Maryland 2024 Regular Session

Maryland House Bill HB1271 Latest Draft

Bill / Engrossed Version Filed 04/04/2024

                             
 
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