Maryland 2024 Regular Session

Maryland Senate Bill SB818 Latest Draft

Bill / Chaptered Version Filed 05/15/2024

                             	WES MOORE, Governor 	Ch. 496 
 
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Chapter 496 
(Senate Bill 818) 
 
AN ACT concerning 
 
Information Technology – Artificial Intelligence – Policies and Procedures 
(Artificial Intelligence Governance Act of 2024) 
 
FOR the purpose of requiring each unit of State government to conduct a certain annual 
data inventory, a certain annual inventory of systems that employ artificial 
intelligence, and a certain impact assessment on or before a certain date; requiring 
prohibiting the Department of Information Technology from making certain 
information publicly available under certain circumstances to conduct ongoing 
monitoring of certain systems under certain circumstances ; requiring the 
Department of Information Technology, in consultation with the Governor’s Artificial 
Intelligence Subcabinet of the Governor’s Executive Council, to adopt policies and 
procedures concerning the development, procurement, implementation deployment, 
use, and assessment of systems that employ artificial intelligence by units of State 
government; prohibiting a unit of State government from implementing deploying or 
using a system that employs artificial intelligence under certain circumstances 
beginning on a certain date; requiring a unit of State government to conduct certain 
regular impact assessments under certain circumstances; exempting the Office of the 
Attorney General, the Comptroller, the Treasurer, and certain public institutions of 
higher education from certain provisions; establishing the Governor’s Artificial 
Intelligence Subcabinet of the Governor’s Executive Council; establishing 
competitive proof of concept procurement as a formal competitive procurement 
method for the procurement of certain products and services; exempting certain 
competitive proof of concept procurements from oversight by the Board of Public 
Works; requiring the Department of General Services, in consultation with the 
Department of Information Technology, to develop certain policies and procedures 
for the development and implementation of competitive proof of concept 
procurements; requiring the Subcabinet to develop a certain roadmap; and generally 
relating to the use of artificial intelligence by units of State government. 
 
BY repealing and reenacting, without amendments, 
 Article – State Finance and Procurement 
 Section 3.5–101(a), (c), (d), and (f) 
 Annotated Code of Maryland 
 (2021 Replacement Volume and 2023 Supplement) 
 
BY repealing and reenacting, with amendments, 
 Article – State Finance and Procurement 
 Section 3.5–301, 3.5–303(a), and 12–101 Section 3.5–301 and 3.5–303(a) 
 Annotated Code of Maryland 
 (2021 Replacement Volume and 2023 Supplement) 
  Ch. 496 	2024 LAWS OF MARYLAND  
 
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BY adding to 
 Article – State Finance and Procurement 
Section 3.5–318; 3.5–801 through 3.5–805 3.5–806 to be under the new subtitle 
“Subtitle 8. Artificial Intelligence”; and 13–116 
 Annotated Code of Maryland 
 (2021 Replacement Volume and 2023 Supplement) 
 
Preamble 
 
 WHEREAS, Artificial intelligence is transforming society and work, and the pace of 
that change will present new opportunities and risks for the State’s residents, workers, and 
economy; and 
 
 WHEREAS, The State must ensure the responsible, ethical, beneficial, and 
trustworthy use of artificial intelligence in State government; and 
 
 WHEREAS, The State is home to a rich and growing artificial intelligence ecosystem 
of academic, industry, government, and civil society experts, researchers, builders, 
organizers, and stakeholders; and 
 
 WHEREAS, To foster an environment for innovation while respecting individuals, 
employees, and civil rights, as artificial intelligence technologies are developed and evolve, 
the technologies should be analyzed and monitored by government officials, industry 
experts, consumer protection advocates, and other stakeholders; and 
 
 WHEREAS, Given the rapid rate of change in artificial intelligence technologies and 
industry, the State must chart a principled yet adaptable, pragmatic path forward, so that 
the technologies’ benefits can be confidently harnessed on behalf of Marylanders and in 
service of the Governor’s mission to Leave No One Behind; and 
 
 WHEREAS, Leaders across State government share a common interest in 
establishing effective artificial intelligence governance and are committed to working 
together to develop the legal and policy framework for its responsible use in the State; and 
 
 WHEREAS, Automated systems should be safe and effective, developed with 
consultation from diverse communities, stakeholders, and domain experts to identify 
concerns, risks, and potential impacts of the systems; and 
 
 WHEREAS, Designers, developers, and deployers of automated systems should take 
proactive and continuous measures to protect individuals and communities from 
algorithmic discrimination and to use and design systems in an equitable way; and 
 
 WHEREAS, Designers, developers, and deployers of automated systems should seek 
permission and respect decisions regarding collection, use, access, transfer, and deletion of 
data in appropriate ways and to the greatest extent possible; where not possible, alternative 
privacy by design safeguards should be used; and   	WES MOORE, Governor 	Ch. 496 
 
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 WHEREAS, Designers, developers, and deployers of automated systems should 
provide generally accessible plain language documentation including clear descriptions of 
the overall system functioning and the role automation plays, notice that such systems are 
in use, the individual or organization responsible for the system, and explanations of 
outcomes that are clear, timely, and accessible; and 
 
 WHEREAS, Designers, developers, and deployers of automated systems should 
consider the specific types of actions for which a human alternative is appropriate, 
commensurate with the magnitude of the action and risk of harm, along with the extent to 
which a human alternative would be beneficial to individuals and the public interest; now, 
therefore, 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 
That the Laws of Maryland read as follows: 
 
Article – State Finance and Procurement 
 
3.5–101. 
 
 (a) In this title the following words have the meanings indicated. 
 
 (c) “Department” means the Department of Information Technology. 
 
 (d) “Secretary” means the Secretary of Information Technology. 
 
 (f) “Unit of State government” means an agency or unit of the Executive Branch 
of State government. 
 
3.5–301. 
 
 (a) In this subtitle the following words have the meanings indicated. 
 
 (B) “ARTIFICIAL INTELLIGEN CE” HAS THE MEANING STAT ED IN § 3.5–801 
OF THIS TITLE. 
 
 [(b)] (C) “Cybersecurity” means processes or capabilities wherein systems, 
communications, and information are protected and defended against damage, 
unauthorized use or modification, and exploitation. 
 
 [(c)] (D) “Cybersecurity strategy” means a vision, a plan of action, or guiding 
principles. 
 
 [(d)] (E) (1) “Development” means all expenditures for a new information 
technology system or an enhancement to an existing system including system: 
  Ch. 496 	2024 LAWS OF MARYLAND  
 
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 (i) planning; 
 
 (ii) creation; 
 
 (iii) installation; 
 
 (iv) testing; and 
 
 (v) initial training. 
 
 (2) “Development” does not include: 
 
 (i) ongoing operating costs, software or hardware maintenance, 
routine upgrades, or modifications that merely allow for a continuation of the existing level 
of functionality; or 
 
 (ii) expenditures made after a new or enhanced system has been 
legally accepted by the user and is being used for the business process for which it was 
intended. 
 
 [(e)] (F) “Fund” means the Major Information Technology Development Project 
Fund. 
 
 [(f)] (G) “Information technology” means all electronic information processing, 
including: 
 
 (1) maintenance; 
 
 (2) telecommunications; 
 
 (3) hardware; 
 
 (4) software; and 
 
 (5) associated services. 
 
 [(g)] (H) “Information technology services” means information provided by 
electronic means by or on behalf of a unit of State government. 
 
