1. (a)

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

   2. (2) “Entity” means:

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

         1. 1. incorporated in the State; or
         2. 2. registered to do business in the State; or
      2. (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. (3) “State benefit” means:

      1. (i) State capital grant funding totaling $1,000,000 or more in a single fiscal year;
      2. (ii) State tax credits totaling $1,000,000 or more in a single fiscal year; or
      3. (iii) the receipt of a State contract with a total value of $1,000,000 or more.

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

      1. (i) resulted from a competitive procurement process; and
      2. (ii) is not federally funded in any way.

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

      1. (i) as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native; or
      2. (ii) with one or more of the racial or ethnic groups listed in item (i) of this paragraph.

2. (b) This section does not apply to:

   1. (1) a sole proprietor;
   2. (2) a limited liability company owned by a single member;
   3. (3) a privately held company if at least 75% of the company's shareholders are family members; or

   4. (4) an entity that:

      1. (i) has an annual operating budget or annual sales less than $5,000,000; and
      2. (ii) does not qualify for a State benefit.

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

   1. (1) membership of underrepresented communities in the entity's board or executive leadership; or
   2. (2) support for underrepresented communities in the entity's mission.

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

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

      1. (i) the membership of underrepresented communities in the entity's board or executive leadership; and
      2. (ii) the support of underrepresented communities in the entity's mission; and
   2. (2) adopt regulations to carry out this section, including directives for State agencies and entities to comply with the requirements in this section.

Added by Acts 2021, c. 795, § 1, eff. July 1, 2022. Amended by Acts 2024, c. 424, § 1, eff. Oct. 1, 2024.