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

Current through Register Vol. 51, No. 14, July 12, 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.