PARTICI PATION BY INDUSTRY T YPE UNDER 30
	571	+	PARAGRAPH (2) OF THIS SUBSECTION I F THE SPENDING THRES HOLD FOR THE 31
	572	+	INDUSTRY TYPE IS TOO LOW FOR THE UNIT TO PROVIDE SUFFICIENT DATA. 32
	573	+	HOUSE BILL 389 13
620	574
621		-	2. IS CERTIFIED UNDER T HE FEDERAL DISADVANTAGED
622		-	BUSINESS ENTERPRISE PROGRAM; OR
623	575
624		-	3. IS QUALIFIED AS A SM ALL BUSINESS UNDER
625		-	SUBTITLE 2 OF THIS TITLE.
	576	+	(b) (1) On or before December 31 of each year, the Governor’s Office of Small, 1
	577	+	Minority, and Women Business Affairs shall submit to the Board of Public Works and, 2
	578	+	subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a 3
	579	+	report summarizing the information the Office receives under subsection (a) of this section. 4
626	580
627		-	14–502.1.
	581	+	(2) IF APPLICABLE, THE REPORT SUBMITTED UNDER PARAGRAPH (1) 5
	582	+	OF THIS SUBSECTION S HALL INCLUDE MINORIT Y BUSINESS ENTERPRIS E 6
	583	+	PARTICIPATION DATA F OR EACH UNIT BY INDUSTR Y TYPE. 7
628	584
629		-	(A) (1) THIS SECTION APPLIES TO A PROCUREMENT BY ANY UNIT OR
630		-	AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT FOR GOODS,
631		-	SUPPLIES, SERVICES, MAINTENANCE , CONSTRUCTION , CONSTRUCTION –RELATED
632		-	SERVICES, ARCHITECTURAL SERVIC ES, OR ENGINEERING SERVI CES.
	585	+	(2) (3) This report may be prepared in conjunction with the annual 8
	586	+	report required under § 9–306 of the State Government Article. 9
633	587
634		-	(2) THIS SECTION DOES NOT APPL Y TO:
	588	+	(C) (1) IN THIS SUBSECTION , “MITIGATING FACTORS ” INCLUDES 10
	589	+	DOCUMENTED NONPERFOR MANCE OR UNA VAILABILITY OF A MIN ORITY BUSINESS 11
	590	+	ENTERPRISE DESIGNATE D FOR A CONTRACT . 12
635	591
636		-	(I) PROCUREMENTS MADE UN DER SUBTITLE 1 OF THIS TITLE;
	592	+	(2) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 13
	593	+	BUSINESS AFFAIRS SHALL MAINTAIN AND P UBLISH ON ITS WEBSIT E A LIST OF 14
	594	+	PRIME CONTRACTORS WH O, BASED ON THE RESULTS OF THE COMPLIANCE 15
	595	+	ASSESSMENTS RECEIVED UNDER SUBSECTION (A)(2)(V) OF THIS SECTION , 16
	596	+	PERSISTENTLY FAIL AND THE OFFICE OF STATE PROCUREMENT IN THE 17
	597	+	DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE OFFICE OF 18
	598	+	THE ATTORNEY GENERAL AND THE BOARD OF PUBLIC WORKS, SHALL ADOPT BY 19
	599	+	REGULATION CRITERIA USED TO DETERMINE TH AT A PRIME CONTRACTO R HAS 20
	600	+	PERSISTENTLY FAILED TO MEET CONTRACT GOA LS IN THE ABSENCE OF MITIGATING 21
	601	+	FACTORS. 22
637	602
638		-	(II) ~~PROCUREMENTS INVOLVI NG EXPENDITURES~~ OF ~~F EDERAL~~
639		-	~~DOLLARS~~, ~~TO THE EXTENT THAT I NCLUSION IN THE SMAL L~~ BUSINESS ~~RESERVE~~
640		-	~~PROGRAM CONFLICTS WI TH FEDERAL LAW OR GR ANT PROVISIONS ;~~
	603	+	(3) THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, 23
	604	+	MINORITY, AND WOMEN BUSINESS AFFAIRS MAY ADOPT REGULATIONS NECESSARY 24
	605	+	TO CARRY OUT THE REQ UIREMENTS OF THIS SU BSECTION. 25
641	606
642		-	(III) PROCUREMENTS WITH A TOTAL DOLLAR VALUE U NDER
643		-	$50,000;
	607	+	(3) THE CRITERIA ADOPTED UNDER PARAGRAPH (2) OF THIS 26
	608	+	SUBSECTION SHALL INC LUDE THE RESULTS OF THE COMPLIANCE ASSES SMENTS 27
	609	+	MADE UNDER SUBSECTIO N (A)(2)(V) OF THIS SECTION. 28
644	610
645		-	(IV) THE PROCUR EMENT OF HUMAN , SOCIAL, CULTURAL, OR
646		-	EDUCATIONAL SERVICES ; OR
	611	+	(4) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 29
	612	+	BUSINESS AFFAIRS SHALL REFER P RIME CONTRACTORS IDE NTIFIED UNDER THE 30
	613	+	CRITERIA ADOPTED UND ER PARAGRAPH (2) OF THIS SUBSECTION T O THE OFFICE 31
	614	+	OF THE ATTORNEY GENERAL FOR DEBARMENT UNDER § 16–203(D)(4) OF THIS 32
	615	+	ARTICLE. 33
647	616
648		-	~~(V) TERM AND MASTER CONT RACTS EXEMPTED UNDER~~
649		-	~~SUBSECTION (C) OF THIS SECTION.~~
	617	+	14–502. 34
	618	+	14 HOUSE BILL 389
650	619
651		-	(B) (1) A PROCUREMENT WITH A T OTAL DOLLAR VALUE BE TWEEN
652		-	$50,000 AND $500,000 SHALL BE DESIGNATED FOR THE SMALL BUSINESS RESERVE .
