MD
Maryland Senate Bill SB487

Maryland 2025 Regular Session

Maryland Senate Bill SB487 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0487*
66
77 SENATE BILL 487
88 P2 5lr2860
99 SB 832/20 – EHE
1010 By: Senators Jennings and Hester
1111 Introduced and read first time: January 22, 2025
1212 Assigned to: Budget and Taxation
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Procurement – Major Information Technology Development Projects 2
1919
2020 FOR the purpose of requiring the Secretary of Information Technology to conduct a certain 3
2121 risk assessment of certain major information technology development projects under 4
2222 certain circumstances; authorizing the Secretary to recommend an increase in a 5
2323 certain limitation of liability amount under certain circumstances; requiring the 6
2424 Chief Procurement Officer to review a certain recommendation; authorizing the 7
2525 Chief Procurement Officer to approve a certain change to a certain limitation of 8
2626 liability; requiring a procurement contract for a major information technology 9
2727 development project to include certain terms and conditions; requiring the Chief 10
2828 Procurement Officer and the Secretary to study certain procurement processes of 11
2929 major information technology development projects with certain stakeholders and 12
3030 make certain recommendations; and generally relating to procurement and major 13
3131 information technology development projects. 14
3232
3333 BY repealing and reenacting, without amendments, 15
3434 Article – State Finance and Procurement 16
3535 Section 3.5–301(a), (e), (h), and (k) 17
3636 Annotated Code of Maryland 18
3737 (2021 Replacement Volume and 2024 Supplement) 19
3838
3939 BY repealing and reenacting, with amendments, 20
4040 Article – State Finance and Procurement 21
4141 Section 3.5–308 and 3.5–309(n) 22
4242 Annotated Code of Maryland 23
4343 (2021 Replacement Volume and 2024 Supplement) 24
4444
4545 BY adding to 25
4646 Article – State Finance and Procurement 26
4747 Section 13–228 27
4848 Annotated Code of Maryland 28 2 SENATE BILL 487
4949
5050
5151 (2021 Replacement Volume and 2024 Supplement) 1
5252
5353 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
5454 That the Laws of Maryland read as follows: 3
5555
5656 Article – State Finance and Procurement 4
5757
5858 3.5–301. 5
5959
6060 (a) In this subtitle the following words have the meanings indicated. 6
6161
6262 (e) (1) “Development” means all expenditures for a new information 7
6363 technology system or an enhancement to an existing system including system: 8
6464
6565 (i) planning; 9
6666
6767 (ii) creation; 10
6868
6969 (iii) installation; 11
7070
7171 (iv) testing; and 12
7272
7373 (v) initial training. 13
7474
7575 (2) “Development” does not include: 14
7676
7777 (i) ongoing operating costs, software or hardware maintenance, 15
7878 routine upgrades, or modifications that merely allow for a continuation of the existing level 16
7979 of functionality; or 17
8080
8181 (ii) expenditures made after a new or enhanced system has been 18
8282 legally accepted by the user and is being used for the business process for which it was 19
8383 intended. 20
8484
8585 (h) “Information technology” means all electronic information processing, 21
8686 including: 22
8787
8888 (1) maintenance; 23
8989
9090 (2) networking; 24
9191
9292 (3) telecommunications; 25
9393
9494 (4) hardware; 26
9595
9696 (5) software and applications; and 27
9797 SENATE BILL 487 3
9898
9999
100100 (6) associated services. 1
101101
102102 (k) (1) “Major information technology development project” means any 2
103103 information technology development project that meets one or more of the following 3
104104 criteria: 4
105105
106106 (i) except as provided in paragraph (2) of this subsection, the 5
107107 estimated total cost of development equals or exceeds $5,000,000; 6
108108
109109 (ii) the project is undertaken to support a critical business function 7
110110 associated with the public health, education, safety, or financial well–being of the residents 8
111111 of Maryland; or 9
112112
113113 (iii) the Secretary determines that the project requires the special 10
114114 attention and consideration given to a major information technology development project 11
115115 due to: 12
116116
117117 1. the significance of the project’s potential benefits or risks; 13
118118
119119 2. the impact of the project on the public or local 14
120120 governments; 15
121121
122122 3. the public visibility of the project; or 16
123123
124124 4. other reasons as determined by the Secretary. 17
125125
