CLOSING DATES AND ISSUE DATES THROUGH
December 2025^†

Issue Date	Emergency and Proposed Regulations 5 p.m.*	Notices, etc. 10:30 a.m.	Final Regulations 10:30 a.m.
2024
December 2***	November 8**	November 18	November 20
December 13	November 25	December 2	December 4
December 27	December 9	December 16	December 18
2025
January 10	December 23	December 30	December 31**
January 24	January 6	January 13	January 15
February 7	January 17**	January 27	January 29
February 21	February 3	February 10	February 12
March 7	February 14**	February 24	February 26
March 21	March 3	March 10	March 12
April 4	March 17	March 24	March 26
April 18	March 31	April 7	April 9
May 2	April 14	April 21	April 23
May 16	April 28	May 5	May 7
May 30	May 12	May 19	May 21
June 13	May 23**	June 2	June 4
June 27	June 9	June 16	June 18
July 11	June 23	June 30	July 2
July 25	July 7	July 14	July 16
August 8	July 21	July 28	July 30
August 22	August 4	August 11	August 13
September 5	August 18	August 25	August 27
September 19	August 29**	September 8	September 10
October 3	September 15	September 22	September 24
October 17	September 29	October 6	October 8
October 31	October 10**	October 20	October 22
November 14	October 27	November 3	November 5
December 1***	November 10	November 17	November 19
December 12	November 24	December 1	December 3
December 26	December 8	December 15	December 17

^† Please note that this table is provided for planning purposes and that the Division of State Documents (DSD) cannot guarantee submissions will be published in an agency’s desired issue. Although DSD strives to publish according to the schedule above, there may be times when workload pressures prevent adherence to it.

* Also note that proposal deadlines are for submissions to DSD for publication in the Maryland Register and do not take into account the 15-day AELR review period. The due date for documents containing 8 to 18 pages is 48 hours before the date listed; the due date for documents exceeding 18 pages is 1 week before the date listed.

NOTE: ALL DOCUMENTS MUST BE SUBMITTED IN TIMES NEW ROMAN, 9-POINT, SINGLE-SPACED FORMAT. THE PAGE COUNT REFLECTS THIS FORMATTING.

** Note closing date changes due to holidays.

*** Note issue date changes due to holidays.

The regular closing date for Proposals and Emergencies is Monday.

Cumulative Table of COMAR Regulations
Adopted, Amended, or Repealed

This table, previously printed in the Maryland Register lists the regulations, by COMAR title, that have been adopted, amended, or repealed in the Maryland Register since the regulations were originally published or last supplemented in the Code of Maryland Regulations (COMAR). The table is no longer printed here but may be found on the Division of State Documents website at www.dsd.state.md.us.

Table of Pending Proposals

The table below lists proposed changes to COMAR regulations. The proposed changes are listed by their COMAR number, followed by a citation to that issue of the Maryland Register in which the proposal appeared. Errata and corrections pertaining to proposed regulations are listed, followed by “(err)” or “(corr),” respectively. Regulations referencing a document incorporated by reference are followed by “(ibr)”. None of the proposals listed in this table have been adopted. A list of adopted proposals appears in the Cumulative Table of COMAR Regulations Adopted, Amended, or Repealed.

01 EXECUTIVE DEPARTMENT

01.02.11.03,.11 • 51:21 Md. R. 928 (10-18-24)

05 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

05.23.01.01—.04 • 51:22 Md. R. 966 (11-1-24)

07 DEPARTMENT OF HUMAN SERVICES

07.02.09.01—.13 • 51:19 Md. R. 855 (9-20-24)

07.02.25.01—.24 • 51:19 Md. R. 861 (9-20-24)

08 DEPARTMENT OF NATURAL RESOURCES

08.02.01.12 • 51:22 Md. R. 968 (11-1-24)

08.02.11.01 • 51:23 Md. R. 1039 (11-15-24)

08.02.22.02 • 51:10 Md. R. 534 (5-17-24)

09 MARYLAND DEPARTMENT OF LABOR

09.03.02.01,.04,.09—.13 • 51:14 Md. R. 685 (7-12-24)

09.03.06.02,.04,.06,.16 • 51:14 Md. R. 685 (7-12-24)

09.03.09.02,.07 • 51:14 Md. R. 685 (7-12-24)

09.11.09.02 • 51:15 Md. R. 713 (7-26-24)

09.13.07.02,.04 51:19 Md. R. 870 (9-20-24)

09.19.08.02 51:19 Md. R. 871 (9-20-24)

09.33.02.01—.09 • 50:25 Md. R. 1100 (12-15-23)

09.36.06.01 51:19 871 (9-20-24)

09.36.08.02 51:19 Md. R. 871 (9-20-24)

09.36.08.02 • 50:25 Md. R. 1101 (12-15-23)

09.42.01.01—.03 • Md. R. 929 (10-18-24)

09.42.02.01—.10 • Md. R. 932 (10-18-24)

09.42.03.01—.10 • Md. R. 933 (10-18-24)

09.42.04.01—.12 • Md. R. 937 (10-18-24)

10 MARYLAND DEPARTMENT OF HEALTH

Subtitles 01—08 (1st volume)

10.07.14.01—.65 • 51:6 Md. R. 272 (3-22-24)

Subtitle 09 (2nd volume)

10.09.11.11 • 51:2 Md. R. 79 (1-26-24)

10.09.21.02—.06 • 51:2 Md. R. 82 (1-26-24)

10.09.24.02,.07,.12 • 51:2 Md. R. 79 (1-26-24)

10.09.39.02,.06 • 50:24 Md. R. 1049 (12-1-23)

10.09.43.10,.13 • 51:2 Md. R. 79 (1-26-24)

10.09.46.12 • 51:4 Md. R. 204 (2-23-24)

10.09.53.04,.05 • 51:4 Md. R. 206 (2-23-24)

10.09.92.04,.05 • 51:1 Md. R. 38 (1-12-24)

10.24.01.01,.03,.12,.21—.23 • 51:23 Md. R. 1042 (11-15-24)

10.24.20.01 • 51:23 Md. R. 1044 (11-15-24)

10.25.10.01—.17,.19 • Md. R. 969 (11-1-24)

Subtitles 37—52 (5th volume)

10.37.01.03 • 51:17 Md. R. 779 (8-23-24)

10.44.20.02 • 50:20 Md. R. 918 (10-6-23)

Subtitles 53—68 (6th volume)

10.63.07.02,.03,.05,.11 • 51:3 Md. R. 173 (2-9-24)

10.67.04.20 • 50:24 Md. R. 1049 (12-1-23)

10.67.06.28 • 50:24 Md. R. 1049 (12-1-23)

11 DEPARTMENT OF TRANSPORTATION

Subtitles 01—10

11.03.01.09 • 51:11 Md. R. 585 (5-31-24)

51:18 Md. R. 813 (9-6-24)

11.11.13.03 • 51:20 Md. R. 901 (10-4-24)

11.13.13.01—.03 • 51:23 Md. R. 1045 (11-15-24)

11.17.14.06 • 51:23 Md. R. 1046 (11-15-24)

12 DEPARTMENT OF PUBLIC SAFETY AND CORRECTIONAL SERVICES

12.04.09.02 • 51:13 Md. R. 650 (6-28-24)

13A STATE BOARD OF EDUCATION

13A.07.06.02,.08 • 51:20 Md. R. 902 (10-4-24)

13A.07.08.01—.06, 07,08 • 51:20 Md. R. 903 (10-4-24)

13A.12.01.05—.07 • 51:21 Md. R. 942 (10-18-24)

13A.12.02.06,.07 • 51:21 Md. R. 942 (10-18-24)

13A.12.02.03 • 51:21 Md. R. 942 (10-18-24)

13A.12.04.02,.06,.07,.13,.15 • 51:21 Md. R. 942 (10-18-24)

13A.12.05.06,.08,.10,.15 • 51:21 Md. R. 942 (10-18-24)

13A.14.15.01—.09 • 51:22 Md. R. 973 (11-1-24)

13A.16.08.03 • 51:2 Md. R. 95 (1-26-24)

13A.16.10.02 • 51:2 Md. R. 95 (1-26-24)

13A.17.10.02 • 51:2 Md. R. 95 (1-26-24)

13B MARYLAND HIGHER EDUCATION COMMISSION

13B.02.03.02,.03,.06,.20 • 51:20 Md. R. 905 (10-4-24)

14 INDEPENDENT AGENCIES

14.01.04.05 • 51:22 Md. R. 978 (11-1-24)

14.04.02.04 • 51:22 Md. R. 979 (11-1-24)

14.04.05.05• 51:22 Md. R. 979 (11-1-24)

14.04.10.01—.06 • 51:22 Md. R. 979 (11-1-24)

14.04.11.01—.05 • 51:22 Md. R. 979 (11-1-24)

14.35.07.08,.11,.13,.18,.19 • 51:22 Md. R. 983 (11-1-24)

14.35.07.12 • 51:20 Md. R. 906 (10-4-24)

14.35.14.04 • 51:22 Md. R. 983 (11-1-24)

14.35.18.03,.04 • 51:17 Md. R. 789 (8-23-24)

14.39.02.05 • 51:20 Md. R. 907 (10-4-24)

14.39.02.12 • 51:23 Md. R. 1046 (11-15-24)

15 MARYLAND DEPARTMENT OF AGRICULTURE

15.20.07.02 • 51:22 Md. R. 984 (11-1-24) (ibr)

15.20.13.01—.28 • 51:22 Md. R. 985 (11-1-24)

20 PUBLIC SERVICE COMMISSION

20.06.01.01—.09 • 51:18 Md. R. 822 (9-6-24)

20.06.02.01—.06 • 51:18 Md. R. 822 (9-6-24)

20.50.09.02,.06,.07,.09,.10,.12—.14 • 51:17 Md. R. 789 (8-23-24)

21 STATE PROCUREMENT REGULATIONS

21.01.02.01 • 51:23 Md. R. 1046 (11-15-24)

21.02.01.04,.05 • 51:23 Md. R. 1046 (11-15-24)

21.03.05,.02 • 51:23 Md. R. 1046 (11-15-24)

21.05.03.01 • 51:23 Md. R. 1046 (11-15-24)

21.05.07.06 • 51:23 Md. R. 1046 (11-15-24)

21.05.08.07 • 51:23 Md. R. 1046 (11-15-24)

21.05.12.02 • 51:23 Md. R. 1047 (11-15-24)

21.05.16.01—.05 • 51:23 Md. R. 1046 (11-15-24)

21.07.01.08,.26,.31 • 51:23 Md. R. 1046 (11-15-24)

21.07.02.05-2,.10 • 51:23 Md. R. 1046 (11-15-24)

21.07.03.06,.26,.27 • 51:23 Md. R. 1046 (11-15-24)

21.07.04.01,.02, • 51:23 Md. R. 1046 (11-15-24)

21.10.02.02 • 51:23 Md. R. 1046 (11-15-24)

21.10.05.02.06 • 51:20 Md. R. 907 (10-4-24)

21.10.06.12 • 51:20 Md. R. 907 (10-4-24)

21.10.08.01—.08 • 51:23 Md. R. 1047 (11-15-24)

21.11.01.01,.02,.05,.06 • 51:23 Md. R. 1047 (11-15-24)

21.11.03.03,.17 • 51:23 Md. R. 1047 (11-15-24)

21.11.05.04,.06 • 51:23 Md. R. 1047 (11-15-24)

21.13.01.03 • 51:23 Md. R. 1046 (11-15-24)

26 DEPARTMENT OF THE ENVIRONMENT

Subtitles 01—07 (Part 1)

26.04.01.01,.01-1,.20,.31 • 51:6 Md. R. 309 (3-22-24) (ibr)

Subtitles 08—12 (Part 2)

26.11.43.04 51:19 Md. R. 872 (9-20-24)

Subtitles 19—30 (Part 4)

26.28.01.01—.03 • 51:18 Md. R. 830 (9-6-24) (ibr)

26.28.02.01—.05 • 51:18 Md. R. 830 (9-6-24)

26.28.03.01,.02 • 51:18 Md. R. 830 (9-6-24)

26.28.04.01—.03 • 51:18 Md. R. 830 (9-6-24)

27 CRITICAL AREA COMMISSION FOR THE CHESAPEAKE AND ATLANTIC COASTAL BAYS

27.01.01.01 • 51:22 Md. R. 996 (11-1-24)

27.01.02.01,.01-1,.02, 02-1, .02-2, .03—.06,.06-1,.06-2,.06-3,.07,.08,. • 51:22 Md. R. 996 (11-1-24)

27.01.03.02—.04 • 51:22 Md. R. 996 (11-1-24)

27.01.05.01,.02 • 51:22 Md. R. 996 (11-1-24)

27.01.06.02,.03 • 51:22 Md. R. 996 (11-1-24)

27.01.07.02,.03 • 51:22 Md. R. 996 (11-1-24)

27.01.08.03 • 51:22 Md. R. 996 (11-1-24)

27.01.09.01—.01-3,.01-6,.01-7,.02—.05 •51:22 Md. R. 996 (11-1-24)

27.01.10.01,.02 • 51:22 Md. R. 996 (11-1-24)

27.01.11.04—.06 • 51:22 Md. R. 996 (11-1-24)

27.01.12.06,.07 • 51:22 Md. R. 996 (11-1-24)

27.01.14.03.05,.06 • 51:22 Md. R. 996 (11-1-24)

27.02.01,.01 • 51:22 Md. R. 996 (11-1-24)

27.02.02.01,.02 • 51:22 Md. R. 996 (11-1-24)

27.02.03,.01,.02 • 51:22 Md. R. 996 (11-1-24)

27.02.04,.01,.02 • 51:22 Md. R. 996 (11-1-24)

27.02.05.01,,.03—.03-2,.04-1,.04-2,.06,.07,.08-2,.08-3,.09—.13,.15—.15-3 • 51:22 Md. R. 996 (11-1-24)

27.02.06.01 • 51:22 Md. R. 996 (1161-24)

27.02.07.01—.04 • 51:22 Md. R. 996 (11-1-24)

27.02.08,.01,.02 • 51:22 Md. R. 996 (11-1-24)

27.03.01,.01—.04,.05 • 51:22 Md. R. 996 (11-1-24)

29 DEPARTMENT OF STATE POLICE

29.03.01.45 • 51:10 Md. R. 542 (5-17-24)

29.03.01.58 • 51:15 Md. R. 718 (7-26-24)

30 MARYLAND INSTITUTE FOR EMERGENCY MEDICAL SERVICES SYSTEMS (MIEMSS)

30.02.02.04,.06—.09 • 50:24 Md. R. 1061 (12-1-23)

31 MARYLAND INSURANCE ADMINISTRATION

31.03.18.02,.17 • 51:21 Md. R. 946 (10-18-24)

31.04.18.02,.15 • 51:21 Md. R. 946 (10-18-24)

31.08.03.04,.05,.07,.08 • 51:22 Md. R. 1022 (11-1-24)

33 STATE BOARD OF ELECTIONS

33.03.02.01,.03,.05 • 51:16 Md. R. 762 (8-9-24)

33.04.01.02,.07 • 51:8 Md. R. 375 (4-19-24)

33.04.02.01—.03 • 51:8 Md. R. 375 (4-19-24)

33.05.02.02 • 51:16 Md. R. 762 (8-9-24)

33.17.06.05 • 51:16 Md. R. 762 (8-9-24)

34 DEPARTMENT OF PLANNING

34.04.04.04 • 51:22 Md. R. 1025 (11-1-24)

36 MARYLAND STATE LOTTERY AND GAMING CONTROL AGENCY

36.03.10,.07,.12,.14,.20,.28,.38 • 51:23 Md. R. 1059 (11-15-24)

36.04.02.02 • 51:23 Md. R. 1059 (11-15-24)

36.08.01.02 • 51:23 Md. R. 1059 (11-15-24)

36.08.02.01 • 51:23 Md. R. 1059 (11-15-24)

36.08.03.01—.04,.06 • 51:23 Md. R. 1059 (11-15-24)

36.08.04.01,.03 • 51:23 Md. R. 1059 (11-15-24)

36.09.01.02 • 51:23 Md. R. 1059 (11-15-24)

36.09.02.01,.01—.06 • 51:23 Md. R. 1059 (11-15-24

36.09.03.01—.07 • 51:23 Md. R. 1059 (11-15-24)

36.09.04.01—.07 • 51:23 Md. R. 1059 (11-15-24)

36.09.05.01—.03 • 51:23 Md. R. 1059 (11-15-24)

36.10.12.03 • 51:23 Md. R. 1059 (11-15-24)

36.10.13.06,.37,.40,.45 • 51:23 Md. R. 1059 (11-15-24)

36.10.14.06 • 51:23 Md. R. 1059 (11-15-24)

36.10.18.04,.05 • 51:23 Md. R. 1059 (11-15-24)

Emergency Action on Regulations

Symbol Key

• Roman type indicates text existing before emergency status was granted.

• Italic type indicates new text.

• [Single brackets] indicate deleted text.

Emergency Regulations

Under State Government Article, §10-111(b), Annotated Code of Maryland, an agency may petition the Joint Committee on Administrative, Executive, and Legislative Review (AELR), asking that the usual procedures for adopting regulations be set aside because emergency conditions exist. If the Committee approves the request, the regulations are given emergency status. Emergency status means that the regulations become effective immediately, or at a later time specified by the Committee. After the Committee has granted emergency status, the regulations are published in the next available issue of the Maryland Register. The approval of emergency status may be subject to one or more conditions, including a time limit. During the time the emergency status is in effect, the agency may adopt the regulations through the usual promulgation process. If the agency chooses not to adopt the regulations, the emergency status expires when the time limit on the emergency regulations ends. When emergency status expires, the text of the regulations reverts to its original language.

Title 15
MARYLAND DEPARTMENT OF AGRICULTURE

15.20.07 Agricultural Operation Nutrient Management Plan Requirements

Authority: Agriculture Article, §§8-8A-01 et seq., Annotated Code of Maryland

Notice of Emergency Action

[24-146-E-I]

The Joint Committee on Administrative, Executive, and Legislative Review has granted emergency status to amendments to Regulation .02 under COMAR 15.20.07 Agricultural Operation Nutrient Management Plan Requirements.

Emergency status began: October 16, 2024.

Emergency status expires: April 15, 2025.

Estimate of Economic Impact

The emergency action has no economic impact.

Economic Impact on Small Businesses

The emergency action has minimal or no economic impact on small businesses.

Editor’s Note: The text of this document will not be printed here because it appeared as a Notice of Proposed Action in 51:22 Md. R. 984—985 (November 1, 2024), referenced as [24-146-P-I].

KEVIN ATTICKS
Secretary

Subtitle 20 SOIL AND WATER CONSERVATION

15.20.13 Food Processing Residuals Utilization Program

Authority: Agriculture Article, §§8-8A-01 et seq., Annotated Code of Maryland

Notice of Emergency Action

[24-139-E-I]

The Joint Committee on Administrative, Executive, and Legislative Review has granted emergency status to new Regulations .01—.28 under a new chapter, COMAR 15.20.13 Food Processing Residuals Utilization Program.

Emergency status began: October 16, 2024.

Emergency status expires: April 15, 2025.

Estimate of Economic Impact

The emergency action has no economic impact.

Economic Impact on Small Businesses

The emergency action has minimal or no economic impact on small businesses.

Editor’s Note: The text of this document will not be printed here because it appeared as a Notice of Proposed Action in 51:22 Md. R.985—996 (November 1, 2014), referenced as [24-139-P-I].

KEVIN ATTICKS
Secretary

Final Action on Regulations

Symbol Key

• Roman type indicates text already existing at the time of the proposed action.

• Italic type indicates new text added at the time of proposed action.

• Single underline, italic indicates new text added at the time of final action.

• Single underline, roman indicates existing text added at the time of final action.

• [[Double brackets]] indicate text deleted at the time of final action.

Title 08
DEPARTMENT OF NATURAL RESOURCES

Subtitle 02 FISHERIES SERVICE

Authority: Natural Resources Article, §§4-215, 4-221, 4-2A-03, and 4-732, Annotated Code of Maryland

Notice of Final Action

[24-040-F]

On November 4, 2024, the Secretary of Natural Resources adopted:

(1) The repeal of Regulation .08 and amendments to Regulations .09, .10 and .12 under COMAR 08.02.15 Striped Bass; and

(2) Amended Regulation .03 under COMAR 08.02.25 Gear. This action, which was proposed for adoption in 51:11 Md. R. 581—585 (May 31, 2024) has been adopted with the nonsubstantive changes shown below.

