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state-finance-procurement•Maryland Code, State Finance and Procurement
state-finance-procurementMd. Code, State Fin. & Proc.Code01.01.1900
(a) In this Division I of this article the following words have the meanings indicated.
(b) “County” means a county of the State and, unless expressly provided otherwise, Baltimore City.
(c) “Includes” or “including” means includes or including by way of illustration and not by way of limitation.
(d) “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, association, corporation, or other entity.
(e) “State” means:
(1) a state, possession, or territory of the United States;
(2) the District of Columbia; or
(3) the Commonwealth of Puerto Rico.
(a) The fiscal year for the State and its officers and units begins on July 1 of a calendar year and ends on June 30 of the next calendar year.
(b) Each officer and unit of the State government shall use the fiscal year for:
(1) appropriating money;
(2) authorizing expenditures;
(3) keeping records;
(4) balancing books and accounts; and
(5) making reports.
(a) On or before the 10th day of each regular session of the General Assembly, the Comptroller shall submit to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly an annual report on the fiscal operations of the State.
(b) The report shall state:
(1) for the fiscal year in which the report is made:
(i) the estimated State revenues; and
(ii) the estimated State expenditures; and
(2) for the preceding fiscal year:
(i) the total State funds;
(ii) the total State revenues;
(iii) the amount of revenues that the State received from each source;
(iv) the total State expenditures;
(v) the purposes of the expenditures;
(vi) each amount that the State claims is due from a political subdivision;
(vii) each amount that the State claims is due from an officer of a political subdivision who, by law, collects revenues for the State;
(viii) the total funds, from all State sources, that the State transferred to each political subdivision; and
(ix) the amount of those transferred funds, as calculated for each $100 of assessed value of property in a political subdivision.
After each regular session of the General Assembly, the Comptroller shall deliver to the printer who is designated to print the session laws an accurate statement of receipts and expenditures of public money for the last full fiscal year preceding that session.
(a) On or before January 1 of each year, the Treasurer shall submit an annual report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly.
(b) (1) The report shall describe the activities and operation of the Office of the Treasurer during the preceding fiscal year.
(2) The report shall include:
(i) a statement on the management of State funds;
(ii) a statement on the interest earned on investments; and
(iii) a statement on the administration of the State Insurance Program and the State Insurance Trust Fund, including any recommendations for changes in their operation.
(a) (1) In this section the following words have the meanings indicated.
(2) “Bond” means any evidence of debt.
(3) “Official” includes:
(i) a comptroller;
(ii) a chief financial officer; and
(iii) a treasurer.
(4) “Public body” means:
(i) a unit of the State government; or
(ii) a county, municipal corporation, public corporation, special authority, or other political subdivision of the State.
(b) If a public body is authorized to incur debt to be redeemed from the proceeds of any tax or levy, an authorized official of the public body shall submit to the State Treasurer:
(1) on or before January 1 of each year, a report on bonds anticipated to be issued during the next 7-month period; and
(2) on or before July 1 of each year, a report on bonds anticipated to be issued during the next 7-month period.
(c) (1) A report under this section shall be in the form the State Treasurer requires.
(2) The report shall include:
(i) a statement of the amount of bonds that the public body expects to issue during the period that the report covers; and
(ii) for each issue of bonds, a statement of:
1. the month and part of the month during which the bonds will be issued;
2. the term for which the bonds will be outstanding; and
3. whether the bonds will be sold at a public or private sale.
(d) (1) The State Treasurer shall prepare:
(i) on or before January 31 of each year, a compilation of the information in the reports submitted for the current January 1 to July 31 period; and
(ii) on or before July 31 of each year, a compilation of the information in the reports submitted for the current July 1 to January 31 period.
(2) The compilation shall include any additions or corrections to the information in the reports.
(3) The State Treasurer shall send a copy of the compilation to each official who submitted a report included in the compilation.
(e) The State Treasurer shall:
(1) make the reports and compilations available for inspection during normal business hours; and
(2) provide a copy of a report or compilation to any person who first pays to the State Treasurer a fee to cover costs.
(f) (1) An official is not personally liable for failure to submit a report under this section.
(2) Failure to submit the report or to comply with other requirements of this section does not affect:
(i) the authority of a public body to incur debt; or
(ii) the validity of any debt that the public body incurs.
(a) As provided by the Comptroller by regulation, each unit of State government that imposes fees of any kind shall maintain and make available to the Comptroller up-to-date data regarding:
(1) the services or functions for which fees are imposed and the associated levels of the fees; and
(2) a comparison of the actual revenues generated by the fees and the total costs of providing the service or performing the function for which the fees are imposed.
(b) The Comptroller shall prepare and submit to the Governor and, subject to § 2-1257 of the State Government Article, the General Assembly, on a biennial basis on or before December 1 of every other year, a report compiling the data made available to the Comptroller under subsection (a) of this section.
(c) (1) The Comptroller shall adopt regulations to implement this section.
(2) The regulations adopted by the Comptroller under paragraph (1) of this subsection shall specify:
(i) that the data required for the Maryland Port Administration of the Department of Transportation shall be the data included in the port tariff;
(ii) that the Maryland Aviation Administration and the Maryland Port Administration shall disclose aggregate information on fees and costs, provided that such disclosure does not include information that is proprietary in nature; and
(iii) that any other department, agency, or governmental unit which collects fees or user charges that may contain privileged or proprietary information may aggregate or standardize the information submitted as needed to preserve the sensitive nature of the information.
(a) A unit of State government may not knowingly use public funds to influence the decisions of State employees to:
(1) support or oppose an employee organization that represents or seeks to represent the employees of the unit of State government; or
(2) become a member of an employee organization.
(b) This section does not apply to an activity performed or to an expense incurred in connection with:
(1) addressing a grievance or negotiating or administering a collective bargaining agreement;
(2) allowing an employee organization or a representative of an employee organization access to and use of State facilities or properties;
(3) performing an activity required by federal or State law or a collective bargaining agreement;
(4) negotiating, entering into, or carrying out a voluntary recognition agreement with an employee organization; or
(5) paying wages to a represented employee while the employee is performing duties if the payment is permitted under a collective bargaining agreement.
(a) In this section, “gift” has the meaning stated in § 1–109 of the General Provisions Article.
(b) Except as otherwise expressly provided by law, an officer or unit of the State government may not spend any money that derives from a gift until the Governor assents to the acceptance of the gift.
(c) If the Governor assents to the acceptance of a gift by an officer or unit, the officer or unit may use the gift in accordance with its terms. If the gift is money or generates money, the officer or unit may not spend the money until it is appropriated as provided in Title 7 of this article.
(a) In this section, “block grant” means any federal grant–in–aid that:
(1) contains consolidated funding for 1 or more programs;
(2) includes any change in the financing of a program that includes any kind of capped allocations or specific spending targets; or
(3) is designated by Congress as a block grant.
(b) It is the policy of the State that the General Assembly and the Governor should consult before the Executive Branch of the State government adopts State policy on block grants.
(c) (1) This section is in addition to and not in derogation of any other power or duty of the General Assembly.
(2) This section applies to the adoption of State policy to:
(i) participate in a block grant;
(ii) set a date on which the State will accept responsibility for a block grant; or
(iii) transfer money between block grants.
(d) The Governor shall send, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee each proposal for the adoption of State policy on a block grant.
(e) Within 60 days after the Legislative Policy Committee receives the proposal or, if the Committee sets a shorter period, within that period, the Committee:
(1) may hold a public hearing on the proposal;
(2) may refer the proposal to another committee for review; and
(3) for the General Assembly, may send the Governor comments on the proposal.
(f) The Governor may act on the proposal only after the expiration of the 60–day period or any shorter period set under subsection (e) of this section.
(a) (1) After consultation with the Department of Budget and Management, the Secretary of Planning shall adopt regulations that require a unit of the State government to submit information, as required in this section, on federal aid, including grants, instructional contracts, loans, research contracts, or other assistance.
(2) The regulations shall require a unit of the State government to obtain a State Application Identifier (SAI) from the Department of Planning.
(b) (1) Each 6 months, a unit shall submit a summary notice to the Department of Planning if, during the 6-month period that the notice covers, the unit has received an award of federal aid in the form of an instructional contract, instructional grant, research contract, or research grant.
(2) The summary notice shall state the amount of the award.
(c) (1) This subsection does not apply to an instructional contract, instructional grant, research contract, or research grant.
(2) When a unit applies for federal aid, the unit shall send to the Department of Planning a copy of the application.
(3) Within 30 days after a unit receives an award of federal aid, the unit shall submit to the Department of Planning a summary notice that states:
(i) the amount of the award; and
(ii) if the award is conditioned on matching funds:
1. the amount of those funds;
2. the source of those funds; and
3. the period for which those funds are required.
The Governor may designate any unit of the State government:
(1) to accept any surplus food that, under an act of Congress, is available to the State; and
(2) to manage and dispose of the food in accordance with federal law.
(a) (1) In this section the following words have the meanings indicated.
(2) “Board” means the Maryland Agricultural Education and Rural Development Assistance Board.
(3) “Council” means the Rural Maryland Council established under Title 13, Subtitle 4 of the Economic Development Article.
(4) “Fund” means the Maryland Agricultural Education and Rural Development Assistance Fund.
(b) The General Assembly finds and declares that:
(1) many nonprofit organizations that serve the needs of the rural areas of the State experience fiscal difficulties in addressing the areas of economic and community development and agriculture and forestry education because of the inadequacy of funding resources for them;
(2) these organizations do not have the access to private and public sources of funding that are generally more available to nonprofit groups that serve the needs of the metropolitan areas of the State; and
(3) as a result, the rural areas of the State face a serious deficit of resources where the need, in many instances, is greatest.
(c) (1) There is a Maryland Agricultural Education and Rural Development Assistance Fund that shall be administered by the Council.
(2) The purpose of the Fund is to provide funding:
(i) to rural regional planning and economic development organizations and rural community development programs whose missions and work have statewide implications and merit State support; and
(ii) to augment the efforts of advanced technology centers and similar programs that serve agricultural and natural resources based small businesses in rural areas through community colleges.
(3) (i) The Fund is a continuing, nonlapsing fund which is not subject to § 7–302 of this article.
(ii) The Treasurer shall separately hold and the Comptroller shall account for the Fund.
(iii) The Treasurer may invest money in the Fund in the same manner as other State money may be invested.
(4) Expenditures from the Fund may only be made:
(i) pursuant to an appropriation approved by the General Assembly in the annual State budget; or
(ii) by the budget amendment procedure provided for in § 7–209 of this article, provided that:
1. the budget amendment and supporting information have been submitted to the budget committees for their review and comment; and
2. at least 45 days have elapsed from the time the budget amendment and supporting information were submitted to the budget committees.
(d) The Council shall award grants on the basis of the binding recommendations of the Maryland Agricultural Education and Rural Development Assistance Board.
(e) (1) There is a Maryland Agricultural Education and Rural Development Assistance Board.
(2) The Board shall consist of:
(i) the Secretary of Agriculture or the Secretary’s designee;
(ii) the Secretary of Commerce or the Secretary’s designee;
(iii) the Secretary of Housing and Community Development or the Secretary’s designee;
(iv) the Secretary of Health or the Secretary’s designee;
(v) the Secretary of Natural Resources or the Secretary’s designee; and
(vi) the Chairman of the Council or the Chairman’s designee.
(3) The agencies listed in paragraph (2)(i) through (v) of this subsection may assist the Council with administering individual grant awards.
(4) The Board shall:
(i) establish procedures for applications for grants;
(ii) review applications for grants; and
(iii) make binding recommendations to the Council regarding the recipients of grants and the amount of the grants.
(5) The Board shall give funding priority to organizations described in subsection (c)(2)(i) of this section that have:
(i) obtained an equal matching amount of funding from a source other than the State in the immediate prior fiscal year; or
(ii) sufficient evidence of a commitment of a third party funding source to provide an equal matching amount of funding in the current fiscal year.
(f) (1) A grant recipient shall submit to the Council written documentation of how the grant recipient spent or otherwise used the grant.
(2) On or before October 1 each year, the Council shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly, a written report that includes:
(i) the number of grants made during the fiscal year;
(ii) the names of the recipients of the grants;
(iii) the specific purpose of each grant awarded; and
(iv) documentation of how the grant recipient spent or otherwise used the grant.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 469 AND 470 OF 2014 //
(a) (1) In this section the following words have the meanings indicated.
(2) “Agriculture” means the commercial production, storage, processing, marketing, distribution, or export of an agronomic, aquacultural, equine, floricultural, horticultural, ornamental, silvicultural, or viticultural crop, including:
(i) farm products;
(ii) livestock and livestock products;
(iii) poultry and poultry products;
(iv) milk and dairy products;
(v) timber and forest products;
(vi) fruit and horticultural products; and
(vii) seafood and aquacultural products.
(3) “Board” means the Maryland Agricultural Education and Rural Development Assistance Board established under § 2–206(e) of this subtitle.
(4) “Cooperative development” means activities to support the creation or growth of a business cooperative, including support for:
(i) business feasibility studies;
(ii) industry studies;
(iii) market studies;
(iv) the establishment of business entities; and
(v) administration of the business cooperative.
(5) “Council” means the Rural Maryland Council established under Title 13, Subtitle 4 of the Economic Development Article.
(6) “Fund” means the Rural Maryland Prosperity Investment Fund established under this section.
(7) “Regional councils” means:
(i) the Mid–Shore Regional Council;
(ii) the Tri–County Council for the Lower Eastern Shore of Maryland;
(iii) the Tri–County Council for Southern Maryland;
(iv) the Tri–County Council for Western Maryland; and
(v) the Upper Shore Regional Council.
(8) “Rural area” means:
(i) the following counties:
1. Allegany;
2. Calvert;
3. Caroline;
4. Carroll;
5. Cecil;
6. Charles;
7. Dorchester;
8. Frederick;
9. Garrett;
10. Harford;
11. Kent;
12. Queen Anne’s;
13. St. Mary’s;
14. Somerset;
15. Talbot;
16. Washington;
17. Wicomico; and
18. Worcester; and
(ii) portions of other counties in close proximity to agricultural activity.
(9) “Rural community” means an incorporated or unincorporated area of a county or group of counties in a rural area.
(10) “Workforce development” means activities to:
(i) assist workers with obtaining training in the necessary skills required by local employers; and
(ii) assist community colleges, career and technical education centers, local workforce boards, and similar organizations with efforts to provide training programs consistent with item (i) of this paragraph.
(b) The General Assembly finds that:
(1) many rural communities in the State face a host of difficult challenges relating to persistent unemployment and poverty, changing technological and economic conditions, an aging population and an out–migration of youth, inadequate access to quality housing, health care and other services, and deteriorating or inadequate transportation, communications, sanitation, and economic development infrastructure;
(2) Maryland’s agricultural and resource–based industries continue to underpin the local economies of rural communities but are increasingly under threat from national and international market competition, urban encroachment and land development pressure, and environmental and regulatory influences;
(3) local governments, regional organizations, educational institutions, and private sector service providers have been unable to meet all the economic development, community development, health care, and human services needs of Maryland residents in the rural counties and municipal corporations because of a lack of adequate available capacity and resources;
(4) the objective of the Rural Maryland Prosperity Investment Fund is to help raise the overall standard of living in rural areas to a level that meets or exceeds statewide benchmark averages by 2030, while preserving the best aspects of a pastoral heritage and rural way of life;
(5) resources provided to the Fund are designed to facilitate significant targeted investments in important economic, health care, and community development programs and promote regional and intergovernmental cooperation;
(6) these investments will also enable local and regional public and nonprofit organizations to leverage additional nonstate financial and human resources to facilitate the realization of sustainable rural development objectives while the program is in effect; and
(7) the Fund will serve the interests of the entire State by:
(i) encouraging the increase of entrepreneurial activity and commerce and a balanced economy in the State;
(ii) relieving conditions of unemployment and underemployment in rural areas;
(iii) assisting in the retention of valuable farm and forest land for productive use by present and future generations;
(iv) promoting intergovernmental cooperation and public sector/private sector partnerships in and between rural and other areas;
(v) enhancing the deployment of housing, transportation, water, wastewater, and broadband communications infrastructure and services in rural areas;
(vi) supporting rural commercial center redevelopment and community revitalization efforts; and
(vii) generally promoting the health, happiness, safety, employment opportunity, and general welfare of the residents of each of the rural counties and municipal corporations of the State.
(c) (1) There is a Rural Maryland Prosperity Investment Fund.
(2) The Fund is administered by the Rural Maryland Council with the assistance of the Board.
(3) The purpose of the Fund is to provide funding to rural regional and statewide planning and development organizations, institutions of higher education serving rural communities, rural community development organizations, and local governments acting in partnership with one another to promote the quality of life in rural areas.
(d) Each year, beginning in fiscal year 2008 and continuing through fiscal year 2030, the Governor may include an appropriation in the budget bill for the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of this article.
(2) The Treasurer shall separately hold and the Comptroller shall account for the Fund.
(3) The Treasurer may invest money in the Fund in the same manner as other State money may be invested.
(f) (1) Except as provided in paragraph (2) of this subsection, disbursements of money appropriated to the Fund shall be allocated in the following manner:
(i) one–third shall be allocated equally to the five regional councils as grants for rural regional planning and development assistance, by targeting support to the:
1. regional councils serving rural areas; and
2. multicounty efforts serving rural communities in areas not served by the regional councils; and
(ii) the remaining two–thirds shall be allocated equally as grants among the following categories:
1. regional infrastructure projects that directly involve two or more units of local government, not to exceed one–fourth of the total cost of any particular project;
2. rural entrepreneurship and agricultural development, including:
A. programs and activities serving rural communities undertaken by nonprofit organizations and institutions of higher education;
B. cooperative development; and
C. workforce development;
3. rural community development, programmatic assistance, and education, with money to be divided equally between the Council and the Maryland Agricultural Education and Rural Development Assistance Fund; and
4. rural health care organizations.
(2) If in any fiscal year revenues appropriated to the Fund are insufficient to fully fund all grants under paragraph (1) of this subsection, disbursements of money appropriated to the Fund shall be allocated as follows:
(i) $500,000 shall be allocated to the Council, of which:
1. $250,000 shall be used to support the operations of the Council; and
2. $250,000 shall be allocated to the Maryland Agricultural Education and Rural Development Assistance Fund established under § 2–206 of this subtitle; and
(ii) the remaining disbursements of money appropriated to the Fund shall be allocated in the manner described in paragraph (1) of this subsection.
(g) (1) Any money received by a regional council under subsection (f)(1)(i) of this section shall be used to benefit rural areas as the regional council determines.
(2) (i) Subject to subparagraph (ii) of this paragraph, the Board shall award grants from the Fund under subsection (f)(1)(ii) of this section on a competitive basis in accordance with the procedures in § 2–206(e) of this subtitle.
(ii) Any money received by the Council under subsection (f)(1)(ii) of this section shall be used to help administer the Fund and perform other functions that benefit rural areas as the Council determines.
(3) A grant recipient shall submit to the Council written documentation of how the grant recipient spent or otherwise used the grant.
(h) The Board may reallocate money from one category listed in subsection (f)(1)(ii) of this section to another category only if there is a lack of sufficient applications requesting use of money in a particular category.
(i) (1) On or before October 1 of each year, the Council shall submit a report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.
(2) The report shall summarize the activities of the Fund during the preceding fiscal year, including:
(i) the number of grants made during the fiscal year;
(ii) the names of the recipients of the grants;
(iii) the specific purpose of each grant awarded; and
(iv) documentation of how the grant recipient spent or otherwise used the grant.
(a) (1) In this section the following words have the meanings indicated.
(2) “Indirect costs” means any costs that would be considered to be indirect costs under OMB Uniform Guidance.
(3) “Nonprofit organization” means an organization that is tax exempt under § 501(c)(3), (4), or (6) of the Internal Revenue Code.
(4) “OMB Uniform Guidance” means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards adopted by the Office of Management and Budget in 2 C.F.R. 200 and any related guidance published by the Office of Management and Budget.
(b) (1) This section applies only to:
(i) a grant or contract awarded on or after October 1, 2018;
(ii) a multi–year grant or contract awarded before October 1, 2018, if:
1. the grant or contract continues to be in effect on or after October 1, 2018; and
2. funding for the grant or contract is required to be authorized separately for each fiscal year; and
(iii) an extension or a renewal of a grant or contract if the extension or renewal is awarded on or after July 1, 2019.
(2) This section applies whether or not the funds awarded through the grant or contract are transferred directly by the State or through a third party to the nonprofit organization.
(3) This section does not require the reimbursement of indirect costs incurred under a multi–year grant or contract described under paragraph (1)(ii) of this subsection during any fiscal year that begins before July 1, 2019.
(c) If a nonprofit organization is a direct recipient or subrecipient of a grant or contract for the provision of services that is funded wholly with State funds or with a combination of State and other nonfederal funds, the terms of the grant or contract shall allow for reimbursement of indirect costs:
(1) at the same rate the nonprofit organization has negotiated and received:
(i) for indirect costs under a direct federal award; or
(ii) from a nonfederal entity based on the cost principles in Subpart E of OMB Uniform Guidance; or
(2) if the nonprofit organization has not negotiated and received an indirect cost rate described in item (1) of this subsection, at a rate equal to the greater of the de minimis rate established in Subpart E of OMB Uniform Guidance or 15% of the costs that would be considered modified total direct costs under OMB Uniform Guidance.
IN EFFECT
(a) In this section, “Council” means the Maryland Efficient Grant Application Council.
(b) There is a Maryland Efficient Grant Application Council.
(c) (1) The Council consists of the following members:
(i) the Chief Procurement Officer, or the Chief Procurement Officer’s designee;
(ii) the State Treasurer, or the State Treasurer’s designee;
(iii) the Comptroller, or the Comptroller’s designee;
(iv) the Attorney General, or the Attorney General’s designee;
(v) the Secretary of Budget and Management, or the Secretary’s designee;
(vi) the Secretary of Health, or the Secretary’s designee;
(vii) the Secretary of Human Services, or the Secretary’s designee;
(viii) the Secretary of Housing and Community Development, or the Secretary’s designee;
(ix) the Secretary of Agriculture, or the Secretary’s designee;
(x) the Secretary of the Environment, or the Secretary’s designee;
(xi) the State Superintendent of Schools, or the State Superintendent’s designee;
(xii) the Director of the Maryland Energy Administration, or the Director’s designee;
(xiii) the Executive Director of the Governor’s Office of Crime Prevention and Policy, or the Executive Director’s designee;
(xiv) the chair of the Maryland Higher Education Commission, or the chair’s designee;
(xv) the Secretary of Natural Resources, or the Secretary’s designee;
(xvi) the nonprofit organizations navigator, or the navigator’s designee, who shall serve as a nonvoting member;
(xvii) a representative from the Maryland Association of Counties;
(xviii) a representative from the Maryland Municipal League;
(xix) five representatives of private nonprofit organizations with experience providing services funded by State or federal grants and that reflect the size and diversity of the nonprofit grant recipients in the State, appointed by the Governor;
(xx) one representative of a private nonprofit organization, appointed by the President of the Senate; and
(xxi) one representative of a private nonprofit organization, appointed by the Speaker of the House.
(2) (i) This paragraph applies to members of the Council appointed under paragraph (1)(xix) of this subsection.
(ii) The term of a member is 4 years.
(iii) The terms of members are staggered as required by the terms provided for members of the Council on July 1, 2020.
(iv) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(v) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(vi) The Governor may remove a member for neglect of duty, incompetence, or misconduct.
(d) The Secretary of Budget and Management, or the Secretary’s designee shall serve as Chair of the Council.
(e) The staffing responsibilities of the Council shall be shared by the agencies represented on the Council.
(f) A member of the Council:
(1) may not receive compensation as a member of the Council; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(g) The Council shall:
(1) advise the Department of Budget and Management on the implementation of § 2–210 of this subtitle; and
(2) monitor and report to the Department of Budget and Management on the State’s progress towards implementing § 2–210 of this subtitle.
// EFFECTIVE JUNE 30, 2027 PER CHAPTERS 314 AND 315 OF 2025 //
// EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTERS 28 AND 29 OF 2024 //
(a) In this section, “Council” means the Maryland Efficient Grant Application Council.
(b) There is a Maryland Efficient Grant Application Council.
(c) (1) The Council consists of the following members:
(i) the Chief Procurement Officer, or the Chief Procurement Officer’s designee;
(ii) the State Treasurer, or the State Treasurer’s designee;
(iii) the Comptroller, or the Comptroller’s designee;
(iv) the Attorney General, or the Attorney General’s designee;
(v) the Secretary of Budget and Management, or the Secretary’s designee;
(vi) the Secretary of Health, or the Secretary’s designee;
(vii) the Secretary of Human Services, or the Secretary’s designee;
(viii) the Secretary of Housing and Community Development, or the Secretary’s designee;
(ix) the Secretary of Agriculture, or the Secretary’s designee;
(x) the Secretary of the Environment, or the Secretary’s designee;
(xi) the State Superintendent of Schools, or the State Superintendent’s designee;
(xii) the Director of the Maryland Energy Administration, or the Director’s designee;
(xiii) the Executive Director of the Governor’s Office of Crime Prevention and Policy, or the Executive Director’s designee;
(xiv) the chair of the Maryland Higher Education Commission, or the chair’s designee;
(xv) the Secretary of Natural Resources, or the Secretary’s designee;
(xvi) a representative from the Maryland Association of Counties;
(xvii) a representative from the Maryland Municipal League;
(xviii) five representatives of private nonprofit organizations with experience providing services funded by State or federal grants and that reflect the size and diversity of the nonprofit grant recipients in the State, appointed by the Governor;
(xix) one representative of a private nonprofit organization, appointed by the President of the Senate; and
(xx) one representative of a private nonprofit organization, appointed by the Speaker of the House.
(2) (i) This paragraph applies to members of the Council appointed under paragraph (1)(xviii) of this subsection.
(ii) The term of a member is 4 years.
(iii) The terms of members are staggered as required by the terms provided for members of the Council on July 1, 2020.
(iv) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(v) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(vi) The Governor may remove a member for neglect of duty, incompetence, or misconduct.
(d) The Secretary of Budget and Management, or the Secretary’s designee shall serve as Chair of the Council.
(e) The staffing responsibilities of the Council shall be shared by the agencies represented on the Council.
(f) A member of the Council:
(1) may not receive compensation as a member of the Council; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(g) The Council shall:
(1) advise the Department of Budget and Management on the implementation of § 2–210 of this subtitle; and
(2) monitor and report to the Department of Budget and Management on the State’s progress towards implementing § 2–210 of this subtitle.
IN EFFECT
(a) (1) In this section the following words have the meanings indicated.
(2) “Council” means the Maryland Efficient Grant Application Council established under § 2–209 of this subtitle.
(3) “Department” means the Department of Budget and Management.
(4) (i) “Grant” means a legal instrument of financial assistance between a State grant–making entity and a non–State entity that is:
1. used to enter into a relationship the principal purpose of which is to transfer anything of value from the grant–making entity to the grant recipient to carry out a public purpose authorized by law and not to acquire property or services for the direct benefit or use of the grant–making entity; and
2. distinguished from a cooperative agreement in that it does not provide for substantial involvement between the grant–making entity and the grant recipient in carrying out the activity contemplated by the award.
(ii) “Grant” does not include an instrument that provides only:
1. direct government cash assistance to an individual;
2. a subsidy;
3. a loan;
4. a loan guarantee;
5. insurance;
6. grants made by the State higher education system, the capital budget, the Department of Transportation, or the Maryland Technology Development Corporation;
7. business development grants made by the Department of Commerce; or
8. any State funding that is required annually and is calculated through a formula set in statute.
(5) “Grant application form” means a grant application template and related materials required to be submitted by grant applicants, including:
(i) required organizational materials; and
(ii) proposed budget categories and line items.
(6) “Uniform Guidance” means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200.
(b) (1) In order to improve efficiency, streamline and reduce redundant processes, reduce paperwork and administrative burdens on both granting agencies and grant recipients, and facilitate development and implementation of a statewide centralized grants management and accountability system, the Council shall study and make recommendations to the Department regarding the entire grants life cycle, including:
(i) the creation of the following materials for use by grant–making agencies, grant applicants, and grant recipients in the State:
1. a uniform grant application form;
2. uniform financial controls and reporting requirements for grant recipients; and
3. uniform performance progress reporting requirements for grant recipients;
(ii) regulations adopting each part of the Uniform Guidance, with appropriate modifications for its application to grant–making entities in the State, including modifications or variances based on the scope or size of particular grant programs, grant–making entities, or grantees;
(iii) recommended timeframes and deadlines for the various tasks included in items (i) and (ii) of this paragraph;
(iv) recommended deadlines for use and implementation by the various grant–making entities of the materials prepared in accordance with item (i) of this paragraph; and
(v) recommended deadlines for grant–making entities to administer State and federal grants in accordance with the provisions of parts of Uniform Guidance as adopted by the Department by regulation.
(2) In developing materials and recommendations under this subsection, the Council shall:
(i) solicit the input of diverse stakeholders, including grant–making agencies and organizations representing local governments, grant professionals, experts in nonprofit accounting and auditing, and nonprofit service providers; and
(ii) establish one or more issue working groups, composed of stakeholders representing diverse backgrounds appropriate to the charge of each workgroup, and also reflecting the demographic diversity of the State and the diversity of grant programs and grant recipients, including arts, history, and social service, to participate in and facilitate the process of developing recommendations.
(c) On or before July 1, 2027, the Council shall submit a report on its full recommendations as required by subsection (b)(1) of this section to the Department and the General Assembly, in accordance with § 2–1257 of the State Government Article.
(d) On or before October 1, 2020, each State grant–making agency shall appoint a Chief Accountability Officer who shall:
(1) serve as a liaison to the Council and the Department; and
(2) be responsible for the agency’s representation and participation in the process established under this section.
(e) The Department shall provide technical assistance and interpretations of policy requirements in order to ensure the effective and efficient implementation of this section.
// EFFECTIVE JUNE 30, 2027 PER CHAPTERS 314 AND 315 OF 2025 //
// EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTERS 28 AND 29 OF 2024 //
(a) (1) In this section the following words have the meanings indicated.
(2) “Council” means the Maryland Efficient Grant Application Council established under § 2–209 of this subtitle.
(3) “Department” means the Department of Budget and Management.
(4) (i) “Grant” means a legal instrument of financial assistance between a State grant–making entity and a non–State entity that is:
1. used to enter into a relationship the principal purpose of which is to transfer anything of value from the grant–making entity to the grant recipient to carry out a public purpose authorized by law and not to acquire property or services for the direct benefit or use of the grant–making entity; and
2. distinguished from a cooperative agreement in that it does not provide for substantial involvement between the grant–making entity and the grant recipient in carrying out the activity contemplated by the award.
(ii) “Grant” does not include an instrument that provides only:
1. direct government cash assistance to an individual;
2. a subsidy;
3. a loan;
4. a loan guarantee;
5. insurance;
6. grants made by the State higher education system, the capital budget, the Department of Transportation, or the Maryland Technology Development Corporation;
7. business development grants made by the Department of Commerce; or
8. any State funding that is required annually and is calculated through a formula set in statute.
(5) “Grant application form” means a grant application template and related materials required to be submitted by grant applicants, including:
(i) required organizational materials; and
(ii) proposed budget categories and line items.
(6) “Uniform Guidance” means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200.
(b) (1) In order to improve efficiency, streamline and reduce redundant processes, reduce paperwork and administrative burdens on both granting agencies and grant recipients, and facilitate development and implementation of a statewide centralized grants management and accountability system, the Council shall study and make recommendations to the Department regarding the entire grants life cycle, including:
(i) the creation of the following materials for use by grant–making agencies, grant applicants, and grant recipients in the State:
1. a uniform grant application form;
2. uniform financial controls and reporting requirements for grant recipients; and
3. uniform performance progress reporting requirements for grant recipients;
(ii) the creation of a State Grants Ombudsperson to provide technical assistance with:
1. accessing and navigating State grant programs;
2. resolving delays in the grant–making process; and
3. collecting and disseminating information on opportunities for grants from federal, State, and local government;
(iii) regulations adopting each part of the Uniform Guidance, with appropriate modifications for its application to grant–making entities in the State, including modifications or variances based on the scope or size of particular grant programs, grant–making entities, or grantees;
(iv) recommended timeframes and deadlines for the various tasks included in items (i) through (iii) of this paragraph;
(v) recommended deadlines for use and implementation by the various grant–making entities of the materials prepared in accordance with item (i) of this paragraph; and
(vi) recommended deadlines for grant–making entities to administer State and federal grants in accordance with the provisions of parts of Uniform Guidance as adopted by the Department by regulation.
(2) In developing materials and recommendations under this subsection, the Council shall:
(i) solicit the input of diverse stakeholders, including grant–making agencies and organizations representing local governments, grant professionals, experts in nonprofit accounting and auditing, and nonprofit service providers; and
(ii) establish one or more issue working groups, composed of stakeholders representing diverse backgrounds appropriate to the charge of each workgroup, and also reflecting the demographic diversity of the State and the diversity of grant programs and grant recipients, including arts, history, and social service, to participate in and facilitate the process of developing recommendations.
(c) On or before July 1, 2027, the Council shall submit a report on its full recommendations as required by subsection (b)(1) of this section to the Department and the General Assembly, in accordance with § 2–1257 of the State Government Article.
(d) On or before October 1, 2020, each State grant–making agency shall appoint a Chief Accountability Officer who shall:
(1) serve as a liaison to the Council and the Department; and
(2) be responsible for the agency’s representation and participation in the process established under this section.
(e) The Department shall provide technical assistance and interpretations of policy requirements in order to ensure the effective and efficient implementation of this section.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Grant” means a legal instrument of financial assistance between a State grant–making entity and a nonprofit organization exempt from taxation under § 501(c) of the Internal Revenue Code that is:
1. used to enter into a relationship the principal purpose of which is to transfer anything of value from the State grant–making entity to the grant recipient to carry out a public purpose authorized by law and not to acquire property or services for the direct benefit or use of the State grant–making entity;
2. used to provide for one or more payments in reimbursement for services or other performance under the agreement on a scheduled or other incremental basis;
3. distinguished from a cooperative agreement in that it does not provide for substantial involvement between the State grant–making entity and the grant recipient in carrying out the activity contemplated by the award; and
4. executed, renewed, or extended on or after June 1, 2023.
(ii) “Grant” does not include an instrument that provides only:
1. direct government cash assistance to an individual;
2. a subsidy;
3. a loan;
4. a loan guarantee;
5. insurance; or
6. State funding that is required annually and is calculated through a formula set in statute.
(3) “Payment” includes all required processing and authorization by the Comptroller, as provided under State regulations.
(4) “Proper invoice” means a bill, a written document, or an electronic transmission readable by the State grant–making entity, provided by a grant recipient, that:
(i) requests an amount that is due and payable by law under a written grant agreement; and
(ii) meets the requirements of subsection (e) of this section.
(b) This section does not apply to grants:
(1) made by a unit in the Judicial Branch of State government; or
(2) funded from general obligation bond proceeds or from a General Fund capital appropriation to the Board of Public Works.
(c) It is the policy of the State to make a payment under a grant agreement within 37 days after:
(1) the day on which the payment becomes due under the grant agreement; or
(2) if later, the day on which the State grant–making entity receives a proper invoice.
(d) (1) Except as provided in paragraph (3) of this subsection, a grant–making entity shall be liable for interest that shall accrue at the rate of 9% a year on any amount:
(i) that is due and payable by law and under a written grant agreement; and
(ii) for which the grant–making entity has received, and failed to submit to the Comptroller within 30 days of its receipt, a proper invoice.
(2) Interest shall accrue beginning on the 38th day after the day on which the State grant–making entity receives a proper invoice.
(3) A State grant–making entity is not liable for interest:
(i) unless within 30 days after the date on the State’s check for the amount on which the interest accrued, the grant recipient submits an invoice for the interest;
(ii) if the State grant–making entity has initiated legal proceedings to dispute the amount owed to the grant recipient;
(iii) accruing more than 1 year after the 31st day after the State grant–making entity receives an invoice; or
(iv) on an amount that represents unpaid interest.
(4) Interest for which a State grant–making entity is liable under this subsection:
(i) shall be paid from the State grant–making entity’s operating budget; and
(ii) may not be paid from funds appropriated to fund a grant.
(e) A proper invoice, required as payment documentation, shall include without error:
(1) the grant recipient’s federal employer identification number or Social Security number;
(2) the grant agreement identification number or another adequate description of the grant agreement; and
(3) any documentation required by regulation or the grant agreement.
(f) For the purposes of determining a payment due date and the date on which interest will begin to accrue if a payment is late, an invoice shall be deemed to be received:
(1) for invoices that are mailed, when a proper invoice is received by the State grant–making entity, as of the date the State grant–making entity annotates the invoice with the date and time of receipt; or
(2) for invoices electronically transmitted, on the date the transmission is received by the State grant–making entity, or the next business day if received after 5 p.m.
(g) (1) On receipt of an invoice, a State grant–making entity shall:
(i) mark the invoice with the date the invoice was received; and
(ii) review the invoice as soon as practicable to determine whether the invoice is a proper invoice.
(2) If the State grant–making entity determines that the invoice is a proper invoice and submits the invoice to the Comptroller, the Comptroller shall make payment within 5 business days.
(3) (i) If the State grant–making entity determines that the invoice is not a proper invoice, the State grant–making entity shall notify the grant recipient of all defects that prevent processing and specify all reasons why the invoice is not proper within 2 business days after the determination.
(ii) It is the responsibility of the grant recipient to submit a corrected invoice.
(4) State grant–making entities:
(i) may use media that produce tangible recordings of information to expedite the payment process, rather than delaying the process by requiring original paper documents; and
(ii) shall provide adequate safeguards and controls to ensure the integrity of the data and to prevent duplicate processing.
(5) Failure by a State grant–making entity to comply with the procedural requirements of this subsection does not constitute a late payment.
(6) This section does not create liability on the Comptroller for interest accrued on a late payment.
(a) In this subtitle the following words have the meanings indicated.
(b) “Authorized officer” means any official of the State or any of its political subdivisions whose signature to a public security or instrument of payment is required or permitted.
(c) “Facsimile signature” means a reproduction by engraving, imprinting, stamping, or other means of the manual signature of any authorized officer.
(d) “Instrument of payment” means a check, draft, warrant, or order for the payment, delivery, or transfer of funds.
(e) “Public security” means a bond, note, certificate of indebtedness, or other obligation for the payment of money, issued by the State or by any of its political subdivisions.
(f) “State” means the State or any of its departments, agencies, public bodies, or other instrumentalities.
This subtitle shall be construed to effectuate its general purpose to make uniform the law of those states that enact it.
(a) Any authorized officer, after filing with the Secretary of State the manual signature of the authorized officer certified under oath, may execute or cause to be executed with a facsimile signature instead of a manual signature:
(1) any public security, if the signature of at least 1 authorized officer required or permitted to be placed on the public security is manually subscribed; and
(2) any instrument of payment.
