MD
Maryland House Bill HB819

Maryland 2025 Regular Session

Maryland House Bill HB819 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 Underlining indicates amendments to bill.
66 Strike out indicates matter stricken from the bill by amendment or deleted from the law by
77 amendment.
8- Italics indicate opposite chamber/conference committee amendments.
98 *hb0819*
109
1110 HOUSE BILL 819
12-P2, F2 (5lr1117)
13-ENROLLED BILL
14-— Health and Government Operations/Budget and Taxation —
15-Introduced by Delegates Guzzone, Edelson, Embry, Hill, Kerr, R. Lewis, Shetty,
11+P2, F2 5lr1117
12+ CF SB 653
13+By: Delegates Guzzone, Edelson, Embry, Hill, Kerr, R. Lewis, Shetty,
1614 White Holland, and Woods Woods, Alston, Bagnall, Bhandari, Chisholm,
1715 Cullison, Hutchinson, S. Johnson, Kaiser, Kipke, Lopez, Martinez,
1816 M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga, Taveras, and
1917 Woorman
20-
21-Read and Examined by Proofreaders:
22-
23-_______________________________________________
24-Proofreader.
25-_______________________________________________
26-Proofreader.
27-
28-Sealed with the Great Seal and presented to the Governor, for his approval this
29-
30-_______ day of _______________ at ________________________ o’clock, ________M.
31-
32-______________________________________________
33-Speaker.
18+Introduced and read first time: January 29, 2025
19+Assigned to: Health and Government Operations
20+Committee Report: Favorable with amendments
21+House action: Adopted
22+Read second time: March 3, 2025
3423
3524 CHAPTER ______
3625
3726 AN ACT concerning 1
3827
3928 Procurement – Employee Stock Ownership Plan Preference – Pilot 2
4029
4130 FOR the purpose of establishing a preference program for certain procurements by 3
4231 authorizing the Maryland Stadium Authority, the University System of Maryland, 4
4332 Morgan State University, St. Mary’s College of Maryland, and Baltimore City 5
4433 Community College to establish a certain preference program for certain 6
45-procurements; establishing authorizing the establishment of a certain price 7
46-preference evaluation factor for certain bids and proposals by an entity that utilizes 8
47-certain employee stock ownership plans; requiring contractors to provide certain 9
48-information to a unit regarding the use of an employee stock ownership plan; and 10 2 HOUSE BILL 819
34+procurements; establishing authorizing a certain price preference for bids and 7
35+proposals by an entity that utilizes certain employee stock ownership plans; 8
36+requiring contractors to provide certain information to a unit regarding the use of an 9
37+employee stock ownership plan; and generally relating to procurement preferences 10
38+for entities that utilize an employee stock ownership plan. 11
39+
40+BY repealing and reenacting, with amendments, 12
41+ Article – State Finance and Procurement 13
42+Section 11–203(c) 14
43+ Annotated Code of Maryland 15
44+ (2021 Replacement Volume and 2024 Supplement) 16
45+
46+BY repealing and reenacting, without amendments, 17
47+ Article – State Finance and Procurement 18
48+Section 11–203(e)(1), (2), and (7) 19 2 HOUSE BILL 819
4949
5050
51-generally relating to procurement preferences for entities that utilize an employee 1
52-stock ownership plan. 2
51+ Annotated Code of Maryland 1
52+ (2021 Replacement Volume and 2024 Supplement) 2
5353
5454 BY repealing and reenacting, with amendments, 3
5555 Article – State Finance and Procurement 4
56-Section 11–203(c) 5
56+Section 11–203(e)(5) 5
5757 Annotated Code of Maryland 6
5858 (2021 Replacement Volume and 2024 Supplement) 7
59+ (As enacted by Chapters 575 and 576 of the Acts of the General Assembly of 2023) 8