Effective Date: November 25, 2024.

Attorney General’s Certification

In accordance with State Government Article, §10-113, Annotated Code of Maryland, the Attorney General certifies that the following changes do not differ substantively from the proposed text. The nature of the changes and the basis for this conclusion are as follows: The proposed action repealed Regulation .08 under COMAR 08.02.15 Striped Bass. The areas from Regulation .08 that are still open to fishing were added to COMAR 08.02.15.09 (Chesapeake Bay), but one of the areas added to Regulation .09 should have been added to COMAR 08.02.15.10 (Potomac River) since the area describes the open fishing areas of the Potomac River and its tidal tributaries. Moving the area from Regulation .09 to Regulation .10 will clearly designate the areas in which people may fish for striped bass in Maryland portions of the Potomac River and its tidal tributaries. This change does not alter the open area; it simply changes where the information appears in COMAR. These changes are clarifying in nature and are not more restrictive than the originally proposed text.

.09 Recreational and Charter Boat Summer and Fall Fishery in the Chesapeake Bay and Its Tidal Tributaries.

A. Early Season.

(1)—(2) (proposed text unchanged)

(3) Open Areas. A person may only catch or possess striped bass during the recreational and charter boat early summer and fall season in the following areas:

(a)—(e) (proposed text unchanged)

[[(f) All of the Maryland waters of the Potomac River, and its tidal tributaries, downstream of a line beginning at a point at or near the east end of the Nice Memorial Bridge (U.S. 301), defined by Lat. 38°21.55'N and Long. 77°00.90'W; then running approximately 80° True to a point at or near the west end of the Nice Memorial Bridge, defined by Lat. 38°21.81'N and Long. 76°59.00'W; and upstream of a line beginning at a point at or near the shore at the north side of the north jetty at Smith Point, defined by Lat. 37°53.40'N and Long. 76°14.23'W; then running approximately 335° True to a point at or near Point Lookout, defined by Lat. 38°02.25'N and Long. 76°19.34'W.]]

B.— C. (proposed text unchanged)

.10 Recreational and Charter Boat Summer and Fall Fishery for Maryland Tributaries of the Potomac River.

A. Season. Except for the closure specified in Regulation .12I(7) of this chapter, the recreational and charter boat summer and fall season [[in the]] is:

(1) [[Areas described in Regulation .08D(3) of this regulation is]] May 16 through May 31 for all of the Maryland waters of the Potomac River, and its tidal tributaries, downstream of a line beginning at a point at or near the east end of the Nice Memorial Bridge (U.S. 301), defined by Lat. 38°21.55'N and Long. 77°00.90'W; then running approximately 80° True to a point at or near the west end of the Nice Memorial Bridge, defined by Lat. 38°21.81'N and Long. 76°59.00'W; and upstream of a line beginning at a point at or near the shore at the north side of the north jetty at Smith Point, defined by Lat. 37°53.40'N and Long. 76°14.23'W; then running approximately 335° True to a point at or near Point Lookout, defined by Lat. 38°02.25'N and Long. 76°19.34'W; and

(2) [[Maryland tributaries of the Potomac River downstream of Woodrow Wilson Bridge (I-95) is]] June 1 through December 10 for the Maryland tributaries of the Potomac River downstream of Woodrow Wilson Bridge (I-95).

B. —D. (text unchanged)

JOSH KURTZ
Secretary of Natural Resources

Title 09
MARYLAND DEPARTMENT OF LABOR

Subtitle 03 COMMISSIONER OF FINANCIAL REGULATION

09.03.15 Shared Appreciation Agreements

Authority: Business Regulation Article, §2-105; Financial Institutions Article, §§2-105.1, 11-203, 11-503, 12-104, and 12-403; Annotated Code of Maryland

Notice of Final Action

[24-070-F]

On October 30, 2024, the Commissioner of Financial Regulation adopted new Regulations .01 — .05 under a new chapter, COMAR 09.03.15 Shared Appreciation Agreements. This action, which was proposed for adoption in 51:14 Md. R. 688 — 690 (July 12, 2024), has been adopted with the nonsubstantive changes shown below.

Effective Date: November 25, 2024.

Attorney General’s Certification

ANTONION SALAZAR

Commissioner

Title 10
MARYLAND DEPARTMENT OF HEALTH

Subtitle 37 HEALTH SERVICES COST REVIEW COMMISSION

10.37.01 Uniform Accounting and Reporting System for Hospitals and Related Institutions

Authority: Authority: Health-General Article, §§19-207 and 19-215, Annotated Code of Maryland

Notice of Final Action

[24-106-F-I]

On October 24, 2024, the Health Services Cost Review Commission adopted an amendment to Regulation .02 under COMAR 10.37.01 Uniform Accounting and Reporting System for Hospitals and Related Institutions. This action, which was proposed for adoption in 51:18 Md. R. 812 — 813 (September 6, 2024), has been adopted as proposed.

Effective Date: November 25, 2024.

JOSHUA SHARSTEIN
Chairman, Health Services Cost Review Commission

Title 13B
MARYLAND HIGHER EDUCATION COMMISSION

Subtitle 02 ACADEMIC REGULATIONS

13B.02.03 Academic Programs—Degree-Granting Institutions

Authority: Education Article, Title 11, Subtitle 2, Annotated Code of Maryland

Notice of Final Action

[24-103-F]

On October 23, 2024, the Maryland Higher Education Commission adopted amendments to Regulation .28 under COMAR 13B.02.03 Academic Programs -- Degree-Granting Institutions. This action, which was proposed for adoption in 51:18 Md. R. 816 — 818 (September 6, 2024), has been adopted as proposed.

Effective Date: December 1, 2024.

SANJAY RAI, PH.D.
Secretary of Higher Education

Subtitle 08 FINANCIAL AID

13B.08.17 Student Loan Debt Relief Tax Credit

Authority: Education Article, §11-105; Tax-General Article, §10-740; Annotated Code of Maryland

Notice of Final Action

[24-085-F]

On October 23, 2024, the Maryland Higher Education Commission adopted amendments to Regulations .02 — .05 under COMAR 13B.08.17 Student Loan Debt Relief Tax Credit. This action, which was proposed for adoption in 51:16 Md. R. 759 — 760 (August 9, 2024), has been adopted as proposed.

Effective Date: November 25, 2024.

SANJAY RAI, PH.D.
Secretary of Higher Education

13B.08.21 Maryland Community College Promise Scholarships

Authority: Education Article, §§11-105 and 18-204 and Title 18,Subtitle 36, , Annotated Code of Maryland

Notice of Final Action

[24-102-F]

On October 23, 2024, the Maryland Higher Education Commission adopted the repeal of existing Regulations .01 — .22 and new Regulations .01 — .09 under COMAR 13B.08.21 Maryland Community College Scholarship Program. This action, which was proposed for adoption in 51:18 Md. R. 818 — 822 (September 6, 2024), has been adopted as proposed.

Effective Date: November 25, 2024.

SANJAY RAI, PH.D.

Secretary of Higher Education

Title 29
MARYLAND STATE POLICE

Subtitle 05 CRIME LABORATORY

29.05.03 Testing Blood and Breath for Alcohol

Authority: Courts and Judicial Proceedings Article, §§10-304 and 10-306; Health-General Article, §17-214(g); Transportation Article, §2-205; Annotated Code of Maryland

Notice of Final Action

[24-082-F]

On October 25, 2024, the Secretary of State Police adopted new Regulations.01 — .09 under a new chapter, COMAR 29.05.03 Testing Blood and Breath for Alcohol. This action, which was proposed for adoption in 51:15 Md. R. 719-723 (July 26, 2024), has been adopted as proposed.

Effective Date: November 25, 2024.

ROLAND L. BUTLER JR.

Secretary

Proposed Action on Regulations

Title 08
DEPARTMENT OF NATURAL RESOURCES

Subtitle 02 FISHERIES SERVICE

08.02.11 Fishing in Nontidal Waters

Authority: Natural Resources Article, §§4-602 and 4-603, Annotated Code of Maryland

Notice of Proposed Action

[24-142-P]

The Secretary of Natural Resources proposes to amend Regulation .01 under COMAR 08.02.11 Fishing in Nontidal Waters.

Statement of Purpose

The purpose of this action is to make changes to the Put-and-Take trout stocking program. The changes include modifying the areas managed as Put-and-Take areas, modifying the areas managed as Closure 1 areas, and eliminating the Closure 2 designation. The Department continuously evaluates stocking and management programs to maximize recreational opportunities and experiences for anglers, including adjusting stocking locations and closures. These proposed changes will also reduce the complexity of the Department’s regulations by creating a single closure period for those waters that are closed during the spring stocking season.

Areas:

The Department has proposed the following changes to the areas managed for Put-and-Take Trout Fishing:

Addition:

●Extend the Patapsco River Put-and-Take Trout Fishing Area (Baltimore and Howard County) upstream by approximately 0.61 miles. The additional area is public property with good access for both stocking and anglers. The new area encompasses the stretch of the Patapsco River from the previous site of Bloede Dam upstream to Ilchester Road.

Deletions:

● Jones Falls below Lake Roland (Baltimore County) — This area has poor/difficult access for stocking; the available water is limited in size and has not been stocked since the COVID-19 pandemic.

●Beaver Run (Carroll County) — This area is entirely on private property, primarily within the Beaver Run Fish and Game Club property, with little public participation. The stream is very shallow, provides limited holding habitat for trout, and has not been stocked for several years.

Closures:

· The Department has proposed simplifying the way it closes certain bodies of water during the spring trout stocking season. To achieve this, the Department proposes modifying the list of areas affected by this closure and eliminating the Closure 2 management option. There would no longer be the potential for confusion about different closures. Many of the Closure 2 areas would be redesignated as Closure 1; the remainder would be designated as Closure 0. Closure 1 areas are closed from the first Sunday after March 4 to the last Saturday in March. Closure 0 areas are not closed but are managed under the Put-and-Take rules (daily creel of 5 fish per person per day, possession limit of 10, no brook trout harvest allowed).

The proposed action removes the following Put-and-Take Trout Fishing Areas from the Closure 2 list and adds them to the Closure 1 list:
●Cotton Cove Pond (Allegany County)

●Farm Museum Pond (Carroll County)

●Hamburg Pond (Frederick County)

●Jennings Run (Allegany County)

●Martin Luther King, Jr. Pond (Montgomery County)

●North Jennings Run Watershed (Allegany County)

●Pine Lake (Montgomery County)

●Rainbow Lake (Frederick County)

●Savage River (Garrett County)

●Whiskey Springs Pond (Frederick County)

The proposed action removes the following Put-and-Take Trout Fishing Areas from the Closure 2 list and adds them to the Closure 0 list:

●Frank Bentz Pond (Frederick County)

●Indian Springs Pond (Washington County

●Izaak Walton Pond (Montgomery County

●Northwest Branch (Montgomery County)

●Westminster Pond (Carroll County)

The proposed action also adds a number of areas currently on the Closure 0 list to the Closure 1 list in order to enhance the Youth Trout Fishing Day program. The Youth Trout Fishing Day program occurs in all waters designated as Closure 1 on the Saturday before the traditional Opening Day; by moving these areas from Closure 0 to Closure 1, the Department is increasing opportunities to participate in that program. The proposed action moves the following Put-and-Take Trout Fishing Areas from the Closure 0 list to the Closure 1 list:

●Accident Pond (Garrett County)

●Calvert Cliffs Pond (Calvert County)

●Dans Mountain Pond (Allegany County

●Hughesville Pond (Charles County)

●Hutchins Pond (Calvert County)

●Warfield Park Pond (Howard County)

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Fishing in Nontidal Waters — Trout, Regulatory Staff, Maryland Department of Natural Resources, 580 Taylor Ave E-4, Annapolis MD 21401, or call 410-260-8300, or email to submit comment to: https://dnr.maryland.gov/fisheries/pages/regulations/changes.aspx#trout. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

.01 Trout Fishing and Management Areas.

A. (text unchanged)

B. Put-and-Take Trout Fishing Areas.

(1) Open Season. Except as provided in §I of this regulation, put-and-take trout fishing areas are closed to all fishing from 10 p.m. of the first date to 5:30 a.m. of the last date, during the period listed in the following schedule:

(a) Closure 0 — No closure; and

(b) Closure 1 — From the first Sunday after March 4 to the last Saturday in March[; and

(2) Fishing Hours.

(a)—(b) (text unchanged)

(c) In areas designated as Closure 1 [or Closure 2 areas] in §B(5) of this regulation, the fishing hours on the last Saturday in March are from 6:30 a.m. to 10 p.m.

(3)—(4) (text unchanged)

(5) Except as provided in §C(1) of this regulation the following areas are designated as put-and-take trout fishing areas and are subject to the provisions in §B(1)—(3) of this regulation:

	Closure Periods
(a) Allegany County:
(i)—(v) (text unchanged)
(vi) North Jennings Run watershed	[2] 1
(vii) Jennings Run mainstem downstream of the confluence of North Jennings Run	[2] 1
(viii) (text unchanged)
(ix) Dans Mountain Pond	[0] 1
(x)—(xiv) (text unchanged)	0
(xv) Cotton Cove Pond in Lion's Park Glendening Recreational Complex at Frostburg	[2] 1
(xvi) (text unchanged)
(b) (text unchanged)
(c) Baltimore County and Baltimore City:
(i) Patapsco River mainstem from the B & O Viaduct upstream to [Bloedes Dam] Ilchester Road	1
(ii)—(vi) (text unchanged)
[(vii) Jones Falls mainstem below Lake Roland]
[(viii)] (vii)—[(ix)] (viii) (text unchanged)
(d) Calvert and Charles Counties:
(i) Calvert Cliffs Pond	[0] 1
(ii) Hughesville Pond	[0] 1
(iii) Hutchins Pond	[0] 1
(iv)—(v) (text unchanged)
(e) (text unchanged)
(f) Carroll County:
[(i) Beaver Run mainstem upstream of Maryland Route 91]
[(ii)] (i) (text unchanged)
[(iii)] (ii) Westminster Pond	[2] 0
[(iv)] (iii) Farm Museum Pond	[2] 1
[(v)] (iv)—[(ix)] (viii) (text unchanged)
(g) (text unchanged)
(h) Frederick County:
(i)—(v) (text unchanged)
(vi) Frank Bentz Pond	[2] 0
(vii) Rainbow Lake	[2] 1
(viii)—(ix) (text unchanged)
(x) Whiskey Springs Pond	[2] 1
(xi) Hamburg Pond	[2] 1
(xii)—(xiii) (text unchanged)
(i) Garrett County:
(i) Savage River mainstem from Savage River Reservoir upstream to Poplar Lick	[2] 1
(ii)—(xi) (text unchanged)
(xii) Accident Pond	[0] 1
(xiii)—(xvii) (text unchanged)
(j) (text unchanged)
(k) Howard County, Montgomery County, and Prince George's County:
(i) Northwest Branch watershed upstream of Maryland Route 410 to Norwood Road	[2] 0
(ii) Izaak Walton Pond	[2] 0
(iii) Pine Lake	[2] 1
(iv)—(ix) (text unchanged)
(x) Martin Luther King, Jr. Park Pond	[2] 1
(xi)—(xviii) (text unchanged)
(xix) Warfield Park Pond	[0] 1
(l) Washington County:
(i)—(iii) (text unchanged)
(iv) Indian Springs Pond	[2] 0
(v)— (ix) (text unchanged)
(m)—(n) (text unchanged)

C.—H. (text unchanged)

I. Youth Trout Fishing Day.

(1) Youth trout fishing day is the Saturday before the last Saturday in March in areas designated as Closure 1 [or Closure 2] in §B of this regulation.

(2)—(4) (text unchanged)

J. (text unchanged)

JOSH KURTZ

Title 10
MARYLAND DEPARTMENT OF HEALTH

Subtitle 24 MARYLAND HEALTH CARE COMMISSION

10.24.01 Procedural Regulations for Health Care Facilities and Services

Authority: Health-General Article, §§19-109(a)(1) and (8), 19-116(b), 19-118(d), 19-120, 19-120.1, 19-120.2 and 19-126, et seq., Annotated Code of Maryland

Notice of Proposed Action

[24-155-P]

The Maryland Health Care Commission proposes to amend existing Regulations .01, .03, and .12, adopt new Regulation .21, and recodify existing Regulations .21 and .22 to be Regulations .22 and .23 under COMAR 10.24.01 Procedural Regulations for Health Care Facilities and Services. This action was considered by the Commission at an open meeting held on September 19, 2024, notice of which was given through publication in the Maryland Register, under General Provisions Article, §3-302(c), Annotated Code of Maryland.

Statement of Purpose

The purpose of this action is to adopt regulations to implement the provisions of legislation passed by the Maryland General Assembly in 2024. The legislation changed the review and approval process for the acquisition of a nursing home. SB1000/HB1122 (Chs. 816 and 817). The legislation requires the Commission to adopt regulations to implement the provisions of the 2024 legislation; thus, amendments are necessary to COMAR 10.24.01 Procedural Regulations for
Health Care Facilities and Services.

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Deanna Dunn, Health Facilities Coordinator, Maryland Health Care Commission, 4160 Patterson Avenue, Baltimore, MD 21215, or call 410-764-3276, or email to mhcc_regs.comment@maryland.gov. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

Open Meeting

Final action on the proposal will be considered by the Maryland Health Care Commission during a public meeting to be held on January 16, 2025 at 1:00 pm, at 4160 Patterson Avenue, Baltimore, MD 21215.

.01 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1)—(16) (text unchanged)

(17) “Comprehensive care facility” means a nursing home as defined at §19-1401, Health-General Article, Annotated Code of Maryland.

[(17)](18) —[(43)](44) (text unchanged)

[(44)] (45) “Merged asset system” means an organization comprised of [one] two or more regulated health care facilities under common ownership or control.

[(45)](46) — [(46)](47) (text unchanged)

(48) “Nursing home” has the meaning stated at §19-1401, Health-General Article, Annotated Code of Maryland.

[(47)] (49) — [(63)](65) (text unchanged)

.03 Non-Coverage by Certificate of Need or Other Commission Approval.

A. Acquisition of an Existing Health Care Facility.

(1) At least 30 days before closing on a contract to acquire a health care facility, the person acquiring the facility shall notify the Commission in writing, with a copy to the local health officer in each affected jurisdiction and the appropriate State licensing agency, of the intent to acquire the facility, and include the following information:

(a)—(b) (text unchanged)

(c) Complete organizational charts that describe the ownership of the health care facility prior to and after the proposed acquisition; [and]

(d) A description of any unsatisfied conditions imposed by the Commission on the facility and an affirmation that the person acquiring the facility will abide by any conditions still in effect; and

[(d)] (e) (text unchanged)

(2) Deemed Approval.

(a) Except for acquisitions of a [comprehensive care facility established under §I of this regulation] nursing home, CON review is not required if Commission staff does not issue either a determination of coverage or notice that timely or complete notice was not received within 60 days of receipt of a notice from the person acquiring the health care facility.

(b) (text unchanged)

(3)—(4) (text unchanged)

(5) Conditions imposed by the Commission on a health care facility survive an acquisition of the facility.

B. Acquisition of a [Comprehensive Care Facility] Nursing Home, Home Health Agency, or Hospice.

(1) In addition to providing the information required in §A of this regulation, a person seeking to acquire a nursing home shall obtain approval for the acquisition in accordance with Regulation .21 of this chapter.

[(1)] (2) In addition to providing the information required in §A of this regulation, a person seeking to acquire a [comprehensive care facility,] home health agency[,] or hospice shall:

(a)—(d) (text unchanged)

[(2)] (3) Disqualification for Acquisition. A [comprehensive care facility] nursing home, home health agency, or hospice may not be acquired by an entity if an owner or member of senior management or an owner or member of senior management of a related or affiliated entity of the acquiring entity has been convicted of a felony or crime or pleaded guilty, nolo contendere, entered a best interest plea of guilty, or received a diversionary disposition regarding a felony or crime within the last 10 years, unless:

(a)—(c) (text unchanged)

[(3)] (4) (text unchanged)

C. (text unchanged)

D. Temporary Delicensure or Suspension of Bed Capacity, Health Care Facility, or CON-Approved Service.

(1) (text unchanged)

(2) Temporary Delicensure of Nursing Home Bed Capacity after an Acquisition.

