EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING 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. *hb1271* HOUSE BILL 1271 S1, P2, K3 4lr2598 CF SB 818 By: Delegates J. Lewis, Hill, and Kaiser Kaiser, Alston, Bagnall, Bhandari, Chisholm, Cullison, Guzzone, Hutchinson, S. Johnson, Kerr, Kipke, R. Lewis, Lopez, Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Szeliga, Taveras, White Holland, and Woods Introduced and read first time: February 8, 2024 Assigned to: Health and Government Operations Committee Report: Favorable with amendments House action: Adopted Read second time: March 22, 2024 CHAPTER ______ 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 prohibiting the Department of Information Technology from making certain 7 information publicly available under certain circumstances to conduct ongoing 8 monitoring of certain systems under certain circumstances ; requiring the 9 Department of Information Technology, in consultation with the Governor’s 10 Artificial Intelligence Subcabinet of the Governor’s Executive Council, to adopt 11 policies and procedures concerning the development, procurement, implementation 12 deployment, use, and assessment of systems that employ artificial intelligence by 13 units of State government; prohibiting a unit of State government from 14 implementing deploying or using a system that employs artificial intelligence under 15 certain circumstances beginning on a certain date; requiring a unit of State 16 government to conduct certain regular impact assessments under certain 17 circumstances; exempting the Office of the Attorney General, the Comptroller, the 18 Treasurer, and certain public institutions of higher education from certain 19 provisions; establishing the Governor’s Artificial Intelligence Subcabinet of the 20 Governor’s Executive Council; establishing competitive proof of concept procurement 21 as a formal competitive procurement method for the procurement of certain products 22 2 HOUSE BILL 1271 and services; exempting certain competitive proof of concept procurements from 1 oversight by the Board of Public Works; requiring the Department of General 2 Services, in consultation with the Department of Information Technology, to develop 3 certain policies and procedures for the development and implementation of 4 competitive proof of concept procurements; requiring the Subcabinet to develop a 5 certain roadmap; and generally relating to the use of artificial intelligence by units 6 of State government. 7 BY repealing and reenacting, without amendments, 8 Article – State Finance and Procurement 9 Section 3.5–101(a), (c), (d), and (f) 10 Annotated Code of Maryland 11 (2021 Replacement Volume and 2023 Supplement) 12 BY repealing and reenacting, with amendments, 13 Article – State Finance and Procurement 14 Section 3.5–301, 3.5–303(a), and 12–101 Section 3.5–301 and 3.5–303(a) 15 Annotated Code of Maryland 16 (2021 Replacement Volume and 2023 Supplement) 17 BY adding to 18 Article – State Finance and Procurement 19 Section 3.5–318; 3.5–801 through 3.5–805 3.5–806 to be under the new subtitle 20 “Subtitle 8. Artificial Intelligence”; and 13–116 21 Annotated Code of Maryland 22 (2021 Replacement Volume and 2023 Supplement) 23 Preamble 24 WHEREAS, Artificial intelligence is transforming society and work, and the pace of 25 that change will present new opportunities and risks for the State’s residents, workers, and 26 economy; and 27 WHEREAS, The State must ensure the responsible, ethical, beneficial, and 28 trustworthy use of artificial intelligence in State government; and 29 WHEREAS, The State is home to a rich and growing artificial intelligence ecosystem 30 of academic, industry, government, and civil society experts, researchers, builders, 31 organizers, and stakeholders; and 32 WHEREAS, To foster an environment for innovation while respecting individuals, 33 employees, and civil rights, as artificial intelligence technologies are developed and evolve, 34 the technologies should be analyzed and monitored by government officials, industry 35 experts, consumer protection advocates, and other stakeholders; and 36 WHEREAS, Given the rapid rate of change in artificial intelligence technologies and 37 industry, the State must chart a principled yet adaptable, pragmatic path forward, so that 38 HOUSE BILL 1271 3 the technologies’ benefits can be confidently harnessed on behalf of Marylanders and in 1 service of the Governor’s mission to Leave No One Behind; and 2 WHEREAS, Leaders across State government share a common interest in 3 establishing effective artificial intelligence governance and are committed to working 4 together to develop the legal and policy framework for its responsible use in the State; and 5 WHEREAS, Automated systems should be safe and effective, developed with 6 consultation from diverse communities, stakeholders, and domain experts to identify 7 concerns, risks, and potential impacts of the systems; and 8 WHEREAS, Designers, developers, and deployers of automated systems should take 9 proactive and continuous measures to protect individuals and communities from 10 algorithmic discrimination and to use and design systems in an equitable way; and 11 WHEREAS, Designers, developers, and deployers of automated systems should seek 12 permission and respect decisions regarding collection, use, access, transfer, and deletion of 13 data in appropriate ways and to the greatest extent possible; where not