Procurement - Real Estate Advisory Committee and Property Acquisition and Lease Requirements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb1557*

HOUSE BILL 1557
P2 (6lr3599)
ENROLLED BILL
— Government, Labor, and Elections/Budget and Taxation —
Introduced by Delegate Solomon (By Request – Joint Audit and Evaluation
Committee)

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approv al this

_______ day of _______________ at ________________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

Procurement – Department of General Services – Real Estate Advisory 2
Committee and Property Acquisition and Lease Requirements 3

FOR the purpose of establishing a Real Estate Advisory Committee in the Department of 4
General Services to conduct a review of certain real estate transactions and make 5
certain recommendations; requiring certain real estate transactions submitted to the 6
Board of Public Works for approval to include certain information advise the 7
Department, the Board of Public Works, and the General Assembly on certain real 8
estate matters; establishing additional requirements for the Board of Public Works 9
before approving the acquisition or lease of certain real property; providing that the 10
Board may not approve the sale, transfer, exchange, or grant of certain property under 11
certain circu mstances; and generally relating to real estate transactions in State 12
government. 13

2 HOUSE BILL 1557

BY adding to 1
Article – State Finance and Procurement 2
Section 4–417 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2025 Supplement) 5

BY adding to 6
Article – State Finance and Procurement 7
Section 10–305(j) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 10–305 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17

Article – State Finance and Procurement 18

4–417. 19

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 20
INDICATED. 21

(2), “ADVISORY COMMITTEE” MEANS THE REAL ESTATE ADVISORY 22
COMMITTEE. 23

(3) “BOARD” MEANS THE BOARD OF PUBLIC WORKS. 24

(4) “REAL ESTATE TRANSACTION” MEANS A LEASE, LEASE RENEWAL, 25
OR PURCHASE OF PROPE RTY BY THE STATE GOVERNED BY §§ 4–411 THROUGH 26
4–416 OF THIS SUBTITLE WITH A TOTAL EXPECTED COST GREATER THAN $500,000 27
PER YEAR. 28

(B) THERE IS A REAL ESTATE ADVISORY COMMITTEE IN THE 29
DEPARTMENT. 30

(C) THE PURPOSE OF THE COMMITTEE IS TO ADVIS E THE DEPARTMENT, 31
THE BOARD OF PUBLIC WORKS, AND THE GENERAL ASSEMBLY ON INDUSTRY 32
TRENDS, DEVELOPMENTS AND MOV EMENT IN THE COMMERC IAL REAL ESTATE 33
HOUSE BILL 1557 3

SECTOR, AND BEST PRACTICES F OR REAL ESTATE ASSE T MANAGEMENT IN THE 1
STATE. 2

(D) THE ADVISORY COMMITTEE CONSISTS OF THE FOLLOWING MEMBERS: 3

(1) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 4

(2) SIX MEMBERS WITH EXP ERTISE IN REAL ESTAT E PURCHASES , 5
LEASES, AND LEASE RENEWALS: 6

(I) TWO OF WHOM SHALL BE APPOINTED BY THE GOVERNOR; 7

(II) TWO OF WHOM SHALL BE APPOINTED BY THE PRESIDENT OF 8
THE SENATE; AND 9

(III) TWO OF WHOM SHALL BE APPOINTED BY THE SPEAKER OF 10
THE HOUSE; AND 11

(3) AS EX OFFICIO, NONVOTING MEMBERS: 12

(I) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED 13
BY THE PRESIDENT OF THE SENATE; AND 14

(II) ONE MEMBER OF THE HOUSE OF DELEGATES, APPOINTED 15
BY THE SPEAKER OF THE HOUSE.; 16

(2) FOUR MEMBERS APPOINTED BY THE SECRETARY; 17

(3) ONE MEMBER APPOINTED BY THE PRESIDENT OF THE SENATE; 18
AND 19

(4) ONE MEMBER APPOINTED BY THE SPEAKER OF THE HOUSE. 20

(D) (E) THE SECRETARY SHALL DESIG NATE THE CHAIR OF TH E 21
ADVISORY COMMITTEE. 22

(E) (F) THE DEPARTMENT AND THE DEPARTMENT OF LEGISLATIVE 23
SERVICES SHALL PROVIDE STAFF FOR THE ADVISORY COMMITTEE. 24

(F) (G) A MEMBER OF THE ADVISORY COMMITTEE: 25

(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 26
ADVISORY COMMITTEE; BUT 27
4 HOUSE BILL 1557