 [(h)] (I) “Major information technology development project” means any 
information technology development project that meets one or more of the following 
criteria: 
 
 (1) the estimated total cost of development equals or exceeds $1,000,000; 
   	WES MOORE, Governor 	Ch. 496 
 
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 (2) the project is undertaken to support a critical business function 
associated with the public health, education, safety, or financial well–being of the citizens 
of Maryland; or 
 
 (3) the Secretary determines that the project requires the special attention 
and consideration given to a major information technology development project due to: 
 
 (i) the significance of the project’s potential benefits or risks; 
 
 (ii) the impact of the project on the public or local governments; 
 
 (iii) the public visibility of the project; or 
 
 (iv) other reasons as determined by the Secretary. 
 
 [(i)] (J) “Master plan” means the statewide information technology master plan 
and statewide cybersecurity strategy. 
 
 [(j)] (K) “Nonvisual access” means the ability, through keyboard control, 
synthesized speech, Braille, or other methods not requiring sight to receive, use, and 
manipulate information and operate controls necessary to access information technology in 
accordance with standards adopted under § 3.5–303(b) of this subtitle. 
 
 [(k)] (L) “Resource sharing” means the utilization of a State resource by private 
industry in exchange for the provision to the State of a communication service or other 
consideration. 
 
 [(l)] (M) “Systems development life cycle plan” means a plan that defines all 
actions, functions, or activities to be performed by a unit of State government in the 
definition, planning, acquisition, development, testing, implementation, operation, 
enhancement, and modification of information technology systems. 
 
3.5–303. 
 
 (a) The Secretary is responsible for carrying out the following duties: 
 
 (1) developing, maintaining, revising, and enforcing information 
technology policies, procedures, and standards; 
 
 (2) providing technical assistance, advice, and recommendations to the 
Governor and any unit of State government concerning information technology matters; 
 
 (3) reviewing the annual project plan for each unit of State government to 
make information and services available to the public over the Internet; 
  Ch. 496 	2024 LAWS OF MARYLAND  
 
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 (4) developing and maintaining a statewide information technology master 
plan that will: 
 
 (i) centralize the management and direction of information 
technology policy within the Executive Branch of State government under the control of the 
Department; 
 
 (ii) include all aspects of State information technology including 
telecommunications, security, data processing, and information management; 
 
 (iii) consider interstate transfers as a result of federal legislation and 
regulation; 
 
 (iv) ensure that the State information technology plan and related 
policies and standards are consistent with State goals, objectives, and resources, and 
represent a long–range vision for using information technology to improve the overall 
effectiveness of State government; 
 
 (v) include standards to assure nonvisual access to the information 
and services made available to the public over the Internet; and 
 
 (vi) allows a State agency to maintain the agency’s own information 
technology unit that provides for information technology services to support the mission of 
the agency; 
 
 (5) developing and maintaining a statewide cybersecurity strategy that 
will: 
 
 (i) centralize the management and direction of cybersecurity 
strategy within the Executive Branch of State government under the control of the 
Department; and 
 
 (ii) serve as the basis for budget allocations for cybersecurity 
preparedness for the Executive Branch of State government; 
 
 (6) adopting by regulation and enforcing nonvisual access standards to be 
used in the procurement of information technology services by or on behalf of units of State 
government in accordance with subsection (c) of this section; 
 
 (7) in consultation with the Maryland Cybersecurity Coordinating Council, 
advising and overseeing a consistent cybersecurity strategy for units of State government, 
including institutions under the control of the governing boards of the public institutions 
of higher education; 
 
 (8) advising and consulting with the Legislative and Judicial branches of 
State government regarding a cybersecurity strategy;   	WES MOORE, Governor 	Ch. 496 
 
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 (9) in consultation with the Maryland Cybersecurity Coordinating Council, 
developing guidance on consistent cybersecurity strategies for counties, municipal 
corporations, school systems, and all other political subdivisions of the State; 
 
 (10) upgrading information technology and cybersecurity–related State 
government infrastructure; [and] 
 
 (11) annually evaluating: 
 
 (i) the feasibility of units of State government providing public 
services using artificial intelligence, machine learning, commercial cloud computer 
services, device–as–a–service procurement models, and other emerging technologies; and 
 
 (ii) the development of data analytics capabilities to enable  
data–driven policymaking by units of State government; AND 
 
 (12) CONDUCTING INVENTORI ES AND ONGOING ASSESSME NTS OF 
SYSTEMS THAT EMPLOY ARTIFICIAL INTELLIGE NCE THAT ARE USED BY A UNIT OF 
STATE GOVERNMENT AS R EQUIRED UNDER § 3.5–318 OF THIS SUBTITLE § 3.5–803 
OF THIS TITLE. 
 
3.5–318. 
 
 (A) ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAF TER, 
EACH UNIT OF STATE GOVERNMENT SHAL L CONDUCT A DATA INV ENTORY THAT 
IDENTIFIES DATA THAT MEETS THE CRITERIA E STABLISHED BY THE CHIEF DATA 
OFFICER AND THAT IS : 
 
 (1) (I) NECESSARY FOR THE OP ERATION OF THE UNIT ; OR 
 
 (II) OTHERWISE REQUIRED T O BE COLLECTED : 
 
 1. AS A CONDITION TO RE CEIVE FEDERAL FUNDS ; OR 
 
 2. BY FEDERAL OR STATE LAW; AND 
 
 (2) IN A FORM PRESCRIBED BY THE CHIEF DATA OFFICER, 
INCLUDING WHEN THE D ATA IS USED IN ARTIFICIA L INTELLIGENCE . 
 
 (B) THE DEPARTMENT SHALL DEVE LOP AND PUBLISH GUID ANCE ON THE 
POLICIES AND PROCEDU RES FOR THE INVENTOR Y. 
 
SUBTITLE 8. ARTIFICIAL INTELLIGENCE . 
  Ch. 496 	2024 LAWS OF MARYLAND  
 
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3.5–801. 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 
INDICATED. 
 
 (B) (1) “ALGORITHMIC DECISION SYSTEM” MEANS A COMPUTATIONA L 
PROCESS THAT FACILIT ATES DECISION MAKING . 
 
 (2) “ALGORITHMIC DECISION SYSTEM” INCLUDES DECISIONS 
DERIVED FROM MACHINE S, STATISTICS, FACIAL RECOGNITION , AND DECISIONS ON 
PAPER. 
 
 (C) “ARTIFICIAL INTELLIGEN CE” MEANS A MACHINE –BASED SYSTEM THAT : 
 
 (1) CAN, FOR A GIVEN SET OF H UMAN–DEFINED OBJECTIVES , MAKE 
PREDICTIONS, RECOMMENDATIONS , OR DECISIONS INFLUEN CING REAL OR VIRTUAL 
ENVIRONMENTS ; 
 
 (2) USES MACHINE AND HUM AN–BASED INPUTS TO PERCEIVE REAL 
AND VIRTUAL ENVIRONM ENTS AND ABSTRACTS T HOSE PERCEPTIONS INT O MODELS 
THROUGH ANALYSIS IN AN AUTOMATED MANNER ; AND 
 
 (3) USES MODEL INFERENCE TO FORMULATE OPTIONS FOR 
INFORMATION OR ACTIO N. 
 
 (D) “HIGH–RISK” MEANS AN ACT THAT IS LIKELY TO: 
 
 (1) RESULT IN ANY UNLAWF UL DISCRIMINATION ; 
 
 (2) HAVE AN UNLAWFUL DIS PARATE IMPACT ON ANY INDIVIDUAL OR 
GROUP OF INDIVIDUALS ON THE BASIS OF ANY ACTUAL OR PERCEIVED 
CHARACTERISTIC ; OR 
 
 (3) HAVE A NEGATIVE IMPA CT ON THE HEALTH , SAFETY, OR  
WELL–BEING OF AN INDIVIDUAL.  
 