possible, alternative 14 privacy by design safeguards should be used; and 15 WHEREAS, Designers, developers, and deployers of automated systems should 16 provide generally accessible plain language documentation including clear descriptions of 17 the overall system functioning and the role automation plays, notice that such systems are 18 in use, the individual or organization responsible for the system, and explanations of 19 outcomes that are clear, timely, and accessible; and 20 WHEREAS, Designers, developers, and deployers of automated systems should 21 consider the specific types of actions for which a human alternative is appropriate, 22 commensurate with the magnitude of the action and risk of harm, along with the extent to 23 which a human alternative would be beneficial to individuals and the public interest; now, 24 therefore, 25 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 That the Laws of Maryland read as follows: 27 Article – State Finance and Procurement 28 3.5–101. 29 (a) In this title the following words have the meanings indicated. 30 (c) “Department” means the Department of Information Technology. 31 (d) “Secretary” means the Secretary of Information Technology. 32 (f) “Unit of State government” means an agency or unit of the Executive Branch 33 of State government. 34 4 HOUSE BILL 1271 3.5–301. 1 (a) In this subtitle the following words have the meanings indicated. 2 (B) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANING STAT ED IN § 3.5–801 3 OF THIS TITLE. 4 [(b)] (C) “Cybersecurity” means processes or capabilities wherein systems, 5 communications, and information are protected and defended against damage, 6 unauthorized use or modification, and exploitation. 7 [(c)] (D) “Cybersecurity strategy” means a vision, a plan of action, or guiding 8 principles. 9 [(d)] (E) (1) “Development” means all expenditures for a new information 10 technology system or an enhancement to an existing system including system: 11 (i) planning; 12 (ii) creation; 13 (iii) installation; 14 (iv) testing; and 15 (v) initial training. 16 (2) “Development” does not include: 17 (i) ongoing operating costs, software or hardware maintenance, 18 routine upgrades, or modifications that merely allow for a continuation of the existing level 19 of functionality; or 20 (ii) expenditures made after a new or enhanced system has been 21 legally accepted by the user and is being used for the business process for which it was 22 intended. 23 [(e)] (F) “Fund” means the Major Information Technology Development Project 24 Fund. 25 [(f)] (G) “Information technology” means all electronic information processing, 26 including: 27 (1) maintenance; 28 HOUSE BILL 1271 5 (2) telecommunications; 1 (3) hardware; 2 (4) software; and 3 (5) associated services. 4 [(g)] (H) “Information technology services” means information provided by 5 electronic means by or on behalf of a unit of State government. 6 [(h)] (I) “Major information technology development project” means any 7 information technology development project that meets one or more of the following 8 criteria: 9 (1) the estimated total cost of development equals or exceeds $1,000,000; 10 (2) the project is undertaken to support a critical business function 11 associated with the public health, education, safety, or financial well–being of the citizens 12 of Maryland; or 13 (3) the Secretary determines that the project requires the special attention 14 and consideration given to a major information technology development project due to: 15 (i) the significance of the project’s potential benefits or risks; 16 (ii) the impact of the project on the public or local governments; 17 (iii) the public visibility of the project; or 18 (iv) other reasons as determined by the Secretary. 19 [(i)] (J) “Master plan” means the statewide information technology master plan 20 and statewide cybersecurity strategy. 21 [(j)] (K) “Nonvisual access” means the ability, through keyboard control, 22 synthesized speech, Braille, or other methods not requiring sight to receive, use, and 23 manipulate information and operate controls necessary to access information technology in 24 accordance with standards adopted under § 3.5–303(b) of this subtitle. 25 [(k)] (L) “Resource sharing” means the utilization of a State resource by private 26 industry in exchange for the provision to the State of a communication service or other 27 consideration. 28 [(l)] (M) “Systems development life cycle plan” means a plan that defines all 29 actions, functions, or activities to be performed by a unit of State government in the 30 6 HOUSE BILL 1271 definition, planning, acquisition, development, testing, implementation, operation, 1 enhancement, and modification of information technology systems. 2 3.5–303. 