MD
Maryland Senate Bill SB487

Maryland 2022 Regular Session

Maryland Senate Bill SB487 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 156
21
3-– 1 –
4-Chapter 156
5-(Senate Bill 487)
62
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+ *sb0487*
89
9-Procurement – Minority Business Enterprises – Revisions
10+SENATE BILL 487
11+P2 2lr1963
12+ CF HB 389
13+By: Senators Griffith, Elfreth, Augustine, Jackson, Kelley, Washington, Sydnor,
14+Zucker, Guzzone, Pinsky, Lam, King, and Patterson
15+Introduced and read first time: January 27, 2022
16+Assigned to: Budget and Taxation
17+Committee Report: Favorable with amendments
18+Senate action: Adopted
19+Read second time: March 4, 2022
1020
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. 156 2022 LAWS OF MARYLAND
21+CHAPTER ______
4922
50-– 2 –
51-reports on or before certain dates; and generally relating to procurement and
52-minority business enterprises.
23+AN ACT concerning 1
5324
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)
25+Procurement – Minority Business Enterprises – Revisions 2
5926
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)
27+FOR the purpose of requiring a procurement officer, in an invitation for bids or a request 3
28+for proposals, to include a certain summary of the factors used to determine the 4
29+expected degree of minority business enterprise participation for the contract; 5
30+authorizing certain entities to retain certification as a minority business enterprise 6
31+if the entity participates as a mentor in a certain mentorship program and under 7
32+certain circumstances; requiring the Special Secretary for the Office of Small, 8
33+Minority, and Women Business Affairs to establish certain statewide minority 9
34+business enterprise participation goals by industry type in a certain manner; 10
35+establishing that certain statewide goals by industry type apply under certain 11
36+circumstances; requiring each unit of the Executive Branch of State government to 12
37+annually report the results of certain compliance assessments to the Governor’s 13
38+Office of Small, Minority, and Women Business Affairs; authorizing the Special 14
39+Secretary to waive the requirement for a unit to report certain information under 15
40+certain circumstances; requiring the Office to maintain and publish on its website a 16
41+list of prime contractors who, based on the results of the compliance assessments, 17
42+Governor’s Office of Small, Minority, and Women Business Affairs and the Office of 18
43+State Procurement, in consultation with the Office of the Attorney General and 19
44+Board of Public Works, to adopt by regulation criteria used to determine that a prime 20
45+contractor has persistently fail failed to meet contract goals; requiring the results of 21
46+certain compliance assessments to be included in certain criteria; requiring the 22
47+Governor’s Office of Small, Minority, and Women Business Affairs to refer certain 23
48+prime contractors to the Office of the Attorney General for debarment; authorizing 24 2 SENATE BILL 487
6749
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)
7350
74-BY adding to
75- Article – State Government
76-Section 9–303.3
77- Annotated Code of Maryland
78- (2021 Replacement Volume)
51+the Board of Public Works to debar a person for a certain period of time under certain 1
52+circumstances; requiring certain units of the Executive Branch of State government 2
53+to designate certain procurements for the small business reserve under certain 3
54+circumstances; requiring certain standards and guidelines relating to participation 4
55+in the small business reserve program to allow for the registration of certain 5
56+businesses without the need to file certain paperwork; establishing that certain 6
57+procurements may be exempt from designation for the small business reserve under 7
58+certain circumstances; making certain provisions of law relating to the prompt 8
59+payment of subcontractors apply to all State contracts, rather than only State 9
60+contracts for construction; creating the position of Minority Business Enterprise 10
61+Ombudsman in the Governor’s Office of Small, Minority, and Women Business 11
62+Affairs; establishing certain duties and authority of the Ombudsman; altering the 12
63+definition of “responsible bidder or offeror” to exclude contractors who persistently 13
64+fail to meet contract goals, based on the results of certain compliance assessments 14
65+requiring the Ombudsman, Governor’s Office of Small, Minority, and Women 15
66+Business Affairs, and the Department of Legislative Services to submit certain 16
67+reports on or before certain dates; and generally relating to procurement and 17
68+minority business enterprises. 18
7969
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)
70+BY repealing and reenacting, without amendments, 19
71+ Article – State Finance and Procurement 20
72+Section 11–101(a) 21
73+ Annotated Code of Maryland 22
74+ (2021 Replacement Volume) 23
8575
86- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
87-That the Laws of Maryland read as follows:
76+BY repealing and reenacting, with amendments, 24
77+ Article – State Finance and Procurement 25
78+Section 11–101(s), 13–103(a), 13–104(b), 14–301(f), 14–302(a)(1), 14–303, and 26
79+14–303(b)(2), 14–305; 14–305, and 14–502(f); and 15–226 to be under the 27
80+amended part “Part IV. Prompt Payment of Subcontractors”; and 16–203(d) 28
81+ Annotated Code of Maryland 29
82+ (2021 Replacement Volume) 30
8883
89-Article – State Finance and Procurement
84+BY adding to 31
85+ Article – State Finance and Procurement 32
86+Section 14–301(e–1) and 14–502.1 33
87+ Annotated Code of Maryland 34
88+ (2021 Replacement Volume) 35
9089
91-11–101.
90+BY adding to 36
91+ Article – State Government 37
92+Section 9–303.3 38
93+ Annotated Code of Maryland 39
94+ (2021 Replacement Volume) 40
9295
93- (a) In this Division II the following words have the meanings indicated unless:
96+BY repealing and reenacting, with amendments, 41
97+ Article – State Government 42 SENATE BILL 487 3
9498
95- (1) the context clearly requires a different meaning; or
96- LAWRENCE J. HOGAN, JR., Governor Ch. 156
9799
98-– 3 –
99- (2) a different definition is provided for a particular title or provision.
100+Section 9–305(b)(7) 1
101+ Annotated Code of Maryland 2
102+ (2021 Replacement Volume) 3
100103
101- (s) “Responsible bidder or offeror” means a person who:
104+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
105+That the Laws of Maryland read as follows: 5
102106
103- (1) has the capability in all respects to perform fully the requirements for
104-a procurement contract; [and]
107+Article – State Finance and Procurement 6
105108
106- (2) possesses the integrity and reliability that will ensure good faith
107-performance; AND
109+11–101. 7
108110
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 .
111+ (a) In this Division II the following words have the meanings indicated unless: 8
111112
112-13–103.
113+ (1) the context clearly requires a different meaning; or 9
113114
114- (a) (1) Whenever procurement is based on competitive sealed bids, a
115-procurement officer shall seek bids by issuing an invitation for bids.
115+ (2) a different definition is provided for a particular title or provision. 10
116116
117- (2) Subject to subsection (b) of this section, an invitation for bids shall
118-include:
117+ (s) “Responsible bidder or offeror” means a person who: 11
119118
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;
119+ (1) has the capability in all respects to perform fully the requirements for 12
120+a procurement contract; [and] 13
123121
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;
122+ (2) possesses the integrity and reliability that will ensure good faith 14
123+performance; AND 15
131124
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;
125+ (3) IS NOT A CONTRACTOR WHO PERSISTENTLY FAI LS TO MEET 16
126+CONTRACT GOALS AS DETER MINED UNDER § 14–305(C)(2) OF THIS ARTICLE . 17
135127
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
128+13–103. 18
139129
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. 156 2022 LAWS OF MARYLAND
130+ (a) (1) Whenever procurement is based on competitive sealed bids, a 19
131+procurement officer shall seek bids by issuing an invitation for bids. 20
144132
145-– 4 –
146-13–104.
133+ (2) Subject to subsection (b) of this section, an invitation for bids shall 21
134+include: 22
147135
148- (b) (1) Whenever procurement is based on competitive sealed proposals, a
149-procurement officer shall seek proposals by issuing a request for proposals.
136+ (i) the specifications of the procurement contract, including the 23
137+expected degree of minority business enterprise participation, as provided in § 14–303(b) of 24
138+this article; 25
150139
151- (2) A request for proposals shall include a statement of:
140+ (II) A SUMMARY OF THE FAC TORS USED TO DETERMINE TH E 26
141+EXPECTED DEGREE OF M INORITY BUSINESS ENT ERPRISE PARTICIPATIO N FOR THE 27
142+PROCUREMENT CONTRACT , INCLUDING SUBCONTRAC TING OPPORTUNITIES 28
143+IDENTIFIED FOR THE P ROJECT, ANY APPLICABLE NORTH AMERICAN INDUSTRY 29
144+CLASSIFICATION SYSTEM CODES LINKED TO THE SUBCONTRACTIN G 30 4 SENATE BILL 487
152145
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;
156146
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;
147+OPPORTUNITIES , AND THE NUMBER OF CE RTIFIED MINORITY BUS INESS 1
148+ENTERPRISES IN THOSE INDUSTRIES; 2
164149
165- [(ii)] (III) the factors, including price, that will be used in evaluating
166-proposals; and
150+ [(ii)] (III) whether the procurement contract will be awarded based 3
151+on the lowest bid price, the lowest evaluated bid price or, if the procurement is subject to § 4
152+11–202(3) of this article, the bid most favorable to the State; 5
167153
168- [(iii)] (IV) the relative importance of each factor.
