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.
*hb0304*
HOUSE BILL 304
P2 5lr1614
By: Delegate Kerr Delegates Kerr, Alston, Bagnall, Bhandari, Chisholm, Cullison,
Guzzone, Hill, Hutchinson, S. Johnson, Kaiser, Kipke, Lopez, Martinez,
M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga, Taveras, Woods,
and Woorman
Introduced and read first time: January 9, 2025
Assigned to: Health and Government Operations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 3, 2025
CHAPTER ______
AN ACT concerning 1
State Procurement – Transparency and Procedures 2
FOR the purpose of requiring a unit of State government to provide a certain debriefing of 3
a contract award to certain persons on request; adding an exemption to the 4
prohibition on an individual who assists in the drafting of specifications, an 5
invitation for bids, or a request for proposals from submitting a bid or proposal or 6
assisting in the submission of a bid or proposal; requiring a procurement contract to 7
include a certain clause pertaining to change orders certain contract modifications 8
related to changes in law; altering the required contents of a certain change order; 9
altering the time within which a procurement officer shall make a decision after 10
receiving a certain protest; specifying that certain decisions or failure to reach a 11
decision may be considered a denial of a certain protest altering certain procedures, 12
time periods, and appeals related to certain protests; altering the time within which 13
a written notice of a claim relating to a certain procurement contract shall be made; 14
applying certain provisions related to a contract claim that applied to construction 15
contracts to certain other procurement contracts; requiring a contractor, on request 16
of a procurement officer, to provide certain information prior to receiving payment 17
on a claim; authorizing the Maryland State Board of Contract Appeals to award a 18
contractor certain costs of defending certain claims; specifying that an appeal from 19
a final decision of the Appeals Board may be appealed to the Appellate Court of 20
Maryland; altering the procedures for reviewing and making a certain determination 21 2 HOUSE BILL 304
related to a certain contract claim; and generally relating to State procurement 1
procedures. 2
BY adding to 3
Article – State Finance and Procurement 4
Section 13–104(h) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2024 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 11–101, 13–201, 13–212.1(b), 13–218(a), 15–112(b)(1), 15–218, 15–219(a) 10
through (c) and (h), 15–221.2, and 15–223(a) and 15–219 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2024 Supplement) 13
BY adding to 14
Article – State Finance and Procurement 15
Section 13–104(h) and 15–219(h) 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – State Finance and Procurement 21
11–101. 22
(a) In this Division II the following words have the meanings indicated unless: 23
(1) the context clearly requires a different meaning; or 24
(2) a different definition is provided for a particular title or provision. 25
(b) (1) “Architectural services” means professional or creative work that: 26
(i) is performed in connection with the design and supervision of 27
construction or landscaping; and 28
(ii) requires architectural education, training, and experience. 29
(2) “Architectural services” includes consultation, research, investigation, 30
evaluation, planning, architectural design and preparation of related documents, and 31
coordination of services that structural, civil, mechanical, and electrical engineers and 32
other consultants provide. 33
HOUSE BILL 304 3
(3) “Architectural services” does not include construction inspection 1
services, services provided in connection with an energy performance contract, or 2
structural, mechanical, plumbing, or electrical engineering. 3
(c) “Bid” means a response to an invitation for bids under § 13–103 of this article. 4
(d) “Board” means the Board of Public Works. 5
(e) “CHANGE ORDER ” MEANS A WRITTEN ORDE R THAT: 6
