Maryland · House Bill · 2024 Regular Session
HB1271
Maryland HB 1271 — Information Technology – Artificial Intelligence – Policies and Procedures (Artificial Intelligence Governance Act of 2024)

Status ● Failed Effective N/A Passage Likelihood N/A

WHAT THIS BILL REGULATES · 4 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
No private right of action. Enforcement is through internal executive branch governance. The Department of Information Technology, in consultation with the Governor's Artificial Intelligence Subcabinet, adopts and enforces policies and procedures. No external enforcement mechanism or penalty structure is established.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
No monetary penalties, damages, or private remedies are established by this act. Compliance is enforced through internal executive branch governance mechanisms.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Md. Code, State Fin. & Proc. § 3.5–318
Annual data inventory by units of State government
Government

(A) 1 ON OR BEFORE DECEMBER 1, 2024, AND ANNUALLY THEREAFTER, EACH UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) SHALL CONDUCT A DATA INVENTORY THAT IDENTIFIES DATA THAT MEETS THE CRITERIA ESTABLISHED BY THE CHIEF DATA OFFICER AND THAT IS: (1) (I) NECESSARY FOR THE OPERATION OF THE UNIT; OR (II) OTHERWISE REQUIRED TO BE COLLECTED: 1. AS A CONDITION TO RECEIVE FEDERAL FUNDS; OR 2. BY FEDERAL OR STATE LAW; AND (2) IN A FORM PRESCRIBED BY THE CHIEF DATA OFFICER, INCLUDING WHEN THE DATA IS USED IN ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C).

(B) 2 THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) SHALL DEVELOP AND PUBLISH GUIDANCE ON THE POLICIES AND PROCEDURES FOR THE INVENTORY.

This section requires each unit of State government to conduct an annual data inventory beginning December 1, 2024. The inventory must identify data meeting criteria established by the Chief Data Officer that is either necessary for the unit's operation or required to be collected under federal or state law. The inventory must be in the form prescribed by the Chief Data Officer and must flag when data is used in artificial intelligence. The Department of Information Technology must develop and publish guidance on the policies and procedures for the inventory.

Compliance actions 2 items
1
Each unit of State governmentUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) must conduct an annual data inventory by December 1 each year, identifying data necessary for operations or required by law, in the form prescribed by the Chief Data Officer, including flagging data used in artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C).
G-01.3
2
The Department of Information Technology must develop and publish guidance on the policies and procedures for the data inventory.
G-01
Md. Code, State Fin. & Proc. § 3.5–801
Definitions for Subtitle 8 (Artificial Intelligence)

