EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. Italics indicate opposite chamber/conference committee amendments. *hb0723* HOUSE BILL 723 P2 (2lr2472) ENROLLED BILL — Health and Government Operations/Budget and Taxation — Introduced by Delegate Charles Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for his approval this _______ day of _______________ at __ ______________________ o’clock, ________M. ______________________________________________ Speaker. CHAPTER ______ AN ACT concerning 1 State Finance and Procurement – Procedures and Pricing and Selection 2 Committee for Preferred Providers 3 FOR the purpose of renaming the Pricing and Selection Committee for Blind Industries 4 and Services of Maryland and the Employment Works Program to be the Pricing and 5 Selection Committee for Preferred Providers; requiring that Maryland Correctional 6 Enterprises provide the proposed prevailing average market price of certain goods 7 and services that are available from Maryland Correctional Enterprises to the 8 Pricing and Selection Committee; requiring the Pricing and Selection Committee to 9 review and verify the prevailing average market prices of certain goods and services; 10 altering the duties of the Department of Information Technology relating to 11 procurement; altering the duties of the Department of Information Technology 12 relating to procurement; renaming the Purchasing Bureau in the Department of 13 General Services to be the Office of State Procurement, led by the Chief Procurement 14 Officer; establishing certain duties and authority of the Chief Procurement Officer; 15 2 HOUSE BILL 723 altering the list of units that are defined as “designated procurement units”; altering 1 the list of units that are defined as “designated procurement units”; authorizing the 2 Chief Procurement Officer to establish certain fees under certain circumstances; 3 authorizing certain types of procurement to be conducted by electronic means; 4 renaming the Electronic Transaction Fund in the Department to be the Operations 5 Revenue Fund; altering the procedures used by certain units when procuring certain 6 goods and services; repealing a requirement that a procurement officer post the 7 amount of each bid at the time it is received; establishing that the Employment 8 Works Program and an Employment Works Program vendor are not subject to 9 certain cost savings requirements; altering the duties of the Pricing and Selection 10 Committee; providing that certain provisions relating to the use of eMaryland 11 Marketplace do not apply to certain emergency procurements; altering the dates of 12 certain reporting requirements; and generally relating to State procurement. 13 BY repealing and reenacting, with amendments, 14 Article – Correctional Services 15 Section 3–515 16 Annotated Code of Maryland 17 (2017 Replacement Volume and 2021 Supplement) 18 BY repealing and reenacting, without amendments, 19 Article – State Finance and Procurement 20 Section 3A–301(a) and 13–101(a) 21 Annotated Code of Maryland 22 (2021 Replacement Volume) 23 BY repealing and reenacting, with amendments, 24 Article – State Finance and Procurement 25 Section 3A–301(d) and (f), 3A–401 3A–301(f) 3A–301(d) and (f), 3A–401, 4–206(a), 26 4–301, 4–302, 4–303, 4–307, 4–310, 4–311, 4–312, 4–313, 4–315, 4–316, 27 13–101 13–101(c) 13–101, 13–102.1, 13–111, 13–226, 14–102, 14–106, 14–107, 28 14–405, 14–410(e), and 17–502 29 Annotated Code of Maryland 30 (2021 Replacement Volume) 31 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 32 That the Laws of Maryland read as follows: 33 Article – Correctional Services 34 3–515. 35 (a) A unit of State government shall purchase from Maryland Correctional 36 Enterprises any goods or services that are available from Maryland Correctional 37 Enterprises and that Maryland Correctional Enterprises can provide at a price not 38 exceeding the prevailing average market price as determined by the [Department of 39 HOUSE BILL 723 3 General Services] PRICING AND SELECTION COMMITTEE FOR PREFERRED 1 PROVIDERS. 2 (b) THE PRICING AND SELECTION COMMITTEE FOR PREFERRED 3 PROVIDERS SHALL REVIE W AND VERIFY THE PRE VAILING AVERAGE MARK ET 4 PRICES, AS PROPOSED BY MARYLAND CORRECTIONAL ENTERPRISES: 5 (1) WHEN CHANGES ARE MAD E TO THE PRICING OF EXISTING GOODS 6 AND SERVICES THAT AR E AVAILABLE FROM MARYLAND CORRECTIONAL 7 ENTERPRISES; AND 8 (2) FOR NEW GOODS OR SER VICES THAT MARYLAND CORRECTIONAL 9 ENTERPRISES INTENDS TO MAKE AVAILABLE . 10 (C) (1) The contracting unit shall inform each unit of State government for 11 which it procures goods or services within 60 days after the award of a contract. 12 (2) Quarterly, each unit that requires goods or services for its operations 13 shall inform Maryland Correctional Enterprises of its anticipated orders during the next 14 3–month period. 