MarylandHB 07382025 Regular SessionHouseWALLET

Department of Information Technology - Major Information Technology Development Projects - Oversight

Sponsored By: Anne R. Kaiser (Democratic)

Became Law

Information Technology - GenerallyAdministrative AgenciesAppropriationsArtificial Intelligence -see also- BiometricsBudget and Management, Department ofCommittees and CommissionsContracts -see also- ProcurementData -see also- Census; DemographicsDisclosureElectronic GovernmentEthicsGeneral Assembly -see also- AELR Cmte; LegislativePolCmteGeneral Services, Department ofGovernorHuman Infrastructure -see also- WLEIndependent ContractorsInformation Technology, Department ofIntergovernmental Cooperation -see also- AdmAgn; Cmts; etc.Internet -see also- Internet AccessNoticesOpen GovernmentPilot ProgramsPrices -see also- Consumer Price IndexPrivacyProcurementReimbursement RatesReportsRevenue and Taxes -see also- (specific tax)Rules and RegulationsStandards and Best PracticesStudies -see also- Commitees & Commissions; ReportsTelecommunications and Information TechnologyWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 5 benefits, 0 costs, 4 mixed.

Transferred State workers keep pay protections

The Governor can transfer up to 50 filled or vacant positions to the Office of Digital Experience by June 30, 2026. Eligible positions are in the technology Department or another State executive agency and included in the fiscal year 2026 budget. Associated funds and unspent budget amounts can move with them. Permanent and contractual employees in transferred budgeted positions keep their rights, pay, status, working conditions, benefits, and retirement status without loss.

Technology experts advise Maryland lawmakers

Beginning June 1, 2025, an eight-member Information Technology Advisory Board advises Maryland lawmakers and reviews State technology materials. The Senate President and House Speaker each appoint four public members and jointly choose the chair. Members must have enterprise technology management experience and required technology expertise, including artificial intelligence and cybersecurity. The board reports annually by December 15; members must follow public ethics law and disclose relevant business employment or financial interests. Members receive no pay, but receive travel reimbursement as provided in the State budget.

Maryland creates a digital services office

Beginning June 1, 2025, Maryland establishes the Office of Digital Experience to oversee major technology projects and guide modernization. Its Digital Service Unit helps agencies build accessible, multilingual websites and services that focus on users' needs. Agencies must coordinate digital plans and funding with the unit and the statewide technology plan. An oversight division sets standards for major and expedited projects, monitors teams, steps in when needed, and helps define project needs. The Secretary can assign a suitable major project as a pilot for the division's services.

Maryland sets faster technology replacement rules

By July 1, 2026, the Department must develop standards for identifying old systems suited to faster modernization funding. It must also create a State Modernization Plan and a model for ranking investments, reviewing proposals, and tracking approved projects. The Secretary must set funding rules that let agencies apply twice a year for expedited projects aligned with that plan. The process must follow State purchasing preferences, encourage small and minority business vendors, and include agency and vendor compliance checks.

Public can track Maryland technology spending

The Department must maintain a public dashboard covering every major and expedited technology project, grouped by responsible State agency. It must show start dates, project phases, milestones, estimated costs, current-year budget amounts, and prior-year spending by category. Projects in development must show spending forecasts, actual results, and differences between them. The dashboard must identify major risks, their impact and likelihood, who manages them, and plans to address them. Risks can be hidden if disclosure could endanger a project, but lawmakers on the Legislative Policy Committee receive those details confidentially.

Maryland redirects existing technology budget funds

With the Governor's approval, budget amendments can move up to $4.3 million in fiscal year 2026 staff augmentation funds to the new office. Up to 20% of the remaining fiscal year 2026 technology Department appropriation can move to the Information Technology Investment Fund. Transfers must occur by June 30, 2026; apart from specified transfers, implementation cannot use general funds beyond the Department's fiscal year 2026 appropriation. The office can charge agencies for covered services using their technology project or product funds, including Investment Fund allocations. In fiscal year 2026, the Department must seek statewide software licensing and service savings, allow needed unit-specific software exceptions, and put savings in the Investment Fund.

Maryland tightens technology spending approvals

State agencies can buy, lease, rent, or contract for technology only when the technology Secretary finds it fits the statewide plan. Agencies must submit required information before project requests; the Secretary reviews major projects and can change their major-project designation. Public colleges and universities are exempt from these request rules and the separate major-project and cybersecurity spending restrictions. Investment Fund support requires compliance with State plans and standards, and major projects need an approved development plan. That plan covers outcomes, user needs, accessibility, risks, alternatives, costs, funding sources, and success measures; funding can be approved in stages.

State technology projects face readiness checks

The technology Secretary oversees every major State technology project, regardless of funding source. Implementation funding requires a finding that the agency has enough staff, expertise, and technical resources. Within 30 days after a contract award, agencies must notify the Board of Public Works and Legislative Policy Committee. They must identify project leaders, confirm Department contract approval, and provide the agency head's signed acceptance of responsibility. Agencies must report project status every three months while the project is active.

Troubled State technology projects lose funding

The State must withhold unspent project funds for inconsistent reporting or identified implementation problems, regardless of funding source. Problems include delays, major cost increases, poor vendor performance, or reduced agency capacity. Funds can be released after the issue is fixed or redirected to other Information Technology Investment Fund expenses. A proposed transfer above $500,000 requires a 60-day Legislative Policy Committee review and comment period. The Department must report the reason for withholding to the Governor and specified legislative committees within 30 days.

Sponsors & Cosponsors

Sponsor

Anne R. Kaiser
Democratic • House

Cosponsors

Tiffany T. Alston
Democratic • House
Heather Bagnall
Democratic • House
J. Sandy Bartlett
Democratic • House
Harry Bhandari
Democratic • House
Bonnie Cullison
Democratic • House
Jessica Feldmark
Democratic • House
Pam Lanman Guzzone
Democratic • House
Terri L. Hill
Democratic • House
Thomas S. Hutchinson
Republican • House
Kenneth Kerr
Democratic • House
Nicholaus R. Kipke
Republican • House
Lesley J. Lopez
Democratic • House
Matthew Morgan
Republican • House
Ashanti Martinez
Democratic • House
Joseline A. Peña-Melnyk
Democratic • House
Teresa E. Reilly
Republican • House
Kim Ross
Democratic • House
Steve Johnson
Democratic • House
Kathy Szeliga
Republican • House
Deni Taveras
Democratic • House
Jennifer White Holland
Democratic • House
Jamila J. Woods
Democratic • House
Teresa Woorman
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 183 • No: 0

Senate vote • 4/7/2025

Third Reading Passed

Yes: 47 • No: 0

House vote • 4/5/2025