# Business Regulation (GBR)

## Title 19. Miscellaneous State Business Regulation

### Subtitle 1. General Provisions

#### Section 19-106

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Entity" means:

    (i) a commercial enterprise or business that is in good

    standing with the State Department of Assessments and Taxation and is: 

      (1) incorporated in the State; or

      (2) registered to do business in the State; or

    (ii) a corporation, foundation, school, hospital, or other legal entity for which none of the net earnings inure to the benefit of any private shareholder or individual holding an interest in the entity.

  (3) "State benefit" means:

    (i) State capital grant funding totaling $1,000,000 or

    more in a single fiscal year; 

    (ii) State tax credits totaling $1,000,000 or more in a single fiscal year; or

    (iii) the receipt of a State contract with a total value of $1,000,000 or more.

  (4) "State contract" means a contract that:

    (i) resulted from a competitive procurement process; and

    (ii) is not federally funded in any way.

  (5) "Underrepresented community" means a community whose members self-identify:

    (i) as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or

    (ii) with one or more of the racial or ethnic groups listed in item (i) of this paragraph.

(b) This section does not apply to:

  (1) a sole proprietor;

  (2) a limited liability company owned by a single member;

  (3) a privately held company if at least 75% of the company's shareholders are family members; or

  (4) an entity that:

    (i) has an annual operating budget or annual sales  less than $5,000,000; and

    (ii) does not qualify for a State benefit.

(c) An entity may not qualify for a State benefit unless the entity is able to demonstrate:

  (1) membership of underrepresented communities in the entity's board or executive leadership; or

  (2) support for underrepresented communities in the entity's mission.

(d) The Department of Commerce and the Office of Small, Minority, and Women Business Affairs shall:

  (1) develop and maintain a State Equity Report that compiles diversity data for each entity on:

    (i) the membership of underrepresented communities in the entity's board or executive leadership; and

    (ii) the support of underrepresented communities in the entity's mission; and

  (2) adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.

---

Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)