EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1271*
HOUSE BILL 1271
S1, P2, K3 4lr2598
CF SB 818
By: Delegates J. Lewis, Hill, and Kaiser
Introduced and read first time: February 8, 2024
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Information Technology – Artificial Intelligence – Policies and Procedures 2
(Artificial Intelligence Governance Act of 2024) 3
FOR the purpose of requiring each unit of State government to conduct a certain annual 4
data inventory, a certain annual inventory of systems that employ artificial 5
intelligence, and a certain impact assessment on or before a certain date; requiring 6
the Department of Information Technology to conduct ongoing monitoring of certain 7
systems under certain circumstances; requiring the Department of Information 8
Technology to adopt policies and procedures concerning the development, 9
procurement, implementation, use, and assessment of systems that employ artificial 10
intelligence by units of State government; prohibiting a unit of State government 11
from implementing or using a system that employs artificial intelligence under 12
certain circumstances beginning on a certain date; establishing the Governor’s 13
Artificial Intelligence Subcabinet of the Governor’s Executive Council; establishing 14
competitive proof of concept procurement as a formal competitive procurement 15
method for the procurement of certain products and services; exempting certain 16
competitive proof of concept procurements from oversight by the Board of Public 17
Works; requiring the Department of General Services, in consultation with the 18
Department of Information Technology, to develop certain policies and procedures 19
for the development and implementation of competitive proof of concept 20
procurements; and generally relating to the use of artificial intelligence by units of 21
State government. 22
BY repealing and reenacting, without amendments, 23
Article – State Finance and Procurement 24
Section 3.5–101(a), (c), (d), and (f) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2023 Supplement) 27
BY repealing and reenacting, with amendments, 28
Article – State Finance and Procurement 29 2 HOUSE BILL 1271
Section 3.5–301, 3.5–303(a), and 12–101 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2023 Supplement) 3
BY adding to 4
Article – State Finance and Procurement 5
Section 3.5–318; 3.5–801 through 3.5–805 to be under the new subtitle “Subtitle 8. 6
Artificial Intelligence”; and 13–116 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2023 Supplement) 9
Preamble 10
WHEREAS, Artificial intelligence is transforming society and work, and the pace of 11
that change will present new opportunities and risks for the State’s residents, workers, and 12
economy; and 13
WHEREAS, The State must ensure the re sponsible, ethical, beneficial, and 14
trustworthy use of artificial intelligence in State government; and 15
WHEREAS, The State is home to a rich and growing artificial intelligence ecosystem 16
of academic, industry, government, and civil society experts, researchers, builders, 17
organizers, and stakeholders; and 18
WHEREAS, To foster an environment for innovation while respecting individuals, 19
employees, and civil rights, as artificial intelligence technologies are developed and evolve, 20
the technologies should be analyzed and monitored by government officials, industry 21
experts, consumer protection advocates, and other stakeholders; and 22
WHEREAS, Given the rapid rate of change in artificial intelligence technologies and 23
industry, the State must chart a principled yet adaptable, pragmatic path forward, so that 24
the technologies’ benefits can be confidently harnessed on behalf of Marylanders and in 25
service of the Governor’s mission to Leave No One Behind; and 26
WHEREAS, Leaders across State government share a common in terest in 27
establishing effective artificial intelligence governance and are committed to working 28
together to develop the legal and policy framework for its responsible use in the State; and 29
WHEREAS, Automated systems should be safe and effective, develop ed with 30