154+ [(iii)] (IV) if the procurement contract will be based on evaluated bid 6
155+price, the objective measurable criteria by which the lowest evaluated bid price will be 7
156+determined; and 8
169157
170-14–301.
158+ [(iv)] (V) if the Secretary of General Services, the Secretary of 9
159+Transportation, or the Chancellor of the University System of Maryland has so designated, 10
160+the small business preference. 11
171161
172- (f) “Minority business enterprise” means:
162+13–104. 12
173163
174- (1) any legal entity, except a joint venture, that is:
164+ (b) (1) Whenever procurement is based on competitive sealed proposals, a 13
165+procurement officer shall seek proposals by issuing a request for proposals. 14
175166
176- [(1)] (I) organized to engage in commercial transactions;
167+ (2) A request for proposals shall include a statement of: 15
177168
178- [(2)] (II) at least 51% owned and controlled by 1 or more individuals who
179-are socially and economically disadvantaged; and
169+ (i) the scope of the procurement contract, including the expected 16
170+degree of minority business enterprise participation, as provided in § 14–303(b) of this 17
171+article; 18
180172
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
173+ (II) A SUMMARY OF THE FAC TORS USED TO DETERMI NE THE 19
174+EXPECTED DEGREE OF M INORITY BUSINESS ENT ERPRISE PARTICIPATIO N FOR THE 20
175+PROCUREMENT CONTRACT , INCLUDING SUBCONTRAC TING OPPORTUNITIES 21
176+IDENTIFIED FOR THE P ROJECT, ANY APPLICABLE NORTH AMERICAN INDUSTRY 22
177+CLASSIFICATION SYSTEM CODES LINKED T O THE SUBCONTRACTING 23
178+OPPORTUNITIES , AND THE NUMBER OF CE RTIFIED MINORITY BUS INESS 24
179+ENTERPRISES IN THOSE INDUSTRIES; 25
184180
185- (2) AN ENTITY THAT:
181+ [(ii)] (III) the factors, including price, that will be used in evaluating 26
182+proposals; and 27
186183
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. 156
184+ [(iii)] (IV) the relative importance of each factor. 28
190185
191-– 5 –
186+14–301. 29
192187
193- (II) HAS BEEN AUTHORIZED TO RETAIN CERTIFICAT ION UNDER
194-§ 9–305(B)(7) OF THE STATE GOVERNMENT ARTICLE.
188+ (f) “Minority business enterprise” means: 30
195189
196- (E–1) “INDUSTRY TYPE ” MEANS THE FOLLOWING PROCUREMENT
197-CATEGORIES:
190+ (1) any legal entity, except a joint venture, that is: 31
198191
199- (1) CONSTRUCTION ;
192+ [(1)] (I) organized to engage in commercial transactions; 32 SENATE BILL 487 5
200193
201- (2) ARCHITECTURAL AND EN GINEERING SERVICES A ND OTHER
202-CONSTRUCTION –RELATED PROFESSIONAL SERVICES;
203194
204- (3) MAINTENANCE ;
205195
206- (4) INFORMATION TECHNOLO GY;
196+ [(2)] (II) at least 51% owned and controlled by 1 or more individuals who 1
197+are socially and economically disadvantaged; and 2
207198
208- (5) SERVICES; AND
199+ [(3)] (III) managed by, and the daily business operations of which are 3
200+controlled by, one or more of the socially and economically disadvantaged individuals who 4
201+own it; OR 5
209202
210- (6) GOODS, SUPPLIES, AND EQUIPMENT .
203+ (2) AN ENTITY THAT: 6
211204
212-14–302.
205+ (I) HAS GRADUATED OR OTH ERWISE IS NO LONGER CERTIFIED 7
206+UNDER THE TERMS OF T HE GRADUATION PROGRA M ESTABLISHED IN ACC ORDANCE 8
207+WITH § 14–303(B)(15) OF THIS SUBTITLE; AND 9
213208
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.
209+ (II) HAS BEEN AUTHORIZED TO RETAIN CERTIFICAT ION UNDER 10
210+§ 9–305(B)(7) OF THE STATE GOVERNMENT ARTICLE. 11
218211
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:
212+ (E–1) “INDUSTRY TYPE ” MEANS THE FOLLOWING PROCUREMENT 12
213+CATEGORIES: 13
222214
223- A. a procurement contract awarded in accordance with
224-Subtitle 1 of this title;
215+ (1) CONSTRUCTION ; 14
225216
226- B. a procurement contract awarded to a nonprofit entity in
227-accordance with requirements mandated by State or federal law; and
217+ (2) ARCHITECTURAL AND EN GINEERING SERVICES A ND OTHER 15
218+CONSTRUCTION –RELATED PROFESSIONAL SERVICES; 16
228219
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.
220+ (3) MAINTENANCE ; 17
234221
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. 156 2022 LAWS OF MARYLAND
222+ (4) INFORMATION TECHNOLO GY; 18
237223
238-– 6 –
239-Business Affairs, in consultation with the Secretary of Transportation and the Attorney
240-General.
224+ (5) SERVICES; AND 19
241225
242- 2. During any year in which there is a delay in establishing
243-the overall goal, the previous year’s goal will apply.
226+ (6) GOODS, SUPPLIES, AND EQUIPMENT . 20
244227
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.
228+14–302. 21
249229
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 THE IN DUSTRY.
230+ (a) (1) (i) 1. Except for leases of real property, each unit shall structure 22
231+procurement procedures, consistent with the purposes of this subtitle, to try to achieve an 23
232+overall percentage goal of the unit’s total dollar value of procurement contracts being made 24
233+directly or indirectly to certified minority business enterprises. 25
256234
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 .
235+ 2. Notwithstanding subsubparagraph 1 of this 26
236+subparagraph, the following contracts may not be counted as part of a unit’s total dollar 27
237+value of procurement contracts: 28
238+ 6 SENATE BILL 487
260239
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.
266240
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.
241+ A. a procurement contract awarded in accordance with 1
242+Subtitle 1 of this title; 2
269243
270- [(iv)] (V) 1. The Special Secretary for the Office of Small,
271-Minority, and Women Busi ness 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.
244+ B. a procurement contract awarded to a nonprofit entity in 3
245+accordance with requirements mandated by State or federal law; and 4
275246
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:
247+ C. a procurement by the Maryland Developmental 5
248+Disabilities Administration of the Maryland Department of Health for family and 6
249+individual support services, community residential services, resource coordination services, 7
250+behavioral support services, vocational and day services, and respite services, as those 8
251+terms are defined in regulations adopted by the Maryland Department of Health. 9
281252
282- A. the availability of minority– and women–owned
283-businesses; LAWRENCE J. HOGAN, JR., Governor Ch. 156
253+ (ii) 1. The overall percentage goal shall be established on a 10
254+biennial basis by the Special Secretary for the Office of Small, Minority, and Women 11
255+Business Affairs, in consultation with the Secretary of Transportation and the Attorney 12
256+General. 13
284257
285-– 7 –
258+ 2. During any year in which there is a delay in establishing 14
259+the overall goal, the previous year’s goal will apply. 15
286260
287- B. the effects of discrimination on opportunities for
288-minority– and women–owned businesses; and
261+ (III) 1. IN CONSULTATION WITH THE SECRETARY OF 16
262+TRANSPORTATION AND TH E ATTORNEY GENERAL, THE SPECIAL SECRETARY FOR 17
263+THE OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS SHALL 18
264+ESTABLISH STATEWIDE GOALS BY INDUSTRY TY PE ON A BIENNIAL BAS IS. 19
289265
290- C. the State’s operation of the Minority Business Enterprise
291-Program.
