Maryland 2025 Regular Session

Maryland Senate Bill SB653 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5	5		Underlining indicates amendments to bill.
6	6		Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7	7		amendment.
8		-	Italics indicate opposite chamber/conference committee amendments.
9	8		sb0653
10	9
11	10		SENATE BILL 653
12		-	P2, F2 (5lr2348)
13		-	ENROLLED BILL
14		-	— Budget and Taxation/Health and Government Operations —
15		-	Introduced by Senator McCray
16		-
17		-	Read and Examined by Proofreaders:
18		-
19		-	_______________________________________________
20		-	Proofreader.
21		-	_______________________________________________
22		-	Proofreader.
23		-
24		-	Sealed with the Great Seal and presented to the Governor, for his approval this
25		-
26		-	_______ day of _______________ at __ ______________________ o’clock, ________M.
27		-
28		-	______________________________________________
29		-	President.
	11	+	P2, F2 5lr2348
	12	+	CF HB 819
	13	+	By: Senator McCray
	14	+	Introduced and read first time: January 25, 2025
	15	+	Assigned to: Budget and Taxation
	16	+	Committee Report: Favorable with amendments
	17	+	Senate action: Adopted with floor amendments
	18	+	Read second time: March 10, 2025
30	19
31	20		CHAPTER ______
32	21
33	22		AN ACT concerning 1
34	23
35	24		Procurement – Employee Stock Ownership Plan Preference – Pilot 2
36	25
37	26		FOR the purpose of establishing a preference program for certain procurements by 3
38	27		authorizing the Maryland Stadium Authority, the University System of Maryland, 4
39	28		Morgan State University, St. Mary’s College of Maryland, and Baltimore City 5
40	29		Community College to establish a certain preference program for certain 6
41	30		procurements; establishing authorizing the establishment of a certain price 7
42	31		preference evaluation factor for certain bids and proposals by an entity that utilizes 8
43	32		certain employee stock ownership plans; requiring contractors to provide certain 9
44	33		information to a unit regarding the use of an employee stock ownership plan; and 10
45	34		generally relating to procurement preferences for entities that utilize an employee 11
46	35		stock ownership plan. 12
47	36
48	37		BY repealing and reenacting, with amendments, 13
49		-	Article – State Finance and Procurement 14 2 SENATE BILL 653
	38	+	Article – State Finance and Procurement 14
	39	+	Section 11–203(c) 15
	40	+	Annotated Code of Maryland 16
	41	+	(2021 Replacement Volume and 2024 Supplement) 17
	42	+
	43	+	BY repealing and reenacting, without amendments, 18
	44	+	Article – State Finance and Procurement 19
	45	+	Section 11–203(e)(1), (2), and (7) 20
	46	+	Annotated Code of Maryland 21
	47	+	(2021 Replacement Volume and 2024 Supplement) 22
	48	+	2 SENATE BILL 653
50	49
51	50
52		-	Section 11–203(c) 1
53		-	Annotated Code of Maryland 2
54		-	(2021 Replacement Volume and 2024 Supplement) 3
	51	+	BY repealing and reenacting, with amendments, 1
	52	+	Article – State Finance and Procurement 2
	53	+	Section 11–203(e)(5) 3
	54	+	Annotated Code of Maryland 4
	55	+	(2021 Replacement Volume and 2024 Supplement) 5
	56	+	(As enacted by Chapters 575 and 576 of the Acts of the General Assembly of 2023) 6
55	57
56		-	BY repealing and reenacting, without amendments, 4
57		-	Article – State Finance and Procurement 5
58		-	Section 11–203(e)(1), (2), and (7) 6
59		-	Annotated Code of Maryland 7
60		-	(2021 Replacement Volume and 2024 Supplement) 8
