Washington Suburban Sanitary Commission - Procurement - Alterations PG/MC 102-26

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb1230*

HOUSE BILL 1230
L5 (6lr1161)
ENROLLED BILL
— Environment and Transportation/Education, Energy, and the Environment —
Introduced by Prince George’s County Delegation and Montgomery County
Delegation

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, fo r his approval this

_______ day of _______________ at ________________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

Washington Suburban Sanitary Commission – Procurement – Alterations 2

PG/MC 102–26 3

FOR the purpose of repealing the name of the Washington Suburban Sanitary Commission 4
Office of Supplier Diversity and Inclusion; authorizing requiring the Commission to 5
name the Office; altering the purpose and duties of the Office; altering the local small 6
business enterprise program to include local or small businesses or certain other 7
businesses be the business participation program and limiting part icipation in the 8
program to certain businesses; requiring the Commission to adopt certain additional 9
eligibility criteria for participation in the program ; authorizing the Commission to 10
accept as a registered vendor any person business that is registered as a vendor with 11
another jurisdiction or has self–certified as a vendor in a certain manner; authorizing 12
the Commission to adopt certain regulations to promote workforce engagement and 13
2 HOUSE BILL 1230

local economic benefits; and generally relating to procurement by the Wa shington 1
Suburban Sanitary Commission. 2

BY repealing and reenacting, with amendments, 3
Article – Public Utilities 4
Section 20–201, 20–203, and 20–301 through 20–304 5
Annotated Code of Maryland 6
(2025 Replacement Volume and 2025 Supplement) 7

BY adding to 8
Article – Public Utilities 9
Section 20 –401 to be under the new subtitle “Subtitle 4. Vendor Registration” 10
Workforce and Local Economic Benefits” 11
Annotated Code of Maryland 12
(2025 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Public Utilities 16

20–201. 17

(a) In this subtitle the following words have the meanings indicated. 18

(b) “Minority business enterprise” has the meaning stated in § 14–301 of the State 19
Finance and Procurement Article. 20

(c) “Office” means the Office [of Supplier Diversity and Inclusion ] established 21
under § 20–203 of this subtitle. 22

20–203. 23

(a) There is an Office [of Supplier Diversity and Inclusion in the Commission ] 24
ESTABLISHED WITHIN THE COMMISSION THAT SHALL BE RESPONSIBLE FOR: 25

(1) ADMINISTERING EACH O F THE BUSINESS PARTI CIPATION AND 26
VENDOR DEVELOPMENT P ROGRAMS FOR COMMISSION CONTRACTS AND 27
SUBCONTRACTS; AND 28

(2) MONITORING COMPLIANC E WITH PARTICIPATION 29
REQUIREMENTS F OR THE PROGRAMS ESTA BLISHED ADMINISTERING PROGRA MS 30
ESTABLISHED UNDER THIS SUBTITLE AND SUBTITLE 3 OF THIS TITLE. 31

(b) THE COMMISSION SHALL ADOP T REGULATIONS ESTABL ISHING THE 32
NAME OF THE OFFICE. 33
HOUSE BILL 1230 3

(C) The [head of the Office is the] OFFICE SHALL BE HEADED BY A Director [of 1
Supplier Diversity and Inclusion]. 2

(c) THE COMMISSION MAY PROVID E A NAME FOR THE OFFICE 3
ESTABLISHED UNDER THIS SECTION. 4

(D) The Office shall: 5

(1) administer each Commission program that is created to remedy 6
discrimination against minority business enterprises and promote the participation of local 7
OR small business enterprises OR OTHER BUSINESS ENTERPRISES THAT SUPPORT THE 8
ECONOMIC OUTCOMES OF SMALL BUSINESSES THAT DO B USINESS WITH THE 9
COMMISSION, including: 10

(i) the minority business enterprise utilization program under § 11
20–204 of this subtitle; and 12

(ii) the [local small] business enterprise PARTICIPATION program 13
ESTABLISHED under Subtitle 3 of this title; 14

(2) promote and coordinate the plans, programs, and operations of the 15
Commission to remedy discrimination against minority business enterprises and the effects 16
of discrimination; 17

(3) promote activities and the use of the resources of the Commission, local 18
governments, and private entities to remedy discrimination against minority business 19
enterprises and the effects of discrimination; [and] 20

(4) ensure compliance with certified minor ity business enterprise 21
subcontract participation goals under § 20–206 of this subtitle; AND 22

(5) PROMOTE, ENCOURAGE, AND SUPPORT INCREASE D BUSINESS 23
PARTICIPATION AND EC ONOMIC OUTCOMES IN COMMISSION CONTRACTS AND 24
SUBCONTRACTS. 25

