WES MOORE, Governor Ch. 145
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Chapter 145
(House Bill 245)
AN ACT concerning
Minority Business Enterprise Program – Reporting – List of Units
FOR the purpose of requiring the Office of State Procurement in the Department of General
Services to maintain a list of certain units of the Executive Branch of State
government required to report certain information annually to the Governor’s Office
of Small, Minority, and Women Business Affairs to include a certain attestation in
its annual report beginning on a certain date; requiring the Office to conduct a
certain periodic audit to ensure the accuracy of the attestation; requiring a certain
annual report to be submitted to the Joint Committee on Fair Practices and State
Personnel Oversight; and generally relating to procurement and minority business
enterprises.
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 14–305
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Finance and Procurement
14–305.
(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to
the Governor’s Office of Small, Minority, and Women Business Affairs, AFFAIRS AND the
certification agency, and, subject to § 2–1257 of the State Government Article, the Joint
Committee on Fair Practices and Personnel Oversight AGENCY.
(2) A report under this subsection shall for the preceding fiscal year:
(i) state the total number and value of procurement contracts
between the unit and certified minority business enterprises, by specific category of
minority business enterprise and by industry type, including whether the minority
business enterprise participated as a prime contractor or as a subcontractor;
(ii) indicate the percentage that those procurement contracts
represent, by specific category of minority business enterprise and by industry type, of the
total number and value of procurement contracts; Ch. 145 2023 LAWS OF MARYLAND
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(iii) state the total number and the names of certified minority
business enterprises that participated as prime contractors or as subcontractors on
procurement contracts awarded by a unit;
(iv) for each minority business included in the report under item (iii)
of this paragraph, list all procurement contracts awarded by a unit to the minority business
enterprise, including a description of the contract and industry type;
(v) provide the results of each compliance assessment conducted by
the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during
the fiscal year:
1. the names of each prime contractor and each
subcontractor that participated in the contract;
2. the type of good or service provided by the contract;
3. the minority business enterprise participation goal for the
contract;
4. whether a waiver was granted for the minority business
enterprise participation goal;
5. the total dollar value of payments made to each prime
contractor and by each prime contractor to each subcontractor during the contract term;
6. whether each subcontractor is a certified minority
business enterprise; and
7. if applicable, a description of factors that may have
contributed to failure to achieve the minority business enterprise participation goal for the
contract, including documented nonperformance or unavailability of a minority business
enterprise; and
(vi) contain other such information as required by the Governor’s
Office of Small, Minority, and Women Business Affairs and the certification agency and
approved by the Board.
(3) As to procurement contracts for architectural services and engineering
services reported under paragraph (2) of this subsection, the report shall identify by
separate category of minority business enterprise procurements for:
(i) architectural services; and
(ii) engineering services. WES MOORE, Governor Ch. 145
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(4) A report under this subsection shall be in a form prescribed by the
Governor’s Office of Small, Minority, and Women Business Affairs and the certification
agency and approved by the Board.
(5) The Special Secretary for the Office of Small, Minority, and Women
Business Affairs may waive the requirement for a unit to report minority business
participation by industry type under paragraph (2) of this subsection if the spending
threshold for the industry type is too low for the unit to provide sufficient data.
(b) (1) On or before December 31 of each year, the Governor’s Office of Small,
Minority, and Women Business Affairs shall submit to the Board of Public Works and,
subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee
AND THE JOINT COMMITTEE ON FAIR PRACTICES AND STATE PERSONNEL
OVERSIGHT a report summarizing the information the Office receives under subsection
(a) of this section.
(2) If applicable, the report submitted under paragraph (1) of this
subsection shall include minority business enterprise participation data for each unit by
industry type.
(3) This report may be prepared in conjunction with the annual report
required under § 9–306 of the State Government Article.
(4) (I) BEGINNING WITH THE RE PORT SUBMITTED UNDER
PARAGRAPH (1) OF THIS SUBSECTION O N DECEMBER 31, 2023, AND EACH YEAR
THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN
BUSINESS AFFAIRS SHALL INCLUDE IN THE REPORT AN ATT ESTATION THAT ALL
UNITS REQUIRED TO RE PORT UNDER SUBSECTIO N (A) OF THIS SECTION ARE
REPRESENTED IN THE R EPORT.
(II) TO ENSURE ACCURACY OF THE ATTESTATION MADE UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH , ON OR BEFORE DECEMBER 31, 2023, AND
EVERY 3 YEARS THEREAFTER , THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND
WOMEN BUSINESS AFFAIRS SHA LL CONDUCT AN AUDIT OF THE EXECUTIVE
BRANCH OF STATE GOVERNMENT TO D ETERMINE WHAT ENTITI ES ARE INCLUDED IN
THE DEFINITION OF “UNIT” UNDER § 11–101 OF THIS ARTICLE.
(c) (1) In this subsection, “mitigating factors” includes documented
nonperformance or unavailability of a minority business enterprise designated for a
contract.
(2) The Governor’s Office of Small, Minority, and Women Business Affairs
and the Office of State Procurement in the Department of General Services, in consultation
with the Office of the Attorney General and the Board of Public Works, shall adopt by Ch. 145 2023 LAWS OF MARYLAND
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regulation criteria used to determine that a prime contractor has persistently failed to meet
contract goals in the absence of mitigating factors.
(3) The criteria adopted under paragraph (2) of this subsection shall
include the results of the compliance assessments made under subsection (a)(2)(v) of this
section.
(4) The Governor’s Office of Small, Minority, and Women Business Affairs
shall refer prime contractors identified under the criteria adopted under paragraph (2) of
this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of
this article.
(D) THE OFFICE OF STATE PROCUREMENT IN THE DEPARTMENT OF
GENERAL SERVICES SHALL MAINTA IN A LIST OF THE UNITS REQUIRED TO RE PORT
UNDER SUBSECTION (A) OF THIS SECTION.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, April 24, 2023.