Prince George's County - Procurement Preference Programs - Regulation PG 404-26

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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HOUSE BILL 376
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By: Prince George’s County Delegation
Introduced and read first time: January 19, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

Prince George’s County – Procurement Preference Programs – Regulation 2

PG 404–26 3

FOR the purpose of authorizing the governing body of Prince George’s County to enact a 4
local law to regulate certain procurement activities of the Prince George’s County 5
public s chool system and Prince George’s Community College; requiring certain 6
procurement preference programs for procurements made by the Prince George’s 7
County Board of Education or the Board of Community College Trustees for Prince 8
George’s County to be subject to certain requirements adopted by the governing body 9
of Prince George’s County; and generally relating to procurements by the Prince 10
George’s County Board of Education and the Board of Community College Trustees 11
for Prince George’s County. 12

BY repealing and reenacting, with amendments, 13
Article – Education 14
Section 4–125 and 4–125.1 15
Annotated Code of Maryland 16
(2025 Replacement Volume and 2025 Supplement) 17

BY adding to 18
Article – Education 19
Section 4–125.2 20
Annotated Code of Maryland 21
(2025 Replacement Volume and 2025 Supplement) 22

BY repealing and reenacting, with amendments, 23
Article – Education 24
Section 16–311 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2025 Supplement) 27
2 HOUSE BILL 376

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Education 3

4–125. 4

(a) (1) In this section the following words have the meanings indicated. 5

(2) “Bonus points” means established bonus or percentage points used 6
during the bid evaluation process to adjust the bid price submitted by minority business 7
enterprises for the purpose of ascertaining the lowest bidder. 8

(3) “Mandatory set –asides” means a procedure designating a certain 9
percentage of total contract dollars for award to minority business enterprises. 10

(4) “Mandatory subcontracting” means a procedure mandating that a 11
certain percentage of the dollar amount of designated contracts be subcontracted to 12
minority business enterprises. 13

(5) “Minority business enterprise” means any business enterprise: 14

(i) 1. That is at least 51 percent owned by one or more minority 15
individuals; or 16

2. In the case of any publicly owned corporation, at least 51 17
percent of the stock of which is owned by one or more minority individuals; and 18

(ii) Whose management and daily business operations are controlled 19
by one or more minority individuals. 20

(6) “Percentage points” means established percentage points given for 21
minority business enterprise participation in a sealed proposal process. 22

(7) “Restrictive bidding” means competitive bidding of designated contracts 23
that are restricted to minority business enterprises. 24

(8) “Restrictive price quotations” means negotiated small procurements 25
that are restricted to minority business enterprises. 26

(b) The Board of Education of Prince George’s County shall undertake and 27
complete an internal and market fact –finding process by January 1, 1990, to assess the 28
appropriate scope of a mino rity business enterprise program for the board. The results of 29
the fact–finding process, including statistical data, supporting documentation, and reports, 30
shall be reported to the Prince George’s County Delegation of the General Assembly by 31
January 31, 1990. 32
HOUSE BILL 376 3

(c) (1) (I) If the fact –finding required by subsection (b) of this section 1
demonstrates a compelling governmental interest to adopt a remedial minority business 2
enterprise program, the county board, by resolution and by implementing rules and 3
regulations, shall establish a minority business enterprise program to facilitate the 4
participation of certified minority business enterprises in contracts awarded by the county 5
board. 6

(II) The program shall include specific goals and the definition of 7
“minority individual”. 8

(2) ANY PROGRAM ADOPTED U NDER PARAGRAPH (1) OF THIS 9
SUBSECTION SHALL BE SUBJECT TO THE REQUI REMENTS OF § 4–125.2 OF THIS 10
SUBTITLE. 11

(d) In establishing a minority business enterprise program, the county board is 12
authorized to use incentives to achieve the designated goals of the program, including but 13
not limited to: 14

(1) Mandatory set–aside procedures; 15

(2) Mandatory subcontracting procedures with reasonable waiver 16
provisions; 17

(3) The application of bonus points; 18

(4) The application of percentage points; 19

(5) Restrictive bidding; 20

(6) Restrictive price quotations; 21

(7) The reduction or waiver of bonding requirements; and 22

(8) Incentives to encourage maximum participation by: 23

(i) Small businesses; 24

(ii) A variety of different businesses; and 25

(iii) Businesses located within Prince George’s County. 26

(e) (1) The county board may appoint a minority business enterprise officer to 27
administer any minority business enterprise program established, who shall submi t 28
reports to the board. 29

