Maryland 2024 2024 Regular Session

Maryland Senate Bill SB818 Engrossed / Bill

Filed 03/15/2024

                     
 
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. 
          *sb0818*  
  
SENATE BILL 818 
S1, P2, K3   	4lr1621 
    	CF HB 1271 
By: Senators Hester, Gile, Augustine, Elfreth, Ellis, Feldman, Ferguson, Jackson, 
Lam, Rosapepe, Smith, Waldstreicher, West, and Zucker Zucker, Brooks, 
Lewis Young, Simonaire, M. Washington, and Watson 
Introduced and read first time: February 2, 2024 
Assigned to: Education, Energy, and the Environment 
Committee Report: Favorable with amendments 
Senate action: Adopted 
Read second time: February 29, 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 to adopt policies and procedures concerning 10 
the development, procurement, implementation deployment, use, and assessment of 11 
systems that employ artificial intelligence by units of State government; prohibiting 12 
a unit of State government from implementing deploying or using a system that 13 
employs artificial intelligence under certain circumstances beginning on a certain 14 
date; requiring a unit of State government to conduct certain regular impact 15 
assessments under certain circumstances; exempting certain public institutions of 16 
higher education from certain provisions; establishing the Governor’s Artificial 17 
Intelligence Subcabinet of the Governor’s Executive Council; establishing 18 
competitive proof of concept procurement as a formal competitive procurement 19 
method for the procurement of certain products and services; exempting certain 20 
competitive proof of concept procurements from oversight by the Board of Public 21 
Works; requiring the Department of General Services, in consultation with the 22 
Department of Information Technology, to develop certain policies and procedures 23  2 	SENATE BILL 818  
 
 
for the development and implementation of competitive proof of co ncept 1 
procurements; requiring the Subcabinet to develop a certain roadmap; and generally 2 
relating to the use of artificial intelligence by units of State government. 3 
 
BY repealing and reenacting, without amendments, 4 
 Article – State Finance and Procurement 5 
 Section 3.5–101(a), (c), (d), and (f) 6 
 Annotated Code of Maryland 7 
 (2021 Replacement Volume and 2023 Supplement) 8 
 
BY repealing and reenacting, with amendments, 9 
 Article – State Finance and Procurement 10 
 Section 3.5–301, 3.5–303(a), and 12–101 11 
 Annotated Code of Maryland 12 
 (2021 Replacement Volume and 2023 Supplement) 13 
 
BY adding to 14 
 Article – State Finance and Procurement 15 
Section 3.5–318; 3.5–801 through 3.5–805 3.5–806 to be under the new subtitle 16 
“Subtitle 8. Artificial Intelligence”; and 13–116 17 
 Annotated Code of Maryland 18 
 (2021 Replacement Volume and 2023 Supplement) 19 
 
Preamble 20 
 
 WHEREAS, Artificial intelligence is transforming society and work, and the pace of 21 
that change will present new opportunities and risks for the State’s residents, workers, and 22 
economy; and 23 
 
 WHEREAS, The State must ensure the responsible, ethical, beneficial, and 24 
trustworthy use of artificial intelligence in State government; and 25 
 
 WHEREAS, The State is home to a rich and growing artificial intelligence ecosystem 26 
of academic, industry, government, and civil society experts, researchers, builders, 27 
organizers, and stakeholders; and 28 
 
 WHEREAS, To foster an environment for innovation while respecting individuals, 29 
employees, and civil rights, as artificial intelligence technologies are developed and evolve, 30 
the technologies should be analyzed and monitored by government officials, industry 31 
experts, consumer protection advocates, and other stakeholders; and 32 
 
 WHEREAS, Given the rapid rate of change in artificial intelligence technologies and 33 
industry, the State must chart a principled yet adaptable, pragmatic path forward, so that 34 
the technologies’ benefits can be confidently harnessed on behalf of Marylanders and in 35 
service of the Governor’s mission to Leave No One Behind; and 36 
   	SENATE BILL 818 	3 
 
 
 WHEREAS, Leaders across State government share a common interest in 1 
establishing effective artificial intelligence governance and are committed to working 2 
together to develop the legal and policy framework for its responsible use in the State; and 3 
 
 WHEREAS, Automated systems should be safe and effective, developed with 4 
consultation from diverse communities, stakeholders, and domain experts to identify 5 
concerns, risks, and potential impacts of the systems; and 6 
 
 WHEREAS, Designers, developers, and deployers of automated systems should take 7 
proactive and continuous measures to protect individuals and communities from 8 
algorithmic discrimination and to use and design systems in an equitable way; and 9 
 
 WHEREAS, Designers, developers, and deployers of automated systems should seek 10 
permission and respect decisions regarding collection, use, access, transfer, and deletion of 11 
data in appropriate ways and to the greatest extent possible; where not possible, alternative 12 
privacy by design safeguards should be used; and 13 
 
 WHEREAS, Designers, developers, and deployers of automated systems should 14 
provide generally accessible plain language documentation including clear descriptions of 15 
the overall system functioning and the role automation plays, notice that such systems are 16 
in use, the individual or organization responsible for the system, and explanations of 17 
outcomes that are clear, timely, and accessible; and 18 
 
 WHEREAS, Designers, developers, and deployers of automated systems should 19 
consider the specific types of actions for which a human alternative is appropriate, 20 
commensurate with the magnitude of the action and risk of harm, along with the extent to 21 
which a human alternative would be beneficial to individuals and the public interest; now, 22 
therefore, 23 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 
That the Laws of Maryland read as follows: 25 
 
Article – State Finance and Procurement 26 
 
3.5–101. 27 
 
 (a) In this title the following words have the meanings indicated. 28 
 
 (c) “Department” means the Department of Information Technology. 29 
 
 (d) “Secretary” means the Secretary of Information Technology. 30 
 
 (f) “Unit of State government” means an agency or unit of the Executive Branch 31 
of State government. 32 
 
3.5–301. 33 
  4 	SENATE BILL 818  
 
 
 (a) In this subtitle the following words have the meanings indicated. 1 
 
 (B) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANING STAT ED IN § 3.5–801 2 
OF THIS TITLE. 3 
 
 [(b)] (C) “Cybersecurity” means processes or capabilities wherein systems, 4 
communications, and information are protected and defended against damage, 5 
unauthorized use or modification, and exploitation. 6 
 
 [(c)] (D) “Cybersecurity strategy” means a vision, a plan of action, or guiding 7 
principles. 8 
 
 [(d)] (E) (1) “Development” means all expenditures for a new information 9 
technology system or an enhancement to an existing system including system: 10 
 
 (i) planning; 11 
 
 (ii) creation; 12 
 
 (iii) installation; 13 
 
 (iv) testing; and 14 
 
 (v) initial training. 15 
 
 (2) “Development” does not include: 16 
 
 (i) ongoing operating costs, software or hardware maintenance, 17 
routine upgrades, or modifications that merely allow for a continuation of the existing level 18 
of functionality; or 19 
 
