Bill No.
5-15
Concerning: Contracts and Procurement
- Health Insurance Preference
Revised: September
17, 2015
Draft No.
Q_
Introduced:
February 3,
2015
Enacted:
September
15. 2015
Executive:
September
24, 2015
Effective:
July
1, 2016
Sunset Date: ---'-"Non"""'e'--------
__
Ch.
~.
Laws of Mont. Co.
2015
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 11 B, Contracts and Procurement
Article XVII
Section 11B-77
Boldface
Underlining
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[[Double boldface brackets]]
* * *
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
No.
5-15
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5
Sec.
1.
Article XVII is added to Chapter llB as follows:
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Article XVII. Preference for a Small Business
- -
Health Insurance. -
With
=---==~=---
l lB-77. Preference for a Small Business With Health Insurance.
(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
~
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contract.)]
~
Certified Small Business With Health Insurance
means
business
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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
Requirements Law in Section 11B-33A.
Director
means the Director of the Department of Health and Human
Services or the Director's designee.
Health insurance
means insurance coverage [[that is part of an employer
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. §SOOOA, as amended.
Health insurance evaluation factor
means an evaluation factor in
request for proposals that gives an offeror credit for
Business With Health Insurance.
Percentage price preference
means the percent
.Qy
which~
responsive bid
from
~
being~
~
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certified
responsible bidder who is
~
certified Business With Health
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BILL
No. 5-15
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Insurance may exceed the lowest responsive bid submitted
Qv
~
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responsible bidder who is
not~
certified Business With Health Insurance.
Small Business With Health Insurance
means a business that:
ill
(Z}
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
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.{hl
demonstrates that each employee who provides services to the
County has health insurance from another source.
Regulation.
The County Executive must adopt
~
regulation under
Method
i
that [[includes]] establishes:
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an application process
for~
business to be certified as
~
Small
Business With Health Insurance;
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ill
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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
®
(£}
~
Small Business With Health Insurance evaluation factor for use
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in
~
request for proposals.
Certification.
The Director must certify
~
business that meets the
standards established
Qv
regulation as
~
Small Business With Health
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Insurance. A false statement on an application for certification is a Class
A violation.
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@
Role
Qf
Office
Qf
Procurement and Department
Qf
Health and Human
Services.
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BILL
No.
5-15
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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 g
percentage price preference or an evaluation factor, and
consistency among using departments procuring similar services.
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The Department of Health and Human Services must:
(A)
operate the certification process;
permit pre-certification as a Small Business With Health
Insurance: and
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!ID
£Q
maintain g list of businesses that have been certified as g
Small Business With Health Insurance.
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Denial or revocation gf certification.
The Director may refuse to certify
g business under this Section, and may suspend or revoke g certification
issued under this Section, after g hearing for which reasonable notice has
been given, if the business or applicant does not meet the standards for
certification as g Small Business With Health Insurance.
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Notice and opportunityfor hearing.
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Notice.
After finding that one or more grounds for denial,
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suspension, or revocation ofg certification could exist, the Director
may serve g written notice on the business or applicant in person
or
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regular mail, postage prepaid, addressed to the person's last
known address as maintained in the Director's file. Service on that
person
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mail is effective
J
days after mailing. The written notice
must, at g 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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BILL
No.
5-15
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.{ID
.(Q
identify the specific grounds for the Director's findings; and
set
~
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date for
~
hearing on denial of the application or
suspension or revocation of the certification.
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Hearing.
The Director or
~
designee may conduct the hearing. At
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the hearing, the business or applicant may present evidence and
witnesses to refute the grounds cited
!2y
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 [[Department]] Office are part of the
hearing record. The person conducting the hearing must render
~
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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Failure to appear.
A business or applicant who after notice does
not appear at
~
hearing waives the right to
~
hearing and consents
to the action that the Director proposed in the notice. The Director
may deny the application or suspend or revoke the certification as
proposed in the notice.
(g}
Appeals.
Any person aggrieved
!2y
the denial, suspension, or revocation
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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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.{hl
Report
fu!.
Office gf Procurement.
The Director of the Office of
Procurement, after consulting with the Director of Health and Human
Services, must submit
~
report to the County Council and County
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BILL
No. 5-15
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Executive
Qy:
September 30 each year after implementation of this
Section for the prior fiscal year. The report should include:
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the dollar value of services purchased from
Business With Health Insurance;
~
certified Small
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the dollar value of services purchased from
~
business that is not
~
certified Small Business With Health Insurance;
ill
to the extent ascertainable, the additional cost of any contracts
awarded
to~
certified Small Business With Health Insurance under
~percentage
price preference;
ill
~
summary of applications for certification as
~
Small Business
With Health Insurance made during the year, including the results
of each application;
ill
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list of certified Small Businesses With Health Insurance;
®
suggested legislative or administrative changes; and
any other relevant information.
m
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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BILL No. 5-15
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Approved:
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George Leventhal, President, County Council
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'
bate
Approved:
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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