(b) If a public security is required to be manually signed by a trustee, issuing agent, fiscal agent, registrar, or other agent or custodian, any other signature required or permitted to be placed on the public security may be a facsimile signature.
(c) Upon compliance with this subtitle by the authorized officer, the facsimile signature of the authorized officer has the same legal effect as the manual signature of the authorized officer.
(a) When the seal of the State or of any of its political subdivisions is required in the execution of a public security or instrument of payment, the authorized officer may cause the seal to be printed, engraved, stamped, or otherwise placed in facsimile on the public security or instrument of payment.
(b) The facsimile seal has the same legal effect as the impression of the seal.
(a) A person may not use, with intent to defraud, on a public security or an instrument of payment:
(1) a facsimile signature, or any reproduction of it, of any authorized officer; or
(2) a facsimile seal, or any reproduction of it, of the State or of any of its political subdivisions.
(b) A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.
This subtitle may be cited as the “Maryland Uniform Facsimile Signature of Public Officials Act”.
(a) In this subtitle the following words have the meanings indicated.
(b) “Annual operating costs” include the cost of:
(1) the production, treatment, pumping, storage, transmission, and distribution of water and the maintenance and repair of equipment associated with these functions;
(2) the collection, pumping, transmission, and treatment of wastewater, and the maintenance and repair of equipment associated with these functions;
(3) administrative overhead;
(4) debt service;
(5) depreciation; and
(6) servicing customer accounts.
(c) “Lateral system construction costs” include:
(1) any cost necessary to plan, design, acquire, construct, inspect, test, and put into operation the lateral system to serve a State facility; and
(2) any indirect cost incurred by the local jurisdiction that is necessary to construct water and sewer lines.
(a) The State shall pay its share of:
(1) the annual operating costs of furnishing water and sewer service to any State facility; and
(2) the lateral system construction costs associated with the installation of any water or sewer line that directly serves the State facility.
(b) The State shall pay the cost of expanding a water or sewage treatment facility if the expansion is necessitated by the use of the facility by the State. However, the amount the State pays may not exceed the cost of the capacity required by the State.
The State shall pay any assessment, charge, or fee that is:
(1) levied by the local jurisdiction in which the State facility is located; and
(2) designated as the State’s share of annual operating costs or lateral system construction costs.
(a) If the State has agreed to pay the costs set out in § 2-402 of this subtitle and any additional construction costs associated with the connection, the State may connect a State facility, regardless of its location, to a publicly owned utility system.
(b) If an existing publicly owned utility system is inadequate to handle proposed State utility needs, the State shall pay all costs that are:
(1) associated with the expansion of the publicly owned utility system to meet the needs of the State; and
(2) in excess of available federal funds.
(c) Before connecting to any publicly owned utility system, the State shall:
(1) coordinate with the owner of the publicly owned utility system; and
(2) consider any existing master plan in establishing the fiscal obligation of the State under this section.
(d) (1) After determining the need of the State for water or sewerage capacity, the State shall provide the information to the appropriate local jurisdictions.
(2) The local jurisdictions shall include State facility needs in developing their master plans for water and sewerage systems.
(a) In this subtitle the following words have the meanings indicated.
(b) “Facility for handicapped individuals” includes any door, elevator, handrail, ramp, specially treated surface, or similar design, convenience, or device that facilitates the health, safety, or comfort of a handicapped individual.
(c) “Handicapped individual” means an individual with a measurable limitation of mobility caused by disease, trauma, or congenital defect.
(d) (1) “Public building” means a building, structure, or improved area that is:
(i) owned by the State or any political subdivision of the State; or
(ii) constructed for lease by the State or a political subdivision of the State.
(2) “Public building” includes:
(i) an educational facility constructed with public funds or owned or operated by the State or a political subdivision of the State;
(ii) a public mass transportation accommodation, such as a terminal or station, that is supported by public funds; and
(iii) an improvement of a public area used for gathering or amusement, including a public park, recreation center, or the like.
The General Assembly finds that public buildings that lack facilities for handicapped individuals:
(1) create a substantial risk of death or injury to handicapped individuals and others in both normal and emergency conditions; and
(2) impair the full use and enjoyment of the public buildings by handicapped individuals for education, employment, recreation, training, or treatment.
The design of any public building by the State or a political subdivision of the State is governed by this subtitle.
Plans and specifications for the construction of any public building, other than a building to be used as a penal institution, shall provide for facilities for handicapped individuals.
(a) Except as otherwise provided in subsection (b) of this section, if curbs or sidewalks at the intersection of 2 or more streets or roads are constructed or reconstructed by the State Highway Administration, by a political subdivision, or by a private contractor for dedication to a political subdivision, the curbs or sidewalks shall have ramps or curb cuts:
(1) graded onto the crosswalks of the intersection;
(2) at least 40 inches wide; and
(3) constructed to allow reasonable access to the crosswalks by physically handicapped individuals.
(b) Ramps or curb cuts are not required under this section if, for a particular intersection outside Baltimore City, the State Highway Administration determines or, for a particular intersection in Baltimore City, the Baltimore City Department of Public Works determines that:
(1) ramps or curb cuts would be contrary to public safety;
(2) the cost of ramps or curb cuts would be too great considering the need for them or their probable use; or
(3) the sparsity of population, the existence of other ways, or other factors show the lack of a need for ramps or curb cuts.
(c) Nothing in this section may be construed to prevent the State Highway Administration from certifying any project described in this section for the purpose of determining statewide eligibility for federal assistance.
Braille numbers or raised print numbers that indicate floors or levels shall be installed on the control panels in each elevator located in a public building.
(a) As provided in the State budget, the Secretary of General Services shall provide, in central locations in units of the State and local government and other public facilities jointly recommended by the Secretary of Health and the State Superintendent of Schools, teletypewriters for the use of deaf individuals. These locations shall provide access to emergency police, fire, and rescue services.
(b) The teletypewriters shall be connected electronically so as to provide a means of communication between deaf individuals and the offices of major public and private facilities equipped with similar machines within a toll–free telephone district.
(c) Whenever a unit of the State or a local government gives out conventional public service telephone numbers to the public on written material, it shall also give out corresponding teletypewriter numbers on the written material. The teletypewriter numbers may be included at the time of stock replenishment.
In any place to which this subtitle applies, any toilet facility, ramp, building entrance, drinking fountain, parking, or walk that is usable by handicapped individuals shall be marked with a suitable symbol.
(a) The Board of Public Works, through the Department of General Services, shall publish minimum standards for facilities for handicapped individuals in public buildings. The standards shall conform to American Standards Association specification A 117.1-1961, as modified by the Department of General Services.
(b) The standards may not require facilities for handicapped individuals in any part of a public building that is not open to or used by the general working force or the general public.
(c) The appropriate contracting authority shall determine whether the plans and specifications for any public building built by the State, a political subdivision of the State, or a public authority meet the standards adopted under this section.
(d) The standards shall be filed with the Secretary of State.
(a) The Department of General Services is responsible for the enforcement of this subtitle if:
(1) any State capital nonschool funds are used; or
(2) construction is on State-owned land.
(b) The governing body of a political subdivision is responsible for the enforcement of this subtitle if:
(1) construction is not on State-owned land;
(2) funds of the political subdivision are used; and
(3) no State funds are used, except for State funds for school construction.
This subtitle may be cited as the “Maryland Facilities for the Handicapped Act”.
Each officer and unit of the State government shall send to the Treasurer, for inventory and safekeeping, each certificate of stock or other security certificate that the officer or unit holds.
(a) The Treasurer shall deposit in a box or vault as provided in subsection (b) of this section:
(1) all of the physical securities that the State owns; and
(2) all of the physical securities that, by State law, the Treasurer holds, in trust or otherwise, for a corporation or individual.
(b) (1) With the approval of the Board of Public Works, the Treasurer shall procure a box or vault.
(2) The box or vault shall be located in the offices of the Treasurer.
(3) Each box or vault in which securities are kept shall be built so that 2 different keys are needed to gain access to the securities.
(4) The Comptroller and the Treasurer each shall have 1 of these keys.
(5) Access to a box or vault in which physical securities are kept under this section shall be permitted only:
(i) when the Governor, the Comptroller, the Chief Deputy Comptroller, or a Deputy Comptroller accompanies the Treasurer; or
(ii) if access is needed and the Treasurer cannot be present:
1. when the Governor, the Comptroller, the Chief Deputy Comptroller, or a Deputy Comptroller accompanies the Chief Deputy Treasurer; or
2. when the Governor, the Comptroller, or the Chief Deputy Comptroller accompanies a Deputy Treasurer.
(c) The Treasurer shall determine which physical securities are deposited or held in each box or vault.
The Treasurer shall maintain all securities other than physical securities with:
(1) any institution incorporated under the laws of the State as a State bank, trust company, or savings bank;
(2) any national banking association that has its principal office in the State; or
(3) any trust company, as defined in § 1-101 of the Estates and Trusts Article.
(a) Subject to the limitations in this section and notwithstanding any other provision of law, the Treasurer may lend to a bank or securities broker any security that is owned by the State and is in the custody of the Treasurer.
(b) (1) The Treasurer and the bank or broker to whom a loan is to be made under this section shall make a written contract that governs the loan.
(2) The contract shall set forth:
(i) the term of the loan;
(ii) the consideration for the loan;
(iii) any provisions that the Treasurer determines are needed to protect the interests of the State; and
(iv) any other conditions of the loan.
(c) Consideration for a loan under this section may not be less than the current market lending rate for the securities on loan.
(d) (1) The bank or broker to whom a loan is to be made under this section shall deposit with the Treasurer collateral with a value that equals or exceeds the value of the securities on loan.
(2) Collateral that may be used under this section shall be:
(i) money; or
(ii) a security in which the Treasurer may invest under § 6-222 or § 6-223 of this article.
(e) (1) The Treasurer may enter into a contractual agreement with a financial institution to lend, as agent, securities owned by the State and in the custody of the Treasurer.
(2) The financial institution shall provide security or indemnification acceptable to the Treasurer.
(a) Whenever a certificate of stock that the State owns and holds has been lost or misplaced, the Treasurer, at the direction of the Board of Public Works, may obtain a duplicate certificate.
(b) The State shall indemnify the corporation that issues the duplicate certificate.
In this subtitle, “ethnic affairs unit” means:
(1) the Commission on African American History and Culture;
(2) the Commission on Indian Affairs; and
(3) the Office of Asian–Pacific American Affairs.
(a) In order to become more financially self-sufficient, an ethnic affairs unit:
(1) may receive funds from any person or organization; and
(2) may not receive funds either directly or indirectly from the use of any gaming device or raised through a gaming event or activity.
(b) An ethnic affairs unit receiving funds under this section shall be subject to audit by the Legislative Auditor as provided in § 2–1220 of the State Government Article.
(a) In this subtitle the following words have the meanings indicated.
(b) “Changing facility” means a table or other device suitable for changing the diaper of a child under the age of 4 years and providing personal care for an adult.
(c) (1) “Public building” means a building, a structure, or an improved area that is:
(i) owned by the State or a political subdivision of the State; or
(ii) constructed for lease by the State or a political subdivision of the State.
(2) “Public building” includes:
(i) a public mass transportation accommodation, such as a terminal or station, that is supported by public funds; and
(ii) an improvement of a public area used for gathering or amusement, including a public park or recreation center.
(3) “Public building” does not include a facility that is primarily used to provide primary or secondary education.
(d) “Public restroom” means a sanitary facility available to the general public that contains at least one toilet or urinal.
(e) “Substantial renovation” means a construction or renovation project with an estimated cost of $30,000 or more.
(a) Except as provided in subsection (c) of this section, in a public building, a changing facility suitable for changing the diaper of a child under the age of 4 years shall be installed in at least one public restroom or, if the restrooms are divided by gender, in at least one men’s public restroom and one women’s public restroom if:
(1) the public building is constructed on or after October 1, 2019;
(2) a public restroom is constructed in a public building on or after October 1, 2019; or
(3) a public restroom in a public building undergoes substantial renovation on or after October 1, 2019.
(b) Except as provided in subsection (c) of this section, in a public building, a changing facility shall be installed in at least one public restroom or, if the restrooms are divided by gender, in at least one men’s public restroom and one women’s public restroom if:
(1) the public building is constructed on or after October 1, 2022;
(2) the public restroom is constructed in a public building on or after October 1, 2022; or
(3) a public restroom in a public building undergoes substantial renovation on or after October 1, 2022.
(c) A changing facility is not required to be installed under this section if a building inspector that has jurisdiction over the public building determines that the installation of a changing facility:
(1) is not practicable; or
(2) would result in a failure to comply with applicable building standards governing the right of access for individuals with disabilities.
(d) (1) The Board of Public Works, through the Department of General Services, shall adopt standards that a changing facility must meet in order to comply with the requirements of this section.
(2) The standards shall be filed with the Secretary of State.
(a) The Department of General Services, the University System of Maryland, and the Department of Transportation are responsible for the enforcement of this subtitle in the public buildings under each entity’s control if:
(1) any State capital nonschool funds are used; or
(2) construction is on State–owned land.
(b) The governing body of a political subdivision is responsible for the enforcement of this subtitle if:
(1) construction is not on State–owned land;
(2) funds of the political subdivision are used; and
(3) no State funds are used, except for State funds for school construction.
(c) (1) An entity responsible for the enforcement of this subtitle shall report the location of a changing facility to 2–1–1 Maryland, Inc., when the changing facility is installed.
(2) 2–1–1 Maryland, Inc., shall maintain on its website a list containing all the locations of the changing facilities reported under paragraph (1) of this subsection.
(a) In this section, “State contract” means any agreement entered into by the State.
(a–1) 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 § 10–601 of the Economic Development Article.
(b) Except as required by State or federal law, a State contract may not include:
(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 real property or tangible personal 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:
(i) is unknown to the State at the time of signing a contract;
(ii) may be unilaterally changed by the other party; or
(iii) 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 § 6–106 of the State Government Article;
(7) a provision that is inconsistent with the State’s obligations under Title 3 or 4 of the General Provisions Article;
(8) a provision prohibited under § 7–237 of this article;
(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 difference in the cost of a replacement contractor to perform the services not performed by the original contractor, to the extent that the sum of the amount paid to the replacement contractor and the amount paid to the original contractor exceed the costs provided for in the contract with the original contractor.
(c) If a State contract contains a provision listed under subsection (b) of this section, the provision is void ab initio and the contract containing that provision shall be enforceable as if it did not contain the provision.
(d) A State contract that contains a provision listed under subsection (b) of this section shall be governed by and construed in accordance with State law, notwithstanding any term or condition to the contrary in the contract.
(a) In this title the following words have the meanings indicated.
(b) “Department” means the Department of Budget and Management.
(c) “Secretary” means the Secretary of Budget and Management.
There is a Department of Budget and Management, established as a principal department of the State government.
(a) The head of the Department is the Secretary of Budget and Management, who shall be appointed by the Governor with the advice and consent of the Senate.
(b) The Secretary must have experience in public finance, budgeting, management, and fiscal planning.
(c) Before taking office, the appointee shall take the oath required by Article I, § 9 of the Maryland Constitution.
(d) (1) The Secretary serves at the pleasure of the Governor and is responsible directly to the Governor. The Secretary shall advise the Governor on all matters assigned to the Department and is responsible for carrying out the Governor’s policies on those matters.
(2) The Secretary is responsible for the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient administration of the Department. The Secretary may establish, reorganize, or abolish areas of responsibility in the Department as necessary to fulfill the duties assigned to the Secretary.
(3) The Secretary is responsible for establishing policy to be followed by the units in the Department.
(e) The Secretary is entitled to the salary provided in the State budget.
(a) (1) With the approval of the Governor, the Secretary shall appoint a Deputy Secretary.
(2) The Deputy Secretary:
(i) is in the executive service of the State Personnel Management System and serves at the pleasure of the Secretary;
(ii) is entitled to the salary provided in the State budget; and
(iii) has the duties provided by law or delegated by the Secretary.
(b) (1) The Secretary shall appoint 1 or more budget analysts.
(2) The budget analysts shall:
(i) continually conduct studies of all budget expenditures of units of the Executive Branch of the State government;
(ii) make recommendations to the Secretary for greater efficiency and economy in those units; and
(iii) perform any other duties that the Secretary assigns.
(c) (1) The Secretary may employ a staff in accordance with the State budget.
(2) Each assistant secretary and professional consultant is in the executive service, management service, or is a special appointment in the State Personnel Management System and is appointed by and serves at the pleasure of the Secretary.
(3) Except as provided in this section or otherwise by law, the Secretary shall appoint and remove all other staff in accordance with the provisions of the State Personnel and Pensions Article.
(4) The appointment or removal of staff of any unit in the Department is subject to the approval of the Secretary.
(a) The Secretary is responsible for the budget of the Department.
(b) The Secretary may adopt regulations for the Department and its units.
(c) The Secretary may create any citizens’ advisory body that the Secretary considers necessary for the operation of the Department.
(d) The Secretary shall have a seal.
(e) (1) The Secretary is responsible for the comprehensive planning of programs and services of the Department.
(2) The Secretary shall review the plans of the units in the Department and may approve or disapprove any of the plans.
The Secretary or staff of the Secretary shall be subject to call by the Senate or the House of Delegates or any of their committees, to provide information that the Secretary has.
(a) The Attorney General is legal adviser to the Department.
(b) (1) With the advice of the Secretary, the Attorney General shall assign at least 1 assistant Attorney General to the Central Collection Unit.
(2) At the request of the Governor, the Attorney General shall assign to the Department:
(i) at least 1 assistant Attorney General; and
(ii) any other assistant Attorneys General authorized by law to be assigned to the Department.
(c) (1) The Attorney General shall designate 1 of the assistant Attorneys General assigned to the Department as counsel to the Department. After the Attorney General designates the counsel to the Department, the Attorney General may not reassign the counsel without consulting the Secretary.
(2) The counsel may have no duty other than to give the legal aid, advice, and counsel required by the Secretary or any other official of the Department, to supervise the other assistant Attorneys General assigned to the Department and its Central Collection Unit, and to perform for the Department the duties that the Attorney General assigns. The counsel shall perform these duties subject to the control and supervision of the Attorney General.
(d) Each assistant Attorney General who is assigned to the Central Collection Unit shall devote full time to the duties with that Unit and may have no other duties.
(e) The Secretary may contract with another attorney to handle on an agreed case by case basis a collection for the Central Collection Unit if it is not feasible for any of the assistant Attorneys General assigned to the Unit to handle the collection.
(a) (1) In this section the following words have the meanings indicated.
(2) “Historically black colleges and universities” means Bowie State University, Coppin State University, Morgan State University, and University of Maryland Eastern Shore.
(3) “Interagency agreement” means an agreement between an agency or unit of the Executive Branch of State government and a public institution of higher education that:
(i) has a duration of 3 years or more;
(ii) was in place during any part of the immediately preceding fiscal year; and
(iii) has a total value of more than $750,000.
(b) At least once every 3 years, the Department shall review each interagency agreement to determine:
(1) whether the agreement is necessary and should continue;
(2) whether the services can be provided more cost effectively by the agency or unit or through a competitive procurement; and
(3) whether the agreement is being utilized due to the agency’s or unit’s inability to recruit or retain positions and, if so, whether an annual salary review should be conducted to address recruitment or retention issues.
(c) The Department shall establish a cycle to review one–third of the interagency agreements each year.
(d) (1) Subject to paragraphs (2) and (3) of this subsection, on or before December 1 each year, the Department shall report a summary of the findings of the review required under subsection (b) of this section to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article.
(2) In each report required under paragraph (1) of this subsection, the Department shall provide the following information:
(i) the interagency agreements that will continue;
(ii) services that will be competitively procured;
(iii) services that will be provided by the agency or unit as a result of the review;
(iv) services that have been or will be canceled as a result of the review; and
(v) actions taken to address recruitment or retention issues identified as a result of the review.
(3) In each report required under paragraph (1) of this subsection, the Department shall provide information on interagency agreements with historically black colleges and universities, including:
(i) the total percentage of interagency contracts with historically black colleges and universities, by agency or unit; and
(ii) any recommendations for regulatory or statutory changes necessary to address barriers to interagency agreements with historically black colleges and universities.
(a) There is a Central Collection Unit in the Department.
(b) (1) All employees and personnel of the Central Collection Unit shall:
(i) except for assistant Attorneys General assigned to the Central Collection Unit, be in the management service or special appointments in the State Personnel Management System who are appointed by and serve at the pleasure of the Secretary and are not subject to Title 11, Subtitle 2 of the State Personnel and Pensions Article; and
(ii) receive such compensation as provided in the State budget.
(2) Except for employees in the Executive Pay Plan and any assistant Attorneys General assigned to the Central Collection Unit, a management service or special appointment of the skilled service or the professional service employee of the Central Collection Unit may not be permanently removed except for cause and until written charges have been filed and a hearing has been conducted in accordance with Title 10, Subtitle 2 of the State Government Article. This paragraph does not apply to the removal of a management service or special appointment employee because of a layoff that resulted from:
(i) a lack of work; or
(ii) the lack of an appropriation.
(c) (1) The Secretary of Budget and Management may establish a performance incentive program to provide pay incentives for employees of the Central Collection Unit.
(2) Pay incentives provided to employees under this subsection shall be paid from the Central Collection Fund established under § 3-306 of this subtitle as provided in the State budget.
(3) Pay incentives may not be provided under this subsection if:
(i) the Central Collection Unit sustains an operating loss for the fiscal year in which the pay incentives were earned; or
(ii) funds are not available in the Central Collection Fund to pay the incentives.
(a) (1) Except as otherwise provided in subsection (b) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central Collection Unit is responsible for the collection of each delinquent account or other debt that is owed to the State or any of its officials or units.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, an official or unit of the State government shall refer to the Central Collection Unit each debt for which the Central Collection Unit has collection responsibility under this subsection and may not settle the debt.
(ii) A public institution of higher education may not refer a delinquent student account or debt to the Central Collection Unit unless, in accordance with § 15–120 of the Education Article:
1. the delinquent account or debt has not been settled by the end of the late registration period of the semester after the student account became delinquent; or
2. the student has not entered into or made timely payments to satisfy an installment payment plan.
(3) For the purposes of this subtitle, a community college or board of trustees for a community college established or operating under Title 16 of the Education Article is a unit of the State.
(b) Unless, with the approval of the Secretary, a unit of the State government assigns the claim to the Central Collection Unit, the Central Collection Unit is not responsible for and may not collect:
(1) any taxes;
(2) any child support payment that is owed under § 5–308 of the Human Services Article;
(3) any unemployment insurance contribution or overpayment;
(4) any fine;
(5) any court costs;
(6) any forfeiture on bond;
(7) any money that is owed as a result of a default on a loan that the Department of Commerce or the Department of Housing and Community Development has made or insured;
(8) any money that is owed under Title 9, Subtitles 2, 3, and 4 and Title 20 of the Insurance Article;
(9) any money that is owed for unpaid video tolls and associated civil penalties under § 21–1414 of the Transportation Article under a delinquent account associated with a person residing outside the State; or
(10) any money that is owed under a delinquent account for unpaid video tolls and associated civil penalties and is recalled by the Maryland Transportation Authority under § 21–1414(h) of the Transportation Article.
(c) The Central Collection Unit shall be responsible for the collection of each delinquent account or other debt that is owed to a community college established or operating under Title 16 of the Education Article if the board of trustees for the community college:
(1) adopts a resolution appointing the Central Collection Unit as the collector of delinquent accounts or other debt; and
(2) submits the resolution to the Central Collection Unit.
The Secretary may adopt regulations that relate to collections under this subtitle, including:
(1) procedures for referral of a debt or claim;
(2) the information that supports the debt or claim; and
(3) the rate of fees to be charged under § 3-304 of this subtitle.
(a) In carrying out its responsibilities, the Central Collection Unit may:
(1) (i) institute, in its name, any action that is available under State law for collection of a debt or claim; or
(ii) without suit, settle the debt or claim;
(2) for all debts or claims collected on or after June 1, 1992:
(i) in addition to the outstanding principal and interest, assess and collect from the debtor a fee, which may not exceed 20% of the outstanding principal and interest, sufficient to cover all collection and administrative costs; and
(ii) prior to crediting any amount to any agency which refers a debt for any purpose, withhold a fee sufficient to cover all collection and administrative costs;
(3) waive or reduce any fee assessed under paragraph (2) of this subsection; and
(4) certify a debt or claim and the debtor responsible for the debt or claim to:
(i) the Comptroller for income tax refund interception in accordance with Title 13, Subtitle 9 of the Tax – General Article; and
(ii) the State Lottery and Gaming Control Agency for State lottery prize interception in accordance with § 3–307 of this subtitle.
(b) In addition to the authority provided under subsection (a) of this section, and notwithstanding that the Central Collection Unit is a unit of the State government and that assistant Attorneys General represent the Unit, the Unit may enforce a statutory or written contractual obligation of a debtor to pay costs in addition to principal, including collection costs, counsel fees, or interest penalties.
(c) Notwithstanding any other provision of law, the Central Collection Unit may report any account referred to it under this section to a consumer reporting agency.
(d) (1) Notwithstanding the provisions of § 9–602 of the Criminal Law Article, and subject to paragraphs (2) through (5) of this subsection, the Central Collection Unit may manage the monitoring and recording of incoming telephone calls:
(i) to the automated call distribution system; and
(ii) for training and quality control purposes.
(2) Any monitored or recorded telephone call shall contain a notice to the telephone caller that “Your call may be recorded or monitored for training and quality control purposes”.
(3) The Central Collection Unit may not record or monitor calls to or from a direct individual line of an employee of the Central Collection Unit.
(4) The recording of an incoming telephone call to an employee of the Central Collection Unit may not be offered as evidence in a criminal or civil proceeding against any caller unless:
(i) the caller has made a personal or imminent threat against an employee or property of the State; or
(ii) the caller or caller’s representative first introduces the contents or existence of the recorded telephone call in the criminal or civil proceeding.
(5) A recording of a telephone call may not be retained by the Central Collection Unit for longer than 60 days, unless the recording is being used or is to be used:
(i) for training or quality control purposes; or
(ii) in a criminal or civil proceeding under paragraph (4) of this subsection.
(a) Except as otherwise provided in this section, the Central Collection Unit shall pay the net proceeds of collections into the State Treasury.
(b) If the funds of a unit of the State government are not part of the State Treasury, the Central Collection Unit shall deliver to the Treasurer the net proceeds of collection on a debt or claim that was due to the unit of the State government for its account.
(c) All fees collected under § 3-304(a)(2) of this subtitle shall be credited to the Central Collection Fund established under § 3-306 of this subtitle.
(d) The Central Collection Unit shall deliver the net proceeds of collections from defendants or liable parents in arrears on restitution payments to the Division of Parole and Probation or the Department of Juvenile Services to be forwarded by the Division or Department to the victim or other appropriate person or agency in accordance with the judgment of restitution.
(a) There is a Central Collection Fund.
(b) The Central Collection Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this article.
(c) The Fund shall consist of all fees collected under § 3–304(a)(2) of this subtitle.
(d) Subject to the appropriation process in the State budget and subject to subsection (h) of this section, the Department shall use the Fund for the expenses of operating the Central Collection Unit.
(e) The State Treasurer shall hold and the State Comptroller shall account for the Fund.
(f) The Fund shall be invested and reinvested in the same manner as other State funds.
(g) Investment earnings accrue to the benefit of the Fund.
(h) For any fiscal year beginning on or after July 1, 2010, any balance in the Fund at the end of the fiscal year in excess of 15% of the actual expenses of operating the Central Collection Unit for that fiscal year reverts to the General Fund of the State.
(a) Certification of a debt or claim owed to the State that the Central Collection Unit sends to the State Lottery and Gaming Control Agency under § 3–304(a)(4) of this subtitle shall contain:
(1) the full name of the debtor and any other name known to be used by the debtor;
(2) the Social Security number of the debtor; and
(3) the amount of the debt.
(b) If a debtor wins a lottery prize to be paid directly by the State Lottery and Gaming Control Agency, the State Lottery and Gaming Control Agency shall notify the debtor that:
(1) the debtor has won a prize to be paid by the State Lottery and Gaming Control Agency;
(2) the State Lottery and Gaming Control Agency has received notice from the Central Collection Unit of the debtor’s debt or claim owed to the State in the specified amount;
(3) State law requires the State Lottery and Gaming Control Agency to withhold the prize and to pay it towards the debtor’s debt or claim;
(4) the debtor may appeal to the Central Collection Unit if the debtor disputes the existence or the amount of the debt or claim; and
(5) if an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency will transfer the prize or the part of the prize that equals the amount of the debt or claim to the Central Collection Unit.
(c) (1) The State Lottery and Gaming Control Agency shall withhold all or part of the prize up to the amount of the debt or claim owed to the State until the Central Collection Unit notifies the State Lottery and Gaming Control Agency to whom the withheld prize money is to be paid.
(2) The State Lottery and Gaming Control Agency shall honor lottery prize interception requests in the following order:
(i) an interception request under § 10–113.1 of the Family Law Article;
(ii) an interception request under § 11–618 of the Criminal Procedure Article; and
(iii) an interception request under this section.
(d) (1) On receipt of a notice from the State Lottery and Gaming Control Agency, a debtor who disputes the existence or amount of the debt or claim may appeal the proposed transfer in accordance with the provisions of the Administrative Procedure Act, Title 10, Subtitle 2 of the State Government Article.
(2) If an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency shall transfer the amount of the prize withheld to the Central Collection Unit.
(3) If the debtor appeals the proposed transfer, after a hearing the Central Collection Unit shall notify the State Lottery and Gaming Control Agency that the withheld prize shall be:
(i) paid to the debtor;
(ii) transferred to the Central Collection Unit; or
(iii) in specified amounts, partly paid to the debtor and partly transferred to the Central Collection Unit.
(e) The Secretary and the Director of the State Lottery and Gaming Control Agency may jointly adopt regulations to carry out this section.
This subtitle does not apply to the purchase, lease, or rental of motor vehicles by the University College of the University of Maryland for use in University College overseas programs or by the Maryland Port Administration.
(a) Consistent with Division II of this article, the Secretary shall approve and submit to the Board of Public Works for concurrence:
(1) standards for purchase by the Department of General Services of motor vehicles for State use; and
(2) all leases or rentals of motor vehicles for use by officials or employees of any unit of the Executive Branch of the State government, other than any individual motor vehicle lease or rental made under the Standard State Travel Regulations.
(b) As far as practicable and feasible, the standards for purchase of motor vehicles shall be based on the lowest possible life cycle cost.
(c) The purchase of State-owned motor vehicles for any unit of the Executive Branch of the State government shall be reviewed and approved by the Secretary before the purchase to ensure compliance with this section and § 3-503 of this subtitle and any implementing regulations.
(a) (1) To ensure economical and efficient use of motor vehicles by units of the Executive Branch of the State government, the Secretary shall adopt and enforce regulations to carry out the provisions of this subtitle.
(2) The regulations adopted under this section shall apply to:
(i) all phases of the use and maintenance of State-owned motor vehicles; and
(ii) the reimbursement of owners of privately owned motor vehicles.
(3) The regulations shall be directed to:
(i) requiring the effective, efficient, and inexpensive use of all motor vehicles; and
(ii) compiling and maintaining accurate and detailed cost accounting records for all use of motor vehicles.
(4) The regulations shall provide that, unless the Secretary determines on the basis of published criteria that the use of a State-owned motor vehicle is required for the efficient operation of a State program regardless of miles traveled, State-owned motor vehicles shall be allocated to those State employees accumulating the greatest mileage for official use.
(b) Consistent with this section, the Secretary may reassign State-owned motor vehicles between or among units of the Executive Branch of the State government if federally funded programs are substantially reduced or discontinued.
(c) Subject to § 2-1257 of the State Government Article, the Secretary shall submit to the General Assembly an annual report that includes, in detail:
(1) the text of any regulations that have been adopted under this section and are currently in effect; and
(2) a statement of any problems involved in ensuring compliance with this subtitle.
(a) To establish relative priorities and avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the capital plans and capital programs of all units of the State government. Upon request of the General Assembly, the Department shall provide assistance to the General Assembly in the development and coordination of capital plans and capital programs for the Legislative Branch of State government.
(b) To avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the capital plans and capital programs of federal, State, regional, and local governments.
(a) The Department shall study each capital project proposed by any unit of the State government.
(b) Except for a capital project designated as an emergency by the unit of the State government proposing the project, any unit of the State government requesting a capital project shall submit its request to the Department on or before June 30 of the fiscal year preceding the fiscal year in which the capital project is to begin.
(c) Each request for a capital project by a unit of the State government, including the University System of Maryland, St. Mary’s College of Maryland, and Morgan State University, shall include a detailed list of all proposed expenditures for capital improvements to be funded from grants or nonbudgeted revenues.
(d) (1) Before an appropriation may be authorized for preliminary planning of a proposed capital project:
(i) the unit of the State government requesting the appropriation shall submit to the Department a program describing, in detail, the scope and purpose of the project; and
(ii) the Secretary of Budget and Management must approve the program.
(2) Before an appropriation may be authorized for construction of a proposed capital project:
(i) the unit of State government requesting the appropriation shall submit to the Departments of Budget and Management and General Services a detailed design program, which shall include all information required by the Departments; and
(ii) both the Secretary of Budget and Management and the Secretary of General Services must approve the detailed design program.
(e) Except with the approval of the Secretary of Budget and Management and the Secretary of General Services, no change may be made in any proposed capital project after the preliminary plan for that project has been completed and approved.
(f) (1) This subsection applies only to capital projects that involve construction of permanent or long-time duration.
(2) When the request for an appropriation for a capital project is submitted to the General Assembly, the unit of the State government that would receive the capital project or a State officer on behalf of the unit shall submit to the General Assembly:
(i) preliminary plans and outline specifications for the project that show the size, the type of construction, and the arrangement of each building; and
(ii) a statement on the sufficiency of the proposed appropriation to pay fully for the costs of that project.
(g) Total project funding may utilize alternative construction methods, such as:
(1) design/build which involves a single solicitation to design and build the facility; or
(2) “fast track” in which design and construction are implemented concurrently.
(h) A request for total project funding may be authorized jointly by the Secretaries of Budget and Management and General Services if:
(1) (i) the planning, design, construction, and equipment funds for the project have been authorized and itemized in the State budget bill or a supplementary appropriation bill; or
(ii) the Secretaries make a determination, supported in writing and submitted to the Legislative Policy Committee of the General Assembly and the Board of Public Works, that:
1. total project funding is time critical and will result in significant cost savings;
2. there is compelling reason why the procedure required in this paragraph cannot be adopted; and
3. circumstances necessitate that consideration of the total project funding occur during the legislative interim, rather than during the legislative session; and
(2) (i) the total project funding request has been submitted to the Legislative Policy Committee for its review and comment;
(ii) written comment from the Legislative Policy Committee has been received or 45 days have elapsed after the Legislative Policy Committee has received the request and all supporting information; and
(iii) the request has been approved by the Board of Public Works.
(i) The submissions and approvals required by subsections (b) through (h) of this section are not required in connection with any capital project funded by the Transportation Trust Fund.
(j) “Total project funding” means the funding for the planning, design, construction, and equipment of a capital project through a single appropriation or authorization or through a proposed capital lease.
(k) “Capital lease” means any lease, defined as a capital lease in accordance with generally accepted accounting principles, that is used to finance the acquisition, purchase, construction, and any related renovation or alteration of real property that is the subject of a capital project.
(a) (1) In this section the following words have the meanings indicated.
(2) “High performance building” means a building that:
(i) meets or exceeds the current version of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) Green Building Rating System Silver rating;
(ii) achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard approved by the Secretaries of Budget and Management and General Services; or
(iii) complies with a nationally recognized and accepted green building code, guideline, or standard reviewed and recommended by the Maryland Green Building Council and approved by the Secretaries of Budget and Management and General Services.
(3) “Major renovation” means the renovation of a building where:
(i) the building shell is to be reused for the new construction;
(ii) the heating, ventilating, and air conditioning (HVAC), electrical, and plumbing systems are to be replaced; and
(iii) the scope of the renovation is 7,500 square feet or greater.
(b) It is the intent of the General Assembly that, to the extent practicable:
(1) the State shall employ green building technologies when constructing or renovating a State building not subject to this section; and
(2) high performance buildings shall meet the criteria and standards established under the “High Performance Green Building Program” adopted by the Maryland Green Building Council.
(c) (1) This subsection applies to:
(i) capital projects that are funded solely with State funds; and
(ii) community college capital projects that receive State funds.
(2) Except as provided in subsections (d) and (e) of this section, if a capital project includes the construction or major renovation of a building that is 7,500 square feet or greater, the building shall be constructed or renovated to be a high performance building.
(d) The following types of unoccupied buildings are not required to be constructed or renovated to be high performance buildings:
(1) warehouse and storage facilities;
(2) garages;
(3) maintenance facilities;
(4) transmitter buildings;
(5) pumping stations; and
(6) other similar types of buildings, as determined by the Department.
(e) (1) The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government or a community college to obtain a waiver from complying with subsection (c) of this section.
(2) The waiver process shall:
(i) include a review by the Maryland Green Building Council established under § 4–809 of this article, to determine if the use of a high performance building in a proposed capital project is not practicable; and
(ii) require the approval of a waiver by the Secretaries of Budget and Management, General Services, and Transportation.
(a) (1) In this section the following words have the meanings indicated.
(2) “Commission” means the Maryland Commission on Public Art established under Title 4, Subtitle 6 of the Economic Development Article.
(3) “Construction project” means the construction of a new building that is proposed to contain 15,000 or more square feet.
(4) “Council” means the Maryland State Arts Council established under Title 4, Subtitle 5 of the Economic Development Article.
(5) “Division” means the Division of Tourism, Film, and the Arts established under Title 4, Subtitle 1 of the Economic Development Article.
(6) “Major renovation project” means the renovation of an existing building where:
(i) the building is to be reconstructed and reused after the construction;
(ii) the heating, ventilation, and air conditioning, electrical, and plumbing systems are to be replaced; and
(iii) the scope of the renovation is 15,000 or more square feet.
(7) (i) “Public art” means:
1. an architectural enhancement of artistic significance; or
2. an individual piece of art.
(ii) “Public art” includes:
1. a mural;
2. a tile mosaic;
3. a painting; or
4. a sculpture.
(b) (1) This section applies to capital projects that are:
(i) funded entirely with State funds; or
(ii) 1. funded with a combination of at least 50% of State funds and the remainder from funds from private entities; and
2. not funded in the annual State capital budget as:
A. a miscellaneous grant program;
B. a local House of Delegates initiative; or
C. a local Senate initiative.
(2) This section does not apply to the following types of unoccupied buildings:
(i) warehouse and storage facilities;
(ii) garages;
(iii) maintenance facilities;
(iv) transmitter buildings;
(v) pumping stations; and
(vi) other similar buildings, as determined by the Department.
(c) It is the intent of the General Assembly that the requirements of this section will not increase the cost of a construction project or a major renovation project.
(d) To the extent practicable and except as provided in subsection (g) of this section, the State shall include public art in all construction projects and major renovation projects.