(A)–(H) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (B) [Reserved - struck] (C) "ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C)" MEANS A MACHINE–BASED SYSTEM THAT: (1) CAN, FOR A GIVEN SET OF HUMAN–DEFINED OBJECTIVES, MAKE PREDICTIONS, RECOMMENDATIONS, OR DECISIONS INFLUENCING REAL OR VIRTUAL ENVIRONMENTS; (2) USES MACHINE AND HUMAN–BASED INPUTS TO PERCEIVE REAL AND VIRTUAL ENVIRONMENTS AND ABSTRACTS THOSE PERCEPTIONS INTO MODELS THROUGH ANALYSIS IN AN AUTOMATED MANNER; AND (3) USES MODEL INFERENCE TO FORMULATE OPTIONS FOR INFORMATION OR ACTION. (D) (1) "HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C)" MEANS ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) THAT IS A RISK TO INDIVIDUALS OR COMMUNITIES, AS DEFINED UNDER REGULATIONS ADOPTED BY THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) IN CONSULTATION WITH THE GOVERNOR'S ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SUBCABINET. (2) "HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C)" INCLUDES RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCERights–impacting artificial intelligence"Rights–impacting artificial intelligence" means artificial intelligence whose output serves as a basis for decision or action that is significantly likely to affect civil rights, civil liberties, equal opportunities, access to critical resources, or privacy.Md. Code, State Fin. & Proc. § 3.5–801(G) AND SAFETY–IMPACTING ARTIFICIAL INTELLIGENCESafety–impacting artificial intelligence"Safety–impacting artificial intelligence" means artificial intelligence that has the potential to significantly impact the safety of human life, well–being, or critical infrastructure.Md. Code, State Fin. & Proc. § 3.5–801(H). (E) "IMPACT ASSESSMENTImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E)" MEANS AN ASSESSMENT OF ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SYSTEMS MADE UNDER REGULATIONS ADOPTED BY THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) IN CONSULTATION WITH THE GOVERNOR'S ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SUBCABINET AND REQUIRED UNDER § 3.5–803 OF THIS SUBTITLE. (F) "PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONPublic senior higher education institution"Public senior higher education institution" means: (1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science; (2) Morgan State University; or (3) St. Mary's College of Maryland.Md. Code, State Fin. & Proc. § 3.5–801(F)" MEANS: (1) THE CONSTITUENT INSTITUTIONS OF THE UNIVERSITY SYSTEM OF MARYLAND AND THE UNIVERSITY OF MARYLAND CENTER FOR ENVIRONMENTAL SCIENCE; (2) MORGAN STATE UNIVERSITY; OR (3) ST. MARY'S COLLEGE OF MARYLAND. (G) "RIGHTS–IMPACTING ARTIFICIAL INTELLIGENCERights–impacting artificial intelligence"Rights–impacting artificial intelligence" means artificial intelligence whose output serves as a basis for decision or action that is significantly likely to affect civil rights, civil liberties, equal opportunities, access to critical resources, or privacy.Md. Code, State Fin. & Proc. § 3.5–801(G)" MEANS ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) WHOSE OUTPUT SERVES AS A BASIS FOR DECISION OR ACTION THAT IS SIGNIFICANTLY LIKELY TO AFFECT CIVIL RIGHTS, CIVIL LIBERTIES, EQUAL OPPORTUNITIES, ACCESS TO CRITICAL RESOURCES, OR PRIVACY. (H) "SAFETY–IMPACTING ARTIFICIAL INTELLIGENCESafety–impacting artificial intelligence"Safety–impacting artificial intelligence" means artificial intelligence that has the potential to significantly impact the safety of human life, well–being, or critical infrastructure.Md. Code, State Fin. & Proc. § 3.5–801(H)" MEANS ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) THAT HAS THE POTENTIAL TO SIGNIFICANTLY IMPACT THE SAFETY OF HUMAN LIFE, WELL–BEING, OR CRITICAL INFRASTRUCTURE.

This section establishes the defined terms for the new Subtitle 8 governing artificial intelligence in State government. Key terms include artificial intelligence (a machine-based system making predictions, recommendations, or decisions), high-risk artificial intelligence (AI posing risk to individuals or communities as defined by Department regulation, including rights-impacting and safety-impacting AI), impact assessment, rights-impacting artificial intelligence, and safety-impacting artificial intelligence. The definitions section itself imposes no compliance obligations.

Md. Code, State Fin. & Proc. § 3.5–802
Applicability and exemptions
Government

(A)(1)–(2) 3 EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, THIS SUBTITLE DOES NOT APPLY TO: (I) THE OFFICE OF THE ATTORNEY GENERAL; (II) THE COMPTROLLER; OR (III) THE STATE TREASURER. (2) ON OR BEFORE JUNE 1, 2025, EACH ENTITY LISTED UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL ESTABLISH POLICIES AND PROCEDURES THAT ARE FUNCTIONALLY COMPATIBLE WITH THE POLICIES AND PROCEDURES ADOPTED UNDER § 3.5–804(A) OF THIS SUBTITLE FOR THE DEVELOPMENT, PROCUREMENT, DEPLOYMENT, USE, AND ONGOING ASSESSMENT OF SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C).