15 (3) If Maryland Correctional Enterprises is unable to provide any of the 16 goods or services under the contract, Maryland Correctional Enterprises shall notify the 17 contracting unit so that appropriate alternative action may be taken to meet the needs of 18 units of State government for which the contracting unit procures goods or services. 19 [(c)] (D) The Board of Public Works: 20 (1) shall suspend the application of subsection (a) of this section if the 21 Board of Public Works finds that the purposes of Division II of the State Finance and 22 Procurement Article are being unduly eroded due to the volume and scope of activities and 23 sales by Maryland Correctional Enterprises; and 24 (2) may suspend the application of subsection (a) of this section for data 25 entry services that involve information that is protected from disclosure under Title 4 of 26 the General Provisions Article. 27 Article – State Finance and Procurement 28 3A–301. 29 (a) In this subtitle the following words have the meanings indicated. 30 (d) (1) “Development” means all expenditures for a new information 31 technology system or an enhancement to an existing system including system: 32 4 HOUSE BILL 723 (i) planning; 1 (ii) [procurement; 2 (iii)] creation; 3 [(iv)] (III) installation; 4 [(v)] (IV) testing; and 5 [(vi)] (V) initial training. 6 (2) “Development” does not include: 7 (i) ongoing operating costs, software or hardware maintenance, 8 routine upgrades, or modifications that merely allow for a continuation of the existing level 9 of functionality; or 10 (ii) expenditures made after a new or enhanced system has been 11 legally accepted by the user and is being used for the business process for which it was 12 intended. 13 (d) (1) “Development” means all expenditures for a new information technology 14 system or an enhancement to an existing system including system: 15 (i) planning; 16 (ii) [procurement; 17 (iii)] creation; 18 [(iv)] (III) installation; 19 [(v)] (IV) testing; and 20 [(vi)] (V) initial training. 21 (2) “Development” does not include: 22 (i) ongoing operating costs, software or hardware maintenance, 23 routine upgrades, or modifications that merely allow for a continuation of the existing level 24 of functionality; or 25 (ii) expenditures made after a new or enhanced system has been 26 legally accepted by the user and is being used for the business process for which it was 27 intended. 28 HOUSE BILL 723 5 (f) “Information technology” means all electronic information processing 1 [hardware and software], including: 2 (1) maintenance; 3 (2) telecommunications; [and] 4 (3) HARDWARE ; 5 (4) SOFTWARE; AND 6 [(3)] (5) associated [consulting] services. 7 3A–401. 8 (a) The Department shall: 9 (1) coordinate the development, [procurement,] management, and 10 operation of telecommunication equipment, systems, and services by State government; 11 (2) acquire and manage common user telecommunication equipment, 12 systems, or services and charge units of State government for their proportionate share of 13 the costs of installations, maintenance, and operation of the common user 14 telecommunication equipment, systems, or services; 15 (3) promote compatibility of telecommunication systems by developing 16 policies, procedures, and standards for the acquisition and use of telecommunication 17 equipment, systems, and services by units of State government; 18 (4) coordinate State government telecommunication systems and services 19 by reviewing requests by units of State government for telecommunication equipment, 20 systems, or services; 21 (5) advise units of State government about planning, acquisition, and 22 operation of telecommunication equipment, systems, or services; and 23 (6) provide radio frequency coordination for State and local governments 24 in accordance with regulations of the Federal Communications Commission. 25 (b) The Department may make arrangement for a user other than a unit of State 26 government to have access to and use of State telecommunication equipment, systems, and 27 services and shall charge the user any appropriate amount to cover the cost of installation, 28 maintenance, and operation of the telecommunication equipment, system, or service 29 provided. 30 6 HOUSE BILL 723 3A–401. 