 (ii) expenditures made after a new or enhanced system has been 20 
legally accepted by the user and is being used for the business process for which it was 21 
intended. 22 
 
 [(e)] (F) “Fund” means the Major Information Technology Development Project 23 
Fund. 24 
 
 [(f)] (G) “Information technology” means all electronic information processing, 25 
including: 26 
 
 (1) maintenance; 27 
 
 (2) telecommunications; 28 
 
 (3) hardware; 29   	SENATE BILL 818 	5 
 
 
 
 (4) software; and 1 
 
 (5) associated services. 2 
 
 [(g)] (H) “Information technology services” means information provided by 3 
electronic means by or on behalf of a unit of State government. 4 
 
 [(h)] (I) “Major information technology development project” means any 5 
information technology development project that meets one or more of the following 6 
criteria: 7 
 
 (1) the estimated total cost of development equals or exceeds $1,000,000; 8 
 
 (2) the project is undertaken to support a critical business function 9 
associated with the public health, education, safety, or financial well–being of the citizens 10 
of Maryland; or 11 
 
 (3) the Secretary determines that the project requires the special attention 12 
and consideration given to a major information technology development project due to: 13 
 
 (i) the significance of the project’s potential benefits or risks; 14 
 
 (ii) the impact of the project on the public or local governments; 15 
 
 (iii) the public visibility of the project; or 16 
 
 (iv) other reasons as determined by the Secretary. 17 
 
 [(i)] (J) “Master plan” means the statewide information technology master plan 18 
and statewide cybersecurity strategy. 19 
 
 [(j)] (K) “Nonvisual access” means the ability, through keyboard control, 20 
synthesized speech, Braille, or other methods not requiring sight to receive, use, and 21 
manipulate information and operate controls necessary to access information technology in 22 
accordance with standards adopted under § 3.5–303(b) of this subtitle. 23 
 
 [(k)] (L) “Resource sharing” means the utilization of a State resource by private 24 
industry in exchange for the provision to the State of a communication service or other 25 
consideration. 26 
 
 [(l)] (M) “Systems development life cycle plan” means a plan that defines all 27 
actions, functions, or activities to be performed by a unit of State government in the 28 
definition, planning, acquisition, development, testing, implementation, operation, 29 
enhancement, and modification of information technology systems. 30 
  6 	SENATE BILL 818  
 
 
3.5–303. 1 
 
 (a) The Secretary is responsible for carrying out the following duties: 2 
 
 (1) developing, maintaining, revising, and enforcing information 3 
technology policies, procedures, and standards; 4 
 
 (2) providing technical assistance, advice, and recommendations to the 5 
Governor and any unit of State government concerning information technology matters; 6 
 
 (3) reviewing the annual project plan for each unit of State government to 7 
make information and services available to the public over the Internet; 8 
 
 (4) developing and maintaining a statewide information technology master 9 
plan that will: 10 
 
 (i) centralize the management and direction of information 11 
technology policy within the Executive Branch of State government under the control of the 12 
Department; 13 
 
 (ii) include all aspects of State information technology including 14 
telecommunications, security, data processing, and information management; 15 
 
 (iii) consider interstate transfers as a result of federal legislation and 16 
regulation; 17 
 
 (iv) ensure that the State information technology plan and related 18 
policies and standards are consistent with State goals, objectives, and resources, and 19 
represent a long–range vision for using information technology to improve the overall 20 
effectiveness of State government; 21 
 
 (v) include standards to assure nonvisual access to the information 22 
and services made available to the public over the Internet; and 23 
 
 (vi) allows a State agency to maintain the agency’s own information 24 
technology unit that provides for information technology services to support the mission of 25 
the agency; 26 
 
 (5) developing and maintaining a statewide cybersecurity strategy that 27 
will: 28 
 
 (i) centralize the management and direction of cybersecurity 29 
strategy within the Executive Branch of State government under the control of the 30 
Department; and 31 
 
 (ii) serve as the basis for budget allocations for cybersecurity 32 
preparedness for the Executive Branch of State government; 33   	SENATE BILL 818 	7 
 
 
 
 (6) adopting by regulation and enforcing nonvisual access standards to be 1 
used in the procurement of information technology services by or on behalf of units of State 2 
government in accordance with subsection (c) of this section; 3 
 
 (7) in consultation with the Maryland Cybersecurity Coordinating Council, 4 
advising and overseeing a consistent cybersecurity strategy for units of State government, 5 
including institutions under the control of the governing boards of the public institutions 6 
of higher education; 7 
 
 (8) advising and consulting with the Legislative and Judicial branches of 8 
State government regarding a cybersecurity strategy; 9 
 
 (9) in consultation with the Maryland Cybersecurity Coordinating Council, 10 
developing guidance on consistent cybersecurity strategies for counties, municipal 11 
corporations, school systems, and all other political subdivisions of the State; 12 
 
 (10) upgrading information technology and cybersecurity–related State 13 
government infrastructure; [and] 14 
 
 (11) annually evaluating: 15 
 
 (i) the feasibility of units of State government providing public 16 
services using artificial intelligence, machine learning, commercial cloud computer 17 
services, device–as–a–service procurement models, and other emerging technologies; and 18 
 
 (ii) the development of data analytics capabilities to enable  19 
data–driven policymaking by units of State government; AND 20 
 
 (12) CONDUCTING INVENTORI ES AND ONGOING ASSESSMENTS OF 21 
SYSTEMS THAT EMPLOY ARTIFICIAL INTELLIGE NCE THAT ARE USED BY A UNIT OF 22 
STATE GOVERNMENT AS R EQUIRED UNDER § 3.5–318 OF THIS SUBTITLE . 23 
 
3.5–318. 24 
 
 (A) ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAF TER, 25 
EACH UNIT OF STATE GOVERNMENT SHALL CON DUCT A DATA INVENTOR Y THAT 26 
IDENTIFIES DATA THAT MEETS THE CRITERIA E STABLISHED BY THE CHIEF DATA 27 
OFFICER AND THAT IS : 28 
 
 (1) (I) NECESSARY FOR THE OP ERATION OF THE UNIT ; OR 29 
 
 (II) OTHERWISE REQUIRED T O BE COLLECTED : 30 
 
 1. AS A CONDITION TO RECEIVE FEDE RAL FUNDS; OR 31 
  8 	SENATE BILL 818  
 
 
 2. BY FEDERAL OR STATE LAW; AND 1 
 
 (2) IN A FORM PRESCRIBED BY THE CHIEF DATA OFFICER, 2 
INCLUDING WHEN THE D ATA IS USED IN ARTIF ICIAL INTELLIGENCE . 3 
 
 (B) THE DEPARTMENT SHALL DEVE LOP AND PUBLISH GUID ANCE ON THE 4 
POLICIES AND PROCEDURES FOR THE INVENTORY . 5 
 
SUBTITLE 8. ARTIFICIAL INTELLIGENCE . 6 
 
3.5–801. 7 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 8 
INDICATED. 9 
 
 (B) (1) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 10 
PROCESS THAT FACILIT ATES DECISION MAKI NG. 11 
 
 (2) “ALGORITHMIC DECISION SYSTEM” INCLUDES DECISIONS 12 
DERIVED FROM MACHINE S, STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON 13 
PAPER. 14 
 