126126 (2) “Major information technology development project” does not include: 18
127127
128128 (i) technology that is reoccurring, standard operating technology as 19
129129 determined by the Secretary and submitted to the Legislative Policy Committee for a 20
130130 30–day review and comment period; or 21
131131
132132 (ii) a project with an estimated total cost of development that is: 22
133133
134134 1. less than $5,000,000 and is funded with money set aside 23
135135 for expedited projects in the Fund; or 24
136136
137137 2. more than $5,000,000 and is funded with the money set 25
138138 aside for expedited projects in the Fund if the Secretary determines that: 26
139139
140140 A. the unit of State government has sufficient 27
141141 implementation resources, including human capital, subject matter expertise, and 28
142142 technological infrastructure, or has the means to obtain these resources before project 29
143143 initiation; 30
144144
145145 B. there is no sufficient alternative within the State’s 31
146146 information technology inventory; and 32 4 SENATE BILL 487
147147
148148
149149
150150 C. the project will result in a comprehensive solution 1
151151 designed to meet a cohesive set of business and technological objectives. 2
152152
153153 3.5–308. 3
154154
155155 (a) This section does not apply to a public institution of higher education. 4
156156
157157 (b) Before submitting its information technology project requests, a unit of State 5
158158 government shall submit information in support of the request required by the Secretary 6
159159 for review and determination consistent with § 3.5–301(k) of this subtitle. 7
160160
161161 (c) In reviewing information technology project requests, the Secretary may 8
162162 change a unit’s designation of a major information technology development project. 9
163163
164164 (d) (1) The Secretary shall review and, with the advice of the Secretary of 10
165165 Budget and Management, approve major information technology development projects and 11
166166 specifications for consistency with all statewide plans, policies, and standards, including a 12
167167 systems development life cycle plan. 13
168168
169169 (2) (I) IF, AFTER A REVIEW UNDER PARAGRAPH (1) OF THIS 14
170170 SUBSECTION, THE SECRETARY BELIEVES A MAJOR INFORMATION TE CHNOLOGY 15
171171 DEVELOPMENT PROJECT MAY PRESENT AN EXCEP TIONAL RISK TO THE STATE, THE 16
172172 SECRETARY SHALL CONDU CT A RISK ASSESSMENT PRIOR TO APPROVING T HE 17
173173 MAJOR INFORMATION TE CHNOLOGY DEVELOPMENT PROJECT. 18
174174
175175 (II) A RISK ASSESSMENT COND UCTED UNDER SUBPARAG RAPH 19
176176 (I) OF THIS PARAGRAPH SH ALL CONSIDER THE NAT URE, PROCESSING, AND USE OF 20
177177 SENSITIVE OR PERSONA LLY IDENTIFIABLE INF ORMATION. 21
178178
179179 (III) IF THE RISK ASSESSMEN T CONCLUDES THAT THE MAJOR 22
180180 INFORMATION TECHNOLO GY DEVELOPMENT PROJECT PRESE NTS AN EXCEPTIONAL 23
181181 RISK TO THE STATE AND THE LIMITAT ION OF LIABILITY AMO UNT PROVIDED UNDER 24
182182 § 13–228 OF THIS ARTICLE IS N OT ADEQUATE TO PROTE CT THE INTEREST OF T HE 25
183183 STATE, THE SECRETARY MAY RECOMME ND THE UNIT INCREASE THE LIMITATION OF 26
184184 LIABILITY AMOUNT . 27
185185
186186 (IV) A RECOMMENDATION MADE UNDER SUBPARAGRAPH (III) 28
187187 OF THIS PARAGRAPH SH ALL: 29
188188
189189 1. BE IN WRITING; 30
190190
191191 2. DESCRIBE THE RISKS T O THE STATE; 31
192192
193193 3. EXPLAIN THE REASONS THAT THE LIMITATIONS 32 SENATE BILL 487 5
194194
195195
196196 REQUIRED UNDER § 13–228 OF THIS ARTICLE ARE NOT ADEQUATE TO MITI GATE THE 1
197197 RISKS DESCRIBED ; AND 2
198198
199199 4. RECOMMEND A REASONAB LE MAXIMUM 3
200200 ALTERNATIVE LIMITATI ON OF LIABILITY AMOU NT, CALCULATED AS A MULT IPLE OF 4
201201 THE CONTRACT VALUE . 5
202202
203203 (3) THE CHIEF PROCUREMENT OFFICER: 6
204204
205205 (I) SHALL REVIEW A RECOM MENDATIO N MADE UNDER 7
206206 PARAGRAPH (2) OF THIS SUBSECTION ; AND 8
207207
208208 (II) MAY APPROVE A CHANGE TO THE LIMITATION OF LIABILITY 9
209209 REQUIRED UNDER § 13–228 OF THIS ARTICLE. 10
210210
211211 (e) The Secretary shall be responsible for overseeing the implementation of major 11
212212 information technology development projects, regardless of fund source. 12
213213
214214 (f) (1) With the advice of the Secretary of Budget and Management, 13
215215 expenditures for major information technology development projects shall be subject to the 14
216216 approval of the Secretary who shall approve expenditures only when those projects are 15
217217 consistent with statewide plans, policies, and standards. 16
218218
219219 (2) The Secretary shall make a recommendation to the Secretary of Budget 17