(e) During the initial design of each construction project and major renovation project, the identification and selection of public art to be included in the project shall be determined by a group composed of representatives of:
(1) the unit of State government that will be the primary user of the building;
(2) the unit of State government responsible for project management of the building; and
(3) the Division.
(f) The Division shall work with the Council and the Commission in the selection of public art for any project under this section.
(g) (1) The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government to obtain a waiver from complying with this section.
(2) The waiver process shall:
(i) provide for consultation with the Division, on behalf of the Council and the Commission, to determine if the inclusion of public art in a proposed project is too costly or not practicable; and
(ii) require the approval of the Secretaries of Budget and Management and General Services.
(a) The Department shall prepare, revise, and keep current a 5-year capital program.
(b) The capital program shall include all capital projects of the State whether funded by bond authorizations, operating budget funds, or capital leases.
(c) The capital program shall be consistent with the annual recommendations of the Capital Debt Affordability Committee.
(d) Except for the first year of the program, the capital program may not include General Fund capital appropriations as a source of funding other than for projects or programs that are ineligible for tax-exempt debt financing.
The capital program:
(1) shall include State public works and major capital improvement projects undertaken or recommended to be undertaken by the State; and
(2) may include major projects undertaken or recommended to be undertaken with State aid or under State regulation.
The capital program shall:
(1) classify projects according to their necessity and urgency;
(2) recommend a time sequence for the projects; and
(3) include the following information about each project:
(i) the contract price or an estimate of the cost of acquisition or construction;
(ii) an estimate of the operating and maintenance costs;
(iii) an estimate of the number of additional State positions that will be required as a result of the project;
(iv) an estimate of revenues likely to be received from the project; and
(v) existing sources of funds or the need for additional sources of funds for construction, acquisition, and operation.
As far as possible, the capital program shall be based on existing information in the possession of the Department of Budget and Management, and other units of the State government.
The Department of Budget and Management may require the head of any unit of the State government to give information necessary for the preparation of the capital program.
(a) In the annual budget the Governor shall provide a sum sufficient to establish a Revolving Preliminary Planning Fund under the jurisdiction of the Board of Public Works.
(b) On the recommendation of the Department, the Board of Public Works may authorize money to be advanced from the Revolving Preliminary Planning Fund for preliminary plans, studies, designs, and outline specifications for any project that is part of the capital improvement program.
(c) Any money advanced from the Revolving Preliminary Planning Fund shall be reimbursed to the Fund:
(1) from general funds; or
(2) with the approval of the Board of Public Works, from:
(i) the annual general construction loan; or
(ii) any other special loan funds separately authorized by the General Assembly.
(a) There is a Construction Contingency Fund.
(b) The Fund is a continuing, nonlapsing, revolving fund that consists of:
(1) money appropriated to the Fund:
(i) in the annual budget; or
(ii) in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act;
(2) unspent proceeds of an enabling act allocated to the Fund by the Governor under § 8–129 of this article; or
(3) the amount of an appropriation in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act that is in excess of the amount needed for a project included in the Act and that is allocated to the Fund by the Governor.
(c) An appropriation or allocation to the Fund may not be made if it would cause the total balance in the Fund to exceed 1.25% of the capital debt affordability limit, determined under Title 8 of this article, for that year.
(d) With the advice and assistance of the Departments of Budget and Management and General Services, the Fund shall be administered by the Board of Public Works.
(e) With the approval of the Governor, the Secretaries of Budget and Management and General Services may request the Board of Public Works to authorize an expenditure from the Fund to supplement any capital appropriation or to conduct value engineering on a project:
(1) that is for a capital project to be owned by the State or a unit of the State government;
(2) that was contained in a capital appropriation of an annual budget, in an annual general construction loan, or in an annual Maryland consolidated capital bond loan; and
(3) (i) that is insufficient in amount to permit the initial award of a contract for the project to the bidder or offeror selected in accordance with applicable State law, or to cover change orders during construction of the project which do not increase the scope of the project;
(ii) if, in the belief of the Department of General Services or at the request of the budget committees, the project cost could be reduced or quality improved through the use of value engineering; or
(iii) that includes price adjustments for material price fluctuations of identified eligible project–specific materials.
(f) The Secretaries of Budget and Management and General Services shall evaluate any project for additional funding and certify in writing that the project meets the criteria in subsection (e) of this section and that:
(1) all reasonable attempts to reduce the cost of the project have been made;
(2) no practicable alternative exists for securing funding to complete the project; and
(3) the requested additional funding does not increase the scope of the project.
(g) (1) Prior to seeking approval from the Board of Public Works, the Department of General Services and the Department of Budget and Management shall:
(i) provide written notice to the budget committees on the planned use of the funds; and
(ii) allow 45 days for review and comment by the budget committees.
(2) Each time an expenditure from the Fund is authorized by the Board of Public Works, the amount specified by the Board of Public Works may be transferred from the account to the appropriate annuity bond account to supplement the specified authorization.
(h) Within 1 month after the end of each year, the Secretaries of Budget and Management and General Services shall submit a report on activity from January 1 through December 31 of that year, subject to § 2–1257 of the State Government Article, to the General Assembly on the money:
(1) appropriated to the Fund;
(2) authorized for expenditure from the Fund; and
(3) expended from the Fund.
(i) Money in the Fund shall be deposited with the State Treasurer.
(a) In this section, “Department” means the Department of General Services.
(b) This section applies to a capital project that receives at least $3,000,000 in State funds in a single fiscal year and is funded in the annual State capital budget as:
(1) a miscellaneous grant program;
(2) a local House of Delegates initiative; or
(3) a local Senate initiative.
(c) (1) Prior to the release of State funds for a capital project that meets the conditions of subsection (b) of this section, the Governor’s Office of Small, Minority, and Women Business Affairs shall:
(i) review the capital project for subcontracting opportunities under the provisions of Title 14, Subtitle 3 of this article; and
(ii) if practicable, establish minority business enterprise subgoals for the capital project.
(2) In setting subgoals under this subsection, the Governor’s Office of Small, Minority, and Women Business Affairs shall consider the availability and capacity of minority business enterprises in Maryland and in the county where the project is located to fulfill the subgoal.
(d) (1) If the Governor’s Office of Small, Minority, and Women Business Affairs establishes minority business enterprise subgoals for the capital project, the recipient of the State funds shall:
(i) certify to the Department that the recipient expects to achieve the subgoals; or
(ii) request a waiver of all or part of the subgoals from the Governor’s Office of Small, Minority, and Women Business Affairs.
(2) The Governor’s Office of Small, Minority, and Women Business Affairs shall review a request for a waiver under paragraph (1)(ii) of this subsection and report the revised subgoals for the capital project to the Department.
(e) (1) On or before July 31 each year, the Department shall submit an annual report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the number of waivers granted for capital projects that meet the conditions of subsection (b) of this section in the prior fiscal year.
(2) The report shall include:
(i) a description of the capital project;
(ii) whether the waiver was a partial or full waiver; and
(iii) the justification for the waiver.
(a) In this subtitle the following words have the meanings indicated.
(b) “Agency” means an entity of the Executive Branch of State government.
(c) “Goal” means a broad statement that describes the desired long–term results toward which an agency directs its efforts. Goals support, clarify, and provide direction to the agency’s mission and assist in the application of State resources toward implementation of the managing for results State comprehensive plan.
(d) “Managing for results” means a planning, performance measurement, and budgeting process that emphasizes use of resources to achieve measurable results, accountability, efficiency, and continuous improvement in State government programs.
(e) “Mission” means the purpose for an agency’s existence and includes a description of what an agency does and for whom it does it.
(f) “Objective” means a specific and measurable short–term target for achievement of an agency’s goals and includes a description of the desired results and a target date for accomplishment.
(g) (1) “Performance measure” means a quantitative or qualitative indicator used to assess whether an agency is meeting its goals and objectives.
(2) “Performance measure” includes the following:
(i) an efficiency measure that quantifies the relationship between measures of the inputs used to produce goods or services and the measures of the outputs of these activities;
(ii) an input measure that quantifies the amount of resources used to provide goods and services;
(iii) an outcome measure that quantifies the results an agency achieves or the benefits citizens receive from an agency’s activities;
(iv) an output measure that quantifies the amount of goods and services produced by the agency; and
(v) a quality measure that quantifies or describes:
1. the effectiveness of the agency in meeting agency objectives;
2. aspects of the satisfaction that customers may or may not have with State goods or services; or
3. how State goods or services compare to some external or internal standard.
(h) “State comprehensive plan” means a statement of goals which serve as a broad directive for improving or making more cost effective State resources and services. The plan shall include no more than 10 statewide goals and 50 to 100 performance measures that describe the statewide progress towards its goals.
(i) “StateStat” means the accountability process described in § 3–1003(b) of this subtitle.
(j) “Strategic plan” means a statement of direction implemented by an agency to carry out its mission.
(a) The Department shall review and update as necessary:
(1) the goals developed in the managing for results State comprehensive plan; and
(2) the plan’s objectives and performance measures.
(b) Except as otherwise provided in this subtitle, on or before July 1 of each year an agency, in conjunction with the Department, shall select no more than six agency goals that are:
(1) compatible with the managing for results State comprehensive plan; or
(2) consistent with the agency’s mission if the goals identified in the managing for results State comprehensive plan do not apply to the agency.
(c) Except as otherwise provided in this subtitle, with its annual budget submission to the Department, an agency shall develop and submit to the Department as part of the budget process a managing for results agency strategic plan that shall include:
(1) a mission statement;
(2) a description of the agency’s goals;
(3) a description of the objectives and performance measures implemented at the program level to achieve the agency’s goals, including:
(i) performance measure statistics for at least the 2 most recently completed fiscal years; and
(ii) performance measure estimates for the current year appropriation and budget request year;
(4) a discussion of the agency’s progress in meeting its goals and performance measures and any challenges the agency has faced in working toward its goals;
(5) a description of the internal controls established to ensure reliability of the data collected for each performance measure; and
(6) an identification of the customers and stakeholders served.
(d) An agency subject to this subtitle shall maintain documentation of the internal controls established to evaluate performance measures that shall be subject to review by the State, including the Office of Legislative Audits.
(e) (1) The Department shall provide a report to the Senate Budget and Taxation Committee and House Appropriations Committee in January of each year on the contents of the State comprehensive plan and the State’s progress toward the goals outlined in the plan.
(2) The report shall include details on each agency’s progress.
(3) The Senate Budget and Taxation Committee and House Appropriations Committee may hold hearings after receiving the report.
(4) The first report shall be submitted on or before January 31, 2005 and shall include a presentation of the first managing for results State comprehensive plan.
(a) The Secretary shall review the strategic plans and the State comprehensive plan and may recommend appropriate changes to agency budgets.
(b) (1) There is a StateStat process that is managed by the Executive Branch.
(2) StateStat is an accountability process that involves:
(i) the adoption of a strategic plan and the establishment of goals by an agency;
(ii) the adoption of a comprehensive set of performance and citizen satisfaction measurements by an agency;
(iii) regular and frequent:
1. submission of timely and accurate data by an agency;
2. review and analysis of submitted data; and
3. accountability meetings to assess an agency’s performance;
(iv) continuous review of the strategies and tactics used by an agency to meet the goals of the agency; and
(v) continuous assessment of the progress of an agency towards meeting the goals of the agency.
(c) The Governor may require an agency to participate in the StateStat process to help facilitate and accelerate the achievement of managing for results goals and objectives.
(d) (1) Each agency that participates in the StateStat process shall submit a strategic plan and performance measurement report to the Secretary as part of its annual budget submission.
(2) The report submitted by each agency that participates in the StateStat process shall contain the information required in § 3–1002(c) of this subtitle.
(a) In this title the following words have the meanings indicated.
(b) “Cloud computing” means a service that enables on–demand self–service network access to a shared pool of configurable computer resources, including data storage, analytics, commerce, streaming, e–mail, document sharing, and document editing.
(c) “Department” means the Department of Information Technology.
(d) (1) “Oversight of implementation” means management of the process to implement a new technology, system, or product into practice and use by a unit.
(2) “Oversight of implementation” includes:
(i) planning and preparation to implement the product or practice; and
(ii) ongoing monitoring and support of the implementation team to ensure successful execution and that the project goals are met.
(3) “Oversight of implementation” does not include:
(i) responsibility for day–to–day management of any individual projects or products; or
(ii) responsibility for implementing individual–level process requirements for a project or product.
(e) “Secretary” means the Secretary of Information Technology.
(f) “Telecommunication” means the transmission of information, images, pictures, voice, or data by radio, video, or other electronic or impulse means.
(g) “Unit of State government” means an agency or unit of the Executive Branch of State government.
(a) There is a Department of Information Technology established as a principal department of State government.
(b) Subject to the provisions of § 3.5–302 of this title, it is the intent of the General Assembly that responsibility and oversight of the information technology projects for units of State government be centralized at the Department and that priority be given to funding information technology projects that address the needs for the public health, education, safety, or financial well–being of the residents of Maryland.
(a) The head of the Department is the Secretary of Information Technology, who shall be appointed by the Governor with the advice and consent of the Senate.
(b) The Secretary shall have experience in information technology, data processing, telecommunications, and systems procurement, planning, and management.
(c) Before taking office, the appointee shall take the oath required by Article I, § 9 of the Maryland Constitution.
(d) The Secretary shall advise the Governor on all matters assigned to the Department and is responsible for carrying out the Governor’s policies on those matters.
(e) The Secretary is responsible for the operation of the Department and may establish guidelines and procedures to promote the orderly and efficient administration of the Department.
(f) The Secretary may establish, reorganize, or abolish areas of responsibility in the Department necessary to fulfill the duties assigned to the Secretary.
(a) (1) With the approval of the Governor, the Secretary shall appoint a Deputy Secretary.
(2) The Deputy Secretary:
(i) serves at the pleasure of the Secretary;
(ii) is entitled to the salary provided in the State budget; and
(iii) has the duties provided by law or delegated by the Secretary.
(b) Each assistant secretary and professional consultant is in the executive service, management service, or is a special appointment in the State personnel management system and is appointed by and serves at the pleasure of the Secretary.
(c) Except as provided in this section or otherwise by law, the Secretary shall appoint and remove all other staff in accordance with the provisions of the State Personnel and Pensions Article.
(d) The appointment of or removal of staff of any unit in the Department is subject to the approval of the Secretary.
(a) The Attorney General is legal adviser to the Department.
(b) At the request of the Governor, the Attorney General shall assign to the Department the number of assistant Attorneys General authorized by law to be assigned to the Department.
(c) (1) The Attorney General shall designate one of the assistant Attorneys General assigned to the Department as counsel to the Department.
(2) After the Attorney General designates the counsel to the Department, the Attorney General may not reassign the counsel without consulting the Secretary.
(3) (i) The counsel may have no other duty other than to:
1. give the legal aid, advice, and counsel required by the Secretary or any other official of the Department;
2. supervise the other assistant Attorneys General assigned to the Department; and
3. perform for the Department the duties that the Attorney General assigns.
(ii) The counsel shall perform these duties subject to the control and supervision of the Attorney General.
(a) The Department shall establish a technical procurement team that includes individuals with expertise in technology procurement and agile procurement.
(b) The technical procurement team:
(1) in collaboration with the Department of General Services, shall develop materials that encourage cost–effective and cost–efficient information technology services spending, including procurement templates, procurement contracts, and other procurement materials; and
(2) may assist a unit of State government, including the Department of General Services, to procure information technology services, including:
(i) drafting requests for proposals;
(ii) reviewing bids and selecting vendors; and
(iii) developing information technology service contracts in a manner that encourages competition and full participation by vendors.
(a) In this subtitle the following words have the meanings indicated.
(b) “Council” means the Maryland Cybersecurity Coordinating Council.
(c) “Office” means the Office of Security Management.
There is an Office of Security Management within the Department.
(a) The head of the Office is the State Chief Information Security Officer.
(b) The State Chief Information Security Officer shall:
(1) be appointed by the Governor with the advice and consent of the Senate;
(2) serve at the pleasure of the Governor;
(3) be supervised by the Secretary; and
(4) serve as the chief information security officer of the Department.
(c) An individual appointed as the State Chief Information Security Officer under subsection (b) of this section shall:
(1) at a minimum, hold a bachelor’s degree;
(2) hold appropriate information technology or cybersecurity certifications;
(3) have experience:
(i) identifying, implementing, or assessing security controls;
(ii) in infrastructure, systems engineering, or cybersecurity;
(iii) managing highly technical security, security operations centers, and incident response teams in a complex cloud environment and supporting multiple sites; and
(iv) working with common information security management frameworks;
(4) have extensive knowledge of information technology and cybersecurity field concepts, best practices, and procedures, with an understanding of existing enterprise capabilities and limitations to ensure the secure integration and operation of security networks and systems; and
(5) have knowledge of current security regulations.
(d) The State Chief Information Security Officer shall provide cybersecurity advice and recommendations to the Governor on request.
(e) (1) (i) There is a Director of Local Cybersecurity, who shall be appointed by the State Chief Information Security Officer.
(ii) The Director of Local Cybersecurity shall work in coordination with the Maryland Department of Emergency Management to provide technical assistance, coordinate resources, and improve cybersecurity preparedness for units of local government.
(2) (i) There is a Director of State Cybersecurity, who shall be appointed by the State Chief Information Security Officer.
(ii) The Director of State Cybersecurity is responsible for implementation of this section with respect to units of State government.
(f) The Department shall provide the Office with sufficient staff to perform the functions of this subtitle.
(a) (1) The Office is responsible for:
(i) the direction, coordination, and implementation of the overall cybersecurity strategy and policy for units of State government; and
(ii) supporting and coordinating with the Maryland Department of Emergency Management Cyber Preparedness Unit during emergency response efforts.
(2) The Office is not responsible for the information technology installation and maintenance operations normally conducted by a unit of State government, a unit of local government, a local school board, a local school system, or a local health department.
(b) The Office shall:
(1) establish standards to categorize all information collected or maintained by or on behalf of each unit of State government;
(2) establish standards to categorize all information systems maintained by or on behalf of each unit of State government;
(3) develop guidelines governing the types of information and information systems to be included in each category;
(4) establish security requirements for information and information systems in each category;
(5) assess the categorization of information and information systems and the associated implementation of the security requirements established under item (4) of this subsection;
(6) if the State Chief Information Security Officer determines that there are security vulnerabilities or deficiencies in any information systems, determine and direct or take actions necessary to correct or remediate the vulnerabilities or deficiencies, which may include requiring the information system to be disconnected;
(7) if the State Chief Information Security Officer determines that there is a cybersecurity threat caused by, affecting, or potentially affecting an entity connected to the network established under § 3.5–404 of this title that introduces or may introduce a serious risk to entities connected to the network or to the State, take or direct actions required to mitigate the threat;
(8) manage security awareness training for all appropriate employees of units of State government;
(9) assist in the development of data management, data governance, and data specification standards to promote standardization and reduce risk;
(10) assist in the development of a digital identity standard and specification applicable to all parties communicating, interacting, or conducting business with or on behalf of a unit of State government;
(11) develop and maintain information technology security policy, standards, and guidance documents, consistent with best practices developed by the National Institute of Standards and Technology;
(12) to the extent practicable, seek, identify, and inform relevant stakeholders of any available financial assistance provided by the federal government or non–State entities to support the work of the Office;
(13) provide technical assistance to localities in mitigating and recovering from cybersecurity incidents;
(14) provide technical services, advice, and guidance to units of local government to improve cybersecurity preparedness, prevention, response, and recovery practices; and
(15) support local governments in developing a vulnerability assessment and cyber assessment, including providing local governments with the resources and information on best practices to complete the assessments.
(c) The Office, in coordination with the Maryland Department of Emergency Management, shall:
(1) assist local political subdivisions, including counties, school systems, school boards, and local health departments, in implementing best practices and guidance developed by the Department; and
(2) connect local entities to appropriate resources for any other purpose related to cybersecurity preparedness and response.
(d) The Office, in coordination with the Maryland Department of Emergency Management, may:
(1) conduct regional exercises, as necessary, in coordination with the National Guard, local emergency managers, and other State and local entities; and
(2) establish regional assistance groups to deliver or coordinate support services to local political subdivisions, agencies, or regions.
(e) (1) On or before December 31 each year, the Office shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Committee on Cybersecurity, Information Technology, and Biotechnology on the activities of the Office and the state of cybersecurity preparedness in Maryland, including:
(i) the activities and accomplishments of the Office during the previous 12 months at the State and local levels; and
(ii) a compilation and analysis of the data from the information contained in the reports received by the Office under § 3.5–405 of this title, including:
1. a summary of the issues identified by the cybersecurity preparedness assessments conducted that year;
2. the status of vulnerability assessments of all units of State government and a timeline for completion and cost to remediate any vulnerabilities exposed;
3. recent audit findings of all units of State government and options to improve findings in future audits, including recommendations for staff, budget, and timing;
4. efforts to secure financial support for cyber risk mitigation from federal or other non–State resources;
5. key performance indicators on the cybersecurity strategies in the Department’s information technology master plan, including time, budget, and staff required for implementation; and
6. any additional recommendations for improving State and local cybersecurity preparedness.
(2) A report submitted under this subsection may not contain information that reveals cybersecurity vulnerabilities and risks in the State.
(f) (1) Except as provided in paragraph (2) of this subsection, on or before the third Wednesday in January each year, the Office shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Committee on Cybersecurity, Information Technology, and Biotechnology on:
(i) the State’s expenditure on cybersecurity relative to overall information technology spending for the prior 3 years; and
(ii) recommendations for changes to the budget, including the amount, purpose, and timing of funding to improve State and local cybersecurity preparedness.
(2) In a year with a newly elected Governor, the report required under paragraph (1) of this subsection shall be submitted on or before the third Friday of January.
(a) There is a Maryland Cybersecurity Coordinating Council.
(b) (1) The Council consists of the following members:
(i) the secretary of each of the principal departments listed in § 8–201 of the State Government Article, or a secretary’s designee;
(ii) the State Chief Information Security Officer;
(iii) the Adjutant General of the Maryland National Guard, or the Adjutant General’s designee;
(iv) the Superintendent of State Police, or the Superintendent’s designee;
(v) the Director of the Governor’s Office of Homeland Security, or the Director’s designee;
(vi) the Executive Director of the Department of Legislative Services, or the Executive Director’s designee;
(vii) one representative of the Administrative Office of the Courts;
(viii) the Chancellor of the University System of Maryland, or the Chancellor’s designee; and
(ix) any other stakeholder that the State Chief Information Security Officer deems appropriate.
(2) If a designee serves on the Council in place of an official listed in paragraph (1) of this subsection, the designee shall report information from the Council meetings and other communications to the official.
(c) In addition to the members listed under subsection (b) of this section, the following representatives may serve as nonvoting members of the Council:
(1) one member of the Senate of Maryland, appointed by the President of the Senate;
(2) one member of the House of Delegates, appointed by the Speaker of the House; and
(3) one representative of the judiciary, appointed by the Chief Justice of the Supreme Court of Maryland.
(d) The chair of the Council is the State Chief Information Security Officer.
(e) The Council shall meet at least quarterly at the request of the chair.
(f) The Council shall:
(1) provide advice and recommendations to the State Chief Information Security Officer regarding:
(i) the strategy and implementation of cybersecurity initiatives and recommendations; and
(ii) building and sustaining the capability of the State to identify and mitigate cybersecurity risk and respond to and recover from cybersecurity–related incidents.
(2) use the analysis compiled by the Office under § 3.5–2A–04(e)(1)(ii) of this subtitle to prioritize cybersecurity risk across the Executive Branch of State government and make corresponding recommendations for security investments in the Governor’s annual budget.
(g) In carrying out the duties of the Council, the Council shall consult with outside experts, including experts in the private sector, government agencies, and institutions of higher education.
The Council shall:
(1) promote cybersecurity education and training opportunities to strengthen the State’s cybersecurity capabilities by expanding existing agreements with educational institutions; and
(2) utilize relationships with institutions of higher education to advertise cybersecurity careers and job positions available in State or local government, including the Maryland Technology Internship Program established under Title 18, Subtitle 30 of the Education Article.
(a) In this subtitle the following words have the meanings indicated.
(b) “Artificial intelligence” has the meaning stated in § 3.5–801 of this title.
(c) “Cybersecurity” means processes or capabilities wherein systems, communications, and information are protected and defended against damage, unauthorized use or modification, and exploitation.
(d) “Cybersecurity strategy” means a vision, a plan of action, or guiding principles.
(e) (1) “Development” means all expenditures for a new information technology system or an enhancement to an existing system including system:
(i) planning;
(ii) creation;
(iii) installation;
(iv) testing; and
(v) initial training.
(2) “Development” does not include:
(i) ongoing operating costs, software or hardware maintenance, routine upgrades, or modifications that merely allow for a continuation of the existing level of functionality; or
(ii) expenditures made after a new or enhanced system has been legally accepted by the user and is being used for the business process for which it was intended.
(f) “Expedited project” means a project that is not a major information technology development project that receives money from the Fund in a manner that allows for modernization projects consistent with the State Modernization Plan to move forward in a nimble and expedited manner.
(g) “Fund” means the Information Technology Investment Fund.
(h) “Information technology” means all electronic information processing, including:
(1) maintenance;
(2) networking;
(3) telecommunications;
(4) hardware;
(5) software and applications; and
(6) associated services.
(i) “Information technology services” means information provided by electronic means by or on behalf of a unit of State government.
(j) “Legacy system” means a hardware or software system that is end of support or end of life.
(k) (1) “Major information technology development project” means any information technology development project that meets one or more of the following criteria:
(i) except as provided in paragraph (2) of this subsection, the estimated total cost of development equals or exceeds $5,000,000;
(ii) the project is undertaken to support a critical business function associated with the public health, education, safety, or financial well–being of the residents of Maryland; or
(iii) the Secretary determines that the project requires the special attention and consideration given to a major information technology development project due to:
1. the significance of the project’s potential benefits or risks;
2. the impact of the project on the public or local governments;
3. the public visibility of the project; or
4. other reasons as determined by the Secretary.
(2) “Major information technology development project” does not include:
(i) technology that is reoccurring, standard operating technology as determined by the Secretary and submitted to the Legislative Policy Committee for a 30–day review and comment period; or
(ii) a project with an estimated total cost of development that is:
1. less than $5,000,000 and is funded with money set aside for expedited projects in the Fund; or
2. more than $5,000,000 and is funded with the money set aside for expedited projects in the Fund if the Secretary determines that:
A. the unit of State government has sufficient implementation resources, including human capital, subject matter expertise, and technological infrastructure, or has the means to obtain these resources before project initiation;
B. there is no sufficient alternative within the State’s information technology inventory; and
C. the project will result in a comprehensive solution designed to meet a cohesive set of business and technological objectives.
(l) “Master plan” means the statewide information technology master plan and statewide cybersecurity strategy.
(m) “Nonvisual access” means the ability, through keyboard control, synthesized speech, Braille, or other methods not requiring sight to receive, use, and manipulate information and operate controls necessary to access information technology in accordance with standards adopted under § 3.5–303(b) of this subtitle.
(n) “Resource sharing” means the utilization of a State resource by private industry in exchange for the provision to the State of a communication service or other consideration.
(o) “State Modernization Plan” means the plan developed and adopted by the Secretary to modernize State information technology.
(p) “Systems development life cycle plan” means a plan that defines all actions, functions, or activities to be performed by a unit of State government in the definition, planning, acquisition, development, testing, implementation, operation, enhancement, and modification of information technology systems.
(a) This subtitle does not apply to changes relating to or the purchase, lease, or rental of information technology by:
(1) public institutions of higher education solely for academic or research purposes;
(2) the Maryland Port Administration;
(3) the University System of Maryland;
(4) St. Mary’s College of Maryland;
(5) Morgan State University;
(6) the Maryland Stadium Authority;
(7) Baltimore City Community College;
(8) the Legislative Branch of State government;
(9) the Judicial Branch of State government;
(10) the Office of the Attorney General;
(11) the Comptroller; or
(12) the State Treasurer.
(b) Except as provided in subsection (a) of this section, this subtitle applies to any project of a unit of the Executive Branch of State government that involves an agreement with a public institution of higher education for a portion of the development of the project, whether the work on the development is done directly or indirectly by the public institution of higher education.
(c) Notwithstanding any other provision of law, except as provided in subsection (a) of this section and §§ 3.5–307(a)(2), 3.5–308, and 3.5–309 of this subtitle, this subtitle applies to all units of the Executive Branch of State government including public institutions of higher education other than Morgan State University, the University System of Maryland, St. Mary’s College of Maryland, and Baltimore City Community College.
(a) The Secretary is responsible for carrying out the following duties:
(1) developing, implementing, maintaining, revising, and enforcing information technology policies, procedures, and standards;
(2) providing technical assistance, advice, and recommendations to the Governor and any unit of State government concerning information technology matters;
(3) reviewing the annual project plan for each unit of State government to make information and services available to the public over the Internet;
(4) developing and maintaining a statewide information technology master plan that will:
(i) centralize the management and direction of information technology policy within the Executive Branch of State government under the control of the Department;
(ii) include all aspects of State information technology including telecommunications, security, data processing, and information management;
(iii) consider interstate transfers as a result of federal legislation and regulation;
(iv) ensure that the State information technology plan and related policies and standards are consistent with State goals, objectives, and resources, and represent a long–range vision for using information technology to improve the overall effectiveness of State government;
(v) include standards to assure nonvisual access to the information and services made available to the public over the Internet; and
(vi) allow a State agency to maintain the agency’s own information technology unit that provides for information technology services to support the mission of the agency;
(5) developing, implementing, and maintaining a statewide cybersecurity strategy that will:
(i) centralize the management and direction of cybersecurity strategy within the Executive Branch of State government under the control of the Department; and
(ii) serve as the basis for budget allocations for cybersecurity preparedness for the Executive Branch of State government;
(6) adopting by regulation and enforcing nonvisual access standards to be used in the procurement of information technology services by or on behalf of units of State government in accordance with subsection (c) of this section;
(7) in consultation with the Maryland Cybersecurity Coordinating Council, advising and overseeing a consistent cybersecurity strategy for units of State government, including institutions under the control of the governing boards of the public institutions of higher education;
(8) advising and consulting with the Legislative and Judicial branches of State government regarding a cybersecurity strategy;
(9) in consultation with the Maryland Cybersecurity Coordinating Council, developing guidance on consistent cybersecurity strategies for counties, municipal corporations, school systems, and all other political subdivisions of the State;
(10) upgrading information technology and cybersecurity–related State government infrastructure;
(11) annually evaluating:
(i) the feasibility of units of State government providing public services using artificial intelligence, machine learning, commercial cloud computer services, device–as–a–service procurement models, and other emerging technologies; and
(ii) the development of data analytics capabilities to enable data–driven policymaking by units of State government; and
(12) conducting inventories of systems that employ artificial intelligence that are used by a unit of State government as required under § 3.5–803 of this title.
(b) Nothing in subsection (a) of this section may be construed as establishing a mandate for any entity listed in subsection (a)(9) of this section.
(c) On or before January 1, 2020, the Secretary, or the Secretary’s designee, shall:
(1) adopt new nonvisual access procurement standards that:
(i) provide an individual with disabilities with nonvisual access in a way that is fully and equally accessible to and independently usable by the individual with disabilities so that the individual is able to acquire the same information, engage in the same interactions, and enjoy the same services as users without disabilities, with substantially equivalent ease of use; and
(ii) are consistent with the standards of § 508 of the federal Rehabilitation Act of 1973; and
(2) establish a process for the Secretary or the Secretary’s designee to:
(i) determine whether information technology meets the nonvisual access standards adopted under item (1) of this subsection; and
(ii) 1. for information technology procured by a State unit before January 1, 2020, and still used by the State unit on or after January 1, 2020, work with the vendor to modify the information technology to meet the nonvisual access standards, if practicable; or
2. for information technology procured by a State unit on or after January 1, 2020, enforce the nonvisual access clause developed under § 3.5–311 of this subtitle, including the enforcement of the civil penalty described in § 3.5–311(a)(2)(iii)1 of this subtitle.
(d) (1) The Governor shall include an appropriation in the annual budget bill in an amount necessary to cover the costs of implementing the statewide cybersecurity master plan developed under subsection (a) of this section without the need for the Department to operate a charge–back model for cybersecurity services provided to other units of State government or units of local government.
(2) On or before January 31 each year, in a separate report or included within a general budget report, the Governor shall submit a report in accordance with § 2–1257 of the State Government Article to the Senate Budget and Taxation Committee and the House Appropriations Committee that includes:
(i) specific information on the information technology budget and cybersecurity budget that the Governor has submitted to the General Assembly for the upcoming fiscal year; and
(ii) how the budgets listed under item (i) of this paragraph compare to the annual overview of the U.S. President’s budget submission on information technology and cybersecurity to Congress conducted by the U.S. Office of Management and Budget.
The Secretary shall develop a statewide information technology master plan.
(a) Except as provided in subsection (b) of this section, in accordance with guidelines established by the Secretary, each unit of State government shall develop and submit to the Secretary:
(1) information technology policies and standards;
(2) an information technology plan; and
(3) an annual project plan outlining the status of efforts to make information and services available to the public over the Internet.
(b) (1) The governing boards of the public institutions of higher education shall develop and submit information technology policies and standards and an information technology plan for their respective institutions or systems to the Secretary.
(2) If the Secretary finds that the submissions required under this subsection are consistent with the master plan, the Secretary shall incorporate those submissions into the master plan.
(3) If the Secretary finds that the submissions required under this subsection are not consistent with the master plan:
(i) the Secretary shall return the submissions to the governing boards; and
(ii) the governing boards shall revise the submissions as appropriate and submit the revised policies, standards, and plans to the Secretary.
Information technology of each unit of State government shall be consistent with the master plan.
(a) (1) A unit of State government may not purchase, lease, contract for, or rent an information technology service or product unless consistent with the master plan, as determined by the Secretary.
(2) A unit of State government other than a public institution of higher education may not make expenditures for major information technology development projects or cybersecurity projects except as provided in § 3.5–308 of this subtitle.
(b) The Secretary may review any information technology project or cybersecurity project for consistency with the master plan.
(c) (1) A unit of State government shall advise the Secretary of any information technology proposal involving:
(i) resource sharing;
(ii) the exchange of goods or services;
(iii) a gift, contribution, or grant of real or personal property; or
(iv) the sale, lease, exchange, or other disposition of communications facilities or communications frequencies.
(2) The Secretary shall determine if the value of the resources, services, property, or other consideration to be obtained by the State under the terms of any proposal submitted in accordance with paragraph (1) of this subsection equals or exceeds $100,000.
(3) If the value of any proposal submitted in accordance with this subsection equals or exceeds $100,000 and the Secretary and unit agree to proceed with the proposal, information on the proposal shall be:
(i) advertised for a period of at least 30 days in the eMaryland Marketplace; and
(ii) submitted, simultaneously with the advertisement, to the Legislative Policy Committee for a 60–day review and comment period, during which time the Committee may recommend that the proposal be treated as a procurement contract under Division II of this article.
(4) Following the period for review and comment by the Legislative Policy Committee under paragraph (3) of this subsection, the proposal is subject to approval by the Board of Public Works.
(5) This subsection may not be construed as authorizing an exception from the requirements of Division II of this article for any contract that otherwise would be subject to the State procurement process.
(d) (1) The Department, in consultation with the Department of General Services, shall assess the procurement process for information technology projects involving modernization and make recommendations to increase the State’s ability to proceed with a modernization project in a rapid and responsive manner.
(2) (i) On or before July 1, 2025, the Department shall inventory and assess the State’s legacy systems and prioritize modernization.
(ii) On or before January 1, 2026, and every other January 1 thereafter, the Department, in consultation with each unit of State government, shall submit a report to the Governor, the Secretary, and, in accordance with § 2–1257 of the State Government Article, the General Assembly that provides:
1. an estimate of the funding required to modernize each legacy system in the unit; and
2. a 5–year projection of funding required to modernize each legacy system.
(a) This section does not apply to a public institution of higher education.
(b) Before submitting its information technology project requests, a unit of State government shall submit information in support of the request required by the Secretary for review and determination consistent with § 3.5–301(k) of this subtitle.
(c) In reviewing information technology project requests, the Secretary may change a unit’s designation of a major information technology development project.
(d) The Secretary shall review and, with the advice of the Secretary of Budget and Management, approve major information technology development projects and specifications for consistency with all statewide plans, policies, and standards, including a systems development life cycle plan.
(e) (1) Subject to paragraph (2) of this subsection, the Secretary shall be responsible for overseeing the implementation of major information technology development projects, regardless of fund source.
(2) As part of the Secretary’s responsibilities under this section, the Secretary shall ensure that no funding is provided for the implementation of a major information technology development project unless:
(i) the Secretary determines that the unit has the internal capacity to adequately support the project, program management, and responsibility over program activities, including:
1. human capital;
2. subject matter expertise; and
3. technical infrastructure;
(ii) within 30 days of awarding a contract, the managing unit sends to the Board of Public Works and the Legislative Policy Committee, in accordance with § 2–1257 of the State Government Article, notice that:
1. identifies the project management team;
2. affirms that the Department has reviewed and approved the contract; and
3. is signed by the head of the unit acknowledging and accepting the accountability for the implementation of the information technology project or product; and
(iii) while a unit is managing an active project or product, the unit agrees to report to the Department every 3 months on the project status in a manner requested by the Department.
(f) (1) With the advice of the Secretary of Budget and Management, expenditures for major information technology development projects shall be subject to the approval of the Secretary who shall approve expenditures only when those projects are consistent with statewide plans, policies, and standards.
(2) (i) The Secretary shall make a recommendation to the Secretary of Budget and Management to withhold project funds, regardless of fund source, if:
1. a unit of State government is not consistently reporting on the status of a project or projects to the Department in the form and manner required by the Department; or
2. the Department determines that project implementation issues exist, including project timeline delays, significant cost increases, vendor nonperformance, decreased agency capacity, or other issues that indicate issues of concern that could jeopardize successful implementation.
(ii) Notwithstanding any other provision of law, and except as provided in subparagraph (iii) of this paragraph, the Secretary of Budget and Management shall withhold any unexpended funds appropriated in a fiscal year for a major information technology development project at the Secretary’s recommendation issued under subparagraph (i) of this paragraph.
(iii) The Secretary of Budget and Management may release funds withheld under this paragraph at the direction of the Secretary if the Secretary determines that the issue leading to the initial withholding of funds has been addressed.
(3) Within 30 days after funding is withheld in accordance with this subsection, the Department shall report on the purpose of the withholding:
(i) to the Governor; and
(ii) subject to § 2–1257 of the State Government Article, to:
1. the Senate Budget and Taxation Committee;
2. the Senate Committee on Education, Energy, and the Environment;
3. the House Appropriations Committee;
4. the House Health and Government Operations Committee; and
5. the Joint Committee on Cybersecurity, Information Technology, and Biotechnology.
(4) (i) Subject to subparagraph (ii) of this paragraph:
1. the Secretary may recommend to the Secretary of Budget and Management that funding withheld under this section be reallocated to other expenses of the Information Technology Investment Fund under § 3.5–309 of this subtitle; and
2. the Secretary of Budget and Management may, at their discretion, follow the Secretary’s recommendation to reallocate funds.
