In this section the following words have the meanings indicated. “Entity” means: a commercial enterprise or business that is in good standing with the State Department of Assessments and Taxation and is: incorporated in the State; or registered to do business in the State; or 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. “State benefit” means: State capital grant funding totaling $1,000,000 or more in a single fiscal year; State tax credits totaling $1,000,000 or more in a single fiscal year; or the receipt of a State contract with a total value of $1,000,000 or more. “State contract” means a contract that: resulted from a competitive procurement process; and is not federally funded in any way. “Underrepresented community” means a community whose members self–identify: as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or with one or more of the racial or ethnic groups listed in item (i) of this paragraph. This section does not apply to: a sole proprietor; a limited liability company owned by a single member; a privately held company if at least 75% of the company’s shareholders are family members; or an entity that: has an annual operating budget or annual sales less than $5,000,000; and does not qualify for a State benefit. An entity may not qualify for a State benefit unless the entity is able to demonstrate: membership of underrepresented communities in the entity’s board or executive leadership; or support for underrepresented communities in the entity’s mission. The Department of Commerce and the Office of Small, Minority, and Women Business Affairs shall: develop and maintain a State Equity Report that compiles diversity data for each entity on: the membership of underrepresented communities in the entity’s board or executive leadership; and the support of underrepresented communities in the entity’s mission; and adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.