3 (a) The Secretary is responsible for carrying out the following duties: 4 (1) developing, maintaining, revising, and enforcing information 5 technology policies, procedures, and standards; 6 (2) providing technical assistance, advice, and recommendations to the 7 Governor and any unit of State government concerning information technology matters; 8 (3) reviewing the annual project plan for each unit of State government to 9 make information and services available to the public over the Internet; 10 (4) developing and maintaining a statewide information technology master 11 plan that will: 12 (i) centralize the management and direction of information 13 technology policy within the Executive Branch of State government under the control of the 14 Department; 15 (ii) include all aspects of State information technology including 16 telecommunications, security, data processing, and information management; 17 (iii) consider interstate transfers as a result of federal legislation and 18 regulation; 19 (iv) ensure that the State information technology plan and related 20 policies and standards are consistent with State goals, objectives, and resources, and 21 represent a long–range vision for using information technology to improve the overall 22 effectiveness of State government; 23 (v) include standards to assure nonvisual access to the information 24 and services made available to the public over the Internet; and 25 (vi) allows a State agency to maintain the agency’s own information 26 technology unit that provides for information technology services to support the mission of 27 the agency; 28 (5) developing and maintaining a statewide cybersecurity strategy that 29 will: 30 (i) centralize the management and direction of cybersecurity 31 strategy within the Executive Branch of State government under the control of the 32 Department; and 33 HOUSE BILL 1271 7 (ii) serve as the basis for budget allocations for cybersecurity 1 preparedness for the Executive Branch of State government; 2 (6) adopting by regulation and enforcing nonvisual access standards to be 3 used in the procurement of information technology services by or on behalf of units of State 4 government in accordance with subsection (c) of this section; 5 (7) in consultation with the Maryland Cybersecurity Coordinating Council, 6 advising and overseeing a consistent cybersecurity strategy for units of State government, 7 including institutions under the control of the governing boards of the public institutions 8 of higher education; 9 (8) advising and consulting with the Legislative and Judicial branches of 10 State government regarding a cybersecurity strategy; 11 (9) in consultation with the Maryland Cybersecurity Coordinating Council, 12 developing guidance on consistent cybersecurity strategies for counties, municipal 13 corporations, school systems, and all other political subdivisions of the State; 14 (10) upgrading information technology and cybersecurity–related State 15 government infrastructure; [and] 16 (11) annually evaluating: 17 (i) the feasibility of units of State government providing public 18 services using artificial intelligence, machine learning, commercial cloud computer 19 services, device–as–a–service procurement models, and other emerging technologies; and 20 (ii) the development of data analytics capabilities to enable 21 data–driven policymaking by units of State government; AND 22 (12) CONDUCTING INVENTORI ES AND ONGOING ASSESSME NTS OF 23 SYSTEMS THAT EMPLOY ARTIFICIAL INTELLIGE NCE THAT ARE USED BY A UNIT OF 24 STATE GOVERNMENT AS R EQUIRED UNDER § 3.5–318 OF THIS SUBTITLE § 3.5–803 25 OF THIS TITLE. 26 3.5–318. 27 (A) ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAF TER, 28 EACH UNIT OF STATE GOVERNMENT SHALL CON DUCT A DATA INVENTOR Y THAT 29 IDENTIFIES DATA THAT MEETS THE CRITERIA E STABLISHED BY THE CHIEF DATA 30 OFFICER AND THAT IS : 31 (1) (I) NECESSARY FOR THE OP ERATION OF THE UNIT ; OR 32 8 HOUSE BILL 1271 (II) OTHERWISE REQUIRED T O BE COLLECTED : 1 1. AS A CONDITION TO RECEIVE FEDE RAL FUNDS; OR 2 2. BY FEDERAL OR STATE LAW; AND 3 (2) IN A FORM PRESCRIBED BY THE CHIEF DATA OFFICER, 4 INCLUDING WHEN THE D ATA IS USED IN ARTIF ICIAL INTELLIGENCE . 5 (B) THE DEPARTMENT SHALL DEVE LOP AND PUBLISH GUID ANCE ON THE 6 POLICIES AND PROCEDURES FOR THE INVENTORY . 7 SUBTITLE 8. ARTIFICIAL INTELLIGENCE . 8 3.5–801. 9 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 10 INDICATED. 11 (B) (1) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 12 PROCESS THAT FACILIT ATES DECISION MAKI NG. 13 (2) “ALGORITHMIC DECISION SYSTEM” INCLUDES DECISIONS 14 DERIVED FROM MACHINE S, STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON 15 PAPER. 16 (C) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM THAT : 17 (1) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES, MAKE 18 PREDICTIONS, RECOMMENDATIONS , OR DECISIONS INFLUEN CING REAL OR VIRTUAL 19 ENVIRONMENTS ; 20 (2) USES MACHINE AND HUM AN–BASED INPUTS TO PERC EIVE REAL 21 AND VIRTUAL ENVIRONM ENTS AND ABSTRACTS T HOSE PERCEPTIONS INT O MODELS 22 THROUGH ANALYSIS IN AN AUTOMATED MANNER ; AND 23 (3) USES MODEL INFERENCE TO FORMULATE OPTIONS FOR 24 INFORMATION OR ACTIO N. 25 (D) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 26 (1) RESULT IN ANY UNLAWF UL DISCRIMINATION ; 27 HOUSE BILL 1271 9 (2) HAVE AN UNLAWFUL DIS PARATE IMPACT ON ANY INDIVIDUAL OR 1 GROUP OF INDIVIDUALS O N THE BASIS OF ANY A CTUAL OR PERCEIVED 2 CHARACTERISTIC ; OR 3 (3) HAVE A NEGATIVE IMPA CT ON THE HEALTH , SAFETY, OR 4 WELL–BEING OF AN INDIVIDU AL. 5 (E) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 6 EVALUATION OF A SYST EM THAT EMPLOYS ARTIFICIAL INTELLIGE NCE. 7 (D) (1) “HIGH–RISK ARTIFICIAL INTE LLIGENCE” MEANS ARTIFICIAL 8 INTELLIGENCE THAT IS A RISK TO INDIVIDUAL S OR COMMUNITIES , AS DEFINED 9 UNDER REGULATIONS AD OPTED BY THE DEPARTMENT IN CONSULT ATION WITH THE 10 GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET. 11 (2) “HIGH–RISK ARTIFICIAL INTE LLIGENCE” INCLUDES 12 RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE AND SAF ETY–IMPACTING 13 ARTIFICIAL INTELLIGE NCE. 14 (E) “IMPACT ASSESSMENT ” MEANS AN ASSESSMENT OF ARTIFICIAL 15 INTELLIGENCE SYSTEMS MADE UNDER REGULATIO NS ADOPTED BY THE 16 DEPARTMENT IN CONSULT ATION WITH THE GOVERNOR’S ARTIFICIAL 17 INTELLIGENCE SUBCABINET AND REQUIR ED UNDER § 3.5–803 OF THIS SUBTITLE. 