(a) A temporary delicensure of licensed bed capacity or a licensed and operating nursing home following an acquisition does not require CON review, and the Commission will retain the bed capacity or the nursing home on its inventory for up to 3 years immediately following the acquisition, if the person who acquired the nursing home:

(i) Provides written notice to the Commission at least 30 days before the proposed temporary delicensure;

(ii) Demonstrates the temporary delicensure is needed to reduce the number of resident rooms that contain more than 2 beds;

(iii) States the intention either to bring the bed capacity back onto the facility's license or relicense the health care facility at the end of the 3-year period, or to notify the Commission that it intends to take another of the actions permitted under §D of this regulation; and

(iv) Has received authorization from the Executive Director for the temporary delicensure.

(b) The Executive Director may extend the period of a temporary delicensure under §D of this regulation beyond 3 years for good cause including:

(i) Demonstrated progress toward eliminating multi-bedded rooms by expanding the existing facility;

(ii) A pending or approved application for a CON or exemption from CON review to relocate the beds to another existing or new facility;

(iii) Evidence of physical or legal constraints; or

(iv) Evidence of good faith negotiations to sell the beds.

[(2)] (3) — [(9)] (10) (text unchanged)

E.—K. (text unchanged)

.12 Holder Responsibilities and Penalties for Noncompliance.

A.—D. (text unchanged)

E. Enforcement. The Commission may impose financial penalties, withdraw a CON or other Commission approval, or both, if it finds that:

(1) The [holder] person who obtained Commission approval made a material misrepresentation upon which the Commission relied in approving the application or issuing first use approval;

(2)—(3) (text unchanged)

(4) The [holder] person who obtained Commission approval failed to meet a condition on the approval;

(5)—(7) (text unchanged)

F.—I. (text unchanged)

.21 Acquisitions of Nursing Homes.

A. Notice of Transfers of Ownership.

(1) A person shall provide notice to the Commission at least 30 days before the change of ownership of a nursing home, including changes in ownership of real property and improvements, bed rights, or operatorship, that:

(a) Involves at least a 5 percent transfer in ownership interest; and

(b) Is not an acquisition that requires approval under §B of this regulation.

(2) The notice required by §A(1) of this regulation shall be in a form required by the Commission and include:

(a) A description of the change in ownership interest;

(b) Complete organizational charts for all persons holding at least a 5 percent ownership interest in the nursing home prior to and following the proposed transfer;

(c) An attestation that the change does not require approval under §B of this regulation; and

(d) Any other information requested by the Commission.

B. Request for Acquisition Approval.

(1) Applicability.

(a) This section does not apply to an acquisition that involves only changes of ownership interests among existing owners of a nursing home.

(b) This section applies to:

(i) Transfers of stock or assets of the owner of the real property and improvements, bed rights, or operation of the nursing home, or any combination thereof;

(ii) An affiliation agreement between non-profit entities that changes the person who controls a nursing home’s operation or assets; and

(iii) A lease agreement that changes the person who controls a nursing home’s operation or assets.

(2) At least 60 days before closing on an acquisition of a nursing home, a person shall:

(a) Submit to the Commission a request for acquisition approval in a form prescribed by the Commission; and

(b) Provide notice, in the form prescribed by the Commission, to the residents, resident representatives, and employees of the nursing home that:

(i) The request for acquisition approval was submitted to the Commission; and

(ii) They have the right to submit comments.

(3) Notice by the Commission to the Public, and Other State Agencies. Within 5 days after it receives a complete request for acquisition approval, the Commission shall:

(a) Submit notice of its receipt and the deadline for residents, resident representatives and employees of the nursing home to submit comments on the proposed acquisition:

(i) To at least one newspaper of general circulation in the affected area;

(ii) To be published in the next available issue of the Maryland Register; and

(iii) On the Commission’s website; and

(b) Provide notice of the request to:

(i) The Secretary or the Secretary’s designee;

(ii) The Office of the Attorney General;

(iii) The Secretary of Aging; and

(iv) The State Long-Term Care Ombudsman Program.

C. Executive Director Action.

(1) The Executive Director shall review a request for acquisition approval within 45 days after receiving the completed request from the applicant.

(2) The Executive Director, in consultation with the Secretary or the Secretary’s designee, may:

(a) Approve the acquisition;

(b) Approve the acquisition with conditions;

(c) Deny the acquisition; or

(d) Refer the request for acquisition approval to the Commission for a final decision.

(3) To approve a request for acquisition approval, the Executive Director must find that the acquisition:

(a) Is consistent with COMAR 10.24.20, the State Health Plan chapter for Comprehensive Care Facility (Nursing Home) Services; and

(b) Is in the public interest.

(4) In determining whether an acquisition of a nursing home is in the public interest, the Executive Director shall:

(a) Consider comments from individuals who:

(i) Reside in the nursing home;

(ii) Have family members who reside in the nursing home; or

(iii) Are employed as employees of the nursing home;

(b) Consult with the Attorney General on whether the acquisition raises public interest concerns.

D. Commission Action. If the Executive Director refers a request for acquisition approval to the Commission under §C(2)(d) of this regulation , the Commission shall use the criteria specified in §C(3) and (4) of this regulation to make a final decision within 60 days after receiving the completed request from the applicant.

E. The Commission shall promptly send a copy of the decision of the Executive Director or Commission on a request for acquisition approval to the Secretary, the Secretary of Aging, the Office of Health Care Quality, the Office of the Attorney General, and the State Long–Term Care Ombudsman.

F. Appeal.

(1) Commission Review of Executive Director Decision.

(a) A person who is a party to the acquisition may seek Commission review of an Executive Director’s decision denying the request or imposing a condition on approval.

(b) A request for review of an Executive Director’s decision:

(i) Shall be filed within 15 days after the issuance of a decision;

(ii) Shall specifically identify each finding and conclusion to which review is requested; and

(iii) May include a request for oral argument.

(c) The Commission shall review the Executive Director’s decision within 45 days of the request for review.

(2) Judicial Review.

(a) A decision of the Commission under §D or §F(1) of this regulation shall be a final decision for the purpose of judicial review.

(b) A person that is a party to the acquisition may take a direct judicial appeal within 30 days after the Commission makes the final decision.

G. Annual Reports.

(1) On or before July 1 immediately following the acquisition of a nursing home and each year for 3 years thereafter, the person that acquired the nursing home shall submit a report to the Commission in accordance with COMAR 10.24.20.

(2) The Commission shall provide a copy of the report required under §G(1) of this regulation to the Secretary, the Secretary of Aging, the Office of Health Care Quality, the Office of the Attorney General, and the State Long–Term Care Ombudsman.

RANDOLPH S. SERGENT, Esq.
Chair

10.24.20 State Health Plan for Facilities and Services: Comprehensive Care Facility Services

Authority: Health-General Article, §§19-103, 19-109(a)(1), 19-114, 19-118, [and 19-120(f) and (h)] 19-120, 19-120.2, 19-123, and 19-124, Annotated Code of Maryland

Notice of Proposed Action

[24-154-P-I]

The Maryland Health Care Commission proposes to repeal existing Regulation .01 and adopt new Regulation .01 under COMAR 10.24.20 State Health Plan for Facilities and Services: Comprehensive Care Facility Services. This action was considered by the Commission at an open meeting held on September 19, 2024, notice of which was given through publication in the Maryland Register, under General Provisions Article, §3-302(c), Annotated Code of Maryland.

Statement of Purpose

The purpose of this action is to adopt regulations to implement the provisions of the legislation that the Maryland General Assembly passed in 2024 (SB1000/HB1122, Chs. 816 and 817). The legislation changed the review and approval process for the acquisition of a nursing home, giving the Commission the authority to approve the acquisition, approve the acquisition with conditions, deny the acquisition, or refer the request for acquisition to the Commission for a final decision. The Maryland Department of Health cannot issue a license to an acquired nursing home unless the acquisition was approved by the Commission. The legislation requires the Commission to adopt regulations to implement the provisions of the 2024 legislation; thus, updates are necessary to COMAR 10.24.20, the State Health Plan chapter governing nursing homes.

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Open Meeting

Final action on the proposal will be considered by Maryland Health Care Commission during a public meeting to be held on January 16, 2025 at 1:00 pm, at 4160 Patterson Avenue, Baltimore, MD 21215.

Editor’s Note on Incorporation by Reference

Pursuant to State Government Article, §7-207, Annotated Code of Maryland, State Health Plan for Facilities and Services: Comprehensive Care Facility (Nursing Home) Services has been declared a document generally available to the public and appropriate for incorporation by reference. For this reason, it will not be printed in the Maryland Register or the Code of Maryland Regulations (COMAR). Copies of this document are filed in special public depositories located throughout the State. A list of these depositories was published in 51:1 Md. R. 8 (January 12, 2024), and is available online at www.dsd.maryland.gov. The document may also be inspected at the office of the Division of State Documents, 16 Francis Street, Annapolis, Maryland 21401.

.01 Incorporation by Reference.

The State Health Plan for Facilities and Services: Comprehensive Care Facility (Nursing Home) Services is incorporated by reference.

RANDOLPH S. SERGENT, ESQ.
Chair, Maryland Health Care Commission

Title 11
DEPARTMENT OF TRANSPORTATION

Subtitle 13 MOTOR VEHICLE ADMINISTRATION—VEHICLE EQUIPMENT

11.13.13 Golf Cart

Authority: Transportation Article, §§12-104(b), 13-402, and 21-104.2, Annotated Code of Maryland

Notice of Proposed Action

[24-153-P]

The Administrator of the Motor Vehicle Administration proposes to adopt new Regulations .01—.03 under a new chapter, COMAR 11.13.13 Golf Cart.

Statement of Purpose

The purpose of this action is to provide minimum requirements for the operation of a golf cart on designated county and municipal highways approved under municipalities’ respective jurisdictions. This action is required by the passage of Chapter 491 (S.B. 316), Acts of 2024.

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Tracey C. Sheffield, Regulations Coordinator , MVA, 6601 Ritchie Highway N.E., Room 200 Glen Burnie, MD 21062, or call 410-768-7545, or email to tsheffield@mdot.maryland.gov. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

.01 Purpose.

The purpose of this chapter is to provide minimum requirements for the operation of a golf cart on designated county and municipal highways.

.02 Definitions.

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Golf cart" means a small, four-wheeled vehicle powered by a gasoline or electric motor with:

(a) Seating designed to carry more than one occupant;

(b) A maximum capable speed of not more than 20 miles per hour;

(c) A windshield; and

(d) A steering wheel.

(2) “Golf cart” does not mean:

(a) A motor vehicle as defined in Transportation Article, §11-135, Annotated Code of Maryland;

(b) A low-speed vehicle as defined in Transportation Article, §11-130.1, Annotated Code of Maryland;

(c) An off highway recreational vehicle as defined in Transportation Article, §11-140.1, Annotated Code of Maryland; or

(d) A motor vehicle capable of being registered as any other vehicle classification under the Transportation Article of the Annotated Code of Maryland.

.03 Equipment Requirements.

A. To operate a golf cart on a designated county or municipal highway, the golf cart shall be equipped with:

(1) Red reflectors at the rear of the vehicle, and yellow or amber reflectors to the front and sides of the vehicle;

(2) At least one red tail lamp to illuminate the rear of the vehicle, and to indicate the direction of travel;

(3) At least one amber or yellow park lamp to illuminate the front of the vehicle, and to indicate the direction of travel; and

(4) At least one white projecting beam lamp (head lamp) mounted so that the lamp does not adversely affect the vision of the operators of other vehicles.

B. Other Department of Transportation (DOT) automotive lighting equipment may be installed on the golf cart, but is not required to be in place.

C. Off-road type lighting equipment including spotlights, floodlights, and other lights that are not intended for vehicle on road use, may not be operated while the golf cart is being operated on designated highways, including road shoulders.

CHRISTINE NIZER
Administrator, Motor Vehicle Administration

Subtitle 17 MOTOR VEHICLE ADMINISTRATION—DRIVER LICENSING AND IDENTIFICATION DOCUMENTS

11.17.14 Driver Knowledge and Skills Test

Authority: Transportation Article, §§11-109, 12-104(b), 16-105, 16-110, and 16-807, Annotated Code of Maryland;49 CFR §§383.123 and 383.77

Notice of Proposed Action

[24-149-P]

The Administrator of the Motor Vehicle Administration proposes to amend Regulation .06 under COMAR 11.17.14 Driver Knowledge and Skills Tests.

Statement of Purpose

The purpose of this action is to conform the regulations to existing practice allowing the Administration to offer the commercial driver’s license hazardous material knowledge test, written or electronic format, in other languages besides English.

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Tracey C. Sheffield, Regulations Coordinator , MVA, 6601 Ritchie Highway N.E. Room 200, Glen Burnie, MD 21062, or call 410-768-7545, or email to tsheffield@mdot.maryland.gov. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

.06 Administration of Commercial Driver's License Knowledge Tests.

A.—C. (text unchanged)

D. The Administration shall offer the commercial driver’s license hazardous material knowledge test in a written or electronic format only [and only in the English language].

E.—F. (text unchanged)

CHRISTINE NIZER
Administrator, Motor Vehicle Administration

Title 14
INDEPENDENT AGENCIES

Subtitle 39 INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION

14.39.02 Administration of the Public School Construction Program

Authority: Education Article, §§4-126, 5-303, and 5-308; State Finance and Procurement Article, §§5-7B-07; Annotated Code of Maryland

Notice of Proposed Action

[24-137-P]

The Interagency Commission on School Construction proposes to amend Regulation .12 under COMAR 14.39.02 Administration of the Public School Construction Program.

Statement of Purpose

The purpose of this action is to reference the accurate definition of modular construction within the Interagency Commission on School Construction's subtitle of COMAR.

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Victoria Howard, Policy Analyst, Interagency Commission on School Construction, 351 W Camden St. Suite 701 Baltimore MD 21201, or call 410-767-0600, or email to victoria.howard@maryland.gov. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

.12 Eligible Expenditures

The following expenditures may be eligible for State funding:

A.—B. (text unchanged)

C. New construction, as follows:

(1)—(3) (text unchanged)

(4) Modular construction, that is, factory-fabricated structures that have the same quality systems and materials as used for permanent school construction and that meet the standards of the COMAR [05.02.04] 09.12.52;

D.—M. (text unchanged)

ALEX DONAHUE
Executive Director

Title 21
STATE PROCUREMENT REGULATIONS

Notice of Proposed Action

[24-157-P]

The Board of Public Works proposes to:

(1) Amend Regulation .01 under COMAR 21.01.02 Terminology;
(2) Amend Regulation .04 and .05 under COMAR 21.02.01 Board of Public Works;
(3) Amend Regulation .02 under COMAR 21.03.05 Electronic Transactions;
(4) Amend Regulation .01 under COMAR 21.05.03 Procurement by Competitive Sealed Proposals;
(5) Amend Regulation .06 under COMAR 21.05.07 Small Procurement Regulations ($100,000 or Less);
(6) Amend Regulation .07 under COMAR 21.05.08 Mandatory Written Solicitation Requirements;
(7) Amend Regulation .02 under COMAR 21.05.12 Procurement of Human, Social, Cultural, and Educational Services;
(8) Adopt new Regulations .01— .05 under new chapter COMAR 21.05.16 Proof of Concept Procurement;
(9) Amend Regulations .08, .26, and .31 under COMAR 21.07.01 Mandatory Contract Provisions;
(10) Amend Regulations .05-2 and .10 under COMAR 21.07.02 Mandatory Construction Contract Clauses; [
(11) Amend Regulations .06, .26 and .27 under COMAR 21.07.03 Mandatory Terms and Conditions for Purchase Orders Over $50,000;
(12) Adopt Regulations ,.01,.02 under a new chapter COMAR 21.07.04 Prohibited Provisions;

(13) Amend Regulation .02 under COMAR 21.10.02 Protests;
(14) Amend Regulations .01—.08 under COMAR 21.10.08 Prompt Payment of Subcontractors;
(15) Amend Regulations .01, .02, .05, and .06 under COMAR 21.11.01 Small Business Procurements;
(16) Amend Regulations .03 and .17 under COMAR 21.11.03 Minority Business Enterprise Policies;
(17) Amend Regulations .04 and .06 under COMAR 21.11.05 Procurement from Maryland Correctional Enterprises, Blind Industries and Services of Maryland, and the Employment Works Program;
(18) Amend Regulation .03 under COMAR 21.13.01 Reporting Requirements; and

This action was considered at the Board of Public Works meeting held on October 2, 2024.

Statement of Purpose

The purpose of this action is to amend and adopt new regulations in COMAR Title 21 to implement recently enacted legislation and revise the same for purposes of clarification and internal consistency.

Estimate of Economic Impact

The proposed action has no economic impact.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Rachel Hershey, General Counsel, Board of Public Works, 80 Calvert St., Suite 117 Annapolis, MD 21401, or call 410-260-7335, or email to rachel.hershey3@maryland.gov. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

Subtitle 01 GENERAL PROVISIONS

21.01.02 Terminology

Authority: State Finance and Procurement Article, §§3.5-301, 11-101, 12-101, 13-101 and 13-108, Annotated Code of Maryland.

.01 Definitions.

A. (text unchanged)

B. Terms Defined

(1)—(79) (text unchanged)

(80) “Small business” means a business as defined in State Finance and Procurement Article, [§14-501[(b)] §14-501 (d), Annotated Code of Maryland.

(81)—(85) (text unchanged)

(86) “Supplier” means a person that has supplied labor or materials to a contractor in the prosecution of work provided for in a state procurement contract.

[(86)] (87) Supplies.

(a) “Supplies” means all tangible personal property, including equipment, and leases of equipment, including necessarily associated services.

(b) “Supplies” does not include an interest in real property or tangible personal property acquired or used in connection with an energy performance contract.

[(87)] (88) (text unchanged)

[(88)] (99) (text unchanged)

Subtitle 02 STATE PROCUREMENT ORGANIZATION

21.02.01 Board of Public Works

Authority: Education Article, §§14-204, 14-205, and 14-405; State Finance and Procurement Article, §§12-101, 12-107, 12-202, 12-203, 12-204, 12-301, 12-302, 13-108, and 15-112; Annotated Code of Maryland

.04 Delegation of Procurement and Contracting Authority.

A. [Repealed.] Notwithstanding the following delegations in §B of this regulation, a contract funded with general obligation bond proceeds must be approved by the Board regardless of amount in accordance with State Finance and Procurement Article, §8-301, Annotated Code of Maryland.

B. The Department of General Services. The Board hereby delegates authority to the Secretary of General Services for the approval and award of the following procurement contracts within the Department’s jurisdiction:

(1) Except for insurance, insurance related, banking, investment, and financial services, the following contracts, contract actions, and awards: Capital construction contracts, construction-related services contracts, information technology contracts, including information processing equipment, cloud computing equipment and associated services, and information technology system modernization, as provided in State Finance and Procurement Article, Title 3.5, Subtitle 3, Annotated Code of Maryland, telecommunication equipment systems or services as provided in State Finance and Procurement Article, Title 3.5, Subtitle 4, Annotated Code of Maryland, service contracts, architectural and engineering contracts, maintenance contracts, contracts for rental vehicles supplied to using agencies in accordance with COMAR 21.02.05.08, secondary competition awards, renewal options, and modifications in accordance with COMAR 21.05.13.06, capital construction change orders, capital construction-related service change orders, information processing equipment and associated services change orders, cloud computing services change orders, and information technology system and cybersecurity upgrades change orders in accordance with State Finance and Procurement Article, Title 3.5, Subtitle 3, in the amount of $200,000 or less;

(2) [For any single item of equipment or single equipment lease, equipment contracts and leases of equipment in the amount of $200,000 or less, unless funded with general obligation bond proceeds which must be approved by the Board regardless of amount.] All contracts for the purchase of commodities or supplies, except as provided in §B(3) of this regulation and except for insurance and insurance-related services.

