(a) (1) In this section the following words have the meanings indicated.
(2) “Entity” means:
(i) a commercial enterprise or business that is in goodstanding 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 ormore 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.