266+ 2. IN ESTABLISHING STATE WIDE GOALS BY INDUST RY 20
267+TYPE, THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, MINORITY, AND 21
268+WOMEN BUSINESS AFFAIRS SHALL USE THE SAME METHODOLOGY USE D TO 22
269+DEVELOP THE OVERALL STATEWIDE GOAL UNDER SUBPARAGRAPH (II) OF THIS 23
270+PARAGRAPH , WITH CONSIDERATION G IVEN TO AVAILABILITY AND UTILIZATION OF 24
271+MINORITY BUSINESS EN TERPRISES IN TH E INDUSTRY. 25
292272
293- [(v)] (VI) In establishing overall goals, the factors to be considered
294-shall include:
273+ 3. DURING ANY YEAR IN WH ICH THERE IS A DELAY IN 26
274+ESTABLISHING THE STA TEWIDE GOALS BY INDU STRY TYPE, THE PREVIOUS YEAR ’S 27
275+GOALS WILL APPLY . 28
295276
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;
277+ [(iii)] (IV) 1. In consultation with the Secretary of 29
278+Transportation and the Attorney General, the Special Secretary for the Office of Small, 30
279+Minority, and Women Business Affairs shall establish guidelines on a biennial basis for 31
280+each unit to consider while determining whether to set subgoals for the minority groups 32
281+listed in § 14–301(k)(1)(i)1, 2, 3, 4, and 6 of this subtitle. 33
299282
300- 2. past participation of minority business enterprises in
301-State procurement, except for procurement related to leases of real property; and
283+ 2. During any year in which there is a delay in establishing 34
284+the subgoal guidelines, the previous year’s subgoal guidelines will apply. 35
285+ SENATE BILL 487 7
302286
303- 3. other factors that contribute to constitutional goal setting.
304287
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.
288+ [(iv)] (V) 1. The Special Secretary for the Office of Small, 1
289+Minority, and Women Business Affairs, in consultation with the Secretary of 2
290+Transportation and the Attorney General, shall establish goals and subgoal guidelines that, 3
291+to the maximum extent feasible, approximate the level of minority business enterprise 4
292+participation that would be expected in the absence of discrimination. 5
309293
310-14–303.
294+ 2. In establishing overall goals and subgoal guidelines, the 6
295+Special Secretary for the Office of Small, Minority, and Women Business Affairs shall 7
296+provide for public participation by consulting with minority, women’s, and general 8
297+contractor groups, community organizations, and other officials or organizations that could 9
298+be expected to have information concerning: 10
311299
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.
300+ A. the availability of minority– and women–owned 11
301+businesses; 12
315302
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.
303+ B. the effects of discrimination on opportunities for 13
304+minority– and women–owned businesses; and 14
320305
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.
306+ C. the State’s operation of the Minority Business Enterprise 15
307+Program. 16
325308
326- (b) These regulations shall include:
309+ [(v)] (VI) In establishing overall goals, the factors to be considered 17
310+shall include: 18
327311
328- (1) provisions:
312+ 1. the relative availability of minority– and women–owned 19
313+businesses to participate in State procurement as demonstrated by the State’s most recent 20
314+disparity study; 21
329315
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. 156 2022 LAWS OF MARYLAND
316+ 2. past participation of minority business enterprises in 22
317+State procurement, except for procurement related to leases of real property; and 23
332318
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;
319+ 3. other factors that contribute to constitutional goal setting. 24
336320
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:
321+ [(vi)] (VII) Notwithstanding § 12–101 of this article, the Special 25
322+Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt 26
323+regulations in accordance with Title 10, Subtitle 1 of the State Government Article setting 27
324+forth the State’s overall goal. 28
342325
343- 1. has obtained certification under the federal
344-Disadvantaged Business Enterprise Program; and
326+14–303. 29
345327
346- 2. meets the eligibility requirements of the Minority
347-Business Enterprise Program;
328+ (a) (1) (i) In accordance with Title 10, Subtitle 1 of the State Government 30
329+Article, the Board shall adopt regulations consistent with the purposes of this Division II 31
330+to carry out the requirements of this subtitle. 32
348331
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
332+ (ii) The Board shall keep a record of information regarding any 33
333+waivers requested in accordance with § 14–302(a)(9)(i) of this subtitle and subsection 34 8 SENATE BILL 487
353334
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;
358335
359- (2) a requirement that the solicitation document accompanying each
360-solicitation:
336+(b)(12) of this section and submit a copy of the record to the General Assembly on or before 1
337+October 1 of each year, in accordance with § 2–1257 of the State Government Article. 2
361338
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
339+ (2) The regulations shall establish procedures to be followed by units, 3
340+prospective contractors, and successful bidders or offerors to maximize notice to, and the 4
341+opportunity to participate in the procurement process by, a broad range of minority 5
342+business enterprises. 6
365343
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;
344+ (b) These regulations shall include: 7
372345
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;
346+ (1) provisions: 8
376347
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. 156
348+ (i) designating one State agency to certify and decertify minority 9
349+business enterprises for all units through a single process that meets applicable federal 10
350+requirements, including provisions that promote and facilitate the submission of some or 11
351+all of the certification application through an electronic process; 12
379352
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;
353+ (ii) for the purpose of certification under this subtitle, that promote 13
354+and facilitate certification of minority business enterprises that have received certification 14
355+from a federal or a county program that uses a certification process substantially similar 15
356+to the process established in accordance with item (i) of this item, including a provision that 16
357+provides for certification of a business as a minority business enterprise if the business: 17
384358
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;
359+ 1. has obtained certification under the federal 18
360+Disadvantaged Business Enterprise Program; and 19
388361
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
362+ 2. meets the eligibility requirements of the Minority 20
363+Business Enterprise Program; 21
393364
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:
365+ (iii) requiring the agency designated to certify minority business 22
366+enterprises to complete the agency’s review of an application for certification and notify the 23
367+applicant of the agency’s decision within 90 days of receipt of a complete application that 24
368+includes all of the information necessary for the agency to make a decision; and 25
397369
398- 1. a minority business enterprise subcontractor was named
399-on the participation schedule; or
370+ (iv) authorizing the agency designated to certify minority business 26
371+enterprises to extend the notification requirement established under item (iii) of this item 27
372+once, for no more than an additional 60 days, if the agency provides the applicant with a 28
373+written notice and explanation; 29
400374
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;
375+ (2) a requirement that the solicitation document accompanying each 30
376+solicitation: 31
404377
405- (7)] a requirement that the unit provide a current list of certified minority
406-business enterprises to each prospective contractor;
378+ (I) set forth the expected degree of minority business enterprise 32
379+participation based, in part, on the factors set forth in § 14–302(a)(3)(ii) of this subtitle; 33
380+AND 34
381+ SENATE BILL 487 9
407382
408- [(8)] (7) provisions to ensure the uniformity of requests for bids on
409-subcontracts;
410383
411- [(9)] (8) provisions relating to the timing of requests for bids on
412-subcontracts and of submission of bids on subcontracts;
384+ (II) INCLUDE A SUMMARY OF THE FACTORS USED TO 1
385+DETERMINE THE EXPECT ED DEGREE OF MINORIT Y BUSINESS ENTERPRIS E 2
386+PARTICIPATION , INCLUDING SUBCONTRAC TING OPPORTUNITIES I DENTIFIED FOR 3
387+THE PROJECT , ANY APPLICABLE NORTH AMERICAN INDUSTRY CLASSIFICATION 4
388+SYSTEM CODES LINKED T O THE SUBCONTRACTING OPPORTUNITIES , AND THE 5
389+NUMBER OF CERTIFIED MINORITY BUSINESS EN TERPRISES IN THOSE I NDUSTRIES; 6
413390
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;
391+ (3) a requirement that bidders or offerors complete a document setting 7
392+forth the percentage of the total dollar amount of the contract that the bidder or offeror 8
393+agrees will be performed by certified minority business enterprises; 9
417394
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;
395+ (4) a requirement that within 10 days after notice from the prime 10
396+contractor of the State’s intent to award a contract, each minority business enterprise 11
397+serving as a subcontractor on the contract complete a document setting forth the percentage 12
398+and type of work assigned to the subcontractor under the contract and submit copies of the 13
399+completed form to both the procurement officer and the contractor; 14
421400
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. 156 2022 LAWS OF MARYLAND
401+ (5) a requirement that the solicitation documents completed and submitted 15
402+by the bidder or offeror in connection with its minority business enterprise participation 16
403+commitment must be attached to and made a part of the contract; 17
426404
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;
405+ (6) [(i) a requirement that all contracts containing minority business 18
406+enterprise participation goals shall contain a liquidated damages provision that applies in 19
407+the event that the contractor fails to comply in good faith with the provisions of this subtitle 20
408+or the pertinent terms of the applicable contract; and 21
431409
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;
410+ (ii) a provision that prohibits a unit from assessing liquidated 22
411+damages for an indefinite delivery contract or an indefinite performance contract if a unit 23
412+fails to request the performance or delivery of a task for which: 24
437413
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;
414+ 1. a minority business enterprise subcontractor was named 25
415+on the participation schedule; or 26
441416
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;
417+ 2. a minority business enterprise subcontractor was named 27
418+on the participation schedule and qualified based on the subcontractor’s existing North 28
419+American Industry Classification System code; 29
445420
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;
421+ (7)] a requirement that the unit provide a current list of certified minority 30
422+business enterprises to each prospective contractor; 31
449423
450- [(18)] (17) provisions promoting and providing for the counting and
451-reporting of certified minority business enterprises as prime contractors;
424+ [(8)] (7) provisions to ensure the uniformity of requests for bids on 32
425+subcontracts; 33
452426
453- [(19)] (18) provisions establishing standards to require a minority business
454-enterprise to perform a commercially useful function on a contract;
427+ [(9)] (8) provisions relating to the timing of requests for bids on 34
428+subcontracts and of submission of bids on subcontracts; 35
429+ 10 SENATE BILL 487
455430
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;
459431
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 et hnic or racial group in accordance with §
463-14–302(a)(5) of this subtitle; and
432+ [(10)] (9) provisions designed to ensure that a fiscal disadvantage to the 1
433+State does not result from an inadequate response by minority business enterprises to a 2
434+request for bids; 3
464435
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.
