In this section, “Department” means the Department of General Services. This section applies to a capital project that receives at least $3,000,000 in State funds in a single fiscal year and is funded in the annual State capital budget as: a miscellaneous grant program; a local House of Delegates initiative; or a local Senate initiative. Prior to the release of State funds for a capital project that meets the conditions of subsection (b) of this section, the Governor’s Office of Small, Minority, and Women Business Affairs shall: review the capital project for subcontracting opportunities under the provisions of Title 14, Subtitle 3 of this article; and if practicable, establish minority business enterprise subgoals for the capital project. In setting subgoals under this subsection, the Governor’s Office of Small, Minority, and Women Business Affairs shall consider the availability and capacity of minority business enterprises in Maryland and in the county where the project is located to fulfill the subgoal. If the Governor’s Office of Small, Minority, and Women Business Affairs establishes minority business enterprise subgoals for the capital project, the recipient of the State funds shall: certify to the Department that the recipient expects to achieve the subgoals; or request a waiver of all or part of the subgoals from the Governor’s Office of Small, Minority, and Women Business Affairs. The Governor’s Office of Small, Minority, and Women Business Affairs shall review a request for a waiver under paragraph (1)(ii) of this subsection and report the revised subgoals for the capital project to the Department. On or before July 31 each year, the Department shall submit an annual report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the number of waivers granted for capital projects that meet the conditions of subsection (b) of this section in the prior fiscal year. The report shall include: a description of the capital project; whether the waiver was a partial or full waiver; and the justification for the waiver.