WES MOORE, Governor Ch. 23
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Chapter 23
(House Bill 709)
AN ACT concerning
21st Century Financial Systems Council – Establishment
Modernization of State Financial Systems – 21st Century Financial Systems
Enterprise
FOR the purpose of establishing the 21st Century Financial Systems Council to modernize
the financial management information systems infrastructure in the State;
specifying the responsibilities and priorities of the Council; establishing the position
of the 21st Century Financial Systems Director in the Office of the Comptroller; and
generally relating to the 21st Century Financial Systems Council requiring the
Office of the Comptroller, the Office of the State Treasurer, the Department of
Budget and Management, the Department of Information Technology, and the
Department of General Services, in consultation with a representative of the
Modernize Maryland Oversight Commission, to develop, implement, manage, and
oversee the 21st Century Financial Systems Enterprise; and generally relating to
the modernization of State financial systems and the 21st Century Financial
Systems Enterprise.
BY adding to
Article – State Government
Section 4–113
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
Preamble
WHEREAS, Substantial risk and waste are generated from the continued use of the
State’s existing accounting and payments platform, the Financial Management and
Information System (FMIS), due to limited development resources, cybersecurity risks, and
difficulties delivering functional enhancements to meet evolving end–user needs and
legislative mandates; and
WHEREAS, The State must consider how future systems will integrate across the
State’s broader ecosystem and understand that there is substantial risk if key finance
functions remain fractured in multiple systems; and
WHEREAS, The State’s financial systems and applications are operated and
maintained by different departments, which contributes to a complex information
technology ecosystem and governance challenges; and
WHEREAS, The Office of the Comptroller, as the chief financial officer of the State,
should lead the effort to consolidate and modernize the financial systems under a single Ch. 23 2023 LAWS OF MARYLAND
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21st Century Financial Systems Enterprise that shall become the State’s financial system
of record; and
WHEREAS, The Office of the Comptroller should partner with the Office of the State
Treasurer, the Department of Budget and Management, the Department of Information
Technology, and the Department of General Services to consolidate and modernize the
financial systems under a single 21st Century Financial Systems Enterprise; and
WHEREAS, Because the Modernize Maryland Oversight Commission is responsible
for a substantial amount of the State’s information technology and cybersecurity
collaboration, input and participation by that body and the constituent agencies it supports
will be essential to the creation of the 21st Century Financial Systems Enterprise; and
WHEREAS, Because the State has multiple information technology modernization
initiatives currently underway that may impact the implementation of a new financial
management and payroll system, a coordinated strategy and strong legislative directive is
required to minimize additional information technology complexities, technical debt,
process inefficiency, and overall cost; now, therefore,
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Government
4–113.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “COUNCIL” MEANS THE 21ST CENTURY FINANCIAL SYSTEMS
COUNCIL.
(3) “DIRECTOR” MEANS THE 21ST CENTURY FINANCIAL SYSTEMS
DIRECTOR.
(4) “ENTERPRISE” MEANS THE 21ST CENTURY FINANCIAL SYSTEMS
ENTERPRISE.
(B) THERE IS A 21ST CENTURY FINANCIAL SYSTEMS COUNCIL.
(C) THE COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS :
(1) THE COMPTROLLER , OR THE COMPTROLLER ’S DESIGNEE;
WES MOORE, Governor Ch. 23
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(2) THE STATE TREASURER, OR THE TREASURER’S DESIGNEE;
(3) THE SECRETARY OF BUDGET AND MANAGEMENT , OR THE
SECRETARY’S DESIGNEE;
(4) THE SECRETARY OF INFORMATION TECHNOLOGY , OR THE
SECRETARY’S DESIGNEE; AND
(5) THE SECRETARY OF GENERAL SERVICES, OR THE SECRETARY’S
DESIGNEE.
(D) (1) THE PRESIDENT OF THE SENATE MAY APPOINT ON E MEMBER OF
THE SENATE TO SERVE IN AN ADVISORY CAPACITY ON THE COUNCIL.
(2) THE SPEAKER OF THE HOUSE MAY APPOINT ONE MEMBER OF THE
HOUSE OF DELEGATES TO SERVE IN AN ADVISORY CAPACITY ON THE COUNCIL.
(E) THE COMPTROLLER , OR THE COMPTROLLER ’S DESIGNEE, SHALL
CHAIR THE COUNCIL.
(F) THE OFFICE OF THE COMPTROLLER SHALL PRO VIDE STAFF FOR THE
COUNCIL.
(G) A MEMBER OF THE COUNCIL:
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE
COUNCIL; BUT
(2) IS ENTITLED TO REIMBURSEMENT FOR EX PENSES UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET .
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “DEPARTMENTS ” MEANS:
(I) THE OFFICE OF THE COMPTROLLER ;
(II) THE OFFICE OF THE STATE TREASURER;
(III) THE DEPARTMENT OF BUDGET AND MANAGEMENT ;
(IV) THE DEPARTMENT OF INFORMATION TECHNOLOGY ; AND Ch. 23 2023 LAWS OF MARYLAND
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(V) THE DEPARTMENT OF GENERAL SERVICES.
(3) “FINANCIAL MANAGEMENT INFRASTRUCTURE ” MEANS THE
INFORMATION TECHNOLOGY INFRASTRU CTURE THAT IS USED T O MAINTAIN THE
GENERAL LEDGER AND A CCOUNTANCY FOR THE STATE, INCLUDING SUBLEDGER
FUNCTIONS THAT ENABL E THE MANAGEMENT OF ALL PAYMENTS AND FUN D
TRANSFERS THROUGHOUT THE STATE.
