MD
Maryland House Bill HB962

Maryland 2024 Regular Session

Maryland House Bill HB962 Compare Versions

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1- WES MOORE, Governor Ch. 583
21
3-– 1 –
4-Chapter 583
5-(House Bill 962)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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+ *hb0962*
89
9-State Procurement – Small and Minority Business Reserve Program – Goals and
10-Outreach Program
11-(Parren J. Mitchell MBE Prime Contracting Act)
10+HOUSE BILL 962
11+P2 4lr2688
12+ CF SB 673
13+By: Delegates Phillips, Boafo, Harris, J. Long, McCaskill, Pasteur, Roberson,
14+Roberts, White Holland, Wilkins, Williams, and Woods Woods, Alston,
15+Bagnall, Bhandari, Chisholm, Cullison, Guzzone, Hill, Hutchinson,
16+S. Johnson, Kaiser, Kerr, Kipke, R. Lewis, Lopez, Martinez, M. Morgan,
17+Pena–Melnyk, Reilly, Rosenberg, Szeliga, and Taveras
18+Introduced and read first time: February 2, 2024
19+Assigned to: Health and Government Operations
20+Committee Report: Favorable with amendments
21+House action: Adopted
22+Read second time: March 3, 2024
1223
13-FOR the purpose of altering the Small Business Reserve Program to be the Small and
14-Minority Business Reserve Program; requiring a unit of State government, to the
15-extent practicable, to structure its procurement procedures to achieve a certain
16-minimum percentage of the unit’s total dollar value of certain contracts to be made
17-directly to certified minority business enterprises; requiring a certain study to
18-include the Small and Minority Business Reserve Program altering a certain
19-participation goal for certain small businesses for certain procurement contracts;
20-requiring the certification agency, in consultation with the Governor’s Office of
21-Small, Minority, and Women Business Affairs to develop a certain outreach program;
22-altering the content of certain unit reports; and generally relating to the Small and
23-Minority Business Reserve Program.
24+CHAPTER ______
2425
25-BY repealing and reenacting, without amendments,
26- Article – State Finance and Procurement
27-Section 14–301(a), (b), and (d) (c), (d), and (e)
28- Annotated Code of Maryland
29- (2021 Replacement Volume and 2023 Supplement)
26+AN ACT concerning 1
3027
31-BY repealing and reenacting, with amendments,
32- Article – State Finance and Procurement
33-Section 14–501, 14–502, and 14–505
34- Annotated Code of Maryland
35- (2021 Replacement Volume and 2023 Supplement)
28+State Procurement – Small and Minority Business Reserve Program – Goals and 2
29+Outreach Program 3
30+(Parren J. Mitchell MBE Prime Contracting Act) 4
3631
37-BY adding to
38- Article – State Finance and Procurement
39-Section 14–504.1
40- Annotated Code of Maryland
41- (2021 Replacement Volume and 2023 Supplement)
32+FOR the purpose of altering the Small Business Reserve Program to be the Small and 5
33+Minority Business Reserve Program; requiring a unit of State government, to the 6
34+extent practicable, to structure its procurement procedures to achieve a certain 7
35+minimum percentage of the unit’s total dollar value of certain contracts to be made 8
36+directly to certified minority business enterprises; requiring a certain study to 9
37+include the Small and Minority Business Reserve Program altering a certain 10
38+participation goal for certain small businesses for certain procurement contracts; 11
39+requiring the certification agency, in consultation with the Governor’s Office of 12
40+Small, Minority, and Women Business Affairs to develop a certain outreach program; 13
41+altering the content of certain unit reports; and generally relating to the Small and 14
42+Minority Business Reserve Program. 15
4243
43-BY repealing and reenacting, with amendments,
44- Article – State Finance and Procurement
45-Section 14–501, 14–502, 14–502.1, and 14–503 through 14–505 to be under the
46-amended subtitle “Subtitle 5. Small and Minority Business Reserve Program”
47- Annotated Code of Maryland
48- (2021 Replacement Volume and 2023 Supplement)
49- Ch. 583 2024 LAWS OF MARYLAND
44+BY repealing and reenacting, without amendments, 16
45+ Article – State Finance and Procurement 17
46+Section 14–301(a), (b), and (d) (c), (d), and (e) 18
47+ Annotated Code of Maryland 19
48+ (2021 Replacement Volume and 2023 Supplement) 20 2 HOUSE BILL 962
5049
51-– 2 –
52-BY repealing and reenacting, with amendments,
53-Chapter 154 of the Acts of the General Assembly of 2012, as amended by Chapters
54-200 and 201 of the Acts of the General Assembly of 2013, Chapter 340 of the
55-Acts of the General Assembly of 2017, Chapter 117 of the Acts of the General
56-Assembly of 2022, and Chapters 137 and 138 of the Acts of the General
57-Assembly of 2023
58- Section 2
5950
60- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
61-That the Laws of Maryland read as follows:
6251
63-Article – State Finance and Procurement
52+BY repealing and reenacting, with amendments, 1
53+ Article – State Finance and Procurement 2
54+Section 14–501, 14–502, and 14–505 3
55+ Annotated Code of Maryland 4
56+ (2021 Replacement Volume and 2023 Supplement) 5
6457
65-14–301.
