WHAT THIS BILL REGULATES · 4 REQUIREMENT TYPES
How Is This Bill Enforced
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.
(A)–(H) In this subtitle the following words have the meanings indicated. (B) (1) "Algorithmic decision systemAlgorithmic decision system"Algorithmic decision system" means a computational process that facilitates decision making. "Algorithmic decision system" includes decisions derived from machines, statistics, facial recognition, and decisions on paper.Md. Code, State Fin. & Proc. § 3.5–801(B)" means a computational process that facilitates decision making. (2) "Algorithmic decision systemAlgorithmic decision system"Algorithmic decision system" means a computational process that facilitates decision making. "Algorithmic decision system" includes decisions derived from machines, statistics, facial recognition, and decisions on paper.Md. Code, State Fin. & Proc. § 3.5–801(B)" includes decisions derived from machines, statistics, facial recognition, and decisions on paper. (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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D)" 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 Department 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D)" 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 Department 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 used throughout the new Subtitle 8 on Artificial Intelligence. Key definitions include artificial intelligence (a three-part functional definition tracking federal frameworks), high-risk artificial intelligence (defined by regulation and inclusive of both rights-impacting and safety-impacting AI), and impact assessment (also to be defined by Department regulation). The definitions for rights-impacting and safety-impacting AI are notably broad, covering civil rights, equal opportunities, privacy, human life, well-being, and critical infrastructure.
(A)(1)–(2) 1 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D).
(B)(1)–(4) 2 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) 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 Department a report on all high–risk artificial intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) procured and deployed for a research or academic purpose.
This section defines the scope of the subtitle. The Office of the Attorney General, the Comptroller, and the State Treasurer are exempted from the subtitle's direct requirements but must each establish functionally compatible policies for high-risk AI by June 1, 2025. Public senior higher education institutions and Baltimore City Community College are generally subject to the subtitle, except that AI deployed solely for research or academic purposes is exempt from most requirements — though those institutions must still establish compatible high-risk AI policies for research AI by June 1, 2025, and must submit annual reports on research-purpose high-risk AI to the Department by September 1, 2025.
(A)(1)–(2) 3 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D); and (2) provide the inventory to the Department in a format required by the Department.
(B)(1)–(7) 3 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 Department to involve high–risk artificial intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D); 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) 4 The Department shall make an aggregated statewide inventory publicly available on its website.
(D)(1)–(2) 4 The Department may not make publicly available on the Department'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 Department shall provide to the Governor, members of the General Assembly, and law enforcement the information described in paragraph (1) of this subsection.
(E)(1)–(2) 5 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D). (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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D).
This is the core inventory and impact-assessment section. Each unit of State government must conduct a regular inventory of systems employing high-risk AI and submit it to the Department in a prescribed format. The inventory must include seven enumerated data fields for each system: name, vendor, capabilities, purpose and intended uses, whether an impact assessment was conducted pre-deployment, whether the system involves high-risk AI decision-making, and a summary of the most recent impact assessment results.
The Department must publish an aggregated statewide inventory on its website, with a security carve-out for information whose publication would compromise system security or integrity. On request, withheld information must be provided to the Governor, General Assembly members, and law enforcement. Units must also conduct impact assessments — by December 31, 2026 for systems procured on or after February 1, 2026, and by July 1, 2027 for systems procured before that date.
(A) 6 On or before December 1, 2024, the Department, 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) 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) 6 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D); (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 Department is notified that an individual or group of individuals may have been negatively impacted by a system that employs high–risk artificial intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D), require the Department to: (I) notify an individual or a group of individuals determined to have been negatively impacted by a system that employs high–risk artificial intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D); and (II) provide guidance to an individual or a group of individuals determined to have been negatively impacted by a system that employs high–risk artificial intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) that ensures data privacy and compliance with applicable statutes and regulations.
(C) 7 The Department 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 imposes the core policy-adoption mandate. The Department of Information Technology, in consultation with the Governor's AI Subcabinet, must adopt policies and procedures 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 to individuals negatively impacted by high-risk AI systems, and provide procurement guidance ensuring data privacy and legal compliance. The Department must publish the adopted policies on its website within 45 days of adoption.
(A) 8 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) 9 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D) 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 creates a deployment gate: 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. It also imposes an ongoing impact-assessment obligation for units that employ high-risk AI, at a cadence to be determined by the AI Subcabinet.
(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)(1)–(7) 10 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 intelligenceHigh–risk artificial intelligence"High–risk artificial intelligence" means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor's Artificial Intelligence Subcabinet. "High–risk artificial intelligence" includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.Md. Code, State Fin. & Proc. § 3.5–801(D); 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 Department 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 Department, 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 Department, 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)–(G) 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, chaired by the Secretary of Information Technology. The Subcabinet is composed of senior officials from IT, budget, general services, labor, commerce, homeland security, and privacy/data/security offices, plus the Governor's Senior Advisor for Responsible AI. It is charged with developing strategy and policy for responsible AI use, overseeing inventories and impact assessments, monitoring high-risk AI, ensuring compliance, supporting AI innovation across agencies, developing a comprehensive action plan, promoting AI workforce skills, and identifying use cases and foundational infrastructure. The Governor must provide sufficient resources and may appropriate up to $3 million annually for partnerships and contracts.
