EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1519* HOUSE BILL 1519 P2, F2 4lr3524 CF SB 1179 By: Delegate Kerr Introduced and read first time: February 26, 2024 Assigned to: Rules and Executive Nominations A BILL ENTITLED AN ACT concerning 1 Procurement – University System of Maryland, Morgan State University, and St. 2 Mary’s College of Maryland 3 FOR the purpose of authorizing the Board of Regents of the University System of Maryland 4 to amend in a certain manner certain policies and procedures approved by the Board 5 of Public Works and the Administrative, Executive, and Legislative Review 6 Committee of the General Assembly governing procurements by the University 7 System of Maryland; providing that the University System of Maryland, Morgan 8 State University, and St. Mary’s College of Maryland are not required to submit a 9 contract for capital improvements or services for review and approval by the Board 10 of Public Works under certain circumstances; and generally relating to procurements 11 by the University System of Maryland, Morgan State University, and St. Mary’s 12 College of Maryland. 13 BY repealing and reenacting, without amendments, 14 Article – Education 15 Section 12–101(b)(1), (2), and (10) 16 Annotated Code of Maryland 17 (2022 Replacement Volume and 2023 Supplement) 18 BY repealing and reenacting, with amendments, 19 Article – Education 20 Section 12–112 21 Annotated Code of Maryland 22 (2022 Replacement Volume and 2023 Supplement) 23 BY repealing and reenacting, with amendments, 24 Article – State Finance and Procurement 25 Section 11–203(e) 26 Annotated Code of Maryland 27 (2021 Replacement Volume and 2023 Supplement) 28 2 HOUSE BILL 1519 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Education 3 12–101. 4 (b) (1) In this title the following words have the meanings indicated. 5 (2) “Board” or “Board of Regents” means the Board of Regents of the 6 University System of Maryland. 7 (10) “University” or “University of Maryland System” means the University 8 System of Maryland. 9 12–112. 10 (a) (1) Except as provided in § 11–203(e) of the State Finance and Procurement 11 Article, the University is exempt from Division II of the State Finance and Procurement 12 Article. 13 (2) (i) 1. [Subject] EXCEPT AS PROVIDED IN 14 SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH AND SUBJECT to review and approval 15 by the Board of Public Works and the Administrative, Executive, and Legislative Review 16 Committee of the General Assembly, the Board of Regents shall develop policies and 17 procedures governing procurements by the University. 18 2. WITHOUT FURTHER APPRO VAL NECESSARY FROM 19 THE BOARD OF PUBLIC WORKS AND THE ADMINISTRATIVE , EXECUTIVE, AND 20 LEGISLATIVE REVIEW COMMITTEE OF THE GENERAL ASSEMBLY, THE BOARD OF 21 REGENTS MAY AMEND THE POLICIES AND PROCEDU RES THAT WERE PREVIO USLY 22 APPROVED IN ACCORDAN CE WITH SUBSUBPARAGR APH 1 OF THIS SUBPARAGRAPH . 23 3. THE BOARD OF REGENTS SHALL NOTIFY THE BOARD 24 OF PUBLIC WORKS AND THE ADMINISTRATIVE , EXECUTIVE, AND LEGISLATIVE 25 REVIEW COMMITTEE OF THE GENERAL ASSEMBLY AFTER MAKING ANY 26 AMENDMENTS TO THE PO LICIES AND PROCEDURE S IN ACCORDANCE WITH 27 SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH . 28 (ii) The policies and procedures, INCLUDING ANY AMENDM ENTS 29 TO THE POLICIES AND PROCEDURES , developed under subparagraph (i) of this 30 paragraph shall promote the purposes of the State procurement law as set forth in § 31 11–201 of the State Finance and Procurement Article. 32 (b) The Board of Regents shall develop an information technology plan for the 33 HOUSE BILL 1519 3 University System of Maryland that includes information technology policies and 1 standards, including policies and standards for information management and 2 telecommunication systems, that are functionally compatible with the State Information 3 Technology Plan established under Title 3, Subtitle 4 of the State Finance and Procurement 4 Article. 5 (c) By January 1, 2007, the Board of Regents shall develop a nonvisual access 6 clause for use in the procurement of computer–based instructional technology. 7 (d) The nonvisual access clause developed under subsection (c) of this section 8 shall be consistent with the standards developed by the Department of Budget and 9 Management in accordance with the provisions of § 3–412 of the State Finance and 10 Procurement Article. 11 Article – State Finance and Procurement 12 11–203. 13 (e) (1) In this subsection, “University” means the University System of 14 Maryland, Morgan State University, or St. Mary’s College of Maryland. 15 (2) Except as otherwise provided in this subsection, this Division II does 16 not apply to the University System of Maryland, Morgan State University, St. Mary’s 17 College of Maryland, or Baltimore City Community College. 18 (3) (i) A procurement by a University or Baltimore City Community 19 College shall comply with the policies and procedures developed by the University or 20 Baltimore City Community College and approved by the Board of Public Works and the 21 Administrative, Executive, and Legislative Review Committee of the General Assembly in 22 accordance with: 23 1. § 12–112 of the Education Article for the University 24 System of Maryland; 25 2. § 14–109 of the Education Article for Morgan State 26 University; 27 3. § 14–405(f) of the Education Article for St. Mary’s College 28 of Maryland; or 29 4. § 16–505.3 of the Education Article for Baltimore City 30 Community College. 31 (ii) 1. The review and approval of the Board of Public Works 32 shall be required for the following types of contracts with a value that exceeds [$1,000,000 33 for a University or] $500,000 for Baltimore City Community College: 34 4 HOUSE BILL 1519 A. capital improvements; and 1 B. services. 2 2. THE REVIEW AND APPROV AL OF THE BOARD OF 3 PUBLIC WORKS SHALL BE REQUIR ED FOR THE FOLLOWING TYPES OF 4 STATE–FUNDED CONTRACTS WIT H A VALUE THAT EXCEE DS $1,000,000 FOR A 5 UNIVERSITY: 6 A. CAPITAL IMPROVEMENTS ; AND 7 B. SERVICES. 