128 [7 8 O p
. A tt ’y
DI S AB LE D P ER S ONS
B L I ND I N D U S T RI E S AN D S ERV IC E S OF M ARYL AN D

— A PPL I CA T I ON OF D I RECT L AB OR R E Q UI RE MEN T S AN D P ROC UR E MEN T P RE FE RE NC E S T O BISM

— I NV EST MENTS B Y BISM

M ay24, 1993
D r
. N ancy S. G r as m i ck S ta te S u p e rin ten d e n t o

f Sc h o o ls
Y o u h av e re q u ested o u r o p inion o n ce rt ain issu es o f statuto ry i nterpr et at i on r el at ed t o t he oper at i on of B l i nd I ndus t r i es and Ser vi ces of M ary l and ( “B I SM ”)

. Speci fi cal l y , y ou p rese ntt he foll ow i ng qu est i on s: 1. D o t he r equi r ement s fort he s al e of “ pr oduct s m ade byt he bl i nd” i n A r t i cl e 3 0 , §30A ( a) t hr ough ( c) of the M ary l and C ode a p p ly to m e rc h a n d ise o r o th e r p ro d u c ts s o ld b yB IS M ? If so , is compl i ance w i t h t he di r ectl aborr equire m ent s m eas ur ed on a p r o d u c t

- b y- p r o d u c tb a s i s , o rf o ra t o t a l f

a c i l i t y?
2. D o t he di r ectl aborr equ i r ement s of A r t i cl e 30, §30A app l yt o the provis i on of v end i ng m achine ser vices ?
3. D oe s t he pr oc ur e mentpr e fe r e nc e e s t a bl i s he d f orBI SM i n T i t l e 14, Subt i t l e 1 of the St at e Fi nance and Pr ocur ementA r t i cl e, M ary l and C ode ( “SF” A r t i cl e) depend upon t h e em p l oym entof a m i ni m al num berof bl i nd i ndi vi dual s i n t he ac t i vi t yforw hi ch the pr efe r ence i s cl ai m ed?
4

. Is th e d isc r e ti o n o f th e B o a rd o f

T ru ste e s o f

B IS M to m a k e in v e stm e n ts lim ited to th e typ e s o f in v e s tm e n ts s p e c if

ied in A rt ic le 9 5 , § 2 2

. F o r th e re a so n s s tate d b e lo w , w e c o n c lu d e a s f o llo w s: 1

. T h e re q u ire m e n ts in A rticle 3 0 , § 3 0 A g o v e rn in g th e sa le of pr oduct s m ade byt he bl i nd appl yt o m erc h andi s e orot her pr oduct s s ol d byB I SM

. C om pl i ance w i t h t h e d ir ectl aborG en. 128] 129 requi rem ents are t o be m easured on a produ ct -by -pr od uc t b a sis , r a t h e rt h a n f

o ra t o t a l f

a c i l i t y. 2

. T h e d ire c t lab o r req u ire m e n ts of A rticle 3 0 , § 3 0 A a p p ly t o the provis i on of v end i ng m achine ser vices

. 3. T he em pl oym ent or t r ai ni ng of s om e mi ni m um num berof b lin d in d iv id u a ls in th e p ro d u c tio n o f g o o d s o r s e rv ice s is n o t a pr econdi t i on t o B I SM ’ s pr ocur ementpr efe r ence underSF T i t l e 14, Subt i t l e 1. B I SM i s r equi r ed, how ever , t o offe ronl yt hos e goods or s ervi ces t hat“di r ect l ybenef i t ” bl i nd i ndi vi duals and, i n s o doi ng, mu s tc o mp l ywi t h t h e d i r e c t l a b o r r e q u i r e me n t s o f Ar t i c l e 3 0 , § 3 0 A.
4. T he di scre ti on of B I SM ’ s B oar d of Trus t ees t o m ake in v e stm e n ts is n o t lim ited to th e typ e s o f in v e stm e n ts a u th o riz e d in A rt ic le 9 5 , § 2 2

. T h is o p in io n is b a se d o n th e f a c ts a v a ilab le to u s in a n a u d it r epor tand otherm at er i al s
. W e s houl d not b e taken t o have addr es s ed anyi s s ue of c om pl i ance w i t h t he l egal r equi r ement s t hat w e out l i ne. N or , of cour s e, do w e comm enton anyof the pol i cy qu est i on s that m i gh tbe raised a bo ut the scop e of B ISM ’s bu si ness end eavo rs
. W e ar e aw ar e, m or eover , o f t he r ece ntcontr over s yr egar di ng B I SM ’ s expendi tur es and hi r i ng p rac t i ces
. T hes e i m por t anti s s ues aboutB I SM ’ s oper at i ons go w el l bey ond t he s cope of t hi s opi ni on, and w e t ake no pos i t i on aboutt hem. W e do obs erve, how ever , t hat beca us e B I SM r ece i ves bot h St at e fi nanci al s uppor t and a si gni fi cant sta tu to ry p ro c u re m e n t p re f e re n c e , co n tin u in g sc ru tin yis e ss e n tial to e n su re th a t B IS M is i n f a c t se rv in g th e in ter e sts o f b lin d in d iv id u a ls i n M ary l and.
I Backg r ound
B l i nd I ndus t r i es and Ser vi ces of M ary land i s a corpor at i on cr eat ed byA r t i cl e 30, §§5 and 6 t o pr ovi de for t he empl oym entand tra in in g o f

b li n d c iti z e n s o f

M a ry lan d . B IS M re c e iv e s a S tate e d u c a t i o n a l g r a n ti n e x c e s s o f o n e m i l l i o n d o l l a r s
. B I S M a l s o e n j o ys130 [7 8 O p
. A tt ’y

The Of ficeof L eg islative Aud i t s of the Department of F iscal 1 Service s issued a spec ial repor t on O ctober

27, 1992 that included, among other points, rec ommendations that an opini on be sought from this office re gar d i n g th e d i re ctl ab o r r equ i re m ent s o f Art i cl e 3 0 , § 3 0 A an d th e r an ge of investments permitted B I SM under State law. a s t atut or ypr efe r ence for t he purc has e of i t s s uppl i es ors ervi ces by S ta te g o v e rn m e n t. S F § 1 4 -1 0 3 (2 ).
A s w e un derst and i t , B ISM c urr e nt l yc ompr i s e s three di vis i on s: th e I n d us t r i es D i vi s i on, t he R ehabi l i t at i on T r ai ni ng Pr ogr am, and the S ervi ces P rogram
. T he Indu stri es D i vis i on ho uses such d i verse ent erpr i s es as in dus t r i al s ew i ng, m anufa ctur i ng, m i cr ofi l m i ng, and c o m m e rc ia l v e n d in g s e rv ic e s
. C omme r c i a l v e n d i n g s e r v i c e s , k n o wn a s BI SM Ven di ng Ser vi ces ( “B V S”) , w er e i ni t i at ed i n t he s pr i ng o f 1989. T hr ough B V S, B I SM pr ovi des and s ervi ces vendi ng m achi nes t hr oughoutt he St at e. T hes e vendi ng serv ic es have gi ven r i s e t o y ourques t i ons reg ard ing the s co p e o f A rt icl e 3 0 , § 3 0 A an d the s tatu tory procurem ent pr eferences. 1

II
H i s t ory of BISM and the Bl i nd V endi ng P rogram A s ea rl yas 1 8 7 4 , the M ary land L eg isl ature ev iden ce d a d esire t o pr ovi de a mechani s m forbl i nd ci t i zens t o earn i ncome t hr ough t he frui t s of thei rl abor