(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 1
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 2

(H) THE COMMITTEE: 3

(1) SHALL MEET AT LEAST THREE TIMES ANNUALLY; AND 4

(2) SHALL REVIEW , AT LEAST ONCE EACH Y EAR, THE STATE’S 5
LONG–TERM REAL ESTATE PLANS AND GOALS. 6

(G) THE ADVISORY COMMITTEE SHALL: 7

(1) PRIOR TO ANY FORMAL ACTION ON A REAL ESTATE TRANSACTION 8
BY A STATE AGENCY , ADVISE THE STATE AGENCY OF ANY I SSUES OF CONCERN 9
REGARDING THE REAL ESTATE TRANSACTION; 10

(2) ON THE SELECTION BY THE DEPARTMENT OF A LEAD OFFEROR, 11
IMMEDIATELY BEGIN REAL ESTATE TRANSACTION REVIEW; 12

(3) NOT LESS THAN 1 YEAR PRIOR TO THE EXPIRATION OF A LEASE OF 13
PROPERTY UNDER ITEM (1) OF THIS SUBSECTION, VOTE TO: 14

(I) MAKE A RECOMMENDATIO N AS TO WHETHER THE REAL 15
ESTATE TRANSACTION SHOULD MOVE FORWARD F OR SUBMISSION TO THE BOARD; 16
OR 17

(II) MAKE A RECOMMENDATION AS TO WHETHER A REAL ESTATE 18
TRANSACTION OR SPECIFIC PROVISIONS OF A REAL ESTATE TRANSACTION SHOULD 19
BE REJECTED, REVISED, OR REMOVED PRIOR TO SUBMISSION TO THE BOARD FOR 20
APPROVAL; AND 21

(4) ADVISE THE DEPARTMENT ON THE DEPARTMENT’S LEASE 22
PROCUREMENT PROCEDURES. 23

(H) A REAL ESTATE TRANSACT ION OR SPECIFIC PROV ISIONS NOT 24
RECOMMENDED FOR APPR OVAL BY THE ADVISORY COMMITTEE UNDER 25
SUBSECTION (G) OF THIS SECTION MAY BE RESUBMITTED TO TH E ADVISORY 26
COMMITTEE FOR ADDITIONAL REVIEW. 27

(I) EACH STATE AGENCY THAT SUBMITS A REQUEST FOR PROPOSALS FOR 28
A REAL ESTATE TRANSACTION TO THE ADVISORY COMMITTEE SHALL INCLUDE WITH 29
THE AGENCY’S SUBMISSION: 30
HOUSE BILL 1557 5

(1) A FULL COST BENEFIT ANALYSIS COMPARING S IMILAR OR 1
COMPARABLE PROPERTIES AND PURCHASE OPTIO NS, INCLUDING A COMPAR ISON 2
OF LEASE OPTIONS WIT H PURCHASE OPTIONS , AND LEASE CONSOLIDAT ION 3
OPTIONS; 4

(2) AN ANALYSIS OF STATE AGENCY PARKING NEEDS AND COSTS , 5
INCLUDING ANY RELATED CONSIDERATIONS REGARDING THE PROPERTY; 6

(3) DOCUMENTS THAT JUSTIFY: 7

(I) REAL ESTATE TERMS IN EXCESS OF TIME OR COST IN EXCESS 8
OF ORDINARY AND REGULAR STATE CONTRACT TERMS; 9

(II) RENT ESCALATION RATES IN EXCESS OF MARKET RATES; 10

(III) CONSTRUCTION COSTS AND COSTS FOR ANY OTHER PART OF 11
THE REAL ESTATE TRAN SACTION, WITH CONSIDERATION F OR THE 12
REASONABLENESS AND COST COMPETITIVENESS OF EACH ITEM; 13