(3) [Contract modifications, excluding construction contract change orders, that:

(a) Do not materially change the scope of the original contract;

(b) Individually do not change the amount of the contract, or any cost component of the contract, by more than $50,000; or

(c) Exercise by a using agency a contract option of $200,000 or less;] Contracts or Leases that Include any Single Item of Equipment That is $200,000 or Less. Contracts or leases including any single item of equipment that is more than $200,000 must be approved by the Board.

(4) (text unchanged)

(5) [All contracts for the purchase of commodities and supplies, except for contracts for single items of equipment or single equipment leases in an amount over $200,000;] Contract modifications, excluding construction contract change orders, that:

(a) Do not materially change the scope of the original contract;

(b) Individually do not change the amount of the contract, or any cost component of the contract, by more than $50,000; or

(c) Exercise by a using agency a contract option of $200,000 or less;

(6)—(11) (text unchanged)

C. The Department of Transportation.

(1) The Board hereby delegates authority to the Secretary of Transportation and to the Maryland Transportation Authority for the approval and award of the following procurement contracts within their respective jurisdictions:

(a)—(d) (text unchanged)

(e) [For any single item of equipment or single equipment lease within the procurement authority of the Secretary of Transportation or the Maryland Transportation Authority, equipment contracts and leases of equipment in the amount of $200,000 or less unless funded with general obligation bond proceeds, which must be approved by the Board regardless of amount;] All contracts for transportation-related commodities and supplies, including equipment contracts and leases, but excluding equipment contracts and leases including any single item of equipment that is more than $200,000;

(f)—(h) (text unchanged)

(i) [Supplies and services for aeronautics-related activities;] All procurements for aeronautics related services, commodities and supplies, including equipment contracts and leases, but excluding banking, insurance, insurance-related, investment, and financial services; and

(j) (text unchanged)

(2) (text unchanged)

D.—E. (text unchanged)

F. Maryland Port Commission. The Board hereby delegates authority to the Chairman of the Maryland Port Commission for the approval and award of the following procurement contracts within the Maryland Port Commission’s jurisdiction:

(1)— (4) (text unchanged)

(5) [For any single item of equipment or single equipment lease within the procurement authority of the Maryland Port Commission, equipment contracts and leases of equipment in the amount of $200,000 or less unless funded with general obligation bond proceeds, which must be approved by the Board regardless of amount;] Except as provided in §F(6) of this regulation, contracts for the purchase of commodities and supplies, including motor vehicles and information technology supplies, but excluding insurance and insurance-related services;

(6) [Service contracts for the Maryland Port Administration, including information technology services, but excluding banking, insurance, and financial services, in the amount of $200,000 or less;] Contracts or leases within the procurement authority of the Maryland Port Commission that include any single item of equipment that is $200,000 or less, and contracts or leases that include any single item of equipment that is more than $200,000 must be approved by the Board.

(7) (text unchanged)

(8) [Contracts for the purchase by the Maryland Port Administration of commodities and supplies:

(a) Including:

(i) Motor vehicles; and

(ii) Information technology supplies; but

(b) Excluding:

(i) Insurance and insurance-related services;

(ii) Commodities and supplies funded by State general obligation bond proceeds;] Service contracts for the Maryland Port Administration in the amount of $200,000 or less, including information technology services, but excluding banking, insurance, insurance-related, investment, and financial services;

(9)— (11) (text unchanged)

G.—I. (text unchanged)

.05 Review and Approval of the Award of Procurement Contracts.

A. (text unchanged)

B. Procurement Agency Activity Reports (PAAR).

(1)—(4) (text unchanged)

(5) The PAAR shall be delivered by the Departments directly to the Secretary to the Board of Public Works, not later than the [second] last Wednesday of the month following the reporting period, for inclusion as an item on the next Board Secretary’s Action Agenda.

C. (text unchanged)

Subtitle 03 STATE PROCUREMENT REGULATIONS AND CONTRACTS

21.03.05 Electronic Transactions

Authority: Commercial Law Article, §§21-101—21-120; State Finance and Procurement Article, §§11-204, 11-206, 12-101, 13-226, and 15-210; Annotated Code of Maryland

.02 Solicitation Requirements.

A. Each solicitation and contract shall state whether electronic transactions are permitted or required for that procurement consistent with law and regulation. If the solicitation or contract does not specify that electronic transactions are permitted or required, bidders and offerors may not use electronic means for any part of the procurement except as otherwise provided for in law or regulation, including COMAR 21.10.02.02.

B. (text unchanged)

Subtitle 05 PROCUREMENT METHODS AND PROJECT DELIVERY METHODS

21.05.03 Procurement by Competitive Sealed Proposals

Authority: State Finance and Procurement Article, §§12-101, 13-104, 13-105, Annotated Code of Maryland

.01 Preference.

Procurement by competitive sealed proposals is the preferred method for:

A. The procurement of human, social, cultural or educational services; [and]

B. Real property leases[.]; and

C. Security services with an expected value that is greater than $1,000,000.

21.05.07 Small Procurement Regulations ($100,000 or Less)

Authority: State Finance and Procurement Article, §§12-101, 13-109, 14-301—14-308, 14-406, and 15-226, Annotated Code of Maryland

.06 Standards.

A.—F. (text unchanged)

G. Contract Clauses. In addition to the contract elements specified in §F of this regulation, a written small procurement contract may include the clauses, items, or conditions specified below as well as those additional clauses necessary for the particular procurement. The language of the following clauses is preferred:

(1)— (8) (text unchanged)

(9) Prompt Payment of Subcontractors

(a) This contract and all subcontracts issued under this contract at any tier are subject to the provisions of State Finance and Procurement Article, §15-226, Annotated Code of Maryland, and COMAR 21.10.08. In §G(9)(a)—(d) of this regulation, the terms “undisputed amount”, “prime contractor”, “contractor”, [and] “subcontractor”, and “supplier” have the meanings stated in COMAR 21.10.08.01.

(b) A contractor shall promptly pay its subcontractors and suppliers an undisputed amount to which a subcontractor or supplier is entitled for work performed under this contract within 10 days after the contractor receives a progress payment or final payment for work under this contract.

(c) If a contractor fails to make payment within the period prescribed in §G(9)(b) of this regulation, a subcontractor or supplier may request a remedy in accordance with COMAR 21.10.08.

(d) (text unchanged)

H—J. (text unchanged)

21.05.08 Mandatory Written Solicitation Requirements

Authority: Election Law Article, §§14-101—14-108; State Finance and Procurement Article, §§3-412, 3.5-311, 11-206, 12-101, 13-207, 13-218, 13-221, 14-303, 14-308, 14-406, 16-102, 16-202, 16-203, 17-401—17-402, and Title 19; Annotated Code of Maryland; Ch. 293, Acts of 2009

.07 Bid/Proposal Affidavit.

A. (text unchanged)

B. Mandatory Solicitation Addendum. The solicitation addendum shall be in substantially the same form as follows and include all certification language required by the State Finance and Procurement Article, Annotated Code of Maryland:

BID/PROPOSAL AFFIDAVIT

A. Authority (text unchanged)

B. CERTIFICATION REGARDING COMMERCIAL NONDISCRIMINATION

[The undersigned bidder hereby certifies and agrees that the following information is correct: In preparing its bid on this project, the bidder has considered all proposals submitted from qualified, potential subcontractors and suppliers, and has not engaged in “discrimination” as defined in §19-103 of the State Finance and Procurement Article of the Annotated Code of Maryland. “Discrimination” means any disadvantage, difference, distinction, or preference in the solicitation, selection, hiring, or commercial treatment of a vendor, subcontractor, or commercial customer on the basis of race, color, religion, ancestry, or national origin, sex, age, marital status, sexual orientation, sexual identity, genetic information or an individual’s refusal to submit to a genetic test or make available the results of a genetic test, disability, or any otherwise unlawful use of characteristics regarding the vendor’s, supplier’s, or commercial customer’s employees or owners. “Discrimination” also includes retaliating against any person or other entity for reporting any incident of “discrimination”. Without limiting any other provision of the solicitation on this project, it is understood that, if the certification is false, such false certification constitutes grounds for the State to reject the bid submitted by the bidder on this project, and terminate any contract awarded based on the bid. As part of its bid or proposal, the bidder herewith submits a list of all instances within the past 4 years where there has been a final adjudicated determination in a legal or administrative proceeding in the State of Maryland that the bidder discriminated against subcontractors, vendors, suppliers, or commercial customers, and a description of the status or resolution of that determination, including any remedial action taken. Bidder agrees to comply in all respects with the State’s Commercial Nondiscrimination Policy as described under Title 19 of the State Finance and Procurement Article of the Annotated Code of Maryland.]The undersigned bidder hereby certifies and agrees that the following information is correct: In preparing its bid on this project, the bidder has considered all proposals submitted from qualified, potential subcontractors and suppliers, and has not engaged in “discrimination” as defined in §19–103 of the State Finance and Procurement Article of the Annotated Code of Maryland; to wit: discrimination in the solicitation, selection, or commercial treatment of any subcontractor, vendor, supplier, or commercial customer on the basis of race, color, religion, ancestry or national origin, sex, age, marital status, sexual orientation, gender identity, or on the basis of disability or other unlawful forms of discrimination. Without limiting the foregoing, “discrimination” also includes retaliating against any person or other entity for reporting any incident of “discrimination”. Without limiting any other provision of the solicitation for bids on this project, it is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid submitted by the bidder on this project, and terminate any contract awarded based on the bid. As part of its bid or proposal, the bidder shall provide to the State a list of all instances within the immediate past 4 years where there has been a final adjudicated determination in a legal or administrative proceeding in the State of Maryland that the bidder discriminated against its subcontractors, vendors, suppliers, or commercial customers, and a description of the status or resolution of that complaint, including any remedial action taken. As a condition of submitting a bid or proposal to the State, the bidder agrees to comply with the State’s Commercial Nondiscrimination Policy as described under Title 19 of the State Finance and Procurement Article of the Annotated Code of Maryland.”

B-1—N (text unchanged)

21.05.12 Procurement of Human, Social, Cultural, and Educational Services

Authority: State Finance and Procurement Article, §§12-101, 13-102, 13-104, 13-106, 13-108, and 13-109, Annotated Code of Maryland

.02 Notice of Certain Contracts.

A. (text unchanged)

B. Contracts with Government Entities.

[(1) This section applies to any award, renewal, or extension of a human, social, or educational services contract with a State agency, a political subdivision of the State, or other government, that results in a total contract price of more than [$25,000] $50,000.

(2) ]The procuring unit shall give notice in eMaryland Marketplace of [the contract ] any award, extension, or renewal of a human, social, or educational services contract with a State agency, a political subdivision of the State, or other government, that results in a total contract price of more than [$25,000] $50,000 [extension, or renewal], not more than 30 days after the approval and execution of the contract, extension, or renewal.

21.05.16 Proof of Concept Procurement

Authority: State Finance and Procurement Article, §§12-101, 13-102, 13-116, and 14-303, Annotated Code of Maryland; Ch. 774, Acts of 2017

.01 Proof of Concept Definitions and Procedures.

A. “Proof of concept” means a test, evaluation, demonstration, or pilot project of a good, service, or technology in a real–world environment to evaluate whether the good, service, or technology can be successfully deployed and is beneficial to the State, in accordance with State Finance and Procurement Article, §13-116(A), Annotated Cod of Maryland.

B. A “Competitive Proof of Concept Procurement” means a formal competitive procurement method that may be used to solicit proposals for the conduct of a proof of concept prior to full implementation when the head of a unit determines the process to be appropriate and in the best interests of the unit, including:

(1) Testing software–as–a–service or off–the–shelf software;

(2) Testing new, innovative products or services; or

(3) Testing a product or service conceptualized or conceived of by a unit of State government, in accordance State Finance and Procurement Article, §13-116(B)(1), Annotated Code of Maryland.

C. After obtaining the approval of the head of the procurement agency and before conducting a competitive proof of concept procurement, the procuring unit shall obtain approval from the Secretary of Information Technology, or the Secretary’s Designee.

D. The Secretary of Information Technology may grant approval for a competitive proof of concept procurement if the procuring unit:

(1) Has sufficient internal resources to manage the proof of concept, including human capital, subject matter expertise, and technological infrastructure, or has the means to obtain these resources; and

(2) Enters into a memorandum of understanding with the Department of Information Technology that requires regular status updates, vendor capacity, and any other information necessary for the Department of Information Technology to evaluate whether the proof of concept can be successfully deployed and is beneficial to the State.

.02 Proof of Concept Solicitation.

A. A competitive proof of concept procurement:

(1) May be conducted through the issuance of a solicitation by any method of procurement authorized under COMAR 21.05.01.01; and

(2) Shall include a statement of the following:

(a) The scope of work or project description, including

(i) The intended use;

(ii) Quantity;

(iii) Estimated time frame for the proof of concept; and

(iv) Anticipated number of proof of concept awards that will be made;

(b) The factors, including price, that will be used in evaluating proposals and the relative importance of each.

B. A competitive proof of concept procurement solicitation may be distributed to vendors known to offer goods or services within the scope of the proof of concept and shall, except for procurements less than $15,000 not otherwise required by law to be posted, be posted on eMaryland Marketplace Advantage.

.03 Proof of Concept Evaluation.

A. After receipt of proposals but before award of a procurement contract, a unit may:

(1) Conduct discussions with an offeror to ensure full understanding of

(a) The requirements of the unit, as set forth in the request for proposals; and

(b) The proposal submitted by the offeror; and

(2) Request product samples for testing by the unit or a demonstration of a product or service and use these samples or demonstrations in its evaluation process.

B. A request for product samples for testing or demonstration made under §A(2) of this regulation shall be issued to all offerors deemed reasonable at the time of the request.

.04 Proof of Concept Award.

A unit may award one or more of the proposals a contract for the proof of concept.

.05 Eligibility for Subsequent Implementation Procurements.

A person awarded a proof of concept procurement shall be eligible to bid on a procurement to implement a proposal related to the Proof of Concept procurement.

Subtitle 7 CONTRACT TERMS AND CONDITIONS

21.07.01 Mandatory Contract Provisions—All Contracts (except as provided under COMAR 21.05.07, 21.07.02, and 21.07.03)

Authority: Election Law Article, §§14-101—14-108; General Provisions Article, §§5-101 and 5-503; State Finance and Procurement Article, §§12-101, 13-211, 13-217—13-219, 13-221—13-223, 13-317, 15-226 ,16-202, 17-401, 17-402, and 19-114; Annotated Code of Maryland; Chs. 588, 589, and 630, Acts of 2017; Ch. 403, Acts of 2019

.08 Nondiscrimination in Employment.

Mandatory provision for all contracts. The following clause is preferred:

“The Contractor agrees: (a) not to discriminate in any manner against an employee or applicant for employment because of race, color, religion, creed, age, sex, sexual orientation, gender [identification] identity, marital status, national origin, ancestry genetic information or any otherwise unlawful use of characteristics, or disability of a qualified individual with a disability unrelated in nature and extent so as to reasonably preclude the performance of the employment, or the individual’s refusal to submit to a genetic test or make available the results of a genetic test; (b) to include a provision similar to that contained in subsection (a), above, in any underlying subcontract except a subcontract for standard commercial supplies or raw materials; and (c) to post and to cause subcontractors to post in conspicuous places available to employees and applicants for employment, notices setting forth the substance of this clause.”

.26 Commercial Nondiscrimination Clause.

A. The following provision is mandatory for all State contracts and subcontracts: “As a condition of entering into this Agreement, the company represents and warrants that it will comply with the State’s Commercial Nondiscrimination Policy, as described under Title 19 of the State Finance and Procurement Article of the Annotated Code of Maryland. As part of such compliance, Contractor may not discriminate on the basis of race, color, religion, ancestry[,] or national origin, sex, age, marital status, sexual orientation, [sexual] gender identity, [genetic information or an individual’s refusal to submit to a genetic test or make available the results of a genetic test] or on the basis of disability, or other unlawful forms of discrimination in the solicitation, selection, hiring, or commercial treatment of subcontractors, vendors, suppliers, or commercial customers, nor shall Contractor retaliate against any person for reporting instances of such discrimination. Contractor shall provide equal opportunity for subcontractors, vendors, and suppliers to participate in all of its public sector and private sector subcontracting and supply opportunities, provided that nothing contained in this clause [does not] shall prohibit or limit otherwise lawful efforts to remedy the effects of marketplace discrimination that have occurred or are occurring in the marketplace. Contractor understands that a material violation of this clause shall be considered a material breach of this Agreement and may result in termination of this Agreement, disqualification of Contractor from participating in State contracts, or other sanctions. This clause is not enforceable by or for the benefit of, and creates no obligation to, any third party.”

B. (text unchanged)

.31 Prompt Payment of Subcontractors.

Mandatory provisions for all contracts:

A. This contract and all subcontracts issued under this contract at any tier are subject to the provisions of State Finance and Procurement Article, §15-226, Annotated Code of Maryland, and COMAR 21.10.08. In §§A—D of this regulation, the terms “undisputed amount”, “prime contractor”, “contractor”, [and] “subcontractor,” [and] “supplier”, and “supplier” have the meanings stated in COMAR 21.10.08.01.

B. A contractor shall promptly pay its subcontractors or suppliers an undisputed amount to which a subcontractor or supplier is entitled for work performed under this contract within 10 days after the contractor receives a progress payment or final payment for work under this contract.

C. If a contractor fails to make payment within the period prescribed in §B of this regulation, a subcontractor or supplier may request a remedy in accordance with COMAR 21.10.08.

D. (text unchanged)

21.07.02 Mandatory Construction Contract Clauses

Authority: State Finance and Procurement Article, §§12-101, 13-216, 13-218, 13-225, 15-226, and 17-801—17-804, Annotated Code of Maryland

.05-2 Prompt Payment of Subcontractors.

Mandatory provisions for all construction contracts:

A. This contract and all subcontracts issued under this contract at any tier are subject to the provisions of State Finance and Procurement Article, §15-226, Annotated Code of Maryland, and COMAR 21.10.08. In §§A—D of this regulation, the terms “undisputed amount”, “prime contractor”, “contractor”, [and] “subcontractor”, and “supplier” have the meanings stated in COMAR 21.10.08.01.

C. If a contractor fails to make payment within the period prescribed in §B of this regulation, a subcontractor or supplier may request a remedy in accordance with COMAR 21.10.08.

D. (text unchanged)

.10 Performance and Payment Bonds.

Mandatory provision for all construction contracts exceeding $100,000:

A. Performance Bond. The required performance bond shall be in the form specified as follows:



Principal	Business Address of Principal

Surety	Obligee
a corporation of the State of _____________________	STATE OF MARYLAND
and authorized to do business in the State of Maryland

Penal Sum of Bond (express in words and figures) _________________________________________	Date of Contract _____________________, 20_____
Description of Contract Contract Number: _________________________	Date Bond Executed _____________________, 20_____

PERFORMANCE BOND

KNOW ALL BY THESE PRESENTS, That we, the Principal named above and Surety named above, are held and firmly bound unto the Obligee named above in the Penal Sum of this Performance Bond stated above, for the payment of which Penal Sum we bind ourselves, our heirs, executors, administrators, personal representatives, successors, and assigns, jointly and severally, firmly by these presents. However, where Surety is composed of corporations acting as co-sureties, we the co-sureties, bind ourselves, our successors and assigns, in such Penal Sum jointly and severally as well as severally only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each co-surety binds itself, jointly and severally with the Principal, for the payment of such sum as appears above its name below, but if no limit of liability is indicated, the limit of such liability shall be the full amount of the Penal Sum.

WHEREAS, Principal has entered into or will enter into a contract with the State of Maryland, by and through the Administration named above acting for the State of Maryland, which contract is described and dated as shown above, and incorporated herein by reference. The contract and all items incorporated into the contract, together with any and all changes, extensions of time, alterations, modifications, or additions to the contract or to the work to be performed thereunder or to the Plans, Specifications, and Special Provisions, or any of them, or to any other items incorporated into the contract shall hereinafter be referred as "the Contract."

WHEREAS, it is one of the conditions precedent to the final award of the Contract that these presents be executed.