 (E) (D) “IMPACT ASSESSMENT ” MEANS A DOCUMENTED R ISK–BASED 
EVALUATION OF A SYST	EM THAT EMPLOYS 	RIGHTS–IMPACTING OR 
SAFETY–IMPACTING ARTIFICIAL INTELLIGE NCE. 
 
 (D) (1) “HIGH–RISK ARTIFICIAL INTE LLIGENCE” MEANS ARTIFICIAL 
INTELLIGENCE THAT IS A RISK TO INDIVIDUAL S OR COMMUNITIES , AS DEFINED   	WES MOORE, Governor 	Ch. 496 
 
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UNDER REGULATIONS AD OPTED BY THE DEPARTMENT IN CONSULT ATION WITH THE 
GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET. 
 
 (2) “HIGH–RISK ARTIFICIAL INTE	LLIGENCE” INCLUDES  
RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE AND SAF ETY–IMPACTING 
ARTIFICIAL INTELLIGE NCE. 
 
 (E) “IMPACT ASSESSMENT ” MEANS AN ASSESSMENT OF ARTIFICIAL 
INTELLIGENCE SYSTEMS MADE UNDER REGULATIO NS ADOPTED BY THE 
DEPARTMENT IN CONSULT ATION WITH THE GOVERNOR’S ARTIFICIAL 
INTELLIGENCE SUBCABINET AND REQUIR ED UNDER § 3.5–803 OF THIS SUBTITLE.  
 
 (E) (F) “PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N” MEANS: 
 
 (1) THE CONSTITUENT INST ITUTIONS OF THE UNIVERSITY SYSTEM 
OF MARYLAND AND THE UNIVERSITY OF MARYLAND CENTER FOR 
ENVIRONMENTAL SCIENCE; 
 
 (2) MORGAN STATE UNIVERSITY; OR 
 
 (3) ST. MARY’S COLLEGE OF MARYLAND. 
 
 (F) (G) “RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS 
ARTIFICIAL INTELLIGE NCE WHOSE OUTPUT SER VES AS A BASIS FOR D ECISION OR 
ACTION THAT HAS A LEGAL, MATERIAL, OR SIMILARLY SIGNIFI CANT EFFECT ON AN 
INDIVIDUAL’S OR COMMUNITY ’S: 
 
 (1) CIVIL RIGHTS , CIVIL LIBERTIES , OR PRIVACY , INCLUDING 
FREEDOM OF SPEECH , VOTING, HUMAN AUTONOMY , AND PROTECTIONS FROM 
DISCRIMINATION , EXCESSIVE PUNISHMENT , AND UNLAWFUL SURV EILLANCE;  
 
 (2) EQUAL OPPORTUNITIES , INCLUDING EQUITABLE ACCESS TO 
EDUCATION, HOUSING, CREDIT, EMPLOYMENT , AND OTHER SITUATIONS WHERE 
CIVIL RIGHTS AND EQU AL OPPORTUNITY PROTE CTIONS APPLY; OR 
 
 (3) ACCESS TO CRITICAL R ESOURCES OR SERVICES , INCLUDING 
HEALTH CARE, FINANCIAL SERVICES , SOCIAL SERVICES , TRANSPORTATION , 
NONDECEPTIVE INFORMA TION ABOUT GOODS AND SERVICES, AND GOVERNMENT 
BENEFITS OR PRIVILEG ES. IS SIGNIFICANTLY LIK ELY TO AFFECT CIVIL RIGHTS, 
CIVIL LIBERTIES, EQUAL OPPORTUNITIES , ACCESS TO CRITICAL RESOURCES, OR 
PRIVACY. 
 
 (G) (H) “SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE ” MEANS 
ARTIFICIAL INTELLIGE NCE THAT HAS THE POT ENTIAL TO MEANINGFULLY  Ch. 496 	2024 LAWS OF MARYLAND  
 
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SIGNIFICANTLY IMPACT THE SAFETY OF INDIVIDUALS AND C OMMUNITIES 
REGARDING: 
 
 (1) HUMAN LIFE OR WELL –BEING, INCLUDING LOSS OF LI FE, SERIOUS 
INJURY, BODILY HARM , BIOLOGICAL OR CHEMIC AL WEAPONS , OCCUPATIONAL 
HAZARDS, HARASSMENT OR ABUSE , OR MENTAL HEALTH ; 
 
 (2) THE CLIMATE OR THE E NVIRONMENT , INCLUDING IRREVERSIB LE 
OR SIGNIFICANT ENVIR ONMENTAL DAMAGE ;  
 
 (3) CRITICAL INFRASTRUCT URE, INCLUDING THE INFRAS TRUCTURE 
FOR VOTING AND PROTE CTING THE INTEGRITY OF ELECTIONS; OR 
 
 (4) STRATEGIC ASSETS OR RESOURCES, INCLUDING INTELLECTU AL 
PROPERTY. OF HUMAN LIFE, WELL–BEING, OR CRITICAL INFRASTR UCTURE. 
 
3.5–802. 
 
 (A) THIS SUBTITLE APPLIES T O EACH PUBLIC SENIOR HIGHER EDUCATION 
INSTITUTION AND BALTIMORE CITY COMMUNITY COLLEGE IN A PARTNERS HIP FOR 
THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF ARTIFICIAL 
INTELLIGENCE WITH A UNIT OF STATE GOVERNMENT . 
 
 (B) EXCEPT AS PROVIDED IN § 3.5–804(D) OF THIS SUBTITLE , THIS 
SUBTITLE DOES NOT AP PLY TO ARTIFICIAL IN TELLIGENCE DEPLOYED BY PUBLIC 
SENIOR HIGHER EDUCAT ION INSTITUTIONS OR BALTIMORE CITY COMMUNITY 
COLLEGE USED SOLELY F OR A RESEARCH OR ACA DEMIC PURPOSE , INCLUDING IN A 
PARTNERSHIP FOR THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF 
ARTIFICIAL INTELLIGE NCE WITH A UNIT OF STATE GOVERNMENT .  
 
 (C) A PUBLIC SENIOR HIGHER EDUCATION INSTITUTIO N OR BALTIMORE 
CITY COMMUNITY COLLEGE SHALL ESTABLI SH POLICIES AND PROC EDURES THAT 
ARE FUNCTIONALLY COM PATIBLE WITH THE POL ICIES AND PROCEDURES ADOPTED 
UNDER § 3.5–804(A) OF THIS SUBTITLE FOR ARTIFICIAL INTELLIGE NCE DEPLOYED 
FOR AN OPERATIONS –RELATED PURPOSE . 
 
 (A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 
THIS SUBTITLE DOES NOT APPLY TO:  
 
 (I) THE OFFICE OF THE ATTORNEY GENERAL;  
 
 (II) THE COMPTROLLER ; OR 
   	WES MOORE, Governor 	Ch. 496 
 
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 (III) THE STATE TREASURER. 
 
 (2) ON OR BEFORE JUNE 1, 2025, EACH ENTITY LISTED U NDER 
PARAGRAPH (1) OF THIS SUBSECTION S HALL ESTABLISH POLIC IES AND 
PROCEDURES THAT ARE FUNCTIONALLY COMPATI BLE WITH THE POLICIE S AND 
PROCEDURES ADOPTED U NDER § 3.5–804(A) OF THIS SUBTITLE FOR THE 
DEVELOPMENT , PROCUREMENT , DEPLOYMENT , USE, AND ONGOING ASSESSME NT OF 
SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTE LLIGENCE.  
 
