LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 1 – Chapter 243 (House Bill 1205) AN ACT concerning State Government – Information Technology and Cybersecurity –Related Infrastructure (Modernize Maryland Act of 2022) FOR the purpose of requiring a certain water or sewer system to, on or before a certain date, assess its vulnerability to a cyber attack, develop a cybersecurity plan if appropriate, and submit a certain report to the General Assembly; authorizing the Maryland Water Quality Financing Administration to provide financial assistance to a public water or wastewater system to assess system cybersecurity vulnerabilities and develop a cybersecurity plan; authorizing the Maryland Stadium Authority to issue bonds and, in consultation with the Department of Information Technology, finance projects related to information technology and cybersecurity–related State government infrastructure; establishing an Information Technology and Cybersecurity Infrastructure establishing the Local Cybersecurity Support Fund as a special, nonlapsing fund; requiring interest earnings of the Fund to be credited to the Fund; establishing certain eligibility requirements to receive assistance from the Fund; altering the duties of the Secretary of Information Technology; establishing a Statewide Reporting Framework and an independent Modernize Maryland Oversight Commission in the Department of Information Technology; requiring the Department to hire an independent contractor contractors to develop a framework for investments in technology and annually periodically assess the cybersecurity and information technology systems in each unit certain units of State government; specifying the use of proceeds from certain bonds; exempting certain procurements by the Department of General Services from oversight by the Board of Public Works; establishing that the Department is a primary procurement unit and authorizing the Department to engage in or control certain procurements; authorizing a certain independent contractor to issue a certain change order applying certain change order requirements to State procurement contracts for certain equipment, services, and upgrades; authorizing funds to be transferred by budget amendment from the Dedicated Purpose Account in a certain fiscal year to implement this Act; and generally relating to the development, financing, and procurement of information technology and cybersecurity–related State government infrastructure projects. BY repealing and reenacting, with amendments, Article – Environment Section 9–1604(c) Annotated Code of Maryland (2014 Replacement Volume and 2021 Supplement) BY adding to Article – Public Safety Ch. 243 2022 LAWS OF MARYLAND – 2 – Section 14–104.1 Annotated Code of Maryland (2018 Replacement Volume and 2021 Supplement) BY repealing and reenacting, with amendments, Article – Economic Development Section 10–628(a) Annotated Code of Maryland (2018 Replacement Volume and 2021 Supplement) BY adding to Article – Economic Development Section 10–628(d), 10–650.1, and 10–657.5 Annotated Code of Maryland (2018 Replacement Volume and 2021 Supplement) BY repealing and reenacting, with amendments, Article – State Finance and Procurement Section 3A–101, 3A–303(a)(7) and (8), 6–226(a)(2)(ii)144. and 145., 11–101(m), 12–101, 12–107(b)(2)(i)9. through 11. 12–107(b)(2)(i)8., (3)(vi), and (4)(v), and 12–107(b)(3)(vi) and (4)(v), and 15–112(a)(1)(i) Annotated Code of Maryland (2021 Replacement Volume) BY adding to Article – State Finance and Procurement Section 3A–303(a)(9) and (10), 3A–315 through 3A–317, 3A–316, 6–226(a)(2)(ii)146., 12–107(b)(5), and and 12–107(b)(5) 15–112(b)(4) Annotated Code of Maryland (2021 Replacement Volume) BY repealing and reenacting, without amendments, Article – State Finance and Procurement Section 6–226(a)(2)(i), 11–101(a), and 15–112(b)(3) 11–101(a), and 12–107(b)(2)(i)9. Annotated Code of Maryland (2021 Replacement Volume) BY repealing Article – State Finance and Procurement Section 12–107(b)(2)(i)10. and 11. Annotated Code of Maryland (2021 Replacement Volume) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 3 – Article – Environment 9–1604. (c) (1) This subsection applies to financial assistance provided by the Administration under: (i) The Water Quality Fund; (ii) The Bay Restoration Fund; (iii) The