58+BY adding to 6
59+ Article – State Finance and Procurement 7
60+Section 14–504.1 8
61+ Annotated Code of Maryland 9
62+ (2021 Replacement Volume and 2023 Supplement) 10
6663
67- (a) In this subtitle the following words have the meanings indicated.
64+BY repealing and reenacting, with amendments, 11
65+ Article – State Finance and Procurement 12
66+Section 14–501, 14–502, 14–502.1, and 14–503 through 14–505 to be under the 13
67+amended subtitle “Subtitle 5. Small and Minority Business Reserve Program” 14
68+ Annotated Code of Maryland 15
69+ (2021 Replacement Volume and 2023 Supplement) 16
6870
69- (b) “Certification” means the determination that a legal entity is a minority
70-business enterprise for the purposes of this subtitle.
71+BY repealing and reenacting, with amendments, 17
72+Chapter 154 of the Acts of the General Assembly of 2012, as amended by Chapters 18
73+200 and 201 of the Acts of the General Assembly of 2013, Chapter 340 of the 19
74+Acts of the General Assembly of 2017, Chapter 117 of the Acts of the General 20
75+Assembly of 2022, and Chapters 137 and 138 of the Acts of the General 21
76+Assembly of 2023 22
77+ Section 2 23
7178
72- (c) “Certification agency” means the agency designated by the Board of Public
73-Works under § 14–303(b) of this subtitle to certify and decertify minority business
74-enterprises.
79+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
80+That the Laws of Maryland read as follows: 25
7581
76- (d) “Certified minority business enterprise” means a minority business enterprise
77-that holds a certification.
82+Article – State Finance and Procurement 26
7883
79- (e) “Economically disadvantaged individual” means a socially disadvantaged
80-individual whose ability to compete in the free enterprise system has been impaired due to
81-diminished capital and credit opportunities as compared to others in the same or similar
82-line of business who are not socially disadvantaged.
84+14–301. 27
8385
84-Subtitle 5. Small AND MINORITY Business Reserve Program.
86+ (a) In this subtitle the following words have the meanings indicated. 28
8587
86-14–501.
88+ (b) “Certification” means the determination that a legal entity is a minority 29
89+business enterprise for the purposes of this subtitle. 30
8790
88- (a) In this subtitle the following words have the meanings indicated.
91+ (c) “Certification agency” means the agency designated by the Board of Public 31
92+Works under § 14–303(b) of this subtitle to certify and decertify minority business 32
93+enterprises. 33
8994
90- (B) “CERTIFIED MINORITY BU SINESS ENTERPRISE ” HAS THE MEANING
91-STATED UNDER § 14–301 OF THIS TITLE.
95+ (d) “Certified minority business enterprise” means a minority business enterprise 34
96+that holds a certification. 35
97+ HOUSE BILL 962 3
9298
93- (B) “CERTIFICATION AGENCY ” HAS THE MEANING STAT ED IN § 14–301 OF
94-THIS TITLE.
95- WES MOORE, Governor Ch. 583
9699
97-– 3 –
98- (C) “ECONOMICALLY DISADVAN TAGED INDIVIDUAL ” HAS THE MEANING
99-STATED IN § 14–301 OF THIS TITLE.
100+ (e) “Economically disadvantaged individual” means a socially disadvantaged 1
101+individual whose ability to compete in the free enterprise system has been impaired due to 2
102+diminished capital and credit opportunities as compared to others in the same or similar 3
103+line of business who are not socially disadvantaged. 4
100104
101- [(b)] (C) (D) “Small business” means:
105+Subtitle 5. Small AND MINORITY Business Reserve Program. 5
102106
103- (1) a certified minority business enterprise[, as defined in § 14–301 of this
104-title,] that meets the criteria specified under item (3) of this subsection;
107+14–501. 6
105108
106- (2) a veteran–owned small business enterprise, as defined in § 14–601 of
107-this title, that meets the criteria specified under item (3) of this subsection; or
109+ (a) In this subtitle the following words have the meanings indicated. 7
108110
109- (3) a business, other than a broker, that meets the following criteria:
111+ (B) “CERTIFIED MINORITY BU SINESS ENTERPRISE ” HAS THE MEANING 8
112+STATED UNDER § 14–301 OF THIS TITLE. 9
110113
111- (i) the business is independently owned and operated;
114+ (B) “CERTIFICATION AGENCY ” HAS THE MEANING STA TED IN § 14–301 OF 10
115+THIS TITLE. 11
112116
113- (ii) the business is not a subsidiary of another business;
117+ (C) “ECONOMICALLY DISADVAN TAGED INDIVIDUAL ” HAS THE MEANING 12
118+STATED IN § 14–301 OF THIS TITLE. 13
114119
115- (iii) the business is not dominant in its field of operation; and
120+ [(b)] (C) (D) “Small business” means: 14
116121
117- (iv) 1. A. the wholesale operations of the business did not
118-employ more than 50 persons in its most recently completed 3 fiscal years;
122+ (1) a certified minority business enterprise[, as defined in § 14–301 of this 15
123+title,] that meets the criteria specified under item (3) of this subsection; 16
119124
120- B. the retail operations of the business did not employ more
121-than 25 persons in its most recently completed 3 fiscal years;
125+ (2) a veteran–owned small business enterprise, as defined in § 14–601 of 17