. A tt hatt i m e, t he G ener al A s s embl yauthor i zed t he di r ect or s of the M ary land Ins t i tut i on fort he I ns t ruct i on of the B l i nd t o es t abl i s h w or ks hops and open a st or e fort he s al e of a r t i cl es m anufa ctur ed byt he bl i nd. C hapt er236, L aw s of M ary l and 1874.
T h e g e n e sis o f

B IS M m a yb e f

o u n d in leg isla tio n e n a c ted in 1908, w hi ch es t abl i s hed a w or ks hop i n B al t i m or e C i t yfort he empl oym en t o f bl i nd m en and w om en. T hi s l egi s l at i on ves t ed gener al s uper vi s i on and contr ol of the w or ks hop i n a bo ard of t rus t ees
. T h e boar d of trus t ees w as cons t i tut ed a “ bodycorpor at e” undert he name M ary l and W or ks hop fort he B l i nd. T he W or ks hop w as t o be open f

ort he l aborand manufactur e of a l l bl i nd ci t i zensG en. 128] 131

L ater leg islation authorized workshops elsewhere in the State, a s 2 well as in B altimore City . Chapter 100, L aws of Ma ryland 1955. overt he age of 18. A l l pr ofi t s ar i s i ng fr om t he o p era ti o n of the W or ks hop w er e t o be us ed i n fur t her i ng i t s us eful nes s
. C hapt er566, L aw s of M ary l and 1908. 2
In 1 9 3 9 , the G e n e ra l A ss e m b ly e x p a n d e d th e p e rm iss ib le W o rk sh o p a c tiv iti e s b yp ro v id in g a u th o rityf o r th e W o rk sh o p to iss u e lice n se s to b lin d U .S . citize n s “ f o r th e o p e ra tio n o f

sta n d s in a ll St a t e , c o u n t ya n d mun i c i p a l b u i l d i n g s f o rt h e v e n d i n g of new s paper s , per i odi cal s , c o n f e c t i o n s , t o b a c c o p r o d u c t s and anyot her ar t i cl es , exce pt alcohol i c beve r ages
. ” C hapt er513, L aw s of M ary l an d 1939. T he 1939 amendm ent s al s o perm i t t ed a bl i nd in d iv id u a l 2 1 y e a rs o ld o r o ld e r to a p p ly to th e W o rk sh o p “ to o p e ra te a leg iti m a te b u sin e ss o f

a n y k in d to p ro v id e a liv e lih o o d f o r h im se lf and depe ndent s
. ” Id

. U l t i m at el y , t he G ener al A s s embl ydes i gnat ed t he w or ks hops as “tr ai ni ng and empl oym ent cent er s ” an d changed t he name of the M ary l and W or ks hop fort he B l i nd t o “B l i nd I ndus t r i es and Ser vi ces of M ary l and. ” C hapt er16 4 , L aw s of M ary l and 1973. H ence , b y 1 9 7 3 t he bas i c s t ructur e and s cope of B I SM ’ s bus i nes s w as es t abl i s hed.
I n 75 O pi n ion s of

the At t or ney G ener al1 8 9 ( 1 9 9 0 ) , we d i s c u s s e d i n d e t a i l t h e h i s t o r yo f M a r y l a n d ’ s b l i n d v e n d i n g p r o g r a m. B r i efl y , w e s ai d t hatB I SM ’ s i ni t i al par t i ci pat i on i n t he pr ogr am w as i n r es pons e t o t he fede r al R andol ph- Sheppar d A ctof 1936, codi fi ed a s a me n d e d a t2 0 U. S. C. § § 1 0 7 t h r o u g h 1 0 7 f

. Th e R andol phS hep pard A ctrequi red the S t at e to d e signat e an en t i t yt o li cense bl i nd per s ons t o oper at e vendi ng s t ands on fede r al pr oper t y , and the M ary l and W or ks hop fort he B l i nd w as s o des i gnat ed. C hapt er513, L a w s o f M a ry lan d 1 9 3 9 . E v e n tu a lly , the G e n e ra l A ss e m b ly author i zed the M ary land W or ks hop fort he B l i nd t o l i cens e bl i nd vendor s oper at i ng s t ands on St at e and pr i vat el y - ow ned pr oper t yas w el l

. C hapt er5, L aw s of M ary l and 1955.
I n C hapt er63 of th e L aw s of M ary l and 1958, t he G ener al A ssem b lytr an sfe rred the resp o n sibil ity fo r li ce n sing b li n d v en d o rs t o oper at e on fe der al pr oper t yfr om B I SM t o t he D i v isi on of V o cat i onal R ehabi l i t at i on ( “D V R ”) i n the St at e D epart m entof132 [7 8 O p
. A tt ’y

Am e ndme nts to t

heRand olp h- Shepp ard

Ac t re quir e d th estate s to 3 designate voc ational re habilitation ag encie s, rather than ag encie s for the blind, to adminis ter the f

ederal program for

blind vendors. SeeVocational Rehabilitation Amendments of 1954, Pub. L . No. 83-565, §4, 68 Stat. 663 (1954). Pursuant to Chapter 1 2 o f the L aws of Ma

ryland 1992, the Division of Vocational Reha bilitation i s now known as the D ivi s i on of Re ha bil itativ eSe rv ic e s. E ducat i on. T hu s, w hi l e D V R l i cens ed manager s forfede r al

3 vendi ng fac i l i t i es , t he M ary l and W or k s hop fort he B l i nd l i cens ed b lin d v e n d o rs f

o r S ta te a n d p ri v a te f

a c iliti e s
. T he bl i nd vendi ng pr ogr am w as r euni fi ed byt he ena ct m entof C hapt er743 of the Law s o f M ary l and 1980. T hi s l egi s l at i on amended E D §21- 303( c) t o es t abl i s h D V R as t he admi ni s t r at orof t he M ary l and V endi ng Pr ogr am for t he B l i nd under t he R andol phSheppar d A ct and al s o as t he l i cens i ng agenc y for al l bl i nd vendi ng s t ands i n t he St at e. A lth o u g h d ives ted o f it s li ce n sing au tho ri tyo v er b li n d v en d o rs byt he 1980 l egi s l at i on, B I SM di d notcea s e i t s par t i ci pat i on i n bl i nd ve ndi ng a c t i vi t i e s
. Fora pp r ox i mat e l yt he ne xtt e n y e a r s , BI SM s erved unde r a c ont r actw i t h D V R t o l ocat e, bui l d, and s t aff s nack bar s , caf et er i as , and s undr y s hops i n publ i cl y ow ned bui l ding s and i n pr i vat e bus i nes s es
. T hi s contr actual r el at i ons hi p w as t erm i nat ed in 1 9 9 0

.

III
E m pl oy m ent of

B l i nd Indi vi dual s P urs uant t o A rt i cl e 30, §30A
A. Appli c ab ilit

y of Arti c le 30, §3 0A to BI

SM
A r t i cl e 30, §30A i s e s s e n t i a l l ya trut h- i n- m arket i ng l aw t hathas t he dual eff

ectof pr ot ect i ng cons um ers w h o pur chas e, and bl i nd in d iv id u a ls w h o m a rk e t, pr o d u c ts m a d e b yth e b lin d :