(IV) REMOVAL OF ANY STAND ARD REAL ESTATE PROV ISIONS, 14
INCLUDING THE RIGHT TO TERMINATE THE LEASE OR TRANSACTION; AND 15

(V) ANY ISSUES REGARDING NONCOMPETITIVE 16
PROCUREMENTS; 17

(4) A FULL OR SIGNIFICANT RENOVATION COST ANALYSIS, DISTINCT 18
FROM THE OVERALL LEASE COST BENEFIT ANALYSIS, INCLUDING: 19

(I) A JUSTIFICATION FOR NONCOMPETITIVE PROCU REMENT 20
OF GOODS AND SERVICES; 21

(II) A DEMONSTRATION THAT COSTS ARE NECESSARY , 22
REASONABLE, AND APPROPRIATE; AND 23

(III) A DEMONSTRATION THAT FULL FUNDING IS AVAILABLE FOR 24
ALL RENOVATIONS; AND 25

(5) LANDLORD PAYMENT DOCUMENTATION, INCLUDING: 26

(I) TOTAL PAYMENTS TO DATE TO THE LANDLORD; 27

(II) PRIOR LEASE PAYMENTS; 28
6 HOUSE BILL 1557

(III) TAX CREDITS OR OTHER STATE BENEFITS GRANTED TO THE 1
LANDLORD; AND 2

(IV) TAX CREDITS OR OTHER STATE BENEFITS FOR TH E 3
LOCATION OF THE REAL ESTATE TRANSACTION. 4

(J) A REAL ESTATE TRANSACTION THAT IS SUBMITTED TO THE BOARD FOR 5
APPROVAL SHALL INCLUDE: 6

(1) THE ADVISORY COMMITTEE’S RECOMMENDATIONS ON A REAL 7
ESTATE TRANSACTION OR SPECIFIC PROVISIONS OF A REAL ESTATE TRANSACTION; 8
AND 9

(2) ALL INFORMATION SPEC IFIED UNDER SUBSECTI ON (I) OF THIS 10
SECTION. 11

(K) (I) (1) ON OR BEFORE JANUARY OCTOBER 1 EACH YEAR , 12
BEGINNING IN 2026, THE ADVISORY COMMITTEE SHALL SUBMIT AN ANNUAL 13
REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GOVERNOR, THE BOARD OF 14
PUBLIC WORKS, THE DEPARTMENT, AND, IN ACCORDANCE WITH § 2–1257 OF THE 15
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 16

(2) THE REPORT SHALL INCLUDE: 17

(I) A LIST OF ALL CURREN T REAL ESTATE TRANSA CTIONS BY 18
THE STATE GOVERNED BY §§ 4–318 THROUGH 4–321 OF THIS TITLE AND §§ 4–411 19
THROUGH 4–416 OF THIS SUBTITLE , INCLUDING THE TERM O F DURATION AND 20
COSTS ASSOCIATED WITH EACH REAL ESTATE TRANSACTION; 21

(II) THE TOTAL NUMBER OF STATE AGENCIES THAT SUBMITTED 22
REQUESTS FOR PROPOSA LS FOR REAL ESTATE T RANSACTIONS TO THE ADVISORY 23
COMMITTEE; 24

(III) THE FINAL DISPOSITIO N OF EACH REQUEST FO R 25
PROPOSALS FOR A REAL ESTATE TRANSACTION; 26

(IV) THE SUBSEQUENT ACTION TA KEN BY THE AGENCY 27
FOLLOWING FINAL DISP OSITION OF EACH REQU EST FOR PROPOSALS FO R A REAL 28
ESTATE TRANSACTION; AND 29