consultation from diverse communities, stakeholders, and domain experts to identify 31
concerns, risks, and potential impacts of the systems; and 32
WHEREAS, Designers, developers, and deployers of automated systems should take 33
proactive and continuous measures to protect individuals and communities from 34
algorithmic discrimination and to use and design systems in an equitable way; and 35
HOUSE BILL 1271 3
WHEREAS, Designers, developers, and deployers of automated systems should seek 1
permission and respect decisions regarding collection, use, access, transfer, and deletion of 2
data in appropriate ways and to the greatest extent possible; where not possible, alternative 3
privacy by design safeguards should be used; and 4
WHEREAS, Designers, developers, and deployers of automated systems should 5
provide generally accessible plain language documentation including clear descriptions of 6
the overall system functioning and the role automation plays, notice that such systems are 7
in use, the individual or organization responsible for the system, and explanations of 8
outcomes that are clear, timely, and accessible; and 9
WHEREAS, Designers, developers, and deployers of automated systems should 10
consider the specific types of actions for which a human alternative is appropriate, 11
commensurate with the magnitude of the action and risk of harm, along with the extent to 12
which a human alternative would be beneficial to individuals and the public interest; now, 13
therefore, 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – State Finance and Procurement 17
3.5–101. 18
(a) In this title the following words have the meanings indicated. 19
(c) “Department” means the Department of Information Technology. 20
(d) “Secretary” means the Secretary of Information Technology. 21
(f) “Unit of State government” means an agency or unit of the Executive Branch 22
of State government. 23
3.5–301. 24
(a) In this subtitle the following words have the meanings indicated. 25
(B) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANI NG STATED IN § 3.5–801 26
OF THIS TITLE. 27
[(b)] (C) “Cybersecurity” means processes or capabilities wherein systems, 28
communications, and information are protected and defended against damage, 29
unauthorized use or modification, and exploitation. 30
[(c)] (D) “Cybersecurity strategy” means a vision, a plan of action, or guiding 31
principles. 32
4 HOUSE BILL 1271
[(d)] (E) (1) “Development” means all expenditures for a new information 1
technology system or an enhancement to an existing system including system: 2
(i) planning; 3
(ii) creation; 4
(iii) installation; 5
(iv) testing; and 6
(v) initial training. 7
(2) “Development” does not include: 8
(i) ongoing operating costs, software or hardware maintenance, 9
routine upgrades, or modifications that merely allow for a continuation of the existing level 10
of functionality; or 11
(ii) expenditures made after a new or enhanced system has been 12
legally accepted by the user and is being used for the business process for which it was 13
intended. 14
[(e)] (F) “Fund” means the Major Information Technology Development Project 15
Fund. 16
[(f)] (G) “Information technology” means all electronic information processing, 17
including: 18
(1) maintenance; 19
(2) telecommunications; 20
(3) hardware; 21
(4) software; and 22
(5) associated services. 23
[(g)] (H) “Information technology services” means information provided by 24
electronic means by or on behalf of a unit of State government. 25
[(h)] (I) “Major information technology development project” means any 26
information technology development project that meets one or more of the following 27
criteria: 28
(1) the estimated total cost of development equals or exceeds $1,000,000; 29 HOUSE BILL 1271 5
(2) the project is undertaken to support a critical business function 1
associated with the public health, education, safety, or financial well–being of the citizens 2
of Maryland; or 3
(3) the Secretary determines that the project requires the special attention 4
