Department of Social and Economic Mobility – Individuals With Disabilities

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1462*

HOUSE BILL 1462
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By: Delegate Kerr
Introduced and read first time: February 13, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

Department of Social and Economic Mobility – Individuals With Disabilities 2

FOR the purpose of renaming the Office of Small, Minority, and Women Business Affairs 3
to be the Office of Small, Minority, Disability, and Women Business Affairs; 4
renaming the Special Secretary of Small, Minority, and Women Business Affairs to 5
be the Special Secretary of Small, Minority, Disability, and Women Business Affairs; 6
expanding the duti es of the Special Secretary to include matters concerning 7
individuals with disabilities; altering the purpose of the Department of Social and 8
Economic Mobility Special Fund; and generally relating to individuals with 9
disabilities and the Department of Social and Economic Mobility. 10

BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 14–106 and 14–108 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, without amendments, 16
Article – State Government 17
Section 9–4101 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

BY repealing and reenacting, with amendments, 21
Article – State Government 22
Section 9–4102, 9–4103, 9–4107, 9–4111 through 9–4114, 9–4117, and 9–4120 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
2 HOUSE BILL 1462

Article – State Finance and Procurement 1

14–106. 2

(a) In this section, “Committee” means the Pricing and Selection Committee for 3
Preferred Providers. 4

(b) There is a Pricing and Selection Committee for Preferred Providers. 5

(c) The Committee consists of the following 6 members: 6

(1) the Secretary of Transportation or a designee; 7

(2) the Chief Procurement Officer or a designee; 8

(3) the Secretary of Public Safety and Correctional Services or a designee; 9

(4) the Assistant Secretary for Vocational Rehabilitation within the State 10
Department of Education or a designee; 11

(5) the Secretary of Labor or a designee; and 12

(6) the Special Secretary for the Office of Small, Minority, DISABILITY, 13
and Women Business Affairs or a designee. 14

(d) A member of the Committee: 15

(1) may not receive compensation; but 16

(2) is entitled to reimbursement for expenses under the Standard State 17
Travel Regulations as provided in the State budget. 18

(e) (1) Blind Industries and Services of Maryland shall provide staff for the 19
Committee. 20

(2) The staff provided in acc ordance with paragraph (1) of this subsection 21
shall: 22

(i) be a blind or a visually impaired associate of Blind Industries 23
and Services of Maryland; and 24

(ii) complete work related to the duties of the Committee regarding 25
Blind Industries and Services of Maryland under the supervision and direction of the 26
Committee. 27

(f) The Committee shall: 28
HOUSE BILL 1462 3

(1) ensure that supplies and services provided by Blind Industries and 1
Services of Maryland or an Employment Works Program community service provider create 2
work opportunities for individuals who have a mental or physical disability, including 3
blindness, for which Blind Industries and Services of Maryland or the Employment Works 4
Program community service provider was established to assist; 5

(2) set the prices of supplies and services that Blind Industries and 6
Services of Maryland provides to reflect the fair market prices for the supplies and services; 7

(3) review and verify the prevailing average market prices, as proposed by 8
Maryland Correctional Enterprises: 9

(i) when changes are made to the pricing of existing supplies and 10
services that are available from Maryland Correctional Enterprises; and 11

(ii) for new supplies or services that Maryland Correctional 12
Enterprises intends to make available; 13

(4) establish procedures to govern procurement of supplies, services, and 14
other sales from Employment Works Program community service providers and individual 15
with disability owned businesses; 16

(5) from the State procurement list, choose appropriate supplies , services, 17
and other sales for Employment Works Program community service providers and 18
individual with disability owned businesses to offer for procurement; 19

(6) provide that the State procure those supplies, services, and other sales 20
from an Employmen t Works Program community service provider or an individual with 21
disability owned business; 22

(7) if supplies, services, or other sales are not available for procurement 23
from a unit of the State government, determine whether supplies, services, or other s ales 24
are available from an Employment Works Program community service provider or an 25
individual with disability owned business; 26