(ii) If the reallocated funds exceed $500,000, the Secretary, in consultation with the Secretary of Budget and Management, shall submit a proposal to the Legislative Policy Committee for a 60–day review and comment period.
(g) (1) The Secretary shall approve funding for major information technology development projects, expedited projects, and other expenditures from the Fund only when:
(i) the major information technology development projects or the expedited projects are in compliance with statewide plans, policies, and standards, as determined by the Secretary; and
(ii) the major information technology development projects are supported by an approved systems development life cycle plan.
(2) An approved systems development life cycle plan shall include submission of:
(i) a project planning request that details initial planning for the project, including:
1. the project title, appropriation code, and summary;
2. a description of:
A. the business and technology outcomes to be achieved by the project;
B. the features available to the end user on completion, including user acceptance testing and accessibility plans;
C. the potential risks associated with the project;
D. possible alternatives; and
E. the scope and complexity of the project; and
3. an estimate of:
A. the total costs required to complete through planning; and
B. the fund sources available to support planning costs; and
(ii) a project implementation request to begin full design, development, and implementation of the project after the completion of planning, including:
1. the project title, appropriation code, and summary;
2. a description of:
A. the business and technology outcomes to be achieved by the project and the metrics by which the success of those outcomes will be measured;
B. the features available to the end user on completion, including user acceptance testing and accessibility plans;
C. the potential risks associated with the project;
D. possible alternatives;
E. the scope and complexity of the project; and
F. how the project meets the goals of the statewide master plan; and
3. an estimate of:
A. the total project cost, by phase; and
B. the fund sources to be utilized.
(3) The Secretary may approve funding incrementally, consistent with the systems development life cycle plan.
(h) On or before July 1, 2026, the Department shall:
(1) develop standards for units of State government to assist in identifying legacy systems that require modernization projects appropriate to be financed as an expedited project through the Fund;
(2) adopt an Information Technology Investment Maturity Model that includes:
(i) criteria to inform and prioritize investment decisions;
(ii) processes to develop the information required to evaluate investment proposals against the criteria under item (i) of this item; and
(iii) management processes to monitor the implementation of approved modernization projects; and
(3) develop a State Modernization Plan.
(a) There is an Information Technology Investment Fund.
(b) The purpose of the Fund is to support major information technology development projects and expedited projects.
(c) The Secretary:
(1) shall administer the Fund in accordance with this section; and
(2) subject to the provisions of § 2–201 of this article and § 3.5–307 of this subtitle, may receive and accept contributions, grants, or gifts of money or property.
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.
(2) The State Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund.
(3) The State Treasurer shall invest and reinvest the money of the Fund in the same manner as other State money may be invested.
(4) Any investment earnings of the Fund shall be paid into the Fund.
(e) Except as provided in subsection (f) of this section, the Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) as approved by the Secretary, money received from:
(i) the sale, lease, or exchange of communication sites, communication facilities, or communication frequencies for information technology purposes; or
(ii) an information technology agreement involving resource sharing;
(3) that portion of money earned from pay phone commissions to the extent that the commission rates exceed those in effect in December 1993;
(4) money received and accepted as contributions, grants, or gifts as authorized under subsection (c) of this section;
(5) general funds appropriated for major information technology development projects of any unit of State government other than a public institution of higher education that:
(i) are unencumbered and unexpended at the end of a fiscal year;
(ii) have been abandoned; or
(iii) have been withheld by the General Assembly or the Secretary;
(6) any investment earnings; and
(7) any other money from any source accepted for the benefit of the Fund.
(f) The Fund does not include any money:
(1) received by the Department of Transportation, the Maryland Transportation Authority, Baltimore City Community College, or the Maryland Public Broadcasting Commission;
(2) received by the Judicial or Legislative branches of State government; or
(3) generated from pay phone commissions that are credited to other accounts or funds in accordance with other provisions of law or are authorized for other purposes in the State budget or through an approved budget amendment.
(g) The Governor shall submit with the State budget:
(1) a summary showing the unencumbered balance in the Fund as of the close of the prior fiscal year and a listing of any encumbrances;
(2) an estimate of projected revenue from each of the sources specified in subsection (e) of this section for the fiscal year for which the State budget is submitted;
(3) a descriptive listing of major information technology development projects reflecting projected costs for the fiscal year for which the State budget is submitted and any estimated future year costs; and
(4) the amount proposed to be set aside for expedited projects.
(h) Expenditures from the Fund shall be made only:
(1) in accordance with an appropriation approved by the General Assembly in the annual State budget;
(2) through an approved State budget amendment under Title 7, Subtitle 2, Part II of this article, provided that a State budget amendment for any project not requested as part of the State budget submission or for any project for which the scope or cost has increased by more than 5% or $250,000 shall be submitted to the budget committees allowing a 30–day period for their review and comment; or
(3) for expedited project contracts approved for funding by the Secretary and approved by the Board of Public Works as provided in § 12–101 of this article.
(i) The Fund may be used:
(1) for major information technology development projects;
(2) as provided in subsections (j) and (l) of this section;
(3) notwithstanding § 3.5–301(e)(2) of this subtitle, for the costs of the first 12 months of operation and maintenance of a major information technology development project;
(4) for expedited projects; or
(5) for major information technology development projects and expedited projects through a revolving loan process through which an agency may reimburse the Fund in future fiscal years as established by the Secretary in regulation.
(j) Notwithstanding subsection (b) of this section and except for the cost incurred in administering the Fund, each fiscal year up to $1,000,000 of this Fund may be used for:
(1) educationally related information technology projects;
(2) application service provider initiatives as provided for in Title 9, Subtitle 22 of the State Government Article; or
(3) information technology projects, including:
(i) pilots; and
(ii) prototypes.
(k) A unit of State government or local government may submit a request to the Secretary to support the cost of an information technology project with money under subsection (j) of this section.
(l) (1) Notwithstanding subsection (b) of this section and in accordance with paragraph (2) of this subsection, money paid into the Fund under subsection (e)(2) of this section shall be used to support:
(i) the State telecommunication and computer network established under § 3.5–404 of this title, including program development for these activities; and
(ii) the Statewide Public Safety Interoperability Radio System, also known as Maryland First (first responder interoperable radio system team), under Title 1, Subtitle 5 of the Public Safety Article.
(2) The Secretary may determine the portion of the money paid into the Fund that shall be allocated to each program described in paragraph (1) of this subsection.
(m) (1) On or before January 15 of each year, for each major information technology development project or expedited project currently in development or for which operations and maintenance funding is being provided in accordance with subsection (i)(3) of this section, subject to § 2–1257 of the State Government Article, the Secretary shall provide a summary report to the Department of Legislative Services with the most up–to–date project information including:
(i) project funding decisions and project status, including:
1. estimated project or product costs;
2. funding sources; and
3. ongoing operating costs after the project is no longer a major development project or expedited project, including:
A. costs associated with procuring and maintaining licenses; and
B. support to continuously maintain and improve the project or product;
(ii) any schedule, cost, and scope changes since the last annual report;
(iii) a risk assessment provided by either the Department or the designated unit of State government that details the identified project or product risk, including:
1. a description of the type of risk, including:
A. governance;
B. resource availability or capability;
C. funding;
D. interdependencies with other systems;
E. technical issues;
F. organizational culture; or
G. ability to support in the long term;
2. the risk likelihood;
3. the risk priority;
4. the risk owner;
5. planned risk mitigation strategy; and
6. the risk status as of the report date;
(iv) project tracking metrics, including:
1. describing the functionality and features that have been delivered as of the report date; and
2. qualitative and quantitative data showing progress towards project goals; and
(v) any change in the monitoring or oversight status.
(2) The report submitted under this subsection:
(i) is confidential and not subject to disclosure under Title 4 of the General Provisions Article;
(ii) shall communicate the requisite information in a clear and concise manner that, to the greatest extent possible, avoids the use of technical language or reliance on existing industry knowledge; and
(iii) shall include an executive summary of key information, including:
1. the total value of the portfolio, including:
A. annual development costs;
B. funding sources; and
C. projected ongoing operating costs over the next 5 years; and
2. a summary of new projects including:
A. the advantages of the new projects; and
B. any new or innovative aspects of development processes.
(n) (1) The Department shall publish and maintain a publicly available project and portfolio dashboard on the Department’s website.
(2) The dashboard shall include all major information technology development projects and expedited projects, organized by the accountable unit of State government.
(3) For each project, the dashboard shall:
(i) specify the schedule management for the project, including:
1. the project start date;
2. estimated length of the project, by phase;
3. planned milestones with estimated completion dates; and
4. completed milestones with completion dates;
(ii) list the estimated project cost;
(iii) list the total amount appropriated for the current fiscal year;
(iv) list the total amount spent during the prior fiscal year, categorized by:
1. vendor costs;
2. agency labor;
3. software licenses, subscriptions, and other costs;
4. other expenses; and
5. total expenditures;
(v) for projects in development:
1. the prior fiscal year forecast accompanied by actual data and the resulting variance; and
2. the current year forecast; and
(vi) subject to subsection (o) of this section, identify major project or product risks, including:
1. risk description;
2. risk impact;
3. risk likelihood;
4. mitigation strategy; and
5. risk status.
(o) (1) The Department may redact specific risks identified under subsection (n)(3)(vi) of this section from the public dashboard if the Department determines that public sharing of the information could pose a risk to the project.
(2) If a risk is redacted from the dashboard, the information shall be shared with the Legislative Policy Committee.
(3) A risk redacted from the dashboard is confidential and not subject to disclosure under Title 4 of the General Provisions Article.
(p) (1) The Secretary may adopt regulations necessary to carry out this section.
(2) The Secretary shall adopt regulations necessary to establish a process for units of State government to request and receive funding for an expedited project aligned with the State Modernization Plan that shall:
(i) allow units of State government to apply for project funding biannually;
(ii) be consistent with the goals and preferences established under Title 14 of this article and encourage small and minority business enterprise vendors; and
(iii) provide measures that ensure compliance with this subtitle and the Department’s regulations by both vendors and units of State government.
(q) The Chief Information Officer for a unit of State government with a planned or ongoing major information technology development project shall meet with the Secretary on a quarterly basis to report on and discuss the ongoing information technology development projects, including:
(1) project budget;
(2) project vendor performance or nonperformance;
(3) project scope;
(4) project schedule;
(5) the capacity of the unit to implement the project; and
(6) any other items the Secretary deems relevant to the successful implementation of the project.
This subtitle may not be construed to give the Secretary authority over:
(1) the content of educational applications or curriculum at the State or local level; or
(2) the entities that may participate in such educational programs.
(a) (1) The Secretary or the Secretary’s designee, in consultation with other units of State government, and after public comment, shall develop a nonvisual access clause for use in the procurement of information technology and information technology services that specifies that the technology and services:
(i) must provide equivalent access for effective use by both visual and nonvisual means;
(ii) will present information, including prompts used for interactive communications, in formats intended for both visual and nonvisual use;
(iii) can be integrated into networks for obtaining, retrieving, and disseminating information used by individuals who are not blind or visually impaired; and
(iv) shall be obtained, whenever possible, without modification for compatibility with software and hardware for nonvisual access.
(2) On or after January 1, 2020, the nonvisual access clause developed in accordance with paragraph (1) of this subsection shall include a statement that:
(i) within 18 months after the award of the procurement, the Secretary, or the Secretary’s designee, will determine whether the information technology meets the nonvisual access standards adopted in accordance with § 3.5–303(b) of this subtitle;
(ii) if the information technology does not meet the nonvisual access standards, the Secretary, or the Secretary’s designee, will notify the vendor in writing that the vendor, at the vendor’s own expense, has 12 months after the date of the notification to modify the information technology in order to meet the nonvisual access standards; and
(iii) if the vendor fails to modify the information technology to meet the nonvisual access standards within 12 months after the date of the notification, the vendor:
1. may be subject to a civil penalty of:
A. for a first offense, a fine not exceeding $5,000; and
B. for a subsequent offense, a fine not exceeding $10,000; and
2. shall indemnify the State for liability resulting from the use of information technology that does not meet the nonvisual access standards.
(b) (1) Except as provided in paragraph (2) of this subsection, the nonvisual access clause required under subsection (a) of this section shall be included in each invitation for bids or request for proposals and in each procurement contract or modification or renewal of a contract issued under Title 13 of this article, without regard to the method chosen under Title 13, Subtitle 1 of this article for the purchase of new or upgraded information technology and information technology services.
(2) Except as provided in subsection (a)(4) of this section, the nonvisual access clause required under paragraph (1) of this subsection is not required if:
(i) the information technology is not available with nonvisual access because the essential elements of the information technology are visual and nonvisual equivalence cannot be developed; or
(ii) the cost of modifying the information technology for compatibility with software and hardware for nonvisual access would increase the price of the procurement by more than 15%.
The Secretary may delegate the duties set forth in this subtitle to carry out its purposes.
(a) (1) In this section the following words have the meanings indicated.
(2) “Agency” includes a unit of State government that receives funds that are not appropriated in the annual budget bill.
(3) (i) “Payee” means any party who receives from the State an aggregate payment of $25,000 in a fiscal year.
(ii) “Payee” does not include:
1. a State employee with respect to the employee’s compensation; or
2. a State retiree with respect to the retiree’s retirement allowance.
(4) “Searchable website” means a website created in accordance with this section that displays and searches State payment data.
(b) (1) The Department shall develop and operate a single searchable website, accessible to the public at no cost through the Internet.
(2) On or before the 15th day of the month that follows the month in which an agency makes a payment to a payee, the Department shall update the payment data on the searchable website.
(c) The searchable website shall contain State payment data, including:
(1) the name of a payee receiving a payment;
(2) the location of a payee by postal zip code;
(3) the amount of a payment; and
(4) the name of an agency making a payment.
(d) The searchable website shall allow the user to:
(1) search data for fiscal year 2008 and each year thereafter; and
(2) search by the following data fields:
(i) a payee receiving a payment;
(ii) an agency making a payment; and
(iii) the zip code of a payee receiving a payment.
(e) State agencies shall provide appropriate assistance to the Secretary to ensure the existence and ongoing operation of the single website.
(f) This section may not be construed to require the disclosure of information that is confidential under State or federal law.
(g) This section shall be known and may be cited as the “Maryland Funding Accountability and Transparency Act”.
(a) In this section, “security–sensitive data” means information that is protected against unwarranted disclosure.
(b) In accordance with guidelines established by the Secretary, each unit of State government shall develop a plan to:
(1) identify unit personnel who handle security–sensitive data; and
(2) establish annual security overview training or refresher security training for each employee who handles security–sensitive data as part of the employee’s duties.
(a) There is an Information Sharing and Analysis Center in the Department.
(b) The Information Sharing and Analysis Center shall:
(1) coordinate information on cybersecurity by serving as a central location for information sharing across State and local government, federal government partners, and private entities;
(2) with the Office of Security Management, support cybersecurity coordination between local units of government through existing local government stakeholder organizations;
(3) provide support to the State Chief Information Security Officer and the Cyber Preparedness Unit, in the Maryland Department of Emergency Management, during cybersecurity incidents that affect State and local governments;
(4) support risk–based planning for the use of federal resources; and
(5) conduct analyses of cybersecurity incidents.
(a) This section does not apply to:
(1) the Maryland Port Administration;
(2) the University System of Maryland;
(3) St. Mary’s College of Maryland;
(4) Morgan State University;
(5) the Maryland Stadium Authority;
(6) Baltimore City Community College;
(7) the State Board of Elections;
(8) the Office of the Attorney General;
(9) the Comptroller; or
(10) the State Treasurer.
(b) (1) The Department shall hire independent contractors to:
(i) develop a framework for investments in technology; and
(ii) at least once every 2 years, in accordance with the framework, assess the cybersecurity and information technology systems in each unit of State government.
(2) The framework shall include the following criteria:
(i) security risks to the system;
(ii) system performance;
(iii) the system’s dependence on other information technology or cybersecurity systems and data;
(iv) the system’s ability to create an efficient and seamless experience for users;
(v) the system’s effectiveness in achieving unit objectives;
(vi) the system’s effectiveness in meeting the needs of citizens and customers;
(vii) the costs to maintain and operate the system;
(viii) the speed of government response time;
(ix) the effectiveness of the system in regard to the unit’s objectives;
(x) improvements to the unit’s relative audit findings attributable to the system; and
(xi) an assessment of the system using the National Institute of Standards and Technology Cybersecurity Framework.
(c) Each unit shall promptly provide a contractor employed under subsection (b) of this section with the information necessary to perform the assessments.
(d) (1) Every 2 years, a contractor shall provide the results of the assessments to:
(i) the Modernize Maryland Commission established under § 3.5–316 of this subtitle; and
(ii) in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, and the House Health and Government Operations Committee.
(2) The report submitted under paragraph (1)(ii) of this subsection may not contain information about the security of an information system.
(e) The Department may use multiple contractors at a time to meet the requirements of this section.
(a) On or before December 1, 2024, and annually thereafter, each unit of State government shall conduct a data inventory that identifies data that meets the criteria established by the Chief Data Officer and that is:
(1) (i) necessary for the operation of the unit; or
(ii) otherwise required to be collected:
1. as a condition to receive federal funds; or
2. by federal or State law; and
(2) in a form prescribed by the Chief Data Officer, including when the data is used in artificial intelligence.
(b) The Department shall develop and publish guidance on the policies and procedures for the inventory.
(a) The Department shall:
(1) coordinate the development, management, and operation of telecommunication equipment, systems, and services by State government;
(2) acquire and manage common user telecommunication equipment, systems, or services and charge units of State government for their proportionate share of the costs of installation, maintenance, and operation of the common user telecommunication equipment, systems, or services;
(3) promote compatibility of telecommunication systems by developing policies, procedures, and standards for the acquisition and use of telecommunication equipment, systems, and services by units of State government;
(4) coordinate State government telecommunication systems and services by reviewing requests by units of State government for telecommunication equipment, systems, or services;
(5) advise units of State government about planning, acquisition, and operation of telecommunication equipment, systems, or services; and
(6) provide radio frequency coordination for State and local governments in accordance with regulations of the Federal Communications Commission.
(b) The Department may make arrangement for a user other than a unit of State government to have access to and use of State telecommunication equipment, systems, and services and shall charge the user any appropriate amount to cover the cost of installation, maintenance, and operation of the telecommunication equipment, system, or service provided.
(a) The provisions of this subtitle do not apply to a telecommunication system or service that is owned or operated by the University System of Maryland, Morgan State University, Baltimore City Community College, or a unit of the Legislative or Judicial Branch.
(b) The provisions of this subtitle do not preempt the authority of the Maryland Public Broadcasting Commission to own, operate, or manage telecommunication equipment, systems, or services.
Telecommunications, including those of the Maryland Public Broadcasting System, shall be consistent with statewide information technology policies and standards and the statewide information technology master plan.
(a) The General Assembly declares that:
(1) it is the policy of the State to foster telecommunication and computer networking among State and local governments, their agencies, and educational institutions in the State;
(2) there is a need to improve access, especially in rural areas, to efficient telecommunication and computer network connections;
(3) improvement of telecommunication and computer networking for State and local governments and educational institutions promotes economic development, educational resource use and development, and efficiency in State and local administration;
(4) rates for the intrastate inter–LATA telephone communications needed for effective integration of telecommunication and computer resources are prohibitive for many smaller governments, agencies, and institutions; and
(5) the use of improved State telecommunication and computer networking under this section is intended not to compete with commercial access to advanced network technology, but rather to foster fundamental efficiencies in government and education for the public good.
(b) (1) The Department shall establish a telecommunication and computer network in the State.
(2) The network shall consist of:
(i) one or more connection facilities for telecommunication and computer connection in each local access transport area (LATA) in the State; and
(ii) facilities, auxiliary equipment, and services required to support the network in a reliable and secure manner.
(c) The network shall be accessible through direct connection and through local intra–LATA telecommunications to State and local governments and public and private educational institutions in the State.
(d) In a manner and frequency established in regulations adopted by the Department, each unit of local government and any local agencies that use the network established under subsection (b) of this section shall certify to the Department that the unit is in compliance with the Department’s minimum security standards.
(e) (1) The Office shall ensure that at least once every 2 years, or more often if required by regulations adopted by the Department, each unit of State government shall complete an external assessment.
(2) The Office shall assist each unit to remediate any security vulnerabilities or high–risk configurations identified in the assessment required under paragraph (1) of this subsection.
(f) (1) In this subsection, “IT unit” means a unit of the Legislative Branch or Judicial Branch of State government, the Office of the Attorney General, the Office of the Comptroller, or the Office of the State Treasurer that provides information technology services for another unit of government.
(2) Each IT unit shall:
(i) be evaluated by an independent auditor with cybersecurity expertise to determine whether the IT unit, and the units it provides information technology services for, meet relevant cybersecurity standards recommended by the National Institute of Standards and Technology; and
(ii) certify compliance with the recommended National Institutes of Standards and Technology cybersecurity standards to:
1. if the IT unit is part of the Legislative Branch, the President of the Senate and the Speaker of the House;
2. if the IT unit is part of the Office of the Attorney General, to the Attorney General;
3. if the IT unit is part of the Comptroller’s Office, to the Comptroller;
4. if the IT unit is part of the State Treasurer’s Office, to the State Treasurer; and
5. if the IT unit is part of the Judicial Branch of State government, the Chief Judge.
(a) On or before December 1 each year, each unit of State government shall:
(1) report the results of any cybersecurity preparedness assessments performed in the prior year to the Office of Security Management in accordance with guidelines developed by the Office; and
(2) submit a report to the Governor and the Office of Security Management that includes:
(i) an inventory of all information systems and applications used or maintained by the unit;
(ii) a full data inventory of the unit;
(iii) a list of all cloud or statistical analysis system solutions used by the unit;
(iv) a list of all permanent and transient vendor interconnections that are in place;
(v) the number of unit employees who have received cybersecurity training;
(vi) the total number of unit employees who use the network;
(vii) the number of information technology staff positions, including vacancies;
(viii) the number of noninformation technology staff positions, including vacancies;
(ix) the unit’s information technology budget, itemized to include the following categories:
1. services;
2. equipment;
3. applications;
4. personnel;
5. software licensing;
6. development;
7. network projects;
8. maintenance; and
9. cybersecurity;
(x) any major information technology initiatives to modernize the unit’s information technology systems or improve customer access to State and local services;
(xi) the unit’s plans for future fiscal years to implement the unit’s information technology goals;
(xii) compliance with timelines and metrics provided in the Department’s master plan; and
(xiii) any other key performance indicators required by the Office of Security Management to track compliance or consistency with the Department’s statewide information technology master plan.
(b) (1) Each unit of State government shall report a cybersecurity incident in accordance with paragraph (2) of this subsection to the State Chief Information Security Officer.
(2) For the reporting of cybersecurity incidents under paragraph (1) of this subsection, the State Chief Information Security Officer shall determine:
(i) the criteria for determining when an incident must be reported;
(ii) the manner in which to report; and
(iii) the time period within which a report must be made.
(a) This section does not apply to municipal governments.
(b) In a manner and frequency established in regulations adopted by the Department, each county government, local school system, and local health department shall:
(1) in consultation with the local emergency manager, create or update a cybersecurity preparedness and response plan; and
(2) complete a cybersecurity preparedness assessment.
(c) The assessment required under paragraph (b)(2) of this section may, in accordance with the preference of each county government, be performed by the Department or by a vendor authorized by the Department.
(d) (1) Each local government shall report a cybersecurity incident, including an attack on a State system being used by the local government, to the appropriate local emergency manager and the State Security Operations Center in the Department in accordance with paragraph (2) of this subsection.
(2) For the reporting of cybersecurity incidents to local emergency managers under subparagraph (i) of this paragraph, the State Chief Information Security Officer shall determine:
(i) the criteria for determining when an incident must be reported;
(ii) the manner in which to report; and
(iii) the time period within which a report must be made.
(3) The State Security Operations Center shall immediately notify the appropriate agencies of a cybersecurity incident reported under this subsection through the State Security Operations Center.
(a) In this subtitle the following words have the meanings indicated.
(b) “Eligible participant” means a resident of the State who is at least 60 years old.
(c) “Person of record” includes a local law enforcement unit or other local government agency or a designee of the participant that chooses to participate in the Program.
(d) “Program” means the Senior Call–Check and Social Connections Program.
(e) (1) “Senior call–check and social connections” means regular, direct communication from the Department of Aging or the Department of Aging’s designee to an eligible participant.
(2) “Senior call–check and social connections” includes:
(i) an automated or live telephone call or other direct communication initiated by an eligible participant or received by an eligible participant at a regularly scheduled time each day;
(ii) if the eligible participant does not answer or initiate the regularly scheduled call or other direct communication and the Secretary of Aging designs the Program to require this action, one or more automated or live telephone calls or other direct communications to the eligible participant;
(iii) if the eligible participant does not answer a telephone call or other direct communication made under item (ii) of this paragraph, an additional automated or live telephone call or other direct communication to notify a person of record whose name has been provided to the Department of Aging; and
(iv) a notification to the eligible participant regarding information that the Secretary of Aging has determined to be relevant.
(f) “Regular, direct communication” means regular interactions initiated or received by the Department of Aging or the Department’s designee that:
(1) may include telephone calls, text messages, web–based, virtual, video, or in–person communications, and other forms of communication approved by the Department; and
(2) are accessible to eligible participants with disabilities.
(g) “Village” means local, volunteer–led organizations that aim to support community members who choose to age in place, including by:
(1) organizing events; and
(2) fostering social connections through activities and coordinating volunteer help at home using the neighbor–helping–neighbor model.
(a) The Department of Aging shall:
(1) establish and administer the Program to provide senior call–check and social connections to eligible participants; and
(2) adopt regulations necessary to implement the Program.
(b) The purpose of the Program is to provide regular, direct communication from the Department of Aging or the Department’s designee to an eligible participant to promote wellness and purposeful social engagement.
(c) The Department of Aging shall integrate services with the Telecommunications Access of Maryland Program established under § 7–902 of the Human Services Article by promoting awareness of the availability of accessible telecommunications equipment and using educational outreach materials produced by the Telecommunications Access of Maryland Program.
(d) (1) The Department of Aging may enter into agreements or contracts as appropriate with a private vendor, a nonprofit organization, a village incorporated in and serving older adults in the State, an area agency on aging, or any other person to provide Program services.
(2) The Department of Aging may enter into interagency agreements with other State or local governmental entities to provide Program services.
(3) The Department of Aging may accept funds provided by other public and private sources, including gifts and grants to be used to provide Program services.
(e) (1) The State Tort Claims Act and the Local Government Tort Claims Act, as appropriate, apply to a State or local unit and to an employee or agent of a State or local unit that participates in the Program for services the unit or person provides under the Program in accordance with regulations of the Department of Aging.
(2) A person of record, a private vendor, a nonprofit organization, a village incorporated in and serving older adults in the State, an area agency on aging, any other entity under an agreement or contract with the Department, or a volunteer may not be liable for reasonable acts or omissions directly arising from services provided under the Program in accordance with regulations of the Department of Aging.
(a) In this subtitle the following words have the meanings indicated.
(b) (1) “Algorithmic decision system” means a computational process that facilitates decision making.
(2) “Algorithmic decision system” includes decisions derived from machines, statistics, facial recognition, and decisions on paper.
(c) “Artificial intelligence” means a machine–based system that:
(1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments;
(2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and
(3) uses model inference to formulate options for information or action.
(d) (1) “High–risk artificial intelligence” means artificial intelligence that is a risk to individuals or communities, as defined under regulations adopted by the Department in consultation with the Governor’s Artificial Intelligence Subcabinet.
(2) “High–risk artificial intelligence” includes rights–impacting artificial intelligence and safety–impacting artificial intelligence.
(e) “Impact assessment” means an assessment of artificial intelligence systems made under regulations adopted by the Department in consultation with the Governor’s Artificial Intelligence Subcabinet and required under § 3.5–803 of this subtitle.
(f) “Public senior higher education institution” means:
(1) the constituent institutions of the University System of Maryland and the University of Maryland Center for Environmental Science;
(2) Morgan State University; or
(3) St. Mary’s College of Maryland.
(g) “Rights–impacting artificial intelligence” means artificial intelligence whose output serves as a basis for decision or action that is significantly likely to affect civil rights, civil liberties, equal opportunities, access to critical resources, or privacy.
(h) “Safety–impacting artificial intelligence” means artificial intelligence that has the potential to significantly impact the safety of human life, well–being, or critical infrastructure.
(a) (1) Except as provided in paragraph (2) of this subsection, this subtitle does not apply to:
(i) the Office of the Attorney General;
(ii) the Comptroller; or
(iii) the State Treasurer.
(2) On or before June 1, 2025, each entity listed under paragraph (1) of this subsection shall establish policies and procedures that are functionally compatible with the policies and procedures adopted under § 3.5–804(a) of this subtitle for the development, procurement, deployment, use, and ongoing assessment of systems that employ high–risk artificial intelligence.
(b) (1) Except as provided in paragraph (2) of this subsection, this subtitle applies to each public senior higher education institution and Baltimore City Community College.
(2) This subtitle does not apply to artificial intelligence deployed by a public senior higher education institution or Baltimore City Community College that is used solely for a research or academic purpose, including in partnership with a unit of State government for the development, procurement, deployment, or use of artificial intelligence.
(3) On or before June 1, 2025, each public senior higher education institution and Baltimore City Community College shall establish policies and procedures that are functionally compatible with the policies and procedures adopted under § 3.5–804(a) of this subtitle for the development, procurement, deployment, use, and ongoing assessment of systems that employ high–risk artificial intelligence used solely for a research or academic purpose.
(4) On or before September 1, 2025, and each year thereafter, each public senior higher education institution and Baltimore City Community College shall submit to the Department a report on all high–risk artificial intelligence procured and deployed for a research or academic purpose.
(a) On or before December 1, 2025, and regularly thereafter, each unit of State government shall:
(1) conduct an inventory of systems that employ high–risk artificial intelligence; and
(2) provide the inventory to the Department in a format required by the Department.
(b) For each system, the inventory required by this section shall include:
(1) the name of the system;
(2) the vendor that provided the system, if applicable;
(3) a description of the capabilities of the system;
(4) a statement of the purpose and the intended uses of the system;
(5) whether the system underwent an impact assessment prior to being deployed;
(6) whether the system is used to independently make a decision or judgment or to inform or support a decision or judgment determined by the Department to involve high–risk artificial intelligence; and
(7) a summary of the results of the most recent impact assessment.
(c) The Department shall make an aggregated statewide inventory publicly available on its website.
(d) (1) The Department may not make publicly available on the Department’s website information from the inventories required by this section that relate to the safety and security of State systems if the publication of the information is likely to compromise the security or integrity of the system.
(2) On request, the Department shall provide to the Governor, members of the General Assembly, and law enforcement the information described in paragraph (1) of this subsection.
(e) (1) On or before December 31, 2026, each unit of State government shall conduct an impact assessment of a system procured on or after February 1, 2026, that involves high–risk artificial intelligence.
(2) On or before July 1, 2027, each unit of State government shall conduct an impact assessment of a system procured before February 1, 2026, that involves high–risk artificial intelligence.
(a) On or before December 1, 2024, the Department, in consultation with the Governor’s Artificial Intelligence Subcabinet, shall adopt policies and procedures concerning the development, procurement, deployment, use, and ongoing assessment of systems that employ high–risk artificial intelligence by a unit of State government.
(b) The policies and procedures required by subsection (a) of this section shall:
(1) subject to any other applicable law, govern the procurement, deployment, and ongoing assessment of systems that employ high–risk artificial intelligence by a unit of State government;
(2) define the criteria for an inventory of systems that employ high–risk artificial intelligence;
(3) be sufficient to ensure that the use of any system that employs artificial intelligence by a unit of State government is governed by adequate guardrails to protect individuals and communities;
(4) if the Department is notified that an individual or group of individuals may have been negatively impacted by a system that employs high–risk artificial intelligence, require the Department to:
(i) notify an individual or a group of individuals determined to have been negatively impacted; and
(ii) provide guidance to an individual or a group of individuals determined to have been negatively impacted on available options to opt out of the system; and
(5) provide guidance to units of State government on procurement of a system that employs high–risk artificial intelligence that ensures data privacy and compliance with applicable statutes and regulations.
(c) The Department shall make the policies and procedures required by subsection (a) of this section publicly available on its website within 45 days after the policies and procedures are adopted.
(a) Beginning July 1, 2025, a unit of State government may not procure or deploy a new system that employs artificial intelligence unless the system complies with the policies and procedures adopted under § 3.5–804 of this subtitle.
(b) A unit of State government that employs high–risk artificial intelligence shall conduct regular impact assessments, as determined by the Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council.
(a) There is a Governor’s Artificial Intelligence Subcabinet of the Governor’s Executive Council.
(b) The purpose of the Subcabinet is to facilitate and enhance cooperation among units of State government, in consultation with academic institutions and industries utilizing artificial intelligence.
(c) The Subcabinet consists of the following members:
(1) the Secretary, or the Secretary’s designee;
(2) the Secretary of Budget and Management, or the Secretary’s designee;
(3) the Secretary of General Services, or the Secretary’s designee;
(4) the Secretary of Labor, or the Secretary’s designee;
(5) the Secretary of Commerce, or the Secretary’s designee;
(6) the Director of the Governor’s Office of Homeland Security, or the Director’s designee;
(7) the Chief Privacy Officer, or the Chief Privacy Officer’s designee;
(8) the Chief Data Officer, or the Chief Data Officer’s designee;
(9) the Chief Information Security Officer, or the Chief Information Security Officer’s designee;
(10) the Governor’s Senior Advisor for Responsible Artificial Intelligence, or the Senior Advisor’s designee; and
(11) any other member of the Governor’s Executive Council, appointed by the Governor.
(d) The Secretary shall chair the Subcabinet.
(e) The Subcabinet shall:
(1) develop strategy, policy, and monitoring processes for responsible and productive use of artificial intelligence and associated data by units of State government;
(2) oversee the State’s implementation of:
(i) artificial intelligence inventory;
(ii) artificial intelligence impact assessments;
(iii) monitoring of high–risk artificial intelligence; and
(iv) compliance with State policies and procedures;
(3) support artificial intelligence and data innovation across units of State government;
(4) develop and implement a comprehensive action plan for responsible and productive use of artificial intelligence and associated data by units of State government;
(5) establish partnerships, memoranda of understanding, and contracts to support the aims of this section;
(6) promote artificial intelligence knowledge, skills, and talent in State government; and
(7) identify artificial intelligence use cases and build foundational infrastructure by requiring:
(i) the Department to evaluate relevant infrastructure to safely, securely, and efficiently test artificial intelligence proofs of concept and pilots;
(ii) the Department of General Services, in consultation with the Department, to create a model for running and procuring artificial intelligence proofs of concept and pilots, in accordance with State laws, regulations, and policies; and
(iii) the Department, in consultation with the Subcabinet, to coordinate with agencies to provide support in identifying and prioritizing use cases and executing proofs of concept and pilots aligned with the Governor’s priorities.
(f) The Governor shall provide the Subcabinet with sufficient resources to perform the functions of this section.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 105 OF 2025 //
(a) There is a Workgroup on Artificial Intelligence Implementation.
(b) The Workgroup consists of the following members:
(1) two members of the Senate of Maryland, appointed by the President of the Senate;
(2) two members of the House of Delegates, appointed by the Speaker of the House;
(3) the Attorney General, or the Attorney General’s designee;
(4) the Chief Executive Officer of the Maryland Technology Development Corporation, or the Chief Executive Officer’s designee; and
(5) (i) the following members, appointed by the Governor:
1. three representatives from the Maryland Technology Council;
2. two representatives from the e–commerce industry;
3. two representatives from the biotechnology industry;
4. two representatives from the real estate community;
5. two representatives from the health care sector, including at least one representative with clinical experience;
6. two representatives from the education sector;
7. three representatives from academia with expertise in the development, operation, or social implications of data science, artificial intelligence, or machine learning;
8. two representatives from nonprofit organizations that focus on civil rights and liberties; and
9. one representative from the Maryland Veterans Chamber of Commerce with artificial intelligence expertise;
(ii) the following members, appointed by the President of the Senate:
1. two representatives from nonprofit organizations with artificial intelligence expertise that focus on consumer protections; and
2. two representatives from the cybersecurity sector with expertise in artificial intelligence; and
(iii) the following members, appointed by the Speaker of the House:
1. two representatives from nonprofit organizations that focus on establishing data privacy protections; and
2. two representatives that work with the AFL–CIO Tech Institute.
(c) The President of the Senate and the Speaker of the House jointly shall designate the chair of the Workgroup.
(d) It is the intent of the General Assembly that the Workgroup shall coordinate with the Maryland Cybersecurity Council in a manner agreed on by the chairs of the Workgroup and the Council.
(e) The University of Maryland Center for Health and Homeland Security shall provide staff for the Workgroup.
(f) A member of the Workgroup:
(1) may not receive compensation as a member of the Workgroup; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(g) The Workgroup shall monitor issues and make recommendations related to artificial intelligence including:
(1) the regulation of artificial intelligence used in decisions that significantly impact the livelihood and life opportunities of individuals in the State;
(2) deployer and developer obligations related to labor and employment and protection of individual privacy rights;
(3) protection of consumer rights;
(4) current private sector use of artificial intelligence;
(5) general artificial intelligence disclosures for all consumers;
(6) enforcement authority for the Office of the Attorney General’s Consumer Protection Division; and
(7) the impact of the use of artificial intelligence in the determination of government benefits.
(h) On or before July 1, 2026, and each year thereafter, the Workgroup shall report its findings and recommendations, in accordance with § 2–1257 of the State Government Article, to the Senate Finance Committee and the House Economic Matters Committee.
(i) For fiscal year 2027 and each fiscal year thereafter, the Governor may include in the annual budget bill an appropriation of $100,000 to support the Workgroup.
(a) In this subtitle the following words have the meanings indicated.
(b) “Division” means the Major Information Technology Development Project Oversight Division.
(c) “Office” means the Maryland Office of Digital Experience.
(d) “Service” means the Maryland Digital Service Unit.
(a) There is a Maryland Office of Digital Experience.
(b) The purpose of the Office is to:
(1) provide oversight, leadership, intervention, and strategic modernization for major information technology development projects, including large–scale, high impact, multi–agency projects, in a transparent manner that ensures a positive return on investment; and
(2) direct the development of modernized systems in a manner that:
(i) when appropriate, prioritizes a product–based approach to the development of modernized systems over a project–based approach;
(ii) is cost–effective;
(iii) lowers risks;
(iv) delivers value faster; and
(v) otherwise improves the delivery of services for residents of the State.
The Secretary shall appoint a Chief Digital Experience Officer to serve as the head of the Office.
(a) (1) The Office may employ or retain regular or contractual employees at the discretion of the Chief Digital Services Officer and Chief of the Division as necessary to meet the requirements of the Office.
(2) (i) Subject to subparagraph (ii) of this paragraph, the Chief Digital Services Officer and Chief of the Division may set the compensation for Office employees.
