<section article="gsf" article_name="State Finance and Procurement" number="14-101" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Community service provider” means an entity that:</text> <level label="1"> <text>is organized under the laws of the United States or this State;</text> </level> <level label="2"> <text>is accredited by the Division of Rehabilitation Services of the State Department of Education for participation in the Employment Works Program;</text> </level> <level label="3"> <text>is operated in the interest of individuals who have a mental or physical disability, including blindness, that:</text> <level label="i"> <text>constitutes a substantial barrier to employment; and</text> </level> <level label="ii"> <text>prevents the individual from engaging in competitive employment; and</text> </level> </level> <level label="4"> <text>does not inure net income wholly or partly to the benefit of any shareholder or other individual.</text> </level> </level> <level label="c"> <text>“Individual with disability owned business” means a business:</text> <level label="1"> <text>that is organized under the laws of the United States or the State;</text> </level> <level label="2"> <text>that is majority owned by an individual or individuals determined by the Division of Rehabilitation Services in the State Department of Education to have a disability, as defined by Title 21, Subtitle 3 of the Education Article;</text> </level> <level label="3"> <text>whose majority owner or owners are directly and significantly engaged in the daily operation of the business;</text> </level> <level label="4"> <text>whose workforce includes individuals with disabilities comprising a percentage of the workforce that is at or above the minimum required under the policies or guidelines established by the Pricing and Selection Committee for the Employment Works Program;</text> </level> <level label="5"> <text>whose total gross revenues for contracts assigned under the Program at the time of assignment do not exceed the maximum allowed under policies or guidelines established by the Pricing and Selection Committee for the Employment Works Program; and</text> </level> <level label="6"> <text>that continues to meet all other eligibility criteria established by the Pricing and Selection Committee for the Employment Works Program.</text> </level> </level> <level label="d"> <text>“Preferred provider” means a provider of supplies or services given preference in § 14–103 of this subtitle.</text> </level> <level label="e"> <text>“State aided or controlled entity” means any public or quasi–public institution that receives aid from the State or that is owned, controlled, or managed by the State.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-102" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <text>Notwithstanding any other provision of this Division II, a State or State aided or controlled entity shall buy supplies and services in accordance with § 14–103 of this subtitle.</text> </level> <level label="b"> <text>The procurement of services from the Employment Works Program or an Employment Works Program vendor is not subject to the cost savings requirements of § 13–405 of the State Personnel and Pensions Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-103" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <text>A State or State aided or controlled entity shall buy supplies and services from:</text> <level label="1"> <text>Maryland Correctional Enterprises, as provided in Title 3, Subtitle 5 of the Correctional Services Article, if Maryland Correctional Enterprises provides the supplies or services;</text> </level> <level label="2"> <text>Blind Industries and Services of Maryland, if:</text> <level label="i"> <text>Blind Industries and Services of Maryland provides the supplies or services; and</text> </level> <level label="ii"> <text>Maryland Correctional Enterprises does not provide the supplies or services; or</text> </level> </level> <level label="3"> <text>the Employment Works Program established under § 14–108 of this subtitle, if:</text> <level label="i"> <text>a community service provider or an individual with disability owned business provides the supplies or services;</text> </level> <level label="ii"> <text>neither Maryland Correctional Enterprises nor Blind Industries and Services of Maryland provides the supplies or services; and</text> </level> <level label="iii"> <text>a State or State aided or controlled entity is not required by law to buy the supplies or services from any other unit of the State government.</text> </level> </level> </level> <level label="b"> <text>A State or State aided or controlled entity shall give preference to the providers listed under subsection (a) of this section in the order that the providers are listed.</text> </level> <level label="c"> <text>To the extent practicable, a State or State aided or controlled entity shall include in a maintenance contract that has a component for housekeeping or janitorial services, a requirement that a prime contractor procure janitorial products from Blind Industries and Services of Maryland if the specified products are made, manufactured, remanufactured, packaged, repackaged, or assembled by Blind Industries and Services of Maryland and are available.</text> </level> <level label="d"> <level label="1"> <text>On request by a State or State aided or controlled entity, the Pricing and Selection Committee for Preferred Providers may grant a waiver to the State or State aided or controlled entity from the requirement under subsection (a)(1) of this section if:</text> <level label="i"> <text>the price of the needed supplies and services is at least 10% above market rates for similar supplies and services; or</text> </level> <level label="ii"> <text>the time at which the needed supplies and services would be delivered does not meet the entity’s needs.</text> </level> </level> <level label="2"> <text>The Department of General Services shall adopt regulations to implement this subsection.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-106" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <text>In this section, “Committee” means the Pricing and Selection Committee for Preferred Providers.</text> </level> <level label="b"> <text>There is a Pricing and Selection Committee for Preferred Providers.</text> </level> <level label="c"> <text>The Committee consists of the following 6 members:</text> <level label="1"> <text>the Secretary of Transportation or a designee;</text> </level> <level label="2"> <text>the Chief Procurement Officer or a designee;</text> </level> <level label="3"> <text>the Secretary of Public Safety and Correctional Services or a designee;</text> </level> <level label="4"> <text>the Assistant Secretary for Vocational Rehabilitation within the State Department of Education or a designee;</text> </level> <level label="5"> <text>the Secretary of Labor or a designee; and</text> </level> <level label="6"> <text>the Special Secretary for the Office of Small, Minority, and Women Business Affairs or a designee.</text> </level> </level> <level label="d"> <text>A member of the Committee:</text> <level label="1"> <text>may not receive compensation; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.</text> </level> </level> <level label="e"> <level label="1"> <text>Blind Industries and Services of Maryland shall provide staff for the Committee.</text> </level> <level label="2"> <text>The staff provided in accordance with paragraph (1) of this subsection shall:</text> <level label="i"> <text>be a blind or a visually impaired associate of Blind Industries and Services of Maryland; and</text> </level> <level label="ii"> <text>complete work related to the duties of the Committee regarding Blind Industries and Services of Maryland under the supervision and direction of the Committee.</text> </level> </level> </level> <level label="f"> <text>The Committee shall:</text> <level label="1"> <text>ensure that supplies and services provided by Blind Industries and Services of Maryland or an Employment Works Program community service provider create work opportunities for individuals who have a mental or physical disability, including blindness, for which Blind Industries and Services of Maryland or the Employment Works Program community service provider was established to assist;</text> </level> <level label="2"> <text>set the prices of supplies and services that Blind Industries and Services of Maryland provides to reflect the fair market prices for the supplies and services;</text> </level> <level label="3"> <text>review and verify the prevailing average market prices, as proposed by Maryland Correctional Enterprises:</text> <level label="i"> <text>when changes are made to the pricing of existing supplies and services that are available from Maryland Correctional Enterprises; and</text> </level> <level label="ii"> <text>for new supplies or services that Maryland Correctional Enterprises intends to make available;</text> </level> </level> <level label="4"> <text>establish procedures to govern procurement of supplies, services, and other sales from Employment Works Program community service providers and individual with disability owned businesses;</text> </level> <level label="5"> <text>from the State procurement list, choose appropriate supplies, services, and other sales for Employment Works Program community service providers and individual with disability owned businesses to offer for procurement;</text> </level> <level label="6"> <text>provide that the State procure those supplies, services, and other sales from an Employment Works Program community service provider or an individual with disability owned business;</text> </level> <level label="7"> <text>if supplies, services, or other sales are not available for procurement from a unit of the State government, determine whether supplies, services, or other sales are available from an Employment Works Program community service provider or an individual with disability owned business;</text> </level> <level label="8"> <text>determine the fair market price of supplies, services, and other sales that Employment Works Program community service providers and individual with disability owned businesses provide;</text> </level> <level label="9"> <text>in accordance with market conditions, adjust prices for the supplies, services, and other sales that Employment Works Program community service providers and individual with disability owned businesses provide;</text> </level> <level label="10"> <text>at the request of a community service provider or an individual with disability owned business, review and, if appropriate, change the price of a supply or service; and</text> </level> <level label="11"> <text>review a request submitted from and may grant a waiver to the State or a State–aided or controlled entity in accordance with § 14–103(d)(1) of this subtitle.</text> </level> </level> <level label="g"> <text>In addition to the duties specified under subsection (f) of this section, the Committee shall:</text> <level label="1"> <text>establish and periodically review eligibility policies or guidelines for participating community service providers and individual with disability owned businesses;</text> </level> <level label="2"> <text>maintain a current list of community service providers and individual with disability owned businesses;</text> </level> <level label="3"> <text>periodically review and revise its list of community service providers and individual with disability owned businesses; and</text> </level> <level label="4"> <text>send any revised list to the Chief Procurement Officer who shall make the list available to each person responsible for buying supplies or services for the State or a State aided or controlled entity.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-107" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <text>The Pricing and Selection Committee for Preferred Providers shall:</text> <level label="1"> <level label="i"> <text>maintain a current list of supplies and services that Blind Industries and Services of Maryland provides;</text> </level> <level label="ii"> <text>maintain a current list of supplies, services, and other sales that community service providers and individual with disability owned businesses provide; and</text> </level> <level label="iii"> <text>maintain a current list of supplies and services that Maryland Correctional Enterprises provides;</text> </level> </level> <level label="2"> <text>periodically review and revise the lists of supplies, services, and other sales maintained in accordance with item (1) of this section; and</text> </level> <level label="3"> <text>send the lists, and any revised lists, to the Chief Procurement Officer who shall make the lists available to each person responsible for buying supplies, services, or other sales for the State or a State aided or controlled entity.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-108" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <text>In this section, “Program” means the Employment Works Program.</text> </level> <level label="b"> <text>There is an Employment Works Program in the Governor’s Office of Small, Minority, and Women Business Affairs.</text> </level> <level label="c"> <text>The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall designate Maryland Works, Inc., or another appropriate coordinating entity, to facilitate the distribution of procurement contracts for supplies and services among community service providers and individual with disability owned businesses.</text> </level> <level label="d"> <text>The coordinating entity designated under subsection (c) of this section shall:</text> <level label="1"> <text>identify potential contracts for supplies and services eligible for procurement;</text> </level> <level label="2"> <text>establish procedures for the selection of community service providers to perform under potentially eligible contracts for preference procurement;</text> </level> <level label="3"> <text>establish procedures for remediation of noncompliance with State or Program policies;</text> </level> <level label="4"> <text>provide training and technical assistance to participating community service providers;</text> </level> <level label="5"> <text>conduct cost analyses and market research for submission and review by the Pricing and Selection Committee for the Program;</text> </level> <level label="6"> <text>provide staff support for the Pricing and Selection Committee for the Program; and</text> </level> <level label="7"> <text>serve as a monitoring agent to ensure that high quality standards are met and maintained by the Program and its participating community service providers.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-109" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Blind person” means a person who is:</text> <level label="i"> <text>blind; and</text> </level> <level label="ii"> <text>licensed by the Division under the federal acts.</text> </level> </level> <level label="3"> <text>“Division” means the Division of Rehabilitation Services in the Department of Education.</text> </level> <level label="4"> <text>“Program” means the Maryland Business Enterprise Program for the Blind.</text> </level> <level label="5"> <text>“Vending facility” includes vending machines, cafeterias, snack bars, and other concession stands that sell food, beverages, newspapers, periodicals, confections, tobacco products, and other merchandise, including chances for the State Lottery.</text> </level> <level label="6"> <text>“Vending machine” means a currency-operated machine that dispenses products or services.</text> </level> <level label="7"> <text>“Vending machine income” means receipts, other than those of a blind vendor, from vending machine operations on property controlled by the Department of General Services after deducting the costs of the goods sold, including reasonable service and maintenance costs in accordance with customary business practices.</text> </level> </level> <level label="b"> <text>There is a Maryland Business Enterprise Program for the Blind in the Division.</text> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Program has priority to operate a vending facility on property controlled by the Department of General Services.</text> </level> <level label="2"> <text>If a facility required to give the priority under this section has vending facilities that are not operated by blind persons, the requirements of this section are waived until the earlier of:</text> <level label="i"> <text>the first expiration of a contract between the operator of the vending facility and the Department of General Services; or</text> </level> <level label="ii"> <text>June 1, 1994.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Division and the Department of General Services shall adopt regulations for:</text> <level label="i"> <text>the operation and maintenance of a vending facility by the Program; and</text> </level> <level label="ii"> <text>the protection of State property.</text> </level> </level> <level label="2"> <text>The Department of General Services shall cooperate with the Division for the establishment, whenever possible, of vending facilities operated by the Program on Department of General Services property.</text> </level> <level label="3"> <level label="i"> <text>Any vending machine income that results from the provisions of this section shall accrue to the blind person managing the vending facility on the property where the income is generated in accordance with federal regulations governing the Vending Facilities Program for the Blind.</text> </level> <level label="ii"> <text>If there is no person managing the vending facility, the vending machine income shall be distributed to the Division for the support of the Program.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-110" title_number="14" title_name="Preferences" subtitle_number="1" subtitle_name="Preferences to Benefit Disadvantaged Individuals"> <level label="a"> <text>Notwithstanding any other provision of law, subsections (b) and (c) of this section apply to:</text> <level label="1"> <text>a State or State aided or controlled entity that is:</text> <level label="i"> <text>subject to the requirements of § 14–103 of this subtitle and § 14–305 of this title; or</text> </level> <level label="ii"> <text>identified by the Department of General Services; and</text> </level> </level> <level label="2"> <text>the University System of Maryland, St. Mary’s College of Maryland, and Morgan State University.</text> </level> </level> <level label="b"> <level label="1"> <text>Within 60 days after the enactment of the budget bill by the General Assembly, each State or State aided or controlled entity shall prepare and submit to the Department of General Services a fiscal year procurement expenditure forecast that details the expected expenditures and contracts to be awarded under § 14–103 of this subtitle in the next fiscal year.</text> </level> <level label="2"> <text>The forecast required by paragraph (1) of this subsection shall include activities planned to increase the number of contracts awarded under § 14–103 of this subtitle.</text> </level> </level> <level label="c"> <level label="1"> <text>Within 90 days after the end of each fiscal year, a State or State aided or controlled entity shall submit a report to the Department of General Services that complies with the requirements of paragraph (2) of this subsection.</text> </level> <level label="2"> <text>For the preceding fiscal year, the report shall include:</text> <level label="i"> <text>the total number and the dollar value of contracts awarded by the State or State aided or controlled entity to a preferred provider;</text> </level> <level label="ii"> <text>the total number and the dollar value of payments made by a State or State aided or controlled entity to a preferred provider, including purchase card procurements;</text> </level> <level label="iii"> <text>the total number and the dollar value of contracts awarded by the State or State aided or controlled entity to a provider other than a preferred provider;</text> </level> <level label="iv"> <text>the total number and the dollar value of payments made by the State or State aided or controlled entity to a provider other than a preferred provider, including purchase card procurements;</text> </level> <level label="v"> <text>the percentage that the contracts to preferred providers represent of the total number of procurement contracts;</text> </level> <level label="vi"> <text>the percentage that the payments to preferred providers represent of the total value of payments; and</text> </level> <level label="vii"> <text>any other information required by the Department of General Services.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>Within 90 days after the end of each fiscal year, a preferred provider awarded a contract in accordance with § 14–103 of this subtitle shall report to the Department of General Services in accordance with paragraphs (2) and (3) of this subsection.</text> </level> <level label="2"> <text>For the preceding fiscal year, the report shall state the total number of full–time equivalents for individuals with disabilities who contributed to the work of the contracts.</text> </level> <level label="3"> <text>For the preceding fiscal year, Maryland Correctional Enterprises shall report the length of time between each order and delivery of supplies and services.