(8) determine the fair market price of supplies, services, and other sales 27
that Employment Works Program community service pr oviders and individual with 28
disability owned businesses provide; 29

(9) in accordance with market conditions, adjust prices for the supplies, 30
services, and other sales that Employment Works Program community service providers 31
and individual with disability owned businesses provide; 32

(10) at the request of a community service provider or an individual with 33
disability owned business, review and, if appropriate, change the price of a supply or 34
service; and 35
4 HOUSE BILL 1462

(11) review a request submitted from and may grant a waiver to the State 1
or a State–aided or controlled entity in accordance with § 14–103(d)(1) of this subtitle. 2

(g) In addition to the duties specified under subsection (f) of this section, the 3
Committee shall: 4

(1) establish and periodically rev iew eligibility policies or guidelines for 5
participating community service providers and individual with disability owned 6
businesses; 7

(2) maintain a current list of community service providers and individual 8
with disability owned businesses; 9

(3) periodically review and revise its list of community service providers 10
and individual with disability owned businesses; and 11

(4) send any revised list to the Chief Procurement Officer who shall make 12
the list available to each person responsible for buying supplies or services for the State or 13
a State aided or controlled entity. 14

14–108. 15

(a) In this section, “Program” means the Employment Works Program. 16

(b) There is an Employment Works Program in the Governor’s Office of Small, 17
Minority, DISABILITY, and Women Business Affairs. 18

(c) The Special Secretary for the Office of Small, Minority, DISABILITY, and 19
Women Business Affairs shall designate Maryland Works, Inc., or another appropriate 20
coordinating entity, to facilitate the distribution of procurement contracts for supplies and 21
services among community service providers and individual with disability owned 22
businesses. 23

(d) The coordinating entity designated under subsection (c) of this section shall: 24

(1) identify potential contracts for supplies and ser vices eligible for 25
procurement; 26

(2) establish procedures for the selection of community service providers to 27
perform under potentially eligible contracts for preference procurement; 28

(3) establish procedures for remediation of noncompliance with State or 29
Program policies; 30

(4) provide training and technical assistance to participating community 31
service providers; 32
HOUSE BILL 1462 5

(5) conduct cost analyses and market research for submission and review 1
by the Pricing and Selection Committee for the Program; 2

(6) provide staff support for the Pricing and Selection Committee for the 3
Program; and 4

(7) serve as a monitoring agent to ensure that high quality standards are 5
met and maintained by the Program and its participating community service providers. 6

Article – State Government 7

9–4101. 8

(a) In this subtitle the following words have the meanings indicated. 9

(b) “Department” means the Department of Social and Economic Mobility. 10

(c) “Secretary” means the Secretary of Social and Economic Mobility. 11

(d) “Unit of State government” or “unit” means an agency or unit of the Executive 12
Branch of State government. 13

9–4102. 14

(a) There is a Department of Social and Economic Mobility, established as a 15
principal department of the State government. 16

(b) (1) The head of the Department is the Secretary of Social and Economic 17
Mobility, who shall be appointed by the Governor with the advice and consent of the Senate. 18

(2) The Secretary serves at the pleasure of the Governor. 19

(c) The following units are in the Department: 20

(1) the Office of Minority Business Enterprises; 21

(2) the Office of Small, Minority, DISABILITY, and Women Business 22
Affairs; and 23

(3) the Office of Social Equity. 24

(d) The Department shall employ staff to carry out its duties as provided in the 25
State budget. 26

9–4103. 27

6 HOUSE BILL 1462

(a) The purpose of the Department is to: 1

(1) provide support for units of State government, individuals, and 2
businesses for the maintenance of social equity policies in the State; 3

(2) monitor trends in social equity programs and policies across the nation; 4

(3) propose new and innovative approaches to social equity programs; 5

(4) compile and produce reports and recommendations related to social 6
equity; 7

(5) ensure the fulfillment of the roles and responsibilities of the entities 8
and social equity programs in the State for which it is the successor; 9

(6) track the performance of social equity programs and small or 10
disadvantaged business assistance programs; 11