653		-	LAWRENCE J. HOGAN, JR., Governor Ch. 155
654	620
655		-	– 15 –
656		-	(2) EACH UNIT OR AGENCY S HALL IMPLEMENT THIS SUBSECTION IN
657		-	A MANNER CONSISTENT WITH ALL APPLICABLE STATUTES, INCLUDING THE
658		-	REQUIREMENTS OF SUBTITLE 3 OF THIS TITLE.
	621	+	(f) (1) The Special Secretary for the Office of Small, Minority, and Women 1
	622	+	Business Affairs, in consultation with the Attorney General, shall establish standards and 2
	623	+	guidelines for participation in the Small Business Reserve Program every 5 years. 3
659	624
660		-	(C) (1) A PROCUREMENT MAY BE E XEMPT FROM DESIGNATI ON UNDER
661		-	SUBSECTION (B) OF THIS SECTION IF T HE GOVERNOR’S OFFICE OF SMALL,
662		-	MINORITY, AND WOMEN BUSINESS AFFAIRS CERTIFIES , CONCURRENTLY WITH
663		-	REVIEW OF ANY WAIVER DETERMINATIONS FOR C ERTIFIED MINORITY BU SINESS
664		-	ENTERPRISE PARTICIPA TION CONTRACT GOALS , THAT IT IS NOT PRACT ICABLE TO
665		-	DO SO.
	625	+	(2) THE STANDARDS AND GUI DELINES ESTABLISHED UNDER 4
	626	+	PARAGRAPH (1) OF THIS SUBSECTION S HALL ALLOW FOR THE R EGISTRATION OF 5
	627	+	BUSINESSES FOR PARTI CIPATION IN THE SMALL BUSINESS RESERVE PROGRAM 6
	628	+	WITHOUT THE NEED TO FILE ANY ADDITIONAL PAPERWORK OTHER THAN EV IDENCE 7
	629	+	THAT THE BUSINESS : 8
666	630
667		-	(2) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF
668		-	GENERAL SERVICES SHALL ASSIST THE GOVERNOR’S OFFICE OF SMALL,
669		-	MINORITY, AND WOMEN BUSINESS AFFAIRS IN ESTABLISHI NG PROCEDURES AND
670		-	GUIDELINES FOR THE E XEMPTION OF PROCUREM ENTS UNDER PARAGRAPH (1) OF
671		-	THIS SUBSECTION .
	631	+	(I) IS A SMALL BUSINESS UNDER THIS SUBTITLE ; AND 9
672	632
673		-	Part IV. [Construction Contracts –] Prompt Payment of Subcontractors.
	633	+	(II) 1. IS CERTIFIED AS A MI NORITY BUSINESS ENTE RPRISE 10
	634	+	UNDER SUBTITLE 3 OF THIS TITLE; 11
674	635
675		-	15–226.
	636	+	2. IS CERTIFIED UNDER T HE FEDERAL DISADVANTAGED 12
	637	+	BUSINESS ENTERPRISE PROGRAM; OR 13
676	638
677		-	(a) In this section, “undisputed amount” means an amount owed by a contractor
678		-	to a subcontractor for which there is no good faith dispute, including any retainage
679		-	withheld.
	639	+	3. IS QUALIFIED AS A SM ALL BUSINESS UNDER 14
	640	+	SUBTITLE 2 OF THIS TITLE. 15
680	641
681		-	(b) It is the policy of the State that, for work under a State procurement contract
682		-	[for construction]:
	642	+	14–502.1. 16
683	643
684		-	(1) a contractor shall promptly pay to a subcontractor any undisputed
685		-	amount to which the subcontractor is entitled; and
	644	+	(A) (1) THIS SECTION APPLIES TO A PROCUREMENT BY ANY UNIT OR 17
	645	+	AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT FOR GOODS, 18
	646	+	SUPPLIES, SERVICES, MAINTENANCE, CONSTRUCTION , CONSTRUCTION –RELATED 19
	647	+	SERVICES, ARCHITECTURAL SERVIC ES, OR ENGINEERING SERVI CES. 20
686	648
687		-	(2) a subcontractor shall promptly pay to a lower tier subcontractor any
688		-	undisputed amount to which the lower tier subcontractor is entitled.
	649	+	(2) THIS SECTION DOES NOT APPLY TO: 21
689	650
690		-	(c) (1) A contractor shall pay a subcontractor an undisputed amount to which
691		-	the subcontractor is entitled within 10 days of receiving a progress or final payment from
692		-	the State.
	651	+	(I) PROCUREMENTS MADE UN DER SUBTITLE 1 OF THIS TITLE; 22
693	652
694		-	(2) If a contractor withholds payment from a subcontractor, within the time
695		-	period in which payment normally would be made, the contractor shall:
	653	+	(II) PROCUREMENTS INVOLVI NG EXPENDITURES OF F EDERAL 23
	654	+	DOLLARS, TO THE EXTENT THAT I NCLUSION IN THE SMAL L BUSINESS RESERVE 24
	655	+	PROGRAM CONFLICTS WI TH FEDERAL LAW OR GR ANT PROVISIONS ; 25
696	656
697		-	(i) ~~notify the subcontractor in writing and state the reason why~~
698		-	~~payment is being withheld~~; ~~and~~
	657	+	(III) PROCUREMENTS WITH A TOTAL DOLLAR VALUE U NDER 26
	658	+	$50,000; 27
699	659
700		-	(ii) provide a copy of the notice to the procurement officer. Ch. 155 2022 LAWS OF MARYLA ND
	660	+	(IV) THE PROCUR EMENT OF HUMAN , SOCIAL, CULTURAL, OR 28
	661	+	EDUCATIONAL SERVICES ; OR 29
701	662
702		-	– 16 –
	663	+	(V) TERM AND MASTER CONT RACTS EXEMPTED UNDER 30
	664	+	SUBSECTION (C) OF THIS SECTION. 31
	665	+	HOUSE BILL 389 15
703	666
704		-	(d) (1) If a subcontractor does not receive a payment within the required time
705		-	period, the subcontractor may give written notice of the nonpayment to the procurement
706		-	officer.
