SB 859

WES MOORE, Governor  Ch. 367
Chapter 367
  (Senate Bill 859)
AN ACT concerning
    State Procurement and Personnel – Liquidated Damages Documentation
  Requirements and State Fiscal Leadership Capacity
FOR the purpose of requiring units of State government to provide certain documentation
     to the Board of Public Works and the Joint Audit and Evaluation Committee if the
     unit decides not to pursue certain liquidated damages; authorizing the Secretary of
     Budget and Management to grant a certain exemption to the State pay plan under
     certain circumstances set the pay scale for certain chief financial officer positions in
     order to assist with recruitment and retention; requiring certain appointing
     authorities to select the Secretary to establish certain minimum qualifications for
     chief financial officers that meet consider certain requirements; qualifications;
     requiring the Department of Budget and Management to adopt certain regulations
     on or before a certain date; requiring certain chief financial officers to provide to the
     Office of the Comptroller certain financial information at the close of the fiscal year
     for a certain report; requiring certain chief financial officers to provide the General
     Accounting Division of the Office of the Comptroller with certain information and a
     certain letter; and generally relating to liquidated damages documentation
     requirements and the chief financial officers of units in the Executive Branch of State
     government.
BY repealing and reenacting, without amendments,
      Article – State Finance and Procurement
      Section 11–101(a), (d), and (aa) and 15–113(a) and (d)
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
      Article – State Finance and Procurement
      Section 15–113(e)
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
      Article – State Personnel and Pensions
      Section 1–101(a) and (b)
      Annotated Code of Maryland
      (2024 Replacement Volume and 2025 Supplement)
BY adding to
     Article – State Personnel and Pensions
     Section 2–206 and 2–207
  –1–
 Ch. 367  2026 LAWS OF MARYLAND
        Annotated Code of Maryland
        (2024 Replacement Volume and 2025 Supplement)
      SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
  Article – State Finance and Procurement
11–101.
        (a)   In this Division II the following words have the meanings indicated unless:
  (1)    the context clearly requires a different meaning; or
  (2)    a different definition is provided for a particular title or provision.
        (d)   “Board” means the Board of Public Works.
       (aa) (1)    “Unit” means an officer or other entity that is in the Executive Branch
of the State government and is authorized by law to enter into a procurement contract.
  (2)    “Unit” does not include:
  (i)      a bistate, multistate, bicounty, or multicounty governmental
agency; or
  (ii)  a special tax district, sanitary district, drainage district, soil
conservation district, water supply district, or other political subdivision of the State.
15–113.
      (a)   In this section, “liquidated damages” means damages in an amount
designated by the parties to a contract that the injured party is eligible to collect as
compensation for a specific breach of the contract.
       (d)    A unit shall obtain the approval of the head of the unit if the unit decides not
to include in a contract a liquidated damages clause specified under § 13–218(a)(4) of this
article.
        (e)   [(1)   This subsection applies only to procurements valued at $5,000,000 or
more.
  (2)] If a unit decides not to pursue liquidated damages when a specified
breach associated with a liquidated damages provision has occurred, the unit shall:
  –2–
  WES MOORE, Governor  Ch. 367
  [(i)] (1)     obtain the approval of the decision by the head of the unit;
[and]
  [(ii)] (2) maintain documentation on the reason the unit decided
not to pursue liquidated damages; AND
  (3) PROVIDE DOCUMENTATION TO THE BOARD AND THE JOINT
AUDIT AND EVALUATION COMMITTEE ON THE REASON THAT THE UNIT INTENDS
NOT TO PURSUE LIQUIDATED DAMAGES.
  Article – State Personnel and Pensions
1–101.
      (a)     In this Division I of this article the following words have the meanings
indicated.
      (b)    “Appointing authority” means an individual or a unit of government that has
the power to make appointments and terminate employment.
2–206.
        (A)   IN THIS SECTION, “CHIEF FINANCIAL OFFICER” INCLUDES MEANS:
  (1) AN INDIVIDUAL ACTING AS CHIEF FINANCIAL OFFICER FOR A
PERIOD OF 3 MONTHS OR LONGER; AND
  (2)   A POSITION EQUIVALENT TO A CHIEF FINANCIAL OFFICER
  (1)
  THE HIGHEST RANKING EXECUTIVE WHO, FOR A PERIOD OF AT
LEAST 6 MONTHS, IS RESPONSIBLE FOR DIRECTING ALL FINANCIAL OPERATIONS,
INCLUDING:
  (I)      BUDGETING;
  (II)     ACCOUNTING;
  (III) PROCUREMENT;
  (IV)     GRANT MANAGEMENT;
  (V)      ESTABLISHING FISCAL POLICIES;
  –3–
Ch. 367  2026 LAWS OF MARYLAND
  (VI)   ENSURING   COMPLIANCE   WITH   STATE AND FEDERAL
REGULATIONS; AND
  (VII) PROVIDING       STRATEGIC   FINANCIAL    LEADERSHIP   TO
AGENCY LEADERSHIP; OR
  (2)   A POSITION WITH EQUIVALENT DUTIES.