20–301. 26

In this subtitl e, “program” means a local , small, OR OTHER business enterprise 27
program. 28

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30

4 HOUSE BILL 1230

(B) “DISABLED VETERAN–OWNED BUSINESS” MEANS A BUSINESS THA T IS 1
AT LEAST 51% OWNED AND CONTROLLED BY ONE OR MORE INDIVIDUALS CERTIFIED 2
BY THE U.S. DEPARTMENT OF VETERANS AFFAIRS AS HAVING A 3
SERVICE–CONNECTED DISABILITY REGARDLESS OF THE DISABILITY RATING. 4

(C) “LOCAL BUSINESS” MEANS A BUSINESS WITH: 5

(1) A PRINCIPAL PLACE OF BUSINESS IN MONTGOMERY COUNTY OR 6
PRINCE GEORGE’S COUNTY; OR 7

(2) AT LEAST 25% OF THE EMPLOYEES OF THE BUSINESS DOMICILED 8
IN MONTGOMERY COUNTY OR PRINCE GEORGE’S COUNTY. 9

(D) “LOCAL SM ALL BUSINESS ” MEANS A BUSINESS THA T QUALIFIES AS 10
BOTH: 11

(1) A LOCAL BUSINESS; AND 12

(2) A SMALL BUSINESS. 13

(E) “MARYLAND–BASED BUSINESS ” MEANS A BUSINESS THA T HAS ITS 14
PRINCIPAL PLACE OF BUSINESS IN THE STATE. 15

(F) “PROGRAM” MEANS THE BUSINESS P ARTICIPATION PROGRAM 16
ESTABLISHED UNDER § 20–302 OF THIS SUBTITLE. 17

(G) “SMALL BUSINESS ” MEANS A BUSINESS THA T MEETS CRITERIA 18
ESTABLISHED BY REGULATIONS ADOPTED IN ACCORDANCE WITH § 14–203 OF THE 19
STATE FINANCE AND PROCUREMENT ARTICLE. 20

(H) “VETERAN–OWNED BUSINESS” MEANS A BUSINESS THA T IS AT LEAST 21
51% OWNED AND CONTROLLED BY ONE OR MORE INDIVIDUALS WHO ARE VETERANS 22
AS DEFINED IN 38 U.S.C. § 101. 23

20–302. 24

(a) By resolution or adopting regulations, the Commission may establish a local, 25
small, OR OTHER business enterprise program BUSINESS PARTICIPATION PROGRAM IN 26
ACCORDANCE WITH THIS SUBTITLE. 27

(b) The Office [of Supplier Diversity and Inclusion, ] established under IN 28
ACCORDANCE WITH § 20–203 of this title[,] shall administer the program. 29

20–303. 30
HOUSE BILL 1230 5

The purpose of the program is to assist [small] LOCAL businesses in Montgomery 1
County and Prince George’s County, SMALL BUSINESSES, OR OTHER BUSINESSES THAT 2
FURTHER THE COMMISSION’S CONTRACTING, SUBCONTRACTING, AND ECONOMIC 3
OBJECTIVES BUSINESSES ELIGIBLE TO PARTICIPATE IN THE PROGRAM, WITH 4
PREFERENCE BEING GIVEN TO LOCAL SMALL BUSINESSES AND LOCAL BUSINESSES, 5
by: 6

(1) establishing a sheltered market or other appropriate preference; or 7

(2) facilitating the award of Commission construction contracts or 8
procurement contracts for goods and services to [small]: 9

(I) LOCAL businesses in Montgomery County and Prince George’s 10
County; 11

(II) SMALL BUSINESSES; OR 12

(III) OTHER BUSINESSES THA T FURTHER THE COMMISSION’S 13
CONTRACTING, SUBCONTRACTING, AND ECONOMIC OBJECTI VES ELIGIBLE 14
BUSINESSES. 15

20–304. 16

(a) The Commission shall adopt: 17

(1) [eligibility criteria for businesses to qualify for the program, including: 18

(i) the criteria for a small business qualifying under the Small 19
Business Preference Program as established in regulations adopted by the Department of 20
General Services under § 14–203 of the State Finance and Procurement Article; 21

(ii) a requirement that: 22

1. the business ’s principal place of business be in 23
Montgomery County or Prince George’s County; or 24

2. at least 25% of the total number of employees of the 25
business be domiciled in Montgomery County or Prince George’s County; and 26

(iii) any other] eligibility criteria that the Commission determines to 27
be necessary or appropriate for the promotion of [small] businesses in the Commission’s 28
service area , SMALL BUSINESSES , OR OTHER BUSINESSES THAT FURTHER THE 29
COMMISSION’S CONTRACTING , SUBCONTRACTING, AND ECONOMIC O BJECTIVES 30
THE FOLLOWING BUSINESSES ARE ELIGIBLE TO PARTICIPATE IN THE PROGRAM: 31
6 HOUSE BILL 1230

