(a) The unit may designate, for the Small Business Preference Program, procurement of certain supplies, services, or construction related services that have been requested through or with the approval of the head of the unit. (b) The invitation for bids on a procurement that has been designated for a small business preference shall be sent to small businesses and regular bidders to establish a reasonable price range commensurate with current market conditions. (c) A unit shall award a procurement contract designated for a small business preference to the small business that: (1) is a responsible bidder; and (2) submits the lowest responsive bid from a small business if the difference between that bid and the lowest responsive bid submitted by a responsible bidder who is not a small business does not exceed the percentage preference established under § 14-206 of this subtitle. §14-301. IN EFFECT // EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 // (a) In this subtitle the following words have the meanings indicated. (b) "Certification" means the determination that a legal entity is a minority business enterprise for the purposes of this subtitle. (c) "Certification agency" means the agency designated by the Board of Public Works under § 14-303(b) of this subtitle to certify and decertify minority business enterprises. (d) "Certified minority business enterprise" means a minority business enterprise that holds a certification. (e) "Economically disadvantaged individual" means a socially disadvantaged individual whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged. (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; (5) services; (6) goods, supplies, and equipment; and (7) real property title insurance services, including commercial real property title insurance services. (f) "Minority business enterprise" means any legal entity, except a joint venture, that is: (1) organized to engage in commercial transactions; (2) at least 51% owned and controlled by 1 or more individuals who are socially and economically disadvantaged; and (3) managed by, and the daily business operations of which are controlled by, one or more of the socially and economically disadvantaged individuals who own it. (g) "Minority business enterprise participation schedule" means a schedule included in the submission of a bid or offer that identifies: (1) the certified minority business enterprises that a bidder or offeror agrees to use in the performance of the contract; and (2) the percentage of contract value attributed to each certified minority business enterprise. (h) "Nonprofit entity" means a corporation that: (1) is incorporated in the State or otherwise qualified to do business in the State; (2) has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code; and (3) is organized to promote the interests of physically or mentally disabled individuals. (i) (1) Subject to paragraphs (2) and (3) of this subsection, "personal net worth" means the net value of the assets of an individual remaining after total liabilities are deducted. (2) "Personal net worth" includes the individual's share of assets held jointly or as community property with the individual's spouse. (3) "Personal net worth" does not include: (i) the individual's ownership interest in the applicant or a certified minority business enterprise; (ii) the individual's equity in his or her primary place of residence; or (iii) up to $500,000 of the cash value of any qualified retirement savings plans or individual retirement accounts. (j) "Race-neutral measure" means a method that is or can be used to assist all small businesses. (k) (1) Subject to paragraphs (2) and (3) of this subsection, and in accordance with the State's most recent disparity study, "socially and economically disadvantaged individual" means a citizen or lawfully admitted permanent resident of the United States who is: (i) in any of the following minority groups: 1. African American - an individual having origins in any of the black racial groups of Africa; 2. American Indian/Native American - an individual having origins in any of the original peoples of North America and who is a documented member of a North American tribe, band, or otherwise has a special relationship with the United States or a state through treaty, agreement, or some other form of recognition. This includes an individual who claims to be an American Indian/Native American and who is regarded as such by the American Indian/Native American community of which the individual claims to be a part, but does not include an individual of Eskimo or Aleutian origin; 3. Asian - an individual having origins in the Far East, Southeast Asia, or the Indian subcontinent, and who is regarded as such by the community of which the person claims to be a part; 4. Hispanic - an individual of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race, and who is regarded as such by the community of which the person claims to be a part; 5. physically or mentally disabled - notwithstanding the State's most recent disparity study, an individual who has an impairment that substantially limits one or more major life activities, who is regarded generally by the community as having such a disability, and whose disability has substantially limited his or her ability to engage in competitive business; or 6. women - a woman, regardless of race or ethnicity; or (ii) otherwise found by the certification agency to be a socially and economically disadvantaged individual. (2) There is a rebuttable presumption that an individual who is a member of a minority group under paragraph (1)(i) of this subsection is socially and economically disadvantaged. (3) An individual whose personal net worth exceeds $1,500,000, as adjusted annually for inflation according to the Consumer Price Index, may not be found to be economically disadvantaged. (l) "Socially disadvantaged individual" means an individual who has been subjected to racial or ethnic prejudice or cultural bias within American society because of membership in a group and without regard to individual qualities. Social disadvantage must stem from circumstances beyond the control of the individual. §14-301.1 