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. *hb1063* HOUSE BILL 1063 L5 5lr0976 By: Montgomery County Delegation and Prince George’s County Delegation Introduced and read first time: February 5, 2025 Assigned to: Environment and Transportation Committee Report: Favorable House action: Adopted Read second time: February 27, 2025 CHAPTER ______ AN ACT concerning 1 Washington Suburban Sanitary Commission – Design and Construction 2 – Alternative Project Delivery and Solicitation Methods 3 MC/PG 102–25 4 FOR the purpose of repealing a limitation on the design/build contracts into which the 5 Washington Suburban Sanitary Commission may enter; authorizing the 6 Commission to adopt regulations establishing certain alternative project delivery 7 and solicitation methods; and generally relating to design and construction projects 8 of the Washington Suburban Sanitary Commission. 9 BY repealing and reenacting, with amendments, 10 Article – Public Utilities 11 Section 20–104 12 Annotated Code of Maryland 13 (2020 Replacement Volume and 2024 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Public Utilities 17 20–104. 18 2 HOUSE BILL 1063 (a) The Commission shall provide an opportunity for a hearing before proceeding 1 with the design or construction of a water supply or sanitary sewer system. 2 (b) Subject to subsection (c) of this section, the Commission: 3 (1) shall advertise in newspapers and technical media that the Commission 4 considers appropriate for bids or proposals for design or construction services for any part 5 of a water supply or sanitary sewer system; and 6 (2) may readvertise any part of the services needed if the Commission 7 considers the prices quoted in response to a prior advertisement to be unreasonable. 8 (c) (1) Subject to paragraph (2) of this subsection, the Commission may use 9 day labor to complete any part of the design or construction of a water supply or sanitary 10 sewer system. 11 (2) Notwithstanding § 20–105(a) of this subtitle, the Commission may 12 spend up to $15,000 for day labor for any part of construction services without advertising 13 for or receiving bids or proposals. 14 (d) (1) Except as provided in paragraph (2) of this subsection, the Commission 15 may enter into any type of contract under this subtitle that promotes the best interest of 16 the Commission. 17 (2) The Commission: 18 (i) may not enter a cost–plus–percentage–of–cost contract; and 19 (ii) shall prohibit a cost–plus–percentage–of–cost subcontract under 20 a contract with the Commission. 21 (e) [The Commission may only enter into a design/build contract for a facilities 22 construction contract with costs exceeding $2,000,000. 23 (f)] The Commission may reject any bid or proposal. 24 [(g)] (F) (1) The Commission may require a contract to be secured by bonds, 25 penalties, and conditions. 26 (2) Security authorized under this subsection is enforceable in any court of 27 competent jurisdiction. 28 [(h)] (G) The Commission: 29 (1) may adopt regulations to establish: 30 HOUSE BILL 1063 3 (I) a prequalification process for bidders or offerors; and 1 (II) ALTERNATIVE PROJECT DELIVERY AND SOLICIT ATION 2 METHODS THAT PROMOTE THE BEST INTERESTS O F THE COMMISSION; AND 3 (2) shall adopt regulations to govern discussions held with offerors under § 4 20–105(c)(3) of this subtitle. 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6 October 1, 2025. 7 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.