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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1585*
HOUSE BILL 1585
C8, S1 6lr3600
CF SB 787
By: Delegate Kerr
Introduced and read first time: February 13, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Maryland Economic Development Corporation – Major Information Technology 2
Development Projects – Project Management 3
FOR the purpose of authorizing the Maryland Economic Development Corporation to 4
participate on the project ma nagement team for a major information technology 5
development project by working with certain entities on certain tasks; requiring, on 6
or before a certain date, the Corporation and the Secretary of Information 7
Technology to identify a certain project for wh ich the Corporation will serve as the 8
primary project manager; requiring the Corporation, on or before a certain date, to 9
evaluate the use of alternative financing for certain projects; and generally relating 10
to the management of major information technology development projects. 11
BY repealing and reenacting, with amendments, 12
Article – Economic Development 13
Section 10–116 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – State Finance and Procurement 18
Section 3.5–301(k) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Economic Development 24
10–116. 25
2 HOUSE BILL 1585
(a) The Corporation may: 1
(1) acquire, improve, develop, manage, market, maintain, lease as lessor or 2
as lessee, and operate a project in the State; 3
(2) PARTICIPATE ON THE P ROJECT MANAGEMENT TE AM FOR A 4
MAJOR INFORMATION TE CHNOLOGY DEVELOPMENT PROJECT , AS DEFINED IN § 5
3.5–301 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, BY WORKING WITH 6
THE DEPARTMENT OF INFORMATION TECHNOLOGY, STATE AGENCIES, OR VENDORS 7
ON: 8
(I) DEFINING THE SCOPE O F THE MAJOR INFORMAT ION 9
TECHNOLOGY DEVELOPMENT PROJECT; 10
(II) MANAGING THE BUDGET AND SCHEDULE FOR THE MAJOR 11
INFORMATION TECHNOLOGY DEVELOPMENT PROJECT; 12
(III) IDENTIFYING AND MITIGATING RISKS; 13
(IV) PROVIDING TRANSPARENCY ON THE STATUS OF THE MAJOR 14
INFORMATION TECHNOLOGY DEVELOPMENT PROJECT; AND 15
(V) SUCCESSFUL DELIVERY AND IMPLEMENTATION O F THE 16
MAJOR INFORMATION TECHNOLOGY DEVELOPMENT PROJECT; 17
(3) acquire, directly or through a person or gover nmental unit, by 18
purchase, gift, or devise, property, franchises, and other interests in land, including land 19
lying under water and riparian rights, located in or outside the State as necessary or 20
convenient to improve or operate a project, on terms and at prices that the Corporation 21
considers reasonable; 22
[(3)] (4) if approved by resolution by at least a two–thirds majority of the 23
legislative body of each governmental unit in which the property is located, acquire real 24
property or rights or easements in real property for a project by condemnation for public 25
use in accordance with applicable law; and 26
[(4)] (5) make loans to a person to: 27
(i) finance all or a part of the acquisition or improvement of a 28
project; and 29
(ii) refund outstanding bonds, mortgages, advances, loans, or other 30
obligations of the person to finance all or part of the acquisition or improvement of a project. 31
HOUSE BILL 1585 3
(b) The power of condemnation of the Corporation under subsection [(a)(3)] 1
(A)(4) of this section may not exceed the power of condemnation of the governmental unit 2
in which the property is located. 3
Article – State Finance and Procurement 4
3.5–301. 5
(k) (1) “Major information technology development project” means any 6
information technology development project that meets on e or more of the following 7
criteria: 8
(i) except as provided in paragraph (2) of this subsection, the 9
estimated total cost of development equals or exceeds $5,000,000; 10
(ii) the project is undertaken to support a critical business function 11
associated with the public health, education, safety, or financial well–being of the residents 12
of Maryland; or 13
(iii) the Secretary determines that the project requires the special 14
attention and consideration given to a major information technology development pr oject 15
due to: 16
1. the significance of the project’s potential benefits or risks; 17
2. the impact of the project on the public or local 18
governments; 19
3. the public visibility of the project; or 20
4. other reasons as determined by the Secretary. 21
(2) “Major information technology development project” does not include: 22
(i) technology that is reoccurring, standard operating technology as 23
determined by the Secretary and submitted to the Legislative Policy Committee for a 24
30–day review and comment period; or 25
(ii) a project with an estimated total cost of development that is: 26
1. less than $5,000,000 and is funded with money set aside 27
for expedited projects in the Fund; or 28
2. more than $5,000,000 and is funded with the money set 29
aside for expedited projects in the Fund if the Secretary determines that: 30
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A. the unit of State government has sufficient 1
implementation resources, including human capital, subject matter expertise, and 2
technological infrastructure, or has the means to obtain these resources before project 3
initiation; 4
B. there is no sufficient alternative within the State’s 5
information technology inventory; and 6
C. the project will result in a comprehensive solution 7
designed to meet a cohesive set of business and technological objectives. 8
SECTION 2. AND BE IT FURTHER ENACTED, That: 9
(a) On a pilot basis, the Maryland Economic Development Corporation and the 10
Secretary of Information Technology shall identify a major information technology 11
development project, as defined in § 3.5–301 of the State Finance and Procurement Article, 12
for which the Corporation will serve as the primary project manager on behalf of the unit 13
of State government as a demonstration project. 14
(b) On or before July 1, 2026, the Corporatio n shall report to the General 15
Assembly, in accordance with § 2 –1257 of the State Government Article, on the 16
identification of the project, including appropriate details about the project. 17
(c) On or before October 1, 2026, and quarterly thereafter until p roject 18
completion, the Corporation shall report to the Secretary of Information Technology and, 19
in accordance with § 2–1257 of the State Government Article, the General Assembly on the 20
progress of the identified project, including: 21
(1) a summary of any problems or issues with the demonstration project 22
that the Corporation identifies; 23
(2) a review of the initial information technology project request and 24
whether the estimates made are reasonable, supported, and in alignment with the status 25
of the project; 26
(3) documentation of changes to project scope, schedule, or costs, and the 27
justification for and reasonableness of those changes; 28
(4) documentation of the qualifications of the employees and vendors; and 29
(5) identification of potential problems that may develop with the project. 30
SECTION 3. AND BE IT FURTHER ENACTED, That: 31
(a) The Maryland Economic Development Corporation shall evaluate the 32
feasibility of using alternative financing mechanisms for major information technology 33
development projects, as defined in § 3.5–301 of the State Finance and Procurement Article. 34
HOUSE BILL 1585 5
(b) The evaluation required under subsection (a) of this section shall include 1
funding mechanisms used in other states that could be used in Maryland. 2
(c) On or before December 1, 2026, the Corporation shall submit a report to the 3
Secretary of Information Technology and, in accordance with § 2 –1257 of the State 4
Government Article, the General Assembly that summarizes the work of the Corporation 5
in conducting the evaluati on and any recommendations for financing major information 6
technology development projects in the State. 7
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2026. 9