4 HOUSE BILL 376

(2) It is the responsibility of the minority business enterprise officer to 1
conduct outreach programs to assist the minority business enterprise community in 2
participating in any minority business enterprise program established under this section. 3

(f) The county board shall advise the Prince George’s County Delegation of the 4
General Assembly regarding the substance of any minority business enterprise program 5
that it establishes. 6

(g) (1) The program shall be evaluated every 2 years. 7

(2) The results of any evaluation under this subsection shall be submitted 8
to the Prince George’s County Delegation of the General Assembly. 9

4–125.1. 10

(a) (1) In this section the following words have the meanings indicated. 11

(2) “Certified county–based business participation” has the meaning stated 12
in § 10A–101 of the Code of Public Local Laws of Prince George’s County. 13

(3) “Certified county –based minority business participation” has the 14
meaning stated in § 10A–101 of the Code of Public Local Laws of Prince George’s County. 15

(4) “County–based business” has the meaning stated in § 10A –101 of the 16
Code of Public Local Laws of Prince George’s County. 17

(5) “County–based minority business enterprise” has the meaning stated 18
in § 10A–101 of the Code of Public Local Laws of Prince George’s County. 19

(6) “County–based small business” has the meaning stated in § 10A–101 of 20
the Code of Public Local Laws of Prince George’s County. 21

(7) “County board” means the Prince George’s County Board of Education. 22

(8) (i) “Procurement” means the process of buying, leasing, 23
lease–purchasing, or otherwise obtaining supplies, services, or construction. 24

(ii) “Procurement” includes all functions that relate to the process of 25
obtaining supplies, services, or construction, including: 26

1. Description of requirements; 27

2. Selection and solicitation of sources; and 28

3. Preparation, award, and execution of a contract. 29

HOUSE BILL 376 5

(9) “Program” means the Certified County –Based Business Participation 1
Program that may be established under this section. 2

(b) This section applies only in Prince George’s County. 3

(c) [The] SUBJECT TO THE REQUIREMENTS OF § 4–125.2 OF THIS SUBTITLE, 4
THE county board, after consultation with the County Superintendent, may establish and 5
implement a Certified County–Based Business Participation Program to be used in county 6
board procurement. 7

(d) If the county board exercises the authority granted in subsection (c) of this 8
section, the county board and the County Superintendent shall: 9

(1) Consult with the Prince George’s County Council, or its agencies or 10
agents, on the establishment and implementation of the Program; and 11

(2) Establish goals and requirements for the Program that may include: 12

(i) Minimum percentages for certified county–based business 13
participation; 14

(ii) Utilization of county–based small businesses; 15

(iii) Minimum goals and incentives for maximizing certified 16
county–based minority business participation; and 17

(iv) The goals established under § 4–125(d) of this subtitle. 18

(e) To achieve the designated goals of the Program, the county board and the 19
County Superintendent may use incentives and bonuses, including: 20

(1) Mandatory set–aside procedures; 21

(2) Mandatory subcontracting procedures with reasonable waiver 22
provisions; 23

(3) The application of bonus points; 24

(4) The application of percentage points; 25

(5) Restrictive bidding; 26

(6) Restrictive price quotations; 27

(7) The reduction or waiver of bonding requirements; and 28

(8) Incentives to encourage maximum participation by: 29
6 HOUSE BILL 376

(i) Certified county–based small businesses; and 1

(ii) A variety of different certified county–based businesses. 2

(f) If the county board exercises the authority granted in subsection (c) of this 3
section, the county board and the county council shall enter into a binding memorandum of 4
understanding outlining the county board’s goals and commitment to implementing the 5
Program. 6

(g) On or before December 1, 2015, and each year thereafter, the county board, 7
after consultation with the County Superintendent, shall submit a report to the Prince 8
George’s County delegations to the House of Delegates and Senate of Maryland, the Prince 9
George’s County Council, and the Prince George’s County Executive, in accordance wi th § 10
2–1257 of the State Government Article, that specifies: 11

(1) The respective percentages and dollar amounts of certified 12
county–based business participation, certified county –based minority business 13
participation, and certified county –based small bu siness participation in county board 14
procurement for the previous fiscal year; and 15