707	667
708		-	(2) The notice shall:
	668	+	(B) (1) A PROCUREMENT WITH A T OTAL DOLLAR VALUE BE TWEEN 1
	669	+	$50,000 AND $500,000 SHALL BE DESIGNATED FOR THE SMALL BUSINE SS RESERVE. 2
709	670
710		-	(i) indicate the name of the contractor, the project under which the
711		-	dispute exists, and the amount in dispute;
	671	+	(2) EACH UNIT OR AGENCY S HALL IMPLEMENT THIS SUBSECTION IN 3
	672	+	A MANNER CONSISTENT WITH ALL APPLICABLE STATUTES, INCLUDING THE 4
	673	+	REQUIREM ENTS OF SUBTITLE 3 OF THIS TITLE. 5
712	674
713		-	(ii) provide an itemized description on which the amount is based;
714		-	and
	675	+	(C) (1) A PROCUREMENT MAY BE E XEMPT FROM DESIGNATI ON UNDER 6
	676	+	SUBSECTION (B) OF THIS SECTION IF T HE GOVERNOR’S OFFICE OF SMALL, 7
	677	+	MINORITY, AND WOMEN BUSINESS AFFAIRS CERTIFIES , CONCURRENTLY WITH 8
	678	+	REVIEW OF ANY WAIVER DETERMINATIONS FOR CERTIFIE D MINORITY BUSINESS 9
	679	+	ENTERPRISE PARTICIPA TION CONTRACT GOALS , THAT IT IS NOT PRACT ICABLE TO 10
	680	+	DO SO. 11
715	681
716		-	(iii) if known, provide an explanation for any dispute concerning
717		-	payment by the contractor.
	682	+	(2) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF 12
	683	+	GENERAL SERVICES SHALL ASSIST THE GOVERNOR’S OFFICE OF SMALL, 13
	684	+	MINORITY, AND WOMEN BUSINESS AFFAIRS IN ESTABLISHI NG PROCEDURES AND 14
	685	+	GUIDELINES FOR THE E XEMPTION OF PROCUREM ENTS UNDER PARAGRAPH (1) OF 15
	686	+	THIS SUBSECTION . 16
718	687
719		-	(e) (1) Within 2 business days of receipt of written notice from a subcontractor,
720		-	a representative of the unit designated by the procurement officer shall verbally contact
721		-	the contractor to ascertain whether the amount withheld is an undisputed amount.
	688	+	Part IV. [Construction Contracts –] Prompt Payment of Subcontractors. 17
722	689
723		-	(2) If the representative of the unit decides that a part or all of the amount
724		-	withheld is an undisputed amount, the representative of the unit shall instruct the
725		-	contractor to pay the subcontractor the undisputed amount within 3 business days.
	690	+	15–226. 18
726	691
727		-	(3) The representative of the unit shall verbally communicate to the
728		-	subcontractor the results of discussions with the contractor.
	692	+	(a) In this section, “undisputed amount” means an amount owed by a contractor 19
	693	+	to a subcontractor for which there is no good faith dispute, including any retainage 20
	694	+	withheld. 21
729	695
730		-	(4) If the contractor is instructed to pay the subcontractor and the
731		-	subcontractor is not paid within the time instructed under paragraph (2) of this subsection,
732		-	the subcontractor may report the nonpayment in writing to the procurement officer.
	696	+	(b) It is the policy of the State that, for work under a State procurement contract 22
	697	+	[for construction]: 23
733	698
734		-	(f) (1) If the subcontractor notifies the procurement officer under subsection
735		-	(e)(4) of this section that payment has not been made, the representative of the unit shall
736		-	schedule a meeting to discuss the dispute with the unit’s project manager, the contractor,
737		-	and the subcontractor:
	699	+	(1) a contractor shall promptly pay to a subcontractor any undisputed 24
	700	+	amount to which the subcontractor is entitled; and 25
738	701
739		-	(i) at a ~~time and location designated by the representative of the~~
740		-	~~unit; but~~
	702	+	(2) a subcontractor shall promptly pay to a lower tier subcontractor any 26
	703	+	undisputed amount to which the lower tier subcontractor is entitled. 27
741	704
742		-	(ii) not later than 10 days after receiving notice from the
743		-	subcontractor under subsection (e)(4) of this section.
	705	+	(c) (1) A contractor shall pay a subcontractor an undisputed amount to which 28
	706	+	the subcontractor is entitled within 10 days of receiving a progress or final payment from 29
	707	+	the State. 30
744	708
745		-	(2) ~~The purpose of~~ the ~~meeting is to establish why the contractor has not~~
746		-	~~paid~~ the ~~subcontractor in the required time period.~~
747		-	~~LAWRENCE J.~~ ~~HOGAN, JR., Governor Ch. 155~~
	709	+	(2) If a contractor withholds payment from a subcontractor, within the time 31
	710	+	period in which payment normally would be made, the contractor shall: 32
	711	+	16 HOUSE BILL 389
748	712
749		-	– 17 –
750		-	(3) The representative of the unit shall require the parties to provide at the
751		-	meeting any information that the representative believes necessary to evaluate the dispute.
752	713
753		-	(4) If the representative of the unit determines that the contractor is
754		-	delinquent in payment of an undisputed amount to the subcontractor, further progress
755		-	payments to the contractor may be withheld until the subcontractor is paid.