(1) IS SIGNED BY THE PRO CUREMENT OFFICER ; AND 7
(2) DIRECTS THE CONTRACT OR TO MAKE CHANGES T HAT ARE 8
REQUIRED BY A CHANGE IN LAW OR THAT THE P ROCUREMENT CONTRACT 9
AUTHORIZES THE PROCU REMENT OFFICER TO OR DER WITHOUT THE CONS ENT OF 10
THE CONTRACTOR . 11
(F) “Chief Procurement Officer” means an official of the Department of General 12
Services who: 13
(1) shall be appointed by the Governor with the advice and consent of the 14
Senate; 15
(2) except for procurement activity by a primary procurement unit other 16
than the Department of General Services, is the head of all procurement activity for the 17
Executive Branch of State government; and 18
(3) may engage in or control procurement for the Department of General 19
Services in accordance with § 12–107(b)(2) of this article. 20
[(f)] (G) (1) “Construction” means the process of building, altering, 21
improving, or demolishing an improvement to real property. 22
(2) “Construction” includes any major work necessary to repair, prevent 23
damage to, or sustain existing components of an improvement to real property. 24
(3) “Construction” does not include the maintenance or routine operation 25
of an existing improvement to real property, or activities related to an energy performance 26
contract. 27
[(g)] (H) (1) “Construction related services” means feasibility studies, 28
surveys, construction management, construction inspection, and similar efforts associated 29
with construction or the acquisition of public improvements as defined in § 4–401(d) of this 30
article. 31
4 HOUSE BILL 304
(2) “Construction related services” does not include services provided in 1
connection with an energy performance contract. 2
(I) “CONTRACT MODIFICATION ” MEANS A WRITTEN ALTE RATION THAT: 3
(1) AFFECTS SPECIFICATIO NS, DELIVERY POINT , DATE OF DELIVERY , 4
PERIOD OF PERFORMANCE , PRICE, QUANTITY, OR OTHER PROVISIONS OF A 5
PROCUREMENT CONTRACT , INCLUDING MODIFICATI ONS REQUIRED DUE TO 6
CHANGES IN LAW OR RE GULATION THAT INCREA SE THE CONTRACTOR ’S COST OF OR 7
TIME FOR PERFORMANCE OF THE CONTRACT ; AND 8
(2) IS ACCOMPLISHED BY MUTUAL ACTION OF THE PARTIES TO THE 9
PROCUREMENT CONTRACT . 10
[(h)] (J) “County” means a county of the State and, unless expressly provided 11
otherwise, Baltimore City. 12
[(i)] (K) “Energy performance contract” means an agreement for the provision 13
of energy services, including electricity, heating, ventilation, cooling, steam, or hot water, 14
in which a person agrees to design, install, finance, maintain, or manage energy systems 15
or equipment to improve the energy efficiency of a building or facility in exchange for a 16
portion of the energy savings. 17
[(j)] (L) (1) “Engineering services” means professional or creative work that: 18
(i) is performed in connection with any utility, structure, building, 19
machine, equipment, or process, including structural, mechanical, plumbing, electrical, 20
geotechnical, and environmental engineering; and 21
(ii) requires engineering education, training, and experience in the 22
application of special knowledge of the mathematical, physical, and engineering sciences. 23
(2) “Engineering services” includes consultation, investigation, evaluation, 24
planning, design, and inspection of construction to interpret and ensure compliance with 25
specifications and design within the scope of inspection services. 26
(3) “Engineering services” does not include services provided in connection 27
with an energy performance contract. 28
[(k)] (M) “Invitation for bids” means any document used for soliciting bids under 29
§ 13–103 of this article. 30
[(l)] (N) “Person” means an individual, receiver, trustee, guardian, personal 31
representative, fiduciary, or representative of any kind and any partnership, firm, 32
association, corporation, or other entity. 33
HOUSE BILL 304 5
[(m)] (O) “Primary procurement units” means: 1
(1) the State Treasurer; 2
(2) the Department of General Services; 3
(3) the Department of Transportation; 4
(4) the University System of Maryland; 5
(5) the Maryland Port Commission; 6