436+ [(11)] (10) provisions relating to joint ventures, under which a bidder may 4
437+count toward meeting its minority business enterprise participation goal, the minority 5
438+business enterprise portion of the joint venture; 6
468439
469- (c) The regulations adopted under this section shall specify that:
440+ [(12)] (11) consistent with § 14–302(a)(9) of this subtitle, provisions relating 7
441+to any circumstances under which a unit may waive obligations of the contractor relating 8
442+to minority business enterprise participation; 9
470443
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. 156
444+ [(13)] (12) provisions requiring a monthly submission to the unit by 10
445+minority business enterprises acknowledging all payments received in the preceding 30 11
446+days under a contract governed by this subtitle; 12
473447
474-– 11 –
448+ [(14)] (13) a requirement that a unit shall verify and maintain data 13
449+concerning payments received by minority business enterprises, including a requirement 14
450+that, upon completion of a project, the unit shall compare the total dollar value actually 15
451+received by minority business enterprises with the amount of contract dollars initially 16
452+awarded, and an explanation of any discrepancies therein; 17
475453
476- (2) A UNIT SHALL ALLOW A B USINESS TO PARTICIPA TE 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.
454+ [(15)] (14) a requirement that a unit verify that minority business 18
455+enterprises listed in a successful bid are actually participating to the extent listed in the 19
456+project for which the bid was submitted; 20
479457
480-14–305.
458+ [(16)] (15) provisions establishing a graduation program based on the 21
459+financial viability of the minority business enterprise, using annual gross receipts or other 22
460+economic indicators as may be determined by the Board; 23
481461
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.
462+ [(17)] (16) a requirement that a bid or proposal based on a solicitation with 24
463+an expected degree of minority business enterprise participation identify the specific 25
464+commitment of certified minority business enterprises at the time of submission; 26
486465
487- (2) A report under this subsection shall for the preceding fiscal year:
466+ [(18)] (17) provisions promoting and providing for the counting and 27
467+reporting of certified minority business enterprises as prime contractors; 28
488468
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;
469+ [(19)] (18) provisions establishing standards to require a minority business 29
470+enterprise to perform a commercially useful function on a contract; 30
493471
494- (ii) indicate the percentage that those procurement contracts
495-represent, by specific category of minority business enterprise AND BY INDUSTRY TY PE,
496-of the total number and value of procurement contracts;
472+ [(20)] (19) a requirement that each unit work with the Governor’s Office of 31
473+Small, Minority, and Women Business Affairs to designate certain procurements as being 32
474+excluded from the requirements of § 14–302(a) of this subtitle; 33
497475
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;
476+ [(21)] (20) provisions promoting and providing for the counting and 34
477+reporting of minority business enterprises certified as both a woman–owned business and 35 SENATE BILL 487 11
501478
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]
505479
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 :
480+a business owned by a member of an ethnic or racial group in accordance with § 1
481+14–302(a)(5) of this subtitle; and 2
509482
510- 1. THE NAMES OF EACH PR IME CONTRACTOR AND E ACH
511-MINORITY BUSINESS SUBCONTRACTOR THAT PARTICIPATED IN THE CONTRACT ;
483+ [(22)] (21) other provisions that the Board considers necessary or 3
484+appropriate to encourage participation by minority business enterprises and to protect the 4
485+integrity of the procurement process. 5
512486
513- 2. THE TYPE OF GOOD OR SERVICE PROVIDED BY THE
514-CONTRACT;
487+ (c) The regulations adopted under this section shall specify that: 6
515488
516- 3. THE MINORITY BUSINES S ENTERPRISE
517-PARTICIPATION GOAL F OR THE CONTRACT ;
518- Ch. 156 2022 LAWS OF MARYLAND
489+ (1) a unit may not allow a business to participate as if it were a certified 7
490+minority business enterprise if the business’s certification is pending; AND 8
519491
520-– 12 –
521- 4. WHETHER A WAIVER WAS GRANTED FOR THE
522-MINORITY BUSINESS E NTERPRISE PARTICIPAT ION GOAL;
492+ (2) A UNIT SHALL ALLOW A BUSINESS TO PARTICIP ATE AS A 9
493+CERTIFIED MINORITY B USINESS ENTERPRISE I F THE CERTIFICATION HAS BEEN 10
494+GRANTED UNDER § 9–305(B)(7) OF THE STATE GOVERNMENT ARTICLE. 11
523495
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 ;
496+14–305. 12
527497
528- 6. WHETHER EACH SUBCONT RACTOR IS A CERTIFIE D
529-MINORITY BUSINESS EN TERPRISE; AND
498+ (a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 13
499+the Governor’s Office of Small, Minority, and Women Business Affairs, the certification 14
500+agency, and, subject to § 2–1257 of the State Government Article, the Joint Committee on 15
501+Fair Practices and Personnel Oversight. 16
530502
531- 7. IF APPLICABLE, A DESCRIPTION OF FAC TORS THAT
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 ENT ERPRISE;
535-AND
503+ (2) A report under this subsection shall for the preceding fiscal year: 17
536504
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.
505+ (i) state the total number and value of procurement contracts 18
506+between the unit and certified minority business enterprises, by specific category of 19
507+minority business enterprise AND BY INDUSTRY TYPE , including whether the minority 20
508+business enterprise participated as a prime contractor or as a subcontractor; 21
540509
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:
510+ (ii) indicate the percentage that those procurement contracts 22
511+represent, by specific category of minority business enterprise AND BY INDUSTRY TYPE , 23
512+of the total number and value of procurement contracts; 24
544513
545- (i) architectural services; and
514+ (iii) state the total number and the names of certified minority 25
515+business enterprises that participated as prime contractors or as subcontractors on 26
516+procurement contracts awarded by a unit; 27
546517
547- (ii) engineering services.
518+ (iv) for each minority business included in the report under item (iii) 28
519+of this paragraph, list all procurement contracts awarded by a unit to the minority business 29
520+enterprise, including a description of the contract AND INDUSTRY TYPE ; [and] 30
548521
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.
522+ (V) PROVIDE THE RESULTS OF EACH COMP LIANCE ASSESSMENT 31
523+CONDUCTED BY THE UNI T UNDER § 14–303(B)(14)(B)(15) OF THIS SUBTITLE , 32
524+INCLUDING FOR EACH C ONTRACT COMPLETED DU RING THE FISCAL YEAR : 33
525+ 12 SENATE BILL 487
552526
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.
558527
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. 156
528+ 1. THE NAMES OF EACH PR IME CONTRACTOR AND E ACH 1
529+MINORITY BUSINESS SUBCONTRACTOR THAT PARTICIPATED IN THE CONTRACT ; 2
564530
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 INDUSTRY TYPE .
531+ 2. THE TYPE OF GOOD OR SERVICE PROVIDED BY THE 3
532+CONTRACT; 4
569533
570- (2) (3) This report may be prepared in conjunction with the annual
571-report required under § 9–306 of the State Government Article.
534+ 3. THE MINORITY BUSINES S ENTERPRISE 5
535+PARTICIPATION GOAL F OR THE CONTRACT ; 6
572536
573- (C) (1) IN THIS SUBSECTION , “MITIGATING FACTORS ” INCLUDES
574-DOCUMENTED NONPERFOR MANCE OR UNAVAILABIL ITY OF A MINORITY BUSINESS
575-ENTERPRISE DESIGNATE D FOR A CONTRACT .
