§19–106.

    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Entity” means:

            (i)    a commercial enterprise or business that is in good
standing with the State Department of Assessments and Taxation and is:

                1.    incorporated in the State; or

                2.    registered to do business in the State; or

            (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.

        (3)    “State benefit” means:

            (i)    State capital grant funding totaling $1,000,000 or
more in a single fiscal year;

            (ii)    State tax credits totaling $1,000,000 or more in a single fiscal year; or

            (iii)    the receipt of a State contract with a total value of $1,000,000 or more.

        (4)    “State contract” means a contract that:

            (i)    resulted from a competitive procurement process; and

            (ii)    is not federally funded in any way.

        (5)    “Underrepresented community” means a community whose members self–identify:

            (i)    as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or

            (ii)    with one or more of the racial or ethnic groups listed in item (i) of this paragraph.

    (b)    This section does not apply to:

        (1)    a sole proprietor;

        (2)    a limited liability company owned by a single member;

        (3)    a privately held company if at least 75% of the company’s shareholders are family members; or

        (4)    an entity that:

            (i)    has an annual operating budget or annual sales less than $5,000,000; and

            (ii)    does not qualify for a State benefit.

    (c)    An entity may not qualify for a State benefit unless the entity is able to demonstrate:

        (1)    membership of underrepresented communities in the entity’s board or executive leadership; or

        (2)    support for underrepresented communities in the entity’s mission.

    (d)    The Department of Commerce and the Office of Small, Minority, and Women Business Affairs shall:

        (1)    develop and maintain a State Equity Report that compiles diversity data for each entity on:

            (i)    the membership of underrepresented communities in the entity’s board or executive leadership; and

            (ii)    the support of underrepresented communities in the entity’s mission; and

        (2)    adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.