Biological Nutrient Removal Program; and (iv) The Supplemental Assistance Program. (2) The Administration shall ensure the fair and equitable distribution of financial assistance among wastewater treatment facilities with a design capacity of less than 500,000 gallons per day and wastewater treatment facilities with a design capacity of 500,000 gallons or more per day. (3) A PUBLIC OR PRIVATE WA TER OR SEWER SYSTEM THAT SERVES 10,000 OR MORE USERS AND RE CEIVES FINANCIAL ASS ISTANCE FROM THE STATE SHALL: (I) ASSESS ITS VULNERABIL ITY TO A CYBER ATTAC K; AND (II) IF APPROPRIATE , DEVELOP A CYBERSECUR ITY PLAN. (4) THE ADMINISTRATION MAY PR OVIDE FINANCIAL ASSI STANCE TO A PUBLIC WATER OR WA STEWATER SYSTEM TO A SSESS SYSTEM CYBERSE CURITY VULNERABILITIES AND DEVELOP A CYBERSECUR ITY PLAN. Article – Public Safety 14–104.1. (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “FUND” MEANS THE LOCAL CYBERSECURITY SUPPORT FUND. (3) “LOCAL GOVERNMENT ” INCLUDES LOCAL SCHOO L SYSTEMS, LOCAL SCHOOL BOARDS , AND LOCAL HEALTH DEP ARTMENTS. (B) (1) THERE IS A LOCAL CYBERSECURITY SUPPORT FUND. Ch. 243 2022 LAWS OF MARYLAND – 4 – (2) THE PURPOSE OF THE FUND IS TO: (I) PROVIDE FINANCIAL AS SISTANCE TO LOCAL GO VERNMENTS TO IMPROVE CYBERSECU RITY PREPAREDNESS , INCLUDING: 1. UPDATING CURRENT DEV ICES AND NETWORKS WI TH THE MOST UP–TO–DATE CYBERSE CURITY PROTECTIONS ; 2. SUPPORTING THE PURCH ASE OF NEW HARDWARE , SOFTWARE, DEVICES, AND FIREWALLS TO IMP ROVE CYBERSECURITY PREPAREDNESS ; 3. RECRUITING AND HIRIN G INFORMATION TECHNOLOGY STAFF FOC USED ON CYBERSECURIT Y; 4. PAYING OUTSIDE VENDORS FOR CYBERSEC URITY STAFF TRAINING ; 5. CONDUCTING CYBERSECU RITY VULNERABILITY ASSESSMENTS ; 6. ADDRESSING HIGH –RISK CYBERSECURITY VULNERABILITIES IDEN TIFIED BY VULNERABIL ITY ASSESSMENTS ; 7. IMPLEMENTING AND MAI NTAINING INTEGRATORS AND OTHER SIMILAR INTELL IGENCE SHARING INFRA STRUCTURE THAT ENABL E CONNECTION WITH THE INFORMATION SHARING AND ANALYSIS CENTER IN THE DEPARTMENT OF INFORMATION TECHNOLOGY ; AND 8. SUPPORTING THE SECUR ITY OF LOCAL WASTEWA TER TREATMENT PLANTS , INCLUDING BICOUNTY, COUNTY, AND MUNICIPAL PLANTS , BY ACQUIRING OR IMPLEME NTING CYBERSECURITY –RELATED UPGRADES TO THE PLANTS; AND (II) ASSIST LOCAL GOVERNM ENTS APPLYING FOR FE DERAL CYBERSECURITY PREPAR EDNESS GRANTS . (3) THE SECRETARY SHALL ADMIN ISTER THE FUND. (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 5 – (II) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. (5) THE FUND CONSISTS OF: (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; (II) INTEREST EARNINGS ; AND (III) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR THE BENEFIT OF T HE FUND. (6) THE FUND MAY BE USED ONLY : (I) TO PROVIDE FINANCIAL ASSISTANCE TO LOCAL GOVERNMENTS TO IMPRO VE CYBERSECURITY PRE PAREDNESS, INCLUDING: 1. UPDATING CURRENT DEV ICES AND NETWORKS WI TH THE MOST UP–TO–DATE CYBERSECURITY P ROTECTIONS; 2. SUPPORTING THE PURCH ASE OF NEW HARDWARE , SOFTWARE, DEVICES, AND FIREWALLS TO IMP ROVE CYBERSECURITY PREPAREDNESS ; 3. RECRUITING AND HIRIN G INFORMATION TECHNOLOGY STAFF FOC USED ON CYBERSECURIT Y; 4. PAYING OUTSIDE VENDO RS FOR CYBERSECURITY STAFF TRAINING ; 5. CONDUCTING CYBERSECU RITY VULNERABILITY ASSESSMENTS ; 6. ADDRESSING HIGH –RISK CYBERSECURITY VULNERABILITIES IDEN TIFIED BY VULNERABIL ITY ASSESSMENTS ; 7. IMPLEMENTING OR MAIN TAINING INTEGRATORS AND OTHER SIMILAR INTELL IGENCE SHARING INFRA STRUCTURE THAT ENABL E CONNECTION WITH THE INFORMATION SHARING AND ANALYSIS CENTER IN THE DEPARTMENT OF INFORMATION TECHNOLOGY ; AND 8. SUPPORTING THE SECUR ITY OF LOCAL WASTEWA TER TREATMENT PLANTS , INCLUDING BICOUNTY , COUNTY, AND MUNICIPAL PLANTS , BY Ch. 243 2022 LAWS OF MARYLAND – 6 – ACQUIRING OR IMPLEME NTING CYBERSECURITY –RELATED UPGRADES TO THE PLANTS; (II) TO ASSIST LOCAL GOVE RNMENTS APPLYING FOR FEDERAL CYBERSECURITY PREPAR EDNESS GRANTS ; AND (III) FOR ADMINISTRATIVE E XPENSES ASSOCIATED W ITH PROVIDING THE ASSIST ANCE DESCRIBED UNDER ITEM (I) OF THIS PARAGRAPH. (7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO THE FUND. (8) EXPENDITURES FROM THE FUND MAY BE MADE ON LY IN ACCORDANCE WITH THE STATE BUDGET. (C) TO BE ELIGIBLE TO REC EIVE ASSISTANCE FROM THE FUND, A LOCAL GOVERNMENT SHALL : (1) PROVIDE PROOF TO THE DEPARTMENT OF INFORMATION TECHNOLOGY THAT THE L OCAL GOVERNMENT COND UCTED A CYBERSECURIT