 (C) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM THAT : 15 
 
 (1) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES, MAKE 16 
PREDICTIONS, RECOMMENDATIONS , OR DECISIONS INFLUEN CING REAL OR VIRTUAL 17 
ENVIRONMENTS ; 18 
 
 (2) USES MACHINE AND HUM AN–BASED INPUTS TO PERC EIVE REAL 19 
AND VIRTUAL ENVIRONM ENTS AND ABSTRACTS T HOSE PERCEPTIONS INT O MODELS 20 
THROUGH ANALYSIS IN AN AUTOMATED MANNER ; AND 21 
 
 (3) USES MODEL INFERENCE TO FORMULATE OPTIONS FOR 22 
INFORMATION OR ACTIO N. 23 
 
 (D) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 24 
 
 (1) RESULT IN ANY UNLAWF UL DISCRIMINATION ; 25 
 
 (2) HAVE AN UNLAWFUL DIS PARATE IMPACT ON ANY INDIVIDUAL OR 26 
GROUP OF INDIVIDUALS ON THE BASIS OF ANY ACTUAL OR PERCEIVED 27 
CHARACTERISTIC ; OR 28 
   	SENATE BILL 818 	9 
 
 
 (3) HAVE A NEGATIVE IMPA CT ON THE HEALTH , SAFETY, OR  1 
WELL–BEING OF AN INDIVIDU AL.  2 
 
 (E) (D) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 3 
EVALUATION OF A SYST	EM THAT E MPLOYS RIGHTS–IMPACTING OR 4 
SAFETY–IMPACTING ARTIFICIAL INTELLIGE NCE. 5 
 
 (E) “PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N” MEANS: 6 
 
 (1) THE CONSTITUENT INST ITUTIONS OF THE UNIVERSITY SYSTEM 7 
OF MARYLAND AND THE UNIVERSITY OF MARYLAND CENTER FOR 8 
ENVIRONMENTAL SCIENCE; 9 
 
 (2) MORGAN STATE UNIVERSITY; OR 10 
 
 (3) ST. MARY’S COLLEGE OF MARYLAND. 11 
 
 (F) “RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS ARTIFICIAL 12 
INTELLIGENCE WHOSE O UTPUT SERVES AS A BA SIS FOR DECISION OR ACTION THAT 13 
HAS A LEGAL, MATERIAL, OR SIMILARLY SIGNIFI CANT EFFECT ON AN IN DIVIDUAL’S 14 
OR COMMUNITY ’S: 15 
 
 (1) CIVIL RIGHTS , CIVIL LIBERTIES , OR PRIVACY , INCLUDING 16 
FREEDOM OF SPEEC H, VOTING, HUMAN AUTONOMY , AND PROTECTIONS FROM 17 
DISCRIMINATION , EXCESSIVE PUNISHMENT , AND UNLAWFUL SURVEIL LANCE;  18 
 
 (2) EQUAL OPPORTUNITIES , INCLUDING EQUITABLE ACCESS TO 19 
EDUCATION, HOUSING, CREDIT, EMPLOYMENT , AND OTHER SITUATIONS WHERE 20 
CIVIL RIGHTS AND EQUAL OPPORTUNITY PR OTECTIONS APPLY ; OR 21 
 
 (3) ACCESS TO CRITICAL R ESOURCES OR SERVICES , INCLUDING 22 
HEALTH CARE , FINANCIAL SERVICES , SOCIAL SERVICES , TRANSPORTATION , 23 
NONDECEPTIVE INFORMA TION ABOUT GOODS AND SERVICES, AND GOVERNMENT 24 
BENEFITS OR PRIVILEG ES. 25 
 
 (G) “SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS ARTIFICIAL 26 
INTELLIGENCE THAT HA S THE POTENTIAL TO M EANINGFULLY IMPACT T HE SAFETY 27 
OF INDIVIDUALS AND C OMMUNITIES REGARDING : 28 
 
 (1) HUMAN LIFE OR WELL –BEING, INCLUDING LOSS OF LI FE, SERIOUS 29 
INJURY, BODILY HARM, BIOLOGICAL OR CHEMIC AL WEAPONS , OCCUPATIONAL 30 
HAZARDS, HARASSMENT OR ABUSE , OR MENTAL HEALTH ; 31 
  10 	SENATE BILL 818  
 
 
 (2) THE CLIMATE OR THE E NVIRONMENT , INCLUDING IRREVERSIB LE 1 
OR SIGNIFICANT ENVIR ONMENTAL DAMAGE ;  2 
 
 (3) CRITICAL INFRASTRUCT URE, INCLUDING THE INFRAS TRUCTURE 3 
FOR VOTING AND PROTE CTING THE INTEGRITY OF ELECTIONS; OR 4 
 
 (4) STRATEGIC ASSETS OR RESOURCES, INCLUDING INTELLECTU AL 5 
PROPERTY.  6 
 
3.5–802. 7 
 
 (A) THIS SUBTITLE APPLIES TO EACH PUBLIC SENIO R HIGHER EDUCATION 8 
INSTITUTION AND BALTIMORE CITY COMMUNITY COLLEGE IN A PARTNERSHIP FOR 9 
THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF ARTIFICIAL 10 
INTELLIGENCE WITH A UNIT OF STATE GOVERNMENT . 11 
 
 (B) EXCEPT AS PROVIDED IN § 3.5–804(D) OF THIS SUBTITLE , THIS 12 
SUBTITLE DOES NOT AP PLY TO ARTIFICIAL IN TELLIGENCE DEPLOYE D BY PUBLIC 13 
SENIOR HIGHER EDUCAT ION INSTITUTIONS OR BALTIMORE CITY COMMUNITY 14 
COLLEGE USED SOLELY F OR A RESEARCH OR ACA DEMIC PURPOSE , INCLUDING IN A 15 
PARTNERSHIP FOR THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF 16 
ARTIFICIAL INTELLIGE NCE WITH A UNIT OF STATE GOVERNMENT .  17 
 