126+this title, that meets the criteria specified under item (3) of this subsection; or 18
122127
123- C. the manufacturing operations of the business did not
124-employ more than 100 persons in its most recently completed 3 fiscal years;
128+ (3) a business, other than a broker, that meets the following criteria: 19
125129
126- D. the service operations of the business did not employ more
127-than 100 persons in its most recently completed 3 fiscal years;
130+ (i) the business is independently owned and operated; 20
128131
129- E. the construction operations of the business did not employ
130-more than 50 persons in its most recently completed 3 fiscal years; and
132+ (ii) the business is not a subsidiary of another business; 21
131133
132- F. the architectural and engineering services of the business
133-did not employ more than 100 persons in its most recently completed 3 fiscal years; or
134+ (iii) the business is not dominant in its field of operation; and 22
134135
135- 2. A. the gross sales of the wholesale operations of the
136-business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal
137-years;
136+ (iv) 1. A. the wholesale operations of the business did not 23
137+employ more than 50 persons in its most recently completed 3 fiscal years; 24
138138
139- B. the gross sales of the retail operations of the business did
140-not exceed an average of $3,000,000 in its most recently completed 3 fiscal years;
141- Ch. 583 2024 LAWS OF MARYLAND
139+ B. the retail operations of the business did not employ more 25
140+than 25 persons in its most recently completed 3 fiscal years; 26
142141
143-– 4 –
144- C. the gross sales of the manufacturing operations of the
145-business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal
146-years;
142+ C. the manufacturing operations of the business did not 27
143+employ more than 100 persons in its most recently completed 3 fiscal years; 28
144+ 4 HOUSE BILL 962
147145
148- D. the gross sales of the service operations of the business did
149-not exceed an average of $10,000,000 in its most recently completed 3 fiscal years;
150146
151- E. the gross sales of the construction operations of the
152-business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal
153-years; and
147+ D. the service operations of the business did not employ more 1
148+than 100 persons in its most recently completed 3 fiscal years; 2
154149
155- F. the gross sales of the architectural and engineering
156-services of the business did not exceed an average of $4,500,000 in its most recently
157-completed 3 fiscal years.
150+ E. the construction operations of the business did not employ 3
151+more than 50 persons in its most recently completed 3 fiscal years; and 4
158152
159- [(c)] (D) (E) “Small AND MINORITY business reserve” means those procurements
160-that are limited to responses from small businesses OR CERTIFIED MINORIT Y BUSINESS
161-ENTERPRISES under [§ 14–502(b)] § 14–502(C) of this subtitle.
153+ F. the architectural and engineering services of the business 5
154+did not employ more than 100 persons in its most recently completed 3 fiscal years; or 6
162155
163-14–502.
156+ 2. A. the gross sales of the wholesale operations of the 7
157+business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal 8
158+years; 9
164159
165- (a) Except as provided in subsection (d) of this section, this subtitle applies to all
166-procurements by a unit.
160+ B. the gross sales of the retail operations of the business did 10
161+not exceed an average of $3,000,000 in its most recently completed 3 fiscal years; 11
167162
168- (b) This section does not apply to procurements subject to Subtitle 1 of this title.
163+ C. the gross sales of the manufacturing operations of the 12
164+business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal 13
165+years; 14
169166
170- (c) To the extent practicable, a unit shall structure its procurement procedures to
171-achieve a minimum of:
167+ D. the gross sales of the service operations of the business did 15
168+not exceed an average of $10,000,000 in its most recently completed 3 fiscal years; 16
172169
173- (1) 15% 20% of the unit’s total dollar value of goods, supplies, services,
174-maintenance, construction, construction–related services, and architectural and
175-engineering service contracts to be made directly to small businesses; AND
170+ E. the gross sales of the construction operations of the 17
171+business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal 18
172+years; and 19
176173
177- (2) 10% OF THE UNIT’S TOTAL DOLLAR VALUE OF GOODS , SUPPLIES,
178-SERVICES, MAINTENANCE , CONSTRUCTION , CONSTRUCTION –RELATED SERVICES ,
179-AND ARCHITECTURAL AN D ENGINEERING SERVIC E CONTRACTS TO BE MA DE
180-DIRECTLY TO CERTIFIE D MINORITY BUSINESS ENTERPRISES .
174+ F. the gross sales of the architectural and engineering 20
175+services of the business did not exceed an average of $4,500,000 in its most recently 21
176+completed 3 fiscal years. 22
181177
182- (d) The total dollar value of procurements by a unit does not include the value of
183-contracts to which this section does not apply because of a conflict with federal law.