NOW, THEREFORE, during the original term of said Contract, during any extensions thereto that may be granted by the Administration, and during the guarantee and warranty period, if any, required under the Contract, unless otherwise stated therein, this Performance Bond shall remain in full force and effect unless and until the following terms and conditions are met:

1. Principal shall well and truly perform the Contract; and

2. Principal and Surety shall comply with the terms and conditions in this Performance Bond.

Whenever Principal shall be declared by the Administration to be in default under the Contract, the Surety may, within 15 days after notice of default from the Administration, notify the Administration of its election to either promptly proceed to remedy the default or promptly proceed to complete the contract in accordance with and subject to its terms and conditions. In the event the Surety does not elect to exercise either of the above stated options, then the Administration thereupon shall have the remaining contract work completed, Surety to remain liable hereunder for all expenses of completion up to but not exceeding the penal sum stated above.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligation on this Performance Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the work or to the Specifications.

This Performance Bond shall be governed by and construed in accordance with the laws of the State of Maryland and any reference herein to Principal or Surety in the singular shall include all entities in the plural who or which are signatories under the Principal or Surety heading below.

IN WITNESS WHEREOF, Principal and Surety have set their hands and seals to this Performance Bond. If any individual is a signatory under the Principal heading below, then each such individual has signed below on his or her own behalf, has set forth below the name of the firm, if any, in whose name he or she is doing business, and has set forth below his or her title as a sole proprietor. If any partnership or joint venture is a signatory under the Principal heading below, then all members of each such partnership or joint venture have signed below, each member has set forth below the name of the partnership or joint venture, and each member has set forth below his or her title as a general partner, limited partner, or member of joint venture, whichever is applicable. If any corporation is a signatory under the Principal or Surety heading below, then each such corporation has caused the following: the corporation's name to be set forth below, a duly authorized representative of the corporation to affix below the corporation's seal and to attach hereto a notarized corporate resolution of power of attorney authorizing such action, and each such duly authorized representative to sign below and set forth below his or her title as a representative of the corporation. If any individual acts as a witness to any signature below, then each such individual has signed below and has set forth below his or her title as a witness. All of the above has been done as of the Date of Bond shown above.


In Presence of:	Individual Principal
Witness: __________________________________ as to	_____________________________________(SEAL)

In Presence of:	Co-Partnership Principal
Witness: ______________________________________	_____________________________________(SEAL)
	(Name of Co-Partnership)
__________________________________ as to	By:__________________________________(SEAL)
__________________________________ as to	_____________________________________(SEAL)
__________________________________ as to	_____________________________________(SEAL)

	Corporate Principal
	______________________________________
Attest:	(Name of Corporation)
	AFFIX
__________________________________ as to	By: _____________________________ CORPORATE
Corporate Secretary	President SEAL

	______________________________________
	(Corporate Surety)
Attest: (SEAL)	By: _____________________________ SEAL
______________________________________	Title______________________________________
Signature
Bonding Agent's Name: ____________________	______________________________________
	(Business Address of Surety)
Agent's Address __________________________

	Approved as to legal form and sufficiency this
	______ day of _____________ 20 __
	______________________________________
	Asst. Attorney General

B. Payment Bond. The required payment bond shall be in the form specified as follows:



Principal	Business Address of Principal

Surety	Obligee
a corporation of the State of _____________________	STATE OF MARYLAND
and authorized to do business in the State of Maryland
Penal Sum of Bond (express in words and figures) _________________________________________	Date of Contract _____________________, 20_____
Description of Contract Contract Number: _________________________	Date Bond Executed _____________________, 20_____

PAYMENT BOND

KNOW ALL MEN BY THESE PRESENTS, That we, the Principal named above and Surety named above, being authorized to do business in Maryland, and having business address as shown above, are held and firmly bound unto the Obligee named above, for the use and benefit of claimants as hereinafter defined, in the Penal Sum of this Payment Bond stated above, for the payment of which Penal Sum we bind ourselves, our heirs, executors, administrators, personal representatives, successors, and assigns, jointly and severally, firmly by these co-sureties, bind ourselves, our successors and assigns, in such Penal Sum jointly and severally as well as severally only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each co-surety binds itself, jointly and severally with the Principal, for the payment of such sum as appears above its name below, but if no limit of liability is indicated, the limit of such liability shall be the full amount of the Penal Sum.

WHEREAS, Principal has entered into or will enter into a contract with the State, by and through the Administration named above acting for the State of Maryland, which contract is described and dated as shown above, and incorporated herein by reference. The contract and all items incorporated into the contract, together with any and all changes, extensions of time, alterations, modifications, or additions to the contract or to the work to be performed thereunder or to the Plans, Specifications, and Special Provisions, or any of them, or to any other items incorporated into the contract shall hereinafter be referred to as the "Contract".

WHEREAS, it is one of the conditions precedent to the final award of the Contract that these presents be executed.

NOW THEREFORE, the condition of this obligation is such that if the Principal shall promptly make payment to all claimants as hereinafter defined, for all labor and materials furnished, supplied and reasonably required for use in the performance of the Contract, then this obligation shall be null and void; otherwise it shall remain in full force and effect, subject to the following conditions:

1. A claimant is defined to be any and all of those persons supplying labor and materials (including lessors of the equipment to the extent of the fair market value thereof) to the Principal or its subcontractors and subcontractors in the prosecution of the work provided for in the Contract, entitled to the protection provided by Section 9-113 of the Real Property Article of the Annotated Code of Maryland, as from time to time amended.

2. The above named Principal and Surety hereby jointly and severally agree with the Obligee that every claimant as herein defined, who has not been paid in full may, pursuant to and when in compliance with the provisions of the aforesaid Section 9-113, sue on this Bond for the use of such claimant, prosecute the suit to final judgment for such sum or sums as may be justly due claimant and have execution thereon. The Obligee shall not be liable for the payment of any costs or expenses of any such suit.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligation on this Payment Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the work or to the Specifications.

This Payment Bond shall be governed by and construed in accordance with the laws of the State of Maryland and any reference herein to Principal or Surety in the singular shall include all entities in the plural who or which are signatories under the Principal or Surety heading below.

IN WITNESS WHEREOF, Principal and Surety have set their hands and seals to this Payment Bond. If any individual is a signatory under the Principal heading below, then each such individual has signed below on his or her own behalf, has set forth below the name of the firm, if any, in whose name he or she is doing business, and has set forth below his or her title as a sole proprietor. If any partnership or joint venture is a signatory under the Principal heading below, then all members of each such partnership or joint venture have signed below, each member has set forth below the name of the partnership or joint venture, and each member has set forth below his or her title as a general partner, limited partner, or member of joint venture, whichever is applicable. If any corporation is a signatory under the Principal or Surety heading below, then each such corporation has caused the following: the corporation's name to be set forth below, a duly authorized representative of the corporation to affix below the corporation's seal and to attach hereto a notarized corporate resolution of power of attorney authorizing such action, and each such duly authorized representative to sign below and set forth below his or her title as a representative of the corporation. If any individual acts as a witness to any signature below, then each such individual has signed below and has set forth below his or her title as a witness. All of the above has been done as of the Date of Bond shown above.


In Presence of:	Individual Principal
Witness: __________________________________ as to	_____________________________________(SEAL)

In Presence of:	Co-Partnership Principal
Witness:	_____________________________________(SEAL)
	(Name of Co-Partnership)
__________________________________ as to	By:__________________________________(SEAL)
__________________________________ as to	_____________________________________(SEAL)
__________________________________ as to	_____________________________________(SEAL)

	Corporate Principal
	______________________________________
Attest:	(Name of Corporation)
	AFFIX

__________________________________	By: _____________________________ CORPORATE
Corporate Secretary	President SEAL

	______________________________________
	(Corporate Surety)
Attest: (SEAL)	By: _____________________________ SEAL
______________________________________	Title______________________________________
Signature
Bonding Agent's Name: ____________________	______________________________________

	(Business Address of Surety)
Agent's Address __________________________

	Approved as to legal form and sufficiency this

	______ day of _____________ 20 __
	______________________________________
	Asst. Attorney General

21.07.03 Mandatory Terms and Conditions for Purchase Orders Over $50,000

Authority: Election Law Article, §§14-101—14-108; General Provisions Article, §§5-502—5-503; State Finance and Procurement Article, §§12-101, 13-217—13-219, 13-221, 15-226, 16-202, 17-401, and 17-402; Annotated Code of Maryland; Ch. 630, Acts of 2017

.06 Nondiscrimination in Employment.

“The Contractor agrees not to discriminate in any manner against an employee or applicant for employment because of race, color, religion, creed, age, sex, sexual orientation, gender identity, marital status, national origin, ancestry, or physical or mental disability of a qualified individual with a disability and to post and to cause subcontractors to post in conspicuous places available to employees and applicants for employment, notices setting forth the substance of this clause.”

.26 Commercial Nondiscrimination Clause.

A. The following provision is mandatory for all State contracts: “As a condition of entering into this Agreement, Contractor represents and warrants that it will comply with the State's Commercial Nondiscrimination Policy, as described under State Finance and Procurement Article, Title 19, Annotated Code of Maryland. As part of this compliance, Contractor may not discriminate on the basis of race, color, religion, ancestry or national origin, sex, age, marital status, sexual orientation, gender identity, or disability or other unlawful forms of discrimination in the solicitation, selection, hiring, or commercial treatment of subcontractors, vendors, suppliers, or commercial customers, nor shall Contractor retaliate against any person for reporting instances of such discrimination. Contractor shall provide equal opportunity for subcontractors, vendors, and suppliers to participate in all of its public sector and private sector subcontracting and supply opportunities, provided that this clause does not prohibit or limit lawful efforts to remedy the effects of marketplace discrimination that have occurred or are occurring in the marketplace. Contractor understands that a material violation of this clause shall be considered a material breach of this Agreement and may result in termination of this Agreement, disqualification of Contractor from participating in State contracts, or other sanctions. This clause is not enforceable by or for the benefit of, and creates no obligation to, any third party.”

B.—C. (text unchanged)

.27 Prompt Payment of Subcontractors.

A. This contract and all subcontracts issued under this contract at any tier are subject to the provisions of State Finance and Procurement Article, §15-226, Annotated Code of Maryland, and COMAR 21.10.08. In §§A—D of this regulation, the terms “undisputed amount”, “prime contractor”, “contractor”, [and] “subcontractor,” and “supplier” have the meanings stated in COMAR 21.10.08.01.

C. If a contractor fails to make payment within the period prescribed in §B of this regulation, a subcontractor or supplier may request a remedy in accordance with COMAR 21.10.08.

D. (text unchanged)

21.07.04 Prohibited Provisions

Authority: State Finance and Procurement Article, §2-901, Annotated Code of Maryland

.01 Definitions.

A. In this chapter, “State contract” means any agreement entered into by the State.

B. This section does not apply to a State contract relating to the purchase, redevelopment, or operation of a racing facility or training facility site as those terms are defined under Economic Development Article, §10–601, Annotated Code of Maryland.

.02 Contract Prohibitions.

A. Except as required by State or federal law, a State contract may not include the following:

(1) A provision that requires the State to indemnify, defend, or hold harmless another person without an appropriation of State funds for that purpose;

(2) A provision by which the State agrees to binding arbitration or any other binding extrajudicial dispute resolution process;

(3) A provision that names a jurisdiction or venue for any action or dispute against the state other than a court of proper jurisdiction in the State;

(4) A provision that requires the state to agree to limit the liability for any direct loss to the State for bodily injury, death, or damage to property of the State caused by the negligence, intentional or willful misconduct, fraudulent act, recklessness, or other tortious conduct of a person or a person’s employees or agents or a provision that would otherwise impose an indemnification obligation on the State;

(5) A provision that requires the State to be bound by a term or condition that:

(a) Is unknown to the State at the time of signing a contract;

(b) May be unilaterally changed by the other party; or

(c) Is electronically accepted by a State employee without authority;

(6) A provision that provides for a person other than the Attorney General of Maryland to serve as legal counsel for the State, unless provided under State Government Article, §6–106, Annotated Code of Maryland;

(7) A provision that is inconsistent with the State’s obligations under General Provisions Article, §§3 or 4, Annotated Code of Maryland;

(8) A provision prohibited under State Finance and Procurement Article, §7–237, Annotated Code of Maryland;

(9) A provision for automatic renewal that obligates the State to allocate funding in subsequent fiscal years; or

(10) A provision that limits the State’s ability to recover the cost of a replacement contractor.

B. If a State contract contains a provision listed under §A. of this regulation, the provision is void from the beginning and the contract containing that provision shall be enforceable as if it did not contain the provision.

C. A State contract that contains a provision listed under §A of this regulation shall be governed by and construed in accordance with State law, notwithstanding any term or condition to the contrary in the contract.

Subtitle 10 ADMINISTRATIVE AND CIVIL REMEDIES

21.10.02 Protests

Authority: State Finance and Procurement Article, §§12-101 and 15-201—15-223, Annotated Code of Maryland

.02 Filing of Protest.

A.—A-2. (text unchanged)

B. The protest shall be in writing and addressed to the procurement officer[.] at either:

(1) The physical address specified in the solicitation; or

(2) The e-mail address specified in the solicitation.

C. A protest [may be filed in writing and delivered by hand, electronic means, the U.S. Postal Service, or a courier service.]:

(1) Shall be filed within the appropriate time in Regulation .03 of this chapter; and

(2) Shall be filed and delivered either:

(a) By hand, the U.S. Postal Service, or a courier service; or

(b) By e-mail.

21.10.08 Prompt Payment of Subcontractors

Authority: State Finance and Procurement Article, §15-226, Annotated Code of Maryland

.01 Definitions.

A. (text unchanged)

B. Terms Defined.

(1) Undisputed Amount.

(a) "Undisputed amount" means an amount owed by a contractor to a subcontractor or supplier for which there is no good faith dispute, including any retainage withheld.

(b) (text unchanged)

(2)—(4) (text unchanged)

(5) “Supplier” has the same definition set forth in State Finance and Procurement Article. §15–226, Annotated Code of Maryland, and COMAR 21.01.02.01.B.

.02 Policy.

It is the policy of the State that a contractor shall promptly pay to a subcontractor or supplier any undisputed amount to which the subcontractor or supplier is entitled for work under a State procurement contract.

.03 Responsibilities.

A. A contractor who receives a progress payment or a final payment shall pay a subcontractor or supplier an undisputed amount to which the subcontractor or supplier is entitled within 10 calendar days of receiving the payment.

B. If a contractor withholds payment from a subcontractor or supplier within the time period in which the payment normally would be made, the contractor shall:

(1) Notify the subcontractor or supplier in writing and state the reason why payment is being withheld;

(2) Provide a copy of the notice to the prime contractor or supplier and, if different, to the person or firm that made the progress payment or final payment to the contractor; and

(3) (text unchanged)

C. Written Notice of Nonpayment.

(1) If a subcontractor or supplier does not receive a payment within the required time period, the subcontractor or supplier shall give written notice of the nonpayment to the procurement officer.

(2) (text unchanged)

.04 Duties.

A. Within 2 business days of receipt of written notice from a subcontractor or supplier, a representative of the unit designated by the procurement officer shall verbally contact the contractor that withheld payment to ascertain whether the amount withheld is an undisputed amount.

B. If the representative of the unit determines that a part or all of the amount withheld is an undisputed amount, the representative of the unit shall instruct the contractor that withheld payment to pay the subcontractor or supplier the undisputed amount within 3 business days. The instruction shall be confirmed in writing.

C. The representative of the unit shall verbally communicate to the subcontractor or supplier the results of discussions with the contractor that withheld payment.

.05 Actions.

A. If the contractor fails to pay the subcontractor or supplier the undisputed amount within the time instructed to do so under Regulation .04B of this chapter, the subcontractor or supplier may report the nonpayment in writing to the procurement officer.

B. Meeting.

(1) If the subcontractor or supplier notifies the procurement officer in writing under §A of this regulation that payment has not been made, the representative of the unit shall schedule a meeting to discuss the dispute with the unit's project manager, the contractor, the subcontractor or supplier, and any other person or entity that the representative considers to have an interest in the matter:

(a) At a time and location designated by the representative of the unit; but

(b) Not later than 10 calendar days after receiving written notice from the subcontractor or supplier under §A of this regulation.

(2) The purpose of the meeting is to establish why the contractor has not paid the subcontractor or supplier in the required time period.

(3)—(4) (text unchanged)

.06 Remedies.

A. If the representative of the unit determines that the contractor is delinquent in payment of an undisputed amount to the subcontractor or supplier, the representative may order that further progress payments to the contractor that withheld payment shall be withheld until the subcontractor or supplier is paid.

B. If payment is not paid to the subcontractor or supplier within 7 business days after the representative of the unit determines that the contractor is delinquent in paying the subcontractor or supplier under §A of this regulation, the representative shall schedule a second meeting to address the dispute:

(1)—(2) (text unchanged)

C. If, at the completion of the second meeting, the representative of the unit determines that the contractor continues to be delinquent in payments owed to the subcontractor or supplier, the representative:

(1) Shall order that further payments to the contractor not be processed until payment to the subcontractor or supplier is verified;

(2) (text unchanged)

(3) If the contractor is not a prime contractor, may order that the prime contractor act as a representative of the unit and:

(a) Pay or cause payment of an amount determined as undisputed, together with any penalty assessed against the contractor under §C(4) of this regulation, to be made to the subcontractor or supplier from monies otherwise due or that may become due under the State contract for the contractor’s work;

(b) From monies otherwise due or that may become due under the State contract for the contractor's work, place a payment for an undisputed amount and any penalty in an interest-bearing escrow account rather than making the payment to the subcontractor or supplier; or

(4) Subject to §D of this regulation, may order that the contractor pay a penalty to the subcontractor or supplier, in an amount not exceeding $100 per day, from the date that payment was required under Regulation .04B of this chapter.

D. A penalty may not be imposed under §C(3) of this regulation for any period that the representative of the unit determines the subcontractor or supplier was not diligent in reporting nonpayment to the procurement officer.

E. (text unchanged)

.07 Appeal.

A. A contractor or a subcontractor or supplier may appeal a decision under Regulation .06C of this chapter to the procurement officer.

B. (text unchanged)

.08 Decision.

A. An act, failure to act, or decision of a procurement officer or a representative of a unit, concerning a payment dispute between a contractor and subcontractor or supplier under this chapter, may not:

(1) (text unchanged)

(2) Be used as evidence on the merits of a dispute between the unit and the contractor or the contractor and the subcontractor or supplier in any other proceeding; or

(3) (text unchanged)

B. (text unchanged)

Subtitle 11 SOCIOECONOMIC POLICIES

21.11.01 Small Business Procurements

Authority: State Finance and Procurement Article, §§12-101, 14-201—14-208, and 14-501—14-505, Annotated Code of Maryland

.01 Definitions.

A. (text unchanged)

B. Terms Defined.

(1) “Certified small business” (“CSB”) means a business, other than a nonprofit business, that:

(a) (text unchanged)

(b) Meets the criteria for a small business as defined under [COMAR 21.01.02.01B(80)] COMAR 21.01.02.01B.

(2) (text unchanged)

(3) “Disabled-veteran-owned small business” means a small business as defined under [COMAR 21.01.02.01B(80)] COMAR 21.01.02.01B that is at least 51 percent owned and controlled by one or more individuals who are disabled veterans.

(4) “Economically disadvantaged individual” means an individual as defined in COMAR 21.11.03.03.B.

[(4)] (5) (text unchanged)

[(5)] (6) “Veteran-owned small business” means a small business as defined under [COMAR 21.01.02.01B(80)] COMAR 21.01.02.01B that is at least 51 percent owned and controlled by one or more individuals who are veterans.

(7) “Small business reserve” means those procurements that are limited to responses from small businesses as provided under State Finance and Procurement Article, §14–502(c), Annotated Code of Maryland.

.02 Small Business Procurement Programs.

A. (text unchanged)

B. The small business preference program specifically authorizes [the Department of General Services, the Department of Transportation, the University System of Maryland, and Morgan State University] a procuring unit to apply certain percentage price preferences in favor of certified small businesses when evaluating and awarding bids on those procurements designated for a small business preference.

C. (text unchanged)

.05 Small Business Preference Program.

A. Applicability. The small business preference program applies to procurements by [the Department of Transportation, the Department of General Services, the University System of Maryland, and Morgan State University] a procuring unit.