 (C) A PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N OR BALTIMORE 18 
CITY COMMUNITY COLLEGE SHALL ESTABLI SH POLICIES AND PROC EDURES THAT 19 
ARE FUNCTIONALLY COM PATIBLE WITH THE POL ICIES AND PROCEDURES ADOPTED 20 
UNDER § 3.5–804(A) OF THIS SUBTITLE F OR ARTIFICIAL INTELL IGENCE DEPLOYED 21 
FOR AN OPERATIONS –RELATED PURPOSE . 22 
 
3.5–803.  23 
 
 (A) ON OR BEFORE DECEMBER 1, 2024 2025, AND ANNUALLY REGULARLY 24 
THEREAFTER , EACH UNIT OF STATE GOVERNMENT SHAL L: 25 
 
 (1) CONDUCT AN INVENTORY OF SYSTEMS THAT EMPL	OY  26 
RIGHTS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL INTELLIGE NCE; AND  27 
 
 (2) PROVIDE THE INVENTOR Y TO THE DEPARTMENT IN A FORMA T 28 
REQUIRED BY THE DEPARTMENT . 29 
 
 (B) FOR EACH SYSTEM , THE INVENTORY REQUIR ED BY THIS SECTION S HALL 30 
INCLUDE: 31 
 
 (1) THE NAME OF THE SY STEM; 32   	SENATE BILL 818 	11 
 
 
 
 (2) THE VENDOR THAT PROV IDED THE SYSTEM , IF APPLICABLE; 1 
 
 (3) A DESCRIPTION OF THE CAPABILITIES OF THE SYSTEM; 2 
 
 (4) A STATEMENT OF THE P URPOSE AND THE INTEN DED USES OF THE 3 
SYSTEM;  4 
 
 (5) WHETHER THE SYSTEM U NDERWENT AN IMPACT A SSESSMENT 5 
PRIOR TO BEING IMPLEMENTED DEPLOYED; 6 
 
 (6) WHETHER THE SYSTEM I S USED TO INDEPENDEN TLY MAKE A 7 
DECISION OR JUDGMENT OR TO INFORM OR SUPP ORT A DECISION OR JU DGMENT 8 
DETERMINED BY THE DEPARTMENT TO INVOLVE A HIGH–RISK ACTION  9 
RIGHTS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL INTELLIGE NCE; AND 10 
 
 (7) A DETERMINATION OF THE RISK THAT USE OF A S YSTEM MAY BE 11 
HIGH–RISK SUMMARY OF THE RESUL TS OF THE MOST RECEN T IMPACT ASSESSMENT . 12 
 
 (C) THE DEPARTMENT SHALL MAKE EACH INVENTORY REQUI RED BY THIS 13 
SECTION AN AGGREGATED STATEW IDE INVENTORY PUBLICLY AVAILABLE O N ITS 14 
WEBSITE.  15 
 
 (D) (1) THE DEPARTMENT MAY NOT MA KE PUBLICLY AVAILABL E ON THE 16 
DEPARTMENT ’S WEBSITE INFORMATIO N FROM THE INVENTORI ES REQUIRED BY 17 
THIS SECTION THAT RE LATE TO THE SAFETY A ND SECURITY OF STATE SYSTEMS IF 18 
THE PUBLICATION OF THE I NFORMATION IS LIKELY TO COMPROMISE THE SE CURITY 19 
OR INTEGRITY OF THE SYSTEM. 20 
 
 (2) ON REQUEST , THE DEPARTMENT SHALL PROV IDE TO THE 21 
GOVERNOR, MEMBERS OF THE GENERAL ASSEMBLY, AND LAW ENFORCEMENT THE 22 
INFORMATION DESCRIBE D IN PARAGRAPH (1) OF THIS SUBSECTION . 23 
 
 (E) (1) ON OR BEFORE FEBRUARY 1, 2025, DECEMBER 31, 2025, EACH 24 
UNIT OF STATE GOVERNMENT SHAL L CONDUCT AN IMPACT ASSESSMENT OF A 25 
SYSTEM PROCURED ON OR AFTER FEBRUARY 1, 2025, THAT INVOLVES A  26 
HIGH–RISK ACTION RIGHTS–IMPACTING OR SAFET Y–IMPACTING ARTIFICIAL 27 
INTELLIGENCE . 28 
 
 (2) ON OR BEFORE FEBRUARY 1, 2027, EACH UNIT OF STATE 29 
GOVERNMENT SHALL CON DUCT AN IMPACT ASSES SMENT OF A SYSTEM PR OCURED 30 
BEFORE FEBRUARY 1, 2025, THAT INVOLVES RIGHTS –IMPACTING OR 31 
SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE .  32 
  12 	SENATE BILL 818  
 
 
3.5–803. 3.5–804. 1 
 
 (A) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT SHALL ADOP T 2 
POLICIES AND PROCEDU RES CONCERNING THE D EVELOPMENT , PROCUREMENT , 3 
IMPLEMENTATION DEPLOYMENT , USE, AND ONGOING ASSESSME NT OF SYSTEMS 4 
THAT EMPLOY RIGHTS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL 5 
INTELLIGENCE BY A UN IT OF STATE GOVERNMENT . 6 
 
 (B) THE POLICIES AND PROC EDURES REQUIRED BY SUBSECTION (A) OF 7 
THIS SECTION SHALL : 8 
 
 (1) SUBJECT TO ANY OTHER APPLICABLE LAW , GOVERN THE 9 
PROCUREMENT , IMPLEMENTATION DEPLOYMENT , AND ONGOING ASSESSME NT OF 10 
SYSTEMS THAT EMPLOY RIGHTS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL 11 
INTELLIGENCE BY A UN IT OF STATE GOVERNMENT ; 12 
 
 (2) BE SUFFICIENT TO ENS URE THAT THE USE OF ANY SYSTEM THAT 13 
EMPLOYS ARTIFICIAL I NTELLIGENCE BY ANY U NIT OF STATE GOVERNMENT IS NOT 14 
HIGH–RISK; 15 
 
 (3) REQUIRE EACH UNIT OF STATE GOVERNMENT TO A SSESS THE 16 
LIKELY IMPACT OF ANY SYSTEM THAT EMPLOYS ARTIFICIAL INTELLIGE NCE BEFORE 17 
IMPLEMENTING THE SYS TEM; 18 
 
 (2) DEFINE THE CRITERIA FOR AN INVENTORY OF SYSTEMS THAT 19 
EMPLOY RIGH TS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL INTELLIGENCE ; 20 
 
 (3) GOVERN THE PROCUREME NT, DEPLOYMENT , USE, AND ONGOING 21 
ASSESSMENT OF SYSTEM	S THAT EMPLOY RIGHTS	–IMPACTING OR 22 
SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE FOR AN OPERATIONS–RELATED 23 
PURPOSE BY A UNI T OF STATE GOVERNMENT IN P ARTNERSHIP WITH A PU BLIC 24 
SENIOR HIGHER EDUCAT ION INSTITUTION OR W ITH BALTIMORE CITY COMMUNITY 25 
COLLEGE;  26 
 
