SB 890 CAPTIVE INSURERS-PREMIUM RECEIPTS TAX STUDY (Published).pdf

Senate Bill 890 Captive Insurers - Premium Receipts Tax Study MIA Project Number: MIA- SB890 -27-0001/eMMA#:BPM058029

STATE OF MARYLAND

MARYLAND INSURANCE ADMINISTRATION

FINANCIAL REGULATIONS UNIT

SMALL PROCUREMENT SOLICITATION

FOR

SENATE BILL 890 CAPTIVE INSURERS - PREMIUM RECEIPTS TAX STUDY

MIA PROJECT NUMBER: MIA- SB890 -27-0001/eMMA#:BPM058029

NOTICE TO OFFERORS

Solicitation Issue Date: Monday, July 20, 2026.

Procurement Officer: Anthonia Chuku Office Phone: (410) 468-2374 Fax: (410) 468-2396 e-mail: Anthonia.chuku3@maryland.gov Cc: procurement.mia@maryland.gov

Closing Date and Time: Thursday, July 30, 2026, at 4:00 PM

NOTICE

Prospective Offerors who have obtained this document from eMaryland Marketplace Advantage , or who have received this document from a source other than the Procurement Officer, and who wish to assure receipt of any changes or additional materials related to this Solicitation, should submit their name and contact information directly to the Procurement Officer so that amendments to the Solicitation or other communications can be sent to them.

mailto:Anthonia.chuku3@maryland.gov

SMALL PROCUREMENT

SOLICITATION NUMBER: MIA- SB890 -27-0001/eMMA#:BPM058029

SCOPE OF WORK

The Maryland Insurance Administration (MIA) is the independent State agency that regulates the insurance industry in Maryland. The MIA is issuing this Consulting Solicitation under its small Procurement authority and expects to award one (1) Contract for a term of nine (9) months with no option to renew.

A. BACKGROUND

New legislation, 2026 Maryland Laws Ch. 638 (S.B. 890) (the “Act ”), mandates that the Maryland Insurance Administration (MIA), in consultation with relevant stakeholders, study the use, regulation, and taxation of captive insurance companies by entities in the State. The MIA is required to submit a final report detailing its findings and recommendations to the Governor, and, in accordance with § 2- 1257 of the State Government Article, the Senate Finance Committee, and the House Health Committee by January 1, 2027.

B. TECHNICAL REQUIREMENTS

1. The successful Offeror shall assist the MIA in conducting the study outlined in the Act. The Act requires the MIA's study to examine the following:

(1) utilization of captive insurance by nonprofit and for-profit entities;

(2) existing federal and state regulatory and taxation frameworks that apply to captive insurance, including states with and without established captive insurance frameworks, focusing on:

(i) mechanisms used for funding regulatory oversight; and

(ii) how other states tax capital contributions and internal reserves, including whether different tax treatments are applied based on the nonprofit or for-profit status of the captive owner;

(3) the feasibility, utility, and potential structure of establishing a state registry for captive insurance companies domiciled in other jurisdictions but used by entities in the State, including an analysis of how a registry framework could provide regulatory transparency and fund oversight operations; and

(4) the aggregate results of any completed investigations regarding the use of captive insurance by nonprofit and for-profit entities in the State.

C. DELIVERABLES REQUIRED

A. The selected firm will be responsible for assisting the MIA with collecting and analyzing the data pertaining to Subsection (b) of Section 1 of the Act, including but not limited to data provided by the MIA, and consulting with and assisting the MIA in drafting the report as required by the Act by November 1, 2026.

B. Provide Consulting support to the MIA by answering questions that may arise during Legislative Session. Contractor shall assign Contractor Personnel to provide support by telephone or videoconference during the MIA’s business hours (09:00 AM to 05:00 PM), Monday through Friday except for State holidays.

C. The contractor availability on an as-needed basis between January 13, 2027, and April 12, 2027, to address any additional questions that may arise during the General Assembly's Legislative Session.

D. The selected firm will use its knowledge of the captive industry to provide additional information in consultation with the MIA.

1. The State Contract Monitor for this Solicitation and the resulting Contract shall be Pam Giles, Manager, Financial Regulation Division, MIA, or his/her successor as named by the MIA. The State Contract Monitor may be contacted at:

MIA

200 St. Paul Place, Suite 2700 Baltimore, MD 21202 Phone: 410-468-2157 Email: pam.giles@maryland.gov

D. ADDITIONAL REQUIREMENTS

1. COMPANY QUALIFICATIONS.

a. Pursuant to §7-201 et seq. of the Corporations and Associations Article of the Annotated Code of Maryland, corporations not incorporated in the State shall be registered with the State Department of Assessments and Taxation, 301 West Preston St., Baltimore, Maryland 21201, before doing any interstate or foreign business in this State. Before doing any intrastate business in this State, a foreign corporation shall qualify with the Department of Assessments and Taxation.

b. The successful Offeror shall possess deep expertise in the captive insurance industry, including captive utilization and varying state regulatory frameworks (both established and non-captive states).