	714	+	(i) notify the subcontractor in writing and state the reason why 1
	715	+	payment is being withheld; and 2
756	716
757		-	(5) If payment is not paid to the subcontractor within 7 days after the
758		-	representative of the unit determines that the contractor is delinquent in paying the
759		-	subcontractor under this subsection, the representative shall schedule a second meeting to
760		-	address the dispute:
	717	+	(ii) provide a copy of the notice to the procurement officer. 3
761	718
762		-	(i) at a time and location designated by the representative of the
763		-	unit; but
	719	+	(d) (1) If a subcontractor does not receive a payment within the required time 4
	720	+	period, the subcontractor may give written notice of the nonpayment to the procurement 5
	721	+	officer. 6
764	722
765		-	(ii) ~~not later than 5 days after~~ the ~~close of the~~ 7~~–day period.~~
	723	+	(2) The notice shall: 7
766	724
767		-	(6) If, at the completion of the second meeting, the representative of the
768		-	unit determines that the contractor continues to be delinquent in payments owed to the
769		-	subcontractor, the representative:
	725	+	(i) indicate the name of the contractor, the project under which the 8
	726	+	dispute exists, and the amount in dispute; 9
770	727
771		-	(i) ~~shall order that further payments to~~ the ~~contractor not be~~
772		-	~~processed until payment to the subcontractor is verified;~~
	728	+	(ii) provide an itemized description on which the amount is based; 10
	729	+	and 11
773	730
774		-	(ii) ~~may order that work under the contract be suspended based on~~
775		-	~~the failure of~~ the contractor ~~to meet obligations under the contract; and~~
	731	+	(iii) if known, provide an explanation for any dispute concerning 12
	732	+	payment by the contractor. 13
776	733
777		-	(~~iii~~) ~~subject to paragraph (7)~~ of ~~this subsection~~, ~~may require that the~~
778		-	~~contractor pay~~ a ~~penalty to~~ the ~~subcontractor, in an amount not exceeding $100~~ ~~per day,~~
779		-	~~from~~ the ~~date that payment was required under subsection (e)(2) of this section~~.
	734	+	(e) (1) Within 2 business days of receipt of written notice from a subcontractor, 14
	735	+	a representative of the unit designated by the procurement officer shall verbally contact 15
	736	+	the contractor to ascertain whether the amount withheld is an undisputed amount. 16
780	737
781		-	(7) A ~~penalty may not be imposed under paragraph (6)(iii)~~ of ~~this~~
782		-	~~subsection for any period that~~ the representative of the unit ~~determines~~ the ~~subcontractor~~
783		-	~~was not diligent in reporting nonpayment~~ to the ~~procurement officer~~.
	738	+	(2) If the representative of the unit decides that a part or all of the amount 17
	739	+	withheld is an undisputed amount, the representative of the unit shall instruct the 18
	740	+	contractor to pay the subcontractor the undisputed amount within 3 business days. 19
784	741
785		-	(g) ~~(1) A contractor or a subcontractor may appeal a decision under subsection~~
786		-	~~(f)(6)~~ of ~~this section to~~ the ~~procurement officer~~.
	742	+	(3) The representative of the unit shall verbally communicate to the 20
	743	+	subcontractor the results of discussions with the contractor. 21
787	744
788		-	(2) The contractor shall comply with the procurement officer’s decision.
	745	+	(4) If the contractor is instructed to pay the subcontractor and the 22
	746	+	subcontractor is not paid within the time instructed under paragraph (2) of this subsection, 23
	747	+	the subcontractor may report the nonpayment in writing to the procurement officer. 24
789	748
790		-	(h) An act, failure to act, or decision of a procurement officer or a representative
791		-	of a unit concerning a payment dispute between a contractor and subcontractor or between
792		-	subcontractors under this section may not:
	749	+	(f) (1) If the subcontractor notifies the procurement officer under subsection 25
	750	+	(e)(4) of this section that payment has not been made, the representative of the unit shall 26
	751	+	schedule a meeting to discuss the dispute with the unit’s project manager, the contractor, 27
	752	+	and the subcontractor: 28
793	753
794		-	(1) ~~affect~~ the ~~rights~~ of the ~~contracting parties under any other provision of~~
795		-	~~law~~; ~~Ch.~~ ~~155 2022 LAWS OF MARYLA ND~~
	754	+	(i) at a time and location designated by the representative of the 29
	755	+	unit; but 30
796	756
797		-	– 18 –
	757	+	(ii) not later than 10 days after receiving notice from the 31
	758	+	subcontractor under subsection (e)(4) of this section. 32
	759	+	HOUSE BILL 389 17
798	760
799		-	(2) be used as evidence on the merits of a dispute between the unit and the
800		-	contractor or the contractor and subcontractor in any other proceeding; or
801	761
802		-	(3) result in liability against or prejudice the rights of the unit.
	762	+	(2) The purpose of the meeting is to establish why the contractor has not 1
	763	+	paid the subcontractor in the required time period. 2
803	764
804		-	(i) A decision of a procurement officer or a representative of the unit designated
805		-	by the procurement officer under this section is not subject to judicial review or the
806		-	provisions of Part III of this subtitle.
	765	+	(3) The representative of the unit shall require the parties to provide at the 3
	766	+	meeting any information that the representative believes necessary to evaluate the dispute. 4
807	767
808		-	(j) (1) A unit shall include in each State procurement contract [for
809		-	construction] a provision:
	768	+	(4) If the representative of the unit determines that the contractor is 5
	769	+	delinquent in payment of an undisputed amount to the subcontractor, further progress 6
	770	+	payments to the contractor may be withheld until the subcontractor is paid. 7
810	771
811		-	(i) governing prompt payment to subcontractors; and
	772	+	(5) If payment is not paid to the subcontractor within 7 days after the 8
	773	+	representative of the unit determines that the contractor is delinquent in paying the 9
	774	+	subcontractor under this subsection, the representative shall schedule a second meeting to 10
	775	+	address the dispute: 11
812	776
813		-	(ii) ~~requiring inclusion~~ of ~~a similar provision in each subcontract at~~
814		-	~~any tier.~~
	777	+	(i) at a time and location designated by the representative of the 12
	778	+	unit; but 13
815	779
816		-	(2) The contract provision shall establish procedures and remedies for the
817		-	resolution of payment disputes similar to the process and remedies prescribed in
818		-	subsections (c) through (g) of this section.
	780	+	(ii) not later than 5 days after the close of the 7–day period. 14
819	781
820		-	16–203.