	58	+	BY adding to 7
	59	+	Article – State Finance and Procurement 8
	60	+	Section 14–801 through 14–806 to be under the new subtitle “Subtitle 8. Employee 9
	61	+	Stock Ownership Plan Preference Program” 10
	62	+	Annotated Code of Maryland 11
	63	+	(2021 Replacement Volume and 2024 Supplement) 12
61	64
62		-	BY repealing and reenacting, with amendments, 9
63		-	Article – State Finance and Procurement 10
64		-	Section 11–203(e)(5) 11
65		-	Annotated Code of Maryland 12
66		-	(2021 Replacement Volume and 2024 Supplement) 13
67		-	(As enacted by Chapters 575 and 576 of the Acts of the General Assembly of 2023) 14
	65	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
	66	+	That the Laws of Maryland read as follows: 14
68	67
69		-	BY adding to 15
70		-	Article – State Finance and Procurement 16
71		-	Section 14–801 through 14–806 to be under the new subtitle “Subtitle 8. Employee 17
72		-	Stock Ownership Plan Preference Program” 18
73		-	Annotated Code of Maryland 19
74		-	(2021 Replacement Volume and 2024 Supplement) 20
	68	+	Article – State Finance and Procurement 15
75	69
76		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
77		-	That the Laws of Maryland read as follows: 22
	70	+	11–203. 16
78	71
79		-	Article – State Finance and Procurement 23
	72	+	(c) Except as provided in Title 12, Subtitle 4 and Title 14, [Subtitle 3] 17
	73	+	SUBTITLES 3 AND 8 of this article and except for §§ 15–112 and 15–113 of this article, this 18
	74	+	Division II does not apply to the Maryland Stadium Authority. 19
80	75
81		-	11–203. 24
	76	+	(e) (1) In this subsection, “University” means the University System of 20
	77	+	Maryland, Morgan State University, or St. Mary’s College of Maryland. 21
82	78
83		-	(c) Except as provided in ~~Title 12~~, ~~Subtitle 4 and Title 14,~~ ~~[Subtitle 3] 25~~
84		-	~~SUBTITLES 3 AND 8~~ of ~~this article and except for §§ 15–112 and 15–113 of this article~~, ~~this 26~~
85		-	~~Division II does not apply to the~~ Maryland ~~Stadium Authority~~. 27
	79	+	(2) Except as otherwise provided in this subsection, this Division II does 22
	80	+	not apply to the University System of Maryland, Morgan State University, St. Mary’s 23
	81	+	College of Maryland, or Baltimore City Community College. 24
86	82
87		-	(e) (1) In this subsection, “University” means the University System of 28
88		-	Maryland, Morgan State University, or St. Mary’s College of Maryland. 29
	83	+	(5) (i) Except as provided in paragraph (7) of this subsection, the 25
	84	+	following provisions of Division II of this article apply to a University and to Baltimore City 26
	85	+	Community College: 27
89	86
90		-	(2) Except as otherwise provided in this subsection, this Division II does 30
91		-	not apply to the University System of Maryland, Morgan State University, St. Mary’s 31
92		-	College of Maryland, or Baltimore City Community College. 32
	87	+	1. § 11–205 of this subtitle (“Collusion”); 28
93	88
94		-	(5) (i) Except as provided in paragraph (7) of this subsection, the 33
95		-	following provisions of Division II of this article apply to a University and to Baltimore City 34
96		-	Community College: 35
	89	+	2. § 11–205.1 of this subtitle (“Falsification, concealment, 29
	90	+	etc., of material facts”); 30
97	91
98		-	1. § 11–205 of this subtitle (“Collusion”); 36 SENATE BILL 653 3
	92	+	3. § 13 –219 of this article (“Required 31
	93	+	clauses – Nondiscrimination clause”); 32
	94	+