</text> </level> </level> <level label="e"> <text>Within 60 days after receipt of all of the reports required under subsections (c) and (d) of this section, the Department of General Services shall submit a summary of the information to:</text> <level label="1"> <text>the Board of Public Works; and</text> </level> <level label="2"> <text>in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment, the House Health and Government Operations Committee, and the Legislative Policy Committee.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-201" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Disabled veteran” means a veteran who has been certified by the U.S. Department of Veterans Affairs as having a service–connected disability regardless of the disability rating.</text> </level> <level label="c"> <text>“Disabled veteran–owned small business” means a small business that is at least 51% owned and controlled by one or more individuals who are disabled veterans.</text> </level> <level label="d"> <text>“Small business” means a business that meets the qualifications established under § 14–203 of this subtitle.</text> </level> <level label="e"> <text>“Small business preference” means a purchase request for which bids are invited from a list of qualified bidders that includes small businesses.</text> </level> <level label="f"> <text>“Veteran” means a veteran as defined in 38 U.S.C. § 101(2) who is domiciled in Maryland.</text> </level> <level label="g"> <text>“Veteran–owned small business” means a small business that is at least 51% owned and controlled by one or more individuals who are veterans.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-202" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <level label="a"> <text>This subtitle applies to procurement of supplies, services, and construction related services by any unit or agency of the Executive Branch of State government.</text> </level> <level label="b"> <text>For procurements in connection with the construction of a State correctional facility, the Department of Public Safety and Correctional Services shall:</text> <level label="1"> <text>apply the percentage price preferences established by the Department of General Services under this subtitle; and</text> </level> <level label="2"> <text>follow the same procedures established by the Department of General Services to comply with this subtitle.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-203" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <level label="a"> <text>By regulation, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall specify the criteria that a business must meet to qualify as a small business.</text> </level> <level label="b"> <level label="1"> <text>The criteria for qualification as a small business may vary among industries to reflect their particular characteristics.</text> </level> <level label="2"> <text>Regulations adopted under this section shall include, for each class of business, the maximum number of employees a business may have to qualify as a small business.</text> </level> </level> <level label="c"> <text>The regulations adopted under subsection (a) of this section shall require the qualification of a business as a small business for the exclusive purpose of pursuing out–of–state contracts, if the business has:</text> <level label="1"> <text>250 or fewer employees; or</text> </level> <level label="2"> <text>average annual gross receipts of $10,000,000 or less averaged over its most recently completed 3 fiscal years.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-204" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <text>The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish procedures for:</text> <level label="1"> <text>compiling and maintaining a comprehensive bidder’s list of small businesses;</text> </level> <level label="2"> <text>locating potential sources for various construction related services, supplies, and services and affirmatively seeking to locate potential minority business enterprise sources for those construction related services, supplies, and services;</text> </level> <level label="3"> <text>helping small businesses to comply with the procedures for bidding on procurement contracts;</text> </level> <level label="4"> <text>examining requests for construction related services, supplies, and services to determine when an invitation for bids may be designated for the Small Business Preference Program;</text> </level> <level label="5"> <text>bidding for a procurement contract designated for a small business preference;</text> </level> <level label="6"> <text>simplifying procurement specifications and terms, to increase the opportunities for small business participation;</text> </level> <level label="7"> <text>investigating the responsibility of bidders on small business preferences; and</text> </level> <level label="8"> <text>explaining to a small business the reason for which its bid for a small business preference was rejected.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-205" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <text>The Department of Commerce shall help the Special Secretary for the Office of Small, Minority, and Women Business Affairs in establishing procedures to carry out § 14–204(1) and (2) of this subtitle.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-206" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <level label="a"> <text>In this section, “percentage preference” means the percent of the lowest responsive bid submitted by a responsible bidder who is not a small business by which a responsive bid by a small business may:</text> <level label="1"> <text>exceed the lowest bid; and</text> </level> <level label="2"> <text>be awarded a procurement contract under this subtitle.</text> </level> </level> <level label="b"> <text>Subject to the approval of the Board, each unit:</text> <level label="1"> <text>shall establish a percentage preference, not to exceed 8%, for each industry as follows:</text> <level label="i"> <text>a base percentage preference not to exceed 5% for all small businesses; and</text> </level> <level label="ii"> <text>two additional preferences to the percentage preference set forth in item (i) of this paragraph as follows:</text> <level label="1"> <text>2% for veteran–owned small businesses; and</text> </level> <level label="2"> <text>3% for disabled veteran–owned small businesses; and</text> </level> </level> </level> <level label="2"> <text>may vary the percentage preference determined in item (1)(i) of this subsection among industries to account for their particular characteristics.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-207" title_number="14" title_name="Preferences" subtitle_number="2" subtitle_name="Small Business Preference Program"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>A unit shall award a procurement contract designated for a small business preference to the small business that:</text> <level label="1"> <text>is a responsible bidder; and</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-301" effective_note="EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Certification” means the determination that a legal entity is a minority business enterprise for the purposes of this subtitle.</text> </level> <level label="c"> <text>“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.</text> </level> <level label="d"> <text>“Certified minority business enterprise” means a minority business enterprise that holds a certification.</text> </level> <level label="e"> <text>“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.</text> </level> <level label="e–1"> <text>“Industry type” means the following procurement categories:</text> <level label="1"> <text>construction;</text> </level> <level label="2"> <text>architectural and engineering services and other construction–related professional services;</text> </level> <level label="3"> <text>maintenance;</text> </level> <level label="4"> <text>information technology;</text> </level> <level label="5"> <text>services;</text> </level> <level label="6"> <text>goods, supplies, and equipment; and</text> </level> <level label="7"> <text>real property title insurance services, including commercial real property title insurance services.</text> </level> </level> <level label="f"> <text>“Minority business enterprise” means any legal entity, except a joint venture, that is:</text> <level label="1"> <text>organized to engage in commercial transactions;</text> </level> <level label="2"> <text>at least 51% owned and controlled by 1 or more individuals who are socially and economically disadvantaged; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="g"> <text>“Minority business enterprise participation schedule” means a schedule included in the submission of a bid or offer that identifies:</text> <level label="1"> <text>the certified minority business enterprises that a bidder or offeror agrees to use in the performance of the contract; and</text> </level> <level label="2"> <text>the percentage of contract value attributed to each certified minority business enterprise.</text> </level> </level> <level label="h"> <text>“Nonprofit entity” means a corporation that:</text> <level label="1"> <text>is incorporated in the State or otherwise qualified to do business in the State;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>is organized to promote the interests of physically or mentally disabled individuals.</text> </level> </level> <level label="i"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>“Personal net worth” includes the individual’s share of assets held jointly or as community property with the individual’s spouse.</text> </level> <level label="3"> <text>“Personal net worth” does not include:</text> <level label="i"> <text>the individual’s ownership interest in the applicant or a certified minority business enterprise;</text> </level> <level label="ii"> <text>the individual’s equity in his or her primary place of residence; or</text> </level> <level label="iii"> <text>up to $500,000 of the cash value of any qualified retirement savings plans or individual retirement accounts.</text> </level> </level> </level> <level label="j"> <text>“Race–neutral measure” means a method that is or can be used to assist all small businesses.</text> </level> <level label="k"> <level label="1"> <text>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:</text> <level label="i"> <text>in any of the following minority groups:</text> <level label="1"> <text>African American – an individual having origins in any of the black racial groups of Africa;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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;</text> </level> <level label="5"> <text>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</text> </level> <level label="6"> <text>women – a woman, regardless of race or ethnicity; or</text> </level> </level> <level label="ii"> <text>otherwise found by the certification agency to be a socially and economically disadvantaged individual.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="l"> <text>“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.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-301.1" effective_note="EFFECTIVE UNTIL JULY 1, 2031 PER CHAPTER 82 OF 2026" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <text>The General Assembly finds the following:</text> <level label="1"> <text>the State of Maryland seeks to ensure that all citizens of the State have equal access to business formation and business growth opportunities;</text> </level> <level label="2"> <text>the elimination of discrimination against minority– and women–owned businesses is of paramount importance to the future welfare of all Marylanders and the State;</text> </level> <level label="3"> <text>the General Assembly has accepted and carefully reviewed the disparity study entitled “State of Maryland 2025 Minority Business Enterprise Disparity Study” (the Study) and finds that the Study provides a strong basis in evidence demonstrating persistent intentional discrimination against minority– and women–owned businesses;</text> </level> <level label="4"> <text>based on the review by the General Assembly of the Study, the General Assembly finds that:</text> <level label="i"> <text>based on rigorous econometrics analyses that control for key factors, 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;</text> </level> <level label="ii"> <text>a thorough examination of the literature reveals severe and persistent intentional disparities and discrimination in access to private business capital markets that in some cases have been caused by government policies;</text> </level> <level label="iii"> <text>the State would become a passive participant in private sector racial and gender discrimination if it ceased or curtailed remedial efforts of the State, including the operation of the Minority Business Enterprise Program;</text> </level> <level label="iv"> <text>there are substantial, adverse, and statistically significant disparities that are consistent with discrimination against minorities and nonminority women in State procurement;</text> </level> <level label="v"> <text>these substantial, adverse, and statistically significant disparities are consistent with discrimination against all minority groups and for nonminority women in most major industry categories in State procurement;</text> </level> <level label="vi"> <text>there is significant evidence that discrimination in the private sector has depressed firm formation and firm growth among minority and nonminority women entrepreneurs, decreasing the availability of minority– and women–owned firms for public and private contracting; and</text> </level> <level label="vii"> <text>there is powerful and persuasive evidence, both statistical and qualitative, of intentional discrimination, including discrimination by government actors, against minority and nonminority women business owners in both the public and private sectors;</text> </level> </level> <level label="5"> <text>as a result of ongoing discrimination and the present–day effects of past discrimination, minority– and women–owned businesses combined continue to be significantly underutilized relative to the availability of minority– and women–owned businesses to perform work in the overwhelming majority of the procurement categories in which the State does business;</text> </level> <level label="6"> <text>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;</text> </level> <level label="7"> <text>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 in which these efforts have been employed;</text> </level> <level label="8"> <text>notwithstanding the levels of participation achieved when race–conscious measures are used, there is concern that, in the absence of Minority Business Enterprise participation goals for State procurement, there would be a substantial decrease in the overall utilization of minority– and women–owned businesses;</text> </level> <level label="9"> <text>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;</text> </level> <level label="10"> <text>this subtitle continues and enhances efforts to ensure that the State limits the burden on nonminority, male–owned businesses as much as possible by ensuring that all goals are developed using the best available data, waivers are available whenever contractors make good faith efforts, and that nonminority men may qualify for certification if nonminority men are socially and economically disadvantaged;</text> </level> <level label="11"> <text>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</text> </level> <level label="12"> <text>State efforts to reduce discrimination support the development of competitively viable minority– and women–owned business enterprises and create jobs for all citizens of Maryland, help grow the Maryland economy, and foster competition that will reduce the cost of goods and services procured by the State.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-302" effective_note="EFFECTIVE UNTIL JULY 1, 2031 PER CHAPTER 82 OF 2026" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <level label="a"> <level label="1"> <level label="i"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> </level> <level label="A"> <text>a procurement contract awarded in accordance with Subtitle 1 of this title;</text> </level> <level label="B"> <text>a procurement contract awarded to a nonprofit entity in accordance with requirements mandated by State or federal law; and</text> </level> <level label="C"> <text>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.</text> </level> </level> <level label="ii"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>During any year in which there is a delay in establishing the overall goal, the previous year’s goal will apply.</text> </level> </level> <level label="iii"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>During any year in which there is a delay in establishing the subgoal guidelines, the previous year’s subgoal guidelines will apply.</text> </level> </level> <level label="iv"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> </level> <level label="A"> <text>the availability of minority– and women–owned businesses;</text> </level> <level label="B"> <text>the effects of discrimination on opportunities for minority– and women–owned businesses; and</text> </level> <level label="C"> <text>the State’s operation of the Minority Business Enterprise Program.</text> </level> </level> <level label="v"> <text>In establishing overall goals, the factors to be considered shall include:</text> <level label="1"> <text>the relative availability of minority– and women–owned businesses to participate in State procurement as demonstrated by the State’s most recent disparity study;</text> </level> <level label="2"> <text>past participation of minority business enterprises in State procurement, except for procurement related to leases of real property; and</text> </level> <level label="3"> <text>other factors that contribute to constitutional goal setting.</text> </level> </level> <level label="vi"> <text>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.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>For a competitive proof of concept procurement conducted under § 13–116 of this article, the minority business enterprise participation percentage goal, if any, shall be established at a phase specified in the solicitation documents.</text> </level> </level> <level label="3"> <text>Each unit shall:</text> <level label="i"> <text>consider the practical severability of all contracts and, in accordance with § 11–201 of this article, may not bundle contracts;</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>the potential subcontract opportunities available in the prime procurement contract;</text> </level> <level label="2"> <text>the availability of certified minority business enterprises to respond competitively to the potential subcontract opportunities;</text> </level> <level label="3"> <text>the contract goal guidelines established under paragraph (2) of this subsection;</text> </level> <level label="4"> <text>the subgoal guidelines established under paragraph (1)(iii) of this subsection; and</text> </level> <level label="5"> <text>other factors that contribute to constitutional goal setting;</text> </level> </level> <level label="iii"> <text>monitor and collect data with respect to prime contractor compliance with contract goals; and</text> </level> <level label="iv"> <text>institute corrective action when prime contractors do not make good–faith efforts to comply with contract goals.</text> </level> </level> <level label="4"> <text>Units may not use quotas or any project goal–setting process that:</text> <level label="i"> <text>solely relies on the State’s overall numerical goal, or any other jurisdiction’s overall numerical goal; or</text> </level> <level label="ii"> <text>fails to incorporate the analysis outlined in paragraph (3)(ii) of this subsection.</text> </level> </level> <level label="5"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="6"> <text>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.</text> </level> <level label="7"> <text>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:</text> <level label="i"> <text>identify specific work categories appropriate for subcontracting;</text> </level> <level label="ii"> <text>at least 10 days before bid opening, solicit minority business enterprises, through written notice that:</text> <level label="1"> <text>describes the categories of work under item (i) of this paragraph; and</text> </level> <level label="2"> <text>provides information regarding the type of work being solicited and specific instructions on how to submit a bid;</text> </level> </level> <level label="iii"> <text>attempt to make personal contact with the firms in item (ii) of this paragraph;</text> </level> <level label="iv"> <text>offer to provide reasonable assistance to minority business enterprises to fulfill bonding requirements or to obtain a waiver of those requirements;</text> </level> <level label="v"> <text>in order to publicize contracting opportunities to minority business enterprises, attend prebid or preproposal meetings or other meetings scheduled by the unit; and</text> </level> <level label="vi"> <text>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.</text> </level> </level> <level label="8"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, a unit may consider modifying the minority business enterprise participation goal on a procurement contract:</text> <level label="1"> <text>at any time prior to contract execution; or</text> </level> <level label="2"> <text>after contract execution, when determined to be in the best interest of the State.