Maryland State Statutes - Maryland Attorney Directory

(a) In this section, "minority business enterprise" means any legal entity that is organized to engage in commercial transactions and at least 51 percent owned and controlled by 1 or more individuals who are members of a group that is:

(1) Disadvantaged socially or economically by the effects of past discrimination, including discrimination as to certification; and

(2) Identified by a study conducted in accordance with this section or a similar study previously conducted.

(b) By resolution and implementing rules and regulations, the WSSC shall establish a minority business utilization program to facilitate the participation of responsible certified minority business enterprises in contracts awarded by the WSSC for goods and services not covered by § 3-102 of this article if:

(1) The WSSC determines that minority business enterprises are underrepresented in the award of these contracts due to the effects of past discrimination; and

(2) The WSSC determines that such a program is necessary to remedy the effects of past discrimination against minority business enterprises in contracting with the WSSC.

(c) The rules and regulations that establish the program under subsection (b) of this section shall include provisions that:

(1) Recognize the certification of minority business enterprises by the State certification agency designated under § 14-303(b) of the State Finance and Procurement Article;

(2) Recognize any other certification program that in the judgment of the WSSC substantially duplicates the requirements of the State certification agency;

(3) Provide for minority business participation through subcontracting;

(4) Except as provided in paragraph (5) of this subsection, provide for a system of granting a preference of up to the lesser of 5% or $50,000 to minority business enterprises in evaluating bids and proposals;

(5) (i) Subject to the provisions of subparagraphs (ii), (iii), and (iv) of this paragraph, establish a sheltered market program in which bidding on procurement contracts designated by the WSSC as appropriate is restricted to certified minority business enterprises;

(ii) The sheltered market program under this paragraph may not be utilized until all less restrictive remedies under this subsection and race-neutral remedies such as assistance with bonding requirements, financing, or bidding procedures for small firms have been used and found to be ineffective;

(iii) Upon the bid of at least 3 certified minority business contractors, a contract shall be awarded under this paragraph to the lowest of those bidders; and

(iv) If fewer than 3 certified minority business enterprises bid on a contract under this paragraph, the contract shall be awarded under the general provisions of paragraph (4) of this subsection;

(6) Provide for the graduation of a minority business enterprise from the program if the WSSC determines that the minority business enterprise no longer requires the assistance or benefits offered by the program;

(7) Require the solicitation document accompanying each solicitation to set forth the rules and regulations of the minority business utilization program;

(8) Require the geographic location and the principal place of business of the minority business enterprise to be a consideration for participation in this program. Montgomery County businesses and Prince George's County businesses shall each have a targeted percentage of at least 40% of any contracts;

(9) Provide for the WSSC to refuse to recognize the certification of any business found to be in violation of the purposes of the program and to permanently bar any active principals of a violating business from future participation in the program; and

(10) Permit the waiver of all or part of the provisions of the program for a specific contract if the WSSC determines that the application of the program to the contract conflicts with the WSSC's overall objectives and responsibilities, and provide for the WSSC to report annually to the Montgomery County and Prince George's County House and Senate Delegations on those waivers.

(d) Before accepting a certification program under subsection (c)(2) of this section, the WSSC shall examine the program to ensure that:

(1) It adheres to the guidelines set forth in § 3-102(f)(4) of this article; and

(2) The principal owner of an eligible minority business enterprise is in not more than 1 certified business that is participating in the WSSC minority business enterprise program under this section.

(e) (1) The WSSC may conduct any fact-finding study in connection with a minority business enterprise program for consistency with applicable law.

(2) The WSSC shall report the findings of any review completed under this paragraph to the Montgomery County and Prince George's County Delegations to the General Assembly.

(f) By September 15 of each year, the WSSC shall issue a report concerning the implementation and administration of the minority business enterprise program for the fiscal year ending on the preceding June 30, and appropriate recommendations concerning the program, to the Montgomery County and Prince George's County Senate and House Delegations to the Maryland General Assembly.

(g) The provisions of this section shall be void and may not be enforced after July 1, 2006.

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