5960
60-BY repealing and reenacting, without amendments, 8
61- Article – State Finance and Procurement 9
62-Section 11–203(e)(1), (2), and (7) 10
63- Annotated Code of Maryland 11
64- (2021 Replacement Volume and 2024 Supplement) 12
61+BY adding to 9
62+ Article – State Finance and Procurement 10
63+Section 14–801 through 14–806 to be under the new subtitle “Subtitle 8. Employee 11
64+Stock Ownership Plan Preference Program” 12
65+ Annotated Code of Maryland 13
66+ (2021 Replacement Volume and 2024 Supplement) 14
6567
66-BY repealing and reenacting, with amendments, 13
67- Article – State Finance and Procurement 14
68-Section 11–203(e)(5) 15
69- Annotated Code of Maryland 16
70- (2021 Replacement Volume and 2024 Supplement) 17
71- (As enacted by Chapters 575 and 576 of the Acts of the General Assembly of 2023) 18
68+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
69+That the Laws of Maryland read as follows: 16
7270
73-BY adding to 19
74- Article – State Finance and Procurement 20
75-Section 14–801 through 14–806 to be under the new subtitle “Subtitle 8. Employee 21
76-Stock Ownership Plan Preference Program” 22
77- Annotated Code of Maryland 23
78- (2021 Replacement Volume and 2024 Supplement) 24
71+Article – State Finance and Procurement 17
7972
80- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
81-That the Laws of Maryland read as follows: 26
73+11–203. 18
8274
83-Article – State Finance and Procurement 27
75+ (c) Except as provided in Title 12, Subtitle 4 and Title 14, [Subtitle 3] 19
76+SUBTITLES 3 AND 8 of this article and except for §§ 15–112 and 15–113 of this article, this 20
77+Division II does not apply to the Maryland Stadium Authority. 21
8478
85-11–203. 28
79+ (e) (1) In this subsection, “University” means the University System of 22
80+Maryland, Morgan State University, or St. Mary’s College of Maryland. 23
8681
87- (c) Except as provided in Title 12, Subtitle 4 and Title 14, [Subtitle 3] 29
88-SUBTITLES 3 AND 8 of this article and except for §§ 15–112 and 15–113 of this article, this 30
89-Division II does not apply to the Maryland Stadium Authority. 31
82+ (2) Except as otherwise provided in this subsection, this Division II does 24
83+not apply to the University System of Maryland, Morgan State University, St. Mary’s 25
84+College of Maryland, or Baltimore City Community College. 26
9085
91- (e) (1) In this subsection, “University” means the University System of 32
92-Maryland, Morgan State University, or St. Mary’s College of Maryland. 33
86+ (5) (i) Except as provided in paragraph (7) of this subsection, the 27
87+following provisions of Division II of this article apply to a University and to Baltimore City 28
88+Community College: 29
9389
94- (2) Except as otherwise provided in this subsection, this Division II does 34
95-not apply to the University System of Maryland, Morgan State University, St. Mary’s 35
96-College of Maryland, or Baltimore City Community College. 36
90+ 1. § 11–205 of this subtitle (“Collusion”); 30
91+
92+ 2. § 11–205.1 of this subtitle (“Falsification, concealment, 31
93+etc., of material facts”); 32
94+
95+ 3. § 13–219 of this article (“Required clauses – 33
96+Nondiscrimination clause”); 34
9797 HOUSE BILL 819 3
9898
9999
100- (5) (i) Except as provided in paragraph (7) of this subsection, the 1
101-following provisions of Division II of this article apply to a University and to Baltimore City 2
102-Community College: 3
100+ 4. § 13–225 of this article (“Retainage”); 1
103101
104- 1. § 11–205 of this subtitle (“Collusion”); 4
102+ 5. Title 14, Subtitle 3 of this article (“Minority Business 2
103+Participation”); 3
105104