IN EFFECT // EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 // The General Assembly finds the following: (1) the State of Maryland wishes to provide all of its citizens with equal access to business formation and business growth opportunities; (2) the elimination of discrimination against minority- and women- owned businesses is of paramount importance to the future welfare of the State; (3) the General Assembly has received and carefully reviewed the disparity study entitled "Business Disparities in the Maryland Market Area" commissioned by the General Assembly and published on February 8, 2017 (the Study), and finds that the Study provides a strong basis in evidence demonstrating persistent discrimination against minority- and women-owned businesses; (4) based on its review of the Study, the General Assembly finds that: (i) there are substantial and statistically significant adverse disparities that are consistent with discrimination against minorities and nonminority women in wages, firm formation, entrepreneurial earnings, and access to capital in the private sector in the same geographic markets and industry categories in which the State does business; (ii) the State would become a passive participant in private sector racial and gender discrimination if it ceased or curtailed its remedial efforts, including the operation of the Minority Business Enterprise Program; (iii) there are substantial and statistically significant adverse disparities that are consistent with discrimination against minorities and nonminority women in State procurement; (iv) there are substantial and statistically significant adverse disparities that are consistent with discrimination against all individual minority groups and for nonminority women in most major industry categories in State procurement; (v) there is ample evidence that discrimination in the private sector has depressed firm formation and firm growth among minority and nonminority women entrepreneurs; and (vi) there is powerful and persuasive qualitative evidence, both statistical and anecdotal, of discrimination against minority and nonminority women business owners in both the public and private sectors; (5) as a result of ongoing discrimination and the present day effects of past discrimination, minority- and women-owned businesses combined continue to be very significantly underutilized relative to their availability to perform work in the overwhelming majority of the procurement categories in which the State does business; (6) minority prime contractors also are subject to discrimination and confront especially daunting barriers in attempting to compete with very large and long-established nonminority companies; (7) despite the fact that the State has employed, and continues to employ, numerous and robust race-neutral remedies, including aggressive outreach and advertising, training and education, small business programs, efforts to improve access to capital, and other efforts, there is a strong basis in evidence that discrimination persists even in public sector procurement where these efforts have been employed; (8) notwithstanding the levels of participation achieved when race- conscious measures are used, in the absence of Minority Business Enterprise participation goals for State procurement, there is a substantial decrease in the overall utilization of minority- and women-owned businesses; (9) this subtitle ensures that race-neutral efforts will be used to the maximum extent feasible and that race-conscious measures will be used only where necessary to eliminate discrimination that was not alleviated by race-neutral efforts; (10) this subtitle continues and enhances efforts to ensure that the State limits the burden on nonminority businesses as much as possible by ensuring that all goals are developed using the best available data and that waivers are available whenever contractors make good faith efforts; (11) this subtitle ensures that the operation of the Minority Business Enterprise Program is consistent with the Study data and narrowly tailored to the compelling interests of the State; and (12) State efforts to support the development of competitively viable minority- and women-owned business enterprises will assist in reducing discrimination and creating jobs for all citizens of Maryland. §14-302. IN EFFECT // EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 // (a) (1) (i) 1. Except for leases of real property, each unit shall structure procurement procedures, consistent with the purposes of this subtitle, to try to achieve an overall percentage goal of the unit's total dollar value of procurement contracts being made directly or indirectly to certified minority business enterprises. 2. Notwithstanding subsubparagraph 1 of this subparagraph, the following contracts may not be counted as part of a unit's total dollar value of procurement contracts: A. a procurement contract awarded in accordance with Subtitle 1 of this title; B. a procurement contract awarded to a nonprofit entity in accordance with requirements mandated by State or federal law; and C. a procurement by the Maryland Developmental Disabilities Administration of the Maryland Department of Health for family and individual support services, community residential services, resource coordination services, behavioral support services, vocational and day services, and respite services, as those terms are defined in regulations adopted by the Maryland Department of Health. (ii) 1. The overall percentage goal shall be established on a biennial basis by the Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General. 2. During any year in which there is a delay in establishing the overall goal, the previous year's goal will apply. (iii) 1. In consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall establish guidelines on a biennial basis for each unit to consider while determining whether to set subgoals for the minority groups listed in § 14-301(k)(1)(i)1, 2, 3, 4, and 6 of this subtitle. 