 (4) REQUIRE THE DEPARTMENT TO :  27 
 
 (I) NOTIFY AN INDIVIDUAL OR A GROUP OF INDIVI DUALS 28 
DETERMINED TO HAVE B EEN NEGATIVELY IMPAC TED BY A SYSTEM THAT EMPLOYS 29 
RIGHTS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL INTELLIGE NCE; AND 30 
 
 (II) PROVIDE GUIDANCE TO AN INDIVIDUAL OR A G ROUP OF 31 
INDIVIDUALS DETER MINED TO HAVE BEEN N EGATIVELY IMPACTED B Y A SYSTEM 32 
THAT EMPLOYS RIGHTS–IMPACTING OR SAFETY –IMPACTING ARTIFICIAL 33 
INTELLIGENCE ON AVAI LABLE OPTIONS TO OPT OUT OF THE SYSTEM ; AND 34   	SENATE BILL 818 	13 
 
 
 
 (5) PROVIDE GUIDANCE TO UNITS OF STATE GOVERNMENT ON 1 
PROCUREMENT OF A SYS	TEM THAT EMPLOYS RIGHTS–IMPACTING OR 2 
SAFETY–IMPACTING ARTIFICIAL INTELLIGE NCE THAT ENSURES DAT A PRIVACY AND 3 
COMPLIANCE WITH APPL ICABLE STATUTES AND REGULATIONS . 4 
 
 (C) THE DEPARTMENT SHAL L MAKE THE POLICIES AND PROCEDURES 5 
REQUIRED BY SUBSECTION (A) OF THIS SECTION PUBLICL Y AVAILABLE ON ITS 6 
WEBSITE. 7 
 
 (D) EACH PUBLIC SENIOR HI GHER EDUCATION INSTI TUTION AND 8 
BALTIMORE CITY COMMUNITY COLLEGE SHALL SUBMIT TO THE DEPARTMENT AN 9 
ANNUAL REPORT ON ARTIFICIAL INTELLIGE NCE PROCURED AND DEP LOYED.  10 
 
3.5–804. 3.5–805. 11 
 
 (A) BEGINNING JULY JANUARY 1, 2025, A UNIT OF STATE GOVERNMENT 12 
MAY NOT PROCURE OR IMPLEMENT A DEPLOY A NEW SYSTEM THAT EMPLOYS 13 
ARTIFICIAL INTELLIGE NCE UNLESS THE SYSTE M COMPLIES WITH THE POLICIES AND 14 
PROCEDURES ADOPTED U NDER § 3.5–803 3.5–804 OF THIS SUBTITLE. 15 
 
 (B) A UNIT OF STATE GOVERNMENT THAT EMPLOYS RIGHTS –IMPACTING OR 16 
SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE SHALL C ONDUCT REGULAR IMPAC T 17 
ASSESSMENTS , AS DETERMINED BY THE GOVERNOR’S ARTIFICIAL INTELLIGENCE 18 
SUBCABINET OF THE GOVERNOR’S EXECUTIVE COUNCIL.  19 
 
3.5–805. 3.5–806. 20 
 
 (A) THERE IS A GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET OF 21 
THE GOVERNOR’S EXECUTIVE COUNCIL. 22 
 
 (B) THE PURPOSE OF THE SUBCABINET IS TO FACI LITATE AND ENHANCE 23 
COOPERATION AMONG UN ITS OF STATE GOVERNMENT , IN CONSULTATION WITH 24 
ACADEMIC INSTITUTION S AND INDUSTRIES UTI LIZING ARTIFICIAL IN TELLIGENCE. 25 
 
 (C) THE SUBCABINET CONSISTS O F THE FOLLOWING MEMB ERS: 26 
 
 (1) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 27 
 
 (2) THE SECRETARY OF BUDGET AND MANAGEMENT , OR THE 28 
SECRETARY’S DESIGNEE; 29 
 
 (3) THE SECRETARY OF GENERAL SERVICES, OR THE SECRETARY’S 30 
DESIGNEE; 31  14 	SENATE BILL 818  
 
 
 
 (4) THE SECRETARY OF LABOR, OR THE SECRETARY’S DESIGNEE; 1 
 
 (5) THE SECRETARY OF COMMERCE, OR THE SECRETARY’S 2 
DESIGNEE; 3 
 
 (6) THE DIRECTOR OF THE GOVERNOR’S OFFICE OF HOMELAND 4 
SECURITY, OR THE DIRECTOR’S DESIGNEE; 5 
 
 (7) THE CHIEF PRIVACY OFFICER, OR THE CHIEF PRIVACY 6 
OFFICER’S DESIGNEE;  7 
 
 (8) THE CHIEF DATA OFFICER, OR THE CHIEF DATA OFFICER’S 8 
DESIGNEE; 9 
 
 (9) THE CHIEF INFORMATION SECURITY OFFICER, OR THE CHIEF 10 
INFORMATION SECURITY OFFICER’S DESIGNEE; 11 
 
 (10) THE GOVERNOR’S SENIOR ADVISOR FOR RESPONSIBLE 12 
ARTIFICIAL INTELLIGENCE , OR THE SENIOR ADVISOR’S DESIGNEE; AND 13 
 
 (11) ANY OTHER MEMBER OF THE GOVERNOR’S EXECUTIVE COUNCIL, 14 
APPOINTED BY THE GOVERNOR. 15 
 
 (D) THE SECRETARY SHALL CHAIR THE SUBCABINET. 16 
 
 (E) THE SUBCABINET SHALL : 17 
 
 (1) DEVELOP STRATEGY , POLICY, AND MONITORING PROCE SSES FOR 18 
RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AN D 19 
ASSOCIATED DATA BY UNITS OF STATE GOVERNMENT ; 20 
 
 (2) OVERSEE THE STATE’S IMPLEMENTATION OF :  21 
 
 (I) ARTIFICIAL INTELLIGE NCE INVENTORY ; 22 
 
 (II) DATA INVENTORY ; 23 
 
 (III) ARTIFICIAL INTELLIGE NCE IMPACT ASSESSMEN TS; 24 
 
 (IV) (III) MONITORING OF ARTIFI	CIAL INTELLIGENCE 25 
INVOLVING A HIGH–RISK ACTION RIGHTS–IMPACTING OR SAFETY –IMPACTING 26 
ARTIFICIAL INTELLIGE NCE; AND 27   	SENATE BILL 818 	15 
 
 
 
 (V) (IV) COMPLIANCE WITH STATE POLICIES AND 1 
PROCEDURES ;  2 
 
 (3) SUPPORT ARTIFICIAL I NTELLIGENCE AND DATA INNOVATION 3 
ACROSS UNITS OF STATE GOVERNMENT AND IN PRIVATE SECTOR EN TERPRISE BY:; 4 
 