	782	+	(6) If, at the completion of the second meeting, the representative of the 15
	783	+	unit determines that the contractor continues to be delinquent in payments owed to the 16
	784	+	subcontractor, the representative: 17
821	785
822		-	(d) A person may be debarred from entering into a contract with the State:
	786	+	(i) shall order that further payments to the contractor not be 18
	787	+	processed until payment to the subcontractor is verified; 19
823	788
824		-	(1) if the ~~Board finds that the person was established or operates in a~~
825		-	~~manner designed~~ to ~~evade~~ the ~~application of this title or to defeat the purpose of this title~~;
	789	+	(ii) may order that work under the contract be suspended based on 20
	790	+	the failure of the contractor to meet obligations under the contract; and 21
826	791
827		-	(2) if the person is a successor, assignee, subsidiary, or affiliate of a person
828		-	who is debarred or suspended;
	792	+	(iii) subject to paragraph (7) of this subsection, may require that the 22
	793	+	contractor pay a penalty to the subcontractor, in an amount not exceeding $100 per day, 23
	794	+	from the date that payment was required under subsection (e)(2) of this section. 24
829	795
830		-	(3) ~~EXCEPT AS PROVIDED U NDER ITEM~~ (4) OF THIS ~~SUBSECTION , for~~
831		-	~~one~~ of the ~~following violations of a contract provision if~~ the ~~Board believes it to be serious~~
832		-	~~enough~~ to ~~justify debarment:~~
	796	+	(7) A penalty may not be imposed under paragraph (6)(i ii) of this 25
	797	+	subsection for any period that the representative of the unit determines the subcontractor 26
	798	+	was not diligent in reporting nonpayment to the procurement officer. 27
833	799
834		-	(i) ~~the deliberate failure,~~ ~~without good cause,~~ ~~to perform in~~
835		-	~~accordance with~~ the ~~specifications, or within the time limit, provided in a contract; or~~
	800	+	(g) (1) A contractor or a subcontractor may appeal a decision under subsection 28
	801	+	(f)(6) of this section to the procurement officer. 29
836	802
837		-	(ii) within the preceding 5 years, the failure to perform or of
838		-	unsatisfactory performance in accordance with the terms of one or more contracts, unless
839		-	the failure to perform or unsatisfactory performance was caused by acts beyond the control
840		-	of the person;
	803	+	(2) The contractor shall comply with the procurement officer’s decision. 30
841	804
842		-	(4) FOR A PERIOD NOT EXC EEDING 3 YEARS IF THE PERSON
843		-	PERSISTENTLY FAILS T O MEET CONTRACT GOAL S IN THE ABSENCE OF MITIGATING LAWRENCE J. HOGAN, JR., Governor Ch. 155
	805	+	(h) An act, failure to act, or decision of a procurement officer or a representative 31
	806	+	of a unit concerning a payment dispute between a contractor and subcontractor or between 32
	807	+	subcontractors under this section may not: 33
	808	+	18 HOUSE BILL 389
844	809
845		-	– 19 –
846		-	FACTORS UNDER THE CR ITERIA ESTABLISHED U NDER § 14–305(C)(2) OF THIS
847		-	ARTICLE;
848	810
849		-	[(4)] (5) if the person is a competing contractor, or any officer, employee,
850		-	representative, agent, or consultant of any competing contractor who violates § 13–211 of
851		-	this article; or
	811	+	(1) affect the rights of the contracting parties under any other provision of 1
	812	+	law; 2
852	813
853		-	~~[(5)]~~ (6) ~~for any other cause that~~ the ~~Board determines to be so serious as~~
854		-	~~to affect~~ the ~~integrity of the procurement process.~~
	814	+	(2) be used as evidence on the merits of a dispute between the unit and the 3
	815	+	contractor or the contractor and subcontractor in any other proceeding; or 4
855	816
856		-	~~Article – State Government~~
	817	+	(3) result in liability against or prejudice the rights of the unit. 5
857	818
858		-	9–303.3.
	819	+	(i) A decision of a procurement officer or a representative of the unit designated 6
	820	+	by the procurement officer under this section is not subject to judicial review or the 7
	821	+	provisions of Part III of this subtitle. 8
859	822
860		-	(A) IN ~~THIS SECTION , “OMBUDSMAN~~ ~~” MEANS THE MINORITY BUSINESS~~
861		-	~~ENTERPRISE OMBUDSMAN IN THE OFFICE.~~
	823	+	(j) (1) A unit shall include in each State procurement contract [for 9
	824	+	construction] a provision: 10
862	825
863		-	(B) THERE IS A MINORITY BUSINESS ENTERPRISE OMBUDSMAN
864		-	APPOINTED BY THE SPECIAL SECRETARY.
	826	+	(i) governing prompt payment to subcontractors; and 11
865	827
866		-	(C) IN ACCORDANCE WITH TH E STATE BUDGET , THE SPECIAL SECRETARY
867		-	SHALL ALLOCATE THE S TAFF AND OFFICE RESOURCES TO T HE OMBUDSMAN
868		-	NECESSARY FOR THE OMBUDSMAN TO FULFILL THE DUTIES OF THE OMBUDSMAN .
	828	+	(ii) requiring inclusion of a similar provision in each subcontract at 12
	829	+	any tier. 13
869	830
870		-	(D) THE OMBUDSMAN SHALL :
	831	+	(2) The contract provision shall establish procedures and remedies for the 14
	832	+	resolution of payment disputes similar to the process and remedies prescribed in 15
	833	+	subsections (c) through (g) of this section. 16
871	834
872		-	(1) MAKE REASONABLE ASSIST THE PROCUREME NT OFFICER
873		-	MANAGING THE CONTRAC T IN ATTEMPTS TO RESOLVE DISPUTES BETWEEN
874		-	MINORITY BUSINESS EN TERPRISES AND PRIME CONTRACTORS , INCLUDING
875		-	DISPUTES OVER CONTRA CT SCOPE AND PAYMENT S; AND
	835	+	16–203. 17
876	836
877		-	(2) SERVE AS A RESOURCE TO MINORITY BUSINESS ENTERPRISE
878		-	LIAISONS, PROCUREMENT OFFICERS IN UNITS OF STATE GOVERNMENT , PRIME
879		-	CONTRACTORS , AND MINORITY BUSINES S ENTERPRISES IN RES OLVING DISPUTES
880		-	RELATED TO CONTRACTS THAT INCLUDE A MINOR ITY BUSINESS ENTERPR ISE
881		-	PARTICIPATION GOAL .; AND
	837	+	(d) A person may be debarred from entering into a contract with the State: 18
882	838
883		-	(3) CONDUCT TRAI NINGS FOR PROCUREMEN T OFFICERS IN UNITS OF
884		-	STATE GOVERNMENT ON E NFORCEMENT OF THE RE QUIREMENTS OF TITLE 14,
885		-	SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, INCLUDING THE
886		-	ASSESSMENT OF LIQUID ATED DAMAGES UNDER § 14–303(B)(6) OF THE STATE
887		-	FINANCE AND PROCUREMENT ARTICLE.