and consideration given to a major information technology development project due to: 5
(i) the significance of the project’s potential benefits or risks; 6
(ii) the impact of the project on the public or local governments; 7
(iii) the public visibility of the project; or 8
(iv) other reasons as determined by the Secretary. 9
[(i)] (J) “Master plan” means the statewide information technology master plan 10
and statewide cybersecurity strategy. 11
[(j)] (K) “Nonvisual access” means the ability, through keyboard control, 12
synthesized speech, Braille, or other methods not requiring sight to receive, use, and 13
manipulate information and operate controls necessary to access information technology in 14
accordance with standards adopted under § 3.5–303(b) of this subtitle. 15
[(k)] (L) “Resource sharing” means the utilization of a State resource by private 16
industry in exchange for the provision to the State of a communication service or other 17
consideration. 18
[(l)] (M) “Systems development life cycle plan” means a plan that defines all 19
actions, functions, or activities to be performed by a unit of State government in the 20
definition, planning, acquisition, development, testing, implementation, operation, 21
enhancement, and modification of information technology systems. 22
3.5–303. 23
(a) The Secretary is responsible for carrying out the following duties: 24
(1) developing, maintaining, revising, and enforcing information 25
technology policies, procedures, and standards; 26
(2) providing technical assistance, advice, and recommendations to the 27
Governor and any unit of State government concerning information technology matters; 28
(3) reviewing the annual project plan for each unit of State government to 29
make information and services available to the public over the Internet; 30
6 HOUSE BILL 1271
(4) developing and maintaining a statewide information technology master 1
plan that will: 2
(i) centralize the management and direction of information 3
technology policy within the Executive Branch of State government under the control of the 4
Department; 5
(ii) include all aspects of State information technology including 6
telecommunications, security, data processing, and information management; 7
(iii) consider interstate transfers as a result of federal legislation and 8
regulation; 9
(iv) ensure that the State information technology plan and related 10
policies and standards are consistent with State goals, objectives, and resources, and 11
represent a long–range vision for using information technology to improve the overall 12
effectiveness of State government; 13
(v) include standards to assure nonvisual access to the information 14
and services made available to the public over the Internet; and 15
(vi) allows a State agency to maintain the agency’s own information 16
technology unit that provides for information technology services to support the mission of 17
the agency; 18
(5) developing and maintaining a statewide cybersecurity strategy that 19
will: 20
(i) centralize the management and direction of cybersecurity 21
strategy within the Executive Branch of State government under the control of the 22
Department; and 23
(ii) serve as the basis for budget allocations for cybersecurity 24
preparedness for the Executive Branch of State government; 25
(6) adopting by regulation and enforcing nonvisual access standards to be 26
used in the procurement of information technology services by or on behalf of units of State 27
government in accordance with subsection (c) of this section; 28
(7) in consultation with the Maryland Cybersecurity Coordinating Council, 29
advising and overseeing a consistent cybersecurity strategy for units of State government, 30
including institutions under the control of the governing boards of the public institutions 31
of higher education; 32
(8) advising and consulting with the Legislative and Judicial branches of 33
State government regarding a cybersecurity strategy; 34
HOUSE BILL 1271 7
(9) in consultation with the Maryland Cybersecurity Coordinating Council, 1
developing guidance on consistent cybersecurity strategies for counties, municipal 2
