Ch. 491

1997 LAWS OF MARYLAND

(3) Provide for minority business participation through subcontracting;

(4) Except as provided in paragraph (5) of this subsection, provide for a
system of granting a preference of up to the lesser of 5% or $50,000 to minority business
enterprises in evaluating bids and proposals;

(5) (i) Subject to the provisions of subparagraphs (ii), (iii), and (iv) of this
paragraph, establish a sheltered market program in which bidding on procurement
contracts designated by the WSSC as appropriate is restricted to certified minority
business enterprises;

(ii) The sheltered market program under this paragraph may not be
utilized until all less restrictive remedies under this subsection and race-neutral remedies
such as assistance with bonding requirements, financing, or bidding procedures for small
firms have been used and found to be ineffective;

(iii) Upon the bid of at least 3 certified minority business contractors, a
contract shall be awarded under this paragraph to the lowest of those bidders; and

(iv) If fewer than 3 certified minority business enterprises bid on a
contract under this paragraph, the contract shall be awarded under the general provisions
of paragraph (4) of this subsection;

(6) Provide for the graduation of a minority business enterprise from the
program after 5 years; however, if a minority business enterprise was not awarded at least
3 contracts or a total of $50,000 in awarded contracts from the WSSC during the 5-year
period, the business may apply for and receive one 2-year extension of participation in
the program;

(7) Require the solicitation document accompanying each solicitation to set
forth the rules and regulations of the minority business utilization program;

(8) Require the geographic location and the principal place of business of
the minority business enterprise to be a consideration for participation in this program.
Montgomery County businesses and Prince George's County businesses shall each have a
targeted percentage of at least 40% of any contracts;

(9) Provide for the WSSC to refuse to recognize the certification of any
business found to be in violation of the purposes of the program and to permanently bar
any active principals of a violating business from future participation in the program; and

(10) 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 provide for
the WSSC to report annually to the Montgomery County and Prince George's County
House and Senate Delegations on those waivers.

(d) Before accepting a certification program under subsection (c)(2) of this
section, the WSSC shall examine the program to ensure that:

(1) It adheres to the guidelines set forth in § 3-102(f)(4) of this article; and

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