	95	+	4. § 13–225 of this article (“Retainage”); 33
	96	+	SENATE BILL 653 3
	97	+
	98	+
	99	+	5. Title 14, Subtitle 3 of this article (“Minority Business 1
	100	+	Participation”); 2
	101	+
	102	+	6. Title 14, Subtitle 7 of this article (“Certified Local Farm 3
	103	+	and Fish Program”); 4
	104	+
	105	+	7. TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE 5
	106	+	STOCK OWNERSHIP PLAN PREFERENCE PROGRAM”); 6
	107	+
	108	+	[7.] 8. Title 15, Subtitle 1 of this article (“Procurement Contract 7
	109	+	Administration”); 8
	110	+
	111	+	[8.] 9. § 15–226 of this article (“Policy established; timing of 9
	112	+	payments; notice upon nonpayment; disputes; appeals”); and 10
	113	+
	114	+	[9.] 10. Title 16 of this article (“Suspension and Debarment 11
	115	+	of Contractors”). 12
	116	+
	117	+	(II) EXCEPT AS PROVIDED IN PARAGRAPH (7) OF THIS 13
	118	+	SUBSECTION, TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE STOCK 14
	119	+	OWNERSHIP PLAN PREFERENCE PROGRAM”) APPLIES TO MORGAN STATE 15
	120	+	UNIVERSITY, ST. MARY’S COLLEGE OF MARYLAND, AND BALTIMORE CITY 16
	121	+	COMMUNITY COLLEGE. 17
	122	+
	123	+	(ii) (III) If a procurement violates the provisions of this subsection 18
	124	+	or policies adopted in accordance with this subsection, the procurement contract is void or 19
	125	+	voidable in accordance with the provisions of § 11–204 of this subtitle. 20
	126	+
	127	+	(7) Except with regard to the provisions of § 15–113 of this article, 21
	128	+	paragraphs (3), (4), and (5) of this subsection do not apply to: 22
	129	+
	130	+	(i) procurement by a University or Baltimore City Community 23
	131	+	College from: 24
	132	+
	133	+	1. another unit; 25
	134	+
	135	+	2. a political subdivision of the State; 26
	136	+
	137	+	3. an agency of a political subdivision of the State; 27
	138	+
	139	+	4. a government, including the government of another state, 28
	140	+	of the United States, or of another country; 29
	141	+
	142	+	5. an agency or political subdivision of a government; or 30
	143	+	4 SENATE BILL 653
	144	+
	145	+
	146	+	6. a bistate, multistate, bicounty, or multicounty 1
	147	+	governmental agency; 2
	148	+
	149	+	(ii) procurement by a University in support of enterprise activities 3
	150	+	for the purpose of: 4
	151	+
	152	+	1. direct resale; 5
	153	+
	154	+	2. remanufacture and subsequent resale; or 6
	155	+
	156	+	3. procurement by the University for overseas programs; or 7
	157	+
	158	+	(iii) procurement by the University System of Maryland for: 8
	159	+
	160	+	1. services of managers to invest, in accordance with the 9
	161	+	management and investment policies adopted by the Board of Regents of the University 10
	162	+	System of Maryland, gift and endowment assets received by the University System of 11
	163	+	Maryland in accordance with § 12–104(e) of the Education Article; or 12
	164	+
	165	+	2. expenditures to manage, maintain, and enhance, in 13
	166	+	accordance with the management and investment policies adopted by the Board of Regents 14
	167	+	of the University System of Maryland, the value of gift and endowment assets received by 15
	168	+	the University System of Maryland in accordance with § 12–104(e) of the Education Article. 16
	169	+
	170	+	SUBTITLE 8. EMPLOYEE STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 17
	171	+
	172	+	14–801. 18
	173	+
	174	+	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
	175	+	INDICATED. 20
	176	+
	177	+	(B) “COVERED PROCUREMENT ” MEANS A PROCUREMENT THAT IS VALUED 21
