MarylandHB 15782026 Regular SessionHouseWALLET

State Procurement - Procurement Preferences - Reauthorization and Revisions

Sponsored By: Sponsor information unavailable

Signed by Governor

State ProcurementAnnotated Code of MarylandCannabis -see also- CannDist; CannProd; Smok&VapCertificationsCommerce and Business -see also- ElectrComm; ForeignTr; etc.Committee ChangesDiscriminationDisparityEvaluations and ReviewsGaming and GamblingGeneral Assembly -see also- AELR Cmte; LegislativePolCmteLicenses -see also- AB Lic; Certifications; DrLic; PermitsLotteryMinority Business EnterprisesMinoritiesPrivatizationProcurementReportsRules and RegulationsSmall BusinessSports and RecreationStudies -see also- Commitees & Commissions; ReportsTimeVideoWind EnergyWomen -see also- GenderWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 1 costs, 2 mixed.

MBE goals for cannabis, wind, P3s, wagering

The law applies the state minority‑business rules to cannabis, offshore wind, public‑private partnerships, and sports wagering, as allowed by the U.S. Constitution. Within 6 months of a cannabis license or an approved offshore wind order, the Office sets a plan for reasonable MBE goals and procurement steps. Offshore wind applicants must also file progress reports every 6 months. The Board cannot approve a P3 deal until MBE goals and procedures are set. These sections remain in force until July 1, 2031.

MBE program extended to 2031

The state’s MBE rules and related regulations stay in force through July 1, 2031. On or after that date, they are of no effect.

Stronger protections for MBE subs

A contractor cannot remove a listed certified MBE subcontractor without good cause. The contractor must get written consent from the MBE liaison and approval from the unit head. The unit must send a copy of the consent to the Office. This reduces the risk of losing promised subcontract work mid‑contract.

New MBE paperwork and exclusions

Certified MBEs must submit acknowledgments of payments they receive and other requested information. Each unit, with the Office, can list some procurements that are excluded from MBE rules. The Office can also certify that a procurement is not practical for the Small Business Reserve when reviewing related waivers.

Worker benefits at video lottery facilities

Video lottery applicants and licensees must make a good‑faith effort to meet state MBE goals on construction and operations. Licensees must provide employee health insurance and offer retirement benefits. They must also prefer hiring qualified people who live within 10 miles of the facility. Counties with higher minority‑participation rules can apply to the extent possible. These rules stay in effect until July 1, 2031.

MBE studies delayed; legal review added

The law pushes several MBE reports and policy deadlines back to 2030 or 2031. It also requires a review of disparity studies to check if applying MBE rules to cannabis licensing meets constitutional standards.

Easier MBE certification and teaming

The Office must set clear rules to review MBE and similar certifications. Joint ventures formed for a single limited activity can qualify for the Small Business Reserve if they meet size and independence limits.

More MBE oversight and reporting

State units must send each MBE waiver decision to the Office and file a yearly waiver report by July 31. Units must report MBE results each quarter, except the quarter they file the annual report. The yearly report is now due 60 days after the fiscal year ends, and the Office’s annual summary is due by the 5th day of session. The Office keeps a fraud hotline for reporting MBE violations. The Governor’s procurement subcabinet meets quarterly and reports to the Governor by December 31, 2025 and each December 1 after.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 137 • No: 38

Senate vote • 4/8/2026

Third Reading Passed

Yes: 39 • No: 6 • Other: 1

House vote • 3/21/2026