B. Procedures.

(1) Designation of Small Business Preference Contracts. The [Secretaries of General Services and Transportation, the Chancellor of the University System of Maryland, and the President of Morgan State University] heads of procurement units or their designees shall screen all procurements potentially eligible for a small business preference and shall determine which of those procurements shall be made under these procedures and the percentage preference to be applied. The determination shall be based on the availability of qualified, certified small businesses and other appropriate factors.

(2)—(4) (text unchanged)

[(5) Reporting. The Departments of Transportation and General Services, the University System of Maryland, and Morgan State University procuring units shall submit a report on the Small Business Preference Program annually as required under COMAR 21.13.01.03A.]

.06 Small Business Reserve Program.

A. (text unchanged)

B. Scope. To the extent practicable, each procurement unit shall structure its procurement procedures to achieve the result that a minimum of [15] 20 percent of the unit's total dollar value of procurements for goods, supplies, services, maintenance, construction, construction-related services, architectural services, and engineering services are expended directly with certified small businesses at the prime contract level.

C. (text unchanged)

D. Expenditures.

(1) Forecasts. Each procurement unit shall, based upon the approved budget and other applicable factors, annually prepare a fiscal year procurement expenditure forecast. The forecast shall project expected expenditures under procurements to be awarded or currently under contract, and the unit shall develop a plan allocating a minimum of [15] 20 percent of the total expected expenditures under these contracts directly to certified small businesses.

(2) Included and Excluded Expenditures.

(a) (text unchanged)

(b) [Only those payments resulting from a procurement designated as a small business reserve procurement may be applied towards the procurement unit’s overall small business reserve payment achievement.] A procuring unit may apply toward the unit's overall annual Small Business Reserve achievement awards made to a small business under designated small business reserve contracts as well as awards made to a small business under nondesignated small business reserve contracts.

E—I. (text unchanged)

21.11.03 Minority Business Enterprise Policies

Authority: State Finance and Procurement Article, §§12-101 and 14-301--14-308, Annotated Code of Maryland

.03 Definitions.

A. In this chapter, the following words have the meanings indicated.

B. Terms Defined.

(1)—(5) (text unchanged)

(6) “Industry type” means the following procurement categories:

(a) Construction;

(b) Architectural and engineering services and other construction-related professional services;

(d) Information technology;

(e) Services; [and]

(f) Goods, supplies, and equipment[.] ; and

(g) Real property title insurance services, including commercial real property title insurance services.

(7)—(17) (text unchanged)

.17 Reporting.

A.—C. (text unchanged)

D. The Special Secretary for the Governor's Office of Small, Minority & Women Business Affairs may waive the requirement for a procurement agency to report MBE participation by industry type under §A of this regulation except for real property title insurance services if the spending threshold for the industry type is too low for the unit to provide sufficient data.

E.—G. (text unchanged)

21.11.05 Procurement from Maryland Correctional Enterprises, Blind Industries and Services of Maryland, and the Employment Works Program

Authority: Correctional Services Article, §3-515; State Finance and Procurement Article, §§12-101 and 14-101—14-108; Annotated Code of Maryland; Ch. 415, Acts of 2015; Ch. 313, Acts of 2016

.04 Duties of the Pricing and Selection Committee for Preferred Providers.

The Pricing and Selection Committee for Preferred Providers shall:

A.—P. (text unchanged)

Q. Maintain current lists of supplies, services, or other sales that Maryland Correctional Enterprises, Blind Industries and Services of Maryland, and Employment Works Program community service providers and individual-with-disability-owned businesses provide; [and]

R. Periodically review and revise the lists of supplies, services, or other sales maintained in accordance with §Q of this regulation, and send any revised list to the Chief Procurement Officer, who shall make the lists available to each person responsible for buying supplies or services for the State or a State aided or controlled entity[.]; and

(S.) Review a request for and, if in the State’s interest, grant a waiver to a requested State or State-aided or controlled entity if either of the following conditions apply, in accordance with State Finance and Procurement Article, §14–103(d)(1), Annotated Code of Maryland:

(1) The price of the needed supplies and services is at least 10 percent above market rates for similar supplies and services; or

(2) The time at which the needed supplies and services would be delivered does not meet the entity's needs.

.06 Responsibilities of Selling Entities.

Each selling entity shall:

A.—E. (text unchanged)

F. Within 90 days after the end of each fiscal year, a preferred provider awarded a contract in accordance with State Finance and Procurement Article, §14–103, Annotated Code of Maryland, shall report to the Department of General Services the information listed in subsections (1) and (2) of this section.

(1) For the preceding fiscal year, the report shall state the total number of full–time equivalents for individuals with disabilities who contributed to the work of the contracts.

(2) For the preceding fiscal year, Maryland Correctional Enterprises shall report the length of time between each order and delivery of supplies and services.

.08 Minority Business Status.

In calculating compliance with the certified Minority Business Enterprise goals under COMAR 21.11.03 and for reporting purposes under COMAR 21.11.03.17, a procurement agency may not include in its MBE procurements the annual dollar value of contracts with the following:

A. [Include in its MBE procurements the annual dollar value of its contracts with:

(1) Blind Industries and Services of Maryland;

(2) Community service providers; and

(3) Individual-with-disability-owned businesses.] A preferred provider as defined in State Finance and Procurement Article, §14-101(d), Annotated Code of Maryland;

B. [Exclude from its total annual procurements the annual dollar value of its contracts with Maryland Correctional Enterprises.] A nonprofit entity in accordance with requirements mandated by State or federal law; or

C. Providers of family and individual support services, community residential services, resource coordination services, behavioral support services, vocational and day services, and respite services, as those terms are defined in regulations adopted by the Maryland Department of Health.

Subtitle 13 PROCUREMENT REPORTING REQUIREMENTS

21.13.01 Reporting Requirements

Authority: Election Law Article, §§14-101 and 14-107; State Finance and Procurement Article, §§12-101, 13-207, 14-305, 14-505, 15-110, 15-111, and 17-104; Annotated Code of Maryland

.03 Reports of the Small Business Reserve Program.

A. (text unchanged)

B. Each procurement unit shall submit a report on the small business reserve program to the Governor’s Office of Small, Minority & Women Business Affairs within 90 days after the end of each fiscal year, in a format determined by the Governor’s Office of Small, Minority & Women Business Affairs, that includes at a minimum:

(1) The total number and the dollar value of [payments] awards the unit made to certified small businesses under contracts designated as small business reserve contracts;

(2) The total number and the dollar value of [payments] awards the unit made to certified small businesses under contracts not designated as small business reserve contracts, including purchase card [payments] procurements;

(3) The total dollar value of [payments] awards the unit made under procurement contracts; and

(4) (text unchanged)

C. (text unchanged)

D. On or before December 1 each year, the certification agency designated under State Finance and Procurement Article, §14-303b, Annotated Code of Maryland, in consultation with the Governor's Office of Small, Minority & Women Business Affairs, shall submit to the Board of Public Works and, subject to State Government Article, §2–1257, Annotated Code of Maryland, to the Legislative Policy Committee a report on:

(1) The status of the outreach program required under State Finance and Procurement Article, §14-504.1, Annotated Code of Maryland; and

(2) The total number and dollar value of awards made to small businesses owned by economically disadvantaged individuals under designated small business reserve contracts.

JOHN GONTRUM
Executive Secretary

Title 36
MARYLAND STATE LOTTERY AND GAMING CONTROL AGENCY

Notice of Proposed Action

[24-151-P]

The Maryland Lottery and Gaming Control Agency proposes to:

(1) Amend Regulations .07, .12, .14, .20, .28, and .38, and adopt new Regulation .52 under COMAR 36.03.10 Video Lottery Facility Minimum Internal Control Standards;

(2) Amend Regulation .02 under COMAR 36.04.02 Video Lottery Terminal Machines;

(3) Amend Regulation .02 under COMAR 36.08.01 General;

(4) Amend Regulation .01 under COMAR 36.08.02 Registration;

(5) Amend Regulations .01—.04, and .06 under COMAR 36.08.03 Amusement Gaming License;

(6) Amend Regulation .01 and adopt new Regulation .03 under COMAR 36.08.04 General Standards;

(7) Amend Regulation .02 under COMAR 36.09.01 General;

(8) Repeal existing Regulation .01, adopt new Regulations .01, .02, and .06, and amend and recodify existing Regulations .02—.04 to be Regulations .03 —.05 under COMAR 36.09.02 Registration;

(9) Amend Regulation .01, repeal existing Regulation .02, amend and recodify existing Regulations .03—.07 to be Regulations .02 —.06 under COMAR 36.09.03 General Standards and Prohibitions;

(10) Amend Regulations .01—.07 under COMAR 36.09.04 Financial Standards;

(11) Amend Regulations .01—.03 under COMAR 36.09.05 Responsible Gambling;

(12) Amend Regulation .03 under COMAR 36.10.12 Collection of Taxes, Fees, and Penalties;

(13) Amend Regulations .06, .37, and .40, and adopt new Regulation .45 under COMAR 36.10.13 Sports Wagering Licensee Minimum Internal Control Standards;

(14) Amend Regulation .06 under COMAR 36.10.14 Sports Wagering Requirements and Limitations; and

(15) Amend Regulations .04 and .05 under COMAR 36.10.18 Sports Wagering Technical Standards.

This action was considered at the Maryland Lottery and Gaming Control Commission open meeting held on August 29, 2024, notice of which was given pursuant to General Provisions Article, §3-302(c), Annotated Code of Maryland.

Statement of Purpose

The purpose of this action is to Under COMAR 36.03.10 Video Lottery Facility Minimum Internal Control Standards

(1) Require Maryland specific audited financial statements if the Maryland operations represent less than 75% of the licensees’ parent’s total revenue;

(2) Allow a facility operator to utilize an electronic surveillance incident log that documents changes made by a user

(3) Correct an erroneous cross reference, and fix grammar;

(4) Increases the value of a check or multiple checks a facility operator may accept from an individual in a single day from $250,000 to $500,000;

(5) Correct an error in the regulation to be consistent with the personal check limit;

(6) Allow operators to use an approved electronic jackpot or credit meter payout system, which would allow them to use newer technology; and

(7) Clarify that a facility operator must advise the Agency of offers and tournaments it plans to conduct 14 days before the planned start date of the offer or tournament.

Under COMAR 36.03.04 Video Lottery Terminals, correct the basis for calculating VLT assessments for responsible gaming.

Under COMAR 36.08.01 General, increase the minimal value from $30 to $40.

Under COMAR 36.08.02 Registration, clarify that the Agency does not assign a registration number to each device, but instead, provides stickers that must be affixed to each device.

Under COMAR 36.08.03 Amusement Gaming License, comport with the Style Manual for Maryland Regulations, correct references, clarify the discretionary aspect of requesting a corrective action plan, and use accurate definitions from the regulations.

Under COMAR 36.08.04 General Standards:

(1) Clarify that the value of skills-based amusement device prizes may not be accumulated and exchanged for prizes of more than the defined minimal value consistent with statute; and

(2) Describe enforcement actions available if a skill-based amusement device owner does not comply with the subtitle.

Under COMAR 36.09.01 General, reorganize the definitions, and include new definitions, consistent with statute, that clarify what a fantasy competition is and is not to make it easier for operators to determine which types of competitions are permitted in Maryland.

Under COMAR 36.09.02 Registration and Enforcement:

(1) Describe the application process for operator registration, and for the Agency approval of a fantasy competition;

(2) Clarify that Agency approval of a new competition is required before an operator can offer it, and permit minor modifications to a previously offered contest;

(3) Increase the annual registration fee from $100 to $1,000 to better reflect the efforts of Agency Staff to process fantasy competition operator registrations, and review contest rules for statutory compliance;

(4) Simplify the renewal process in that a fantasy competition operator remains registered if its registration invoice is paid; and (5) Specify possible enforcement actions for non-compliance with statute or regulations.

Under COMAR 36.09.03 General Standards and Prohibitions:

(1) Clarify language used so that it is consistent with definitions used in the regulations and consistent with existing law;

(2) Remove Regulation .02 from this chapter since the use of betting kiosks is already prohibited by existing law;

(3) Simplify language used to prohibit affiliates of an operator from participating in a contest, and remove redundancies based on defined terms;

(4) Simplify language used to prohibit athletes and their affiliates from participating in a contest based on the definitions in this subtitle, and to add “handler” to the list of individuals prohibited from fantasy competition play, which is consistent with the sports wagering regulations;

(5) Simplify and clarify language used to describe the player protections including scripts and highly experienced players; and

(6) Clarify and make adjustments to comport with the Style Manual for Maryland Regulations

Under COMAR 36.09.04 Financial Standards:

(1) Simplify and clarify language used for consistency with definitions and comport with the Style Manual for Maryland Regulations;

(2) Clarify and specify the dates by which tax returns and tax payments must be submitted to the Commission;

(3) Simplify and clarify language used regarding tax reporting and the value of prizes to be reported; and

(4) Simplify and clarify language used to identify tax information that must be provided to players, and make adjustments to comport with the Style Manual for Maryland Regulations.

Under COMAR 36.09.05 Responsible Gambling:

(1) Clarify language used regarding voluntary direct exclusion by players, in which the player is only prohibited from entering competitions offered by the operator;

(2) Clarify language used and make adjustments to comport with the Style Manual for Maryland Regulations; and

(3) Clarify and simplify language used for consistency with the definitions and to comport with the Style Manual for Maryland Regulations, and to clarify that that if a player selects direct exclusion, the operator is prohibited from sending the individual any marketing materials.

Under COMAR 36.10.12 Collection of Taxes, Fees and Penalties, delay the date tax payments are due to the State to allow Agency Staff time to review tax returns before payments are made.

Under COMAR 36.10.13 Sports Wagering Licensee Minimum Internal Control Standards:

(1) Clarify language to make regulations consistent with current Agency practice, and require Maryland specific audited financial statements if the Maryland operations represent less than 75% of the licensee’s parent’s revenue;

(2) Allow additional time for licensees to investigate and resolve bettor complaints, and require licensees to maintain records of complaints in a retrievable format;

(3) Allow licensees to share information about a bettor with a third party if the bettor agrees; and

(4) Manage the cessation of sports wagering operations and required notice to bettors, and identify what information must be provided to the Agency and to bettors if a licensee intends to wind down its business operations in the State.

Under COMAR 36.10.14 Sports Wagering Requirements and Limitations, clarify when a licensee is required to increase the balance in its reserves when it is unable to transfer funds

Under COMAR 36.10.18 Sports Wagering Technical Standards:

(1) Update and strengthen the requirements for geolocation systems and their testing; and

(2) Require multi-factor authentication at certain times, such as account creation and when a new device is used, and also require that multi-factor authentication be repeated at least every 14 days to help protect user accounts.

Estimate of Economic Impact

I. Summary of Economic Impact. Certain proposed amendments to existing regulations should have positive economic impacts to players and operators. For example, these amendment(s) would:

•Allow a video lottery facility to accept larger checks from players from $250,00 to $500,000.

•Increases the minimum value from $30 to $40 for a skill-based amusement device prize.

Other proposed amendments to existing regulations could have a negative impact on operators. For example, a few amendment(s) would:

•Require Maryland specific audited financial statements to be prepared if operations represent less than 75% of the licensee’s parent’s total revenue.

•Clarify that skills-based amusement device prizes may not be accumulated and exchanged for prizes of more than the defined minimum value.

•Increase the annual fantasy operator registration from $100 to $1,000, to better reflect the Agency’s cost for registration and oversight responsibilities.

II. Types of Economic Impact.

Impacted Entity	Revenue (R+/R-) Expenditure (E+/E-)	Magnitude
A. On issuing agency:	NONE
B. On other State agencies:	NONE
C. On local governments:	NONE

	Benefit (+) Cost (-)	Magnitude
D. On regulated industries or trade groups:
(1) Skills-Based Amusement Operators	(-)	Potentially Material
(2) Skills-Based Amusement Operators	(+)	Not Material
(3) Video Lottery Facility Licensees	(+)	Not Material
(4) Video Lottery Facility Licensees	(-)	Moderate
(5) Fantasy Competition Operators	(-)	Moderate
E. On other industries or trade groups:	NONE
F. Direct and indirect effects on public:	NONE

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

D(1). A few large chain amusement skills-based amusement operators have been allowing players to players to accumulate their prize winnings to exchange for prizes of more than the defined minimum value of $30. It is the Agency’s belief that this is in conflict with statutory restrictions, so we are updating the regulation to match the statute.

D(2). Increasing the minimum value of prizes from $30 to $40 keeps pace with inflation and allows Skills-Based Amusement Operators to offer more prizes to players at or below the updated minimum value.

D(3). Authorizing Video Lottery Facility Licensees (Casinos) the ability to accept larger checks from players (high rollers) allows these licensees to provide a service to their customers.

D(4). This proposed amendment(s) would require Maryland specific audited financial statements if the Maryland operations represent less than 75% of the licensees’ parent’s total revenue. While this has cost implications, the audits provide a better view of the operator’s Maryland business.

D(5). The cost to register as a Fantasy Competition Operator in Maryland had been set by the Commission almost 10 years ago. The proposed amendment increases the annual registration fee from $100 to $1,000 to better reflect the efforts of Agency Staff to process fantasy competition operator registrations, and review contest rules for statutory compliance. There are currently 17 registered Fantasy Competition operators.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to James B. Butler, Assistant Deputy Director, Chief of Staff, Maryland Lottery and Gaming Control Agency, 1800 Washington Blvd., Suite 330, Baltimore, MD 21230, or call 410-230-8781, or email to jbutler@maryland.gov. Comments will be accepted through December 16, 2024. A public hearing has not been scheduled.

Subtitle 03 GAMING PROVISIONS

36.03.10 Video Lottery Facility Minimum Internal Control Standards

Authority: Family Law Article, §10-113.1; State Government Article, §§[9-1A-01(u)] 9-1A-01, 9-1A-02, 9-1A-04, and 9-1A-24; Annotated Code of Maryland

.07 Annual Audit and Other Regulatory Reports.

A. (text unchanged)

B. [The annual financial statements shall be prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States.] The annual financial statements shall be:

(1) Prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States; and

(2) If the revenue and assets of the Maryland facility operator operations are less than 75 percent of the combined total of the operator’s parent, Maryland specific audited annual financial statements of the facility operator revenue and assets.

C.—R. (text unchanged)

.12 Surveillance Department Operating Procedures.

A.—B. (text unchanged)

C. A facility operator’s surveillance department operating procedures shall, at a minimum, require:

(1)—(2) (text unchanged)

(3) A surveillance incident log:

(a) Maintained by monitor room employees in:

(i) (text unchanged)

(ii) An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; [and] or

(b) (text unchanged)

(4)—(7) (text unchanged)

D.—F. (text unchanged)

.14 Security Department Operating Procedures.

A.—B. (text unchanged)

C. A facility operator’s security department operating procedures shall, at a minimum, include:

(1)—(3) (text unchanged)

(4) A requirement that a facility operator notice the Commission on detection of:

(a) (text unchanged)

(b) An individual possessing a firearm, electronic control device, dangerous weapon, or other device or object prohibited under Regulation [.49] .48 of this chapter; or

(i)—(iii) (text unchanged)

(iv) Voluntarily excluded in accordance with State Government Article, §9-1A-24(e), Annotated Code of Maryland.

.20 Checks Accepted from a Player.

A.—J. (text unchanged)

K. On a single gaming day, a facility operator may accept a check or multiple checks which:

(1) In the aggregate do not exceed [$250,000] $500,000; and

(2) (text unchanged)

.28 Counter Check Substitution, Consolidation, and Redemption.

A.—B. (text unchanged)

C. If a personal check is accepted in an amount less than or equal to the amount of a counter check being partially or fully redeemed, the [$30,000] $50,000 limitation on acceptance of personal checks in Regulation .20F(2) of this chapter does not apply.

D.—L. (text unchanged)

.38 Jackpot Payout.

A.—G. (text unchanged)

H. Electronic Jackpot or Credit Meter Payout System.

(1) A facility operator may use an electronic jackpot or credit meter payout system approved by the Commission to process jackpot or credit meter payout transactions.

(2)A facility operator may process jackpot or credit meter payouts using a portable device or other method approved by the Commission.

(3) The electronic jackpot or credit meter payout system shall be capable of maintaining independently, or in conjunction with another computer system:

(a) A record of each IRS Form W-2G in accordance with §C of this regulation;

(b) A record of each jackpot or credit meter payout document in accordance with §G of this regulation;

(c) All signatures required by this regulation;

(d) A record of a voided transaction and the reason for the void; and

(e) Any other information the Agency staff requires.