 (I) IDENTIFYING AND PRIO RITIZING BEST USES O F ARTIFICIAL 5 
INTELLIGENCE IN EACH UNIT OF STATE GOVERNMENT AND IN PRIVATE SECTOR 6 
ENTERPRISE; 7 
 
 (II) TESTING PROOFS OF CO NCEPT OF PRIORITY AR TIFICIAL 8 
INTELLIGENCE USE IN PROTOTYPING ; 9 
 
 (III) REDUCING BARRIERS TO THE RESPONSIBLE USE OF 10 
ARTIFICIAL INTELLIGE NCE AND STATE DATA; 11 
 
 (IV) DEVELOPING SUCCESSFU L ARTIFICIAL INTELLI GENCE 12 
PILOTS INTO PRODUCTION ; AND 13 
 
 (V) TRAINING AND WORKFOR CE DEVELOPMENT ; 14 
 
 (4) DEVELOP AND IMPLEMEN T A COMPREHENSIVE AC TION PLAN FOR 15 
RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AN D 16 
ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 17 
 
 (5) ESTABLISH PARTNE RSHIPS, MEMORANDA OF UNDERST ANDING, 18 
AND CONTRACTS TO SUP PORT THE AIMS OF THI S SECTION; 19 
 
 (6) PROMOTE ARTIFICIAL I NTELLIGENCE KNOWLEDG E, SKILLS, AND 20 
TALENT IN STATE GOVERNMENT BY: 21 
 
 (I) IDENTIFYING AND OFFE RING TRAINING PROGRA MS FOR 22 
STATE WORKERS ON THE USE OF ARTIFICIAL IN TELLIGENCE AND PARTI CULARLY 23 
GENERATIVE ARTIFICIA L INTELLIGENCE ; AND 24 
 
 (II) EXPLORING WAYS TO PR OVIDE EXTERNAL ARTIF ICIAL 25 
INTELLIGENCE TALENT AN OPPORTUNITY TO SE RVE THE STATE AND UNITS OF 26 
STATE GOVERNMENT IN T ARGETED, SHORT–TERM PROJECTS, INCLUDING BY 27 
LEVERAGING INSTITUTI ONS OF HIGHER EDUCAT ION OR INDUSTRY ; AND 28 
 
 (7) IDENTIFY ARTIFICIAL INTELLIGENCE USE CAS ES AND BUILD 29 
FOUNDATIONAL INFRAST RUCTURE BY REQUIRING : 30  16 	SENATE BILL 818  
 
 
 
 (I) THE DEPARTMENT TO EVALUAT	E RELEVANT 1 
INFRASTRUCTURE TO SA FELY, SECURELY, AND EFFICIENTLY TEST ARTIFICIAL 2 
INTELLIGENCE PROOFS OF CONCEPT AND PILOT S; 3 
 
 (II) THE DEPARTMENT OF GENERAL SERVICES, IN 4 
CONSULTATION WITH TH E DEPARTMENT , TO CREATE A MODEL FO R RUNNING AND 5 
PROCURING ARTIFICIAL INTELLIGENCE PROOFS OF CONCEPT AND PILOTS, IN 6 
ACCORDANCE WITH STATE LAWS, REGULATIONS , AND POLICIES; AND 7 
 
 (III) THE DEPARTMENT , IN CONSULTATION WITH THE 8 
SUBCABINET, TO COORDINATE WITH A GENCIES TO PROVIDE S UPPORT IN 9 
IDENTIFYING AND PRIO RITIZING USE CASES A ND EXECUTING PROOFS OF CONCEPT 10 
AND PILOTS ALIGNED WI TH THE GOVERNOR’S PRIORITIES. 11 
 
 (F) THE GOVERNOR SHALL PROVID E THE SUBCABINET WITH SUFFI CIENT 12 
RESOURCES TO PERFORM THE FUNCTIONS OF THI S SECTION. 13 
 
 (G) FOR EACH FISCAL YEAR , THE GOVERNOR MAY INCLUDE IN THE ANNUAL 14 
BUDGET BILL AN APPRO PRIATION OF UP TO $3,000,000 FOR PARTNERSHIPS AND 15 
CONTRACTS TO SUPPORT THE FUNCTIONS REQUIR ED IN THIS SECTION. 16 
 
12–101. 17 
 
 (a) This section does not apply to: 18 
 
 (1) capital expenditures by the Department of Transportation or the 19 
Maryland Transportation Authority, in connection with State roads, bridges, or highways, 20 
as provided in § 12–202 of this title; [or] 21 
 
 (2) procurements by the Department of General Services AND THE 22 
DEPARTMENT OF INFORMATION TECHNOLOGY for the purpose of modernizing 23 
INFORMATION TECHNOLOGY AND cybersecurity infrastructure for the State valued 24 
below $1,000,000; OR 25 
 
 (3) COMPETITIVE PROOF OF CONCEPT PROCUREMENTS VALUED 26 
BELOW $1,000,000 MADE UNDER § 13–116 OF THIS ARTICLE . 27 
 
 (b) (1) The Board may control procurement by units. 28 
 
 (2) To implement the provisions of this Division II, the Board may: 29 
 
 (i) set policy; 30 
   	SENATE BILL 818 	17 
 
 
 (ii) adopt regulations, in accordance with Title 10, Subtitle 1 of the 1 
State Government Article; and 2 
 
 (iii) establish internal operational procedures consistent with this 3 
Division II. 4 
 
 (3) The Board shall ensure that the regulations of the primary 5 
procurement units provide for procedures that are consistent with this Division II and Title 6 
13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the 7 
circumstances of a particular type of procurement or a particular unit do not require 8 
otherwise, are substantially the same. 9 
 
 (4) The Board may delegate any of its authority that it determines to be 10 
appropriate for delegation and may require prior Board approval for specified procurement 11 
actions. 12 
 
 (5) Except as limited by the Maryland Constitution, the Board may 13 
exercise any control authority conferred on a primary procurement unit by this Division II 14 
and, to the extent that its action conflicts with the action of the primary procurement unit, 15 
the action of the Board shall prevail. 16 
 
 (c) On or before December 1 each year, the Department of General Services shall 17 
submit a report to the Board on procurements made under subsection (a)(2) of this section 18 
that shall include for each procurement: 19 
 
 (1) the purpose of the procurement; 20 
 
 (2) the name of the contractor; 21 
 
 (3) the contract amount; 22 
 
 (4) the method of procurement utilized; 23 
 
 (5) the number of bidders who bid on the procurement; and 24 
 
 (6) the contract term. 25 
 
 (D) ON OR BEFORE DECEMBER 1 EACH YEAR, THE DEPARTMENT OF 26 
GENERAL SERVICES SHALL SUBMIT A REPORT TO THE BOARD ON PROCUREMENTS 27 
MADE UNDER SUBSECTIO N (A)(3) OF THIS SECTION THAT SHALL INCLUDE FOR EA CH 28 
PROCUREMENT : 29 
 