(A)(1)–(2) 11 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) 11 The Department 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, identifying data that is necessary for the unit's operation or required by law, in a form prescribed by the Chief Data Officer. The inventory must specifically note when data is used in artificial intelligence. The Department must develop and publish guidance on inventory policies and procedures.
(a)(12) 12 conducting inventories and ongoing assessments 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 amendment adds a twelfth duty to the Secretary of Information Technology's existing responsibilities: conducting inventories and ongoing assessments of systems that employ artificial intelligence used by units of State government, as required under § 3.5–803.
(A)–(H) 13 In this section, "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. (B) (1) A competitive proof of concept procurement is a formal competitive procurement method that may be used to solicit proposals for the conduct of a proof of concept prior to full implementation when the head of a unit determines the process to be appropriate and in the best interests of the unit, including: (I) testing software–as–a–service or off–the–shelf software; (II) testing new, innovative products or services; or (III) testing a product or service conceptualized or conceived of 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) (I) After obtaining the approval of the head of the unit and before conducting a competitive proof of concept 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 concept procurement if the unit: 1. has sufficient internal resources to manage the proof of concept, including human capital, subject matter expertise, and technological infrastructure, or has the means to obtain these resources; and 2. enters into a memorandum of understanding with the Department of Information Technology that requires regular status updates, vendor capacity, and any other information necessary for the Department of Information Technology to evaluate whether the proof of concept can be successfully deployed and is beneficial to the State. (C) (1) A competitive proof of concept procurement may be conducted through the issuance of a solicitation by any method of procurement authorized under this Division II. (2) A competitive proof of concept procurement solicitation shall include a statement of: (I) the scope of work or project description, including the intended use, quantity, estimated time frame for the proof of concept, and anticipated number of proof of concept awards that will be made; and (II) the factors, including price, that will be used in evaluating proposals and the relative importance of each. (3) A solicitation may be distributed to vendors known to offer goods or services within the scope of the proof of concept and shall, except for procurements under $15,000 not otherwise required by law to be posted, be posted on eMaryland Marketplace Advantage, in accordance with the policies and procedures under subsection (G) of this section. (D) After receipt of proposals but before award of a procurement contract, a unit may: (1) conduct discussions with an offeror to ensure full understanding of: (I) the requirements of the unit, as set forth in the request for proposals; and (II) the proposal submitted by the offeror; and (2) request product samples for testing by the unit or a demonstration of a product or service and use these samples or demonstrations in its evaluation process. (E) A request for product samples for testing or demonstration made under subsection (D)(2) of this section shall be issued to all offerors deemed reasonable at the time of the request. (F) A unit may: (1) award one or more of the proposals a contract for the proof of concept. (G) A vendor awarded a proof of concept procurement shall be eligible to bid on a procurement to implement a proposal related to the proof of concept 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 concept procurements.
This section establishes competitive proof of concept procurement as a formal procurement method for testing goods, services, or technology in a real-world environment before full implementation. Units must obtain approval from the Secretary of Information Technology before conducting such procurements. The section details solicitation requirements, evaluation procedures, and award processes. The Department of General Services, in consultation with DoIT, must adopt policies and procedures for implementing the method. While not AI-specific in its text, this procurement vehicle was created in the context of the AI Governance Act to facilitate pilot testing of AI technologies.
(a)–(b) 14 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, including guidelines for owners and operators to incorporate risk management into 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, including whether and how such technology should be used, in what contexts, and with what safeguards; (ix) by occupations licensed and certified by the State, including identifying ways for State regulatory boards to identify and manage the risks and opportunities 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 determine appropriate permitted use and supervision of licensees; (x) in local school systems, including recommendations to the State on the 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); (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), including efforts to increase competition and assurance that contracts retain sufficient data privacy protection against vendor lock–in; (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 AI Subcabinet to develop and submit by December 1, 2024, a roadmap reviewing the risks and opportunities associated with AI in State services. The roadmap must include study plans covering twelve topic areas — from job creation and workforce development to criminal justice, elections, and education — along with prioritization, stakeholder identification, and projected timelines. This is a one-time reporting obligation rather than an ongoing compliance requirement.
15 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 department 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 AI Subcabinet to report to the Governor and General Assembly by December 1, 2025, on whether the Subcabinet structure is sufficient to accomplish the State's AI goals and whether it should be transitioned to a standalone department or independent unit of State government.