.52 Promotional Offers and Tournaments.

A. A facility operator shall submit terms and conditions of each promotion or tournament to the Commission no later than 14 days before the planned start of the promotion or tournament.

B. Submission shall include:

(1) A description of the promotion or tournament;

(2) The dates and times of the promotion or tournament;

(3) The participation requirements for the promotion or tournament;

(4) If applicable, the procedure for a claim or to redeem the promotional offer;

(5) Registration procedures;

(6) Limitations on participation;

(7) The gambling assistance message required by COMAR 36.03.06.03; and

(8) Any other information the Commission requires.

Subtitle 04 VIDEO LOTTERY TERMINALS

36.04.02 Video Lottery Terminal Machines

Authority: State Government Article, §§9-1A-04 and 9-1A-21, Annotated Code of Maryland

.02 Authorized Video Lottery Terminals.

A.—B. (text unchanged)

C. Implementation of Approved Request for Reduction.

(1)—(5) (text unchanged)

(6) [For each authorized video lottery terminal on its license, a facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland] A facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland, for each terminal at the beginning of each calendar year.

(7) The annual fee is based on the highest number of video lottery terminal positions in use on any day during the prior calendar year.

[(7)] (8) (text unchanged)

D. Request to Increase Number of Authorized Video Lottery Terminals on a License.

(1)—(4) (text unchanged)

(5) [For each authorized video lottery terminal on its license, a facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland] A facility operator shall pay the annual fee of $425 required by State Government Article, §9-1A-33, Annotated Code of Maryland.

(6) The annual fee is based on the highest number of video lottery terminals in use on any day of the calendar year.

[(6)] (7)—[(7)] (8) (text unchanged)

E. (text unchanged)

Subtitle 08 SKILLS-BASED AMUSEMENT DEVICES

36.08.01 General

Authority: Criminal Law Article, §§12-301 and 12-301.1; State Government Article, §§9-101 and 9-1B-02; Annotated Code of Maryland

.02 Definitions.

A. (text unchanged)

B. Terms Defined.

(1) (text unchanged)

(2) “Minimal value” means having a wholesale value of not more than [$30] $40.

(3)—(6) (text unchanged)

36.08.02 Registration

Authority: Criminal Law Article, §§12-301 and 12-301.1, Annotated Code of Maryland

.01 Registration.

A.—B. (text unchanged)

C. For each device registered under this chapter, the Commission shall:

(1) [Assign a skills-based amusement device registration number; and

(2)] Issue a registration certificate [and sticker.] ; and

(2) Issue a sticker for each device.

D. The owner of a skills-based amusement device required to register under this chapter shall [adhere] affix the registration sticker to the device in a location visible to inspection.

E. (text unchanged)

36.08.03 Amusement Gaming License

Authority: Criminal Law Article, §§12-301 and 12-301.1; State Government Article, §§ 9-1B-01— 9-1B-02; Annotated Code of Maryland

.01 Definition.

A. (text unchanged)

B. Term Defined. “Family entertainment center” has the [same definition as provided under] meaning stated in State Government Article, [Title 9, Subtitle 1B,] §9-1B-01, Annotated Code of Maryland.

.02 Amusement Gaming License.

A. (text unchanged)

B. A family entertainment center applying for an amusement gaming license shall provide in a manner specified by the Commission:

(1)—(3) (text unchanged)

(4) A listing of the skills-based amusement devices that award merchandise or prizes with a wholesale value of more than [$30] a minimal value but [less than $600] does not exceed $599 including:

(a)—(g) (text unchanged)

C.—D. (text unchanged)

E. A family entertainment center that holds an amusement gaming license may operate up to 10 skills-based amusement devices that award noncash merchandise or prizes with a wholesale value that is more than [$30] a minimal value but [less than $600] does not exceed $599.

F. (text unchanged)

G. Upon review of the information provided under §B of this regulation, the Commission may conduct a hearing in accordance with [Regulation .06 of this chapter] COMAR 36.01.02.06 to deny the license.

H. (text unchanged)

.03 Corrective Action.

A. Deficiency. If [the Director] Agency staff determines that an amusement gaming licensee under this chapter no longer meets an amusement gaming license requirement of this subtitle, or that there is cause for imposing sanctions under Regulation .04 of this chapter, the [Director] Agency may:

(1) (text unchanged)

(2) Require the amusement gaming licensee to develop a corrective action plan[;] and if required:

[(3)] (i) Conduct periodic monitoring of an amusement gaming licensee [for which the Director required a corrective action plan] to assess the licensee’s progress toward remedying the deficiencies;

[(4)] (ii) Evaluate and, if acceptable to the [Director] Agency, approve the corrective action plan;

[(5)] (iii) Determine appropriate timelines for the completion of corrective action; and

[(6)] (iv) Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the amusement gaming license; and

[(7)] (3) Recommend that the Commission impose a sanction under Regulation .04 of this chapter.

B. Deficiency Notice. [Upon determining that corrective action] If Agency staff determines that a corrective action plan is required to remedy a deficiency, the [Director] Agency shall give written notice to an amusement gaming licensee that includes:

(1)—(2) (text unchanged)

(3) The requirement for the licensee to submit a corrective action plan to the [Director] Agency within a time frame established by the [Director] Agency.

C. Corrective Action Plan.

(1) Within 10 days of receipt of a deficiency notice under §B of this regulation, the amusement gaming licensee shall submit a corrective action plan to the [Director] Agency for the [Director’s] Agency’s approval.

(2) The [Director] Agency shall review the corrective action plan and inform the licensee whether the corrective action plan is acceptable.

(3) If the licensee fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the [Director] Agency may:

(a)—(b) (text unchanged)

(4) If the [Director] Agency provided a licensee notice under §B of this regulation and received no timely written response, the Commission may adopt as final the [Director’s] Agency’s decision to impose a sanction under Regulation .04 of this chapter.

D. Corrective Action Outcomes.

(1) If at any time during the corrective action plan period the [Director] Agency determines that the amusement gaming licensee has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the [Director] Agency may:

(a)—(b) (text unchanged)

(2) If at the end of the corrective action plan period the licensee has failed to adequately remedy a deficiency, the [Director] Agency may [impose] recommend the imposition of a sanction under Regulation .04 of this chapter.

.04 Sanctions.

A. The [Director] Commission may impose sanctions on an amusement gaming licensee for:

(1)—(4) (text unchanged)

(5) [Failing] If a corrective action plan is required by the Agency failing to prepare, submit, or implement an adequate corrective action plan under Regulation .03C of this chapter; or

(6) Other activities or action deemed by the [Director] Commission to require the imposition of a sanction.

B. Types of Sanctions. Sanctions may include emergency suspension, suspension, revocation, and placement of [conditions] a condition on the amusement gaming license.

C. Suspension, Revocation, and Conditions.

(1) Except as set forth in §D of this regulation, the [Director] Agency shall give the amusement gaming licensee notice of the intended [suspension, revocation, or imposition of a condition] sanction at least 15 days before the imposition of the intended sanction.

(2) A licensee may appeal the [Director’s imposition of] Agency’s recommendation to impose a sanction before the date the sanction is imposed by submitting a timely written request for a hearing before the Commission.

(3) A hearing on the Agency’s recommendation to impose a sanction shall be in accordance with COMAR 36.01.02.06.

[(3)] (4) (text unchanged)

D. Emergency Suspension.

(1) (text unchanged)

(2) If the Director emergently suspends a license, the Director shall provide the licensee with written notice that includes:

(a)—(c) (text unchanged)

(d) If the Agency permits a corrective action plan, [Information] information about the licensee’s obligation to submit to the Agency a corrective action plan; and

(e) A statement of the licensee’s right to request a Commission hearing under COMAR 36.01.02.06.

(3) If after a license is emergently suspended, the licensee does not submit a timely written request for a Commission hearing, the Director may move to revoke the license by giving the licensee notice under [§C(1)] §C of this regulation.

.06 Hearings.

A. (text unchanged)

B. Denial of an Amusement Gaming License.

(1) After reviewing an application submitted under this chapter, the [Director] Agency may recommend that the Commission deny an amusement gaming license.

(2) If the [Director] Agency recommends that the Commission deny a license, the [Director, or the Director’s designee,] Agency shall promptly provide the applicant with written notice of the:

(a)—(b) (text unchanged)

(3) An applicant may submit to the [Commission] Agency a written request for a reconsideration meeting within 15 days of the date of the notice described in §B(2) of this regulation.

(4) If an applicant fails to timely submit a request under §B(3) of this regulation, the Commission may adopt as final the recommendation of the [Director or the Director’s designee] Agency.

(5) (text unchanged)

(6) If after the reconsideration meeting the applicant is dissatisfied with the recommendation of the [Director or the Director’s designee] Agency, the applicant may submit to the Commission, in writing:

(a) A request for hearing before the Commission on the recommendation of the [Director or the Director’s designee] Agency; and

(b) The applicant’s legal and factual bases for disagreeing with the recommendation of the [Director or the Director’s designee] Agency.

(7) An applicant may submit a hearing request to the Commission within 15 days of the date of the recommendation of the [Director or the Director’s designee] Agency after the reconsideration meeting.

(8) If an applicant fails to timely submit a hearing request under §B(6) of this Regulation, the Commission may adopt as final the recommendation of the [Director or the Director’s designee] Agency.

(9) A hearing request that complies with §B(6) of this regulation shall be the subject of a hearing before the Commission under COMAR 36.01.02.06, after which the Commission shall:

(a)—(b) (text unchanged)

(10) The applicant shall have the burden to show by clear and convincing evidence it is qualified to hold an amusement gaming license.

[(10)] (11) (text unchanged).

C. (text unchanged)

36.08.04 General Standards

Authority: Criminal Law Article, §§12-301 and 12-301.1, Annotated Code of Maryland

.01 General Standards.

A. A skills-based amusement device is not legally operated if:

(1) Unless authorized under COMAR 36.08.03, the merchandise, prizes, tickets, tokens, or other objects awarded [per play] exceeds the minimal value;

(2)—(8) (text unchanged)

B. The merchandise, prizes, tickets, tokens, or other objects that are awarded by a skills-based amusement device may be accumulated and exchanged for non-cash merchandise or prizes [of value that is similar to the cumulative value of the items exchanged] that have a wholesale value of not more than the minimal value.

C. If a registered skills-based device owner offers a device described in §A of this regulation, the Commission may take enforcement action as provided in Regulation .03 of this chapter.

.03 Enforcement Action.

A. The Commission may take an enforcement action if a registered skills-based amusement device owner fails to comply with this subtitle.

B. The Commission may:

(1) Suspend a registered skills-based amusement device owner’s registration;

(2) Determine that the registered skills-based amusement device owner is no longer qualified to offer skills-based amusement devices in Maryland; or

(3) Disqualify the registered skills-based device owner from qualification for any other license, registration, or certification from the Commission.

C. A skills-based amusement device owner whose registration is suspended or found no longer qualified to offer skills-based amusement devices in Maryland shall:

(1) Remove its skills-based amusement devices from locations in Maryland;

(2) Cease offering skills-based amusement devices in Maryland; or

(3) Take such action required by the Commission to come in compliance with this subtitle.

Subtitle 09 ONLINE FANTASY COMPETITION

36.09.01 General

Authority: State Government Article, §§9-1D-01, 9-1D-02, 9-1D-03, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018

.02 Definitions.

A. (text unchanged)

B. Terms Defined.

(1) “Beginner player” means [any] a fantasy competition player who:

(a) (text unchanged)

(b) [Does not meet the definition of highly] Is not a highly experienced player.

(2) (text unchanged)

[(3) “Fantasy competition” has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland, and includes a competition in which:

(a) A prize is awarded;

(b) One or more players are subject to and may pay an entry fee;

(c) The fantasy competition operator offering the competition receives compensation in connection with the competition regardless of the outcome;

(d) The winning outcome is not based on:

(i) The score, point spread, or any performance of any single actual team;

(ii) The score, point spread, or any performance of any combination of teams; or

(iii) Any single performance of an individual athlete or player in any single actual event; and

(e) Fantasy competition players compete against other fantasy competition players and not the fantasy competition operator.]

(3) Fantasy Competition.

(a) “Fantasy competition” means any online fantasy or simulated game or contest such as fantasy sports, in which:

(i) Participants own, manage, or coach imaginary teams;

(ii) All prizes and awards offered to winning participants are established and made known to participants in advance of the game or contest;

(iii) The winning outcome of the game or contest reflects the relative skill of the participants and is determined by statistics generated by actual individuals (players or teams in the case of a professional sport);

(iv) No winning outcome is based solely on the performance of an individual athlete or on the score, point spread, or any performances of any single real-world team or any combination of real-world teams;

(v) Players may pay an entry fee;

(vi) The operator offering the competition receives compensation for organizing the fantasy competition; and

(vii) Fantasy competition players compete against other fantasy competition players and not the operator.

(b) “Fantasy competition” does not include:

(i) Sports wagering under State Government Article, §§ 9-1E-01 et seq., Annotated Code of Maryland;

(ii) A fantasy competition where a player competes directly or only against another player’s fantasy lineup;

(iii) A wager in which a player chooses between two or more lineups, athletes, outcomes, or similar statistical groupings, and commonly referred to as pick’em;

(iv) A wager in which a fantasy competition operator sets a number for a statistic in a fantasy competition, and a player wagers that the actual result in the competition will be higher or lower than the number set by the operator and commonly referred to as an over-under wager or bet;

(v) A wager the involves two or more wagers combined into one wager an commonly referred to as a parlay; or

(vi) A wager on an individual action, statistic, occurrence, or non-occurrence which is determined during a fantasy competition and commonly referred to as a proposition wager or bet.

(4) “Fantasy competition operator”, or “operator” has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland.

(5) (text unchanged)

(6) “Fantasy competition player” [has the meaning stated in State Government Article, §9-1D-01, Annotated Code of Maryland], or “player” means an individual who participates in a fantasy competition offered by an operator.

(7) “Fantasy contractor” means any person or entity who:

(a) Is registered to do business in the State;

(b) Operates in the State;

(c) Manages a fantasy competition platform;

[(a)] (d) Works under [an independent] a contract with a fantasy competition operator; and

[(b)] (e) Has regular access to:

(i) (text unchanged)

(ii) Information on [a fantasy competition] an operator’s computer network that is not publicly available; or

(iii) [A fantasy competition] An operator’s proprietary information that may affect [gameplay] the outcome of a competition.

(8) “Highly experienced player” means [any] a fantasy competition player who has:

(a) Entered more than 1,000 fantasy competitions offered by a single [fantasy competition] operator; or

(b) (text unchanged)

(9)—(10) (text unchanged)

(11) “Player funds” means funds deposited by a fantasy competition player into an account to facilitate entry into a fantasy [competitions] competition.

(12) “Private fantasy [sports] competition” means a fantasy [sports] competition that is only open to:

(a) Employees of [a fantasy competition] an operator;

(b) Immediate family members of an employee of [a fantasy competition] an operator; and

(13)—(16) (text unchanged)

(17) “Segregated account” means a financial account that [segregates] separates funds owned by a fantasy player from the operational funds of [a fantasy competition] an operator.

36.09.02 Registration and Enforcement

Authority: State Government Article, §§9-1D-01, 9-1D-03, 9-1D-04, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018

.01 Application for Registration.

A. Unless an operator is registered with the Commission, the operator may not offer a fantasy competition in the State.

B. An operator seeking to offer a fantasy competition in the State shall request registration with the Commission by submitting a registration request in the manner specified by the Commission.

C. A request for registration shall include:

(1) The name and principal address of the operator;

(2) The name and address of each fantasy competition contractor, if applicable;

(3) The name and address of the operator’s resident agent in the State;

(4) The name and address of the fantasy competition contractor’s resident agent in the State, if applicable;

(5) A point of contact for the operator and each named fantasy competition contractor;

D. If information in the registration application changes the operator shall notify the Commission within 10 work days after the change occurs.

.02 Approval of a Fantasy Competition.

A. For each fantasy competition to be offered by an operator, the competition’s rules as required under Regulation .03 of this chapter shall be approved by the Commission.

B. An operator shall ensure that Agency staff may access the fantasy competition platform to:

(1) Test the fantasy competition offering;

(2) Verify that the fantasy competition’s terms, instructions, and rules are:

(a) Consistent with applicable laws and Agency regulations;

(b) Consistent with State Government Article, Title 9-1D, Annotated Code of Maryland and this subtitle; and

(c) Prominently displayed;

(3) Verify that the fantasy competition operates in compliance with State Government Article, Title 9, Subtitle 1D, Annotated Code of Maryland and this subtitle; and

(4) Monitor the fantasy competition to verify ongoing compliance with State Government Article, § 9-1D-01(d), Annotated Code of Maryland and this subtitle.

C. An operator shall provide evidence satisfactory to the Commission that it has established and will implement procedures to:

(1) Restrict fantasy competition play as required under COMAR 36.09.03.03;

(2) Comply with financial standards as required under COMAR 36.09.04;

(3) Comply with its Agency-approved responsible gaming plan as required under COMAR 36.09.05; and

(4) Any additional information required by the Commission.

D. If the Commission determines that an operator’s offering is not a fantasy competition then that offering may not be provided in the State by the operator.

E. A determination under this regulation is final and not appealable.

F. The Commission may maintain a publicly available list of approved registered fantasy competition operators.

[.02] .03 New or Modified Fantasy Competition Rules.

A. [Prior to conducting a new type of fantasy competition, a fantasy competition operator shall submit proposed fantasy competition rules to the Commission] New Fantasy Competition.

(1) If a registered fantasy competition operator seeks to offer a fantasy competition that the Commission has not yet approved, the operator shall submit to the Commission the information about the offering required under COMAR 36.09.02.

(2) An operator may not offer a fantasy competition until the Commission has approved the offering.

B. [A fantasy competition operator may offer minor variations of a fantasy competition without having to submit new fantasy competition rules to the Commission] Modifications.

(1) As provided in §B(2) of this regulation, a fantasy competition operator may offer a modified fantasy competition without submitting a new set of rules to the Commission.

(2) Minor modifications to an approved fantasy competition are permitted and may include:

(a) A previously offered competition that is in the same format;

[C. Minor variations of a fantasy competition include:

(1) Offering a contest format for any sport, league, association, or organization previously offered for any fantasy competition;

(2) Offering a fantasy competition only to employees of a fantasy competition operator;]

[(3)] (b) The prize value or entry fee of [a] for the fantasy competition;

(c) [and] The number of entries permitted;

[(4) Nonmaterial changes to entry fee and prize structure;

(5) The number of athletes that a player selects to fill a roster when completing an entry;

(6) The fields that a player must fill in when completing an entry;]

[(7)] (d) Adjustments to a scoring system related to number of points a player may obtain for a particular event; and

[(8)] (e) Adjustments to a salary cap or budget related to the fantasy team a player creates.

[.03] .04 [Fees.] Registration Fee.

[A. A registration fee of $100 shall be paid to the Commission to process a registration application of a fantasy competition operator.

B. The fees paid under this regulation are nonrefundable.]

An operator shall pay the Commission a nonrefundable registration fee of $1,000 with the operator’s registration application.

[.04] .05 Renewal Requirements.

A. Unless a registration is renewed, [a fantasy competition] an operator’s registration expires 1 year from the last date of registration.

[B. The Commission may renew a fantasy competition operator’s registration if, before the term of the registration expires, the fantasy competition operator:

(1) Applies for renewal no later than 45 days prior to the expiration of its current registration;

(2) Submits updated and current copies of all of the documents and information required under Regulation .01 of this chapter; and

(3) Pays a renewal registration fee in the amount of $100 to the Commission.]

B. Upon receipt of an invoice from the Commission for renewal, an operator shall pay the non-refundable renewal fee of $1,000 to continue conducting fantasy competitions in the State.

.06 Enforcement Action.

A. The Commission may take enforcement action against an operator for noncompliance with State Government Article, § 9-1D-01(d), Annotated Code of Maryland or this subtitle.

B. Enforcement action may include:

(1) Suspension of an operator’s registration; or

(2) Termination of an operator’s registration.