	178	+	AT LESS THAN $80,000,000. 22
	179	+
	180	+	(C) “ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO UTILIZES AN 23
	181	+	EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 401(A) OF THE INTERNAL 24
	182	+	REVENUE CODE. 25
	183	+
	184	+	(D) “ESOP EVALUATION FACTOR ” MEANS A PREFERENCE F OR AN ESOP 26
	185	+	BIDDER OR ESOP OFFEROR TH AT A UNIT MAY INCLUD E IN THE VALUATION O F 27
	186	+	PROPOSALS. 28
	187	+
	188	+	(D) (E) “ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO 29
	189	+	UTILIZES AN EMPLOYEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF 30
	190	+	THE INTERNAL REVENUE CODE. 31
	191	+	SENATE BILL 653 5
	192	+
	193	+
	194	+	(E) (F) “NON–ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO DOES 1
	195	+	NOT UTILIZE AN EMPLO YEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF 2
	196	+	THE INTERNAL REVENUE CODE. 3
	197	+
	198	+	(F) (G) “NON–ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO 4
	199	+	DOES NOT UTILIZE AN EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 5
	200	+	401(A) OF THE INTERNAL REVENUE CODE. 6
	201	+
	202	+	(G) “PERCENTAGE PREFERENCE ” MEANS: 7
	203	+
	204	+	(1) THE PERCENT OF THE L OWEST RESPONSIVE BID SUBMITTED BY A 8
	205	+	NON–ESOP BIDDER BY WHICH A RE SPONSIVE BID SUBMITT ED BY AN ESOP BIDDER 9
	206	+	MAY: 10
	207	+
	208	+	(I) EXCEED THE LOWEST BI D; AND 11
	209	+
	210	+	(II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 12
	211	+	ACCORDANCE WITH THIS SUBTITLE; OR 13
	212	+
	213	+	(2) THE PERCENT OF THE L OWEST RESPONSIVE COS T PROPOSAL 14
	214	+	SUBMITTED BY A NON –ESOP OFFEROR BY WHICH A R ESPONSIVE PROPOSAL 15
	215	+	SUBMITTED BY AN ESOP OFFEROR MAY : 16
	216	+
	217	+	(I) EXCEED THE LOWEST CO ST; AND 17
	218	+
	219	+	(II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 18
	220	+	ACCORDANCE WITH THIS SUBTITLE. 19
	221	+
	222	+	(H) “UNIT” MEANS THE MARYLAND STADIUM AUTHORITY, A UNIVERSITY, 20
	223	+	OR THE BALTIMORE CITY COMMUNITY COLLEGE. 21
	224	+
	225	+	(I) “UNIVERSITY” MEANS THE UNIVERSITY SYSTEM OF MARYLAND, 22
	226	+	MORGAN STATE UNIVERSITY, OR ST. MARY’S COLLEGE OF MARYLAND. 23
	227	+
	228	+	14–802. 24
	229	+
	230	+	THIS SUBTITLE APPLIES TO A COVERED PROCURE MENT OF: 25
	231	+
	232	+	(1) THE MARYLAND STADIUM AUTHORITY; 26
	233	+
	234	+	(2) A UNIVERSITY; OR 27
	235	+
	236	+	(3) BALTIMORE CITY COMMUNITY COLLEGE. 28
	237	+
	238	+	14–803. 29 6 SENATE BILL 653
99	239
100	240
101	241
102		-	2. § 11–205.1 of this subtitle (“Falsification, concealment, 1
103		-	etc., of material facts”); 2
	242	+	SUBJECT TO THE APPROV AL OF THE BOARD, EACH UNIT SHALL MAY 1
	243	+	ESTABLISH A PERCENTAGE PREFERE NCE AN EVALUATION FACTOR , NOT TO EXCEED 2
	244	+	5% 10%. 3
104	245
105		-	3. § 13 –219 of this article (“Required 3
106		-	clauses – Nondiscrimination clause”); 4
	246	+	14–804. 4
107	247
108		-	4. § 13–225 of this article (“Retainage”); 5
	248	+	(A) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 5
	249	+	CONTRACT USING COMPETITIVE SE ALED BIDS UNDER § 13–103 OF THIS ARTICLE , 6
	250	+	THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP BIDDER IF THE ESOP BIDDER: 7
109	251
110		-	5. Title 14, Subtitle 3 of this article (“Minority Business 6
111		-	Participation”); 7
	252	+	(1) SUBMITS THE LOWEST R ESPONSIVE BID; OR 8
112	253
113		-	6. Title 14, Subtitle 7 of this article (“Certified Local Farm 8
114		-	and Fish Program”); 9
	254	+	(2) DOES NOT SUBMIT THE LOWEST RESPONSIVE BI D BUT THE 9
