Bill > HB188

This bill establishes a comprehensive procurement restriction for entities owned, operated, or controlled by governments of countries under a federal embargo, known as "scrutinized entities". Under this legislation, the Board of Public Works must create and regularly update a public list of such scrutinized entities, which will be ineligible to bid on, propose, or enter into contracts with any public body in Maryland. The bill defines a scrutinized entity broadly, including corporations, governmental entities, subsidiaries, and other organizations connected to countries subject to an arms trade embargo. Before adding an entity to the list, the Board must provide 90 days' written notice and allow the entity an opportunity to demonstrate it is not a scrutinized entity. Starting January 1, 2026, all public bodies must require potential contractors to certify they are not on this list. If a false certification is discovered, the entity may face significant penalties, including contract termination, paying investigation costs, potential civil penalties up to $250,000 or twice the contract value, and being barred from bidding on future contracts for up to three years. The bill also preempts any local procurement regulations that might conflict with these provisions and will remain in effect until federal law no longer authorizes such state-level restrictions.

Budget and Finance, Health and Social Services

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0188?ys=2025RS