MD
Maryland Senate Bill SB587

Maryland 2024 Regular Session

Maryland Senate Bill SB587 Compare Versions

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1- WES MOORE, Governor Ch. 632
21
3-– 1 –
4-Chapter 632
5-(Senate Bill 587)
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+ *sb0587*
89
9-Procurement – Minority Business Participation – Real Property Title Insurance
10-Services Reporting
10+SENATE BILL 587
11+P2 4lr2174
1112
12-FOR the purpose of requiring certain reporting relating to minority business participation
13-in State procurement by industry type to include real property title insurance
14-services; prohibiting the Special Secretary for the Governor’s Office of Small,
15-Minority, and Women Business Affairs from waiving a certain reporting requirement
16-related to real property title insurance services; and generally relating to reporting
17-minority business participation in State procurement.
13+By: Senator McCray
14+Introduced and read first time: January 25, 2024
15+Assigned to: Budget and Taxation
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: February 10, 2024
1819
19-BY repealing and reenacting, without amendments,
20- Article – State Finance and Procurement
21-Section 14–301(a)
22- Annotated Code of Maryland
23- (2021 Replacement Volume and 2023 Supplement)
20+CHAPTER ______
2421
25-BY repealing and reenacting, with amendments,
26- Article – State Finance and Procurement
27-Section 14–301(e–1) and 14–305
28- Annotated Code of Maryland
29- (2021 Replacement Volume and 2023 Supplement)
22+AN ACT concerning 1
3023
31- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
32-That the Laws of Maryland read as follows:
24+Procurement – Minority Business Participation – Real Property Title Insurance 2
25+Services Reporting 3
3326
34-Article – State Finance and Procurement
27+FOR the purpose of requiring certain reporting relating to minority business participation 4
28+in State procurement by industry type to include real property title insurance 5
29+services; prohibiting the Special Secretary for the Governor’s Office of Small, 6
30+Minority, and Women Business Affairs from waiving a certain reporting requirement 7
31+related to real property title insurance services; and generally relating to reporting 8
32+minority business participation in State procurement. 9
3533
36-14–301.
34+BY repealing and reenacting, without amendments, 10
35+ Article – State Finance and Procurement 11
36+Section 14–301(a) 12
37+ Annotated Code of Maryland 13
38+ (2021 Replacement Volume and 2023 Supplement) 14
3739
38- (a) In this subtitle the following words have the meanings indicated.
40+BY repealing and reenacting, with amendments, 15
41+ Article – State Finance and Procurement 16
42+Section 14–301(e–1) and 14–305 17
43+ Annotated Code of Maryland 18
44+ (2021 Replacement Volume and 2023 Supplement) 19
3945
40- (e–1) “Industry type” means the following procurement categories:
46+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
47+That the Laws of Maryland read as follows: 21
48+ 2 SENATE BILL 587
4149
42- (1) construction;
4350
44- (2) architectural and engineering services and other construction–related
45-professional services;
51+Article – State Finance and Procurement 1
4652
47- (3) maintenance;
53+14–301. 2
4854
49- (4) information technology; Ch. 632 2024 LAWS OF MARYLAND
55+ (a) In this subtitle the following words have the meanings indicated. 3
5056
51-– 2 –
57+ (e–1) “Industry type” means the following procurement categories: 4
5258
53- (5) services; [and]
59+ (1) construction; 5
5460
55- (6) goods, supplies, and equipment; AND
61+ (2) architectural and engineering services and other construction–related 6
62+professional services; 7
5663
57- (7) REAL PROPERTY TITLE SERVICES TITLE INSURANCE SERV ICES,
58-INCLUDING COMMERCIAL REAL PROPERTY TITLE INSURANCE SERVICES .
64+ (3) maintenance; 8
5965
60-14–305.
66+ (4) information technology; 9
6167
62- (a) (1) Within 90 days after the end of the fiscal year, each unit shall report to
63-the Governor’s Office of Small, Minority, and Women Business Affairs and the certification
64-agency.