888		-	Ch. 155 2022 LAWS OF MARYLA ND
	839	+	(1) if the Board finds that the person was established or operates in a 19
	840	+	manner designed to evade the application of this title or to defeat the purpose of this title; 20
889	841
890		-	– 20 –
891		-	(E) IN RESOLVING A DISPUT E UNDER SUBSECTION (D) OF THIS SECTION ,
892		-	THE OMBUDSMAN MAY :
	842	+	(2) if the person is a successor, assignee, subsidiary, or affiliate of a person 21
	843	+	who is debarred or suspended; 22
893	844
894		-	(1) ~~COMPEL PRIME CONTRAC TORS AND MINORITY BU SINESS~~
895		-	~~ENTERPRISES~~ TO ~~PROVI DE DOCUMENTATION REL ATED TO CONTRACT~~
896		-	~~PERFORMANCE AND PAYM ENTS;~~ ~~AND~~
	845	+	(3) EXCEPT AS PROVIDED U NDER ITEM (4) OF THIS SUBSECTION , for 23
	846	+	one of the following violations of a contract provision if the Board believes it to be serious 24
	847	+	enough to justify debarment: 25
897	848
898		-	(2) ORDER ASSIST THE PROCUREME NT OFFICER MANAGING THE
899		-	CONTRACT IN ORDERING ANY RELEVANT PAYMENT S TO BE MADE IN CONJ UNCTION
900		-	WITH A DISPUTE RESOL UTION.
	849	+	(i) the deliberate failure, without good cause, to perform in 26
	850	+	accordance with the specifications, or within the time limit, provided in a contract; or 27
901	851
902		-	(F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION ,
903		-	WHEN RESOLVING A DIS PUTE UNDER SUBSECTI ON (D) OF THIS SECTION , THE
904		-	OMBUDSMAN MAY NOT DIS CLOSE INFORMATION RE CEIVED FROM A UNIT O F STATE
905		-	GOVERNMENT , PRIME CONTRACTOR , OR MINORITY BUSINESS ENTERPRISE
906		-	WITHOUT THE WRITTEN CONSENT OF THE PARTY FROM WHOM THE INFORM ATION
907		-	WAS OBTAINED .
	852	+	(ii) within the preceding 5 years, the failure to perform or of 28
	853	+	unsatisfactory performance in accordance with the terms of one or more contracts, unless 29
	854	+	the failure to perform or unsatisfactory performance was caused by acts beyond the control 30
	855	+	of the person; 31
	856	+	HOUSE BILL 389 19
908	857
909		-	(2) THE OMBUDSMAN MAY DISCLOSE I NFORMATION RECEIVED
910		-	UNDER THIS SECTION T O THE ASSISTANT ATTORNEY GENERAL ASSIGNED TO T HE
911		-	OFFICE.
912	858
913		-	9–305.
	859	+	(4) FOR A PERIOD NOT EXC EEDING 3 YEARS IF THE PERSON 1
	860	+	PERSISTENTLY FAILS T O MEET CONTRACT GOAL S IN THE ABSENCE OF MITIGATING 2
	861	+	FACTORS UNDER THE CR ITERIA ESTABLISHED U NDER § 14–305(C)(2) OF THIS 3
	862	+	ARTICLE; 4
914	863
915		-	(b) Subject to the limitations of any law that governs the activities of other units
916		-	of the Executive Branch of the State government, the Special Secretary shall:
	864	+	[(4)] (5) if the person is a competing contractor, or any officer, employee, 5
	865	+	representative, agent, or consultant of any competing contractor who violates § 13–211 of 6
	866	+	this article; or 7
917	867
918		-	(7) establish a mentoring program:
	868	+	[(5)] (6) for any other cause that the Board determines to be so serious as 8
	869	+	to affect the integrity of the procurement process. 9
919	870
920		-	(i) in which larger and more established minority businesses can
921		-	mentor start–up and small minority businesses; and
	871	+	Article – State Government 10
922	872
923		-	(ii) that incentivizes mentor participation by providing benefits to
924		-	mentors, including:
	873	+	9–303.3. 11
925	874
926		-	~~1. special recognition on~~ the ~~Office website,~~ ~~and in the Office~~
927		-	~~newsletter and participation updates;~~
	875	+	(A) IN THIS SECTION , “OMBUDSMAN ” MEANS THE MINORITY BUSINESS 12
	876	+	ENTERPRISE OMBUDSMAN IN THE OFFICE. 13
928	877
929		-	2. a certificate of participation awarded by the Office;
	878	+	(B) THERE IS A MINORITY BUSINESS ENTERPRISE OMBUDSMAN 14
	879	+	APPOINTED BY THE SPECIAL SECRETARY. 15
930	880
931		-	3. the opportunity to present highlights of mentor and
932		-	protege relationships at an annual appreciation event sponsored by the Office; [and]
	881	+	(C) IN ACCORDANCE WITH THE STATE BUDGET , THE SPECIAL SECRETARY 16
	882	+	SHALL ALLOCATE THE S TAFF AND OFFICE RESOURCES TO T HE OMBUDSMAN 17
	883	+	NECESSARY FOR THE OMBUDSMAN TO FULFILL THE DUTIES OF THE OMBUDSMAN . 18
933	884
934		-	~~4. increased networking and educational opportunities; AND LAWRENCE J. HOGAN, JR., Governor Ch. 155~~