Y PREPAREDNESS AS SESSMENT IN THE PREV IOUS 12 MONTHS; OR (2) WITHIN 12 MONTHS UNDERGO A CYB ERSECURITY PREPAREDN ESS ASSESSMENT PROVIDED BY, IN ACCORDANCE WITH T HE PREFERENCE OF THE LOCAL GOVERNMENT : (I) THE DEPARTMENT OF INFORMATION TECHNOLOGY AT A COST TO THE LOCAL GOVERNMENT THAT DOES NOT EXCEED THE COST TO THE DEPARTMENT OF INFORMATION TECHNOLOGY OF PROVIDI NG THE ASSESSMENT ; OR (II) A VENDOR AUTHORIZED BY THE DEPARTMENT OF INFORMATION TECHNOLOGY TO COMPLET E CYBERSECURITY PREP AREDNESS ASSESSMENTS . Article – Economic Development 10–628. (a) Except as provided in subsections (b) [and], (c), AND (D) of this section and subject to the prior approval of the Board of Public Works, the Authority may issue bonds LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 7 – at any time for any corporate purpose of the Authority, including the establishment of reserves and the payment of interest. (D) UNLESS AUTHORIZED BY THE GENERAL ASSEMBLY, THE BOARD OF PUBLIC WORKS MAY NOT APPROVE AN ISSUANCE BY THE AUTHORITY OF BONDS , WHETHER TAXABLE OR T AX EXEMPT, THAT CONSTITUTE TAX SUPPORTED DEBT OR NONTAX SUPPORTED DEB T IF, AFTER ISSUANCE , THERE WOULD BE OUTST ANDING AND UNPAID $1,500,000,000 FACE AMOUNTS OF THE BONDS FOR THE PURPOS E OF FINANCING RESEARCH I NTO, ACQUISITION OF , INSTALLATION OF , MAINTENANCE OF, AND RELATED EXPENSES FOR UPGRADES TO INFORMAT ION TECHNOLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE . 10–650.1. (A) THE AUTHORITY AND THE DEPARTMENT OF INFORMATION TECHNOLOGY SHALL COMP LY WITH THIS SECTION TO FINANCE PROJECTS TO RESEARCH, ACQUIRE, INSTALL, MAINTAIN, AND UPGRADE INFORMAT ION TECHNOLOGY AND CYBER SECURITY–RELATED STATE GOVERNMENT INFRASTRUCTURE . (B) THE AUTHORITY SHALL TRANS FER TO THE DEPARTMENT OF INFORMATION TECHNOLOGY THE PROCEE DS OF BONDS ISSUED U NDER THIS SUBTITLE FOR FINANCI NG INFORMATION TECHNOLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE PROJECTS . (C) AT LEAST 90 DAYS BEFORE PROVIDIN G THE WRITTEN NOTICE TO THE FISCAL COMMITTEES OF THE GENERAL ASSEMBLY REQUIRED UND ER SUBSECTION (D) OF THIS SECTION, THE AUTHORITY SHALL CONSULT WITH THE DEPARTMENT OF INFORMATION TECHNOLOGY TO DETERMI NE THE AMOUNT OF FUN DS NEEDED FOR INFORMATION TECHNOLO GY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFRASTRUCTURE PROJE CTS TO BE FINANCED W ITH THE PROPOSED BON DS. (D) AT LEAST 45 DAYS BEFOR E SEEKING APPROVAL O F THE BOARD OF PUBLIC WORKS FOR EACH BOND I SSUE RELATED TO INFO RMATION TECHNOLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE , THE AUTHORITY SHALL PROVI DE TO THE FISCAL COM MITTEES OF THE GENERAL ASSEMBLY, IN ACCORDANCE WIT H § 2–1257 OF THE STATE GOVERNMENT ARTICLE, WRITTEN NOTICE OF : (1) THE AGGREGATE AMOUNT OF FUNDS NEEDED FOR INFORMATION TECHNOLOGY AND CYBER SECURITY–RELATED STATE GOVERNMENT INFRASTRUCTURE PROJE CTS TO BE FINANCED W ITH THE PROPOSED BON DS; Ch. 243 2022 LAWS OF MARYLAND – 8 – (2) THE ANTICIPATED TOTAL DEBT S ERVICE FOR THE PROPO SED BOND ISSUE; AND (3) THE ANTICIPATED TOTA L DEBT SERVICE WHEN COMBINED WITH THE DEBT SERVICE FOR ALL PRIOR OUTSTANDIN G BOND ISSUES FOR IN FORMATION TECHNOLOGY AND CYBER SECURITY–RELATED STATE GOVERNMENT INFRASTRUCTURE PROJE CTS. (E) BEFORE EACH ISSUANCE OF BONDS TO FINANCE INFORMATION TECHNOLOGY AND CYBER SECURITY–RELATED STATE GOVERNMENT INFRASTRUCTURE PROJE CTS, THE AUTHORITY SHALL OBTAI N THE APPROVAL OF THE BOARD OF PUBLIC WORKS OF THE AGGREGAT E AMOUNT OF THE PROPOSED BOND ISSUE. (F) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR THEREAFTER , UNTIL THE BONDS THAT HAVE BEEN ISSUED TO FINAN CE INFORMATION TECHN OLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE PROJECTS ARE NO LONGER OUTSTANDIN G AND UNPAID, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BILL A N APPROPRIATION TO T HE INFORMATION TECHNOLOGY AND CYBERSECURITY INFRASTRUCTURE FUND IN AN AMOUNT SUF FICIENT TO COVER THE PROJECTED DEBT SERVICE REQUIRE MENTS FOR THE UPCOMI NG FISCAL YEAR. 10–657.5. (A) IN THIS SECTION , “FUND” MEANS THE INFORMATION TECHNOLOGY AND CYBERSECURITY INFRASTRUCTURE FUND. (B) THERE IS AN INFORMATION TECHNOLOGY AND CYBERSECURITY INFRASTRUCTURE FUND. (C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE AND THAT SHALL BE AVAILA BLE IN PERPETUITY TO IMPLEMENT THIS SUBTI TLE RELATED TO UPGRADES TO INFORMATION TECHN OLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE . (2) THE AUTHORITY SHALL: (I) USE THE FUND AS A REVOLVING F UND FOR CARRYING OUT THE PROVISIONS OF TH IS SUBTITLE RELATED TO UPGRADES TO INFOR MATION TECHNOLOGY AND CYBER SECURITY–RELATED STATE GOVERNMENT INFRASTRUCTURE ; AND LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 9 – (II) PAY ANY AND ALL EXPE NSES FROM THE FUND THAT ARE INCURRED BY THE AUTHORITY OR THE DEPARTMENT OF INFORMATION TECHNOLOGY RELATED TO UPGRADES TO INFORMAT ION TECHNOLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE . (D) THE FUND CONSISTS OF : (1) FUNDS APPROPRIATED F OR DEPOSIT TO THE FUND; (2) PROCEEDS FROM THE SA LE OF BONDS RELATED TO UPGRADES TO INFORMATION TECHNOLO GY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFRASTRUCTURE PROJE CTS; (3) REVENUES COLLECTED O R RECEIVED FROM ANY SOURCE UNDER THIS SUBTITLE RELATE D TO UPGRADES TO INFORMATION TECHNOLO GY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE PROJECTS ; (4) INTEREST EARNINGS ; AND (5) ANY ADDITIONAL MONEY MADE AVAILABLE FROM ANY PUBLIC OR PRIVATE SOURCE FOR T HE PURPOSES ESTABLIS HED FOR THE FUND. (E) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN THE SAME MANNER A S OTHER STATE FUNDS. (2) ANY INVESTMENT EARNIN GS SHALL BE CREDITED TO THE FUND. (3) NO PART OF THE FUND MAY REVERT OR BE CREDITED TO THE GENERAL FUND OF THE STATE OR ANY SPECIAL FUND OF THE STATE. Article – State Finance and Procurement 3A–101. (a) In this title the following words have the meanings indicated. (b) “CLOUD COMPUTING SERVICE” MEANS A SERVICE THAT ENABLES ON–DEMAND SELF –SERVICE NETWORK ACCE SS TO A SHARED POOL OF CONFIGURABLE COMPUTE R RESOURCES , INCLUDING DATA STORA GE, ANALYTICS, COMMERCE , STREAMING, E–MAIL, DOCUMENT SHARING , AND DOCUMENT EDITING . (C) “Department” means the Department of Information Technology. Ch. 243 2022 LAWS OF MARYLAND – 10 – [(c)] (D) “Secretary” means the Secretary of Information Technology. [(d)] (E) “Telecommunication” means the transmission of information, images, pictures, voice, or data by radio, video, or other electronic or impulse means. [(e)] (F) “Unit of State government” means an agency or unit of the Executive Branch of State government. 3A–303. (a) The Secretary is responsible for carrying out the following duties: (7) advising and consulting with the Legislative and Judicial branches of State government regarding a cybersecurity strategy; [and] (8) in consultation with the Attorney General, developing guidance on consistent cybersecurity strategies for counties, municipal corporations, school systems, and all other political subdivisions of the State; AND (9) UPGRADING INFORMATIO N TECHNOLOGY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE ; AND (10) ANNUALLY EVALUATING : (I) THE FEASIBILITY OF U NITS OF STATE GOVERNMENT PROVIDING PUBLIC SER VICES USING ARTIFICI AL INTELLIGENCE , MACHINE LEARNING, COMMERCIAL CLOUD COM PUTING SERVICES , DEVICE–AS–A–SERVICE PROCUREMENT MODELS , AND OTHER EMERGING T ECHNOLOGIES ; AND (II) THE DEVELOPMENT OF D ATA ANALYTICS CAP ABILITIES TO ENABLE DATA–DRIVEN POLICYMAKING BY UNITS OF STATE GOVERNMENT . 3A–315. (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “CITIZEN ADVOCACY GROU P” MEANS AN ORGANIZATIO N WHOSE MISSION IS TO PROVID E SUPPORT FOR INFORMATION TECHNOLO GY AND CYBERSECURITY POLICI ES. (3) (2) “COMMISSION” MEANS THE STATEWIDE REPORTING FRAMEWORK AND MODERNIZE MARYLAND OVERSIGHT COMMISSION. LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 11 – (4) (3) “CRITICAL SYSTEM ” MEANS AN INFORMATION TECHNOLOGY OR CYBERS ECURITY SYSTEM THAT IS SEVERELY OUTDATED , AS DETERMINED BY THE DEPARTMENT . (B) THERE IS A STATEWIDE REPORTING FRAMEWORK AND AN INDEPENDENT MODERNIZE MARYLAND OVERSIGHT COMMISSION IN THE DEPARTMENT . (C) THE PURPOSE OF THE COMMISSION IS TO: (1) ENSURE THE CONFIDENT IALITY, INTEGRITY, AND AVAILABILITY OF INFORMATION HELD BY THE STATE CONCERNING STATE RESIDENTS ; AND (2) DETERMINE ADVISE THE SECRETARY AND STATE CHIEF INFORMATION SECURITY OFFICER ON: (I) THE APPROPRIATE INFO RMATION TECHNOLOGY AND CYBERSECURITY INVEST MENTS AND UPGRADES ; (II) THE FUNDING SOURCES FOR THE APPROPRIATE INFORMATION TECHNOLO GY AND CYBERSECURITY UPGRADES; AND (III) FUTURE MECHANISMS FO R THE PROCUREMENT OF APPROPRIATE INFORMAT ION TECHNOLOGY AND C YBERSECURITY UPGRADES, INCLUDING WAYS TO IN CREASE THE EFFICIENC Y OF