106- 2. § 11–205.1 of this subtitle (“Falsification, concealment, 5
107-etc., of material facts”); 6
105+ 6. Title 14, Subtitle 7 of this article (“Certified Local Farm 4
106+and Fish Program”); 5
108107
109- 3. § 13–219 of this article (“Required clauses – 7
110-Nondiscrimination clause”); 8
108+ 7. TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE 6
109+STOCK OWNERSHIP PLAN PREFERENCE PROGRAM”); 7
111110
112- 4. § 13–225 of this article (“Retainage”); 9
111+ [7.] 8. Title 15, Subtitle 1 of this article (“Procurement Contract 8
112+Administration”); 9
113113
114- 5. Title 14, Subtitle 3 of this article (“Minority Business 10
115-Participation”); 11
114+ [8.] 9. § 15–226 of this article (“Policy established; timing of 10
115+payments; notice upon nonpayment; disputes; appeals”); and 11
116116
117- 6. Title 14, Subtitle 7 of this article (“Certified Local Farm 12
118-and Fish Program”); 13
117+ [9.] 10. Title 16 of this article (“Suspension and Debarment 12
118+of Contractors”). 13
119119
120- 7. TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE 14
121-STOCK OWNERSHIP PLAN PREFERENCE PROGRAM”); 15
120+ (II) EXCEPT AS PROVIDED IN PARAGRAPH (7) OF THIS 14
121+SUBSECTION, TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE STOCK 15
122+OWNERSHIP PLAN PREFERENCE PROGRAM”) APPLIES TO MORGAN STATE 16
123+UNIVERSITY, ST. MARY’S COLLEGE OF MARYLAND, AND BALTIMORE CITY 17
124+COMMUNITY COLLEGE. 18
122125
123- [7.] 8. Title 15, Subtitle 1 of this article (“Procurement Contract 16
124-Administration”); 17
126+ (ii) (III) If a procurement violates the provisions of this subsection 19
127+or policies adopted in accordance with this subsection, the procurement contract is void or 20
128+voidable in accordance with the provisions of § 11–204 of this subtitle. 21
125129
126- [8.] 9. § 15–226 of this article (“Policy established; timing of 18
127-payments; notice upon nonpayment; disputes; appeals”); and 19
130+ (7) Except with regard to the provisions of § 15–113 of this article, 22
131+paragraphs (3), (4), and (5) of this subsection do not apply to: 23
128132
129- [9.] 10. Title 16 of this article (“Suspension and Debarment 20
130-of Contractors”). 21
133+ (i) procurement by a University or Baltimore City Community 24
134+College from: 25
131135
132- (II) EXCEPT AS PROVIDED IN PARAGRAPH (7) OF THIS 22
133-SUBSECTION, TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE STOCK 23
134-OWNERSHIP PLAN PREFERENCE PROGRAM”) APPLIES TO MORGAN STATE 24
135-UNIVERSITY, ST. MARY’S COLLEGE OF MARYLAND, AND BALTIMORE CITY 25
136-COMMUNITY COLLEGE. 26
136+ 1. another unit; 26
137137
138- (ii) (III) If a procurement violates the provisions of this subsection 27
139-or policies adopted in accordance with this subsection, the procurement contract is void or 28
140-voidable in accordance with the provisions of § 11–204 of this subtitle. 29
138+ 2. a political subdivision of the State; 27
141139
142- (7) Except with regard to the provisions of § 15–113 of this article, 30
143-paragraphs (3), (4), and (5) of this subsection do not apply to: 31
144- 4 HOUSE BILL 819
140+ 3. an agency of a political subdivision of the State; 28
141+
142+ 4. a government, including the government of another state, 29
143+of the United States, or of another country; 30
144+
145+ 5. an agency or political subdivision of a government; or 31 4 HOUSE BILL 819
145146
146147
147- (i) procurement by a University or Baltimore City Community 1
148-College from: 2
149148
150- 1. another unit; 3
149+ 6. a bistate, multistate, bicounty, or multicounty 1
150+governmental agency; 2
151151
152- 2. a political subdivision of the State; 4
152+ (ii) procurement by a University in support of enterprise activities 3
