Bill Summary – FastDemocracy

HB 871
                      Department of Legislative Services
                              Maryland General Assembly
                                    2021 Session
                           FISCAL AND POLICY NOTE
                                Enrolled - Revised
House Bill 871              (Delegate Charles)
Health and Government Operations       Education, Health, and Environmental Affairs
  Consolidation of the Procurement Improvement Council and the Council for the
             Procurement of Health, Educational, and Social Services
This bill merges the Council for the Procurement of Health, Educational, and Social
Services (CHES) with the Procurement Improvement Council (PIC) and modifies
PIC membership. It also expands PIC’s authority to include providing a forum for the
discussion of the use of eMaryland Marketplace (eMM) and compliance with a requirement
that State and local entities publish notices of procurements or notices of procurement
awards on eMM, and it requires PIC to report on these topics. The bill expresses legislative
intent that a business, or representative of a business, that participates in PIC will not be
favored in, disfavored in, or disqualified from State procurement based on participation
with PIC. The bill takes effect July 1, 2021.
                                    Fiscal Summary
State Effect: The bill is generally procedural in nature and does not directly affect
governmental finances, but it may create some operational efficiencies. The Department of
General Services (DGS), as the staffing agency for PIC, can complete the required report
with existing resources.
Local Effect: None.
Small Business Effect: Minimal.
                                        Analysis
Bill Summary: By December 31, 2022, PIC must submit a report to specified committees
of the General Assembly that provides:
      guidelines on identifying entities required to publish notices of procurement
       solicitations and awards on eMM;
      guidelines on how to identify entities that do not publish the required notices and
       the reasons why they do not; and
      recommendations on strategies and enforcement mechanisms to improve
       compliance with the notice requirements, including any necessary legislation to
       authorize or implement the strategies and enforcement mechanisms.
Current Law:
Procurement Councils
Chapter 590 of 2017 renamed the Procurement Advisory Council as PIC and designated
the State’s Chief Procurement Officer as the chair of PIC. PIC’s responsibilities generally
mirror those of the former Procurement Advisory Council, including ensuring that the
State’s procurement system uses the most advanced procurement methods and providing a
forum for the discussion of specific procurement issues and problems that arise. Its
responsibilities were expanded to include advising the General Assembly on proposed
legislation to enhance the efficiency and transparency of State procurement.
CHES was created by Chapters 212 and 213 of 2012 based on the recommendations of the
Task Force to Study the Procurement of Health, Education, and Social Services by State
Agencies. The council’s primary purposes are to (1) advise the Board of Public Works
(BPW) on specific steps necessary to implement the task force’s recommendations and
(2) monitor and report to BPW on progress in implementing the recommendations.
Chapter 590 of 2017 made the State’s Chief Procurement Office the chair of the council (it
had previously been BPW’s Procurement Advisor).
eMaryland Marketplace
eMM is the Internet-based procurement system managed by DGS. For State procurements
expected to be valued at more than $50,000, procurement officers must publish notice of
invitations for bids and requests for proposals on eMM at least 20 days before bid or
proposal opening; for a contract award of more than $50,000, they must also publish notice
of the award on eMM.
HB 871/ Page 2
In addition to State agencies, statute requires other entities to use eMM to publish notices
of procurements or notices of contract awards valued at more than $50,000. These other
entities include counties, municipalities, bicounty or multicounty governmental agencies,
special tax and utility districts, public institutions of higher education, public schools, and
other entities otherwise exempt from State procurement law. For these entities, failure to
publish a solicitation or contract award on eMM is not grounds to challenge or appeal the
procurement award or the process through which a procurement was conducted.
                                 Additional Information
Prior Introductions: None.
Designated Cross File: SB 564 (Senator Griffith) - Education, Health, and Environmental
Affairs.
Information Source(s): Department of General Services; Department of Legislative
Services
Fiscal Note History:       First Reader - February 16, 2021
rh/ljm                     Third Reader - March 18, 2021
                           Enrolled - April 27, 2021
                                  Revised - Amendment(s) - April 27, 2021
Analysis by: Michael C. Rubenstein                       Direct Inquiries to:
                                                         (410) 946-5510
                                                         (301) 970-5510
HB 871/ Page 3
Statutes affected: 
Text - First - Consolidation of the Procurement Improvement Council and the Council for the Procurement of Health, Educational, and Social Services: 12-105 State Finance and Procurement
Text - Third - Consolidation of the Procurement Improvement Council and the Council for the Procurement of Health, Educational, and Social Services: 12-105 State Finance and Procurement
Text - Enrolled - Consolidation of the Procurement Improvement Council and the Council for the Procurement of Health, Educational, and Social Services: 12-105 State Finance and Procurement, 2-022 State Finance and Procurement, 17-502 State Finance and Procurement