(B)(1)–(4) 4 EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, THIS SUBTITLE APPLIES TO EACH PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONPublic senior higher education institution"Public senior higher education institution" means: (1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science; (2) Morgan State University; or (3) St. Mary's College of Maryland.Md. Code, State Fin. & Proc. § 3.5–801(F) AND BALTIMORE CITY COMMUNITY COLLEGE. (2) THIS SUBTITLE DOES NOT APPLY TO ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) DEPLOYED BY A PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONPublic senior higher education institution"Public senior higher education institution" means: (1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science; (2) Morgan State University; or (3) St. Mary's College of Maryland.Md. Code, State Fin. & Proc. § 3.5–801(F) OR BALTIMORE CITY COMMUNITY COLLEGE THAT IS USED SOLELY FOR A RESEARCH OR ACADEMIC PURPOSE, INCLUDING IN PARTNERSHIP WITH A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) FOR THE DEVELOPMENT, PROCUREMENT, DEPLOYMENT, OR USE OF ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C). (3) ON OR BEFORE JUNE 1, 2025, EACH PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONPublic senior higher education institution"Public senior higher education institution" means: (1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science; (2) Morgan State University; or (3) St. Mary's College of Maryland.Md. Code, State Fin. & Proc. § 3.5–801(F) AND BALTIMORE CITY COMMUNITY COLLEGE SHALL ESTABLISH POLICIES AND PROCEDURES THAT ARE FUNCTIONALLY COMPATIBLE WITH THE POLICIES AND PROCEDURES ADOPTED UNDER § 3.5–804(A) OF THIS SUBTITLE FOR THE DEVELOPMENT, PROCUREMENT, DEPLOYMENT, USE, AND ONGOING ASSESSMENT OF SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) USED SOLELY FOR A RESEARCH OR ACADEMIC PURPOSE. (4) ON OR BEFORE SEPTEMBER 1, 2025, AND EACH YEAR THEREAFTER, EACH PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONPublic senior higher education institution"Public senior higher education institution" means: (1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science; (2) Morgan State University; or (3) St. Mary's College of Maryland.Md. Code, State Fin. & Proc. § 3.5–801(F) AND BALTIMORE CITY COMMUNITY COLLEGE SHALL SUBMIT TO THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) A REPORT ON ALL HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) PROCURED AND DEPLOYED FOR A RESEARCH OR ACADEMIC PURPOSE.

This section establishes the scope of applicability for Subtitle 8. The Office of the Attorney General, Comptroller, and State Treasurer are exempt from the subtitle but must establish functionally compatible policies by June 1, 2025. Public senior higher education institutions and Baltimore City Community College are subject to the subtitle except for AI used solely for research or academic purposes; they must also establish functionally compatible policies for research/academic AI and submit annual reports on high-risk AI procured for those purposes by September 1, 2025.

Compliance actions 2 items
3
The Office of the Attorney General, the Comptroller, and the State Treasurer must each establish policies and procedures functionally compatible with the DepartmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c)'s AI policies for the development, procurement, deployment, use, and ongoing assessment of high-risk AI systems by June 1, 2025.
G-01.1
4
Each public senior higher education institutionPublic senior higher education institution"Public senior higher education institution" means: (1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science; (2) Morgan State University; or (3) St. Mary's College of Maryland.Md. Code, State Fin. & Proc. § 3.5–801(F) and Baltimore City Community College must (1) establish functionally compatible AI governance policies for research/academic high-risk AI by June 1, 2025, and (2) submit an annual report to the DepartmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) by September 1, 2025, and each year thereafter, on all high-risk AI procured and deployed for research or academic purposes.
R-02.1
Md. Code, State Fin. & Proc. § 3.5–803
AI system inventory and impact assessments
Government

(A) 5 ON OR BEFORE DECEMBER 1, 2025, AND REGULARLY THEREAFTER, EACH UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) SHALL: (1) CONDUCT AN INVENTORY OF SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C); AND (2) PROVIDE THE INVENTORY TO THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) IN A FORMAT REQUIRED BY THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c).

(B) 5 FOR EACH SYSTEM, THE INVENTORY REQUIRED BY THIS SECTION SHALL INCLUDE: (1) THE NAME OF THE SYSTEM; (2) THE VENDOR THAT PROVIDED THE SYSTEM, IF APPLICABLE; (3) A DESCRIPTION OF THE CAPABILITIES OF THE SYSTEM; (4) A STATEMENT OF THE PURPOSE AND THE INTENDED USES OF THE SYSTEM; (5) WHETHER THE SYSTEM UNDERWENT AN IMPACT ASSESSMENTImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E) PRIOR TO BEING DEPLOYED; (6) WHETHER THE SYSTEM IS USED TO INDEPENDENTLY MAKE A DECISION OR JUDGMENT OR TO INFORM OR SUPPORT A DECISION OR JUDGMENT DETERMINED BY THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) TO INVOLVE HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C); AND (7) A SUMMARY OF THE RESULTS OF THE MOST RECENT IMPACT ASSESSMENTImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E).

