# State Finance and Procurement (GSF)

## Title 14. Preferences

### Subtitle 1. Preferences to Benefit Disadvantaged Individuals

#### Section 14-101

(a) In this subtitle the following words have the meanings indicated.

(b) "Community service provider" means an entity that:

  (1) is organized under the laws of the United States or this State;

  (2) is accredited by the Division of Rehabilitation Services of the State Department of Education for participation in the Employment Works Program;

  (3) is operated in the interest of individuals who have a mental or physical disability, including blindness, that:

    (i) constitutes a substantial barrier to employment; and

    (ii) prevents the individual from engaging in competitive employment; and

  (4) does not inure net income wholly or partly to the benefit of any shareholder or other individual.

(c) "Individual with disability owned business" means a business:

  (1) that is organized under the laws of the United States or the State;

  (2) 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;

  (3) whose majority owner or owners are directly and significantly engaged in the daily operation of the business;

  (4) 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;

  (5) 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

  (6) that continues to meet all other eligibility criteria established by the Pricing and Selection Committee for the Employment Works Program.

(d) "Preferred provider" means a provider of supplies or services given preference in Sec. 14-103 of this subtitle.

(e) "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.

#### Section 14-102

(a) Notwithstanding any other provision of this Division II, a State or State aided or controlled entity shall buy supplies and services in accordance with Sec. 14-103 of this subtitle.

(b) The procurement of services from the Employment Works Program or an Employment Works Program vendor is not subject to the cost savings requirements of Sec. 13-405 of the State Personnel and Pensions Article.

#### Section 14-103

(a) A State or State aided or controlled entity shall buy supplies and services from:

  (1) Maryland Correctional Enterprises, as provided in Title 3, Subtitle 5 of the Correctional Services Article, if Maryland Correctional Enterprises provides the supplies or services;

  (2) Blind Industries and Services of Maryland, if:

    (i) Blind Industries and Services of Maryland provides the supplies or services; and

    (ii) Maryland Correctional Enterprises does not provide the supplies or services; or

  (3) the Employment Works Program established under Sec. 14-108 of this subtitle, if:

    (i) a community service provider or an individual with disability owned business provides the supplies or services;

    (ii) neither Maryland Correctional Enterprises nor Blind Industries and Services of Maryland provides the supplies or services; and

    (iii) 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.

(b) 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.

(c) 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.

(d)

  (1) 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:

    (i) the price of the needed supplies and services is at least 10% above market rates for similar supplies and services; or

    (ii) the time at which the needed supplies and services would be delivered does not meet the entity's needs.

  (2) The Department of General Services shall adopt regulations to implement this subsection.

#### Section 14-106

(a) In this section, "Committee" means the Pricing and Selection Committee for Preferred Providers.

(b) There is a Pricing and Selection Committee for Preferred Providers.

(c) The Committee consists of the following 6 members:

  (1) the Secretary of Transportation or a designee;

  (2) the Chief Procurement Officer or a designee;

  (3) the Secretary of Public Safety and Correctional Services or a designee;

  (4) the Assistant Secretary for Vocational Rehabilitation within the State Department of Education or a designee;

  (5) the Secretary of Labor or a designee; and

  (6) the Special Secretary for the Office of Small, Minority, and Women Business Affairs or a designee.

(d) A member of the Committee:

  (1) may not receive compensation; but

  (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.

(e)

  (1) Blind Industries and Services of Maryland shall provide staff for the Committee.

  (2) The staff provided in accordance with paragraph (1) of this subsection shall:

    (i) be a blind or a visually impaired associate of Blind Industries and Services of Maryland; and

    (ii) complete work related to the duties of the Committee regarding Blind Industries and Services of Maryland under the supervision and direction of the Committee.

(f) The Committee shall:

  (1) 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;

  (2) 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;

  (3) review and verify the prevailing average market prices, as proposed by Maryland Correctional Enterprises:

    (i) when changes are made to the pricing of existing supplies and services that are available from Maryland Correctional Enterprises; and

    (ii) for new supplies or services that Maryland Correctional Enterprises intends to make available;

  (4) establish procedures to govern procurement of supplies, services, and other sales from Employment Works Program community service providers and individual with disability owned businesses;

  (5) 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;

  (6) 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;

  (7) 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;

  (8) 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;

  (9) 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;

  (10) 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

  (11) review a request submitted from and may grant a waiver to the State or a State-aided or controlled entity in accordance with Sec. 14-103(d)(1) of this subtitle.

