In this subtitle the following words have the meanings indicated. “Department” means the Department of Social and Economic Mobility. “Secretary” means the Secretary of Social and Economic Mobility. “Unit of State government” or “unit” means an agency or unit of the Executive Branch of State government.

There is a Department of Social and Economic Mobility, established as a principal department of the State government. The head of the Department is the Secretary of Social and Economic Mobility, who shall be appointed by the Governor with the advice and consent of the Senate. The Secretary serves at the pleasure of the Governor. The following units are in the Department: the Office of Minority Business Enterprises; the Office of Small, Minority, and Women Business Affairs; and the Office of Social Equity. The Department shall employ staff to carry out its duties as provided in the State budget.

The purpose of the Department is to: provide support for units of State government, individuals, and businesses for the maintenance of social equity policies in the State; monitor trends in social equity programs and policies across the nation; propose new and innovative approaches to social equity programs; compile and produce reports and recommendations related to social equity; ensure the fulfillment of the roles and responsibilities of the entities and social equity programs in the State for which it is the successor; track the performance of social equity programs and small or disadvantaged business assistance programs; promote and encourage full participation in the regulated cannabis industry by individuals from communities that have previously been disproportionately impacted by the war on drugs in order to positively impact those communities and other duties assigned to the Office of Social Equity established under this subtitle; support small or disadvantaged businesses in the State through all duties assigned to the Governor’s Office of Small, Minority, and Women Business Affairs; and carry out the duties of the Office of Minority Business Enterprises within the Maryland Department of Transportation, including duties assigned to support small or disadvantaged businesses. The Department shall: connect a person with programs in State, federal, and local government that serve designated populations to ensure the person is connected to programs and other opportunities the person is eligible for; provide units of State government with assistance related to the purpose of the Department by: facilitating information sharing between units; maintaining an inventory of social equity work performed by each unit and relevant reports from those units; conducting policy analyses on social equity and the effectiveness of social equity programs; adopting standards for units to promote social equity; and providing technical assistance to units; and adopt regulations to carry out this subtitle.

A unit of State government other than the Department shall: ensure that a person that interacts with the unit’s program for designated populations is connected with all State programs for which the person may be eligible by referring the person to the Department; and utilize standards set by the Department related to social equity.

On or before December 1, 2026, and each year thereafter, the Department shall report to the Governor and, in accordance with § 2–1257 of this article, the General Assembly on: the work of the Department in the immediately preceding year; and recommended changes to laws or policies to promote social equity.

The Attorney General is legal adviser to the Department. The Attorney General shall assign to the Department the number of assistant Attorneys General authorized by law to be assigned to the Department and any additional assistant Attorneys General necessary to give effective legal advice and counsel. The Attorney General also shall designate an assistant Attorney General as counsel to the Department.

In this section, “Fund” means the Department of Social and Economic Mobility Special Fund. There is a Department of Social and Economic Mobility Special Fund. The purpose of the Fund is to pay the costs of the operation of: the Office of Social Equity; and the Office of Minority Business Enterprises. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article; money appropriated in the State budget to the Fund; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. The Governor shall include in the annual budget bill an appropriation from the Transportation Trust Fund to the Fund equal to the amount necessary to defray the operations and administrative expenses of the Office of Minority Business Enterprises. The Fund may be used only for paying the costs of the operation and administrative expenses of: the Office of Social Equity; and the Office of Minority Business Enterprises. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. Money expended from the Fund for the Office of Social Equity or the Office of Minority Business Enterprises is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Office of Social Equity or the Office of Minority Business Enterprises.

There is an Office of Social Equity within the Department. The Governor shall appoint an Executive Director of the Office of Social Equity. The Executive Director of the Office of Social Equity shall have at least 5 years of experience in civil rights advocacy, civil rights litigation, or another area of social justice. The Office of Social Equity may employ staff and retain contractors as may be required to carry out the functions of the Office. The Office of Social Equity shall: promote and encourage full participation in the regulated cannabis industry by people from communities that have previously been disproportionately impacted by the war on drugs in order to positively impact those communities; with the assistance of the Comptroller, oversee the Community Reinvestment and Repair Fund under § 1–3A–03 of the Alcoholic Beverages and Cannabis Article; consult with and assist the Department of Commerce in the administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic Development Article; identify and oppose regulations that unnecessarily burden or undermine the legislative intent of the Office, including regulations that impose undue restrictions or financial requirements; oversee the appropriation of funds and the training of recipients of funds from the Community Reinvestment and Repair Fund under § 1–3A–03 of the Alcoholic Beverages and Cannabis Article; provide recommendations to the Maryland Cannabis Administration on regulations related to: diversity; and social equity applications; work with the Maryland Cannabis Administration to implement free technical assistance for social equity and minority cannabis business applicants; produce reports and recommendations on diversity and equity in ownership, management, and employment in the legal cannabis economy; and assist businesses with obtaining financing through the Capital Access Program under Title 36, Subtitle 14 of the Alcoholic Beverages and Cannabis Article.