(4) “21ST CENTURY FINANCIAL SYSTEMS ENTERPRISE” MEANS A
MODERN CLOUD –BASED INFORMATION TE CHNOLOGY INFRASTRUCT URE.
(H) (B) THE COUNCIL IN CONSULTATION WITH A DESIGNATED
REPRESENTATIVE FROM THE MODERNIZE MARYLAND OVERSIGHT COMMISSION,
THE DEPARTMENTS SHALL:
(1) SET POLICIES , OBJECTIVES, AND PRIORITIES FOR TH E
TRANSFORMATION OF TH E STATE’S FINANCIAL MANAGEMENT INFORMATION
SYSTEMS INFRASTRUCTU RE INTO THE 21ST CENTURY FINANCIAL SYSTEMS
ENTERPRISE;
(2) LEARN THE NEEDS AND PRIORITIES OF ALL US ERS OF THE
FINANCIAL MANAGEMENT INFORMATION SYSTEMS AND FUTURE KNOWN USE RS OF
THE 21ST CENTURY FINANCIAL SYSTEMS ENTERPRISE;
(3) COLLABORATE WITH CON SULTANTS TO CREATE A PROJECT
PROPOSAL FOR , AND OVERSEE IMPLEMEN TATION OF, THE 21ST CENTURY
FINANCIAL SYSTEMS ENTERPRISE;
(4) OVERSEE, COORDINATE , AND AUTHORIZE THE AS SIGNMENT OF
RESOURCES TO FOR THE DEVELOPMENT OF THE 21ST CENTURY FINANCIAL
SYSTEMS ENTERPRISE;
(5) ESTABLISH WORKING GR OUPS AS NEEDED ; AND
(6) RECOMMEND ANY LEGISLAT IVE CHANGES CONSIDER ED
NECESSARY BY THE COUNCIL DEPARTMENTS TO ADDRESS FINANCIAL
MANAGEMENT INFORMATI ON SYSTEMS ISSUES .
(I) (C) THE COUNCIL IN CONSULTATION WITH A DESIGNATED
REPRESENTATIVE FROM THE MODERNIZE MARYLAND OVERSIGHT COMMISSION,
THE DEPARTMENTS SHALL SET PRIORITIES TO: WES MOORE, Governor Ch. 23
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(1) STANDARDIZE FINANCIA L MANAGEMENT FOR ALL STATE
AGENCIES BY REQUIRIN G ALL STATE AGENCIES TO PAR TICIPATE IN THE 21ST
CENTURY FINANCIAL SYSTEMS ENTERPRISE;
(2) PROVIDE SUPPORT TO P ARTICIPATING UNI TS IN ACCORDANCE
WITH THE POLICIES AN D OBJECTIVES ESTABLI SHED BY THE COUNCIL
DEPARTMENTS ;
(3) CONFORM TO MODERNIZE D BUSINESS AND TECHN OLOGY
STANDARDS; AND
(4) HOST AND MANAGE MODE RNIZED APPLICATIONS AND SHARED
DATA FOR THE DELIVER Y OF ALL ACCOUNTING SERVICES IN THE STATE.;
(J) (1) THERE IS A 21ST CENTURY FINANCIAL SYSTEMS DIRECTOR IN
THE OFFICE OF THE COMPTROLLER .
(2) THE DIRECTOR SHALL BE APP OINTED BY AND SERVE AT THE
PLEASURE OF THE COMPTROLLER .
(3) THE DIRECTOR SHALL BE PAR T OF THE STAFF OF THE OFFICE OF
THE COMPTROLLER FOR ADMIN ISTRATIVE, STAFFING, AND BUDGETARY PURPOS ES.
(4) THE DIRECTOR SHALL :
(I) (5) USE AND MANAGE THE 21ST CENTURY FINANCIAL
SYSTEMS ENTERPRISE TO ACHIEVE THE GOALS AND OBJECT IVES SET BY THE
COUNCIL DEPARTMENTS ;
(II) (6) FACILITATE AND COORD INATE THE DELIVERY O F
PORTFOLIO PRODUCTS A ND SERVICES;
(III) (7) ENSURE THE FAITHFUL EXECUTION OF ALL
AGREEMENTS ENTERED I NTO ON BEHALF OF THE COUNCIL DEPARTMENTS ; AND
(IV) (8) OVERSEE AND BE RESPO NSIBLE FOR THE OVERS IGHT,
IMPLEMENTATION , AND MANAGEMENT OF TH E 21ST CENTURY FINANCIAL SYSTEMS
ENTERPRISE.
(D) THE OFFICE OF THE COMPTROLLER , IN ACCORDANCE WITH § 2–1257
OF THIS ARTICLE, SHALL REPORT TO THE GENERAL ASSEMBLY ON THE STA TUS OF
THE DEVELOPMENT OF T HE 21ST CENTURY FINANCIAL SYSTEMS ENTERPRISE Ch. 23 2023 LAWS OF MARYLAND
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BEGINNING ON OR BEFO RE DECEMBER 31, 2023, AND EVERY 6 MONTHS
THEREAFTER , ENDING WITH THE FINA L REPORT DUE ON OR B EFORE JANUARY 1,
2027.
SECTION 2. AND BE IT FURTHER ENACTED, That thi s Act shall take effect
October July 1, 2023.
Approved by the Governor, April 11, 2023.