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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1206*
HOUSE BILL 1206
P2 6lr3219
By: Delegate Phillips
Introduced and read first time: February 11, 2026
Assigned to: Government, Labor, and Elections
A BILL ENTITLED
AN ACT concerning 1
Procurement – Disadvantaged Business Enterprise (DBE) Reevaluation 2
Assistance Program – Established 3
FOR the purpose of requiring the Department of Social and Economic Mobility , in 4
collaboration with the Department of Commerce, to establish the DBE Reevaluation 5
Assistance Program; and generally relating to the DBE Reevaluation Assistance 6
Program. 7
BY repealing and reenacting, with amendments, 8
Article – Economic Development 9
Section 2.5–106(18) and (19) 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2025 Supplement) 12
BY adding to 13
Article – Economic Development 14
Section 2.5–106(20) 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – State Government 19
Section 9–4103 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2025 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Economic Development 25
2 HOUSE BILL 1206
2.5–106. 1
The Department shall: 2
(18) work with community colleges to enhance the role of community 3
colleges in providing workforce training services, including industry–specific education and 4
training in response to the needs of the State; [and] 5
(19) (i) define, identify, and compile data on State and regional 6
workforce needs; and 7
(ii) work collaboratively with the Maryland Department of Labor 8
and the Maryland Higher Education Commission to produce uniform and consistent 9
baseline data, including common sources and measurements, about workforce needs to 10
inform State policies relating to postsecondary education; AND 11
(20) COLLABORATE WITH THE DEPARTMENT OF SOCIAL AND 12
ECONOMIC MOBILITY TO ESTABLISH THE DBE REEVALUATION ASSISTANCE 13
PROGRAM UNDER § 9–4103(C) OF THE STATE GOVERNMENT ARTICLE. 14
Article – State Government 15
9–4103. 16
(a) The purpose of the Department is to: 17
(1) provide support for units of State government, individuals, and 18
businesses for the maintenance of social equity policies in the State; 19
(2) monitor trends in social equity programs and policies across the nation; 20
(3) propose new and innovative approaches to social equity programs; 21
(4) compile and produce reports and recommendations related to social 22
equity; 23
(5) ensure the fulfillment of the roles and responsibilities of the entities 24
and social equity programs in the State for which it is the successor; 25
(6) track the performance of social equity programs and small or 26
disadvantaged business assistance programs; 27
(7) promote and encourage full participation in the regulated cannabis 28
industry by individuals from communities that have previously been disproportionately 29
impacted by the war on drugs in order to positively impact those communities and other 30
duties assigned to the Office of Social Equity established under this subtitle; 31
HOUSE BILL 1206 3
(8) support small or disadvantaged businesses in the State through all 1
duties assigned to the [Governor’s] Office of Small, Minority, and Women Business Affairs; 2
and 3
(9) carry out the duties of the Office of Minority Business Enterprises 4
within the Maryland Department of Transportation, including duties assigned to support 5
small or disadvantaged businesses. 6
