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<article heading="Article XIV. Purchases from Minority Owned Businesses.">
  <section heading="Sec. 11B-57. Legislative findings and policy.">
    <paragraph indent="1">(a)   Minority owned businesses have experienced the effects of discrimination in the awarding of County contracts and subcontracts.  The effect has been to:</paragraph>
    <paragraph indent="2">(1)   make a smaller percentage of contract and subcontract awards to minority owned businesses than the percentage of qualified minority owned businesses in the County’s relevant geographic market area would indicate as reasonable;</paragraph>
    <paragraph indent="2">(2)   impede the economic development and expansion of minority owned businesses in the County’s relevant geographic market area;</paragraph>
    <paragraph indent="2">(3)   impair the competitive position of minority owned businesses; and</paragraph>
    <paragraph indent="2">(4)   generally harm minority owned businesses.</paragraph>
    <paragraph indent="1">(b)   Adoption of the minority owned business purchasing program is intended to remedy the effects of discrimination on minority owned businesses.</paragraph>
    <paragraph indent="1">(c)   A goal of awarding an appropriate percentage of the dollar value of County contracts to minority owned businesses in proportion to their availability to perform work under County contracts is a reasonable and appropriate means to remedy discrimination against minority owned businesses.</paragraph>
    <paragraph indent="1">(d)   The County should actively recruit all minority owned businesses to provide goods, construction, and services to the County.  To help achieve this goal, the County should:</paragraph>
    <paragraph indent="2">(1)   notify all businesses of procurement opportunities;</paragraph>
    <paragraph indent="2">(2)   provide information to all business owners about the procurement system;</paragraph>
    <paragraph indent="2">(3)   provide referrals for technical assistance, sureties, and financing; and</paragraph>
    <paragraph indent="2">(4)   review procurement procedures to remove artificial barriers to competition.</paragraph>
    <paragraph indent="1">(e)    A five-year period is a reasonable time to continue the minority owned business purchasing program before evaluating it.</paragraph>
    <paragraph indent="1">(f)   This article does not give any person, including a minority owned business, any right or status, including standing, to challenge the award of a contract or subcontract under the County procurement system.  The provisions of this article are enforceable only through the oversight function of the Chief Administrative Officer and the County Council.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997].”</paragraph>
  </section>
  <section heading="Sec. 11B-58. Definitions.">
    <paragraph indent="1">(a)   Minority owned business means, unless the context indicates otherwise,  any legal entity that:</paragraph>
    <paragraph indent="2">(1)   Is a minority business enterprise as defined under the State procurement law; and</paragraph>
    <paragraph indent="2">(2)   Does not exceed a ceiling set by regulation on the number and value of contracts or subcontracts awarded during the first 5 years after it is certified under this article, or during the next 3 years if it did not exceed the ceiling during the first 5 years after it is certified.</paragraph>
    <paragraph indent="1">However, a not for profit entity organized to promote the interests of persons with a disability is a minority owned business only if at least 51 percent of the individuals used by the nonprofit entity to perform the services or manufacture the goods contracted for by the County are persons with a disability.</paragraph>
    <paragraph indent="1">(b)   Relevant geographic market area means the geographic market area identified by the County Executive in the most recent report that evaluates the need to continue the program and is issued in accordance with Section 11B-61(b).</paragraph>
    <paragraph indent="1">(c)   Socially or economically disadvantaged group means a group expressly identified as eligible to control a minority business enterprise under the State procurement law.  For purposes of this Article, disabled owned businesses and not-for-profit entities organized to promote the interests of persons with a disability are a single group.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
  <section heading="Sec. 11B-59. Goals; applicability.">
    <paragraph indent="1">(a)   The Chief Administrative Officer must structure the County's purchasing program to attempt to achieve the goal so that the percentages of the dollar value of purchases identified in subsection (b) from minority owned businesses who have been discriminated against are proportional to the availability of those businesses to perform work under County contracts in the County’s relevant geographic market area as determined by the most recent report that the County Executive must submit to the County Council under Section 11B-6(b).</paragraph>
    <paragraph indent="1">(b)   The purchases subject to the minority owned business goals are any formal or informal procurement, including any contract modification or renewal, valued over $5,000.</paragraph>
    <paragraph indent="1">(c)   The minority owned business goals do not apply to:</paragraph>
    <paragraph indent="2">(1)   grants that are appropriated by the County Council to specific grantees;</paragraph>
    <paragraph indent="2">(2)   utilities;</paragraph>
    <paragraph indent="2">(3)   intragovernmental procurements; or</paragraph>
    <paragraph indent="2">(4)   intergovernmental procurements, including a bridge contract, under Sections 11B-41 and 11B-42 if the Director determines in writing that compliance with this Article is impractical or is outweighed by the benefits to the County of entering into the intergovernmental procurement.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
  <section heading="Sec. 11B-60. Procedures.">