537+ 4. WHETHER A WAIVER WAS GRANTED FOR THE 7
538+MINORITY BUSINESS EN TERPRISE PART ICIPATION GOAL; 8
576539
577- (2) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN
578-BUSINESS AFFAIRS SHALL MAINTAIN AND P UBLISH ON ITS WEBSIT E 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 US ED TO DETERMINE THAT A PRIME CONTRACTOR H AS
585-PERSISTENTLY FAILED TO MEET CONTRACT GOA LS IN THE ABSENCE OF MITIGATING
586-FACTORS.
540+ 5. THE TOTAL DOLLAR VAL UE OF PAYMENTS MADE TO 9
541+EACH PRIME CONTRACTO R AND BY EACH PRIME CONTRACTOR TO EACH 10
542+SUBCONTRACTOR DURING THE CONTRACT TERM ; 11
587543
588- (3) THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL,
589-MINORITY, AND WOMEN BUSINESS AFFAIRS MAY ADOPT REGULATIONS NECESSAR Y
590-TO CARRY OUT THE REQ UIREMENTS OF THIS SU BSECTION.
544+ 6. WHETHER EACH SUBCONT RACTOR IS A CERTIFIE D 12
545+MINORITY BUSINESS EN TERPRISE; AND 13
591546
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.
547+ 7. IF APPLICABLE, A DESCRIPTION OF FAC TORS THAT 14
548+MAY HAVE CONTRIBUTED TO FAILURE TO ACHIEV E THE MINORITY BUSIN ESS 15
549+ENTERPRISE PARTICIPA TION GOAL FOR THE CO NTRACT, INCLUDING DOCUMENTED 16
550+NONPERFORMANCE OR UN AVAILABILITY OF A MI NORITY BUSINESS ENTE RPRISE; 17
551+AND 18
595552
596- (4) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN
597-BUSINESS AFFAIRS SHALL REFER P RIME CONTRACTORS IDE NTIFIED 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.
553+ [(v)] (VI) contain other such information as required by the 19
554+Governor’s Office of Small, Minority, and Women Business Affairs and the certification 20
555+agency and approved by the Board. 21
601556
602-14–502.
557+ (3) As to procurement contracts for architectural services and engineering 22
558+services reported under paragraph (2) of this subsection, the report shall identify by 23
559+separate category of minority business enterprise procurements for: 24
603560
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.
561+ (i) architectural services; and 25
607562
608- (2) THE STANDARDS AND GUI DELINES ESTABLISHED UNDER
609-PARAGRAPH (1) OF THIS SUBSECTION S HALL ALLOW FOR THE R EGISTRATION OF Ch. 156 2022 LAWS OF MARYLAND
563+ (ii) engineering services. 26
610564
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 :
565+ (4) A report under this subsection shall be in a form prescribed by the 27
566+Governor’s Office of Small, Minority, and Women Business Affairs and the certification 28
567+agency and approved by the Board. 29
615568
616- (I) IS A SMALL BUSINESS UNDER THIS SUBTITLE ; AND
569+ (5) THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, 30
570+MINORITY, AND WOMEN BUSINESS AFFAIRS MAY WAIVE THE REQUIREMENT FOR A 31
571+UNIT TO REPORT MINOR ITY BUSINESS PARTICI PATION BY INDUSTRY T YPE UNDER 32 SENATE BILL 487 13
617572
618- (II) 1. IS CERTIFIED AS A MI NORITY BUSINESS ENTE RPRISE
619-UNDER SUBTITLE 3 OF THIS TITLE;
620573
621- 2. IS CERTIFIED UNDER T HE FEDERAL DISADVANTAGED
622-BUSINESS ENTERPRISE PROGRAM; OR
574+PARAGRAPH (2) OF THIS SUBSECTION I F THE SPENDING THRES HOLD FOR THE 1
575+INDUSTRY TYPE IS TOO LO W FOR THE UNIT TO PR OVIDE SUFFICIENT DAT A. 2
623576
624- 3. IS QUALIFIED AS A SM ALL BUSINESS UNDER
625-SUBTITLE 2 OF THIS TITLE.
577+ (b) (1) On or before December 31 of each year, the Governor’s Office of Small, 3
578+Minority, and Women Business Affairs shall submit to the Board of Public Works and, 4
579+subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a 5
580+report summarizing the information the Office receives under subsection (a) of this section. 6
626581
627-14–502.1.
582+ (2) IF APPLICABLE, THE REPORT SUBMITTED UNDER PARAGRAPH (1) 7
583+OF THIS SUBSECTION S HALL INCLUDE MIN ORITY BUSINESS ENTER PRISE 8
584+PARTICIPATION DATA F OR EACH UNIT BY INDU STRY TYPE. 9
628585
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.
586+ (2) (3) This report may be prepared in conjunction with the annual 10
587+report required under § 9–306 of the State Government Article. 11
633588
634- (2) THIS SECTION DOES NOT APPLY TO:
589+ (C) (1) IN THIS SUBSECTION , “MITIGATING FA CTORS” INCLUDES 12
590+DOCUMENTED NONPERFOR MANCE OR UNAVAILABIL ITY OF A MINORITY BU SINESS 13
591+ENTERPRISE DESIGNATE D FOR A CONTRACT . 14
635592
636- (I) PROCUREMENTS MADE UN DER SUBTITLE 1 OF THIS TITLE;
593+ (2) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 15
594+BUSINESS AFFAIRS SHALL MAINTAIN AND P UBLISH ON ITS WEBSIT E A LIST OF 16
595+PRIME CONTRACTORS WHO , BASED ON THE RESULTS OF THE COMPLIANCE 17
596+ASSESSMENTS RECEIVED UNDER SUBSECTION (A)(2)(V) OF THIS SECTION , 18
597+PERSISTENTLY FAIL AND THE OFFICE OF STATE PROCUREMENT IN THE 19
598+DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE OFFICE OF 20
599+THE ATTORNEY GENERAL AND THE BOARD OF PUBLIC WORKS, SHALL ADOPT BY 21
600+REGULATION CRITERIA USED TO DETERMINE TH AT A PRIME CONTRACTO R HAS 22
601+PERSISTENTLY FAILED TO MEET CONTRACT GOA LS IN THE ABSENCE OF MITIGATING 23
602+FACTORS. 24
637603
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 ;
604+ (3) THE SPECIAL SECRETARY FOR THE OFFICE OF SMALL, 25
605+MINORITY, AND WOMEN BUSINESS AFFAIRS MAY ADOPT REG ULATIONS NECESSARY 26
606+TO CARRY OUT THE REQ UIREMENTS OF THIS SU BSECTION. 27
641607
642- (III) PROCUREMENTS WITH A TOTAL DOLLAR VALUE U NDER
643-$50,000;
608+ (3) THE CRITERIA ADOPTED UNDER PARAGRAPH (2) OF THIS 28
609+SUBSECTION SHALL INC LUDE THE RESULTS OF THE COMPLIANCE ASSES SMENTS 29
610+MADE UNDER SUBSECTION (A)(2)(V) OF THIS SECTION. 30
644611
645- (IV) THE PROCUREMENT OF HUMAN , SOCIAL, CULTURAL, OR
646-EDUCATIONAL SERVICES ; OR
612+ (4) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 31
613+BUSINESS AFFAIRS SHALL REFER P RIME CONTRACTORS IDE NTIFIED UNDER THE 32
614+CRITERIA ADOPTED UND ER PARAGRAPH (2) OF THIS SUBSECTION T O THE OFFICE 33
615+OF THE ATTORNEY GENERAL FOR DEBARMENT UNDER § 16–203(D)(4) OF THIS 34
616+ARTICLE. 35
617+ 14 SENATE BILL 487
647618
648- (V) TERM AND MASTER CONT RACTS EXEMPTED UNDER
649-SUBSECTION (C) OF THIS SECTION.
650619
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 RESER VE.
653- LAWRENCE J. HOGAN, JR., Governor Ch. 156
620+14–502. 1
654621
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.
622+ (f) (1) The Special Secretary for the Office of Small, Minority, and Women 2
623+Business Affairs, in consultation with the Attorney General, shall establish standards and 3
624+guidelines for participation in the Small Business Reserve Program every 5 years. 4
659625
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 PRACTICABLE TO
665-DO SO.
626+ (2) THE STANDARDS AND GUI DELINES ESTABLISHED UNDER 5
627+PARAGRAPH (1) OF THIS SUBSECTION S HALL ALLOW FOR THE R EGISTRATION OF 6
628+BUSINESSES FOR PARTI CIPATION IN THE SMALL BUSINESS RESERVE PROGRAM 7
629+WITHOUT THE NEED TO FILE ANY ADDITIONAL PAPERWORK OTHER THAN EVIDENCE 8
630+THAT THE BUSINESS : 9
666631
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 .
