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Chapter 632
(Senate Bill 587)
AN ACT concerning
Procurement – Minority Business Participation – Real Property Title Insurance
Services Reporting
FOR the purpose of requiring certain reporting relating to minority business participation
in State procurement by industry type to include real property title insurance
services; prohibiting the Special Secretary for the Governor’s Office of Small,
Minority, and Women Business Affairs from waiving a certain reporting requirement
related to real property title insurance services; and generally relating to reporting
minority business participation in State procurement.
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 14–301(a)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 14–301(e–1) and 14–305
Annotated Code of Maryland
(2021 Replacement Volume and 2023 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
14–301.
(a) In this subtitle the following words have the meanings indicated.
(e–1) “Industry type” means the following procurement categories:
(1) construction;
(2) architectural and engineering services and other construction–related
professional services;
(3) maintenance;
(4) information technology; Ch. 632 2024 LAWS OF MARYLAND
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(5) services; [and]
(6) goods, supplies, and equipment; AND
(7) REAL PROPERTY TITLE SERVICES TITLE INSURANCE SERV ICES,
INCLUDING COMMERCIAL REAL PROPERTY TITLE INSURANCE SERVICES .
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 and the certification
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;
(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;
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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.
(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] EXCEPT FOR REAL PROPE RTY TITLE INSURANCE SERVICES,
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.
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(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 report submitted under paragraph (1) of this
subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small,
Minority, and Women Business Affairs shall include in the report an attestation that all
units required to report under subsection (a) of this section are represented in the report.
(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 shall conduct an audit
of the Executive Branch of State government to determine what entities 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
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.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2024.
Approved by the Governor, May 9, 2024.