PROCUREMENTS MA DE FOR INFORMATION TECHNOLO GY AND CYBERSECURITY UPGRADES. (D) THE COMMISSION CONSISTS O F THE FOLLOWING MEMB ERS: (1) THE SECRETARY; (2) THE STATE CHIEF INFORMATION SECURITY OFFICER; (3) THE STATE TREASURER; (4) THE COCHAIRS OF THE JOINT COMMITTEE ON CYBERSECURITY , INFORMATION TECHNOLOGY , AND BIOTECHNOLOGY ; (5) (3) THREE CHIEF INFORMAT ION SECURITY OFFICER S REPRESENTING DIFFERE NT UNITS OF STATE GOVERNMENT , APPOINTED BY THE GOVERNOR; Ch. 243 2022 LAWS OF MARYLAND – 12 – (6) (4) FOUR ONE INFORMATION TECHNOLO GY EXPERTS IN MODERNIZATION EXPERT WITH EXPERIENCE IN THE PRIVATE SECTOR , APPOINTED BY THE GOVERNOR; (7) (5) ONE REPRESENTATIVE F ROM THE MARYLAND CHAMBER OF COMMERCE WITH KNOWLEDGE OF CY BERSECURITY ISSUES; (8) (6) TWO REPRESENTATIVES FROM CITIZEN ADVOCACY GRO UPS IN THE STATE, APPOINTED BY THE GOVERNOR; INDIVIDUALS WHO ARE END USERS OF STATE INFORMATION TEC HNOLOGY SYSTEMS , ONE APPOINTED BY THE PRESIDENT OF THE SENATE AND ONE APPOIN TED BY THE SPEAKER OF THE HOUSE APPOINTED BY THE GOVERNOR; (9) (7) ONE CHIEF INFORMATIO N SECURITY OFFICER F ROM THE PRIVATE SECTOR WHO H AS COMPLETED INFORMA TION TECHNOLOGY AND CYBERSECURITY UPGRAD ES FOR A BUSINESS WI TH OVER 100 INFORMATION TECHNOLOGY SYSTEMS , APPOINTED BY THE GOVERNOR; AND (10) (8) ONE CHIEF INFORMATIO N SECURITY OFFICER F ROM THE EDUCATION SECTOR WHO HAS COMPLETED INFORM ATION TECHNOLOGY AND CYBERSECURITY UPGRAD ES FOR AN EDUCATIONA L INSTITUTION WITH O VER 100 INFORMATION TECHNOLO GY SYSTEMS, APPOINTED BY THE GOVERNOR. (7) ONE REPRESENTATIVE F ROM THE CYBERSECURITY ASSOCIATION OF MARYLAND; AND (8) ONE INDIVIDUAL WHO I S EITHER AN INSTRUCT OR OR A PROFESSIONAL IN THE ACADEMIC FIELD OF CY BERSECURITY AT A COL LEGE OR UNIVERSITY IN THE STATE, APPOINTED BY THE GOVERNOR. (E) THE COCHAIRS OF THE JOINT COMMITTEE ON CYBERSECURITY , INFORMATION TECHNOLOGY , AND BIOTECHNOLOGY SHALL S ERVE AS ADVISORY , NONVOTING MEMBERS OF THE COMMISSION. (E) (F) THE COMMISSION SHALL : (1) DEVELOP ADVISE THE SECRETARY ON A STRATEGIC ROADMAP WITH A TIMELINE AND BUDGET THAT WILL : (I) REQUIRE THE UPDATES AND INVESTMENTS OF C RITICAL INFORMATION TECHNOLO GY AND CYBERSECURITY SYSTEMS IDENTIFIED BY THE COMMISSION IN THE FIR ST RECOMMENDATIONS R EPORTED UNDER PARAGR APH (2) OF THIS SUBSECTION TO BE COMPLETED ON O R BEFORE DECEMBER 31, 2025; AND LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 13 – (II) REQUIRE ALL UPDATES AND INVESTMENTS OF INFORMATION TECHNOLO GY AND CYBERSECURITY TO BE MADE ON OR BEF ORE DECEMBER 31, 2030; (2) MAKE PERIODIC RECOMM ENDATIONS ON INVESTM ENTS IN STATE INFORMATION TECHNOLO GY STRUCTURES BASED ON THE ASSESSMENTS COMPLETED IN ACCORDA NCE WITH THE FRAMEWO RK DEVELOPED IN § 3A–316 OF THIS SUBTITLE; AND (3) REVIEW AND PROVIDE R ECOMMENDATIONS ON TH E DEPARTMENT’S BASIC SECURITY STA NDARDS FOR USE OF TH E NETWORK ESTABLISHED UNDER § 3A–404(B) OF THIS TITLE; AND (3) (4) EACH YEAR, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE SENATE BUDGET AND TAXATION COMMITTEE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS COMMITTEE, THE HOUSE APPROPRIATIONS COMMITTEE, THE HOUSE HEALTH AND GOVERNMENT OPERATIONS COMMITTEE, AND THE JOINT COMMITTEE ON CYBERSECURITY , INFORMATION TECHNOLOGY , AND BIOTECHNOLOGY . (G) THE REPORT SUBMITTED UNDER SUBSECTION (F)(4) OF THIS SECTION MAY NOT CONTAIN INFO RMATION ABOUT THE SE CURITY OF AN INFORMATION SYSTEM. 3A–316. (A) THIS SECTION DOES NOT APPLY TO: (1) THE MARYLAND PORT ADMINISTRATION ; (2) THE UNIVERSITY SYSTEM OF MARYLAND; (3) ST. MARY’S COLLEGE OF MARYLAND; (4) MORGAN STATE UNIVERSITY; (5) THE MARYLAND STADIUM AUTHORITY; (6) BALTIMORE CITY COMMUNITY COLLEGE; OR (7) THE STATE BOARD OF ELECTIONS.; Ch. 243 2022 LAWS OF MARYLAND – 14 – (8) THE OFFICE OF THE ATTORNEY GENERAL; (9) THE COMPTROLLER ; OR (10) THE STATE TREASURER. (A) (B) (1) THE DEPARTMENT SHALL HIRE AN INDEPENDENT CONTRACTOR CONTRACTORS TO: (I) DEVELOP A FRAMEWORK FOR INVESTMENTS IN TECHNOLOGY ; AND (II) AT LEAST ONCE EVERY 3 2 YEARS, IN ACCORDANCE WITH THE FRAMEWORK , ANNUALLY ASSESS THE CYBERSECU RITY AND INFORMATION TECHNOLOGY SYSTEMS I N EACH UNIT OF STATE GOVERNMENT . (2) THE FRAMEWORK SHALL I NCLUDE THE FOLLOWING CRITERIA: (I) SECURITY RISKS TO TH E SYSTEM; (II) SYSTEM PERFORMANCE ; (III) THE SYSTEM ’S DEPENDENCE ON OTHE R INFORMATION TECHNOLOGY OR CYBERS ECURITY SYSTEMS AND DATA; (IV) THE