C. An operator whose registration is suspended or terminated shall:

(1) Cease offering fantasy competitions in the State; and

(2) Take action directed by the Commission.

D. The Commission may consider an enforcement action taken under this regulation when evaluating the operator’s qualification for a license, registration or certification issued by the Commission.

36.09.03 General Standards and Prohibitions

Authority: State Government Article, §§9-1D-01, 9-1D-03, 9-1D-04, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018

.01 [Prohibition on] Individuals Affiliated with the Agency Prohibited from Fantasy Competition Play.

Participation in a fantasy competition [for which there is an entry fee] is prohibited for:

A. [A minor, who is an] An individual under the age of 18;

B. (text unchanged)

C. An [officer or an] employee of the Agency;

D. An individual who lives in the same principal residence as a Commission member or an [officer or] employee of the Agency and is the member’s, [officer’s,] or employee’s:

(1) Spouse [or domestic partner];

(2)—(4) (text unchanged)

E. An individual who has [asked to be excluded] under COMAR 36.09.05.

[.03] .02 [Restrictions on Fantasy Competition Play by] Individuals [Associated] Affiliated with Operators Prohibited from Fantasy Competition Play.

A. Except as provided in §B of this regulation an employee, principal, officer, director[, or contractor of a fantasy competition] of an operator, a fantasy competition contractor, or a member of that individual’s immediate family, is prohibited from participating in a fantasy competition offered by [any fantasy competition] that operator[; and] .

B. [Exception.] An affiliated individual [associated with a fantasy competition operator] may participate in a fantasy competition [only] if:

(1) Participation is for testing purposes; [and

(a) The individual uses a clearly marked test account for testing purposes including evaluating a fantasy competition platform;

(b) The individual fully discloses affiliation with a fantasy competition operator to each fantasy competition player in the fantasy competition;

(d) The individual awards any prize won in a fantasy competition to the participant who would have won the prize if the individual associated with a fantasy competition operator had not participated]; or

(2) The [fantasy] competition is a private fantasy competition [that is:

(a) Clearly marked as a private fantasy competition;

(b) Limited by the fantasy competition operator to:

(i) Employees of the fantasy competition operator;

(ii) Immediate family members of an employee of the fantasy competition operator; and

(iii) Friends of an employee of a fantasy competition operator; and

(c) Contains a prominently displayed statement informing players that the fantasy competition may include players with specialized knowledge and expertise that could affect their odds of winning].

[.04] .03 [Prohibition on Fantasy Competition Play by Athletes and Others] Athletes and Affiliates Prohibited from Fantasy Competition Play.

A. An athlete, sports agent, team employee, handler, referee, or league official, or a member of [that] the individual’s immediate family, is prohibited from [entering] participating in a fantasy [competitions] competition that is based on an underlying sporting [events] event in which the individual [is a participant] is affiliated.

B. An athlete, sports agent, team employee, handler, referee, or league official, or a member of that individual’s immediate family, may not enter fantasy competitions based on underlying sporting events in which the individual is a participant through another person as a proxy.

[.05] .04 [Ensuring Fair Outcomes in Fantasy Competitions] Player Protections.

A. [Fantasy Competition] Scripts.

(1) A fantasy competition operator may not permit the use of [unauthorized scripts] a script on a [fantasy competition] platform [and shall use commercially reasonable efforts to monitor for and prevent use of such scripts.] if the script would allow a player to gain a competitive advantage by:

[(2) For the purpose of §A(1) of this regulation, scripts shall be treated as offering a competitive advantage if potential uses include:]

(a) Facilitating changes in many [line ups] lineups at one time;

(b) Facilitating use of a commercial [products] products designed [and distributed by third parties] to identify advantageous game strategies;

(d) Gathering information about the performance of others for the purpose of identifying or entering competitions against other less successful fantasy competition players [who are less likely to be successful].

[(3)] (2) [Authorized scripts] Scripts shall be available to all fantasy competition players by incorporation [shall either be incorporated] as a game feature or [be] prominently displayed [and thereby made available to all fantasy competition players].

B. Beginner Games and Identification of Highly Experienced Players.

(1) [Fantasy competition operators shall] An operator may offer [some] fantasy competitions that are limited to beginner players and exclude highly experienced players.

(2) [Fantasy competition operators] An operator shall [clearly and] prominently [display] indicate that a highly experienced player is participating in a fantasy competition by attaching a symbol to the username of a highly experienced player[, or by other easily visible means].

C. Fantasy Competition Entries.

[(1) A fantasy competition] An operator shall [disclose] identify the number of entries a fantasy competition player may submit for each fantasy competition.

[(2) A fantasy operator shall take reasonable steps to prevent fantasy competition players from submitting more than the allowable number of entries.]

D. Limit on Number of Accounts. [A fantasy competition] An operator may not permit a player to establish more than one account [with a fantasy competition operator].

E. Disputes. [Fantasy competition operators] An operator shall provide [an opportunity for fantasy competition] a mechanism for a [players] player to [file a player] raise a dispute with an operator.

F. Data. [Fantasy competition operators] An operator shall prominently display the source of the data utilized in determining results.

[.06] .05 Prohibition on Fantasy Competitions Based on Amateur Sports.

[A fantasy competition] An operator may not offer a fantasy competition based on a sporting event featuring amateur athletes who are primarily under 18 years old.

[.07] .06 Prohibition on Advertising.

[Fantasy competition operator advertisements] Except for professional athletes and professional sports, an operator’s advertisement may not depict:

A. Minors[, except professional athletes who may be minors];

B. Students; or

C. Schools or colleges[; or

D. School or college settings].

36.09.04 Financial Standards

Authority: State Government Article, §§9-1D-01, 9-1D-02, 9-1D-03, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018

.01 Financial Account Protections.

A. [A fantasy competition] An operator shall hold a fantasy competition player’s funds:

(1) In a segregated account that separates player funds from the operator’s operational funds [of the operator]; or

(2) In a special-purpose, segregated account that is maintained and controlled by a properly constituted corporate entity that:

(a)—(c) (text unchanged)

(d) Has articles of incorporation that prohibit commingling of fantasy competition player funds with those of the [fantasy competition] operator, except as necessary to reconcile the accounts of fantasy competition players with sums owed to the [fantasy competition] operator by those fantasy competition players;

(e) Is restricted from incurring debt other than to fantasy competition players pursuant to the [fantasy competition] operator’s rules governing the accounts of its fantasy competition players;

(f) Is restricted from taking on obligations of the [fantasy competition] operator other than obligations to its fantasy competition players pursuant to the [fantasy competition] operator’s rules governing the accounts of its fantasy competition players; and

(g) Other than a special purpose corporate entity established by another [fantasy competition] operator that meets the requirements of this subtitle, may not dissolve, merge, or consolidate with another company while there are unsatisfied obligations to fantasy competition players.

B. A [fantasy competition] An operator shall comply with all applicable State and federal requirements for data security.

.02 Limits on Deposits.

A. This regulation does not apply to a season-long fantasy [competitions] competition.

B. Except as provided in §C of this regulation, a fantasy competition player may not deposit more than $5,000 in a single calendar month with [a fantasy competition] an operator.

C. [Exception.] A [fantasy competition] player may request [a fantasy competition] an operator to temporarily or permanently increase [a] the player’s deposit limit above $5,000 per calendar month [only] if:

(1) [The fantasy competition operator has established and prominently displayed procedures for considering a request from a fantasy competition player to increase the deposit level;

(2)] Procedures for considering a request from a fantasy competition player to increase a deposit level include evaluation of information, including evidence of income or assets, sufficient to confirm the financial ability of a [fantasy competition] player to afford losses which may result from fantasy competition play at the deposit level requested by the [fantasy competition] player; and

[(3)] (2) After the operator approves a player’s temporary or permanent deposit level increase [has been approved], the [fantasy competition] player undergoes an annual evaluation by the [fantasy competition] operator of information sufficient to confirm the continued financial ability of the [fantasy competition] player to afford losses that may result from fantasy competition play at the increased deposit level.

.03 Prohibition on [Extensions] Extension of Credit.

(text unchanged)

.04 Financial Auditing.

A. [A fantasy competition operator that conducts competitions that require an entry fee and] An operator that generates gross annual revenues of $250,000 or more [in Maryland] shall ensure that a financial audit of its fantasy competition operations is performed annually by a certified public accountant.

B. The certified public [accounting firm] accountant that conducts the financial audit shall:

(1) (text unchanged)

(2) Submit the financial audit report to the Commission within 180 days [of] after the [fantasy competition] operator’s fiscal year end.

[C. The financial audit does not preclude any State or federal agency from conducting an audit of a fantasy competition operator.]

[D.] (C) (text unchanged)

[E.] (D) [If the Commission deems it necessary, the Commission may] Nothing in this regulation precludes the Commission’s authority to require a fantasy competition operator [that is not otherwise required by §A of this regulation to have a financial audit performed by a certified public accountant] to obtain more than one financial audit annually and provide the Commission with the audit report.

.05 [Taxation] Proceeds; Tax.

A. [A fantasy competition] An operator shall retain 85 percent of its fantasy competition proceeds [from players in Maryland] and pay the remaining 15 percent to the Commission.

B. [A fantasy competition operator shall pay 15 percent of its Maryland player proceeds to the Commission] A fantasy competition operator shall submit its 15 percent share of proceeds and tax return to the Commission quarterly:

(1) No later than the 15th day of the month that follow the end of each quarter;

(2) For the tax return, by email as designated by the Commission; and

(3) For the tax, by wire transfer.

C. If an operator fails to submit its quarterly tax and a properly completed tax return to the Commission by the end of the month following the end of a quarter, the Commission may suspend the operator’s registration.

D. If the Commission suspends an operator’s registration under §C of this regulation, the Commission may lift the suspension after the operator submits the tax return and the tax payment.

.06 [Reporting] Reports.

[A. Fantasy competition operators shall report fantasy competition prize payouts larger than $600 to the Comptroller of Maryland and the Internal Revenue Service in accordance with applicable tax laws] For a fantasy competition prize paid that is $600 or greater, the operator shall:

A. Report the prize to the Comptroller of Maryland and the Internal Revenue Service in accordance with applicable tax laws; and.

B. [A fantasy competition operator shall provide] Provide the player a 1099 MISC. tax form [to players that receive a prize payout larger than $600].

.07 Tax Laws and Disclosures.

A. (text unchanged)

B. A fantasy competition operator shall [disclose] provide a player with notice of State and federal tax reporting and withholding requirements [to fantasy competition players before the fantasy competition begins and again at the time of award of any prize in excess of $600]:

(1) Before a fantasy competition begins; and

(2) When a player receives winnings in excess of $600.

36.09.05 Responsible Gambling

Authority: State Government Article, §§9-1D-01, 9-1D-02, 9-1D-03, and 9-1D-05, Annotated Code of Maryland; Ch. 853, Acts of 2018

.01 Direct Exclusion Through Fantasy Competition Operator.

A. An individual may request exclusion from [entering a] fantasy competition play by submitting to the [fantasy competition] operator a self-exclusion request using a self-exclusion tool provided by the [fantasy competition] operator on its website.

B. [A fantasy competition] An operator shall implement and prominently display procedures for players to self-exclude themselves.

C. Self-excluded persons may not collect [any prizes] a prize or recover [any losses] a loss [arising as result of any prohibited participation in a fantasy competition operator's fantasy competition].

D. A request for self-exclusion from a fantasy competition may result in exclusion from other gaming platforms that the operator offers.

[D.] E. A request for exclusion submitted to [a fantasy competition] an operator:

(1) Is not [an application for voluntary exclusion through the Commission under COMAR 36.01.03] a request to be placed on the Commission’s Voluntary Exclusion List for participating in fantasy competitions under COMAR 36.01.03;

(2) Will not result in inclusion on the Commission's Voluntary Exclusion List for participating in fantasy competitions; and

(3) (text unchanged)

.02 Responsible Gaming Plan.

A. [A fantasy competition] An operator shall establish a responsible gaming plan that includes at least the following elements:

(1)—(8) (text unchanged)

B. [A fantasy competition] An operator shall submit to the Commission the responsible gaming plan required under §A of this regulation for review and approval.

C. [A fantasy competition] An operator shall submit any amendments to a responsible gaming plan to the Commission prior to implementation.

D. [A fantasy competition] An operator shall submit to the Commission an annual report describing the operation of the responsible gaming plan.

.03 Fantasy Competition Operator Responsibilities.

A. [A fantasy competition] An operator shall:

(1) Prevent the participation in fantasy competitions by individuals who have self-excluded themselves from [entering fantasy competitions] participating in a fantasy competition; and

(2) (text unchanged)

B. [A fantasy competition operator may not market a contest by phone, text, email, or knowingly directing any form of individually targeted advertisement or marketing material to an individual if the individual is self-excluded or otherwise barred from playing in that fantasy competition.] If an individual is directly self-excluded or on the Commission’s Voluntary Exclusion List for fantasy competition play, an operator may not:

(1) Market a fantasy competition by phone, text, email; or

(2) Knowingly direct any form of individually targeted advertisement or marketing material to the individual.

Subtitle 10 SPORTS WAGERING PROVISIONS

36.10.12 Collection of Taxes, Fees, and Penalties

Authority: State Government Article, §§9-1A-02, 9-1A-04, 9-1A-33 and 9-1E-01—9-1E-15, Annotated Code of Maryland

.03 Obligation to Pay.

A.—B. (text unchanged)

C. If monthly sports wagering taxes are due, the licensee shall pay them to the Commission by wire transfer by the [5th] 7th day of the following month.

D. If, by the [seventh] 10th calendar day of the month, a sports wagering licensee fails to submit a properly completed sports wagering tax return and all taxes due to the Commission, the sports wagering license shall be automatically suspended.

E.—G. (text unchanged)

36.10.13 Sports Wagering Licensee Minimum Internal Control Standards

Authority: Education Article §§10-101 and 26-801; State Government Article, §§9-1A-02, 9-1A-04, 9-1A-33, 9-1E-01—9-1E-15; Annotated Code of Maryland

.06 Annual Audit and Other Regulatory Reports.

A. (text unchanged)

(2) If the revenue and assets of the Maryland sports wagering licensee operations are less than 75 percent of the combined total of the sports wagering licensee’s parent, Maryland specific audited annual financial statements of the sports wagering licensee revenue and assets.

C.—R. (text unchanged)

.37 Bettor Complaints.

A. A sports wagering licensee shall attempt to timely resolve a dispute with a bettor concerning the licensee’s sports wagering operation or payment of alleged winnings within 7 days after receiving the complaint.

B. [A sports wagering licensee who is unable to satisfactorily resolve a dispute with a bettor within 3 days of notice of the dispute shall notify the Commission of the dispute] A sports wagering licensee shall maintain, in a retrievable format approved by the Commission, a copy of all bettor complaints and all documentation of the licensee’s response.

C. [On receipt of notice by the sports wagering licensee of the dispute, the Commission shall provide the bettor with a Commission bettor complaint form together with instructions for completing and submitting the form.

D. The Commission shall investigate a complaint submitted to the Commission and notify the bettor and sports wagering licensee of its determination.

E. The Commission may provide a bettor with a complaint form at any time upon request.] On receipt of a complaint, the Commission shall investigate and notify the bettor and sports wagering licensee of its determination.

.40 Security of Funds and Data.

A. (text unchanged)

B. [A sports wagering] Unless a bettor provides documentable consent to the sports wagering licensee, the licensee may not share information that could be used to personally identify a bettor or their gaming habits with any third party other than the Commission, law enforcement with a warrant or subpoena, or a credit-reporting agency when determining whether an individual is credit-worthy.

C.—J. (text unchanged)

.45 Wind Down and Cessation of Operation.

A. Definitions. In this regulation, the following terms have the meaning indicated:

(1) “Cease operations” or “cessation of operations” means the date and time after which a sports wagering licensee temporarily or permanently stops accepting wagers in Maryland.

(2) “Wind down” means the process before and after a cessation of operations by which a sports wagering licensee ends its sports wagering operations in Maryland.

B. A sports wagering licensee that intends to cease operations shall submit to the Commission notice of its intent to cease operations at least 7 days before its proposed cessation of operations.

C. No more than 5 business days after submitting notice of its intent to cease operations, a sports wagering licensee shall submit to the Commission a wind down plan that specifies how the licensee will:

(1) Announce to its bettors, vendors, and the public when it will cease operations and wind down, including timelines;

(2) In clear and conspicuous terms, explain to bettors their rights and remedies associated with the licensee’s cessation of operations and wind down;

(3) Distribute winnings to a bettor holding an unredeemed winning sports wagering ticket;

(4) Distribute winnings to a bettor holding a sports wagering ticket for sporting events with outcomes that have not yet been determined;

(5) Pay all amounts in a bettor’s sports wagering account to the bettor;

(6) Close a bettor’s account;

(7) Close its platform to further public access;

(8) Distribute funds representing unredeemed winning tickets to the Problem Gambling Fund 182 days after the wager outcome has been determined;

(9)Transfer funds from bettor accounts to the State Comptroller if funds cannot be paid to the account owner;

(10) Satisfy current and future financial and reporting obligations related to its sports wagering operations; and

(11) Ensure the Commission has all information necessary to access and use a letter of credit, bond, or similar assurance mechanism to satisfy financial obligations, if needed.

C. A sports wagering licensee’s submissions required under §B of this regulation shall include verbatim, the communications it proposes to use to notify bettors of rights and remedies associated with its cessation of operations and wind down.

D. The Commission may:

(1) Approve a sports wagering licensee’s wind down plan;

(2) Approve submissions required in the wind down plan;

(3) Require changes to a wind down plan; or

(4) Reject the wind down plan.

E. A sports wagering licensee may only notify a bettor after the Commission approves the wind down plan.

F. At the conclusion of the wind down, a sports wagering licensee shall submit a report to the Commission as notification that it has completed all actions necessary and is terminating all operations in the State.

G. Nothing in this regulation is intended to change a requirement or obligation imposed under another statute or regulation.

36.10.14 Sports Wagering Requirements and Limitations

Authority: State Government Article, §§9-1E-01—9-1E-15, and 9-1E-17, Annotated Code of Maryland

.06 Reserve.

A.—E. (text unchanged)

F. A sports wagering licensee may satisfy the reserve requirements in this regulation if the licensee adds sufficient funds to cover the calculated requirement prior to the end of the following business day.

[F.] G. (text unchanged)

36.10.18 Sports Wagering Technical Standards

Authority: State Government Article, §§9-1E-01—9-1E-15, Annotated Code of Maryland

.04 Geolocation Systems.

A.—D. (text unchanged)

E. [The Commission may require additional geolocation requirements.] A sports wagering licensee shall:

(1) Prior to commencing operations, and annually thereafter, ensure its geolocation system is tested by a Commission approved testing laboratory;

(2 )Ensure that testing of the geolocation system includes:

(a) Attempts to place wagers at locations from outside of the State from multiple locations within varying distances from the State border;

(b) Attempts to place wagers at locations within the State from multiple locations within varying distances from the State border; and

(c) Attempts to place wagers in which the tester crosses the State border;

(3) For all geolocation testing, ensure that the frequency of geolocation check is documented and tested;

(4) Ensure that testing confirms that a geolocation check occurs immediately upon a change of IP address;

(5) Ensure that testing includes static and mobile connections; and

(6) Ensure that testing is completed on all device types using the most prevalent versions available.

F. A sports wagering licensee shall grant the Commission read only access to its geolocation system as required by the Commission.

G. In addition to the requirements in this regulation, the Commission may require a sports wagering licensee to implement other geolocation features.

.05 Bettor Accounts.

A.—E. (text unchanged)

F. Creation of a Bettor Account.

(1)—(2) (text unchanged)

(3) A sports wagering licensee shall implement a required multi-factor authentication process for all bettor accounts.

(4) A sports wagering licensee may use a multi-factor authentication process that uses a:

(a) One-time password or code sent to a device or account that is confirmed to be owned by the owner of the bettor account;

(b) Software token generated from an authentication application;

(c) Face ID or fingerprint verification application; or

(d) Different method approved by the Commission.

(5) The bettor must successfully complete a multi-factor authentication at account creation before the bettor may access their account and for each new device used to login to the account.

(6) The bettor must repeat multi-factor authentication at least every 14 days for each device.

G.—V. (text unchanged)

JOHN MARTIN
Director