</text> </level> </level> <level label="ii"> <text>Before a unit may consider modifying a minority business enterprise participation goal under subparagraph (i) of this paragraph, the unit shall:</text> <level label="1"> <text>make a determination that there has been a change in the factors established under paragraph (3) of this subsection;</text> </level> <level label="2"> <text>use the factors established under paragraph (3) of this subsection to determine the percentage modification to the minority business enterprise participation goal; and</text> </level> <level label="3"> <text>obtain the agreement of the contractor, including any reasonable pricing considerations.</text> </level> </level> </level> <level label="9"> <text>The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>notwithstanding § 12–101 of this article, adopt regulations setting forth the procedures established in accordance with this paragraph.</text> </level> </level> <level label="10"> <level label="i"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>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.</text> </level> <level label="iv"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The head of the unit shall:</text> </level> <level label="A"> <text>keep one copy of the waiver determination and the reasons for the determination; and</text> </level> <level label="B"> <text>forward one copy of the waiver determination to the Office of Small, Minority, and Women Business Affairs.</text> </level> </level> <level label="v"> <text>On or before July 31 of each year, each unit shall submit directly to the Board of Public Works and the Office of Small, Minority, and Women Business Affairs an annual report of waivers requested and waivers granted under this paragraph.</text> </level> <level label="vi"> <text>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:</text> <level label="1"> <text>the contract titles, numbers, and dates;</text> </level> <level label="2"> <text>the number of waiver requests received;</text> </level> <level label="3"> <text>the number of waiver requests granted; and</text> </level> <level label="4"> <text>any other information specifically requested by the Board.</text> </level> </level> </level> <level label="11"> <level label="i"> <text>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.</text> </level> <level label="ii"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A determination under subsubparagraph 1 of this subparagraph shall be made in consultation with the unit’s minority business enterprise liaison.</text> </level> <level label="3"> <text>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.</text> </level> </level> </level> <level label="12"> <level label="i"> <text>This paragraph applies after execution of a contract with an expected degree of minority business enterprise participation.</text> </level> <level label="ii"> <text>The minority business enterprise participation schedule, including any amendment, shall be attached to and made a part of the executed contract.</text> </level> <level label="iii"> <level label="1"> <level label="A"> <text>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.</text> </level> </level> <level label="B"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The unit shall send a copy of the written consent obtained under subsubparagraph 2 of this subparagraph to the Office of Small, Minority, and Women Business Affairs.</text> </level> </level> <level label="iv"> <text>A minority business enterprise participation schedule may be amended to modify minority business enterprise participation after the date of contract execution only if:</text> <level label="1"> <text>it is in the best interest of the State;</text> </level> <level label="2"> <text>it is approved by the head of the unit; and</text> </level> <level label="3"> <text>the contract is amended.</text> </level> </level> </level> <level label="13"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the certified minority business enterprise’s participation under the contract shall continue to be counted toward the program and contract goals.</text> </level> </level> <level label="14"> <level label="i"> <text>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.</text> </level> <level label="ii"> <level label="1"> <text>The nonprofit entity’s participation may not be counted toward achieving the minority business enterprise participation goals in this subsection.</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> <level label="15"> <level label="i"> <text>For purposes of this paragraph and paragraph (16) of this subsection, “regular dealer”:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>does not include a packager, a broker, a manufacturer’s representative, or any other person that arranges or expedites transactions.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="16"> <text>With respect to materials or supplies purchased from a certified minority business enterprise that is neither a manufacturer nor a regular dealer:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>a unit may not apply any portion of the costs of the materials and supplies toward minority business enterprise goals.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The determination under this subsection shall be included with the report required under § 14–305 of this subtitle.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-303" effective_note="EFFECTIVE UNTIL JULY 1, 2031 PER CHAPTER 82 OF 2026" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <level label="a"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>These regulations shall include:</text> <level label="1"> <text>provisions:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>has obtained certification under the federal Disadvantaged Business Enterprise Program; and</text> </level> <level label="2"> <text>meets the eligibility requirements of the Minority Business Enterprise Program;</text> </level> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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;</text> </level> </level> <level label="2"> <text>a requirement that the solicitation document accompanying each solicitation:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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;</text> </level> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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;</text> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>a minority business enterprise subcontractor was named on the participation schedule; or</text> </level> <level label="2"> <text>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;</text> </level> </level> </level> <level label="7"> <text>a requirement that the unit provide a current list of certified minority business enterprises to each prospective contractor;</text> </level> <level label="8"> <text>provisions to ensure the uniformity of requests for bids on subcontracts;</text> </level> <level label="9"> <text>provisions relating to the timing of requests for bids on subcontracts and of submission of bids on subcontracts;</text> </level> <level label="10"> <text>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;</text> </level> <level label="11"> <text>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;</text> </level> <level label="12"> <text>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;</text> </level> <level label="13"> <text>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 Office of Small, Minority, and Women Business Affairs under a contract governed by this subtitle;</text> </level> <level label="14"> <text>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;</text> </level> <level label="15"> <text>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;</text> </level> <level label="16"> <text>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;</text> </level> <level label="17"> <text>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;</text> </level> <level label="18"> <text>provisions promoting and providing for the counting and reporting of certified minority business enterprises as prime contractors;</text> </level> <level label="19"> <text>provisions establishing standards to require a minority business enterprise to perform a commercially useful function on a contract;</text> </level> <level label="20"> <text>a requirement that each unit work with the 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;</text> </level> <level label="21"> <text>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</text> </level> <level label="22"> <text>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.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-304" effective_note="EFFECTIVE UNTIL JULY 1, 2031 PER CHAPTER 82 OF 2026" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <level label="a"> <level label="1"> <text>The certification agency shall develop and maintain a directory of all certified minority business enterprises.</text> </level> <level label="2"> <text>The directory shall be accessible to the public through the Internet.</text> </level> <level label="3"> <text>For each minority business enterprise included in the directory, the certification agency shall include the following information:</text> <level label="i"> <text>all contract information available to the certification agency for the minority business enterprise;</text> </level> <level label="ii"> <text>the certification number and minority status of the minority business enterprise;</text> </level> <level label="iii"> <text>contact information for up to three professional references for the minority business enterprise; and</text> </level> <level label="iv"> <text>any other information the certification agency considers necessary or appropriate to encourage participation in the procurement process by minority business enterprises.</text> </level> </level> <level label="4"> <text>The certification agency shall:</text> <level label="i"> <text>update the directory at least monthly;</text> </level> <level label="ii"> <text>identify as recently certified in the directory each minority business enterprise that has obtained certification during the calendar year; and</text> </level> <level label="iii"> <text>include in the directory a list of all minority business enterprises that have become ineligible to participate in the Minority Business Enterprise Program because:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>the minority business enterprise no longer meets the standards developed under § 14–303(b)(13) of this subtitle.</text> </level> </level> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>subpoena witnesses;</text> </level> <level label="2"> <text>administer oaths; and</text> </level> <level label="3"> <text>compel the production of records, books, papers, and other documents.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-305" effective_note="EFFECTIVE UNTIL JULY 1, 2031 PER CHAPTER 82 OF 2026" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <level label="a"> <level label="1"> <text>Within 60 days after the end of the fiscal year, each unit shall report to the Office of Small, Minority, and Women Business Affairs and the certification agency.</text> </level> <level label="2"> <text>A report under this subsection shall for the preceding fiscal year:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>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:</text> <level label="1"> <text>the names of each prime contractor and each subcontractor that participated in the contract;</text> </level> <level label="2"> <text>the type of good or service provided by the contract;</text> </level> <level label="3"> <text>the minority business enterprise participation goal for the contract;</text> </level> <level label="4"> <text>whether a waiver was granted for the minority business enterprise participation goal;</text> </level> <level label="5"> <text>the total dollar value of payments made to each prime contractor and by each prime contractor to each subcontractor during the contract term;</text> </level> <level label="6"> <text>whether each subcontractor is a certified minority business enterprise; and</text> </level> <level label="7"> <text>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</text> </level> </level> <level label="vi"> <text>contain other such information as required by the Office of Small, Minority, and Women Business Affairs and the certification agency and approved by the Board.</text> </level> </level> <level label="3"> <text>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:</text> <level label="i"> <text>architectural services; and</text> </level> <level label="ii"> <text>engineering services.</text> </level> </level> <level label="4"> <text>A report under this subsection shall be in a form prescribed by the Office of Small, Minority, and Women Business Affairs and the certification agency and approved by the Board.</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>On or before the 5th day of a regular legislative session each year, the 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.</text> </level> <level label="2"> <text>If applicable, the report submitted under paragraph (1) of this subsection shall include minority business enterprise participation data for each unit by industry type.</text> </level> <level label="3"> <text>This report may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.</text> </level> <level label="4"> <level label="i"> <text>The Office of Small, Minority, and Women Business Affairs shall include in the report submitted under paragraph (1) of this subsection an attestation that all units required to report under subsection (a) of this section are represented in the report.</text> </level> <level label="ii"> <text>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 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.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except for the quarter in which a unit is submitting an annual report under this section, each unit shall report quarterly to the Office of Small, Minority, and Women Business Affairs:</text> <level label="i"> <text>minority business enterprise participation data under subsection (a)(2)(i) of this section;</text> </level> <level label="ii"> <text>Minority Business Enterprise Program compliance assessments under subsection (a)(2)(v) of this section; and</text> </level> <level label="iii"> <text>any other information requested by the Office of Small, Minority, and Women Business Affairs related to contracts governed by this subtitle.</text> </level> </level> <level label="2"> <text>The report required under this subsection may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.</text> </level> </level> <level label="d"> <level label="1"> <text>In this subsection, “mitigating factors” includes documented nonperformance or unavailability of a minority business enterprise designated for a contract.</text> </level> <level label="2"> <text>The 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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>The 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.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-307" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <text>The Legislative Policy Committee shall direct at least 1 standing committee of the House of Delegates and at least 1 standing committee of the State Senate to review annually the performance of units as reported under § 14–305 of this subtitle.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-308" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <level label="a"> <level label="1"> <text>A person may not:</text> <level label="i"> <text>fraudulently obtain, hold, or attempt to obtain or hold certification;</text> </level> <level label="ii"> <text>aid another person in performing an act prohibited under item (i) of this paragraph;</text> </level> <level label="iii"> <text>willfully obstruct, impede, or attempt to obstruct or impede a State official or employee investigating the qualifications of a business entity that has requested certification;</text> </level> <level label="iv"> <text>fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain, public money to which the person is not entitled under this subtitle; or</text> </level> <level label="v"> <text>in any minority business enterprise matter administered under this subtitle:</text> <level label="1"> <text>willfully falsify, conceal, or cover up a material fact by any scheme or device;</text> </level> <level label="2"> <text>make a false or fraudulent statement or representation; or</text> </level> <level label="3"> <text>use a false writing or document that the person knows to contain a false or fraudulent statement or entry.</text> </level> </level> </level> <level label="2"> <text>Except as otherwise provided by law, a contractor may not identify a certified minority business enterprise in a bid or proposal and:</text> <level label="i"> <text>fail to request, receive, or otherwise obtain authorization from the certified minority business enterprise to identify the certified minority business enterprise in its bid or proposal;</text> </level> <level label="ii"> <text>fail to notify the certified minority business enterprise before execution of the contract of its inclusion of the bid or proposal;</text> </level> <level label="iii"> <text>fail to use the certified minority business enterprise in the performance of the contract; or</text> </level> <level label="iv"> <text>pay the certified minority business enterprise solely for the use of its name in the bid or proposal.</text> </level> </level> <level label="3"> <text>A person who violates any provision of this subsection is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 5 years or both.</text> </level> </level> <level label="b"> <level label="1"> <text>A person may not make a false statement about whether an entity has certification.</text> </level> <level label="2"> <text>A person who violates this subsection is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $2,500 or imprisonment not exceeding 1 year or both.</text> </level> </level> <level label="c"> <text>The Office of Small, Minority, and Women Business Affairs shall make available a fraud hotline for reporting violations of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-309" title_number="14" title_name="Preferences" subtitle_number="3" subtitle_name="Minority Business Participation"> <text>The provisions of §§ 14–301 through 14–305 of this subtitle, and any regulations adopted under those sections, shall be of no effect and may not be enforced after July 1, 2031.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-401" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Preference” includes:</text> <level label="i"> <text>a percentage preference;</text> </level> <level label="ii"> <text>an employee residency requirement; or</text> </level> <level label="iii"> <text>any other provision that favors a resident over a nonresident.</text> </level> </level> <level label="3"> <text>“Resident bidder” means a bidder whose principal office is located in the State.</text> </level> <level label="4"> <text>“Resident offeror” means an offeror whose principal office is located in the State.</text> </level> <level label="5"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, “services” has the meaning stated in § 11–101 of this article.</text> </level> <level label="ii"> <text>Notwithstanding § 11–101 of this article, “services” includes construction related services and energy performance contract services.</text> </level> </level> </level> <level label="b"> <text>When a unit uses competitive sealed bidding to award a procurement contract, the unit may give a preference to the resident bidder who submits the lowest responsive bid from a resident bidder if:</text> <level label="1"> <text>the resident bidder is a responsible bidder;</text> </level> <level label="2"> <text>a responsible bidder whose principal office or operation is in another state submits the lowest responsive bid;</text> </level> <level label="3"> <text>the state in which the nonresident bidder’s principal office is located or the state in which the nonresident bidder has its principal operation through which it would provide supplies or services gives a preference to its residents; and</text> </level> <level label="4"> <text>a preference does not conflict with a federal law or grant affecting the procurement contract.</text> </level> </level> <level label="c"> <text>When a unit uses competitive sealed proposals to award a procurement contract, the unit may give a preference to resident offerors if:</text> <level label="1"> <text>a responsible offeror whose principal office or operation is in another state submits a proposal;</text> </level> <level label="2"> <text>the state in which the nonresident offeror’s principal office is located or the state in which the nonresident offeror has its principal operation through which it would provide the subject of the contract gives a preference to its residents; and</text> </level> <level label="3"> <text>the preference does not conflict with a federal law or grant affecting the procurement contract.</text> </level> </level> <level label="d"> <level label="1"> <text>At the request of the unit, a nonresident bidder or nonresident offeror submitting a proposal for a State project shall provide a copy of the current statute, resolution, policy, procedure, or executive order that pertains to the treatment of nonresident bidders or nonresident offerors by:</text> <level label="i"> <text>the state in which the nonresident bidder’s or nonresident offeror’s principal office is located; and</text> </level> <level label="ii"> <text>the state in which the nonresident bidder or nonresident offeror has its principal operation through which it would provide supplies or services.