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.
Italics indicate opposite chamber/conference committee amendments.
*sb0818*
SENATE BILL 818
S1, P2, K3 (4lr1621)
ENROLLED BILL
— Education, Energy, and the Environment/Health and Government Operations —
Introduced 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
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, __ ______M.
______________________________________________
President.
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 Artificial 10
Intelligence Subcabinet of the Governor’s Executive Council, to adopt policies and 11
procedures concerning the development, procurement, implementation deployment, 12
use, and assessment of systems that employ artificial intelligence by units of State 13 2 SENATE BILL 818
government; prohibiting a unit of State government from implementing deploying or 1
using a system that employs artificial intelligence under certain circumstances 2
beginning on a certain date; requiring a unit of State government to conduct certain 3
regular impact assessments under certain circumstances; exempting the Office of the 4
Attorney General, the Comptroller, the Treasurer, and certain public institutions of 5
higher education from certain provisions; establishing the Governor’s Artificial 6
Intelligence Subcabinet of the Governor’s Executive Council; establishing 7
competitive proof of concept procurement as a formal competitive procurement 8
method for the procurement of certain products and services; exempting certain 9
competitive proof of concept procurements from oversight by the Board of Public 10
Works; requiring the Department of General Services, in consultation with the 11
Department of Information Technology, to develop certain policies and procedures 12
for the development and implementation of competitive proof of concept 13
procurements; requiring the Subcabinet to develop a certain roadmap; and generally 14
relating to the use of artificial intelligence by units of State government. 15
BY repealing and reenacting, without amendments, 16
Article – State Finance and Procurement 17
Section 3.5–101(a), (c), (d), and (f) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2023 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – State Finance and Procurement 22
Section 3.5–301, 3.5–303(a), and 12–101 Section 3.5–301 and 3.5–303(a) 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2023 Supplement) 25
BY adding to 26
Article – State Finance and Procurement 27
Section 3.5–318; 3.5–801 through 3.5–805 3.5–806 to be under the new subtitle 28
“Subtitle 8. Artificial Intelligence”; and 13–116 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2023 Supplement) 31
Preamble 32
WHEREAS, Artificial intelligence is transforming society and work, and the pace of 33
that change will present new opportunities and risks for the State’s residents, workers, and 34
economy; and 35
WHEREAS, The State must ensure the responsible, ethical, beneficial, and 36
trustworthy use of artificial intelligence in State government; and 37
WHEREAS, The State is home to a rich and growing artificial intelligence ecosystem 38
of academic, industry, government, and civil society experts, researchers, builders, 39
organizers, and stakeholders; and 40 SENATE BILL 818 3
WHEREAS, To foster an environment for innovation while respecting individuals, 1
employees, and civil rights, as artificial intelligence technologies are developed and evolve, 2
the technologies should be analyzed and monitored by government officials, industry 3
experts, consumer protection advocates, and other stakeholders; and 4
WHEREAS, Given the rapid rate of change in artificial intelligence technologies and 5
industry, the State must chart a principled yet adaptable, pragmatic path forward, so that 6
the technologies’ benefits can be confidently harnessed on behalf of Marylanders and in 7
service of the Governor’s mission to Leave No One Behind; and 8
WHEREAS, Leaders across State government share a common interest in 9
establishing effective artificial intelligence governance and are committed to working 10
together to develop the legal and policy framework for its responsible use in the State; and 11
WHEREAS, Automated systems should be safe and effective, developed with 12
consultation from diverse communities, stakeholders, and domain experts to identify 13
concerns, risks, and potential impacts of the systems; and 14
WHEREAS, Designers, developers, and deployers of automated systems should take 15
proactive and continuous measures to protect individuals and communities from 16
algorithmic discrimination and to use and design systems in an equitable way; and 17
WHEREAS, Designers, developers, and deployers of automated systems should seek 18
permission and respect decisions regarding collection, use, access, transfer, and deletion of 19
data in appropriate ways and to the greatest extent possible; where not possible, alternative 20
privacy by design safeguards should be used; and 21
WHEREAS, Designers, developers, and deployers of automated systems should 22
provide generally accessible plain language documentation including clear descriptions of 23
the overall system functioning and the role automation plays, notice that such systems are 24
in use, the individual or organization responsible for the system, and explanations of 25
outcomes that are clear, timely, and accessible; and 26
