MD
Maryland House Bill HB245

Maryland 2023 Regular Session

Maryland House Bill HB245 Compare Versions

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1- WES MOORE, Governor Ch. 145
21
3-– 1 –
4-Chapter 145
5-(House Bill 245)
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+ *hb0245*
89
9-Minority Business Enterprise Program – Reporting – List of Units
10+HOUSE BILL 245
11+P2 3lr1210
1012
11-FOR the purpose of requiring the Office of State Procurement in the Department of General
12-Services to maintain a list of certain units of the Executive Branch of State
13-government required to report certain information annually to the Governor’s Office
14-of Small, Minority, and Women Business Affairs to include a certain attestation in
15-its annual report beginning on a certain date; requiring the Office to conduct a
16-certain periodic audit to ensure the accuracy of the attestation; requiring a certain
17-annual report to be submitted to the Joint Committee on Fair Practices and State
18-Personnel Oversight; and generally relating to procurement and minority business
19-enterprises.
13+By: Delegates Woods, Acevero, Alston, Bagnall, D. Barnes, Bhandari, Boafo,
14+Charles, Cullison, Guzzone, Harris, Holmes, A. Johnson, S. Johnson, Kaiser,
15+Kelly, R. Lewis, J. Long, McCaskill, Pasteur, Phillips, Ruth, Schmidt,
16+Simpson, Taveras, Taylor, Toles, Turner, Valderrama, White, and Williams
17+Williams, Chisholm, Hill, Hutchinson, Kerr, Kipke, Lopez, Martinez,
18+M. Morgan, Pena–Melnyk, Reilly, Rosenberg, and Szeliga
19+Introduced and read first time: January 23, 2023
20+Assigned to: Health and Government Operations
21+Committee Report: Favorable with amendments
22+House action: Adopted
23+Read second time: February 25, 2023
2024
21-BY repealing and reenacting, with amendments,
22- Article – State Finance and Procurement
23-Section 14–305
24- Annotated Code of Maryland
25- (2021 Replacement Volume and 2022 Supplement)
25+CHAPTER ______
2626
27- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
28-That the Laws of Maryland read as follows:
27+AN ACT concerning 1
2928
30-Article – State Finance and Procurement
29+Minority Business Enterprise Program – Reporting – List of Units 2
3130
32-14–305.
31+FOR the purpose of requiring the Office of State Procurement in the Department of General 3
32+Services to maintain a list of certain units of the Executive Branch of State 4
33+government required to report certain information annually to the Governor’s Office 5
34+of Small, Minority, and Women Business Affairs to include a certain attestation in 6
35+its annual report beginning on a certain date; requiring the Office to conduct a 7
36+certain periodic audit to ensure the accuracy of the attestation; requiring a certain 8
37+annual report to be submitted to the Joint Committee on Fair Practices and State 9
38+Personnel Oversight; and generally relating to procurement and minority business 10
39+enterprises. 11
3340
34- (a) (1) Within 90 days after the end of the fiscal year, each unit shall report to
35-the Governor’s Office of Small, Minority, and Women Business Affairs, AFFAIRS AND the
36-certification agency, and, subject to § 2–1257 of the State Government Article, the Joint
37-Committee on Fair Practices and Personnel Oversight AGENCY.
