MD SB818: Information Technology - Artificial Intelligence - Policies and Procedures (Artificial Intelligence Governance Act of 2024)

In one paragraph

Maryland's SB 818, the Artificial Intelligence Governance Act of 2024, governs AI used by Executive Branch agencies. Agencies must inventory their data, including data used in AI, by December 1, 2024 and yearly, and their high-risk AI systems by December 1, 2025 and regularly after, and assess high-risk systems by December 31, 2026 (procured on or after February 1, 2026) or July 1, 2027 (procured earlier). The Department of Information Technology was to adopt high-risk AI policies by December 1, 2024; from July 1, 2025 agencies may not procure or deploy a new AI system that does not comply. It codifies the Governor's AI Subcabinet. Signed May 9, 2024 (Chapter 496); effective July 1, 2024.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

No duties for private businesses. Vendors selling AI to Maryland Executive Branch agencies are affected: new AI systems procured or deployed from July 1, 2025 must meet the Department of Information Technology's policies, and high-risk systems are inventoried by vendor and impact-assessed.

Key provisions

1. 1High-risk AI (new State Finance and Procurement § 3.5-801): AI that is a risk to individuals or communities as defined in DoIT regulations adopted with the Subcabinet, including rights-impacting AI (output that serves as a basis for decisions or actions significantly likely to affect civil rights, civil liberties, equal opportunities, access to critical resources or privacy) and safety-impacting AI (potential to significantly impact the safety of human life, well-being or critical infrastructure)
2. 2By December 1, 2024 and annually, each unit of State government must conduct a data inventory, including when data is used in AI (§ 3.5-318); by December 1, 2025 and regularly after, it must inventory its high-risk AI systems for DoIT: name, vendor, capabilities, purpose and uses, any impact assessment before deployment, role in decisions and a summary of the latest assessment (§ 3.5-803)
3. 3DoIT must post an aggregated statewide inventory, withholding information whose publication is likely to compromise the security or integrity of State systems (available on request to the Governor, legislators and law enforcement)
4. 4Impact assessments of systems involving high-risk AI are due by December 31, 2026 for systems procured on or after February 1, 2026, and by July 1, 2027 for systems procured before then; units employing high-risk AI must conduct regular impact assessments as the Subcabinet determines (§ 3.5-805(b))
5. 5By December 1, 2024, DoIT with the Subcabinet must adopt policies on developing, procuring, deploying, using and assessing high-risk AI (posted within 45 days), including adequate guardrails, a duty for DoIT, when notified that people may have been negatively impacted by high-risk AI, to notify those determined to have been impacted and give guidance on available opt-out options, and procurement guidance on data privacy; from July 1, 2025 no unit may procure or deploy a new AI system that does not comply (§§ 3.5-804, 3.5-805)
6. 6The Office of the Attorney General, Comptroller and Treasurer are exempt but must adopt functionally compatible policies by June 1, 2025; public senior higher education institutions and Baltimore City Community College are covered except for AI used solely for research or academic purposes, which needs compatible policies by June 1, 2025 and yearly reports to DoIT on high-risk AI from September 1, 2025
7. 7Establishes the Governor's Artificial Intelligence Subcabinet in statute, chaired by the Secretary of Information Technology, to set AI strategy and oversee inventories, impact assessments, monitoring and compliance; roadmap for studying AI in State services due December 1, 2024 and a report on the Subcabinet's sufficiency due December 1, 2025; adds competitive proof of concept procurement (§ 13-116)
8. 8Approved by the Governor May 9, 2024 (Chapter 496; cross-filed with HB 1271); effective July 1, 2024

Latest legislative action

May 9, 2024. Approved by the Governor - Chapter 496

Sponsors (showing 5 of 19)

Roll call votes

Amendments (2)

• Favorable with Amendments 523823/1 Adopted Adopted 2024-03-14
• Favorable with Amendments 253228/1 Adopted Adopted 2024-04-04