§ 19-106

382 words·~2 min read·/md/business-regulation/19-106

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

§19–106.

(1)In this section the following words have the meanings indicated.

(2)“Entity” means:

(i)a commercial enterprise or business that is in good

standing with the State Department of Assessments and Taxation and is:

1. incorporated in the State; or

2. registered to do business in the State; or

(ii)a corporation, foundation, school, hospital, or other legal entity for which none of the net earnings inure to the benefit of any private shareholder or individual holding an interest in the entity.

(3)“State benefit” means:

(i)State capital grant funding totaling $1,000,000 or

more in a single fiscal year;

(ii)State tax credits totaling $1,000,000 or more in a single fiscal year; or

(iii)the receipt of a State contract with a total value of $1,000,000 or more.

(4)“State contract” means a contract that:

(i)resulted from a competitive procurement process; and

(ii)is not federally funded in any way.

(5)“Underrepresented community” means a community whose members self–identify:

(i)as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or

(ii)with one or more of the racial or ethnic groups listed in item

(i)of this paragraph.

(b)This section does not apply to:

(1)a sole proprietor;

(2)a limited liability company owned by a single member;

(3)a privately held company if at least 75% of the company’s shareholders are family members; or

(4)an entity that:

(i)has an annual operating budget or annual sales less than $5,000,000; and

(ii)does not qualify for a State benefit.

(c)An entity may not qualify for a State benefit unless the entity is able to demonstrate:

(1)membership of underrepresented communities in the entity’s board or executive leadership; or

(2)support for underrepresented communities in the entity’s mission.

(d)The Department of Commerce and the Office of Small, Minority, and Women Business Affairs shall:

(1)develop and maintain a State Equity Report that compiles diversity data for each entity on:

(i)the membership of underrepresented communities in the entity’s board or executive leadership; and

(ii)the support of underrepresented communities in the entity’s mission; and

(2)adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.