(ii) The Secretary of Budget and Management shall approve any compensation proposed under this subsection.
(b) The Office may use a short–term contract or contractual hiring to support human resource needs to support the rapid hiring of Office employees and contractors.
(c) To meet the requirements of this subtitle, the Office may require a unit to provide reimbursement for services provided by the Office from funds provided to the unit from the Information Technology Investment Fund or other funds allocated to the unit for an information technology project or product.
(a) There is a Maryland Digital Service Unit in the Office.
(b) The Service shall collaborate with units of State government to support improved service delivery to State residents and agency staff to implement:
(1) user–centered design;
(2) software development; and
(3) project management best practices.
(c) The Service is responsible for:
(1) assisting units of State government to prioritize the development and procurement of user–friendly, accessible, and multilingual digital platforms to ensure that all State residents, including those with disabilities, can easily access and use government services and information;
(2) working collaboratively with units of State government to:
(i) consolidate and streamline State websites and digital applications to reduce redundancy, complexity, and maintenance costs; and
(ii) prioritize projects that are financially efficient and drive positive outcomes for State residents; and
(3) overseeing the implementation of user–centered design principles, accessibility standards, and best practices across units of State government.
(d) Units of State government shall collaborate with the Service to ensure that the alignment and funding of a digital initiative is consistent with:
(1) the overall goals and priorities of the State; and
(2) the Statewide Information Technology Master Plan.
(a) There is a Major Information Technology Development Project Oversight Division in the Office.
(b) The Division, in consultation with the Department, shall:
(1) adopt new standards by which major information technology development projects and expedited projects are required to comply, in alignment with the State System Development Life Cycle;
(2) monitor the performance of project management teams for major information technology development projects and expedited projects and ensure the teams have the appropriate talent and expertise necessary to deliver the intended project value; and
(3) provide expertise, support, and intervention as necessary for the project management team to successfully implement a project in a manner consistent with standards adopted under item (1) of this subsection.
(c) The Division shall establish and staff a Discovery Team to deploy team members to help units of State government assist the unit in identifying:
(1) what problem the use of an information technology project or product is solving;
(2) who the users of the project or product will be;
(3) what a successful solution would look like; and
(4) other issues to ensure successful implementation of the project or product.
(d) Notwithstanding any other provision of law, the Secretary may delegate any major information technology development project to the Division that the Secretary determines is appropriate to serve as a pilot project for the Division to provide the services described in this section.
Beginning December 31, 2025, and each July 1 and December 31 thereafter, the Department of General Services, in consultation with the Department, shall report to the Senate Budget and Taxation Committee and the House Health and Government Operations Committee, in accordance with § 2–1257 of the State Government Article, on any projects over $1,000,000 undertaken by a unit of State government under a master contract for Statewide Agile Resources and Teams contract or work order approved by the Board of Public Works in fiscal year 2025, including:
(1) the contract or work order amount and total estimated project cost;
(2) whether the Secretary of General Services and the Secretary have determined that the unit has the internal capacity to adequately support the project and program management responsibilities, including adequate:
(i) human capital;
(ii) subject matter expertise; and
(iii) technical infrastructure;
(3) whether the head of the unit accepted accountability for the oversight and implementation of the project;
(4) the members of the project management team; and
(5) affirmative agreements that, as part of the contract or work order approval, the unit of State government submits a report regarding project status to the Department every 3 months.
(a) In this title the following words have the meanings indicated.
(b) “Department” means the Department of General Services.
(c) “Secretary” means the Secretary of General Services.
There is a Department of General Services, established as a principal department of the State government.
(a) The head of the Department is the Secretary of General Services, who shall be appointed by the Governor with the advice and consent of the Senate.
(b) Before taking office, the appointee shall take the oath required by Article I, § 9 of the Maryland Constitution.
(c) (1) The Secretary serves at the pleasure of the Governor and is responsible directly to the Governor. The Secretary shall advise the Governor on all matters assigned to the Department and is responsible for carrying out the Governor’s policies on those matters.
(2) The Secretary is responsible for the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient administration of the Department. The Secretary may establish, reorganize, or abolish areas of responsibility in the Department as necessary to fulfill the duties assigned to the Secretary.
(3) The Secretary is responsible for establishing policy to be followed by the units in the Department.
(d) The Secretary is entitled to the salary provided in the State budget.
(a) (1) With the approval of the Governor, the Secretary shall appoint a Deputy Secretary.
(2) The Deputy Secretary:
(i) is in the executive service of the State Personnel Management System and serves at the pleasure of the Secretary;
(ii) is entitled to the salary provided in the State budget; and
(iii) has the duties provided by law or delegated by the Secretary.
(b) (1) The Secretary may employ a staff attached to the Office of the Secretary in accordance with the Code or the State budget.
(2) Each staff assistant in the Office of the Secretary in charge of a particular area of responsibility and each professional consultant is in the executive service, management service, or is a special appointment in the State Personnel Management System and is appointed by and serves at the pleasure of the Secretary.
(3) Except as provided in this section or otherwise by law, the Secretary shall appoint and remove all other staff in the Office of the Secretary in accordance with the provisions of the State Personnel and Pensions Article.
(4) The Secretary may review any personnel action taken by any unit in the Department. The Secretary may delegate the power to approve any appointment or removal to the head or governing body of any unit in the Department.
(a) The Secretary is responsible for the budget of the Office of the Secretary and for the budget of each unit in the Department.
(b) (1) The Secretary may adopt regulations for the Department and its units.
(2) The Secretary shall review and may approve, disapprove, or revise regulations of any unit of the Department.
(c) The Secretary may create any advisory body of any size that the Secretary considers appropriate for the operation of the Department.
(d) The Secretary shall have a seal.
(e) (1) The Secretary is responsible for the planning of activities, programs, and services of the Department.
(2) The Secretary may review, approve, disapprove, or modify the plans, proposals, and projects of the units in the Department.
(f) On or before December 1 of each year, the Secretary shall send a report to the Governor on the activities of the Department during the previous fiscal year.
(g) (1) Except as otherwise provided in paragraph (2) of this subsection, the Secretary may exercise any authority that is granted to any unit in the Department.
(2) This subsection does not authorize the Secretary to exercise any authority granted to the General Professional Services Selection Board.
(a) This section does not apply to a unit in the Department to the extent that the unit is permitted by law to employ its own legal adviser or counsel.
(b) The Attorney General is legal adviser to the Department.
(c) The Attorney General shall assign to the Department the number of Assistant Attorneys General authorized by law to be assigned to the Department and to its units.
(d) (1) The Attorney General shall designate 1 of the Assistant Attorneys General assigned to the Department as counsel to the Department. After the Attorney General designates the counsel to the Department, the Attorney General may not reassign the counsel without consulting the Secretary.
(2) The counsel may have no duty other than to give the legal aid, advice, and counsel required by the Secretary or any other official of the Department, to supervise the other Assistant Attorneys General assigned to the Department, and to perform for the Department the duties that the Attorney General assigns. The counsel shall perform these duties subject to the control and supervision of the Attorney General.
(a) The following units are in the Department:
(1) the Board of Architectural Review;
(2) the Office of State Procurement; and
(3) any other unit that is in the Department under any other law.
(b) Each unit in the Department shall report to the Secretary.
In addition to its other functions, the Department shall perform any function requested of it or delegated to it by the Board of Public Works.
The Department has any power necessary and proper to accomplish a function conferred on it by law or delegated to it or requested of it by the Board of Public Works.
The Department of General Services, the Department of Transportation, and the University System of Maryland shall reserve a reasonable amount of space in State buildings under their control, subject to regulations adopted by the Board of Public Works, so that any law enforcement agency or State recognized nonprofit advocacy group for abducted children can display the picture of a child abducted in a noncustody-related abduction in the reserved space.
(a) In this section, “POW/MIA flag” means the POW/MIA flag of the National League of Families of American Prisoners and Missing in Southeast Asia.
(b) This section does not apply to:
(1) the State House; or
(2) a State building that:
(i) is a historic building; or
(ii) 1. has a flagpole attached to the building; and
2. is determined to be structurally unable to withstand additional flags being flown from the flagpole.
(c) The Secretary of General Services and the Secretary of Transportation shall cause the POW/MIA flag to be flown on the grounds of all State buildings under their control whenever the flag of the United States is flown.
(a) (1) In this section the following words have the meanings indicated.
(2) “Executive agency” means a unit of the Executive Branch of State government.
(3) “Identification card” means a security card issued by the Department to a State employee or other individual authorized by the Secretary, including a contractor, regulated lobbyist, media personnel, local government official, or volunteer.
(b) (1) The Department may include a notation on an identification card indicating that the holder is a veteran if the individual issued the identification card presents a certification of veteran status obtained from the Department of Veterans and Military Families in accordance with § 9–905 of the State Government Article, a DD Form 214, or other documentation acceptable to the Department.
(2) The Department may limit the notation authorized by paragraph (1) of this subsection to a certain category or categories of identification card holders.
(c) (1) If the Department provides an option for a notation on an identification card that indicates that the holder is a veteran, the Department shall include on the application for the identification card the option for the applicant to:
(i) indicate that the applicant is a veteran; and
(ii) consent to being contacted by appropriate executive agencies regarding the individual’s eligibility for State or federal veterans’ benefits.
(2) (i) In accordance with Title 4, Subtitle 3 of the General Provisions Article and any other applicable law, and on request by an executive agency, the Department shall transmit to the executive agency appropriate information about each identification card holder who has given consent under paragraph (1)(ii) of this subsection.
(ii) Unless otherwise authorized or required by law, the Department may not transmit information obtained on an application for an identification card that relates to the applicant’s status as a veteran unless the applicant has given consent under paragraph (1)(ii) of this subsection.
(d) The Department may adopt regulations to carry out this section.
(a) In this subtitle the following words have the meanings indicated.
(b) “Bid” means a bid, proposal, or other response to a solicitation.
(c) (1) “Services” means the rendering of time, effort, or work, rather than the furnishing of a specific physical product other than reports incidental to the required performance.
(2) “Services” includes maintenance, construction–related services, architectural services, engineering services, information technology services, cybersecurity, and the professional, personal, or contractual services provided by attorneys, accountants, physicians, consultants, and other professionals who are independent contractors.
(d) “Supplies” means tangible property, including commodities, information technology hardware, equipment, materials, and intangible property, including information technology software.
There is an Office of State Procurement in the Department.
The Secretary may delegate any power or duty set forth in Part I or Part II of this subtitle or Division II of this article to the Chief Procurement Officer of the Office of State Procurement.
(a) The Secretary or any employee of the Department may not:
(1) be interested in any contract or bid for furnishing any supplies to any unit that procures supplies under Division II of this article;
(2) be connected in any manner, directly or indirectly, with any contract or bid for furnishing any supplies to any of those units; or
(3) accept or receive, directly or indirectly, whether by rebate, gift, or otherwise, from a person to whom a contract may be awarded:
(i) any money or thing of value; or
(ii) any promise, obligation, or contract for future reward or compensation.
(b) If the Secretary or any employee of the Department violates any provision of this section, the Secretary or employee is guilty of a misdemeanor and on conviction is subject to a fine not less than $1,000 or imprisonment not exceeding 6 months or both.
Any contract for printing for the State shall be made through or with the approval of the Secretary except for:
(1) a contract for printing for the General Assembly and its staff agencies;
(2) a contract for printing a record or brief for the Office of the Attorney General; and
(3) a contract for printing of the Maryland Reports or the Maryland Appellate Reports.
(a) The Secretary shall adopt standards for maintaining stores and inventory control for all supplies required by any unit that procures supplies under Division II of this article.
(b) (1) To the extent required by the Secretary, each unit that procures supplies under Division II of this article shall file with the Secretary an inventory of the supplies in its possession.
(2) The unit shall submit the inventory to the Secretary at least once a year.
(3) The inventory is subject to audit.
The Secretary or the Chief Procurement Officer shall provide a copy of each award for supplies to the requisitioning unit.
(a) The Department may establish a program that leverages State purchasing power to offer favorable rates to units of local government to procure information technology or cybersecurity services from contractors.
(b) A unit of local government may not be required to participate in a program established under subsection (a) of this section.
Except as otherwise specifically provided by law, each unit of the Executive Branch of the State Government shall purchase all supplies and services through or with the approval of the Secretary or the Chief Procurement Officer.
Except as otherwise specifically provided by law, an invoice for supplies purchased by the Secretary, by the Chief Procurement Officer, or by any unit that procures supplies under Division II of this article may not be paid until the invoice has been approved by the Secretary, the Chief Procurement Officer, or a designee of the Secretary or the Chief Procurement Officer.
Except as otherwise specifically provided by law and consistent with Division II of this article, the Secretary or Chief Procurement Officer shall set standards for supplies to be purchased by a unit, including standards for electronic equipment used by State employees or the public for communications that are consistent with the standards for nonvisual access information technology issued under § 3–410 of this article.
Consistent with Division II of this article, the Secretary or the Chief Procurement Officer shall contract for or purchase any supplies or services for a unit except:
(1) an item that the Secretary or Chief Procurement Officer:
(i) determines is strictly perishable;
(ii) determines is impracticable for the unit to purchase through or with the approval of the Secretary or Chief Procurement Officer; or
(iii) permits the unit to purchase with the approval of the Secretary or Chief Procurement Officer; or
(2) supplies or services authorized by statute to be procured by another primary procurement unit or delegated to another unit.
At time intervals set by the Secretary or Chief Procurement Officer, each unit that procures supplies under Division II of this article shall send to the Secretary or Chief Procurement Officer estimates of the amount and quality of any needed supplies.
(a) An employee of a unit that procures supplies under Division II of this article whose salary and expenses are paid from the fees of the employee’s office may not pay any contractor or seller for any article of any kind acquired for the unit unless the invoice approved by the employee is also approved by the Secretary or Chief Procurement Officer or a designee of the Secretary or Chief Procurement Officer.
(b) The Governor may remove an employee for any violation of the provisions of this section.
(a) Subject to the initial approval of the Secretary or Chief Procurement Officer, the appropriate purchasing unit for the following entities may use the services of the Department to purchase services, materials, supplies, and equipment:
(1) a county;
(2) a municipality;
(3) a governmental unit in the State;
(4) a public or quasi–public agency that:
(i) receives State money; and
(ii) is exempt from taxation under § 501(c)(3) of the Internal Revenue Code;
(5) a private elementary or secondary school that:
(i) either has been issued a certificate of approval from the State Board of Education or is accredited by the Association of Independent Schools; and
(ii) is exempt from taxation under § 501(c)(3) of the Internal Revenue Code; or
(6) a nonpublic institution of higher education as provided under § 17–106 of the Education Article.
(b) Notwithstanding subsection (a)(5) and (6) of this section, the Department may not purchase religious materials on behalf of a private elementary or secondary school or a nonpublic institution of higher education.
(c) The purchasing authority under this section is in addition to, and not a substitution for, the purchasing power of an entity under another law.
The Department, in consultation with the Maryland Cybersecurity Coordinating Council established in § 3.5–2A–05 of this article, shall study the security and financial implications of executing partnerships with other states to procure information technology and cybersecurity products and services, including the implications for political subdivisions of the State.
This Part III of this subtitle does not apply to:
(1) intergovernmental lease transactions;
(2) lease transactions involving property located outside the State;
(3) lease transactions declared by the Secretary to be necessary because of an emergency;
(4) lease transactions where the State is the lessor; or
(5) lease transactions involving up to 5,000 square feet of property.
(a) This section applies to any lease of property by the State.
(b) (1) The Department shall give written notice of each proposed initial lease of property to:
(i) the governing body of each political subdivision in which the property is located; and
(ii) each member of the General Assembly in whose legislative district the property is located.
(2) If the notice given under paragraph (1) of this subsection is for at least 2 proposed sites from which 1 site is to be selected, before any site is finally selected, the Department shall give written notice of the site that has been proposed for final selection.
(c) Within 30 days after receiving notice under subsection (b)(1) of this section, the governing body or the member of the General Assembly may submit written comments to the Department.
(d) A lease for a site may not be executed until 31 days after the day that notice is received under subsection (b)(1) of this section.
(a) In this section, “eMaryland Marketplace” has the meaning stated in § 13–101 of this article.
(b) The Department shall advertise any need of the State to rent building space at least 20 days before proposals for a lease are due.
(c) The Department shall advertise the proposed leasing:
(1) in daily or weekly newspapers with circulation sufficient to provide notice to the people of the State, or at least to the people of the affected locality; and
(2) by posting a publication on the Department’s website and eMaryland Marketplace.
(d) The advertisement shall contain:
(1) the number of square feet proposed to be leased; and
(2) the general area in which the State desires to lease the space.
(a) Each proposal for the lease of building space by the State shall be submitted to the Secretary.
(b) Unless a regulation of the Board of Public Works provides otherwise, the Secretary shall submit each proposal, along with any recommendation of the Secretary, to the Board of Public Works for final approval.
(c) The Board of Public Works shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article concerning submission of proposals for the lease of building space under this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “Broker rebate fee” is a commission sharing payment based on an established commission rebate percentage.
(3) “Fund” means the Department of General Services Broker Rebate Fee Fund.
(b) There is a Department of General Services Broker Rebate Fee Fund.
(c) The purpose of the Fund is to provide funding to support the actions of the Secretary in implementing, regulating, administering, and enforcing this part.
(d) The Secretary shall:
(1) administer the Fund; and
(2) direct any broker rebate fees collected under this part to the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) revenue distributed to the Fund from broker rebate fees received in connection with any lease of building space by the State under this part;
(2) money appropriated in the State budget to the Fund;
(3) interest earnings; and
(4) any other money from any other source accepted for the benefit of the Fund.
(g) The Fund may be used only to cover the expenses, including administrative expenses, of the Department in carrying out the requirements of this title.
(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) Expenditures from the Fund may be made only in accordance with the State budget.
(a) In this subtitle the following words have the meanings indicated.
(b) “Chief” means the Chief of the Division.
(c) “Division” means the Land Acquisition Division of the Department.
(d) “Public improvement” includes any construction, maintenance, or repair of any building, structure, or other public work:
(1) owned or constructed by the State or any unit of the State government, including the University System of Maryland, St. Mary’s College of Maryland, Morgan State University, and Baltimore City Community College; or
(2) acquired or constructed in whole or in part with State funds.
(a) Except as provided in § 4–409 of this subtitle, this subtitle does not apply to any public improvement made by:
(1) the Department of Transportation or a unit in that Department;
(2) any housing authority created under Division II of the Housing and Community Development Article;
(3) the Maryland–National Capital Park and Planning Commission;
(4) the Washington Suburban Sanitary Commission;
(5) the Baltimore County Metropolitan District;
(6) a county, municipal corporation, or unit of a county or municipal corporation;
(7) the University System of Maryland;
(8) Morgan State University;
(9) St. Mary’s College of Maryland; or
(10) Baltimore City Community College, if the value of the contract for the public improvement is $500,000 or less.
(b) The Board of Public Works may exempt specific projects of a unit of the State government from the provisions of this subtitle.
(c) The Board of Public Works shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article establishing procedures for the exemption of specific projects of units of State government under subsection (b) of this section.
(a) The Department of General Services shall assist the Department of Budget and Management:
(1) in developing technical details necessary for the preparation of the Capital Improvement Program for any unit of the State government; and
(2) in any regional study relating to land acquisition, dedication, lease, transfer, and the like.
(b) The Department shall assist and advise any unit of the State government, including the Board of Public Works:
(1) in the review and approval of any change to a contract, plan, or specification for a public improvement; and
(2) on any engineering matter, survey, plan, specification, or contract for a public improvement or land acquisition that:
(i) may come before the Board of Public Works; or
(ii) may be of interest to the unit of the State government.
(c) The Department shall enforce the State Building Code.
(a) (1) The Department shall advise the Board of Public Works and any unit of the State government in connection with any engineering question or matter concerning a public improvement.
(2) The Department shall supervise any engineering question or matter concerning a public improvement.
(3) Any contract, plan, or specification for any public improvement that involves an engineering question:
(i) shall be submitted to the Department; and
(ii) is subject to the approval of the Department.
(4) At the request of the Board of Public Works, the Department shall advise the Board of Public Works on any contract that exceeds $500,000 if the contract involves an engineering question or a matter concerning a public improvement undertaken by the University System of Maryland, Morgan State University, or St. Mary’s College of Maryland.
(b) The Department shall:
(1) represent the Board of Public Works at the opening of bids for a public improvement;
(2) tabulate and record the bids; and
(3) advise the Board of Public Works on the bids.
(c) The Department shall supervise each appraisal related to a public improvement.
(d) (1) The Department shall collect and maintain a complete and accurate file of drawings and plats of the location of all public improvements.
(2) The Department shall collect and maintain records of construction costs and progress on each public improvement.
(3) The Department shall adequately store and protect any original drawing, plat, record, or specification.
(e) The Department shall examine and approve or disapprove each plan and specification prepared in connection with the preparation or execution of a contract for a public improvement.
(f) (1) The Department shall inspect and approve or disapprove any material, equipment, and methods used in making public improvements and shall inspect each public improvement during the course of construction or repair.
(2) The duty of the Department under this subsection does not relieve an architect or engineer of any supervisory responsibility for which the architect or engineer is employed.
(g) (1) The provisions of subsections (a), (b), (e), and (f) of this section do not apply to State correctional facilities as defined in § 11-101 of this article.
(2) In accordance with §§ 10-102 through 10-105 of the Correctional Services Article, the Department of Public Safety and Correctional Services shall perform the duties specified in subsections (a), (b), (e), and (f) of this section for State correctional facilities.
(a) The General Assembly finds that:
(1) units of the State government are under pressure to delay or eliminate needed physical facility maintenance and repair because of fiscal constraints;
(2) lack of regular maintenance and repair results in deterioration of public improvements and increased costs for repair or construction of entirely new replacement facilities; and
(3) a specific set of procedures is necessary to ensure that all units of the State government perform regular maintenance and repair.
(b) (1) The Department of General Services shall establish general policies and standards for maintenance and repair of public improvements.
(2) On or before December 31 of each year, the Department of General Services shall send any changes to these general policies and standards to:
(i) the Board of Public Works; and
(ii) the Department of Budget and Management.
(c) The Department shall:
(1) establish and supervise a comprehensive and continuing program of maintenance and repair of all public improvements; and
(2) review maintenance and operation of public improvements to the extent that any engineering question is involved.
(d) Each unit of the State government shall carry out a maintenance and repair program for each public improvement under the jurisdiction of the unit. In carrying out the program, the unit shall:
(1) conform to the policies and standards established by the Department; and
(2) allocate sufficient funds and personnel.
(a) On or before May 31 of each year, each unit of the State government shall send a report on the condition of each public improvement under its jurisdiction to:
(1) the Department of Budget and Management; and
(2) the Department of General Services.
(b) The report shall:
(1) identify the public improvement; and
(2) state whether the public improvement is being maintained in accordance with the policies and standards established by the Department of General Services.
(c) With the assistance of the Department of Budget and Management, the Department of General Services shall recommend measures necessary to correct deficiencies in the maintenance and repair programs.
On an annual basis, the Department may inspect the physical facilities of the public junior or community colleges and the regional community colleges in the State.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Assembly area” means a building or facility, or any portion of a building or facility, that:
1. is used for the purpose of entertainment, education, or civic gatherings; and
2. requires the use of a public address system.
(ii) “Assembly area” includes:
1. an amphitheater, an arena, and a stadium;
2. an auditorium;
3. a center for the performing arts;
4. a classroom and a lecture hall;
5. a concert hall;
6. a convention center;
7. a courtroom;
8. a legislative chamber;
9. a movie theater, a theater, and a playhouse; and
10. a public hearing and meeting room.
(iii) “Assembly area” does not include any outdoor area.
(3) “Assistive listening system” means an amplification system using transmitters to bypass the acoustical space between a sound source and a listener by means of a wireless direct connection, such as a hearing induction loop system, that couples to a:
(i) personal hearing device; or
(ii) receiver, such as a hearing induction loop receiver or other similar technology.
(4) “Construction or renovation” includes:
(i) construction;
(ii) reconstruction; and
(iii) renovation.
(5) “Hearing induction loop” means a hearing loop or T–loop system that takes a sound source and transfers it directly via a magnetic signal to:
(i) a hearing aid;
(ii) a cochlear implant;
(iii) a hearing induction loop receiver; or
(iv) any other personal hearing device that acts as a receiver.
(6) “Recipient of State funds” means any of the following that receive State money for the construction or renovation of an assembly area:
(i) a unit of State government;
(ii) a unit of local government; or
(iii) a for–profit or nonprofit entity or association.
(b) (1) A recipient of State funds shall install an assistive listening system in an assembly area during the construction or renovation of the assembly area if:
(i) the assembly area uses or requires the use of a public address system; and
(ii) a State contract has been executed to enable construction or renovation of the assembly area.
(2) (i) A recipient of State funds may apply for a waiver from the requirement under paragraph (1) of this subsection if:
1. the recipient claims that an assistive listening system is not technologically feasible; or
2. there is a dispute regarding whether the requirements of paragraph (1) of this subsection apply to a construction or renovation project.
(ii) A waiver request under subparagraph (i) of this paragraph shall include a description of the alternative assistive listening technology the recipient will use to comply with the Americans with Disabilities Act.
(c) (1) There is a Hearing Accessibility Advisory Board.
(2) (i) The Secretary shall appoint the members of the Board.
(ii) The Board shall consist of:
1. individuals who have expertise in assistive listening systems; and
2. consumers who use assistive listening systems.
(3) The Board shall:
(i) consult with stakeholders who are State residents who use or will use the facilities being built or renovated, including:
1. individuals with hearing loss; and
2. organizations that represent people with hearing loss and have background experience and knowledge of the use of assistive listening systems and devices;
(ii) make recommendations for regulations implementing this section;
(iii) consider applications for waivers submitted under subsection (b)(2) of this section; and
(iv) monitor compliance with this section and investigate any complaints regarding noncompliance.
(d) The Department shall adopt regulations to carry out this section, including regulations regarding:
(1) proper maintenance and training of staff;
(2) adequate signage; and
(3) a requirement for facilities to provide receivers that can use the technology for individuals who do not have a personal hearing device or do not have a hearing device with a telecoil or other built–in receiver.
(e) This section does not require State agencies or recipients of State funds to retrofit existing facilities that are not undergoing renovation.
(f) (1) (i) A person may bring a civil action for a violation of this section or if the person has reasonable grounds for believing that this section will be violated.
(ii) A person may not be required to take any other action before bringing a civil action under subparagraph (i) of this paragraph for a potential violation of this section if the person has actual notice that a recipient of State funds does not intend to comply with the requirements of this section.
(2) In a civil action brought under paragraph (1)(i) of this subsection, the court may:
(i) grant any equitable relief that the court considers appropriate, including:
1. temporary, preliminary, or permanent relief;
2. providing an auxiliary aid or service;
3. requiring a modification of policy, practice, or procedure; and
4. making facilities readily accessible to and usable by individuals with disabilities;
(ii) assess a civil penalty against the recipient of State funds; or
(iii) award any other relief the court considers to be appropriate.
(3) If a court orders injunctive relief under paragraph (1) of this subsection, the order shall include a requirement that the facilities be altered to make the facilities readily accessible to and usable by individuals with disabilities to the extent required by this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “Acquired” does not include a building leased by the State.
(3) “State building” means:
(i) a building acquired through any means by the State for use by a State agency or department;
(ii) a building constructed or renovated by or for the State for occupancy by a State agency or department; or
(iii) a building acquired, constructed, or renovated for which more than 50% of the money for the acquisition, construction, or renovation came from State funds.
(b) This section does not apply to:
(1) a public work contract of less than $500,000;
(2) a public work contract for which 50% or less of the funds used for the project are State funds;
(3) a project for which funding is provided in the capital budget as a grant to a nonprofit organization; or
(4) a public school construction project.
(c) (1) Except as provided in paragraph (4) of this subsection, the Department shall establish standards for State buildings to conserve energy and minimize adverse impacts on birds that are consistent with the U.S. Green Building Council’s Innovation Credit for reducing bird collisions and the American Bird Conservancy bird–friendly design recommendations.
(2) The Department shall update the standards developed under paragraph (1) of this subsection every 5 years.
(3) The standards developed under this subsection shall specify that, except where full operation of building lighting is documented as necessary, including for public safety or other purposes, interior and exterior lighting shall be appropriately shielded and minimized from midnight to dawn each day:
(i) from March 1 through May 31, both inclusive; and
(ii) from August 1 through October 31, both inclusive.
(4) The standards established under paragraph (1) of this subsection may not include a requirement for bird collision monitoring.
(5) The Department shall consider the physical health and mental health of building occupants when developing or updating standards under paragraph (1) of this subsection.
(d) Each State building constructed, substantially altered, or acquired by the State shall meet, to the extent practicable and within budgetary constraints as determined by the Department, the standards established under subsection (c) of this section.
(e) The Department shall reduce the lighting of existing State buildings, to the extent practicable and within budgetary constraints as determined by the Department:
(1) in accordance with subsection (c)(3) of this section; and
(2) by using automatic control technologies, which may include timers, photosensors, infrared detectors, and motion detectors.
(f) (1) Subject to paragraph (2) of this subsection, the Maryland Green Building Council shall include the standards established under this section in requirements that the Council establishes for the Maryland High Performance Green Building Program.
(2) Standards included in the Maryland High Performance Green Building Program under this subsection shall apply only to State buildings as defined in this section.
(g) The Secretary shall adopt regulations to carry out the provisions of this section.
There is a Land Acquisition Division in the Department.
(a) Except as otherwise provided in this section, the Division exclusively shall negotiate the acquisition of land for any public improvement.
(b) The Division shall make each State acquisition in the name of:
(1) the unit of the State government; or
(2) the principal department of the State government to which the unit belongs.
(c) The Division is not responsible for acquiring land for a local project.
(d) (1) The Division is not responsible for developing any acquired land.
(2) Development of any land acquired under Program Open Space is the responsibility of the unit of the State government.
(e) The provisions of this section and §§ 4–413 through 4–416 of this subtitle do not apply to land acquired by the Department of Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article.
(a) The head of the Division is the Chief of the Land Acquisition Division, who shall be appointed by the Secretary with the approval of the Governor.
(b) The Chief serves at the pleasure of the Secretary.
(c) The Chief must be experienced and skilled in the field of land acquisition.
(d) The Chief is entitled to the salary provided in the State budget.
(a) The Chief is responsible to the Department for:
(1) administering the Division; and
(2) carrying out any function assigned to the Division.
(b) The Chief shall organize the Division as necessary to carry out the powers and duties of the Division.
(c) Subject to the approval of the Secretary, the Chief may employ a staff and any professional consultant in accordance with the State budget.
(a) This section does not apply to any capital expenditures by the Department of Transportation or the Maryland Transportation Authority in connection with State roads, bridges, or highways.
(b) Before execution, a contract for the acquisition of land shall be:
(1) reviewed by the Secretary of General Services; and
(2) except as provided in § 12-204 of this article, after that review, approved by the Board of Public Works.
(c) (1) This subsection does not apply to any capital expenditure by:
(i) the Maryland Aviation Administration;
(ii) the Maryland Port Administration; or
(iii) the Maryland Transit Administration.
(2) At least 40 days before the Board of Public Works may act on a land acquisition, the Division shall give written notice of a potential acquisition of land:
(i) to the governing body of the county in which the land is located; and
(ii) if the land is located within a municipal corporation, to the governing body of the municipal corporation.
(3) Within 30 days after receiving notice under this subsection, the governing body may submit written comments to the Division.
(d) The Board of Public Works shall supervise the expenditure of any money that the General Assembly appropriates for the acquisition of land.
(a) Except for real property that is acquired by gift, before any real property is acquired from a private owner, the Board of Public Works shall obtain two independent appraisals of the property.
(b) The Board of Public Works shall adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article, to carry out this section.
(a) In this subtitle the following words have the meanings indicated.
(b) “Excess personal property” means an item of personal property that is declared to be in excess of the needs of the custodial unit of the State government because the item:
(1) is not necessary to the efficient operation of the unit; or
(2) has been replaced by a similar item.
(c) “Nonexpendable item” means an item of equipment or furnishing that has:
(1) an anticipated useful life of more than 1 year; and
(2) an original cost exceeding a minimum dollar amount established by the Department by regulation.
(d) “Surplus personal property” means an item of excess personal property that the Department declares is not needed by any unit of the State government.
(a) (1) The head of a unit of the State government may declare an item of personal property in the possession of the unit to be excess personal property by submitting a declaration of excess personal property to the Department.
(2) The declaration is effective on approval by the Department.
(b) The Department may declare excess personal property to be surplus personal property if the Department determines that the excess personal property cannot be used by any unit of the State government.
(a) The Department shall administer all arrangements for moving excess personal property or surplus personal property.
(b) The Department shall decide whether excess personal property or surplus personal property shall be:
(1) moved to a central location; or
(2) disposed of at its present location.
(a) The Secretary may dispose of excess personal property and surplus personal property as provided in this section.
(b) (1) Whenever feasible, the Secretary shall dispose of excess personal property by transferring it to another unit of the State government.
(2) The unit of the State government that receives the excess personal property shall pay any cost of the transfer.
(c) The Secretary:
(1) may dispose of any surplus personal property; and
(2) shall seek to gain the maximum value for the State in the disposition.
(d) (1) The Secretary shall dispose of surplus personal property:
(i) by dismantling it for recovery of valuable parts;
(ii) by trading it in;
(iii) by transferring it to a local jurisdiction, public school system, or nonprofit organization;
(iv) by auctioning or selling it, including selling it for scrap value; or
(v) if no value can be realized from it, by destroying it.
(2) If surplus personal property is destroyed under this subsection, the unit of the State government that declared the item to be excess personal property shall pay any cost of destruction.
(e) The Secretary may delegate the authority to dispose of surplus personal property to a designee of the Secretary or, by regulation, to another unit of the State government.
(a) Except as provided in subsection (b) of this section, money received from the auction or sale of any surplus personal property in excess of charges which might be imposed by the Department of General Services for conducting the auction or sale shall be deposited in the General Fund of the State. If the Department of Budget and Management approves, the money in excess of the service charge may be credited to the account of the unit of the State government that declared the property to be excess personal property.
(b) Money received from the auction or sale of surplus personal property shall be deposited as follows:
(1) if the item was purchased from a special fund appropriation, the proceeds shall be deposited in the appropriate special fund;
(2) if the item was purchased with bond money, the proceeds shall be deposited in the Annuity Bond Fund; and
(3) if the item was purchased with federal money, the proceeds shall be disbursed in accordance with federal law.
(a) The Department shall distribute periodically a list of excess personal property to each unit of the State or a local government.
(b) The Department shall adopt regulations to implement this subtitle. Any regulation adopted under this subtitle is subject to approval by the Board of Public Works.
(c) The Department may use excess personal property to satisfy a purchase requisition if the excess personal property:
(1) is functional;
(2) is serviceable; and
(3) satisfies the need of the requisitioning unit.
If the Department trades in surplus personal property for a replacement for the unit of the State government that declared the item excess, the Department shall give credit to that unit in the form of a reduced cost for the replacement property.
If a unit of the State government requisitions a nonexpendable item to replace any item, the unit shall declare the existing item to be excess personal property unless the Department of Budget and Management waives this requirement. The unit of the State government seeking to replace the item shall submit a declaration of excess personal property to the Department of General Services with the purchase requisition for the replacement item.
(a) Subject to subsection (b) of this section, the Department has jurisdiction over and full police authority for the enforcement of the criminal laws and the parking and motor vehicle laws as to the operation, maintenance, and protection of:
(1) buildings and grounds that, on June 30, 1984, were administered by the Office of Annapolis Public Buildings and Grounds, and extending to the surrounding area that encompasses 1,000 feet in any direction from the boundary of those buildings and grounds;
(2) buildings and grounds that, on June 30, 1984, were administered by the Office of Baltimore Public Buildings and Grounds, and extending to the surrounding area that encompasses 1,000 feet in any direction from the boundary of those buildings and grounds;
(3) multiservice centers designated by law or by the Board of Public Works and extending to the surrounding area that encompasses 1,000 feet in any direction from the boundary of those multiservice centers;
(4) buildings and grounds that, on June 30, 2019, were administered by the Maryland Department of Labor, and extending to the surrounding area that encompasses 1,000 feet in any direction from the boundary of those buildings;
(5) State–owned or State–leased buildings and grounds and extending to the surrounding area that encompasses 1,000 feet in any direction from the boundary of those buildings and grounds; and
(6) other public improvements or grounds designated by law or by the Board of Public Works.
(b) Consistent with Article 8 of the Maryland Declaration of Rights, with respect to State legislative buildings in the City of Annapolis, the presiding officers of the General Assembly shall have final authority over the use of and access to the buildings by the members of the General Assembly, their staff, and Department of Legislative Services personnel.
(a) In accordance with the provisions of the State Personnel and Pensions Article, the Secretary may appoint and remove superintendents to supervise designated improvements, grounds, and multiservice centers under the jurisdiction of the Department, including those in Annapolis and Baltimore City.
(b) A superintendent shall perform the duties delegated by the Secretary.
(c) A superintendent is entitled to compensation in accordance with the State budget.
The Secretary may establish divisions or offices in the Department to carry out the responsibilities for improvements, grounds, and multiservice centers under the jurisdiction of the Department.
For all improvements, grounds, and multiservice centers under the jurisdiction of the Department, the responsibilities of the Department include:
(1) keeping a complete inventory of movable property assigned to the Department;
(2) supervising utility and sanitation services and fire and safety systems;
(3) supervising repairs and other work;
(4) landscaping;
(5) purchasing carpets, equipment, furniture, and supplies;
(6) protecting persons and property, including dispersing any assemblage that is unlawful, is dangerous, or obstructs free passage;
(7) preserving and protecting the public peace, health, and safety; and
(8) controlling pedestrian and vehicular traffic, including establishing speed limits and parking and impoundment regulations for parking garages, surface parking lots, roads, and sidewalks that are owned or leased by the State and that are within the improvements, grounds, and multiservice centers.
(a) (1) In accordance with the provisions of the State Personnel and Pensions Article, the Secretary may establish a police and security force, known as the Maryland Capitol Police of the Department of General Services, to protect people and property on or about improvements, grounds, and multiservice centers under the jurisdiction of the Department, and in the surrounding areas of the buildings and grounds in the State as described in § 4–601 of this subtitle.
(2) (i) The Secretary shall appoint the Chief of the Maryland Capitol Police of the Department of General Services.
(ii) The Chief of the Maryland Capitol Police of the Department of General Services serves at the pleasure of the Secretary.
(iii) The Chief of the Maryland Capitol Police of the Department of General Services shall supervise and direct the affairs and operations of the Maryland Capitol Police.
(3) The Maryland Capitol Police of the Department of General Services may include sworn police officers.
(b) A member of the Maryland Capitol Police of the Department of General Services may not be involuntarily transferred from a site to another site.
(c) Subject to subsection (d) of this section, a Maryland Capitol Police officer has all the powers granted to a peace officer and a police officer of the State.