	885	+	(D) THE OMBUDSMAN SHALL : 19
935	886
936		-	– 21 –
	887	+	(1) MAKE REASONABLE ASSIST THE PROCURE MENT OFFICER 20
	888	+	MANAGING THE CONTRAC T IN ATTEMPTS TO RESOLVE DISPUTES BETWEEN 21
	889	+	MINORITY BUSINESS EN TERPRISES AND PRIME CONTRACTORS , INCLUDING 22
	890	+	DISPUTES OVER CONTRA CT SCOPE AND PAYMENT S; AND 23
937	891
938		-	5. AUTHORIZATION FOR MI NORITY BUSINESSES TH AT
939		-	HELD CERTIFICATION U NDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND
940		-	PROCUREMENT ARTICLE AND HAVE BEEN DECERTIFIED TO OBTAI N OR RETAIN
941		-	CERTIFICATION FOR A PERIOD OF TIME SET B Y THE SPECIAL SECRETARY;
	892	+	(2) SERVE AS A RESOURCE TO MINORITY BUSINESS EN TERPRISE 24
	893	+	LIAISONS, PROCUREMENT OFFICERS I N UNITS OF STATE GOVERNMENT , PRIME 25
	894	+	CONTRACTORS , AND MINORITY BUSINES S ENTERPRISES IN RES OLVING DISPUTES 26
	895	+	RELATED TO CONTRACTS THAT INCLUDE A MINOR ITY BUSINESS ENTERPR ISE 27
	896	+	PARTICIPATION GOAL .; AND 28
942	897
943		-	SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1,
944		-	2023, the Minority Business Enterprise Ombudsman established under Section 1 of this
945		-	Act shall report to the Senate Budget and Taxation Committee and the House Health and
946		-	Government Operations Committee, in accordance with § 2–1257 of the State Government
947		-	Article, on the activities of the Ombudsman, including whether the number of staff
948		-	allocated to the Ombudsman is adequate to accomplish the requirements of § 9–303.3 of
949		-	the State Government Article, as enacted under Section 1 of this Act.
	898	+	(3) CONDUCT TRAININGS FO R PROCUREMENT OFFICERS IN UNITS OF 29
	899	+	STATE GOVERNMENT ON E NFORCEMENT OF THE RE QUIREMENTS OF TITLE 14, 30
	900	+	SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, INCLUDING THE 31
	901	+	ASSESSMENT OF LIQUID ATED DAMAGES UNDER § 14–303(B)(6) OF THE STATE 32
	902	+	FINANCE AND PROCUREMENT ARTICLE. 33
	903	+	20 HOUSE BILL 389
950	904
951		-	SECTION 3. AND BE IT FURTHER ENACTED, That, on or before June 1, 2024,
952		-	the Governor’s Office of Small, Minority, and Women Business Affairs shall study the use
953		-	of liquidated damages by procurement officers under § 14–303(b)(6) of the State Finance
954		-	and Procurement Article to enforce the requirements of Title 14, Subtitle 3 of the State
955		-	Finance and Procurement Article and report to the Senate Budget and Taxation Committee
956		-	and the House Health and Government Operations Committee, in accordance with §
957		-	2–1257 of the State Government Article, on:
958	905
959		-	(1) the number of instances in which a procurement officer could have
960		-	applied a liquidated damages penalty for failure of a contractor to comply in good faith with
961		-	the provisions of Title 14, Subtitle 3 of the State Finance and Procurement Article;
	906	+	(E) IN RESOLVING A DISPUT E UNDER SUBSECTION (D) OF THIS SECTION , 1
	907	+	THE OMBUDSMAN MAY : 2
962	908
963		-	(2) the number of instances in which liquidated damages were actually
964		-	assessed;
	909	+	(1) COMPEL PRIME CONTRAC TORS AND MINORITY BU SINESS 3
	910	+	ENTERPRISES TO PROVI DE DOCUMENTATION REL ATED TO CONTRACT 4
	911	+	PERFORMANCE AND PAYM ENTS; AND 5
965	912
966		-	(3) the amount of liquidated damages collected, if any;
	913	+	(2) ORDER ASSIST THE PRO CUREMENT OFFICER MAN AGING THE 6
	914	+	CONTRACT IN ORDERING ANY RELEVANT PAYMENT S TO BE MADE IN CONJ UNCTION 7
	915	+	WITH A DISPUTE RESOL UTION. 8
967	916
968		-	(4) the reasons for any failure to assess liquidated damages; and
	917	+	(F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 9
	918	+	WHEN RESOLVING A DIS PUTE UNDER SUBSECTIO N (D) OF THIS SECTION , THE 10
	919	+	OMBUDSMAN MAY NOT DIS CLOSE INFORMATION RE CEIVED FROM A UNIT O F STATE 11
	920	+	GOVERNMENT , PRIME CONTRACTOR , OR MINORITY BUSINESS ENTERPRISE 12
	921	+	WITHOUT THE WRITTEN CONSENT OF THE PARTY FROM WHOM THE INFORM ATION 13
	922	+	WAS OBTAINED . 14
969	923
970		-	(5) ~~recommendations for effective enforcement of~~ the ~~requirements of Title~~
971		-	~~14, Subtitle 3 of~~ the ~~State Finance and Procurement Article,~~ ~~including any suggested~~
972		-	~~statutory changes~~.
