HB 1003
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 1003 (Delegate Lierman)
Appropriations and Health and Education, Health, and Environmental Affairs
Government Operations
States of Emergency - Emergency Procurement and Budget Amendments -
Notice and Authorization
This bill requires the Governor or the head of a unit, when authorizing an emergency
procurement during a declared state of emergency, to provide specified notice to the
Legislative Policy Committee (LPC) within 72 hours of the execution of the contract or the
expenditure of funds. LPC may request that the Office of Legislative Audits (OLA)
conduct an audit of an emergency procurement contract authorized during a declared state
of emergency. The bill also requires the Governor to provide specified notice to LPC and,
if applicable, the Administrative, Executive, and Legislative Review (AELR) Committee,
within 72 hours after suspending the effect of a statute or rule or regulation during a
declared state of emergency as authorized under State law. The Governor may not suspend
the bill’s provisions under any law that grants the Governor authority to suspend the effect
of any statute during a state of emergency. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: The operations of multiple State agencies are affected, potentially
significantly, as early as FY 2022. It is assumed, however, that State finances are not
materially affected, as discussed below.
Local Effect: None.
Small Business Effect: None.
 Analysis
Bill Summary: Notice provided to LPC of an emergency procurement authorized during
a state of emergency must include (1) the name, business address, and, if applicable,
website address of the vendor and the dollar value of the contract; (2) a description of how
the funds are to be used; and (3) an explanation of the reasons the procurement is necessary
to prepare for or address the emergency. If requested by LPC, the Governor or head of the
unit must provide a copy of the contract to LPC.
Within 72 hours after suspending the effect of a statute or rule or regulation, the Governor
must provide written notice to LPC that (1) identifies the statute or rule or regulation being
suspended and (2) explains the reasons that suspending the statute or rule or regulation is
necessary to address the emergency. When the Governor suspends the effect of a
regulation, the notice must also be provided to the AELR Committee.
Current Law:
Maryland Emergency Management Agency Act
Title 14, Subtitle 1 of the Public Safety Article (Maryland Emergency Management
Agency Act) requires the Governor to declare a state of emergency by executive order or
proclamation if he or she finds that an emergency has developed or is impending due to
any cause. The state of emergency continues until (1) the Governor finds that the threat or
danger has passed or the emergency has been dealt with to the extent that emergency
conditions no longer exist and (2) terminates the state of emergency by executive order or
proclamation. A state of emergency may not continue for longer than 30 days unless
renewed by the Governor. The General Assembly may terminate a state of emergency at
any time by joint resolution.
After declaring a state of emergency, the Governor may take specified actions if he or she
finds them necessary in order to protect the public health, welfare, or safety. Among other
things, the Governor may suspend the effect of any statute or rule or regulation of an agency
of the State or a political subdivision. Similarly, if a state of emergency is declared in
another state, and the Governor receives a written request for assistance from the executive
authority of that state, the Governor may, among other things, suspend the effect of any
statute or rule or regulation of an agency of the State or, with the consent of the appropriate
executive authority, of a political subdivision, if the Governor finds that the suspension is
necessary to aid the other state with its emergency management functions.
Section 14-106 of the Public Safety Article specifies other various powers of the Governor
in performing his or her duties under the Act. Among other things, the Governor may issue
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orders, rules, and regulations necessary and desirable to carry out the Act and may
authorize the procurement of supplies and equipment to prepare for an emergency.
Governor’s Emergency Powers
Under Title 14, Subtitle 3 of the Public Safety Article (Governor’s Emergency Powers),
the General Assembly recognizes the Governor’s broad authority in the exercise of the
police power of the State to provide adequate control over persons and conditions during
impending or actual public emergencies. The subtitle’s provisions must be broadly
construed to carry out its purpose.
Section 14-303 of the Public Safety Article authorizes the Governor to proclaim a state of
emergency and designate the emergency area during a public emergency in the State. After
proclaiming a state of emergency, and in accordance with specified public notice
requirements, the Governor may promulgate reasonable orders, rules, or regulations that
he or she considers necessary to protect life and property or calculated effectively to control
and terminate the public emergency in the emergency area, as specified. An order, rule, or
regulation promulgated under this provision (1) takes effect from the time and in the
manner specified in the order, rule, or regulation; (2) may be amended or rescinded, in the
same manner as the original order, by the Governor at any time during the state of
emergency; and (3) terminates when the Governor declares that the state of emergency no
longer exists.
Emergency Procurement
For procurements of at least $50,000, and subject to specified exceptions, a procurement
officer may, with the approval of the head of the unit, make an emergency procurement to
avoid or mitigate serious damage to public health, safety, or welfare. Emergency
procurements may use any method considered to be appropriate; however, the procurement
officer must obtain as much competition as possible under the circumstances and limit the
emergency procurement to the procurement of only those items, both in type and quantity,
necessary to avoid or mitigate serious damage to public health, safety, or welfare.