WHEREAS, Designers, developers, and deployers of automated systems should 27
consider the specific types of actions for which a human alternative is appropriate, 28
commensurate with the magnitude of the action and risk of harm, along with the extent to 29
which a human alternative would be beneficial to individuals and the public interest; now, 30
therefore, 31
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 32
That the Laws of Maryland read as follows: 33
Article – State Finance and Procurement 34
3.5–101. 35
4 SENATE BILL 818
(a) In this title the following words have the meanings indicated. 1
(c) “Department” means the Department of Information Technology. 2
(d) “Secretary” means the Secretary of Information Technology. 3
(f) “Unit of State government” means an agency or unit of the Executive Branch 4
of State government. 5
3.5–301. 6
(a) In this subtitle the following words have the meanings indicated. 7
(B) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANING STAT ED IN § 3.5–801 8
OF THIS TITLE. 9
[(b)] (C) “Cybersecurity” means processes or capabilities wherein systems, 10
communications, and information are protected and defended against damage, 11
unauthorized use or modification, and exploitation. 12
[(c)] (D) “Cybersecurity strategy” means a vision, a plan of action, or guiding 13
principles. 14
[(d)] (E) (1) “Development” means all expenditures for a new information 15
technology system or an enhancement to an existing system including system: 16
(i) planning; 17
(ii) creation; 18
(iii) installation; 19
(iv) testing; and 20
(v) initial training. 21
(2) “Development” does not include: 22
(i) ongoing operating costs, software or hardware maintenance, 23
routine upgrades, or modifications that merely allow for a continuation of the existing level 24
of functionality; or 25
(ii) expenditures made after a new or enhanced system has been 26
legally accepted by the user and is being used for the business process for which it was 27
intended. 28
SENATE BILL 818 5
[(e)] (F) “Fund” means the Major Information Technology Development Project 1
Fund. 2
[(f)] (G) “Information technology” means all electronic information processing, 3
including: 4
(1) maintenance; 5
(2) telecommunications; 6
(3) hardware; 7
(4) software; and 8
(5) associated services. 9
[(g)] (H) “Information technology services” means information provided by 10
electronic means by or on behalf of a unit of State government. 11
[(h)] (I) “Major information technology development project” means any 12
information technology development project that meets one or more of the following 13
criteria: 14
(1) the estimated total cost of development equals or exceeds $1,000,000; 15
(2) the project is undertaken to support a critical business function 16
associated with the public health, education, safety, or financial well–being of the citizens 17
of Maryland; or 18
(3) the Secretary determines that the project requires the special attention 19
and consideration given to a major information technology development project due to: 20
(i) the significance of the project’s potential benefits or risks; 21
(ii) the impact of the project on the public or local governments; 22
(iii) the public visibility of the project; or 23
(iv) other reasons as determined by the Secretary. 24
[(i)] (J) “Master plan” means the statewide information technology master plan 25
and statewide cybersecurity strategy. 26
[(j)] (K) “Nonvisual access” means the ability, through keyboard control, 27
synthesized speech, Braille, or other methods not requiring sight to receive, use, and 28 6 SENATE BILL 818
manipulate information and operate controls necessary to access information technology in 1
accordance with standards adopted under § 3.5–303(b) of this subtitle. 2
[(k)] (L) “Resource sharing” means the utilization of a State resource by private 3
industry in exchange for the provision to the State of a communication service or other 4
consideration. 5
[(l)] (M) “Systems development life cycle plan” means a plan that defines all 6
actions, functions, or activities to be performed by a unit of State government in the 7
definition, planning, acquisition, development, testing, implementation, operation, 8
enhancement, and modification of information technology systems. 9
3.5–303. 10
(a) The Secretary is responsible for carrying out the following duties: 11
(1) developing, maintaining, revising, and enforcing information 12
technology policies, procedures, and standards; 13
(2) providing technical assistance, advice, and recommendations to the 14
Governor and any unit of State government concerning information technology matters; 15
(3) reviewing the annual project plan for each unit of State government to 16
make information and services available to the public over the Internet; 17
(4) developing and maintaining a statewide information technology master 18
plan that will: 19
(i) centralize the management and direction of information 20
technology policy within the Executive Branch of State government under the control of the 21
Department; 22
(ii) include all aspects of State information technology including 23
telecommunications, security, data processing, and information management; 24
(iii) consider interstate transfers as a result of federal legislation and 25
regulation; 26
(iv) ensure that the State information technology plan and related 27