178+ [(c)] (D) (E) “Small AND MINORITY business reserve” means those procurements 23
179+that are limited to responses from small businesses OR CERTIFIED MINORIT Y BUSINESS 24
180+ENTERPRISES under [§ 14–502(b)] § 14–502(C) of this subtitle. 25
184181
185- (e) A unit may apply toward the unit’s overall annual Small AND MINORITY
186-Business Reserve payment achievement only those payments resulting from a procurement
187-that is designated a Small AND MINORITY Business Reserve procurement ACHIEVEMENT
188-AWARDS MADE TO A SMA LL BUSINESS UNDER DE SIGNATED SMALL BUSIN ESS WES MOORE, Governor Ch. 583
182+14–502. 26
189183
190-– 5 –
191-RESERVE CONTRACTS AS WELL AS AWARDS MADE TO A SMALL BUSINESS UNDER
192-NONDESIGNATE D SMALL BUSINESS RES ERVE CONTRACTS .
184+ (a) Except as provided in subsection (d) of this section, this subtitle applies to all 27
185+procurements by a unit. 28
193186
194- (f) (1) The Special Secretary for the Office of Small, Minority, and Women
195-Business Affairs, in consultation with the Attorney General, shall establish standards and
196-guidelines for participation in the Small AND MINORITY Business Reserve Program every
197-5 years.
187+ (b) This section does not apply to procurements subject to Subtitle 1 of this title. 29
198188
199- (2) The standards and guidelines established under paragraph (1) of this
200-subsection shall allow for the registration of businesses for participation in the Small AND
201-MINORITY Business Reserve Program without the need to file any additional paperwork
202-other than evidence that the business:
189+ (c) To the extent practicable, a unit shall structure its procurement procedures to 30
190+achieve a minimum of: 31
191+ HOUSE BILL 962 5
203192
204- (i) is a small business under this subtitle; and
205193
206- (ii) 1. is certified as a minority business enterprise under
207-Subtitle 3 of this title;
194+ (1) 15% 20% of the unit’s total dollar value of goods, supplies, services, 1
195+maintenance, construction, construction–related services, and architectural and 2
196+engineering service contracts to be made directly to small businesses; AND 3
208197
209- 2. is certified under the federal Disadvantaged Business
210-Enterprise Program; or
198+ (2) 10% OF THE UNIT’S TOTAL DOLLAR VALUE OF GOODS, SUPPLIES, 4
199+SERVICES, MAINTENANCE , CONSTRUCTION , CONSTRUCTION –RELATED SERVICES , 5
200+AND ARCHITECTURAL AN D ENGINEERING SERVIC E CONTRACTS TO BE MA DE 6
201+DIRECTLY TO CERTIFIE D MINORITY BUSINESS ENTERPRISES . 7
211202
212- 3. is qualified as a small business under Subtitle 2 of this
213-title.
203+ (d) The total dollar value of procurements by a unit does not include the value of 8
204+contracts to which this section does not apply because of a conflict with federal law. 9
214205
215-14–502.1.
206+ (e) A unit may apply toward the unit’s overall annual Small AND MINORITY 10
207+Business Reserve payment achievement only those payments resulting from a procurement 11
208+that is designated a Small AND MINORITY Business Reserve procurement ACHIEVEMENT 12
209+AWARDS MADE TO A SMA LL BUSINESS UNDER DE SIGNATED SMALL BUSIN ESS 13
210+RESERVE CONTRACTS AS WELL AS AWARDS MADE TO A SMALL BUSINESS UNDER 14
211+NONDESIGNATED SMALL BUSINESS RESERVE CON TRACTS. 15
216212
217- (a) (1) This section applies to a procurement by any unit or agency of the
218-Executive Branch of State government for goods, supplies, services, maintenance,
219-construction, construction–related services, architectural services, or engineering services.
213+ (f) (1) The Special Secretary for the Office of Small, Minority, and Women 16
214+Business Affairs, in consultation with the Attorney General, shall establish standards and 17
215+guidelines for participation in the Small AND MINORITY Business Reserve Program every 18
216+5 years. 19
220217
221- (2) This section does not apply to:
218+ (2) The standards and guidelines established under paragraph (1) of this 20
219+subsection shall allow for the registration of businesses for participation in the Small AND 21
220+MINORITY Business Reserve Program without the need to file any additional paperwork 22
221+other than evidence that the business: 23
222222
223- (i) procurements made under Subtitle 1 of this title;
223+ (i) is a small business under this subtitle; and 24
224224
225- (ii) procurements involving expenditures of federal dollars, to the
226-extent that inclusion in the small business reserve program conflicts with federal law or
227-grant provisions;
225+ (ii) 1. is certified as a minority business enterprise under 25
226+Subtitle 3 of this title; 26
228227
229- (iii) procurements with a total dollar value under $50,000;
228+ 2. is certified under the federal Disadvantaged Business 27
229+Enterprise Program; or 28
230230
231- (iv) the procurement of human, social, cultural, or educational
232-services; or
231+ 3. is qualified as a small business under Subtitle 2 of this 29
232+title. 30
233233
234- (v) term and master contracts exempted under subsection (c) of this
235-section.
