In this subtitle the following words have the meanings indicated. “Covered procurement” means a procurement that is valued at less than $80,000,000. “ESOP evaluation factor” means a preference for an ESOP offeror that a unit may include in the evaluation of proposals. “ESOP offeror” means a responsible offeror who utilizes an employee stock ownership plan approved under § 401(a) of the Internal Revenue Code. “Unit” means the Maryland Stadium Authority, a university, or the Baltimore City Community College. “University” means Morgan State University or St. Mary’s College of Maryland.

This subtitle applies to a covered procurement of: the Maryland Stadium Authority; a university; or Baltimore City Community College.

Subject to the approval of the Board, each unit may establish an evaluation factor, not to exceed 10%.

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. An ESOP evaluation factor may be: 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 if a point system is not used for evaluation of proposals, ranked in its relative order of importance.

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. 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.

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: the number and dollar value of contracts awarded in accordance with this subtitle to ESOP offerors during fiscal years 2026, 2027, and 2028; and an evaluation of the effectiveness of the Employee Stock Ownership Plan Preference Program.