Plain Text Law

Title 14. Preferences — Subtitle 6. Veteran-Owned Small Business Enterprise Participation

Statutes in effect as of October 1, 2026.

Md. Code Ann., State Fin. & Proc. § 14-601 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–601Copy Citation

(a)
In this subtitle the following words have the meanings indicated.
(b)
“Veteran” means an individual who is verified to be a veteran, as defined in § 9–901 of the State Government Article.
(c)
“Veteran–owned small business enterprise” means a for–profit business that:
(1)
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
(2)
is at least 51% owned by one or more individuals who:
(i)
are veterans; and
(ii)
control the management and daily operations of the business.
Md. Code Ann., State Fin. & Proc. § 14-602 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–602Copy Citation

(a)
(1)
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.
(2)
The Office of Small, Minority, and Women Business Affairs shall adopt regulations that establish the overall percentage goal.
(b)
(1)
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:
(i)
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
(ii)
the availability of veteran–owned small business enterprises to respond competitively to the potential contracting opportunities.
(2)
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.
(c)
(1)
(i)
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.
(ii)
(1)
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.
(2)
A determination under subsubparagraph 1 of this subparagraph shall be made in consultation with the unit’s veteran–owned small business enterprise liaison.
(3)
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.
(2)
(i)
Subject to subparagraph (ii) of this paragraph, a unit may consider modifying the veteran–owned small business participation goal on a procurement contract:
(1)
at any time prior to contract execution; or
(2)
after contract execution, when determined to be in the best interest of the State.
(ii)
Before a unit may consider modifying a veteran–owned small business participation goal under subparagraph (i) of this paragraph, the unit shall:
(1)
make a determination that there has been a change in the factors established under subsection (b) of this section;
(2)
use the factors established under subsection (b) of this section to determine the percentage modification to the veteran–owned small business participation goal; and
(3)
obtain the agreement of the contractor, including any reasonable pricing considerations.
(3)
The veteran–owned small business enterprise participation schedule, including any amendment, shall be attached to and made a part of the executed contract.
(4)
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:
(i)
it is in the best interest of the State;
(ii)
it is approved by the head of the unit; and
(iii)
the contract is amended.
(d)
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.
Md. Code Ann., State Fin. & Proc. § 14-602.1 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–602.1Copy Citation

(a)
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.
(b)
(1)
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.
(2)
This section does not apply to:
(i)
procurements made under Subtitle 1 of this title; or
(ii)
procurements involving expenditures of federal dollars, to the extent that the requirements in this section conflict with federal law or other grant provisions.
(c)
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.
(d)
The Governor’s Office of Small, Minority, and Women Business Affairs shall:
(1)
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;
(2)
establish guidelines for veteran–owned small business reserve program administration; and
(3)
collect data regarding the Department of Veterans and Military Families’ and the Military Department’s use of veteran–owned small business reserve vendors.
Md. Code Ann., State Fin. & Proc. § 14-603 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–603Copy Citation

(a)
For procurements conducted by competitive sealed bidding, a unit shall award the contract to the responsible bidder that submits the responsive bid that:
(1)
(i)
has the lowest bid price;
(ii)
has the lowest evaluated bid price; or
(iii)
for procurements subject to § 11–202(3) of this article, is the bid most favorable to the State; and
(2)
meets or makes a good faith effort to meet any applicable overall percentage goal established under this subtitle.
(b)
For procurements conducted by competitive sealed proposals, a unit shall award the contract to the responsible offeror:
(1)
proposing the most advantageous offer; and
(2)
that meets or makes a good faith effort to meet any applicable overall percentage goal established under this subtitle.
Md. Code Ann., State Fin. & Proc. § 14-604 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–604Copy Citation

(a)
The Office of Small, Minority, and Women Business Affairs shall:
(1)
adopt regulations to implement this subtitle;
(2)
establish procedures for tracking and reporting participation of veteran–owned small business enterprises under this subtitle; and
(3)
on or before the 5th day of a regular legislative session of each year, report to the Legislative Policy Committee on:
(i)
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
(ii)
an evaluation of the effectiveness of the program under this subtitle.
(b)
(1)
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:
(i)
the information required under subsection (a)(3)(i) of this section; and
(ii)
any other information requested by the Office.
(2)
A report submitted under this subsection may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.
Md. Code Ann., State Fin. & Proc. § 14-604.1 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–604.1Copy Citation

(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Advisory Committee” means the Advisory Committee on Veteran–Owned Small Business Enterprises.
(3)
“Office” means the Office of Small, Minority, and Women Business Affairs.
(4)
“Special Secretary” means the Special Secretary for the Office.
(b)
The Office shall establish an Advisory Committee on Veteran–Owned Small Business Enterprises.
(c)
The Special Secretary shall be Chair of the Advisory Committee and the Office shall provide staff support.
(d)
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:
(1)
the Department of Commerce;
(2)
the Department of General Services;
(3)
the Governor’s Office of Performance Improvement;
(4)
the Department of Veterans and Military Families; and
(5)
certified veteran–owned small business enterprises.
(e)
The Advisory Committee shall meet at least two times each year.
(f)
The Advisory Committee shall:
(1)
review the annual report and evaluation submitted to the Legislative Policy Committee in accordance with § 14–604 of this subtitle to:
(i)
identify any areas of the program that need improvement; and
(ii)
recommend possible actions that may achieve the necessary improvements; and
(2)
ensure that a continuous oversight and improvement structure exists for the program.
Md. Code Ann., State Fin. & Proc. § 14-605 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–605Copy Citation

(a)
A person may not:
(1)
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;
(2)
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;
(3)
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;
(4)
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;
(5)
willfully and knowingly fail to file any declaration or notice with the unit that is required by this subtitle; or
(6)
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.
(b)
(1)
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.
(2)
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:
(i)
for the first offense, liable for a civil penalty of not less than $10,000 and not exceeding $30,000; and
(ii)
for a subsequent offense, liable for a civil penalty of not less than $30,000 and not exceeding $50,000.
(3)
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.
(c)
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.
(d)
(1)
A unit shall report all alleged violations of this section to the Board.
(2)
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.
Md. Code Ann., State Fin. & Proc. § 14-606 (2026)
Title 14. Preferences
Subtitle 6. Veteran-Owned Small Business Enterprise Participation

§ 14–606Copy Citation

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:
(1)
suspension or debarment under Title 16 of this article; or
(2)
civil penalties under the Maryland False Claims Act under Title 8 of the General Provisions Article.