( a) I ti s unl aw ful foranyper s on, a ss o c iatio n , o r c o rp o ra tio n , to se ll, o r o f f e r to s el l , t o t he pub li c anym er chandi s e orot her pr oduct s of anynatur e, w hi ch ar e r epr es ent edG en. 128] 133
t o be pr oduct s m ade byt he bl i n d , u n le s s t he m er chandi s e o r otherpr oduct s have be en actual lym ade orm anufa ctur ed bybl i nd per s o n s as defi ned i n t hi s ar t i cl e. I f the m er chandi s e o rot herpr oduct s ar e made or m anufa ctur ed by a corpor at i on, as s oci at i on or p a rtn e rsh ip , itis u n law f u l f o r su c h p ro d u c ts to b e so l d oroffe r ed fors al e t o t he publ i c as p rod u cts m ad e b ythe b li n d u n less theyare p ro d u c ts m a d e b y th e b lin d a s d e f in e d in th is ar t i cl e. ( b) I t i s unl aw ful foranyper s on, as s oci ati o n , o r co rpo rati o n h av ing pr oduct s for sa le to u se th e w o rd b lin d in th e n a m e o r titl e of the per s on, as s oci at i on , orcorpor at i on unl es s t he per s on, as s oci at i on, orcorpor at i on l i m i t s i t s s al es t o t he s al e of pr oduct s m ade by t he bl i nd as defi ned i n t hi s ar t i cl e. ( c) A pr oductm ad e byt he bl i nd i s one w hi c h i n i t s ma n u f

a c tu r e a n d a s s e mbl yh as i nvol ved the us e of bl i nd w or ker s t o an ext ent cons t i tut i ng not l es s t han s eventy - fi ve per cent of the t ot al per s on n el e ngaged i n t he di r ect lab or hou rs i n the m anu fact ure and assem b ly o f th e p ro d u c t. N o th in g in th is s u b tit le author i zes t he i dent i fi cat i on of g o ods or ar t i cl es as m ade by bl i nd per s ons i f the di r ect lab o r p e rf

o r m e d b yb lin d p e rso n s in connec t i on t here w i t h cons i s t s s ol el yof the packa gi ng orpacki ng t her eof a s di s t i ngui s hed fr om t he m anufa ctur e and as s embl yof goods o r a rticle s. D ire c t lab o r h o u rs sh a ll i n c lu d e a ll hour s i n t he manufactur e and as s embl yof a pr oductm ade bybl i nd per s ons b u tnot i ncl udi ng t i m e spenti n t he admi ni s t r at i on, s upervi s i on, s hi pp ing and i ns pect i on of s uch produ ct s.134 [7 8 O p
. A tt ’y

Al tho ugh a

$1 00 finese e ms m ini mal, “ [e]a c h s a le , o r of fer t o s e ll, 4 of merc handise or products in v i olation of the provisions of this section is a separate of

fense .” A v io latio n o f § 3 0 A is a m isd e m e a n o r, p u n ish a b le b ya f in e o f u p to $1 0 0 a n d , if

t he fine i s not pai d, i m pri sonm ent of up t o 3 0 d ay s. § 3 0 A (f). 4
T o det erm i ne w hether§30A appl i es t o B l i nd I ndus t r i es and Ser vi ces of M ary l and, w e l ook fi r s t t o t he l anguage of t h e statut e. B y i t s t erm s, §3 0A app ears t o apply t o B ISM : B IS M is, i ndi s put abl y , a “c orpor at i on. ” I ti s a w ell

- s et t l ed pr i nci pl e of s t atut or y cons t ruct i on, how ever , t hata s t atut e r egul at i ng per s ons and c o rp o ra tio n s g e n e ra llyd o e s n o t in c lu d e th e S tate , its a g e n c ies , o r its pol i t i cal s ubdi vi s i ons unl es s t he L egi s l atur e has cl ear l y expr es s ed an in te n tio n o th e rw is e
. N at i onw i de Mut ualI

ns ur ance Co. v. U

. S. F idelit y a nd G uar ant

y C o. , 3 1 4 M d

. 1 3 1 , 5 5 0 A

. 2 d 6 9 (19 8 8 ); U nnam ed Physi ci an v. C om m is s i on on Medi cal D is ci pl i ne , 285 M d. 1 , 4 0 0 A

. 2 d 3 9 6 (19 7 9 ).
B I SM as s er t s t hati ti s a St at e age ncyand i s t her efor e out s i de t he s cope of

t he s t atu te, b ec aus e A r t i cl e 30, §30A , cont ai ns no p ro v isio n e x p licitly su b jec tin g th e S tate to its re q u ire m e n ts. A n d it is true that an o p inion o f th is of fice c h a ra c teri ze d B IS M ’s pr edec es s orcorpor at i on, t he M ary l and W or ks hop fo r the Bl i nd, as a S tate a g e n c y su f

f icie n t to q u a lify f

o r th e a d m in istra tio n o f a S tate pl an forfede r al ai d t o t he bl i nd. 21 O pi ni ons of

the At t or ney G ener al 1 7 0 (1 9 3 6 ). See a l so 50 O pi ni ons of the A t t or ney G ener al 188 ( 1965)

. Y etot herop ini ons concl uded thatt he M ary l and W or ks hop fort he B l i nd w as nota Stat e- ow ned i ns t i tut i on and, t her efor e, w as nei t herexempt fr om paym entof col l at e r al i nher i t ance t ax, 23 Opi n i o n s o

f th e At t o r n e

y Gen e r al 6 1 6 ( 1938) , norexempt fr om compl i ance w i t h t he B al t i m or e C i t yB ui l ding C o d e. 40 O pi ni ons of

the At t or ney G ener al120 ( 1955)

. L at er , t hi s offi ce advi s ed thatempl oy ees of the M ary l and W or ks hop fort he B l i nd w er e not St at e empl oy ees
. 53 O pi ni ons of

the At t or ney G ener al249 ( 1968)

. W e dr aw fr om t hi s m i xed hist or i cal r ecor d t he l es s on t hat one mustl ook t o t he cha r act er i s t i cs and fu n cti o ns of B I SM i n t he c on t e xtof t he pa r t i c ul a r s t a tut e a t i s s ue t o de t e r mi ne w he t he rBI SM is in ten d e d to b e v iew e d , fo r p u rp o se s o f th a t st a tu te, a s a S tate e n tity.G en. 128] 135

State app ro p ri ations for B I SM are incor porate d in the annual 5 budg et b i l l as monies appropriated f or a “ State-aide d educational institution.” See, e .g., Chapter 8, L aws of Ma ryland 1993 (appropriating $ 1

. 1 m i l l i o nt o BI S Mfo r fi s ca l year 1 9 9 4 ). Infi s ca lyears 1 9 8 8 thro u gh 1 9 9 3 , B IS M r e c e i v e d a

p p ro x i m at e l y $ 1 m i l l i o n p e r ye ar i n S t at e a i d

. In fi s cal year

1992, BI SM’s total revenue s werein excess of $14 milli on. B lind I ndus tr ies andS ervi ces S peci al R epo rt , Of fi ce of L egis lat iv e Audit s, Depa rtment of F iscal Service s (October 27, 1992). B I SM , l i ke i t s pr edec es s orM ary l and W or ks hop fort he B l i nd, i s a bodycorpor at e cr eat ed fort he gene r al s uper vi s i on and contr ol of tr ai ni ng and e m p l oym entcent er s fort he bl i nd. A r t i cl e 30, §6. Si nce i t s i ncept i on, t he corpor at i on has been governed by a boar d of t rus t ees appoi nt ed byt he G overnor
. T he boar d is requi r ed t o keep pr operr ecor ds of i t s funds and account s , be audi t ed annua l l y , and m ake a n annual r epor t t o t he G overnor , t he G ener al A s s embl y , and th e C h a ir m a n o f

