MarylandSB 08592026 Regular SessionSenate

State Procurement and Personnel - Liquidated Damages Documentation Requirements and State Fiscal Leadership Capacity

Sponsored By: Shelly Hettleman (Democratic)

Signed by Governor

State Government - PersonnelState Government - Agencies, Offices, and OfficialsAccountantsAdministrative AgenciesBudget and Management, Department ofBudgets -see also- Capital BudgetsDamagesDisclosureEvidenceFederal Aid -see also- CARES ActGrantsProcurementPublic Officials -see also- Atty Gen; Compt; Coun Admin; etcPublic Works, Board ofRecruitment and HiringReportsRevenue and Taxes -see also- (specific tax)Rules and RegulationsSalaries and Compensation -see also- Overtime; Reimb. RatesStandards and Best PracticesState EmployeesWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Flexible pay for CFOs and CIOs

The Secretary can set pay scales to help recruit and keep chief financial officers and chief information officers. The law also defines the CIO as the senior IT leader who oversees agency technology, procurement, and compliance. The CIO pay-scale authority does not apply to the University System of Maryland. These changes take effect July 1, 2026.

Higher standards for big agency CFOs

Large Executive Branch units that receive at least $1.75 billion a year and employ a CFO must meet new standards. The CFO is the top finance leader responsible for all financial operations for at least six months. The Secretary sets minimum CFO qualifications, and the Department issues regulations by November 1, 2026. Each covered CFO must give the Comptroller year-end entries for the statewide financial report, SEFA data, and a signed attestation of accuracy. The CFO also certifies that federal receivables are properly supported and, unless federal terms say otherwise, are expected within 60 days. The law takes effect July 1, 2026, and does not cover the University System of Maryland.

Stricter review when waiving big contract penalties

For procurements of $5 million or more, a unit that does not pursue liquidated damages after a breach must get the unit head’s approval. It must keep written reasons and send them to the Board of Public Works and the Joint Audit and Evaluation Committee. The law also clarifies which Executive Branch entities count as “Units” for procurement. These rules take effect July 1, 2026.

Sponsors & Cosponsors

Sponsor

Shelly Hettleman
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 160 • No: 13

House vote • 4/10/2026

Third Reading Passed

Yes: 119 • No: 13 • Other: 3

Senate vote • 3/20/2026

Third Reading Passed

Yes: 41 • No: 0 • Other: 2

Actions Timeline

Approved by the Governor - Chapter 367
5/12/2026
Returned Passed
4/10/2026Senate
Third Reading Passed (119-13)
4/10/2026House
Favorable Adopted Second Reading Passed
4/8/2026House
Favorable Report by Government, Labor, and Elections
4/8/2026House
Hearing 3/31 at 1:00 p.m.
3/26/2026House
Referred Government, Labor, and Elections
3/21/2026House
Third Reading Passed (41-0)
3/20/2026Senate
Second Reading Passed with Amendments
3/19/2026Senate
Favorable with Amendments {553826/1 Adopted
3/19/2026Senate
Favorable with Amendments Report by Budget and Taxation
3/19/2026Senate
Hearing 3/03 at 1:30 p.m.
2/11/2026Senate
First Reading Budget and Taxation
2/6/2026Senate

Bill Text

Enacted
5/12/2026
PDF
Third Reading
3/19/2026
PDF
First Reading
2/6/2026
PDF

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