{"data":{"id":"us-md/md.-code-business-regulation-19-106","jurisdiction":"us-md","citation":"Md. Code, Business Regulation § 19–106","heading":"","body":"(a) (1) In this section the following words have the meanings indicated.\n(2) “Entity” means:\n(i) a commercial enterprise or business that is in good standing with the State Department of Assessments and Taxation and is:\n1. incorporated in the State; or\n2. registered to do business in the State; or\n(ii) a corporation, foundation, school, hospital, or other legal entity for which none of the net earnings inure to the benefit of any private shareholder or individual holding an interest in the entity.\n(3) “State benefit” means:\n(i) State capital grant funding totaling $1,000,000 or more in a single fiscal year;\n(ii) State tax credits totaling $1,000,000 or more in a single fiscal year; or\n(iii) the receipt of a State contract with a total value of $1,000,000 or more.\n(4) “State contract” means a contract that:\n(i) resulted from a competitive procurement process; and\n(ii) is not federally funded in any way.\n(5) “Underrepresented community” means a community whose members self–identify:\n(i) as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or\n(ii) with one or more of the racial or ethnic groups listed in item (i) of this paragraph.\n(b) This section does not apply to:\n(1) a sole proprietor;\n(2) a limited liability company owned by a single member;\n(3) a privately held company if at least 75% of the company’s shareholders are family members; or\n(4) an entity that:\n(i) has an annual operating budget or annual sales less than $5,000,000; and\n(ii) does not qualify for a State benefit.\n(c) An entity may not qualify for a State benefit unless the entity is able to demonstrate:\n(1) membership of underrepresented communities in the entity’s board or executive leadership; or\n(2) support for underrepresented communities in the entity’s mission.\n(d) The Department of Commerce and the Office of Small, Minority, and Women Business Affairs shall:\n(1) develop and maintain a State Equity Report that compiles diversity data for each entity on:\n(i) the membership of underrepresented communities in the entity’s board or executive leadership; and\n(ii) the support of underrepresented communities in the entity’s mission; and\n(2) adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.","path":["Article - Business Regulation"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gbr\u0026section=19-106","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:23Z","sha256":"92945cc3b3b806aa8a32b06d003fcf144a876fa821310614d2c370eb6a680fac","source_id":"us-md","stale":false,"prev":"us-md/md.-code-business-regulation-19-105","next":"us-md/md.-code-business-regulation-19-107"},"notice":"GroundRules: Original legal text. Not legal advice."}