68+ (5) services; [and] 10
6569
66- (2) A report under this subsection shall for the preceding fiscal year:
70+ (6) goods, supplies, and equipment; AND 11
6771
68- (i) state the total number and value of procurement contracts
69-between the unit and certified minority business enterprises, by specific category of
70-minority business enterprise and by industry type, including whether the minority
71-business enterprise participated as a prime contractor or as a subcontractor;
72+ (7) REAL PROPERTY TITLE SERVICES TITLE INSURANCE SERV ICES, 12
73+INCLUDING COMMERCIAL REAL PROPERTY TITLE INSURANCE SERVICES . 13
7274
73- (ii) indicate the percentage that those procurement contracts
74-represent, by specific category of minority business enterprise and by industry type, of the
75-total number and value of procurement contracts;
75+14–305. 14
7676
77- (iii) state the total number and the names of certified minority
78-business enterprises that participated as prime contractors or as subcontractors on
79-procurement contracts awarded by a unit;
77+ (a) (1) Within 90 days after the end of the fiscal year, each unit shall report to 15
78+the Governor’s Office of Small, Minority, and Women Business Affairs and the certification 16
79+agency. 17
8080
81- (iv) for each minority business included in the report under item (iii)
82-of this paragraph, list all procurement contracts awarded by a unit to the minority business
83-enterprise, including a description of the contract and industry type;
81+ (2) A report under this subsection shall for the preceding fiscal year: 18
8482
85- (v) provide the results of each compliance assessment conducted by
86-the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during
87-the fiscal year:
83+ (i) state the total number and value of procurement contracts 19
84+between the unit and certified minority business enterprises, by specific category of 20
85+minority business enterprise and by industry type, including whether the minority 21
86+business enterprise participated as a prime contractor or as a subcontractor; 22
8887
89- 1. the names of each prime contractor and each
90-subcontractor that participated in the contract;
88+ (ii) indicate the percentage that those procurement contracts 23
89+represent, by specific category of minority business enterprise and by industry type, of the 24
90+total number and value of procurement contracts; 25
9191
92- 2. the type of good or service provided by the contract;
92+ (iii) state the total number and the names of certified minority 26
93+business enterprises that participated as prime contractors or as subcontractors on 27
94+procurement contracts awarded by a unit; 28
95+ SENATE BILL 587 3
9396
94- 3. the minority business enterprise participation goal for the
95-contract;
96- WES MOORE, Governor Ch. 632
9797
98-– 3 –
99- 4. whether a waiver was granted for the minority business
100-enterprise participation goal;
98+ (iv) for each minority business included in the report under item (iii) 1
99+of this paragraph, list all procurement contracts awarded by a unit to the minority business 2
100+enterprise, including a description of the contract and industry type; 3
101101
102- 5. the total dollar value of payments made to each prime
103-contractor and by each prime contractor to each subcontractor during the contract term;
102+ (v) provide the results of each compliance assessment conducted by 4
103+the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during 5
104+the fiscal year: 6
104105
105- 6. whether each subcontractor is a certified minority
106-business enterprise; and
106+ 1. the names of each prime contractor and each 7
107+subcontractor that participated in the contract; 8
107108
108- 7. if applicable, a description of factors that may have
109-contributed to failure to achieve the minority business enterprise participation goal for the
110-contract, including documented nonperformance or unavailability of a minority business
111-enterprise; and
109+ 2. the type of good or service provided by the contract; 9
112110
113- (vi) contain other such information as required by the Governor’s
114-Office of Small, Minority, and Women Business Affairs and the certification agency and
115-approved by the Board.
111+ 3. the minority business enterprise participation goal for the 10
112+contract; 11
116113
117- (3) As to procurement contracts for architectural services and engineering
118-services reported under paragraph (2) of this subsection, the report shall identify by
119-separate category of minority business enterprise procurements for:
114+ 4. whether a waiver was granted for the minority business 12
115+enterprise participation goal; 13
120116
121- (i) architectural services; and
117+ 5. the total dollar value of payments made to each prime 14
118+contractor and by each prime contractor to each subcontractor during the contract term; 15
122119
123- (ii) engineering services.
120+ 6. whether each subcontractor is a certified minority 16
121+business enterprise; and 17
124122
125- (4) A report under this subsection shall be in a form prescribed by the
126-Governor’s Office of Small, Minority, and Women Business Affairs and the certification
127-agency and approved by the Board.
123+ 7. if applicable, a description of factors that may have 18
124+contributed to failure to achieve the minority business enterprise participation goal for the 19
125+contract, including documented nonperformance or unavailability of a minority business 20
126+enterprise; and 21
128127
129- (5) [The] EXCEPT FOR REAL PROPE RTY TITLE INSURANCE SERVICES,
130-THE Special Secretary for the Office of Small, Minority, and Women Business Affairs may
131-waive the requirement for a unit to report minority business participation by industry type
132-under paragraph (2) of this subsection if the spending threshold for the industry type is too
133-low for the unit to provide sufficient data.
128+ (vi) contain other such information as required by the Governor’s 22
129+Office of Small, Minority, and Women Business Affairs and the certification agency and 23
130+approved by the Board. 24
134131
135- (b) (1) On or before December 31 of each year, the Governor’s Office of Small,
136-Minority, and Women Business Affairs shall submit to the Board of Public Works and,
137-subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee
138-and the Joint Committee on Fair Practices and State Personnel Oversight a report
139-summarizing the information the Office receives under subsection (a) of this section.
132+ (3) As to procurement contracts for architectural services and engineering 25
133+services reported under paragraph (2) of this subsection, the report shall identify by 26
134+separate category of minority business enterprise procurements for: 27
140135
141- (2) If applicable, the report submitted under paragraph (1) of this
142-subsection shall include minority business enterprise participation data for each unit by
143-industry type.