     (B) (1) THIS EXCEPT AS PROVIDED UNDER PARAGRAPH (2) OF THIS
SUBSECTION, THIS SECTION APPLIES TO A UNIT OF THE EXECUTIVE BRANCH OF
STATE GOVERNMENT THAT:
  (1) (I)   RECEIVES AT LEAST $2,000,000,000  $1,750,000,000
ANNUALLY IN STATE AND FEDERAL FUNDING; AND
  (2)   (II)   EMPLOYS A CHIEF FINANCIAL OFFICER.
  (2)     THIS SECTION DOES NOT APPLY TO THE UNIVERSITY SYSTEM OF
MARYLAND.
     (C)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AT THE REQUEST
OF AN APPOINTING AUTHORITY, THE SECRETARY MAY GRANT AN EXEMPTION TO
THE STATE PAY PLAN TO ASSIST UNITS OF STATE GOVERNMENT IN THE
RECRUITMENT AND RETENTION OF CHIEF FINANCIAL OFFICERS THE SECRETARY
MAY SET THE PAY SCALE FOR CHIEF FINANCIAL OFFICER POSITIONS IN ORDER TO
ASSIST WITH RECRUITMENT AND RETENTION.
     (D)   AN APPOINTING AUTHORITY SUBJECT TO THIS SECTION SHALL MAKE AN
APPOINTMENT OF A CHIEF FINANCIAL OFFICER WHO MEETS THE REQUIREMENTS
QUALIFICATIONS IN SUBSECTION (E) OF THIS SECTION.
     (E)  A CHIEF FINANCIAL OFFICER OF A UNIT OF STATE GOVERNMENT
SUBJECT TO THIS SECTION SHALL:
  (1)   (I) BE A CERTIFIED PUBLIC ACCOUNTANT WITH 5 YEARS OF
EXPERIENCE IN FISCAL MANAGEMENT IN THE PRIVATE OR PUBLIC SECTOR WITH A
MINIMUM OF 2 YEARS OF EXPERIENCE IN A HIGH–LEVEL MANAGEMENT POSITION;
OR
  (II) POSSESS   A  MASTER’S    DEGREE    IN   BUSINESS
ADMINISTRATION, FINANCE, OR A RELATED FIELD FROM AN ACCREDITED
INSTITUTION OF HIGHER EDUCATION WITH 3 YEARS OF EXPERIENCE IN FISCAL
  –4–
  WES MOORE, Governor  Ch. 367
MANAGEMENT IN THE PRIVATE OR PUBLIC SECTOR WITH A MINIMUM OF 2 YEARS OF
EXPERIENCE IN A HIGH–LEVEL MANAGEMENT POSITION; OR
  (2) HAVE A DOCUMENTED RECORD OF MANAGEMENT WITH AT LEAST
10 YEARS’ EXPERIENCE IN FISCAL MANAGEMENT IN THE PRIVATE OR PUBLIC
SECTOR, WITH A MINIMUM OF 5 YEARS OF EXPERIENCE IN A HIGH–LEVEL
MANAGEMENT POSITION.
     (F)   (1)  A CHIEF FINANCIAL OFFICER OF A UNIT OF STATE GOVERNMENT
SUBJECT TO THIS SECTION SHALL PROVIDE TO THE OFFICE OF THE COMPTROLLER
FOR THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, REQUIRED UNDER §
2–102 OF THE STATE FINANCE AND PROCUREMENT ARTICLE, ALL NECESSARY
ENTRIES OF THE UNIT’S FINANCIAL INFORMATION AT THE CLOSE OF THE FISCAL
YEAR.
  (2)
  THE CHIEF FINANCIAL OFFICER THAT REPORTS TO THE
COMPTROLLER UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL:
  (I)ENSURE THAT EACH ENTRY IN THE UNIT’S FINANCIAL
INFORMATION IS ADEQUATE AND ACCURATELY RECORDED; AND
  (II)
  CERTIFY TO THE COMPTROLLER THE ADEQUACY AND
ACCURACY OF THE FINANCIAL INFORMATION WITH A STATEMENT THAT:
  1.
  ALL FEDERAL FUND RECEIVABLES ARE PROPERLY
SUPPORTED AND CAN BE DIRECTLY ASSOCIATED WITH A SPECIFIC FEDERAL
FUNDING STREAM; AND
  2.