41+BY repealing and reenacting, with amendments, 12
42+ Article – State Finance and Procurement 13
43+Section 14–305 14
44+ Annotated Code of Maryland 15
45+ (2021 Replacement Volume and 2022 Supplement) 16
3846
39- (2) A report under this subsection shall for the preceding fiscal year:
47+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
48+That the Laws of Maryland read as follows: 18 2 HOUSE BILL 245
4049
41- (i) state the total number and value of procurement contracts
42-between the unit and certified minority business enterprises, by specific category of
43-minority business enterprise and by industry type, including whether the minority
44-business enterprise participated as a prime contractor or as a subcontractor;
4550
46- (ii) indicate the percentage that those procurement contracts
47-represent, by specific category of minority business enterprise and by industry type, of the
48-total number and value of procurement contracts; Ch. 145 2023 LAWS OF MARYLAND
4951
50-– 2 –
52+Article – State Finance and Procurement 1
5153
52- (iii) state the total number and the names of certified minority
53-business enterprises that participated as prime contractors or as subcontractors on
54-procurement contracts awarded by a unit;
54+14–305. 2
5555
56- (iv) for each minority business included in the report under item (iii)
57-of this paragraph, list all procurement contracts awarded by a unit to the minority business
58-enterprise, including a description of the contract and industry type;
56+ (a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 3
57+the Governor’s Office of Small, Minority, and Women Business Affairs, AFFAIRS AND the 4
58+certification agency, and, subject to § 2–1257 of the State Government Article, the Joint 5
59+Committee on Fair Practices and Personnel Oversight AGENCY. 6
5960
60- (v) provide the results of each compliance assessment conducted by
61-the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during
62-the fiscal year:
61+ (2) A report under this subsection shall for the preceding fiscal year: 7
6362
64- 1. the names of each prime contractor and each
65-subcontractor that participated in the contract;
63+ (i) state the total number and value of procurement contracts 8
64+between the unit and certified minority business enterprises, by specific category of 9
65+minority business enterprise and by industry type, including whether the minority 10
66+business enterprise participated as a prime contractor or as a subcontractor; 11
6667
67- 2. the type of good or service provided by the contract;
68+ (ii) indicate the percentage that those procurement contracts 12
69+represent, by specific category of minority business enterprise and by industry type, of the 13
70+total number and value of procurement contracts; 14
6871
69- 3. the minority business enterprise participation goal for the
70-contract;
72+ (iii) state the total number and the names of certified minority 15
73+business enterprises that participated as prime contractors or as subcontractors on 16
74+procurement contracts awarded by a unit; 17
7175
72- 4. whether a waiver was granted for the minority business
73-enterprise participation goal;
76+ (iv) for each minority business included in the report under item (iii) 18
77+of this paragraph, list all procurement contracts awarded by a unit to the minority business 19
78+enterprise, including a description of the contract and industry type; 20
7479
75- 5. the total dollar value of payments made to each prime
76-contractor and by each prime contractor to each subcontractor during the contract term;
80+ (v) provide the results of each compliance assessment conducted by 21
81+the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during 22
82+the fiscal year: 23
7783
78- 6. whether each subcontractor is a certified minority
79-business enterprise; and
84+ 1. the names of each prime contractor and each 24
85+subcontractor that participated in the contract; 25
8086
81- 7. if applicable, a description of factors that may have
82-contributed to failure to achieve the minority business enterprise participation goal for the
83-contract, including documented nonperformance or unavailability of a minority business
84-enterprise; and
87+ 2. the type of good or service provided by the contract; 26
8588
86- (vi) contain other such information as required by the Governor’s
87-Office of Small, Minority, and Women Business Affairs and the certification agency and
88-approved by the Board.
89+ 3. the minority business enterprise participation goal for the 27
90+contract; 28
8991
90- (3) As to procurement contracts for architectural services and engineering
91-services reported under paragraph (2) of this subsection, the report shall identify by
92-separate category of minority business enterprise procurements for:
92+ 4. whether a waiver was granted for the minority business 29
93+enterprise participation goal; 30
9394
94- (i) architectural services; and
95+ 5. the total dollar value of payments made to each prime 31
96+contractor and by each prime contractor to each subcontractor during the contract term; 32
97+ HOUSE BILL 245 3
9598
96- (ii) engineering services. WES MOORE, Governor Ch. 145
9799
98-– 3 –
100+ 6. whether each subcontractor is a certified minority 1
101+business enterprise; and 2
99102
100- (4) A report under this subsection shall be in a form prescribed by the
101-Governor’s Office of Small, Minority, and Women Business Affairs and the certification
102-agency and approved by the Board.
