Bill No.
5-15
Concerning: Contracts and Procurement
- Health Insurance Preference
Revised: September 17. 2015 Draft No.
§_
Introduced:
February 3, 2015
Enacted:
September 15. 2015
Executive: - - - - - - - - -
Effective: - - - - - - - - - -
Sunset Date: ---'-"N=on=eo,.._._ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Navarro
AN ACT
to:
(1)
(2)
(2)
create a preference in the procurement of services by the County for a small business
that provides health insurance for its employees;
require the County Executive to adopt a regulation implementing the preference for a
small business that provides health insurance for its employees; and
generally amend the law governing the County's procurement of services.
By adding
Montgomery County Code
Chapter l lB, Contracts and Procurement
Article XVII
Section 11B-77
Boldface
Underlining
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Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
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Sec. 1. Article XVII is added to Chapter llB as follows:
Article
for a
With Health Insurance.
---------
XVII. Preference
--
=
Small Business
- -
;;;;;==
=--==----
=~=
;;;;;;...-....,;;..;;~-----
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llB-77. Preference for a Small Business With Health Insurance.
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(a)
Definitions.
In this Article the following terms have the following
meanmgs:
[[Business With Health Insurance
means~
business that provides health
insurance for each employee who provides services to the County under
~
8
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contract.]]
~
Certified Small Business With Health Insurance
means
business
certified
.Qy
the Director as meeting the standards established
.Qy
regulation
for~
Small Business With Health Insurance.
Contract
means
~
contract for procurement services subject to the Wage
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12
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Requirements Law in Section 11B-33A.
Director
means the Director of the Department of Health and Human
14
15
Services or the Director's designee.
Health insurance
means insurance coverage [[that is part of an employer
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benefit package]] that™ for medical expenses incurred
.Qy
an employee
and an employee's family either
.Qy
reimbursing the employee or
.Qy
paying the care provider directly and provides the minimum essential
health benefits required under the Patient Protection and Affordable Care
Act, 26 U.S.C. §5000A, as amended.
Health insurance evaluation factor
means an evaluation factor in
~
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request for proposals that gives an offeror credit for being
Business With Health Insurance.
~
certified
Percentage price preference
means the percent
.Qy
which~
responsive bid
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from
~
responsible bidder who is
~
certified Business With Health
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BILL
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Insurance may exceed the lowest responsive bid submitted
.Qy
~
I
I
responsible bidder who is
not~
certified Business With Health Insurance.
Small Business With Health Insurance
means a business that:
ill
~
has 50 or fewer full-time equivalent employees; and
provides an employer benefit package that includes health
insurance for each employee who provides services to the County
under a contract; or
ill
.Qi}
demonstrates that each employee who provides services to the
County has health insurance from another source.
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Regulation.
The County Executive must adopt
~
regulation under
Method
2:
that [[includes]] establishes:
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ill
ill
ill
an application process for
~
business to be certified as
~
Small
Business With Health Insurance;
standards
for~
business to meet to be certified as
~
Small Business
With Health Insurance;
the amount
of~
percentage price preference for
~
Small Business
With Health Insurance under
~
solicitation for competitive sealed
bidding; and
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ill
.(£}
~
Small Business With Health Insurance evaluation factor for use
in
~
request for proposals.
Certification.
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The Director must certify
~
~
business that meets the
standards established
.Qy
regulation as
Small Business With Health
Insurance. A false statement on an application for certification is a Class
A violation.
@
Role
Q[
Office
Q[
Procurement and Department
Q[
Health and Human
Services.
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ill
The Office of Procurement must review all specifications of each
using department [[and each cooperative purchasing agreement]]
to assure compliance with this Section, appropriate use of
~
percentage price preference or an evaluation factor, and
consistency among using departments procuring similar services.
ill
The Department of Health and Human Services must:
(A)
(ID
operate the certification process;
permit pre-certification as a Small Business With Health
Insurance: and
(Q
maintain
~
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list of businesses that have been certified as
~
Small Business With Health Insurance.
W
Denial or revocation
Qf
certification.
The Director may refuse to certify
~
business under this Section, and may suspend or revoke
~
certification
issued under this Section,
after~
hearing for which reasonable notice has
been given, if the business or applicant does not meet the standards for
certification as
~
Small Business With Health Insurance.
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ill
Notice and opportunity.for hearing.
ill
Notice.
After finding that one or more grounds for denial,
suspension, or revocation
of~
certification could exist, the Director
may serve
~
written notice on the business or applicant in person
or
.Qy
regular mail, postage prepaid, addressed to the person's last
known address as maintained in the Director's file. Service on that
person
.Qy
mail is effective
J.
days after mailing. The written notice
must,
at~
minimum:
(A)
state that the Director has found that the business or
applicant may be subject to denial, suspension, or
revocation of the certification;
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ill)
identify the specific grounds for the Director's findings; and
set
f!
date for
f!
hearing on denial of the application or
suspension or revocation of the certification.
(Q
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ill
Hearing.
The Director or
f!
designee may conduct the hearing. At
the hearing, the business or applicant may present evidence and
witnesses to refute the grounds cited
.Qy
the Director for denying
the application or suspending or revoking the certification, and the
County and any other person may submit relevant evidence. The
relevant records of the [[J2epartment]] Office are part of the
hearing record. The person conducting the hearing must render
f!
decision in writing, giving the reasons for the decision. That
decision is final, subject to judicial review under the Maryland
Rules for review of administrative decisions in the Circuit Court
and the Court of Special Appeals.
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ill
Failure to appear.
A business or applicant who after notice does
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not appear at
f!
hearing waives the right to
f!
hearing and consents
to
the action that the Director proposed in the notice. The Director
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may deny the application or suspend or revoke the certification as
proposed in the notice.
.{g}
Appeals.
Any person aggrieved
.Qy
the denial, suspension, or revocation
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1O1
of any certification under this Section may seek judicial review under the
Maryland Rules for review of administrative decisions in the Circuit
Court and the Court of Special Appeals.
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.(h}
Report
fu!.
Office
Q[
Procurement.
The Director of the Office of
Procurement, after consulting with the Director of Health and Human
Services, must submit
f!
report to the County Council and County
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Executive by September 30 each year after implementation of this
Section for the prior fiscal year. The report should include:
ill
the dollar value of services purchased from
Business With Health Insurance;
~
certified Small
ill
ill
the dollar value of services purchased from
~
business that is not
~
certified Small Business With Health Insurance;
to the extent ascertainable, the additional cost of any contracts
awarded
to~
certified Small Business With Health Insurance under
~
percentage
price preference;
~
(i)
~
summary of applications for certification as
Small Business
With Health Insurance made during the year, including the results
of each application;
ill
.{Q)
~
list of certified Small Businesses With Health Insurance;
suggested legislative or administrative changes; and
any other relevant information.
ill
Sec. 2. Effective Date.
This Act takes effect on July
1.
2016 and applies to any solicitation issued on
or after July
1.
2016.
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George Leventhal, President, County Council
Approved:
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Approved:
/r:;
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2.o
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t;;
'
bate
Date
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Isiah Leggett, County Executive
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This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk of the Council
Date
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