PARRIS N. GLENDENING, Governor

Ch. 491

Article 29 - Washington Suburban Sanitary District

3-102.

(f) (1) In this subsection "minority business enterprise" has the meaning stated
in § 14-301 of the State Finance and Procurement Article.

(2) By resolution and by implementing rules and regulations, the WSSC
shall establish a mandatory minority business utilization program to facilitate the
participation of responsible certified minority business enterprises in contracts awarded
by the WSSC in accordance with competitive bidding or proposal procedures.

(3) The rules and regulations that establish the program under paragraph
(2) of this subsection shall include, but not be limited to, provisions that:

(i) Recognize the certification of minority business enterprises by the
State certification agency designated under § 14-303(b) of the State Finance and
Procurement Article;

(ii) Recognize any other certification program that in the judgment of
the WSSC substantially duplicates the requirements of the State certification agency;

(iii) Provide for minority business participation through subcontracting;

(iv) Permit the waiver of all or part of the provisions of the program for
a specific contract if the WSSC determines that the application of the program to the
contract conflicts with the WSSC's overall objectives and responsibilities; and

(v) Provide for the graduation of a minority business enterprise from
the program if the WSSC determines that the minority business enterprise no longer
requires the assistance or benefits offered by the program.

(4) Before accepting a certification program under paragraph (3)(ii) of this
subsection, the WSSC shall examine the program to ensure that it adheres to the
following guidelines:

(i) Bona fide minority group membership shall be established on the
basis of the individual's claim that the individual is a member of a minority group and is
so regarded by that particular minority community. However, the certifying agency is not
required to accept this claim if it determines that the claim is invalid.

(ii) An eligible minority business enterprise shall be an independent
business. The ownership and control by minorities shall be real, substantial, and
continuing and shall go beyond the pro forma ownership of the business as reflected in its
ownership documents. The minority owners shall enjoy the customary incidents of
ownership and shall share in the risks and profits commensurate with their ownership
interests as demonstrated by an examination of the substance rather than form of
arrangements. Recognition of the business as a separate entity for tax or corporate
purposes is not necessarily sufficient for recognition as a minority business enterprise. In
determining whether a potential minority business enterprise is an independent business,
the certifying agency shall consider all relevant factors, including the date the business

- 2845 -