1 (a) The Department shall: 2 (1) coordinate the development, [procurement,] management, and operation 3 of telecommunication equipment, systems, and services by State government; 4 (2) acquire and manage common user telecommunication equipment, 5 systems, or services and charge units of State government for their proportionate share of 6 the costs of installations, maintenance, and operation of the common user 7 telecommunication equipment, systems, or services; 8 (3) promote compatibility of telecommunication systems by developing 9 policies, procedures, and standards for the acquisition and use of telecommunication 10 equipment, systems, and services by units of State government; 11 (4) coordinate State government telecommunication systems and services by 12 reviewing requests by units of State government for telecommunication equipment, systems, 13 or services; 14 (5) advise units of State government about planning, acquisition, and 15 operation of telecommunication equipment, systems, or services; and 16 (6) provide radio frequency coordination for State and local governments in 17 accordance with regulations of the Federal Communications Commission. 18 (b) The Department may make arrangement for a user other than a unit of State 19 government to have access to and use of State telecommunication equipment, systems, and 20 services and shall charge the user any appropriate amount to cover the cost of installation, 21 maintenance, and operation of the telecommunication equipment, system, or service 22 provided. 23 4–206. 24 (a) The following units are in the Department: 25 (1) the Board of Architectural Review; 26 (2) [the General Professional Services Selection Board; 27 (3) the Purchasing Bureau] THE OFFICE OF STATE PROCUREMENT ; 28 and 29 [(4)] (3) any other unit that is in the Department under any other law. 30 4–301. 31 HOUSE BILL 723 7 (a) In this subtitle the following words have the meanings indicated. 1 (b) “Bid” means a bid, proposal, or other response to a solicitation. 2 (C) (1) “SERVICES” MEANS THE RENDERING OF TIME, EFFORT, OR WORK, 3 RATHER THAN THE FURN ISHING OF A SPECIFIC PHYSICAL PRODUCT OTH ER THAN 4 REPORTS INCIDENTAL T O THE REQUIRED PERFO RMANCE. 5 (2) “SERVICES” INCLUDES MAINTENANCE , 6 CONSTRUCTION–RELATED SERVICES , ARCHITECTURAL SERVIC ES, ENGINEERING 7 SERVICES, AND THE PROFESSIONAL , PERSONAL, OR CONTRACTUAL SERVI CES 8 PROVIDED BY ATTORNEY S, ACCOUNTANTS , PHYSICIANS, CONSULTANTS , AND OTHER 9 PROFESSIONALS WHO AR E INDEPENDENT CONTRA CTORS. 10 [(c)] (D) “Supplies” means tangible property, including equipment and 11 materials. 12 4–302. 13 There is [a Purchasing Bureau] AN OFFICE OF STATE PROCUREMENT in the 14 Department. 15 4–303. 16 The Secretary may delegate any power or duty set forth in Part I or Part II of this 17 subtitle to the Chief [of the Purchasing Bureau] PROCUREMENT OFFICER OF THE 18 OFFICE OF STATE PROCUREMENT . 19 4–307. 20 The Secretary OR THE CHIEF PROCUREMENT OFFICER shall provide a copy of 21 each award for supplies to the requisitioning unit. 22 4–310. 23 Except as otherwise specifically provided by law, each unit of the Executive Branch 24 of the State Government shall purchase all supplies AND SERVICES through or with the 25 approval of the Secretary OR THE CHIEF PROCUREMENT OFFICER. 26 4–311. 27 [An] EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED BY LAW , AN invoice for 28 supplies purchased by the Secretary, BY THE CHIEF PROCUREMENT OFFICER, or by any 29 unit that procures supplies under Division II of this article may not be paid until the invoice 30 8 HOUSE BILL 723 has been approved by the Secretary, THE CHIEF PROCUREMENT OFFICER, or a designee 1 of the Secretary OR THE CHIEF PROCUREMENT OFFICER. 2 4–312. 3 [Consistent] EXCEPT AS OTHERWISE S PECIFICALLY PROVIDED BY LAW AND 4 CONSISTENT with Division II of this article, the Secretary OR CHIEF PROCUREMENT 5 OFFICER shall set standards for supplies to be purchased by a unit, including standards 6 for electronic equipment used by State employees or the public for communications that are 7 consistent with the standards for nonvisual access information technology issued under § 8 3–410 of this article. 9 4–313. 10 Consistent with Division II of this article, the Secretary OR THE CHIEF 11 PROCUREMENT OFFICER shall contract for or purchase any supplies OR SERVICES for a 12 unit except: 13 (1) an item that the Secretary OR CHIEF PROCUREMENT OFFICER: 14 [(1)] (I) determines is strictly perishable; 15 [(2)] (II) determines is impracticable for the unit to purchase through or 16 with the approval of the Secretary OR CHIEF PROCUREMENT OFFICER; or 17 [(3)] (III) permits the unit to purchase with the approval of the Secretary 18 OR CHIEF PROCUREMENT OFFICER; OR 19 (2) SUPPLIES OR SERVICES AUTHORIZED BY STATUT E TO BE 20 PROCURED BY ANOTHER PRIMARY PROCUREMENT UNIT OR DELEGATED TO 21 ANOTHER UNIT . 22 4–315. 23 (a) An employee of a unit that procures supplies under Division II of this article 24 whose salary and expenses are paid from the fees of the employee’s office may not pay any 25 contractor or seller for any article of any kind acquired for the unit unless the invoice 26 approved by the employee is also approved by the Secretary OR CHIEF PROCUREMENT 27 OFFICER or a designee of the Secretary OR CHIEF PROCUREMENT OFFICER. 28 (b) The Governor may remove an employee for any violation of the provisions of 29 this section. 