(7) promote and encourage full participation in the regulated cannabis 12
industry by individuals from communities that have previously been disproportionately 13
impacted by the war on drugs in order to positively impact those communities and other 14
duties assigned to the Office of Social Equity established under this subtitle; 15

(8) support small or disadvantaged businesses in the State through all 16
duties assigned to the Governor’s Office of Small, Minority, DISABILITY, and Women 17
Business Affairs; and 18

(9) carry out the duties of the Office of Minority Business Enterpr ises 19
within the Maryland Department of Transportation, including duties assigned to support 20
small or disadvantaged businesses. 21

(b) The Department shall: 22

(1) connect a person with programs in State, federal, and local government 23
that serve designated populations to ensure the person is connected to programs and other 24
opportunities the person is eligible for; 25

(2) provide units of State government with assistance related to the 26
purpose of the Department by: 27

(i) facilitating information sharing between units; 28

(ii) maintaining an inventory of social equity work performed by 29
each unit and relevant reports from those units; 30

(iii) conducting policy analyses on social equity and the effectiveness 31
of social equity programs; 32
HOUSE BILL 1462 7

(iv) adopting standards for units to promote social equity; and 1

(v) providing technical assistance to units; and 2

(3) adopt regulations to carry out this subtitle. 3

9–4107. 4

(a) In this section, “Fund” means the Department of Social and Economic Mobility 5
Special Fund. 6

(b) There is a Department of Social and Economic Mobility Special Fund. 7

(c) The purpose of the Fund is to pay the costs of the operation of: 8

(1) the Office of Social Equity; [and] 9

(2) the Office of Minority Business Enterprises; AND 10

(3) THE OFFICE OF SMALL, MINORITY, DISABILITY, AND WOMEN 11
BUSINESS AFFAIRS. 12

(d) The Department shall administer the Fund. 13

(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 14
the State Finance and Procurement Article. 15

(2) The State Treasurer shall hold the Fund separately, and the 16
Comptroller shall account for the Fund. 17

(f) (1) The Fund consists of: 18

(i) revenue distributed to the Fund under § 2 –1302.2 of the Tax – 19
General Article; 20

(ii) money appropriated in the State budget to the Fund; 21

(iii) interest earnings of the Fund; and 22

(iv) any other money from any other source accepted for the benefit 23
of the Fund. 24

(2) The Governor shall include in the annual budget bill an appropriation 25
from the Transportation Trust Fund to the Fund equal to the amount necessary to defray 26
the operations and administrative expenses of the Office of Minority Business Enterprises. 27

8 HOUSE BILL 1462

(g) The Fund may be used only for paying the costs of the operation and 1
administrative expenses of: 2

(1) the Office of Social Equity; [and] 3

(2) the Office of Minority Business Enterprises; AND 4

(3) THE OFFICE OF SMALL, MINORITY, DISABILITY, AND WOMEN 5
BUSINESS AFFAIRS. 6

(h) (1) The State Treasurer shall invest the money of the Fund in the same 7
manner as other State money may be invested. 8

(2) Any interest earnings of the Fund shall be credited to the Fund. 9

(i) Expenditures from the Fund may be made only in accordance with the State 10
budget. 11

(j) Money expended from the Fund for the Office of Social Equity or the Office of 12
Minority Business Enterprises is supplemental to and is not intended to take the place of 13
funding that otherwise would be appropriated for the Office of Social Equity [or], the Office 14
of Minority Business Enterprises, OR THE OFFICE OF SMALL, MINORITY, DISABILITY, 15
AND WOMEN BUSINESS AFFAIRS. 16

9–4111. 17

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

(b) “Governor’s Subcabinet” means the Governor’s Subcabinet on Socioeconomic 19
Procurement Participation. 20

(c) (1) “Minority person” means: 21

(i) an individual who has been deprived of the opportunity to 22
develop and keep a competitive position in the economy because of a social or economic 23
disadvantage that arises from cultural, racial, or other similar causes; or 24

