HARRY HUGHES, Governor

2687

[(a)] Unless otherwise specifically provided by the
laws of Maryland, the State of Maryland and every officer,
department, agency, board, commission, or other unit of
State government may not raise the defense of sovereign
immunity in the courts of this State in an action in
contract based upon a written contract executed on behalf of
the State, or its department, agency board, commission, or
unit by an official or employee acting within the scope of
his authority

7-102.

[(b)] In any such action, the State, or its officer,
department, agency, board, commission, or other unit of
government is not liable for punitive damages.

7-103.

[(c)] A claim is barred unless the claimant files suit
within [one] 1 year from the date on which the claim arose
or within [one] 1 year after completion of the contract
giving rise to the claim, whichever is later.

7-104.

[(d)] In order to provide for the implementation of
this section, the Governor annually shall provide in the
State budget adequate funds for the satisfaction of any
final judgment, after the exhaustion of any right of appeal,
which has been rendered against the State, or any officer,
department, agency, board, commission, or other unit of
government in an action in contract as provided in this
section.

SECTION 9. AND BE IT FURTHER ENACTED, That section(s)
of the Annotated Code of Maryland be repealed, amended, or
enacted to read as follows:

ARTICLE 21 - PROCUREMENT

SUBTITLE 2 RESOLUTION OF CONTROVERSIES
OVER CONTRACTS

7-201.

(A) UPON TIMELY DEMAND, AS DEFINED IN REGULATIONS
PROMULGATED BY THE DEPARTMENT, BY A PROSPECTIVE BIDDER OR
OFFEROR, BIDDER OR OFFEROR, OR CONTRACTOR, THE RESPONSIBLE
PROCUREMENT OFFICER OF THE USING AGENCY MAY, CONSISTENT WITH
THE BUDGET AND ALL APPLICABLE LAWS AND REGULATIONS,
NEGOTIATE AND RESOLVE DISPUTES RELATING TO THE FORMATION OF
A CONTRACT WITH THE STATE OR A CONTRACT WHICH HAS BEEN
ENTERED INTO BY THE STATE. DISPUTES RELATING TO THE
FORMATION OF A CONTRACT INCLUDE BUT ARE NOT LIMITED TO THOSE
CONCERNING THE QUALIFICATION OF BIDDERS OR OFFERORS AND THE
DETERMINATION OF THE SUCCESSFUL BIDDER OR OFFEROR. DISPUTES