Code of Maryland Regulations
Title 21 - STATE PROCUREMENT REGULATIONS
Subtitle 11 - SOCIOECONOMIC POLICIES
Chapter 21.11.03 - Minority Business Enterprise Policies
Section 21.11.03.03 - Definitions
Universal Citation: MD Code Reg 21.11.03.03
Current through Register Vol. 51, No. 19, September 20, 2024
A. In this chapter, the following words have the meanings indicated.
B. Terms Defined.
(1) "Certification" means a determination by
the certification agency through the procedures outlined in this chapter that a
legal entity is a minority business enterprise for purposes of these
regulations.
(2) "Certification
agency" means the Department of Transportation, Office of Minority Business
Enterprise.
(3) "Control" means the
exercise of the power to manage and operate a business enterprise.
(4) "Certified minority business enterprise"
means a minority business enterprise that holds a certification issued by the
certification agency.
(5)
Economically Disadvantaged Individual.
(a)
"Economically disadvantaged individual" means a socially disadvantaged
individual whose ability to compete in the free enterprise system has been
impaired due to diminished capital and credit opportunities as compared to
others in the same or similar line of business who are not socially
disadvantaged.
(b) "Economically
disadvantaged individual" does not include an individual whose personal net
worth exceeds $1,500,000, as adjusted annually for inflation by the
certification agency according to State Finance and Procurement Article, §
14-301,
Annotated Code of Maryland.
(6) "Industry type" means the following
procurement categories:
(a)
Construction;
(b) Architectural and
engineering services and other construction-related professional
services;
(c)
Maintenance;
(d) Information
technology;
(e) Services;
and
(f) Goods, supplies, and
equipment.
(7) "Joint
venture" means an association of two or more persons to carry out a single
business activity for a limited purpose or time.
(8) "MBE classification" means the racial,
ethnic, or gender classification, as stated in §B(15) of this regulation,
assigned to the firm by the certification agency upon the firm obtaining MBE
certification.
(9) "Minority
business enterprise (MBE)" has the meaning stated in COMAR
21.01.02.01B(54).
(10) "Office of Minority Affairs" means the
Governor's Office of Minority Affairs.
(11) "Ownership" means:
(a) For a sole proprietorship, that the sole
proprietor is a socially and economically disadvantaged individual, and if the
ownership interest held by a socially and economically disadvantaged individual
is subject to formal or informal restrictions such as options, security
interests, agreements, etc., held by a person who is not a socially and
economically disadvantaged individual, the options, security interests,
agreements, etc. held by that person may not significantly impair the socially
and economically disadvantaged individual's ownership interest;
(b) For a partnership, or limited liability
company (LLC), that at least 51 percent of the partnership's or LLC's assets or
interests are owned by a socially and economically disadvantaged individual or
individuals, and if the ownership interest held by a socially and economically
disadvantaged individual is subject to formal or informal restrictions such as
options, security interests, agreements, etc. held by a person who is not a
socially and economically disadvantaged individual, the options, security
interests, agreements, etc. held by that person may not significantly impair
the socially and economically disadvantaged individual's ownership interest;
and
(c) For a corporation, that
legal and equitable ownership of at least 51 percent of all voting stock and a
cumulative total of at least 51 percent of all class of stock, bonds, or other
securities issued by the corporation is owned by socially and economically
disadvantaged individuals, and if an ownership interest held by a socially and
economically disadvantaged individual is subject to formal or informal
restrictions such as options, security interests, agreements, etc. held by a
person who is not a socially and economically disadvantaged individual, the
options, security interests, agreements, etc. held by that person may not
significantly impair the socially and economically disadvantaged individual's
ownership interest.
(12)
Personal Net Worth.
(a) "Personal net worth"
means the net value of the assets of an individual remaining after total
liabilities are deducted.
(b)
"Personal net worth" includes the individual's share of assets held jointly or
as community property with the individual's spouse.
(c) "Personal net worth" does not include:
(i) An individual's ownership interest in a
business applying for certification by the certification agency;
(ii) The individual's interest in a certified
MBE;
(iii) Equity in the
individual's primary place of residence; or
(iv) Up to $500,000 of the cash value of any
qualified retirement savings plans or individual retirement accounts.
(13) "Procurement
agency" means a principal department or independent unit of the Executive
Branch of the State, not otherwise exempted from application of this chapter,
that is authorized by law to procure.
(14) Race Neutral Methodologies.
(a) "Race neutral methodologies" means
methodologies that are or can be used to assist all businesses, notwithstanding
the social, economic, racial, or sexual composition of those who own or control
the business.
(b) "Race neutral
methodologies" includes:
(i) Small business
measures under COMAR 21.11.01;
(ii)
Race neutral measures under Regulation .07 of this chapter; and
(iii) An evaluation of each potential
contract to determine and, if practicable, abate any impediments to full and
open competition with an emphasis on removing impediments that affect small and
disadvantaged businesses.
(15) Socially Disadvantaged Individual.
(a) "Socially disadvantaged individual" means
an individual who has been subjected to racial or ethnic prejudice or cultural
bias within American society because of membership in a group and without
regard to individual qualities.
(b)
"Socially disadvantaged individual" does not include an individual
disadvantaged from circumstances within the control of the
individual.
(16) Socially
and Economically Disadvantaged Individual.
(a) "Socially and economically disadvantaged
individual" means a citizen or lawfully admitted permanent resident of the
United States who is socially disadvantaged and economically
disadvantaged.
(b) "Socially and
economically disadvantaged individual" is rebuttably presumed to include a
member of any of the following groups:
(i)
African American, which includes an individual having origins in any of the
black racial groups of Africa;
(ii)
American Indian/Native American, which includes an individual having origins in
any of the original peoples of North America and who is a documented member of
a North American Tribe, Band, or otherwise has a special relationship with the
United States or a state through treaty, agreement, or some other form of
recognition, including an individual who claims to be an American Indian/Native
American and who is so regarded by the American Indian/Native American
community of which the individual claims to be a part, but not including an
individual of Eskimo or Aleutian origin;
(iii) Asian, which includes an individual
having origins in the Far East, Southeast Asia, or the Indian Subcontinent, and
who is so regarded by the community of which the person claims to be a
part;
(iv) Hispanic, which includes
an individual of Mexican, Puerto Rican, Cuban, Central or South American, or
other Spanish culture or origin, regardless of race, and who is so regarded by
the community of which the person claims to be a part;
(v) Physically or mentally disabled, which
includes an individual who has an impairment that substantially limits one or
more major life activities, who is regarded generally by the community as
having such a disability, and whose disability has substantially limited the
individual's ability to engage in competitive business;
(vi) Women, which includes an individual
woman, regardless of race or ethnicity; or
(vii) Any other individual found by the
certification agency to be socially and economically disadvantaged.
(c) "Socially and economically
disadvantaged individual" does not include an individual whose personal net
worth exceeds $1,500,000, as adjusted annually for inflation by the
certification agency according to State Finance and Procurement Article, §
14-301,
Annotated Code of Maryland.
(17) "Solicitation notice" means public
notice of a solicitation for bids, offers, or expressions of interest which
contains the nature of the procurement, relevant dates, the availability of
solicitation documents, if any, and other pertinent information. The notice may
consist of but is not limited to:
(a) Legal
advertisement;
(b) Newspaper
notice;
(c) Bid board
notice;
(d) Bid or proposal
documents including the invitation for bids or request for proposals;
or
(e) eMaryland Marketplace
notice.
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