SYSTEM ’S ABILITY TO CREATE AN EFFICIENT AND SEAMLESS EXPERIENCE FOR USERS; (V) THE SYSTEM ’S EFFECTIVENESS IN A CHIEVING UNIT OBJECTIVES; (VI) THE SYSTEM’S EFFECTIVENESS IN M EETING THE NEEDS OF CITIZENS AND CUSTOME RS; (VII) THE COSTS TO MAINTAIN AN D OPERATE THE SYSTEM ; (VIII) THE SPEED OF GOVERNM ENT RESPONSE TIME ; (IX) THE EFFECTIVENESS OF THE SYSTEM IN REGARD TO THE UNIT’S OBJECTIVES; (X) IMPROVEMENTS TO THE UNIT’S RELATIVE AUDIT FIN DINGS ATTRIBUTABLE TO THE SYSTEM; AND LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 15 – (XI) AN ASSESSMENT OF THE SYSTEM USING THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY CYBERSECURITY FRAMEWORK . (B) (C) EACH UNIT SHALL PROMP TLY PROVIDE THE CONTRACTOR A CONTRACTOR EMPLOYED UNDER SUBSECTION (B) OF THIS SECTION WITH THE INFORMATION NECESSAR Y TO PERFORM THE ASS ESSMENTS. (C) (D) (1) EACH YEAR, THE EVERY 3 2 YEARS, A CONTRACTOR SHALL PROVIDE THE RESULTS OF THE ASSESSMENTS T O: (I) THE STATEWIDE REPORTING FRAMEWORK AND OVERSIGHT MODERNIZE MARYLAND COMMISSION ESTABLISHE D UNDER § 3A–315 OF THIS SUBTITLE; AND (II) IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE SENATE BUDGET AND TAXATION COMMITTEE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS COMMITTEE, AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS COMMITTEE. (2) THE REPORT SUBMITTED UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION MAY NOT C ONTAIN INFORMATION A BOUT THE SECURITY OF AN INFORMATION SYSTEM . (D) (E) THE DEPARTMENT MAY USE FUNDS AVAILABLE FROM THE ISSUANCE OF BONDS IN ACCORDANCE WITH § 10–650.1 OF THE ECONOMIC DEVELOPMENT ARTICLE TO PAY FOR TH E INDEPENDENT CONTRA CTOR REQUIRED UNDER MULTIPLE CONTRACTORS AT A TIME TO MEET TH E REQUIREMENTS OF THIS SECTION. 3A–317. (A) THE DEPARTMENT SHALL CONS ULT WITH THE MARYLAND STADIUM AUTHORITY REGARDING THE ISS UANCE OF BONDS FOR U PGRADES TO INFORMATION TECHNOLO GY AND CYBERSECURITY –RELATED STATE GOVERNMENT INFRASTRUCTURE IN AC CORDANCE WITH § 10–650.1 OF THE ECONOMIC DEVELOPMENT ARTICLE. (B) THE DEPARTMENT MAY USE TH E PROCEEDS FROM BOND S ISSUED FOR UPGRADES TO INFORMAT ION TECHNOLOGY AND C YBERSECURITY –RELATED STATE GOVERNMENT INFRASTRU CTURE UNDER § 10–650.1 OF THE ECONOMIC DEVELOPMENT ARTICLE ONLY FOR PROJ ECTS THAT RELATE TO RESEARCH INTO , ACQUISITION OF , INSTALLATION OF , MAINTENANCE OF , AND RELATED EXPENSES FOR UPGRADES TO INFO RMATION TECHNOLOGY A ND CYBERSECURITY –RELATED STATE GOVERNMENT INFR ASTRUCTURE . Ch. 243 2022 LAWS OF MARYLAND – 16 – (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) “FUND” MEANS THE LOCAL CYBERSECURITY SUPPORT FUND. (3) “LOCAL GOVERNMENT ” INCLUDES LOCAL SCHOO L SYSTEMS, LOCAL SCHOOL BOARDS , AND LOCAL HEALTH DEP ARTMENTS. (B) (1) THERE IS A LOCAL CYBERSECURITY SUPPORT FUND. (2) THE PURPOSE OF THE FUND IS TO: (I) PROVIDE FINANCIAL AS SISTANCE TO LOCAL GO VERNMENTS TO IMPROVE CYBERSECURIT Y PREPAREDNESS , INCLUDING: 1. UPDATING CURRENT DEV ICES AND NETWORKS WI TH THE MOST UP–TO–DATE CYBERSECURITY P ROTECTIONS; 2. SUPPORTING THE PURCH ASE OF NEW HARDWARE , SOFTWARE, DEVICES, AND FIREWALLS TO IMP ROVE CYBERSECURITY PREPAREDNESS ; 3. RECRUITING AND HIRIN G INFORMATION TECHNOLOGY STAFF FOC USED ON CYBERSECURIT Y; AND 4. PAYING OUTSIDE VENDO RS FOR CYBERSECURITY STAFF TRAINING ; AND (II) ASSIST LOCAL GOVERNM ENTS APPLYING FOR FE DERAL CYBERSECURITY PREPAR EDNESS GRANTS. (3) THE SECRETARY SHALL ADMIN ISTER THE FUND. (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. (II) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. (5) THE FUND CONSISTS OF : (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 17 – (II) INTEREST EARNINGS ; AND (III) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR THE BENEFIT OF T HE FUND. (6) THE FUND MAY BE USED ONLY : (I) TO PROVIDE FINANCIAL ASSISTANCE TO LOCAL GOVERNMENTS TO IMPRO VE CYBERSECURITY PRE PAREDNESS, INCLUDING: 1. UPDATING CURRENT DEV ICES AND NETWORKS WI TH THE MOST UP–TO–DATE CYBERSECURITY P ROTECTIONS; 2. SUPPORTIN G THE PURCHASE OF NE W HARDWARE , SOFTWARE, DEVICES, AND FIREWALLS TO IMP ROVE CYBERSECURITY PREPAREDNESS ; 3. RECRUITING AND HIRIN G INFORMATION TECHNOLOGY STAFF FOC USED ON CYBERSECURIT Y; AND 4. PAYING OUTSIDE VENDO RS FOR CYBERSECURITY STAFF TRAINING ; (II) TO ASSIST LOCAL GOVE RNMENTS APPLYING FOR FEDERAL CYBERSECURITY PREPAR EDNESS GRANTS ; AND (III) FOR