(C)–(D) 6 THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) SHALL MAKE AN AGGREGATED STATEWIDE INVENTORY PUBLICLY AVAILABLE ON ITS WEBSITE. (D) (1) THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) MAY NOT MAKE PUBLICLY AVAILABLE ON THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c)'S WEBSITE INFORMATION FROM THE INVENTORIES REQUIRED BY THIS SECTION THAT RELATE TO THE SAFETY AND SECURITY OF STATE SYSTEMS IF THE PUBLICATION OF THE INFORMATION IS LIKELY TO COMPROMISE THE SECURITY OR INTEGRITY OF THE SYSTEM. (2) ON REQUEST, THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) SHALL PROVIDE TO THE GOVERNOR, MEMBERS OF THE GENERAL ASSEMBLY, AND LAW ENFORCEMENT THE INFORMATION DESCRIBED IN PARAGRAPH (1) OF THIS SUBSECTION.

(E) 7 ON OR BEFORE DECEMBER 31, 2026, EACH UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) SHALL CONDUCT AN IMPACT ASSESSMENT OF A SYSTEM PROCURED ON OR AFTER FEBRUARY 1, 2026, THAT INVOLVES HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C). (2) ON OR BEFORE JULY 1, 2027, EACH UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) SHALL CONDUCT AN IMPACT ASSESSMENT OF A SYSTEM PROCURED BEFORE FEBRUARY 1, 2026, THAT INVOLVES HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C).

This is the core operational compliance section. It requires each unit of State government to conduct a regular inventory of high-risk AI systems beginning December 1, 2025, and provide the inventory to the Department. Each inventory entry must include seven specified data elements: system name, vendor, capabilities, purpose and intended uses, whether an impact assessment was conducted prior to deployment, whether the system involves high-risk AI, and a summary of the most recent impact assessment results. The Department must publish an aggregated statewide inventory on its website, with a security exception for information that could compromise system integrity. Units must also conduct impact assessments of newly procured high-risk AI systems by December 31, 2026, and of previously procured high-risk AI systems by July 1, 2027.

Compliance actions 3 items
5
Each unit of State governmentUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) must conduct a regular inventory of high-risk AI systems beginning December 1, 2025, including the system name, vendor, capabilities, purpose, impact assessmentImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E) status, decision-making role, and most recent impact assessmentImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E) summary, and provide the inventory to the DepartmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c).
PS-01.1
6
The DepartmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) must publish an aggregated statewide AI inventory on its website. Information that could compromise the security or integrity of a State system may be withheld from public disclosure but must be provided on request to the Governor, General Assembly members, and law enforcement.
PS-01.1
7
Each unit of State governmentUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) must conduct an impact assessment of high-risk AI systems procured on or after February 1, 2026, by December 31, 2026, and of high-risk AI systems procured before that date by July 1, 2027.
PS-01.2
Md. Code, State Fin. & Proc. § 3.5–804
Department AI policies and procedures
Government

(A) 8 ON OR BEFORE DECEMBER 1, 2024, THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c), IN CONSULTATION WITH THE GOVERNOR'S ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SUBCABINET, SHALL ADOPT POLICIES AND PROCEDURES CONCERNING THE DEVELOPMENT, PROCUREMENT, DEPLOYMENT, USE, AND ONGOING ASSESSMENT OF SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) BY A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f).