    <paragraph indent="1">(a)   By September 30 of each year, the Chief Administrative Officer must set for the following calendar year percentage goals of the dollar value of purchases subject to this Article for each socially or economically disadvantaged group.  The goals must correspond to the availability of that group by source selection method and purchasing category in the relevant geographic market area as determined by the most recent report that the County Executive must submit to the County Council under Section 11B-61(b) to perform work under County contracts.  The Chief Administrative Officer must set  separate goals for each socially or economically disadvantaged group in the County’s purchases of goods, construction, professional services, and other services.  The Chief Administrative Officer must not set goals for a socially or economically disadvantaged group unless the Chief Administrative Officer determines that the value of purchases made during the previous fiscal year from that group in each category of purchases under a particular source selection method, compared with the availability of that group to perform work in that category, shows a significant under-utilization of the group.</paragraph>
    <paragraph indent="1">(b)   The Chief Administrative Officer must adopt procedures to certify and decertify minority owned businesses.</paragraph>
    <paragraph indent="1">(c)   The Office of Procurement must publicly notify businesses of prospective procurement opportunities.</paragraph>
    <paragraph indent="1">(d)   For those procurements where a goal has been set under subsection (a), the Office of Procurement must encourage minority owned business participation in procurement.  These activities should include:</paragraph>
    <paragraph indent="2">(1)   distribution to potential contractors for whom a goal has not been set of a list of potential minority owned business contractors for whom a goal has been set with a requirement that one or more be contacted if any work subject to a goal is being subcontracted;</paragraph>
    <paragraph indent="2">(2)   a provision in all solicitations for procurements in excess of $50,000 that requires, subject to the waiver provisions of subsection (h), businesses for whom a goal has not been set acting as prime contractors to subcontract to minority owned businesses for whom a goal has been set a percentage of the total dollar value of the contract that is consistent with the numerical goals established under subsection (a);</paragraph>
    <paragraph indent="2">(3)   a requirement that a contractor for whom a goal has not been set:</paragraph>
    <paragraph indent="3">(A)   agree to a plan showing how the contractor proposes to meet its minority owned business procurement subcontracting goal; and</paragraph>
    <paragraph indent="3">(B)   identify, before a notice to proceed is issued or performance of a contract begins, whichever occurs first, each minority owned business that the contractor intends to subcontract with and the projected dollar amount of each subcontract, and promptly notify the using department of any change in either item;</paragraph>
    <paragraph indent="2">(4)   contract requirements that minority owned business participation goals be maintained by prime contractors throughout the life of the contract, including modifications and renewals, subject to the waiver provisions of subsection (h).  Contract requirements:</paragraph>
    <paragraph indent="3">(A)   may include obligating contractors subject to the minority owned business procurement goals to provide in each subcontract with a minority owned business a provision requiring the use of binding arbitration to resolve disputes between the contractor and the minority owned business subcontractor; and</paragraph>
    <paragraph indent="3">(B)   must make failure to submit documentation showing compliance with a minority owned business subcontracting plan under paragraph (3) grounds for withholding any remaining payment or imposing liquidated damages unless failure to comply with the plan is the result of an arbitration decision under subparagraph (A) or a waiver granted under subsection (h).  Liquidated damages under this provision must equal the difference between all amounts the contract or has agreed under its plan to pay minority owned business  subcontractors and all amounts actually paid minority owned business subcontractors under the contract, considering any relevant waiver or arbitrator's decision.  Failure to show compliance with a minority owned business subcontracting plan must also result in finding the contract or non-responsible for purposes of future procurements with the County during the next 3 years; and</paragraph>
    <paragraph indent="2">(5)   an evaluation factor with a value of no more than 10% of the total available points in a request for proposals issued under Section 11B-10 awarding additional points for a proposal from:</paragraph>
    <paragraph indent="3">(A)   a contractor for whom a goal has been set under subsection (a); and</paragraph>
    <paragraph indent="3">(B)   a contractor for whom a goal has not been set who proposes to exceed the minority owned business procurement subcontracting goal established for the contract.</paragraph>
    <paragraph indent="1">(e)   The Office of Procurement must offer procurement system education and information to minority owned businesses for whom a goal has been set under subsection (a).</paragraph>
    <paragraph indent="1">(f)   The Office of Procurement must offer referrals to resources such as technical consultants, sureties, and financing sources.</paragraph>
    <paragraph indent="1">(g)   The Director must review procurement requirements to remove artificial barriers to competition.</paragraph>
    <paragraph indent="1">(h)   The Director may waive, or exempt a business from, minority owned business contracting requirements under appropriate circumstances described in regulations.</paragraph>