policies and standards are consistent with State goals, objectives, and resources, and 28
represent a long–range vision for using information technology to improve the overall 29
effectiveness of State government; 30
(v) include standards to assure nonvisual access to the information 31
and services made available to the public over the Internet; and 32
SENATE BILL 818 7
(vi) allows a State agency to maintain the agency’s own information 1
technology unit that provides for information technology services to support the mission of 2
the agency; 3
(5) developing and maintaining a statewide cybersecurity strategy that 4
will: 5
(i) centralize the management and direction of cybersecu rity 6
strategy within the Executive Branch of State government under the control of the 7
Department; and 8
(ii) serve as the basis for budget allocations for cybersecurity 9
preparedness for the Executive Branch of State government; 10
(6) adopting by regulation and enforcing nonvisual access standards to be 11
used in the procurement of information technology services by or on behalf of units of State 12
government in accordance with subsection (c) of this section; 13
(7) in consultation with the Maryland Cybersecurity Coordinating Council, 14
advising and overseeing a consistent cybersecurity strategy for units of State government, 15
including institutions under the control of the governing boards of the public institutions 16
of higher education; 17
(8) advising and consulting with the Legislative and Judicial branches of 18
State government regarding a cybersecurity strategy; 19
(9) in consultation with the Maryland Cybersecurity Coordinating Council, 20
developing guidance on consistent cybersecurity strategies for counties, municipal 21
corporations, school systems, and all other political subdivisions of the State; 22
(10) upgrading information technology and cybersecurity–related State 23
government infrastructure; [and] 24
(11) annually evaluating: 25
(i) the feasibility of units of State government providing public 26
services using artificial intelligence, machine learning, commercial cloud computer 27
services, device–as–a–service procurement models, and other emerging technologies; and 28
(ii) the development of data analytics capabilities to enable 29
data–driven policymaking by units of State government; AND 30
(12) CONDUCTING INVENTORI ES AND ONGOING ASSESSME NTS OF 31
SYSTEMS THAT EMPLOY ARTIFICIAL INTELLIGE NCE THAT ARE USED BY A UNIT OF 32
STATE GOVERNMENT AS R EQUIRED UNDER § 3.5–318 OF THIS SUBTITLE § 3.5–803 33
OF THIS TITLE. 34 8 SENATE BILL 818
3.5–318. 1
(A) ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAF TER, 2
EACH UNIT OF STATE GOVERNMENT SHAL L CONDUCT A DATA INV ENTORY THAT 3
IDENTIFIES DATA THAT MEETS THE CRITERIA E STABLISHED BY THE CHIEF DATA 4
OFFICER AND THAT IS: 5
(1) (I) NECESSARY FOR THE OP ERATION OF THE UNIT ; OR 6
(II) OTHERWISE REQUIRED T O BE COLLECTED : 7
1. AS A CONDITION TO RE CEIVE FEDERAL FUNDS ; OR 8
2. BY FEDERAL OR STATE LAW; AND 9
(2) IN A FORM PRESCRIBED BY THE CHIEF DATA OFFICER, 10
INCLUDING WHEN THE D ATA IS USED IN ARTIF ICIAL INTELLIGENCE . 11
(B) THE DEPARTMENT SHALL DEVE LOP AND PUBLISH GUID ANCE ON THE 12
POLICIES AND PROCEDU RES FOR THE INVENTOR Y. 13
SUBTITLE 8. ARTIFICIAL INTELLIGENCE . 14
3.5–801. 15
(A) IN THIS SUBTITLE THE FOLLOWING WOR DS HAVE THE MEANINGS 16
INDICATED. 17
(B) (1) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 18
PROCESS THAT FACILIT ATES DECISION MAKING . 19
(2) “ALGORITHMIC DECISION SYSTEM” INCLUDES DECISIONS 20
DERIVED FROM MACHINE S, STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON 21
PAPER. 22
(C) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM THAT : 23
(1) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES , MAKE 24
PREDICTIONS, RECOMMENDATIONS , OR DECISIONS INFLUEN CING REAL OR VIRTUAL 25
ENVIRONMENTS ; 26
SENATE BILL 818 9
(2) USES MACHINE AND HUMAN–BASED INPUTS TO PERC EIVE REAL 1
AND VIRTUAL ENVIRONM ENTS AND ABSTRACTS T HOSE PERCEPTIONS INT O MODELS 2
THROUGH ANALYSIS IN AN AUTOMATED MANNER ; AND 3
(3) USES MODEL INFERENCE TO FORMULATE OPTIONS FOR 4
INFORMATION OR ACTIO N. 5
(D) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 6
(1) RESULT IN ANY UNLAWF UL DISCRIMINATION ; 7
(2) HAVE AN UNLAWFUL DIS PARATE IMPACT ON ANY INDIVIDUAL OR 8
GROUP OF INDIVIDUALS ON THE BASIS OF ANY ACTUAL OR PERCEIVED 9
CHARACTERISTIC ; OR 10
(3) HAVE A NEGATIVE IMPA CT ON THE HEALTH , SAFETY, OR 11
WELL–BEING OF AN INDIVIDU AL. 12
(E) (D) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 13
EVALUATION OF A SYST EM THAT EMPLOYS RIGHTS–IMPACTING OR 14
SAFETY–IMPACTING ARTIFICIAL INTELLIGE NCE. 15
(D) (1) “HIGH–RISK ARTIFICIAL INTE LLIGENCE” MEANS ARTIFICIAL 16
INTELLIGENCE THAT IS A RISK TO INDIVIDUAL S OR COMMUNITIES , AS DEFINED 17
UNDER REGULATIONS AD OPTED BY THE DEPARTMENT IN CONSULT ATION WITH THE 18
GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET. 19
(2) “HIGH–RISK ARTIFICIAL INTE LLIGENCE” INCLUDES 20
RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE AND SAF ETY–IMPACTING 21
ARTIFICIAL INTELLIGE NCE. 22
(E) “IMPACT ASSESSMENT ” MEANS AN ASSESSMENT OF ARTIFICIAL 23
INTELLIGENCE SYSTEMS MADE UNDER REGULATIO NS ADOPTED BY THE 24
DEPARTMENT IN CONSULT ATION WITH THE GOVERNOR’S ARTIFICIAL 25
INTELLIGENCE SUBCABINET AND REQUIR ED UNDER § 3.5–803 OF THIS SUBTITLE. 26