HOUSE BILL 1557 7

(V) FOLLOWING BOARD APPROVAL , THE STATUS OF REAL 1
ESTATE TRANSACTIONS PUBLISHED IN E MARYLAND MARKETPLACE, LISTING 2
WHETHER THE REAL ESTATE TRANSACTION PUBLICATION WAS ON TIME OR LATE. 3

(3) THE DEPARTMENT SHALL PUBLISH ALL DATA REQUIRE D IN THE 4
ANNUAL REPORT UNDER THIS SUBSECTION ON THE DEPARTMENT’S WEBSITE OR ON 5
A PUBLICLY ACCESSIBLE ONLINE DASHBOARD FOR PUBLIC REVIEW. 6

(L) NOTHING IN THIS SECTION MAY BE CONSTRUED TO PROHIBIT A STATE 7
AGENCY FROM SUBMITTI NG OR LIMIT THE AUTH ORITY OF A STATE AGENCY TO 8
SUBMIT A REAL ESTATE TRANSACTION TO THE BOARD FOR APPROVAL. 9

10–305. 10

(a) Subject to subsections (b) and (c) of this section, any real or personal property 11
of the State or a unit of the State government may be sold, leased, transferred, exchanged, 12
granted, or otherwise disposed of: 13

(1) to any person, to the United States or any of its units, or to any unit of 14
the State government, for a consideration the Board decides is adequate; or 15

(2) to any county or municipal corporation in the State subject to any 16
conditions the Board imposes. 17

(b) (1) (i) Except as provided under subparagraph (ii) of this paragraph, 18
this subsection applies to the sale, transfer, grant, or exchange of: 19

1. real property identified under § 5–310(c)(1) of this article; 20
and 21

2. State–owned real or personal property, funded in 22
accordance with an appropriation act of the General Assembly, that has an appraised value 23
over $100,000. 24

(ii) This subsection does not apply to the following dispositions of 25
property identified in subparagraph (i) of this paragraph: 26

1. leasing the property; 27

2. the sale, transfer, grant, or exchange of a corrective or 28
access easement on the property; or 29

3. an exchange by the Department of Natural Resources 30
under § 1–109(e)(3) of the Natural Resources Article. 31

8 HOUSE BILL 1557

(2) The Board may not approve the sale, transfer, exchange, or grant of 1
property until: 2

(i) the Department of General Services or the Department of 3
Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article has submitted 4
to the Board two independent appraisals of the property that: 5

1. with regard to real property, con sider the value of any 6
restrictive covenant that may be placed on the property; and 7

2. may not be publicly disclosed if the property is to be sold 8
at auction; 9

(ii) the following information has been submitted, by electronic mail 10
or facsimile and by certified mail, to the Senate Budget and Taxation Committee, the House 11
Appropriations Committee, and, for property that meets both criteria of paragraph (1)(i) of 12
this subsection, the Legislative Policy Committee: 13

1. a description of the property; and 14

2. if applicable, any justification for not selling, transferring, 15
exchanging, or granting the property in a manner that generates the highest return for the 16
State; 17

(iii) 45 days have elapsed since: 18

1. the information required by item (ii) of this paragraph was 19
received by the appropriate committees; and 20

2. the Board declared the property surplus; and 21

(iv) except for property sold under paragraph (4) of this subsection, 22
for property that meets both criteria under paragraph (1)(i) of this subsection and for which 23
the Board intends to approve a fee simple sale, transfer, exchange, or grant, the General 24
Assembly has approved the proposed disposition as provided under paragraph (3) of this 25
subsection. 26

(3) (i) Within 45 days after receiving the information submitted under 27
paragraph (2) of this subsection, the Legislative Policy Committee shall: 28

1. review the information and the public record created by 29
the Department of Planning for the property; and 30

2. A. approve the proposed disposition of the surplus 31
property and refer the property back to the Board for final disposition; or 32

HOUSE BILL 1557 9

B. refer the proposed disposition of the property to the full 1
General Assembly and notify the Board of the referral. 2

(ii) If the Legislative Policy Committee fails to take any action under 3
subparagraph (i)2 of this paragraph within the specified time period, the proposed 4
disposition shall be deemed approved by the Committee. 5