236- Ch. 583 2024 LAWS OF MARYLAND
234+14–502.1. 31
237235
238-– 6 –
239- (b) (1) A procurement with a total dollar value between $50,000 and $500,000
240-shall be designated for the small AND MINORITY business reserve.
236+ (a) (1) This section applies to a procurement by any unit or agency of the 32
237+Executive Branch of State government for goods, supplies, services, maintenance, 33
238+construction, construction–related services, architectural services, or engineering services. 34
239+ 6 HOUSE BILL 962
241240
242- (2) Each unit or agency shall implement this subsection in a manner
243-consistent with all applicable statutes, including the requirements of Subtitle 3 of this title.
244241
245- (c) (1) A procurement may be exempt from designation under subsection (b) of
246-this section if the Governor’s Office of Small, Minority, and Women Business Affairs
247-certifies, concurrently with review of any waiver determinations for certified minority
248-business enterprise participation contract goals, that it is not practicable to do so.
242+ (2) This section does not apply to: 1
249243
250- (2) The Office of State Procurement in the Department of General Services
251-shall assist the Governor’s Office of Small, Minority, and Women Business Affairs in
252-establishing procedures and guidelines for the exemption of procurements under paragraph
253-(1) of this subsection.
244+ (i) procurements made under Subtitle 1 of this title; 2
254245
255-14–503.
246+ (ii) procurements involving expenditures of federal dollars, to the 3
247+extent that inclusion in the small business reserve program conflicts with federal law or 4
248+grant provisions; 5
256249
257- (a) The Governor’s Office of Small, Minority, and Women Business Affairs shall
258-adopt regulations to establish procedures for compiling and maintaining a comprehensive
259-bidder’s list of qualified small businesses AND CERTIFIED MINORITY B USINESS
260-ENTERPRISES that shall be posted on the Internet.
250+ (iii) procurements with a total dollar value under $50,000; 6
261251
262- (b) The Governor’s Office of Small, Minority, and Women Business Affairs shall:
252+ (iv) the procurement of human, social, cultural, or educational 7
253+services; or 8
263254
264- (1) establish guidelines for Small AND MINORITY Business Reserve
265-Program administration;
255+ (v) term and master contracts exempted under subsection (c) of this 9
256+section. 10
266257
267- (2) ensure agency compliance with the Small AND MINORITY Business
268-Reserve Program;
258+ (b) (1) A procurement with a total dollar value between $50,000 and $500,000 11
259+shall be designated for the small AND MINORITY business reserve. 12
269260
270- (3) provide training and technical assistance to agency personnel; and
261+ (2) Each unit or agency shall implement this subsection in a manner 13
262+consistent with all applicable statutes, including the requirements of Subtitle 3 of this title. 14
271263
272- (4) collect data regarding the State’s utilization of small AND MINORITY
273-business reserve vendors.
264+ (c) (1) A procurement may be exempt from designation under subsection (b) of 15
265+this section if the Governor’s Office of Small, Minority, and Women Business Affairs 16
266+certifies, concurrently with review of any waiver determinations for certified minority 17
267+business enterprise participation contract goals, that it is not practicable to do so. 18
274268
275- (c) Each unit shall ensure compliance with the regulations set forth in subsection
276-(a) of this section.
269+ (2) The Office of State Procurement in the Department of General Services 19
270+shall assist the Governor’s Office of Small, Minority, and Women Business Affairs in 20
271+establishing procedures and guidelines for the exemption of procurements under paragraph 21
272+(1) of this subsection. 22
277273
278-14–504.
274+14–503. 23
279275
280- (a) Any procurement by a unit of goods, supplies, services, maintenance,
281-construction, construction–related services, architectural services, and engineering
282-services shall be eligible for designation for the small AND MINORITY business reserve.
283- WES MOORE, Governor Ch. 583
276+ (a) The Governor’s Office of Small, Minority, and Women Business Affairs shall 24
277+adopt regulations to establish procedures for compiling and maintaining a comprehensive 25
278+bidder’s list of qualified small businesses AND CERTIFIED MINORI TY BUSINESS 26
279+ENTERPRISE S that shall be posted on the Internet. 27
284280
285-– 7 –
286- (b) A solicitation for procurement that has been designated for a small AND
287-MINORITY business reserve shall be published in the same manner as required for an
288-invitation for bids as set forth in § 13–103(c) of this article.
281+ (b) The Governor’s Office of Small, Minority, and Women Business Affairs shall: 28
289282
290- (c) The procurement officer of a unit shall award a procurement contract
291-designated for a small AND MINORITY business reserve to the small business OR
292-CERTIFIED MINORITY B USINESS ENTERPRISE that submits a responsive bid that:
283+ (1) establish guidelines for Small AND MINORITY Business Reserve 29
284+Program administration; 30
293285
294- (1) is the lowest bid price;
286+ (2) ensure agency compliance with the Small AND MINORITY Business 31
287+Reserve Program; 32
288+ HOUSE BILL 962 7
295289
296- (2) if the invitation for bids so provides, is the lowest evaluated bid price;
297-or
298290
299- (3) is the bid or proposal most favorable to the State within the small
300-business reserve.