(6) the Morgan State University; and 7
(7) the St. Mary’s College of Maryland. 8
[(n)] (P) (1) “Procurement” means the process of: 9
(i) leasing real or personal property as lessee; or 10
(ii) buying or otherwise obtaining supplies, services, construction, 11
construction related services, architectural services, engineering services, or services 12
provided under an energy performance contract. 13
(2) “Procurement” includes the solicitation and award of procurement 14
contracts and all phases of procurement contract administration. 15
[(o)] (Q) (1) “Procurement contract” means an agreement in any form entered 16
into by a unit for procurement. 17
(2) “Procurement contract” does not include: 18
(i) a collective bargaining agreement with an employee 19
organization; 20
(ii) an agreement with a contractual employee, as defined in § 21
1–101(d) of the State Personnel and Pensions Article; 22
(iii) a Medicaid, Judicare, or similar reimbursement contract for 23
which law sets: 24
1. user or recipient eligibility; and 25
2. price payable by the State; or 26
6 HOUSE BILL 304
(iv) a Medicaid contract with a managed care organization, as 1
defined in § 15–101(e) of the Health – General Article as to which regulations adopted by 2
the Department establish: 3
1. recipient eligibility; 4
2. minimum qualifications for managed care organizations; 5
and 6
3. criteria for enrolling recipients in managed care 7
organizations. 8
[(p)] (R) “Procurement officer” means an individual authorized by a unit to: 9
(1) enter into a procurement contract; 10
(2) administer a procurement contract; or 11
(3) make determinations and findings with respect to a procurement 12
contract. 13
[(q)] (S) “Proposal” means a response to any solicitation other than an invitation 14
for bids. 15
[(r)] (T) “Request for proposals” means any document used for soliciting 16
proposals. 17
[(s)] (U) “Responsible bidder or offeror” means a person who: 18
(1) has the capability in all respects to perform fully the requirements for 19
a procurement contract; and 20
(2) possesses the integrity and reliability that will ensure good faith 21
performance. 22
[(t)] (V) “Responsive bid” means a bid that: 23
(1) is submitted under § 13–103 of this article; and 24
(2) conforms in all material respects to the invitation for bids. 25
[(u)] (W) (1) Except as provided in paragraph (3) of this subsection, “services” 26
means: 27
(i) the labor, time, or effort of a contractor; and 28
HOUSE BILL 304 7
(ii) any product or report necessarily associated with the rendering 1
of a service. 2
(2) “Services” includes services provided by attorneys, accountants, 3
physicians, consultants, and other professionals who are independent contractors. 4
(3) “Services” does not include: 5
(i) construction related services; 6
(ii) architectural services; 7
(iii) engineering services; or 8
(iv) energy performance contract services. 9
[(v)] (X) “State” means: 10
(1) a state, possession, territory, or commonwealth of the United States; or 11
(2) the District of Columbia. 12
[(w)] (Y) (1) “State correctional facilities” means correctional institutions, 13
and all places of correctional confinement, that are located within the State of Maryland 14
and are primarily operated by the Maryland State government. 15
(2) “State correctional facilities” includes Patuxent Institution. 16
[(x)] (Z) (1) “Supplies” means: 17
(i) insurance; 18
(ii) tangible personal property; 19
(iii) printing; and 20
(iv) services necessarily associated with insurance or tangible 21
personal property. 22
(2) “Supplies” does not include: 23
(i) an interest in real property; or 24
(ii) tangible personal property acquired or used in connection with 25
an energy performance contract. 26
8 HOUSE BILL 304
[(y)] (AA) (1) “Unit” means an officer or other entity that is in the Executive 1
Branch of the State government and is authorized by law to enter into a procurement 2
contract. 3
(2) “Unit” does not include: 4
(i) a bistate, multistate, bicounty, or multicounty governmental 5
agency; or 6