2. STAFFING QUALIFICATIONS. The successful Offeror must have:

a. at the time of proposal submission, and maintain for the duration of the Contract, any required license(s), registration(s), or other certification required by State or Federal law, or industry. Offeror shall submit evidence of such licensure in its Proposal.

b. a minimum of (10) years’ experience in captive insurance.

c. Expertise in captive insurance, regulatory compliance and risk management.

d. Understanding of both local and international regulatory frameworks affecting captives.

3. HOURS OF WORK. Unless otherwise authorized in writing by the State Contract Monitor, the successful Offeror shall ensure that its personnel is available during the hours of 09:00 AM to 05:00 PM Eastern Standard Time, Monday through Friday, on any day which the MIA is open for business, to conduct meetings, perform work, and any other project-related activities that require the participation of State personnel or use of the MIA’s facilities and equipment.

mailto:pam.giles@maryland.gov%20%20%20

4. PLACE AND TIME FOR DELIVERY OF DELIVERABLES. The successful Offeror shall deliver all deliverables required under the Contract electronically via email to pam.giles@maryland.gov on or before November 1, 2026, unless otherwise authorized in writing by the State Contract Monitor.

5. SUBSTITUTION OF PERSONNEL. All personnel described in the successful Offeror’s proposal shall perform continuously for the duration of the Contract, and for so long as performance is satisfactory to the MIA’s Contract Monitor. The successful Offeror may not substitute personnel without the prior written approval of the MIA’s Contract Monitor.

E. PAYMENT.

1. COMPENSABLE SERVICES. The Contractor will be paid at the Fully Loaded Hourly Rate for all services under the Contract for the base term and, if applicable, for the renewal period, as specified in the Financial Proposal or, if any, in the best and final offer (BAFO). Payment shall be made based upon the actual amount of satisfactory work performed. The MIA shall, in its sole discretion, determine whether work is satisfactory.

2. PAYMENT RATE. The Contractor shall specify a Fully Loaded Hourly Rate for consulting services. This rate is all-inclusive and not subject to adjustment due to variations in the Contractor’s costs. “Services” means the rendering of time, effort or work, and includes, but is not limited to, the professional, administrative, personal and/or contractual services provided and described in the Statement of Work, and also includes engineers, attorneys, accountants, consultants, subcontractors and any service that is associated with the provision of expertise or labor or both.

3. PAYMENT METHOD. The Contractor shall, as part of the Contract, agree to and exercise the following method of payment. The Contractor shall be paid a Fully Loaded Hourly Rate for all services under the Contract in nine (9) equal monthly installments. Contractor shall submit an invoice to the MIA within 30 days of delivery of services, unless otherwise directed by the Contract Monitor. All invoices shall specify the Contractor’s name, address, federal taxpayer identification number, describe the services delivered, the price, and the total amount billed.

The invoice shall be remitted by the 15th day of the calendar month immediately following the month during which services were performed. For example, work performed August 1, 2026 through August 31, 2026, shall be billed by September 15, 2026.

F. QUESTIONS. The Procurement Officer will accept written questions from prospective Offerors.

Such questions will be answered as quickly as is reasonably practicable and appropriate.

Questions may be submitted by e-mail to the Procurement Officer at procurement.mia@maryland.gov. All questions should be submitted in a timely manner to the Procurement Officer only. The Procurement Officer shall, based on the availability of time to research and communicate an answer, decide whether an answer can be given before the proposal due date. Answers to all substantive questions that have not previously been answered, and are not clearly specific only to the requestor, will be distributed to all potential Offerors who are known to have received a copy of the solicitation.

mailto:pam.giles@maryland.gov%20

G. ADDITIONAL TERMS

1. RIGHTS TO RECORDS. The Contractor agrees that all documents, software, and materials, including but not limited to, reports, workpapers, studies, computations and data prepared by the Contractor for purposes related to this Contract, or developed by the Contractor in connection with this Contract shall be the sole property of the Administration, and shall be available to the Administration at any time. The Administration shall have the right to use the same without restriction and without compensation to the Contractor other than that specifically provided by this Contract. Notwithstanding anything to the contrary in this Contract, Contractor shall have the right to retain a copy of all its workpapers and administrative records but shall not be entitled to use such documents except for the benefit of the State of Maryland or the Contractor’s internal record keeping requirements.