(E) (F) “PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N” MEANS: 27
(1) THE CONSTITUENT INST ITUTIONS OF THE UNIVERSITY SYSTEM 28
OF MARYLAND AND THE UNIVERSITY OF MARYLAND CENTER FOR 29
ENVIRONMENTAL SCIENCE; 30
(2) MORGAN STATE UNIVERSITY; OR 31
10 SENATE BILL 818
(3) ST. MARY’S COLLEGE OF MARYLAND. 1
(F) (G) “RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS 2
ARTIFICIAL INTELLIGE NCE WHOSE OUTPUT SER VES AS A BASIS FOR D ECISION OR 3
ACTION THAT HAS A LEGAL, MATERIAL, OR SIMILARLY SIGNIFI CANT EFFECT ON AN 4
INDIVIDUAL’S OR COMMUNITY ’S: 5
(1) CIVIL RIGHTS , CIVIL LIBERTIES , OR PRIVACY , INCLUDING 6
FREEDOM OF SPEECH , VOTING, HUMAN AUTONOMY , AND PROTECTIONS FROM 7
DISCRIMINATION , EXCESSIVE PUNISHMENT , AND UNLAWFUL SURV EILLANCE; 8
(2) EQUAL OPPORTUNITIES , INCLUDING EQUITABLE ACCESS TO 9
EDUCATION, HOUSING, CREDIT, EMPLOYMENT , AND OTHER SITUATIONS WHERE 10
CIVIL RIGHTS AND EQU AL OPPORTUNITY PROTE CTIONS APPLY; OR 11
(3) ACCESS TO CRITICAL R ESOURCES OR SERVICES , INCLUDING 12
HEALTH CARE, FINANCIAL SERVICES , SOCIAL SERVICES , TRANSPORTATION , 13
NONDECEPTIVE INFORMA TION ABOUT GOODS AND SERVICES, AND GOVERNMENT 14
BENEFITS OR PRIVILEG ES. IS SIGNIFICANTLY LIK ELY TO AFFECT CIVIL RIGHTS, 15
CIVIL LIBERTIES, EQUAL OPPORTUNITIES , ACCESS TO CRITICAL RESOURCES, OR 16
PRIVACY. 17
(G) (H) “SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS 18
ARTIFICIAL INTELLIGE NCE THAT HAS THE POT ENTIAL TO MEANINGFULLY 19
SIGNIFICANTLY IMPACT THE SAFETY OF INDIVIDUALS AND C OMMUNITIES 20
REGARDING: 21
(1) HUMAN LIFE OR WELL –BEING, INCLUDING LOSS OF LI FE, SERIOUS 22
INJURY, BODILY HARM , BIOLOGICAL OR CHEMIC AL WEAPONS , OCCUPATIONAL 23
HAZARDS, HARASSMENT OR ABUSE , OR MENTAL HEALTH ; 24
(2) THE CLIMATE OR THE E NVIRONMENT , INCLUDING IRREVERSIB LE 25
OR SIGNIFICANT ENVIR ONMENTAL DAMAGE ; 26
(3) CRITICAL INFRASTRUCT URE, INCLUDING THE INFRAS TRUCTURE 27
FOR VOTING AND PROTE CTING THE INTEGRITY OF ELECTIONS; OR 28
(4) STRATEGIC ASSETS OR RESOURCES, INCLUDING INTELLECTU AL 29
PROPERTY. OF HUMAN LIFE, WELL–BEING, OR CRITICAL INFRASTR UCTURE. 30
3.5–802. 31
(A) THIS SUBTITLE APPLIES T O EACH PUBLIC SENIOR HIGHER EDUCATION 32
INSTITUTION AND BALTIMORE CITY COMMUNITY COLLEGE IN A PARTNERS HIP FOR 33 SENATE BILL 818 11
THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF ARTIFICIAL 1
INTELLIGENCE WITH A UNIT OF STATE GOVERNMENT . 2
(B) EXCEPT AS PROVIDED IN § 3.5–804(D) OF THIS SUBTITLE , THIS 3
SUBTITLE DOES NOT AP PLY TO ARTIFICIAL IN TELLIGENCE DEPLOYED BY PUBLIC 4
SENIOR HIGHER EDUCAT ION INSTITUTIONS OR BALTIMORE CITY COMMUNITY 5
COLLEGE USED SOLELY F OR A RESEARCH OR ACA DEMIC PURPOSE , INCLUDING IN A 6
PARTNERSHIP FOR THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF 7
ARTIFICIAL INTELLIGE NCE WITH A UNIT OF STATE GOVERNMENT . 8
(C) A PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N OR BALTIMORE 9
CITY COMMUNITY COLLEGE SHALL ESTABLI SH POLICIES AND PROC EDURES THAT 10
ARE FUNCTIONALLY COM PATIBLE WITH THE POL ICIES AND PROCEDURES ADOPTED 11
UNDER § 3.5–804(A) OF THIS SUBTITLE FOR ARTIFICIAL INTELLIGE NCE DEPLOYED 12
FOR AN OPERATIONS –RELATED PURPOSE . 13
(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 14
THIS SUBTITLE DOES NOT APPLY TO: 15
(I) THE OFFICE OF THE ATTORNEY GENERAL; 16
(II) THE COMPTROLLER ; OR 17
(III) THE STATE TREASURER. 18
(2) ON OR BEFORE JUNE 1, 2025, EACH ENTITY LISTED U NDER 19
PARAGRAPH (1) OF THIS SUBSECTION S HALL ESTABLISH POLIC IES AND 20
PROCEDURES THAT ARE FUNCTIONALLY COMPATI BLE WITH THE POLICIE S AND 21
PROCEDURES ADOPTED U NDER § 3.5–804(A) OF THIS SUBTITLE FOR THE 22
DEVELOPMENT , PROCUREMENT , DEPLOYMENT , USE, AND ONGOING ASSESSME NT OF 23
SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTE LLIGENCE. 24
(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 25
THIS SUBTITLE APPLIE S TO EACH PUBLIC SEN IOR HIGHER EDUCATION INSTITUTION 26
AND BALTIMORE CITY COMMUNITY COLLEGE. 27
(2) THIS SUBTITLE DOES NO T APPLY TO ARTIFICIA L INTELLIGENCE 28
DEPLOYED BY A PUBLIC SENIOR HIGHER EDUCAT ION INSTITUTION OR BALTIMORE 29
CITY COMMUNITY COLLEGE THAT IS USED SOLELY FOR A RESEARC H OR ACADEMIC 30
PURPOSE, INCLUDING IN PARTNERSHIP WITH A UNIT OF STATE GOVERNMENT FOR 31
THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF ARTIFICIAL 32
INTELLIGENCE . 33
12 SENATE BILL 818
(3) ON OR BEFORE JUNE 1, 2025, EACH PUBLIC SENIOR H IGHER 1
EDUCATION INSTITUTIO N AND BALTIMORE CITY COMMUNITY COLLEGE SHALL 2
ESTABLISH POLICIES AND P ROCEDURES THAT ARE F UNCTIONALLY COMPATIB LE 3
WITH THE POLICIES AN D PROCEDURES ADOPTED UNDER § 3.5–804(A) OF THIS 4
SUBTITLE FOR THE DEV ELOPMENT, PROCUREMENT , DEPLOYMENT , USE, AND 5
ONGOING ASSESSMENT O F SYSTEMS THAT EMPLO Y HIGH–RISK ARTIFICIA L 6
INTELLIGENCE USED SO LELY FOR A RESEARCH OR ACADEMIC PURPOSE . 7
(4) ON OR BEFORE SEPTEMBER 1, 2025, AND EACH YEAR 8
THEREAFTER , EACH PUBLIC SENIOR H IGHER EDUCATION INST ITUTION AND 9
BALTIMORE CITY COMMUNITY COLLEGE SHALL SUBMIT TO THE DEPARTMENT A 10
REPORT ON ALL HIGH–RISK ARTIFICIAL INTE LLIGENCE PROCURED AN D DEPLOYED 11
FOR A RESEARCH OR AC ADEMIC PURPOSE . 12
3.5–803. 13
(A) ON OR BEFORE DECEMBER 1, 2024 2025, AND ANNUALLY REGULARLY 14
THEREAFTER , EACH UNIT OF STATE GOVERNMENT SHAL L: 15
(1) CONDUCT AN INVENTORY OF SYSTEMS THAT EMPL OY 16
RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE; 17
AND 18
(2) PROVIDE THE INVENTOR Y TO THE DEPARTMENT IN A FORMA T 19