(ii) a special tax district, sanitary district, drainage district, soil 7
conservation district, water supply district, or other political subdivision of the State. 8
13–104. 9
(H) (1) ON REQUEST OF AN UNSU CCESSFUL OFFEROR , THE 10
PROCUREMENT OFFICE O F A UNIT SHALL PROVI DE A DEBRIEFING OF A CONTRACT 11
AWARD. 12
(H) (1) AN UNSUCCESSFUL OFFER OR MAY SUBMIT A REQU EST TO THE 13
PROCUREMENT OFFICER FOR A DEBRIEFING OF THE RECOMMENDED CONT RACT 14
AWARD. 15
(2) AFTER RECEIVING A REQ UEST FOR A DEBRIE FING UNDER 16
PARAGRAPH (1) OF THIS SUBSECTION , THE PROCUREMENT OFFI CER SHALL 17
PROVIDE THE DEBRIEFI NG: 18
(I) AS SOON AS IS FEASIB LE AFTER RECEIVING T HE REQUEST; 19
AND 20
(II) BEFORE THE RECOMMEND ED CONTRACT AWARD IS 21
PRESENTED FOR APPROV AL TO THE HEAD OF TH E UNIT OR THE BOARD. 22
(2) (3) EXCEPT FOR INFORMATIO N SUBJECT TO A 23
CONFIDENTIALITY AGREEMENT REASONABLY DETERMINE D BY THE PROCUREMENT 24
OFFICER TO BE CONFID ENTIAL, PROPRIETARY , OR PRIVILEGED , A DEBRIEFING 25
REQUIRED UNDER PARAG RAPH (1) OF THIS SUBSECTION S HALL INCLUDE ALL 26
RELEVANT INFORMATION THAT HAS BEEN REQUES TED. 27
(4) THE OFFICE OF STATE PROCUREMENT SHALL EST ABLISH 28
GUIDELINES FOR DEBRI EFINGS OBTAINED FROM A PROPOSAL BY, OR DISCUSSIONS 29
WITH, A COMPETING OFFEROR THAT IS REASONABLY NECESSARY TO DETERMINE : 30
(I) WHETHER ALL EVALUATI ON PROCEDURES REQUIR ED BY 31
LAW HAVE BEEN PROPER LY INTERPRETED AND P ERFORMED ; 32
HOUSE BILL 304 9
(II) WHETHER THE PROCUREM ENT ADVANCES THE PUR POSES 1
AND POLICIES ESTABLI SHED UNDER § 11–201 OF THIS ARTICLE; 2
(III) WHETHER THE CONDUCT OF UNIT PERSONNEL WA S BIASED, 3
IN BAD FAITH, OR WITHOUT SUBSTANTI AL JUSTIFICATION ; OR 4
(IV) WHETHER THE UNIT FAI LED TO PRODUCE ANY D OCUMENT 5
REQUIRED BY LAW OR R EGULATION. 6
(3) A PROCUREMENT OFFICER’S FAILURE TO COMPLY WITH THIS 7
SUBSECTION MAY BE RE MEDIED BY ORDER OF T HE MARYLAND STATE BOARD OF 8
CONTRACT APPEALS. 9
13–201. 10
[(a) In this subtitle the following words have the meanings indicated. 11
(b) “Change order” means a written order that: 12
(1) is signed by the procurement officer; and 13
(2) directs the contractor to make changes that the procurement contract 14
authorizes the procurement officer to order without the consent of the contractor. 15
(c) “Contract modification” means a written alteration that: 16
(1) affects specifications, delivery point, date of delivery, period of 17
performance, price, quantity, or other provisions of a procurement contract; and 18
(2) is accomplished by mutual action of the parties to the procurement 19
contract. 20
(d) “Cost–reimbursement] IN THIS SUBTITLE , “COST–REIMBURSEMENT 21
contract” means a procurement contract under which the State reimburses a contractor for 22
fees and other costs that are: 23
(1) recognized as allowable and allocable under the regulations of the 24
Board on price and cost principles; and 25
(2) within a stated ceiling. 26
13–212.1. 27
(b) For purposes of subsection (a) of this section, assisting in the drafting of 28
specifications, an invitation for bids, or a request for proposals for a procurement does not 29
include: 30 10 HOUSE BILL 304
(1) providing descriptive literature, such as catalogue sheets, brochures, 1
technical data sheets, or standard specification “samples”, whether requested by an 2
executive unit or provided unsolicited; 3
(2) submitting written or oral comments on a specification prepared by an 4
executive unit or on a solicitation for a bid or proposal when comments are solicited from 5
two or more persons as part of a request for information or a prebid or preproposal process; 6
(3) providing specifications for a sole source procurement made in 7
accordance with § 13–107 of this title; 8
(4) providing architectural and engineering services for: 9
(i) programming, master planning, or other project planning 10
services; or 11
(ii) the design of a construction project if: 12
1. the design services do not involve lead or prime design 13
responsibilities or construction phase responsibilities on behalf of the State; and 14
2. A. the anticipated value of the procurement contract at 15
