Maryland 2023 Regular Session

Maryland Senate Bill SB9 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0009
6	6
7	7	SENATE BILL 9
8	8	P4, P2 3lr0988
9	9	(PRE–FILED) CF 3lr0854
10	10	By: Senator Elfreth
11	11	Requested: November 20, 2022
12	12	Introduced and read first time: January 11, 2023
13	13	Assigned to: Budget and Taxation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	State Personnel – Executive Branch Service Contracts – Policy, Certification, 2
20	20	and Notification 3
21	21
22	22	FOR the purpose of altering State policy regarding the preference to use State employees 4
23	23	to perform State functions in State–operated facilities by repealing the requirement 5
24	24	that State employees perform the functions in State–operated facilities; authorizing 6
25	25	the Board of Public Works to approve certain service contracts if the Board receives 7
26	26	a certain certification; requiring the Department of Budget and Management to send 8
27	27	a copy of a certain certification to a certain exclusive representative; and generally 9
28	28	relating to service contracts in the Executive Branch. 10
29	29
30	30	BY repealing and reenacting, without amendments, 11
31	31	Article – State Finance and Procurement 12
32	32	Section 11–101(d), (u), and (y) and 13–218.1 13
33	33	Annotated Code of Maryland 14
34	34	(2021 Replacement Volume and 2022 Supplement) 15
35	35
36	36	BY repealing and reenacting, with amendments, 16
37	37	Article – State Personnel and Pensions 17
38	38	Section 13–401, 13–402, and 13–403 18
39	39	Annotated Code of Maryland 19
40	40	(2015 Replacement Volume and 2022 Supplement) 20
41	41
42	42	BY repealing and reenacting, without amendments, 21
43	43	Article – State Personnel and Pensions 22
44	44	Section 13–404 23
45	45	Annotated Code of Maryland 24
46	46	(2015 Replacement Volume and 2022 Supplement) 25
47	47	2 SENATE BILL 9
48	48
49	49
50	50	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
51	51	That the Laws of Maryland read as follows: 2
52	52
53	53	Article – State Finance and Procurement 3
54	54
55	55	11–101. 4
56	56
57	57	(d) “Board” means the Board of Public Works. 5
58	58
59	59	(u) (1) Except as provided in paragraph (3) of this subsection, “services” 6
60	60	means: 7
61	61
62	62	(i) the labor, time, or effort of a contractor; and 8
63	63
64	64	(ii) any product or report necessarily associated with the rendering 9
65	65	of a service. 10
66	66
67	67	(2) “Services” includes services provided by attorneys, accountants, 11
68	68	physicians, consultants, and other professionals who are independent contractors. 12
69	69
70	70	(3) “Services” does not include: 13
71	71
72	72	(i) construction related services; 14
73	73
74	74	(ii) architectural services; 15
75	75
76	76	(iii) engineering services; or 16
77	77
78	78	(iv) energy performance contract services. 17
79	79
80	80	(y) (1) “Unit” means an officer or other entity that is in the Executive Branch 18
81	81	of the State government and is authorized by law to enter into a procurement contract. 19
82	82
83	83	(2) “Unit” does not include: 20
84	84
85	85	(i) a bistate, multistate, bicounty, or multicounty governmental 21
86	86	agency; or 22
87	87
88	88	(ii) a special tax district, sanitary district, drainage district, soil 23
89	89	conservation district, water supply district, or other political subdivision of the State. 24
90	90
91	91	13–218.1. 25
92	92
93	93	(a) In this section, “service contract” has the meaning stated in § 13–401 of the 26
94	94	State Personnel and Pensions Article. 27
95	95	SENATE BILL 9 3
96	96
97	97
98	98	(b) (1) At least 60 days before the issuance of a solicitation for a service 1
99	99	contract that is not exempt under § 13–403(c) or § 13–404(b) of the State Personnel and 2
100	100	Pensions Article, the unit shall provide the exclusive representative of the employees who 3
101	101	may be affected by the service contract with: 4
102	102
103	103	(i) written notice of: 5
104	104
105	105	1. work that is being proposed for contracting; and 6
106	106
107	107	2. contracting procedures, requirements, timetables, and 7
108	108	employee rights as provided in Title 13, Subtitle 4 of the State Personnel and Pensions 8
109	109	Article; and 9
110	110
111	111	(ii) a reasonable opportunity to meet and discuss alternatives to the 10
112	112	proposed service contract. 11
113	113
114	114	(2) (i) 1. Except as provided in subsubparagraph 2 of this 12
115	115	subparagraph, this paragraph applies to a solicitation for a service contract for janitorial 13
116	116	services. 14
117	117
118	118	2. This paragraph does not apply to a service contract for 15
119	119	janitorial services under Title 14, Subtitle 1 of this article. 16
120	120
121	121	(ii) In consultation with the Department of General Services, the 17
122	122	Board shall adopt regulations concerning a solicitation for a service contract for janitorial 18
123	123	services to require that a bidder or offeror delineate its costs by category, including: 19
124	124