th e J o in t B u d g e t a n d A u d it C o m m itte e
. Id

. A s i de fr om thes e l i m i t ed i ndi ci a of St at e contr ol , B I SM has br oad pow er s t o conductbus i nes s as w oul d any pr i vat e corpor at i on. U n d e r A rticle 3 0 , § 6 (a ), “B IS M h a s th e rig h t to a c q u ire a n d h o ld p ro p e rty , rea l, pe rso n a l, an d m ix e d , in a n ym a n n e r w h a tso e v e r, to s ue and be s ued, and t o m ake a nd us e a c om m on s eal , w i t h t he r i ght to a lter a n d c h a n g e th e sa m e a t an ytim e .” S im ilarly , B IS M h a s “ f u ll p o w er to e stab li sh , m aintain, direc t and su p erv ise all m att ers per t ai ni ng t o bl i nd i ndus t r i es , it s m ai nt enanc e and r egul at i on, i ncl udi ng t he pur chas e of a l l m achi nery and mat er i al s as m ays eem t o t hem s ui t abl e and nece s s ary , and t he bar t erorexcha nge of a r t i cl es o r m an u fa cture s en tru sted to the m fo r d ispo sal. ” A rt icl e 3 0 , § 6 (d). Itis em p o w ere d to app o int a co rpo rate sec retary an d o ther n ec essa ry em p loy ee s an d to f

ix the irco m p en sati o n
. A rt icl e 3 0 , § 6 (b).
I n p r a c t i c e , B I S M h a s c o n d u c t e d i t s e l f m u c h a s a p r i v a t e e n t i t y, o p e ra tin g in a c c o rd w ith its o w n b y law s, se tti n g c o m p e n sa tio n f o r its e m p lo y e e s, a n d o b tain in g sta tu s a s a n o n p ro f it, c h a ritab le corpor at i on under§501( c) ( 3 ) o f t he I nt ernal R evenue C ode. A l t hough B I SM r ece i ves m oneyfr om t he St at e pur s uantt o a gr ant agr eement , t he St at e i s underno s t atut or yr equi r ementt o fund B I S M. 5
A t t orneyG eneral B urch de scr ib ed B ISM ’s predecessor as a “s emi

- aut onom ous corpor at e ent i t y . ” 53 O pi ni ons of

the At t or ney G ener ala t 2 4 9 . A n o th e r w a y t o p u t it i s th a t B IS M is a “ q u a si-136 [7 8 O p
. A tt ’y

Th ere c e ipt

of sp e c ial privi le g e s is a

hallm ark of a qu a si- pu bli c 6 corporation. Potter v. Be thesda Fire De p’t, Inc., 59 Md. App. 228, 235, 474 A.2d 1365 (1984), vac ated o n o ther g ro un ds, 302 Md. 281, 487 A.2d 288 (1985). As discussed in Par

t II above, BI SM ha s had no licensing 7 responsibilities since 1980. p u b lic c o rp o ra tio n .” Q u a si-p u b lic c o rp o ra tio n s a re p r iv a te in ow n ershi p, “‘ butw hi ch, nevert hel es s , byr eas on of the natur e and ext entof thei roper at i ons and ef fec ton t he w el far e of the publ i c at l a r g e , h a v e b e e n s t y l e d q u a s i

- p u b l i c c o rp o r a t i o n s
. ’ ” P ot t erv. B e th e s da F ire D ep ’t , 309 M d. 347, 357, 524 A

. 2d 61 ( 1987) (q u o tin g 1 W

. F le tc h e r & C . S w e a ri n g e n , C yclopedi a of

the Law of P ri vate C orpo rat i on s § 6 3 , at 60 0 (19 8 3 rev
. v o l. )).
B IS M p lays a n im p o rta n t, l e g isla tiv e lyre c o g n ize d ro le in p rov iding fo r th e w elfa re o f b li n d p erso n s. Its a c tivit ies are

“‘ aff ect ed w i t h a publ i c i nt er es t

. . . . ” P ot t er , 309 M d. at 358 ( ci t at i on om i t t ed)

. I n r ecogni t i on o f it s r ol e, B I SM r ece i ves cert ai n s peci al p ri v il eg es, l ike th e p roc u rem en t pref ere n ce d iscu ssed in P art IV bel ow
. B I SM , t her efor e, i s notm er el ya pri vat e corpor at i on )it i s

6 a quas i

- publ i c one. Butt hi s l a be l do e s no tr e s ol ve t he qu e s t i on w he t he rBI SM sh o u ld b e v iew e d a s e x c lu d e d f ro m A rticle 3 0 , § 3 0 A ju st a s if it w ere a S tat e a g en cy
. “N o t al l q u a si- p u b li c c o rpo rati o n s are g o vernm ent al i n natur e .
. . . ” P ot t er , 3 0 9 M d . a t 3 5 8

. S e e , e .g ., Ma ryla n d

& P a
. R

. R

. C o
. v. Merc a n ti le-Sa fe D ep o sit

& T ru st C o ., 2 2 4 M d . 3 4 , 3 9 , 1 6 6 A .2 d 2 4 7 (1 9 6 0 ) (ra ilro a d ). B IS M , d e sp ite its pu bli c w e lf

are r ole, do es not exerci se gov ernm ental po w ers
. Just 7 as t he C our ti n P ot t erh e ld a p a rtic u la r s ta tu te to e n c o m p a s s o n ly gover nm ent al , quas i

- publ i c corpor at i ons , a di f f er ent s t at ut e m i ght e n c o m p a s s o n ly n o n -g o v e rn m e n ta l, q u a s i- p u b lic c o rp o ra tio n s
. T hat i s , i ndeed, o u r cons t r uct i on of A r t i cl e 30, §30A

. T he u s u a l ru le o f c o n s tru c ti o n w o u ld lea d u s to c o n c lu d e th a t t h e term

“ c o rp o ra tio n ” in § 3 0 A d o e s n o t e n c o m p a s s g o v e rn m e n ta l, q u a s ip u b lic c o rp o ra ti o n s
. B u t w e s e e n o re a s o n w h y th e term “corpor at i on” i n t hi s cont ext s houl d excl ude a non- gover nm ental , q u a s i- p u b lic c o rp o ra tio n lik e B IS M

.G en. 128] 137

Although Article 1, §8 of the Code sets out a ruleof construc tion 8 that “ [t]hesin gula

r a lw ay s inc lud e s the plu

ral, a nd vic evers a

.. ., ”thi s r ule (continued...) T he St at e and i t s s ubdi vi s i ons ar e or d inaril yexcl uded fr om gener al l yappl i cabl e s t atut es t o av o i d pot ent i al i m pai r m entof the St at e’ s s overei gnt y– “‘ t he r eas oni ng appl i cabl e t o [ci t i zens g e n e ra lly ] ap p lies w ith v e ry d if f e re n t, a n d o f

ten c o n tra ryf

o r c e , to t he governm enti t s el f. ’ ” Stat e v. Mi l bu rn , 9 G il l 1 0 5 , 118 ( 1850) (cit ati o n o m itted). B IS M is n o t th e g o v ern m en t. N o r i s B IS M ’s publ i c w el far e r ol e com pr om i s ed by compl i ance w i t h §30A

. I ndeed, t he empl oym entr equi r ement s of that s ect i on ar e ent i r el ycons onant w i t h B I SM ’ s obj ect i ve of i ncr eas i ng empl oym entoppor tuni t i es for b lin d p e rs o n s
. B. Co mp lia n c e W

ith th e Dir e c t

La b o rRe q u ir e m e n t

s o f §3 0 A
H a v in g d e ter m in e d th a t A rticle 3 0 , § 3 0 A a p p lies to m er chandi s e orot herpr oduct s s ol d by B I SM , w e t ur n t o t he ques t i on w hethercompl i ance w i t h §30A i s r equi r ed on a pr oduct

- by

- pr oduct bas i s
. W e st ar tw i t h t he l anguage of the s t atut e i t s el f. A r t i cl e 30, §3 0A (c) defines “produ ctm ade b yt he b l i nd ” as foll ow s:

A produ ct m ade b yt he b l i nd i s one w hi ch i n its m anufa ctur e and a s s embl yhas i nvol ved t he us e of b l i nd w or ker s t o an ext ent cons t i tut i ng not l es s t han s eventy - fi ve per cent of t he t ot al per s onnel engage d i n t h e d ir ect lab o r h o u rs in th e m a n u f a c tu re a n d a ss e m b ly o f th e p ro d u c t ..

