Oppose Procurement Preference for Employee Stock Ownership Plans (ESOPs)
The Associated Builders and Contractors of Maryland is calling on our members to contact members of the Senate Budget and Taxation Committee immediately to voice your strong opposition to Senate Bill 653 (S.B. 653). This bill proposes to establish a procurement preference program for entities utilizing Employee Stock Ownership Plans (ESOPs) within specific state institutions, granting them a price preference of up to 5% on state construction work.

S.B. 653 introduces significant concerns regarding fairness, transparency, and the efficient use of public funds with no clear indication that ESOPs deliver superior value or quality compared to non-ESOP businesses. It will undermine fair and open competition, creating an artificial advantage for ESOP bidders and potentially leading to higher costs for taxpayers and the state; discourage non-ESOP businesses (including small businesses) from participating in state procurements; add to compliance and administrative burdens; and sets a dangerous precedent for further distortions of the procurement process.

In order to stop this bill, we need your help in contacting the members of the Senate Budget and Taxation committee today. Below are talking points and contact information for each Senator on the committee. If you are a constituent of one of these Senators' districts, you can also click the link below to send them a letter through our grassroots portal. 

Please consider the following talking points:

  • As a member of ABC [Chapter], I am strongly opposed to S.B. 653.
  • S.B. 653 undermines fair and open competition in state procurement.
  • The 5% price preference for ESOPs will likely increase costs for Maryland taxpayers.
  • The bill creates an unfair advantage and could lead to abuse.
  • Moreover, ESOPs are very expensive to implement and maintain.
  • And given the fact most contractors tend to be cash poor, contractors will be forced to borrow heavily to cover the costs.
  • Women and minority owned businesses will be particularly hurt by this legislation.
  • The state's procurement process should prioritize the most qualified and cost-effective vendors, regardless of ownership structure.
  • Please reject S.B. 653 and focus on strengthening existing procurement practices.

Committee member contact information is as follows: 

On behalf of our 1,500 ABC member companies, we urge you to take action today! Your voice is critical in ensuring fairness, transparency, and the efficient use of public funds in Maryland's procurement process.

    Subject
    Message Body
    Remaining: 0
    Post
    Remaining: 0
    Suggested Message
    Post
    Remaining: 0
  • Hide
    • Please call this number:

      Compose Your Message
        • Budget & Taxation Members (State Senate)
            Subject
            Message Body
            Remaining: 9,247
            Please do not close this window. You will need to come back to this window to enter your code.
            We just sent an email to ... containing a verification code.

            If you do not see the email within the next five minutes, please ensure you entered the correct email address and check your spam/junk mail folder.
            Enter Your Info
            Your Information
            By providing your mobile number, you agree to receive periodic call to action text messages from ABC. Message and data rates may apply. Reply HELP for help. Reply STOP to unsubscribe. Message frequency varies. Privacy Policy  
            Home or Business Information  
            Enter Zip for City and State