291+ (3) provide training and technical assistance to agency personnel; and 1
301292
302-14–505.
293+ (4) collect data regarding the State’s utilization of small AND MINORITY 2
294+business reserve vendors. 3
303295
304- (a) Within 60 days after the enactment of the budget bill by the General
305-Assembly, each unit shall submit a report to the Governor’s Office of Small, Minority, and
306-Women Business Affairs that complies with the reporting requirements set forth in
307-COMAR 21.11.01.06.
296+ (c) Each unit shall ensure compliance with the regulations set forth in subsection 4
297+(a) of this section. 5
308298
309- (b) (1) Within 90 days after the end of each fiscal year, each unit shall submit
310-a report to the Governor’s Office of Small, Minority, and Women Business Affairs that
311-complies with the requirements of paragraph (2) of this subsection.
299+14–504. 6
312300
313- (2) For the preceding fiscal year, the report shall:
301+ (a) Any procurement by a unit of goods, supplies, services, maintenance, 7
302+construction, construction–related services, architectural services, and engineering 8
303+services shall be eligible for designation for the small AND MINORITY business reserve. 9
314304
315- (i) state the total number and the dollar value of payments the unit
316-made [to small businesses] under designated small AND MINORITY business reserve
317-contracts TO:
305+ (b) A solicitation for procurement that has been designated for a small AND 10
306+MINORITY business reserve shall be published in the same manner as required for an 11
307+invitation for bids as set forth in § 13–103(c) of this article. 12
318308
319- 1. SMALL BUSINESSES ; AND
309+ (c) The procurement officer of a unit shall award a procurement contract 13
310+designated for a small AND MINORITY business reserve to the small business OR 14
311+CERTIFIED MINORITY B USINESS ENTERPRISE that submits a responsive bid that: 15
320312
321- 2. CERTIFIED MINORITY B USINESS ENTERPRISES ;
313+ (1) is the lowest bid price; 16
322314
323- (ii) state the total number and the dollar value of payments the unit
324-made [to small businesses] under nondesignated small AND MINORITY business reserve
325-contracts, including purchase card procurements, TO:
315+ (2) if the invitation for bids so provides, is the lowest evaluated bid price; 17
316+or 18
326317
327- 1. SMALL BUSINESSES ; AND
318+ (3) is the bid or proposal most favorable to the State within the small 19
319+business reserve. 20
328320
329- 2. CERTIFIED MINORIT Y BUSINESS ENTERPRIS ES;
330- Ch. 583 2024 LAWS OF MARYLAND
321+14–505. 21
331322
332-– 8 –
333- (iii) state the total dollar value of payments the unit made under
334-procurement contracts; and
323+ (a) Within 60 days after the enactment of the budget bill by the General 22
324+Assembly, each unit shall submit a report to the Governor’s Office of Small, Minority, and 23
325+Women Business Affairs that complies with the reporting requirements set forth in 24
326+COMAR 21.11.01.06. 25
335327
336- (iv) contain other such information as required by the Governor’s
337-Office of Small, Minority, and Women Business Affairs.
328+ (b) (1) Within 90 days after the end of each fiscal year, each unit shall submit 26
329+a report to the Governor’s Office of Small, Minority, and Women Business Affairs that 27
330+complies with the requirements of paragraph (2) of this subsection. 28
338331
339- (c) On or before December 31 of each year, the Governor’s Office of Small,
340-Minority, and Women Business Affairs shall submit to the Board of Public Works and,
341-subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a
342-report summarizing the information the Office receives under subsection (b) of this section.
332+ (2) For the preceding fiscal year, the report shall: 29
343333
344-14–504.1.
334+ (i) state the total number and the dollar value of payments the unit 30
335+made [to small businesses] under designated small AND MINORITY business reserve 31
336+contracts TO: 32 8 HOUSE BILL 962
345337
346- (A) THE CERTIFICATION AGE NCY, IN CONSULTATION WITH THE
347-GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS,
348-SHALL DEVELOP AN OUT REACH PROGRAM TO INC REASE THE PARTICIPATIO N OF
349-SMALL BUSINESSES THA T ARE OWNED BY ECONO MICALLY DISADVANTAGE D
350-INDIVIDUALS PARTICIP ATING IN THE SMALL BUSINESS RESERVE PROGRAM.