(B)(1)–(5) 8 THE POLICIES AND PROCEDURES REQUIRED BY SUBSECTION (A) OF THIS SECTION SHALL: (1) SUBJECT TO ANY OTHER APPLICABLE LAW, GOVERN THE PROCUREMENT, DEPLOYMENT, AND ONGOING ASSESSMENT OF SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) BY A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f); (2) DEFINE THE CRITERIA FOR AN INVENTORY OF SYSTEMS THAT EMPLOY HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C); (3) BE SUFFICIENT TO ENSURE THAT THE USE OF ANY SYSTEM THAT EMPLOYS ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) BY A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) IS GOVERNED BY ADEQUATE GUARDRAILS TO PROTECT INDIVIDUALS AND COMMUNITIES; (4) IF THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) IS NOTIFIED THAT AN INDIVIDUAL OR GROUP OF INDIVIDUALS MAY HAVE BEEN NEGATIVELY IMPACTED BY A SYSTEM THAT EMPLOYS HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C), REQUIRE THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) TO: (I) NOTIFY AN INDIVIDUAL OR A GROUP OF INDIVIDUALS DETERMINED TO HAVE BEEN NEGATIVELY IMPACTED; AND (II) PROVIDE GUIDANCE TO AN INDIVIDUAL OR A GROUP OF INDIVIDUALS DETERMINED TO HAVE BEEN NEGATIVELY IMPACTED ON AVAILABLE OPTIONS TO OPT OUT OF THE SYSTEM; AND (5) PROVIDE GUIDANCE TO UNITS OF STATE GOVERNMENT ON PROCUREMENT OF A SYSTEM THAT EMPLOYS HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) THAT ENSURES DATA PRIVACY AND COMPLIANCE WITH APPLICABLE STATUTES AND REGULATIONS.

(C) 9 THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) SHALL MAKE THE POLICIES AND PROCEDURES REQUIRED BY SUBSECTION (A) OF THIS SECTION PUBLICLY AVAILABLE ON ITS WEBSITE WITHIN 45 DAYS AFTER THE POLICIES AND PROCEDURES ARE ADOPTED.

This section requires the Department of Information Technology, in consultation with the Governor's AI Subcabinet, to adopt policies and procedures by December 1, 2024, governing the development, procurement, deployment, use, and ongoing assessment of high-risk AI by units of State government. The policies must define inventory criteria, ensure adequate guardrails to protect individuals and communities, require notification and opt-out guidance for individuals negatively impacted by high-risk AI, and provide procurement guidance ensuring data privacy and legal compliance. The policies must be published on the Department's website within 45 days of adoption.

Compliance actions 2 items
8
The Department of Information Technology must adopt, by December 1, 2024, policies and procedures governing the development, procurement, deployment, use, and ongoing assessment of high-risk AI by State agencies, including inventory criteria, adequate guardrails, notification and opt-out guidance for impacted individuals, and procurement guidance ensuring data privacy and legal compliance.
G-01.1
9
The DepartmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) must publish the AI policies and procedures on its website within 45 days of adoption.
G-02.4
Md. Code, State Fin. & Proc. § 3.5–805
Prohibition on non-compliant AI deployment; ongoing impact assessments
Government

(A) 10 BEGINNING JULY 1, 2025, A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) MAY NOT DEPLOY A NEW SYSTEM THAT EMPLOYS ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) UNLESS THE SYSTEM COMPLIES WITH THE POLICIES AND PROCEDURES ADOPTED UNDER § 3.5–804 OF THIS SUBTITLE.

(B) 11 A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) THAT EMPLOYS HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SHALL CONDUCT REGULAR IMPACT ASSESSMENTSImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E), AS DETERMINED BY THE GOVERNOR'S ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SUBCABINET OF THE GOVERNOR'S EXECUTIVE COUNCIL.

This section establishes two key obligations. First, beginning July 1, 2025, no unit of State government may deploy a new AI system unless it complies with the policies and procedures adopted under § 3.5–804. Second, any unit employing high-risk AI must conduct regular impact assessments on a schedule determined by the Governor's AI Subcabinet. This creates both a pre-deployment compliance gate and a continuing post-deployment assessment requirement.

Compliance actions 2 items
10
Beginning July 1, 2025, units of State government must not deploy any new AI system unless it complies with the DepartmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c)'s AI policies and procedures.
PS-01.4
11
Units of State government employing high-risk AI must conduct regular impact assessmentsImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E) on a schedule determined by the Governor's AI Subcabinet.
PS-01.2
Md. Code, State Fin. & Proc. § 3.5–806
Governor's Artificial Intelligence Subcabinet
Government