</text> </level> </level> <level label="2"> <text>A unit may give a preference under this section that is identical to any of the following preferences, or any combination of them:</text> <level label="i"> <text>the preference that the state in which the nonresident bidder’s or nonresident offeror’s principal office is located gives to its residents; or</text> </level> <level label="ii"> <text>the preference that the state in which the nonresident bidder or nonresident offeror has its principal operation through which it would provide supplies or services gives to its residents.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-401.1" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Nonresident firm” means a business entity that:</text> <level label="i"> <text>has one office that:</text> <level label="1"> <text>is a principal office for the entity; and</text> </level> <level label="2"> <text>is not located in the State; or</text> </level> </level> <level label="ii"> <text>for an entity that has offices in multiple states, has not had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.</text> </level> </level> <level label="3"> <text>“Preference” includes:</text> <level label="i"> <text>a percentage preference;</text> </level> <level label="ii"> <text>an employee residency requirement; or</text> </level> <level label="iii"> <text>any other provision that favors an offeror from one state to the disadvantage of an offeror from another state.</text> </level> </level> <level label="4"> <level label="i"> <text>“Principal office” means a primary place of business that is staffed on a regular basis to provide the services that are requested by a unit in a request for proposals.</text> </level> <level label="ii"> <text>“Principal office” does not include a satellite office or an office that is minimally staffed and is not open on a regular basis to provide the services that are requested by a unit in a request for proposals.</text> </level> </level> <level label="5"> <text>“Request for proposals” means a request for architectural services or engineering services that is issued in accordance with § 13–112 of this article.</text> </level> <level label="6"> <level label="i"> <text>“Resident firm” means a business entity that:</text> <level label="1"> <text>is licensed or otherwise authorized to provide architectural or engineering services in the State; and</text> </level> <level label="2"> <level label="A"> <text>for an entity that has one office, the office is located in the State; or</text> </level> </level> <level label="B"> <text>for an entity that has offices in multiple states, has had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.</text> </level> </level> <level label="ii"> <text>“Resident firm” includes a joint venture that:</text> <level label="1"> <text>was entered into before the date of the request for proposals for which the joint venture submits a proposal; and</text> </level> <level label="2"> <text>includes one party that:</text> </level> <level label="A"> <text>holds at least a 51% interest in the joint venture; and</text> </level> <level label="B"> <text>meets the requirements under subparagraph (i) of this paragraph.</text> </level> </level> </level> </level> <level label="b"> <text>Subject to subsection (d) of this section, a unit shall apply a preference to a proposal from a resident firm if:</text> <level label="1"> <level label="i"> <text>a nonresident firm is:</text> <level label="1"> <text>a responsible offeror; and</text> </level> <level label="2"> <text>determined to be the most qualified person to submit a proposal in accordance with § 13–112 of this article; and</text> </level> </level> <level label="ii"> <text>the state in which the principal office of the nonresident firm is located has a preference that favors an offeror from that state to the disadvantage of an offeror from this State;</text> </level> </level> <level label="2"> <text>a resident firm:</text> <level label="i"> <text>is a responsible offeror; and</text> </level> <level label="ii"> <text>at the same time that it submits the proposal for which the preference would apply, certifies that it meets the requirements for a resident firm; and</text> </level> </level> <level label="3"> <text>the preference:</text> <level label="i"> <text>is the same as the preference referenced in item (1)(ii) of this subsection; and</text> </level> <level label="ii"> <text>does not conflict with a federal law or grant affecting the procurement contract.</text> </level> </level> </level> <level label="c"> <text>At the request of a unit, a nonresident firm shall provide the following documentation for the state in which the principal office of the nonresident firm is located:</text> <level label="1"> <text>a copy of the current statute, resolution, policy, procedure, or executive order that establishes a preference that favors an offeror from that state to the disadvantage of an offeror from this State; or</text> </level> <level label="2"> <text>a certification that the other state does not have a preference that favors an offeror from that state to the disadvantage of an offeror from this State.</text> </level> </level> <level label="d"> <level label="1"> <text>If a resident firm qualifies for a preference established under this section and for another preference established under this Division II, the unit:</text> <level label="i"> <text>may not apply more than one preference to the proposal from the resident firm; and</text> </level> <level label="ii"> <text>shall apply the preference to the proposal from the resident firm that is most advantageous to the resident firm.</text> </level> </level> <level label="2"> <text>If, when making a determination of qualification under § 13–112 of this article, a unit determines that a proposal from a resident firm and a proposal from a nonresident firm are equally qualified, the unit may apply a preference to the proposal from the resident firm.</text> </level> </level> <level label="e"> <text>A unit may not apply a preference to a proposal submitted by a resident firm if the resident firm does not submit the certification required under subsection (b)(2)(ii) of this section at the same time that it submits the proposal.</text> </level> <level label="f"> <text>The Board shall:</text> <level label="1"> <text>post and maintain a list of all states with a preference that favors an offeror from that state to the disadvantage of an offeror from this State; and</text> </level> <level label="2"> <text>adopt regulations to implement this section.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-402" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>In this section, “recycled paper” means a paper product at least 80% of the total weight of which consists of the product of a manufacturing process that:</text> <level label="1"> <text>has converted a raw material into a valuable commodity; and</text> </level> <level label="2"> <text>includes a total gross content of post consumer waste of at least 80%.</text> </level> </level> <level label="b"> <text>To the extent practicable, in procuring paper or paper products under Title 4, Subtitle 3, Part II of this article, the Secretary of General Services shall buy or approve for purchase only supplies that are produced from recycled paper.</text> </level> <level label="c"> <text>Of the total volume of paper that the Secretary of General Services buys, at least 90% shall be recycled paper.</text> </level> <level label="d"> <text>If recycled paper that meets the definition set forth in subsection (a) of this section is unavailable, then for purposes of complying with the requirements of this section, the Department of General Services may purchase recycled paper products that at a minimum conform to the definitions set forth in the Environmental Protection Agency guideline for federal procurement of paper and paper products containing recovered materials (40 C.F.R., Part 247).</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-403" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>To the extent practicable, each unit of the State government shall buy or lease for use by the State government supplies that are the quietest available supplies.</text> </level> <level label="b"> <text>Supplies that are certified as low-noise-emission products under the federal Noise Control Act of 1972 are considered to meet the requirement of subsection (a) of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-404" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>In this section, “coal products” includes coal in both its synthetic and conventional forms.</text> </level> <level label="b"> <text>This section does not apply to a building or facility for which:</text> <level label="1"> <text>the Department of the Environment determines that the use of coal products violates a provision of the Environment Article or a regulation that the Department adopts under that article; or</text> </level> <level label="2"> <text>the Department of General Services or another appropriate unit determines that the use of coal products would not be cost effective.</text> </level> </level> <level label="c"> <text>The design of a heating system in a building or facility constructed after July 1, 1986 may not preclude the use of Maryland coal if:</text> <level label="1"> <text>the State provides at least 50% of the money used for construction of the building or facility; and</text> </level> <level label="2"> <text>a determination is made that coal products will be used to fuel the heating system.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-405" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Environmentally preferable product or service” means a product or service that throughout the full life cycle of the product or service:</text> <level label="i"> <text>is energy efficient, water efficient, biobased, nonozone depleting, made with recycled content, or nontoxic; or</text> </level> <level label="ii"> <text>has other attributes recognized as environmentally preferable by the Maryland Green Purchasing Committee.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>To encourage the maximum purchase of environmentally preferable products and services, the Maryland Green Purchasing Committee established under § 14–410 of this subtitle shall establish environmentally preferable specifications to be adopted by State agencies.</text> </level> <level label="2"> <text>The environmentally preferable specifications shall be published and maintained online by the Maryland Green Purchasing Committee for use by State agencies.</text> </level> </level> <level label="c"> <text>Each State unit shall review annually the procurement specifications currently used by the unit and, to the extent practicable:</text> <level label="1"> <text>adopt the environmentally preferable specifications published by the Maryland Green Purchasing Committee; and</text> </level> <level label="2"> <text>revise the unit’s procurement specifications in accordance with § 14–410 of this subtitle.</text> </level> </level> <level label="d"> <text>On or before October 1 of each year, each unit shall report to the Department of General Services on the unit’s procurement of environmentally preferable products and services as a percentage of the unit’s gross purchases during the preceding fiscal year, including the types and quantities of products and services procured.</text> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this section is broadly applicable to all procurements by the State if the quality of the product or service is consistent with the requirements of the bid specifications.</text> </level> <level label="2"> <text>Only to the extent necessary to prevent the denial of federal money or eliminate the inconsistency with federal law, this section does not apply to a procurement by the State if the procurement officer determines that compliance with this section would:</text> <level label="i"> <text>cause denial of federal money; or</text> </level> <level label="ii"> <text>be inconsistent with the requirements of federal law.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-406" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>In this section, “preference” includes:</text> <level label="1"> <text>a percentage price preference; and</text> </level> <level label="2"> <text>any other provision that favors products or equipment that are mercury free or that contain the least amount of mercury necessary to meet product or equipment performance standards over other products.</text> </level> </level> <level label="b"> <text>Beginning October 1, 2003, all State agencies shall give preference to products and equipment that are mercury free or contain the least amount of mercury necessary to meet product or equipment performance standards.</text> </level> <level label="c"> <text>This section does not apply to a contract or procurement agreement in effect on October 1, 2001.</text> </level> <level label="d"> <text>The Board may adopt regulations to implement this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-407" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Locally grown food” means food grown at a certified local farm defined in § 14–701 of this title.</text> </level> <level label="3"> <text>“Percentage price preference” means the percent by which a responsive bid from a responsible bidder whose product is a locally grown food may exceed the lowest responsive bid submitted by a responsible bidder whose product is not a locally grown food.</text> </level> </level> <level label="b"> <level label="1"> <text>The Board shall adopt regulations that require State schools and facilities to establish a percentage price preference, not to exceed 10%, for the purchase of locally grown food.</text> </level> <level label="2"> <text>Notwithstanding paragraph (1) of this subsection, the Board shall adopt regulations authorizing State schools and facilities to conduct an individual procurement that is limited to responses from certified local farms as defined in § 14–701 of this title.</text> </level> </level> <level label="c"> <text>A percentage price preference under this section may not be used in conjunction with any other percentage price preference established under this title.</text> </level> <level label="d"> <text>Each State school and facility shall review the procurement specifications currently used and, to the extent practicable, require the use of a percentage price preference in their purchase of locally grown food.</text> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this section is broadly applicable to all procurements by State schools and facilities if the locally grown food is consistent with the requirements of the bid specification.</text> </level> <level label="2"> <text>Only to the extent necessary to prevent the denial of federal money or eliminate the inconsistency with federal law, this section does not apply to a procurement by a State school or facility if it is determined that compliance with this section would:</text> <level label="i"> <text>cause denial of federal money; or</text> </level> <level label="ii"> <text>be inconsistent with the requirements of federal law.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-408" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>In this section, “biodiesel fuel” means:</text> <level label="1"> <text>a fuel, comprised of mono–alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, that is designated B100 and meets the requirements of ASTM D 6751 and its successors; or</text> </level> <level label="2"> <text>a blend of biodiesel fuel meeting ASTM D 6751 with petroleum–based diesel fuel, designated as BXX, where XX represents the volume percentage of biodiesel fuel in the blend.</text> </level> </level> <level label="b"> <text>In fiscal year 2008 and in each subsequent fiscal year, the State shall ensure that at least 50% of the vehicles using diesel fuel in the State vehicle fleet use a blend of fuel that is at least 5% biodiesel fuel or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive or approved under the EPA Renewable Fuels Standard 2 program.</text> </level> <level label="c"> <text>In fiscal year 2009 and in each subsequent fiscal year, the State shall ensure that at least 50% of the heavy equipment owned by the State using diesel fuel and at least 50% of the heating equipment in State buildings that uses normal or #2 heating oil use, subject to availability, a blend of fuel that is at least 5% biodiesel fuel or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive or approved under the EPA Renewable Fuels Standard 2 program.</text> </level> <level label="d"> <text>This section does not apply to any State vehicle, piece of heavy equipment, or heating equipment for which mechanical failure due to use of biodiesel fuel or other biofuel will void the manufacturer’s warranty for that vehicle, piece of heavy equipment, or heating equipment.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-409" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>In this section, “aggregate” means gravel, crushed stone, sand, and other similar materials.</text> </level> <level label="b"> <text>A State or local unit responsible for the maintenance of public lands in the State, to the maximum extent practicable, shall give consideration and preference to the use of compost in any land maintenance activity that is to be paid for with public funds.</text> </level> <level label="c"> <text>It is the goal of the Department of General Services to:</text> <level label="1"> <text>compost, to the extent practicable, all landscape waste on State property that is under its operation for use as fertilizer in landscaping activities; and</text> </level> <level label="2"> <text>increase the percentage of landscaped area fertilized by compost each year.</text> </level> </level> <level label="d"> <level label="1"> <text>In purchasing compost, mulch, or other soil amendments or aggregate, each unit of State government shall include in its procurement specifications the specifications published by the Maryland Green Purchasing Committee for compost, mulch, or other soil amendments or aggregate under paragraph (3) of this subsection.</text> </level> <level label="2"> <text>The requirements of paragraph (1) of this subsection apply if:</text> <level label="i"> <text>the products are competitively priced;</text> </level> <level label="ii"> <text>the quality of the products is satisfactory for the intended purposes; and</text> </level> <level label="iii"> <text>the products are readily available.</text> </level> </level> <level label="3"> <level label="i"> <text>The Maryland Green Purchasing Committee, established under § 14–410 of this subtitle, shall establish specifications for purchasing of compost, mulch, or other soil amendments or aggregate produced from municipal solid waste, food waste, dredged material, construction waste, yard waste, clean wood waste, or other recycled or organic materials.</text> </level> <level label="ii"> <text>The specifications established under subparagraph (i) of this paragraph shall be published and maintained online by the Maryland Green Purchasing Committee for use by State agencies.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-410" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Committee” means the Maryland Green Purchasing Committee.</text> </level> <level label="3"> <text>“Environmentally preferable purchasing” means the procurement or acquisition of goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods or services that serve the same purpose, based on:</text> <level label="i"> <text>the full life cycle of the product or service;</text> </level> <level label="ii"> <text>relevant international consensus standards; and</text> </level> <level label="iii"> <text>relevant factors including the raw materials, manufacturing, packaging, distribution, use, reuse, operation, maintenance, recycling, energy recovery, climate change, fossil fuel, ozone depletion, and disposal of the goods or services.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>There is a Maryland Green Purchasing Committee.</text> </level> <level label="2"> <text>The Committee shall consist of the following members:</text> <level label="i"> <text>the Secretary of General Services, or the Secretary’s designee;</text> </level> <level label="ii"> <text>the Secretary of Budget and Management, or the Secretary’s designee;</text> </level> <level label="iii"> <text>the Secretary of Natural Resources, or the Secretary’s designee;</text> </level> <level label="iv"> <text>the Secretary of the Environment, or the Secretary’s designee;</text> </level> <level label="v"> <text>the Secretary of Health, or the Secretary’s designee;</text> </level> <level label="vi"> <text>the Secretary of Transportation, or the Secretary’s designee;</text> </level> <level label="vii"> <text>the Secretary of Public Safety and Correctional Services, or the Secretary’s designee;</text> </level> <level label="viii"> <text>the Chancellor of the University System of Maryland, or the Chancellor’s designee;</text> </level> <level label="ix"> <text>the Secretary of Information Technology, or the Secretary’s designee;</text> </level> <level label="x"> <text>the Secretary of Education, or the Secretary’s designee; and</text> </level> <level label="xi"> <text>the State Treasurer, or the Treasurer’s designee.</text> </level> </level> <level label="3"> <text>The Secretary of General Services, or the Secretary’s designee, shall serve as the Chair of the Committee.