REQUIRED BY THE DEPARTMENT . 20
(B) FOR EACH SYSTEM , THE INVENTORY REQUIR ED BY THIS SECTION SHAL L 21
INCLUDE: 22
(1) THE NAME OF THE SYST EM; 23
(2) THE VENDOR THAT PROV IDED THE SYSTEM , IF APPLICABLE; 24
(3) A DESCRIPTION OF THE CAPABILITIES OF THE SYSTEM; 25
(4) A STATEMENT OF THE P URPOSE AND THE INTEN DED USES OF THE 26
SYSTEM; 27
(5) WHETHER THE SYSTEM U NDERWENT AN IMPACT A SSESSMENT 28
PRIOR TO BEING IMPLEMENTED DEPLOYED; 29
(6) WHETHER THE SYSTEM I S USED TO INDEPENDEN TLY MAKE A 30
DECISION OR JUDGMENT OR TO INFORM OR SUPP ORT A DECISION OR JU DGMENT 31
DETERMINED BY THE DEPARTMENT TO INVOLVE A HIGH–RISK ACTION 32 SENATE BILL 818 13
RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE; 1
AND 2
(7) A DETERMINATION OF THE RISK THAT USE OF A S YSTEM MAY BE 3
HIGH–RISK SUMMARY OF THE RESUL TS OF THE MOST RECEN T IMPACT ASSESSMENT . 4
(C) THE DEPARTMENT SHALL MAKE EACH INVENTORY REQUI RED BY THIS 5
SECTION AN AGGREGATED STATEW IDE INVENTORY PUBLICLY AVAILABLE O N ITS 6
WEBSITE. 7
(D) (1) THE DEPARTMENT MAY NOT MA KE PUBLICLY AVAILABL E ON THE 8
DEPARTMENT ’S WEBSITE INFORMATIO N FROM THE INVENTORI ES REQUIRED BY 9
THIS SECTION THAT RE LATE TO THE SAFETY A ND SECURITY OF STATE SYSTEMS IF 10
THE PUBLICATION OF T HE INFORMATION IS LI KELY TO COMPROMISE T HE SECURITY 11
OR INTEGRITY OF THE SYSTEM. 12
(2) ON REQUEST , THE DEPARTMENT SHALL PROV IDE TO THE 13
GOVERNOR, MEMBERS O F THE GENERAL ASSEMBLY, AND LAW ENFORCEMENT THE 14
INFORMATION DESCRIBE D IN PARAGRAPH (1) OF THIS SUBSECTION . 15
(E) (1) ON OR BEFORE FEBRUARY 1, 2025, DECEMBER 31, 2025 2026, 16
EACH UNIT OF STATE GOVERNMENT SHAL L CONDUCT AN IMPACT ASSESSMENT OF A 17
SYSTEM PROCURED ON OR AFTER FEBRUARY 1, 2025 2026, THAT INVOLVES A 18
HIGH–RISK ACTION RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK 19
ARTIFICIAL INTELLIGE NCE. 20
(2) ON OR BEFORE FEBRUARY JULY 1, 2027, EACH UNIT OF STATE 21
GOVERNMENT SHALL CON DUCT AN IMPACT ASSES SMENT OF A SYSTEM PR OCURED 22
BEFORE FEBRUARY 1, 2025 2026, THAT INVOLVES RIGHTS–IMPACTING OR 23
SAFETY–IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE. 24
3.5–803. 3.5–804. 25
(A) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT , IN 26
CONSULTATION WITH TH E GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET, 27
SHALL ADOPT POLICIES AND PROCEDURES CONCE RNING THE DEVELOPMEN T, 28
PROCUREMENT , IMPLEMENTATION DEPLOYMENT , USE, AND ONGOING ASSESSME NT 29
OF SYSTEMS THAT EMPL OY RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK 30
ARTIFICIAL INTELLIGE NCE BY A UNIT OF STATE GOVERNMENT . 31
(B) THE POLICIES AND PROC EDURES REQUIRED BY SUBSECTION (A) OF 32
THIS SECTION SHALL : 33
14 SENATE BILL 818
(1) SUBJECT TO ANY OTHER APPLICABLE LAW , GOVERN THE 1
PROCUREMENT , IMPLEMENTATION DEPLOYMENT , AND ONGOING ASSESSME NT OF 2
SYSTEMS THAT EMPLOY RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK 3
ARTIFICIAL INTELLIGE NCE BY A UNIT OF STATE GOVERNMENT ; 4
(2) BE SUFFICIENT TO ENSURE THAT THE U SE OF ANY SYSTEM THA T 5
EMPLOYS ARTIFICIAL I NTELLIGENCE BY ANY U NIT OF STATE GOVERNMENT IS N OT 6
HIGH–RISK; 7
(3) REQUIRE EACH UNIT OF STATE GOVERNMENT TO A SSESS THE 8
LIKELY IMPACT OF ANY SYSTEM THAT EMPLOYS ARTIFICIAL INTELLIGE NCE BEFORE 9
IMPLEMENTING THE SYS TEM; 10
(2) DEFINE THE CRITERIA FOR AN INVENTORY OF SYSTEMS THAT 11
EMPLOY RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL 12
INTELLIGENCE ; 13
(3) GOVERN THE PROCUREME NT, DEPLOYMENT , USE, AND ONGOING 14
ASSESSMENT OF SYSTEM S THAT EMPLOY RIGHTS –IMPACTING OR 15
SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE FOR AN OPERATIONS–RELATED 16
PURPOSE BY A UNIT OF STATE GOVERNMENT IN P ARTNERSHIP WITH A PU BLIC 17
SENIOR HIGHER EDUCATION INSTITUTIO N OR WITH BALTIMORE CITY COMMUNITY 18
COLLEGE; 19
(3) BE SUFFICIENT TO ENS URE THAT THE USE OF ANY SYSTEM THAT 20
EMPLOYS ARTIFICIAL I NTELLIGENCE BY A UNI T OF STATE GOVERNMENT IS 21
GOVERNED BY ADEQUATE GUARDRAILS TO PROTEC T INDIVIDUALS AND 22
COMMUNITIES ; 23
(4) IF THE DEPARTMENT IS NOTIFIE D THAT AN INDIVIDUAL OR GROUP 24
OF INDIVIDUALS MAY H AVE BEEN NEGATIVELY IMPACTED BY A SYSTEM THAT 25
EMPLOYS HIGH –RISK ARTIFICIAL INTE LLIGENCE, REQUIRE THE DEPARTMENT TO : 26
(I) NOTIFY AN INDIVIDUAL OR A GROUP O F INDIVIDUALS 27
DETERMINED TO HAVE B EEN NEGATIVELY IMPAC TED BY A SYSTEM THAT EMP LOYS 28
RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL 29
INTELLIGENCE ; AND 30
(II) PROVIDE GUIDANCE TO AN INDIVIDUAL OR A G ROUP OF 31
INDIVIDUALS DETERMIN ED TO HAVE BEEN NEGA TIVELY IMPACTED BY A SYSTEM 32
THAT EMPLOYS RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL 33
INTELLIGENCE ON AVAILABLE OPTIONS TO OPT OUT OF THE SY STEM; AND 34
SENATE BILL 818 15
(5) PROVIDE GUIDANCE TO UNITS OF STATE GOVERNMENT ON 1
PROCUREMENT OF A SYS TEM THAT EMPLOYS RIGHTS–IMPACTING OR SAFETY –2
IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE THAT ENSURES DAT A PRIVACY 3
AND COMPLIANCE WITH APPLICABLE STATUTES AND REGULATIONS . 4
(C) THE DEPARTMENT SHALL MAKE THE POLICIES AND PRO CEDURES 5
REQUIRED BY SUBSECTION (A) OF THIS SECTION PUBLICL Y AVAILABLE ON ITS 6
WEBSITE WITHIN 45 DAYS AFTER THE POLIC IES AND PROCEDURES A RE ADOPTED. 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 ART IFICIAL INTELLIGENCE PROCURED AND DEPLOYE D. 10
3.5–804. 3.5–805. 11
(A) BEGINNING JULY JANUARY JULY 1, 2025, A UNIT OF STATE 12
GOVERNMENT MAY NOT P ROCURE OR IMPLEMENT A DEPLOY A NEW SYSTEM THAT 13