(d) A Maryland Capitol Police officer may exercise the powers described in subsection (c) of this section within the Department’s jurisdiction as specified in § 4–601 of this subtitle provided the police officer:
(1) meets the legal requirements set forth by the Maryland Police Training and Standards Commission; and
(2) is designated by the Department as a police officer.
(a) (1) Within the limits of any appropriation made for this purpose and as the Secretary determines necessary, the Secretary shall appoint police employees for the efficient administration of the Maryland Capitol Police of the Department of General Services.
(2) The Secretary shall make each appointment under paragraph (1) of this subsection from a list of eligible candidates in accordance with the provisions of the State Personnel and Pensions Article.
(b) (1) Each police employee, including an individual who is appointed to the Maryland Capitol Police for training before regular assignment as a police employee, shall remain in a probationary status for a period of 1 year after the date of appointment to the Maryland Capitol Police of the Department of General Services.
(2) The Secretary may terminate the employment of a police employee in probationary status for any reason that the Secretary considers sufficient.
(a) The Secretary may adopt regulations for the operation, maintenance, and security of the improvements, grounds, and multiservice centers under the jurisdiction of the Department.
(b) Any regulation adopted under this section shall be conspicuously posted.
(c) A person who violates a regulation adopted under this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $20 plus costs. A person who fails to pay any fine or costs imposed under this section may be imprisoned in jail for a period not exceeding 30 days.
(a) Annually, the State shall appropriate in the State budget and pay to the Mayor and Aldermen of the City of Annapolis at least $750,000 as payment for services provided to the State by the City of Annapolis.
(b) For fiscal year 2022 and each fiscal year thereafter, the appropriation required under subsection (a) of this section shall be increased by the percent increase in the Consumer Price Index for All Urban Consumers for the Baltimore Metropolitan Statistical Area.
In this subtitle, “Board” means the State Board of Architectural Review.
There is a State Board of Architectural Review in the Department.
(a) (1) The Board consists of 7 members.
(2) (i) Upon the recommendation of the Secretary and with the advice and consent of the Senate, the Governor shall appoint the members from a list of names:
1. of architects, submitted by the Baltimore, Chesapeake Bay, and Potomac Valley chapters of the American Institute of Architects;
2. of engineers, submitted by the Maryland Society of Professional Engineers; and
3. of landscape architects, submitted by the Maryland Chapter of the American Society of Landscape Architects.
(ii) There shall be at least 5 names on the list submitted by each organization.
(3) The Board shall consist of architects and at least 1 engineer, 1 landscape architect, and 1 architect who specializes or has particular experience in building preservation.
(b) The term of a member is 4 years.
(c) A member of the Board:
(1) may not receive compensation; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
Except for the Department of Transportation and the Maryland Transportation Authority in connection with the construction of roads, bridges, or highways, each State agency shall refer to the Board any major architectural problem or plan concerning the construction, reconstruction, or repair of a State building.
(a) In this subtitle the following words have the meanings indicated.
(b) “Building” means:
(1) any new structure with an area of at least 5,000 square feet;
(2) any change to an existing structure that:
(i) will add at least 10% gross floor space to the structure and has an estimated construction cost of more than $25,000; or
(ii) constitutes a major renovation; or
(3) any structure with an area of at least 5,000 square feet that is leased or owned by the State.
(c) “Energy-consumption analysis” means an evaluation, by type and amount of energy used, of:
(1) each piece of equipment that serves a building, including any piece of equipment that is used:
(i) to cool the building;
(ii) to heat the building; or
(iii) to heat water used in the building;
(2) each piece of equipment on the building site that is:
(i) used to generate electricity for the building; or
(ii) powered, in whole or in part, by coal, electricity, natural gas, oil, sun, or wind; and
(3) each conservation measure included in the building that decreases the energy requirements of the building.
(d) “Energy performance index” means a number that:
(1) describes the energy requirements of a building measured at the building boundaries under defined internal and external ambient conditions over an entire seasonal cycle; and
(2) is stated either:
(i) per square foot of floor space in the building; or
(ii) per cubic foot of occupied volume of the building.
(e) “Life of the building” has the meaning established by the Department under § 4-808 of this subtitle.
(f) “Life-cycle costs” means the sum of the following costs of a building:
(1) the cost of initial construction;
(2) the cost of all energy conservation measures;
(3) the cost of operation and maintenance, including labor and materials, for the life of the building;
(4) the cost, over the life of the building, of the fuel used by:
(i) the equipment that controls or provides the humidity, lighting, power, temperature, and ventilation of the building; and
(ii) other energy-using equipment in the building; and
(5) the other costs incident to owning the building.
(g) “Primary procurement unit” has the meaning provided in § 11-101 of this article.
To encourage the consideration of energy efficiency in building design and to establish a model for future application in the private sector, it is the policy of the State that any building financed or constructed by the State or with State assistance must be designed and constructed to:
(1) minimize the cost to the State; and
(2) achieve the most efficient use of energy resources in the operation and maintenance of the building.
(a) To save both cost and energy, the Department shall project life–cycle costs and perform an energy consumption analysis during the preliminary design phase of the construction or renovation of any building.
(b) Each construction appropriation shall require a State agency, including a district school board, to obtain a projection of life–cycle costs and an energy consumption analysis from the Department.
When a primary procurement unit replaces or supplements a major item of energy-consuming equipment in an existing building owned or leased by the State, the procurement of the equipment shall be made on the basis of a life-cycle cost analysis of alternatives in accordance with standards established under § 4-808 of this subtitle.
(a) So that it can audit and evaluate competing design proposals, the Department shall set standards for energy performance indices.
(b) As experience develops on the energy performance achieved in State buildings, the energy performance indices will serve as a measure of building performance with respect to energy consumption.
(c) The Department, in cooperation with the Maryland Energy Administration, shall assist State agencies in reducing, by 2031, the average energy consumption in State buildings by 20% from the level in fiscal year 2018.
(d) On or before October 1, 2024, the Maryland Green Building Council shall:
(1) update the High Performance Green Building Program authorized under § 3–602.1 of this article to ensure that all new buildings and major renovations subject to the Program align with the State’s goal of achieving net zero greenhouse gas emissions by 2045; and
(2) submit a copy of the updated Program to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.
(e) (1) The Department shall identify State–owned facilities that are potential candidates for energy savings performance contracts.
(2) State agencies shall provide on–site support to work with the Department at facilities identified as candidates for energy savings performance contracts under this subsection.
(f) (1) Each year, the Department shall conduct an energy and greenhouse gas emissions audit of at least 2,000,000 square feet of State–owned buildings.
(2) The audit shall include best practices and identify low–cost measures for increasing energy efficiency and reducing greenhouse gas emissions.
(3) The Department shall provide a copy of the audit to the head of each unit of State government that occupies the space audited.
(4) (i) Each unit of State government that occupies the space audited shall, to the fullest extent practicable, implement the measures identified in the audit.
(ii) For 1 year following the implementation of the measures identified in the audit, the Department shall:
1. monitor the unit’s energy use and greenhouse gas emissions;
2. track any changes resulting from the measures; and
3. calculate any energy cost savings and emissions reductions resulting from the measures.
(g) (1) In this subsection, “Database” means the Comprehensive Utility Records Management Database.
(2) The Department shall record reductions in energy consumption and greenhouse gas emissions resulting from the energy–savings measures in the Database.
(3) Each month or on request by the Department, each unit of State government shall provide the Department with access to available data about the unit’s facilities and copies of the unit’s utility bills.
(4) The Department shall report to the Governor annually on each unit’s data compliance.
(5) The Department shall use the facility data and utility bill information provided under this subsection to fully populate, update, and maintain the Database.
(h) Each unit of State government shall, in support of the unit’s core missions, implement projects and initiatives to conserve energy and reduce the unit’s greenhouse gas emissions.
(i) Provisions promoting the State’s energy efficiency and greenhouse gas emissions reduction goals shall be included in each request for proposals that:
(1) is for the leasing of space to the State; and
(2) would obligate the State to pay the utility bills for the leased space.
(j) Each fiscal year, the Department shall report to the Governor on the State’s progress toward achieving the goal of reducing energy consumption in State buildings by 20%.
(a) The Department, in cooperation with the Maryland Energy Administration, shall establish standards and procedures, including energy conservation performance guidelines, for evaluating the efficiency of the design for any proposed State-financed or State-assisted building construction.
(b) The standards shall be based on materials developed by the Department, in cooperation with the Maryland Energy Administration, and on the best currently available methods of evaluating design efficiency, including methods developed or used by:
(1) the Department of Housing and Urban Development and other federal agencies;
(2) the National Institute of Standards and Technology; and
(3) professional societies.
(c) The Department, in cooperation with the Maryland Energy Administration, shall update the standards and procedures by March 1 of each odd-numbered year.
(a) To determine life-cycle costs, the Department, in cooperation with the Maryland Energy Administration, shall establish standards that require at least:
(1) an evaluation of:
(i) the amount and type of glass used in the building and the directions of exposure;
(ii) the effect of insulation incorporated into the design of the building;
(iii) the effect of the use of active and passive solar energy systems;
(iv) if wind or solar energy is used, the orientation and integration of the building with respect to its site; and
(v) the variable occupancy and operating conditions of the building and its parts;
(2) an energy consumption analysis of each major piece of equipment in any of the following systems serving the building:
(i) the cooling system;
(ii) the heating system;
(iii) the hot water system;
(iv) the lighting system;
(v) the ventilation system; and
(vi) any other major energy-using system; and
(3) a comparison of possible alternative energy systems:
(i) that would use the most plentiful and available energy resources in combinations that would result in maximum energy efficiency, both in the building and at the source; and
(ii) with respect to the projected annual energy consumption of the major energy-using equipment of each system over the life of the building.
(b) To evaluate life-cycle costs, the Department shall:
(1) adopt and uniformly apply a definition of the “life of the building”; and
(2) provide defending criteria for the definition adopted.
(a) There is a Maryland Green Building Council.
(b) The Council shall include:
(1) the Secretary of General Services, or the Secretary’s designee;
(2) the Secretary of Budget and Management, or the Secretary’s designee;
(3) the Secretary of the Environment, or the Secretary’s designee;
(4) the Secretary of Labor, or the Secretary’s designee;
(5) the Secretary of Natural Resources, or the Secretary’s designee;
(6) the Secretary of Planning, or the Secretary’s designee;
(7) the Secretary of Transportation, or the Secretary’s designee;
(8) the Director of the Maryland Energy Administration, or the Director’s designee;
(9) the Director of the Interagency Commission on School Construction, or the Director’s designee;
(10) the Chancellor of the University System of Maryland, or the Chancellor’s designee; and
(11) six members appointed by the Governor to represent environmental, business, and citizen interests, one of whom has expertise in energy conservation or green building design standards.
(c) (1) The term of a member appointed by the Governor is 2 years.
(2) The terms of appointed members are staggered.
(3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(4) A member who is appointed after a term has begun serves only for the remainder of that term and until a successor is appointed and qualifies.
(5) The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position.
(6) A member appointed by the Governor may not receive compensation, but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(d) (1) The Governor shall appoint a chair from among the Council members.
(2) The Council may act with an affirmative vote of nine members.
(e) Staff support to the Council shall be provided by the Department of General Services, with assistance as necessary to be furnished by other involved agencies and units of State government.
(f) The Maryland Green Building Council shall:
(1) evaluate current high performance building technologies;
(2) provide recommendations concerning the most cost–effective green building technologies that the State might consider requiring in the construction of State facilities, including consideration of the additional cost associated with the various technologies;
(3) provide recommendations concerning how to expand green building in the State;
(4) develop a list of building types for which green building technologies should not be applied, taking into consideration the operational aspects of facilities evaluated, and the utility of a waiver process where appropriate;
(5) establish a process for receiving public input; and
(6) develop guidelines for new public school buildings to achieve the equivalent of the current version of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) Green Building Rating System Silver rating or a comparable rating system or building code as authorized in § 3–602.1 of this article without requiring an independent certification that the buildings have achieved the required standards.
(g) On or before November 1 of each year, the Council shall report to the Governor and the General Assembly, in accordance with § 2–1257 of the State Government Article, as to recommendations for the implementation plan for a higher performance building program in the State and any progress that has been made during the preceding year.
On or before January 1, 2030, each primary procurement unit shall ensure that at least 75% of the electricity supply procured by the unit for use in State facilities is derived from no– or low–carbon energy sources.
(a) In this subtitle the following words have the meanings indicated.
(b) “Eligible material” means any cement or concrete mixture used in the construction of an eligible project.
(c) (1) “Eligible project” means a capital project described in § 3–602.1(c) of this article.
(2) “Eligible project” does not include any maintenance program for the upkeep of an eligible project.
(d) “Global warming potential” means the degree that a given mass of a chemical contributes to global warming over a given time period when compared to the same mass of carbon dioxide.
(e) “Greenhouse gas” has the meaning stated in § 2–1202 of the Environment Article.
In administering this subtitle, the Department shall strive to achieve a continuous reduction of greenhouse gas emissions over time.
(a) (1) On or before December 31, 2024, producers of eligible materials shall submit environmental product declarations to the Department.
(2) The Department shall analyze environmental product declarations and assess global warming potential for eligible materials used in an eligible project in accordance with this section.
(b) On or before January 1, 2026, the Department shall, in consultation with the Department of Transportation, establish a maximum acceptable global warming potential for each category of eligible materials used in an eligible project in accordance with this section.
(c) The Department shall:
(1) base the maximum acceptable global warming potential on the industry average of global warming potential emissions for that material;
(2) determine the industry average of global warming potential emissions, which may include transportation–related emissions, by consulting nationally or internationally recognized databases of environmental product declarations; and
(3) express the maximum acceptable global warming potential as a number that states the maximum acceptable global warming potential for each category of eligible materials, consistent with criteria in an environmental product declaration.
(d) The Department may:
(1) establish additional subcategories within each category of eligible material with distinct maximum acceptable global warming potential limits;
(2) establish a maximum acceptable global warming potential for each material category in the aggregate; and
(3) consult with any other relevant unit of State government when establishing a maximum acceptable global warming potential for each category of eligible materials used in an eligible project.
(e) (1) Subject to paragraph (2) of this subsection, by January 1, 2029, and every 3 years thereafter, the Department shall review the maximum acceptable global warming potential for each category of eligible materials and may adjust the potential for any category to reflect industry conditions.
(2) The Department may not adjust the global warming potential upward for any category of eligible material.
NOT IN EFFECT
** TAKES EFFECT JULY 1, 2026 PER CHAPTERS 201 AND 202 OF 2023 **
(a) (1) For any solicitation for a contract for an eligible project, a unit of State government shall specify the eligible materials that will be used in the project and the reasonable minimum usage thresholds below which the requirements of this section do not apply.
(2) A unit of State government may include in a solicitation for an eligible project a global warming potential for any eligible material that is lower than the maximum acceptable global warming potential for that material as determined under § 4–903 of this subtitle.
(b) The Department shall require a successful bidder or offeror of an eligible project to submit, for each eligible material proposed to be used in the eligible project:
(1) a current environmental product declaration, type III, as defined by the International Organization for Standardization Standard 14025; or
(2) a similarly robust life cycle assessment method that includes uniform standards in data collection.
(c) A contractor may not install any eligible materials on the eligible project until the contractor submits a facility–specific environmental product declaration for that eligible material as required under subsection (b) of this section.
(d) If an environmental product declaration is not available for an eligible material, the contractor shall notify the unit and use an alternative eligible material with an environmental product declaration.
(e) The Department may waive the requirements of this section if it determines that requiring the relevant eligible materials would:
(1) be technically infeasible;
(2) result in a significant increase in project cost;
(3) result in a significant delay in project completion; or
(4) result in only one source or manufacturer being able to provide the necessary materials.
NOT IN EFFECT
** TAKES EFFECT JULY 1, 2026 PER CHAPTERS 201 AND 202 OF 2023 **
(a) On or before December 1, 2025, and each year thereafter, the Department shall submit an annual report, in accordance with § 2–1257 of the State Government Article, to the General Assembly that includes:
(1) what the Department has learned about how to identify and quantify embodied carbon in building materials, including life cycle costs; and
(2) any obstacles the Department, bidders, or offerors have encountered in identifying and quantifying embodied carbon in building materials.
(b) The report submitted on or before December 1, 2025, shall include a description of the method that the Department used to develop the maximum acceptable global warming potential for each category of eligible materials.
(a) In this title the following words have the meanings indicated.
(b) “Department” means the Department of Planning.
(c) “Secretary” means the Secretary of Planning.
This title does not limit any planning powers that are conferred on any unit of the State government or of a local government by any other State law or local law that existed on June 1, 1959.
(a) There is a Department of Planning, established as a principal department of the State government.
(b) The head of the Department is the Secretary of Planning, who shall be appointed by the Governor with the advice and consent of the Senate.
(c) The Secretary serves at the pleasure of the Governor and is responsible directly to the Governor.
(d) (1) The Secretary shall advise the Governor on all matters assigned to the Department and is responsible for carrying out the Governor’s policies on these matters.
(2) The Secretary is responsible for the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient operation of the Department.
(3) The Secretary may establish, reorganize, or abolish areas of responsibility in the Department as necessary to fulfill the duties assigned to the Secretary.
(e) The Secretary is entitled to the salary provided in the State budget.
(a) The Secretary may employ a staff in accordance with the State budget.
(b) Each staff assistant in charge of a particular area of responsibility and each professional consultant is in the executive service, management service, or is a special appointment in the State Personnel Management System and is appointed by and serves at the pleasure of the Secretary.
(c) Except as provided in subsection (b) of this section or otherwise by law, the Secretary shall appoint and remove all other staff in accordance with the provisions of the State Personnel and Pensions Article.
(d) (1) The Secretary may review any personnel action taken by any unit in the Department.
(2) The appointment or removal of personnel by a board, division, or other agency within the jurisdiction of the Department is subject to the approval of the Secretary.
(3) The Secretary may delegate the power of approval to the heads or governing bodies of the boards, commissions, divisions, or other agencies within the jurisdiction of the Department.
(a) The Secretary is responsible for the budget of the Department.
(b) (1) The Secretary may adopt regulations for the Department.
(2) The Secretary shall review and shall have the power to approve or disapprove or revise the regulations of all boards, commissions, divisions, and other agencies within the jurisdiction of the Department.
(c) In addition to the meetings of any board or commission within the Department that are provided for by law or are called by the chair of the board or commission, the Secretary, whenever appropriate, may call a meeting of a board or commission to consider any subject that the Secretary considers necessary and proper.
(d) All boards, commissions, divisions, and other agencies of the Department shall report to the Secretary or the Secretary’s designee as provided in regulations or written directives of the Secretary.
(e) The Secretary may create any citizens’ advisory body that the Secretary considers necessary for the operation of the Department.
(f) The Secretary shall have a seal.
(g) (1) The Secretary is responsible for the comprehensive planning of programs and services of the Department.
(2) The Secretary shall review and approve or disapprove the plans of the units in the Department.
(h) The Secretary or a staff member of the Department designated by the Secretary shall have access to information that relates to State planning in the possession of any unit of the State government, of a regional government, or of a local government.
(i) If the entry is made in a manner so as to cause no unnecessary injury, the Secretary or a staff member of the Department designated by the Secretary may enter, at any reasonable hour, on any land in order to make examinations and surveys that relate to State planning.
(j) After providing adequate public notice, the Secretary shall hold hearings on matters of State planning whenever it is in the public interest to do so.
(k) In the interest of intergovernmental cooperation, the Secretary shall attend:
(1) meetings of regional planning commissions;
(2) interstate planning conferences; and
(3) other planning conferences.
(l) The Secretary may contract for professional or consultant services for work related to State planning as provided in the State budget.
(m) The Secretary may exercise any power necessary and proper to discharge the Secretary’s duties.
(a) The Attorney General is legal advisor to the Department.
(b) (1) The Attorney General shall assign to the Department the number of assistant Attorneys General authorized by law to be assigned to the Department and any additional ones necessary to give effective legal advice and counsel.
(2) The Attorney General also shall designate an assistant Attorney General as Counsel to the Department.
(c) (1) The Counsel to the Department may have no duty other than:
(i) to give the legal aid, advice, and counsel required by the Secretary and any other official of the Department;
(ii) to supervise the other assistant Attorneys General assigned to the Department; and
(iii) to perform for the Department the duties that the Attorney General assigns.
(2) The Counsel shall perform these duties subject to the control and supervision of the Attorney General.
(3) After the Attorney General designates the Counsel to the Department, the Attorney General may not reassign the Counsel without consulting the Secretary.
(a) For each fiscal year, the Governor may include in the annual budget bill an appropriation of $1,000,000 to the Department to provide a grant to the Maryland Humanities Council to be used for the Marilyn Hatza Memorial Strengthening the Humanities Investment in Nonprofits for Equity (SHINE) Grantmaking Initiative.
(b) The funds provided under subsection (a) of this section shall be used by the Maryland Humanities Council to provide general operating grants to small and mid–size humanities, arts, cultural, and educational nonprofit organizations.
(c) During the grant selection and award process, the Maryland Humanities Council shall:
(1) consider the geographic and racial diversity of potential recipients; and
(2) award grants on a one–time or multiyear basis.
(d) On or before December 31 each year, the Maryland Humanities Council shall submit an annual report to the Department that includes the following information for the calendar year:
(1) the names of the grant recipients;
(2) the number of grant recipients by jurisdiction;
(3) the amounts of each grant awarded; and
(4) information from each grant recipient regarding the purposes for which the funds were expended, including how the recipient used the funds to:
(i) create or preserve jobs;
(ii) support or maintain general operations; and
(iii) create or sustain humanities programs.
(a) The Department is the staff agency of the Governor for planning matters with the exception of capital facilities planning.
(b) (1) The Department is the principal staff agency for planning matters concerning the resources and development of the State.
(2) In this capacity, the Department shall undertake special studies, submit reports, and give advice to the Governor at the request of the Governor.
The Department shall function in part as an advisory, consultative, and coordinating agency.
To promote the health, safety, and general welfare of the citizens of the State, the Department shall prepare, recommend, and periodically revise a balanced, integrated program for the development and effective use of the natural and other resources of the State.
(a) The Department may accept funds, grants, and services from public and private sources to carry out its powers and duties.
(b) (1) (i) The Department may charge reasonable fees for services and products.
(ii) The fees charged may not exceed the cost of providing the service or product.
(2) All fees collected under this subsection shall be credited to a continuing nonlapsing fund that is not subject to § 7-302 of this article.
(3) Subject to the appropriation process in the State budget, the Department shall use the fund for the costs of operating.
(4) The State Treasurer shall hold and the State Comptroller shall account for the fund.
(5) The fund shall be invested and reinvested in the same manner as other State funds.
(6) Investment earnings accrue to the benefit of the fund.
(a) With respect to any administrative, judicial, or other proceeding in the State concerning land use, development, or construction, the Department has the right to:
(1) intervene as a party; or
(2) file a formal statement expressing the views of the Department and any other unit of the State government concerning environmental or economic impact.
(b) The Department may intervene only in accordance with the rules of procedure and law that apply to the proceeding.
(c) After intervening, the Department has the standing and all the rights of a party in interest or an aggrieved party, including all rights of judicial review and appeal.
(d) The Department and the governing body of each local subdivision shall establish procedures for notifying the Department of each application for zoning, a permit, or authority to use, develop, or construct on land, whenever the application:
(1) has more than local impact; and
(2) is of substantial State or regional interest.
(a) The Department shall prepare population projections for the State, each county, and, on request of a municipal corporation, for a municipal corporation in the State.
(b) The population projections prepared for the State and each county shall include details of age, sex, and race.
(c) The Department shall prepare the population projections for periods of 20 years, in 5–year intervals beginning with 2025.
(d) Beginning in 1991, the Department shall revise the population projections at least every 3 years.
(e) In preparing the population projections for the Washington metropolitan and Baltimore metropolitan areas, the Department may use the population figures developed by the Baltimore Metropolitan Council, the Metropolitan Washington Council of Governments, and the member jurisdictions of these councils.
(a) Each year, no later than 60 days before the General Assembly convenes for its regular session, the Department shall submit a report to the Governor.
(b) The annual report shall include:
(1) a summary and description of the nature of every section of the State Development Plan that has been:
(i) added, deleted, or revised since the last annual report; and
(ii) filed by the Governor under § 5–605 of this title;
(2) a summary of each important study wholly or partly completed by the Department since the last annual report; and
(3) a summary of the work of the Department.
(c) The Department shall distribute copies of the annual report:
(1) subject to § 2–1257 of the State Government Article, to the General Assembly;
(2) to the head of each department of the State government;
(3) to the head of each local or regional planning agency in the State; and
(4) on request, to any federal agency.
(d) The Department shall make copies of the annual report available for general distribution or sale.
(a) On the request of the Governor, the General Assembly, or the Legislative Policy Committee, the Department shall submit a special report on any aspect of the work of the Department that is considered to be of current interest.
(b) The Department may submit a special report on any aspect of its work that the Secretary considers to be of current interest.
(c) The Department shall make special reports on major research and planning projects, as distinguished from mere compilations of current information, available as soon as practicable after completion.
(d) The Department shall distribute a copy of a special report:
(1) subject to § 2-1257 of the State Government Article, to the General Assembly;
(2) to the head of each department of the State government;
(3) to the head of each local or regional planning agency in the State; and
(4) on request, to any federal agency.
(e) The Department shall make copies of special reports available for general distribution or sale.
The Department may exercise any power necessary and proper to discharge its duties.
(a) Each unit of the State government shall notify the Department in writing of:
(1) any real property that is in excess of the needs of the unit; or
(2) any substantial change to any real property owned by the State.
(b) Subject to subsection (c) of this section, for any real property identified under subsection (a) of this section, the Department shall:
(1) study the proper disposition of the property;
(2) determine whether any local government or unit of the State government is interested in the property; and
(3) make an appropriate recommendation to the using unit of the State government and to the Board of Public Works.
(c) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this subsection applies to the following categories of real property owned by the State in fee simple:
1. property acquired with Program Open Space funds under Title 5, Subtitle 9 of the Natural Resources Article;
2. property acquired with Rural Legacy Program funds under Title 5, Subtitle 9A of the Natural Resources Article;
3. public park land and recreational areas acquired under Title 5, Subtitle 10 of the Natural Resources Article;
4. wildland and open areas acquired under Title 5, Subtitle 12 of the Natural Resources Article;
5. heritage conservation areas acquired with funds under Title 5, Subtitle 15 of the Natural Resources Article;
6. forest conservation areas acquired under Title 5, Subtitle 6 of the Natural Resources Article;
7. GreenPrint areas acquired under Title 5, Subtitle 15A of the Natural Resources Article;
8. property identified in the most current public lands acreage report published by the Department of Natural Resources that is classified under designated land units or under undesignated land units within an agency or program; and
9. outdoor recreation, open space, conservation, preservation, park, or forest land property identified by the Department of Natural Resources in regulation.
(ii) This subsection does not apply to:
1. property declared excess for purposes of corrective disposal, including boundary or access corrections and minor road improvements for public safety; or
2. property exchanged by the Department of Natural Resources in accordance with § 1–109(e)(3) of the Natural Resources Article.
(2) When a unit notifies the Department under subsection (a) of this section, the unit shall include with the notification:
(i) the history of the acquisition of the property;
(ii) the rationale for the acquisition provided to the Board of Public Works at the time of the acquisition;
(iii) any future conservation plans for the property;
(iv) the environmental and ecological attributes of the property;
(v) the cultural and historical significance of the property;
(vi) the relationship of the property to surrounding and nearby real properties;
(vii) the actual cost savings, if any, that the unit anticipates will result from the disposal of the property;
(viii) any expected revenues that would be generated from the disposal of the property; and
(ix) any other justification or basis that the unit relied on in its determination that the property is in excess of its needs.
(3) The information provided under paragraph (2) of this subsection shall be made available by the unit or the Department on request.
(4) After the Department receives notice from a unit under subsection (a) of this section, the Department shall:
(i) notify:
1. the Senate Budget and Taxation Committee, the Senate Education, Health, and Environmental Affairs Committee, the House Environment and Transportation Committee, and the House Appropriations Committee by electronic mail or facsimile and by first–class mail;
2. the General Assembly members who represent the legislative district in which the property is located by electronic mail or facsimile and by certified mail; and
3. owners of property adjacent to the property declared excess:
A. in writing by first–class mail; and
B. if practicable, by posting public notification signs on the property declared excess;
(ii) 1. hold a public hearing in the county or legislative district in which the property is located within 14 days after receiving a request for a hearing if:
A. within 14 days after the Department provides the notice required under item (i) of this paragraph, the Department receives a request for a public hearing from a person who received notice under item (i) of this paragraph or who resides in the county in which the property is located; and
B. the property has an estimated value of over $100,000; or
2. if a public hearing is not required under item 1 of this item, accept and consider written public comments on the declaration of the property as excess;
(iii) in conjunction with the local governing body of the jurisdiction in which the property is located, determine whether any proposed disposition would conform to the local comprehensive plan; and
(iv) 1. consolidate all information received by and all determinations made by the Department into a public record available on request; and
2. submit the record to the using unit.
(5) After review of the record created under paragraph (4) of this subsection, the using unit may rescind the notice of excess property submitted under subsection (a) of this section.
(6) If the using unit does not rescind the notice of excess property, the Department shall:
(i) based on all of the information collected by the Department, make an appropriate recommendation to the using unit and the Board of Public Works; and
(ii) notify the persons identified under paragraph (4)(i)1 and 2 of this subsection of the recommendation.
(d) The Department shall notify the Department of Housing and Community Development and, in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment, the Senate Budget and Taxation Committee, the House Environment and Transportation Committee, and the House Appropriations Committee of any property submitted to the Department under subsection (a)(1) of this section which has not been disposed of under subsection (b) of this section.
(a) To establish relative priorities and avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the plans and programs of all units of the State government.
(b) To avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the plans and programs of federal, State, regional, and local governments.
(a) The Department shall:
(1) harmonize its planning activities with the planning activities of other units of the State government;
(2) coordinate the plans and programs of all units of the State government;
(3) cooperate with and assist other units of the State government in the execution of their planning functions, to harmonize their planning activities with the State Development Plan; and
(4) promote the State’s Economic Growth, Resource Protection, and Planning Policy set forth in Subtitle 7A of this title.
(b) The Department shall:
(1) harmonize its planning activities with the planning activities of local governments; and
(2) cooperate with and assist local governments in the execution of their planning functions, to harmonize their planning activities with the State Development Plan.
(c) The Department shall:
(1) coordinate State programs with the federal government;
(2) cooperate with and assist units of the federal government in the execution of their planning functions, to harmonize their planning activities with the State Development Plan; and
(3) cooperate with, confer with, and, on request, provide information to:
(i) units of the federal government; and
(ii) local or regional agencies that are created under federal programs or that receive federal support.
(d) As far as possible, the Department shall cooperate with and confer with planning agencies of other states or of regional groupings of states.
(e) The Department shall cooperate with and assist regional and private planning agencies in the execution of their planning functions, to harmonize their planning activities with the State Development Plan.
(f) The Department shall exercise authority as the lead agency in coordinating the State’s land preservation efforts and focus its planning efforts on targeted land preservation.
(g) The Department shall plan for the efficient use of inactive railroad corridors by:
(1) examining all opportunities, both present and future, for acquisition or use of inactive railroad corridors;
(2) coordinating and working with the Departments of Natural Resources, Transportation, Commerce, and the State Railroad Administration and other agencies to determine the suitability and feasibility of acquiring or using inactive railroad corridors for recreational trails, public utilities, or future transportation purposes; and
(3) taking part in United States Interstate Commerce Commission proceedings regarding the abandonment or the discontinuance of use of railroad corridors on behalf of the State.
(h) The Department shall:
(1) review transportation plans and programs prepared by the Department of Transportation and regional planning agencies and make recommendations regarding the relationship between transportation and planned land use; and
(2) evaluate proposed transportation improvements and policies to assure consistency between transportation investments and the State Economic Growth, Resource Protection, and Planning Policy.
(i) The Department may provide advice to local governments regarding the impact on growth and development of:
(1) transportation components of local plans;
(2) aspects of local land use regulation affecting transportation; and
(3) local transportation improvements.
(a) The Department:
(1) shall provide planning assistance, including surveys, land use studies, urban renewal plans, technical services, and other planning work, to local governments; and
(2) may provide financial and other planning assistance to local governments as provided in the State budget.
(b) The Department may provide financial or other planning assistance to regional planning agencies as provided in the State budget.
(c) Before providing the assistance, the Secretary shall consider the adequacy and competency of any regional or local planning agency that requests financial assistance from the Department.
(d) The Secretary may require any local government or regional planning agency that receives financial or other planning assistance from the State to submit to the Secretary a copy of its planning budget.
(e) (1) The Secretary may require any local government or regional planning agency that receives financial or other planning assistance from the State to submit to an annual audit of its financial operations related to planning.
(2) The audit shall be performed by the Legislative Auditor or by an auditor or accountant legally qualified to perform municipal audits.
(3) The Secretary may accept an audit by the federal unit for a local government that receives financial or other planning assistance from a unit of the federal government.
(f) Whenever the Department requests and receives financial or other assistance from any unit of the federal government for planning assistance to a local government or a regional planning agency, the Department shall satisfy any requirement imposed by federal law.
(a) The Department may collect reimbursement, in accordance with an agreement, for technical services the Department provides under § 5-402 or § 5-403(a) of this subtitle.
(b) Except as otherwise provided in subsection (a) of this section, the Department may require a contribution in any amount from a local government or regional planning agency that requests assistance under § 5-403 of this subtitle.
(c) If federal law requires a contribution in any amount as a condition before a local government or a regional planning agency may receive financial or other planning assistance, the Department may supply all or part of the contribution as provided in the State budget, unless the federal law specifies that the local government or regional planning agency shall make the contribution.
(a) The Secretary may make an agreement with the head of another unit of the State government, of a local government, of a regional or local planning agency, or of a unit of the federal government for the temporary exchange or transfer of employees:
(1) from the Department to the unit, local government, or agency; or
(2) from the unit, local government, or agency to the Department.
(b) An employee may not be transferred or exchanged under this section for more than 90 days at a time.
(c) The approval of the Secretary of Budget and Management is not required for an agreement under this section.
(d) For purposes of Division I of the State Personnel and Pensions Article, an employee transferred or exchanged under this section is considered to continue in the position from which the employee is temporarily transferred or exchanged.
(e) The Secretary may agree to reimburse, or collect reimbursement from, another unit of the State government, a local government, a regional or local planning agency, or a federal agency for a transfer or exchange of employees under this section.
In the exercise of its planning functions, the Department shall cooperate with any unit of the State or federal government in planning for civil defense.
(a) There is within the Department a program for certification of effective county agricultural land preservation programs.
(b) A county may apply to the Department and the Maryland Agricultural Land Preservation Foundation for certification under this section only if the county agricultural preservation advisory board and the governing body of the county both:
(1) approve the program established at the county level as being an effective approach to agricultural land preservation; and
(2) approve the county’s application for certification.
(c) (1) A county may apply for certification under this section if the county has established programs to encourage participation of farmers in agricultural land preservation efforts at the county level, including purchase of development rights or financial enhancements related to purchase of development rights, outside of the State Agricultural Land Preservation Foundation.
(2) County programs shall include:
(i) any program that the Department and the Foundation:
1. determine is necessary for an effective county agricultural land preservation program; and
2. require by regulation; and
(ii) beginning in fiscal year 2009, a priority preservation area element established in accordance with § 2–518 of the Agriculture Article.
(d) (1) To apply for certification under this section, a county shall file with the Maryland Agricultural Land Preservation Foundation and the Department an application in the form that the Department and the Foundation jointly require by regulation.
(2) Within 60 days after notification of an application for certification:
(i) the Foundation shall advise the Department as to whether it approves the application; and
(ii) the Department shall notify the county as to whether the county’s application for certification has been approved.
(e) The Department and the Foundation may not certify a county under this section unless the Department and the Foundation determine that:
(1) the proposed county program for the purchase of development rights or financial enhancements related to the purchase of development rights is likely to be successful;
(2) the county has committed to spend additional local funds for the purchase of development rights or enhancements related to the purchase of development rights in an amount equal to or exceeding the amount of the additional funds that will be available as a result of certification; and
(3) beginning in fiscal year 2009:
(i) the county’s priority preservation area has been established in accordance with § 2–518 of the Agriculture Article; and
(ii) the county’s priority preservation area element in the comprehensive plan meets the requirements set forth in subsection (f) of this section.
(f) The Department and the Foundation may not certify a priority preservation area of a county under this section unless the Department and the Foundation agree that the county’s comprehensive plan:
(1) establishes appropriate goals for the amount and types of agricultural resource land to be preserved in the priority preservation area;
(2) describes:
(i) the county’s strategy to support normal agricultural and forestry activities in conjunction with the amount of development permitted in the priority preservation area; and
(ii) the ordinances, regulations, and procedures the county is using in the priority preservation area to support the ability of working farms to engage in normal agricultural and forestry activities;
(3) includes maps showing the county’s priority preservation area;
(4) describes the priority preservation area in the context of the county’s growth management plans;
(5) describes the way in which preservation goals will be accomplished in the priority preservation area, including the county’s strategy to:
(i) protect land from development through zoning;
(ii) preserve the desired amount of land with permanent easements; and
(iii) maintain a rural environment capable of supporting normal agricultural and forestry activities;
(6) includes an evaluation of the ability of the county’s zoning and other land use management practices to:
(i) limit the impact of subdivision and development;
(ii) allow time for easement purchase; and
(iii) achieve the Foundation’s goals before development excessively compromises the agricultural and forest resource land;
(7) identifies shortcomings in the abilities of the county’s zoning and land management practices and identifies current or future actions to correct the shortcomings; and
(8) describes the methods the county will use to concentrate preservation funds and other supporting efforts in the priority preservation area to achieve the goals of the Foundation and the county’s acreage preservation goal.
(g) In certifying a county’s priority preservation area, the Department and the Foundation shall ensure that:
(1) the county has included all the information required by subsection (f) of this section in the county’s comprehensive plan; and
(2) the size of the county’s priority preservation area is appropriate in relation to the county’s acreage preservation goal.
(h) (1) A county that has been certified under this section as having established an effective county agricultural land preservation program is eligible for:
(i) the additional funds available to certified counties under § 2–508.1 of the Agriculture Article and § 13–306 of the Tax – Property Article; and
(ii) as of July 1, 2008, funds provided for the Maryland Agricultural Land Preservation Foundation over and above the funding the Foundation receives in accordance with § 2–508.1 of the Agriculture Article and §§ 13–209 and 13–306 of the Tax – Property Article.
(2) A county that has been certified under this section may use the additional funds available as a result of certification:
(i) for the purposes stated under § 2–508.1 of the Agriculture Article and § 13–306 of the Tax – Property Article;
(ii) to purchase easements in its priority preservation area;
(iii) for a Critical Farms Program approved by the Foundation;
(iv) for an installment purchase agreement program approved by the Foundation; or
(v) for the Next Generation Farmland Acquisition Program approved by the Foundation.