the time of advertisement is at least $2,500,000 and not more than $100,000,000; or 16
B. regardless of the amount of the procurement contract, the 17
payment to the individual or person for the design services does not exceed $500,000; [or] 18
(5) for a procurement of health, human, social, or educational services, 19
comments solicited from two or more persons as part of a request for information, including 20
written or oral comments on a draft specification, an invitation for bids, or a request for 21
proposals; OR 22
(6) RECEIVING PROVIDING INFORMATION FROM VENDORS THAT 23
DOES NOT PROVIDE AN UNFAIR COMPETITIVE A DVANTAGE FOR ANY BID DER OR 24
OFFEROR. 25
13–218. 26
(a) Each procurement contract shall include clauses covering: 27
(1) termination for default; 28
(2) termination wholly or partly by the State for its convenience if the head 29
of the primary procurement unit determines that termination is appropriate; 30
HOUSE BILL 304 11
(3) variations that occur between estimated and actual quantities of work 1
in a procurement contract; 2
(4) liquidated damages, as appropriate; 3
(5) specified excuses for nonperformance; 4
(6) except for real property leases, the unilateral right of the State to order 5
in writing: 6
(i) changes in the work, if the changes are within the scope of the 7
procurement contract; and 8
(ii) a temporary stop or delay in performance; 9
(7) the obligation of the contractor to comply with the political contribution 10
reporting requirements under Title 14 of the Election Law Article, to which the contractor 11
may be subject as required under § 17–402 of this article; [and] 12
(8) nonvisual access for information technology as required under § 13
3A–312 of this article; AND 14
(9) A REQUIREMENT FOR A CHANGE ORDER CONTRACT 15
MODIFICATION TO PROV IDE AN EQUITABLE ADJ USTMENT TO COMPENSATE THE 16
CONTRACTOR FOR INCRE ASES IN THE COST OF AND TIME FOR CONTRAC T 17
PERFORMANCE DUE TO CHANG ES IN LAW. 18
15–112. 19
(b) (1) Except as provided in paragraphs (2) and (3) of this subsection, a unit 20
may not require a prime contractor and a prime contractor may not require a subcontractor 21
to begin change order work under a contract until the procurement officer for the unit issues 22
a written change order that specifies whether the work is to proceed, in compliance WITH 23
ANY CHANGES IN LAW O R REGULATION OR with the terms of the contract, on: 24
(i) an agreed–to price which may include a preestablished catalog 25
or unit prices based on local prevailing wage rates and equipment and material costs for 26
each task required for the change order as included in the bid documents at the time of bid; 27
(ii) a force account; 28
(iii) a construction change directive; or 29
(iv) a time and materials basis. 30
15–218. 31 12 HOUSE BILL 304
(a) Except as provided under § 15–219 of this subtitle, a A procurement officer 1
who receives a TIMELY protest [or a contract claim from a contractor] shall comply with 2
this section. 3
(b) (1) On receipt of a TIMELY protest [or contract claim from a contractor], a 4
procurement officer: 5
(i) shall review the substance of the protest [or contract claim]; 6
(ii) may request additional information or substantiation through an 7
appropriate procedure; 8
(iii) may discuss with interested parties and, if appropriate, may 9
conduct negotiations with the person initiating the protest [or contract claim]; and 10
(iv) shall comply with any applicable regulations. 11
(2) Unless clearly inappropriate, the procurement officer shall seek the 12
advice of the Office of the Attorney General ON ANY LEGAL ISSUES RAISED IN THE 13
PROTEST. 14
(c) (1) Subject to subsection (b) of this section and consistent with the State 15
budget and other applicable laws, the procurement officer shall: 16
(i) resolve the protest [or contract claim] by agreement of the 17
parties]; 18
(ii) wholly or partly deny the protest [or contract claim]; or 19
(iii) wholly or partly grant the relief sought by the person who 20
submitted the protest [or contract claim]. 21