.. D ire c t lab o r h o u rs s h a ll i ncl ude al l hour s i n t he manufactur e and as s embl yof a pr oduct

m ade by bl i nd per s ons bu tnoti ncl udi ng t i m e s penti n t he admi ni s t r at i on, super vi s i on, s hi ppi ng and i nspecti on of suc h p roducts

. ( E m phas i s added. ) A l tho u gh t he s t atut e does notaddr es s t he ques t i on s peci fi cal l yr ai s ed, i tdoes r efe r to “pr oduct ” onl yi n t he s in g u la r. Cf

. §30A ( d) , ( e) , and ( e- 1) ( r efe r r i ng t o “pr oduct s , ” not“a pr oduct ”)

. T h u s, t he pl ai n l anguage of the s t atut e s ugges t s t hat com p l i ance w i t h t he di r ectl aborhour s r equi r ementm us tbe on a produ ct -by -pr od uct basi s. 8138 [7 8 O p
. A tt ’y

(...continued) 8 i s i n ap p l i cab l e i f i n co n s i s t ent w i thth e l egi s l at i v e i nt entun d er l yi n g a particula r statute. State Tax Comm’n v. H arrington , 126 Md. 157, 94 A. 537 (1915). As w e explain below, a construction of §30A(c) that lumped all products toge ther would be inconsistent w ith the purpose o f the subsection. B I SM cont ends t hati tneed notcompl y w it h t he di r ectl abor ho u r re qui r ement on a pr oduct

- by

- pr oductbas i s , as s er t i ng i ns t ead t hati tneed onl y compl y w i t h t he di r ectl aborhourr equi r ementon an over al l bas i s by fac i l i t y . I n s uppor t of t hi s as s er t i on, B I SM ci t es t he fede r al J avi t s - W agner - O ’ D ayA ct( “J W O D ” Act ) , whi c h e s t a b l i s hed a pr ogr am t o i ncr eas e empl oy m entand tr ai ni ng oppor tuni t i es for p e r s o n s wh o a r e b l i n d o rh a v e o t h e rs e ve r e d i s a b i l i t i e s
. 4 1 U. S

. C. §§46 et s eq. U nder t he J W O D A ct , a C om m i t t ee for Pur chas e Fr om t he B l i nd and otherSever el yH andi cappe d es t abl i s hes and publ i s hes i n t he Feder al R egi s t er a pr ocur ementl i s t

. A nyent i t yof the fe der al governm enti nt endi ng t o proc u re c om m odi t i es ors ervi ces on t he pr ocurem en t l istm u st aff o rd p ri o ri tyto a “ q u ali fied n o n p rof itag ency fort he bl i nd or s uch an agenc yforot hers ever el yhandi cappe d. ” 41 U

. S. C

. §48. T he J W O D A ct defi nes a “qua l i fi ed nonpr ofi tagenc y f o rt h e b l i n d ” a s a n a g e n c y:

( A ) o rgani zed unde rt he l aw s of the U ni t ed St at es orof anySt at e, oper at ed i n t he i nt er es tof bl i nd i ndi vi dual s , and the ne t in c o m e o f

w h ich d o e s n o t in u re in w h o le o r in par tt o t he benefi t of any s har ehol derorot her in d iv id u a l; (B ) w h ich c o m p lies w ith a n ya p p lica b le o cc u p ati o n al he alth an d saf etystan d ard pr es cr i bed byt he Secr et aryof Labor ; and ( C) whi c h i n t h e p r o d u c t i o n of comm odi t i es and i n t he pr ovi s i on of s ervi ces

. . . dur i ng t he fi s cal y earempl oy s bl i nd i ndi vi dual s for not l es s t han 75 percentum of t he man- hour s of di r ect l abor r equi r ed fort he pr oduct i on or pr ovi s i on of t he comm odi t i es or ser vices

.G en. 128] 139
4 1 U .S .C . § 4 8 b (3 ).
A l t hough t he J W O D A ctand i m pl ement i ng r egul at i ons , 41 C

. F. R

. §51- 1. 3, pr ovi de a di r ect l abor r equi r ements i m i l art o t hats et outi n A r t i cl e 30, §30A , t he fe der al s t atut e may b e i nt erpr et ed as p e r m i t t i n g t h e d i r e c tl a b o rr e q u i r e m e n tt o b e m e t o n a n a g e n c y- b yagenc ybas i s , s i m pl ybeca us e the di rec tl abori s m eas ur ed i n t he pr ovi s i on of “c om m odi t i es or s ervi ces , ” i n t he aggr egat e. A s s um i ng fordi s cus s i on purpos es thats uch an i nt erpr et at i on i s acc ur at e, t he di r ectl aborpr ovi s i ons of the J W O D A cthave no be ar i ng on t he i nt erpr et at i on of A r t i cl e 30, §30A

. B y i t s very t erm s , t he JW O D A ct i s di r ect ed onl yt o fede r al agenc i es and onl ypl ace s l i m i t at i ons on t he fede ral procurem ent of cert ai n produ ct s m ade b ybli nd i nd i vidual s. T hus , t her e i s no confl i ct w i t h §30A , w hi ch pr ovi des a y ar ds t i ck for m e a su rin g w h e th e r a p ro d u c t to u ted a s o n e “ m a d e b y th e b lin d ” is in fac ts o m ade f

ors al e i n t hi s St at e. Suppor t for compl i ance on a pr oduct

- by

- pr oductbas i s i s found i n t he l egi s l at i ve hi s toryand s t ructur e of A r t i cl e 30. A l t hough t he Gen e r a l As s e mbl yh a s mod i fi ed and e xpanded BISM ’ s funct i ons and s t ructur e overt i m e, t he nucl eus of l egi slat ive i nt enthas r emai ned in tac t: th e e n titye x ists to b e n e f it b lin d c iti z e n s o f

M a ry lan d . It i s w i t hi n t hi s cont ext that § 30A m us tbe i nt erpr et ed. Pr ovi s i on of g o o d s a n d se rv ice s n e c e ss a rilyin v o lv e s a ra n g e o f jo b s. T o p e rm it compl i ance on a fac i l i t y - by

- fac i l i t y bas i s w oul d per m i tt he s hunt i ng o f b lin d in d iv id u a ls in to lo w e r p a yin g , les s d e sira b le jo b s w h ile s ig h te d in d iv id u a ls f

ille d th e m o re lu c ra tiv e p o s itio n s
. T o g ive ef

fe ct to w h at w e b eli ev e w as th e G en era l A ssem b ly ’s obj ect i ve i n enac t i ng A r t i cl e 30, §30A , w e conc l ude thatcompl i ance w i t h t h e d i r e c tl a b o rr e q u i r e m e n t s o f § 3 0 A m u s tb e o n a p r o d u c t

- b ypr oductbas i s
. I f the G ener al A s s embl yconcl udes that a di ffe r ent o u tco m e is p re f

e rre d , o f

c o u r s e it m a yc h a n g e th e sta tu te a c c o rd in g ly.
C. Appli c a b ilit

y o f th e Dir e c t

La b o rRe q u ir e m e n t

to the P r ovis i on of

Vending Machine Ser vi ces A s des cr i bed above , B I SM ’ s “i ndus t r ial ” ac t i vi t i es i ncl ude v e n d in g m a c h in e se rv ice s p ro v id e d b y B V S . T h e item s a c tu a llyso ld i n t he vendi ng m achi nes ar e not m ade byt he bl i nd, butt he vendi ng ser vice di vis i on em ploy s som e bli nd i nd i vidual s.140 [7 8 O p
. A tt ’y
A r t i cl e 30, §30A ( b) m akes i tunl aw fu l f ora “c orpor at i on h a v in g p ro d u c ts f

o r s a le to u s e th e w o r d b l in d in th e title o f th e
... corpor at i on u n less t he .