(A)–(D) THERE IS A GOVERNOR'S ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) SUBCABINET OF THE GOVERNOR'S EXECUTIVE COUNCIL. (B) THE PURPOSE OF THE SUBCABINET IS TO FACILITATE AND ENHANCE COOPERATION AMONG UNITS OF STATE GOVERNMENT, IN CONSULTATION WITH ACADEMIC INSTITUTIONS AND INDUSTRIES UTILIZING ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C). (C) THE SUBCABINET CONSISTS OF THE FOLLOWING MEMBERS: (1) THE SECRETARY, OR THE SECRETARY'S DESIGNEE; (2) THE SECRETARY OF BUDGET AND MANAGEMENT, OR THE SECRETARY'S DESIGNEE; (3) THE SECRETARY OF GENERAL SERVICES, OR THE SECRETARY'S DESIGNEE; (4) THE SECRETARY OF LABOR, OR THE SECRETARY'S DESIGNEE; (5) THE SECRETARY OF COMMERCE, OR THE SECRETARY'S DESIGNEE; (6) THE DIRECTOR OF THE GOVERNOR'S OFFICE OF HOMELAND SECURITY, OR THE DIRECTOR'S DESIGNEE; (7) THE CHIEF PRIVACY OFFICER, OR THE CHIEF PRIVACY OFFICER'S DESIGNEE; (8) THE CHIEF DATA OFFICER, OR THE CHIEF DATA OFFICER'S DESIGNEE; (9) THE CHIEF INFORMATION SECURITY OFFICER, OR THE CHIEF INFORMATION SECURITY OFFICER'S DESIGNEE; (10) THE GOVERNOR'S SENIOR ADVISOR FOR RESPONSIBLE ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C), OR THE SENIOR ADVISOR'S DESIGNEE; AND (11) ANY OTHER MEMBER OF THE GOVERNOR'S EXECUTIVE COUNCIL, APPOINTED BY THE GOVERNOR. (D) THE SECRETARY SHALL CHAIR THE SUBCABINET.

(E) 12 THE SUBCABINET SHALL: (1) DEVELOP STRATEGY, POLICY, AND MONITORING PROCESSES FOR RESPONSIBLE AND PRODUCTIVE USE OF ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) AND ASSOCIATED DATA BY UNITS OF STATE GOVERNMENT; (2) OVERSEE THE STATE'S IMPLEMENTATION OF: (I) ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) INVENTORY; (II) ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) IMPACT ASSESSMENTSImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E); (III) MONITORING OF HIGH–RISK ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C); AND (IV) COMPLIANCE WITH STATE POLICIES AND PROCEDURES; (3) SUPPORT ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) AND DATA INNOVATION ACROSS UNITS OF STATE GOVERNMENT; (4) DEVELOP AND IMPLEMENT A COMPREHENSIVE ACTION PLAN FOR RESPONSIBLE AND PRODUCTIVE USE OF ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) AND ASSOCIATED DATA BY UNITS OF STATE GOVERNMENT; (5) ESTABLISH PARTNERSHIPS, MEMORANDA OF UNDERSTANDING, AND CONTRACTS TO SUPPORT THE AIMS OF THIS SECTION; (6) PROMOTE ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) KNOWLEDGE, SKILLS, AND TALENT IN STATE GOVERNMENT; AND (7) IDENTIFY ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) USE CASES AND BUILD FOUNDATIONAL INFRASTRUCTURE BY REQUIRING: (I) THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) TO EVALUATE RELEVANT INFRASTRUCTURE TO SAFELY, SECURELY, AND EFFICIENTLY TEST ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) PROOFS OF CONCEPT AND PILOTS; (II) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c), TO CREATE A MODEL FOR RUNNING AND PROCURING ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) PROOFS OF CONCEPT AND PILOTS, IN ACCORDANCE WITH STATE LAWS, REGULATIONS, AND POLICIES; AND (III) THE DEPARTMENTDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c), IN CONSULTATION WITH THE SUBCABINET, TO COORDINATE WITH AGENCIES TO PROVIDE SUPPORT IN IDENTIFYING AND PRIORITIZING USE CASES AND EXECUTING PROOFS OF CONCEPT AND PILOTS ALIGNED WITH THE GOVERNOR'S PRIORITIES.

(F) THE GOVERNOR SHALL PROVIDE THE SUBCABINET WITH SUFFICIENT RESOURCES TO PERFORM THE FUNCTIONS OF THIS SECTION.

