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.
*sb0587*
SENATE BILL 587
P2 4lr2174
By: Senator McCray
Introduced and read first time: January 25, 2024
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 10, 2024
CHAPTER ______
AN ACT concerning 1
Procurement – Minority Business Participation – Real Property Title Insurance 2
Services Reporting 3
FOR the purpose of requiring certain reporting relating to minority business participation 4
in State procurement by industry type to include real property title insurance 5
services; prohibiting the Special Secretary for the Governor’s Office of Small, 6
Minority, and Women Business Affairs from waiving a certain reporting requirement 7
related to real property title insurance services; and generally relating to reporting 8
minority business participation in State procurement. 9
BY repealing and reenacting, without amendments, 10
Article – State Finance and Procurement 11
Section 14–301(a) 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2023 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – State Finance and Procurement 16
Section 14–301(e–1) and 14–305 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2023 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
2 SENATE BILL 587
Article – State Finance and Procurement 1
14–301. 2
(a) In this subtitle the following words have the meanings indicated. 3
(e–1) “Industry type” means the following procurement categories: 4
(1) construction; 5
(2) architectural and engineering services and other construction–related 6
professional services; 7
(3) maintenance; 8
(4) information technology; 9
(5) services; [and] 10
(6) goods, supplies, and equipment; AND 11
(7) REAL PROPERTY TITLE SERVICES TITLE INSURANCE SERV ICES, 12
INCLUDING COMMERCIAL REAL PROPERTY TITLE INSURANCE SERVICES . 13
14–305. 14
(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 15
the Governor’s Office of Small, Minority, and Women Business Affairs and the certification 16
agency. 17
(2) A report under this subsection shall for the preceding fiscal year: 18
(i) state the total number and value of procurement contracts 19
between the unit and certified minority business enterprises, by specific category of 20
minority business enterprise and by industry type, including whether the minority 21
business enterprise participated as a prime contractor or as a subcontractor; 22
(ii) indicate the percentage that those procurement contracts 23
represent, by specific category of minority business enterprise and by industry type, of the 24
total number and value of procurement contracts; 25
(iii) state the total number and the names of certified minority 26
business enterprises that participated as prime contractors or as subcontractors on 27
procurement contracts awarded by a unit; 28
SENATE BILL 587 3
(iv) for each minority business included in the report under item (iii) 1
of this paragraph, list all procurement contracts awarded by a unit to the minority business 2
enterprise, including a description of the contract and industry type; 3
(v) provide the results of each compliance assessment conducted by 4
the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during 5
the fiscal year: 6
1. the names of each prime contractor and each 7
subcontractor that participated in the contract; 8
2. the type of good or service provided by the contract; 9
3. the minority business enterprise participation goal for the 10
contract; 11
4. whether a waiver was granted for the minority business 12
enterprise participation goal; 13
5. the total dollar value of payments made to each prime 14
contractor and by each prime contractor to each subcontractor during the contract term; 15
6. whether each subcontractor is a certified minority 16
business enterprise; and 17
7. if applicable, a description of factors that may have 18
contributed to failure to achieve the minority business enterprise participation goal for the 19
contract, including documented nonperformance or unavailability of a minority business 20
enterprise; and 21
(vi) contain other such information as required by the Governor’s 22
Office of Small, Minority, and Women Business Affairs and the certification agency and 23
approved by the Board. 24
(3) As to procurement contracts for architectural services and engineering 25
services reported under paragraph (2) of this subsection, the report shall identify by 26
separate category of minority business enterprise procurements for: 27
(i) architectural services; and 28
(ii) engineering services. 29
(4) A report under this subsection shall be in a form prescribed by the 30
Governor’s Office of Small, Minority, and Women Business Affairs and the certification 31
agency and approved by the Board. 32
4 SENATE BILL 587
(5) [The] EXCEPT FOR REAL PROPE RTY TITLE INSURANCE SERVICES, 1
THE Special Secretary for the Office of Small, Minority, and Women Business Affairs may 2
waive the requirement for a unit to report minority business participation by industry type 3
under paragraph (2) of this subsection if the spending threshold for the industry type is too 4
low for the unit to provide sufficient data. 5
(b) (1) On or before December 31 of each year, the Governor’s Office of Small, 6
Minority, and Women Business Affairs shall submit to the Board of Public Works and, 7
subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee 8
and the Joint Committee on Fair Practices and State Personnel Oversight a report 9
summarizing the information the Office receives under subsection (a) of this section. 10
(2) If applicable, the report submitted under paragraph (1) of this 11
subsection shall include minority business enterprise participation data for each unit by 12
industry type. 13
(3) This report may be prepared in conjunction with the annual report 14
required under § 9–306 of the State Government Article. 15
(4) (i) Beginning with the report submitted under paragraph (1) of this 16
subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small, 17
Minority, and Women Business Affairs shall include in the report an attestation that all 18
units required to report under subsection (a) of this section are represented in the report. 19
(ii) To ensure accuracy of the attestation made under subparagraph 20
(i) of this paragraph, on or before December 31, 2023, and every 3 years thereafter, the 21
Governor’s Office of Small, Minority, and Women Business Affairs shall conduct an audit 22
of the Executive Branch of State government to determine what entities are included in the 23
definition of “unit” under § 11–101 of this article. 24
(c) (1) In this subsection, “mitigating factors” includes documented 25
nonperformance or unavailability of a minority business enterprise designated for a 26
contract. 27
(2) The Governor’s Office of Small, Minority, and Women Business Affairs 28
and the Office of State Procurement in the Department of General Services, in consultation 29
with the Office of the Attorney General and the Board of Public Works, shall adopt by 30
regulation criteria used to determine that a prime contractor has persistently failed to meet 31
contract goals in the absence of mitigating factors. 32
(3) The criteria adopted under paragraph (2) of this subsection shall 33
include the results of the compliance assessments made under subsection (a)(2)(v) of this 34
section. 35
(4) The Governor’s Office of Small, Minority, and Women Business Affairs 36
shall refer prime contractors identified under the criteria adopted under paragraph (2) of 37 SENATE BILL 587 5
this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of 1
this article. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2024. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.