2. NONDISCLOSURE AND CONFIDENTIALITY OF PROPRIETARY INFORMATION. In accordance with the Insurance Article of the Annotated Code of Maryland, the MIA and the Contractor agree that all workpapers, working papers, recorded information, documents and copies thereof, and all other information written or oral, produced by, obtained by or disclosed to the MIA and the Contractor in the course of providing the services contemplated by this Agreement ("Proprietary Information") shall be forever given confidential treatment, shall not be subject to subpoena and shall not be made public by the MIA or the Contractor, except in accordance with the provisions of the Maryland Public Information Act or other applicable laws. Proprietary Information shall not include information which (1) is or becomes available to the public other than as a result of a disclosure by the Contractor or its representatives; (2) was or becomes available to the Contractor on a non-confidential basis from a source other than the MIA, the company filing the data, or their respective representatives, provided that such source is not known by the Contractor to be bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to the MIA; (3) is developed by the Contractor independently of any disclosures of information by the MIA. The Contractor shall not release any information concerning the services provided pursuant to the Contract or any part thereof to any member of the public, press, business entity, or any official body unless prior written consent is obtained from the MIA. The Contractor further agrees not to use such Proprietary Information for any purpose other than the provision of services as contemplated by the Contract. The Contractor agrees that damages would not be a sufficient remedy for any breach of the Contract or the provisions of any amendment by the Contractor or its representatives and, thus, that, in addition to all other remedies, the MIA shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy for any such breach. The Contractor also agrees to waive, and to use its best efforts to cause its representatives to waive, any requirement for the securing or posting of any bond in connection with any such remedy.

The Contractor shall be permitted to disclose Proprietary Information only to the Contractor’s employees who will have need of such data or information in connection with the performance of this Agreement. The Contractor shall clearly instruct such employees not to violate the confidentiality provisions contained herein, and the Contractor shall take appropriate steps to ensure that such obligations are fulfilled.

3. THIRD PARTY PATENTS, COPYRIGHTS, INTELLECTUAL PROPERTY. If the Contractor furnishes any design, device, material, process, or other item, which is covered by a patent or copyright or which is proprietary to or a trade secret of another, the Contractor shall obtain the necessary permission or license to permit the State to use such item or items. If any services furnished by the Contractor become, or in the Contractor's opinion are likely to become, the subject of a claim of infringement, the Contractor will, at its option and expense: (a) procure for the State the right to continue using the applicable item, (b) replace the service with a non-infringing service substantially complying with the item's specifications, or (c) modify the item so that it becomes non-infringing and performs in a substantially similar manner to the original item.

4. INDEMNIFICATION. The Contractor will defend or settle, at its own expense, any claim or suit against the State alleging that any such item furnished by the Contractor infringes any patent, trademark, copyright, or trade secret. If a third party claims that a service infringes that party’s patent, trademark, trade secret, or copyright, the Contractor will defend the State against that claim at Contractor’s expense and will pay all damages, costs and attorney fees that a court finally awards, provided the State (i) promptly notifies the Contractor in writing of the claim; and

(ii) cooperates with Contractor in the defense and any related settlement negotiations.

5. LOSS OF RECORDS. In the event of loss of any State data or records where such loss is due to the intentional act or omission or negligence of the Contractor or any of its subcontractors or agents, the Contractor shall be responsible for recreating such lost data in the manner and on the schedule set by the Contract Monitor.

H. PROPOSAL REQUIREMENTS AND BASIS FOR AWARD

1. PROPOSAL FORMAT. The Offeror shall submit a Technical Proposal, which describes how the

Contractor intends to provide the services requested, and demonstrates that the Offeror meets the requirements set forth under “Technical Requirements”. Under separate cover and using the “Financial Proposal” form (Attachment B), the Offeror shall also submit a Financial Proposal which specifies a Fully Loaded Hourly Rate. The form shall be completed in its entirety and may not be altered. Financial Proposal forms that are incomplete, inaccurate, or are made on forms that have been altered may be rejected and the Proposal determined to be nonresponsive.

2. SUBMISSION REQUIREMENTS.

i. Each proposal shall be submitted to the Procurement Officer by the date and time specified under “Closing Date and Time” on the Solicitation cover page.

ii. Electronic submissions will be accepted. If electronic submissions are authorized, electronic copies will be deemed to be an original.

iii. Delivery method.