 (1) THE PURPOSE OF THE PROCUREMENT ; 30 
 
 (2) THE NAME OF THE CONT RACTOR; 31 
  18 	SENATE BILL 818  
 
 
 (3) THE CONTRACT AMOUNT ; 1 
 
 (4) THE NUMBER OF PROPOS ALS RECEIVED ON THE PROCUREMENT ; 2 
AND 3 
 
 (5) THE CONTRACT TERM . 4 
 
13–116. 5 
 
 (A) IN THIS SECTION, “PROOF OF CONCEPT ” MEANS A TEST, EVALUATION, 6 
DEMONSTR ATION, OR PILOT PROJECT OF A GOOD OR SERVICE GOOD, SERVICE, OR 7 
TECHNOLOGY IN A REAL–WORLD ENVIRONMENT TO EVALUATE WHETHER THE GOOD 8 
OR SERVICE GOOD, SERVICE, OR TECHNOLOGY CAN BE SUCCESSFULLY DEPLOYED 9 
AND IS BENEFICIAL TO THE STATE. 10 
 
 (B) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IS A FORMAL 11 
COMPETITIVE PROCUREM ENT METHOD THAT MAY BE USED TO SOLICIT P ROPOSALS 12 
FOR THE CONDUCT OF A PROOF OF CONCEPT PRI OR TO FULL IMPLEMENT ATION 13 
WHEN THE HEAD OF A U NIT DETERMINES THE P ROCESS TO BE APPROPR IATE AND IN 14 
THE BEST INTERESTS O F THE UNIT, INCLUDING:  15 
 
 (I) TESTING SOFTWARE –AS–A–SERVICE OR OFF –THE–SHELF 16 
SOFTWARE; 17 
 
 (II) TESTING NEW, INNOVATIVE PRODUCTS OR SERVICES; OR 18 
 
 (III) TESTING A PRODUCT OR SERVICE CONCEPTUALIZ ED OR 19 
CONCEIVED OF BY A UN IT OF STATE GOVERNMENT . 20 
 
 (2) AFTER OBTAINING THE A PPROVAL OF THE HEAD OF THE UNIT 21 
AND BEFORE CONDUCTIN G A COMPETITIVE PROO F OF CONCEPT PROCURE MENT, 22 
THE UNIT SHALL OBTAI N APPROVAL FROM THE SECRETARY OF INFORMATION 23 
TECHNOLOGY , OR THE SECRETARY’S DESIGNEE.  24 
 
 (C) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT MAY BE 25 
CONDUCTED THROUGH TH E ISSUANCE OF A SOLI CITATION BY ANY METH OD OF 26 
PROCUREMENT AUTHORIZ ED UNDER THIS DIVISION II. 27 
 
 (2) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT 28 
SOLICITATION SHALL I NCLUDE A STATEMENT OF : 29 
 
 (I) THE SCOPE OF WORK OR PROJECT DESCRIPTION , 30 
INCLUDING THE INTEND ED USE, QUANTITY, ESTIMATED TIME FRAME FOR THE 31   	SENATE BILL 818 	19 
 
 
PROOF OF CONCEPT , AND ANTICIPATED NUMB ER OF PROOF OF CONCE PT AWARDS 1 
THAT WILL BE MADE ; AND  2 
 
 (II) THE FACTORS , INCLUDING P RICE, THAT WILL BE USED IN 3 
EVALUATING PROPOSALS AND THE RELATIVE IMP ORTANCE OF EACH . 4 
 
 (3) A SOLICITATION MAY BE DISTRIBUTED TO VENDO RS KNOWN TO 5 
OFFER GOODS OR SERVI CES WITHIN THE SCOPE OF THE PROOF OF CONC EPT AND 6 
SHALL, EXCEPT FOR PROCUREME NTS UNDER $15,000 NOT OTHERWISE REQUIR ED 7 
BY LAW TO BE POSTED , BE POSTED ON EMARYLAND MARKETPLACE ADVANTAGE, IN 8 
ACCORDANCE WITH THE POLICIES AND PROCEDU RES UNDER SUBSECTION (G) OF 9 
THIS SECTION. 10 
 
 (D) AFTER RECEIPT OF PROP OSALS BUT BEFORE AWA RD OF A 11 
PROCUREMENT CONTRACT , A UNIT MAY:  12 
 
 (1) CONDUCT DISCUSSIONS WITH AN OFFEROR TO E NSURE FULL 13 
UNDERSTANDING OF : 14 
 
 (I) THE REQUIREMENTS OF THE UNIT, AS SET FORTH IN THE 15 
REQUEST FOR PROPOSAL S; AND 16 
 
 (II) THE PROPOSAL SUBMITT ED BY THE OFFEROR ; AND 17 
 
 (2) REQUEST PRODUCT SAMP LES FOR TESTING BY THE U NIT OR A 18 
DEMONSTRATION OF A P RODUCT OR SERVICE AN D USE THESE SAMPLES OR 19 
DEMONSTRATIONS IN IT S EVALUATION PROCESS . 20 
 
 (E) A REQUEST FOR PRODUCT SAMPLES FOR TESTING OR DEMONSTRATION 21 
MADE UNDER SUBSECTIO N (D)(2) OF THIS SECTION SHAL L BE ISSUED TO ALL 22 
OFFERORS DEEMED REAS ONABLE AT THE TIME O F THE REQUEST .  23 
 
 (F) A UNIT MAY: 24 
 
 (1) AWARD ONE OR MORE OF THE PROPOSALS A CONT RACT FOR THE 25 
PROOF OF CONCEPT ; AND 26 
 
 (2) PROVIDE AN OPTION FO R THE STATE TO PROCEED WITH A FULL 27 
IMPLEMENTATION OF AN AWARDED PROPOSAL .  28 
 
 (G) A VENDOR AWARDED A PRO OF OF CONCEPT PROCUR EMENT SHALL BE 29 
ELIGIBLE TO BID ON A PROCUREMENT TO IMPLE MENT A PROPOSAL RELA TED TO 30 
THE PROOF OF CONCEPT PROCUREMENT . 31  20 	SENATE BILL 818  
 
 
 
 (H) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH 1 
THE DEPARTMENT OF INFORMATION TECHNOLOGY , SHALL ADOPT POLICIES AND 2 
PROCEDURES FOR THE D EVELOPMENT AND IMPLE MENTATION OF COMPETI TIVE 3 
PROOF OF CONCEPT PRO CUREMENTS . 4 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 5 
2024, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council, 6 
in consultation with the appropriate stakeholders, shall submit an interim report and 7 
recommendations to the Governor and, in accordance with § 2 –1257 of the State 8 
Government Article, the General Assembly on the risks and opportunities and associated 9 
recommendations related to: 10 
 