Emergency procurements are not subject to prior approval by the Board of Public Works
(BPW), but agencies must notify BPW of each emergency procurement within 45 days of
contract award. The notification must include a justification for the use of the emergency
procurement method.
COVID-19 Emergency
In March 2020, the Governor declared a state of emergency and the existence of a
catastrophic health emergency to deploy resources and implement the emergency powers
of the Governor to control and prevent the spread of COVID-19. The declaration, which
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has been renewed multiple times (and remains in effect as of the publication of this revised
fiscal and policy note), initiated a series of executive actions, including moving the
Maryland Emergency Management Agency to its highest activation level, activating the
National Guard, and closing all public schools.
For more information regarding Maryland’s response to COVID-19, see the Appendix –
COVID-19.
State Fiscal Effect: The bill requires the Governor or the head of a unit, when authorizing
an emergency procurement during a declared state of emergency, to provide specified
notice to LPC within 72 hours of the execution of the contract or the expenditure of funds.
It is assumed that State agencies can meet the bill’s notice requirement with existing
budgeted resources, as the requirement only applies during declared states of emergency.
Most states of emergency are episodic and brief; the current prolonged state of emergency
is an anomaly.
However, to the extent that an ongoing emergency requires a significant number of
emergency procurements, the requirement may result in significant operational disruptions
for State procurement offices that may affect their ability to conduct ongoing emergency
procurements. Additionally, State agency operations may be affected to the extent that
emergency procurement contracts executed during a state of emergency are subject to audit
by OLA, especially if those audits are conducted during an ongoing emergency.
Nonetheless, additional permanent staff are not warranted to address the bill’s
requirements; as noted above, the bill applies only during declared states of emergency.
Moreover, in most cases, contractual staff cannot be hired and trained sufficiently quickly
to assist agencies in responding to a declared state of emergency.
It is assumed that, in most cases, LPC will request audits of only a limited number of
affected contracts and that OLA, therefore, can conduct audits of emergency procurement
contracts as requested by LPC with existing budgeted resources. However, in the event of
a prolonged emergency that results in a significant number of emergency procurements
(like the current COVID-19 emergency), if LPC requests that OLA audit a significant
number of procurement contracts, OLA may need to temporarily reallocate resources from
other, regular audits in order to fulfill such requests.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 780 (Senator Pinsky) - Education, Health, and Environmental
Affairs and Budget and Taxation.
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Information Source(s): Governor’s Office; Department of General Services; Maryland
Department of Health; Department of Human Services; Department of Public Safety and
Correctional Services; Board of Public Works; Maryland Department of Transportation;
Department of Budget and Management; Department of Legislative Services
Fiscal Note History: First Reader - February 23, 2021
rh/mcr Third Reader - April 7, 2021
Revised - Amendment(s) - April 7, 2021
Revised - Updated Information - April 7, 2021
Revised - Updated Information - May 4, 2021
Analysis by: Elizabeth J. Allison Direct Inquiries to:
(410) 946-5510
(301) 970-5510
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 Appendix – COVID-19
In December 2019, a novel strain of coronavirus known as severe acute respiratory
syndrome coronavirus 2 emerged in Wuhan, China. Coronavirus disease (COVID-19) is
an infectious disease caused by this virus. As the number of cases spread globally by
March 2020, the World Health Organization declared COVID-19 a pandemic.
Testing, Cases, and Deaths in Maryland
Maryland’s first three confirmed cases of COVID-19 were recorded on March 6, 2020,
with the first two deaths occurring March 16, 2020. As of January 27, 2021, Maryland
reported a total of 346,559 confirmed cases, 31,468 individuals ever hospitalized, and
6,821 confirmed deaths. The jurisdictions with the highest number of cases have been
Prince George’s, Montgomery, and Baltimore counties and Baltimore City. Statewide,
8.4% of cases (28,954) and 45.9% of COVID-19 deaths (3,130) occurred in congregate
living settings (i.e., nursing homes, assisted living, and group homes). Updated data on
COVID-19 in Maryland is available on the Maryland Department of Health (MDH)
dashboard: https://coronavirus.maryland.gov.