30 4–316. 31 HOUSE BILL 723 9 (a) Subject to the initial approval of the Secretary OR CHIEF PROCUREMENT 1 OFFICER, the appropriate purchasing unit for the following entities may use the services 2 of the Department to purchase SERVICES, materials, supplies, and equipment: 3 (1) a county; 4 (2) a municipality; 5 (3) a governmental unit in the State; 6 (4) a public or quasi–public agency that: 7 (i) receives State money; and 8 (ii) is exempt from taxation under § 501(c)(3) of the Internal Revenue 9 Code; 10 (5) a private elementary or secondary school that: 11 (i) either has been issued a certificate of approval from the State 12 Board of Education or is accredited by the Association of Independent Schools; and 13 (ii) is exempt from taxation under § 501(c)(3) of the Internal Revenue 14 Code; or 15 (6) a nonpublic institution of higher education as provided under § 17–106 16 of the Education Article. 17 (b) Notwithstanding subsection (a)(5) and (6) of this section, the Department may 18 not purchase religious materials on behalf of a private elementary or secondary school or a 19 nonpublic institution of higher education. 20 (c) The purchasing authority under this section is in addition to, and not a 21 substitution for, the purchasing power of an entity under another law. 22 13–101. 23 (a) In this subtitle the following words have the meanings indicated. 24 (b) “Designated procurement unit” means: 25 (1) [the Department of Budget and Management; 26 (2)] the Department of General Services; 27 [(3) the Department of Information Technology; or] 28 10 HOUSE BILL 723 [(4)] (2) the Department of Transportation; OR 1 (3) THE DEPARTMENT OF INFORMATION TECHNOLOGY , ONLY WITH 2 RESPECT TO AN INFORM ATION TECHNOLOGY MAS TER CONTRACT EXECUTE D 3 BEFORE JULY 1, 2022, UNTIL THE EARLIER OF : 4 (I) THE EXPIRATION DATE OF ALL INFORMATION T ECHNOLOGY 5 MASTER CONTRACTS ; OR 6 (II) JUNE 30, 2027. 7 (b) “Designated procurement unit” means: 8 (1) [the Department of Budget and Management; 9 (2)] the Department of General Services; 10 [(3) the Department of Information Technology; or] 11 [(4)] (2) the Department of Transportation; OR 12 (3) THE DEPARTMENT OF INFORMATION TECHNOLOGY , ONLY WITH 13 RESPECT TO AN INFORM ATION TECHNOLOGY MAS TER CONTRACT EXECUTE D BEFORE 14 JULY 1, 2022, UNTIL THE EARLIER OF : 15 (I) THE EXPIRATION DATE OF ALL INFORMATION T ECHNOLOGY 16 MASTER CONTRACTS ; OR 17 (II) JUNE 30, 2027. 18 (c) “eMaryland Marketplace” OR “EMARYLAND MARKETPLACE ADVANTAGE” 19 means the Internet–based procurement system managed by the Department of General 20 Services. 21 (d) “Evaluated bid price” means the price of a bid after adjustment in accordance 22 with objective measurable criteria. 23 (e) “Master contracting” means a streamlined procurement method that provides 24 for the qualification of bidders and offerors for the procurement of services, supplies, or 25 commodities. 26 (f) (1) “Objective measurable criteria” means standards that enable the State 27 to compare the economy, effectiveness, or value of the subject of the bids. 28 HOUSE BILL 723 11 (2) “Objective measurable criteria” includes standards of reliability, 1 operational costs, maintainability, useful life, and residual value. 2 (g) “Person” includes, unless the context requires otherwise: 3 (1) the State; 4 (2) a county, a municipal corporation, or any other political subdivision; 5 (3) any unit of the State government or a political subdivision. 6 (h) “Task order” means a procurement process in which only those vendors with 7 master contracts may compete to provide the services, supplies, or commodities under the 8 procurement. 9 (d) “Evaluated bid price” means the price of a bid after adjustment in accordance 10 with objective measurable criteria. 11 (e) “Master contracting” means a streamlined procurement method that provides 12 for the qualification of bidders and offerors for the procurement of services, supplies, or 13 commodities. 14 (f) (1) “Objective measurable criteria” means standards that enable the State 15 to compare the economy, effectiveness, or value of the subject of the bids. 16 (2) “Objective measurable criteria” includes standards of reliability, 17 operational costs, maintainability, useful life, and residual value. 18 (g) “Person” includes, unless the context requires otherwise: 19 (1) the State; 20 (2) a county, a municipal corporation, or any other political subdivision; 21 and 22 (3) any unit of the State government or a political subdivision. 23 (h) “Task order” means a procurement process in which only those vendors with 24 master contracts may compete to provide the services, supplies, or commodities under the 25 procurement. 26 13–102.1. 27 (a) A unit may not charge a fee to access eMaryland Marketplace. 