Proposals shall be submitted electronically to the Procurement Officer by submitting your response in e-Maryland Marketplace Advantage (eMMA).

iv. Two Part (Double Envelope) Submission:

A. Technical Proposal consisting of:

1. Technical Proposal in searchable Adobe PDF format, and

2. a second searchable Adobe copy of the Technical Proposal, with confidential and proprietary information redacted, and;

B. Financial Proposal consisting of:

1. Financial Proposal entered into the price form spreadsheet within eMMA and all supporting material in Excel format.

2. a second searchable Adobe copy of the Financial Proposal, with confidential and proprietary information removed.

v. This solicitation is designated as a Small Procurement.

3. MULTIPLE BIDS. Multiple and alternative Proposals will not be accepted.

4. EXCEPTIONS. By submitting a Proposal in response to this Solicitation, a Contractor, if selected for award, shall be deemed to have accepted the terms of this Solicitation and the Contract (Attachment A). Any exceptions to the Solicitation or Contract must be clearly identified in the Contractor’s Proposal. A Proposal that takes exception to these terms may be rejected.

5. BEST AND FINAL OFFERS. When in the best interest of the State, the Procurement Officer may permit Offerors who have submitted responsive Proposals to revise their initial Proposals and submit, in writing, best and final offers.

6. BASIS OF AWARD. In accordance with COMAR 21.05.07.06D, this Contract will be awarded to the Offeror whose Proposal is most advantageous to the State. In making this determination, equal weight will be given to the Technical and Financial Proposal.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.

ATTACHMENT A

STATE OF MARYLAND

SMALL PROCUREMENT CONTRACT

SENATE BILL 890 CAPTIVE INSURERS - PREMIUM RECEIPTS TAX STUDY

PROJECT No. MIA- SB890 -27-0001/eMMA#BPM058029

This Contract (the “Contract”) is made by and between the State of Maryland, acting through the Maryland Insurance Administration (the “MIA”), located at 200 St. Paul Place Suite 2700, Baltimore, Maryland 21202, and __________________________________________________________________(the “Contractor), located at _________________________________________________________________.

In consideration of the promises and the covenants herein contained, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Scope of Work. Contractor shall provide the services described in the solicitation document and the Contractor’s proposal/quote, which are incorporated by reference and attached hereto as Exhibits A and B, respectively. Contractor’s performance shall be in accordance with the terms and conditions of this Contract and Exhibits A and B. If there are any inconsistencies between this Contract and Exhibits A through B, the terms of this Contract shall control. If there is any conflict among the Exhibits, the following order of precedence shall determine the prevailing provision.

a. Exhibit A – Solicitation No. ______________________, dated _________.

b. Exhibit B – Contractor’s Proposal/quote, dated ______________________.

2. Contract Term. The Contract term shall be for a period of nine (9) months, commencing ___________________________ and concluding at 11:59 pm on ___________________.

3. Compensation and Method of Payment.

a. Compensation. Contractor shall be paid in accordance with the terms of the Contractor’s Proposal (Exhibit B) for all work satisfactorily performed. Payment is contingent upon the State Contract Monitor’s approval of the invoice, who shall determine, in his/her sole discretion, whether performance is satisfactory. The total compensation for services to be rendered by the Contractor shall not exceed $_______________.

b. Invoices. Invoices shall include the Contractor’s name, address, taxpayer identification number, MIA Contract Number, the invoice date, a description of services rendered or delivered, the dates of service or delivery, itemized fees, and the total amount due. Invoices shall be submitted to the Contract Monitor within 30 days after the date services are delivered or completed for approval.

c. Time for Payment. The MIA shall pay the Contractor no later than thirty days after the Agency receives a proper invoice from the Contractor which is approved by the State Contract Monitor.

Charges for late payment of invoices, other than as prescribed by Title 15, Subtitle 1, State Finance and Procurement Article, Maryland Code, are prohibited.

4. Tax Identification Number. The Contractor’s federal tax identification number (Employer Identification Number or Social Security number, as applicable) is

5. Procurement Officer. The Procurement Officer shall be responsible for all matters related to the interpretation of this Contract. The Procurement Officer for this Contract is Anthonia Chuku, or her successor as named by the MIA. Notices shall be submitted to the Procurement Officer at procurement.mia@maryland.gov or by mail to Procurement Unit, Maryland Insurance Administration, 200 St. Paul Place, Suite 2700, Baltimore, MD 21202.

6. Contract Monitor. The State Contract Monitor shall be responsible for overseeing the Contractor’s performance required under the Contract and approving invoices. The State Contract Monitor for this Contract shall be Pamela Giles or his/her successor as designated by the MIA.