2. During any year in which there is a delay in establishing the subgoal guidelines, the previous year's subgoal guidelines will apply. (iv) 1. The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, shall establish goals and subgoal guidelines that, to the maximum extent feasible, approximate the level of minority business enterprise participation that would be expected in the absence of discrimination. 2. In establishing overall goals and subgoal guidelines, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall provide for public participation by consulting with minority, women's, and general contractor groups, community organizations, and other officials or organizations that could be expected to have information concerning: A. the availability of minority- and women-owned businesses; B. the effects of discrimination on opportunities for minority- and women-owned businesses; and C. the State's operation of the Minority Business Enterprise Program. (v) In establishing overall goals, the factors to be considered shall include: 1. the relative availability of minority- and women- owned businesses to participate in State procurement as demonstrated by the State's most recent disparity study; 2. past participation of minority business enterprises in State procurement, except for procurement related to leases of real property; and 3. other factors that contribute to constitutional goal setting. (vi) Notwithstanding § 12-101 of this article, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article setting forth the State's overall goal. (2) The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, shall establish guidelines for each unit to consider when determining the appropriate minority business enterprise participation percentage goal for a procurement contract in accordance with paragraph (3) of this subsection. (3) Each unit shall: (i) consider the practical severability of all contracts and, in accordance with § 11-201 of this article, may not bundle contracts; (ii) implement a program that will enable the unit to evaluate each contract to determine the appropriate minority business enterprise participation goals, if any, for the contract based on: 1. the potential subcontract opportunities available in the prime procurement contract; 2. the availability of certified minority business enterprises to respond competitively to the potential subcontract opportunities; 3. the contract goal guidelines established under paragraph (2) of this subsection; 4. the subgoal guidelines established under paragraph (1)(iii) of this subsection; and 5. other factors that contribute to constitutional goal setting; (iii) monitor and collect data with respect to prime contractor compliance with contract goals; and (iv) institute corrective action when prime contractors do not make good-faith efforts to comply with contract goals. (4) Units may not use quotas or any project goal-setting process that: (i) solely relies on the State's overall numerical goal, or any other jurisdiction's overall numerical goal; or (ii) fails to incorporate the analysis outlined in paragraph (3)(ii) of this subsection. (5) (i) A woman who is also a member of an ethnic or racial minority group may be certified in that category in addition to the gender category. (ii) For purposes of achieving the goals in this subsection, a certified minority business enterprise may participate in a procurement contract and be counted as a woman-owned business, a business owned by a member of an ethnic or racial group, or both, if the business has been certified in both categories. (6) Each unit shall meet the maximum feasible portion of the State's overall goal established in accordance with this subsection by using race-neutral measures to facilitate minority business enterprise participation in the procurement process. (7) If a unit establishes minority business enterprise participation goals for a contract, a contractor, including a contractor that is a certified minority business enterprise, shall: (i) identify specific work categories appropriate for subcontracting; (ii) at least 10 days before bid opening, solicit minority business enterprises, through written notice that: 1. describes the categories of work under item (i) of this paragraph; and 2. provides information regarding the type of work being solicited and specific instructions on how to submit a bid; (iii) attempt to make personal contact with the firms in item (ii) of this paragraph; (iv) offer to provide reasonable assistance to minority business enterprises to fulfill bonding requirements or to obtain a waiver of those requirements; (v) in order to publicize contracting opportunities to minority business enterprises, attend prebid or preproposal meetings or other meetings scheduled by the unit; and (vi) upon acceptance of a bid or proposal, provide the unit with a list of minority businesses with whom the contractor negotiated, including price quotes from minority and nonminority firms. (8) (i) Subject to subparagraph (ii) of this paragraph, a unit may consider modifying the minority business participation goal on a procurement contract: 1. at any time prior to contract execution; or 2. after contract execution, when determined to be in the best interest of the State. (ii) Before a unit may consider modifying a minority business participation goal under subparagraph (i) of this paragraph, the unit shall: 1. make a determination that there has been a change in the factors established under paragraph (3) of this subsection; 2. use the factors established under paragraph (3) of this subsection to determine the percentage modification to the minority business participation goal; and 3. obtain the agreement of the contractor, including any reasonable pricing considerations. (9) The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall: (i) in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, establish procedures governing how the participation of minority business enterprise prime contractors is counted toward contract goals; and (ii) notwithstanding § 12-101 of this article, adopt regulations setting forth the procedures established in accordance with this paragraph. (10) (i) 1. If a contractor, including a certified minority business enterprise, does not achieve all or a part of the minority business enterprise participation goals on a contract, the unit shall make a finding of whether the contractor has demonstrated that the contractor took all necessary and reasonable steps to achieve the goals, including compliance with paragraph (7) of this subsection. 