(i) (1) Except as provided in paragraph (3) of this subsection, a certification or recertification under this section is effective for 3 years and the decision by the Department and the Foundation as to certification or recertification is final with no right to appeal.
(2) At the request of the county, the Department and the Foundation shall recertify under this section a county agricultural land preservation program if:
(i) the county has maintained a successful program of purchase of development rights or financial enhancements related to purchase of development rights during the period of certification;
(ii) conditions in the county priority preservation area remain in accordance with the requirements of § 2–518 of the Agriculture Article;
(iii) the county provides an update on the method, evaluation, shortcomings, and future actions that the county is using or will use to achieve preservation goals, as required under subsection (f)(6) through (8) of this section; and
(iv) the update demonstrates significant progress toward achievement of preservation goals in the priority preservation area.
(3) (i) If the Department and the Foundation determine that a program is consistently effective in the achievement of preservation goals, a program recertification under this section is effective for 5 years.
(ii) The Department and the Foundation shall review a county program recertification under this paragraph when a county:
1. revises the boundary of a priority preservation area;
2. subtracts land from a priority preservation area; or
3. adopts a comprehensive rezoning policy that increases the allowable nonagricultural land uses, density, or intensity of development within a priority preservation area.
(iii) The Department and the Foundation may revoke a county program recertification under this paragraph on a finding that a county action under subparagraph (ii) of this paragraph is inconsistent with the requirements of § 2–518 of the Agriculture Article.
(j) The Department and the Foundation shall jointly adopt regulations for administration of the certification program.
(k) In accordance with the requirements of § 2–1257 of the State Government Article, the Department and the Foundation shall report on the certification program on or before January 15 of each year to:
(1) the Governor;
(2) the Secretary of Agriculture and the Secretary of Planning;
(3) the Senate Budget and Taxation Committee and the Senate Committee on Education, Energy, and the Environment; and
(4) the House Appropriations Committee, the House Environment and Transportation Committee, and the House Committee on Ways and Means.
(a) The Department is the central depository for all land use plans and all amendments and revisions to land use plans adopted by:
(1) a unit of the State government;
(2) a unit of a regional government;
(3) a unit of a local government; or
(4) an interstate agency.
(b) Each unit of government or agency listed in subsection (a) of this section shall submit to the Department a current version of all adopted land use plans and all adopted amendments and revisions to land use plans.
(c) The Department shall post on its website a copy of all adopted land use plans and all adopted amendments and revisions to land use plans that are submitted to the Department under this section in an electronic format.
(a) The Department shall be a repository for information about State–owned real property.
(b) The Department shall correlate information concerning real property owned by the State.
(c) (1) The Department shall maintain a current, updated list of real property owned by the State.
(2) The list shall include pertinent details concerning size, facilities, and value.
(3) A copy of the list and any related information shall be provided to any State agency and the General Assembly upon request.
(a) To the extent relevant to State planning, the Department shall study:
(1) the resources of the State;
(2) existing and emerging problems of agriculture, commerce, housing, industry, local government, population, public service, and transportation; and
(3) related matters affecting the development of the State.
(b) In making the studies, the Department shall seek the cooperation of appropriate:
(1) governmental units;
(2) regional planning commissions;
(3) public or private educational institutions;
(4) public or private research organizations;
(5) civic groups; and
(6) interested persons.
The Department shall provide information to State and local officials and to the public to stimulate public interest and participation in the orderly, integrated development of the State and to foster public awareness and understanding of:
(1) the objectives of the State Development Plan; and
(2) the function of State, regional, and local planning.
Upon request of the General Assembly, the Department shall provide information to and cooperate with the General Assembly and its committees in connection with the studies made by the Department relevant to State planning.
The Department shall annually publish on the Maryland InfoPortal information concerning State financial and technical assistance offered through State assistance programs.
In this subtitle, “Plan” means the State Development Plan.
(a) The Department shall prepare and from time to time revise a plan or plans for development of the State. The plan or plans collectively shall be known as the State Development Plan.
(b) The Department shall prepare the Plan to promote the general welfare and prosperity of the people of the State through the coordinated development of the State.
(c) The Department shall base the Plan on studies of governmental, economic, physical, and social conditions and trends.
In the preparation and revision of the Plan or any part of it, the Department shall:
(1) seek comments from and consult with the local governments of the areas that are affected by the Plan; and
(2) seek the cooperation and advice of appropriate:
(i) governmental units;
(ii) regional planning commissions;
(iii) public or private educational institutions;
(iv) public or private research organizations;
(v) civic groups; and
(vi) interested persons.
The Plan shall embody the policy recommendations of the Department regarding the economic and physical development of the State.
(a) On completion, the Secretary shall send to the Governor the Plan, any substantial part of the Plan, or any revision to the Plan.
(b) The Governor shall file with the Secretary of State the Plan, part of the Plan, or revision to the Plan, together with any comments made by the Governor, and, in that event:
(1) the Department shall make copies of the material filed available for general distribution or sale; and
(2) the Governor shall send copies of the material filed:
(i) to the head of each unit of the State government; and
(ii) subject to § 2-1257 of the State Government Article, to the General Assembly.
(a) The Plan may not be used to deny:
(1) a State–issued permit; or
(2) State funding:
(i) mandated by statute or regulation; or
(ii) provided for in the State operating budget or capital budget.
(b) The Plan does not:
(1) supersede any State statute or regulation;
(2) supersede any local ordinance or regulation;
(3) affect the delegation of planning and zoning powers granted by the State to local jurisdictions under Division II, Title 9, Subtitles 2 or 3, Title 10, or Title 11 of the Local Government Article and Division I of the Land Use Article; or
(4) overturn or prevent a decision of a local jurisdiction to fund a project.
(c) The Plan may not require a local government to change or alter a local ordinance, regulation, or comprehensive plan.
The Plan shall contain a statement of the objectives, standards, and principles sought to be expressed in the Plan.
The Plan shall contain a comprehensive analysis and evaluation of the capital plans and programs of each unit of the State government.
The Plan shall contain a review and analysis of:
(1) all federal grants, loans, or services available to the State;
(2) all State grants to local governments; and
(3) the impact of any existing or proposed federal program on the State.
(a) The Plan shall identify all areas designated by the Department as areas of critical State concern.
(b) Each county shall recommend to the Department those areas in the county that should be designated as areas of critical State concern.
(c) Before designating an area as an area of critical State concern, the Secretary shall consult with and consider any recommendations submitted by affected political subdivisions.
(d) The Secretary may adopt regulations for the political subdivisions to use in recommending areas to be designated as areas of critical State concern.
(e) The Department shall:
(1) furnish to the governing body of each affected political subdivision the full text of each proposed designation of an area as an area of critical State concern;
(2) give each political subdivision affected by a proposed designation at least 45 days to review and comment on the proposed designation; and
(3) publish its designation of areas of critical State concern, together with all written comments received from political subdivisions regarding the areas designated.
The Plan shall contain recommendations for the most desirable general pattern of land use in the State. The recommendations shall be based on the best available information concerning:
(1) environmental and natural factors, including climate, soil and underground conditions, topography, and water sources and bodies of water;
(2) present and prospective economic bases of the State;
(3) water and sewerage facilities;
(4) trends of industrial, population, or other developments;
(5) habits and standards of life of the people of the State; and
(6) the relation of land use in the State to land use in adjoining areas.
The Plan shall contain recommendations concerning the need for and the proposed general location of major public works and private facilities, including utilities, flood control works, water reservoirs, pollution control facilities, and military or defense installations, that are of State, as opposed to purely local or regional, concern because of:
(1) their function, size, extent, or legal status;
(2) the fact that their authorization, location, or construction is legally under the jurisdiction of a unit of the State government; or
(3) any other reason that makes inclusion in the Plan appropriate.
The Plan shall recommend a major circulation pattern for the State, including major transportation routes and major terminals that should be used for movement within the State or for movement from and to adjoining areas.
The Plan shall contain the recommendations of the Secretary concerning any current or impending problem that may affect the State as a whole.
The State Economic Growth, Resource Protection, and Planning Policy consists of the following planning principles for advancing sustainable growth in the State:
(1) land: optimize productivity of working landscapes, including farms and forests, and fisheries, and prioritize development within population centers that are in proximity to existing infrastructure and facilities;
(2) transportation: prioritize transportation networks that create energy efficient, affordable, and reliable access to jobs, housing, and services;
(3) housing: enable a mix of quality housing types and affordability options to accommodate all who want to live in the State;
(4) economy: allow for adaptive reuse, mixed–use, and context appropriate new development that responds to changing markets and innovations;
(5) equity: engage all sectors of the community in plan development to ensure diverse voices are heard and the needs of underserved populations are prioritized;
(6) resilience: integrate resiliency measures that will minimize the impacts of rapid and unexpected natural– and human–caused threats on communities;
(7) place: provide for public spaces that encourage social interaction and value cultural, historical, and natural resources; and
(8) ecology: protect and restore sensitive ecological systems and conserve natural resources, including forests, agricultural areas, and waterways.
(a) (1) Except as provided in paragraph (2) of this subsection, with respect to a State public works, transportation, or major capital improvement project funded through State or federal funds, the State may not provide State funding for the project if the project is not consistent with:
(i) the State Economic Growth, Resource Protection, and Planning Policy established in § 5–7A–01 of this subtitle; or
(ii) the local plan of the jurisdiction in which the project is located.
(2) The State may provide State funding for a State public works, transportation, or major capital improvement project funded through State or federal funds which is not consistent with the policy or plan under paragraph (1) of this subsection if the State determines that extraordinary circumstances exist that warrant proceeding with the project and that no reasonably feasible alternative exists.
(b) (1) Except as provided in paragraph (2) of this subsection with respect to a local construction project involving the use of State funds, grants, loans, loan guaranties, or insurance, a local jurisdiction may not approve or construct the project unless the project is consistent with the local plan.
(2) A local jurisdiction may approve and construct a local construction project which is inconsistent with the local plan under paragraph (1) of this subsection if the local jurisdiction determines that extraordinary circumstances exist that warrant proceeding with the project and that no reasonably feasible alternative exists.
(c) By December 1, 1992 the Governor shall establish procedures for review of State projects under subsection (a) of this section, and each local jurisdiction shall establish procedures for the review of local projects under subsection (b) of this section, to:
(1) ensure that the projects are consistent with their respective policy and plans; and
(2) evaluate extraordinary circumstances under subsections (a)(2) and (b)(2) of this section, respectively.
The State has a goal of preserving a total of 1,030,000 acres of productive agricultural land by 2030 through:
(1) the Maryland Agricultural Land Preservation Foundation;
(2) the Maryland GreenPrint Program;
(3) the Rural Legacy Program;
(4) the Maryland Environmental Trust;
(5) the Next Generation Farmland Acquisition Program; and
(6) local land preservation programs.
(a) In this subtitle the following words have the meanings indicated.
(b) “Funding” includes any form of assurance, guarantee, grant payment, credit, tax credit, or other assistance, including a loan, loan guarantee, or reduction in the principal obligation of, or rate of interest payable on, a loan or a portion of a loan.
(c) (1) “Growth–related project” means only the items set forth below:
(i) any major capital project as defined in § 2–103.1(a)(4) of the Transportation Article, except existing transportation facilities projects as defined in § 4–101(h) of the Transportation Article, project planning as defined in § 8–610(i) of the Transportation Article, or initial project planning as defined in § 8–610(e) of the Transportation Article;
(ii) funding by the Department of Housing and Community Development for:
1. construction or purchase of newly constructed single family homes or purchase of loans for newly constructed single family homes under Title 4, Subtitle 2, Subtitle 3, or Subtitle 8 of the Housing and Community Development Article;
2. acquisition or construction of newly constructed multifamily rental housing under Title 4, Subtitle 2, Subtitle 4, or Subtitle 15 of the Housing and Community Development Article; or
3. State–funded neighborhood revitalization projects under Title 6 of the Housing and Community Development Article;
(iii) funding by the Department of Commerce under any of the following:
1. the Maryland Industrial Development Financing Authority, authorized under Title 5, Subtitle 4 of the Economic Development Article;
2. the Maryland Small Business Development Financing Authority, authorized under Title 5, Subtitle 5 of the Economic Development Article;
3. the former Maryland Energy Financing Act, authorized under former Article 83A, Title 6, Subtitle 4 of the Code, succeeded by the Maryland Industrial Development Financing Authority;
4. the Economic Development Opportunities Program Fund, authorized under § 7–314 of this article;
5. the former Maryland Competitive Advantage Financing Fund, authorized under former Article 83A, Title 5, Subtitle 13 of the Code; and
6. the Maryland Economic Development Assistance Authority and Fund, authorized under Title 5, Subtitle 3 of the Economic Development Article;
(iv) funding by the Department of the Environment, for any project under:
1. §§ 9–1601 through 9–1605 (Water Quality Revolving Loan Fund) of the Environment Article except for funding nonpoint source pollution projects;
2. §§ 9–420 through 9–426 (Water Supply Financial Assistance Program) of the Environment Article; and
3. the supplemental assistance program authorized under Title 9, Subtitle 3, Part VI of the Environment Article; and
(v) except as provided in paragraph (2) of this subsection, procurement or funding of projects by the Department of General Services for:
1. leases of property by the State governed by §§ 4–318 through 4–321 of this article; and
2. land acquisition governed by §§ 4–411 through 4–416 of this article.
(2) “Growth–related project” does not include:
(i) projects by the Department of General Services for maintenance, repair, additions, or renovations to existing facilities, acquisition of land for telecommunications towers, parks, conservation and open space, and acquisition of agricultural, conservation, and historic easements;
(ii) funding by the Department of Housing and Community Development for any project financed with federal money used to purchase or rehabilitate existing single or multifamily housing or project financed with the proceeds of revenue bonds issued by the Community Development Administration if:
1. the Secretary of Housing and Community Development determines that application of this section:
A. conflicts with any provision of federal or State law applicable to the issuance or tax–exempt status of the bonds;
B. conflicts with any provision of any trust agreement between the Community Development Administration and any trustee; or
C. would otherwise prohibit financing of an existing project, or financing provided to cure or prevent any default under existing financing; or
2. the revenue bonds are issued under a transfer of the Maryland State ceiling to the Administration by a county under Title 13, Subtitle 8 of the Financial Institutions Article;
(iii) acquisition of land by the Department of Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article; or
(iv) any other project, funding, or other State assistance not listed under paragraph (1) of this subsection.
(d) “Limited peripheral development” means development that is contiguous to an existing community and does not increase the size of the existing community or village by more than 10% of the existing number of dwelling units.
(e) “Locally designated growth area” means an area determined by the county to be suitable for development in compliance with Title 1, Subtitle 4 or Title 3 of the Land Use Article.
(f) “Rural village” means a rural village, village center, or other unincorporated area that is primarily residential, including an area with historic qualities, that is located in an otherwise rural or agricultural area and for which new growth, if any, would derive primarily from in–fill development or limited peripheral expansion.
(g) “Technical assistance” means the provision of advice, consultation, training, information, or design, or architectural, organizational, or management assistance.
The following areas shall be considered priority funding areas under this subtitle:
(1) a municipal corporation, including Baltimore City, except that:
(i) those areas annexed by a municipal corporation after January 1, 1997 but before October 1, 2006 shall satisfy requirements relating to density and service by water and sewer set forth in § 5–7B–03 of this subtitle; and
(ii) those areas annexed by a municipal corporation after September 30, 2006, shall satisfy all of the requirements set forth in § 5–7B–03 of this subtitle;
(2) an enterprise zone as designated under Title 5, Subtitle 7 of the Economic Development Article, or by the United States government;
(3) a certified heritage area as defined in §§ 13–1101 and 13–1111 of the Financial Institutions Article that is located within a locally designated growth area;
(4) those areas of the State located between Interstate Highway 495 and the District of Columbia;
(5) those areas of the State located between Interstate Highway 695 and Baltimore City; and
(6) an area designated by the governing body of a county or municipal corporation under § 5–7B–03 of this subtitle.
(a) (1) The governing body of a county or of a municipal corporation may designate priority funding areas as provided in this section.
(2) The governing bodies of two or more adjoining counties, two or more municipal corporations, or any combination of adjoining counties and municipal corporations may designate, as provided in this section and in accordance with the regulations adopted by the Department of Planning, a priority funding area that combines two or more contiguous areas located in each of the local governments.
(b) (1) An area zoned or, if applicable, classified by January 1, 1997 principally for industrial use may be designated as a priority funding area.
(2) An area zoned or, if applicable, classified after January 1, 1997, as industrial may be designated as a priority funding area if the area is served by a public or community sewer system.
(c) (1) An area where the principal uses of the area are for employment may be designated as a priority funding area if:
(i) the area is served by public or community sewer systems; or
(ii) public or community sewer systems are planned in the approved 10-year water and sewer plan.
(2) An area zoned or, if applicable, classified after January 1, 1997 as industrial, or where the principal uses are for employment, in addition to meeting the criteria set forth in paragraph (1) of this subsection, shall be located within a locally designated growth area.
(d) (1) A community in existence prior to January 1, 1997 that is within a locally designated growth area may be designated as a priority funding area if the community:
(i) is served by a public or community sewer system and in that part of the community designated by the local government for residential use or development:
1. there is an average density of at least 2.0 units per acre; or
2. if a portion of the community is undeveloped, the permitted average density is not less than 2.0 units per acre; or
(ii) except as provided in paragraph (2) of this subsection, is served by a public or community water system and in that part of the community designated by the local government for residential use or development there is an average density of at least 2.0 units per acre.
(2) (i) The provisions of paragraph (1)(ii) of this subsection do not apply to mobile home parks or communities with less than 10 units.
(ii) Funding for a growth-related project under paragraph (1)(ii) of this subsection is to be provided only if the project serves to maintain the character of the community and does not serve to increase the growth capacity of the community except for limited peripheral or in-fill development.
(3) (i) If an existing community receives a public or community sewer system, an area beyond the periphery of the developed portion of the existing community may be designated as a priority funding area if the development of the area beyond the periphery:
1. has a permitted average density of at least 3.5 units per acre; and
2. the area is served by a public or community sewer system.
(ii) The Department of the Environment may provide funding for a sewer system in an existing community beyond the periphery of the developed portion of the community if the expansion has a permitted average density of at least 3.5 units per acre.
(e) An area, other than an existing community under subsection (d) of this section, may be designated as a priority funding area if:
(1) the area:
(i) is within a locally designated growth area of the local government; and
(ii) is planned to be served under the approved 10-year water and sewer plan;
(2) the designation represents a long-term development policy for promoting an orderly expansion of growth and an efficient use of land and public services; and
(3) in that part of the area designated by the local government for residential use or development, there is permitted an average density of not less than 3.5 units per acre.
(f) (1) A rural village may be designated as a priority funding area under this section if:
(i) the village is designated in the county comprehensive plan as of July 1, 1998; and
(ii) the boundary of the priority funding area is the periphery of the developed portion of the village as of July 1, 1998.
(2) Funding for a growth-related project under this subtitle is to be provided only if the project serves to maintain the character of the community and does not serve to increase the growth capacity of the village except for limited peripheral or in-fill development.
(g) The designation by a county, municipal corporation, or multiple local governments as provided in subsection (a)(2) of this section, of a priority funding area under this section shall be based on:
(1) an analysis of the capacity of land areas available for development, including in-fill and redevelopment; and
(2) an analysis of the land area needed to satisfy demand for development at densities consistent with the master plan.
(h) For the purposes of this section, average density shall be calculated based on the total acreage of all parcels in the area for which the principal permitted use is residential, excluding land:
(1) (i) dedicated for public use by easement in perpetuity or fee acquisition; or
(ii) dedicated recreational use;
(2) subject to an agricultural easement under § 2-508 of the Agriculture Article;
(3) subject to an agricultural easement under a county agricultural land preservation program certified under § 5-408 of this title;
(4) used for cemetery purposes;
(5) identified by a local government as:
(i) 1. streams and their buffers;
2. 100-year flood plains;
3. habitats of threatened and endangered species; and
4. steep slopes; and
(ii) on which development is prohibited by local law or ordinance; or
(6) identified by a local government as delineated nontidal wetlands on which development is prohibited by State or local law or ordinance.
(a) Except as otherwise provided in this subtitle, beginning October 1, 1998, the State may not provide funding for a growth-related project if the project is not located within a priority funding area.
(b) In a priority funding area established under § 5-7B-03(c) or (e) of this subtitle in which water and sewer service is planned, a commitment for funding for a growth-related project shall be contingent upon nonstate funding for planned water and sewer service moving forward in advance of or concurrent with the State funding.
(c) (1) A growth-related project may not be funded by the State in a municipal corporation exercising zoning authority unless the municipal corporation has first adopted residential development standards relating to public school adequacy. These standards shall be substantially similar to:
(i) the State rated capacity standards established by the public school interagency committee on school construction; or
(ii) the school capacity standards established in its county’s adequate public facilities ordinance.
(2) The requirement contained in paragraph (1) of this subsection does not apply:
(i) in a municipal corporation exercising zoning authority located in a county in which no adequate school capacity standards have been established by the county governing body; or
(ii) to a residential development project where an impact fee has been paid or other monetary or nonmonetary contributions have been provided that defray the local cost of school construction attributable to the project.
(3) After October 1, 1997, prior to establishing or changing the school capacity standards in a county’s adequate public facilities ordinance, the county shall confer with the governing bodies of the municipal corporations that exercise zoning authority located within the county.
(4) For planning purposes, each county board of education shall annually provide to the county and each municipal corporation exercising zoning authority in the county:
(i) a list of projected student enrollments for a 5-year period for each school serving students in or near that municipal corporation; and
(ii) information relating to the student capacity of each school.
(a) (1) The State may provide funding for a growth–related project not in a priority funding area if:
(i) the Board of Public Works determines that extraordinary circumstances exist in accordance with the requirements of paragraph (2) of this subsection; or
(ii) the Board of Public Works approves the project as a transportation project that meets the requirements of paragraph (3) of this subsection.
(2) In order to determine that extraordinary circumstances exist under paragraph (1) of this subsection, the Board shall determine by a majority vote that:
(i) the failure to fund the project in question creates an extreme inequity, hardship, or disadvantage that clearly outweighs the benefits from locating a project in a priority funding area; and
(ii) there is no reasonable alternative for the project in a priority funding area in another location within the county or an adjacent county.
(3) The Board of Public Works may approve a transportation project under paragraph (1)(ii) of this subsection if the transportation project:
(i) maintains the existing transportation system, if the Department of Transportation and the Department of Planning determine the project does not serve to significantly increase highway capacity;
(ii) serves to connect priority funding areas, if:
1. the Department of Transportation and the Department of Planning determine that adequate access control or other measures are in place to:
A. prevent development that is inconsistent with § 5–7A–01 of this title; and
B. maintain the viability of the project while concomitantly constraining development which potentially detracts from main street business areas; and
2. the Department of Transportation and the Department of Planning have first determined whether alternative transportation modes, such as mass transit and transportation demand management, provide a reasonable alternative to the project and that no reasonable alternative exists;
(iii) has the sole purpose of providing control of access by the Department of Transportation along an existing highway corridor; or
(iv) due to its operational or physical characteristics, must be located away from other development.
(b) (1) A request for approval by the Board under subsection (a) of this section may be made at the request of the governing body of the local jurisdiction in which the project is located or the Secretary with approval authority over the project.
(2) When making a request to the Board of Public Works, the applicant shall:
(i) identify the extraordinary circumstances that require State funds for the project; and
(ii) demonstrate that no feasible alternatives exist to making an exception to the requirements of this subtitle.
(3) The Board of Public Works, at its discretion, may require remedial actions to mitigate any negative impacts of the proposed project.
(c) (1) When a request is made to the Board of Public Works for an exception under this section, the Board of Public Works may request from the Department of Planning an advisory opinion on the request for the exception.
(2) Upon receiving a request for an advisory opinion under this subsection, the Department, if requested by a member of the public, shall hold a public meeting to gather information relevant to the advisory opinion.
(a) The State may provide funding for a growth–related project not in a priority funding area without receiving approval from the Board of Public Works as provided under § 5–7B–05 of this subtitle for:
(1) a project that is required to protect public health or safety;
(2) a project involving federal funds, to the extent compliance with this subtitle would conflict or be inconsistent with federal law;
(3) a growth–related project related to a commercial or industrial activity which, due to its operational or physical characteristics, shall be located away from other development, including:
(i) a natural resource based industry;
(ii) an industry relating to:
1. agricultural operations, as defined in § 7–101 of the Labor and Employment Article;
2. forestry activities; or
3. mineral extraction;
(iii) an industry that is proximate to:
1. an airport facility;
2. a port facility;
3. a railroad facility;
4. a transit facility; or
5. a major highway interchange; or
(iv) a tourism facility or museum that is required to be located away from other development due to necessary proximity to specific historic, natural, or cultural resources; or
(4) a growth–related project involving funding for a project under:
(i) § 7–314 of this article;
(ii) Title 5, Subtitle 3, Subtitle 4, or Subtitle 5 of the Economic Development Article; or
(iii) Title 6, Subtitle 2 or Subtitle 3 of the Housing and Community Development Article.
(b) A procedure for notification, review, and comment on exceptions proposed under this section shall be established jointly by the applicable State agency and the Department of Planning.
(a) It shall be the policy of the State that the emphasis of funding for public school construction projects shall be to target the rehabilitation of existing schools to ensure that facilities in established neighborhoods are of equal quality to new schools.
(b) This section may not be construed to prohibit the provision of school construction funding outside a priority funding area.
(c) The Interagency Commission on School Construction shall review and approve school funding projects.
(a) To be eligible for funding for growth-related projects, a local government or two or more county governments shall certify to the Department of Planning any area designated by the local government or county governments as a priority funding area under § 5-7B-03 of this subtitle, which shall be consistent with the local comprehensive plan and the criteria set forth in § 5-7B-03 of this subtitle.
(b) Prior to certification of a priority funding area or areas, the local government or county governments may submit the proposed priority funding areas and any relevant information to the Department of Planning for:
(1) technical assistance, review, and comment; and
(2) the opportunity for public review.
(c) Upon certification of a priority funding area, the local government or county governments shall provide to the Department of Planning all information necessary to demonstrate the precise location of the area, including a map of the area showing planning and zoning characteristics, and existing and planned water and sewer services as appropriate.
(d) The Department of Planning, as appropriate, shall provide to each State agency that funds growth-related projects copies of maps illustrating:
(1) priority funding areas certified by the local government or county governments; and
(2) any comments by the Department of Planning on the areas certified.
(e) Prior to funding a growth-related project, the State funding agency shall obtain from the affected local government or county governments a written statement that the proposed growth-related project is located within a certified priority funding area.
(a) (1) In this section the following words have the meanings indicated.
(2) “Infill development” means new development in a priority funding area on vacant, bypassed, and underutilized lands within existing developed areas.
(3) “Smart neighborhood development” means a comprehensively planned, compact mixed use development within a priority funding area that integrates residential, commercial, open space, and public uses.
(b) The Department of Planning shall:
(1) establish a process for the review of projects by the appropriate State agencies and the Department of Planning for compliance with this subtitle;
(2) provide to each State agency and unit of State government the location of priority funding areas; and
(3) make available to each county, and to the public for review, copies of maps illustrating:
(i) priority funding areas certified by the local governments; and
(ii) any comments by the Department of Planning on the areas certified.
(c) By October 1, 1998, the Department of Planning shall complete surveys of municipal, county, and State governments for infrastructure needs and shall maintain a list of needed projects that includes information relating to the financial capacity of the affected unit of government to undertake such projects.
(d) Repealed.
(e) The Department of Planning shall:
(1) draft model land–use codes for infill development and smart neighborhood development;
(2) draft guidelines to provide local governments with information on innovative planning and implementation techniques to encourage and facilitate infill development and smart neighborhood development;
(3) circulate the models and guidelines to other State agencies and departments; and
(4) work with local governments, State agencies, and departments to develop incentives to encourage the voluntary adoption and implementation by local governments of models and guidelines implementing the intent of the models and guidelines required to be developed by the Department of Planning under this section.
(f) Each State agency subject to this subtitle shall report annually to the Department of Planning on the implementation of this subtitle in a form approved by the Department of Planning.
(a) This section may not be construed to create a private cause of action for any person or local government.
(b) A decision to fund a project or not to fund a project as required under this subtitle shall not be subject to Title 10, Subtitle 2 (Administrative Procedure Act - Contested Cases) of the State Government Article.
(c) This subtitle may not be construed to prevent an agency from providing technical assistance in an area that is not a priority funding area.
(a) In this subtitle the following words have the meanings indicated.
(b) “Commission” means the Patuxent River Commission.
(c) “Plan” means:
(1) the Patuxent River Policy Plan that has been approved by the General Assembly; and
(2) all amendments to that Plan that are approved under this subtitle.
The Plan shall be used as a policy guide by local jurisdictions and units of the State government in carrying out their action and regulatory programs in the Patuxent River Watershed.
(a) (1) The Department has primary responsibility for preparing proposed amendments to the Plan.
(2) For the purpose of updating the Plan, the Department and the Commission shall together consider draft amendments to the Plan at least once every 5 years starting with October 1, 1995.
(3) In preparing a proposed amendment, the Department shall consult with local jurisdictions and appropriate units of the State government, who shall:
(i) provide the Department with pertinent information, including information on implementation of the Plan; and
(ii) cooperate with and assist the Department in preparing the proposed amendment.
(b) Before the Department presents a proposed amendment to the Plan to local jurisdictions for their approval, the Commission shall:
(1) review and comment on the proposed amendment and work with the Department in making any modifications to the proposed amendment that the Commission considers necessary;
(2) distribute copies of the proposed amendment to the Governor, appropriate members of the General Assembly, the local jurisdictions entitled to voting representation on the Commission, other affected local jurisdictions, and appropriate units of the State government, for their information and comments; and
(3) conduct at least 1 public hearing on the proposed amendment.
(c) After a proposed amendment to the Plan has been acted on by the Commission, the Department may present the proposed amendment to the governing bodies of the local jurisdictions entitled to voting representation on the Commission, for their approval, by resolution. The Department shall include any comments made by the Commission.
(d) (1) If the governing bodies of 6 of the 8 local jurisdictions entitled to voting representation on the Commission approve the proposed amendment, the Department shall present the proposed amendment to the General Assembly. The Department shall include any comments made by the Commission or by the governing bodies.
(2) If the General Assembly, by joint resolution, approves the proposed amendment, the effective date of the amendment is immediate, unless otherwise specified in the amendment.
(a) After the General Assembly approves an amendment to the Plan, the Department shall:
(1) present copies of the approved amendment to the Governor and to each local jurisdiction entitled to voting representation on the Commission, for their information; and
(2) make copies of the amendment to the Plan available to the general public.
(b) The Department continuously shall review and evaluate information related to the Patuxent River and its watershed.
(c) The Department periodically shall make and assist local jurisdictions and units of the State government in making environmental assessments of:
(1) comprehensive planning programs, as they relate to the Patuxent River and its watershed; and
(2) major land use changes, major regulatory actions, and major rezonings whether proposed or implemented as they relate to the Patuxent River and its watershed.
Funds for the Patuxent River planning program described in this subtitle may include:
(1) money from the General Fund of the State;
(2) proceeds of special assessments, permit fees, or other fees;
(3) available special funds;
(4) local contributions; or
(5) federal grants.
The staff for the Patuxent River planning program described in this subtitle shall consist of or be supplemented by personnel from the local jurisdictions and State departments entitled to voting representation on the Commission.
(a) The Department shall review, evaluate, and report biennially to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly on the implementation of the Plan and the status of the Patuxent River and its watershed.
(b) The report shall include specific recommendations of the Department concerning implementation of the Plan and the bases for these recommendations.
(c) Before presenting its report to the General Assembly, the Department shall present the report to the Commission for its comments. The Department shall include any comments of the Commission when it presents the report to the General Assembly.
There is a Patuxent River Commission in the Department.
The existence of the Commission does not take away or limit the authority that any principal department of the State government had on July 1, 1980.
(a) The Commission consists of the following 36 voting members:
(1) 7 individuals, 1 from each of the following 7 counties, appointed by the Governor on the recommendation of the governing body of that county:
(i) Anne Arundel County;
(ii) Calvert County;
(iii) Charles County;
(iv) Howard County;
(v) Montgomery County;
(vi) Prince George’s County; and
(vii) St. Mary’s County;
(2) 1 individual representing the Washington Suburban Sanitary Commission, appointed by the Governor;
(3) 1 individual from each of the following regional planning agencies, appointed by the Governor:
(i) the Maryland–National Capital Park and Planning Commission, Montgomery County;
(ii) the Maryland–National Capital Park and Planning Commission, Prince George’s County; and
(iii) the Tri–County Council for Southern Maryland;
(4) 1 individual, representing a municipality in the watershed, appointed by the Governor on the recommendation of the corresponding governing body of that municipality;
(5) 1 individual representing a large federal facility in the watershed, appointed by the Governor;
(6) as far as possible, the following individuals appointed by the Governor with the advice and consent of the Senate, shall be selected to represent broad geographic, economic, and social interests within the watershed:
(i) 2 individuals representing farming interests;
(ii) 1 individual representing business interests;
(iii) 4 individuals representing environmental and citizen interests;
(iv) 2 individuals representing developer interests;
(v) 1 individual representing academic interests;
(vi) 2 individuals, 1 each, representing 2 soil conservation districts;
(vii) 1 individual representing the University of Maryland Cooperative Extension Service;
(viii) 1 individual representing watermen interests; and
(ix) 1 individual representing an organization or unit of local government engaged in watershed management and restoration;
(7) the Patuxent Riverkeeper; and
(8) as ex officio members:
(i) the Secretary of Agriculture or a designee;
(ii) the Secretary of the Environment or a designee;
(iii) the Secretary of Natural Resources or a designee;
(iv) the Secretary of Planning or a designee;
(v) the Secretary of Transportation or a designee;
(vi) the Chief of the Planning Division, U.S. Army Corps of Engineers, Baltimore District or a designee; and
(vii) the President of the University of Maryland Center for Environmental Science or a designee.
(b) (1) The term of a member appointed under subsection (a)(1) through (6) of this section is 4 years.
(2) At the end of a term, a member appointed under subsection (a)(1) through (6) of this section continues to serve until a successor is appointed and qualifies.
(3) A member who is appointed under subsection (a)(1) through (6) of this section after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(4) The terms of the members are staggered as required by the terms provided for members of the Commission on October 1, 1995.
(c) (1) The Commission may establish and abolish nonvoting memberships.
(2) A nonvoting member shall be appointed by the Commission for a term set by the Commission.
(a) From among its voting members, the Commission shall elect a Chairman.
(b) From among its voting members, the Commission may elect a vice chairman and any other officers it requires.
(c) The manner of election of officers and their terms of office shall be as the Commission determines.
In addition to its other powers and duties, the Commission shall:
(1) review the operation of units of State and local government that have responsibility for implementation of the Plan;
(2) provide a clearinghouse for information on the Patuxent River and its watershed;
(3) review and comment on plans and reports related to the Patuxent River and its watershed; and
(4) serve as the tributary strategy team for the Patuxent Watershed, coordinating the Patuxent tributary strategy with the Plan.
There is a Division of Historical and Cultural Programs in the Department of Planning.
The Division of Historical and Cultural Programs includes the Maryland Historical Trust.
(a) In this subtitle the following words have the meanings indicated.
(b) “Director” means the Director of the Maryland Historical Trust.
(c) “Financial assistance” means action by the State or a State unit to award grants, loans, loan guarantees, or insurance to a public or private entity to finance, wholly or partly, an undertaking.
(d) “Governmental unit” means an agency, authority, board, commission, council, office, or other unit or instrumentality of the government of the State or of a political subdivision of the State.
(e) (1) “Historic property” means a district, site, building, structure, monument, or object significant to:
(i) the prehistory or history of the State; or
(ii) the upland and underwater archaeology, architecture, engineering, or culture of the State.
(2) “Historic property” includes related artifacts, records, and remains.
(f) “Nonprofit organization” means a corporation, foundation, or other legal entity, no part of the net earnings of which inures to the benefit of a private shareholder or individual holding an interest in the entity.
(g) “Political subdivision” means a county or municipal corporation of the State.
(h) “Preservation” or “historic preservation” means the identification, evaluation, recordation, documentation, curation, acquisition, protection, management, rehabilitation, restoration, stabilization, maintenance, and reconstruction of a historic property.
(i) “State Historic Preservation Officer” means the individual who administers the State Historic Preservation Program under the National Historic Preservation Act of 1966, 16 U.S.C. §§ 470–470mm.
(j) “State unit” has the meaning stated in § 11–101 of the State Government Article.
(k) “Submerged” means beneath or substantially beneath water.
(l) “Terrestrial” means relating to land above the mean high tide line and above nontidal waters.
(m) “Trust” means the Maryland Historical Trust.
(n) “Undertaking” means a project that involves or may result in building construction, building alteration, or land disturbance.
The General Assembly finds that:
(1) historic properties significant to the State’s heritage are being lost or substantially altered, often inadvertently, with increasing frequency;
(2) historic properties are a vital part of our community life and development and cannot be replaced if lost or destroyed;
(3) it is in the public interest to preserve the State’s heritage and enrich present and future generations with the cultural, educational, inspirational, social, and economic benefits of the past;
(4) increasing knowledge of our historic resources, establishing better means of identifying and administering them, and encouraging their preservation will assist the economic and cultural growth of the State; and
(5) the State’s heritage has been enriched by accomplishments and contributions of the State’s private preservation organizations, and their continuing activities are in the public interest.
(a) (1) In this section the following words have the meanings indicated.
(2) “Affordable housing” means a project or undertaking that has received an allocation of federal low–income housing tax credits by the Department of Housing and Community Development.
(3) “Agricultural structure” means a certified historic structure that is used or was used as an agricultural facility or for purposes related to agriculture.
(4) (i) “Business entity” means:
1. a person conducting or operating a trade or business in the State; or
2. an organization operating in Maryland that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code.
(ii) “Business entity” includes the governing body of a condominium or cooperative housing corporation.
(5) “Certified heritage area” has the meaning stated in § 13–1101 of the Financial Institutions Article.
(6) (i) “Certified historic structure” means a structure that is located in the State and:
1. is listed in the National Register of Historic Places;
2. is designated as a historic property under local law and determined by the Director to be eligible for listing on the National Register of Historic Places;
3. A. is located in a historic district listed on the National Register of Historic Places or in a local historic district that the Director determines is eligible for listing on the National Register of Historic Places; and
B. is certified by the Director as contributing to the significance of the district;
4. is located in a certified heritage area and certified by the Maryland Heritage Areas Authority as contributing to the significance of the certified heritage area; or
5. A. is located on property that is owned by the Department of Natural Resources or one of its units;
B. is occupied by a person under an agreement with the Department of Natural Resources under which the person pays for rehabilitation of the structure as a condition of occupancy; and
C. meets one of the criteria listed under item 1, 2, 3, or 4 of this subparagraph or is eligible to be listed in the National Register of Historic Places as determined by the Director.
(ii) Except as provided in subparagraph (i)5 of this paragraph, “certified historic structure” does not include a structure that is owned by the State, a political subdivision of the State, or the federal government.