</text> </level> <level label="4"> <text>Staff support to the Committee shall be provided by the Department of General Services, with assistance as necessary to be furnished by other member agencies.</text> </level> </level> <level label="c"> <text>The Committee shall provide the State with information and assistance regarding environmentally preferable purchasing, including:</text> <level label="1"> <text>the promotion of environmentally preferable purchasing through education and training;</text> </level> <level label="2"> <text>the development and implementation of statewide policies, guidelines, programs, best practices, and regulations;</text> </level> <level label="3"> <text>coordination with other State or federal agencies, task forces, workgroups, regulatory efforts, research and data collection efforts, or other programs and services relating to environmentally preferable purchasing;</text> </level> <level label="4"> <text>the publication of environmentally preferable specifications to be adopted by State agencies; and</text> </level> <level label="5"> <text>the framework and format for State unit reports required under § 14–405 of this subtitle.</text> </level> </level> <level label="d"> <text>The Committee shall designate a single point of contact for State agencies, suppliers, and other interested parties to contact regarding environmentally preferable purchasing issues.</text> </level> <level label="e"> <text>On or before December 31 of each year, the Committee shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the Committee’s activities and the progress made as a result of the implementation of this section.</text> </level> <level label="f"> <text>This section may not be construed to:</text> <level label="1"> <text>limit or supersede recycled content requirements under any other provision of law; or</text> </level> <level label="2"> <text>require the acquisition of goods or services that:</text> <level label="i"> <text>do not perform adequately for the intended use;</text> </level> <level label="ii"> <text>exclude adequate competition; or</text> </level> <level label="iii"> <text>are not available at a reasonable price in a reasonable period of time.</text> </level> </level> </level> <level label="g"> <text>A bidder or offeror for a procurement contract shall certify in writing that any claims of environmental attributes made relating to a product or service are consistent with the Federal Trade Commission’s Guidelines for the Use of Environmental Marketing Terms.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-411" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <text>In this section, “public employer” means:</text> <level label="1"> <text>a unit;</text> </level> <level label="2"> <text>a county;</text> </level> <level label="3"> <text>a municipality in the State;</text> </level> <level label="4"> <text>a school district in the State; or</text> </level> <level label="5"> <text>any special district in the State.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this section, a public employer may not knowingly buy, furnish, or require an employee to buy or acquire for use while on duty any of the following items unless the item is manufactured in the United States:</text> <level label="i"> <text>a uniform or any other item of apparel, the selection of which is not in the employee’s discretion, except for the proper size; or</text> </level> <level label="ii"> <text>safety equipment and protective accessories.</text> </level> </level> <level label="2"> <text>A public employer may buy, furnish, or require an employee to purchase or acquire an item listed in paragraph (1) of this subsection that is manufactured outside of the United States, if:</text> <level label="i"> <text>the item or a similar item is not manufactured or available for purchase in the United States;</text> </level> <level label="ii"> <text>the item or a similar item is not manufactured or available for purchase in the United States in reasonably available quantities;</text> </level> <level label="iii"> <text>the price of the item or a similar item manufactured in the United States exceeds the price of a similar, available item that is not manufactured in the United States by an unreasonable amount; or</text> </level> <level label="iv"> <text>the quality of the item or a similar item manufactured in the United States is substantially less than the quality of a comparably priced, similar, and available item that is not manufactured in the United States.</text> </level> </level> <level label="3"> <text>The Board shall adopt regulations defining the following terms for the purposes of this section:</text> <level label="i"> <text>“reasonably available”;</text> </level> <level label="ii"> <text>“unreasonable amount”; and</text> </level> <level label="iii"> <text>“substantially less”.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-412" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Lamp” means the component of a luminaire that produces the light.</text> </level> <level label="3"> <text>“Lumen” means a unit of measurement of luminous flux.</text> </level> <level label="4"> <text>“Luminaire” means the complete lighting unit, including the lamp or other component that produces light and the assembly that holds the lamp, including an assembly housing, a mounting bracket or pole socket, a lamp holder, a ballast, a reflector or mirror, and a refractor or lens.</text> </level> <level label="5"> <text>“Restricted uplight luminaire” means a luminaire that:</text> <level label="i"> <text>except for a 0.5% maximum incidental uplight from reflection off mounting hardware, allows no direct light emission above a horizontal plane through the luminaire’s lowest light–emitting part; and</text> </level> <level label="ii"> <text>emits no more than 10% of the total direct light emission at or above a vertical angle of 80 degrees.</text> </level> </level> <level label="6"> <text>“State building” means a building owned or leased by the State or a unit of the State.</text> </level> </level> <level label="b"> <text>This section does not apply to a luminaire:</text> <level label="1"> <text>located on the grounds of a correctional facility;</text> </level> <level label="2"> <text>required by federal regulation;</text> </level> <level label="3"> <text>required for storm operation activities performed by the Department of Transportation;</text> </level> <level label="4"> <text>required to illuminate the State flag or the flag of the United States;</text> </level> <level label="5"> <text>used for sign illumination;</text> </level> <level label="6"> <text>in a lighting plan where less than 25% of the luminaires are to be replaced; or</text> </level> <level label="7"> <text>used to illuminate the field of play at a sports facility.</text> </level> </level> <level label="c"> <text>State funds may not be used to install or replace a permanent outdoor luminaire for lighting on the grounds of any State building, facility, park, or trail unless:</text> <level label="1"> <text>the luminaire is designed to maximize energy conservation and to minimize light pollution, glare, and light trespass;</text> </level> <level label="2"> <text>except for a luminaire installed or replaced by the Department of Transportation, the luminaire has a correlated light temperature that is less than or equal to 3,000 kelvins;</text> </level> <level label="3"> <text>the illumination produced by the luminaire is the minimum illumination necessary for the intended purpose of the lighting; and</text> </level> <level label="4"> <text>for a luminaire with an output of more than 1,800 lumens, the luminaire is a restricted uplight luminaire.</text> </level> </level> <level label="d"> <level label="1"> <text>The Board of Public Works or the Board’s designee may waive the requirements of subsection (c)(2) or (4) of this section if, after a request for a waiver has been made, the Board of Public Works or the Board’s designee determines that the waiver is necessary for the lighting application.</text> </level> <level label="2"> <text>The Board of Public Works shall establish the requirements for a waiver request under paragraph (1) of this subsection, including:</text> <level label="i"> <text>a description of the lighting plan;</text> </level> <level label="ii"> <text>a description of the efforts made to comply with the requirements of this section; and</text> </level> <level label="iii"> <text>the reason a waiver is necessary.</text> </level> </level> <level label="3"> <text>In reviewing a waiver request, the Board of Public Works or the Board’s designee shall consider design safety, costs, and any other factors the Board or the Board’s designee determines are appropriate.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-413" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Conflict mineral” means a mineral or mineral derivative determined under federal law to be financing human conflict.</text> </level> <level label="ii"> <text>“Conflict mineral” includes columbite–tantalite (coltan), cassiterite, gold, wolframrite, or derivatives of these minerals.</text> </level> </level> <level label="3"> <text>“Noncompliant person” means a person:</text> <level label="i"> <text>that is required to disclose under federal law information relating to conflict minerals that originated in the Democratic Republic of the Congo or its neighboring countries; and</text> </level> <level label="ii"> <text>for which the disclosure is not filed, is considered under federal law to be an unreliable determination, or contains false information.</text> </level> </level> </level> <level label="b"> <text>A unit may not knowingly procure supplies or services from a noncompliant person.</text> </level> <level label="c"> <text>In any solicitation for supplies or services, a unit shall provide notice of the requirements of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-414" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Electronic product” means a product covered by EPEAT or another comprehensive environmental rating system approved by the Department of Information Technology.</text> </level> <level label="3"> <text>“EPEAT” means the Electronic Product Environmental Assessment Tool.</text> </level> </level> <level label="b"> <text>When purchasing an electronic product to be used by the State, a State unit shall purchase an electronic product that:</text> <level label="1"> <text>is listed and rated silver or gold on the EPEAT registry; or</text> </level> <level label="2"> <text>meets nationally recognized and consensus–based standards established by a comprehensive environmental rating system approved by the Department of Information Technology.</text> </level> </level> <level label="c"> <text>If a unit requests a waiver from the requirement in subsection (b) of this section, the Secretary of Information Technology, or the Secretary’s designee, may waive the requirement.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-415" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Certified e–Stewards recycler” means a recycler of electronic products that has successfully completed the e–Stewards certification program created by the Basel Action Network.</text> </level> <level label="3"> <text>“Electronic product” means a product recycled by:</text> <level label="i"> <text>a certified e–Stewards recycler;</text> </level> <level label="ii"> <text>a R2 certified recycler; or</text> </level> <level label="iii"> <text>a recycler of electronic products that meets nationally recognized and consensus–based guidelines, standards, and systems for recycling that are approved by the Department of the Environment in consultation with the Department of General Services.</text> </level> </level> <level label="4"> <text>“R2 certified recycler” means a recycler of electronic products that is certified in the R2 Practices Standards that are maintained by R2 Solutions.</text> </level> </level> <level label="b"> <text>On or after October 1, 2014, when awarding a procurement contract for services to recycle electronic products, a State unit shall award the contract to a recycler of electronic products that:</text> <level label="1"> <text>is R2 or e–Stewards certified; or</text> </level> <level label="2"> <text>meets nationally recognized and consensus–based guidelines, standards, and systems for recycling that are approved by the Department of the Environment in consultation with the Department of General Services.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-416" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“American manufactured goods” means goods that:</text> <level label="i"> <text>are manufactured in the United States; or</text> </level> <level label="ii"> <text>are assembled in the United States.</text> </level> </level> <level label="3"> <level label="i"> <text>“Emergency life safety and property safety goods” means any goods when provided for installation in, as part of, or as an addition to a system designed to:</text> <level label="1"> <text>prevent, respond to, alert regarding, suppress, control, or extinguish an emergency or the cause of an emergency that threatens life or property; or</text> </level> <level label="2"> <text>assist in evacuation in the event of an emergency that threatens life or property.</text> </level> </level> <level label="ii"> <text>“Emergency life safety and property safety goods” includes:</text> <level label="1"> <text>systems or items for or relating to:</text> </level> <level label="A"> <text>fire alarms;</text> </level> <level label="B"> <text>fire sprinklers;</text> </level> <level label="C"> <text>fire suppression;</text> </level> <level label="D"> <text>fire extinguishing;</text> </level> <level label="E"> <text>security;</text> </level> <level label="F"> <text>gas detection;</text> </level> <level label="G"> <text>intrusion detection;</text> </level> <level label="H"> <text>access control;</text> </level> <level label="I"> <text>video surveillance and recording;</text> </level> <level label="J"> <text>mass notification;</text> </level> <level label="K"> <text>public address;</text> </level> <level label="L"> <text>emergency lighting;</text> </level> <level label="M"> <text>patient wandering;</text> </level> <level label="N"> <text>infant tagging; and</text> </level> <level label="O"> <text>nurse call; and</text> </level> <level label="2"> <text>information technologies and telecommunications products and technologies that are used for the purposes listed in subparagraph (i) of this paragraph.</text> </level> </level> </level> <level label="4"> <text>“Public body” means:</text> <level label="i"> <text>a unit;</text> </level> <level label="ii"> <text>a county;</text> </level> <level label="iii"> <text>a municipality in the State;</text> </level> <level label="iv"> <text>a school district in the State; or</text> </level> <level label="v"> <text>a special district in the State.</text> </level> </level> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, a public body shall require a contractor or subcontractor to use or supply American manufactured goods in the performance of a contract for:</text> <level label="1"> <text>constructing or maintaining a public work; or</text> </level> <level label="2"> <text>buying or manufacturing machinery or equipment that is to be installed at a public work site.</text> </level> </level> <level label="c"> <text>This section does not apply:</text> <level label="1"> <text>if the head of a public body determines that:</text> <level label="i"> <text>the price of the American manufactured goods exceeds the price of a similar manufactured good that is not manufactured in the United States by an unreasonable amount;</text> </level> <level label="ii"> <text>the item or a similar item is not manufactured or available for purchase in the United States in reasonably available quantities;</text> </level> <level label="iii"> <text>the quality of the item or a similar item manufactured in the United States is substantially less than the quality of a comparably priced, similar, and available item that is not manufactured in the United States; or</text> </level> <level label="iv"> <text>the procurement of a manufactured good would be inconsistent with the public interest; or</text> </level> </level> <level label="2"> <text>to emergency life safety and property safety goods.</text> </level> </level> <level label="d"> <text>The Board of Public Works shall adopt regulations to define the following terms for the purposes of this section:</text> <level label="1"> <text>“reasonably available”;</text> </level> <level label="2"> <text>“unreasonable amount”; and</text> </level> <level label="3"> <text>“substantially less”.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-417" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, on or after July 1, 2022, State funds may not be used to purchase or plant an invasive plant species for an outdoor project.</text> </level> <level label="2"> <text>The prohibition under paragraph (1) of this subsection does not apply if the plant species is commonly used for agricultural or horticultural purposes and is being maintained for the purposes of education or research.</text> </level> </level> <level label="b"> <text>Each entity that receives State funding and each State agency shall prioritize, whenever possible, the use of plants native to the State for every planting project.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-418" title_number="14" title_name="Preferences" subtitle_number="4" subtitle_name="Miscellaneous Purchasing Preferences"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Hybrid vehicle” means an automobile that can draw propulsion energy from both of the following sources of stored energy:</text> <level label="i"> <text>gasoline or diesel fuel; and</text> </level> <level label="ii"> <text>a rechargeable energy storage system.</text> </level> </level> <level label="3"> <text>“Light–duty vehicle” means a vehicle with a gross weight of 8,500 pounds or less.</text> </level> <level label="4"> <text>“Passenger car” has the meaning stated in § 11–144.2 of the Transportation Article.</text> </level> <level label="5"> <text>“Zero–emission vehicle” has the meaning stated in § 23–206.4 of the Transportation Article.</text> </level> </level> <level label="b"> <text>It is the intent of the General Assembly that 100% of:</text> <level label="1"> <text>passenger cars in the State vehicle fleet be zero–emission vehicles by 2031; and</text> </level> <level label="2"> <text>other light–duty vehicles in the State vehicle fleet be zero–emission vehicles by 2036.</text> </level> </level> <level label="c"> <text>This section does not apply to the purchase of vehicles:</text> <level label="1"> <text>that have special performance requirements necessary for the protection and welfare of the public; or</text> </level> <level label="2"> <text>by the Department of Transportation or the Maryland Transit Administration that will be used to provide paratransit service.</text> </level> </level> <level label="d"> <text>The State shall ensure that:</text> <level label="1"> <level label="i"> <text>in fiscal years 2023 through 2025, inclusive, at least 25% of passenger cars purchased for the State vehicle fleet are zero–emission vehicles;</text> </level> <level label="ii"> <text>in fiscal years 2026 and 2027, at least 50% of passenger cars purchased for the State vehicle fleet are zero–emission vehicles;</text> </level> <level label="iii"> <text>beginning in fiscal year 2028, 100% of passenger cars purchased for the State vehicle fleet are zero–emission vehicles; and</text> </level> <level label="iv"> <text>beginning in fiscal year 2024, any passenger car purchased for the State vehicle fleet that is not a zero–emission vehicle is a hybrid vehicle; and</text> </level> </level> <level label="2"> <level label="i"> <text>in fiscal years 2028 through 2030, inclusive, at least 25% of all other light–duty vehicles purchased for the State vehicle fleet are zero–emission vehicles;</text> </level> <level label="ii"> <text>in fiscal years 2031 and 2032, at least 50% of all other light–duty vehicles purchased for the State vehicle fleet are zero–emission vehicles; and</text> </level> <level label="iii"> <text>beginning in fiscal year 2033, 100% of all other light–duty vehicles purchased for the State vehicle fleet are zero–emission vehicles.</text> </level> </level> </level> <level label="e"> <text>The Department of General Services shall ensure the development of charging infrastructure to support the operation of zero–emission vehicles in the State vehicle fleet.</text> </level> <level label="f"> <level label="1"> <text>On or before December 1 each year, the Chief Procurement Officer shall submit to the General Assembly, in accordance with § 2–1257 of the State Government Article, an annual report that includes, for the immediately preceding fiscal year:</text> <level label="i"> <text>the total number of passenger cars and other light–duty vehicles purchased by each unit;</text> </level> <level label="ii"> <text>the number of zero–emission passenger cars and other light–duty vehicles purchased by each unit;</text> </level> <level label="iii"> <text>the current percentage of passenger cars and other light–duty vehicles in the State vehicle fleet that are zero–emission vehicles;</text> </level> <level label="iv"> <text>any operational savings associated with the purchase and operation of zero–emission vehicles; and</text> </level> <level label="v"> <text>an evaluation of the charging infrastructure that exists to support the operation of zero–emission vehicles in the State vehicle fleet.</text> </level> </level> <level label="2"> <text>Each unit shall cooperate with the Chief Procurement Officer in the collection and reporting of the information required under this subsection.