103+ 7. if applicable, a description of factors that may have 3
104+contributed to failure to achieve the minority business enterprise participation goal for the 4
105+contract, including documented nonperformance or unavailability of a minority business 5
106+enterprise; and 6
103107
104- (5) The Special Secretary for the Office of Small, Minority, and Women
105-Business Affairs may waive the requirement for a unit to report minority business
106-participation by industry type under paragraph (2) of this subsection if the spending
107-threshold for the industry type is too low for the unit to provide sufficient data.
108+ (vi) contain other such information as required by the Governor’s 7
109+Office of Small, Minority, and Women Business Affairs and the certification agency and 8
110+approved by the Board. 9
108111
109- (b) (1) On or before December 31 of each year, the Governor’s Office of Small,
110-Minority, and Women Business Affairs shall submit to the Board of Public Works and,
111-subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee
112-AND THE JOINT COMMITTEE ON FAIR PRACTICES AND STATE PERSONNEL
113-OVERSIGHT a report summarizing the information the Office receives under subsection
114-(a) of this section.
112+ (3) As to procurement contracts for architectural services and engineering 10
113+services reported under paragraph (2) of this subsection, the report shall identify by 11
114+separate category of minority business enterprise procurements for: 12
115115
116- (2) If applicable, the report submitted under paragraph (1) of this
117-subsection shall include minority business enterprise participation data for each unit by
118-industry type.
116+ (i) architectural services; and 13
119117
120- (3) This report may be prepared in conjunction with the annual report
121-required under § 9–306 of the State Government Article.
118+ (ii) engineering services. 14
122119
123- (4) (I) BEGINNING WITH THE RE PORT SUBMITTED UNDER
124-PARAGRAPH (1) OF THIS SUBSECTION O N DECEMBER 31, 2023, AND EACH YEAR
125-THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN
126-BUSINESS AFFAIRS SHALL INCLUDE IN THE REPORT AN ATT ESTATION THAT ALL
127-UNITS REQUIRED TO RE PORT UNDER SUBSECTIO N (A) OF THIS SECTION ARE
128-REPRESENTED IN THE R EPORT.
120+ (4) A report under this subsection shall be in a form prescribed by the 15
121+Governor’s Office of Small, Minority, and Women Business Affairs and the certification 16
122+agency and approved by the Board. 17
129123
130- (II) TO ENSURE ACCURACY OF THE ATTESTATION MADE UNDER
131-SUBPARAGRAPH (I) OF THIS PARAGRAPH , ON OR BEFORE DECEMBER 31, 2023, AND
132-EVERY 3 YEARS THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND
133-WOMEN BUSINESS AFFAIRS SHA LL CONDUCT AN AUDIT OF THE EXECUTIVE
134-BRANCH OF STATE GOVERNMENT TO D ETERMINE WHAT ENTITI ES ARE INCLUDED IN
135-THE DEFINITION OF “UNIT” UNDER § 11–101 OF THIS ARTICLE.
124+ (5) The Special Secretary for the Office of Small, Minority, and Women 18
125+Business Affairs may waive the requirement for a unit to report minority business 19
126+participation by industry type under paragraph (2) of this subsection if the spending 20
127+threshold for the industry type is too low for the unit to provide sufficient data. 21
136128
137- (c) (1) In this subsection, “mitigating factors” includes documented
138-nonperformance or unavailability of a minority business enterprise designated for a
139-contract.