corporations, school systems, and all other political subdivisions of the State; 3
(10) upgrading information technology and cybersecurity–related State 4
government infrastructure; [and] 5
(11) annually evaluating: 6
(i) the feasibility of units of State government providing public 7
services using artificial intelligence, machine learning, commercial cloud computer 8
services, device–as–a–service procurement models, and other emerging technologies; and 9
(ii) the development of data analytics capabilities to enable 10
data–driven policymaking by units of State government; AND 11
(12) CONDUCTING INVENTORI ES AND ONGOING ASSES SMENTS OF 12
SYSTEMS THAT EMPLOY ARTIFICIAL INTELLIGENC E THAT ARE USED BY A UNIT OF 13
STATE GOVERNMENT AS R EQUIRED UNDER § 3.5–318 OF THIS SUBTITLE . 14
3.5–318. 15
(A) ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAF TER, 16
EACH UNIT OF STATE GOVERNMENT SHAL L CONDUCT A DATA INV ENTORY THAT 17
IDENTIFIES DATA THAT MEETS THE CRITERIA ESTABLI SHED BY THE CHIEF DATA 18
OFFICER AND THAT IS : 19
(1) (I) NECESSARY FOR THE OP ERATION OF THE UNIT ; OR 20
(II) OTHERWISE REQUIRED T O BE COLLECTED : 21
1. AS A CONDITION TO RE CEIVE FEDERAL FUNDS ; OR 22
2. BY FEDERAL OR STATE LAW; AND 23
(2) IN A FORM PRESCRIBED BY THE CHIEF DATA OFFICER, 24
INCLUDING WHEN THE D ATA IS USED IN ARTIF ICIAL INTELLIGENCE . 25
(B) THE DEPARTMENT SHALL DEVE LOP AND PUBLISH GUID ANCE ON THE 26
POLICIES AND PROCEDU RES FOR THE INVENTOR Y. 27
SUBTITLE 8. ARTIFICIAL INTELLIGENCE . 28
3.5–801. 29 8 HOUSE BILL 1271
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(B) (1) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 3
PROCESS THAT FACILIT ATES DECISION MAKING . 4
(2) “ALGORITHMIC DECISION SYSTEM” INCLUDES DECISIONS 5
DERIVED FROM MACHINE S, STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON 6
PAPER. 7
(C) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM THAT : 8
(1) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES , MAKE 9
PREDICTIONS, RECOMMENDATIONS , OR DECISIONS INFLUENCING RE AL OR VIRTUAL 10
ENVIRONMENTS ; 11
(2) USES MACHINE AND HUM AN–BASED INPUTS TO PERC EIVE REAL 12
AND VIRTUAL ENVIRONM ENTS AND ABSTRACTS T HOSE PERCEPTIONS INT O MODELS 13
THROUGH ANALYSIS IN AN AUTOMATED MANNER ; AND 14
(3) USES MODEL INFERENCE TO FORMULATE OPTIONS FO R 15
INFORMATION OR ACTIO N. 16
(D) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 17
(1) RESULT IN ANY UNLAWF UL DISCRIMINATION ; 18
(2) HAVE AN UNLAWFUL DIS PARATE IMPACT ON ANY INDIVIDUAL OR 19
GROUP OF INDIVIDUALS ON THE BASIS OF ANY ACTUAL OR PE RCEIVED 20
CHARACTERISTIC ; OR 21
(3) HAVE A NEGATIVE IMPA CT ON THE HEALTH , SAFETY, OR 22
WELL–BEING OF AN INDIVIDU AL. 23
(E) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 24
EVALUATION OF A SYST EM THAT EMPLOYS ARTI FICIAL INTELLIGENCE . 25
3.5–802. 26
(A) ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAF TER, 27
EACH UNIT OF STATE GOVERNMENT SHAL L CONDUCT AN INVENTO RY OF SYSTEMS 28
THAT EMPLOY ARTIFICI AL INTELLIGENCE . 29 HOUSE BILL 1271 9
(B) FOR EACH SYSTEM , THE INVENTORY REQUIR ED BY THIS SECTION S HALL 1
INCLUDE: 2
(1) THE NAME OF THE S YSTEM; 3
(2) THE VENDOR THAT PROV IDED THE SYSTEM , IF APPLICABLE; 4
(3) A DESCRIPTION OF THE CAPABILITIES OF THE SYSTEM; 5
(4) A STATEMENT OF THE P URPOSE AND THE INTEN DED USES OF THE 6
SYSTEM; 7
(5) WHETHER THE SYSTEM U NDERWENT AN IMPACT A SSESSMENT 8
PRIOR TO BEING IMPLEMENTED ; 9
(6) WHETHER THE SYSTEM I S USED TO INDEPENDEN TLY MAKE A 10
DECISION OR JUDGMENT OR TO INFORM OR SUPP ORT A DECISION OR JU DGMENT 11
DETERMINED BY THE DEPARTMENT TO INVOLVE A HIGH–RISK ACTION; AND 12
(7) A DETERMINATION OF T HE RISK THAT USE OF A SYSTEM MAY BE 13
HIGH–RISK. 14
(C) THE DEPARTMENT SHALL MAKE EACH INVENTORY REQUI RED BY THIS 15
SECTION PUBLICLY AVA ILABLE ON ITS WEBSIT E. 16
(D) ON OR BEFORE FEBRUARY 1, 2025, EACH UNIT OF STATE GOVERNMENT 17
SHALL CONDUCT AN IMP ACT ASSESSMENT OF A SYSTEM THA T INVOLVES A 18
HIGH–RISK ACTION. 19
3.5–803. 20
(A) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT SHALL ADOP T 21
POLICIES AND PROCEDU RES CONCERNING THE D EVELOPMENT , PROCUREMENT , 22