18 (F) “PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N” MEANS: 19 (1) THE CONSTITUENT INST ITUTIONS OF THE UNIVERSITY SYSTEM 20 OF MARYLAND AND THE UNIVERSITY OF MARYLAND CENTER FOR 21 ENVIRONMENTAL SCIENCE; 22 (2) MORGAN STATE UNIVERSITY; OR 23 (3) ST. MARY’S COLLEGE OF MARYLAND. 24 (G) “RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS ARTIFICIAL 25 INTELLIGENCE WHOSE O UTPUT SERVES AS A BA SIS FOR DECISION OR ACTION THAT 26 IS SIGNIFICANTLY LIK ELY TO AFFECT CIVIL RIGHTS, CIVIL LIBERTIES, EQUAL 27 OPPORTUNITIES , ACCESS TO CRITICAL R ESOURCES, OR PRIVACY. 28 (H) “SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE” MEANS ARTIFICIAL 29 INTELLIGENCE THAT HA S THE POTENTIAL TO S IGNIFICANTLY IMPACT THE SAFETY 30 OF HUMAN LIFE , WELL–BEING, OR CRITICAL INFRASTR UCTURE. 31 3.5–802. 32 10 HOUSE BILL 1271 (A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 1 THIS SUBTITLE DOES N OT APPLY TO: 2 (I) THE OFFICE OF THE ATTORNEY GENERAL; 3 (II) THE COMPTROLLER ; OR 4 (III) THE STATE TREASURER. 5 (2) ON OR BEFORE JUNE 1, 2025, EACH ENTITY LISTED U NDER 6 PARAGRAPH (1) OF THIS SUBSECTION S HALL ESTABLISH POLIC IES AND 7 PROCEDURES THAT ARE FUNCTIONALLY COMPATI BLE WITH THE POLICIE S AND 8 PROCEDURES ADOPTED U NDER § 3.5–804(A) OF THIS SUBTITLE FOR THE 9 DEVELOPMENT , PROCUREMENT , DEPLOYMENT , USE, AND ONGOING ASSESSME NT OF 10 SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTE LLIGENCE. 11 (B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 12 THIS SUBTITLE APPLIE S TO EACH PUBLIC SEN IOR HIGHER EDUCATION INSTITUTION 13 AND BALTIMORE CITY COMMUNITY COLLEGE. 14 (2) THIS SUBTITLE DOES NO T APPLY TO ARTIFICIA L INTELLIGENCE 15 DEPLOYED BY A PUBLIC SENIOR HIGHER EDUCAT ION INSTITUTION OR BALTIMORE 16 CITY COMMUNITY COLLEGE THAT IS USED SOLELY FOR A RESEARC H OR ACADEMIC 17 PURPOSE, INCLUDING IN PARTNERSHIP WITH A UNIT OF STATE GOVERNMENT FOR 18 THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF ARTIFICIAL 19 INTELLIGENCE . 20 (3) ON OR BEFORE JUNE 1, 2025, EACH PUBLIC SENIOR H IGHER 21 EDUCATION INSTITUTIO N AND BALTIMORE CITY COMMUNITY COLLEGE SHALL 22 ESTABLISH POLICIES AND P ROCEDURES THAT ARE F UNCTIONALLY COMPATIB LE 23 WITH THE POLICIES AN D PROCEDURES ADOPTED UNDER § 3.5–804(A) OF THIS 24 SUBTITLE FOR THE DEV ELOPMENT, PROCUREMENT , DEPLOYMENT , USE, AND 25 ONGOING ASSESSMENT O F SYSTEMS THAT EMPLO Y HIGH–RISK ARTIFICIA L 26 INTELLIGENCE USED SO LELY FOR A RESEARCH OR ACADEMIC PURPOSE . 27 (4) ON OR BEFORE SEPTEMBER 1, 2025, AND EACH YEAR 28 THEREAFTER , EACH PUBLIC SENIOR H IGHER EDUCATION INST ITUTION AND 29 BALTIMORE CITY COMMUNITY COLLEGE SHALL SUBMIT TO THE DEPARTMENT A 30 REPORT ON ALL HIGH–RISK ARTIFICIAL INTE LLIGENCE PROCURED AN D DEPLOYED 31 FOR A RESEARCH OR AC ADEMIC PURPOSE . 32 3.5–803. 33 HOUSE BILL 1271 11 (A) ON OR BEFORE DECEMBER 1, 2024 2025, AND ANNUALLY REGULARLY 1 THEREAFTER , EACH UNIT OF STATE GOVERNMENT SHAL L: 2 (1) CONDUCT AN INVENTORY OF SYSTEMS THAT EMPL OY HIGH–RISK 3 ARTIFICIAL INTELLIGE NCE; AND 4 (2) PROVIDE THE INVENTOR Y TO THE DEPARTMENT IN A FORMA T 5 REQUIRED BY THE DEPARTMENT . 6 (B) FOR EACH SYSTEM , THE INVENTORY REQUIR ED BY THIS SECTION S HALL 7 INCLUDE: 8 (1) THE NAME OF THE SYST EM; 9 (2) THE VENDOR THAT PROV IDED THE SYSTEM , IF APPLICABLE; 10 (3) A DESCRIPTION OF THE CAPABILITIES OF THE SYSTEM; 11 (4) A STATEMENT OF THE P URPOSE AND THE INTEN DED USES OF THE 12 SYSTEM; 13 (5) WHETHER THE SYSTEM U NDERWENT AN IMPACT ASSESSMENT 14 PRIOR TO BEING IMPLEMENTED DEPLOYED; 15 (6) WHETHER THE SYSTEM I S USED TO INDEPENDEN TLY MAKE A 16 DECISION OR JUDGMENT OR TO INFORM OR SUPP ORT A DECISION OR JU DGMENT 17 DETERMINED BY THE DEPARTMENT TO INVOLVE A HIGH–RISK ACTION HIGH–RISK 18 ARTIFICIAL INTELLIGENCE ; AND 19 (7) A DETERMINATION OF THE RISK THAT USE OF A S YSTEM MAY BE 20 HIGH–RISK SUMMARY OF THE RESUL TS OF THE MOST RECEN T IMPACT ASSESSMENT . 21 (C) THE DEPARTMENT SHALL MAKE EACH INVENTORY REQUI RED BY THIS 22 SECTION AN AGGREGATED STATEW IDE INVENTORY PUBLICLY AVAILABLE O N ITS 23 WEBSITE. 24 (D) (1) THE DEPARTMENT MAY NOT MA KE PUBLICLY AVAILABL E ON THE 25 DEPARTMENT ’S WEBSITE INFORMATIO N FROM THE INVENTORI ES REQUIRED BY 26 THIS SECTION THAT RE LATE TO THE SAFETY A ND SECURITY OF STATE SYSTEMS IF 27 THE PUBLICATION O F THE INFORMATION IS LIKELY TO COMPROMISE THE SECURITY 28 OR INTEGRITY OF THE SYSTEM. 29 12 HOUSE BILL 1271 (2) ON REQUEST , THE DEPARTMENT SHALL PROV IDE TO THE 1 GOVERNOR, MEMBERS OF THE GENERAL ASSEMBLY, AND LAW ENFORCEMENT THE 2 INFORMATION DESCRIBE D IN PARAGRAPH (1) OF THIS SUBSECTION. 3 (E) (1) ON OR BEFORE FEBRUARY 1, 2025, DECEMBER 31, 2026, EACH 4 UNIT OF STATE GOVERNMENT SHAL L CONDUCT AN IMPACT ASSESSMENT OF A 5 SYSTEM PROCURED ON OR AFTER FEBRUARY 1, 2026, THAT INVOLVES A HIGH–RISK 6 ACTION HIGH–RISK ARTIFICIAL INTE LLIGENCE. 7 (2) ON OR BEFORE JULY 1, 2027, EACH UNIT OF STATE GOVERNMENT 8 SHALL CONDUCT AN IMP ACT ASSESSMENT OF A SYSTEM PROCURED BEFO RE 9 FEBRUARY 1, 2026, THAT INVOLVES HIGH –RISK ARTIFICIAL INTE LLIGENCE. 10 3.5–803. 3.5–804. 11 (A) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT, IN 12 CONSULTATION WITH TH E GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET, 13 SHALL ADOPT POLICIES AND PROCEDURES CONCE RNING THE DEVELOPMEN T, 14 PROCUREMENT , IMPLEMENTATION DEPLOYMENT , USE, AND ONGOING ASSESSME NT 15 OF SYSTEMS THAT EMPL OY HIGH–RISK ARTIFICIAL INTELLIGENCE BY A UN IT OF 16 STATE GOVERNMENT . 