This section establishes the Governor's Artificial Intelligence Subcabinet of the Governor's Executive Council, a multi-agency coordinating body chaired by the Secretary of Information Technology. The Subcabinet's mandate includes developing AI strategy, overseeing AI and data inventories and impact assessments, supporting AI innovation across State government, developing a comprehensive action plan, establishing partnerships, promoting AI knowledge and talent, and identifying AI use cases and building foundational infrastructure. The Governor must provide sufficient resources to the Subcabinet. This is primarily an institutional establishment and mandate provision rather than a compliance obligation on regulated parties.

Compliance actions 1 item
12
The Governor's AI Subcabinet must develop AI strategy and monitoring processes, oversee AI inventories and impact assessmentsImpact assessment"Impact assessment" means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.Md. Code, State Fin. & Proc. § 3.5–801(E), ensure compliance with State AI policies, develop a comprehensive action plan, and build foundational AI infrastructure across State government.
G-01.1
Md. Code, State Fin. & Proc. § 3.5–303(a)(12)
Secretary's duty to conduct AI inventories

(12) CONDUCTING INVENTORIES OF SYSTEMS THAT EMPLOY ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) THAT ARE USED BY A UNIT OF STATE GOVERNMENTUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f) AS REQUIRED UNDER § 3.5–803 OF THIS TITLE.

This provision amends the Secretary of Information Technology's enumerated duties to include conducting inventories of systems employing artificial intelligence used by units of State government, as required under § 3.5–803. This is the statutory hook that gives the Secretary authority and obligation to carry out the AI inventory mandate.

Md. Code, State Fin. & Proc. § 13–116
Competitive proof of concept procurements

(A)–(H) IN THIS SECTION, "PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A)" MEANS A TEST, EVALUATION, DEMONSTRATION, OR PILOT PROJECT OF A GOOD, SERVICE, OR TECHNOLOGY IN A REAL–WORLD ENVIRONMENT TO EVALUATE WHETHER THE GOOD, SERVICE, OR TECHNOLOGY CAN BE SUCCESSFULLY DEPLOYED AND IS BENEFICIAL TO THE STATE. (B) (1) A COMPETITIVE PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PROCUREMENT IS A FORMAL COMPETITIVE PROCUREMENT METHOD THAT MAY BE USED TO SOLICIT PROPOSALS FOR THE CONDUCT OF A PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PRIOR TO FULL IMPLEMENTATION WHEN THE HEAD OF A UNIT DETERMINES THE PROCESS TO BE APPROPRIATE AND IN THE BEST INTERESTS OF THE UNIT. (2) (I) AFTER OBTAINING THE APPROVAL OF THE HEAD OF THE UNIT AND BEFORE CONDUCTING A COMPETITIVE PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PROCUREMENT, THE UNIT SHALL OBTAIN APPROVAL FROM THE SECRETARY OF INFORMATION TECHNOLOGY, OR THE SECRETARY'S DESIGNEE. (II) THE SECRETARY OF INFORMATION TECHNOLOGY MAY GRANT APPROVAL FOR A COMPETITIVE PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PROCUREMENT IF THE UNIT: 1. HAS SUFFICIENT INTERNAL RESOURCES TO MANAGE THE PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A); AND 2. ENTERS INTO A MEMORANDUM OF UNDERSTANDING WITH THE DEPARTMENT OF INFORMATION TECHNOLOGY. (C)–(F) [Solicitation, evaluation, and award procedures.] (G) A VENDOR AWARDED A PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PROCUREMENT SHALL BE ELIGIBLE TO BID ON A PROCUREMENT TO IMPLEMENT A PROPOSAL RELATED TO THE PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PROCUREMENT. (H) THE DEPARTMENT OF GENERAL SERVICES, IN CONSULTATION WITH THE DEPARTMENT OF INFORMATION TECHNOLOGY, SHALL ADOPT POLICIES AND PROCEDURES FOR THE DEVELOPMENT AND IMPLEMENTATION OF COMPETITIVE PROOF OF CONCEPTProof of concept"Proof of concept" means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State.Md. Code, State Fin. & Proc. § 13–116(A) PROCUREMENTS.

This section establishes competitive proof of concept procurement as a formal competitive procurement method for State government. It defines proof of concept as a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real-world environment. The section establishes the process for conducting such procurements, including Secretary of IT approval, solicitation requirements, evaluation procedures, and award authority. The Department of General Services, in consultation with the Department of IT, must adopt policies and procedures for competitive proof of concept procurements. While this section supports the broader AI governance framework by enabling rapid piloting of AI technologies, it is a general procurement mechanism not limited to AI systems and does not impose AI-specific compliance obligations.