(2) The procurement officer promptly shall send the decision in writing to 22
the reviewing authority. 23
(d) Unless otherwise provided by regulation, the decision of the procurement 24
officer shall be reviewed promptly by: 25
(1) the head of the unit OR DESIGNEE ; and 26
(2) the head of the principal department or other equivalent unit of which 27
the unit is a part OR DESIGNEE . 28
(e) (1) Except as provided under paragraph (3) of this subsection, the 29
reviewing authority shall approve, disapprove, or modify the decision of the procurement 30 HOUSE BILL 304 13
officer [within 180 days after receiving the contract claim] WITHIN 45 DAYS AFTER 1
RECEIVING THE PROTES T or a longer period to which the parties agree. 2
(2) The action of the reviewing authority under this subsection 3
PROCUREMENT OFFICER shall be the final action of the unit. 4
(3) The reviewing authority may remand the proceeding with instructions 5
to the procurement officer. 6
(4) On remand, the procurement officer shall proceed under subsection (b) 7
of this section in accordance with those instructions. 8
(f) (1) A decision [not to pay a contract claim] TO DENY A PROTEST is a final 9
action for the purpose of appeal to the Appeals Board. 10
(2) The failure to reach ISSUE a decision within the time required under 11
subsection (e) of this section ON THE PROTEST WITHI N 60 DAYS AFTER RECEIPT may be 12
deemed, at the SOLE option of the [contractor, to be a decision not to pay the contract claim] 13
BIDDER OR OFFEROR PROTESTOR, TO BE A DECISION TO DENY THE PROTEST . 14
15–219. 15
(a) [Except to the extent a shorter period is prescribed by regulation governing 16
differing site conditions, a] A contractor shall file a written notice of a claim relating to a 17
procurement contract [for construction] within [30] 90 60 days after [the basis for the 18
claim is known or should have been known] THE EARLIER LATER OF: 19
(1) A UNIT DENYING A REQ UEST FOR EQUITABLE ADJUSTMENT ; OR 20
(2) THE PARTIES REACHING AN IMPASSE IN DISCUS SIONS 21
ATTEMPTING TO RESOLV E THEIR DISAGREEMENT REGARDING THE REQUES T. 22
(b) Unless extended by the unit, within 90 days after submitting a notice of a 23
contract claim under a procurement contract [for construction], a contractor shall submit 24
to the unit a written explanation that states: 25
(1) the amount of the contract claim; 26
(2) the facts on which the contract claim is based; and 27
(3) all relevant data and correspondence that may substantiate the 28
contract claim. 29
(c) (1) ON RECEIPT OF A TIMEL Y CONTRACT CLAIM FRO M A 30
CONTRACTOR , A PROCUREMENT OFFICE R: 31 14 HOUSE BILL 304
(I) SHALL REVIEW THE SUB STANCE OF THE CONTRA CT CLAIM; 1
(II) MAY REQUEST ADDITION AL INFORMATION OR 2
SUBSTANTIATION THROU GH AN APPROPRIATE PROCEDUR E; 3
(III) MAY CONDUCT NEGOTIAT IONS WITH THE CONTRA CTOR 4
INITIATING THE CONTR ACT CLAIM; AND 5
(IV) SHALL COMPLY WITH AN Y APPLICABLE REGULAT IONS. 6
(2) UNLESS CLEARLY INAPPR OPRIATE, THE PROCUREMENT OFFI CER 7
SHALL SEEK THE ADVIC E OF THE OFFICE OF THE ATTORNEY GENERAL ON ANY 8
LEGAL ISSUES. 9
(D) SUBJECT TO SUBSECTION (C) OF THIS SECTION AND CONSISTENT WITH 10
THE STATE BUDGET AND OTHE R APPLICABLE LAWS , THE PROCUREMENT OFFI CER 11
SHALL: 12
(1) RESOLVE THE CONTRACT CLAIM BY AGREEMENT O F THE PARTIES; 13
(2) WHOLLY OR PARTLY DEN Y THE CONTRACT CLAIM ; OR 14
(3) WHOLLY OR PARTLY GRA NT THE RELIEF SOUGHT BY THE 15
CLAIMANT. 16
(E) (1) Subject to paragraph (2) of this subsection, the head of the unit OR 17
DESIGNEE engaged in procurement [of the construction] shall review the contract claim 18
AND THE DECISION OF THE PROCUREMENT OFFI CER. 19
(2) If the unit is part of a principal department or other equivalent unit, 20
the Secretary of the principal department or the equivalent official OR DESIGNEE shall 21
review the contract claim AND THE DECISION OF THE PROCUREMENT OFFI CER, unless 22
review has been delegated by regulation to the head of the unit. 23
(3) THE ACTION OF THE PRO CUREMENT OFFICER UND ER THIS 24
SUBSECTION SHALL BE THE FINAL ACTION OF THE UNIT. 25