17 (B) THE POLICIES AND PROC EDURES REQUIRED BY SUBSECTION (A) OF 18 THIS SECTION SHALL : 19 (1) SUBJECT TO ANY OTHER APPLICABLE LAW , GOVERN THE 20 PROCUREMENT , IMPLEMENTATION DEPLOYMENT , AND ONGOING ASSESSME NT OF 21 SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGE NCE BY A UNIT OF STATE 22 GOVERNMENT ; 23 (2) BE SUFFICIENT TO ENS URE THAT THE USE OF ANY SYSTEM THAT 24 EMPLOYS ARTIFICIAL I NTELLIGENCE BY ANY U NIT OF STATE GOVERNMENT IS N OT 25 HIGH–RISK; 26 (3) REQUIRE EACH UNIT OF STATE GOVERNMENT TO A SSESS THE 27 LIKELY IMPACT OF ANY SYSTEM THAT EMPLOYS ARTIFICIAL INTELLIGE NCE BEFORE 28 IMPLEMENTING THE SYS TEM; 29 (2) DEFINE THE CRITERIA FOR AN INVENTORY OF SYSTEMS THAT 30 EMPLOY HIGH –RISK ARTIFICIAL INTELLIGENCE ; 31 (3) BE SUFFICIENT TO ENS URE THAT THE USE OF ANY SYSTEM THAT 32 EMPLOYS ARTIFICIAL I NTELLIGENCE BY A UNI T OF STATE GOVERNMENT IS 33 HOUSE BILL 1271 13 GOVERNED BY ADEQUATE GUARDRAILS TO PROTEC T INDIVIDUALS AND 1 COMMUNITIES ; 2 (4) IF THE DEPARTMENT IS NOTIFIE D THAT AN INDIVIDUAL OR 3 GROUP OF INDIVIDUALS MAY HAVE BEEN NEGATI VELY IMPACTED BY A S YSTEM THAT 4 EMPLOYS HIGH –RISK ARTIFICIAL INTE LLIGENCE, REQUIRE THE DEPARTMENT TO : 5 (I) NOTIFY AN INDIVIDUAL OR A GROUP OF INDIVI DUALS 6 DETERMINED TO HAVE B EEN NEGATIVELY IMPAC TED BY A SYSTEM THAT EMP LOYS 7 ARTIFICIAL INTELLIGE NCE; AND 8 (II) PROVIDE GUIDANCE TO AN INDIVIDUAL OR A G ROUP OF 9 INDIVIDUALS DETERMIN ED TO HAVE BEEN NEGA TIVELY IMPACTE D BY A SYSTEM 10 THAT EMPLOYS ARTIFIC IAL INTELLIGENCE ON AVAILABLE OPTIONS TO OPT OUT OF 11 THE SYSTEM; AND 12 (5) PROVIDE GUIDANCE TO UNITS OF STATE GOVERNMENT ON 13 PROCUREMENT OF A SYS TEM THAT EMPLOYS HIGH–RISK ARTIFICIAL INTELLIGE NCE 14 THAT ENSURES DATA PR IVACY AND COMPLIANCE WITH APPLICABLE STATUTES AND 15 REGULATIONS . 16 (C) THE DEPARTMENT SHALL MAKE THE POLICIES AND PRO CEDURES 17 REQUIRED BY SUBSECTION (A) OF THIS SECTION PUBLICL Y AVAILABLE ON ITS 18 WEBSITE WITHIN 45 DAYS AFTER THE POLIC IES AND PROCEDURES A RE ADOPTED. 19 3.5–804. 3.5–805. 20 (A) BEGINNING JULY 1, 2025, A UNIT OF STATE GOVERNMENT MAY NOT 21 PROCURE OR IMPLEMENT A DEPLOY A NEW SYSTEM THAT EMPLOYS ARTIFICIAL 22 INTELLIGENCE UNLESS THE SYSTEM COMPLIES WITH THE POLICIES AN D 23 PROCEDURES ADOPTED U NDER § 3.5–803 3.5–804 OF THIS SUBTITLE. 24 (B) A UNIT OF STATE GOVERNMENT THAT EMPLOYS HIGH –RISK ARTIFICIAL 25 INTELLIGENCE SHALL C ONDUCT REGULAR IMPAC T ASSESSMENTS , AS DETERMINED 26 BY THE GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET OF THE 27 GOVERNOR’S EXECUTIVE COUNCIL. 28 3.5–805. 3.5–806. 29 (A) THERE IS A GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET OF 30 THE GOVERNOR’S EXECUTIVE COUNCIL. 31 14 HOUSE BILL 1271 (B) THE PURPOSE OF THE SUBCABINET IS TO FACI LITATE AND ENHANCE 1 COOPERATION AMONG UN ITS OF STATE GOVERNMENT , IN CONSULTATION WITH 2 ACADEMIC INSTITU TIONS AND INDUSTRIES UTILIZING ARTIFICIAL INTELLIGENCE . 3 (C) THE SUBCABINET CONSISTS O F THE FOLLOWING MEMB ERS: 4 (1) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 5 (2) THE SECRETARY OF BUDGET AND MANAGEMENT , OR THE 6 SECRETARY’S DESIGNEE; 7 (3) THE SECRETARY OF GENERAL SERVICES, OR THE SECRETARY’S 8 DESIGNEE; 9 (4) THE SECRETARY OF LABOR, OR THE SECRETARY’S DESIGNEE; 10 (5) THE SECRETARY OF COMMERCE, OR THE SECRETARY’S 11 DESIGNEE; 12 (6) THE DIRECTOR OF THE GOVERNOR’S OFFICE OF HOMELAND 13 SECURITY, OR THE DIRECTOR’S DESIGNEE; 14 (7) THE CHIEF PRIVACY OFFICER, OR THE CHIEF PRIVACY 15 OFFICER’S DESIGNEE; 16 (8) THE CHIEF DATA OFFICER, OR THE CHIEF DATA OFFICER’S 17 DESIGNEE; 18 (9) THE CHIEF INFORMATION SECURITY OFFICER, OR THE CHIEF 19 INFORMATION SECURITY OFFICER’S DESIGNEE; 20 (10) THE GOVERNOR’S SENIOR ADVISOR FOR RESPONSIBLE 21 ARTIFICIAL INTELLIGENCE , OR THE SENIOR ADVISOR’S DESIGNEE; AND 22 (11) ANY OTHER MEMBER OF THE GOVERNOR’S EXECUTIVE COUNCIL, 23 APPOINTED BY THE GOVERNOR. 24 (D) THE SECRETARY SHALL CHAI R THE SUBCABINET. 25 (E) THE SUBCABINET SHALL : 26 (1) DEVELOP STRATEGY , POLICY, AND MONITORING PROCE SSES FOR 27 RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AN D 28 ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 29 HOUSE BILL 1271 15 (2) OVERSEE THE STATE’S IMPLEMENTATIO N OF: 1 (I) ARTIFICIAL INTELLIGE NCE INVENTORY ; 2 (II) DATA INVENTORY ; 3 (III) ARTIFICIAL INTELLIGE NCE IMPACT ASSESSMEN TS; 4 (IV) MONITORING OF ARTIFI CIAL INTELLIGENCE IN VOLVING A 5 HIGH–RISK ACTION; AND 6 (III) MONITORING OF HIGH –RISK ARTIFICIAL INTELLIGENCE ; 7 AND 8 (V) (IV) COMPLIANCE WITH STATE POLICIES AND 9 PROCEDURES ; 10 (3) SUPPORT ARTIFICIAL I NTELLIGENCE AND DATA INNOVATION 11 ACROSS UNITS OF STATE GOVERNMENT AND IN PRIVATE SECTO R ENTERPRISE BY :; 12 (I) IDENTIFYING AND PRIO RITIZING BEST USES OF ARTIFICIAL 13 INTELLIGENCE IN EACH UNIT OF STATE GOVERNMENT AND IN PRIVATE SECTOR 14 ENTERPRISE; 15 (II) TESTING PROOFS OF CO NCEPT OF PRIORITY AR TIFICIAL 16 INTELLIGENCE USE IN PROTOTYPING ; 17 (III) REDUCING BARRIERS TO THE RESPONSIBLE USE OF 18 ARTIFICIAL INTEL LIGENCE AND STATE DATA; 19 (IV) DEVELOPING SUCCESSFU L ARTIFICIAL INTELLI GENCE 20 PILOTS INTO PRODUCTI ON; AND 21 (V) TRAINING AND WORKFOR CE DEVELOPMENT ; 22 (4) DEVELOP AND IMPLEMEN T A COMPREHENSIVE AC TION PLAN FOR 23 RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AND 24 ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 25 (5) ESTABLISH PARTNERSHI PS, MEMORANDA OF UNDERST ANDING, 26 AND CONTRACTS TO SUP PORT THE AIMS OF THI S SECTION; 27 (6) PROMOTE ARTIFICIAL I NTELLIGENCE KNOWLEDG E, SKILLS, AND 28 TALENT IN STATE GOVERNMENT BY: 29 16 HOUSE BILL 1271 (I) IDENTIFYING AND OFFE RING TRAINING PROGRA MS FOR 1 STATE WORKERS ON THE USE OF ARTIFICIAL IN TELLIGENCE AND PARTI CULARLY 2 GENERATIVE ARTIFICIA L INTELLIGENCE ; AND 3 (II) EXPLORING WAYS TO PR OVIDE EXTERNAL ARTIF ICIAL 4 INTELLIGENCE TALENT AN OPPORTUNITY TO SE RVE THE STATE AND UNITS OF 5 STATE GOVERNMENT IN T ARGETED, SHORT–TERM PROJECTS , INCLUDING BY 6 LEVERAGING INSTITUTI ONS OF HIGHER EDUCAT ION OR INDUSTRY ; AND 7 (7) IDENTIFY ARTIFICIAL INTELLIGE NCE USE CASES AND BU ILD 8 FOUNDATIONAL INFRAST RUCTURE BY REQUIRING : 9 (I) THE DEPARTMENT TO EVALUAT E RELEVANT 10 INFRASTRUCTURE TO SA FELY, SECURELY, AND EFFICIENTLY TEST ARTIFICIAL 11 INTELLIGENCE PROOFS OF CONCEPT AND PILOT S; 12 (II) THE DEPARTMENT OF GENERAL SERVICES, IN 13 CONSULTATION WITH TH E DEPARTMENT , TO CREATE A MODEL FO R RUNNING AND 14 PROCURING ARTIFICIAL INTELLIGENCE PROOFS OF CONCEPT AND PILOT S, IN 15 ACCORDANCE WITH STATE LAWS, REGULATIONS , AND POLICIES; AND 16 (III) THE DEPARTMENT , IN CONSULTATION WITH TH E 17 SUBCABINET, TO COORDINATE WITH A GENCIES TO PROVIDE S UPPORT IN 18 IDENTIFYING AND PRIO RITIZING USE CASES A ND EXECUTING PROOFS OF CONCEPT 19 AND PILOTS ALIGNED W ITH THE GOVERNOR’S PRIORITIES. 20 (F) THE GOVERNOR SHALL PROVID E THE SUBCABINET W ITH SUFFICIENT 21 RESOURCES TO PERFORM THE FUNCTIONS OF THI S SECTION. 22 (G) FOR EACH FISCAL YEAR , THE GOVERNOR MAY INCLUDE IN THE ANNUAL 23 BUDGET BILL AN APPRO PRIATION OF UP TO $3,000,000 FOR PARTNERSHIPS AND 24 CONTRACTS TO SUPPORT THE FUNCTIONS REQUIR ED IN THIS SECTION. 25 12–101. 26 (a) This section does not apply to: 27 (1) capital expenditures by the Department of Transportation or the 28 Maryland Transportation Authority, in connection with State roads, bridges, or highways, 29 as provided in § 12–202 of this title; [or] 30 (2) procurements by the Department of General Services AND THE 31 DEPARTMENT OF INFORMATION TECHNOLOGY for the purpose of modernizing 32 HOUSE BILL 1271 17 INFORMATION TECHNOLO GY AND cybersecurity infrastructure for the State valued 1 below $1,000,000; OR 2 (3) COMPETITIVE P ROOF OF CONCEPT PROC UREMENTS VALUED 3 BELOW $1,000,000 MADE UNDER § 13–116 OF THIS ARTICLE . 4 (b) (1) The Board may control procurement by units. 5 (2) To implement the provisions of this Division II, the Board may: 6 (i) set policy; 7 (ii) adopt regulations, in accordance with Title 10, Subtitle 1 of the 8 State Government Article; and 9 (iii) establish internal operational procedures consistent with this 10 Division II. 11 (3) The Board shall ensure that the regulations of the primary 12 procurement units provide for procedures that are consistent with this Division II and Title 13 13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the 14 circumstances of a particular type of procurement or a particular unit do not require 15 otherwise, are substantially the same. 16 (4) The Board may delegate any of its authority that it determines to be 17 appropriate for delegation and may require prior Board approval for specified procurement 18 actions. 19 (5) Except as limited by the Maryland Constitution, the Board may 20 exercise any control authority conferred on a primary procurement unit by this Division II 21 and, to the extent that its action conflicts with the action of the primary procurement unit, 22 the action of the Board shall prevail. 23 (c) On or before December 1 each year, the Department of General Services shall 24 submit a report to the Board on procurements made under subsection (a)(2) of this section 25 that shall include for each procurement: 26 (1) the purpose of the procurement; 27 (2) the name of the contractor; 28 (3) the contract amount; 29 (4) the method of procurement utilized; 30 (5) the number of bidders who bid on the procurement; and 31 18 HOUSE BILL 1271 (6) the contract term. 1 (D) ON OR BEFORE DECEMBER 1 EACH YEAR, THE DEPARTMENT OF 2 GENERAL SERVICES SHALL SUBMIT A REPORT TO T HE BOARD ON PROCUREMENTS 3 MADE UNDER SUBSECTIO N (A)(3) OF THIS SECTION THAT SHALL INCLUDE FOR EA CH 4 PROCUREMENT : 5 (1) THE PURPOSE OF THE P ROCUREMENT ; 6 (2) THE NAME OF THE CONT RACTOR; 7 (3) THE CONTRACT AMOUNT ; 8 (4) THE NUMBER OF P ROPOSALS RECEIVED ON THE PROCUREMENT ; 9 AND 10 (5) THE CONTRACT TERM . 11 13–116. 12 (A) IN THIS SECTION, “PROOF OF CONCEPT ” MEANS A TEST, EVALUATION, 13 DEMONSTRATION , OR PILOT PROJECT OF A GOOD OR SERVICE GOOD, SERVICE, OR 14 TECHNOLOGY IN A REAL–WORLD ENVIRONMENT TO EVALUATE WHETHER THE GOOD 15 OR SERVICE GOOD, SERVICE, OR TECHNOLOGY CAN BE SUCCESSFULLY DEPLOYED 16 AND IS BENEFICIAL TO THE STATE. 17 (B) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IS A FORMAL 18 COMPETITIVE PROCUREM ENT METHOD TH AT MAY BE USED TO SO LICIT PROPOSALS 19 FOR THE CONDUCT OF A PROOF OF CONCEPT PRI OR TO FULL IMPLEMENT ATION 20 WHEN THE HEAD OF A U NIT DETERMINES THE P ROCESS TO BE APPROPR IATE AND IN 21 THE BEST INTERESTS O F THE UNIT, INCLUDING: 22 (I) TESTING SOFTWARE –AS–A–SERVICE OR OFF–THE–SHELF 23 SOFTWARE; 24 (II) TESTING NEW, INNOVATIVE PRODUCTS OR SERVICES; OR 25 (III) TESTING A PRODUCT OR SERVICE CONCEPTUALIZ ED OR 26 CONCEIVED OF BY A UN IT OF STATE GOVERNMENT . 