	255	+	DIFFERENCE BETWEEN T HE BID AND THE LOWES T RESPONSIVE BID SUB MITTED BY 10
	256	+	A NON–ESOP BIDDER DOES NOT EXCEED THE PERCENTAGE PREFE RENCE 11
	257	+	ESTABLISHED UNDER § 14–803 OF THIS SUBTITLE. 12
115	258
116		-	7. TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE 10
117		-	STOCK OWNERSHIP PLAN PREFERENCE PROGRAM”); 11
	259	+	(B) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 13
	260	+	CONTRACT USING COMPETITIVE SE ALED PROPOSALS UNDER § 13–104 OF THIS 14
	261	+	ARTICLE, THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP OFFEROR IF THE 15
	262	+	ESOP OFFEROR: 16
118	263
119		-	~~[7.] 8. Title 15, Subtitle 1 of this article~~ (~~“Procurement Contract 12~~
120		-	~~Administration”)~~; 13
	264	+	(1) SUBMITS THE RESPONSI VE PROPOSAL THAT IS MOST 17
	265	+	ADVANTAGEOUS TO THE UNIT AFTER FACTORING IN THE PRICE PREFERE NCE; OR 18
121	266
122		-	[8.] 9. § 15–226 of this article (“Policy established; timing of 14
123		-	payments; notice upon nonpayment; disputes; appeals”); and 15
	267	+	(2) DOES NOT SUBMIT THE RESPONSIVE PROPOSAL THAT IS MOST 19
	268	+	ADVANTAGEOUS TO THE UNIT BUT THE DIFFERENCE B ETWEEN THAT PROPOSAL AND 20
	269	+	THE LOWEST RESPONSIV E PROPOSAL SUBMITTED BY A NON–ESOP OFFEROR DOES 21
	270	+	NOT EXCEED THE PERCE NTAGE PREFERENCE EST ABLISHED UNDER § 14–803 OF 22
	271	+	THIS SUBTITLE. 23
124	272
125		-	[9.] 10. Title 16 of this article (“Suspension and Debarment 16
126		-	of Contractors”). 17
	273	+	(A) A UNIT MAY INCLUDE AN ESOP EVALUATION FACTOR IN THE 24
	274	+	TECHNICAL EVALUATION FO R A COMPETITIVE SEAL ED PROPOSAL UNDER § 13–104 25
	275	+	OF THIS ARTICLE FOR A CONTRACT SUBJECT T O THIS SUBTITLE. 26
127	276
128		-	(II) EXCEPT AS PROVIDED IN PARAGRAPH (7) OF THIS 18
129		-	SUBSECTION, TITLE 14, SUBTITLE 8 OF THIS ARTICLE (“EMPLOYEE STOCK 19
130		-	OWNERSHIP PLAN PREFERENCE PROGRAM”) APPLIES TO MORGAN STATE 20
131		-	UNIVERSITY, ST. MARY’S COLLEGE OF MARYLAND, AND BALTIMORE CITY 21
132		-	COMMUNITY COLLEGE. 22
	277	+	(B) AN ESOP EVALUATION FACTOR MA Y BE: 27
133	278
134		-	(~~ii) (III~~) If a ~~procurement violates the provisions~~ of ~~this subsection 23~~
135		-	~~or policies adopted in accordance with this subsection,~~ the ~~procurement contract is void or 24~~
136		-	~~voidable in accordance with the provisions of~~ § 11–~~204~~ of this subtitle~~. 25~~
	279	+	(1) IF A POINT SYSTEM IS USED FOR EVALUATION OF PROPOSALS , UP 28
	280	+	TO THE PERCENTAGE OF THE TOTAL ALLOCABLE TECHNI CAL POINTS AUTHORIZE D 29
	281	+	UNDER § 14–803 OF THIS SUBTITLE; OR 30
137	282
138		-	(7) Except with regard to the provisions of § 15–113 of this article, 26
139		-	paragraphs (3), (4), and (5) of this subsection do not apply to: 27
140		-
141		-	(i) procurement by a University or Baltimore City Community 28
142		-	College from: 29
143		-
144		-	1. another unit; 30
145		-
146		-	2. a political subdivision of the State; 31 4 SENATE BILL 653
	283	+	(2) IF A POINT SYSTEM IS NOT USED FOR EVALUAT ION OF PROPOSALS , 31
	284	+	RANKED IN ITS RELATI VE ORDER OF IMPORTAN CE. 32 SENATE BILL 653 7
147	285
148	286
149	287
150		-	3. ~~an agency of a political subdivision of the State;~~ 1
	288	+	14–805. 1
151	289
152		-	4. a government, including the government of another state, 2
153		-	of the United States, or of another country; 3
	290	+	(A) A CONTRACTOR THAT IS A WARDED A CONTRACT FO R A COVERED 2
	291	+	PROCUREMENT SHALL PR OVIDE TO A UNIT , AS A CONDITION OF RE CEIVING THE 3