 (1) use of artificial intelligence to support job and business creation and 11 
growth in the State;  12 
 
 (2) in collaboration with the Maryland Department of Labor and, as 13 
appropriate, external experts, workers, labor unions, businesses, and civil society, use of 14 
artificial intelligence by the State workforce, including opportunities to upskill the 15 
workforce; 16 
 
 (3) in consultation with the Maryland Department of Emerge ncy 17 
Management, the Public Service Commission, the Department of the Environment, and the 18 
Department of Transportation, use of artificial intelligence in critical infrastructure and 19 
guidelines for owners and operators to incorporate risk management into cr itical 20 
infrastructure, including mapping emergent cyber and physical security and resiliency 21 
risks to the State infrastructure and residents stemming from artificial intelligence; 22 
 
 (4) in consultation with the Maryland Department of Health, the U.S. 23 
Department of Veterans Affairs, and the U.S. Department of Homeland Security, use of 24 
systems that employ artificial intelligence in health care delivery and human services; 25 
 
 (5) in consultation with the Department of Information Technology Office 26 
of Security Management and the Chief Privacy Officer, use of artificial intelligence in the 27 
discovery and remediation of vulnerabilities in cybersecurity and data management across 28 
State and local government, including school systems; 29 
 
 (6) in consultation with the State Chief Privacy Officer and an independent 30 
contractor identified by the Subcabinet, data privacy, specifically regarding the potential 31 
to train systems that employ artificial intelligence; 32 
 
 (7) in consultation with the Maryland Department of Labor, t he 33 
Department of Commerce, and the Governor’s Office of Small, Minority, and Women 34 
Business Affairs, use of artificial intelligence in workforce training and hiring of talent with 35 
expertise in artificial intelligence, employment practices, and workforce development 36 
implications; 37 
   	SENATE BILL 818 	21 
 
 
 (8) in consultation with the Office of the Attorney General and the Judicial 1 
Branch, use of artificial intelligence in the criminal justice system, including whether and 2 
how such technology should be used, in what contexts, and with what safeguards; 3 
 
 (9) the procurement of systems that employ artificial intelligence, 4 
including efforts to increase competition and assurance that contracts retain sufficient data 5 
privacy protection against vendor lock–in; 6 
 
 (10) use of artificial intelligence by occupations licensed and certified by the 7 
State, in consultation with the boards, identifying ways for the regulatory board to identify 8 
and manage the risks of opportunities of artificial intelligence and determine appropriate 9 
permitted use and supervision by licensees; and 10 
 
 (11) use of artificial intelligence in local school systems, including 11 
recommendations to the State on the responsible and productive use of artificial 12 
intelligence based on a review of the federal Department of Education Office of Educational 13 
Technology’s report entitled “Artificial Intelligence and the Future of Teaching and 14 
Learning: Insights and Recommendations”, in collaboration with the State Department of 15 
Education. 16 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That: 17 
 
 (a) The Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive 18 
Council, in consultation with the appropriate units of State government, shall: 19 
 
 (1) develop a roadmap to review the risks and opportunities associated 20 
with the use of artificial intelligence in State services; and 21 
 
 (2) on or before December 1, 2024, submit the roadmap to the Governor 22 
and, in accordance with § 2–1257 of the State Government Article, the General Assembly. 23 
 
 (b) The roadmap developed under subsection (a) of this section shall include:  24 
 
 (1) a plan to study the use of artificial intelligence:  25 
 
 (i) to support job and business creation and growth in the State;  26 
 (ii) by the State workforce, including opportunities to upskill the 27 
workforce;  28 
 
 (iii) in critical infrastructure, including guidelines for owners and 29 
operators to incorporate risk management into critical infrastructure;  30 
 
 (iv) in health care delivery and human services; 31 
 
 (v) in the discovery and remediation of vulnerabilities in 32 
cybersecurity and data management across State and local government, including school 33 
systems;  34  22 	SENATE BILL 818  
 
 
 
 (vi) in data privacy, specifically regarding the ability to train systems 1 
that employ artificial intelligence;  2 
 
 (vii) in workforce training;  3 
 
 (viii) in the criminal justice system and for public safety purposes, 4 
including whether and how such technology should be used, in what contexts, and with 5 
what safeguards;  6 
 
 (ix) by occupations licensed and certified by the State, including 7 
identifying ways for State regulatory boards to identify and manage the risks and 8 
opportunities of artificial intelligence and determine appropriate permitted use and 9 
supervision of licensees;  10 
 
 (x) in local school systems, including recommendations to the State 11 
on the responsible and productive use of artificial intelligence;  12 
 
 (xi) in the conduct of elections, including reducing or eliminating the 13 
spread of misinformation; and 14 
 
 (xii) any other State service identified by the Subcabinet;  15 
 
 (2) a plan to study:  16 
 
 (i) the hiring of talent with expertise in artificial intelligence, 17 
employment practices, and workforce development implications;  18 
 
 (ii) methods to ensure that there is diversity in contract awards and 19 
training programs related to artificial intelligence in the State, including racial diversity; 20 
and 21 
 
 (iii) the procurement of systems that employ artificial intelligence, 22 
including efforts to increase competition and assurance that contracts retain sufficient data 23 
privacy protection against vendor lock–in;  24 
 
 (3) a prioritization of the study topics listed under this subsection, 25 
including the methodology for the prioritization;  26 
 
 (4) a list of appropriate stakeholders identified to participate in each study 27 
topic; and 28 
 
 (5) the projected timeline to complete each study topic.  29 
 
 SECTION 3. AND BE IT FURTHER ENACTED, That, on or before December 1, 30 
2025, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council 31 
shall submit a report and recommendations to the Governor and, in accordance with §  32   	SENATE BILL 818 	23 
 
 
2–1257 of the State Government Article, the General Assembly on the sufficiency of the 1 
Subcabinet to accomplish the artificial intelligence goals of the State and the efficacy of the 2 
potential transition of the Subcabinet to a department or independent unit of State 3 
government. 4 
 
 SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 5 
Assembly that the Department of Information Technology: 6 
 
 (1) evaluate the potential of artificial intelligence in creating a statewide 7 
virtual 3–1–1 portal as a source for Maryland residents to obtain nonemergency 8 
government information and services; and 9 
 
 (2) if the Department determines that the use of artificial intelligence in 10 
creating a virtual 3–1–1 portal is feasible, to prioritize the creation of a virtual 3–1–1 portal 11 
through a competitive proof of concept procurement in accordance with § 13–116 of the 12 
State Finance and Procurement Article, as enacted by Section 1 of this Act.  13 
 
 SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 14 
July 1, 2024.  15 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
         President of the Senate. 
________________________________________________________________________________  
  Speaker of the House of Delegates.