The State: recognizes the declaration of the Joint Economic Committee of the Congress of the United States that broadening the ownership of capital and achieving full employment should be the twin pillars of economic policy; and encourages the broadening of the base of capital ownership among greater numbers of the residents of the State through, as one means, the use of employee stock ownership plans. The General Assembly finds that employee stock ownership plans, as defined in the Internal Revenue Code, make an important contribution toward the broadening of capital ownership, increase the income and financial security of the residents of the State, assure the residents of the State greater control of their economic futures, improve productivity and labor–management relations, contribute to the national effort to combat inflation, strengthen the free enterprise system, and put Maryland in the forefront of contemporary economic trends.

The Division of Labor and Industry of the Maryland Department of Labor and the Public Service Commission shall summarize their efforts to promote the policies related to broadening the ownership of capital in their respective annual reports as required by law.

The Department shall attempt to use to the greatest extent feasible minority business enterprises to provide brokerage and investment management services for any fund established under this article consistent with minority business purchasing standards applicable to units of State government under the State Finance and Procurement Article and consistent with the fiduciary duties of the Department. For purposes of this subsection, brokerage and investment management services shall include services relating to all allocated asset classes. To assist the Department in achieving the goal described under subsection (a) of this section, the Department shall undertake measures to remove any barriers that limit full participation by minority business enterprises in brokerage and investment management services opportunities afforded by any fund established under this article. The measures undertaken by the Department shall include the use of a wide variety of media, including the Department’s website, to provide notice to a broad and varied range of potential providers about the brokerage and investment management services opportunities afforded under this article. In conjunction with the Governor’s Office of Small, Minority, and Women Business Affairs, the Department shall develop guidelines to assist it in identifying and evaluating qualified minority business enterprises in order to help it achieve the objective for greater use of minority business enterprises for brokerage and investment management services under this article. On or before September 1 each year, the Department shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 2–1257 of the State Government Article, the General Assembly on: the identity of the minority business enterprise brokerage and investment management services firms used by any fund established under this article in the immediately preceding fiscal year; the percentage and dollar value of the assets under the custody of each entity that are under the investment control of minority business enterprise brokerage and investment management services firms in each allocated asset class; and the measures the entity undertook in the immediately preceding fiscal year in accordance with subsection (c)(2) of this section.

This subtitle may be cited as the Broadened Ownership Act.