	292	+	CONTRACT, WRITTEN VERIFICATION OF THE IRS DETERMINATION LETTER FOR THE 4
	293	+	CONTRACTOR ’S EMPLOYEE STOCK OWN ERSHIP PLAN. 5
154	294
155		-	5. an agency or political subdivision of a government; or 4
	295	+	(B) THE WRITTEN VERIFICAT ION REQUIRED UNDER S UBSECTION (A) OF 6
	296	+	THIS SECTION SHALL BE PROVI DED BY A CONTRACTOR TO THE UNIT RESPONSI BLE 7
	297	+	FOR THE PROJECT WITH THE SUBMISSION OF A BID OR PROPOSAL . 8
156	298
157		-	6. a bistate, multistate, bicounty, or multicounty 5
158		-	governmental agency; 6
	299	+	14–806. 9
159	300
160		-	(ii) procurement by a University in support of enterprise activities 7
161		-	for the purpose of: 8
	301	+	ON OR BEFORE DECEMBER 1, 2028, THE MARYLAND STADIUM AUTHORITY, 10
	302	+	BALTIMORE CITY COMMUNITY COLLEGE, THE UNIVERSITY SYSTEM OF MARYLAND, 11
	303	+	MORGAN STATE UNIVERSITY, AND ST. MARY’S COLLEGE OF MARYLAND SHALL 12
	304	+	SUBMIT A REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 13
	305	+	ARTICLE, TO THE LEGISLATIVE POLICY COMMITTEE, THE SENATE BUDGET AND 14
	306	+	TAXATION COMMITTEE, AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS 15
	307	+	COMMITTEE, ON: 16
162	308
163		-	1. direct resale; 9
	309	+	(1) THE NUMBER AND DOLLA R VALUE OF CONTRACTS AWARDED IN 17
	310	+	ACCORDANCE WITH THIS SUBTITLE TO ESOP BIDDERS AND ESOP OFFERORS 18
	311	+	DURING FISCAL YEARS 2026, 2027, AND 2028; AND 19
164	312
165		-	2. remanufacture and subsequent resale; or 10
	313	+	(2) THE AMOUNT OF PRICE PREFERENCE APPLIED T O ALL 20
	314	+	CONTRACTS AWARDED IN ACCORDANCE WITH THIS SUBTITLE; AND 21
166	315
167		-	3. procurement by the University for overseas programs; or 11
	316	+	(3) AN EVALUATION OF THE EFFECTIVENESS OF THE EMPLOYEE 22
	317	+	STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 23
168	318
169		-	(iii) procurement by the University System of Maryland for: 12
	319	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to 24
	320	+	procurement contracts solicited on or before June 30, 2030. 25
170	321
171		-	1. ~~services of managers to invest~~, ~~in accordance with the 13~~
172		-	~~management~~ and ~~investment policies adopted by~~ the ~~Board~~ of ~~Regents of the University 14~~
173		-	~~System of Maryland~~, ~~gift and endowment assets received~~ by the ~~University System of 15~~
174		-	~~Maryland in accordance with § 12–104(e)~~ of ~~the Education Article;~~ ~~or 16~~
	322	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
	323	+	1, 2025. It shall remain effective for a period of 5 years and, at the end of June 30, 2030, 27
	324	+	this Act, with no further action required by the General Assembly, shall be abrogated and 28
	325	+	of no further force and effect. 29
175	326
176		-	2. expenditures to manage, maintain, and enhance, in 17
177		-	accordance with the management and investment policies adopted by the Board of Regents 18
178		-	of the University System of Maryland, the value of gift and endowment assets received by 19
179		-	the University System of Maryland in accordance with § 12–104(e) of the Education Article. 20
180		-
181		-	SUBTITLE 8. EMPLOYEE STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 21
182		-
183		-	14–801. 22
184		-
185		-	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 23
186		-	INDICATED. 24
187		-
188		-	(B) “COVERED PROCUREMENT ” MEANS A PROCUREMENT THAT IS VALUED 25
189		-	AT LESS THAN $80,000,000. 26
190		-
