2023 Maryland Statutes › State Finance and Procurement › Division II - General Procurement Law › Title 14 - Preferences › Subtitle 4 - Miscellaneous Purchasing Preferences › Section 14-401.1 - Reciprocal Preference for Resident Firms

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Nonresident firm” means a business entity that:
(i)    has one office that:
1.    is a principal office for the entity; and
2.    is not located in the State; or
(ii)    for an entity that has offices in multiple states, has not had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.
(3)    “Preference” includes:
(i)    a percentage preference;
(ii)    an employee residency requirement; or
(iii)    any other provision that favors an offeror from one state to the disadvantage of an offeror from another state.
(4)    (i)    “Principal office” means a primary place of business that is staffed on a regular basis to provide the services that are requested by a unit in a request for proposals.
(ii)    “Principal office” does not include a satellite office or an office that is minimally staffed and is not open on a regular basis to provide the services that are requested by a unit in a request for proposals.
(5)    “Request for proposals” means a request for architectural services or engineering services that is issued in accordance with § 13–112 of this article.
(6)    (i)    “Resident firm” means a business entity that:
1.    is licensed or otherwise authorized to provide architectural or engineering services in the State; and
2.    A.    for an entity that has one office, the office is located in the State; or
B.    for an entity that has offices in multiple states, has had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.
(ii)    “Resident firm” includes a joint venture that:
1.    was entered into before the date of the request for proposals for which the joint venture submits a proposal; and
2.    includes one party that:
A.    holds at least a 51% interest in the joint venture; and
B.    meets the requirements under subparagraph (i) of this paragraph.
(b)    Subject to subsection (d) of this section, a unit shall apply a preference to a proposal from a resident firm if:
(1)    (i)    a nonresident firm is:
1.    a responsible offeror; and
2.    determined to be the most qualified person to submit a proposal in accordance with § 13–112 of this article; and
(ii)    the state in which the principal office of the nonresident firm is located has a preference that favors an offeror from that state to the disadvantage of an offeror from this State;
(2)    a resident firm:
(i)    is a responsible offeror; and
(ii)    at the same time that it submits the proposal for which the preference would apply, certifies that it meets the requirements for a resident firm; and
(3)    the preference:
(i)    is the same as the preference referenced in item (1)(ii) of this subsection; and
(ii)    does not conflict with a federal law or grant affecting the procurement contract.
(c)    At the request of a unit, a nonresident firm shall provide the following documentation for the state in which the principal office of the nonresident firm is located:
(1)    a copy of the current statute, resolution, policy, procedure, or executive order that establishes a preference that favors an offeror from that state to the disadvantage of an offeror from this State; or
(2)    a certification that the other state does not have a preference that favors an offeror from that state to the disadvantage of an offeror from this State.
(d)    (1)    If a resident firm qualifies for a preference established under this section and for another preference established under this Division II, the unit:
(i)    may not apply more than one preference to the proposal from the resident firm; and
(ii)    shall apply the preference to the proposal from the resident firm that is most advantageous to the resident firm.
(2)    If, when making a determination of qualification under § 13–112 of this article, a unit determines that a proposal from a resident firm and a proposal from a nonresident firm are equally qualified, the unit may apply a preference to the proposal from the resident firm.
(e)    A unit may not apply a preference to a proposal submitted by a resident firm if the resident firm does not submit the certification required under subsection (b)(2)(ii) of this section at the same time that it submits the proposal.
(f)    The Board shall:
(1)    post and maintain a list of all states with a preference that favors an offeror from that state to the disadvantage of an offeror from this State; and
(2)    adopt regulations to implement this section.