632+ (I) IS A SMALL BUSINESS UNDER THIS SUBTITLE ; AND 10
672633
673-Part IV. [Construction Contracts –] Prompt Payment of Subcontractors.
634+ (II) 1. IS CERTIFIED AS A MI NORITY BUSINESS ENTE RPRISE 11
635+UNDER SUBTITLE 3 OF THIS TITLE; 12
674636
675-15–226.
637+ 2. IS CERTIFIED UNDER THE FEDERAL DISADVANTAGED 13
638+BUSINESS ENTERPRISE PROGRAM; OR 14
676639
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.
640+ 3. IS QUALIFIED AS A SM ALL BUSINESS UNDER 15
641+SUBTITLE 2 OF THIS TITLE. 16
680642
681- (b) It is the policy of the State that, for work under a State procurement contract
682-[for construction]:
643+14–502.1. 17
683644
684- (1) a contractor shall promptly pay to a subcontractor any undisputed
685-amount to which the subcontractor is entitled; and
645+ (A) (1) THIS SECTION APPLIES TO A PROCUREMENT BY ANY UNIT OR 18
646+AGENCY OF THE EXECUTIVE BRANCH OF STATE GOV ERNMENT FOR GOODS , 19
647+SUPPLIES, SERVICES, MAINTENANCE , CONSTRUCTION , CONSTRUCTION –RELATED 20
648+SERVICES, ARCHITECTURAL SERVIC ES, OR ENGINEERING SERVI CES. 21
686649
687- (2) a subcontractor shall promptly pay to a lower tier subcontractor any
688-undisputed amount to which the lower tier subcontractor is entitled.
650+ (2) THIS SECTION DOES NOT APPLY TO: 22
689651
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.
652+ (I) PROCUREMENTS MADE UN DER SUBTITLE 1 OF THIS TITLE; 23
693653
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:
654+ (II) PROCUREMENTS INVOLVI NG EXPENDITURES OF F EDERAL 24
655+DOLLARS, TO THE EXTENT THAT I NCLUSION IN THE SMAL L BUSINESS RESERVE 25
656+PROGRAM CONFLICTS WI TH FEDERAL LAW OR GR ANT PROVISIONS ; 26
696657
697- (i) notify the subcontractor in writing and state the reason why
698-payment is being withheld; and
658+ (III) PROCUREMENTS WITH A TOTAL DOLLAR VALUE U NDER 27
659+$50,000; 28
699660
700- (ii) provide a copy of the notice to the procurement officer. Ch. 156 2022 LAWS OF MARYLAND
661+ (IV) THE PROCUR EMENT OF HUMAN , SOCIAL, CULTURAL, OR 29
662+EDUCATIONAL SERVICES ; OR 30
663+ SENATE BILL 487 15
701664
702-– 16 –
703665
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.
666+ (V) TERM AND MASTER CONT RACTS EXEMPTED UNDER 1
667+SUBSECTION (C) OF THIS SECTION. 2
707668
708- (2) The notice shall:
669+ (B) (1) A PROCUREMENT WITH A T OTAL DOLLAR VALUE BE TWEEN 3
670+$50,000 AND $500,000 SHALL BE DESIGNATED FOR THE SMALL BUSINESS RESERVE . 4
709671
710- (i) indicate the name of the contractor, the project under which the
711-dispute exists, and the amount in dispute;
672+ (2) EACH UNIT OR AGENCY S HALL IMPLEMENT THIS SUBSECTION IN 5
673+A MANNER CONSISTENT WITH ALL APPLICABLE STATUTES, INCLUDING THE 6
674+REQUIREMENTS OF SUBTITLE 3 OF THIS TITLE. 7
712675
713- (ii) provide an itemized description on which the amount is based;
714-and
676+ (C) (1) A PROCUREMENT MAY BE E XEMPT FROM DESIGNATI ON UNDER 8
677+SUBSECTION (B) OF THIS SECTION IF T HE GOVERNOR’S OFFICE OF SMALL, 9
678+MINORITY, AND WOMEN BUSINESS AFFAIRS CERTIFIES , CONCURRENTLY WITH 10
679+REVIEW OF ANY WAIVER DETERMINATIONS FOR C ERTIFIED MINORITY BU SINESS 11
680+ENTERPRISE PARTICIPA TION CONTRACT GOALS , THAT IT IS NOT PRACT ICABLE TO 12
681+DO SO. 13
715682
716- (iii) if known, provide an explanation for any dispute concerning
717-payment by the contractor.
683+ (2) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF 14
684+GENERAL SERVICES SHALL ASSIST THE GOVERNOR’S OFFICE OF SMALL, 15
685+MINORITY, AND WOMEN BUSINESS AFFAIRS IN ESTABLISHI NG PROCEDURES AND 16
686+GUIDELINES FOR THE E XEMPTION OF PROCUREM ENTS UNDER PARAGRAPH (1) OF 17
687+THIS SUBSECTION. 18
718688
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.
689+Part IV. [Construction Contracts –] Prompt Payment of Subcontractors. 19
722690
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.
691+15–226. 20
726692
727- (3) The representative of the unit shall verbally communicate to the
728-subcontractor the results of discussions with the contractor.
693+ (a) In this section, “undisputed amount” means an amount owed by a contractor 21
694+to a subcontractor for which there is no good faith dispute, including any retainage 22
695+withheld. 23
729696
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.
697+ (b) It is the policy of the State that, for work under a State procurement contract 24
698+[for construction]: 25
733699
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:
700+ (1) a contractor shall promptly pay to a subcontractor any undisputed 26
701+amount to which the subcontractor is entitled; and 27
738702
739- (i) at a time and location designated by the representative of the
740-unit; but
703+ (2) a subcontractor shall promptly pay to a lower tier subcontractor any 28
704+undisputed amount to which the lower tier subcontractor is entitled. 29
741705
742- (ii) not later than 10 days after receiving notice from the
743-subcontractor under subsection (e)(4) of this section.
706+ (c) (1) A contractor shall pay a subcontractor an undisputed amount to which 30
707+the subcontractor is entitled within 10 days of receiving a progress or final payment from 31
708+the State. 32
709+ 16 SENATE BILL 487
744710
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. 156
748711
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.
712+ (2) If a contractor withholds payment from a subcontractor, within the time 1
713+period in which payment normally would be made, the contractor shall: 2
752714
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.
715+ (i) notify the subcontractor in writing and state the reason why 3
716+payment is being withheld; and 4
756717
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:
718+ (ii) provide a copy of the notice to the procurement officer. 5
761719
762- (i) at a time and location designated by the representative of the
763-unit; but
720+ (d) (1) If a subcontractor does not receive a payment within the required time 6
721+period, the subcontractor may give written notice of the nonpayment to the procurement 7
722+officer. 8
764723
765- (ii) not later than 5 days after the close of the 7–day period.
724+ (2) The notice shall: 9
766725
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:
726+ (i) indicate the name of the contractor, the project under which the 10
727+dispute exists, and the amount in dispute; 11
770728
771- (i) shall order that further payments to the contractor not be
772-processed until payment to the subcontractor is verified;
729+ (ii) provide an itemized description on which the amount is based; 12
730+and 13
773731
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
732+ (iii) if known, provide an explanation for any dispute concerning 14
733+payment by the contractor. 15
776734
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.
735+ (e) (1) Within 2 business days of receipt of written notice from a subcontractor, 16
736+a representative of the unit designated by the procurement officer shall verbally contact 17
737+the contractor to ascertain whether the amount withheld is an undisputed amount. 18
780738
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.
739+ (2) If the representative of the unit decides that a part or all of the amount 19
740+withheld is an undisputed amount, the representative of the unit shall instruct the 20
741+contractor to pay the subcontractor the undisputed amount within 3 business days. 21
784742
785- (g) (1) A contractor or a subcontractor may appeal a decision under subsection
786-(f)(6) of this section to the procurement officer.
743+ (3) The representative of the unit shall verbally communicate to the 22
744+subcontractor the results of discussions with the contractor. 23
787745
788- (2) The contractor shall comply with the procurement officer’s decision.
746+ (4) If the contractor is instructed to pay the subcontractor and the 24
747+subcontractor is not paid within the time instructed under paragraph (2) of this subsection, 25
748+the subcontractor may report the nonpayment in writing to the procurement officer. 26
789749
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:
750+ (f) (1) If the subcontractor notifies the procurement officer under subsection 27
751+(e)(4) of this section that payment has not been made, the representative of the unit shall 28
752+schedule a meeting to discuss the dispute with the unit’s project manager, the contractor, 29
753+and the subcontractor: 30
793754
794- (1) affect the rights of the contracting parties under any other provision of
795-law; Ch. 156 2022 LAWS OF MARYLAND
755+ (i) at a time and location designated by the representative of the 31
756+unit; but 32
757+ SENATE BILL 487 17
796758
797-– 18 –
798759
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
760+ (ii) not later than 10 days after receiving notice from the 1
761+subcontractor under subsection (e)(4) of this section. 2
801762
802- (3) result in liability against or prejudice the rights of the unit.