28 (b) (1) Subject to approval by the Board of Public Works, the Chief 29 Procurement Officer may establish fees for the use of eMaryland Marketplace by an entity 30 12 HOUSE BILL 723 that publishes a notice of a procurement, conducts a procurement, or publishes a notice of 1 award. 2 (2) The Chief Procurement Officer may not charge a unit, as defined in § 3 11–101(y) of this article, a fee under this subsection. 4 (C) SUBJECT TO APPROVAL B Y THE BOARD OF PUBLIC WORKS, THE CHIEF 5 PROCUREMENT OFFICER, IN CONSULTATION WITH THE DEPARTMENT OF BUDGET 6 AND MANAGEMENT , MAY ESTABLISH FEES F OR: 7 (1) TRAINING; 8 (2) STRATEGIC SOURCING ; AND 9 (3) ADMINISTRATIVE COSTS . 10 [(c)] (D) (1) There is an [Electronic Transaction] OPERATIONS REVENUE 11 Fund in the Department of General Services. 12 (2) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 13 this article. 14 (3) The State Treasurer shall hold the Fund separately, and the 15 Comptroller shall account for the Fund. 16 (4) The Fund consists of any fees imposed and collected under [paragraph] 17 SUBSECTION (b)(1) OR (C) of this [subsection] SECTION and § 13–226(c) of this title. 18 (5) The Fund shall be used by the Department of General Services to cover 19 the actual documented direct and indirect [costs of administering contracts through the use 20 of electronic transactions] OPERATING EXPENSES O F THE OFFICE OF STATE 21 PROCUREMENT . 22 13–111. 23 (a) This section applies to the procurement of supplies[, with an estimated 24 contract value of $1,000,000 or more,] AND SERVICES by a primary procurement unit. 25 (b) (1) Whenever the head of a primary procurement unit or designee 26 determines that it is in the best interest of the State for a procurement contract to be based 27 on auction bids, a procurement officer shall seek bids by issuing an invitation for auction 28 bids. 29 (2) Subject to subsection (c) of this section, an invitation for auction bids 30 shall include: 31 HOUSE BILL 723 13 (i) the specifications of the procurement contract; 1 (ii) whether the procurement contract will be awarded based on the 2 lowest bid price or the lowest evaluated bid price; 3 (iii) if the procurement contract will be based on evaluated bid price, 4 the objective measurable criteria by which the lowest evaluated bid price will be 5 determined; 6 (iv) the small business preference, if designated under § 13–103 of 7 this subtitle; and 8 (v) the date and time when bidding will commence and the date and 9 time when bidding will end or the event upon which bidding will end. 10 (c) (1) In the discretion of the procurement officer, the invitation for auction 11 bids may: 12 (i) include a request for unpriced technical offers or samples; 13 (ii) direct bidders to submit price bids after the unit evaluates the 14 technical offers or samples and finds they are acceptable under the criteria set forth in the 15 invitation for auction bids; and 16 (iii) inform all bidders who submitted technical offers or samples of 17 the identity of each bidder who submitted an acceptable technical offer or sample. 18 (2) Price bids may not be received until after the unit has completed 19 evaluation of the technical offers or samples. 20 (3) A price bid may not be received at any time if the bid is submitted by a 21 bidder whose technical offer or sample has been evaluated as unacceptable to the unit. 22 (d) A unit shall give public notice of an invitation for auction bids in the same 23 manner as required for an invitation for bids. 24 (e) (1) (i) Multiple price bids are permitted in response to an invitation for 25 auction bids. 26 (ii) When a bidder submits multiple bids, each bid shall be judged 27 independently and shall not revoke previous bids of that bidder. 28 (2) A procurement officer shall: 29 (i) receive bids in public at the time and place designated in the 30 invitation for auction bids; and 31 14 HOUSE BILL 723 (ii) record [and post] the amount of each bid at the time it is received. 1 (3) (i) The amount of a price bid shall be available for public inspection 2 from the time it is received. 3 (ii) The identity of the bidder submitting a price bid shall not be 4 available for public inspection until bidding has ended. 5 (4) Except as provided in paragraph (5) of this subsection, a bid is 6 irrevocable, after receipt, for the period specified in the invitation for auction bids. 7 (5) A procurement officer may allow a bidder to correct or withdraw a bid 8 if correction or withdrawal is: 9 (i) allowed under regulations adopted under this Division II 10 applicable to an invitation for bids; and 11 (ii) approved in writing by the Office of the Attorney General. 12 (f) (1) After obtaining any approval required by law, the procurement officer 13 shall award the procurement contract to the responsible bidder who submits the responsive 14 bid that: 15 (i) is the lowest bid price; or 16 (ii) if the invitation for auction bids so provides, is the lowest 17 evaluated bid price. 