2. A waiver of any part of the minority business enterprise goals for a contract shall be granted if a contractor provides a reasonable demonstration of good-faith efforts to achieve the goals. (ii) If the unit determines that a waiver should be granted in accordance with subparagraph (i) of this paragraph, the unit may not require the contractor to renegotiate any subcontract in order to achieve a different result. (iii) The head of the unit may waive any of the requirements of this subsection relating to the establishment, use, and waiver of contract goals for a sole source, expedited, or emergency procurement in which the public interest cannot reasonably accommodate use of those requirements. (iv) 1. Except for waivers granted in accordance with subparagraph (iii) of this paragraph, when a waiver determination is made, the unit shall issue the determination in writing. 2. The head of the unit shall: A. keep one copy of the waiver determination and the reasons for the determination; and B. forward one copy of the waiver determination to the Governor's Office of Small, Minority, and Women Business Affairs. (v) On or before July 31 of each year, each unit shall submit directly to the Board of Public Works and the Governor's Office of Small, Minority, and Women Business Affairs an annual report of waivers requested and waivers granted under this paragraph. (vi) The report required under subparagraph (v) of this paragraph shall contain the following information on those contracts where the unit considered a contractor's request for waiver of all or a portion of the minority business enterprise goals: 1. the contract titles, numbers, and dates; 2. the number of waiver requests received; 3. the number of waiver requests granted; and 4. any other information specifically requested by the Board. (11) (i) This paragraph applies to a bidder or offeror after submission of a bid or proposal and before the execution of a contract with an expected degree of minority business enterprise participation. (ii) 1. If a unit's procurement officer determines that a deficiency exists in the minority business enterprise participation schedule, the procurement officer shall notify the bidder or offeror of the deficiency and require the bidder or offeror to submit an amended minority business enterprise participation schedule within a reasonable time period. 2. A determination under subsubparagraph 1 of this subparagraph shall be made in consultation with the unit's minority business enterprise liaison. 3. As directed by the notification made under subsubparagraph 1 of this subparagraph, the bidder or offeror shall submit an amended minority business enterprise participation schedule correcting the deficiency identified. (12) (i) This paragraph applies after execution of a contract with an expected degree of minority business enterprise participation. (ii) The minority business enterprise participation schedule, including any amendment, shall be attached to and made a part of the executed contract. (iii) 1. A. Except as provided in subsubsubparagraph B of this subsubparagraph, for purposes of this subparagraph, good cause for removal of a certified minority business enterprise after contract execution includes documented nonperformance by the minority business enterprise or election by the certified minority business enterprise to cease work on the contract. B. Failure of a certified minority business enterprise to provide a bond requested by a contractor in violation of § 13-227 of this article may not be considered nonperformance by the minority business enterprise. 2. A contractor may not terminate or otherwise cancel the contract of a certified minority business enterprise subcontractor listed in the minority business enterprise participation schedule without showing good cause and obtaining the prior written consent of the minority business enterprise liaison and approval of the head of the unit. 3. The unit shall send a copy of the written consent obtained under subsubparagraph 2 of this subparagraph to the Governor's Office of Small, Minority, and Women Business Affairs. (iv) A minority business enterprise participation schedule may be amended to modify minority business enterprise participation after the date of contract execution only if: 1. it is in the best interest of the State; 2. it is approved by the head of the unit; and 3. the contract is amended. (13) If, during the performance of a contract, a certified minority business enterprise contractor or subcontractor becomes ineligible to participate in the Minority Business Enterprise Program because one or more of its owners has a personal net worth that exceeds the amount specified in § 14-301(k)(3) of this subtitle: (i) that ineligibility alone may not cause the termination of the certified minority business enterprise's contractual relationship for the remainder of the term of the contract; and (ii) the certified minority business enterprise's participation under the contract shall continue to be counted toward the program and contract goals. (14) (i) Except as provided in subparagraph (ii) of this paragraph, a nonprofit entity participating as a minority business enterprise on a procurement contract awarded by a unit before July 1, 2015, may continue to participate in the contract until the contract expires or otherwise terminates, including all options, renewals, and other extensions. (ii) 1. The nonprofit entity's participation may not be counted toward achieving the minority business enterprise participation goals in this subsection. 