ADMINISTRATIVE E XPENSES ASSOCIATED W ITH PROVIDING THE ASSIST ANCE DESCRIBED UNDER ITEM (I) OF THIS PARAGRAPH . (7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO THE FUND. (8) EXPENDITURES FROM THE FUND MA Y BE MADE ONLY IN ACCORDANCE WITH THE STATE BUDGET . (C) TO BE ELIGIBLE TO REC EIVE ASSISTANCE FROM THE FUND, A LOCAL GOVERNMENT SHALL UND ERGO A CYBERSECURITY PREPAREDNESS ASSESSM ENT PROVIDED BY THE DEPARTMENT AT A COST TO THE LOCAL GOVERNM ENT THAT DOES NOT EXCEED THE COST TO THE DEPARTMENT OF PROVIDI NG THE ASSESSMENT . Ch. 243 2022 LAWS OF MARYLAND – 18 – 6–226. (a) (2) (i) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State. (ii) The provisions of subparagraph (i) of this paragraph do not apply to the following funds: 144. the Health Equity Resource Community Reserve Fund; [and] 145. the Access to Counsel in Evictions Special Fund; AND 146. THE INFORMATION TECHNOLOGY AND LOCAL CYBERSECURITY INFRASTRUCTURE SUPPORT FUND. 11–101. (a) In this Division II the following words have the meanings indicated unless: (1) the context clearly requires a different meaning; or (2) a different definition is provided for a particular title or provision. (m) “Primary procurement units” means: (1) the State Treasurer; (2) the Department of General Services; (3) the Department of Transportation; (4) the University System of Maryland; (5) the Maryland Port Commission; (6) the Morgan State University; [and] (7) the St. Mary’s College of Maryland; AND LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 19 – (8) THE DEPARTMENT OF INFORMATION TECHNOLOGY . 12–101. (a) This section does not apply to: (1) capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12–202 of this title; OR (2) PROCUREMENTS BY THE DEPARTMENT OF INFORMATION TECHNOLOGY GENERAL SERVICES FOR THE PURPOSE OF MODERNIZI NG CYBERSECURITY INFRAS TRUCTURE FOR THE STATE VALUED BELOW $1,000,000. (b) (1) The Board may control procurement by units. (2) To implement the provisions of this Division II, the Board may: (i) set policy; (ii) adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article; and (iii) establish internal operational procedures consistent with this Division II. (3) The Board shall ensure that the regulations of the primary procurement units provide for procedures that are consistent with this Division II and Title 13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the circumstances of a particular type of procurement or a particular unit do not require otherwise, are substantially the same. (4) The Board may delegate any of its authority that it determines to be appropriate for delegation and may require prior Board approval for specified procurement actions. (5) Except as limited by the Maryland Constitution, the Board may exercise any control authority conferred on a primary procurement unit by this Division II and, to the extent that its action conflicts with the action of the primary procurement unit, the action of the Board shall prevail. (6) The Board shall develop and submit to the General Assembly, in accordance with § 2–1257 of the State Government Article, an annual report on the procurement system that includes information on actions necessary to improve effective broad–based competition in procurement. Ch. 243 2022 LAWS OF MARYLAND – 20 – (C) ON OR BEFORE DECEMBER 1 EACH YEAR, THE DEPARTMENT OF INFORMATION TECHNOLOGY GENERAL SERVICES SHALL SUBMIT A REPOR T TO THE BOARD ON PROCUREMENTS MADE UNDER SUBSECTIO N (A)(2) OF THIS SECTION THAT SHALL INCLUDE F OR EACH PROCUREMENT : (1) THE PURPOSE OF THE P ROCUREMENT ; (2) THE NAME OF THE CONT RACTOR; (3) THE CONTRACT AMOUNT ; AND (4) THE METHOD OF PROCUR EMENT UTILIZED ; (5) THE NUMBER OF BIDDER S WHO BID ON THE PRO CUREMENT; AND (4) (6) THE CONTRACT TERM . 