Maryland 2022 Regular Session

Maryland Senate Bill SB996 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0996
6	6
7	7	SENATE BILL 996
8	8	P2 2lr3200
9	9	CF HB 1458
10	10	By: Senator Patterson
11	11	Introduced and read first time: February 22, 2022
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	State Procurement – Small Business Reserve Program 2
19	19
20	20	FOR the purpose of altering the definition of “small business” for the purposes of the Small 3
21	21	Business Reserve Program by adding a requirement that the principal office of the 4
22	22	business must be located in the State; increasing the minimum percent of a unit’s 5
23	23	procurements that, to the extent practicable, are to be made directly from small 6
24	24	businesses; altering the intervals within which certain standards and guidelines for 7
25	25	participation in the Small Business Reserve Program are required to be established; 8
26	26	and generally relating to the Small Business Reserve Program. 9
27	27
28	28	BY repealing and reenacting, with amendments, 10
29	29	Article – State Finance and Procurement 11
30	30	Section 14–501 and 14–502 12
31	31	Annotated Code of Maryland 13
32	32	(2021 Replacement Volume) 14
33	33
34	34	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
35	35	That the Laws of Maryland read as follows: 16
36	36
37	37	Article – State Finance and Procurement 17
38	38
39	39	14–501. 18
40	40
41	41	(a) In this subtitle the following words have the meanings indicated. 19
42	42
43	43	(b) “Small business” means: 20
44	44
45	45	(1) a certified minority business enterprise, as defined in § 14–301 of this 21
46	46	title, that meets the criteria specified under item (3) of this subsection; 22
47	47
48	48	(2) a veteran–owned small business enterprise, as defined in § 14–601 of 23 2 SENATE BILL 996
49	49
50	50
51	51	this title, that meets the criteria specified under item (3) of this subsection; or 1
52	52
53	53	(3) a business, other than a broker, that meets the following criteria: 2
54	54
55	55	(i) the business is independently owned and operated; 3
56	56
57	57	(ii) the business is not a subsidiary of another business; 4
58	58
59	59	(iii) the business is not dominant in its field of operation; [and] 5
60	60
61	61	(iv) THE BUSINESS ’S PRINCIPAL OFFICE I S LOCATED IN THE 6
62	62	STATE; AND 7
63	63
64	64	(V) 1. A. the wholesale operations of the business did not 8
65	65	employ more than 50 persons in its most recently completed 3 fiscal years; 9
66	66
67	67	B. the retail operations of the business did not employ more 10
68	68	than 25 persons in its most recently completed 3 fiscal years; 11
69	69
70	70	C. the manufacturing operations of the business did not 12
71	71	employ more than 100 persons in its most recently completed 3 fiscal years; 13
72	72
73	73	D. the service operations of the business did not employ more 14
74	74	than 100 persons in its most recently completed 3 fiscal years; 15
75	75
76	76	E. the construction operations of the business did not employ 16
77	77	more than 50 persons in its most recently completed 3 fiscal years; and 17
78	78
79	79	F. the architectural and engineering services of the business 18
80	80	did not employ more than 100 persons in its most recently completed 3 fiscal years; or 19
81	81
82	82	2. A. the gross sales of the wholesale operations of the 20
83	83	business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal 21
84	84	years; 22
85	85
86	86	B. the gross sales of the retail operations of the business did 23
87	87	not exceed an average of $3,000,000 in its most recently completed 3 fiscal years; 24
88	88
89	89	C. the gross sales of the manufacturing operations of the 25
90	90	business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal 26
91	91	years; 27
92	92
93	93	D. the gross sales of the service operations of the business did 28
94	94	not exceed an average of $10,000,000 in its most recently completed 3 fiscal years; 29
95	95
96	96	E. the gross sales of the construction operations of the 30
97	97	business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal 31 SENATE BILL 996 3
98	98
99	99
100	100	years; and 1
101	101
102	102	F. the gross sales of the architectural and engineering 2
103	103	services of the business did not exceed an average of $4,500,000 in its most recently 3
104	104	completed 3 fiscal years. 4
105	105
106	106	(c) “Small business reserve” means those procurements that are limited to 5
107	107	responses from small businesses under § 14–502(b) of this subtitle. 6
108	108
109	109	14–502. 7
110	110
111	111	(a) Except as provided in subsection (d) of this section, this subtitle applies to all 8
112	112	procurements by a unit. 9
113	113
114	114	(b) This subsection does not apply to procurements subject to Subtitle 1 of this 10
115	115	title. 11
116	116
117	117	(c) To the extent practicable, a unit shall structure its procurement procedures to 12
118	118	achieve a minimum of [15%] 30% of the unit’s total dollar value of goods, supplies, services, 13
119	119	maintenance, construction, construction–related services, and architectural and 14
120	120	engineering service contracts to be made directly to small businesses. 15
121	121
122	122	(d) The total dollar value of procurements by a unit does not include the value of 16
123	123	contracts to which this section does not apply because of a conflict with federal law. 17
124	124
125	125	(e) A unit may apply toward the unit’s overall annual Small Business Reserve 18
126	126	payment achievement only those payments resulting from a procurement that is 19
127	127	designated a Small Business Reserve procurement. 20
128	128
129	129	(f) The Special Secretary for the Office of Small, Minority, and Women Business 21
130	130	Affairs, in consultation with the Attorney General, shall establish standards and guidelines 22
131	131	for participation in the Small Business Reserve Program AT LEAST every 5 years. 23
132	132
133	133	SECTION 2. AND BE IT FUR THER ENACTED, That this Act shall take effect 24
134	134	October 1, 2022. 25
135	135