2. The unit may not require that a certified minority business enterprise be substituted for the nonprofit entity in order to meet the minority business enterprise goals for the procurement contract. (15) (i) For purposes of this paragraph and paragraph (16) of this subsection, "regular dealer": 1. means a firm that owns, operates, or maintains a store, a warehouse, or any other establishment in which the materials, supplies, articles, or equipment are of the general character described by the specifications required under the contract and are bought, kept in stock, or regularly sold or leased to the public in the usual course of business; and 2. does not include a packager, a broker, a manufacturer's representative, or any other person that arranges or expedites transactions. (ii) A unit may apply only 60% of the costs of the materials and supplies provided by the certified minority business enterprise if the certified minority business enterprise is a regular dealer for purposes of achieving the minority business enterprise contract goal. (16) With respect to materials or supplies purchased from a certified minority business enterprise that is neither a manufacturer nor a regular dealer: (i) a unit may apply the entire amount of fees or commissions charged for assistance in the procurement of the materials and supplies, fees, or transportation charges for the delivery of materials and supplies required on a procurement toward minority business enterprise contract goals, provided a unit determines the fees to be reasonable and not excessive as compared with fees customarily allowed for similar services; and (ii) a unit may not apply any portion of the costs of the materials and supplies toward minority business enterprise goals. (b) (1) The provisions of §§ 14-301(f) and 14-303 of this subtitle and subsection (a) of this section are inapplicable to the extent that any unit determines the provisions to be in conflict with any applicable federal program requirement. (2) The determination under this subsection shall be included with the report required under § 14-305 of this subtitle. §14-303. IN EFFECT // EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 // (a) (1) (i) In accordance with Title 10, Subtitle 1 of the State Government Article, the Board shall adopt regulations consistent with the purposes of this Division II to carry out the requirements of this subtitle. (ii) The Board shall keep a record of information regarding any waivers requested in accordance with § 14-302(a)(10)(i) of this subtitle and subsection (b)(12) of this section and submit a copy of the record to the General Assembly on or before October 1 of each year, in accordance with § 2-1257 of the State Government Article. (2) The regulations shall establish procedures to be followed by units, prospective contractors, and successful bidders or offerors to maximize notice to, and the opportunity to participate in the procurement process by, a broad range of minority business enterprises. (b) These regulations shall include: (1) provisions: (i) designating one State agency to certify and decertify minority business enterprises for all units through a single process that meets applicable federal requirements, including provisions that promote and facilitate the submission of some or all of the certification application through an electronic process; (ii) for the purpose of certification under this subtitle, that promote and facilitate certification of minority business enterprises that have received certification from a federal or a county program that uses a certification process substantially similar to the process established in accordance with item (i) of this item, including a provision that provides for certification of a business as a minority business enterprise if the business: 1. has obtained certification under the federal Disadvantaged Business Enterprise Program; and 2. meets the eligibility requirements of the Minority Business Enterprise Program; (iii) requiring the agency designated to certify minority business enterprises to complete the agency's review of an application for certification and notify the applicant of the agency's decision within 90 days of receipt of a complete application that includes all of the information necessary for the agency to make a decision; and (iv) authorizing the agency designated to certify minority business enterprises to extend the notification requirement established under item (iii) of this item once, for no more than an additional 60 days, if the agency provides the applicant with a written notice and explanation; (2) a requirement that the solicitation document accompanying each solicitation: (i) set forth the expected degree of minority business enterprise participation based, in part, on the factors set forth in § 14-302(a)(3)(ii) of this subtitle; and (ii) include a summary of the factors used to determine the expected degree of minority business enterprise participation, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries; (3) a requirement that bidders or offerors complete a document setting forth the percentage of the total dollar amount of the contract that the bidder or offeror agrees will be performed by certified minority business enterprises; (4) a requirement that within 10 days after notice from the prime contractor of the State's intent to award a contract, each minority business enterprise serving as a subcontractor on the contract complete a document setting forth the percentage and type of work assigned to the subcontractor under the contract and submit copies of the completed form to both the procurement officer and the contractor; (5) a requirement that the solicitation documents completed and submitted by the bidder or offeror in connection with its minority business enterprise participation commitment must be attached to and made a part of the contract; (6) (i) a requirement that all contracts containing minority business enterprise participation goals shall contain a liquidated damages provision that applies in the event that the contractor fails to comply in good faith with the provisions of this subtitle or the pertinent terms of the applicable contract; and (ii) a provision that prohibits a unit from assessing liquidated damages for an indefinite delivery contract or an indefinite performance contract if a unit fails to request the performance or delivery of a task for which: 1. a minority business enterprise subcontractor was named on the participation schedule; or 2. a minority business enterprise subcontractor was