(ii) a sheltered workshop for individuals with disabilities. 25

(2) “Minority person” includes: 26

(i) an Aleut; 27

(ii) an American Indian; 28

(iii) a Black; 29
HOUSE BILL 1462 9

(iv) an Eskimo; 1

(v) a Hispanic; 2

(vi) an Oriental; 3

(vii) a Puerto Rican; or 4

(viii) a woman. 5

(d) “Office” means the Office of Small, Minority, DISABILITY, and Women 6
Business Affairs. 7

(e) “Special Secretary” means the Special Secretary for the Office of Small, 8
Minority, DISABILITY, and Women Business Affairs. 9

9–4112. 10

There is an Office of Small, Minority, DISABILITY, and Women Business Affairs in 11
the Department. 12

9–4113. 13

(a) The head of the Office of Small, Minority, DISABILITY, and Women Business 14
Affairs is the Special Secretary, who shall be appointed by and serves at the pleasure of the 15
Governor. 16

(b) The Special Secretary shall receive the salary provided in the State budget. 17

9–4114. 18

(a) There is a Governor’s Subcabinet on Socioeconomic Procurement 19
Participation. 20

(b) The Governor’s Subcabinet is composed of: 21

(1) the Special Secretary of the Governor’s Office of Small, Minority, 22
DISABILITY, and Women Business Affairs, who shall serve as chair of the Subcabinet; 23

(2) the Secretary of Budget and Management, or the Secretary’s designee; 24

(3) the Secretary of Commerce, or the Secretary’s designee; 25

(4) the Secretary of General Services, or the Secretary’s designee; 26

(5) the Secretary of Health, or the Secretary’s designee; 27
10 HOUSE BILL 1462

(6) the Secretary of Housing and Community Development, or the 1
Secretary’s designee; 2

(7) the Secretary of Human Services, or the Secretary’s designee; 3

(8) the Secretary of Information Technology, or the Secretary’s designee; 4

(9) the Secretary of Public Safety and Correctional Services, or the 5
Secretary’s designee; 6

(10) the Secretary of Transportation, or the Secretary’s designee; 7

(11) the Secretary of Veterans and Military Families, or the Secretary’s 8
designee; 9

(12) the Chief Procurement Officer for the State, or the Chief Procurement 10
Officer’s designee; 11

(13) the Minority Business Enterprise Ombudsman, or the Ombudsman’s 12
designee; and 13

(14) any other head of a department or agency that is accountable to the 14
Governor, as deemed necessary by the Governor. 15

(c) The Governor’s Subcabinet shall: 16

(1) meet: 17

(i) a minimum of once each quarter; and 18

(ii) at a frequency deemed appropriate by the chair; 19

(2) study socioeconomic procurement programs in other states to identify 20
successes and best practices; 21

(3) develop accountability measures for procurement forecasts, strategic 22
plans, Procurement Review Group processes, and liaison officer accountability; 23

(4) work with the Office of State Procurement to implement process 24
improvements that directly impact socioeconomic procurement businesses’ ability to fairly 25
compete for and understand State contracting opportunities; 26

(5) identify and recommend statutory and regulatory reforms to 27
strengthen and improve the State’s socioeconomic procurement programs; and 28

HOUSE BILL 1462 11

(6) recommend actions to make improv ements to the Small Business 1
Reserve Program, the Minority Business Enterprise Program, and the Veteran Small 2
Business Enterprise Program. 3

(d) On or before December 31, 2025, and each December 1 thereafter, the 4
Governor’s Subcabinet shall report to the G overnor on the Governor’s Subcabinet’s 5
activities, progress, and recommendations. 6

9–4117. 7

Subject to the limitations of any law that governs the activities of other units of the 8
Executive Branch of the State government, the Special Secretary shall: 9

(1) advise the Governor on: 10

(i) the activities of the State government that are intended to 11
promote: 12

1. the employment of minority persons in the State; and 13

2. State contracting opportunities available to and the 14
accessibility of those contrac ting opportunities to companies owned by minority persons, 15
small businesses, and veteran–owned small businesses; and 16

