In this subtitle the following words have the meanings indicated. “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. “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. “Small business” means a business that meets the qualifications established under § 14–203 of this subtitle. “Small business preference” means a purchase request for which bids are invited from a list of qualified bidders that includes small businesses. “Veteran” means a veteran as defined in 38 U.S.C. § 101(2) who is domiciled in Maryland. “Veteran–owned small business” means a small business that is at least 51% owned and controlled by one or more individuals who are veterans.

This subtitle applies to procurement of supplies, services, and construction related services by any unit or agency of the Executive Branch of State government. For procurements in connection with the construction of a State correctional facility, the Department of Public Safety and Correctional Services shall: apply the percentage price preferences established by the Department of General Services under this subtitle; and follow the same procedures established by the Department of General Services to comply with this subtitle.

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. The criteria for qualification as a small business may vary among industries to reflect their particular characteristics. 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. 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: 250 or fewer employees; or average annual gross receipts of $10,000,000 or less averaged over its most recently completed 3 fiscal years.

The Special Secretary for 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 small businesses; 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; helping small businesses to comply with the procedures for bidding on procurement contracts; 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; bidding for a procurement contract designated for a small business preference; simplifying procurement specifications and terms, to increase the opportunities for small business participation; investigating the responsibility of bidders on small business preferences; and explaining to a small business the reason for which its bid for a small business preference was rejected.

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.

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: exceed the lowest bid; and be awarded a procurement contract under this subtitle. Subject to the approval of the Board, each unit: shall establish a percentage preference, not to exceed 8%, for each industry as follows: a base percentage preference not to exceed 5% for all small businesses; and two additional preferences to the percentage preference set forth in item (i) of this paragraph as follows: 2% for veteran–owned small businesses; and 3% for disabled veteran–owned small businesses; and may vary the percentage preference determined in item (1)(i) of this subsection among industries to account for their particular characteristics.

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. 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. A unit shall award a procurement contract designated for a small business preference to the small business that: is a responsible bidder; and 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.