IMPLEMENTATION , USE, AND ONGOING ASSESSME NT OF SYSTEMS THAT E MPLOY 23
ARTIFICIAL INTELLIGENCE BY A UN IT OF STATE GOVERNMENT . 24
(B) THE POLICIES AND PROC EDURES REQUIRED BY T HIS SECTION SHALL : 25
(1) SUBJECT TO ANY OTHER APPLICABLE LAW , GOVERN THE 26
PROCUREMENT , IMPLEMENTATION , AND ONGOING ASSESSME NT OF SYSTEMS THAT 27
EMPLOY ARTIFICIAL IN TELLIGENCE BY A UNIT OF STATE GOVERNMENT ; 28
10 HOUSE BILL 1271
(2) BE SUFFICIENT TO ENS URE THAT THE USE OF ANY SYSTEM THAT 1
EMPLOYS ARTIFICIAL I NTELLIGENCE BY ANY U NIT OF STATE GOVERNMENT IS N OT 2
HIGH–RISK; 3
(3) REQUIRE EACH UNIT OF STATE GOVERNMENT TO A SSESS THE 4
LIKELY IMPACT OF ANY SYSTEM THAT E MPLOYS ARTIFICIAL IN TELLIGENCE BEFORE 5
IMPLEMENTING THE SYS TEM; 6
(4) REQUIRE THE DEPARTMENT TO : 7
(I) NOTIFY AN INDIVIDUAL OR A GROUP OF INDIVI DUALS 8
DETERMINED TO HAVE B EEN NEGATIVELY IMPAC TED BY A SYSTEM THAT EMPLOYS 9
ARTIFICIAL INTELLIGENCE; AND 10
(II) PROVIDE GUIDANCE TO AN INDIVIDUAL OR A G ROUP OF 11
INDIVIDUALS DETERMIN ED TO HAVE BEEN NEGA TIVELY IMPACTED BY A SYSTEM 12
THAT EMPLOYS ARTIFIC IAL INTELLIGENCE ON AVAILABLE OPTIONS TO OPT OUT OF 13
THE SYSTEM; AND 14
(5) PROVIDE GUIDANCE TO UNITS OF STATE GOVERNMENT ON 15
PROCUREMENT OF A SYS TEM THAT EMPLOYS ART IFICIAL INTELLIGENCE THAT 16
ENSURES DATA PRIVACY AND COMPLIANCE WITH APPLICABLE STATUTES AND 17
REGULATIONS . 18
(C) THE DEPARTMENT SHALL MAKE THE POLICIES AND PRO CEDURES 19
REQUIRED BY THIS SEC TION PUBLICLY AVAILABLE ON ITS WEBSITE. 20
3.5–804. 21
BEGINNING JULY 1, 2025, A UNIT OF STATE GOVERNMENT MAY NOT PROCURE 22
OR IMPLEMENT A SYSTE M THAT EMPLOYS ARTIF ICIAL INTELLIGENCE U NLESS THE 23
SYSTEM COMPLIES WITH THE POLICIES AND PRO CEDURES ADOPTED UNDE R § 24
3.5–803 OF THIS SUBTITLE . 25
3.5–805. 26
(A) THERE IS A GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET OF 27
THE GOVERNOR’S EXECUTIVE COUNCIL. 28
(B) THE PURPOSE OF THE SUBCABINET IS TO FACI LITATE AND ENHANCE 29
COOPERATION AMONG UN ITS OF STATE GOVERNMENT , IN CONSULTATION WITH 30
ACADEMIC INSTITUTION S AND INDUSTRIES UTI LIZING ARTIFICIAL IN TELLIGENCE. 31
HOUSE BILL 1271 11
(C) THE SUBCABINET CONSISTS O F THE FOLLOWING MEMB ERS: 1
(1) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 2
(2) THE SECRETARY OF BUDGET AND MANAGEMENT , OR THE 3
SECRETARY’S DESIGNEE; 4
(3) THE SECRETARY OF GENERAL SERVICES, OR THE SECRETARY’S 5
DESIGNEE; 6
(4) THE SECRETARY OF LABOR, OR THE SECRETARY’S DESIGNEE; 7
(5) THE SECRETARY OF COMMERCE, OR THE SECRETARY’S 8
DESIGNEE; 9
(6) THE DIRECTOR OF THE GOVERNOR’S OFFICE OF HOMELAND 10
SECURITY, OR THE DIRECTOR’S DESIGNEE; 11
(7) THE CHIEF PRIVACY OFFICER, OR THE CHIEF PRIVACY 12
OFFICER’S DESIGNEE; 13
(8) THE CHIEF DATA OFFICER, OR THE CHIEF DATA OFFICER’S 14
DESIGNEE; 15
(9) THE CHIEF INFORMATION SECURITY OFFICER, OR THE CHIEF 16
INFORMATION SECURITY OFFICER’S DESIGNEE; 17
(10) THE GOVERNOR’S SENIOR ADVISOR FOR RESPONSIBLE 18
ARTIFICIAL INTELLIGENCE , OR THE SENIOR ADVISOR’S DESIGNEE; AND 19
(11) ANY OTHER MEMBER OF THE GOVERNOR’S EXECUTIVE COUNCIL, 20
APPOINTED BY THE GOVERNOR. 21
(D) THE SECRETARY SHALL CHAIR THE SUBCABINET. 22
(E) THE SUBCABINET SHALL : 23
(1) DEVELOP STRATEGY , POLICY, AND MONITORING PROCE SSES FOR 24
RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AN D 25
ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 26
(2) OVERSEE THE STATE’S IMPLEMENTATION OF : 27
12 HOUSE BILL 1271
(I) ARTIFICIAL INTELLIGE NCE INVENTORY ; 1
(II) DATA INVENTORY ; 2
(III) ARTIFICIAL INTELLIGE NCE IMPACT ASSESSMEN TS; 3
(IV) MONITORING OF ARTIFI CIAL INTELLIGENCE IN VOLVING A 4
HIGH–RISK ACTION; AND 5
(V) COMPLIANCE WITH STATE POLICIES AND PR OCEDURES; 6
(3) SUPPORT ARTIFICIAL I NTELLIGENCE AND DATA INNOVATION 7
ACROSS UNITS OF STATE GOVERNMENT AND IN PRIVATE SECTOR EN TERPRISE BY: 8
(I) IDENTIFYING AND PRIO RITIZING BEST USES O F ARTIFICIAL 9
INTELLIGENCE IN EACH UNIT OF STATE GOVERNMENT AND IN PR IVATE SECTOR 10
ENTERPRISE; 11
(II) TESTING PROOFS OF CO NCEPT OF PRIORITY AR TIFICIAL 12
INTELLIGENCE USE IN PROTOTYPING ; 13
(III) REDUCING BARRIERS TO THE RESPONSIBLE USE OF 14
