EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0245*
HOUSE BILL 245
P2 3lr1210
By: Delegates Woods, Acevero, Alston, Bagnall, D. Barnes, Bhandari, Boafo,
Charles, Cullison, Guzzone, Harris, Holmes, A. Johnson, S. Johnson, Kaiser,
Kelly, R. Lewis, J. Long, McCaskill, Pasteur, Phillips, Ruth, Schmidt,
Simpson, Taveras, Taylor, Toles, Turner, Valderrama, White, and Williams
Introduced and read first time: January 23, 2023
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Minority Business Enterprise Program – Reporting – List of Units 2
FOR the purpose of requiring the Office of State Procurement in the Department of General 3
Services to maintain a list of certain units of the Executive Branch of State 4
government required to report certain information annually to the Governor’s Office 5
of Small, Minority, and Women Business Affairs; and generally relating to 6
procurement and minority business enterprises. 7
BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 14–305 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2022 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – State Finance and Procurement 15
14–305. 16
(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 17
the Governor’s Office of Small, Minority, and Women Business Affairs, the certification 18
agency, and, subject to § 2–1257 of the State Government Article, the Joint Committee on 19
Fair Practices and Personnel Oversight. 20
(2) A report under this subsection shall for the preceding fiscal year: 21
2 HOUSE BILL 245
(i) state the total number and value of procurement contracts 1
between the unit and certified minority business enterprises, by specific category of 2
minority business enterprise and by industry type, including whether the minority 3
business enterprise participated as a prime contractor or as a subcontractor; 4
(ii) indicate the percentage that those procurement contracts 5
represent, by specific category of minority business enterprise and by industry type, of the 6
total number and value of procurement contracts; 7
(iii) state the total number and the names of certified minority 8
business enterprises that participated as prime contractors or as subcontractors on 9
procurement contracts awarded by a unit; 10
(iv) for each minority business included in the report under item (iii) 11
of this paragraph, list all procurement contracts awarded by a unit to the minority business 12
enterprise, including a description of the contract and industry type; 13
(v) provide the results of each compliance assessment conducted by 14
the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during 15
the fiscal year: 16
1. the names of each prime contractor and each 17
subcontractor that participated in the contract; 18
2. the type of good or service provided by the contract; 19
3. the minority business enterprise participation goal for the 20
contract; 21
4. whether a waiver was granted for the minority business 22
enterprise participation goal; 23
5. the total dollar value of payments made to each prime 24
contractor and by each prime contractor to each subcontractor during the contract term; 25
6. whether each subcontractor is a certified minority 26
business enterprise; and 27
7. if applicable, a description of factors that may have 28
contributed to failure to achieve the minority business enterprise participation goal for the 29
contract, including documented nonperformance or unavailability of a minority business 30
enterprise; and 31
(vi) contain other such information as required by the Governor’s 32
Office of Small, Minority, and Women Business Affairs and the certification agency and 33
approved by the Board. 34
HOUSE BILL 245 3
(3) As to procurement contracts for architectural services and engineering 1
services reported under paragraph (2) of this subsection, the report shall identify by 2
separate category of minority business enterprise procurements for: 3
(i) architectural services; and 4
(ii) engineering services. 5
(4) A report under this subsection shall be in a form prescribed by the 6
Governor’s Office of Small, Minority, and Women Business Affairs and the certification 7
agency and approved by the Board. 8
(5) The Special Secretary for the Office of Small, Minority, and Women 9
Business Affairs may waive the requirement for a unit to report minority business 10
participation by industry type under paragraph (2) of this subsection if the spending 11
threshold for the industry type is too low for the unit to provide sufficient data. 12
(b) (1) On or before December 31 of each year, the Governor’s Office of Small, 13
Minority, and Women Business Affairs shall submit to the Board of Public Works and, 14
subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a 15
report summarizing the information the Office receives under subsection (a) of this section. 16
(2) If applicable, the report submitted under paragraph (1) of this 17
subsection shall include minority business enterprise participation data for each unit by 18
industry type. 19
(3) This report may be prepared in conjunction with the annual report 20
required under § 9–306 of the State Government Article. 21
(c) (1) In this subsection, “mitigating factors” includes documented 22
nonperformance or unavailability of a minority business enterprise designated for a 23
contract. 24
(2) The Governor’s Office of Small, Minority, and Women Business Affairs 25
and the Office of State Procurement in the Department of General Services, in consultation 26
with the Office of the Attorney General and the Board of Public Works, shall adopt by 27
regulation criteria used to determine that a prime contractor has persistently failed to meet 28
contract goals in the absence of mitigating factors. 29
(3) The criteria adopted under paragraph (2) of this subsection shall 30
include the results of the compliance assessments made under subsection (a)(2)(v) of this 31
section. 32
(4) The Governor’s Office of Small, Minority, and Women Business Affairs 33
shall refer prime contractors identified under the criteria adopted under paragraph (2) of 34
this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of 35
this article. 36 4 HOUSE BILL 245
(D) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF 1
GENERAL SERVICES SHALL MAINTA IN A LIST OF THE UNI TS REQUIRED TO REPORT 2
UNDER SUBSECTION (A) OF THIS SECTION. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2023. 5