 (B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 
THIS SUBTITLE APPLIE S TO EACH PUBLIC SEN IOR HIGHER EDUCATION INSTITUTION 
AND BALTIMORE CITY COMMUNITY COLLEGE. 
 
 (2) THIS SUBTITLE DOES NO T APPLY TO ARTIFICIA L INTELLIGENCE 
DEPLOYED BY A PUBLIC SENIOR HIGHER EDUCAT ION INSTITUTION OR BALTIMORE 
CITY COMMUNITY COLLEGE THAT IS USED SOLELY FOR A RESEARC H OR ACADEMIC 
PURPOSE, INCLUDING IN PARTNERSHIP WITH A UNIT OF STATE GOVERNMENT FOR 
THE DEVELOPMENT , PROCUREMENT , DEPLOYMENT , OR USE OF ARTIFICIAL 
INTELLIGENCE . 
 
 (3) ON OR BEFORE JUNE 1, 2025, EACH PUBLIC SENIOR H IGHER 
EDUCATION INSTITUTIO N AND BALTIMORE CITY COMMUNITY COLLEGE SHALL 
ESTABLISH POLICIES AND PROCEDURES THAT ARE FUNCTIONALLY COMPATI BLE 
WITH THE POLICIES AN D PROCEDURES ADOPTED UNDER § 3.5–804(A) OF THIS 
SUBTITLE FOR THE DEV ELOPMENT, PROCUREMENT , DEPLOYMENT , USE, AND 
ONGOING ASSESSMENT O F SYSTEMS THAT EMPLO Y HIGH–RISK ARTIFICI AL 
INTELLIGENCE USED SO LELY FOR A RESEARCH OR ACADEMIC PURPOSE .  
 
 (4) ON OR BEFORE SEPTEMBER 1, 2025, AND EACH YEAR 
THEREAFTER , EACH PUBLIC SENIOR H IGHER EDUCATION INST ITUTION AND 
BALTIMORE CITY COMMUNITY COLLEGE SHALL SUBMIT TO THE DEPARTMENT A 
REPORT ON ALL HIGH–RISK ARTIFICIAL INTE LLIGENCE PROCURED AN D DEPLOYED 
FOR A RESEARCH OR AC ADEMIC PURPOSE .  
 
3.5–803.  
 
 (A) ON OR BEFORE DECEMBER 1, 2024 2025, AND ANNUALLY REGULARLY 
THEREAFTER , EACH UNIT OF STATE GOVERNMENT SHAL L: 
 
 (1) CONDUCT AN INVENTORY OF SYSTEMS THAT EMPL	OY  
RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE; 
AND  
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 (2) PROVIDE THE INVENTOR Y TO THE DEPARTMENT IN A FORMA T 
REQUIRED BY THE DEPARTMENT . 
 
 (B) FOR EACH SYSTEM , THE INVENTORY REQUIR ED BY THIS SECTION SHAL L 
INCLUDE: 
 
 (1) THE NAME OF THE SYST EM; 
 
 (2) THE VENDOR THAT PROV IDED THE SYSTEM , IF APPLICABLE; 
 
 (3) A DESCRIPTION OF THE CAPABILITIES OF THE SYSTEM; 
 
 (4) A STATEMENT OF THE P URPOSE AND THE INTEN DED USES OF THE 
SYSTEM;  
 
 (5) WHETHER THE SYSTEM U NDERWENT AN IMPACT A SSESSMENT 
PRIOR TO BEING IMPLEMENTED DEPLOYED; 
 
 (6) WHETHER THE SYSTEM I S USED TO INDEPENDEN TLY MAKE A 
DECISION OR JUDGMENT OR TO INFORM OR SUPP ORT A DECISION OR JU DGMENT 
DETERMINED BY THE DEPARTMENT TO INVOLVE A HIGH–RISK ACTION  
RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE; 
AND 
 
 (7) A DETERMINATION OF THE RISK THAT USE OF A S YSTEM MAY BE 
HIGH–RISK SUMMARY OF THE RESUL TS OF THE MOST RECEN T IMPACT ASSESSMENT . 
 
 (C) THE DEPARTMENT SHALL MAKE EACH INVENTORY REQUI RED BY THIS 
SECTION AN AGGREGATED STATEW IDE INVENTORY PUBLICLY AVAILABLE O N ITS 
WEBSITE.  
 
 (D) (1) THE DEPARTMENT MAY NOT MA KE PUBLICLY AVAILABL E ON THE 
DEPARTMENT ’S WEBSITE INFORMATIO N FROM THE INVENTORI ES REQUIRED BY 
THIS SECTION THAT RE LATE TO THE SAFETY A ND SECURITY OF STATE SYSTEMS IF 
THE PUBLICATION OF T HE INFORMATION IS LI KELY TO COMPROMISE T HE SECURITY 
OR INTEGRITY OF THE SYSTEM. 
 
 (2) ON REQUEST , THE DEPARTMENT SHALL PROV IDE TO THE 
GOVERNOR, MEMBERS O F THE GENERAL ASSEMBLY, AND LAW ENFORCEMENT THE 
INFORMATION DESCRIBE D IN PARAGRAPH (1) OF THIS SUBSECTION . 
 
 (E) (1) ON OR BEFORE FEBRUARY 1, 2025, DECEMBER 31, 2025 2026, 
EACH UNIT OF STATE GOVERNMENT SHAL L CONDUCT AN IMPACT ASSESSMENT OF A   	WES MOORE, Governor 	Ch. 496 
 
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SYSTEM PROCURED ON OR AFTER FEBRUARY 1, 2025 2026, THAT INVOLVES A  
HIGH–RISK ACTION RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK 
ARTIFICIAL INTELLIGE NCE. 
 
 (2) ON OR BEFORE FEBRUARY JULY 1, 2027, EACH UNIT OF STATE 
GOVERNMENT SHALL CON DUCT AN IMPACT ASSES SMENT OF A SYSTEM PR OCURED 
BEFORE FEBRUARY 1, 2025 2026, THAT INVOLVES RIGHTS–IMPACTING OR 
SAFETY–IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE.  
 
3.5–803. 3.5–804. 
 
 (A) ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENT , IN 
CONSULTATION WITH TH E GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET, 
SHALL ADOPT POLICIES AND PROCEDURES CONCE RNING THE DEVELOPMEN T, 
PROCUREMENT , IMPLEMENTATION DEPLOYMENT , USE, AND ONGOING ASSESSME NT 
OF SYSTEMS THAT EMPL OY RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK 
ARTIFICIAL INTELLIGE NCE BY A UNIT OF STATE GOVERNMENT . 
 