(iii) 1. If the proposed disposition of the surplus property is 6
referred by the Legislative Policy Committee to the full General Assembly, the proposed 7
disposition may not be approved by the Board unless it is approved by the passage of 8
legislation during the next legislative session of the General Assembly. 9

2. In any legislation passed in accordance with 10
subsubparagraph 1 of this subparagraph, the General Assembly may approve the proposed 11
disposition with or without conditions. 12

(4) If the Board has declared the property surplus, the Board shall sell the 13
property to the federal government, a local government, or a unit of federal or local 14
government for $1.00, if: 15

(i) the government or unit has indicated its interest in acquiring the 16
land; and 17

(ii) a restrictive covenant is placed on the deed of trans fer, in 18
accordance with § 5 –906(e)(7) and (8) of the Natural Resources Article, that requires the 19
property to be maintained in a use that is consistent with its use at the time of transfer. 20

(5) Any revenues derived from the sale, transfer, exchange, or grant of 21
property identified under paragraph (1)(i)1 of this subsection shall be deposited in the 22
Advance Option and Purchase Fund under § 5–904(b) of the Natural Resources Article. 23

(6) If the Board has declared the property surplus, the Board shall don ate 24
or sell the property determined by the Department of Housing and Community 25
Development to be suitable for use or redevelopment as affordable housing in accordance 26
with a proposal developed under § 2 –203 of the Housing and Community Development 27
Article. 28

(c) (1) This subsection does not apply to: 29

(i) property that will be acquired with Program Open Space funds 30
under Title 5, Subtitle 9 of the Natural Resources Article; 31

(ii) property that will be acquired with Rural Legacy Program funds 32
under Title 5, Subtitle 9A of the Natural Resources Article; 33

(iii) property that will be acquired with Local Land Preservation 34
Program funds under Title 5, Subtitle 9B of the Natural Resources Article; 35
10 HOUSE BILL 1557

(iv) property that will be acquired with Community Parks and 1
Playgrounds Program funds under Title 5, Subtitle 9C of the Natural Resources Article; 2

(v) property that will be acquired with funds from the Heritage 3
Conservation Fund under Title 5, Subtitle 15 of the Natural Resources Article; 4

(vi) property that will be acquired with funds from the Forest and 5
Park Reserve Fund established under § 5–212 of the Natural Resources Article; 6

(vii) property that will be acquired with federal grant funds made 7
available to the Department of Natural Resour ces for open space, recreation, or 8
conservation purposes; 9

(viii) property that will be acquired by the Maryland Environmental 10
Trust; 11

(ix) a Maryland Agricultural Land Preservation Foundation 12
easement acquired under § 2–504 of the Agriculture Article; 13

(x) federally owned military property; 14

(xi) property that will be acquired by the Maryland Aviation 15
Administration; or 16

(xii) property that will be acquired by the Maryland Port 17
Administration. 18

(2) The Board may not approve the acquisition of real property with an 19
appraised value of at least $500,000 OR A NEW LEASE, OR THE EXECUTION OF A 20
RENEWAL OPTION OF 10 YEARS OR MORE, OF REAL PROPERTY THAT WILL BE USED 21
BY THE STATE THAT REQUIRES THE STATE TO MAKE PAYMENTS TOTALING AT LEAST 22
$500,000 $1,000,000 ANNUALLY unless the Board has provided to the Legislative Policy 23
Committee: 24

(i) a justification for the planned acquisition OR LEASE THAT 25
INCLUDES JUSTIFICATION FOR: 26

1. REAL ESTATE TERMS OF TIME OR COST IN EXCESS OF 27
ORDINARY AND REGULAR STATE CONTRACT TERMS; 28

2. RENT ESCALATION RATE S IN EXCESS OF MARKE T 29
RATES; 30

HOUSE BILL 1557 11

3. CONSTRUCTION COSTS A ND COSTS FOR ANY OTH ER 1
PART OF THE REAL EST ATE TRANSACTION , WITH CONSIDERATION F OR THE 2
REASONABLENESS AND COST COMPETITIVENESS OF EACH ITEM; 3