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-501" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Certification agency” has the meaning stated in § 14–301 of this title.</text> </level> <level label="c"> <text>“Economically disadvantaged individual” has the meaning stated in § 14–301 of this title.</text> </level> <level label="d"> <text>“Small business” means:</text> <level label="1"> <text>a certified minority business enterprise, as defined in § 14–301 of this title, that meets the criteria specified under item (3) of this subsection;</text> </level> <level label="2"> <text>a veteran–owned small business enterprise, as defined in § 14–601 of this title, that meets the criteria specified under item (3) of this subsection;</text> </level> <level label="3"> <text>a business, other than a broker, that meets the following criteria:</text> <level label="i"> <text>the business is independently owned and operated;</text> </level> <level label="ii"> <text>the business is not a subsidiary of another business;</text> </level> <level label="iii"> <text>the business is not dominant in its field of operation; and</text> </level> <level label="iv"> <level label="1"> <level label="A"> <text>the wholesale operations of the business did not employ more than 50 persons in its most recently completed 3 fiscal years;</text> </level> </level> <level label="B"> <text>the retail operations of the business did not employ more than 25 persons in its most recently completed 3 fiscal years;</text> </level> <level label="C"> <text>the manufacturing operations of the business did not employ more than 100 persons in its most recently completed 3 fiscal years;</text> </level> <level label="D"> <text>the service operations of the business did not employ more than 100 persons in its most recently completed 3 fiscal years;</text> </level> <level label="E"> <text>the construction operations of the business did not employ more than 50 persons in its most recently completed 3 fiscal years; and</text> </level> <level label="F"> <text>the architectural and engineering services of the business did not employ more than 100 persons in its most recently completed 3 fiscal years; or</text> </level> <level label="2"> <level label="A"> <text>the gross sales of the wholesale operations of the business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal years;</text> </level> </level> <level label="B"> <text>the gross sales of the retail operations of the business did not exceed an average of $3,000,000 in its most recently completed 3 fiscal years;</text> </level> <level label="C"> <text>the gross sales of the manufacturing operations of the business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal years;</text> </level> <level label="D"> <text>the gross sales of the service operations of the business did not exceed an average of $10,000,000 in its most recently completed 3 fiscal years;</text> </level> <level label="E"> <text>the gross sales of the construction operations of the business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal years; and</text> </level> <level label="F"> <text>the gross sales of the architectural and engineering services of the business did not exceed an average of $4,500,000 in its most recently completed 3 fiscal years; or</text> </level> </level> </level> <level label="4"> <text>a joint venture of two or more persons associated to carry out a single business activity for a limited purpose or time that meets the criteria specified under item (3) of this subsection.</text> </level> </level> <level label="e"> <text>“Small business reserve” means those procurements that are limited to responses from small businesses under § 14–502(c) of this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-502" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <text>Except as provided in subsection (d) of this section, this subtitle applies to all procurements by a unit.</text> </level> <level label="b"> <text>This section does not apply to procurements subject to Subtitle 1 of this title.</text> </level> <level label="c"> <text>To the extent practicable, a unit shall structure its procurement procedures to achieve a minimum of 20% of the unit’s total dollar value of goods, supplies, services, maintenance, construction, construction–related services, and architectural and engineering service contracts to be made directly to small businesses.</text> </level> <level label="d"> <text>The total dollar value of procurements by a unit does not include the value of contracts to which this section does not apply because of a conflict with federal law.</text> </level> <level label="e"> <text>A unit may apply toward the unit’s overall annual Small Business Reserve achievement awards made to a small business under designated small business reserve contracts as well as awards made to a small business under nondesignated small business reserve contracts.</text> </level> <level label="f"> <level label="1"> <text>The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Attorney General, shall establish standards and guidelines for participation in the Small Business Reserve Program every 5 years.</text> </level> <level label="2"> <text>The standards and guidelines established under paragraph (1) of this subsection shall allow for the registration of businesses for participation in the Small Business Reserve Program without the need to file any additional paperwork other than evidence that the business:</text> <level label="i"> <text>is a small business under this subtitle; and</text> </level> <level label="ii"> <level label="1"> <text>is certified as a minority business enterprise under Subtitle 3 of this title;</text> </level> <level label="2"> <text>is certified under the federal Disadvantaged Business Enterprise Program; or</text> </level> <level label="3"> <text>is qualified as a small business under Subtitle 2 of this title.</text> </level> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-502.1" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <level label="1"> <text>This section applies to a procurement by any unit or agency of the Executive Branch of State government for goods, supplies, services, maintenance, construction, construction–related services, architectural services, or engineering services.</text> </level> <level label="2"> <text>This section does not apply to:</text> <level label="i"> <text>procurements made under Subtitle 1 of this title;</text> </level> <level label="ii"> <text>procurements involving expenditures of federal dollars, to the extent that inclusion in the small business reserve program conflicts with federal law or grant provisions;</text> </level> <level label="iii"> <text>the procurement of human, social, cultural, or educational services; or</text> </level> <level label="iv"> <text>term and master contracts exempted under subsection (c) of this section.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A procurement with a total dollar value of $1,000,000 or less shall be designated for the small business reserve.</text> </level> <level label="2"> <text>Each unit or agency shall implement this subsection in a manner consistent with all applicable statutes, including the requirements of Subtitle 3 of this title.</text> </level> </level> <level label="c"> <level label="1"> <text>A procurement may be exempt from designation under subsection (b) of this section if the Office of Small, Minority, and Women Business Affairs certifies, concurrently with review of any waiver determinations for certified minority business enterprise participation contract goals, that it is not practicable to do so.</text> </level> <level label="2"> <text>The Office of State Procurement in the Department of General Services shall assist the Office of Small, Minority, and Women Business Affairs in establishing procedures and guidelines for the exemption of procurements under paragraph (1) of this subsection.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-503" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <level label="1"> <text>The Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish procedures for compiling and maintaining a comprehensive bidder’s list of qualified small businesses that shall be posted on the Internet.</text> </level> <level label="2"> <text>The Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish a certification review process.</text> </level> </level> <level label="b"> <text>The Office of Small, Minority, and Women Business Affairs shall:</text> <level label="1"> <text>establish guidelines for Small Business Reserve Program administration;</text> </level> <level label="2"> <text>ensure agency compliance with the Small Business Reserve Program;</text> </level> <level label="3"> <text>provide training and technical assistance to agency personnel; and</text> </level> <level label="4"> <text>collect data regarding the State’s utilization of small business reserve vendors.</text> </level> </level> <level label="c"> <text>Each unit shall ensure compliance with the regulations set forth in subsection (a) of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-504" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <text>Any procurement by a unit of goods, supplies, services, maintenance, construction, construction–related services, architectural services, and engineering services shall be eligible for designation for the small business reserve.</text> </level> <level label="b"> <text>A solicitation for procurement that has been designated for a small business reserve shall be published in the same manner as required for an invitation for bids as set forth in § 13–103(c) of this article.</text> </level> <level label="c"> <text>The procurement officer of a unit shall award a procurement contract designated for a small business reserve to the small business that submits a responsive bid or a proposal that is reasonably susceptible of being selected for award that:</text> <level label="1"> <text>is the lowest bid price;</text> </level> <level label="2"> <text>if the invitation for bids so provides, is the lowest evaluated bid price; or</text> </level> <level label="3"> <text>is the bid or proposal most favorable to the State within the small business reserve.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-504.1" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <text>The certification agency, in consultation with the Office of Small, Minority, and Women Business Affairs, shall develop an outreach program to increase the participation of small businesses that are owned by economically disadvantaged individuals participating in the Small Business Reserve Program.</text> </level> <level label="b"> <text>On or before December 1 each year, the certification agency shall submit to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a report on:</text> <level label="1"> <text>the status of the outreach program required under subsection (a) of this section; and</text> </level> <level label="2"> <text>the total number and dollar value of awards made to small businesses owned by economically disadvantaged individuals under designated small business reserve contracts.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-505" title_number="14" title_name="Preferences" subtitle_number="5" subtitle_name="Small Business Reserve Program"> <level label="a"> <text>Within 60 days after the enactment of the budget bill by the General Assembly, each unit shall submit a report to the Office of Small, Minority, and Women Business Affairs that complies with the reporting requirements set forth in COMAR 21.11.01.06.</text> </level> <level label="b"> <level label="1"> <text>Within 60 days after the end of each fiscal year, each unit shall submit a report to the Office of Small, Minority, and Women Business Affairs that complies with the requirements of paragraph (2) of this subsection.</text> </level> <level label="2"> <text>For the preceding fiscal year, the report shall:</text> <level label="i"> <text>state the total number and the dollar value of awards the unit made to small businesses under designated small business reserve contracts;</text> </level> <level label="ii"> <text>state the total number and the dollar value of awards the unit made to small businesses under nondesignated small business reserve contracts, including purchase card procurements;</text> </level> <level label="iii"> <text>state the total dollar value of awards the unit made under procurement contracts; and</text> </level> <level label="iv"> <text>contain other such information as required by the Office of Small, Minority, and Women Business Affairs.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except for the quarter in which a unit is submitting an annual report under this section, each unit shall report quarterly to the Office of Small, Minority, and Women Business Affairs:</text> <level label="i"> <text>Small Business Reserve annual designated and nondesignated achievement awards under subsection (b) of this section; and</text> </level> <level label="ii"> <text>any other information requested by the Office of Small, Minority, and Women Business Affairs related to contracts governed by this subtitle.</text> </level> </level> <level label="2"> <text>The report required under this subsection may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.</text> </level> </level> <level label="d"> <text>On or before the 5th day of a regular legislative session of each year, the 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 a report summarizing the information the Office receives under subsection (b) of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-601" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Veteran” means an individual who is verified to be a veteran, as defined in § 9–901 of the State Government Article.</text> </level> <level label="c"> <text>“Veteran–owned small business enterprise” means a for–profit business that:</text> <level label="1"> <text>meets the size standards adopted by the United States Small Business Administration in 13 C.F.R. 121.201 and any subsequent revision of that regulation; and</text> </level> <level label="2"> <text>is at least 51% owned by one or more individuals who:</text> <level label="i"> <text>are veterans; and</text> </level> <level label="ii"> <text>control the management and daily operations of the business.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-602" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <level label="1"> <text>A unit shall structure procurement procedures, consistent with the purposes of this subtitle, to try to achieve or exceed an overall percentage goal of the unit’s total dollar value of procurement contracts to be made directly or indirectly with veteran–owned small business enterprises.</text> </level> <level label="2"> <text>The Office of Small, Minority, and Women Business Affairs shall adopt regulations that establish the overall percentage goal.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, solicitation documents shall state the expected percentage of veteran–owned small business enterprise participation based, in part, on:</text> <level label="i"> <text>the potential contracting opportunities available in the procurement contract, including both prime contracting and subcontracting opportunities, as determined through analysis of the scope of the work presented in the solicitation documents; and</text> </level> <level label="ii"> <text>the availability of veteran–owned small business enterprises to respond competitively to the potential contracting opportunities.</text> </level> </level> <level label="2"> <text>For a competitive proof of concept procurement conducted under § 13–116 of this article, the expected percentage of veteran–owned small business enterprise participation, if any, shall be established at a phase specified in the solicitation documents.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>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 veteran–owned small business enterprise participation.</text> </level> <level label="ii"> <level label="1"> <text>If a unit’s procurement officer determines that a deficiency exists in the veteran–owned small 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 veteran–owned small business enterprise participation schedule within a reasonable time period.</text> </level> <level label="2"> <text>A determination under subsubparagraph 1 of this subparagraph shall be made in consultation with the unit’s veteran–owned small business enterprise liaison.</text> </level> <level label="3"> <text>As directed by the notification made under subsubparagraph 1 of this subparagraph, the bidder or offeror shall submit an amended veteran–owned small business enterprise participation schedule correcting the deficiency identified.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, a unit may consider modifying the veteran–owned small business participation goal on a procurement contract:</text> <level label="1"> <text>at any time prior to contract execution; or</text> </level> <level label="2"> <text>after contract execution, when determined to be in the best interest of the State.</text> </level> </level> <level label="ii"> <text>Before a unit may consider modifying a veteran–owned small business participation goal under subparagraph (i) of this paragraph, the unit shall:</text> <level label="1"> <text>make a determination that there has been a change in the factors established under subsection (b) of this section;</text> </level> <level label="2"> <text>use the factors established under subsection (b) of this section to determine the percentage modification to the veteran–owned small business participation goal; and</text> </level> <level label="3"> <text>obtain the agreement of the contractor, including any reasonable pricing considerations.</text> </level> </level> </level> <level label="3"> <text>The veteran–owned small business enterprise participation schedule, including any amendment, shall be attached to and made a part of the executed contract.</text> </level> <level label="4"> <text>A veteran–owned small business enterprise participation schedule may be amended to modify the veteran–owned small business enterprise participation after the date of contract execution only if:</text> <level label="i"> <text>it is in the best interest of the State;</text> </level> <level label="ii"> <text>it is approved by the head of the unit; and</text> </level> <level label="iii"> <text>the contract is amended.</text> </level> </level> </level> <level label="d"> <text>The provisions of this subtitle do not apply to a unit’s procurement procedures to the extent that any unit determines that those provisions are in conflict with an applicable federal program.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-602.1" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <text>In this section, “veteran–owned small business reserve” means those procurements that are limited to responses from businesses that qualify as a veteran–owned small business enterprise.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, this section applies to all procurements by the Department of Veterans and Military Families and the Military Department or any unit acting on behalf of the Department of Veterans and Military Families or the Military Department.</text> </level> <level label="2"> <text>This section does not apply to:</text> <level label="i"> <text>procurements made under Subtitle 1 of this title; or</text> </level> <level label="ii"> <text>procurements involving expenditures of federal dollars, to the extent that the requirements in this section conflict with federal law or other grant provisions.</text> </level> </level> </level> <level label="c"> <text>Notwithstanding Subtitle 5 of this title, any procurement by the Department of Veterans and Military Families or the Military Department of goods, supplies, services, maintenance, construction, construction related services, architectural services, and engineering services shall be eligible for designation for the veteran–owned small business reserve.</text> </level> <level label="d"> <text>The Governor’s Office of Small, Minority, and Women Business Affairs shall:</text> <level label="1"> <text>in consultation with the Chief Procurement Officer and the Attorney General, establish standards and guidelines for participation in the veteran–owned small business reserve program every 5 years;</text> </level> <level label="2"> <text>establish guidelines for veteran–owned small business reserve program administration; and</text> </level> <level label="3"> <text>collect data regarding the Department of Veterans and Military Families’ and the Military Department’s use of veteran–owned small business reserve vendors.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-603" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <text>For procurements conducted by competitive sealed bidding, a unit shall award the contract to the responsible bidder that submits the responsive bid that:</text> <level label="1"> <level label="i"> <text>has the lowest bid price;</text> </level> <level label="ii"> <text>has the lowest evaluated bid price; or</text> </level> <level label="iii"> <text>for procurements subject to § 11–202(3) of this article, is the bid most favorable to the State; and</text> </level> </level> <level label="2"> <text>meets or makes a good faith effort to meet any applicable overall percentage goal established under this subtitle.