In this part the following words have the meanings indicated. “Governor’s Subcabinet” means the Governor’s Subcabinet on Socioeconomic Procurement Participation. “Minority person” means: an individual who has been deprived of the opportunity to develop and keep a competitive position in the economy because of a social or economic disadvantage that arises from cultural, racial, or other similar causes; or a sheltered workshop for individuals with disabilities. “Minority person” includes: an Aleut; an American Indian; a Black; an Eskimo; a Hispanic; an Oriental; a Puerto Rican; or a woman. “Office” means the Office of Small, Minority, and Women Business Affairs. “Special Secretary” means the Special Secretary for the Office of Small, Minority, and Women Business Affairs.

There is an Office of Small, Minority, and Women Business Affairs in the Department.

The head of the Office of Small, Minority, and Women Business Affairs is the Special Secretary, who shall be appointed by and serves at the pleasure of the Governor. The Special Secretary shall receive the salary provided in the State budget.

There is a Governor’s Subcabinet on Socioeconomic Procurement Participation. The Governor’s Subcabinet is composed of: the Secretary of Social and Economic Mobility, who shall serve as chair of the Subcabinet; the Secretary of Budget and Management, or the Secretary’s designee; the Secretary of Commerce, or the Secretary’s designee; the Secretary of General Services, or the Secretary’s designee; the Secretary of Health, or the Secretary’s designee; the Secretary of Housing and Community Development, or the Secretary’s designee; the Secretary of Human Services, or the Secretary’s designee; the Secretary of Information Technology, or the Secretary’s designee; the Secretary of Labor, or the Secretary’s designee; the Secretary of Public Safety and Correctional Services, or the Secretary’s designee; the Secretary of Transportation, or the Secretary’s designee; the Secretary of Veterans and Military Families, or the Secretary’s Designee; the Chief Procurement Officer for the State, or the Chief Procurement Officer’s designee; the Minority Business Enterprise Ombudsman, or the Ombudsman’s designee; and any other head of a department or agency that is accountable to the Governor, as deemed necessary by the Governor. The Governor’s Subcabinet shall: meet: a minimum of once each quarter; and at a frequency deemed appropriate by the chair; study socioeconomic procurement programs in other states to identify successes and best practices; develop accountability measures for procurement forecasts, strategic plans, Procurement Review Group processes, and liaison officer accountability; work with the Office of State Procurement to implement process improvements that directly impact socioeconomic procurement businesses’ ability to fairly compete for and understand State contracting opportunities; identify and recommend statutory and regulatory reforms to strengthen and improve the State’s socioeconomic procurement programs; and recommend actions to make improvements to the Small Business Reserve Program, the Minority Business Enterprise Program, and the Veteran Small Business Enterprise Program. On or before December 31, 2025, and each December 1 thereafter, the Governor’s Subcabinet shall report to the Governor on the Governor’s Subcabinet’s activities, progress, and recommendations.

In addition to any duties set forth elsewhere, the Office shall conduct necessary and appropriate research to determine the nature and extent of the problems concerning black males and offer recommendations exclusively pertinent to black males in the areas of: unemployment; criminal justice; education; and health. As authorized by the Governor, the Special Secretary may create an Advisory Committee on Black Males to assist and advise the Office in developing recommendations in accordance with subsection (a) of this section. The Office shall submit its findings and recommendations in accordance with this section to the Governor and, subject to § 2–1257 of this article, the General Assembly on or before January 1, 1995 and annually thereafter.

In this section, “Ombudsman” means the Minority Business Enterprise Ombudsman in the Office. There is a Minority Business Enterprise Ombudsman appointed by the Special Secretary. In accordance with the State budget, the Special Secretary shall allocate the staff and Office resources to the Ombudsman necessary for the Ombudsman to fulfill the duties of the Ombudsman. The Ombudsman shall: assist the procurement officer managing the contract in attempts to resolve disputes between minority business enterprises and prime contractors, including disputes over contract scope and payments; serve as a resource to minority business enterprise liaisons, procurement officers in units of State government, prime contractors, and minority business enterprises in resolving disputes related to contracts that include a minority business enterprise participation goal; and conduct trainings for procurement officers in units of State government on enforcement of the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article, including the assessment of liquidated damages under § 14–303(b)(6) of the State Finance and Procurement Article. In resolving a dispute under subsection (d) of this section, the Ombudsman may: compel prime contractors and minority business enterprises to provide documentation related to contract performance and payments; and assist the procurement officer managing the contract in ordering any relevant payments to be made in conjunction with a dispute resolution. Except as provided in paragraph (2) of this subsection, when resolving a dispute under subsection (d) of this section, the Ombudsman may not disclose information received from a unit of State government, prime contractor, or minority business enterprise without the written consent of the party from whom the information was obtained. The Ombudsman may disclose information received under this section to the assistant Attorney General assigned to the Office.