351338
352- (B) ON OR BEFORE DECEMBER 1 EACH YEAR, THE CERTIFICATION AG ENCY
353-SHALL SUBMIT TO THE BOARD OF PUBLIC WORKS AND, SUBJECT TO § 2–1257 OF
354-THE STATE GOVERNMENT ARTICLE, TO THE LEGISLATIVE POLICY COMMITTEE A
355-REPORT ON:
356339
357- (1) THE STATUS OF THE OU TREACH PROGRAM REQUI RED UNDER
358-SUBSECTION (A) OF THIS SECTION; AND
340+ 1. SMALL BUSINESSES ; AND 1
359341
360- (2) THE TOTAL NUMBER AND DOLLAR VALUE OF AWAR DS MADE TO
361-SMALL BUSINESSES OWN ED BY ECONOMICALLY D ISADVANTAGED INDIVID UALS
362-UNDER DESIGNATED SMA LL BUSINESS RESERVE CONTRACTS.
342+ 2. CERTIFIED MINORITY B USINESS ENTERPRISES ; 2
363343
364-14–505.
344+ (ii) state the total number and the dollar value of payments the unit 3
345+made [to small businesses] under nondesignated small AND MINORITY business reserve 4
346+contracts, including purchase card procurements, TO: 5
365347
366- (a) Within 60 days after the enactment of the budget bill by the General
367-Assembly, each unit shall submit a report to the Governor’s Office of Small, Minority, and
368-Women Business Affairs that complies with the reporting requirements set forth in
369-COMAR 21.11.01.06.
348+ 1. SMALL BUSINESSES ; AND 6
370349
371- (b) (1) Within 90 days after the end of each fiscal year, each unit shall submit
372-a report to the Governor’s Office of Small, Minority, and Women Business Affairs that
373-complies with the requirements of paragraph (2) of this subsection.
350+ 2. CERTIFIED MINORIT Y BUSINESS ENTERPRIS ES; 7
374351
375- (2) For the preceding fiscal year, the report shall:
376- WES MOORE, Governor Ch. 583
352+ (iii) state the total dollar value of payments the unit made under 8
353+procurement contracts; and 9
377354
378-– 9 –
379- (i) state the total number and the dollar value of [payments]
380-AWARDS the unit made to small businesses under designated small business reserve
381-contracts;
355+ (iv) contain other such information as required by the Governor’s 10
356+Office of Small, Minority, and Women Business Affairs. 11
382357
383- (ii) state the total number and the dollar value of [payments]
384-AWARDS the unit made to small businesses under nondesignated small business reserve
385-contracts, including purchase card procurements;
358+ (c) On or before December 31 of each year, the Governor’s Office of Small, 12
359+Minority, and Women Business Affairs shall submit to the Board of Public Works and, 13
360+subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a 14
361+report summarizing the information the Office receives under subsection (b) of this section. 15
386362
387- (iii) state the total dollar value of [payments] AWARDS the unit made
388-under procurement contracts; and
363+14–504.1. 16
389364
390- (iv) contain other such information as required by the Governor’s
391-Office of Small, Minority, and Women Business Affairs.
365+ (A) THE CERTIFICATION AGE NCY, IN CONSULTATION WITH THE 17
366+GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, 18
367+SHALL DEVELOP AN OUT REACH PROGRAM TO INC REASE THE PARTICIPATIO N OF 19
368+SMALL BUSINESSES THA T ARE OWNED BY ECONO MICALLY DISADVANTAGE D 20
369+INDIVIDUALS PARTICIP ATING IN THE SMALL BUSINESS RESERVE PROGRAM. 21
392370
393- (c) On or before December 31 of each year, the Governor’s Office of Small,
394-Minority, and Women Business Affairs shall submit to the Board of Public Works and,
395-subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a
396-report summarizing the information the Office receives under subsection (b) of this section.
371+ (B) ON OR BEFORE DECEMBER 1 EACH YEAR, THE CERTIFICATION AG ENCY 22
372+SHALL SUBMIT TO THE BOARD OF PUBLIC WORKS AND, SUBJECT TO § 2–1257 OF 23
373+THE STATE GOVERNMENT ARTICLE, TO THE LEGISLATIVE POLICY COMMITTEE A 24
374+REPORT ON: 25
397375
398-Chapter 154 of the Acts of 2012, as amended by Chapters 200 and 201 of the Acts
399-of 2013, Chapter 340 of the Acts of 2017, Chapter 117 of the Acts of 2022, and
400-Chapters 137 and 138 of the Acts of 2023
376+ (1) THE STATUS OF THE OU TREACH PROGRAM REQUI RED UNDER 26
377+SUBSECTION (A) OF THIS SECTION; AND 27
401378
402- SECTION 2. AND BE IT FURTHER ENACTED, That the Certification Agency, in
403-consultation with the General Assembly and the Office of the Attorney General, shall
404-initiate a study of the Minority Business Enterprise Program AND THE SMALL AND
405-MINORITY BUSINESS RESERVE PROGRAM to evaluate the [Program’s] PROGRAMS’
406-continued compliance with the requirements of the Croson decision and any subsequent
407-federal or constitutional requirements. In preparation for the study, the Board of Public
408-Works may adopt regulations authorizing a unit of State government to require bidders
409-and offerors to submit information necessary for the conduct of the study. The Board of
410-Public Works may designate that certain information received in accordance with
411-regulations adopted under this section shall be confidential. Notwithstanding that certain
412-information may be designated by the Board of Public Works as confidential, the
413-Certification Agency may provide the information to any person that is under contract with
414-the Certification Agency to assist in conducting the study. The study shall also evaluate
415-race–neutral programs and other methods that can be used to address the needs of minority
416-businesses. The final report on the study shall be submitted to the Legislative Policy
417-Committee of the General Assembly, in accordance with § 2–1257 of the State Government
418-Article, on or before September 30, 2024, so that the General Assembly may review the
419-report before the 2025 Session.