</text> </level> </level> <level label="b"> <text>For procurements conducted by competitive sealed proposals, a unit shall award the contract to the responsible offeror:</text> <level label="1"> <text>proposing the most advantageous offer; and</text> </level> <level label="2"> <text>that meets or makes a good faith effort to meet any applicable overall percentage goal established under this subtitle.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-604" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <text>The Office of Small, Minority, and Women Business Affairs shall:</text> <level label="1"> <text>adopt regulations to implement this subtitle;</text> </level> <level label="2"> <text>establish procedures for tracking and reporting participation of veteran–owned small business enterprises under this subtitle; and</text> </level> <level label="3"> <text>on or before the 5th day of a regular legislative session of each year, report to the Legislative Policy Committee on:</text> <level label="i"> <text>the number and dollar value of contracts awarded to veteran–owned small business enterprises under this subtitle, including the total dollar value of payments made to veteran–owned small business enterprises under existing contracts; and</text> </level> <level label="ii"> <text>an evaluation of the effectiveness of the program under this subtitle.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Within 60 days after the end of each fiscal year, and each quarter thereafter, each unit shall submit a report to the Office of Small, Minority, and Women Business Affairs on:</text> <level label="i"> <text>the information required under subsection (a)(3)(i) of this section; and</text> </level> <level label="ii"> <text>any other information requested by the Office.</text> </level> </level> <level label="2"> <text>A report submitted under this subsection may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-604.1" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Advisory Committee” means the Advisory Committee on Veteran–Owned Small Business Enterprises.</text> </level> <level label="3"> <text>“Office” means the Office of Small, Minority, and Women Business Affairs.</text> </level> <level label="4"> <text>“Special Secretary” means the Special Secretary for the Office.</text> </level> </level> <level label="b"> <text>The Office shall establish an Advisory Committee on Veteran–Owned Small Business Enterprises.</text> </level> <level label="c"> <text>The Special Secretary shall be Chair of the Advisory Committee and the Office shall provide staff support.</text> </level> <level label="d"> <text>The Advisory Committee consists of individuals that the Special Secretary considers will assist the Office in studying and developing policies to further the purposes of this subtitle, including representatives from:</text> <level label="1"> <text>the Department of Commerce;</text> </level> <level label="2"> <text>the Department of General Services;</text> </level> <level label="3"> <text>the Governor’s Office of Performance Improvement;</text> </level> <level label="4"> <text>the Department of Veterans and Military Families; and</text> </level> <level label="5"> <text>certified veteran–owned small business enterprises.</text> </level> </level> <level label="e"> <text>The Advisory Committee shall meet at least two times each year.</text> </level> <level label="f"> <text>The Advisory Committee shall:</text> <level label="1"> <text>review the annual report and evaluation submitted to the Legislative Policy Committee in accordance with § 14–604 of this subtitle to:</text> <level label="i"> <text>identify any areas of the program that need improvement; and</text> </level> <level label="ii"> <text>recommend possible actions that may achieve the necessary improvements; and</text> </level> </level> <level label="2"> <text>ensure that a continuous oversight and improvement structure exists for the program.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-605" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <level label="a"> <text>A person may not:</text> <level label="1"> <text>knowingly and with intent to defraud, fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain, public money, procurement contracts, or funds expended under a procurement contract to which the person is not entitled under this article;</text> </level> <level label="2"> <text>knowingly and with intent to defraud, fraudulently represent participation of a veteran–owned small business enterprise in order to obtain or retain a bid preference or a procurement contract;</text> </level> <level label="3"> <text>willfully and knowingly make or subscribe to any statement, declaration, or other document that is fraudulent or false as to any material matter, whether or not that falsity or fraud is committed with the knowledge or consent of the person authorized or required to present the declaration, statement, or document;</text> </level> <level label="4"> <text>willfully and knowingly aid, assist in, procure, counsel, or advise the preparation or presentation of a declaration, statement, or other document that is fraudulent or false as to any material matter, regardless of whether that falsity or fraud is committed with the knowledge or consent of the person authorized or required to present the declaration, statement, or document;</text> </level> <level label="5"> <text>willfully and knowingly fail to file any declaration or notice with the unit that is required by this subtitle; or</text> </level> <level label="6"> <text>establish, knowingly aid in the establishment of, or exercise control over a business found to have violated a provision of items (1) through (5) of this subsection.</text> </level> </level> <level label="b"> <level label="1"> <text>A person who violates any of the provisions of subsection (a) of this section shall be guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both.</text> </level> <level label="2"> <text>In addition to the penalties under paragraph (1) of this subsection, a person who violates any of the provisions of subsection (a) of this section shall be:</text> <level label="i"> <text>for the first offense, liable for a civil penalty of not less than $10,000 and not exceeding $30,000; and</text> </level> <level label="ii"> <text>for a subsequent offense, liable for a civil penalty of not less than $30,000 and not exceeding $50,000.</text> </level> </level> <level label="3"> <text>A person who violates any of the provisions of subsection (a) of this section shall pay all costs and attorney’s fees incurred by the plaintiff in a civil action brought under this subtitle.</text> </level> </level> <level label="c"> <text>The Board shall prohibit a business or person who fails to satisfy the penalties, costs, and attorney’s fees imposed under subsection (b) of this section from further contracting with the State until the penalties are satisfied.</text> </level> <level label="d"> <level label="1"> <text>A unit shall report all alleged violations of this section to the Board.</text> </level> <level label="2"> <text>The Board subsequently shall report all alleged violations of this section to the Office of the Attorney General, which shall determine whether to bring a civil action against a person or business for a violation of this section.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-606" title_number="14" title_name="Preferences" subtitle_number="6" subtitle_name="Veteran-Owned Small Business Enterprise Participation"> <text>In addition to the penalties under § 14–605(b) of this subtitle, a person that willfully misrepresents a business as a veteran–owned small business enterprise for purposes of obtaining or retaining a contract or subcontract may be subject to:</text> <level label="1"> <text>suspension or debarment under Title 16 of this article; or</text> </level> <level label="2"> <text>civil penalties under the Maryland False Claims Act under Title 8 of the General Provisions Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-701" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Certified Chesapeake invasive species” means a finfish species that is:</text> <level label="1"> <text>ranked as high priority in the Maryland Aquatic Nuisance Species Management Plan; and</text> </level> <level label="2"> <text>harvested from the Chesapeake Bay or its tributaries.</text> </level> </level> <level label="c"> <text>“Certified Chesapeake invasive species provider” means a person licensed and authorized as a seafood dealer under § 4–701 of the Natural Resources Article that:</text> <level label="1"> <text>is certified by the Department in accordance with regulations adopted under this subtitle; and</text> </level> <level label="2"> <text>can demonstrate that the person’s product is a certified Chesapeake invasive species.</text> </level> </level> <level label="d"> <text>“Certified local farm” means a local farm enterprise that:</text> <level label="1"> <text>meets the nutrient management requirements established under Title 8, Subtitle 8 of the Agriculture Article; and</text> </level> <level label="2"> <text>is certified by the Department in accordance with regulations adopted under this subtitle.</text> </level> </level> <level label="e"> <text>“Department” means the Department of Agriculture.</text> </level> <level label="f"> <text>“Office” means the Office for the Certified Local Farm and Fish Program.</text> </level> <level label="g"> <text>“Program” means the Certified Local Farm and Fish Program.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-702" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <level label="1"> <text>There is an Office for the Certified Local Farm and Fish Program in the Department.</text> </level> <level label="2"> <text>The purpose of the Office is to administer the Program and facilitate the participation of certified local farms and certified Chesapeake invasive species providers in the Program.</text> </level> </level> <level label="b"> <level label="1"> <text>There is a Certified Local Farm and Fish Program in the Office.</text> </level> <level label="2"> <text>The purpose of the Program is to encourage each unit to try to achieve an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts for food from certified local farms and certified Chesapeake invasive species providers.</text> </level> </level> <level label="c"> <text>The Department shall create two positions to provide staff for the Office.</text> </level> <level label="d"> <text>The Department, along with the Department of General Services, shall coordinate with the State Department of Education to procure local food for local school systems in accordance with § 7–137 of the Education Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-703" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <level label="1"> <text>Each unit shall structure procurement procedures, consistent with the purposes of this subtitle, to try to achieve an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts for food being made directly or indirectly to certified local farms and certified Chesapeake invasive species providers.</text> </level> <level label="2"> <text>A unit may achieve the 20% goal through:</text> <level label="i"> <text>competitive sealed bids and proposals; and</text> </level> <level label="ii"> <text>small procurement in accordance with § 13–109 of this article.</text> </level> </level> <level label="3"> <text>For procurements conducted by competitive sealed bidding, a unit shall award the contract to the responsible bidder that submits the responsive bid that:</text> <level label="i"> <level label="1"> <text>has the lowest bid price;</text> </level> <level label="2"> <text>has the lowest evaluated bid price; or</text> </level> <level label="3"> <text>for procurements subject to § 11–202(3) of this article, is the bid most favorable to the State; and</text> </level> </level> <level label="ii"> <text>meets or makes a good faith effort to meet any applicable goal established under this subtitle.</text> </level> </level> <level label="4"> <text>For procurements conducted by competitive sealed proposals, a unit shall award the contract to the responsible offeror:</text> <level label="i"> <text>proposing the most advantageous offer; and</text> </level> <level label="ii"> <text>that meets or makes a good faith effort to meet any applicable goal established under this subtitle.</text> </level> </level> </level> <level label="b"> <text>The Office, in consultation with the Secretary of Agriculture, shall establish guidelines for each unit to consider when determining the appropriate local farm and Chesapeake invasive species provider participation percentage goal for a procurement contract for food in accordance with subsection (c) of this section.</text> </level> <level label="c"> <text>Each unit shall:</text> <level label="1"> <text>consider the practical severability of all procurement contracts for food and, in accordance with § 11–201 of this article, may not bundle contracts;</text> </level> <level label="2"> <text>implement a program that will enable the unit to evaluate each procurement contract for food to determine the appropriate local farm and Chesapeake invasive species provider participation goals, if any, for the contract based on:</text> <level label="i"> <text>the availability of certified local farms and certified Chesapeake invasive species providers to respond competitively to contract opportunities; and</text> </level> <level label="ii"> <text>the contract goal guidelines established under subsection (b) of this section;</text> </level> </level> <level label="3"> <text>monitor and collect data with respect to a unit’s compliance with contract goals, including explanations for failing to meet contract goals; and</text> </level> <level label="4"> <text>institute corrective action when a unit does not make good faith efforts to comply with contract goals.</text> </level> </level> <level label="d"> <text>The Office shall, in consultation with the Secretary of Agriculture, establish procedures governing how the participation of certified local farms and certified Chesapeake invasive species providers is counted toward contract goals under the Program.</text> </level> <level label="e"> <level label="1"> <level label="i"> <text>If a unit does not achieve the certified local farm and certified Chesapeake invasive species provider participation goals on a procurement contract for food, the unit shall demonstrate to the Office that the unit took all necessary and reasonable steps to achieve the goals.</text> </level> <level label="ii"> <text>A waiver of any part of the certified local farm and certified Chesapeake invasive species provider goals for a procurement contract for food shall be granted if a unit provides to the Office a reasonable demonstration of good faith efforts to achieve the goals.</text> </level> </level> <level label="2"> <text>The Office may waive any of the requirements of this subsection relating to the establishment, use, and waiver of certified local farm and certified Chesapeake invasive species provider goals for a sole source, expedited, or emergency procurement in which the public interest cannot reasonably accommodate use of those requirements.</text> </level> <level label="3"> <text>Except for waivers granted in accordance with paragraph (2) of this subsection, when a waiver determination is made, the Office shall issue the determination in writing.</text> </level> <level label="4"> <text>On or before October 31 each year, the Office shall submit directly to the Board an annual report of waivers requested and waivers granted under this subsection.</text> </level> <level label="5"> <text>The report required under paragraph (4) of this subsection shall contain the following information on those procurement contracts for food where the Office considered a unit’s request for waiver of all or a portion of the local farm and Chesapeake invasive species provider goals:</text> <level label="i"> <text>the contract titles, numbers, and dates;</text> </level> <level label="ii"> <text>the number of waiver requests received;</text> </level> <level label="iii"> <text>the number of waiver requests granted; and</text> </level> <level label="iv"> <text>any other information specifically requested by the Board.</text> </level> </level> </level> <level label="f"> <text>The Board shall keep a record of information regarding any waivers requested in accordance with this section and submit a copy of the record to the Senate Committee on Education, Energy, and the Environment and the House Health and Government Operations Committee on or before December 31 each year, in accordance with § 2–1257 of the State Government Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-704" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <text>In accordance with Title 10, Subtitle 1 of the State Government Article, the Office shall adopt regulations to implement this subtitle.</text> </level> <level label="b"> <text>The regulations shall establish procedures to be followed by units, certified local farms and certified Chesapeake invasive species providers, and successful bidders or offerors to maximize notice to, and the opportunity to participate in the food procurement process by, a broad range of local farms and Chesapeake invasive species providers.</text> </level> <level label="c"> <text>The regulations shall include provisions:</text> <level label="1"> <text>designating the Office to certify and decertify local farms and Chesapeake invasive species providers for all units through a single process, including provisions that promote and facilitate the submission of some or all of the certification application through an electronic process;</text> </level> <level label="2"> <text>specifying that a unit may not allow a local farm or Chesapeake invasive species provider to participate as if it were a certified local farm or certified Chesapeake invasive species provider if the local farm’s or Chesapeake invasive species provider’s certification is pending;</text> </level> <level label="3"> <text>consistent with this subtitle, relating to any circumstances under which the Office may waive obligations of a unit relating to certified local farm and certified Chesapeake invasive species provider participation goals; and</text> </level> <level label="4"> <text>that the Office considers necessary or appropriate to:</text> <level label="i"> <text>encourage participation by local farms and Chesapeake invasive species providers; and</text> </level> <level label="ii"> <text>protect the integrity of the procurement process.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-705" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <text>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 local farm or certified Chesapeake invasive species provider, the Office may:</text> <level label="1"> <text>subpoena witnesses;</text> </level> <level label="2"> <text>administer oaths; and</text> </level> <level label="3"> <text>compel the production of records, books, papers, and other documents.</text> </level> </level> <level label="b"> <text>If a person fails to comply with a subpoena issued under subsection (a) of this section, or fails to produce documents or other evidence, on petition of the Office, a court of competent jurisdiction may pass an order directing compliance with the subpoena or compelling the production of documents or other evidence.</text> </level> <level label="c"> <text>The Office shall make available a fraud hotline for reporting violations of this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-706" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <text>Within 90 days after the end of the fiscal year, each unit shall report to the Office.</text> </level> <level label="b"> <text>A report under this section for the preceding fiscal year shall:</text> <level label="1"> <text>state the total number and value of procurement contracts for food between the unit and certified local farms and certified Chesapeake invasive species providers;</text> </level> <level label="2"> <text>indicate the percentage that those procurement contracts for food represent of the total number and value of procurement contracts for food awarded by a unit;</text> </level> <level label="3"> <text>state the total number and the names of certified local farms and certified Chesapeake invasive species providers that participated in procurement contracts for food awarded by a unit;</text> </level> <level label="4"> <text>for each certified local farm or certified Chesapeake invasive species provider included in the report under item (3) of this subsection, list all procurement contracts for food awarded by a unit to the certified local farm or certified Chesapeake invasive species provider, including a description of the contract; and</text> </level> <level label="5"> <text>contain other such information as required by the Office, subject to approval by the Board.</text> </level> </level> <level label="c"> <text>A report under this section shall be:</text> <level label="1"> <text>in a form prescribed by the Office; and</text> </level> <level label="2"> <text>approved by the Board.</text> </level> </level> <level label="d"> <text>On or before December 31, 2023, and each December 31 thereafter, the Office shall submit a consolidated report to the Senate Committee on Education, Energy, and the Environment and the House Health and Government Operations Committee, in accordance with § 2–1257 of the State Government Article, on Program implementation and participation.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-707" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <level label="1"> <text>The Department shall develop and maintain a directory of all certified local farms and certified Chesapeake invasive species providers.