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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1177*
HOUSE BILL 1177
P2 6lr2725
CF 6lr2726
By: Delegates Stinnett, Kaufman, Simmons, Wims, and Woods
Introduced and read first time: February 11, 2026
Assigned to: Government, Labor, and Elections
A BILL ENTITLED
AN ACT concerning 1
Small Business Reserve Program – Veteran–Owned Small Business 2
Enterprises – Outreach 3
FOR the purpose of requiring the State certification agency, in consultation with the Office 4
of Small, Minority, and Women Business Affairs, the Military Department, and the 5
Department of Veterans and Military Families to develop an outreach program to 6
increase the participation in the small business reserve program by veteran –owned 7
small b usiness enterprises; and generally relating to participation in the small 8
business reserve program. 9
BY repealing and reenacting, without amendments, 10
Article – State Finance and Procurement 11
Section 14–501(d)(2) and (3) and 14–601 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2025 Supplement) 14
BY adding to 15
Article – State Finance and Procurement 16
Section 14–504.2 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2025 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – State Finance and Procurement 22
14–501. 23
(d) “Small business” means: 24
2 HOUSE BILL 1177
(2) a veteran–owned small business enterprise, as defined in § 14 –601 of 1
this title, that meets the criteria specified under item (3) of this subsection; or 2
(3) a business, other than a broker, that meets the following criteria: 3
(i) the business is independently owned and operated; 4
(ii) the business is not a subsidiary of another business; 5
(iii) the business is not dominant in its field of operation; and 6
(iv) 1. A. the wholesale operations of the business did not 7
employ more than 50 persons in its most recently completed 3 fiscal years; 8
B. the retail operations of the business did not employ more 9
than 25 persons in its most recently completed 3 fiscal years; 10
C. the manufacturing operations of the business did not 11
employ more than 100 persons in its most recently completed 3 fiscal years; 12
D. the service operations of the business did not employ more 13
than 100 persons in its most recently completed 3 fiscal years; 14
E. the construction operations of the business did not employ 15
more than 50 persons in its most recently completed 3 fiscal years; and 16
F. the architectural and engineering services of the business 17
did not employ more than 100 persons in its most recently completed 3 fiscal years; or 18
2. A. the gross sales of the wholesale operations of the 19
business did not exceed an average of $4,000,000 in its most recently completed 3 fis cal 20
years; 21
B. the gross sales of the retail operations of the business did 22
not exceed an average of $3,000,000 in its most recently completed 3 fiscal years; 23
C. the gross sales of the manufacturing operations of the 24
business did not exceed an ave rage of $2,000,000 in its most recently completed 3 fiscal 25
years; 26
D. the gross sales of the service operations of the business did 27
not exceed an average of $10,000,000 in its most recently completed 3 fiscal years; 28
E. the gross sales of the const ruction operations of the 29
business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal 30
years; and 31
HOUSE BILL 1177 3
F. the gross sales of the architectural and engineering 1
services of the business did not exceed an average of $4,500,000 in i ts most recently 2
completed 3 fiscal years. 3
14–504.2. 4
(A) (1) THE CERTIFICATION AGE NCY, IN CONSULTATION WITH THE 5
OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE MILITARY 6
DEPARTMENT, AND THE DEPARTMENT OF VETERANS AND MILITARY FAMILIES, 7
SHALL DEVELOP AN OUTREACH PROGRAM TO INCREASE THE PARTICIPATION IN THE 8
SMALL BUSINESS RESERVE PROGRAM BY SMALL BUSINESSES THA T ARE 9
VETERAN–OWNED SMALL BUSINESS ENTERPRISES. 10
(2) THE OUTREACH PROGRAM SHALL INCLUDE OUTREACH TO UNITS 11
OF GOVERNMENT IDENTIFIED UNDER § 11–203 OF THIS ARTICLE AS EXEMPT FROM 12
THIS D IVISION TO ENCOURAGE THE USE OF VETERAN –OWNED SMALL BUSINESS 13
ENTERPRISES. 14
(B) ON OR BEFORE DECEMBER 1 EACH YEAR, THE CERTIFICATION AGENCY 15
SHALL SUBMIT TO THE BOARD OF PUBLIC WORKS AND, SUBJECT TO § 2–1257 OF 16
THE STATE GOVERNMENT ARTICLE, THE LEGISLATIVE POLICY COMMITTEE A 17
REPORT ON: 18
(1) THE STATUS OF THE OU TREACH PROGRAM REQUI RED UNDER 19
SUBSECTION (A) OF THIS SECTION; AND 20
(2) THE TOTAL NUMBER AND DOLLAR VALUE OF AWAR DS MADE TO 21
SMALL BUSINESSES T HAT ARE VETERAN–OWNED SMALL BUSINESS ENTERPRISES 22
UNDER DESIGNATED SMALL BUSINESS RESERVE CONTRACTS. 23
14–601. 24
(a) In this subtitle the following words have the meanings indicated. 25
(b) “Veteran” means an individual who is verified to be a veteran, as defined in § 26
9–901 of the State Government Article. 27
(c) “Veteran–owned small business enterprise” means a for–profit business that: 28
(1) meets the size standards adopted by the United States Small Business 29
Administration in 13 C.F.R. 121.201 and any subsequent revision of that regulation; and 30
(2) is at least 51% owned by one or more individuals who: 31
(i) are veterans; and 32
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(ii) control the management and daily operations of the business. 1
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 2
October 1, 2026. 3