153+for the purpose of: 4
153154
154- 3. an agency of a political subdivision of the State; 5
155+ 1. direct resale; 5
155156
156- 4. a government, including the government of another state, 6
157-of the United States, or of another country; 7
157+ 2. remanufacture and subsequent resale; or 6
158158
159- 5. an agency or political subdivision of a government; or 8
159+ 3. procurement by the University for overseas programs; or 7
160160
161- 6. a bistate, multistate, bicounty, or multicounty 9
162-governmental agency; 10
161+ (iii) procurement by the University System of Maryland for: 8
163162
164- (ii) procurement by a University in support of enterprise activities 11
165-for the purpose of: 12
163+ 1. services of managers to invest, in accordance with the 9
164+management and investment policies adopted by the Board of Regents of the University 10
165+System of Maryland, gift and endowment assets received by the University System of 11
166+Maryland in accordance with § 12–104(e) of the Education Article; or 12
166167
167- 1. direct resale; 13
168+ 2. expenditures to manage, maintain, and enhance, in 13
169+accordance with the management and investment policies adopted by the Board of Regents 14
170+of the University System of Maryland, the value of gift and endowment assets received by 15
171+the University System of Maryland in accordance with § 12–104(e) of the Education Article. 16
168172
169- 2. remanufacture and subsequent resale; or 14
173+SUBTITLE 8. EMPLOYEE STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 17
170174
171- 3. procurement by the University for overseas programs; or 15
175+14–801. 18
172176
173- (iii) procurement by the University System of Maryland for: 16
177+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
178+INDICATED. 20
174179
175- 1. services of managers to invest, in accordance with the 17
176-management and investment policies adopted by the Board of Regents of the University 18
177-System of Maryland, gift and endowment assets received by the University System of 19
178-Maryland in accordance with § 12–104(e) of the Education Article; or 20
180+ (B) “COVERED PROCUREMENT ” MEANS A PROCUREMENT THAT IS VALUED 21
181+AT LESS THAN $80,000,000. 22
179182
180- 2. expenditures to manage, maintain, and enhance, in 21
181-accordance with the management and investment policies adopted by the Board of Regents 22
182-of the University System of Maryland, the value of gift and endowment assets received by 23
183-the University System of Maryland in accordance with § 12–104(e) of the Education Article. 24
183+ (C) “ESOP BIDDER” MEANS A RESP ONSIBLE BIDDER WHO U TILIZES AN 23
184+EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 401(A) OF THE INTERNAL 24
185+REVENUE CODE. 25
184186
185-SUBTITLE 8. EMPLOYEE STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 25
187+ (D) “ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO UTILIZES AN 26
188+EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 401(A) OF THE INTERNAL 27
189+REVENUE CODE. 28
186190
187-14–801. 26
188-
189- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 27
190-INDICATED. 28
191- HOUSE BILL 819 5
191+ (E) “NON–ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO DOES NOT 29
192+UTILIZE AN EMPLOYEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF THE 30
193+INTERNAL REVENUE CODE. 31 HOUSE BILL 819 5
192194
193195
194- (B) “COVERED PROCUREMENT ” MEANS A PROCUREMENT THAT IS VALUED 1
195-AT LESS THAN $80,000,000. 2
196196
197- (C) “ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO UTILIZES AN 3
198-EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 401(A) OF THE INTERNAL 4