ARTIFICIAL INTELLIGE NCE AND STATE DATA; 15
(IV) DEVELOPING SUCCESSFUL ARTIFICIA L INTELLIGENCE 16
PILOTS INTO PRODUCTI ON; AND 17
(V) TRAINING AND WORKFOR CE DEVELOPMENT ; 18
(4) DEVELOP AND IMPLEMEN T A COMPREHENSIVE AC TION PLAN FOR 19
RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AN D 20
ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 21
(5) ESTABLISH PARTNERSHI PS, MEMORANDA OF UNDERST ANDING, 22
AND CONTRACTS TO SUP PORT THE AIMS OF THI S SECTION; 23
(6) PROMOTE ARTIFICIAL I NTELLIGENCE KNOWLEDG E, SKILLS, AND 24
TALENT IN STATE GOVERNMENT BY : 25
(I) IDENTIFYING AND OFFE RING TRAINING PROGRAMS FO R 26
STATE WORKERS ON THE USE OF ARTIFICIAL IN TELLIGENCE AND PARTI CULARLY 27
GENERATIVE ARTIFICIA L INTELLIGENCE ; AND 28
HOUSE BILL 1271 13
(II) EXPLORING WAYS TO PR OVIDE EXTERNAL ARTIF ICIAL 1
INTELLIGENCE TALENT AN OPPORTUNITY TO SE RVE THE STATE AND UNITS OF 2
STATE GOVERNMENT IN TAR GETED, SHORT–TERM PROJECTS , INCLUDING BY 3
LEVERAGING INSTITUTI ONS OF HIGHER EDUCAT ION OR INDUSTRY ; AND 4
(7) IDENTIFY ARTIFICIAL INTELLIGENCE USE CAS ES AND BUILD 5
FOUNDATIONAL INFRAST RUCTURE BY REQUIRING : 6
(I) THE DEPARTMENT TO EVALUA TE RELEVANT 7
INFRASTRUCTURE TO SA FELY, SECURELY, AND EFFICIENTLY TEST ARTIFICIAL 8
INTELLIGENCE PROOFS OF CONCEPT AND PILOT S; 9
(II) THE DEPARTMENT OF GENERAL SERVICES, IN 10
CONSULTATION WITH TH E DEPARTMENT , TO CREATE A MODEL FO R RUNNING AND 11
PROCURING ARTIFIC IAL INTELLIGENCE PRO OFS OF CONCEPT AND P ILOTS, IN 12
ACCORDANCE WITH STATE LAWS, REGULATIONS , AND POLICIES; AND 13
(III) THE DEPARTMENT , IN CONSULTATION WITH THE 14
SUBCABINET, TO COORDINATE WITH A GENCIES TO PROVIDE S UPPORT IN 15
IDENTIFYING AND PRIO RITIZING USE CASES AND EXECUTING P ROOFS OF CONCEPT 16
AND PILOTS ALIGNED W ITH THE GOVERNOR’S PRIORITIES. 17
(F) THE GOVERNOR SHALL PROVID E THE SUBCABINET WITH SUFFI CIENT 18
RESOURCES TO PERFORM THE FUNCTIONS OF THI S SECTION. 19
(G) FOR EACH FISCAL YEAR , THE GOVERNOR MAY INCLUDE IN THE ANNUAL 20
BUDGET BILL AN APPRO PRIATION OF UP TO $3,000,000 FOR PARTNERSHIPS AND 21
CONTRACTS TO SUPPORT THE FUNCTIONS REQUIR ED IN THIS SECTION. 22
12–101. 23
(a) This section does not apply to: 24
(1) capital expenditures by the Department of Transportation or the 25
Maryland Transportation Authority, in connection with State roads, bridges, or highways, 26
as provided in § 12–202 of this title; [or] 27
(2) procurements by the Department of General Services AND THE 28
DEPARTMENT OF INFORMATION TECHNOLOGY for the purpose of modernizing 29
INFORMATION TECHNOLO GY AND cybersecurity infrastructure for the State valued 30
below $1,000,000; OR 31
(3) COMPETITIVE PROOF OF CONCEPT PROCUREMENTS VALUED 32
BELOW $1,000,000 MADE UNDER § 13–116 OF THIS ARTICLE . 33 14 HOUSE BILL 1271
(b) (1) The Board may control procurement by units. 1
(2) To implement the provisions of this Division II, the Board may: 2
(i) set policy; 3
(ii) adopt regulations, in accordance with Title 10, Subtitle 1 of the 4
State Government Article; and 5
(iii) establish internal operational procedures consistent with this 6
Division II. 7
(3) The Board shall ensure that the regulations of the primary 8
procurement units provide for procedures that are consistent with this Division II and Title 9
13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the 10
circumstances of a particular type of procurement or a particular unit do not require 11
otherwise, are substantially the same. 12
(4) The Board may delegate any of its authority that it determines to be 13
appropriate for delegation and may require prior Board approval for specified procurement 14
actions. 15
(5) Except as limited by the Maryland Constitution, the Board may 16
exercise any control authority conferred on a primary procurement unit by this Division II 17
and, to the extent that its action conflicts with the action of the primary procurement unit, 18
the action of the Board shall prevail. 19
(c) On or before December 1 each year, the Department of General Services shall 20
submit a report to the Board on procurements made under subsection (a)(2) of this section 21
that shall include for each procurement: 22