8 3. In its review of a BALTIMORE CITY COMMUNITY 9 COLLEGE contract OR A STATE–FUNDED UNIVERSITY CONTRACT for services or capital 10 improvements with a value that exceeds $1,000,000, the Board of Public Works may request 11 the comments of the appropriate agencies, including the Department of Budget and 12 Management and the Department of General Services. 13 [3.] 4. For Baltimore City Community College contracts that are 14 not subject to the review and approval of the Board of Public Works under subsubparagraph 15 1 of this subparagraph: 16 A. contracts with a value of $100,000 or less shall be reviewed 17 and approved by the President of Baltimore City Community College or the President’s 18 designee; and 19 B. contracts with a value that exceeds $100,000 but does not 20 exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community 21 College. 22 (4) The policies of a University or Baltimore City Community College shall: 23 (i) to the maximum extent practicable, require the purchasing of 24 supplies and services in accordance with Title 14, Subtitle 1 of this article; 25 (ii) promote the purposes of the regulations adopted by the 26 Department of General Services governing the procurement of architectural and 27 engineering services; 28 (iii) promote the purposes of § 13–402 of the State Personnel and 29 Pensions Article; 30 (iv) to the maximum extent practicable, be similar to § 13–218.1 of 31 this article; and 32 HOUSE BILL 1519 5 (v) to the maximum extent practicable, require the procurement of 1 food in accordance with Title 14, Subtitle 7 of this article. 2 (5) (i) Except as provided in paragraph (7) of this subsection, the 3 following provisions of Division II of this article apply to a University and to Baltimore City 4 Community College: 5 1. § 11–205 of this subtitle (“Collusion”); 6 2. § 11–205.1 of this subtitle (“Falsification, concealment, 7 etc., of material facts”); 8 3. § 13 –219 of this article (“Required 9 clauses – Nondiscrimination clause”); 10 4. § 13–225 of this article (“Retainage”); 11 5. Title 14, Subtitle 3 of this article (“Minority Business 12 Participation”); 13 6. Title 14, Subtitle 7 of this article (“Certified Local Farm 14 and Fish Program”); 15 7. Title 15, Subtitle 1 of this article (“Procurement Contract 16 Administration”); 17 8. § 15–226 of this article (“Policy established; timing of 18 payments; notice upon nonpayment; disputes; appeals”); and 19 9. Title 16 of this article (“Suspension and Debarment of 20 Contractors”). 21 (ii) If a procurement violates the provisions of this subsection or 22 policies adopted in accordance with this subsection, the procurement contract is void or 23 voidable in accordance with the provisions of § 11–204 of this subtitle. 24 (6) (i) The State Board of Contract Appeals shall have authority over 25 contract claims related to procurement contracts awarded by: 26 1. the University System of Maryland before July 1, 1999; 27 2. Morgan State University before July 1, 2004; and 28 3. Baltimore City Community College before July 1, 2021. 29 (ii) At the election of the Board of Regents of the University System 30 of Maryland and subject to the approval of the Board of Public Works, the State Board of 31 6 HOUSE BILL 1519 Contract Appeals shall have authority over contract claims related to procurement 1 contracts awarded by the University after June 30, 1999. 2 (iii) At the election of the Board of Regents of Morgan State 3 University and subject to the approval of the Board of Public Works, the State Board of 4 Contract Appeals shall have authority over contract claims related to procurement 5 contracts awarded by the University after June 30, 2004. 6 (iv) At the election of the Board of Trustees of St. Mary’s College of 7 Maryland and subject to the approval of the Board of Public Works, the State Board of 8 Contract Appeals shall have authority over contract claims related to procurement 9 contracts awarded by St. Mary’s College of Maryland after June 30, 2006. 10 (v) At the election of the Board of Trustees of Baltimore City 11 Community College and subject to the approval of the Board of Public Works, the State 12 Board of Contract Appeals shall have authority over contract claims related to procurement 13 contracts awarded by Baltimore City Community College after June 30, 2021. 14 (7) Except with regard to the provisions of § 15–113 of this article, 15 paragraphs (3), (4), and (5) of this subsection do not apply to: 16 (i) procurement by a University or Baltimore City Community 17 College from: 18 1. another unit; 19 2. a political subdivision of the State; 20 3. an agency of a political subdivision of the State; 21 4. a government, including the government of another state, 22 of the United States, or of another country; 23 5. an agency or political subdivision of a government; or 24 6. a bistate, multistate, bicounty, or multicounty 25 governmental agency; 26 (ii) procurement by a University in support of enterprise activities 27 for the purpose of: 28 1. direct resale; 29 2. remanufacture and subsequent resale; or 30 3. procurement by the University for overseas programs; or 31 HOUSE BILL 1519 7 (iii) procurement by the University System of Maryland for: 1 1. services of managers to invest, in accordance with the 2 management and investment policies adopted by the Board of Regents of the University 3 System of Maryland, gift and endowment assets received by the University System of 4 Maryland in accordance with § 12–104(e) of the Education Article; or 5 2. expenditures to manage, maintain, and enhance, in 6 accordance with the management and investment policies adopted by the Board of Regents 7 of the University System of Maryland, the value of gift and endowment assets received by 8 the University System of Maryland in accordance with § 12–104(e) of the Education Article. 9 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10 October 1, 2024. 11