191		-	(C) “ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO UTILIZES AN 27
192		-	EMPLOYEE STOCK OWNER SHIP PLAN APPROVED U NDER § 401(A) OF THE INTERNAL 28
193		-	REVENUE CODE. 29
194		-	SENATE BILL 653 5
195		-
196		-
197		-	(D) (C) “ESOP EVALUATION FACTOR ” MEANS A PREFERENCE F OR AN 1
198		-	ESOP BIDDER OR ESOP OFFEROR THAT A UNIT MAY INCLUDE IN THE VALUATION 2
199		-	EVALUATION OF PROPOSALS . 3
200		-
201		-	(D) (E) (D) “ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO 4
202		-	UTILIZES AN EMPLOYEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF 5
203		-	THE INTERNAL REVENUE CODE. 6
204		-
205		-	(E) (F) “NON–ESOP BIDDER” MEANS A RESPONSIBLE BIDDER WHO DOES 7
206		-	NOT UTILIZE AN EMPLO YEE STOCK OWNERSHIP PLAN APPROVED UNDER § 401(A) OF 8
207		-	THE INTERNAL REVENUE CODE. 9
208		-
209		-	(F) (G) “NON–ESOP OFFEROR” MEANS A RESPONSIBLE OFFEROR WHO 10
210		-	DOES NOT UTILIZE AN EMPLOYEE STOCK OWNERSHIP PLAN APPRO VED UNDER § 11
211		-	401(A) OF THE INTERNAL REVENUE CODE. 12
212		-
213		-	(G) “PERCENTAGE PREFERENCE ” MEANS: 13
214		-
215		-	(1) THE PERCENT OF THE L OWEST RESPONSIVE BID SUBMITTED BY A 14
216		-	NON–ESOP BIDDER BY WHICH A RE SPONSIVE BID SUBMITT ED BY AN ESOP BIDDER 15
217		-	MAY: 16
218		-
219		-	(I) EXCEED THE LOWEST BID ; AND 17
220		-
221		-	(II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 18
222		-	ACCORDANCE WITH THIS SUBTITLE; OR 19
223		-
224		-	(2) THE PERCENT OF THE L OWEST RESPONSIVE COS T PROPOSAL 20
225		-	SUBMITTED BY A NON –ESOP OFFEROR BY WHICH A R ESPONSIVE PROPOSAL 21
226		-	SUBMITTED BY AN ESOP OFFEROR MAY : 22
227		-
228		-	(I) EXCEED THE LOWEST CO ST; AND 23
229		-
230		-	(II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 24
231		-	ACCORDANCE WITH THIS SUBTITLE. 25
232		-
233		-	(H) (E) “UNIT” MEANS THE MARYLAND STADIUM AUTHORITY, A 26
234		-	UNIVERSITY, OR THE BALTIMORE CITY COMMUNITY COLLEGE. 27
235		-
236		-	(I) (F) “UNIVERSITY” MEANS THE UNIVERSITY SYSTEM OF MARYLAND, 28
237		-	MORGAN STATE UNIVERSITY, OR ST. MARY’S COLLEGE OF MARYLAND. 29
238		-
239		-	14–802. 30
240		-	6 SENATE BILL 653
241		-
242		-
243		-	THIS SUBTITLE APPLIES TO A COVERED PROCURE MENT OF: 1
244		-
245		-	(1) THE MARYLAND STADIUM AUTHORITY; 2
246		-
247		-	(2) A UNIVERSITY; OR 3
248		-
249		-	(3) BALTIMORE CITY COMMUNITY COLLEGE. 4
250		-
251		-	14–803. 5
252		-
253		-	SUBJECT TO THE APPROV AL OF THE BOARD, EACH UNIT SHALL MAY 6
254		-	ESTABLISH A PERCENTAGE PREFERE NCE AN EVALUATION FACTOR , NOT TO EXCEED 7
255		-	5% 10%. 8
256		-
257		-	14–804. 9
258		-
259		-	(A) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 10
260		-	CONTRACT USING COMPETITIVE SE ALED BIDS UNDER § 13–103 OF THIS ARTICLE , 11
261		-	THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP BIDDER IF THE ESOP BIDDER: 12
262		-
263		-	(1) SUBMITS THE LOWEST R ESPONSIVE BID; OR 13
264		-
265		-	(2) DOES NOT SUBMIT THE LOWEST RESPONSIVE BI D BUT THE 14
266		-	DIFFERENCE BETWEEN T HE BID AND THE LOWEST R ESPONSIVE BID SUBMIT TED BY 15
267		-	A NON–ESOP BIDDER DOES NOT EXCE ED THE PERCENTAGE PR EFERENCE 16
268		-	ESTABLISHED UNDER § 14–803 OF THIS SUBTITLE. 17
269		-
270		-	(B) A UNIT SHALL AWARD IF A UNIT AWARDS A COVERED PROCUREMEN T 18
271		-	CONTRACT USING COMPETITIVE SE ALED PROPO SALS UNDER § 13–104 OF THIS 19
272		-	ARTICLE, THE UNIT MAY AWARD T HE CONTRACT TO AN ESOP OFFEROR IF THE 20
273		-	ESOP OFFEROR: 21
274		-
275		-	(1) SUBMITS THE RESPONSI VE PROPOSAL THAT IS MOST 22