(1) the purpose of the procurement; 23
(2) the name of the contractor; 24
(3) the contract amount; 25
(4) the method of procurement utilized; 26
(5) the number of bidders who bid on the procurement; and 27
(6) the contract term. 28
(D) ON OR BEFORE DECEMBER 1 EACH YEAR, THE DEPARTMENT OF 29
GENERAL SERVICES SHALL SUBMIT A REPORT TO THE BOARD ON PROCUREMENTS 30 HOUSE BILL 1271 15
MADE UNDER SUBSECTION (A)(3) OF THIS SECTION THAT SHALL INCLUDE FOR EA CH 1
PROCUREMENT : 2
(1) THE PURPOSE OF THE P ROCUREMENT ; 3
(2) THE NAME OF THE CONT RACTOR; 4
(3) THE CONTRACT AMOUNT ; 5
(4) THE NUMBER OF PROPOS ALS RECEIVED ON THE PROCUREMENT ; 6
AND 7
(5) THE CONTRACT TERM. 8
13–116. 9
(A) IN THIS SECTION, “PROOF OF CONCEPT ” MEANS A TEST, EVALUATION, 10
OR PILOT PROJECT OF A GOOD OR SERVICE IN A REAL–WORLD ENVIRONMENT TO 11
EVALUATE WHETHER THE GOOD OR SERVICE CAN BE SUCCESSFULLY DEPL OYED 12
AND IS BENEFICIAL TO THE STATE. 13
(B) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IS A FORMAL 14
COMPETITIVE PROCUREM ENT METHOD THAT MAY BE USED TO SOLICIT P ROPOSALS 15
FOR THE CONDUCT OF A PROOF OF CONCEPT PRI OR TO FULL IMPLEMENT ATION 16
WHEN THE HEAD OF A U NIT DETERMINES THE P ROCESS TO BE APP ROPRIATE AND IN 17
THE BEST INTERESTS O F THE UNIT, INCLUDING: 18
(I) TESTING SOFTWARE –AS–A–SERVICE OR OFF –THE–SHELF 19
SOFTWARE; 20
(II) TESTING NEW, INNOVATIVE PRODUCTS OR SERVICES; OR 21
(III) TESTING A PRODUCT OR SERVICE CONCEPTUALIZ ED OR 22
CONCEIVED OF BY A UNIT OF STATE GOVERNMENT . 23
(2) AFTER OBTAINING THE A PPROVAL OF THE HEAD OF THE UNIT 24
AND BEFORE CONDUCTIN G A COMPETITIVE PROO F OF CONCEPT PROCURE MENT, 25
THE UNIT SHALL OBTAI N APPROVAL FROM THE SECRETARY OF INFORMATION 26
TECHNOLOGY , OR THE SECRETARY’S DESIGNEE. 27
(C) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT MAY BE 28
CONDUCTED THROUGH TH E ISSUANCE OF A SOLI CITATION BY ANY METH OD OF 29
PROCUREMENT AUTHORIZ ED UNDER THIS DIVISION II. 30 16 HOUSE BILL 1271
(2) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT 1
SOLICITATION SHALL I NCLUDE A STATEMENT OF : 2
(I) THE SCOPE OF WORK OR PROJECT DESCRIPTION , 3
INCLUDING THE INTEND ED USE, QUANTITY, ESTIMATED TIME FRAME FOR THE 4
PROOF OF CONCEPT , AND ANTICIPATED NUMB ER OF PROOF OF CONCE PT AWARDS 5
THAT WILL BE MADE ; AND 6
(II) THE FACTORS , INCLUDING PRICE, THAT WILL BE USED IN 7
EVALUATING PROPOSALS AND THE RELATIVE IMP ORTANCE OF EACH . 8
(3) A SOLICITATION MAY BE DISTRIBUTED TO VENDO RS KNOWN TO 9
OFFER GOODS OR SERVI CES WITHIN THE SCOPE OF THE PROOF OF CONC EPT AND 10
SHALL, EXCEPT FOR PROCUREME NTS UNDER $15,000 NOT OTHERWISE REQUIR ED 11
BY LAW TO BE POSTED , BE POSTED ON EMARYLAND MARKETPLACE ADVANTAGE, IN 12
ACCORDANCE WITH THE POLICIES AND PROCEDU RES UNDER SUBSECTION (G) OF 13
THIS SECTION. 14
(D) AFTER RECEIPT OF PROP OSALS BUT BEFORE AWA RD OF A 15
PROCUREMENT CONTRACT , A UNIT MAY: 16
(1) CONDUCT DISCUSSIONS WITH AN OFFEROR TO E NSURE FULL 17
UNDERSTANDING OF : 18
(I) THE REQUIREMENTS OF THE UNIT, AS SET FORTH IN THE 19
REQUEST FOR PROPOSAL S; AND 20
(II) THE PROPOSAL SUBMITT ED BY THE OFFEROR ; AND 21
(2) REQUEST PRODUCT SAMPLES FOR TESTING BY THE UNIT OR A 22
DEMONSTRATION OF A P RODUCT OR SERVICE AN D USE THESE SAMPLES OR 23
DEMONSTRATIONS IN IT S EVALUATION PROCESS . 24
(E) A REQUEST FOR PRODUCT SAMPLES FOR TESTING OR DEMONSTRATION 25
MADE UNDER SUBSECTIO N (D)(2) OF THIS SECTION SHAL L BE ISSUED TO ALL 26
OFFERORS DEEMED REAS ONABLE AT THE TIME O F THE REQUEST . 27
(F) A UNIT MAY: 28
(1) AWARD ONE OR MORE OF THE PROPOSALS A CONT RACT FOR THE 29
PROOF OF CONCEPT ; AND 30
HOUSE BILL 1271 17
(2) PROVIDE AN OPTION FO R THE STATE TO PROCEED WITH A FULL 1
IMPLEMENTATION OF AN AWARDED PROPOSAL . 2
(G) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH 3
THE DEPARTMENT OF INFORMATION TECHNOLOGY , SHALL ADOPT POLICIES AND 4
PROCEDURES FOR THE D EVELOPMENT AND IMPLE MENTATION OF COMPETI TIVE 5
PROOF OF CONCEPT PRO CUREMENTS . 6
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 7
2024, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council, 8
in consultation with the appropriate stakeholders, shall submit an interim report and 9