199-REVENUE CODE. ESOP EVALUATION FACTOR ” MEANS A PREFERENCE F OR AN 5
200-ESOP OFFEROR THAT A UNIT MAY INCLUDE IN THE E VALUATION OF PROPOSA LS. 6
197+ (F) “NON–ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO DOES 1
198+NOT UTILIZE AN EMPLO YEE STOCK OWNERSHIP PLAN AP PROVED UNDER § 401(A) OF 2
199+THE INTERNAL REVENUE CODE. 3
201200
202- (D) “ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO UTILIZES AN 7
203-EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 401(A) OF THE INTERNAL 8
204-REVENUE CODE. 9
201+ (G) “PERCENTAGE PREFERENCE ” MEANS: 4
205202
206- (E) “NON–ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO DOES NOT 10
207-UTILIZE AN EMPLOYEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF THE 11
208-INTERNAL REVENUE CODE. 12
203+ (1) THE PERCENT OF THE L OWEST RESPONSIVE BID SUBMITTED BY A 5
204+NON–ESOP BIDDER BY WHICH A RE SPONSIVE BID SUBMITT ED BY AN ESOP BIDDER 6
205+MAY: 7
209206
210- (F) “NON–ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO DOES 13
211-NOT UTILIZE AN EMPLO YEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF 14
212-THE INTERNAL REVENUE CODE. 15
207+ (I) EXCEED THE LOWEST BID ; AND 8
213208
214- (G) “PERCENTAGE PREFERENCE ” MEANS: 16
209+ (II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 9
210+ACCORDANCE WITH THIS SUBTITLE; OR 10
215211
216- (1) THE PERCENT OF THE L OWEST RESPONSIVE BID SUBMITTED BY A 17
217-NON–ESOP BIDDER BY WHICH A RE SPONSIVE BID SUBMITT ED BY AN ESOP BIDDER 18
218-MAY: 19
212+ (2) THE PERCENT OF THE L OWEST RESPONSIVE COS T PROPOSAL 11
213+SUBMITTED BY A NON –ESOP OFFEROR BY WHICH A R ESPONSIVE PROPOSAL 12
214+SUBMITTED BY AN ESOP OFFEROR MAY : 13
219215
220- (I) EXCEED THE LOWEST B ID; AND 20
216+ (I) EXCEED THE LOWEST CO ST; AND 14
221217
222- (II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 21
223-ACCORDANCE WITH THIS SUBTITLE; OR 22
218+ (II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 15
219+ACCORDANCE WITH THIS SUBTITLE. 16
224220
225- (2) THE PERCENT OF THE L OWEST RESPONSIVE COS T PROPOSAL 23
226-SUBMITTED BY A NON –ESOP OFFEROR BY WHICH A R ESPONSIVE PROPOSAL 24
227-SUBMITTED BY AN ESOP OFFEROR MAY : 25
221+ (H) “UNIT” MEANS THE MARYLAND STADIUM AUTHORITY, A UNIVERSITY, 17
222+OR THE BALTIMORE CITY COMMUNITY COLLEGE. 18
228223
229- (I) EXCEED THE LOWEST CO ST; AND 26
224+ (I) “UNIVERSITY” MEANS THE UNIVERSITY SYSTEM OF MARYLAND, 19
225+MORGAN STATE UNIVERSITY, OR ST. MARY’S COLLEGE OF MARYLAND. 20
230226
231- (II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 27
232-ACCORDANCE WITH THIS SUBTITLE. 28
227+14–802. 21
233228
234- (H) (E) “UNIT” MEANS THE MARYLAND STADIUM AUTHORITY, A 29
235-UNIVERSITY, OR THE BALTIMORE CITY COMMUNITY COLLEGE. 30
236- 6 HOUSE BILL 819
229+ THIS SUBTITLE APPLIES TO A COVERED PROCURE MENT OF: 22
230+
231+ (1) THE MARYLAND STADIUM AUTHORITY; 23
232+
233+ (2) A UNIVERSITY; OR 24
234+
235+ (3) BALTIMORE CITY COMMUNITY COLLEGE. 25
236+
237+14–803. 26
238+
239+ SUBJECT TO THE APPROV AL OF THE BOARD, EACH UNIT SHALL MAY 27
240+ESTABLISH A PERCENTA GE PREFERENCE , NOT TO EXCEED 5%. 28 6 HOUSE BILL 819
237241
238242
239- (I) (F) “UNIVERSITY” MEANS THE UNIVERSITY SYSTEM OF MARYLAND, 1
240-MORGAN STATE UNIVERSITY, OR ST. MARY’S COLLEGE OF MARYLAND. 2
241243
242-14–802. 3
244+14–804. 1
243245
244- THIS SUBTITLE APPLIES TO A COVERED PROCURE MENT OF: 4
246+ (A) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 2
247+CONTRACT USING COMPETITIVE SE ALED BIDS UNDER § 13–103 OF THIS ARTICLE , 3
248+THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP BIDDER IF THE ESOP BIDDER: 4
245249
246- (1) THE MARYLAND STADIUM AUTHORITY; 5
250+ (1) SUBMITS THE LOWEST R ESPONSIVE BID; OR 5
