SB 326
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled - Revised
Senate Bill 326 (Senator Hayes)
Education, Health, and Environmental Affairs Health and Government Operations
Baltimore City Community College - Procurement Authority
This bill generally exempts Baltimore City Community College (BCCC) from most
provisions of State procurement law and from State oversight of its (1) information
technology (IT) policies, standards, and procurement and (2) capital improvement and
service contracts valued at $500,000 or less. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: BCCC likely requires additional personnel over time to carry out the greater
responsibilities with regard to procurement, capital improvement, and major IT projects
that it assumes under the bill, as discussed below. BCCC expenditures for capital
construction may decrease somewhat by virtue of being exempt from the State’s prevailing
wage requirements for public works projects. No effect on revenues.
Local Effect: None.
Small Business Effect: Minimal.
Analysis
Bill Summary: Subject to the review and approval of the Board of Public Works (BPW)
and the Joint Committee on Administrative, Executive, and Legislative Review, the
BCCC board of trustees must develop policies and procedures governing procurement by
the college, including those governing conflict of interest issues. The policies and
procedures must promote the purposes of State procurement law. The board of trustees
must also develop an IT plan that includes IT policies and standards that are functionally
compatible with the statewide IT master plan and BCCC’s strategic plan.
BCCC contracts that are exempt from State oversight are subject to the following
requirements:
contracts with a value of $100,000 or less must be reviewed and approved by the
president of BCCC or the president’s designee; and
contracts with a value of more than $100,000 but no more than $500,000 must be
approved by the BCCC board of trustees.
BCCC’s capital improvement and service contracts valued at more than $500,000 are still
subject to review and approval by BPW.
Specified provisions in State procurement law that also apply to other State higher
education institutions also apply to BCCC, most notably provisions governing the State’s
Minority Business Enterprise program.
The Maryland State Board of Contract Appeals’ authority over contract claims related to
BCCC contracts terminates for any contracts awarded on or after July 1, 2021, but the
BCCC board of trustees can elect to restore its authority, subject to approval by BPW.
Current Law:
Procurement Exemptions
State law exempts the University System of Maryland (USM), Morgan State University
(MSU), and St. Mary’s College of Maryland (SMCM) from the same provisions of
procurement law that BCCC is exempt from under the bill, with some variations. Most
notably, service and capital improvement contracts for those institutions require
BPW review and approval only if their value exceeds $1.0 million, rather than $500,000
for BCCC under the bill. For most other Executive Branch agencies, BPW approval is
required for any contract valued at more than $200,000 (except for road and bridge
projects).
Consistent with the bill’s provisions for BCCC, the following provisions in procurement
law still apply to USM, MSU, and SMCM:
anti-collusion provisions;
prohibitions against falsification and concealment of material facts;
a required nondiscrimination contract clause;
retainage requirements;
minority business enterprise participation;
procurement contract administration requirements;
SB 326/ Page 2
timing of payment and dispute resolution provisions; and
suspension and debarment of contractors.
USM, MSU, and SMCM are exempt from the State’s prevailing wage requirements for
public works projects; the bill also makes BCCC exempt from prevailing wage
requirements.
Capital Project Oversight
DGS supervises any engineering question or matter concerning a public improvement. Any
contract, plan, or specification for a public improvement must be submitted to and
approved by DGS. However, some State agencies, including USM, MSU, and SMCM, are
exempt from general oversight by DGS. For those institutions, DGS must, at BPW’s
request, provide advice on any contract that exceeds $500,000 if the contract involves an
engineering question.
Information Technology Oversight
The Department of Information Technology (DoIT) manages and oversees the purchase,
lease, and rental of IT by Executive Branch agencies. Agencies must develop their own
IT policies, standards, and plans that must be consistent with the State’s IT master plan
developed by DoIT. Most Executive Branch agencies must also remit money received from
(1) the sale, lease, or exchange of communication sites or frequencies for IT purposes and
(2) an IT agreement involving resource sharing to the Major Information Technology
Development Project Fund (MITDPF). However, USM, MSU, and SMCM, in addition to
a small number of other agencies, are exempt from DoIT’s oversight of IT procurement
and planning and from participation in MITDPF; Chapter 751 of 2019 exempted BCCC
from having to remit resource sharing revenue to MITDPF but retained DoIT oversight of
its IT procurements.
State Expenditures: BCCC assumes greater responsibilities for its procurement and
capital improvement projects under the bill. Currently, DGS manages BCCC procurements
valued at more than $50,000; BCCC previously reported that it had several dozen active
contracts that exceeded $50,000 in value during fiscal 2018. DGS also provides project
management, design review, contract management, and other related services for capital
improvement projects because DGS maintains a full staff of experts in these fields. Under
the bill, BCCC assumes responsibility for those tasks for all service and capital
improvement contracts valued at $500,000 or less. BCCC advises that the autonomy
granted by the bill creates operational efficiencies for the college and that it can assume the
new responsibilities with existing resources. Nevertheless, the Department of Legislative
Services believes that BCCC likely ultimately requires additional procurement and
technical staff to carry out these responsibilities, but a reliable estimate is not feasible.
SB 326/ Page 3
Additional Information
Prior Introductions: SB 159 of 2020, a similar bill, passed the Senate and was referred
to the House Health and Government Operations Committee, but no further action was
taken on the bill. Its cross file, HB 207, was heard by the House Health and Government
Operations Committee and was withdrawn. SB 254 of 2019, a similar bill, received an
unfavorable report from the Senate Education, Health, and Environmental Affairs
Committee.
Designated Cross File: HB 770 (Delegate McIntosh) - Health and Government
Operations.
Information Source(s): Baltimore City Community College; Department of Information
Technology; State Board of Contract Appeals; Department of General Services; Board of
Public Works; Department of Legislative Services
Fiscal Note History: First Reader - February 2, 2021
an/ljm Third Reader - February 19, 2021
Enrolled - April 30, 2021
Revised - Amendment(s) - April 30, 2021
Revised - Updated Information - April 30, 2021
Analysis by: Michael C. Rubenstein Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 326/ Page 4
Statutes affected: Text - First - Baltimore City Community College - Procurement Authority: 16-505 Education, 16-505.3 Education, 4-401 State Finance and Procurement, 4-402 State Finance and Procurement, 4-406 State Finance and Procurement, 11-203 State Finance and Procurement, 2-021 State Finance and Procurement, 12-202 State Finance and Procurement
Text - Third - Baltimore City Community College - Procurement Authority: 16-505 Education, 16-505.3 Education, 4-401 State Finance and Procurement, 4-402 State Finance and Procurement, 4-406 State Finance and Procurement, 11-203 State Finance and Procurement, 2-021 State Finance and Procurement, 12-202 State Finance and Procurement
Text - Enrolled - Baltimore City Community College - Procurement Authority: 16-505 State Finance and Procurement, 16-505.3 State Finance and Procurement, 4-401 State Finance and Procurement, 4-402 State Finance and Procurement, 4-406 State Finance and Procurement, 11-203 State Finance and Procurement, 2-021 State Finance and Procurement, 12-202 State Finance and Procurement