27 (2) (I) AFTER OBTAINING THE A PPROVAL OF THE HEAD OF THE 28 UNIT AND BEFORE COND UCTING A COMPETITIVE PROOF OF CONCEPT 29 PROCUREMENT , THE UNIT SHALL OBTAI N APPROVAL FROM THE SECRETARY OF 30 INFORMATION TECHNOLOGY , OR THE SECRETARY’S DESIGNEE. 31 HOUSE BILL 1271 19 (II) THE SECRETARY OF INFORMATION TECHNOLOGY MAY 1 GRANT APPROVAL FOR A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IF THE 2 UNIT: 3 1. HAS SUFFICIENT INTER NAL RESOURCES TO MAN AGE 4 THE PROOF OF CONCEPT , INCLUDING HUMAN CAPI TAL, SUBJECT MATTER 5 EXPERTISE, AND TECHNOLOGICAL IN FRASTRUCTURE , OR HAS THE MEANS TO 6 OBTAIN THESE RESOURC ES; AND 7 2. ENTERS INTO A MEMORA NDUM OF UNDERSTANDIN G 8 WITH THE DEPARTMENT OF INFORMATION TECHNOLOGY THAT REQUI RES 9 REGULAR STATUS UPDAT ES, VENDOR CAPACITY , AND ANY OTHER INFORM ATION 10 NECESSARY FOR THE DEPARTMENT OF INFORMATION TECHNOLOGY TO EVALUAT E 11 WHETHER THE PROOF OF CONCEPT CAN BE SUCCE SSFULLY DEPLOYED AND IS 12 BENEFICIAL TO THE STATE. 13 (C) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT MAY BE 14 CONDUCTED THROUGH TH E ISSUANCE OF A SOLI CITATION BY ANY METH OD OF 15 PROCUREMENT AUTHORIZE D UNDER THIS DIVISION II. 16 (2) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT 17 SOLICITATION SHALL I NCLUDE A STATEMENT O F: 18 (I) THE SCOPE OF WORK OR PROJECT DESCRIPTION , 19 INCLUDING THE INTEND ED USE, QUANTITY, ESTIMATED TIME FRAME FOR THE 20 PROOF OF CONCEPT , AND ANTICIPATED NUMB ER OF PROOF OF CONCE PT AWARDS 21 THAT WILL BE MADE ; AND 22 (II) THE FACTORS , INCLUDING PRICE , THAT WILL BE USED IN 23 EVALUATING PROPOSALS AND THE RELATIVE IMP ORTANCE OF EACH . 24 (3) A SOLICITATION MAY BE DISTRIBUTED TO VE NDORS KNOWN TO 25 OFFER GOODS OR SERVI CES WITHIN THE SCOPE OF THE PROOF OF CONC EPT AND 26 SHALL, EXCEPT FOR PROCUREME NTS UNDER $15,000 NOT OTHERWISE REQUIR ED 27 BY LAW TO BE POSTED , BE POSTED ON EMARYLAND MARKETPLACE ADVANTAGE, IN 28 ACCORDANCE WITH THE POLICIES AND P ROCEDURES UNDER SUBS ECTION (G) OF 29 THIS SECTION. 30 (D) AFTER RECEIPT OF PROP OSALS BUT BEFORE AWA RD OF A 31 PROCUREMENT CONTRACT , A UNIT MAY: 32 (1) CONDUCT DISCUSSIONS WITH AN OFFEROR TO E NSURE FULL 33 UNDERSTANDING OF : 34 20 HOUSE BILL 1271 (I) THE REQUIREMENTS OF THE UNIT, AS SET FORTH IN THE 1 REQUEST FOR PROPOSAL S; AND 2 (II) THE PROPOSAL SUBMITT ED BY THE OFFEROR ; AND 3 (2) REQUEST PRODUCT SAMP LES FOR TESTING BY T HE UNIT OR A 4 DEMONSTRATION OF A P RODUCT OR SERVICE AN D USE THESE SAMPLES OR 5 DEMONSTRATIONS IN IT S EVALUATION PROCESS. 6 (E) A REQUEST FOR PRODUCT SAMPLES FOR TESTING OR DEMONSTRATION 7 MADE UNDER SUBSECTIO N (D)(2) OF THIS SECTION SHAL L BE ISSUED TO ALL 8 OFFERORS DEEMED REAS ONABLE AT THE TIME O F THE REQUEST . 9 (F) A UNIT MAY: 10 (1) AWARD ONE OR MORE OF THE PROPOSAL S A CONTRACT FOR THE 11 PROOF OF CONCEPT ; AND 12 (2) PROVIDE AN OPTION FO R THE STATE TO PROCEED WITH A FULL 13 IMPLEMENTATION OF AN AWARDED PROPOSAL . 14 (G) A VENDOR AWARDED A PRO OF OF CONCEPT PROCUR EMENT SHALL BE 15 ELIGIBLE TO BID ON A PROCUREMENT TO IMPLE MENT A PROPOSAL RELATED TO 16 THE PROOF OF CONCEPT PROCUREMENT . 17 (H) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH 18 THE DEPARTMENT OF INFORMATION TECHNOLOGY , SHALL ADOPT POLICIES AND 19 PROCEDURES FOR THE D EVELOPMENT AND IMPLE MENTATION OF COMPETI TIVE 20 PROOF OF CONCEPT PROCUREMEN TS. 21 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 22 2024, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council, 23 in consultation with the appropriate stakeholders, shall submit an interim report and 24 recommendations to the Governor and, in accordance with § 2 –1257 of the State 25 Government Article, the General Assembly on the risks and opportunities and associated 26 recommendations related to: 27 (1) use of artificial intelligence to support job and business creation and 28 growth in the State; 29 (2) in collaboration with the Maryland Department of Labor and, as 30 appropriate, external experts, workers, labor unions, businesses, and civil society, use of 31 artificial intelligence by the State workforce, including opportunities to upskill the 32 workforce; 33 HOUSE BILL 1271 21 (3) in consultation with the Maryland Department of Emergency 1 Management, the Public Service Commission, the Department of the Environment, and the 2 Department of Transportation, use of artificial intelligence in critical infrastructure and 3 guidelines for owners and operators to incorporate risk management into critical 4 infrastructure, including mapping emergent cyber and physical security and resiliency 5 risks to the State infrastructure and residents stemming from artificial intelligence; 6 (4) in consultation with the Maryland Department of Health, the U.S. 7 Department of Veterans Affairs, and the U.S. Department of Homeland Security, use of 8 systems that employ artificial intelligence in health care delivery and human services; 9 (5) in consultation with the Department of Information Technology Office 10 of Security Management and the Chief Privacy Officer, use of artificial intelligence in the 11 discovery and remediation of vulnerabilities in cybersecurity and data management across 12 State and local government, including school systems; 13 (6) in consultation with the State Chief Privacy Officer and an independent 14 contractor identified by the Subcabinet, data privacy, specifically regarding the potential 15 to train systems that employ artificial intelligence; 16 (7) in consultation with the Maryland Department of Labor, the 17 Department of Commerce, and the Governor’s Office of Small, Minority, and Women 18 