12–107. (b) Subject to the authority of the Board, jurisdiction over procurement is as follows: (2) the Department of General Services may: (i) engage in or control procurement of: 8. construction and construction–related services for State correctional facilities; AND 9. supplies, materials, and equipment in support of construction and construction–related services for State correctional facilities in accordance with this Division II and Title 2 and Title 10, Subtitle 1 of the Correctional Services Article; AND 10. [information processing equipment and associated services, as provided in Title 3A, Subtitle 3 of this article; and 11.] telecommunication equipment, systems, or services, as provided in Title 3A, Subtitle 4 of this article; (3) the Department of Transportation and the Maryland Transportation Authority, without the approval of any of the other primary procurement units, may engage in the procurement of: LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 21 – (vi) services for aeronautics related activities, including information processing services, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection; [and] (4) the Maryland Port Commission, without the approval of any of the other primary procurement units, may engage in the procurement of: (v) leases of real property for port related activities unless the lease payments are from the General Fund of the State; AND (5) THE DEPARTMENT OF INFORMATION TECHNOLOGY GENERAL SERVICES, WITHOUT THE APPROVAL OF ANY OTHER PRIMARY PROCUREMENT UNIT , MAY ENGAGE IN OR CON TROL PROCUREMENT OF : (I) INFORMATION PROCESSI NG EQUIPMENT , CLOUD COMPUTING EQUIPMENT , AND ASSOCIATED SERVI CES, AS PROVIDED IN TITLE 3A, SUBTITLE 3 OF THIS ARTICLE; AND (II) INFORMATION TECHNOLO GY SYSTEM AND MODERNIZATION , AS PROVIDED IN TITLE 3A, SUBTITLE 3 OF THIS ARTICLE; (III) TELECOMMUNICATION EQ UIPMENT, SYSTEMS, OR SERVICES, AS PROVIDED IN TITLE 3A, SUBTITLE 4 OF THIS ARTICLE; AND (IV) CYBERSECURITY UPGRAD ES AND MODERNIZATION , AS PROVIDED IN TITLE 3A, SUBTITLE 3 OF THIS ARTICLE . 15–112. (a) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this section applies to State procurement contracts for: 1. construction; 2. INFORMATION PROCESSI NG EQUIPMENT , CLOUD COMPUTING EQUIPMENT SERVICES, AND ASSOCIATED SERVI CES; AND 3. IN ACCORDANCE WITH TITLE 3A, SUBTITLE 3 OF THIS ARTICLE, INFORMATION TECHN OLOGY SYSTEM AND CYB ERSECURITY UPGRADES AND MODERNIZATION . (b) (3) (i) If a unit is to pay for a contract or a part of a contract using a unit price methodology, a change order may not be required for work to continue and be completed beyond the estimated quantities in the contract. Ch. 243 2022 LAWS OF MARYLAND – 22 – (ii) After work is completed, a unit shall: 1. determine the actual quantity used to complete the contract; and 2. if necessary, issue a final adjustment change order to the contractor. (4) AN INDEPEND ENT CONTRACTOR WHO P ERFORMS AN ASSESSMENT UNDER § 3A–316 OF THIS ARTICLE MAY ISSUE A CHANGE ORDER ON THE ORIGINAL ASSESSM ENT CONTRACT FOR ANY SUBSEQUENT CYBERSECU RITY UPGRADES. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2022. SECTION 2. AND BE IT FURTHER ENACTED, That for fiscal year 2023, funds from the Dedicated Purpose Account may be transferred by budget amendment in accordance with § 7–310 of the State Finance and Procurement Article to implement this Act. SECTION 3. AND BE IT FURTHER ENACTED, That for fiscal year 2024, the Governor shall include in the annual budget bill an appropriation in an amount that is not less than 20% of the aggregated amount appropriated for information technology and cybersecurity resources in the annual budget bill for fiscal year 2023 for the Dedicated Purpose Account for cybersecurity. SECTION 4. AND BE IT FURTHER ENACTED, That: (a) On or before December 1, 2023, a public or private water or sewer system that serves 10,000 or more users and receives financial assistance from the State shall: (1) assess its vulnerability to a cyber attack; (2) if appropriate, develop a cybersecurity plan; and (3) submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the findings of the assessment conducted under this subsection and any recommendations for statutory changes needed for the system to appropriately address its cybersecurity. (b) The Maryland Water Quality Financing Administration may provide financial assistance to a public water or wastewater system to assess system cybersecurity vulnerabilities and develop a cybersecurity plan. LAWRENCE J. HOGAN, JR., Governor Ch. 243 – 23 – SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act is an emergency measure, is necessary for the immediate preservation of the public health or safety, has been passed by a yea and nay vote supported by three–fifths of all the members elected to each of the two Houses of the General Assembly, and shall take effect from the date it is enacted. Approved by the Governor, May 12, 2022.