125	125	1. labor; 20
126	126
127	127	2. cleaning supplies; and 21
128	128
129	129	3. projected man–hours to satisfactorily complete the 22
130	130	service. 23
131	131
132	132	(c) A violation of this section does not constitute grounds to challenge or appeal 24
133	133	an award of a procurement or the process through which the procurement was conducted. 25
134	134
135	135	Article – State Personnel and Pensions 26
136	136
137	137	13–401. 27
138	138
139	139	(a) In this subtitle the following words have the meanings indicated. 28
140	140
141	141	(b) “Service contract” means a procurement contract for services that: 29
142	142
143	143	(1) will be provided to a unit in the Executive Branch of State government; 30
144	144	AND 31 4 SENATE BILL 9
145	145
146	146
147	147
148	148	(2) [will be performed within a State–operated facility; and 1
149	149
150	150	(3)] in the estimation of the procurement officer, will exceed an annual cost 2
151	151	of $100,000. 3
152	152
153	153	(c) “Services” has the meaning stated in § 11–101 of the State Finance and 4
154	154	Procurement Article. 5
155	155
156	156	(d) “Unit” has the meaning stated in § 11–101 of the State Finance and 6
157	157	Procurement Article. 7
158	158
159	159	13–402. 8
160	160
161	161	The policy of this State is to use State employees to perform all State functions [in 9
162	162	State–operated facilities] in preference to contracting with the private sector to perform 10
163	163	those functions. 11
164	164
165	165	13–403. 12
166	166
167	167	(a) A service contract may be entered into only as approved by the Board of Public 13
168	168	Works in accordance with this subtitle. 14
169	169
170	170	(b) (1) Except as provided in subsection (c) of this section, the Board of Public 15
171	171	Works may approve a service contract for a unit only if the Board receives a certification 16
172	172	from the Department that: 17
173	173
174	174	[(1)] (I) the service contract is exempt under § 13–404(b) of this subtitle; 18
175	175	or 19
176	176
177	177	[(2)] (II) the unit has complied with the requirements of: 20
178	178
179	179	1. § 13–404(c) of this subtitle; AND 21
180	180
181	181	2. § 13–218.1(B) OF THE STATE FINANCE AND 22
182	182	PROCUREMENT ARTICLE. 23
183	183
184	184	(2) IF A SERVICE CONTRACT IS CERT IFIED UNDER § 13–404(C) OF 24
185	185	THIS SUBTITLE, THE DEPARTMENT SHALL SEND A COPY OF THE CERTIF ICATION 25
186	186	REQUIRED UNDER PARAG RAPH (1) OF THIS SUBSECTION T O THE EXCLUSIVE 26
187	187	REPRESENTATIVE OF TH E AFFECTED EMPLOYEES . 27
188	188
189	189	(c) If the General Assembly authorizes or requires that certain services be 28
190	190	performed by an independent contractor, the Board of Public Works may approve a service 29 SENATE BILL 9 5
191	191
192	192
193	193	contract for those services without the certification required by subsection (b) of this 1
194	194	section. 2
195	195
196	196	13–404. 3
197	197
198	198	(a) The Department may certify a service contract to the Board of Public Works 4
199	199	as provided in this section. 5
200	200
201	201	(b) The Department may certify a service contract as being exempt from the 6
202	202	preference stated in § 13–402 of this subtitle if: 7
203	203
204	204	(1) State employees are not available to perform the services; 8
205	205
206	206	(2) a conflict of interest would result if a State employee were to perform 9
207	207	the services; 10
208	208
209	209	(3) the nature of the services meets the standards set by the Department 11
210	210	for emergency appointments; 12
211	211
212	212	(4) the services are incidental to the purchase or lease of personal property 13
213	213	or real property, such as a service agreement that is part of the purchase or rental of 14
214	214	computers or office equipment; or 15
215	215
216	216	(5) a clear need exists to obtain an unbiased finding or opinion, such as an 16
217	217	expert witness in litigation. 17
218	218
219	219	(c) The Department may certify a service contract that is not exempt under 18
220	220	subsection (b) of this section only if: 19
221	221
222	222	(1) the unit that seeks to enter into the service contract has complied with 20
223	223	§ 13–405 of this subtitle; and 21
224	224
225	225	(2) the Department finds that: 22
226	226
227	227	(i) the potential economic advantage of entering into the service 23
228	228	contract is not outweighed by the preference stated in § 13–402 of this subtitle; 24
229	229
230	230	(ii) the service contract does not adversely affect the affirmative 25
231	231	action efforts of this State; 26
232	232
233	233	(iii) the service contract includes adequate control mechanisms to 27
234	234	ensure that the services will be performed in accordance with the service contract; and 28
235	235
236	236	(iv) the service contract complies with all of the requirements of 29
237	237	Division II of the State Finance and Procurement Article. 30
238	238	6 SENATE BILL 9
239	239
240	240
241	241	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
242	242	1, 2023. 2
243	243