4. 3. REMOVAL OF ANY STAND ARD REAL ESTATE 4
PROVISIONS, INCLUDING THE RIGHT TO TERMINATE THE LEASE OR TRANSACTION; 5
AND 6

5. 4. WHY THE TRANSACTION IS IN THE BEST INTEREST OF 7
THE STATE; [and] 8

(II) A COST–BENEFIT ANALYSIS OF THE PLANNED ACQUISITION 9
OR LEASE THAT INCLUDES , WHEN APPLICABLE , COMPARING SIMILAR OR 10
COMPARABLE PROPERTIES AND PURCHASE OPTIO NS, INCLUDING A COMPARIS ON 11
OF LEASE OPTIONS WIT H PURCHASE OPTIONS , LEASE CONSOLIDATION OPTIONS, 12
AND IF RELEVANT , AN ANALYSIS OF STATE AGENCY PARKING NEEDS AND COSTS, 13
AND TAX CREDITS OR OTHER STATE BENEFITS GRANTED TO THE LANDLORD OR FOR 14
THE LOCATION OR REAL ESTATE TRANSACTION; 15

(III) IF APPLICABLE, A FULL OR SIGNIFICANT RENOVATION COST 16
ANALYSIS, DISTINCT FROM THE OV ERALL ACQUISITION OR LEASE COST–BENEFIT 17
ANALYSIS, INCLUDING: 18

1. A JUSTIFICATION FOR NONCOMPETITIVE 19
PROCUREMENT OF GOODS AND SERVICES; AND 20

2. A DEMONSTRATION THAT FULL FUNDING IS 21
AVAILABLE FOR ALL RENOVATIONS; 22

(IV) IF APPLICABLE , LANDLORD PAYMENT DOC UMENTATION, 23
INCLUDING: 24

1. TOTAL PAYMENTS MADE TO THE LANDLORD TO DATE; 25

2. PRIOR LEASE PAYMENTS; 26

3. TAX CREDITS OR OTHER STATE BENEFITS GRANTE D 27
TO THE LANDLORD; AND 28

4. TAX CREDITS OR OTHER STATE BENEFITS FOR TH E 29
LOCATION OR THE REAL ESTATE TRANSACTION; AND 30

12 HOUSE BILL 1557

[(ii)] (V) (IV) on request of the cochairs of the Legislative Policy 1
Committee made within 14 days after receiving the justification under [item] ITEMS (i) 2
THROUGH (IV) (III) of this paragraph: 3

1. [a cost–benefit analysis of the planned acquisition; and 4

2.] at least 45 days to review the information provided under 5
this paragraph and comment on the planned acquisition before the acquisition is approved; 6
AND 7

2. ANY OTHER INFORMATION THE LEGISLATIVE POLICY 8
COMMITTEE MAY NEED TO COMPLETE THEIR REVIEW. 9

(3) If the acquisition of real property with an appraised value of at least 10
$500,000 from the federal government would require the State to provide ongoing 11
maintenance of the property, the Board may not approve the acquisition until the Board 12
has provided to the Legislative Policy Committee: 13

(i) notice that the acquisition would require the State to provide 14
ongoing maintenance of the property; and 15

(ii) on request of the cochairs of the Legislative Policy Committee 16
within 14 days after receiving the notice provided under item (i) of this paragraph, a study 17
regarding the ongoing fiscal impact the acquisition would have on the State, including any 18
environmental mitigation that may be required. 19

(d) Except as otherwise provided in this section: 20

(1) if any real or personal property disposed of under this section is not 21
under the jurisdiction or control of any particular unit of the State government, the deed, 22
lease, or other evidence of conveyance of the real or personal property shall be executed by 23
the Board; and 24

(2) if any real or personal property disposed of under this section is under 25
the jurisdiction or control of a unit of the State government, the deed, lease, or other 26
evidence of conveyance of the real or personal property shall be executed by the highest 27
official of the unit and by the Board. 28