. . corpor at i on l i m i t s i t s s al es t o t he s al e of pr oduct s m ad e byt he bl i nd as defi ned i n t hi s ar t i cl e”. T hr ough B V S , B IS M h a s “ p ro d u c ts f o r sa le” ; it a lso h a s the w o rd “ b lin d ” in its tit le. A lit e ra l re a d in g o f th e sta tu te w o u ld th u s re q u ire p ro d u c ts s ol d byB V S t o m eett he def i ni t i on of “pr oduct s m ade byt he bl i nd” w i t hin §30 A , t herebyrequi ri ng bli nd i nd i vidual s t o co m pri se atl east 75 per cent o f the t ot al per s onnel engage d i n t he manufactur e and a s s e m b ly o f

th e c a n d yb a rs , s o d a , a n d th e lik e s o ld th ro u g h B V S

. W ere w e to a p p lythe “ p lai n m e a n ing ” ru le of statu tory cons t ruct i on i nfl exi bl y , w e w oul d be for ced t o t he conc l us i on t hat B I SM co u l d n e v e rb e a d i s t r i b u t o ro f b r a n d

- n a me me r c h a n d i s e or pr ovi de others uch s ervi ces
. T he M ary l and C our tof A pp ea ls ha s h eld t hatt he pl ai n m eani ng rul e i s notr i gi d, how ever , not i ng t hat

“ leg isla tiv e p u rp o se is c ritica l, th a t p u rp o se m u st b e d isc e rn e d in lig h t o f c o n tex t, an d th a t sta tu tes a re to b e c o n stru e d re a so n a b lyw ith t he r efe r ence t o t he purpos e t o be ac compl i s hed. ” Kacz or ow s kiv. C i t y of Ba l t i m ore , 3 0 9 Md

. 5 0 5 , 5 1 6 , 5 2 5 A

. 2 d 6 2 8 , 6 3 3 ( 1 9 8 7 )

. We m u st b e g in w ith “ th e w o rd s o f th e sta tu te, r e a d in lig h t o f th e f u ll cont exti n w hi ch theyappea r , and i n l i ghtof ext ernal m ani fes t at i ons of i nt ent or gener al purpos e avai l abl e t hr ough ot herevi dence

. ” B ane v . S ta te , 327 M d. 305, 308, 609 A

. 2d 313, 314 ( 19 9 2 )

. H ence , “w e do not r ead par t i cul ar l anguage i n a s t at ut e i n i s ol at i on or out of cont ext ; r at her , w e co n st r ue s t at ut or y l anguage i n l i ght of t he L egi s l at ur e’ s gener al pur pos e and i n t he cont ext of t he s t at ut e as a w h o l e. ” St at e v. C r es cent C i t i es Jayc ees Foundat i on, I nc. , 330 M d

. 4 6 0 , 6 2 4 A

. 2 d 9 5 5 , 9 5 9 , (19 9 4 ).
T he ful l cont extof §30A m akes i t obvi ous t hatt he i nt entof the G e n e ra l A ss e m b lyw a s to p e r m it B I S M to p ro d u c e b o th tan g ib le i t ems and s ervi ces
. Sect i on 30A i s par t of a l egi s l at i ve sc heme, dat i ng back t o t he l at t erpar tof the ni n et eenth centur y , t o pr ovi de em p loy m en t fo r b li n d ind ividu als. A s n o ted i n the l eg isl ati v e h ist o ry s etfor t h above, A r t i cl e 30 pr ovi des not onl y for t he es t abl i s hm entof B I SM butal s o fort he appl i cat i on t o B I SM of “a nybl i nd per s on of t he age of 18 y ear s orm or e, des i r i ng t o oper at e a l egi t i m at e bu si ness of a ny k ind

to p ro v id e a liv e lih o o d f o r h im s e lf

a n d d e p e n d e n ts .” A r t i c l e 3 0 , § 8 ( e mph a s i s a d d e d )

. Ar t i c l e 3 0 g i v e s BI SM b r oad pow er s t o oper at e under t he name of “B l i nd I ndus t r i es and Ser vi ces of M ary l and” a nd di r ect s B I SM t o b e o p en fort he “l aborandG en. 128] 141

Th e seprov isi on s w e retrans ferre d e ff e c tiv eJuly

1, 19 81 to S F Ti tle 9 14, Subtit le 1. m anufa ctur es of al l bl i nd ci t i zens of M ary l and .

. . . ” A rt icl e 3 0, §6 ( emphasi s added)

. F u r t her m or e, St at e pr ocur ementpr efe r ence s c u rre n tlyf

o u n d in S F § § 1 4 -1 0 3 th ro u g h 1 4 -1 0 5 w e re o rig in a lly inclu d ed as § 6 A an d § 6 D w ith in A rt icl e 3 0

. T h ese p ref ere n ce s are for t he pur chas e of s uppl i es and s ervi ces fr om B I SM

. A s ear l yas 9 1939, t he Legi s l atur e pr ovi d ed B I SM ’ s pr edec es s or , t he M ary l and W or ks hop fort he B l i nd, w i t h t he author i t y t o i s s ue l i cens es t o bl i nd ind ividu als fo r th e o p era ti o n o f stan d s fo r th e v en d ing o f n ew sp ap er, per i odi cal s , confe ct i ons , toba cco pr oduct s and anyot herar t i cl es e x c e p t a lc o h o lic b e v e ra g e s
. Al t h o u g h b l i n d p e o p l e n e e d n o th a v e ma n u f a c tu r e d t h e i t e ms s ol d t hr ough t he vendi ng s ervi ces of B I SM , w e conc l ude thatbl i nd peopl e mu st c o m pr i s e atl eas t75 per centof the vendi ng s ervi ces per s onnel

. D es pi t e i t s l ongs t andi ng r ecogni t i on t hat B ISM w as pr oduci ng bot h t angi bl e i t ems and s ervi ces , t he Legi s l atur e neve r excl uded B I SM ’ s vendi ng ( oranyo ther ) s ervi ces fr om t he di r ect l aborr equi r ement s of §30A

. Fr om t hi s fac tw e ca n onl yconcl ude th a t th e in ten t o f

th e G e n e ra l A ss e m b lyw a s to e n c o m p a ss b o th t angi bl e i t ems and s ervi ces i n t he t erm s “pr oduct s orm er chandi s e” i n §30A

. I ndeed, gi ven the us e of the t erm “m erc h an d ise , ” w hi ch r efe r s t o goods s ol d i n comm er ce, t he t erm “pr oduct s ” m us t be t aken to h a v e a b ro a d e r sc o p e , f o r if it t o o e n c o m p a ss e d o n lytan g ib le i t ems, o n e term or the otherw oul d be s urpl us age. T o avoi d t hat res ult , w e con strue “produ ct s” broadlyt o e nco m pass services , a p p ly in g th e re a so n in g o f a f e d e ra l ap p e a ls c o u rt:
In its b ro a d e st s e n s e , the ter m “ p ro d u c t” denot es anyt hi ng w hi ch i s pr oduced. Si nce economi c ac t i vi t yi ncl udes the r endi t i on of s er vi ces , i ti s appr opr i at e, w her e the cont ext ot herw i s e perm i t s , to r efe rt o a compl et ed s e rv ic e a s a “ p ro d u c t.”
Gr e a t Wes t e r n Br o a d c a s t i n gCor p
. v
. NLRB , 3 1 0 F .2 d 5 9 1 , 5 9 5 (9 th C ir . 1 9 6 2 ).
T h u s, w e c o n c lu d e th a t B IS M m u st c o m p lyw ith § 3 0 A in a ll r es pect s , i ncl udi ng t he r equi r ement of m ai nt ai ni ng a 75 per cent t o 25142 [7 8 O p
. A tt ’y
per centr at i o of bl i nd t o s i ght ed i ndi vi dual s i n t he pr ovi s i on of vendi ng ma c h i n e s e r v i c e s
. Th i s c o n c l u s i o n g i v e s f u l l e f f e c tt o t he l egi s l at i ve purpos e evi d ent i n t he over al l s t atut or ys cheme

)to di r ect l y benef

i t bl i nd i ndi vi dual s t hr ough t he pr ovi s i on of traini ng a n d e m p lo ym e n t.