Section 2 (uncodified)
Subcabinet roadmap on AI risks and opportunities
Government

(a)–(b) 13 The Governor's Artificial IntelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) Subcabinet of the Governor's Executive Council, in consultation with the appropriate units of State government, shall: (1) develop a roadmap to review the risks and opportunities associated with the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) in State services; and (2) on or before December 1, 2024, submit the roadmap to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly. (b) The roadmap developed under subsection (a) of this section shall include: (1) a plan to study the use of artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C): (i) to support job and business creation and growth in the State; (ii) by the State workforce, including opportunities to upskill the workforce; (iii) in critical infrastructure; (iv) in health care delivery and human services; (v) in the discovery and remediation of vulnerabilities in cybersecurity and data management across State and local government, including school systems; (vi) in data privacy, specifically regarding the ability to train systems that employ artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C); (vii) in workforce training; (viii) in the criminal justice system and for public safety purposes; (ix) by occupations licensed and certified by the State; (x) in local school systems; (xi) in the conduct of elections, including reducing or eliminating the spread of misinformation; and (xii) any other State service identified by the Subcabinet; (2) a plan to study: (i) the hiring of talent with expertise in artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C), employment practices, and workforce development implications; (ii) methods to ensure that there is diversity in contract awards and training programs related to artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) in the State, including racial diversity; and (iii) the procurement of systems that employ artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C); (3) a prioritization of the study topics listed under this subsection, including the methodology for the prioritization; (4) a list of appropriate stakeholders identified to participate in each study topic; and (5) the projected timeline to complete each study topic.

This uncodified section requires the Governor's AI Subcabinet to develop a roadmap reviewing the risks and opportunities of AI use in State services and submit it to the Governor and General Assembly by December 1, 2024. The roadmap must include a plan to study AI use across twelve enumerated domains — from job creation to election integrity — as well as AI talent hiring, diversity in contract awards, and procurement practices. It must also include a prioritization methodology, a stakeholder list, and projected timelines for each study topic.

Compliance actions 1 item
13
The Governor's AI Subcabinet must develop a roadmap reviewing AI risks and opportunities across State services and submit it to the Governor and General Assembly by December 1, 2024, covering twelve enumerated study domains, stakeholder identification, prioritization methodology, and projected timelines.
R-02.1
Section 3 (uncodified)
Report on Subcabinet sufficiency and potential transition
Government

14 SECTION 3. AND BE IT FURTHER ENACTED, That, on or before December 1, 2025, the Governor's Artificial IntelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) Subcabinet of the Governor's Executive Council shall submit a report and recommendations to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the sufficiency of the Subcabinet to accomplish the artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.Md. Code, State Fin. & Proc. § 3.5–801(C) goals of the State and the efficacy of the potential transition of the Subcabinet to a departmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) or independent unit of State governmentUnit of State government"Unit of State government" means an agency or unit of the Executive Branch of State government.Md. Code, State Fin. & Proc. § 3.5–101(f).

This uncodified section requires the Subcabinet to submit a report and recommendations to the Governor and General Assembly by December 1, 2025, on whether the Subcabinet is sufficient to accomplish the State's AI goals and whether it should be transitioned to a department or independent unit of State government.

Compliance actions 1 item
14
The AI Subcabinet must submit a report to the Governor and General Assembly by December 1, 2025, evaluating whether the Subcabinet structure is sufficient to accomplish the State's AI goals and whether it should be elevated to a departmentDepartment"Department" means the Department of Information Technology.Md. Code, State Fin. & Proc. § 3.5–101(c) or independent unit.
R-02.1

Passage Likelihood

Failed
Status Failed
Final action Referred Rules

Legislative History

2024-02-08 First Reading Health and Government Operations
2024-02-13 Hearing 3/05 at 1:00 p.m.
2024-04-04 Favorable with Amendments Report by Health and Government Operations
2024-04-04 Favorable with Amendments {273227/1 Adopted
2024-04-04 Second Reading Passed with Amendments
2024-04-04 Third Reading Passed (137-0)
2024-04-05 Referred Rules

Entry Last Reviewed

2026-05-16
AI generated