763+ (2) The purpose of the meeting is to establish why the contractor has not 3
764+paid the subcontractor in the required time period. 4
803765
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.
766+ (3) The representative of the unit shall require the parties to provide at the 5
767+meeting any information that the representative believes necessary to evaluate the dispute. 6
807768
808- (j) (1) A unit shall include in each State procurement contract [for
809-construction] a provision:
769+ (4) If the representative of the unit determines that the contractor is 7
770+delinquent in payment of an undisputed amount to the subcontractor, further progress 8
771+payments to the contractor may be withheld until the subcontractor is paid. 9
810772
811- (i) governing prompt payment to subcontractors; and
773+ (5) If payment is not paid to the subcontractor within 7 days after the 10
774+representative of the unit determines that the contractor is delinquent in paying the 11
775+subcontractor under this subsection, the representative shall schedule a second meeting to 12
776+address the dispute: 13
812777
813- (ii) requiring inclusion of a similar provision in each subcontract at
814-any tier.
778+ (i) at a time and location designated by the representative of the 14
779+unit; but 15
815780
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.
781+ (ii) not later than 5 days after the close of the 7–day period. 16
819782
820-16–203.
783+ (6) If, at the completion of the second meeting, the representative of the 17
784+unit determines that the contractor continues to be delinquent in payments owed to the 18
785+subcontractor, the representative: 19
821786
822- (d) A person may be debarred from entering into a contract with the State:
787+ (i) shall order that further payments to the contractor not be 20
788+processed until payment to the subcontractor is verified; 21
823789
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;
790+ (ii) may order that work under the contract be suspended based on 22
791+the failure of the contractor to meet obligations under the contract; and 23
826792
827- (2) if the person is a successor, assignee, subsidiary, or affiliate of a person
828-who is debarred or suspended;
793+ (iii) subject to paragraph (7) of this subsection, may require that the 24
794+contractor pay a penalty to the subcontractor, in an amount not exceeding $100 per day, 25
795+from the date that payment was required under subsection (e)(2) of this section. 26
829796
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:
797+ (7) A penalty may not be imposed under paragraph (6)(iii) of this 27
798+subsection for any period that the representative of the unit determines the subcontractor 28
799+was not diligent in reporting nonpayment to the procurement officer. 29
833800
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
801+ (g) (1) A contractor or a subcontractor may appeal a decision under subsection 30
802+(f)(6) of this section to the procurement officer. 31
836803
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;
804+ (2) The contractor shall comply with the procurement officer’s decision. 32
805+ 18 SENATE BILL 487
841806
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. 156
844807
845-– 19 –
846-FACTORS UNDER THE CR ITERIA ESTABLISHED U NDER § 14–305(C)(2) OF THIS
847-ARTICLE;
808+ (h) An act, failure to act, or decision of a procurement officer or a representative 1
809+of a unit concerning a payment dispute between a contractor and subcontractor or between 2
810+subcontractors under this section may not: 3
848811
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
812+ (1) affect the rights of the contracting parties under any other provision of 4
813+law; 5
852814
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.
815+ (2) be used as evidence on the merits of a dispute between the unit and the 6
816+contractor or the contractor and subcontractor in any other proceeding; or 7
855817
856-Article – State Government
818+ (3) result in liability against or prejudice the rights of the unit. 8
857819
858-9–303.3.
820+ (i) A decision of a procurement officer or a representative of the unit designated 9
821+by the procurement officer under this section is not subject to judicial review or the 10
822+provisions of Part III of this subtitle. 11
859823
860- (A) IN THIS SECTION , “OMBUDSMAN ” MEANS THE MINORITY BUSINESS
861-ENTERPRISE OMBUDSMAN IN THE OFFICE.
824+ (j) (1) A unit shall include in each State procurement contract [for 12
825+construction] a provision: 13
862826
863- (B) THERE IS A MINORITY BUSINESS ENTERPRISE OMBUDSMAN
864-APPOINTED BY THE SPECIAL SECRETARY.
827+ (i) governing prompt payment to subcontractors; and 14
865828
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 .
829+ (ii) requiring inclusion of a similar provision in each subcontract at 15
830+any tier. 16
869831
870- (D) THE OMBUDSMAN SHALL :
832+ (2) The contract provision shall establish procedures and remedies for the 17
833+resolution of payment disputes similar to the process and remedies prescribed in 18
834+subsections (c) through (g) of this section. 19
871835
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
836+16–203. 20
876837
877- (2) SERVE AS A RESOURCE TO MINORITY BUSINESS EN TERPRISE
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
838+ (d) A person may be debarred from entering into a contract with the State: 21
882839
883- (3) CONDUCT TRAININGS FO R PROCUREMENT OFFICE RS 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. 156 2022 LAWS OF MARYLAND
840+ (1) if the Board finds that the person was established or operates in a 22
841+manner designed to evade the application of this title or to defeat the purpose of this title; 23
889842
890-– 20 –
891- (E) IN RESOLVING A DISPUT E UNDER SUBSECTION (D) OF THIS SECTION ,
892-THE OMBUDSMAN MAY :
843+ (2) if the person is a successor, assignee, subsidiary, or affiliate of a person 24
844+who is debarred or suspended; 25
893845
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
846+ (3) EXCEPT AS PROVIDED U NDER ITEM (4) OF THIS SUBSECTION , for 26
847+one of the following violations of a contract provision if the Board believes it to be serious 27
848+enough to justify debarment: 28
897849
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.
850+ (i) the deliberate failure, without good cause, to perform in 29
851+accordance with the specifications, or within the time limit, provided in a contract; or 30
901852
902- (F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION ,
903-WHEN RESOLVING A DIS PUTE UNDE R SUBSECTION (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 .
853+ (ii) within the preceding 5 years, the failure to perform or of 31
854+unsatisfactory performance in accordance with the terms of one or more contracts, unless 32 SENATE BILL 487 19
908855
909- (2) THE OMBUDSMAN MAY DISCLOS E INFORMATION RECEIV ED
910-UNDER THIS SECTION T O THE ASSISTANT ATTORNEY GENERAL ASSIGNED TO T HE
911-OFFICE.
912856
913-9–305.
857+the failure to perform or unsatisfactory performance was caused by acts beyond the control 1
858+of the person; 2
914859
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:
860+ (4) FOR A PERIOD NOT EXC EEDING 3 YEARS IF THE PERSON 3
861+PERSISTENTLY FAILS T O MEET CONTRACT GOAL S IN THE ABSENCE OF MITIGATING 4
862+FACTORS UNDER THE CR ITERIA ESTABLISHED U NDER § 14–305(C)(2) OF THIS 5
863+ARTICLE; 6
917864
918- (7) establish a mentoring program:
865+ [(4)] (5) if the person is a competing contractor, or any officer, employee, 7
866+representative, agent, or consultant of any competing contractor who violates § 13–211 of 8
867+this article; or 9
919868
920- (i) in which larger and more established minority businesses can
921-mentor start–up and small minority businesses; and
869+ [(5)] (6) for any other cause that the Board determines to be so serious as 10
870+to affect the integrity of the procurement process. 11
922871
923- (ii) that incentivizes mentor participation by providing benefits to
924-mentors, including:
872+Article – State Government 12
925873
926- 1. special recognition on the Office website, and in the Office
927-newsletter and participation updates;
874+9–303.3. 13
928875
929- 2. a certificate of participation awarded by the Office;
876+ (A) IN THIS SECTION , “OMBUDSMAN ” MEANS THE MINORITY BUSINESS 14
877+ENTERPRISE OMBUDSMAN IN THE OFFICE. 15
930878
931- 3. the opportunity to present highlights of mentor and
932-protege relationships at an annual appreciation event sponsored by the Office; [and]
879+ (B) THERE IS A MINORITY BUSINESS ENTERPRISE OMBUDSMAN 16
880+APPOINTED BY THE SPECIAL SECRETARY. 17
933881
934- 4. increased networking and educational opportunities; AND LAWRENCE J. HOGAN, JR., Governor Ch. 156
882+ (C) IN ACCORDANCE WITH TH E STATE BUDGET , THE SPECIAL SECRETARY 18
883+SHALL ALLOCATE THE S TAFF AND OFFICE RESOURCES TO T HE OMBUDSMAN 19
884+NECESSARY F OR THE OMBUDSMAN TO FULFILL THE DUTIES OF THE OMBUDSMAN . 20
935885
936-– 21 –
886+ (D) THE OMBUDSMAN SHALL : 21
937887
938- 5. AUTHORIZATION FOR MI NORITY BUSINESSES TH AT
939-HELD CERTIFICATION UNDER 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;
888+ (1) MAKE REASONABLE ASSIST THE PROCUREME NT OFFICER 22
889+MANAGING THE CONTRAC T IN ATTEMPTS TO RESOLVE DISPUTES BETWEEN 23
890+MINORITY BUSINESS EN TERPRISES AND PRIME CONTRACTORS , INCLUDING 24
891+DISPUTES OVER CONTRA CT SCOPE AND PAYMENT S; AND 25
942892
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.