	924	+	(2) THE OMBUDSMAN MAY DISCLOS E INFORMATION RECEIVED 15
	925	+	UNDER THIS SECTION T O THE ASSISTANT ATTORNEY GENERAL ASSIGNED TO T HE 16
	926	+	OFFICE. 17
973	927
974		-	SECTION 4. AND BE IT FURTHER ENACTED, That, on or before December 1,
975		-	2024, the Department of Legislative Services shall report to the Senate Budget and
976		-	Taxation Committee and the House Health and Government Operations Committee, in
977		-	accordance with § 2–1257 of the State Government Article, on:
	928	+	9–305. 18
978	929
979		-	(1) the status of the recommendations included in the Department’s 2021
980		-	report “Evaluation of the Minority Business Enterprise Program”, including an assessment
981		-	of:
982		-	Ch. 155 2022 LAWS OF MARYLA ND
	930	+	(b) Subject to the limitations of any law that governs the activities of other units 19
	931	+	of the Executive Branch of the State government, the Special Secretary shall: 20
983	932
984		-	– 22 –
985		-	(i) the effectiveness of changes implemented in response to the
986		-	recommendations; and
	933	+	(7) establish a mentoring program: 21
987	934
988		-	(ii) ~~for any recommendations that were not implemented or only~~
989		-	~~partially implemented,~~ ~~whether the Department reaffirms its 2021 recommendation~~; and
	935	+	(i) in which larger and more established minority businesses can 22
	936	+	mentor start–up and small minority businesses; and 23
990	937
991		-	(2) ~~any updated findings and recommendations related~~ to ~~the Minority~~
992		-	~~Business Enterprise Program.~~
	938	+	(ii) that incentivizes mentor participation by providing benefits to 24
	939	+	mentors, including: 25
993	940
994		-	~~SECTION 2~~. 5. AND ~~BE IT FURTHER ENACTED,~~ ~~That this Act shall take effect~~
995		-	~~July 1,~~ ~~2022.~~
	941	+	1. special recognition on the Office website, and in the Office 26
	942	+	newsletter and participation updates; 27
996	943
997		-	Approved by the Governor, April 21, 2022.
	944	+	2. a certificate of participation awarded by the Office; 28
	945	+
	946	+	3. the opportunity to present highlights of mentor and 29
	947	+	protege relationships at an annual appreciation event sponsored by the Office; [and] 30
	948	+
	949	+	4. increased networking and educational opportunities; AND 31
	950	+	HOUSE BILL 389 21
	951	+
	952	+
	953	+	5. AUTHORIZATION FOR MI NORITY BUSINESSES TH AT 1
	954	+	HELD CERTIFICATION U NDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 2
	955	+	PROCUREMENT ARTICLE AND HAVE BEEN DECERTIFIED TO OBTAI N OR RETAIN 3
	956	+	CERTIFICATION FOR A PERIOD OF TIME SET B Y THE SPECIAL SECRETARY; 4
	957	+
	958	+	SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 5
	959	+	2023, the Minority Business Enterprise Ombudsman established under Section 1 of this 6
	960	+	Act shall report to the Senate Budget and Taxation Committee and the House Health and 7
	961	+	Government Operations Committee, in accordance with § 2–1257 of the State Government 8
	962	+	Article, on the activities of the Ombudsman, including whether the number of staff 9
	963	+	allocated to the Ombudsman is adequate to accomplish the requirements of § 9–303.3 of 10
	964	+	the State Government Article, as enacted under Section 1 of this Act. 11
	965	+
	966	+	SECTION 3. AND BE IT FURTHER ENACTED, That, on or before June 1, 2024, 12
	967	+	the Governor’s Office of Small, Minority, and Women Business Affairs shall study the use 13
	968	+	of liquidated damages by procurement officers under § 14–303(b)(6) of the State Finance 14
	969	+	and Procurement Article to enforce the requirements of Title 14, Subtitle 3 of the State 15
	970	+	Finance and Procurement Article and report to the Senate Budget and Taxation Committee 16
	971	+	and the House Health and Government Operations Committee, in accordance with § 17
	972	+	2–1257 of the State Government Article, on: 18
	973	+
	974	+	(1) the number of instances in which a procurement officer could have 19
	975	+	applied a liquidated damages penalty for failure of a contractor to comply in good faith with 20
	976	+	the provisions of Title 14, Subtitle 3 of the State Finance and Procurement Article; 21
	977	+
	978	+	(2) the number of instances in which liquidated damages were actually 22
	979	+	assessed; 23
	980	+
	981	+	(3) the amount of liquidated damages collected, if any; 24
	982	+
	983	+	(4) the reasons for any failure to assess liquidated damages; and 25
	984	+
	985	+	(5) recommendations for effective enforcement of the requirements of Title 26
	986	+	14, Subtitle 3 of the State Finance and Procurement Article, including any suggested 27
	987	+	statutory changes. 28
	988	+
	989	+	SECTION 4. AND BE IT FURTHER ENACTED, That, on or before December 1, 29
	990	+	2024, the Department of Legislative Services shall report to the Senate Budget and 30
	991	+	Taxation Committee and the House Health and Government Operations Committee, in 31
	992	+	accordance with § 2–1257 of the State Government Article, on: 32
	993	+
	994	+	(1) the status of the recommendations included in the Department’s 2021 33
	995	+	report “Evaluation of the Minority Business Enterprise Program”, including an assessment 34
	996	+	of: 35
	997	+
	998	+	(i) the effectiveness of changes implemented in response to the 36
	999	+	recommendations; and 37 22 HOUSE BILL 389
	1000	+
	1001	+
	1002	+
	1003	+	(ii) for any recommendations that were not implemented or only 1
	1004	+	partially implemented, whether the Department reaffirms its 2021 recommendation; and 2
	1005	+
	1006	+	(2) any updated findings and recommendations related to the Minority 3
	1007	+	Business Enterprise Program. 4
	1008	+
	1009	+	SECTION 2. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
	1010	+	July 1, 2022. 6
	1011	+
	1012	+
	1013	+
	1014	+
	1015	+
	1016	+	Approved:
	1017	+	________________________________________________________________________________
	1018	+	Governor.
	1019	+	________________________________________________________________________________
	1020	+	Speaker of the House of Delegates.
	1021	+	________________________________________________________________________________
	1022	+	President of the Senate.