220220 and Management that project funds, regardless of fund source, be withheld if: 18
221221
222222 (i) a unit of State government is not consistently reporting on the 19
223223 status of a project or projects to the Department in the form and manner required by the 20
224224 Department; or 21
225225
226226 (ii) the Department determines that project implementation issues 22
227227 exist, including project timeline delays, significant cost increases, vendor nonperformance, 23
228228 decreased agency capacity, or other issues that indicate issues of concern that could 24
229229 jeopardize successful implementation. 25
230230
231231 (g) (1) The Secretary shall approve funding for major information technology 26
232232 development projects, expedited projects, and other expenditures from the Fund only when: 27
233233
234234 (i) the major information technology development projects or the 28
235235 expedited projects are in compliance with statewide plans, policies, and standards, as 29
236236 determined by the Secretary; and 30
237237
238238 (ii) the major information technology development projects are 31
239239 supported by an approved systems development life cycle plan. 32
240240 6 SENATE BILL 487
241241
242242
243243 (2) An approved systems development life cycle plan shall include 1
244244 submission of: 2
245245
246246 (i) a project planning request that details initial planning for the 3
247247 project, including: 4
248248
249249 1. the project title, appropriation code, and summary; 5
250250
251251 2. a description of: 6
252252
253253 A. the business and technology outcomes to be achieved by 7
254254 the project; 8
255255
256256 B. the features available to the end user on completion, 9
257257 including user acceptance testing and accessibility plans; 10
258258
259259 C. the potential risks associated with the project; 11
260260
261261 D. possible alternatives; and 12
262262
263263 E. the scope and complexity of the project; and 13
264264
265265 3. an estimate of: 14
266266
267267 A. the total costs required to complete through planning; and 15
268268
269269 B. the fund sources available to support planning costs; and 16
270270
271271 (ii) a project implementation request to begin full design, 17
272272 development, and implementation of the project after the completion of planning, including: 18
273273
274274 1. the project title, appropriation code, and summary; 19
275275
276276 2. a description of: 20
277277
278278 A. the business and technology outcomes to be achieved by 21
279279 the project and the metrics by which the success of those outcomes will be measured; 22
280280
281281 B. the features available to the end user on completion, 23
282282 including user acceptance testing and accessibility plans; 24
283283
284284 C. the potential risks associated with the project; 25
285285
286286 D. possible alternatives; 26
287287
288288 E. the scope and complexity of the project; and 27
289289 SENATE BILL 487 7
290290
291291
292292 F. how the project meets the goals of the statewide master 1
293293 plan; and 2
294294
295295 3. an estimate of: 3
296296
297297 A. the total project cost, by phase; and 4
298298
299299 B. the fund sources to be utilized. 5
300300
301301 (3) The Secretary may approve funding incrementally, consistent with the 6
302302 systems development life cycle plan. 7
303303
304304 (h) The Department, in consultation with the Modernize Maryland Commission 8
305305 established under § 3.5–316 of this subtitle, shall: 9
306306
307307 (1) develop standards for units of State government to assist in identifying 10
308308 legacy systems that require modernization projects appropriate to be financed as an 11
309309 expedited project through the Fund; 12
310310
311311 (2) adopt an Information Technology Investment Maturity Model that 13
312312 includes: 14
313313
314314 (i) criteria to inform and prioritize investment decisions; 15
315315
316316 (ii) processes to develop the information required to evaluate 16
317317 investment proposals against the criteria under item (i) of this item; and 17
318318
319319 (iii) management processes to monitor the impl ementation of 18
320320 approved modernization projects; and 19
321321
322322 (3) develop a State Modernization Plan. 20
323323
324324 (I) IN THE ANNUAL REPORT SUBMITTED IN ACCORDA NCE WITH § 21
325325 3.5–309(N) OF THIS SUBTITLE , BEGINNING WITH THE A NNUAL REPORT SUBMITT ED 22
326326 IN 2026, THE SECRETARY SHALL PU BLISH A LIST OF RECO MMENDATIONS MADE 23
327327 UNDER SUBSECTION (D)(2) OF THIS SECTION AND THE OUTCOME OF THE 24
328328 RECOMMENDATION REVIE W CONDUCTED UNDER SU BSECTION (D)(3) OF THIS 25
329329 SECTION DURING THE P RECEDING FISCAL YEAR . 26