144- Ch. 632 2024 LAWS OF MARYLAND
136+ (i) architectural services; and 28
145137
146-– 4 –
147- (3) This report may be prepared in conjunction with the annual report
148-required under § 9–306 of the State Government Article.
138+ (ii) engineering services. 29
149139
150- (4) (i) Beginning with the report submitted under paragraph (1) of this
151-subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small,
152-Minority, and Women Business Affairs shall include in the report an attestation that all
153-units required to report under subsection (a) of this section are represented in the report.
140+ (4) A report under this subsection shall be in a form prescribed by the 30
141+Governor’s Office of Small, Minority, and Women Business Affairs and the certification 31
142+agency and approved by the Board. 32
143+ 4 SENATE BILL 587
154144
155- (ii) To ensure accuracy of the attestation made under subparagraph
156-(i) of this paragraph, on or before December 31, 2023, and every 3 years thereafter, the
157-Governor’s Office of Small, Minority, and Women Business Affairs shall conduct an audit
158-of the Executive Branch of State government to determine what entities are included in the
159-definition of “unit” under § 11–101 of this article.
160145
161- (c) (1) In this subsection, “mitigating factors” includes documented
162-nonperformance or unavailability of a minority business enterprise designated for a
163-contract.
146+ (5) [The] EXCEPT FOR REAL PROPE RTY TITLE INSURANCE SERVICES, 1
147+THE Special Secretary for the Office of Small, Minority, and Women Business Affairs may 2
148+waive the requirement for a unit to report minority business participation by industry type 3
149+under paragraph (2) of this subsection if the spending threshold for the industry type is too 4
150+low for the unit to provide sufficient data. 5
164151
165- (2) The Governor’s Office of Small, Minority, and Women Business Affairs
166-and the Office of State Procurement in the Department of General Services, in consultation
167-with the Office of the Attorney General and the Board of Public Works, shall adopt by
168-regulation criteria used to determine that a prime contractor has persistently failed to meet
169-contract goals in the absence of mitigating factors.
152+ (b) (1) On or before December 31 of each year, the Governor’s Office of Small, 6
153+Minority, and Women Business Affairs shall submit to the Board of Public Works and, 7
154+subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee 8
155+and the Joint Committee on Fair Practices and State Personnel Oversight a report 9
156+summarizing the information the Office receives under subsection (a) of this section. 10
170157
171- (3) The criteria adopted under paragraph (2) of this subsection shall
172-include the results of the compliance assessments made under subsection (a)(2)(v) of this
173-section.
158+ (2) If applicable, the report submitted under paragraph (1) of this 11
159+subsection shall include minority business enterprise participation data for each unit by 12
160+industry type. 13
174161
175- (4) The Governor’s Office of Small, Minority, and Women Business Affairs
176-shall refer prime contractors identified under the criteria adopted under paragraph (2) of
177-this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of
178-this article.
162+ (3) This report may be prepared in conjunction with the annual report 14
163+required under § 9–306 of the State Government Article. 15
179164
180- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
181-October 1, 2024.
165+ (4) (i) Beginning with the report submitted under paragraph (1) of this 16
166+subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small, 17
167+Minority, and Women Business Affairs shall include in the report an attestation that all 18
168+units required to report under subsection (a) of this section are represented in the report. 19
182169
183-Approved by the Governor, May 9, 2024.
170+ (ii) To ensure accuracy of the attestation made under subparagraph 20
171+(i) of this paragraph, on or before December 31, 2023, and every 3 years thereafter, the 21
172+Governor’s Office of Small, Minority, and Women Business Affairs shall conduct an audit 22
173+of the Executive Branch of State government to determine what entities are included in the 23
174+definition of “unit” under § 11–101 of this article. 24
175+
176+ (c) (1) In this subsection, “mitigating factors” includes documented 25
177+nonperformance or unavailability of a minority business enterprise designated for a 26
178+contract. 27
179+
180+ (2) The Governor’s Office of Small, Minority, and Women Business Affairs 28
181+and the Office of State Procurement in the Department of General Services, in consultation 29
182+with the Office of the Attorney General and the Board of Public Works, shall adopt by 30
183+regulation criteria used to determine that a prime contractor has persistently failed to meet 31
184+contract goals in the absence of mitigating factors. 32
185+
186+ (3) The criteria adopted under paragraph (2) of this subsection shall 33
187+include the results of the compliance assessments made under subsection (a)(2)(v) of this 34
188+section. 35
189+
190+ (4) The Governor’s Office of Small, Minority, and Women Business Affairs 36
191+shall refer prime contractors identified under the criteria adopted under paragraph (2) of 37 SENATE BILL 587 5
192+
193+
194+this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of 1
195+this article. 2
196+
197+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
198+October 1, 2024. 4
199+
200+
201+
202+
203+Approved:
204+________________________________________________________________________________
205+ Governor.
206+________________________________________________________________________________
207+ President of the Senate.
208+________________________________________________________________________________
209+ Speaker of the House of Delegates.