18 (2) If, after bids have been received, a procurement officer determines that 19 only one responsible bidder has submitted a responsive bid, the unit may negotiate the 20 procurement contract with that one bidder under the procedure for sole source 21 procurement. 22 (3) (i) After bids have been received, a procurement officer may award 23 a procurement contract on the basis of revised bids if: 24 1. all bids are rejected under § 13–206(b) of this title; 25 2. all bid prices exceed the funds available for the 26 procurement; or 27 3. with the approval of the head of a primary procurement 28 unit or a designee, the procurement officer determines that all bids are unreasonable as to 29 at least one requirement and delay that would result from issuing a new invitation for 30 auction bids with revised specifications or quantities would be fiscally disadvantageous or 31 otherwise not in the best interests of the State. 32 HOUSE BILL 723 15 (ii) If there is more than one bidder, discussion about revised 1 specifications or quantities shall be conducted with all responsible bidders who submitted 2 responsive bids. The bidders shall be treated fairly and equally with respect to any 3 discussions. 4 (iii) If one of the conditions set forth under subparagraph (i) of this 5 paragraph exists, as promptly as possible, the procurement officer shall: 6 1. issue an invitation for revised auction bids, which shall 7 state whether the award will be made without competitive negotiations; and 8 2. requires a prompt response to that invitation. 9 (iv) An invitation for revised auction bids is not subject to the notice 10 requirements in subsection (d) of this section. 11 (v) After revised bids have been submitted, negotiations with 12 bidders may not be conducted unless the procurement officer determines that there is a 13 compelling reason to negotiate. 14 (vi) After revised bids have been received and any approval required 15 by law has been obtained, the procurement officer shall award the procurement contract to 16 the responsible bidder who submits a responsive bid that: 17 1. is the lowest bid price; or 18 2. if the invitation for revised bids so provides, is the lowest 19 evaluated bid price. 20 (g) Not more than 30 days after the execution and approval of a procurement 21 contract awarded under this section, a unit shall publish notice of the award in eMaryland 22 Marketplace. 23 13–226. 24 (a) Unless otherwise prohibited by law, a primary procurement unit may conduct 25 procurement, including the solicitation[, bidding] OF BIDS OR PROPOSALS , 26 EVALUATION , award, execution, and administration of a contract, by electronic means as 27 provided in the Uniform Electronic Transactions Act in Title 21 of the Commercial Law 28 Article. 29 (b) Bidding OR SUBMITTING A PROP OSAL on a procurement contract by 30 electronic means shall constitute consent by the bidder OR PROPOSER to conduct by 31 electronic means all elements of the procurement of that contract which the unit agrees to 32 conduct by electronic means. 33 16 HOUSE BILL 723 (c) (1) (i) Except as provided in paragraph (2) of the subsection, a unit 1 utilizing electronic means to conduct procurement or a private contractor furnishing to the 2 State electronic means for conducting procurement may charge a reasonable fee, [as 3 determined in consultation with] ON APPROVAL BY the Chief Procurement Officer, to the 4 bidder, PROPOSER, OR EACH CONTRACT AWARDEE for the use of the electronic means. 5 (ii) Any fees collected under subparagraph (i) of this paragraph shall 6 be deposited in the [Electronic Transaction] OPERATIONS REVENUE Fund established 7 under § 13–102.1(c) of this subtitle. 8 (2) Unless approved by the Board of Public Works, a fee may not be charged 9 under this subsection. 10 (d) The terms and conditions of a procurement conducted under this section shall 11 comply with the Uniform Electronic Transactions Act in Title 21 of the Commercial Law 12 Article. 13 14–102. 14 (a) Notwithstanding any other provision of this Division II, a State or State aided 15 or controlled entity shall buy supplies and services in accordance with § 14–103 of this 16 subtitle. 17 (b) The procurement of services from [a sheltered workshop] THE EMPLOYMENT 18 WORKS PROGRAM OR AN EMPLOYMENT WORKS PROGRAM VENDOR is not subject to 19 the cost savings requirements of § 13–405 of the State Personnel and Pensions Article. 20 14–106. 21 (a) In this section, “Committee” means the Pricing and Selection Committee for 22 [Blind Industries and Services of Maryland and the Employment Works Program ] 23 PREFERRED PROVIDERS. 24 (b) There is a Pricing and Selection Committee for [Blind Industries and Services 25 of Maryland and the Employment Works Program] PREFERRED PROVIDERS. 