247251
248- (2) A UNIVERSITY; OR 6
252+ (2) DOES NOT SUBMIT THE LOWEST RESPONSIVE BI D BUT THE 6
253+DIFFERENCE BETWEEN T HE BID AND THE LOWES T RESPONSIVE BID SUBMITTED BY 7
254+A NON–ESOP BIDDER DOES NOT EXCE ED THE PERCENTAGE PR EFERENCE 8
255+ESTABLISHED UNDER § 14–803 OF THIS SUBTITLE. 9
249256
250- (3) BALTIMORE CITY COMMUNITY COLLEGE. 7
257+ (B) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 10
258+CONTRACT USING COMPETITIVE SE ALED PROPOSALS UNDER § 13–104 OF THIS 11
259+ARTICLE, THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP OFFEROR IF THE 12
260+ESOP OFFEROR: 13
251261
252-14–803. 8
262+ (1) SUBMITS THE RESPONSI VE PROPOSAL THAT IS MOST 14
263+ADVANTAGEOUS TO THE UNIT AFTER FACTORING IN THE PRICE PREFERE NCE; OR 15
253264
254- SUBJECT TO THE APPROV AL OF THE BOARD, EACH UNIT SHALL MAY 9
255-ESTABLISH A PERCENTAGE PREFERE NCE AN EVALUATION FACTOR , NOT TO EXCEED 10
256-5% 10%. 11
265+ (2) DOES NOT SUBMIT THE RESPONSIVE PROPOSAL THAT IS MOST 16
266+ADVANTAGEOUS TO THE UNIT BUT THE DIFFERE NCE BETWEEN THAT PRO POSAL AND 17
267+THE LOWEST RESPONSIV E PROPOSAL SUBMITTED BY A NON–ESOP OFFEROR DOES 18
268+NOT EXCEED THE PERCE NTAGE PREFERENCE EST ABLISHED UNDER § 14–803 OF 19
269+THIS SUBTITLE. 20
257270
258-14–804. 12
271+14–805. 21
259272
260- (A) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 13
261-CONTRACT USING COMPETITIVE SE ALED BIDS UNDER § 13–103 OF THIS ARTICLE , 14
262-THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP BIDDER IF THE ESOP BIDDER: 15
273+ (A) A CONTRACTO R THAT IS AWARDED A CONTRACT FOR A COVER ED 22
274+PROCUREMENT SHALL PR OVIDE TO A UNIT , AS A CONDITION OF RE CEIVING THE 23
275+CONTRACT, WRITTEN VERIFICATION OF THE IRS DETERMINATION LETTER FOR THE 24
276+CONTRACTOR ’S EMPLOYEE STOCK OWN ERSHIP PLAN. 25
263277
264- (1) SUBMITS THE LOWEST R ESPONSIVE BID; OR 16
278+ (B) THE WRITTEN VERIFICATION REQUIRE D UNDER SUBSECTION (A) OF 26
279+THIS SECTION SHALL B E PROVIDED BY A CONT RACTOR TO THE UNIT R ESPONSIBLE 27
280+FOR THE PROJECT WITH THE SUBMISSION OF A BID OR PROPOSAL . 28
265281
266- (2) DOES NOT SUBMIT THE LOWEST RESPONSIVE BI D BUT THE 17
267-DIFFERENCE BE TWEEN THE BID AND TH E LOWEST RESPONSIVE BID SUBMITTED BY 18
268-A NON–ESOP BIDDER DOES NOT EXCE ED THE PERCENTAGE PR EFERENCE 19
269-ESTABLISHED UNDER § 14–803 OF THIS SUBTITLE. 20
282+14–806. 29
270283
271- (B) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 21
272-CONTRACT USING COMPETITIVE SEALED PROPOSALS UND ER § 13–104 OF THIS 22
273-ARTICLE, THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP OFFEROR IF THE 23
274-ESOP OFFEROR: 24
275-
276- (1) SUBMITS THE RESPONSI VE PROPOSAL THAT IS MOST 25
277-ADVANTAGEOUS TO THE UNIT AFTER FACTORING IN THE PRICE PREFERE NCE; OR 26
278-
279- (2) DOES NOT SUBMIT THE RESPON SIVE PROPOSAL THAT I S MOST 27
280-ADVANTAGEOUS TO THE UNIT BUT THE DIFFERE NCE BETWEEN THAT PRO POSAL AND 28
281-THE LOWEST RESPONSIV E PROPOSAL SUBMITTED BY A NON–ESOP OFFEROR DOES 29 HOUSE BILL 819 7
284+ ON OR BEFORE DECEMBER 1, 2028, THE MARYLAND STADIUM AUTHORITY, 30
285+BALTIMORE CITY COMMUNITY COLLEGE, THE UNIVERSITY SYSTEM OF MARYLAND, 31
286+MORGAN STATE UNIVERSITY, AND ST. MARY’S COLLEGE OF MARYLAND SHALL 32 HOUSE BILL 819 7
282287
283288
284-NOT EXCEED THE PERCE NTAGE PREFERENCE EST ABLISHED UNDER § 14–803 OF 1
285-THIS SUBTITLE. 2
289+SUBMIT A REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 1
290+ARTICLE, TO THE LEGISLATIVE POLICY COMMITTEE, THE SENATE BUDGET AND 2
291+TAXATION COMMITTEE, AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS 3
292+COMMITTEE, ON: 4
286293
287- (A) A UNIT MAY INCLUDE AN ESOP EVALUATION FACTOR IN THE 3