276		-	ADVANTAGEOUS TO THE UNIT AFTER FACTORING IN THE PRICE PREFERE NCE; OR 23
277		-
278		-	(2) DOES NOT SUBMIT THE RESPONSIVE PROPOSAL THAT IS MOST 24
279		-	ADVANTAGEOUS TO THE UNIT BUT THE DIFFERE NCE BETWEEN THAT PRO POSAL AND 25
280		-	THE LOWEST RESPONSIV E PROPOSAL SUBMITTED BY A NON–ESOP OFFEROR DOES 26
281		-	NOT EXCEED THE PERCE NTAGE PREFERENCE EST ABLISHED UNDER § 14–803 OF 27
282		-	THIS SUBTITLE. 28
283		-
284		-	(A) A UNIT MAY INCLUDE AN ESOP EVALUATION FACTOR IN THE 29
285		-	TECHNICAL EVALUATION FOR A COMPETITIVE SE ALED PROPOSAL UNDER § 13–104 30
286		-	OF THIS ARTICLE FOR A CONTRACT SUBJECT T O THIS SUBTITLE. 31 SENATE BILL 653 7
287		-
288		-
289		-
290		-	(B) AN ESOP EVALUATION FACTOR MA Y BE: 1
291		-
292		-	(1) IF A POINT SYSTEM IS USED FOR EVALUATION OF PR OPOSALS, UP 2
293		-	TO THE PERCENTAGE OF THE TOTAL ALLOCABLE TECHNICAL POINTS AUT HORIZED 3
294		-	UNDER § 14–803 OF THIS SUBTITLE; OR 4
295		-
296		-	(2) IF A POINT SYSTEM IS NOT USED FOR EVALUAT ION OF PROPOSALS , 5
297		-	RANKED IN ITS RELATI VE ORDER OF IMPORTAN CE. 6
298		-
299		-	14–805. 7
300		-
301		-	(A) A CONTRACTOR THAT IS A WARDED A CONTRACT FO R A COVERED 8
302		-	PROCUREMENT SHALL PR OVIDE TO A UNIT , AS A CONDITION OF RE CEIVING THE 9
303		-	CONTRACT, WRITTEN VERIFICATION OF THE IRS DETERMINATION LETTER FOR THE 10
304		-	CONTRACTOR ’S EMPLOYEE STOCK OWN ERSHIP PLAN. 11
305		-
306		-	(B) THE WRITTEN VERIFICATION R EQUIRED UNDER SUBSEC TION (A) OF 12
307		-	THIS SECTION SHALL B E PROVIDED BY A CONT RACTOR TO THE UNIT R ESPONSIBLE 13
308		-	FOR THE PROJECT WITH THE SUBMISSION OF A BID OR PROPOSAL. 14
309		-
310		-	14–806. 15
311		-
312		-	ON OR BEFORE DECEMBER 1, 2028, THE MARYLAND STADIUM AUTHORITY, 16
313		-	BALTIMORE CITY COMMUNITY COLLEGE, THE UNIVERSITY SYSTEM OF MARYLAND, 17
314		-	MORGAN STATE UNIVERSITY, AND ST. MARY’S COLLEGE OF MARYLAND SHALL 18
315		-	SUBMIT A REPORT , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 19
316		-	ARTICLE, TO THE LEGISLATIVE POLICY COMMITTEE, THE SENATE BUDGET AND 20
317		-	TAXATION COMMITTEE, AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS 21
318		-	COMMITTEE, ON: 22
319		-
320		-	(1) THE NUMBER AND DOLLA R VALUE OF CONTRACTS AWARDED IN 23
321		-	ACCORDANCE WITH THIS SUBTITLE TO ESOP BIDDERS AND ESOP OFFERORS 24
322		-	DURING FISCAL YEARS 2026, 2027, AND 2028; AND 25
323		-
324		-	(2) THE AMOUNT OF PRICE PREFERENCE APPLIED T O ALL 26
325		-	CONTRACTS AWARDED IN ACCORDANCE WITH THIS SUBTITLE; AND 27
326		-
327		-	(3) AN EVALUATION OF THE EFFECTIVENESS OF THE EMPLOYEE 28
328		-	STOCK OWNERSHIP PLAN PREFERENCE PROGRAM. 29
329		-
330		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to 30
331		-	procurement contracts solicited on or before June 30, 2030. 31
332		-	8 SENATE BILL 653
333		-
334		-
335		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
336		-	1, 2025. It shall remain effective for a period of 5 years and, at the end of June 30, 2030, 2
337		-	this Act, with no further action required by the General Assembly, shall be abrogated and 3
338		-	of no further force and effect. 4
339		-
340		-
341		-
342		-	Approved:
343		-	________________________________________________________________________________
344		-	Governor.
345		-	________________________________________________________________________________
346		-	President of the Senate.
347		-	________________________________________________________________________________
348		-	Speaker of the House of Delegates.