(2) The efforts by the county board and the County Superintendent in the 16
previous fiscal year to encourage greater certified county –based business participation, 17
certified county–based minority business participation, and certified county –based small 18
business participation in county board procurement. 19

4–125.2. 20

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 21
INDICATED. 22

(2) “COUNTY–BASED BUSINESS ” HAS THE MEANING STAT ED IN § 23
10A–101 OF THE CODE OF PUBLIC LOCAL LAWS OF PRINCE GEORGE’S COUNTY. 24

(3) “COUNTY–BASED MINORITY BUSIN ESS ENTERPRISE ” HAS THE 25
MEANING STATED IN § 10A–101 OF THE CODE OF PUBLIC LOCAL LAWS OF PRINCE 26
GEORGE’S COUNTY. 27

(4) “COUNTY–BASED SMALL BUSINESS” HAS THE MEANING STATED IN 28
§ 10A–101 OF THE CODE OF PUBLIC LOCAL LAWS OF PRINCE GEORGE’S COUNTY. 29

(5) “COUNTY BOARD ” MEANS THE PRINCE GEORGE’S COUNTY 30
BOARD OF EDUCATION. 31

HOUSE BILL 376 7

(6) “COUNTY RESIDENT” HAS THE MEANING STATED IN § 10A–101 OF 1
THE CODE OF PUBLIC LOCAL LAWS OF PRINCE GEORGE’S COUNTY. 2

(7) “ECONOMICALLY DISADVAN TAGED INDIVIDUAL ” MEANS AN 3
INDIVIDUAL WHOSE ABI LITY TO COMPETE IN T HE FREE ENTERPRISE S YSTEM HAS 4
BEEN IMPAIRED DUE TO DIMINISHED CAPITA L AND CREDIT OPPORTU NITIES AS 5
COMPARED TO OTHERS IN THE SAME OR SIMILAR LINE OF BUSINESS. 6

(8) “LOCALLY OWNED AND OPERATED BUSINESS” HAS THE MEANING 7
STATED IN § 10–335 OF THE CODE OF PUBLIC LOCAL LAWS OF PRINCE GEORGE’S 8
COUNTY. 9

(9) “PARTICIPATION” MEANS THE PERCENTAGE OF TOTAL 10
CONTRACT OR PROCUREMENT DOLLARS PAID TO ONE OR MORE ENTITIES. 11

(10) “PROCUREMENT” HAS THE MEANING STAT ED IN § 4–125.1 OF 12
THIS SUBTITLE. 13

(B) THIS SECTION APPLIES ONLY IN PRINCE GEORGE’S COUNTY. 14

(C) (1) THE GOVERNING BODY OF PRINCE GEORGE’S COUNTY MAY 15
ENACT A LOCAL LAW TO REGULATE THE PROCUREMENT ACTIVITIES OF THE PRINCE 16
GEORGE’S COUNTY PUBLIC SCHOOL SYSTEM OR PRINCE GEORGE’S COMMUNITY 17
COLLEGE RELATED TO: 18

(I) PROCUREMENT PARTICIPATION REQUIREMENTS OR GOALS 19
FOR PRIME CONTRACTING AN D SUBCONTRACTING FOR THE UTILIZATION OF 20
COUNTY–BASED BUSINESSES, COUNTY–BASED MINORITY BUSIN ESS ENTERPRISES, 21
COUNTY–BASED SMALL BUSINESS ES, OR LOCALLY OWNED AND OPERATED 22
BUSINESSES; 23

(II) PROCUREMENT INCENTIVE S FOR THE UTILIZATIO N OF 24
COUNTY–BASED BUSINESSES, COUNTY–BASED MINORITY BUSIN ESS ENTERPRISES, 25
COUNTY–BASED SMALL BUSINESS ES, OR LOCALLY OWNED AND OPERATED 26
BUSINESSES, INCLUDING BID BONUSES, DISCOUNTS, AND INCENTIVE PAYMENTS; 27

(III) PROCUREMENT PERCENTAG E REQUIREMENTS OR GO ALS 28
FOR WORK HOURS TO BE WORKED BY COUNTY RES IDENTS OR ECONOMICALLY 29
DISADVANTAGED INDIVIDUALS; AND 30

