EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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. *sb0667* SENATE BILL 667 P2 4lr2509 CF HB 292 By: Senator Charles Introduced and read first time: January 29, 2024 Assigned to: Budget and Taxation Committee Report: Favorable with amendments Senate action: Adopted Read second time: February 26, 2024 CHAPTER ______ AN ACT concerning 1 State Procurement – Maryland State Board of Contract Appeals – Attorney’s 2 Fees 3 FOR the purpose of requiring authorizing the Maryland State Board of Contract Appeals 4 to award a prospective bidder or offeror, a bidder, or an offeror an interested party 5 reasonable costs of filing and pursuing a protest, including attorney’s fees, if an 6 appeal is sustained and there is a violation of law or regulation; requiring 7 authorizing the Maryland State Board of Contract Appeals to award a contractor 8 under any State contract the reasonable costs of filing and pursuing a claim, 9 including attorney’s fees, if procurement unit personnel act the unit acts in bad faith, 10 without justification, or in violation of law or regulation; and generally relating to 11 State procurement contract claims and appeals. 12 BY repealing and reenacting, without amendments, 13 Article – State Finance and Procurement 14 Section 15–201 15 Annotated Code of Maryland 16 (2021 Replacement Volume and 2023 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – State Finance and Procurement 19 Section 15–215, 15–221.1, and 15–221.2 20 Annotated Code of Maryland 21 (2021 Replacement Volume and 2023 Supplement) 22 2 SENATE BILL 667 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – State Finance and Procurement 3 15–201. 4 In this subtitle, “Appeals Board” means the Maryland State Board of Contract 5 Appeals. 6 15–215. 7 (a) In this Part III of this subtitle the following words have the meanings 8 indicated. 9 (b) (1) “Contract claim” means a claim that relates to a procurement contract. 10 (2) “Contract claim” includes a claim about the performance, breach, 11 modification, or termination of the procurement contract. 12 (C) “INTERESTED PARTY ” MEANS AN ACTUAL OR A PROSPECTIVE BIDDER , 13 OFFEROR, OR CONTRACTOR THAT M AY BE AGGRIEVED BY T HE SOLICITATION OR 14 AWARD OF A CONTRACT , OR BY THE PROTEST . 15 [(c)] (D) (1) “Protest” means a complaint that relates to the formation of a 16 procurement contract. 17 (2) “Protest” includes a complaint about: 18 (i) the qualifications of a bidder or offeror; or 19 (ii) the determination of the successful bidder or offeror. 20 15–221.1. 21 (a) The [Board of Contract Appeals may] APPEALS BOARD SHALL MAY award 22 a prospective bidder or offeror, a bidder, or an offeror AN INTERESTED PARTY the 23 reasonable costs of filing and pursuing a protest, [not] including REASONABLE attorney’s 24 fees, if: 25 (1) the prospective bidder or offeror, bidder, or offeror INTERESTED 26 PARTY appeals the final action of an agency on a protest; 27 (2) the [Board of Contract Appeals] APPEALS BOARD sustains the appeal; 28 and 29 SENATE BILL 667 3 (3) the [Board of Contract Appeals] APPEALS BOARD finds that there has 1 been a violation of law or regulation. 2 (b) The [Board of Contract Appeals] APPEALS BOARD shall adopt regulations to 3 implement this section and to determine what constitutes reasonable costs of filing and 4 pursuing a protest. 5 15–221.2. 6 (a) This section [only] applies to a claim resulting under a contract [for 7 construction]. 8 (b) The Appeals Board [may] SHALL award to a contractor the reasonable costs 9 of filing and pursuing a claim, including reasonable attorney’s fees, if the Appeals Board 10 finds that the conduct of unit personnel, WITH OR WITHOUT A PR OCUREMENT OFFICER , 11 FINDS THAT THE CONDU CT OF THE UNIT in processing a contract claim is in bad faith 12 [or], without substantial justification, OR CONTRARY TO ANY PROVISION OF THIS 13 DIVISION II. IN VIOLATION OF LAW . 14 (c) The Appeals Board shall adopt regulations to implement this section. 15 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16 October 1, 2024. 17 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.