Landmark legislation recommended three years ago by the Governor?s Commission on Minority Business Enterprise Reform was signed into law last Tuesday by Maryland Gov. Robert Ehrlich.
The new measures not only extend Maryland?s MBE Program for another five years, they also give MBEs greater access to capital, establish a statewide commercial nondiscrimination policy, outline a reporting process for the state?s Small Business Reserve program and list guidelines for individual bonding companies doing business in Maryland. So far, Maryland has adopted 30 of the commission?s 50 recommendations.
The new laws also reflect the continued commitment of Ehrlich and Lt. Gov. Michael S. Steele to level the playing field for Maryland?s 200,000 MBEs. These and other measures already in place clearly establish Maryland as the country?s No. 1 supporter of small-, minority- and women-owned businesses.
Here?s a summary of each recommendation passed:
» HB 869: Minority Business Participation: The results of a recent disparity study justified the continued existence of a comprehensive MBE procurement program as well as thestate?s 25 percent MBE procurement goal. This measure extends Maryland?s MBE program through 2011 and gives those of us working in the Governor?s Office of Minority Affairs another five years to continue advocating for minority and women-owned businesses.
» HB 1431: Linked Deposit Program: This bill establishes a financial vehicle that will provide low-interest financing to certified MBEs and allow them to borrow for less money. This program, administered by the Department of Housing and Community Development, allows the state to match up to $50 million in commercial loans and give the MBEs who apply a 2 percent reduction in their interest rate.
» HB 688: Small Business Reserve Program: This bill further enhances the 2004 SBR legislation. It designates how and when the 22 state agencies participating in this program should submit their reports to the Governor?s Office of Minority Affairs. Based on the information they provide, OMA will issue a report to the Board of Public Works and the General Assembly?s at the end of each year.
» HB 169: Procurement-Security Requirements: For the first time in state history, individual surety companies are allowed to supply the bonding needs of contractors doing business with the state. This is another avenue of bonding that is favorable for small, women and minority businesses.
» SB 897: Commercial Nondiscrimination Policy: OMA fought long and hard for this bill, which prohibits the state from entering into a procurement contract with a business that has been found to have discriminated in the solicitation, selection, hiring or commercial treatment of vendors, suppliers, subcontractors and other commercial customers. This bill not only has the ability to change procurement behavior among contractors when they do business with the state, but in their private sector work as well, according to Attorney Franklin Lee, who chaired the Legislation Committee of the Governor?s MBE Commission andlater drafted commercial nondiscrimination bills for the state of Maryland and the city of Baltimore.
These new laws are not only a tribute to the vision and impact of the Governor?s 2003 MBE Commission, but also to the many people working tirelessly to promote small, minority and women-owned businesses in the state of Maryland.
Sharon R. Pinder is special secretary of the Governor?s Office of Minority Affairs. She can be reached at 410-767-8232 or [email protected]. Pinder is the host of “So You Want to be an Entrepreneur? Let?s Chat! and can be heard every Wednesday at 10:00 am on WOLB 1010 AM.