26 (c) The Committee consists of the following 5 members: 27 (1) the Secretary of Transportation or a designee; 28 (2) the Secretary of General Services or a designee; 29 (3) the Secretary of Public Safety and Correctional Services or a designee; 30 (4) the Assistant Secretary for Vocational Rehabilitation within the State 31 Department of Education or a designee; and 32 HOUSE BILL 723 17 (5) the Secretary of Labor or a designee. 1 (d) A member of the Committee: 2 (1) may not receive compensation; but 3 (2) is entitled to reimbursement for expenses under the Standard State 4 Travel Regulations as provided in the State budget. 5 (e) (1) Blind Industries and Services of Maryland shall provide staff for the 6 Committee. 7 (2) The staff provided in accordance with paragraph (1) of this subsection 8 shall: 9 (i) be a blind or a visually impaired associate of Blind Industries 10 and Services of Maryland; and 11 (ii) complete work related to the duties of the Committee regarding 12 Blind Industries and Services of Maryland under the supervision and direction of the 13 Committee. 14 (f) The Committee shall: 15 (1) ensure that supplies and services provided by Blind Industries and 16 Services of Maryland or [a] AN EMPLOYMENT WORKS PROGRAM community service 17 provider create work opportunities for individuals who have a mental or physical disability, 18 including blindness, for which Blind Industries and Services of Maryland or the 19 EMPLOYMENT WORKS PROGRAM community service provider was established to assist; 20 (2) set the prices of supplies and services that Blind Industries and 21 Services of Maryland provides to reflect the fair market prices for the supplies and services; 22 (3) REVIEW AND VERIFY TH E PREVAILING AVERAGE MARKET PRICES , 23 AS PROPOSED BY MARYLAND CORRECTIONAL ENTERPRISES: 24 (I) WHEN CHANGES ARE MAD E TO THE PRICING OF EXISTING 25 SUPPLIES AND SERVICE S THAT ARE AVAILABLE FROM MARYLAND CORRECTIONAL 26 ENTERPRISES; AND 27 (II) FOR NEW SUPPLIES OR SERVICES THAT MARYLAND 28 CORRECTIONAL ENTERPRISES INTENDS T O MAKE AVAILABLE ; 29 18 HOUSE BILL 723 [(3)] (4) establish procedures to govern procurement of supplies [and], 1 services, AND OTHER SALES from EMPLOYMENT WORKS PROGRAM community service 2 providers and individual with disability owned businesses; 3 [(4)] (5) from the State procurement list, choose appropriate supplies 4 [and], services, AND OTHER SALES for EMPLOYMENT WORKS PROGRAM community 5 service providers and individual with disability owned businesses to offer for procurement; 6 [(5)] (6) provide that the State procure those supplies [and], services, 7 AND OTHER SALES from [a] AN EMPLOYMENT WORKS PROGRAM community service 8 provider or an individual with disability owned business; 9 [(6)] (7) if supplies [or], services, OR OTHER SALES are not available for 10 procurement from a unit of the State GOVERNMENT , determine whether supplies [or], 11 services, OR OTHER SALES are available from [a] AN EMPLOYMENT WORKS PROGRAM 12 community service provider or an individual with disability owned business; 13 [(7)] (8) determine the fair market price of supplies [and], services, AND 14 OTHER SALES that EMPLOYMENT WORKS PROGRAM community service providers and 15 individual with disability owned businesses provide; 16 [(8)] (9) in accordance with market conditions, adjust prices for the 17 supplies [and], services, AND OTHER SALES that EMPLOYMENT WORKS PROGRAM 18 community service providers and individual with disability owned businesses provide; and 19 [(9)] (10) at the request of a community service provider or an individual 20 with disability owned business, review and, if appropriate, change the price of a supply or 21 service. 22 (g) In addition to the duties specified under subsection (f) of this section, the 23 committee shall: 24 (1) establish and periodically review eligibility policies or guidelines for 25 participating community service providers and individual with disability owned 26 businesses; 27 (2) maintain a current list of community service providers and individual 28 with disability owned businesses; 29 (3) periodically review and revise its list of community service providers 30 and individual with disability owned businesses; and 31 (4) send any revised list to the [Secretary of General Services] CHIEF 32 PROCUREMENT OFFICER who shall make the list available to each person responsible 33 for buying supplies or services for the State or a State aided or controlled entity. 34 HOUSE BILL 723 19 14–107. 