    <paragraph indent="1">(i)   The Director may require each contractor and minority owned business that participates in the minority owned business purchasing program to provide information concerning utilization by the contractor of minority owned businesses in private and government contracts.</paragraph>
    <paragraph indent="1">(j)   The Chief Administrative Officer must ensure that all contract administrators receive appropriate guidance in implementing this article.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
  <section heading="Sec. 11B-61. Reports.">
    <paragraph indent="1">(a)   The Chief Administrative Officer must report to the County Council, by September 30 of each year for the previous fiscal year:</paragraph>
    <paragraph indent="2">(1)   the total number and value of all procurements;</paragraph>
    <paragraph indent="2">(2)   the total number and value of all procurements subject to the minority owned business procurement goal;</paragraph>
    <paragraph indent="2">(3)   the total number and value of purchases from minority owned businesses;</paragraph>
    <paragraph indent="2">(4)   the total number and value of purchases of construction, goods, professional services, and other services from each socially or economically disadvantaged group;</paragraph>
    <paragraph indent="2">(5)   the percentage which those purchases are of the total number and value of purchases subject to the minority owned business procurement goal;</paragraph>
    <paragraph indent="2">(6)   the percentage of availability that each socially or economically disadvantaged group represents in each category of purchases in the County’s relevant geographic market area;</paragraph>
    <paragraph indent="2">(7)   the percentage of each socially or economically disadvantaged group that submits a proposal in response to each request for proposals, and the percentage of contracts by dollar volume and number of awards made under each request for proposals to each socially or economically disadvantaged group;</paragraph>
    <paragraph indent="2">(8)   information required in paragraphs (1) through (4) for each Using Department that, for procurements subject to the minority owned business procurement goal, has had either;</paragraph>
    <paragraph indent="3">(A)   procurements of any type exceeding $5,000,000, in the aggregate; or</paragraph>
    <paragraph indent="3">(B)   procurements for professional services exceeding $1,000,000, in the aggregate;</paragraph>
    <paragraph indent="2">(9)   the total number and value of all procurements excluded from the minority owned business goals by Section 11B-59(c);</paragraph>
    <paragraph indent="2">(10)   the total number and value of all waivers or exemptions granted under section 11-60(h), with a brief description of the reasons for each waiver or exemption;</paragraph>
    <paragraph indent="2">(11)   any other information that the County Council requests; and</paragraph>
    <paragraph indent="2">(12)   any other information that a regulation requires to be submitted.</paragraph>
    <paragraph indent="1">(b)    By July 1, 2029, the Director of the Office of Procurement must submit a report to the County Council evaluating the need to extend the minority owned business purchasing program.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
  <section heading="Sec. 11B-62. Monitoring.">
    <paragraph indent="1">The Chief Administrative Officer must develop monitoring procedures that will enable a contract administrator and the minority procurement officer of the Office of Procurement to ascertain compliance by prime contractors with the minority participation requirements of this article.  Monitoring requirements may include the submission of copies of invoices from the minority subcontractor to the prime contractor relative to County contracts.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
  <section heading="Sec. 11B-63. Penalty.">
    <paragraph indent="1">(a)   A person must not:</paragraph>
    <paragraph indent="2">(1)   fraudulently obtain or retain, attempt to obtain or retain, or aid another person in fraudulently obtaining or retaining or attempting to obtain or retain certification as a minority owned business for the purpose of this article;</paragraph>
    <paragraph indent="2">(2)   willfully make a false statement to a County official or employee for the purpose of influencing the certification or denial of certification of an entity as a minority owned business;</paragraph>
    <paragraph indent="2">(3)   fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain public monies to which the person is not entitled under this article; or</paragraph>
    <paragraph indent="2">(4)   willfully make false statements that any entity is or is not certified as a minority owned business for purposes of this article.</paragraph>
    <paragraph indent="1">(b)   A violation of this Section:</paragraph>
    <paragraph indent="2">(1)   is a class A violation; and</paragraph>
    <paragraph indent="2">(2)   disqualifies the violator from doing business with the County for 3 years.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
  <section heading="Sec. 11B-64. Sunset date.">
    <paragraph indent="1">This Article is not effective after December 31, 2029.</paragraph>
    <paragraph indent="1">"Transition.  Any certification as a minority owned business remains valid until April 1, 1998, if:</paragraph>
    <paragraph indent="1">(a)   the County certified the entity as a minority owned business before this Act took effect [December 10, 1997]; and</paragraph>
    <paragraph indent="1">(b)   the entity continues through March 31, 1998, to meet the criteria for a minority owned business in effect before this Act took effect [December 10, 1997].</paragraph>
    <paragraph indent="0">The goal of awarding 20 percent of the total dollar value of County contracts to minority owned businesses remains in effect until the Chief Administrative Officer sets new goals under regulations adopted to implement this Act.  This Act does not affect the validity of any minority, female, disabled subcontractor performance plan entered into before this Act took effect [December 10, 1997]."</paragraph>
  </section>
</article>