Maryland Statutes
Subtitle 2 - Minority Business Enterprise Preferences
Section 20-206 - Subcontractor Participation Goals

(a)    The Office shall verify that a certified minority business enterprise listed in a schedule of participation is actually performing work and receiving compensation as established in the schedule.
    (b)    To facilitate the Office completing its duties under subsection (a) of this section, a contractor shall:
        (1)    allow the Office to inspect any relevant matter, including records and the job site;
        (2)    allow the Office to interview subcontractors and employees of the contractor;
        (3)    if performing a construction contract, ensure that subcontractors:
            (i)    are paid any undisputed amount to which the subcontractor is entitled as provided under § 15–226 of the State Finance and Procurement Article; and
            (ii)    comply with Commission regulations;
        (4)    include in the agreement with the certified minority business enterprise subcontractor a requirement that the subcontractor submit a monthly report to the Commission that:
            (i)    identifies the prime contract; and
            (ii)    lists payments received from the contractor in the previous month and invoices sent to the contractor that have not been paid; and
        (5)    submit a monthly report to the Commission that lists:
            (i)    unpaid invoices that are more than 30 days old received from certified minority business enterprise subcontractors; and
            (ii)    the reason payments have not been made.
    (c)    (1)    (i)    On completion of a contract or before final payment or release of retainage, the Commission may require a general contractor on a contract having a minority business enterprise subcontracting goal to submit to the Commission a final report of all payments made to or withheld from minority business enterprise subcontractors.
            (ii)    The final report shall be in affidavit form and under the penalties for perjury.
        (2)    Each solicitation shall contain notice of the requirements of this subsection.
    (d)    (1)    On a finding that a contractor is noncompliant, the Commission shall notify the contractor in writing of the findings and state the required corrective action.
        (2)    A noncompliant contractor shall:
            (i)    initiate the corrective action within 10 days after receiving the written notice; and
            (ii)    complete the corrective action within the time specified by the Commission.
    (e)    If the Commission finds that a general contractor is in material noncompliance with minority business enterprise contract provisions and the general contractor fails to take the corrective action required by the Commission, the Commission may:
        (1)    terminate the contract;
        (2)    refer the general contractor to the general manager of the Commission or the full Commission for appropriate action; or
        (3)    initiate any other specific remedy identified in the contract.