330330
331331 3.5–309. 27
332332
333333 (n) (1) On or before November 1 of each year, the Secretary shall report to the 28
334334 Governor and the Secretary of Budget and Management and, in accordance with § 2–1257 29
335335 of the State Government Article, to the Senate Budget and Taxation Committee, the Senate 30
336336 Committee on Education, Energy, and the Environment, the House Appropriations 31 8 SENATE BILL 487
337337
338338
339339 Committee, the House Health and Government Operations Committee, and the Joint 1
340340 Committee on Cybersecurity, Information Technology, and Biotechnology. 2
341341
342342 (2) The report shall include: 3
343343
344344 (i) the financial status of the Fund and a summary of its operations 4
345345 for the preceding fiscal year; 5
346346
347347 (ii) an accounting for the preceding fiscal year of all money from each 6
348348 of the revenue sources specified in subsection (e) of this section, including any expenditures 7
349349 made from the Fund; [and] 8
350350
351351 (iii) for each project receiving money from the Fund in the preceding 9
352352 fiscal year and for each major information technology development project or expedited 10
353353 project receiving funding from any source other than the Fund in the preceding fiscal year: 11
354354
355355 1. the status of the project and project funding decisions; 12
356356
357357 2. a comparison of estimated and actual costs of the project; 13
358358
359359 3. any known or anticipated changes in scope or costs of the 14
360360 project; 15
361361
362362 4. an evaluation of whether the project is using best 16
363363 practices; and 17
364364
365365 5. a summary of any monitoring and oversight of the project 18
366366 from outside the agency in which the project is being developed, including a description of 19
367367 any problems identified by any external review and any corrective actions taken; AND 20
368368
369369 (IV) THE LIST OF RECOMMEN DATIONS AND REVIEW O UTCOMES 21
370370 REQUIRED UNDER § 3.5–308(I) OF THIS SUBTITLE . 22
371371
372372 13–228. 23
373373
374374 (A) EXCEPT AS PROVIDED UN DER SUBSECTION (B) OF THIS SECTION AND § 24
375375 3.5–308(D)(2)(III) OF THIS ARTICLE, EACH PROCUREMENT CONTRACT FOR A MAJOR 25
376376 INFORMATION TECHNOLO GY DEVELOPMENT PROJE CT SHALL INCLUDE TER MS AND 26
377377 CONDITIONS GOVERNING THE INDEMNIFICATION OBLIGATIONS AND LIMI TATION OF 27
378378 LIABILITY OF THE CON TRACTOR THAT ARE REASONABLE AND M AY NOT EXCEED IN 28
379379 AGGREGATE TWICE THE VALUE OF THE CONTRACT . 29
380380
381381 (B) A CONTRACT PROVISION A DOPTED IN ACCORDANCE WITH SUBSECTION 30
382382 (A) OF THIS SECTION MAY NOT LIMIT THE LIABIL ITY OF A CONTRACTOR FOR: 31
383383 SENATE BILL 487 9
384384
385385
386386 (1) INTENTIONAL OR WILLF UL MISCONDUCT , FRAUD, OR 1
387387 RECKLESSNESS OF THE CONTRACTOR OR AN EMP LOYEE OF THE CONTRACTOR ; OR 2
388388
389389 (2) CLAIMS FOR BODILY IN JURY, INCLUDING DEATH , AND DAMAGE TO 3
390390 REAL PROPERTY OR TAN GIBLE PERSONAL PROPE RTY RESULTING FROM T HE 4
391391 NEGLIGENCE OF THE CO NTRACTOR OR AN EMPLO YEE OF THE CONTRACTO R. 5
392392
393393 (C) NOTHING IN THIS SECTI ON PROHIBITS A UNIT FROM AGREEING TO A 6
394394 LIMITATION OF LIABIL ITY THAT IS LESS THA N TWICE THE VALUE OF THE CONTRACT . 7
395395
396396 SECTION 2. AND BE IT FURTHER ENACTED, That the Chief Procurement Officer 8
397397 in the Department of General Services and the Secretary of Information Technology shall: 9
398398
399399 (1) together with appropriate stakeholders, examine the procurement 10
400400 processes for major information technology development projects, including: 11
401401
402402 (i) the time frames for competitive sealed procurements for major 12
403403 information technology development projects, from issuing the request for proposal through 13
404404 evaluation and contract award; and 14
405405
406406 (ii) how the associated time frames impact the allocation of 15
407407 personnel within companies bidding on major information technology development 16
408408 projects; 17
409409
410410 (2) make recommendations on adjusting the procurement process and 18
411411 associated timeline for major information technology development projects to ensure 19
412412 personnel with required expertise are available to work on an awarded contract; and 20
413413
414414 (3) on or before December 1, 2026, report to the General Assembly, in 21
415415 accordance with § 2–1257 of the State Government Article, on the examination and 22
416416 recommendations conducted under this section. 23
417417
418418 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
419419 October 1, 2025. 25