 (B) THE POLICIES AND PROC EDURES REQUIRED BY SUBSECTION (A) OF 
THIS SECTION SHALL : 
 
 (1) SUBJECT TO ANY OTHER APPLICABLE LAW , GOVERN THE 
PROCUREMENT , IMPLEMENTATION DEPLOYMENT , AND ONGOING ASSESSME NT OF 
SYSTEMS THAT EMPLOY RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK 
ARTIFICIAL INTELLIGE NCE BY A UNIT OF STATE GOVERNMENT ; 
 
 (2) BE SUFFICIENT TO ENSURE THAT THE U SE OF ANY SYSTEM THA T 
EMPLOYS ARTIFICIAL I NTELLIGENCE BY ANY U NIT OF STATE GOVERNMENT IS N OT 
HIGH–RISK; 
 
 (3) REQUIRE EACH UNIT OF STATE GOVERNMENT TO A SSESS THE 
LIKELY IMPACT OF ANY SYSTEM THAT EMPLOYS ARTIFICIAL INTELLIGE NCE BEFORE 
IMPLEMENTING THE SYS TEM; 
 
 (2) DEFINE THE CRITERIA FOR AN INVENTORY OF SYSTEMS THAT 
EMPLOY RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL 
INTELLIGENCE ; 
 
 (3) GOVERN THE PROCUREME NT, DEPLOYMENT , USE, AND ONGOING 
ASSESSMENT OF SYSTEM	S THAT EMPLOY RIGHTS	–IMPACTING OR 
SAFETY–IMPACTING ARTIFICIAL INTELLIGENCE FOR AN OPERATIONS–RELATED 
PURPOSE BY A UNIT OF STATE GOVERNMENT IN P ARTNERSHIP WITH A PU BLIC 
SENIOR HIGHER EDUCATION INSTITUTIO N OR WITH BALTIMORE CITY COMMUNITY 
COLLEGE;   Ch. 496 	2024 LAWS OF MARYLAND  
 
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 (3) BE SUFFICIENT TO ENS URE THAT THE USE OF ANY SYSTEM THAT 
EMPLOYS ARTIFICIAL I NTELLIGENCE BY A UNI T OF STATE GOVERNMENT IS 
GOVERNED BY ADEQUATE GUARDRAILS TO PROTEC T INDIVIDUALS AND 
COMMUNITIES ; 
 
 (4) IF THE DEPARTMENT IS NOTIFIE D THAT AN INDIVIDUAL OR GROUP 
OF INDIVIDUALS MAY H AVE BEEN NEGATIVELY IMPACTED BY A SYSTEM THAT 
EMPLOYS HIGH –RISK ARTIFICIAL INTE LLIGENCE, REQUIRE THE DEPARTMENT TO :  
 
 (I) NOTIFY AN INDIVIDUAL OR A GROUP O F INDIVIDUALS 
DETERMINED TO HAVE B EEN NEGATIVELY IMPAC TED BY A SYSTEM THAT EMP LOYS 
RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL 
INTELLIGENCE ; AND 
 
 (II) PROVIDE GUIDANCE TO AN INDIVIDUAL OR A G ROUP OF 
INDIVIDUALS DETERMIN ED TO HAVE BEEN NEGA TIVELY IMPACTED BY A SYSTEM 
THAT EMPLOYS RIGHTS–IMPACTING OR SAFETY –IMPACTING HIGH–RISK ARTIFICIAL 
INTELLIGENCE ON AVAILABLE OPTIONS TO OPT OUT OF THE SY STEM; AND 
 
 (5) PROVIDE GUIDANCE TO UNITS OF STATE GOVERNMENT ON 
PROCUREMENT OF A SYS	TEM THAT EMPLOYS RIGHTS–IMPACTING OR 
SAFETY–IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE THAT ENSURES DAT A 
PRIVACY AND COMPLIAN CE WITH APPLICABLE S TATUTES AND REGULATI ONS. 
 
 (C) THE DEPARTMENT SHALL MAKE THE POLICIES AND PRO CEDURES 
REQUIRED BY SUBSECTION (A) OF THIS SECTION PUBLICL Y AVAILABLE ON ITS 
WEBSITE WITHIN 45 DAYS AFTER THE POLIC IES AND PROCEDURES A RE ADOPTED. 
 
 (D) EACH PUBLIC SENIOR HI GHER EDUCATION INSTI TUTION AND 
BALTIMORE CITY COMMUNITY COLLEGE SHALL SUBMIT TO THE DEPARTMENT AN 
ANNUAL REPORT ON ART IFICIAL INTELLIGENCE PROCURED AND DEPLOYE D.  
 
3.5–804. 3.5–805. 
 
 (A) BEGINNING JULY JANUARY JULY 1, 2025, A UNIT OF STATE 
GOVERNMENT MAY NOT P ROCURE OR IMPLEMENT A DEPLOY A NEW SYSTEM THAT 
EMPLOYS ARTIFICIAL I NTELLIGENCE UNLESS T HE SYSTEM COMPLIES W ITH THE 
POLICIES AND PROCEDU RES ADOPTED UNDER § 3.5–803 3.5–804 OF THIS SUBTITLE. 
 
 (B) A UNIT OF STATE GOVERNMENT THAT EMPLOYS RIGHTS–IMPACTING OR 
SAFETY–IMPACTING HIGH–RISK ARTIFICIAL INTELLIGE NCE SHALL CONDUCT   	WES MOORE, Governor 	Ch. 496 
 
– 15 – 
REGULAR IMPACT ASSES SMENTS, AS DETERMINED BY THE GOVERNOR’S ARTIFICIAL 
INTELLIGENCE SUBCABINET OF THE GOVERNOR’S EXECUTIVE COUNCIL.  
 
3.5–805. 3.5–806. 
 
 (A) THERE IS A GOVERNOR’S ARTIFICIAL INTELLIGENCE SUBCABINET OF 
THE GOVERNOR’S EXECUTIVE COUNCIL. 
 
 (B) THE PURPOSE OF THE SUBCABINET IS TO FACI LITATE AND ENHANCE 
COOPERATION AMONG UN ITS OF STATE GOVERNMENT , IN CONSULTATION WITH 
ACADEMIC INSTITUTION S AND INDUSTRIES UTI LIZING ARTIFICIAL IN TELLIGENCE. 
 
 (C) THE SUBCABINET CONSISTS O F THE FOLLOWING MEMB ERS: 
 
 (1) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 
 
 (2) THE SECRETARY OF BUDGET AND MANAGEMENT , OR THE 
SECRETARY’S DESIGNEE; 
 
 (3) THE SECRETARY OF GENERAL SERVICES, OR THE SECRETARY’S 
DESIGNEE; 
 
 (4) THE SECRETARY OF LABOR, OR THE SECRETARY’S DESIGNEE; 
 
 (5) THE SECRETARY OF COMMERCE, OR THE SECRETARY’S 
DESIGNEE; 
 
 (6) THE DIRECTOR OF THE GOVERNOR’S OFFICE OF HOMELAND 
SECURITY, OR THE DIRECTOR’S DESIGNEE; 
 
 (7) THE CHIEF PRIVACY OFFICER, OR THE CHIEF PRIVACY 
OFFICER’S DESIGNEE;  
 
 (8) THE CHIEF DATA OFFICER, OR THE CHIEF DATA OFFICER’S 
DESIGNEE; 
 
 (9) THE CHIEF INFORMATION SECURITY OFFICER, OR THE CHIEF 
INFORMATION SECURITY OFFICER’S DESIGNEE; 
 
 (10) THE GOVERNOR’S SENIOR ADVISOR FOR RESPONSIBLE 
ARTIFICIAL INTELLIGENCE , OR THE SENIOR ADVISOR’S DESIGNEE; AND 
 
 (11) ANY OTHER MEMBER OF THE GOVERNOR’S EXECUTIVE COUNCIL, 
APPOINTED BY THE GOVERNOR.  Ch. 496 	2024 LAWS OF MARYLAND  
 
– 16 – 
 
 (D) THE SECRETARY SHALL CHAIR THE SUBCABINET. 
 