(g) In addition to the duties specified under subsection (f) of this section, the Committee shall:

  (1) establish and periodically review eligibility policies or guidelines for participating community service providers and individual with disability owned businesses;

  (2) maintain a current list of community service providers and individual with disability owned businesses;

  (3) periodically review and revise its list of community service providers and individual with disability owned businesses; and

  (4) 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.

#### Section 14-107

The Pricing and Selection Committee for Preferred Providers shall:

(1)

  (i) maintain a current list of supplies and services that Blind Industries and Services of Maryland provides;

  (ii) maintain a current list of supplies, services, and other sales that community service providers and individual with disability owned businesses provide; and

  (iii) maintain a current list of supplies and services that Maryland Correctional Enterprises provides;

(2) periodically review and revise the lists of supplies, services, and other sales maintained in accordance with item (1) of this section; and

(3) 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.

#### Section 14-108

(a) In this section, "Program" means the Employment Works Program.

(b) There is an Employment Works Program in the Governor's Office of Small, Minority, and Women Business Affairs.

(c) 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.

(d) The coordinating entity designated under subsection (c) of this section shall:

  (1) identify potential contracts for supplies and services eligible for procurement;

  (2) establish procedures for the selection of community service providers to perform under potentially eligible contracts for preference procurement;

  (3) establish procedures for remediation of noncompliance with State or Program policies;

  (4) provide training and technical assistance to participating community service providers;

  (5) conduct cost analyses and market research for submission and review by the Pricing and Selection Committee for the Program;

  (6) provide staff support for the Pricing and Selection Committee for the Program; and

  (7) serve as a monitoring agent to ensure that high quality standards are met and maintained by the Program and its participating community service providers.

#### Section 14-109

(a)

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

  (2) "Blind person" means a person who is:

    (i) blind; and

    (ii) licensed by the Division under the federal acts.

  (3) "Division" means the Division of Rehabilitation Services in the Department of Education.

  (4) "Program" means the Maryland Business Enterprise Program for the Blind.

  (5) "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.

  (6) "Vending machine" means a currency-operated machine that dispenses products or services.

  (7) "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.

(b) There is a Maryland Business Enterprise Program for the Blind in the Division.

(c)

  (1) 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.

  (2) 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:

    (i) the first expiration of a contract between the operator of the vending facility and the Department of General Services; or

    (ii) June 1, 1994.

(d)

  (1) The Division and the Department of General Services shall adopt regulations for:

    (i) the operation and maintenance of a vending facility by the Program; and

    (ii) the protection of State property.

  (2) 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.

  (3)

    (i) 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.

    (ii) 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.

#### Section 14-110

(a) Notwithstanding any other provision of law, subsections (b) and (c) of this section apply to:

  (1) a State or State aided or controlled entity that is:

    (i) subject to the requirements of Sec. 14-103 of this subtitle and Sec. 14-305 of this title; or

    (ii) identified by the Department of General Services; and

  (2) the University System of Maryland, St. Mary's College of Maryland, and Morgan State University.

(b)

  (1) 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 Sec. 14-103 of this subtitle in the next fiscal year.

  (2) The forecast required by paragraph (1) of this subsection shall include activities planned to increase the number of contracts awarded under Sec. 14-103 of this subtitle.

(c)

  (1) 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.

  (2) For the preceding fiscal year, the report shall include:

    (i) the total number and the dollar value of contracts awarded by the State or State aided or controlled entity to a preferred provider;

    (ii) 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;

    (iii) 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;

    (iv) 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;

    (v) the percentage that the contracts to preferred providers represent of the total number of procurement contracts;

    (vi) the percentage that the payments to preferred providers represent of the total value of payments; and

    (vii) any other information required by the Department of General Services.

(d)

  (1) Within 90 days after the end of each fiscal year, a preferred provider awarded a contract in accordance with Sec. 14-103 of this subtitle shall report to the Department of General Services in accordance with paragraphs (2) and (3) of this subsection.

  (2) 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.

  (3) For the preceding fiscal year, Maryland Correctional Enterprises shall report the length of time between each order and delivery of supplies and services.

(e) 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:

  (1) the Board of Public Works; and

  (2) in accordance with Sec. 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.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)