  THE STATE CAN REASONABLY EXPECT TO RECEIVE
FUNDS WITHIN 60 DAYS FOR THE SUBSEQUENT FISCAL YEAR UNLESS SPECIFIC
FEDERAL LANGUAGE ALLOWS FOR A LONGER RECOVERY PERIOD.
  (3)   IN ADDITION TO THE REQUIREMENTS SPECIFIED IN PARAGRAPHS
(1) AND (2) OF THIS SUBSECTION, THE CHIEF FINANCIAL OFFICER SHALL PROVIDE
TO THE GENERAL ACCOUNTING DIVISION OF THE OFFICE OF THE COMPTROLLER:
  (I)   THE INFORMATION NECESSARY TO PREPARE THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT AND SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS; AND
  (II)
  A  LETTER  ATTESTING TO  THE   ACCURACY  AND
COMPLETENESS OF THE INFORMATION PROVIDED UNDER ITEM (I) OF THIS
PARAGRAPH.
  –5–
Ch. 367  2026 LAWS OF MARYLAND
     (E)   (1) THE SECRETARY SHALL ESTABLISH MINIMUM QUALIFICATIONS
FOR CHIEF FINANCIAL OFFICER POSITIONS THAT CONSIDER:
  (I)    EDUCATION;
  (II)   EXECUTIVE EXPERIENCE AND THE DURATION OF THAT
EXPERIENCE;
  (III) SUPERVISORY OR MANAGERIAL EXPERIENCE;
  (IV)   TECHNICAL COMPETENCE;
  (V)    CERTIFICATIONS;
  (VI)   SCOPE AND COMPLEXITY OF THE ROLE; AND
  (VII) ALIGNMENT WITH THE GOVERNMENT OR INDUSTRY
STANDARDS.
  (2)   ON OR BEFORE NOVEMBER 1, 2026, THE DEPARTMENT SHALL
ADOPT REGULATIONS TO ESTABLISH MINIMUM QUALIFICATIONS FOR CHIEF
FINANCIAL OFFICER POSITIONS.
     (F)   FOR PREPARATION OF THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT REQUIRED UNDER § 2–102 OF THE STATE FINANCE AND PROCUREMENT
ARTICLE, A CHIEF FINANCIAL OFFICER OF A UNIT OF STATE GOVERNMENT SUBJECT
TO THIS SECTION SHALL PROVIDE TO THE OFFICE OF THE COMPTROLLER AT THE
CLOSE OF THE FISCAL YEAR:
  (1)     ALL    NECESSARY    ENTRIES   OF   THE   UNIT’S   FINANCIAL
INFORMATION;
  (2)THE INFORMATION NECESSARY TO PREPARE THE SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH APPLICABLE FEDERAL
LAWS AND REGULATIONS; AND
  (3) A LETTER ATTESTING TO THE ACCURACY AND COMPLETENESS OF
THE INFORMATION PROVIDED IN ITEMS (1) AND (2) OF THIS SUBSECTION.
2–207.
     (A)   IN THIS SECTION, “CHIEF INFORMATION OFFICER” MEANS:
  –6–
  WES MOORE, Governor  Ch. 367
  (1)AN INDIVIDUAL ACTING AS THE SENIOR EXECUTIVE OFFICER
RESPONSIBLE FOR THE STRATEGIC PLANNING, MANAGEMENT, AND OVERSIGHT OF
AN AGENCY’S INFORMATION TECHNOLOGY AND COMPUTER SYSTEMS AND
SUPPORTING ITS MISSION AND GOALS, INCLUDING THROUGH:
  (I)    PROCUREMENT;
  (II)   COMPLIANCE WITH STATE AND FEDERAL REGULATIONS;
AND
  (III) PROVIDING INFORMATION TECHNOLOGY LEADERSHIP TO
AGENCY LEADERSHIP; OR
  (2)   A POSITION WITH EQUIVALENT DUTIES.
      (B)(1) EXCEPT AS PROVIDED UNDER PARAGRAPH (2) OF THIS
SUBSECTION, THIS SECTION APPLIES TO A UNIT OF THE EXECUTIVE BRANCH OF
STATE GOVERNMENT THAT EMPLOYS A CHIEF INFORMATION OFFICER.
  (2)      THIS SECTION DOES NOT APPLY TO THE UNIVERSITY SYSTEM OF
MARYLAND.
      (C)   NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE SECRETARY
MAY SET THE PAY SCALE FOR CHIEF INFORMATION OFFICER POSITIONS IN ORDER
TO ASSIST WITH RECRUITMENT AND RETENTION.
      SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, May 12, 2026.
  –7–