recommendations to the Governor and, in accordance with § 2–1257 of the State 10
Government Article, the General Assembly on the risks and opportunities and associated 11
recommendations related to: 12
(1) use of artificial intelligence to support job and business creation and 13
growth in the State; 14
(2) in collaboration with the Maryland Department of Labor and, as 15
appropriate, external experts, workers, labor unions, businesses, and civil society, use of 16
artificial intelligence by the State workforce, including opportunities to upskill the 17
workforce; 18
(3) in consultation with the Maryland Department of Emergency 19
Management, the Public Service Commission, the Department of the Environment, and the 20
Department of Transportation, use of artificial intelligence in critical infrastructure and 21
guidelines for owners and operators to incorporate risk management into critical 22
infrastructure, including mapping emergent cyber and physical security and resiliency 23
risks to the State infrastructure and residents stemming from artificial intelligence; 24
(4) in consultation with the Maryland Department of Health, the U.S. 25
Department of Veterans Affairs, and the U.S. Department of Homeland Security, use of 26
systems that employ artificial intelligence in health care delivery and human services; 27
(5) in consultation with the Department of Information Technology Office 28
of Security Management and the Chief Privacy Officer, use of artificial intelligence in the 29
discovery and remediation of vulnerabilities in cybersecurity and data management across 30
State and local government, including school systems; 31
(6) in consultation with the State Chief Privacy Officer and an independent 32
contractor identified by the Subcabinet, data privacy, specifically regarding the potential 33
to train systems that employ artificial intelligence; 34
(7) in consultation with the Maryland Department of Labor, the 35
Department of Commerce, and the Governor’s Office of Small, Minority, and Women 36
Business Affairs, use of artificial intelligence in workforce training and hiring of talent with 37 18 HOUSE BILL 1271
expertise in artificial intelligence, employment practices, and workforce development 1
implications; 2
(8) in consultation with the Office of the Attorney General and the Judicial 3
Branch, use of artificial intelligence in the criminal justice system, including whether and 4
how such technology should be used, in what contexts, and with what safeguards; 5
(9) the procurement of systems that employ artificial intelligence, 6
including efforts to increase competition and assurance that contracts retain sufficient data 7
privacy protection against vendor lock–in; 8
(10) use of artificial intelligence by occupations licensed and certified by the 9
State, in consultation with the boards, identifying ways for the regulatory board to identify 10
and manage the risks of opportunities of artificial intelligence and determine appropriate 11
permitted use and supervision by licensees; and 12
(11) use of artificial intelligence in local school systems, including 13
recommendations to the State on the responsible and product ive use of artificial 14
intelligence based on a review of the federal Department of Education Office of Educational 15
Technology’s report entitled “Artificial Intelligence and the Future of Teaching and 16
Learning: Insights and Recommendations”, in collaboration with the State Department of 17
Education. 18
SECTION 3. AND BE IT FURTHER ENACTED, That, on or before December 1, 19
2025, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council 20
shall submit a report and recommendations to the Governor and, in accordance with § 21
2–1257 of the State Government Article, the General Assembly on the sufficiency of the 22
Subcabinet to accomplish the artificial intelligence goals of the State and the efficacy of the 23
potential transition of the Subcabinet to a department or independent unit of State 24
government. 25
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
1, 2024. 27