(ii) each other matter that affects the rights and interests of minority 17
persons, INDIVIDUALS WITH DISABILITIES, small businesses, and veteran–owned small 18
businesses and the communities in which they live, work, and provide employment 19
opportunities to others; and 20

(2) as authorized by the Governor: 21

(i) provide help to minority persons, INDIVIDUALS WITH 22
DISABILITIES, small businesses, and veteran –owned small businesses and the 23
communities in which they live, work, and employ others; 24

(ii) represent the Governor in any matter that relates to minority 25
persons, INDIVIDUALS WITH DISABILITIES, small businesses, and veteran–owned small 26
businesses or generally to the promotion of equality among the people of the State; and 27

(iii) perform any other responsibility that the Governor assigns. 28

9–4120. 29

(a) On or before the 15th day of each regular session of the General Assembly, the 30
Special Secretary shall send an annual report on the Office of Small, Minority, 31
DISABILITY, and Women Business Affairs: 32

12 HOUSE BILL 1462

(1) to the Governor; and 1

(2) subject to § 2–1257 of this article, to the General Assembly. 2

(b) The annual report may be pre pared in conjunction with the report required 3
under § 14–305(b) of the State Finance and Procurement Article. 4

SECTION 2. AND BE IT FURTHER ENACTED, That, as provided in this Act: 5

(a) The Office of Small, Minority, Disability, and Women Business Affairs is the 6
successor of the Office of Small, Minority, and Women Business Affairs. 7

(b) In every law, executive order, rule, regulation, policy, or document created by 8
an official, an employee, or a unit of this State, the names and titles of those agencies and 9
officials mean the names and titles of the successor agency or official. 10

SECTION 3. AND BE IT FURTHER ENACTED, That nothing in this Act affects the 11
term of office of an appointed or e lected member of any commission, office, department, 12
agency, or other unit. An individual who is a member of a unit on the effective date of this 13
Act shall remain for the balance of the term to which appointed or elected, unless the 14
member sooner dies, resigns, or is removed under provisions of law. 15

SECTION 4. AND BE IT FURTHER ENACTED, That any transaction or 16
employment status affected by or flowing from any change of nomenclature or any statute 17
amended by this Act and validly entered into or existing before the effective date of this Act 18
and every right, duty, or interest flowing from a statute amended by this Act remains valid 19
after the effective date of this Act and may be terminated, completed, consummated, or 20
enforced as required or allowed by any s tatute amended by this Act as though the 21
amendment had not occurred. If a change in nomenclature involves a change in name or 22
designation of any State unit, the successor unit shall be considered in all respects as 23
having the powers and obligations granted the former unit. 24

SECTION 5. AND BE IT FURTHER ENACTED, That: 25

(a) The continuity of every commission, office, department, agency, or other unit 26
is retained. 27

(b) The personnel, records, files, furniture, fixtures, and other properties and all 28
appropriations, credits, assets, liabilities, and obligations of each retained unit are 29
continued as the personnel, records, files, furniture, fixtures, properties, appropriat ions, 30
credits, assets, liabilities, and obligations of the unit under the laws enacted by this Act. 31

SECTION 6. AND BE IT FURTHER ENACTED, That letterhead, business cards, 32
and other documents reflecting the renaming of the Office of Small, Minority, and Women 33
Business Affairs to be the Office of Small, Minority, Disability, and Women Business Affairs 34
may not be used until all letterhead, business cards, and other documents already in print 35
and reflecting the name of the Office before the effective date of this Act have been used. 36
HOUSE BILL 1462 13

SECTION 7. AND BE IT FURTHER ENACTED, That the publisher of the 1
Annotated Code of Maryland, in consultation with and subject to the approval of the 2
Department of Legislative Services, shall correct, with no further action requir ed by the 3
General Assembly, cross –references and terminology rendered incorrect by this Act. The 4
publisher shall adequately describe any correction that is made in an editor’s note following 5
the section affected. 6

SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
1, 2026. 8