Vaccines
In December 2020, the U.S. Food and Drug Administration approved both
Pfizer-BioNTech and Moderna’s COVID-19 vaccines for emergency use. Due to limited
quantities, distribution began with priority groups as determined by states. Maryland began
distribution in January 2021 with Phase 1A, which includes health care workers, residents
and staff of nursing homes, first responders, public safety, corrections staff, and front-line
Judiciary staff. Phase 1B began January 18, 2021, and includes residents of assisted living
facilities and other congregate settings, adults age 75 and older, staff of K-12 schools and
child care facilities, high-risk incarcerated individuals, and those involved in continuity of
government. As of January 27, 2020, the State is in Phase 1C, which includes adults
aged 65 and older, additional public safety and public health workers, and essential workers
in food/agriculture, manufacturing, public transit, and the postal service. Phase 2 will
include individuals aged 16 to 64 at increased risk of severe illness, incarcerated adults,
and remaining essential workers. Phase 3 will include the general public. As of
January 27, 2021, 852,625 doses of the vaccine have been distributed, and 419,579 doses
have been administered (363,282 first doses and 56,297 second doses). Updated data is
available on the MDH dashboard: coronavirus.maryland.gov/#Vaccine.
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Declaration of a State of Emergency and Initial Executive Orders
On March 5, 2020, Governor Lawrence J. Hogan, Jr. declared a state of emergency and the
existence of a catastrophic health emergency to deploy resources and implement the
emergency powers of the Governor to control and prevent the spread of COVID-19. The
declaration, which has been renewed several times (most recently January 21, 2021),
initiated a series of executive actions, including moving the Maryland Emergency
Management Agency to its highest activation level, activating the National Guard, and
closing all public schools. The Governor then ordered the closure of in-house dining at bars
and restaurants and banned mass gatherings of more than 50 people. This action was
followed by a more extensive stay-at-home order on March 30, 2020, requiring closure of
all nonessential businesses. This order remained in effect until May 15, 2020.
Emergency Legislation
Chapters 13 and 14 of 2020 (the COVID-19 Public Health Emergency Protection Act of
2020) authorized the Governor, for the duration of the emergency, to take actions relating
to health insurance, Medicaid, retailer profits, employer actions, and personnel at State
health care facilities as a result of the state of emergency and catastrophic health
emergency. The Acts also authorize the Secretary of Labor to determine certain individuals
eligible for unemployment insurance (UI) benefits due to COVID-19. The Acts terminate
April 30, 2021.
Subsequent Executive Orders and Advisories
Since March 2020, the Governor has issued numerous executive orders relating to
COVID-19, including (1) closing Maryland ports and harbors to passenger vessels;
(2) expanding child care access; (3) expanding the scope of practice for health care
practitioners, activating the Maryland Responds Medical Reserve Corps, controlling and
restricting elective medical procedures, closing adult day care centers, and providing
additional health care regulatory flexibility; (4) augmenting emergency medical services;
(5) prohibiting price gouging; (6) fast tracking lab testing processes; (7) authorizing
expanded telehealth services; (8) delegating authority to local health officials to control
and close unsafe facilities; (9) extending certain licenses, permits, and registrations;
(10) authorizing remote notarizations; (11) prohibiting evictions of tenants suffering
substantial loss of income due to COVID-19, additionally prohibiting certain
repossessions, restricting initiation of residential mortgage foreclosures, and prohibiting
commercial evictions; (12) regulating certain businesses and facilities and generally
requiring the use of face coverings; (13) establishing alternate health care sites and
authorizing regulation of patient care space in health care facilities; and (14) implementing
alterative correctional detention and supervision.
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Federal Legislation Regarding COVID-19
Five federal emergency bills have been enacted to address the COVID-19 pandemic:
 the Coronavirus Preparedness and Response Supplemental Appropriations
Act, which provided $8.3 billion in emergency funds for federal agencies (including
$950 million through the U.S. Centers for Disease Control and Prevention for state
and local response);
 the Families First Coronavirus Response Act, which addressed emergency family
and medical leave and paid sick leave, specified insurance coverage of COVID-19
testing, and provided additional funding for nutrition assistance programs and
unemployment benefits;
 the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which
included a Coronavirus Relief Fund for state and local governments; an Education
Stabilization Fund for states, school districts, and institutions of higher education; a
Disaster Relief Fund for state and local governments; additional funding for public
health agencies to prevent, prepare for, and respond to COVID-19; funding for
transit systems; an expansion and extension of eligibility for UI benefits, and
additional temporary unemployment compensation of $600 per week; $349 billion
for the establishment of the Paycheck Protection Program (PPP); a $500 billion
lending fund for businesses, cities, and states; and Economic Impact Payments to
American households of up to $1,200 per adult and $500 per child;
 the Paycheck Protection Program and Health Care Enhancement Act, which
provided an additional $310 billion to PPP, $75 billion for health care providers,
$60 billion for small business disaster loans, and $25 billion for increased testing
capacity; and
 the Consolidated Appropriations Act, 2021, and Other Extensions Act, which
included $908 billion in relief, including another $284 billion for PPP, $82 billion
for schools, $45 billion for transportation, $25 billion in emergency assistance to
renters, $20 billion for vaccine distribution, $13 billion for a major expansion in
Supplemental Nutrition Assistance benefits, $13 billion fo