7. Disputes. Disputes arising under this Contract shall be governed by State Finance and Procurement Article, Title 15, Subtitle 2, Part III, Annotated Code of Maryland, and by COMAR

21.10 Administrative and Civil Remedies. Pending resolution of a dispute, the Contractor shall continue to perform this Contract, as directed by the Procurement Officer.

8. Termination for Convenience. The State may terminate this Contract, in whole or in part, without showing cause upon prior written notification to the Contractor specifying the extent and the effective date of the termination. The State will pay all reasonable costs associated with this Contract that the Contractor has incurred up to the date of termination, and all reasonable costs associated with termination of the Contract. However, the Contractor may not be reimbursed for any anticipatory profits that have not been earned up to the date of termination.

Termination hereunder, including the determination of the rights and obligations of the parties, shall be governed by the provisions of COMAR 21.07.01.12(A)(2).

9. Termination for Default. If the Contractor does not fulfill obligations under this Contract or violates any provision of this Contract, the Department or Agency may terminate the Contract by giving the Contractor written notice of termination. Termination under this paragraph does not relieve the Contractor from liability for any damages caused to the State. Termination hereunder, including the rights and obligations of the parties, shall be governed by the provisions of COMAR 21.07.01.11B.

10. Termination for Nonappropriation. If funds are not appropriated or otherwise made available to support continuation in any fiscal year succeeding the first fiscal year, this Contract shall be terminated automatically as of the beginning of the fiscal year for which funds are not available.

The Contractor may not recover anticipatory profits or costs incurred after termination.

11. Maryland Law Prevails. The law of Maryland shall govern the interpretation and enforcement of this Contract.

12. Anti-Bribery. The Contractor certifies that, to the Contractor’s best knowledge, neither the Contractor; nor (if the Contractor is a corporation or partnership) any of its officers, directors, partners or controlling stockholders; nor any employee of the Contractor who is directly involved in the business’s contracting activities, has been convicted of bribery, attempted bribery, or conspiracy to bribe under the laws of any state or of the United States.

13. Nondiscrimination. The Contractor shall comply with the nondiscrimination provisions of federal and Maryland law. The Contractor shall also comply with the provisions concerning Commercial Nondiscrimination set out in State Finance and Procurement Article, Title 19, Annotated Code of

Maryland.

14. Compliance with Laws. The Contractor hereby represents and warrants that it:

a. is qualified to do business in the State and that it will take such action as, from time to time hereafter, may be necessary to remain so qualified;

b. is not in arrears with respect to the payment of any monies due and owing the State, or any department or unit thereof, including but not limited to the payment of taxes and employee benefits, and that it shall not become so in arrears during the term of this Contract;

c. shall comply with all federal, State and local laws, regulations, and ordinances applicable to its activities and obligations under this Contract; and

d. shall obtain, at its expense, all licenses, permits, insurance, and governmental approvals, if any, necessary to the performance of its obligations under this Contract.

15. Modifications. This Contract may be amended only with the written consent of both parties.

Amendments may not significantly alter the scope of the Contract or significantly increase the Contract price.

IN WITNESS WHEREOF, the Parties have executed this Contract as of this ____day of ________, 2026__.

(Insert Contractor name) MARYLAND INSURANCE ADMINISTRATION

BY:________________________________ BY:____________________________________

Marie Grant, Commissioner or her Designee Name

Title

For Contractor:

Witnessed by

(signature) (print name)

Approved for legal sufficiency on this day in 2026

Assistant Attorney General

ATTACHMENT B

SMALL PROCUREMENT

FINANCIAL PROPOSAL FORM

SOLICITATION NUMBER: MIA- SB890 -27-0001/eMMA#BPM058029

The Contractor must specify a Fully Loaded Hourly Rate. This form must be completed in full and may not be altered in any way. A Proposal may be deemed nonresponsive and rejected if the form is altered, incomplete, or improperly completed.

CATEGORY

Fully Loaded Fixed Hourly Rate (FLFHR)

(A) Illustrated

Quantity* (B) Total Fully Loaded Hourly Rate (A*B)

Senate Bill 890 Captive Insurers - Premium Receipts Tax Study

Subtotal ------------------------- -----------------------

* Numbers are provided for illustration purposes only and are not a guarantee of a minimum or maximum quantity under the Contract.

TOTAL CONTRACT PRICE (Subtotal From Above Chart):

_____________________________________________________________ . The total contract price will be the price used for evaluation purposes.

Firm Name: ________________________________________________

Contractor’s Representative: _____________________________________

Signature: __________________________________________________

Date: ______________________________ Federal Tax I.D. # ______________________________