Md. Code Regs. 21.11.03.03

Current through Register Vol. 51, No. 12, June 14, 2024

Section 21.11.03.03 - Definitions

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.

Md. Code Regs. 21.11.03.03

Regulation .03B amended effective September 2, 1991 (18:17 Md. R. 1922); July 20, 1992 (19:14 Md. R. 1286)
Regulations .03 effective May 24, 2004 (31:10 Md. R. 796)
Regulation .03B amended effective November 7, 2005 (32:22 Md. R. 1759); January 14, 2010 (37:1 Md. R. 16);40:9 Md. R. 789, eff. 5/13/2013 ; amended effective 50:18 Md. R. 800, eff. 9/18/2023