[(d) The person who reviews a contract claim under subsection (c) of this section 26
shall: 27
(1) investigate the contract claim; and 28
(2) give the contractor written notice of a resolution of the contract claim: 29
HOUSE BILL 304 15
(i) within 90 days after receiving the contract claim or a longer 1
period to which the parties agree, if the amount of the contract claim is not more than the 2
amount under which the accelerated procedure may be selected before the Appeals Board; 3
or 4
(ii) for any other contract claim, within 180 days after receiving the 5
contract claim or a longer period to which the parties agree. 6
(e)] (F) Recovery under a contract claim is not allowed for any expense 7
incurred: 8
(1) more than [30] 60 days before the [required submission of a notice of a 9
claim] LAST DAY ON WHICH NOTICE OF A CL AIM IS PERMITTED TO BE FILED under 10
subsection (a) of this section; or 11
(2) unless the time for submission of a claim is extended under subsection 12
(b) of this section, more than [120] 150 days before the [required submission of the claim] 13
LAST DAY ON WHICH NO TICE OF A CLAIM IS PERMITTED TO BE FILED . 14
[(f)] (G) (1) If the unit determines that it is responsible for a portion but not 15
all of the amount claimed by the contractor, subject to the terms of the contract, the unit 16
shall pay the undisputed amount. 17
(2) Payment of the undisputed amount: 18
(i) is not an admission of the liability of the unit on the claims; and 19
(ii) does not preclude recovery of the amount paid if it subsequently 20
is determined that the determination of the unit was not correct. 21
[(g)] (H) [(1)] A decision not to pay a contract claim is a final action for the 22
purpose of appeal to the Appeals Board. 23
[(2) The failure to reach a decision within the time required under 24
subsection (c) of this section may be deemed, at the option of the contractor, to be a decision 25
not to pay the contract claim.] 26
(H) (I) (1) AT ANY TIME PRIOR TO RECEIVING PAYMENT ON A CLAIM, 27
ON WRITTEN REQUEST BY THE PROCU REMENT OFFICER , THE CONTRACTOR SHALL 28
PROVIDE THE UNIT WITH THIS SUBSECTION APPLIES T O ALL CONTRACT CLAIM S, 29
INCLUDING CLAIMS THA T ARE PENDING ADMINI STRATIVELY IN COURT ON JULY 1, 30
2025. 31
(2) PRIOR TO AUTHORIZING PAYMENT ON A CLAIM , THE 32
PROCUREMENT OFFICER SHALL REQUIRE THE CO NTRACTOR TO SUPPLEME NT THE 33
CLAIM WITH A CERTIFICATION BY A SENIOR OFFICER OR GE NERAL PARTNER OF THE 34 16 HOUSE BILL 304
CONTRACTOR OR THE SU BCONTRACTOR , AS APPLICABLE , THAT, TO THE BEST OF 1
THAT PERSON ’S KNOWLEDGE AND BELI EF: 2
(1) (I) THE CLAIM IS MADE IN GOOD FAITH; 3
(2) (II) ALL SUPPORTING DATA IS ACCURATE A ND COMPLETE ; AND 4
(3) (III) THE AMOUNT REQUESTED ACCURATELY REFLECTS THE 5
CONTRACT CLAIM FOR W HICH THE PERSON BELI EVES THE PROCUREMENT AGENCY 6
IS LIABLE. 7
[(h)] (I) (J) At the time of final payment, the unit shall: 8
(1) release the retainage due to the contractor; and 9
(2) pay any interest that: 10
(i) has accrued on the retainage from the time of payment of the 11
semifinal estimate; and 12
(ii) is due and payable to the contractor. 13
15–221.2. 14
(a) This section applies to a claim resulting under a contract. 15
(b) The Appeals Board may award to a contractor the reasonable costs of filing 16
and pursuing a claim OR DEFENDING AGAINST A CLAIM UNDER § 15–219.1 OF THIS 17
SUBTITLE, including reasonable attorney’s fees, if the Appeals Board finds that the conduct 18
of the unit in processing a contract claim is in bad faith, without substantial justification, 19
or in violation of law. 20
(c) The Appeals Board shall adopt regulations to implement this section. 21
15–223. 22
(a) (1) A decision of the Appeals Board is subject to judicial review in 23
accordance with Title 10, Subtitle 2 of the State Government Article. 24
(2) Any party to an Appeals Board decision, including a unit, may appeal a 25
final decision of the Appeals Board to [a court of competent jurisdiction] THE APPELLATE 26
COURT OF MARYLAND. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October July 1, 2025. 29