Procurement Reform Act of 2025

HB 500, the Procurement Reform Act of 2025, streamlines Maryland state government purchasing by transferring key authority from the Secretary of General Services to the Chief Procurement Officer. It adjusts dollar thresholds requiring public notice or reporting for procurements, modifies small business preference programs (including expanding eligibility for small business reserves), and adds new requirements for contractors to submit workforce diversity plans for contracts over $500,000. The bill also creates a procurement preference for businesses certified for "good labor practices" and mandates that certain agencies establish working groups to address procurement issues. These changes directly affect state agencies, contractors (especially small businesses), and the Office of Small, Minority, and Women Business Affairs, which gains oversight of new workforce diversity rules.