(b) The Department shall: 7
(1) connect a person with programs in State, federal, and local government 8
that serve designated populations to ensure the person is connected to programs and other 9
opportunities the person is eligible for; 10
(2) provide units of State government with assistance related to the 11
purpose of the Department by: 12
(i) facilitating information sharing between units; 13
(ii) maintaining an inventory of social equity work performed by 14
each unit and relevant reports from those units; 15
(iii) conducting policy analyses on social equity and the effectiveness 16
of social equity programs; 17
(iv) adopting standards for units to promote social equity; and 18
(v) providing technical assistance to units; and 19
(3) adopt regulations to carry out this subtitle. 20
(C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WO RDS HAVE THE 21
MEANINGS INDICATED. 22
(II) “ELIGIBLE BUSINESS ” MEANS A MARYLAND–BASED 23
BUSINESS THAT: 24
1. WAS CERTIFIED AS A DISADVANTAGED BUSINESS 25
ENTERPRISE BY THE FEDERAL GOVERNMENT ON OCTOBER 3, 2025; AND 26
2. A. HAS BEEN NOTIFIED TH AT IT MUST UNDERGO 27
REEVALUATION; OR 28
B. HAS APPLIED FOR RECE RTIFICATION AFTER A 29
REEVALUATION DENIAL. 30
4 HOUSE BILL 1206
(III) “PROGRAM” MEANS THE DBE REEVALUATION 1
ASSISTANCE PROGRAM. 2
(2) ON OR BEFORE DECEMBER 1, 2026, IN COLLABORATION WIT H 3
THE DEPARTMENT OF COMMERCE, THE DEPARTMENT SHALL ESTABLISH THE DBE 4
REEVALUATION ASSISTANCE PROGRAM. 5
(3) THE PURPOSE OF THE PROGRAM IS TO PROVIDE THE FOLLOWING 6
SERVICES TO ELIGIBLE BUSINESSES: 7
(I) APPLICATION PREPARATION ASSISTANCE; 8
(II) FINANCIAL DOCUMENTATION ASSISTANCE; 9
(III) OWNERSHIP AND CONTROL DOCUMENTATION REVIEW; 10
(IV) NARRATIVE AND AFFIDAVIT PREPARATION; 11
(V) LEGAL STRUCTURE COMPLIANCE GUIDANCE; 12
(VI) PRE–SUBMISSION APPLICATION REVIEW FOR 13
COMPLETENESS; AND 14
(VII) ADMINISTRATION A PPEAL SUPPORT THAT DOES NOT 15
INCLUDE LEGAL ASSISTANCE. 16
(4) THE PROGRAM MAY PROVIDE T HE SERVICES LISTED U NDER 17
PARAGRAPH (3) OF THIS SUBSECTION: 18
(I) DIRECTLY; OR 19
(II) THROUGH AGREEMENTS WITH THIRD PARTIES, INCLUDING: 20
1. SMALL BUSINESS DEVELOPMENT CENTERS; 21
2. CLINICS OPERATED BY LAW SCHO OLS OR BUSINESS 22
SCHOOLS; 23
3. NONPROFIT BUSINESS S UPPORT ORGANIZATIONS ; 24
AND 25
4. PROVIDERS OF ACCOUNTING OR LEGAL ASSISTANCE. 26
HOUSE BILL 1206 5
(5) THE PROGRAM SHALL IDENTIF Y OPPORTUNITIES TO I NCREASE 1
OUTREACH TO ELIGIBLE BUSINESSES AND MAXIMIZE THE PROVISION OF SERVICES 2
TO ELIGIBLE BUSINESS ES, INCLUDING BY HOSTING CLINICS, WORKSHOPS, AND 3
ONE–ON–ONE TECHNICAL ASSISTANCE. 4
(6) ON OR BEFORE DECEMBER 31, 2027, THE DEPARTMENT SHALL 5
SUBMIT A REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THIS 6
ARTICLE, THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE 7
GOVERNMENT, LABOR, AND ELECTIONS COMMITTEE ON: 8
(I) THE NUMBER OF ELIGIB LE FIRMS SERVED BY T HE 9
PROGRAM; 10
(II) THE NUMBER OF ELIGIBLE FIRMS SE RVED BY THE 11
PROGRAM THAT COMPLETED SUCCESSFUL REEVALUATIONS UNDER THE FEDERAL 12
DISADVANTAGED BUSINESS ENTERPRISE PROGRAM; AND 13
(III) AN ESTIMATE OF THE T OTAL AMOUNT OF F EDERAL 14
FUNDING PRESERVED BY THE PROGRAM. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2026. It shall remain effective for a period of 2 years and, at the end of June 30, 2028, 17
this Act, with no further action required by the General Assembly, shall be abrogated and 18
of no further force and effect. 19