 (E) THE SUBCABINET SHALL : 
 
 (1) DEVELOP STRATEGY , POLICY, AND MONITORING PROCE SSES FOR 
RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AN D 
ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 
 
 (2) OVERSEE THE STATE’S IMPLEMENTATION OF :  
 
 (I) ARTIFICIAL INTELLIGE NCE INVENTORY ; 
 
 (II) DATA INVENTO RY; 
 
 (III) ARTIFICIAL INTELLIGE NCE IMPACT ASSESSMEN TS; 
 
 (IV) (III) MONITORING OF ARTIFI	CIAL INTELLIGENCE 
INVOLVING A HIGH –RISK ACTION RIGHTS–IMPACTING OR SAFETY –IMPACTING 
ARTIFICIAL INTELLIGE NCE; AND 
 
 (III) MONITORING OF HIGH –RISK ARTIFICIAL INTELLIGENCE ; 
AND  
 
 (V) (IV) COMPLIANCE WITH STATE POLICIES AND 
PROCEDURES ;  
 
 (3) SUPPORT ARTIFICIAL I NTELLIGENCE AND DATA INNOVATION 
ACROSS UNITS OF STATE GOVERNMENT AND IN PRIVATE SECTO R ENTERPRISE BY:; 
 
 (I) IDENTIFYING AND PRIO RITIZING BEST USES OF ARTIFICIAL 
INTELLIGENCE IN EACH UNIT OF STATE GOVERNMENT AND IN PRIVATE SECTOR 
ENTERPRISE; 
 
 (II) TESTING PROOFS OF CO NCEPT OF PRIORITY AR TIFICIAL 
INTELLIGENCE USE IN PROTOTYPING ; 
 
 (III) REDUCING BARRIERS TO THE RESPONSIBLE USE OF 
ARTIFICIAL INTEL LIGENCE AND STATE DATA; 
 
 (IV) DEVELOPING SUCCESSFU L ARTIFICIAL INTELLI GENCE 
PILOTS INTO PRODUCTI ON; AND 
 
 (V) TRAINING AND WORKFOR CE DEVELOPMENT ;   	WES MOORE, Governor 	Ch. 496 
 
– 17 – 
 
 (4) DEVELOP AND IMPLEMEN T A COMPREHENSIVE AC TION PLAN FOR 
RESPONSIBLE AND PROD UCTIVE USE OF ARTIFI CIAL INTELLIGENCE AND 
ASSOCIATED DATA BY U NITS OF STATE GOVERNMENT ; 
 
 (5) ESTABLISH PARTNERSHI PS, MEMORANDA OF UNDERST ANDING, 
AND CONTRACTS TO SUP PORT THE AIMS OF THI S SECTION; 
 
 (6) PROMOTE ARTIFICIAL I NTELLIGENCE KNOWLEDG E, SKILLS, AND 
TALENT IN STATE GOVERNMENT BY: 
 
 (I) IDENTIFYING AND OFFE RING TRAINING PROGRA MS FOR 
STATE WORKERS ON THE USE OF ARTIFICIAL IN TELLIGENCE AND PARTI CULARLY 
GENERATIVE ARTIFICIA L INTELLIGENCE ; AND 
 
 (II) EXPLORING WAYS TO PR OVIDE EXTERNAL ARTIF ICIAL 
INTELLIGENCE TALENT AN OPPORTUNITY TO SERVE TH E STATE AND UNITS OF 
STATE GOVERNMENT IN T ARGETED, SHORT–TERM PROJECTS , INCLUDING BY 
LEVERAGING INSTITUTI ONS OF HIGHER EDUCAT ION OR INDUSTRY ; AND 
 
 (7) IDENTIFY ARTIFICIAL INTELLIGENCE USE CAS ES AND BUILD 
FOUNDATIONAL INFRAST RUCTURE BY REQUIRING: 
 
 (I) THE DEPARTMENT TO EVALUAT	E RELEVANT 
INFRASTRUCTURE TO SA FELY, SECURELY, AND EFFICIENTLY TEST ARTIFICIAL 
INTELLIGENCE PROOFS OF CONCEPT AND PILOT S; 
 
 (II) THE DEPARTMENT OF GENERAL SERVICES, IN 
CONSULTATION WITH TH E DEPARTMENT , TO CREATE A MODEL FOR RUNNI NG AND 
PROCURING ARTIFICIAL INTELLIGENCE PROOFS OF CONCEPT AND PILOT S, IN 
ACCORDANCE WITH STATE LAWS, REGULATIONS , AND POLICIES; AND 
 
 (III) THE DEPARTMENT , IN CONSULTATION WITH THE 
SUBCABINET, TO COORDINATE WITH A GENCIES TO PROVIDE S UPPORT IN 
IDENTIFYING AND PRIO RITIZING USE CASES A ND EXECUTING PROOFS OF CONCEPT 
AND PILOTS ALIGNED W ITH THE GOVERNOR’S PRIORITIES. 
 
 (F) THE GOVERNOR SHALL PROVID E THE SUBCABINET WITH SUFFI CIENT 
RESOURCES TO PERFORM THE FUNCTIONS OF THI S SECTION. 
 
 (G) FOR EACH FISCAL YEAR , THE GOVERNOR MAY INCLUDE IN THE ANNUAL 
BUDGET BILL AN APPRO PRIATION OF UP TO $3,000,000 FOR PARTNERSHIPS AND 
CONTRACTS TO SUPPORT THE FUNCTIONS REQUIR ED IN THIS SECTION. 
  Ch. 496 	2024 LAWS OF MARYLAND  
 
– 18 – 
12–101. 
 
 (a) This section does not apply to: 
 
 (1) capital expenditures by the Department of Transportation or the 
Maryland Transportation Authority, in connection with State roads, bridges, or highways, 
as provided in § 12–202 of this title; [or] 
 
 (2) procurements by the Department of General Services AND THE 
DEPARTMENT OF INFORMATION TECHNOLOGY for the purpose of modernizing 
INFORMATION TECHNOLO GY AND cybersecurity infrastructure for the State valued 
below $1,000,000; OR 
 
 (3) COMPETITIVE PROOF OF CONCEPT PROCUREMENTS VALUED 
BELOW $1,000,000 MADE UNDER § 13–116 OF THIS ARTICLE . 
 
 (b) (1) The Board may control procurement by units. 
 
 (2) To implement the provisions of this Division II, the Board may: 
 
 (i) set policy; 
 
 (ii) adopt regulations, in accordance with Title 10, Subtitle 1 of the 
State Government Article; and 
 
 (iii) establish internal operational procedures consistent with this 
Division II. 
 
 (3) The Board shall ensure that the regulations of the primary 
procurement units provide for procedures that are consistent with this Division II and Title 
13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the 
circumstances of a particular type of procurement or a particular unit do not require 
otherwise, are substantially the same. 
 
 (4) The Board may delegate any of its authority that it determines to be 
appropriate for delegation and may require prior Board approval for specified procurement 
actions. 
 
 (5) Except as limited by the Maryland Constitution, the Board may 
exercise any control authority conferred on a primary procurement unit by this Division II 
and, to the extent that its action conflicts with the action of the primary procurement unit, 
the action of the Board shall prevail. 
   	WES MOORE, Governor 	Ch. 496 
 
– 19 – 
 (c) On or before December 1 each year, the Department of General Services shall 
submit a report to the Board on procurements made under subsection (a)(2) of this section 
that shall include for each procurement: 
 
 (1) the purpose of the procurement; 
 
 (2) the name of the contractor; 
 
 (3) the contract amount; 
 
 (4) the method of procurement utilized; 
 
 (5) the number of bidders who bid on the procurement; and 
 
 (6) the contract term. 
 