IV

B I SM ’ s P rocure m ent P ref ere nce F or V endi ng M achi ne Servi ces SF T it le 14 m ani fes t s t he St at e’ s i nt er es ti n pr om ot i ng t he w el far e of di s advant aged c i t i zens bygr ant i ng s uppor t i ng or gani zat ion s a p r ocur ementpr efe r ence
. Subt i t l e 1 of SF T i t l e 14 r equi r es uni t s of St at e governm entt o pr ocur e nee ded pr oduct s and s ervi ces fr om ei t herSt at e U s e I n dus t r i es , B l i nd I ndus t r i es and Ser vi ces of M ary l and, or shel t er ed w or ks hops befor e s ol i ci t i ng pu bli c bids. S pecifi cal l y , S F §1 4-103 provides as fol l ow s:

T he St at e ora St at e aided orcontr ol l ed e n t i t ys h a l l b u ys u p p l i e s a n d s e r v i c e s f r o m: (1 ) S tate U se In d u strie s, a s p ro v id e d in A r t i cl e 27, § § 680 t hr ough 681M of the C ode i f S t at e U s e Indus t r i es pr ovi des t he suppl i es or ser vices ; ( 2) B l i nd I ndus tr ie s and Ser vi ces of M ary l and, i f: ( i ) B l i nd Ind u st r i es and Ser vi ces of M ary l and pr ovi des t he s uppli es or s er vi ces ; and ( i i ) St at e U s e I ndus t r i es does not pr ovi de the s uppl i es ors ervi ces ; or ( 3) s hel t er ed w or ks hops i f: ( i ) a s hel t er ed w or ks hop pr ovi des t he supp l i es or s ervi ces;G en. 128] 143

The B lind Industries and Servic e s o f M a ryland PricingCommi ttee 10 consists of the followingfour members or their de signe es: the Secretar y of Ge neral Services; the Sec reta ry of Public Safety

and Corre ctional Service s; the President of B lind Industries and Servic es of Maryland; and a member of the Ex ecutive Boa

rd of the National Fe deration of the Blind of Mar yland appointed by

the Executive Boa

rd. SF §14-104. COMAR 21.1 1

. 0 5

. 0 1

. B( 4 ) d ef i n es “m as t er

list” as “a c onsolidated 11 catalog, produced at l ea s t annually , that lists the supplies and service s (continued...) (i i) nei t herSt at e U s e I ndus t r i es nor B l i nd I n d u s t r i e s and Ser vi ces of M ary l and provi des t he s uppl i es or s er vi ces ; and ( i i i ) T he St at e ora St at e aided or c o n tro lled e n tityis n o t re q u ire d b y law to buy t he s uppl i es or s ervi ces from any o th e r u n it o f

th e S tate g o v e rn m e n t.
T i t l e 14 does not set sta ndar ds fors el ect i ng t he s uppl i es or ser vices t o w hich th e preferences apply

. T he L egis l ature has, i ns t ead, pr ovi ded var i ous m echa ni s m s fort hatpurpos e. A r t i cl e 27, §681B ves t s gener al contr ol overt he goods and s ervi ces offe r ed by St at e U s e I ndus t r i es i n t he St at e U s e I ndus t r i es A dvi s or yC om m i t t ee and author i zes t r ai ni ng pr ogr ams for i nm at es t o pr ovi de s ervi ces and goods w hi ch ar e “pr act i cal and ada pt ab le for pr i s on i ndus t r y ” and “thatar e l i kel yt o be n ee ded and us ed” byvar i ous governm ent al ent i t i es
. Si m i l ar l y , SF §14-106(e)( 2) m akes t he Pr i ci ng and S e l e c t i o n Co mmi t t e e f

o rRe h a b i l i t a t i o n a n d Em p l o yme n tP r o g r a ms r es pons i bl e fors el ect i ng “appr opr i at e” s u p p l i es and s ervi ces for s h e lte re d w o rk s h o p s to o f f e r f o r p ro c u re m e n t. W i t h r e s pe c tt o BI SM , t he G e ne r a l A s s e mbl yi ns t ruc t e d BI SM t o “r evi s e the l i s tof s uppl i es and s ervi ces i tpr ovi des , ” SF §14- 105, and cr eat ed the B l i nd I ndus t r i es and Ser vi ces of M ary l and Pr i ci ng C o m m itt e e , S F § 1 4 -1 0 4

. U n d e r th e sta tu to ry sc h e m e , B IS M itse lf 10 deci des upon t he s uppl i es and s ervi ces t o be furni s hed, and the P ric in g C o m m itt e e e sta b lish e s th e c h a rg e f o r th e se item s. T h is in f o rm a tio n is in c lu d e d o n th e “ M a ste r L ist,” w h ich is c irc u late d to S t at e un i t s. 11144 [7 8 O p
. A tt ’y

(...continued) 11 su bje c t to procure me nt

.. .”from B I SM a nd theoth e r p re ferre d s up pli e rs
. Th ema ster l ist

indic ate s whe ther t

hese lli nge nti ty

is StateUs eInd

us trie s, BI SM, or sheltered w orkshops; the fair marke t price ; and, if the supply or servicecan befurnished by more than oneselling entity , the ordering priority

. B I SM ’ s author i t y to d eci de upon s ervi ces t o i ncl ude on the M a s te r L i s t i s n o t, o f

c o u rs e , car t e blanche . B IS M m u st a c t in ac co rd w ith it s statute an d ap p li ca b le reg u lat io n s
. See Holy C ross H o sp ita l v. Nich o ls , 2 9 0 M d . 1 4 9 , 4 2 8 A .2 d 4 4 7 (1 9 8 1 ). U n d e r its s ta tu te , B IS M is “ a tr a in in g a n d e m p lo ym e n t c e n t e r f o r t h e b lin d .” A r t i cl e 30, §4. I t s gener al purpos e i s t o “be ope n fort he l aborand ma n u f a c tu r e s ” o f

b l i n d c i t i z e n s o f

M a r y l a n d

. Ar t i c l e 3 0 , §6

. By r egul at i on, “[o] nl ys uppl i es and s ervi ces t hatdi r ect l ybenef i t

. . . bl i nd per s ons
. . . t hr ough m eani ngful w or k exper i ence s , occupa t i onal o p p o rtu n it ies, v o ca ti o n al reh ab il it ati o n an d tr ainin g , an d w o rk t h e r a p y , a r e t o b e pr ov i de d b y[ BI S M ]

. ” COM AR 2 1

. 1 1

. 0 5

. 0 2

. B. T h e re f o re , to th e e x ten t th a t v e n d in g m a c h in e se rv ice s “ d ire c tly benef i t ” bl i nd per s ons w i t hi n t h e m ea n ing of t he r egul at i on, s uch se rv ice s m a yb e in c lu d e d o n th e M a ste r L ist, a n d B IS M is e n tit led to a pr ocur ement pr efe r ence for t hem. T he r egul at i ons do notpr ovi de th a t a s e rv ice m u st e m p lo y a c e rta in p ro p o rtio n o f b lin d in d iv id u a ls in o rd e r to m e e t th e “ d ire c tlyb e n e f it” te st. W e ca nnotconcl ude thatei t herSF T i t l e 14 ort he i m pl ement i ng r egul at i ons r equi r e t hat B I SM empl oy anym i ni m um num berof bl i nd i ndi vi dual s as a pr econdi t i on t o a pr ocur eme nt p ref ere n ce fo r th e v en d in g m ac h ine s erv ices. A s d iscu ssed in P art III ab o v e, h o w ev er, B IS M is req u ir ed b yA rt icl e 3 0 , § 3 0 A to en su re t hatatl eas t75 per centof i t s w o rk fo rce forvendi ng m achi ne s e rv ic e s c o n s is ts o f

b lin d in d iv id u a ls

.