Subject to the limitations of any law that governs the activities of other units of the Executive Branch of the State government, the Special Secretary shall: advise the Governor on: the activities of the State government that are intended to promote: the employment of minority persons in the State; and State contracting opportunities available to and the accessibility of those contracting opportunities to companies owned by minority persons, small businesses, and veteran–owned small businesses; and each other matter that affects the rights and interests of minority persons, small businesses, and veteran–owned small businesses and the communities in which they live, work, and provide employment opportunities to others; and as authorized by the Governor: provide help to minority persons, small businesses, and veteran–owned small businesses and the communities in which they live, work, and employ others; represent the Governor in any matter that relates to minority persons, small businesses, and veteran–owned small businesses or generally to the promotion of equality among the people of the State; and perform any other responsibility that the Governor assigns.

In this section the following words have the meanings indicated. “Primary procurement unit” has the meaning stated in § 11–101 of the State Finance and Procurement Article. “Small business” has the meaning stated in § 14–501 of the State Finance and Procurement Article. The Office shall consult with each primary procurement unit to identify potential contracting opportunities for and increase outreach efforts to small businesses. The Office, in consultation with primary procurement units, shall: identify and increase awareness of procurement opportunities for small businesses for services and supplies; and assist small businesses with procedures for bidding on a procurement contract or responding to a request for proposals.

This section applies to the following minority business enterprises: a publicly owned business if 1 or more minority persons own at least 51% of the stock of the business; or any other business if 1 or more minority persons own at least 50% of the business. Subject to the limitations of any law that governs the activities of other units of the Executive Branch of the State government, the Special Secretary shall: carry out each State or federal program that is created to promote the growth of or participation in minority business enterprises; promote and coordinate training regarding the requirements of the Minority Business Enterprise Program; promote, coordinate, and participate in the plans, programs, and operations of the State government that promote or otherwise affect the establishment, preservation, and strengthening of minority business enterprises; promote activities and the use of the resources of the State government, local governments, and private entities for the growth of minority business enterprises; coordinate the effort of private entities and public agencies to develop minority business enterprises; establish a system to develop, collect, summarize, and give out information that would help a person to: establish a minority business enterprise; operate a minority business enterprise successfully; or promote the establishment and successful operation of minority business enterprises; establish a mentoring program: in which larger and more established minority businesses can mentor start–up and small minority businesses; and that incentivizes mentor participation by providing benefits to mentors, including: special recognition on the Office website, and in the Office newsletter and participation updates; a certificate of participation awarded by the Office; the opportunity to present highlights of mentor and protege relationships at an annual appreciation event sponsored by the Office; and increased networking and educational opportunities; conduct a feasibility study for creating a technical assistance program in the Office that provides one–on–one assistance to minority businesses in submitting competitive and successful bids and proposals for procurement contracts; provide training and educational opportunities for nonminority prime contractors regarding the duties and responsibilities of a prime contractor with respect to minority businesses; and subject to the limitations of law and the availability of funds: provide technical and managerial assistance to minority business enterprises; provide the managerial and organizational framework for private entities and units of the State government to plan and carry out joint undertakings that relate to minority business enterprises; pay, wholly or partly, the costs of a pilot or demonstration project that is intended to overcome the special problems of minority business enterprises; and establish an annual awards program to recognize localities that demonstrate the highest excellence in minority business enterprise support.

On or before the 15th day of each regular session of the General Assembly, the Special Secretary shall send an annual report on the Office of Small, Minority, and Women Business Affairs: to the Governor; and subject to § 2–1257 of this article, to the General Assembly. The annual report may be prepared in conjunction with the report required under § 14–305(b) of the State Finance and Procurement Article.

The Office shall develop a scorecard to evaluate units of State government on the units’ performance toward meeting: the minority business enterprise participation goal established under § 14–302 of the State Finance and Procurement Article; and the veteran–owned small business enterprise goal established under § 14–602 of the State Finance and Procurement Article. The scorecard shall include a grading scale developed by the Office as a weighted system that includes each unit’s contribution toward meeting the statewide: minority business enterprise participation goal; and veteran–owned small business enterprise goal. The Office shall publish the grades achieved by each unit under this section each year on the Office’s website. Within 30 days of publishing information on its website in accordance with paragraph (1) of this subsection, the Office shall submit the information published on its website to the General Assembly, in accordance with § 2–1257 of this article.

On or before June 30 each year, each unit shall submit to the Office a procurement forecast for all procurement contracts over $100,000 for the upcoming fiscal year. On or before August 15 each year, each unit shall submit annually the unit’s reconciliation of the prior fiscal year’s procurement forecast to include: the status of the forecasted procurements; the total number of forecasted contracts that have been awarded; and the total number of procurements that have been awarded but were unanticipated by the unit’s prior fiscal year’s procurement forecast. Each unit shall notify the Office within 15 days of any updates to the existing forecast, including: additional procurements forecasted for the current fiscal year; and any previously forecasted procurements that are no longer anticipated to occur during the fiscal year. The Office shall publish the information provided by each unit on the Office’s website.