129+ (b) (1) On or before December 31 of each year, the Governor’s Office of Small, 22
130+Minority, and Women Business Affairs shall submit to the Board of Public Works and, 23
131+subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee 24
132+AND THE JOINT COMMITTEE ON FAIR PRACTICES AND STATE PERSONNEL 25
133+OVERSIGHT a report summarizing the information the Office receives under subsection 26
134+(a) of this section. 27
140135
141- (2) The Governor’s Office of Small, Minority, and Women Business Affairs
142-and the Office of State Procurement in the Department of General Services, in consultation
143-with the Office of the Attorney General and the Board of Public Works, shall adopt by Ch. 145 2023 LAWS OF MARYLAND
136+ (2) If applicable, the report submitted under paragraph (1) of this 28
137+subsection shall include minority business enterprise participation data for each unit by 29
138+industry type. 30
144139
145-– 4 –
146-regulation criteria used to determine that a prime contractor has persistently failed to meet
147-contract goals in the absence of mitigating factors.
140+ (3) This report may be prepared in conjunction with the annual report 31
141+required under § 9–306 of the State Government Article. 32
148142
149- (3) The criteria adopted under paragraph (2) of this subsection shall
150-include the results of the compliance assessments made under subsection (a)(2)(v) of this
151-section.
143+ (4) (I) BEGINNING WITH THE RE PORT SUBMITTED UNDER 33
144+PARAGRAPH (1) OF THIS SUBSECTION O N DECEMBER 31, 2023, AND EACH YEAR 34
145+THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN 35 4 HOUSE BILL 245
152146
153- (4) The Governor’s Office of Small, Minority, and Women Business Affairs
154-shall refer prime contractors identified under the criteria adopted under paragraph (2) of
155-this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of
156-this article.
157147
158- (D) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF
159-GENERAL SERVICES SHALL MAINTA IN A LIST OF THE UNITS REQUIRED TO RE PORT
160-UNDER SUBSECTION (A) OF THIS SECTION.
148+BUSINESS AFFAIRS SHALL INCLUDE IN THE REPORT AN ATT ESTATION THAT ALL 1
149+UNITS REQUIRED TO REPO RT UNDER SUBSECTION (A) OF THIS SECTION ARE 2
150+REPRESENTED IN THE R EPORT. 3
161151
162- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
163-October 1, 2023.
152+ (II) TO ENSURE ACCURACY OF THE ATTESTATION MADE UNDER 4
153+SUBPARAGRAPH (I) OF THIS PARAGRAPH , ON OR BEFORE DECEMBER 31, 2023, AND 5
154+EVERY 3 YEARS THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND 6
155+WOMEN BUSINESS AFFAIRS SHALL CONDUCT AN AUDIT OF THE EXECUTIVE 7
156+BRANCH OF STATE GOVERNMENT TO D ETERMINE WHAT ENTITI ES ARE INCLUDED IN 8
157+THE DEFINITION OF “UNIT” UNDER § 11–101 OF THIS ARTICLE. 9
164158
165-Approved by the Governor, April 24, 2023.
159+ (c) (1) In this subsection, “mitigating factors” includes documented 10
160+nonperformance or unavailability of a minority business enterprise designated for a 11
161+contract. 12
162+
163+ (2) The Governor’s Office of Small, Minority, and Women Business Affairs 13
164+and the Office of State Procurement in the Department of General Services, in consultation 14
165+with the Office of the Attorney General and the Board of Public Works, shall adopt by 15
166+regulation criteria used to determine that a prime contractor has persistently failed to meet 16
167+contract goals in the absence of mitigating factors. 17
168+
169+ (3) The criteria adopted under paragraph (2) of this subsection shall 18
170+include the results of the compliance assessments made under subsection (a)(2)(v) of this 19
171+section. 20
172+
173+ (4) The Governor’s Office of Small, Minority, and Women Business Affairs 21
174+shall refer prime contractors identified under the criteria adopted under paragraph (2) of 22
175+this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of 23
176+this article. 24
177+
178+ (D) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF 25
179+GENERAL SERVICES SHALL MAINTA IN A LIST OF THE UNI TS REQUIRED TO REPOR T 26
180+UNDER SUBSECTION (A) OF THIS SECTION. 27
181+
182+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
183+October 1, 2023. 29
184+