EMPLOYS ARTIFICIAL I NTELLIGENCE UNLESS T HE SYSTEM COMPLIES W ITH THE 14
POLICIES AND PROCEDU RES ADOPTED UNDER § 3.5–803 3.5–804 OF THIS SUBTITLE. 15
(B) A UNIT OF STATE GOVERNMENT THAT EMPLOYS RIGHTS–IMPACTING OR 16
SAFETY–IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE SHALL CONDUCT 17
REGULAR IMPACT ASSES SMENTS, AS DETERMINED BY THE GOVERNOR’S ARTIFICIAL 18
INTELLIGENCE 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
16 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 U NITS OF STATE GOVERNMENT ; 20
(2) OVERSEE THE STATE’S IMPLEMENTATION OF : 21
(I) ARTIFICIAL INTELLIGENCE INVENTO RY; 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 17
(III) MONITORING OF HIGH –RISK ARTIFICIAL INTE LLIGENCE; 1
AND 2
(V) (IV) COMPLIANCE WITH STATE POLICIES AND 3
PROCEDURES ; 4
(3) SUPPORT ARTIFICIAL I NTELLIGENCE AND DATA INNOVATION 5
ACROSS UNITS OF STATE GOVERNMENT AND IN PRIVATE SECTO R ENTERPRISE BY:; 6
(I) IDENTIFYING AND PRIO RITIZING BEST USES O F ARTIFICIAL 7
INTELLIGENCE IN EACH UNIT OF STATE GOVERNMENT AND IN PRIVATE SECTOR 8
ENTERPRISE; 9
(II) TESTING PROOFS OF CO NCEPT OF PRIORITY AR TIFICIAL 10
INTELLIGENCE USE IN PROTOTYPING ; 11
(III) REDUCING BARRIERS TO THE RESPONSIBLE U SE OF 12
ARTIFICIAL INTELLIGE NCE AND STATE DATA; 13
(IV) DEVELOPING SUCCESSFU L ARTIFICIAL INTELLI GENCE 14
PILOTS INTO PRODUCTI ON; AND 15
(V) TRAINING AND WORKFOR CE DEVELOPMENT ; 16
(4) DEVELOP AND IMPLEMEN T A COMPREHENSIVE AC TION PLAN FOR 17
RESPONSIBLE AND PRODUC TIVE USE OF ARTIFICI AL INTELLIGENCE AND 18
ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 19
(5) ESTABLISH PARTNERSHI PS, MEMORANDA OF UNDERST ANDING, 20
AND CONTRACTS TO SUP PORT THE AIMS OF THI S SECTION; 21
(6) PROMOTE ARTIFICIAL I NTELLIGENCE K NOWLEDGE , SKILLS, AND 22
TALENT IN STATE GOVERNMENT BY: 23
(I) IDENTIFYING AND OFFE RING TRAINING PROGRA MS FOR 24
STATE WORKERS ON THE USE OF ARTIFICIAL IN TELLIGENCE AND PARTI CULARLY 25
GENERATIVE ARTIFICIA L INTELLIGENCE ; AND 26
(II) EXPLORING WAYS TO PR OVIDE EXTERNAL ARTIFICIAL 27
INTELLIGENCE TALENT AN OPPORTUNITY TO SE RVE THE STATE AND UNITS OF 28
STATE GOVERNMENT IN T ARGETED, SHORT–TERM PROJECTS , INCLUDING BY 29
LEVERAGING INSTITUTI ONS OF HIGHER EDUCAT ION OR INDUSTRY ; AND 30
18 SENATE BILL 818
(7) IDENTIFY ARTIFICIAL INTELLIGENCE USE CASES AND BUILD 1
FOUNDATIONAL INFRAST RUCTURE BY REQUIRING : 2
(I) THE DEPARTMENT TO EVALUAT E RELEVANT 3
INFRASTRUCTURE TO SA FELY, SECURELY, AND EFFICIENTLY TEST ARTIFICIAL 4
INTELLIGENCE PROOFS OF CONCEPT AND PILOT S; 5
(II) THE DEPARTMENT OF GENERAL SERVICES, IN 6
CONSULTATION WITH TH E DEPARTMENT , TO CREATE A MODEL FO R RUNNING AND 7
PROCURING ARTIFICIAL INTELLIGENCE PROOFS OF CONCEPT AND PILOT S, IN 8
ACCORDANCE WITH STATE LAWS, REGULATIONS , AND POLICIES; AND 9
(III) THE DEPARTMENT , IN CONSULTATION WITH THE 10
SUBCABINET, TO COORDINATE WITH A GENCIES TO PROVIDE S UPPORT IN 11
IDENTIFYING AND PRIO RITIZING USE CASES A ND EXECUTING PROOFS OF CONCEPT 12
AND PILOTS ALIGNED W ITH THE GOVERNOR’S PRIORITIES. 13
(F) THE GOVERNOR SHALL PROVID E THE SUBCABINET WITH SUFFI CIENT 14
RESOURCES TO P ERFORM THE FUNCTIONS OF THIS SECTION. 15
(G) FOR EACH FISCAL YEAR , THE GOVERNOR MAY INCLUDE IN THE ANNUAL 16
BUDGET BILL AN APPRO PRIATION OF UP TO $3,000,000 FOR PARTNERSHIPS AND 17
CONTRACTS TO SUPPORT THE FUNCTIONS REQUIR ED IN THIS SECTION. 18
12–101. 19
(a) This section does not apply to: 20
(1) capital expenditures by the Department of Transportation or the 21
Maryland Transportation Authority, in connection with State roads, bridges, or highways, 22
as provided in § 12–202 of this title; [or] 23
(2) procurements by the Department of General Services AND THE 24
DEPARTMENT OF INFORMATION TECHNOLOGY for the purpose of modernizing 25
INFORMATION TECHNOLO GY AND cybersecurity infrastructure for the State valued 26
below $1,000,000; OR 27
(3) COMPETITIVE PROOF OF CONCEPT PROCUREMENTS VALUED 28
BELOW $1,000,000 MADE UNDER § 13–116 OF THIS ARTICLE . 29
(b) (1) The Board may control procurement by units. 30
(2) To implement the provisions of this Division II, the Board may: 31
(i) set policy; 32 SENATE BILL 818 19
(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 P ROCUREMENT ; 30
(2) THE NAME OF THE CONT RACTOR; 31 20 SENATE BILL 818
(3) THE CONTRACT AMOUNT ; 1
(4) THE NUMBER OF PROPOS ALS RECEIVED ON THE PROCURE MENT; 2
AND 3
(5) THE CONTRACT TERM . 4
13–116. 5
(A) IN THIS SECTION, “PROOF OF CONCEPT ” MEANS A TEST, EVALUATION, 6
DEMONSTRATION , 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 PRIOR TO FULL IMPLEMENTATI ON 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) (I) AFTER OBTAINING THE A PPROVAL OF THE HEAD OF THE 21
UNIT AND BEFORE COND UCTING A COMPETITIVE PROOF OF CONCEPT 22
PROCUREMENT , THE UNIT SHALL OBTAI N APPROVAL FROM THE SECRETARY OF 23
INFORMATION TECHNOLOGY , OR THE SECRETARY’S DESIGNEE. 24
(II) THE SECRETARY OF INFORMATION TECHNOLOGY MAY 25
GRANT APPROVAL FOR A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IF THE 26
UNIT: 27
1. HAS SUFFICIENT INTERNAL RESOURCES TO MANAGE 28
THE PROOF OF CONCEPT , INCLUDING HUMAN CAPI TAL, SUBJECT MATTER 29
EXPERTISE, AND TECHNOLOGICAL IN FRASTRUCTURE , OR HAS THE MEANS TO 30
OBTAIN THESE RESOURC ES; AND 31
SENATE BILL 818 21
2. ENTERS INTO A MEMORA NDUM OF UNDERSTANDIN G 1
WITH THE DEPARTMENT OF INFORMATION TECHNOLOGY THAT REQUI RES REGULAR 2