 (D) ON OR BEFORE DECEMBER 1 EACH YEAR, THE DEPARTMENT OF 
GENERAL SERVICES SHALL SUBMIT A REPORT TO THE BOARD ON PROCUREMENTS 
MADE UNDER SUBSECTIO N (A)(3) OF THIS SECTION THAT SH ALL INCLUDE FOR EACH 
PROCUREMENT : 
 
 (1) THE PURPOSE OF THE P ROCUREMENT ; 
 
 (2) THE NAME OF THE CONT RACTOR; 
 
 (3) THE CONTRACT AMOUNT ; 
 
 (4) THE NUMBER OF PROPOS ALS RECEIVED ON THE PROCUREMENT ; 
AND 
 
 (5) THE CONTRACT TERM . 
 
13–116. 
 
 (A) IN THIS SECTION, “PROOF OF CONCEPT ” MEANS A TEST, EVALUATION, 
DEMONSTRATION , OR PILOT PROJECT OF A GOOD OR SERVICE GOOD, SERVICE, OR 
TECHNOLOGY IN A REAL–WORLD ENVIRONMENT TO EVALUATE WHETHER THE GOOD 
OR SERVICE GOOD, SERVICE, OR TECHNOLOGY CAN BE SUCCESSFULLY DEPLOYED 
AND IS BENEFICIAL TO THE STATE. 
 
 (B) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IS A FORMAL 
COMPETITIVE PROCUREM ENT METHOD THAT MAY BE USED TO SOLICIT P ROPOSALS 
FOR THE CONDUCT OF A PROOF OF CONCEPT PRI OR TO FULL IMPLEMENT ATION 
WHEN THE HEAD OF A U NIT DETERMINES THE P ROCESS TO BE APPROPR IATE AND IN 
THE BEST INTERESTS O F THE UNIT, INCLUDING:   Ch. 496 	2024 LAWS OF MARYLAND  
 
– 20 – 
 
 (I) TESTING SOFTWARE –AS–A–SERVICE OR OFF –THE–SHELF 
SOFTWARE; 
 
 (II) TESTING NEW, INNOVATIVE PRODUCTS OR SERVICES; OR 
 
 (III) TESTING A PRODUCT OR SERVICE CONCEPTUALIZ ED OR 
CONCEIVED OF BY A UN IT OF STATE GOVERNMENT . 
 
 (2) (I) AFTER OBTAINING THE A PPROVAL OF THE HEAD OF THE 
UNIT AND BEFORE COND UCTING A COMPETITIVE PROOF OF CONCEPT 
PROCUREMENT , THE UNIT SHALL OBTAI N APPROVAL FROM THE SECRETARY OF 
INFORMATION TECHNOLOGY , OR THE SECRETARY’S DESIGNEE.  
 
 (II) THE SECRETARY OF INFORMATION TECHNOLOGY MAY 
GRANT APPROVAL FOR A COMPETITIVE PROOF OF CONCEPT PROCUREMENT IF THE 
UNIT:  
 
 1. HAS SUFFICIENT INTER NAL RESOURCES TO MAN AGE 
THE PROOF OF CONCEPT , INCLUDING HUMAN CAPI TAL, SUBJECT MATTER 
EXPERTISE, AND TECHNOLOGICAL IN FRASTRUCTURE , OR HAS THE MEANS TO 
OBTAIN THESE RESOURC ES; AND 
 
 2. ENTERS INTO A MEMORA NDUM OF UNDERSTANDIN G 
WITH THE DEPARTMENT OF INFORMATION TECHNOLOGY THAT REQUI RES REGULAR 
STATUS UPDATES , VENDOR CAPACITY , AND ANY OTHER INFORM ATION NECESSARY 
FOR THE DEPARTMENT OF INFORMATION TECHNOLOGY TO EVALUAT E WHETHER 
THE PROOF OF CONCEPT CAN BE SUCCESSFULLY DEPLOYED AND IS BENE FICIAL TO 
THE STATE.  
 
 (C) (1) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT MAY BE 
CONDUCTED THROUGH TH E ISSUANCE OF A SOLICITATION BY ANY METHOD OF 
PROCUREMENT AUTHORIZ ED UNDER THIS DIVISION II. 
 
 (2) A COMPETITIVE PROOF OF CONCEPT PROCUREMENT 
SOLICITATION SHALL I NCLUDE A STATEMENT O F: 
 
 (I) THE SCOPE OF WORK OR PROJECT DESCRIPTION , 
INCLUDING THE INTEND ED USE, QUANTITY, ESTIMATED TIME FRAME FOR THE 
PROOF OF CONCEPT , AND ANTICIPATED NUMB ER OF PROOF OF CONCE PT AWARDS 
THAT WILL BE MADE ; AND  
   	WES MOORE, Governor 	Ch. 496 
 
– 21 – 
 (II) THE FACTORS , INCLUDING PRICE , THAT WILL BE USED IN 
EVALUATING PROPOSALS AND THE RELATIVE IMP ORTANCE OF EACH . 
 
 (3) A SOLICITATION MAY BE DISTR IBUTED TO VENDORS KN OWN TO 
OFFER GOODS OR SERVI CES WITHIN THE SCOPE OF THE PROOF OF CONC EPT AND 
SHALL, EXCEPT FOR PROCUREME NTS UNDER $15,000 NOT OTHERWISE REQUIR ED 
BY LAW TO BE POSTED , BE POSTED ON EMARYLAND MARKETPLACE ADVANTAGE, IN 
ACCORDANCE WITH THE PO LICIES AND PROCEDURE S UNDER SUBSECTION (G) OF 
THIS SECTION. 
 
 (D) AFTER RECEIPT OF PROP OSALS BUT BEFORE AWA RD OF A 
PROCUREMENT CONTRACT , A UNIT MAY:  
 
 (1) CONDUCT DISCUSSIONS WITH AN OFFEROR TO E NSURE FULL 
UNDERSTANDING OF : 
 
 (I) THE REQUIREMENTS OF THE UNIT, AS SET FORTH IN THE 
REQUEST FOR PROPOSAL S; AND 
 
 (II) THE PROPOSAL SUBMITT ED BY THE OFFEROR ; AND 
 
 (2) REQUEST PRODUCT SAMP LES FOR TESTING BY T HE UNIT OR A 
DEMONSTRATION OF A P RODUCT OR SERVICE AN D USE THESE SAMPLES OR 
DEMONSTRATIONS IN ITS EV ALUATION PROCESS . 
 
 (E) A REQUEST FOR PRODUCT SAMPLES FOR TESTING OR DEMONSTRATION 
MADE UNDER SUBSECTIO N (D)(2) OF THIS SECTION SHAL L BE ISSUED TO ALL 
OFFERORS DEEMED REAS ONABLE AT THE TIME O F THE REQUEST .  
 
 (F) A UNIT MAY: 
 
 (1) AWARD ONE OR MORE OF THE PROPOSALS A CONTRACT FOR THE 
PROOF OF CONCEPT ; AND 
 
 (2) PROVIDE AN OPTION FO R THE STATE TO PROCEED WITH A FULL 
IMPLEMENTATION OF AN AWARDED PROPOSAL .  
 
 (G) A VENDOR AWARDED A PRO OF OF CONCEPT PROCUR EMENT SHALL BE 
ELIGIBLE TO BID ON A PROCUREMENT TO IMP LEMENT A PROPOSAL RE LATED TO 
THE PROOF OF CONCEPT PROCUREMENT . 
 