288-TECHNICAL EVALUATION FOR A COMPETITIVE SE ALED PROPOSAL UNDER § 13–104 4
289-OF THIS ARTICLE FOR A CONTRACT SUBJECT T O THIS SUBTITLE. 5
294+ (1) THE NUMBER AND DOLLA R VALUE OF CONTRACTS AWARDED IN 5
295+ACCORDANCE WITH THIS SUBTITLE TO ESOP BIDDERS AND ESOP OFFERORS 6
296+DURING FISCAL YEARS 2026, 2027, AND 2028; 7
290297
291- (B) AN ESOP EVALUATION FACTOR MA Y BE: 6
298+ (2) THE AMOUNT OF PRICE PREFERENCE APPLIED T O ALL 8
299+CONTRACTS AWARDED IN ACCORDANCE WITH THIS SUBTITLE; AND 9
292300
293- (1) IF A POINT SYSTEM IS USED FOR EVA LUATION OF PROPOSALS , UP 7
294-TO THE PERCENTAGE OF THE TOTAL ALLOCABLE TECHNICAL POINTS AUT HORIZED 8
295-UNDER § 14–803 OF THIS SUBTITLE; OR 9
301+ (3) AN EVALUATION OF THE EFFECTIVENESS OF THE EMPLOYEE 10
302+STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 11
296303
297- (2) IF A POINT SYSTEM IS NOT USED FOR EVALUAT ION OF PROPOSALS , 10
298-RANKED IN ITS RELATI VE ORDER OF IMPORTAN CE. 11
304+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to 12
305+procurement contracts solicited on or before June 30, 2030. 13
299306
300-14–805. 12
301-
302- (A) A CONTRACTOR THAT IS A WARDED A CONTRACT FO R A COVERED 13
303-PROCUREMENT SHALL PR OVIDE TO A UNIT , AS A CONDITION OF RE CEIVING THE 14
304-CONTRACT, WRITTEN VERIFICATION OF THE IRS DETERMINATION LETTER FOR THE 15
305-CONTRACTOR ’S EMPLOYEE STOCK OWN ERSHIP PLAN. 16
306-
307- (B) THE WRITTEN VERIFICAT ION REQUIRED UNDER S UBSECTION (A) OF 17
308-THIS SECTION SHALL B E PROVIDED BY A CONT RACTOR TO THE UNIT R ESPONSIBLE 18
309-FOR THE PROJECT WITH THE SUBMISSION OF A BID OR PROPOSAL. 19
310-
311-14–806. 20
312-
313- ON OR BEFORE DECEMBER 1, 2028, THE MARYLAND STADIUM AUTHORITY, 21
314-BALTIMORE CITY COMMUNITY COLLEGE, THE UNIVERSITY SYSTEM OF MARYLAND, 22
315-MORGAN STATE UNIVERSITY, AND ST. MARY’S COLLEGE OF MARYLAND SHALL 23
316-SUBMIT A REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 24
317-ARTICLE, TO THE LEGISLATIVE POLICY COMMITTEE, THE SENATE BUDGET AND 25
318-TAXATION COMMITTEE, AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS 26
319-COMMITTEE, ON: 27
320-
321- (1) THE NUMBER AND DOLLA R VALUE OF CONTRACTS AWARDED IN 28
322-ACCORDANCE WITH THIS SUBTITLE TO ESOP BIDDERS AND ESOP OFFERORS 29
323-DURING FISCAL YEARS 2026, 2027, AND 2028; AND 30
324-
325- (2) THE AMOUNT OF PRICE PREFERENCE APPLIED T O ALL 31
326-CONTRACTS AWARDED IN ACCORDANCE WITH THIS SUBTITLE; AND 32
327- 8 HOUSE BILL 819
328-
329-
330- (3) AN EVALUATION OF THE EFFECTIVENESS OF THE EMPLOYEE 1
331-STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 2
332-
333- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to 3
334-procurement contracts solicited on or before June 30, 2030. 4
335-
336- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
337-1, 2025. It shall remain effective for a period of 5 years and, at the end of June 30, 2030, 6
338-this Act, with no further action required by the General Assembly, shall be abrogated and 7
339-of no further force and effect. 8
307+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
308+1, 2025. It shall remain effective for a period of 5 years and, at the end of June 30, 2030, 15
309+this Act, with no further action required by the General Assembly, shall be abrogated and 16
310+of no further force and effect. 17
340311
341312
342313
343314
344315 Approved:
345316 ________________________________________________________________________________
346317 Governor.
347318 ________________________________________________________________________________
348319 Speaker of the House of Delegates.
349320 ________________________________________________________________________________
350321 President of the Senate.