V
B IS M ’s D iscre ti o n to M a k e In v estm en ts
T h e b o a rd o f tr u ste e s o f B IS M h a s lo n g h a d “ th e rig h t to a c q u ir e a n d h o ld p ro p e rt y , re a l, p e rs o n a l, a n d m ix e d , i n any m anner w ha t soever. ” A rticle 3 0 , § 6 (a ) (e m p h a sis a d d e d ). H e n c e , u n les s it is su b jec t to so m e o th e r sta tu to ryre stric tio n , B IS M ’s b o a rd is f re e toG en. 128] 145

Th e seloc a l of

fi c ials m ay

inv e st “ in obli g atio ns or repurc ha se 12 agree ments of the ty

pe in which the Tre asurer may reinve st under §6-222 o f th eS t at eF i n an c ean d

P ro c ur e m e ntArt i c l e , o r

t o d ep o s i t s a i d

m o n e ys in any bank or ba

nks in the State of Maryland or in any saving s and loan association or saving s and loan associations or in a ny buildin g an dloan ass oc iatio n o r b uil din gand loa n a sso c iatio ns in intere st- be aringtim e deposit and/or saving s acc ounts, or in the local government investment pool cre ated in this article ....” i nves ti t s as s et s ( a form of per s onal pr oper t y ) prud en tl y w i t hi n t he r ange of i nves t m entvehi cl es open t o anycorpor at e boar d.
T h e q u e stio n is w h e th e r B IS M ’s dis cret io n is lim ited b yA rticle 9 5 , § 22 of the C od e. W e t hink no t

. A s w e read i t , §2 2 g ener a lly r es t r i ct s t he i nves t m ent s of the pol i t i ca l s ubdi vi s i ons orbodi es p o li ti c o f

th e S tate , inc lu d in g a n y“ p u b lic b o d yc o rp o ra te” th a t is i t s el f a pol i t i cal s ubdi vi s i on or body pol i t i c. I t does not appl yt o an ent i t y t hat i s not a pol i t i cal s ubdi vi s i on or body pol i t i c. T hi s s cope is m an ifest i n the p h rasing o f § 2 2 (a):

E xceptas pr ovi ded i n s ubs ect i on ( c) of t hi s s ect i on and notw i t hs t a n d i n g anypr ovi s i on o f a lo c a l law o r o rd in a n c e , t h e c o u n ty comm i s s i oner s of ea ch countyof the St at e, and the chi ef fi s cal oradmi ni s t r at i ve off i ceror offi c e r s o r g o v e r n i n g body of ea ch m uni ci pal i t y , t ow n, body pol i t i c, publ i c body cor por at e, s chool , r oad, dr ai nage, im p ro v e m e n t, c o n s tr u c ti o n , o r so il cons er vat i on di s t r i ctor com m i s s i on i n t he s t at e, i ncl udi ng .
. . t he U pperPot om ac R i ver C om m i ssi on , and cou ntyschoo l bo ards and o th e r p o lit ica l su b d ivis io n s a n d b o d ies p o lit ic of the Stat e and a ny agency of any pol i t i cal su b d ivis io n o

f th e S ta te a re h e re b yse v e ra lly di r ect ed, auth or i zed, and empow er ed [t o m ake ce rt ain in v estm en ts]

.
A r t i cl e 95, §22( a) ( as amended byC hapt er262, L aw s of M ary l and 1 9 9 2 , em p h asis ad d ed ). 12
A “pol i t i cal s ubdi vi s i on” i s “publ i c and go v e rn men ta l

. ” P ot t er v . B e th e sd a F ire D e

p ’t, 309 M d. at354 ( emphasi s added)

. “B odi es146 [7 8 O p
. A tt ’y pol i t i c” a r e governm en tal bodi es orpubl i c corpor at i ons “havi ng po w e r s a nd du t i es of gover nm ent

. ” H

am i l t on C ount

y Bd. v. P rof essi on al G u ild , 46 O hi o St

. 3d 147, 545 N

. E

. 2d 1260, 1264 (1 9 8 9 ) ( e m p h a s i s a d d e d ). See a l so 1 M c Q u illa n , Muni ci pal C or por at i ons § 1 .1 9 , a t 2 1 (3 d e d . 1 9 8 7 ).
W e di s cus s ed B I SM ’ s corpor at e natur e i n Par t I II ab o ve. W h ile B I S M s e rv e s a n im p o rta n t p u b lic p u rp o se a s a q u a si-p u b lic corpor at i on, i t does notexer ci s e governm ent al pow er s
. B I SM i s not a pol i t i cal s ubdi vi s i on orbodypol i t i c w i t hi n t he s cope of A r t i cl e 95, § 2 2 . T h e re f

o re , B IS M ’s b o a rd m a ym a k e in v e stm e n ts p u rsu a n t to its b ro a d a u th o ri ty u n d e r A rt ic le 3 0 , § 6 (a ).

VI
C oncl usi on In su m m a ry , itis o u r o p in io n th a t: 1

. T h e re q u ire m e n ts in A rticle 3 0 , § 3 0 A g o v e rn in g th e sa le of pr oduct s m ade byt he bl i nd appl y to m er chandi s e orot her pr oduct s s ol d byB I SM

. C om pl i ance w i t h t he d ir ec t l abor requi rem ents are t o b e m easured o n a p roduct- by -pr od uct basi s, r a t h e rt h a n f

o ra t o t a l f

a c i l i t y. 2

. T h e d ire c t lab o r re q u ire m e n ts o f A rticle 3 0 , § 3 0 A a p p ly t o the provis i on of v end i ng m achine ser vices

. 3. T he empl oym ent or t r ai ni ng of s om e mi ni m um num berof b lin d in d iv id u a ls in th e p r o d u c tio n o f g o o d s o r se rv ice s is n o t a pr econdi t i on t o B I SM ’ s pr ocur ementpr efe r ence under SF T i t l e 14, Subt i t l e 1. B I SM i s r equi r ed, how ever , t o offe r onl yt hos e goods or s ervi ces t hat“di r ect l ybenef i t ” bl i nd i n d i vi dual s and, i n s o doi ng, mu s tc o mp l y wi t h t h e d i r e c t l a b o r r e q u i r e me n t s o f Ar t i c l e 3 0 , § 3 0 A.G en. 128] 147
4. T he di s cr et ion o f B I SM ’ s B oar d of Trus t ees t o m ake in v e stm e n ts is n o t li m ited to th e typ e s o f in v e stm e n ts a u th o riz e d in A rt ic le 9 5 , § 2 2

. J. Jo sep h C u rran , Jr. A t t or ney G ener al
Ja c k S c h w a rtz C hi ef C ouns el O pi ni ons & Advi ce M ar gar etA nn N ol an A s s is t antA t t or ney G ener al
G ai l R

. C ohn A s s is t antA t t or ney G ener al