STATUS UPDATES , VENDOR CAPACITY , AND ANY OTHER INFORM ATION NECESSARY 3
FOR THE DEPARTMENT OF INFORMATION TECHNOLOGY TO EVALUAT E WHETHER 4
THE PROOF OF CONCEPT CAN BE SUCCESSFULLY DEPLOYED AND IS BENE FICIAL TO 5
THE STATE. 6
(C) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT MAY BE 7
CONDUCTED THROUGH TH E ISSUANCE OF A SOLI CITATION BY ANY METH OD OF 8
PROCUREMENT AUTHORIZ ED UNDER THIS DIVISION II. 9
(2) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT 10
SOLICITATION SH ALL INCLUDE A STATEM ENT OF: 11
(I) THE SCOPE OF WORK OR PROJECT DESCRIPTION , 12
INCLUDING THE INTEND ED USE, QUANTITY, ESTIMATED TIME FRAME FOR THE 13
PROOF OF CONCEPT , AND ANTICIPATED NUMB ER OF PROOF OF CONCE PT AWARDS 14
THAT WILL BE MADE ; AND 15
(II) THE FACTOR S, INCLUDING PRICE , THAT WILL BE USED IN 16
EVALUATING PROPOSALS AND THE RELATIVE IMP ORTANCE OF EACH . 17
(3) A SOLICITATION MAY BE DISTRIBUTED TO VENDO RS KNOWN TO 18
OFFER GOODS OR SERVI CES WITHIN THE SCOPE OF THE PROOF OF CONC EPT AND 19
SHALL, EXCEPT FOR PROCUREME NTS UNDER $15,000 NOT OTHERWISE REQUIR ED 20
BY LAW TO BE POSTED , BE POSTED ON EMARYLAND MARKETPLACE ADVANTAGE, IN 21
ACCORDANCE WITH THE POLICIES AND PROCEDU RES UNDER SUBSECTION (G) OF 22
THIS SECTION. 23
(D) AFTER RECEIPT OF PROP OSALS BUT BEFORE AWA RD OF A 24
PROCUREM ENT CONTRACT , A UNIT MAY: 25
(1) CONDUCT DISCUSSIONS WITH AN OFFEROR TO E NSURE FULL 26
UNDERSTANDING OF : 27
(I) THE REQUIREMENTS OF THE UNIT, AS SET FORTH IN THE 28
REQUEST FOR PROPOSAL S; AND 29
(II) THE PROPOSAL SUBMITT ED BY THE OFFEROR ; AND 30
(2) REQUEST PRODUCT SAMPLES FOR TESTING BY THE UNIT OR A 31
DEMONSTRATION OF A P RODUCT OR SERVICE AN D USE THESE SAMPLES OR 32
DEMONSTRATIONS IN IT S EVALUATION PROCESS . 33
22 SENATE BILL 818
(E) A REQUEST FOR PRODUCT SAMPLES FOR TESTING OR DEMONSTRATION 1
MADE UNDER SUBSECTIO N (D)(2) OF THIS SECT ION SHALL BE ISSUED TO ALL 2
OFFERORS DEEMED REAS ONABLE AT THE TIME O F THE REQUEST . 3
(F) A UNIT MAY: 4
(1) AWARD ONE OR MORE OF THE PROPOSALS A CONT RACT FOR THE 5
PROOF OF CONCEPT ; AND 6
(2) PROVIDE AN OPTION FO R THE STATE TO PROCEED WITH A FULL 7
IMPLEMENTATION OF AN AWARDED PROPOSAL . 8
(G) A VENDOR AWARDED A PRO OF OF CONCEPT PROCUR EMENT SHALL BE 9
ELIGIBLE TO BID ON A PROCUREMENT TO IMPLE MENT A PROPOSAL RELA TED TO 10
THE PROOF OF CONCEPT PROCUREMENT . 11
(H) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH 12
THE DEPARTMENT OF INFORMATION TECHNOLOGY , SHALL ADOPT POLICIES AND 13
PROCEDURES FOR THE D EVELOPMENT AND IMPLE MENTATION OF COMPETI TIVE 14
PROOF OF CONCEPT PRO CUREMENTS . 15
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 16
2024, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council, 17
in consultation with the appropriate stakeholders, shall submit an interim report and 18
recommendations to the Governor and, in accordance with § 2 –1257 of the State 19
Government Article, the General Assembly on the risks and opportunities and associated 20
recommendations related to: 21
(1) use of artificial intelligence to support job and business creation and 22
growth in the State; 23
(2) in collaboration with the Maryland Department of Labor and, as 24
appropriate, external experts, workers, labor unions, businesses, and civil society, use of 25
artificial intelligence by the State workforce, including opportunities to upskill the 26
workforce; 27
(3) in consultation with the Maryland Depa rtment of Emergency 28
Management, the Public Service Commission, the Department of the Environment, and the 29
Department of Transportation, use of artificial intelligence in critical infrastructure and 30
guidelines for owners and operators to incorporate risk management into critical 31
infrastructure, including mapping emergent cyber and physical security and resiliency 32
risks to the State infrastructure and residents stemming from artificial intelligence; 33
SENATE BILL 818 23
(4) in consultation with the Maryland Department of Health, the U.S. 1
Department of Veterans Affairs, and the U.S. Department of Homeland Security, use of 2
systems that employ artificial intelligence in health care delivery and human services; 3
(5) in consultation with the Department of Information Technology Office 4
of Security Management and the Chief Privacy Officer, use of artificial intelligence in the 5
discovery and remediation of vulnerabilities in cybersecurity and data management across 6
State and local government, including school systems; 7
(6) in consultation with the State Chief Privacy Officer and an independent 8
contractor identified by the Subcabinet, data privacy, specifically regarding the potential 9
to train systems that employ artificial intelligence; 10
(7) in consultation with the Maryland Depart ment of Labor, the 11
Department of Commerce, and the Governor’s Office of Small, Minority, and Women 12
Business Affairs, use of artificial intelligence in workforce training and hiring of talent with 13
expertise in artificial intelligence, employment practices, and workforce development 14
implications; 15
(8) in consultation with the Office of the Attorney General and the Judicial 16
Branch, use of artificial intelligence in the criminal justice system, including whether and 17
how such technology should be used, in what contexts, and with what safeguards; 18
(9) the procurement of systems that employ artificial intelligence, 19