(IV) WAIVERS AND EXCEPTION S TO THE REQUIREMENTS 31
ENACTED IN ACCORDANCE WITH THIS SUBSECTION. 32

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(2) THE COUNTY BOARD AND THE BOARD OF COMMUNITY COLLEGE 1
TRUSTEES FOR PRINCE GEORGE’S COUNTY SHALL COMPLY WITH ANY LOCAL LAWS 2
ENACTED BY THE GOVERNING BOD Y OF PRINCE GEORGE’S COUNTY IN 3
ACCORDANCE WITH THIS SECTION. 4

16–311. 5

(a) (1) Except as provided in paragraph (2) of this subsection, this section 6
applies to every contract for any building, improvement, equipment, or supplies. 7

(2) This section does not apply to: 8

(i) The purchase of books or other materials for instruction; 9

(ii) Emergency repairs; 10

(iii) Any contract or purchase made by a county for a community 11
college under procedures authorized by the county charter or an act of the General 12
Assembly; or 13

(iv) Any contract or purchase that qualifies as a “small procurement” 14
as defined in the State Procurement Regulations. 15

(b) At the discretion of the procurement officer, the following procurement 16
methods are authorized where applicable: 17

(1) Competitive sealed bids under subsection (c) of this section; 18

(2) Competitive sealed proposals under § 16–313 of this subtitle; 19

(3) Sole source procurement under § 16–314 of this subtitle; or 20

(4) Noncompetitive negotiation under § 16–314.1 of this subtitle. 21

(c) (1) The board of trustees may provide for procurement by competitive 22
sealed bids in accordance with this subsection. 23

(2) (i) Whenever procurement is based on competitive sealed bids, the 24
board of trustees, or its designee, shall seek bids by issuing an invitation for bids. 25

(ii) The board of trustees, at least 2 weeks before bids are to be filed, 26
shall advertise for bids in at least one newspaper published in the county or in eMaryland 27
Marketplace, in accordance with Title 17, Subtitle 5 of the State Finance and Procurement 28
Article. 29

HOUSE BILL 376 9

(iii) The board of trustees may name in the speci fications and 1
advertisements for bids the particular make, kind, or brand of article to be contracted for 2
or purchased. 3

(3) The board of trustees of each community college may provide for the 4
prequalification of persons as prospective responsible bidders for procurements other than 5
leases of real property. 6

(4) If a board of trustees uses a prequalification procedure for awarding a 7
procurement contract: 8

(i) A person who is not prequalified may submit a bid or proposal; 9
and 10

(ii) After bid opening or receipt of proposals and before awarding the 11
procurement contract, a procurement officer may determine that: 12

1. A person who was not prequalified at the time of bid 13
opening or receipt of proposals is a responsible bidder; or 14

2. A prequalified person is not a responsible bidder. 15

(5) Except as provided in paragraph (7) of this subsection, the contract 16
shall be awarded to the lowest responsible bidder, who conforms to the specifications, with 17
consideration given to: 18

(i) The quantities involved; 19

(ii) The time required for delivery; 20

(iii) The purpose for which required; 21

(iv) The competence and responsibility of the bidder; and 22

(v) The ability of the bidder to perform the contract satisfactorily. 23

(6) The board of trustees may reject any and all bids and readvertise for 24
other bids. 25

(7) (i) In this paragraph, the term “minority business enterprise” has 26
the meaning stated in § 14–301 of the State Finance and Procurement Article. 27

(ii) In Montgomery County, by resolution and by implementing rules 28
and regulations, the Board of Trustees of Montgomery Community College shall establish 29
a mandatory minority business utilization program to facilitate the participation of 30
responsible certified minority business enterpri ses in contracts awarded by the Board of 31
10 HOUSE BILL 376

Trustees of Montgomery Community College in accordance with competitive bidding 1
requirements. 2

(8) IN PRINCE GEORGE’S COUNTY, THE BOARD OF COMMUNITY 3
COLLEGE TRUSTEES FOR PRINCE GEORGE’S COUNTY MAY ESTABLISH A PROGRAM 4
IN ACCORDANCE WITH § 4–125.2 OF THIS ARTICLE TO FACILITATE THE 5
PARTICIPATION OF CERTAIN BUSINESS ENTERPRISES IN CONTRACTS AWARDED BY 6
THE BOARD OF COMMUNITY COLLEGE TRUSTEES FOR PRINCE GEORGE’S COUNTY 7
IN ACCORDANCE WITH COMPETITIVE BIDDING REQUIREMENTS. 8

(d) A contract entered into or purchase made in violation of this section is void. 9

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2026. 11