893+ (2) SERVE AS A RESOURCE TO MINORITY BUSINESS EN TERPRISE 26
894+LIAISONS, PROCUREMENT OFFICERS IN UNITS OF STATE GOVERNMENT , PRIME 27
895+CONTRACTORS , AND MINORITY BUSINES S ENTERPRISES IN RES OLVING DISPUTES 28
896+RELATED TO CONTRACTS THAT INCLUDE A MINORITY B USINESS ENTERPRISE 29
897+PARTICIPATION GOAL .; AND 30
950898
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:
899+ (3) CONDUCT TRAININGS FO R PROCUREMENT OFFICE RS IN UNITS OF 31
900+STATE GOVERNMENT ON E NFORCEMENT OF THE RE QUIREMENTS OF TITLE 14, 32
901+SUBTITLE 3 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, INCLUDING THE 33 20 SENATE BILL 487
958902
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;
962903
963- (2) the number of instances in which liquidated damages were actually
964-assessed;
904+ASSESSMENT OF LIQUID ATED DAMAGES UNDER § 14–303(B)(6) OF THE STATE 1
905+FINANCE AND PROCUREMENT ARTICLE. 2
965906
966- (3) the amount of liquidated damages collected, if any;
907+ (E) IN RESOLVING A DISPUT E UNDER SUBSECTION (D) OF THIS SECTION , 3
908+THE OMBUDSMAN MAY : 4
967909
968- (4) the reasons for any failure to assess liquidated damages; and
910+ (1) COMPEL PRIME CONTRAC TORS AND MINORITY BU SINESS 5
911+ENTERPRISES TO PROVI DE DOCUMENTATION REL ATED TO CONTRACT 6
912+PERFORMANCE AND PAYM ENTS; AND 7
969913
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.
914+ (2) ORDER ASSIST THE PROCUREME NT OFFICER MANAGING THE 8
915+CONTRACT IN ORDERING ANY RELEVANT PAYMENT S TO BE MADE IN CONJ UNCTION 9
916+WITH A DISPUTE RESOL UTION. 10
973917
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:
918+ (F) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 11
919+WHEN RESOLVING A DIS PUTE UNDER SUBSECTIO N (D) OF THIS SECTION , THE 12
920+OMBUDSMAN MAY NOT DIS CLOSE INFORMATION RE CEIVED FROM A UNIT O F STATE 13
921+GOVERNMENT , PRIME CONTRACTOR , OR MINORITY BUSINESS ENTERPRISE 14
922+WITHOUT THE WRITTEN CO NSENT OF THE PARTY F ROM WHOM THE INFORMA TION 15
923+WAS OBTAINED . 16
978924
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. 156 2022 LAWS OF MARYLAND
925+ (2) THE OMBUDSMAN MAY DISCLOS E INFORMATION RECEIV ED 17
926+UNDER THIS SECTION T O THE ASSISTANT ATTORNEY GENERAL ASSIGNED TO T HE 18
927+OFFICE. 19
983928
984-– 22 –
985- (i) the effectiveness of changes implemented in response to the
986-recommendations; and
929+9–305. 20
987930
988- (ii) for any recommendations that were not implemented or only
989-partially implemented, whether the Department reaffirms its 2021 recommendation; and
931+ (b) Subject to the limitations of any law that governs the activities of other units 21
932+of the Executive Branch of the State government, the Special Secretary shall: 22
990933
991- (2) any updated findings and recommendations related to the Minority
992-Business Enterprise Program.
934+ (7) establish a mentoring program: 23
993935
994- SECTION 2. 5. AND BE IT FURTHER ENACTE D, That this Act shall take effect
995-July 1, 2022.
936+ (i) in which larger and more established minority businesses can 24
937+mentor start–up and small minority businesses; and 25
996938
997-Approved by the Governor, April 21, 2022.
939+ (ii) that incentivizes mentor participation by providing benefits to 26
940+mentors, including: 27
941+
942+ 1. special recognition on the Office website, and in the Office 28
943+newsletter and participation updates; 29
944+
945+ 2. a certificate of participation awarded by the Office; 30
946+
947+ 3. the opportunity to present highlights of mentor and 31
948+protege relationships at an annual appreciation event sponsored by the Office; [and] 32 SENATE BILL 487 21
949+
950+
951+
952+ 4. increased networking and educational opportunities; AND 1
953+
954+ 5. AUTHORIZATION FOR MI NORITY BUSINESSES TH AT 2
955+HELD CERTIFICATION U NDER TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 3
956+PROCUREMENT ARTICLE AND HAVE BEEN DECERTIFIED TO OBTAI N OR RETAIN 4
957+CERTIFICATION FOR A PERIOD OF TIME SET B Y THE SPECIAL SECRETARY; 5
958+
959+ SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 6
960+2023, the Minority Business Enterprise Ombudsman established under Section 1 of this 7
961+Act shall report to the Senate Budget and Taxation Committee and the House Health and 8
962+Government Operations Committee, in accordance with § 2–1257 of the State Government 9
963+Article, on the activities of the Ombudsman, including whether the number of staff 10
964+allocated to the Ombudsman is adequate to accomplish the requirements of § 9–303.3 of 11
965+the State Government Article, as enacted under Section 1 of this Act. 12
966+
967+ SECTION 3. AND BE IT FURTHER ENACTED, That, on or before June 1, 2024, 13
968+the Governor’s Office of Small, Minority, and Women Business Affairs shall study the use 14
969+of liquidated damages by procurement officers under § 14–303(b)(6) of the State Finance 15
970+and Procurement Article to enforce the requirements of Title 14, Subtitle 3 of the State 16
971+Finance and Procurement Article and report to the Senate Budget and Taxation Committee 17
972+and the House Health and Government Operations Committee, in accordance with § 18
973+2–1257 of the State Government Article, on: 19
974+
975+ (1) the number of instances in which a procurement officer could have 20
976+applied a liquidated damages penalty for failure of a contractor to comply in good faith with 21
977+the provisions of Title 14, Subtitle 3 of the State Finance and Procurement Article; 22
978+
979+ (2) the number of instances in which liquidated damages were actually 23
980+assessed; 24
981+
982+ (3) the amount of liquidated damages collected, if any; 25
983+
984+ (4) the reasons for any failure to assess liquidated damages; and 26
985+
986+ (5) recommendations for effective enforcement of the requirements of Title 27
987+14, Subtitle 3 of the State Finance and Procurement Article, including any suggested 28
988+statutory changes. 29
989+
990+ SECTION 4. AND BE IT FURTHER ENACTED, That, on or before December 1, 30
991+2024, the Department of Legislative Services shall report to the Senate Budget and 31
992+Taxation Committee and the House Health and Government Operations Committee, in 32
993+accordance with § 2–1257 of the State Government Article, on: 33
994+
995+ (1) the status of the recommendations included in the Department’s 2021 34
996+report “Evaluation of the Minority Business Enterprise Program”, including an assessment 35
997+of: 36 22 SENATE BILL 487
998+
999+
1000+
1001+ (i) the effectiveness of changes implemented in response to the 1
1002+recommendations; and 2
1003+
1004+ (ii) for any recommendations that were not implemented or only 3
1005+partially implemented, whether the Department reaffirms its 2021 recommendation; and 4
1006+
1007+ (2) any updated findings and recommendations related to the Minority 5
1008+Business Enterprise Program. 6
1009+
1010+ SECTION 2. 5. AND BE IT FURTHER ENACTE D, That this Act shall take effect 7
1011+July 1, 2022. 8
1012+
1013+
1014+
1015+
1016+Approved:
1017+________________________________________________________________________________
1018+ Governor.
1019+________________________________________________________________________________
1020+ President of the Senate.
1021+________________________________________________________________________________
1022+ Speaker of the House of Delegates.