EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0996*
SENATE BILL 996
P2 2lr3200
CF HB 1458
By: Senator Patterson
Introduced and read first time: February 22, 2022
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
State Procurement – Small Business Reserve Program 2
FOR the purpose of altering the definition of “small business” for the purposes of the Small 3
Business Reserve Program by adding a requirement that the principal office of the 4
business must be located in the State; increasing the minimum percent of a unit’s 5
procurements that, to the extent practicable, are to be made directly from small 6
businesses; altering the intervals within which certain standards and guidelines for 7
participation in the Small Business Reserve Program are required to be established; 8
and generally relating to the Small Business Reserve Program. 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 14–501 and 14–502 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – State Finance and Procurement 17
14–501. 18
(a) In this subtitle the following words have the meanings indicated. 19
(b) “Small business” means: 20
(1) a certified minority business enterprise, as defined in § 14–301 of this 21
title, that meets the criteria specified under item (3) of this subsection; 22
(2) a veteran–owned small business enterprise, as defined in § 14–601 of 23 2 SENATE BILL 996
this title, that meets the criteria specified under item (3) of this subsection; or 1
(3) a business, other than a broker, that meets the following criteria: 2
(i) the business is independently owned and operated; 3
(ii) the business is not a subsidiary of another business; 4
(iii) the business is not dominant in its field of operation; [and] 5
(iv) THE BUSINESS ’S PRINCIPAL OFFICE I S LOCATED IN THE 6
STATE; AND 7
(V) 1. A. the wholesale operations of the business did not 8
employ more than 50 persons in its most recently completed 3 fiscal years; 9
B. the retail operations of the business did not employ more 10
than 25 persons in its most recently completed 3 fiscal years; 11
C. the manufacturing operations of the business did not 12
employ more than 100 persons in its most recently completed 3 fiscal years; 13
D. the service operations of the business did not employ more 14
than 100 persons in its most recently completed 3 fiscal years; 15
E. the construction operations of the business did not employ 16
more than 50 persons in its most recently completed 3 fiscal years; and 17
F. the architectural and engineering services of the business 18
did not employ more than 100 persons in its most recently completed 3 fiscal years; or 19
2. A. the gross sales of the wholesale operations of the 20
business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal 21
years; 22
B. the gross sales of the retail operations of the business did 23
not exceed an average of $3,000,000 in its most recently completed 3 fiscal years; 24
C. the gross sales of the manufacturing operations of the 25
business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal 26
years; 27
D. the gross sales of the service operations of the business did 28
not exceed an average of $10,000,000 in its most recently completed 3 fiscal years; 29
E. the gross sales of the construction operations of the 30
business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal 31 SENATE BILL 996 3
years; and 1
F. the gross sales of the architectural and engineering 2
services of the business did not exceed an average of $4,500,000 in its most recently 3
completed 3 fiscal years. 4
(c) “Small business reserve” means those procurements that are limited to 5
responses from small businesses under § 14–502(b) of this subtitle. 6
14–502. 7
(a) Except as provided in subsection (d) of this section, this subtitle applies to all 8
procurements by a unit. 9
(b) This subsection does not apply to procurements subject to Subtitle 1 of this 10
title. 11
(c) To the extent practicable, a unit shall structure its procurement procedures to 12
achieve a minimum of [15%] 30% of the unit’s total dollar value of goods, supplies, services, 13
maintenance, construction, construction–related services, and architectural and 14
engineering service contracts to be made directly to small businesses. 15
(d) The total dollar value of procurements by a unit does not include the value of 16
contracts to which this section does not apply because of a conflict with federal law. 17
(e) A unit may apply toward the unit’s overall annual Small Business Reserve 18
payment achievement only those payments resulting from a procurement that is 19
designated a Small Business Reserve procurement. 20
(f) The Special Secretary for the Office of Small, Minority, and Women Business 21
Affairs, in consultation with the Attorney General, shall establish standards and guidelines 22
for participation in the Small Business Reserve Program AT LEAST every 5 years. 23
SECTION 2. AND BE IT FUR THER ENACTED, That this Act shall take effect 24
October 1, 2022. 25