1 The Pricing and Selection Committee for [Blind Industries and Services of Maryland 2 and the Employment Works Program] PREFERRED PROVIDERS shall: 3 (1) (i) maintain a current list of supplies and services that Blind 4 Industries and Services of Maryland provides; [and] 5 (ii) maintain a current list of supplies [and], services, AND OTHER 6 SALES that community service providers and individual with disability owned businesses 7 provide; AND 8 (III) MAINTAIN A CURRENT L IST OF SUPPLIES AND SERVICES 9 THAT MARYLAND CORRECTIONAL ENTERPRISES PROVIDES ; 10 (2) periodically review and revise the lists of supplies [and], services, AND 11 OTHER SALES maintained in accordance with item (1) of this section; and 12 (3) send the lists, and any revised lists, to the [Secretary of General 13 Services] CHIEF PROCUREMENT OFFICER who shall make the lists available to each 14 person responsible for buying supplies [or], services, OR OTHER SALES for the State or a 15 State aided or controlled entity. 16 14–405. 17 (a) (1) In this section the following words have the meanings indicated. 18 (2) “Environmentally preferable product or service” means a product or 19 service that throughout the full life cycle of the product or service: 20 (i) is energy efficient, water efficient, biobased, nonozone depleting, 21 made with recycled content, or nontoxic; or 22 (ii) has other attributes recognized as environmentally preferable by 23 the Maryland Green Purchasing Committee. 24 (b) (1) To encourage the maximum purchase of environmentally preferable 25 products and services, the Maryland Green purchasing Committee established under § 26 14–410 of this subtitle shall establish environmentally preferable specifications to be 27 adopted by State agencies. 28 (2) The environmentally preferable specifications shall be published and 29 maintained online by the Maryland Green Purchasing Committee for use by State agencies. 30 20 HOUSE BILL 723 (c) Each State unit shall review annually the procurement specifications 1 currently used by the unit and, to the extent practicable: 2 (1) adopt the environmentally preferable specifications published by the 3 Maryland Green Purchasing Committee; and 4 (2) revise the unit’s procurement specifications in accordance with § 5 14–410 of this subtitle. 6 (d) On or before [September] OCTOBER 1 of each year, each unit shall report to 7 the Department of General Services on the unit’s procurement of environmentally 8 preferable products and services as a percentage of the unit’s gross purchases during the 9 preceding fiscal year, including the types and quantities of products and services procured. 10 (e) (1) Except as provided in paragraph (2) of this subsection, this section is 11 broadly applicable to all procurements by the State if the quality of the product or service 12 is consistent with the requirements of the bid specifications. 13 (2) Only to the extent necessary to prevent the denial of federal money or 14 eliminate the inconsistency with federal law, this section does not apply to a procurement 15 by the State if the procurement officer determines that compliance with this section would: 16 (i) cause denial of federal money; or 17 (ii) be inconsistent with the requirements of federal law. 18 14–410. 19 (e) On or before [October 1] DECEMBER 31 of each year, the Committee shall 20 report to the General Assembly, in accordance with § 2–1257 of the State Government 21 Article, on the Committee’s activities and the progress made as a result of the 22 implementation of this section. 23 17–502. 24 (a) THIS SECTION DOES NOT APPLY TO EMERGENCY P ROCUREMENT UNDER 25 § 13–108 OF THIS DIVISION II. 26 (B) In addition to any other provision of law, the following persons shall use 27 eMaryland Marketplace to publish notice of a procurement [or] AND publish a notice of 28 award of a procurement that is at the same amount or exceeds the amount required by the 29 Board for a State contract to be published in eMaryland Marketplace: 30 (1) a unit of State government; 31 (2) a county; 32 HOUSE BILL 723 21 (3) a municipality; 1 (4) a bicounty or multicounty governmental agency; 2 (5) a special tax district, sanitary district, drainage district, soil 3 conservation district, and water supply district; 4 (6) a public institution of higher education; 5 (7) a public school; and 6 (8) except for the Maryland Health and Higher Educational Facilities 7 Authority, an entity exempt from the provisions of this Division II in accordance with § 8 11–203 of this article. 9 [(b)] (C) This section may not be construed to prohibit a person listed in 10 subsection [(a)] (B) of this section from publishing notice of a procurement or publishing a 11 notice of award in accordance with any other law or policy. 12 [(c)] (D) An unintentional violation of this section may not constitute grounds to 13 challenge or appeal: 14 (1) the award of a procurement; or 15 (2) the process through which a procurement was conducted. 16 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17 1, 2022. 18 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.