(e) (1) Whenever any unit of the State government leases any State –owned 29
property under its jurisdiction and control to any Sta te employee, agent, or servant, or to 30
any other individual in State service, for the purpose of permitting the individual to 31
maintain a residence on or in the property, the lease shall be: 32

(i) executed by the unit; and 33

(ii) approved by the Secretary of General Services. 34
HOUSE BILL 1557 13

(2) The lease is not valid unless the Secretary of General Services approves 1
it. 2

(3) Whenever any unit of the State government leases any State –owned 3
property under its jurisdiction and control to any lessee, the lease shall include a provision 4
which prohibits the lessee from assigning or subleasing that property without the prior 5
approval of the Board of Public Works. 6

(4) (i) Whenever the State Highway Administration leases any 7
State–owned property under its jurisdiction and control to any person, the Administrator 8
of the State Highway Administration may execute the lease if: 9

1. the lease is entered into on a 30–day renewable basis; and 10

2. the duration of the tenancy does not exceed 1 year. 11

(ii) At least twice each year, the Administrator of the State Highway 12
Administration shall submit a report of the leases executed under the authority granted in 13
subparagraph (i) of this paragraph to the Board of Public Works. 14

(5) (i) Whenever the Department of Natural Re sources leases any 15
State–owned property under its jurisdiction and control to any lessee, the lease shall 16
include a provision that requires the lessee to: 17

1. maintain unobstructed access to trail heads by trail users 18
and first responders; and 19

2. ensure that the trail heads remain free of obstructions at 20
all times. 21

(ii) At least once each year, the Secretary of Natural Resources shall 22
submit a report of all leases executed by the Department of Natural Resources to the 23
Department of General Services. 24

(f) (1) On the sale, lease, transfer, exchange, or other disposition of any real 25
or personal property owned or controlled by the State Retirement and Pension System or 26
the State of Maryland for the use of the Board of Trustees of the State Retireme nt and 27
Pension System, any conveyancing document shall be executed in the manner provided in 28
Division II of the State Personnel and Pensions Article. 29

(2) Any sale, lease, transfer, exchange or other disposition of any real or 30
personal property owned or controlled by the State Retirement and Pension System or the 31
State of Maryland for the use of the Board of Trustees of the State Retirement and Pension 32
System by a conveyancing document executed by or for the Board of Trustees of the State 33
Retirement and P ension System before October 1, 1994 in the manner provided under 34
former Article 73B is ratified and confirmed. 35
14 HOUSE BILL 1557

(g) All conveyances under this section shall be made in the name of the State of 1
Maryland, acting through the executing authority provided for in this section. 2

(h) This section does not apply to any lease or other temporary transfer, grant, or 3
disposition of State real or personal property in connection with a procurement made 4
subject to § 11–202(3) of this article. 5

(i) The Department of Bud get and Management and Department of General 6
Services, with the approval of the Board, shall adopt regulations in accordance with Title 7
10, Subtitle 1 of the State Government Article to implement the provisions of this section. 8

10–305. 9

(J) THE BOARD MAY NOT APPROVE THE SALE , TRANSFER, EXCHANGE, OR 10
GRANT OF A PROPERTY LOCATED BETWEEN THE EAST 21ST AND EAST 22ND BLOCKS 11
OF GUILFORD AVENUE IN BALTIMORE UNLESS THE DEPARTMENT OF GENERAL 12
SERVICES DEMONSTRATES TO THE BOARD THAT: 13

(1) THE DEPARTMENT ENGAGED TH E COMMUNITY AND RELEVA NT 14
STAKEHOLDERS WHEN MAKING THE DECISION TO SELL, TRANSFER, EXCHANGE, OR 15
GRANT THE PROPERTY; AND 16

(2) IF PRACTICABLE , THE DEPARTMENT PRIORITIZE D THE 17
COMMUNITY’S PREFERRED OUTCOME. 18

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
1, 2026. 20

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.