named on the participation schedule and qualified based on the subcontractor's existing North American Industry Classification System code; (7) a requirement that the unit provide a current list of certified minority business enterprises to each prospective contractor; (8) provisions to ensure the uniformity of requests for bids on subcontracts; (9) provisions relating to the timing of requests for bids on subcontracts and of submission of bids on subcontracts; (10) provisions designed to ensure that a fiscal disadvantage to the State does not result from an inadequate response by minority business enterprises to a request for bids; (11) provisions relating to joint ventures, under which a bidder may count toward meeting its minority business enterprise participation goal, the minority business enterprise portion of the joint venture; (12) consistent with § 14-302(a)(10) of this subtitle, provisions relating to any circumstances under which a unit may waive obligations of the contractor relating to minority business enterprise participation; (13) provisions requiring a submission to the unit by minority business enterprises acknowledging all payments received or any other information requested based on criteria established by the Governor's Office of Small, Minority, and Women Business Affairs under a contract governed by this subtitle; (14) a requirement that a unit shall verify and maintain data concerning payments received by minority business enterprises, including a requirement that, upon completion of a project, the unit shall compare the total dollar value actually received by minority business enterprises with the amount of contract dollars initially awarded, and an explanation of any discrepancies therein; (15) a requirement that a unit verify that minority business enterprises listed in a successful bid are actually participating to the extent listed in the project for which the bid was submitted; (16) provisions establishing a graduation program based on the financial viability of the minority business enterprise, using annual gross receipts or other economic indicators as may be determined by the Board; (17) a requirement that a bid or proposal based on a solicitation with an expected degree of minority business enterprise participation identify the specific commitment of certified minority business enterprises at the time of submission; (18) provisions promoting and providing for the counting and reporting of certified minority business enterprises as prime contractors; (19) provisions establishing standards to require a minority business enterprise to perform a commercially useful function on a contract; (20) a requirement that each unit work with the Governor's Office of Small, Minority, and Women Business Affairs to designate certain procurements as being excluded from the requirements of § 14-302(a) of this subtitle; (21) provisions promoting and providing for the counting and reporting of minority business enterprises certified as both a woman-owned business and a business owned by a member of an ethnic or racial group in accordance with § 14-302(a)(5) of this subtitle; and (22) other provisions that the Board considers necessary or appropriate to encourage participation by minority business enterprises and to protect the integrity of the procurement process. (c) The regulations adopted under this section shall specify that a unit may not allow a business to participate as if it were a certified minority business enterprise if the business's certification is pending. §14-304. IN EFFECT // EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 // (a) (1) The certification agency shall develop and maintain a directory of all certified minority business enterprises. (2) The directory shall be accessible to the public through the Internet. (3) For each minority business enterprise included in the directory, the certification agency shall include the following information: (i) all contract information available to the certification agency for the minority business enterprise; (ii) the certification number and minority status of the minority business enterprise; (iii) contact information for up to three professional references for the minority business enterprise; and (iv) any other information the certification agency considers necessary or appropriate to encourage participation in the procurement process by minority business enterprises. (4) The certification agency shall: (i) update the directory at least monthly; (ii) identify as recently certified in the directory each minority business enterprise that has obtained certification during the calendar year; and (iii) include in the directory a list of all minority business enterprises that have become ineligible to participate in the Minority Business Enterprise Program because: 1. one or more of its owners has a personal net worth that exceeds the amount specified in § 14-301(i)(3) of this subtitle; or 2. the minority business enterprise no longer meets the standards developed under § 14-303(b)(13) of this subtitle. (b) In the same manner and with the same fees as provided by law in civil cases, in a matter regarding the decertification of a certified minority business enterprise, the certification agency may: (1) subpoena witnesses; (2) administer oaths; and (3) compel the production of records, books, papers, and other documents. (c) If a person fails to comply with a subpoena issued under subsection (b) of this section, or fails to produce documents or other evidence, on petition of the certification agency, a court of competent jurisdiction may pass an order directing compliance with the subpoena or compelling the production of documents or other evidence. §14-305. IN EFFECT // EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 // (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; 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) Except for real property 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. (3) This report may be prepared in conjunction with the annual report required under § 9-4120 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.
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