The civic record
Read. Follow. Verify.Maryland Establishes State Procurement Goals and Price Preferences for HUBZone Businesses
Last action · January 19, 2026: Hearing 1/28 at 1:00 p.m.Sponsor: Johnny Salling
Track this bill to get notified when it advances a stage. One tap to stop, anytime.
What This Bill Would Do
Maryland Senate Bill 232 requires state units to structure procurement procedures to meet federal HUBZone standards, establishing mandatory contract participation goals of 1% in 2026-2027, 2% in 2028, and 3% in 2029 and later, effective October 1, 2026.
State contracting agencies must alter purchasing procedures and provide s to certain certified small businesses, while fraudulent misrepresentation of business status carries criminal misdemeanor penalties, civil fines between $10,000 and $50,000, and potential .
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Historically underutilized business zone businesses
Eligible businesses gain access to state procurement participation goals, certification processes, and percentage price preferences.
State procurement units
Units must structure procurement procedures to meet federal standards, track participation, and report alleged violations.
Governor's Office of Small, Minority, and Women Business Affairs
Must adopt regulations for certification and price preferences, establish tracking procedures, and report annually to the Legislative Policy Committee.
Key Facts
- State units must structure procurement procedures to meet federal HUBZone standards under 48 C.F.R. Subpart 19.13.
- The overall percentage goal of a unit's total procurement contract value awarded directly or indirectly to HUBZone businesses is 1% in 2026 and 2027, 2% in 2028, and 3% in 2029 and each year thereafter.
- The Governor's Office of Small, Minority, and Women Business Affairs must adopt regulations for a certification process and percentage price preference.
- Procurement requirements do not apply if a unit determines they conflict with an applicable federal program.
Show all 10 facts
- The Office of Small, Minority, and Women Business Affairs must report annually by December 1 to the Legislative Policy Committee on contract numbers, dollar values, and program effectiveness.
- Fraudulently obtaining public money, contracts, or bid preferences under the subtitle is a misdemeanor punishable by up to 1,000 dollars fine or 6 months imprisonment or both.
- First-time civil violations incur penalties between 10,000 dollars and 30,000 dollars, while subsequent offenses incur penalties between 30,000 dollars and 50,000 dollars, plus costs and attorney's fees.
- Businesses or persons failing to satisfy penalties are prohibited from further state contracting until resolved.
- Willful misrepresentation as a HUBZone business may also trigger suspension or debarment or civil penalties under the Maryland False Claims Act.
- The Act takes effect October 1, 2026.
Frequently Asked Questions
What percentage of state procurement contracts must go to HUBZone businesses?
What are the penalties for fraudulently representing a business as a HUBZone enterprise?
When does this legislation take effect?
What else do you want to know?
News Coverage
Follow the record
Votes, people, money & the original sourceWhere This Stands
Currently filed. The next step in the legislative lifecycle is Committee.
Procedural history
4 actions- Jan 19, 2026SenateHearing 1/28 at 1:00 p.m.
- Jan 15, 2026SenateHearing canceled
- Jan 15, 2026SenateHearing 1/21 at 10:00 a.m.
- Jan 15, 2026SenateIntroducedFirst Reading Budget and Taxation
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Integration of Federal HUBZone Standards into State Procurement
The bill bridges federal U.S. Small Business Administration standards with Maryland state procurement code by creating specific percentage quotas and civil penalties for fraudulent compliance.
Connected Entities
Sources
mgaleg.maryland.gov
Analysis Score
0–100- Significance75How much this matters to a regular citizen
- Controversy30Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz40Current news / social attention level
Publisher tools