Committee approves major rewrite of state IT oversight, establishing Office of Digital Experience

The Health and Government Operations Committee voted to report favorably on a wide-ranging information technology oversight bill that expands reporting requirements for the Information Technology Investment Fund, requires capacity determinations before funding major IT development projects (MITDPs), and establishes a new Office of Digital Experience within state government.

Under the amendments adopted in subcommittee and approved on the floor, the Secretary of the Department of Information Technology (DoIT) must determine that a managing unit has the internal capacity to support an MITDP before funding for implementation is provided. The amendments require more frequent project reporting, including notice to the Board of Public Works (BPW) and the Legislative Policy Committee (LPC) within 30 days of awarding a contract and quarterly status reports for projects. DoIT must also publish and maintain a publicly available dashboard of projects and portfolios.

The bill establishes an Office of Digital Experience and a Maryland Digital Service unit to provide oversight, modernization strategy, and hands-on assistance to units implementing IT projects. The measure creates a Major Information Technology Development Project Oversight Division charged with adopting standards, monitoring performance, and intervening when necessary. The amendments also repeal the previously required Modernized Maryland Commission and assign those duties—such as developing a state modernization plan and identifying legacy systems—to DoIT; those deliverables are due on or before July 1, 2026.

Vicki Gruber of the Department of Legislative Services recounted the policy history and audit findings behind the measure: "This is an issue. It's been an issue for the state for decades," Gruber said, referencing earlier efforts dating to 2002 and an Office of Legislative Audits report that documented project overruns. Committee discussion noted that audits found substantial cost overruns on projects between the Department of Health and the Department of Human Services over a two-year period.

The amendments authorize the secretary of the Department of Budget and Management (DBM), with the approval of the governor and at DoIT's recommendation, to withhold unexpended funds and later reallocate or release them; reallocation proposals above $500,000 are subject to review by LPC. The bill authorizes limited transfers to stand up the Office of Digital Experience—up to $4,300,000 in staff augmentation funds and up to 20% of the balance in the Information Technology Investment Fund—and allows the governor to transfer up to 50 positions to the new office. The amendments further require DoIT and unit CIOs to meet quarterly and direct the Department of General Services (DGS), in consultation with DoIT, to report twice annually beginning December 31, 2025, on projects over $1,000,000 undertaken under master contracts for statewide agile resources.

Committee members praised the subcommittee and staff work on the bill; the committee moved and seconded the amendments and then voted the bill favorable on the record. No opposition was recorded in the transcript.

The legislation passed out of the committee for further action in the General Assembly; implementation details and transfers authorized by the bill will require administrative steps and potential executive branch approvals.