(1) A LOCAL BUSINESS; 1

(2) A SMALL BUSINESS; 2

(3) A LOCAL SMALL BUSINESS; 3

(4) A MARYLAND–BASED BUSINESS; 4

(5) A DISABLED VETERAN–OWNED BUSINESS THAT IS: 5

(I) A LOCAL BUSINESS; 6

(II) A SMALL BUSINESS; 7

(III) A LOCAL SMALL BUSINESS; OR 8

(IV) A MARYLAND–BASED BUSINESS; AND 9

(6) A VETERAN–OWNED BUSINESS THAT IS: 10

(I) A LOCAL BUSINESS; 11

(II) A SMALL BUSINESS; 12

(III) A LOCAL SMALL BUSINESS; OR 13

(IV) A MARYLAND–BASED BUSINESS. 14

(B) THE COMMISSION SHALL ADOPT: 15

(1) ANY OTHER ELIGIBILIT Y CRITERIA THE COMMISSION 16
DETERMINES TO BE NEC ESSARY OR APPROPRIAT E FOR THE PROMOTION OF THE 17
BUSINESSES SPECIFIED UNDER SUBSECTION (A) OF THIS SECTION; and 18

(2) administrative procedures for conducting the program. 19

(b) (C) A AN ELIGIBLE business may qualify as a local OR small business 20
enterprise under TO PARTICIPATE IN the program without regard to the race, ethnicity, 21
or gender of the participants in the business. 22

(c) (D) The Commission shall establish criteria for graduation from the 23
program for a AN ELIGIBLE [local small] business that the Commission determines no 24
longer requires the assistance or benefits offered by the program. 25

HOUSE BILL 1230 7

(d) (E) The Commission shall review the eligibility criteria and administrative 1
procedures of the program each year to assess their effectiveness in furthering the purposes 2
of the program. 3

(F) THE COMMISSION MAY ACCEPT AS A REGISTERED VENDOR ELIGIBLE TO 4
PARTICIPATE IN THE PROGRAM ANY BUSINESS THAT: 5

(1) IS A REGISTERED VEND OR THROUGH A VENDOR REGISTRATION 6
PROCESS IN ANOTHER JURISDICTION; OR 7

(2) SELF–CERTIFIES AS A VENDO R IN ACCORDANCE WITH 8
REGULATIONS ADOPTED BY THE COMMISSION. 9

(G) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO REQUIRE A 10
SOLICITATION ISSUED BY THE COMMISSION TO INCLUDE EVERY CATEGORY OF 11
ELIGIBLE BUSINESS. 12

SUBTITLE 4. VENDOR REGISTRATION. 13

20–401. 14

(A) THE COMMISSION MAY ACCEPT AS A REGISTERED VEND OR FOR THE 15
COMMISSION ANY PERSON THAT: 16

(1) IS REGISTERED AS A VENDOR THROUGH A VENDOR REGISTRATION 17
PROCESS IN ANOTHER JURISDICTION; OR 18

(2) SELF–CERTIFIES AS A VENDO R IN ACCORDANCE WITH 19
REGULATIONS ADOPTED BY THE COMMISSION. 20

(B) THE COMMISSION MAY ADOPT REGULATIONS TO CARRY OUT THIS 21
SECTION. 22

SUBTITLE 4. WORKFORCE AND LOCAL ECONOMIC BENEFITS. 23

20–401. 24

THE COMMISSION MAY ADOPT REGULATIONS TO PROMO TE IN THE 25
COMMISSION’S CONTRACTS WORKFORC E ENGAGEMENT AND LOCAL ECONOMIC 26
BENEFITS WITHIN THE COMMISSION’S SERVICE DISTRICT , INCLUDING 27
ESTABLISHING DEFINIT IONS AND STANDARDS F OR CONTRACTOR GOOD F AITH 28
EFFORTS REGARDING: 29

(1) LOCAL HIRING AND RECRUITMENT; 30
8 HOUSE BILL 1230

(2) SKILLS TRAINING, PRE–APPRENTICESHIP, AND APPRENTICESHIP 1
PARTICIPATION OR SUPPORT; AND 2

(3) DATA REPORTING ON WO RKFORCE RESIDENCY OR LOCAL 3
ECONOMIC ACTIVITY. 4

SECTION 2. AND BE IT FURTHER ENACTED, That this Act may not be 5
interpreted to amend, expand, limit, or otherwise affect the Minority Bus iness Enterprise 6
Program of the Washington Suburban Sanitary Commission. 7

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.