Maryland Statutes
Subtitle 1 - General Provisions
Section 19-106 - Corporate Diversity Required of Entity Qualifying for Certain State Benefits -- State Equity Report

** TAKES EFFECT JULY 1, 2022 PER CHAPTER 795 OF 2021 **
    (a)    (1)    In this section the following words have the meanings indicated.
        (2)    “Entity” means:
            (i)    a commercial enterprise or business that is in good
standing with the State Department of Assessments and Taxation and is:
                1.    incorporated in the State; or
                2.    registered to do business in the State; or
            (ii)    a corporation, foundation, school, hospital, or other legal entity for which none of the net earnings inure to the benefit of any private shareholder or individual holding an interest in the entity.
        (3)    “State benefit” means:
            (i)    State capital grant funding totaling $1,000,000 or
more in a single fiscal year;
            (ii)    State tax credits totaling $1,000,000 or more in a single fiscal year; or
            (iii)    the receipt of a State contract with a total value of $1,000,000 or more.
        (4)    “State contract” means a contract that:
            (i)    resulted from a competitive procurement process; and
            (ii)    is not federally funded in any way.
        (5)    “Underrepresented community” means a community whose members self–identify:
            (i)    as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or
            (ii)    with one or more of the racial or ethnic groups listed in item (i) of this paragraph.
    (b)    This section does not apply to:
        (1)    a sole proprietor;
        (2)    a limited liability company owned by a single member;
        (3)    a privately held company if at least 75% of the company’s shareholders are family members; or
        (4)    an entity that:
            (i)    has an annual operating budget or annual sales less than $5,000,000; and
            (ii)    does not qualify for a State benefit.
    (c)    An entity may not qualify for a State benefit unless the entity is able to demonstrate:
        (1)    membership of underrepresented communities in the entity’s board or executive leadership; or
        (2)    support for underrepresented communities in the entity’s mission.
    (d)    The Department of Commerce and the Office of Small, Minority, and Women Business Affairs shall:
        (1)    develop and maintain a State Equity Report that compiles diversity data for each entity on:
            (i)    the membership of underrepresented communities in the entity’s board or executive leadership; and
            (ii)    the support of underrepresented communities in the entity’s mission; and
        (2)    adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.

Structure Maryland Statutes