Business Affairs, use of artificial intelligence in workforce training and hiring of talent with 19 expertise in artificial intelligence, employment practices, and workforce development 20 implications; 21 (8) in consultation with the Office of the Attorney General and the Judicial 22 Branch, use of artificial intelligence in the criminal justice system, including whether and 23 how such technology should be used, in what contexts, and with what safeguards; 24 (9) the procurement of systems that employ artificial intelligence, 25 including efforts to increase competition and assurance that contracts retain sufficient data 26 privacy protection against vendor lock–in; 27 (10) use of artificial intelligence by occupations licensed and certified by the 28 State, in consultation with the boards, identifying ways for the regulatory board to identify 29 and manage the risks of opportunities of artificial intelligence and determine appropriate 30 permitted use and supervision by licensees; and 31 (11) use of artificial intelligence in local school systems, including 32 recommendations to the State on the responsible and productive use of artificial 33 intelligence based on a review of the federal Department of Education Office of Educational 34 Technology’s report entitled “Artificial Intelligence and the Future of Teaching and 35 Learning: Insights and Recommendations”, in collaboration with the State Department of 36 Education. 37 22 HOUSE BILL 1271 SECTION 2. AND BE IT FURTHER ENACTED, That: 1 (a) The Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive 2 Council, in consultation with the appropriate units of State government, shall: 3 (1) develop a roadmap to review the risks and opportunities associated 4 with the use of artificial intelligence in State services; and 5 (2) on or before December 1, 2024, submit the roadmap to the Governor 6 and, in accordance with § 2–1257 of the State Government Article, the General Assembly. 7 (b) The roadmap developed under subsection (a) of this section shall include: 8 (1) a plan to study the use of artificial intelligence: 9 (i) to support job and business creation and growth in the State; 10 (ii) by the State workforce, including opportunities to upskill the 11 workforce; 12 (iii) in critical infrastructure, including guidelines for owners and 13 operators to incorporate risk management into critical infrastructure; 14 (iv) in health care delivery and human services; 15 (v) in the discovery and remediation of vulnerabilities in 16 cybersecurity and data management across State and local government, including school 17 systems; 18 (vi) in data privacy, specifically regarding the ability to train systems 19 that employ artificial intelligence; 20 (vii) in workforce training; 21 (viii) in the criminal justice system and for public safety purposes, 22 including whether and how such technology should be used, in what contexts, and with 23 what safeguards; 24 (ix) by occupations licensed and certified by the State, including 25 identifying ways for State regulatory boards to identify and manage the risks and 26 opportunities of artificial intelligence and determine appropriate permitted use and 27 supervision of licensees; 28 (x) in local school systems, including recommendations to the State 29 on the responsible and productive use of artificial intelligence; 30 HOUSE BILL 1271 23 (xi) in the conduct of elections, including reducing or eliminating the 1 spread of misinformation; and 2 (xii) any other State service identified by the Subcabinet; 3 (2) a plan to study: 4 (i) the hiring of talent with expertise in artificial intelligence, 5 employment practices, and workforce development implications; 6 (ii) methods to ensure that there is diversity in contract awards and 7 training programs related to artificial intelligence in the State, including racial diversity; 8 and 9 (iii) the procurement of systems that employ artificial intelligence, 10 including efforts to increase competition and assurance that contracts retain sufficient data 11 privacy protection against vendor lock–in; 12 (3) a prioritization of the study topics listed under this subsection, 13 including the methodology for the prioritization; 14 (4) a list of appropriate stakeholders identified to participate in each study 15 topic; and 16 (5) the projected timeline to complete each study topic. 17 SECTION 3. AND BE IT FURTHER ENACTED, That, on or before December 1, 18 2025, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council 19 shall submit a report and recommendations to the Governor and, in accordance with § 20 2–1257 of the State Government Article, the General Assembly on the sufficiency of the 21 Subcabinet to accomplish the artificial intelligence goals of the State and the efficacy of the 22 potential transition of the Subcabinet to a department or independent unit of State 23 government. 24 SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the 25 Maryland General Assembly, contingent on the passage of Chapter __ (S.B. 955/H.B. 1174) 26 of the Acts of the General Assembly of 2024 by both Houses of the General Assembly, that 27 the Governor’s Artificial Intelligence Subcabinet consult with the Technology Advisory 28 Commission established under Chapter __ (S.B. 955/H.B. 1174) of the Acts of the General 29 Assembly of 2024 in the performance of its duties under Sections 1 and 2 of this Act. 30 SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 31 July 1, 2024. 32