including efforts to increase competition and assurance that contracts retain sufficient data 20
privacy protection against vendor lock–in; 21
(10) use of artificial intelligence by occupations licensed and certified by the 22
State, in consultation with the boards, identifying ways for the regulatory board to identify 23
and manage the risks of opportunities of artificial intelligence and determine appropriate 24
permitted use and supervision by licensees; and 25
(11) use of artificial intelligence in local school systems, including 26
recommendations to the State on the responsible and productive use of artificial 27
intelligence based on a review of the federal Department of Education Office of Educational 28
Technology’s report entitled “Artificial Intelligence and the Future of Teaching and 29
Learning: Insights and Recommendations”, in collaboration with the State Department of 30
Education. 31
SECTION 2. AND BE IT FURTHER E NACTED, That: 32
(a) The Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive 33
Council, in consultation with the appropriate units of State government, shall: 34
(1) develop a roadmap to review the risks and opportunities associated 35
with the use of artificial intelligence in State services; and 36
24 SENATE BILL 818
(2) on or before December 1, 2024, submit the roadmap to the Governor 1
and, in accordance with § 2–1257 of the State Government Article, the General Assembly. 2
(b) The roadmap developed under subsection (a) of this section shall include: 3
(1) a plan to study the use of artificial intelligence: 4
(i) to support job and business creation and growth in the State; 5
(ii) by the State workforce, including opportunities to upskill the 6
workforce; 7
(iii) in critical infrastructure, including guidelines for owners and 8
operators to incorporate risk management into critical infrastructure; 9
(iv) in health care delivery and human services; 10
(v) in the discovery and remediation of vulnerabilities in 11
cybersecurity and data management across State and local government, including school 12
systems; 13
(vi) in data privacy, specifically regarding the ability to train systems 14
that employ artificial intelligence; 15
(vii) in workforce training; 16
(viii) in the criminal justice system and for public safety purposes, 17
including whether and how such technology should be used, in what contexts, and with 18
what safeguards; 19
(ix) by occupations licensed and certified by the State, including 20
identifying ways for State regulatory boards to identify and manage the risks and 21
opportunities of artificial intelligence and determine appropriate permitted use and 22
supervision of licensees; 23
(x) in local school systems, including recommendations to the State 24
on the responsible and productive use of artificial intelligence; 25
(xi) in the conduct of elections, including reducing or eliminating the 26
spread of misinformation; and 27
(xii) any other State service identified by the Subcabinet; 28
(2) a plan to study: 29
(i) the hiring of talent with expertise in artificial intelligence, 30
employment practices, and workforce development implications; 31 SENATE BILL 818 25
(ii) methods to ensure that there is diversity in contract awards and 1
training programs related to artificial intelligence in the State, including racial diversity; 2
and 3
(iii) 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
(3) a prioritization of the study topics listed under this subsection, 7
including the methodology for the prioritization; 8
(4) a list of appropriate stakeholders identified to participate in each study 9
topic; and 10
(5) the projected timeline to complete each study topic. 11
SECTION 3. AND BE IT FURTHER ENACTED, That, on or before December 1, 12
2025, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council 13
shall submit a report and recommendations to the Governor and, in accordance with § 14
2–1257 of the State Government Article, the General Assembly on the sufficiency of the 15
Subcabinet to accomplish the artificial intelligence goals of the State and the efficacy of the 16
potential transition of the Subcabinet to a department or independent unit of State 17
government. 18
SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 19
Assembly that the Department of Information Technology: 20
(1) evaluate the potential of artificial intelligence in creating a statewide 21
virtual 3–1–1 portal as a source for Maryland residents to obtain nonemergency 22
government information and services; and 23
(2) if the Department determines that the use of artificial intelligence in 24
creating a virtual 3–1–1 portal is feasible, to prioritize the creation of a virtual 3–1–1 portal 25
through a competitive proof of concept procurement in accordance with § 13–116 of the 26
State Finance and Procurement Article, as enacted by Section 1 of this Act. 27
SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the Maryland 28
General Assembly, contingent on the passage of S.B. 955 or H.B. 1174 of the Acts of the 29
General Assembly of 2024 by both Houses of the General Assembly, that the Governor’s 30
Artificial Intelligence Subcabinet consult with the Technology Advisory Commission 31
established under S.B. 955 or H.B. 1174 of the Acts of the General Assembly of 2024 in the 32
performance of its duties under Sections 1 and 2 of this Act. 33
SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 34
July 1, 2024. 35