 (H) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH 
THE DEPARTMENT OF INFORMATION TECHNOLOGY , SHALL ADOPT POLICIES AND  Ch. 496 	2024 LAWS OF MARYLAND  
 
– 22 – 
PROCEDURES FOR THE D EVELOPMENT AND IMPLE MENTATION OF COMPETITIV E 
PROOF OF CONCEPT PRO CUREMENTS . 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 
2024, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council, 
in consultation with the appropriate stakeholders, shall submit an interim report and 
recommendations to the Governor and, in accordance with § 2 –1257 of the State 
Government Article, the General Assembly on the risks and opportunities and associated 
recommendations related to: 
 
 (1) use of artificial intelligence to support job and business creation and 
growth in the State;  
 
 (2) in collaboration with the Maryland Department of Labor and, as 
appropriate, external experts, workers, labor unions, businesses, and civil society, use of 
artificial intelligence by the State workforce, including opportunities to upskill the 
workforce; 
 
 (3) in consultation with the Maryland Department of Emergency 
Management, the Public Service Commission, the Department of the Environment, and the 
Department of Transportation, use of artificial intelligence in critical infrastructure and 
guidelines for owners and operators to incorporate risk management into critical 
infrastructure, including mapping emergent cyber and physical security and resiliency 
risks to the State infrastructure and residents stemming from artificial intelligence; 
 
 (4) in consultation with the Maryland Department of Health, the U.S. 
Department of Veterans Affairs, and the U.S. Department of Homeland Security, use of 
systems that employ artificial intelligence in health care delivery and human services; 
 
 (5) in consultation with the Department of Information Technology Office 
of Security Management and the Chief Privacy Officer, use of artificial intelligence in the 
discovery and remediation of vulnerabilities in cybersecurity and data management across 
State and local government, including school systems; 
 
 (6) in consultation with the State Chief Privacy Officer and an independent 
contractor identified by the Subcabinet, data privacy, specifically regarding the potential 
to train systems that employ artificial intelligence; 
 
 (7) in consultation with the Maryland Department of Labor, the 
Department of Commerce, and the Governor’s Office of Small, Minority, and Women 
Business Affairs, use of artificial intelligence in workforce training and hiring of talent with 
expertise in artificial intelligence, employment practices, and workforce development 
implications; 
   	WES MOORE, Governor 	Ch. 496 
 
– 23 – 
 (8) in consultation with the Office of the Attorney General and the Judicial 
Branch, use of artificial intelligence in the criminal justice system, including whether and 
how such technology should be used, in what contexts, and with what safeguards; 
 
 (9) the procurement of systems that employ artificial intelligence, 
including efforts to increase competition and assurance that contracts retain sufficient data 
privacy protection against vendor lock–in; 
 
 (10) use of artificial intelligence by occupations licensed and certified by the 
State, in consultation with the boards, identifying ways for the regulatory board to identify 
and manage the risks of opportunities of artificial intelligence and determine appropriate 
permitted use and supervision by licensees; and 
 
 (11) use of artificial intelligence in local school systems, including 
recommendations to the State on the responsible and productive use of artificial 
intelligence based on a review of the federal Department of Education Office of Educational 
Technology’s report entitled “Artificial Intelligence and the Future of Teaching and 
Learning: Insights and Recommendations”, in collaboration with the State Department of 
Education. 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That: 
 
 (a) The Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive 
Council, in consultation with the appropriate units of State government, shall: 
 
 (1) develop a roadmap to review the risks and opportunities associated 
with the use of artificial intelligence in State services; and 
 
 (2) on or before December 1, 2024, submit the roadmap to the Governor 
and, in accordance with § 2–1257 of the State Government Article, the General Assembly. 
 
 (b) The roadmap developed under subsection (a) of this section shall include:  
 
 (1) a plan to study the use of artificial intelligence:  
 
 (i) to support job and business creation and growth in the State;  
 
 (ii) by the State workforce, including opportunities to upskill the 
workforce;  
 
 (iii) in critical infrastructure, including guidelines for owners and 
operators to incorporate risk management into critical infrastructure;  
 
 (iv) in health care delivery and human services; 
  Ch. 496 	2024 LAWS OF MARYLAND  
 
– 24 – 
 (v) in the discovery and remediation of vulnerabilities in 
cybersecurity and data management across State and local government, including school 
systems;  
 
 (vi) in data privacy, specifically regarding the ability to train systems 
that employ artificial intelligence;  
 
 (vii) in workforce training;  
 
 (viii) in the criminal justice system and for public safety purposes, 
including whether and how such technology should be used, in what contexts, and with 
what safeguards;  
 
 (ix) by occupations licensed and certified by the State, including 
identifying ways for State regulatory boards to identify and manage the risks and 
opportunities of artificial intelligence and determine appropriate permitted use and 
supervision of licensees;  
 
 (x) in local school systems, including recommendations to the State 
on the responsible and productive use of artificial intelligence;  
 
 (xi) in the conduct of elections, including reducing or eliminating the 
spread of misinformation; and 
 
 (xii) any other State service identified by the Subcabinet;  
 
 (2) a plan to study:  
 
 (i) the hiring of talent with expertise in artificial intelligence, 
employment practices, and workforce development implications;  
 
 (ii) methods to ensure that there is diversity in contract awards and 
training programs related to artificial intelligence in the State, including racial diversity; 
and 
 
 (iii) the procurement of systems that employ artificial intelligence, 
including efforts to increase competition and assurance that contracts retain sufficient data 
privacy protection against vendor lock–in;  
 
 (3) a prioritization of the study topics listed under this subsection, 
including the methodology for the prioritization;  
 
 (4) a list of appropriate stakeholders identified to participate in each study 
topic; and 
 
 (5) the projected timeline to complete each study topic.    	WES MOORE, Governor 	Ch. 496 
 
– 25 – 
 
 SECTION 3. AND BE IT FURTHER ENACTED, That, on or before December 1, 
2025, the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council 
shall submit a report and recommendations to the Governor and, in accordance with §  
2–1257 of the State Government Article, the General Assembly on the sufficiency of the 
Subcabinet to accomplish the artificial intelligence goals of the State and the efficacy of the 
potential transition of the Subcabinet to a department or independent unit of State 
government. 
 
 SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 
Assembly that the Department of Information Technology: 
 
 (1) evaluate the potential of artificial intelligence in creating a statewide 
virtual 3–1–1 portal as a source for Maryland residents to obtain nonemergency 
government information and services; and 
 
 (2) if the Department determines that the use of artificial intelligence in 
creating a virtual 3–1–1 portal is feasible, to prioritize the creation of a virtual 3–1–1 portal 
through a competitive proof of concept procurement in accordance with § 13–116 of the 
State Finance and Procurement Article, as enacted by Section 1 of this Act.  
 
 SECTION 4. AND BE IT FURTHER ENACTED, Th at it is the intent of the Maryland 
General Assembly, contingent on the passage of S.B. 955 or H.B. 1174 of the Acts of the 
General Assembly of 2024 by both Houses of the General Assembly, that the Governor’s 
Artificial Intelligence Subcabinet consult with the Technology Advisory Commission 
established under S.B. 955 or H.B. 1174 of the Acts of the General Assembly of 2024 in the 
performance of its duties under Sections 1 and 2 of this Act.  
 
 SECTION 4. 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 
July 1, 2024.  
 
Approved by the Governor, May 9, 2024.