</text> </level> <level label="2"> <text>The directory shall be accessible to the public on the Department’s website.</text> </level> </level> <level label="b"> <text>The Department shall include the following information for each certified local farm and certified Chesapeake invasive species provider included in the directory:</text> <level label="1"> <text>all contract information available to the Department for the certified local farm or certified Chesapeake invasive species provider;</text> </level> <level label="2"> <text>the certification number of the certified local farm or certified Chesapeake invasive species provider; and</text> </level> <level label="3"> <text>any other information the Department considers necessary or appropriate to encourage participation in the procurement process by local farms and Chesapeake invasive species providers.</text> </level> </level> <level label="c"> <text>The Department shall:</text> <level label="1"> <text>update the directory at least once a year; and</text> </level> <level label="2"> <text>identify as recently certified in the directory each local farm and Chesapeake invasive species provider that has obtained certification during the calendar year.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-708" title_number="14" title_name="Preferences" subtitle_number="7" subtitle_name="Certified Local Farm and Fish Program"> <level label="a"> <text>There is a Certified Local Farm and Fish Food Aggregation Grant Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to support the creation of food aggregation, storage, processing, and distribution sites across the State through grants and near–equity investments.</text> </level> <level label="c"> <text>The Maryland Agricultural and Resource–Based Industry Development Corporation shall administer the Fund.</text> </level> <level label="d"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>principal that is repaid from near–equity investments; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="e"> <text>The Fund may be used only for establishing and operating food aggregation, storage, processing, and distribution sites across the State through grants and near–equity investments.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-801" title_number="14" title_name="Preferences" subtitle_number="8" subtitle_name="Employee Stock Ownership Plan Preference Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Apprenticeship cohort” means a group of apprentices registered with a specific apprenticeship program during a 1–year period, excluding any apprentices terminated during their probationary period.</text> </level> <level label="c"> <text>“Completion rate” means:</text> <level label="1"> <text>for group nonjoint apprenticeship programs, the percentage of an apprenticeship cohort per employer that receives a certificate of apprenticeship completion within 1 year after the projected completion date; or</text> </level> <level label="2"> <text>for group joint, individual nonjoint, individual joint, and waiver apprenticeship programs, the percentage of an apprenticeship cohort for the program that receives a certificate of apprenticeship completion within 1 year after the projected completion date.</text> </level> </level> <level label="d"> <text>“Covered procurement” means a procurement contract that:</text> <level label="1"> <text>meets the criteria established by the Chief Procurement Officer, in consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the Secretary of Information Technology, under § 14–802 of this subtitle; and</text> </level> <level label="2"> <text>is not a public work contract subject to § 17–202 of this article.</text> </level> </level> <level label="e"> <text>“Department” means the Maryland Department of Labor.</text> </level> <level label="f"> <text>“Eligible internship program” means an internship program that requires a contractor or other entity to provide paid internships that meet standards established by the Secretary.</text> </level> <level label="g"> <text>“Group joint apprenticeship program” means an apprenticeship program that has a committee, composed of an equal number of representatives of employers and employees, that has been jointly established by an employer or group of employers and a collective bargaining agent or agents.</text> </level> <level label="h"> <text>“Group nonjoint apprenticeship program” means an apprenticeship program sponsored by two or more employers without the participation of a collective bargaining agent.</text> </level> <level label="i"> <text>“Individual joint apprenticeship program” means an apprenticeship program sponsored by one employer with the participation of a collective bargaining agent.</text> </level> <level label="j"> <text>“Individual nonjoint apprenticeship program” means an apprenticeship program sponsored by one employer without the participation of a collective bargaining agent.</text> </level> <level label="k"> <text>“Registered apprenticeship program” means an apprenticeship program that:</text> <level label="1"> <text>is registered with and approved by the Division of Workforce Development and Adult Learning; and</text> </level> <level label="2"> <text>if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as verified by the Department.</text> </level> </level> <level label="l"> <text>“Secretary” means the Secretary of Labor.</text> </level> <level label="m"> <text>“Waiver apprenticeship program” means an apprenticeship program sponsored by an individual or group of employers where the applicable collective bargaining agent waived participation.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-802" title_number="14" title_name="Preferences" subtitle_number="8" subtitle_name="Employee Stock Ownership Plan Preference Program"> <level label="a"> <text>This subtitle applies to a covered procurement made by a unit.</text> </level> <level label="b"> <text>A contractor awarded a covered procurement with an estimated total dollar value of $1,000,000 or more shall utilize a registered apprenticeship program or an eligible internship program.</text> </level> <level label="c"> <text>The Chief Procurement Officer, in consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the Secretary of Information Technology:</text> <level label="1"> <text>shall adopt regulations establishing the definition of “covered procurement”; and</text> </level> <level label="2"> <text>may adopt:</text> <level label="i"> <text>regulations to improve the recruitment or skills of employees of vendors; or</text> </level> <level label="ii"> <text>other regulations necessary to carry out this subtitle, including waiver processes.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-803" title_number="14" title_name="Preferences" subtitle_number="8" subtitle_name="Employee Stock Ownership Plan Preference Program"> <level label="a"> <text>A contractor that submits a bid or proposal for a covered procurement shall provide to a unit written verification of:</text> <level label="1"> <text>the number of apprentices or interns that will be utilized throughout the contract term, including potential renewal options;</text> </level> <level label="2"> <text>the work to be performed by apprentices in a registered apprenticeship program or interns in an eligible internship program; and</text> </level> <level label="3"> <text>the duration of the apprenticeship or the internship.</text> </level> </level> <level label="b"> <text>The written verification required under subsection (a) of this section shall be provided before the contractor may be awarded a contract for a covered procurement.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-804" title_number="14" title_name="Preferences" subtitle_number="8" subtitle_name="Employee Stock Ownership Plan Preference Program"> <level label="a"> <text>The Secretary is responsible for ensuring compliance with the requirements of this subtitle.</text> </level> <level label="b"> <text>The Secretary shall establish criteria to assist units in ensuring contractor compliance with this subtitle, including:</text> <level label="1"> <text>penalties for a contractor’s failure to use apprentices or interns as provided in a bid or proposal; and</text> </level> <level label="2"> <text>procedures for reporting alleged violations of this subtitle.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-805" title_number="14" title_name="Preferences" subtitle_number="8" subtitle_name="Employee Stock Ownership Plan Preference Program"> <level label="a"> <text>A contractor that is awarded a contract for a covered procurement under this subtitle who fails to use apprentices from a registered apprenticeship program or interns from an eligible internship program as provided in the bid or proposal shall be liable for an amount as specified by the criteria established under § 14–804 of this subtitle.</text> </level> <level label="b"> <text>A unit shall report alleged violations of this subtitle to the Department as specified in the criteria established under § 14–804 of this subtitle.</text> </level> <level label="c"> <text>The Department shall report alleged violations of this subtitle to the Office of the Attorney General, which shall determine whether to bring a civil action against a person or business for a violation of this subtitle.</text> </level> <level label="d"> <text>Penalties shall be recoverable in civil actions and paid to the State Apprenticeship Training Fund established under § 17–602 of this article, unless otherwise required by federal law.</text> </level> <level label="e"> <text>The Secretary may file suit to enforce this subtitle in any court of competent jurisdiction.</text> </level> <level label="f"> <text>In an action filed under this section, the court shall require the contractor to pay the amount required by subsection (a) of this section, including interest, reasonable attorney’s fees, and court costs.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-901" title_number="14" title_name="Preferences" subtitle_number="9" subtitle_name="Good Labor Practices Evaluation Factor"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Commissioner” means the Commissioner of Labor and Industry.</text> </level> <level label="c"> <text>“Good labor practices evaluation factor” means a factor for good labor practices that will be used to evaluate technical proposals received for procurements being conducted through the competitive sealed proposals procurement method under § 13–104 of this article.</text> </level> <level label="d"> <text>“Public body” has the meaning stated in § 17–201 of this article.</text> </level> <level label="e"> <text>“Public work contract” has the meaning stated in § 17–201 of this article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-902" title_number="14" title_name="Preferences" subtitle_number="9" subtitle_name="Good Labor Practices Evaluation Factor"> <text>This subtitle applies to:</text> <level label="1"> <text>public work contracts procured by a public body; and</text> </level> <level label="2"> <text>a contract subject to § 18–102 of this article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-903" title_number="14" title_name="Preferences" subtitle_number="9" subtitle_name="Good Labor Practices Evaluation Factor"> <level label="a"> <text>To qualify for application of the good labor practices evaluation factor, a business must attest by affidavit that, on any contract subject to this subtitle that it is awarded or under which it performs any work, the business will:</text> <level label="1"> <text>directly employ, as W–2 employees, all workers performing tasks on behalf of the business, except for a person exempt under Title 3, Subtitle 9 of the Labor and Employment Article, under the contract;</text> </level> <level label="2"> <text>pay all workers by check or electronic means as available and not in cash or cash equivalent;</text> </level> <level label="3"> <text>strictly comply with all legal obligations as an employer, including its obligations as an employer under Title 3, Title 5, Title 8, or Title 9 of the Labor and Employment Article and, as applicable, under Title 17 or Title 18 of this article;</text> </level> <level label="4"> <text>provide advance written notification to the procurement authority and to the Maryland Department of Labor, Division of Labor and Industry, in a form to be determined by the Commissioner, of any subcontractors performing work under the contract;</text> </level> <level label="5"> <text>provide written notice of the requirements of items (1), (2), and (3) of this subsection to any subcontractors performing work under the contract;</text> </level> <level label="6"> <text>obtain written acknowledgment of the notice provided in item (5) of this subsection and of the subcontractor’s agreement to adhere to those requirements, to be filed with the Commissioner, in a form and manner determined by the Commissioner;</text> </level> <level label="7"> <text>successfully complete a comprehensive consultation visit by the Maryland Occupational Safety and Health Program within a reasonable time determined by the Commissioner, following the start of work under the contract;</text> </level> <level label="8"> <text>be jointly and severally liable as an employer for any violation of a subcontractor under Title 17 or Title 18 of this article in connection with the subcontractor’s performance of work under the contract;</text> </level> <level label="9"> <text>promptly disclose to the Commissioner, in a form and manner to be prescribed by the Commissioner, any suits, charges, demands, orders, findings, or adjudications made against it in connection with violations subject to item (1), (2), or (3) of this subsection or against any of its subcontractors as provided in item (8) of this subsection; and</text> </level> <level label="10"> <text>on contracts subject to § 18–102 of this article, provide proof that the business has secured a payment bond sufficient to ensure payment of wages to all employees performing work under the contract.</text> </level> </level> <level label="b"> <text>A procurement officer who receives a proposal for a competitive sealed proposal procurement that is submitted with the affidavit described under subsection (a) of this section shall evaluate the proposal with the good labor practices evaluation factor.</text> </level> <level label="c"> <text>The Commissioner shall:</text> <level label="1"> <text>maintain a list for the preceding 12 months of all businesses that have submitted the affidavit described under subsection (a) of this section, confirming adherence to good labor practices;</text> </level> <level label="2"> <text>provide the list in item (1) of this subsection to all procurement officers at least once every 6 months and on request; and</text> </level> <level label="3"> <text>publish the list in item (1) of this subsection on the Maryland Department of Labor’s public website.</text> </level> </level> <level label="d"> <text>If the Commissioner determines that a business is not following good labor practices, as described in subsection (a) of this section:</text> <level label="1"> <text>the Commissioner shall remove the business from the list maintained under subsection (c)(1) of this section; and</text> </level> <level label="2"> <text>the business may not be eligible for the good labor practices evaluation factor for 12 months following the determination made under this subsection.</text> </level> </level> <level label="e"> <text>The Chief Procurement Officer, in consultation with the Commissioner, may adopt regulations to implement the provisions of this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-904" title_number="14" title_name="Preferences" subtitle_number="9" subtitle_name="Good Labor Practices Evaluation Factor"> <level label="a"> <text>A good labor practices evaluation factor for good labor practices described in § 14–903(a) of this subtitle shall be included in the technical evaluation factors for competitive sealed proposals for a proposal submitted for a contract described in § 14–902 of this subtitle.</text> </level> <level label="b"> <text>The good labor practices evaluation factor shall be:</text> <level label="1"> <text>if a point system is used for evaluation of proposals, 10% of the total allocable technical points; or</text> </level> <level label="2"> <text>if a point system is not used for evaluation of proposals, ranked in its relative order of importance.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-905" title_number="14" title_name="Preferences" subtitle_number="9" subtitle_name="Good Labor Practices Evaluation Factor"> <level label="a"> <text>A person may not engage in conduct prohibited under § 14–605(a) or § 14–606 of this title in connection with any act undertaken to qualify for a good labor practices evaluation factor.</text> </level> <level label="b"> <text>The penalties established in §§ 14–605(b) and (c) and 14–606 of this title apply to violations of this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-906" title_number="14" title_name="Preferences" subtitle_number="9" subtitle_name="Good Labor Practices Evaluation Factor"> <text>In addition to the penalties established under § 14–905 of this subtitle, a person that willfully misrepresents or willfully omits any material matter in connection with an application or required disclosure for purposes of obtaining or retaining a contract or subcontract under this subtitle may be subject to:</text> <level label="1"> <text>suspension or debarment under Title 16 of this article; or</text> </level> <level label="2"> <text>civil penalties under the Maryland False Claims Act.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-1001" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025" title_number="14" title_name="Preferences" subtitle_number="10"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Covered procurement” means a procurement that is valued at less than $80,000,000.</text> </level> <level label="c"> <text>“ESOP evaluation factor” means a preference for an ESOP offeror that a unit may include in the evaluation of proposals.</text> </level> <level label="d"> <text>“ESOP offeror” means a responsible offeror who utilizes an employee stock ownership plan approved under § 401(a) of the Internal Revenue Code.</text> </level> <level label="e"> <text>“Unit” means the Maryland Stadium Authority, a university, or the Baltimore City Community College.</text> </level> <level label="f"> <text>“University” means Morgan State University or St. Mary’s College of Maryland.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-1002" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025" title_number="14" title_name="Preferences" subtitle_number="10"> <text>This subtitle applies to a covered procurement of:</text> <level label="1"> <text>the Maryland Stadium Authority;</text> </level> <level label="2"> <text>a university; or</text> </level> <level label="3"> <text>Baltimore City Community College.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-1003" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025" title_number="14" title_name="Preferences" subtitle_number="10"> <text>Subject to the approval of the Board, each unit may establish an evaluation factor, not to exceed 10%.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-1004" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025" title_number="14" title_name="Preferences" subtitle_number="10"> <level label="a"> <text>A unit may include an ESOP evaluation factor in the technical evaluation for a competitive sealed proposal under § 13–104 of this article for a contract subject to this subtitle.</text> </level> <level label="b"> <text>An ESOP evaluation factor may be:</text> <level label="1"> <text>if a point system is used for evaluation of proposals, up to the percentage of the total allocable technical points authorized under § 14–1003 of this subtitle; or</text> </level> <level label="2"> <text>if a point system is not used for evaluation of proposals, ranked in its relative order of importance.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-1005" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025" title_number="14" title_name="Preferences" subtitle_number="10"> <level label="a"> <text>A contractor that is awarded a contract for a covered procurement shall provide to a unit, as a condition of receiving the contract, written verification of the IRS determination letter for the contractor’s employee stock ownership plan.</text> </level> <level label="b"> <text>The written verification required under subsection (a) of this section shall be provided by a contractor to the unit responsible for the project with the submission of a proposal.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="14-1006" effective_note="EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025" title_number="14" title_name="Preferences" subtitle_number="10"> <text>On or before December 1, 2028, the Maryland Stadium Authority, Baltimore City Community College, Morgan State University, and St. Mary’s College of Maryland shall submit a report, in accordance with § 2–1257 of the State Government Article, to the Legislative Policy Committee, the Senate Budget and Taxation Committee, and the House Health and Government Operations Committee, on:</text> <level label="1"> <text>the number and dollar value of contracts awarded in accordance with this subtitle to ESOP offerors during fiscal years 2026, 2027, and 2028; and</text> </level> <level label="2"> <text>an evaluation of the effectiveness of the Employee Stock Ownership Plan Preference Program.</text> </level> </section>