EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Williams, Chisholm, Hill, Hutchinson, Kerr, Kipke, Lopez, Martinez,
M. Morgan, Pena–Melnyk, Reilly, Rosenberg, and Szeliga
Introduced and read first time: January 23, 2023
Assigned to: Health and Government Operations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 25, 2023
CHAPTER ______
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 to include a certain attestation in 6
its annual report beginning on a certain date; requiring the Office to conduct a 7
certain periodic audit to ensure the accuracy of the attestation; requiring a certain 8
annual report to be submitted to the Joint Committee on Fair Practices and State 9
Personnel Oversight; and generally relating to procurement and minority business 10
enterprises. 11
BY repealing and reenacting, with amendments, 12
Article – State Finance and Procurement 13
Section 14–305 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2022 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18 2 HOUSE BILL 245
Article – State Finance and Procurement 1
14–305. 2
(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 3
the Governor’s Office of Small, Minority, and Women Business Affairs, AFFAIRS AND the 4
certification agency, and, subject to § 2–1257 of the State Government Article, the Joint 5
Committee on Fair Practices and Personnel Oversight AGENCY. 6
(2) A report under this subsection shall for the preceding fiscal year: 7
(i) state the total number and value of procurement contracts 8
between the unit and certified minority business enterprises, by specific category of 9
minority business enterprise and by industry type, including whether the minority 10
business enterprise participated as a prime contractor or as a subcontractor; 11
(ii) indicate the percentage that those procurement contracts 12
represent, by specific category of minority business enterprise and by industry type, of the 13
total number and value of procurement contracts; 14
(iii) state the total number and the names of certified minority 15
business enterprises that participated as prime contractors or as subcontractors on 16
procurement contracts awarded by a unit; 17
(iv) for each minority business included in the report under item (iii) 18
of this paragraph, list all procurement contracts awarded by a unit to the minority business 19
enterprise, including a description of the contract and industry type; 20
(v) provide the results of each compliance assessment conducted by 21
the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during 22
the fiscal year: 23
1. the names of each prime contractor and each 24
subcontractor that participated in the contract; 25
2. the type of good or service provided by the contract; 26
3. the minority business enterprise participation goal for the 27
contract; 28
4. whether a waiver was granted for the minority business 29
enterprise participation goal; 30
5. the total dollar value of payments made to each prime 31
contractor and by each prime contractor to each subcontractor during the contract term; 32
HOUSE BILL 245 3
6. whether each subcontractor is a certified minority 1
business enterprise; and 2
7. if applicable, a description of factors that may have 3
contributed to failure to achieve the minority business enterprise participation goal for the 4
contract, including documented nonperformance or unavailability of a minority business 5
enterprise; and 6
(vi) contain other such information as required by the Governor’s 7
Office of Small, Minority, and Women Business Affairs and the certification agency and 8
approved by the Board. 9
(3) As to procurement contracts for architectural services and engineering 10
services reported under paragraph (2) of this subsection, the report shall identify by 11
separate category of minority business enterprise procurements for: 12
(i) architectural services; and 13
(ii) engineering services. 14
(4) A report under this subsection shall be in a form prescribed by the 15
Governor’s Office of Small, Minority, and Women Business Affairs and the certification 16
agency and approved by the Board. 17
(5) The Special Secretary for the Office of Small, Minority, and Women 18
Business Affairs may waive the requirement for a unit to report minority business 19
participation by industry type under paragraph (2) of this subsection if the spending 20
threshold for the industry type is too low for the unit to provide sufficient data. 21
(b) (1) On or before December 31 of each year, the Governor’s Office of Small, 22
Minority, and Women Business Affairs shall submit to the Board of Public Works and, 23
subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee 24
AND THE JOINT COMMITTEE ON FAIR PRACTICES AND STATE PERSONNEL 25
OVERSIGHT a report summarizing the information the Office receives under subsection 26
(a) of this section. 27
(2) If applicable, the report submitted under paragraph (1) of this 28
subsection shall include minority business enterprise participation data for each unit by 29
industry type. 30
(3) This report may be prepared in conjunction with the annual report 31
required under § 9–306 of the State Government Article. 32
(4) (I) BEGINNING WITH THE RE PORT SUBMITTED UNDER 33
PARAGRAPH (1) OF THIS SUBSECTION O N DECEMBER 31, 2023, AND EACH YEAR 34
THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 35 4 HOUSE BILL 245
BUSINESS AFFAIRS SHALL INCLUDE IN THE REPORT AN ATT ESTATION THAT ALL 1
UNITS REQUIRED TO REPO RT UNDER SUBSECTION (A) OF THIS SECTION ARE 2
REPRESENTED IN THE R EPORT. 3
(II) TO ENSURE ACCURACY OF THE ATTESTATION MADE UNDER 4
SUBPARAGRAPH (I) OF THIS PARAGRAPH , ON OR BEFORE DECEMBER 31, 2023, AND 5
EVERY 3 YEARS THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND 6
WOMEN BUSINESS AFFAIRS SHALL CONDUCT AN AUDIT OF THE EXECUTIVE 7
BRANCH OF STATE GOVERNMENT TO D ETERMINE WHAT ENTITI ES ARE INCLUDED IN 8
THE DEFINITION OF “UNIT” UNDER § 11–101 OF THIS ARTICLE. 9
(c) (1) In this subsection, “mitigating factors” includes documented 10
nonperformance or unavailability of a minority business enterprise designated for a 11
contract. 12
(2) The Governor’s Office of Small, Minority, and Women Business Affairs 13
and the Office of State Procurement in the Department of General Services, in consultation 14
with the Office of the Attorney General and the Board of Public Works, shall adopt by 15
regulation criteria used to determine that a prime contractor has persistently failed to meet 16
contract goals in the absence of mitigating factors. 17
(3) The criteria adopted under paragraph (2) of this subsection shall 18
include the results of the compliance assessments made under subsection (a)(2)(v) of this 19
section. 20
(4) The Governor’s Office of Small, Minority, and Women Business Affairs 21
shall refer prime contractors identified under the criteria adopted under paragraph (2) of 22
this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of 23
this article. 24
(D) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF 25
GENERAL SERVICES SHALL MAINTA IN A LIST OF THE UNI TS REQUIRED TO REPOR T 26
UNDER SUBSECTION (A) OF THIS SECTION. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2023. 29