379+ (2) THE TOTAL NUMBER AND DOLLAR VALUE OF AWAR DS MADE TO 28
380+SMALL BUSINESSES OWN ED BY ECONOMICALLY D ISADVANTAGED INDIVID UALS 29
381+UNDER DESIGNATED SMA LL BUSINESS RESERVE CONTRACTS. 30
420382
421- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
422-1, 2024. It shall remain effective for a period of 1 year and, at the end of June 30, 2025, this
423-Act, with no further action required by the General Assembly, shall be abrogated and of no
424-further force and effect October 1, 2024. Ch. 583 2024 LAWS OF MARYLAND
383+14–505. 31 HOUSE BILL 962 9
425384
426-– 10 –
427385
428-Approved by the Governor, May 9, 2024.
386+
387+ (a) Within 60 days after the enactment of the budget bill by the General 1
388+Assembly, each unit shall submit a report to the Governor’s Office of Small, Minority, and 2
389+Women Business Affairs that complies with the reporting requirements set forth in 3
390+COMAR 21.11.01.06. 4
391+
392+ (b) (1) Within 90 days after the end of each fiscal year, each unit shall submit 5
393+a report to the Governor’s Office of Small, Minority, and Women Business Affairs that 6
394+complies with the requirements of paragraph (2) of this subsection. 7
395+
396+ (2) For the preceding fiscal year, the report shall: 8
397+
398+ (i) state the total number and the dollar value of [payments] 9
399+AWARDS the unit made to small businesses under designated small business reserve 10
400+contracts; 11
401+
402+ (ii) state the total number and the dollar value of [payments] 12
403+AWARDS the unit made to small businesses under nondesignated small business reserve 13
404+contracts, including purchase card procurements; 14
405+
406+ (iii) state the total dollar value of [payments] AWARDS the unit made 15
407+under procurement contracts; and 16
408+
409+ (iv) contain other such information as required by the Governor’s 17
410+Office of Small, Minority, and Women Business Affairs. 18
411+
412+ (c) On or before December 31 of each year, the Governor’s Office of Small, 19
413+Minority, and Women Business Affairs shall submit to the Board of Public Works and, 20
414+subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a 21
415+report summarizing the information the Office receives under subsection (b) of this section. 22
416+
417+Chapter 154 of the Acts of 2012, as amended by Chapters 200 and 201 of the Acts 23
418+of 2013, Chapter 340 of the Acts of 2017, Chapter 117 of the Acts of 2022, and 24
419+Chapters 137 and 138 of the Acts of 2023 25
420+
421+ SECTION 2. AND BE IT FURTHER ENACTED, That the Certification Agency, in 26
422+consultation with the General Assembly and the Office of the Attorney General, shall 27
423+initiate a study of the Minority Business Enterprise Program AND THE SMALL AND 28
424+MINORITY BUSINESS RESERVE PROGRAM to evaluate the [Program’s] PROGRAMS’ 29
425+continued compliance with the requirements of the Croson decision and any subsequent 30
426+federal or constitutional requirements. In preparation for the study, the Board of Public 31
427+Works may adopt regulations authorizing a unit of State government to require bidders 32
428+and offerors to submit information necessary for the conduct of the study. The Board of 33
429+Public Works may designate that certain information received in accordance with 34
430+regulations adopted under this section shall be confidential. Notwithstanding that certain 35
431+information may be designated by the Board of Public Works as confidential, the 36 10 HOUSE BILL 962
432+
433+
434+Certification Agency may provide the information to any person that is under contract with 1
435+the Certification Agency to assist in conducting the study. The study shall also evaluate 2
436+race–neutral programs and other methods that can be used to address the needs of minority 3
437+businesses. The final report on the study shall be submitted to the Legislative Policy 4
438+Committee of the General Assembly, in accordance with § 2–1257 of the State Government 5
439+Article, on or before September 30, 2024, so that the General Assembly may review the 6
440+report before the 2025 Session. 7
441+
442+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
443+1, 2024. It shall remain effective for a period of 1 year and, at the end of June 30, 2025, this 9
444+Act, with no further action required by the General Assembly, shall be abrogated and of no 10
445+further force and effect October 1, 2024. 11
446+
447+
448+
449+Approved:
450+________________________________________________________________________________
451+ Governor.
452+________________________________________________________________________________
453+ Speaker of the House of Delegates.
454+________________________________________________________________________________
455+ President of the Senate.