(7) “Certified rehabilitation” means a completed rehabilitation of a certified historic structure that the Director certifies is a substantial rehabilitation in conformance with the rehabilitation standards of the United States Secretary of the Interior.
(8) (i) “Commercial rehabilitation” means a rehabilitation of a structure other than a single–family, owner–occupied residence.
(ii) “Commercial rehabilitation” does not include a small commercial project.
(9) “Common elements” means:
(i) all of the condominium except the units, as defined in § 11–101 of the Real Property Article; or
(ii) all of the cooperative project except the units, as defined in § 5–6B–01 of the Corporations and Associations Article.
(10) “Condominium” has the meaning stated in § 11–101 of the Real Property Article.
(11) “Cooperative housing corporation” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article.
(12) “Cooperative project” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article.
(13) “Director” means the Director of the Maryland Historical Trust.
(14) “Financial assistance” means action by the State or a State unit to award grants, loans, loan guarantees, or insurance to a public or private entity to finance, wholly or partly, a project that involves or may result in building construction, building alteration, or land disturbance.
(15) “Governing body”, unless the context requires otherwise, has:
(i) with respect to a cooperative housing corporation, the meaning stated in § 5–6B–01 of the Corporations and Associations Article; or
(ii) with respect to a condominium, the meaning stated in § 11–101 of the Real Property Article.
(16) “High performance building” means a building that:
(i) meets or exceeds the current version of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) green building rating system gold rating; or
(ii) achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard approved by the Secretaries of Budget and Management and General Services under § 3–602.1 of this article.
(17) (i) “Historic property” means a district, site, building, structure, monument, or object significant to:
1. the prehistory or history of the State; or
2. the upland or underwater archeology, architecture, engineering, or culture of the State.
(ii) “Historic property” includes related artifacts, records, and remains.
(18) “Level 1 opportunity zone project” means a small commercial project or commercial rehabilitation completed by a qualified opportunity zone business if the following information is provided to the Director:
(i) the date of the qualified opportunity fund’s investment in the opportunity zone project and the amount of the investment;
(ii) the total project or business investment, including any leverage;
(iii) the address and census tract of the qualified opportunity zone business and the qualified opportunity fund;
(iv) the North American Industrial Classification System Code for the qualified opportunity zone business;
(v) an impact report, including both qualitative and quantitative data on the qualified opportunity fund’s investment in the opportunity zone project and its progress; and
(vi) any other information requested by the Director.
(19) “Level 2 opportunity zone project” means a small commercial project or commercial rehabilitation completed by a qualified opportunity zone business if:
(i) the requirements for a Level 1 opportunity zone project are met;
(ii) 1. accountability to residents of the communities in the qualified opportunity zone is maintained through their representation on any governing board or any advisory board of the qualified opportunity zone business; or
2. a community benefits agreement is negotiated and agreed to by community groups or strategic industry partnerships, as defined under § 11–701 of the Labor and Employment Article, in the opportunity zone and the qualified opportunity zone business that specifies a range of community benefits that the business agrees to provide as part of the development project; and
(iii) 1. for an opportunity zone project located entirely within a municipal corporation, the municipal corporation, by resolution or by letter, delivered to the Director by the municipal corporation’s authorized designee, approves the provision within the municipal corporation of the enhanced tax credits under this section; or
2. for an opportunity zone project that is not located entirely within a municipal corporation, the county, by resolution or by letter, delivered to the Director by the county’s authorized designee, approves the provision within the county of the enhanced tax credits under this section.
(20) “Local historic district” means a district that the governing body of a county or municipal corporation, or the Mayor and City Council of Baltimore, has designated under local law as historic.
(21) “National register structure” means a structure that is:
(i) listed on the National Register of Historic Places; or
(ii) located in a historic district listed on the National Register of Historic Places and certified by the Director as contributing to the significance of the district.
(22) “Opportunity zone project” means a certified rehabilitation within a geographical area designated and in effect as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code.
(23) “Political subdivision” means a county or municipal corporation of the State.
(24) “Post–World War II structure” means a certified historic structure that was built after December 31, 1944, but before January 1, 1970.
(25) “Qualified opportunity fund” has the meaning stated in § 6–1001 of the Economic Development Article.
(26) “Qualified opportunity zone” has the meaning stated in § 6–1001 of the Economic Development Article.
(27) “Qualified opportunity zone business” has the meaning stated in § 6–1001 of the Economic Development Article.
(28) “Qualified rehabilitation expenditure” means any amount that:
(i) is properly chargeable to a capital account;
(ii) is expended in the rehabilitation of a structure that by the end of the calendar year in which the certified rehabilitation is completed is a certified historic structure;
(iii) is expended in compliance with a plan of proposed rehabilitation that has been approved by the Director; and
(iv) is not funded, financed, or otherwise reimbursed by any:
1. State or local grant;
2. grant made from the proceeds of tax–exempt bonds issued by the State, a political subdivision of the State, or an instrumentality of the State or of a political subdivision of the State;
3. State tax credit other than the tax credit under this section; or
4. other financial assistance from the State or a political subdivision of the State, other than a loan that must be repaid at an interest rate that is greater than the interest rate on general obligation bonds issued by the State at the most recent bond sale prior to the time the loan is made.
(29) (i) “Single–family, owner–occupied residence” means a structure or a portion of a structure occupied by the owner and the owner’s immediate family as their primary or secondary residence.
(ii) “Single–family, owner–occupied residence” includes:
1. a residential unit in a cooperative project owned by or leased to a cooperative housing corporation and leased for exclusive occupancy to, and occupied by, a member of the corporation and the member’s immediate family under a proprietary lease;
2. a structure that is described under paragraph (6)(i)5 of this subsection; and
3. a small commercial project.
(30) “Small commercial project” means a rehabilitation of a structure if:
(i) the qualified rehabilitation expenditures do not exceed $500,000; and
(ii) 1. the structure is primarily used for commercial, income–producing purposes;
2. the structure:
A. is a residential unit in a consecutive series of similar residential units that are arranged in a row, side by side; and
B. is sold as part of a development project for exclusive occupancy to, and occupied by, the resident;
3. the structure is a targeted project; or
4. the structure is a condominium or cooperative project and the rehabilitation targets only the common elements of the condominium or cooperative project.
(31) “Sustainable Growth Subcabinet” means the Sustainable Growth Subcabinet established under Title 9, Subtitle 14 of the State Government Article.
(32) “State unit” has the meaning stated in § 11–101 of the State Government Article.
(33) “Substantial rehabilitation” means rehabilitation of a structure for which the qualified rehabilitation expenditures, during the 24–month period selected by the individual or business entity ending with or within the taxable year, exceed:
(i) for single–family, owner–occupied residential property, $5,000; or
(ii) for all other property, the greater of:
1. the adjusted basis of the structure; or
2. $25,000.
(34) “Targeted project” means a rehabilitation of:
(i) an agricultural structure; or
(ii) a post–World War II structure.
(b) (1) The Director, in consultation with the Sustainable Growth Subcabinet, shall adopt regulations to:
(i) establish procedures and standards for certifying historic structures and rehabilitations under this section;
(ii) for commercial rehabilitations, establish an application process for the award of initial credit certificates for historic revitalization tax credits consistent with the requirements of this subsection;
(iii) for commercial rehabilitations, establish criteria, consistent with the requirements of this subsection, for evaluating, comparing, and rating plans of proposed rehabilitation that have been determined by the Director to conform with the rehabilitation standards of the United States Secretary of the Interior;
(iv) for commercial rehabilitations, establish a competitive award process for the award of initial credit certificates for historic revitalization tax credits that favors the award of tax credits for rehabilitation projects that:
1. are consistent with and promote current growth and development policies and programs of the State;
2. are located in areas targeted by the State for additional revitalization and economic development opportunities due to the focusing of State resources and incentives;
3. are located in areas where the political subdivision has implemented regulatory streamlining or other development incentives that foster redevelopment and revitalization in priority funding areas, as defined in Title 5, Subtitle 7B of this article, and the appropriate local governing body or the planning board or commission, if designated by the local governing body, has certified to the Sustainable Growth Subcabinet those regulatory streamlining or other development incentives; and
4. include affordable and workforce housing options;
(v) for commercial rehabilitations, establish procedures to announce to the public the selection of a rehabilitation project for an award of an initial credit certificate not later than 60 days after the selection is made;
(vi) for commercial rehabilitations, determine whether the certified rehabilitation:
1. is a high performance building; or
2. qualifies as affordable housing or a Level 1 or Level 2 opportunity zone project;
(vii) for commercial rehabilitations, establish a required external marker or, at a minimum, an internal marker for the rehabilitation project that identifies that the rehabilitation was funded by historic revitalization tax credits;
(viii) as provided in paragraph (7) of this subsection, charge reasonable fees to certify historic structures and rehabilitations under this subtitle;
(ix) for commercial rehabilitations, require documentation that the applicant has ownership or site control of the structure in order to demonstrate the ability to meet the requirement to begin work as required under subsection (c)(3)(i)1 of this section;
(x) for commercial rehabilitations, provide a time limit for approval of the additional tax credit for high performance buildings, affordable housing, or Level 1 or Level 2 opportunity zone projects provided for in subsection (c)(1)(ii) of this section;
(xi) for commercial rehabilitations, establish procedures for the transfer of the tax credit under subsection (c)(6) of this section;
(xii) for small commercial projects:
1. establish conditions regarding the percentage of the structure that may be used for residential rental purposes if the structure is used for both commercial and residential rental purposes;
2. establish application procedures for governing bodies of condominiums and cooperative housing corporations and conditions regarding the rehabilitation of common elements of condominiums and cooperative projects;
3. specify criteria for determining whether a certified historic structure is:
A. an agricultural structure; or
B. a post–World War II structure; and
4. specify criteria and procedures for the issuance of initial credit certificates under subsection (e) of this section; and
(xiii) specify criteria and procedures for approval of enhanced benefits under this section for Level 1 and Level 2 opportunity zone projects.
(2) The Director may not certify that a rehabilitation is a certified rehabilitation eligible for a tax credit provided under this section unless the individual or business entity seeking certification states under oath the amount of the individual’s or business entity’s qualified rehabilitation expenditures.
(3) Each year, the Director may accept applications for approval of plans of proposed commercial rehabilitations and for the award of initial credit certificates for the fiscal year that begins July 1 of that year.
(4) (i) Except as provided in subsection (e) of this section, a small commercial project shall be treated as a single–family, owner–occupied residential property, including the limitation on the amount of the tax credit provided in subsection (c)(2)(ii) of this section.
(ii) A small commercial project is subject to the credit recapture provision in subsection (f) of this section.
(5) (i) For commercial rehabilitations, the Director may not accept an application for approval of plans of proposed rehabilitation if:
1. any substantial part of the proposed rehabilitation work has begun; or
2. the applicant for a commercial rehabilitation has previously submitted three or more applications for commercial rehabilitations with total proposed rehabilitations exceeding $500,000 in that year.
(ii) For commercial rehabilitations, the Director may accept an application for approval of plans of a proposed rehabilitation for which a substantial part of the proposed rehabilitation work has begun if the rehabilitation work has been approved under the federal historic tax credit.
(6) Except as provided in subsection (d)(3)(iii) of this section, not more than 60% of the total credit amounts under initial credit certificates issued for any fiscal year may be issued for projects in a single county or Baltimore City.
(7) (i) The Director shall adopt regulations to charge reasonable fees to certify historic structures and rehabilitations under this section which shall include:
1. a minimum fee for the second phase of the application process;
2. for a commercial rehabilitation project, a final fee that may not exceed 3% of the amount of the award of an initial credit certificate; and
3. for any other rehabilitation project, a final fee that may not exceed 3% of the amount of the credit for which the rehabilitation would be eligible based on the greater of the estimated or final qualified rehabilitation expenditures for the rehabilitation.
(ii) The Director shall set the level of the fees so that the projected proceeds from the fees will cover the costs to the Trust of administering the credit under this section and the federal historic tax credit.
(iii) If a fee charged for a commercial rehabilitation is not received by the Trust within 90 days after the Trust sends notice to the applicant that the fee is due, the Trust may not:
1. issue an initial credit certificate for the commercial rehabilitation; or
2. accept an application for a commercial rehabilitation from the applicant during the 3 fiscal years following the fiscal year in which the fee was not received.
(iv) The proceeds from the fees shall be deposited in a special fund, to be used only for the purposes of paying the costs of administering the credit under this section and the federal historic tax credit.
(v) Any unused balance of the fund at the end of each fiscal year shall be transferred to the Reserve Fund established under subsection (d) of this section and shall increase the amount of the initial credit certificates that the Trust may issue for the following fiscal year.
(8) If an initial credit certificate expires or is otherwise unclaimed as provided for under this section, the amount of the credit certificate shall:
(i) remain in the Reserve Fund established under subsection (d) of this section; and
(ii) increase the amount of the initial credit certificates that the Trust may issue for the following fiscal year.
(c) (1) (i) Except as otherwise provided in this section, for the taxable year in which a certified rehabilitation is completed, an individual or business entity may claim a tax credit in an amount equal to 20% of the individual’s or business entity’s qualified rehabilitation expenditures for the rehabilitation.
(ii) For a commercial rehabilitation, an individual or business entity may claim an additional tax credit in an amount equal to 5% of the individual’s or business entity’s qualified rehabilitation expenditures if the certified rehabilitation is a certified historic structure and:
1. is a high performance building; or
2. qualifies as affordable housing or a Level 1 opportunity zone project.
(iii) For a commercial rehabilitation, a business entity may claim an additional tax credit in an amount equal to 7.5% of the business entity’s qualified rehabilitation expenditures if the certified rehabilitation is a certified historic structure and qualifies as a Level 2 opportunity zone project.
(2) (i) For any commercial rehabilitation, the State tax credit allowed under this section may not exceed the lesser of:
1. A. $5,000,000 for any commercial rehabilitation other than a Level 1 or Level 2 opportunity zone project;
B. $5,250,000 for a Level 1 opportunity zone project; or
C. $5,500,000 for a Level 2 opportunity zone project; or
2. the maximum amount specified under the initial credit certificate issued for the rehabilitation.
(ii) For a rehabilitation other than a commercial rehabilitation, the State tax credit allowed under this section may not exceed:
1. $50,000 for a rehabilitation other than a Level 1 or Level 2 opportunity zone project;
2. $55,000 for a Level 1 opportunity zone project; or
3. $60,000 for a Level 2 opportunity zone project.
(iii) For the purposes of the limitation under subparagraph (i) of this paragraph, the following shall be treated as a single commercial rehabilitation:
1. the phased rehabilitation of the same structure or property; or
2. the separate rehabilitation of different components of the same structure or property.
(3) (i) Subject to subparagraph (ii) of this paragraph, the initial credit certificate for a proposed commercial rehabilitation shall expire and the credit under this section may not be claimed if:
1. within 18 months after the initial credit certificate was issued, the applicant has not notified the Trust, in writing, that the commercial rehabilitation has begun;
2. the commercial rehabilitation is not completed within 30 months after the initial credit certificate was issued; or
3. the applicant does not submit to the Trust a request for final certification of the commercial rehabilitation within 12 months after:
A. the 30–month expiration date under item 2 of this subparagraph; or
B. the date to which the Director postponed the expiration date under subparagraph (ii) of this paragraph.
(ii) For reasonable cause, the Director may postpone:
1. the 30–month expiration date under subparagraph (i)2 of this paragraph for an initial credit certificate for a commercial rehabilitation; or
2. if the commercial rehabilitation was completed prior to the expiration of the initial credit certificate, the deadline under subparagraph (i)3 of this paragraph for submission of a request for final certification.
(4) If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the business entity or the individual for that taxable year, the individual or business entity may claim a refund in the amount of the excess.
(5) The State credit allowed under this section may be allocated among the partners, members, or shareholders of an entity in any manner agreed to by those persons in writing.
(6) (i) In accordance with regulations adopted by the Director under this section, the amount of the State tax credit allowed but not used for commercial rehabilitations under this section may be transferred in whole or in part to any individual or business entity.
(ii) 1. For the taxable year of any transfer under this paragraph, the transferee under subparagraph (i) of this paragraph may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year.
2. If the tax credit exceeds the State income tax of the transferee in any taxable year, the transferee:
A. may claim a refund in the amount of the excess; or
B. may transfer the remainder of the tax credit to any individual or business entity.
(d) (1) (i) In this subsection the following words have the meanings indicated.
(ii) “Reserve Fund” means the Historic Revitalization Tax Credit Reserve Fund established under paragraph (2) of this subsection.
(iii) “Trust Account” means the Small Commercial Project Trust Account established under paragraph (4) of this subsection.
(2) (i) There is a Historic Revitalization Tax Credit Reserve Fund that is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article.
(ii) The money in the Reserve Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall be credited to the General Fund.
(iii) If the fees paid in any fiscal year are less than the directly related administrative costs of operating the Historic Revitalization Tax Credit Program, funds in the Reserve Fund shall be used for the directly related administrative costs of the Program.
(3) (i) Subject to the provisions of this subsection, the Director shall issue an initial credit certificate for each commercial rehabilitation for which a plan of proposed rehabilitation is approved and the fees charged under subsection (b)(7)(i) of this section are paid.
(ii) An initial credit certificate issued under this subsection shall state the maximum amount of credit under this section for which the commercial rehabilitation may qualify.
(iii) 1. Except as otherwise provided in this subparagraph and in subsection (b)(7)(v) of this section, for any fiscal year, the Director may not issue initial credit certificates for credit amounts in the aggregate totaling more than the amount appropriated to the Reserve Fund for that fiscal year in the State budget as approved by the General Assembly.
2. If the aggregate credit amounts under initial credit certificates issued in a fiscal year total less than the amount appropriated to the Reserve Fund for that fiscal year as a result of the limitation under subsection (b)(6) of this section, any excess amount may be issued under initial credit certificates for projects in a county or Baltimore City in the same fiscal year, without regard to the limitation under subsection (b)(6) of this section.
3. Subject to subsubparagraph 2 of this subparagraph, if the aggregate credit amounts under initial credit certificates issued in a fiscal year total less than the amount appropriated to the Reserve Fund for that fiscal year, any excess amount shall remain in the Reserve Fund and may be issued under initial credit certificates for the next fiscal year.
4. For any fiscal year, if funds are transferred from the Reserve Fund under the authority of any provision of law other than paragraph (5) of this subsection, the maximum credit amounts in the aggregate for which the Director may issue initial credit certificates shall be reduced by the amount transferred.
5. In each fiscal year, the Director shall estimate the amount of fees to be collected based on the amount appropriated to the Reserve Fund and reserve the difference between the estimated fees and estimated directly related administrative costs of the Program to be used to administer the Program.
6. If the reservation of funds to administer the Program under subsubparagraph 5 of this subparagraph is not necessary to cover the directly related administrative costs of the Program, any excess amount shall remain in the Reserve Fund and may be issued under initial credit certificates for the next fiscal year.
(iv) 1. Subject to subsubparagraphs 2 and 3 of this subparagraph, for each of fiscal years 2018 through 2031, the Governor shall include in the budget bill an appropriation to the Reserve Fund.
2. For each of fiscal years 2023 through 2025 and 2029 through 2031, the Governor shall include in the budget bill an appropriation to the Reserve Fund of at least $20,000,000.
3. For each of fiscal years 2026 through 2028, the Governor shall include in the budget bill an appropriation to the Reserve Fund of at least $16,500,000.
4. The amounts described under subsubparagraphs 2 and 3 of this subparagraph shall be in addition to the appropriations to the Trust Account required under paragraph (4) of this subsection.
(v) Notwithstanding the provisions of § 7–213 of this article, the Governor may not reduce an appropriation for the Reserve Fund in the State budget as approved by the General Assembly.
(vi) The Director may not issue an initial credit certificate for any fiscal year after fiscal year 2031.
(4) (i) Within the Reserve Fund, there is a Small Commercial Project Trust Account.
(ii) 1. The Trust Account is established for the issuance of tax credit certificates for small commercial projects.
2. Funds in the Trust Account shall be used only for transfers from the Reserve Fund to the General Fund in accordance with paragraph (5) of this subsection with respect to tax credit certificates issued for small commercial projects.
(iii) The Trust Account consists of:
1. money appropriated in the State budget for the Trust Account; and
2. any other money from any other source accepted for the benefit of the Trust Account.
(iv) For each of fiscal years 2024 through 2031, the Governor shall include in the budget bill an appropriation to the Trust Account of at least $2,000,000.
(5) (i) Except as provided in this paragraph, money appropriated to the Reserve Fund shall remain in the Fund.
(ii) 1. Within 15 days after the end of each calendar quarter, the Trust shall notify the Comptroller as to each commercial rehabilitation completed and certified during the quarter:
A. the maximum credit amount stated in the initial credit certificate for the project; and
B. the final certified credit amount for the project.
2. On notification that a project has been certified, the Comptroller shall transfer an amount equal to the maximum credit amount stated in the initial credit certificate for the project from the Reserve Fund to the General Fund.
(iii) 1. On or before October 1 of each year, the Trust shall notify the Comptroller as to the maximum credit amount stated in the initial credit certificate for each commercial rehabilitation for which the initial credit certificate has expired under subsection (c)(3) of this section as of the end of the prior fiscal year.
2. On notification that the initial credit certificate for a project has expired under subsection (c)(3) of this section, the Comptroller shall transfer an amount equal to the maximum credit amount stated in the initial credit certificate for the project from the Reserve Fund to the General Fund.
(e) (1) Subject to the provisions of this subsection, the Director shall issue an initial credit certificate for each approved small commercial project on a first–come, first–served basis.
(2) An initial credit certificate issued under this subsection shall state the maximum amount of tax credit for which the applicant is eligible.
(3) (i) Before fiscal year 2024, the Director may not issue an initial credit certificate under this subsection after the aggregate amount of initial credit certificates issued for small commercial projects totals $5,000,000.
(ii) Before fiscal year 2024, for a targeted project, the Director may not issue an initial credit certificate under this subsection:
1. after the aggregate amount of initial credit certificates issued for agricultural structures totals $1,000,000; or
2. after the aggregate amount of initial credit certificates issued for post–World War II structures totals $1,000,000.
(iii) Beginning fiscal year 2024 and each fiscal year thereafter, the Director may not issue initial credit certificates for small commercial projects under this subsection for credit amounts in the aggregate totaling more than the amount of funds in the Small Commercial Project Trust Account established under subsection (d)(4) of this section.
(f) (1) (i) In this subsection the following words have the meanings indicated.
(ii) 1. “Dispose of” means to transfer legal title or, in the case of a leasehold, the leasehold interest.
2. “Dispose of” includes to sell in a sale–and–leaseback transaction, to transfer on the foreclosure of a security interest, or to transfer by gift.
3. “Dispose of” does not include to transfer title or the leasehold interest to a creditor on creation of a security interest.
(iii) “Disqualifying work” means work that:
1. is performed on a certified rehabilitation; and
2. if performed as part of the rehabilitation certified under this section, would have made the rehabilitation ineligible for certification.
(2) The credit allowed under this section shall be recaptured as provided in paragraph (3) of this subsection if, during the taxable year in which a certified rehabilitation is completed or any of the 4 taxable years succeeding the taxable year in which the certified rehabilitation is completed:
(i) any disqualifying work is performed on the certified rehabilitation; or
(ii) for a commercial rehabilitation, the certified rehabilitation is complete and has been disposed of.
(3) (i) 1. If the disqualifying work is performed or the certified rehabilitation is disposed of during the taxable year in which the certified rehabilitation was completed, 100% of the credit shall be recaptured.
2. If the disqualifying work is performed or the certified rehabilitation is disposed of during the first full year succeeding the taxable year in which the certified rehabilitation was completed, 80% of the credit shall be recaptured.
3. If the disqualifying work is performed or the certified rehabilitation is disposed of during the second full year succeeding the taxable year in which the certified rehabilitation was completed, 60% of the credit shall be recaptured.
4. If the disqualifying work is performed or the certified rehabilitation is disposed of during the third full year succeeding the taxable year in which the certified rehabilitation was completed, 40% of the credit shall be recaptured.
5. If the disqualifying work is performed or the certified rehabilitation is disposed of during the fourth full year succeeding the taxable year in which the certified rehabilitation was completed, 20% of the credit shall be recaptured.
(ii) The individual or business entity that claimed the tax credit shall pay the amount to be recaptured as determined under subparagraph (i) of this paragraph as taxes payable to the State for the taxable year in which the disqualifying work is performed or the certified rehabilitation is disposed of.
(g) (1) The Comptroller may determine, under the process for return examination and audit under §§ 13–301 and 13–302 of the Tax – General Article:
(i) the amount of rehabilitation expenditures used in calculating the credit;
(ii) whether such expenditures are qualified rehabilitation expenditures under this section; and
(iii) whether the credit is allowable as claimed.
(2) The authority of the Comptroller to examine and audit a tax return does not limit the authority of the Director to determine whether a rehabilitation qualifies as a certified rehabilitation or whether a certificate of certified rehabilitation has been properly issued.
(3) The Comptroller may adopt regulations to require that an entity other than a corporation claim the tax credit on the tax return filed by that entity.
(4) (i) Except as otherwise provided in this paragraph, the credit under this section may be claimed for the year a certified rehabilitation is completed, only if the Director has, by the time the return is filed, issued a certificate of completion for the certified rehabilitation.
(ii) A taxpayer claiming the credit may amend a return for the year the certified rehabilitation was completed to account for a certificate issued subsequent to the filing of the original return.
(iii) An amended return shall be filed within the period allowed under the Tax – General Article for filing refund claims.
(iv) The provisions of this paragraph do not extend the period in which a certified rehabilitation must be completed to be eligible for a tax credit under this section.
(v) An amended return may account for an amended certification issued by the Director for a certified rehabilitation.
(h) A refund payable under subsection (c) of this section:
(1) operates to reduce the income tax revenue from corporations if the person entitled to the refund is a corporation subject to the income tax under Title 10 of the Tax – General Article;
(2) operates to reduce insurance premium tax revenues if the person entitled to the refund is subject to taxation under Title 6 of the Insurance Article; and
(3) operates to reduce the income tax revenue from individuals if the person entitled to the refund is:
(i) an individual subject to the income tax under Title 10 of the Tax – General Article; or
(ii) an organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code.
(i) (1) On or before December 15 of each fiscal year, the Director shall report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly, on:
(i) the initial credit certificates awarded for commercial rehabilitations and small commercial projects under this section for that fiscal year;
(ii) the tax credits awarded for certified rehabilitations completed in the preceding fiscal year;
(iii) whether the tax credits awarded for certified rehabilitations completed in the preceding fiscal year were located in:
1. a local historic district; or
2. a national register district; and
(iv) the estimated amount of directly related administrative costs reserved in the Reserve Fund, the estimated amount of fees to be collected, the actual directly related administrative costs, and the actual amount of fees collected.
(2) The report required under paragraph (1) of this subsection shall include for each initial credit certificate awarded for the fiscal year for a commercial rehabilitation:
(i) the name of the owner or developer of the commercial rehabilitation;
(ii) the name and address of the proposed or certified rehabilitation and the county where the project is located;
(iii) the dates of receipt and approval by the Director of all applications regarding the project, including applications:
1. for certification that a structure or property will qualify as a certified historic structure; and
2. for approval of the proposed rehabilitation; and
(iv) the maximum amount of the credit stated in the initial credit certificate for the project and the estimated rehabilitation expenditures stated in the application for approval of the plan of proposed rehabilitation.
(3) The report required under paragraph (1) of this subsection shall include for each certified commercial rehabilitation completed during the preceding fiscal year:
(i) the name of the owner or developer of the commercial rehabilitation;
(ii) the name and address of the certified rehabilitation and the county where the project is located;
(iii) the dates of receipt and approval by the Director of all applications regarding the project; and
(iv) 1. the maximum amount of the credit stated in the initial credit certificate for the project and the estimated rehabilitation expenditures stated in the application for approval of the plan of proposed rehabilitation; and
2. the actual qualified rehabilitation expenditures and the final amount of the credit for which the project qualified.
(4) The report required under paragraph (1) of this subsection shall summarize for each category of certified rehabilitations:
(i) the total number of applicants for:
1. certification that a structure or property will qualify as a certified historic structure;
2. approval of plans of proposed rehabilitations; or
3. certification of the completed rehabilitations;
(ii) the number of proposed projects for which plans of proposed rehabilitation were approved; and
(iii) the total estimated rehabilitation expenditures stated in approved applications for approval of plans of proposed rehabilitation and the total qualified rehabilitation expenditures for completed rehabilitations certified.
(5) The information required under paragraph (4) of this subsection shall be provided in the aggregate and separately for each of the following categories of certified rehabilitations:
(i) owner–occupied single family residential structures;
(ii) small commercial projects; and
(iii) commercial rehabilitations.
(j) (1) Subject to the provisions of this subsection, the provisions of this section and the tax credit authorized under this section shall terminate as of July 1, 2031.
(2) On and after July 1, 2031:
(i) the tax credit authorized under this section may be claimed for:
1. a rehabilitation project, other than a commercial rehabilitation, for which an application for approval of a plan of proposed rehabilitation was received by the Director on or before June 30, 2031; or
2. a commercial rehabilitation for which an initial credit certificate has been awarded under subsection (d) of this section; and
(ii) the Director shall continue to report to the Governor and the General Assembly as required under subsection (i) of this section for as long as any rehabilitation project for which the tax credit may be claimed remains incomplete.
(a) (1) On request by the Trust, the Board of Public Works may acquire part or all of any property that the Trust finds is a historic landmark worthy of public care and preservation.
(2) The property may be acquired by gift or by purchase with any available money.
(b) (1) Under § 5A-318 of this subtitle, the Board of Public Works may select the Trust as the State unit to control and administer any property acquired.
(2) For these purposes the Board of Public Works may transfer title to or an interest in the property to the Trust or to an appropriate governmental unit, private agency, or corporation, subject to covenants and conditions that call for the property to:
(i) be properly maintained and controlled; and
(ii) revert to the Board of Public Works on breach of any of these conditions or covenants.
(a) (1) To preserve the architectural and scenic integrity and beauty of the State House and other nearby real properties owned or used by the State or a State unit, the Board of Public Works may acquire architectural easements in the following areas in the City of Annapolis:
(i) around State Circle;
(ii) on School Street opposite the Executive Mansion; and
(iii) on the easterly side of North Street, between State Circle and College Avenue.
(2) The areas listed in paragraph (1) of this subsection include:
(i) the bed of the street and outer sidewalk areas to the building line on the outer perimeter; and
(ii) an area extending outward 50 feet from that building line.
(b) The Board of Public Works may acquire architectural easements by purchase, gift, exchange, or condemnation under Title 12 of the Real Property Article, with any available money.
(c) The Board of Public Works may:
(1) agree or contract with the owner or user of real property in the specified area to prohibit the owner or user from making any structural or other physical change in the property that the Board of Public Works determines would harm the architectural and scenic integrity and beauty of the property and the specified area; and
(2) give the owner or user cash or other consideration, including a promise not to acquire an architectural easement by condemnation over part or all of the property while the owner or user complies with the agreement or contract.
This subtitle does not abrogate or supplant any power of the State Highway Administration.
(a) In this part the following words have the meanings indicated.
(b) “Board” means the Board of Trustees of the Maryland Historical Trust.
(c) “Trustee” means a member of the Board.
(a) There is a Maryland Historical Trust.
(b) (1) The Trust is an instrumentality of the State, is a body corporate, and has perpetual existence.
(2) The General Assembly may terminate the Trust if the purposes of the Trust end.
(a) The purposes of the Trust are to:
(1) preserve, protect, and enhance districts, sites, buildings, structures, and objects of significance in the prehistory, history, upland and underwater archaeology, architecture, engineering, and culture of the State;
(2) encourage others to do the same; and
(3) promote interest in and study of those things listed in item (1) of this subsection.
(b) The Trust is charitable and is intended to benefit the residents of the State.
(c) The General Assembly may modify the Trust to carry out the purposes of the Trust.
There is a Board of Trustees of the Trust.
(a) (1) The Board consists of 15 trustees.
(2) The Governor, the President of the Senate, and the Speaker of the House of Delegates are ex officio trustees.
(3) With the advice and consent of the Senate, the Governor shall appoint the other 12 trustees.
(b) (1) The Governor may delegate any or all of the Governor’s powers or duties as trustee to a member of the Executive Department of the State.
(2) The President of the Senate may delegate any or all of the President’s powers or duties as trustee to a member of the Senate.
(3) The Speaker of the House of Delegates may delegate any or all of the Speaker’s powers or duties as trustee to a member of the House of Delegates.
(c) (1) At least two of the trustees appointed by the Governor shall have:
(i) an advanced degree in archaeology or a closely related field; and
(ii) experience in archaeology.
(2) Of the trustees who qualify under paragraph (1) of this subsection:
(i) at least one shall have experience in submerged archaeology; and
(ii) at least one shall have experience in terrestrial archaeology.
(3) The Secretary shall advise the Governor on the appointment of trustees qualified under paragraph (1) of this subsection after consulting with the Advisory Committee on Archaeology established under § 5A-336 of this subtitle.
(d) (1) The term of an appointed trustee is 4 years.
(2) The terms of appointed trustees are staggered as required by the terms provided for trustees on October 1, 2005.
(3) If an appointed trustee fails to serve or to complete a term, the Governor shall appoint a successor for the rest of the term.
(e) To the extent practicable and consistent with the purposes of the Trust, trustees shall be chosen, whether by delegation or appointment, to achieve a broad geographic distribution of trustees throughout the State.
(a) The Board shall elect annually a chair, a vice chair, and a treasurer from among its trustees.
(b) The Board shall determine how its officers are to be elected.
(a) Eight trustees are a quorum.
(b) (1) The Board shall meet at least twice a year at the times and places that it sets.
(2) The Director appointed under § 5A-316 of this subtitle shall call a special meeting:
(i) on order of the chair, on the chair’s own initiative; or
(ii) at the request of four or more trustees.
(3) (i) The Director shall notify each trustee in writing of the time and place of a meeting at least 7 days before the meeting.
(ii) The trustees may hold a meeting on less than 7 days’ notice if all trustees agree.
(c) A trustee:
(1) may not receive compensation for duties performed as a trustee; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(a) (1) The trustees shall appoint a Director, with the approval of the Governor.
(2) The Director is the chief administrative officer of the Trust.
(b) The Director shall have:
(1) knowledge in architecture, history, archaeology, or another appropriate discipline relating to historic preservation; and
(2) experience in historic preservation or related fields.
(c) The Director serves at the pleasure of the Board and may be removed with the concurrence of the Governor.
(d) (1) The Director is entitled to the salary provided in the State budget.
(2) The Director may employ a staff in accordance with the State budget.
(e) Under the direction of the Board, the Director shall perform the duties and functions that the Board prescribes.
On request, the Board shall receive legal counsel and services from the Attorney General to carry out the purposes of the Trust.
(a) The Board shall exercise the powers and duties of the Trust.
(b) The Trust may:
(1) adopt regulations to carry out this subtitle;
(2) take legal action to enforce this subtitle;
(3) adopt and use an official seal;
(4) contract for consultant or other services;
(5) apply for and accept money, grants, or loans from federal, State, local, or private sources;
(6) agree with a prospective mortgagor or grantee to provide financial assistance to a historic preservation project;
(7) acquire and hold real and personal historic property by gift, purchase, devise, bequest, or any other means;
(8) acquire or take assignment of a note, mortgage, or other security or evidence of indebtedness;
(9) acquire, attach, accept, or take title to an historic property by conveyance or, if a mortgage is in default, by foreclosure;
(10) sell, convey, assign, lease, or otherwise transfer or dispose of any property held by the Trust;
(11) make contracts, leases, or other agreements necessary or incidental to the performance of the duties of the Trust;
(12) preserve, restore, rehabilitate, reconstruct, protect, document, excavate, salvage, exhibit, and interpret historic properties;
(13) accept a gift or bequest for any purpose of the Trust and, unless the donor specifies otherwise, use the principal and income of the gift or bequest by:
(i) spending all or part of them to further the Trust; or
(ii) investing them, with the consent of the State Treasurer, in general obligations of the State or other securities;
(14) apply to Trust purposes any money, asset, property, or other thing of value the Trust receives incident to its operation; or
(15) delegate any of the powers of the Trust to one or more trustees or the Director.
(c) The Trust shall:
(1) direct and conduct a comprehensive statewide survey of historic properties in cooperation with:
(i) units of the federal government;
(ii) State units, including the Department of Natural Resources;
(iii) political subdivisions;
(iv) private organizations; and
(v) individuals;
(2) maintain an inventory and register of historic properties;
(3) document, research, record, and evaluate the significance of historic properties;
(4) prepare and implement comprehensive statewide and regional historic preservation plans;
(5) help political subdivisions to develop local historic preservation plans and programs;
(6) carry out programs and activities to protect, preserve, and encourage the preservation of historic properties;
(7) preserve and administer historic properties held by the Trust;
(8) cooperate with units of federal government, State units, political subdivisions, and private entities to ensure that historic properties are considered at all levels of planning and development;
(9) review the policies and programs of each State unit that affect historic properties, and recommend ways to improve the effectiveness and coordination of these policies and programs, consistent with this subtitle;
(10) administer programs of financial and technical assistance for historic preservation projects;
(11) make recommendations on the certification and eligibility of historic properties for tax incentives and other programs of public assistance;
(12) provide public information, education, and training relating to historic preservation;
(13) encourage public interest and participation in historic preservation;
(14) advise and assist the State Historic Preservation Officer in implementing the State Historic Preservation Officer’s responsibilities;
(15) advise the Governor and the General Assembly on historic preservation; and
(16) submit annually to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly a report of the activities of the Trust during the preceding year and any recommendations for actions appropriate to further its purposes.
(d) Income and fees received by the Trust, including fees authorized under this subtitle and income from educational and other preservation materials, activities, and services of the Trust, are not subject to § 7-302 of this article.
(e) Money maintained under this section is subject to audit by the State, including the Legislative Auditor.
(a) Unless the Board of Public Works approves, the Trust may not dispose of any property transferred to it by the State or purchased with State money.
(b) The Trust may not sell, convey, assign, or lease out any historic property solely for investment.
(c) Before selling or conveying real or personal property listed in or eligible to be listed in the Maryland Register of Historic Properties, the Trust shall:
(1) ensure that the proposed sale or conveyance provides for the preservation or enhancement of the property;
(2) give preference to acquisition proposals that:
(i) are made by political subdivisions or capable private nonprofit organizations qualifying under § 501(c)(3) of the Internal Revenue Code;
(ii) provide for uses most compatible with the historic or architectural value of the property; and
(iii) provide the greatest opportunity for public involvement, participation, education, and enjoyment; and
(3) provide a 6-month option to purchase to entities that:
(i) meet the requirements of item (2) of this subsection; and
(ii) propose to purchase at the State-established appraised fair market value.
(d) The reversion under a lease made by the Trust may not be redeemed at the option of the tenant unless the lease expressly provides that the reversion may be redeemed at the option of the tenant.
(a) In this section, “general repair and maintenance” means work to correct damage from deterioration or wear and tear of a property, including maintenance, reconstruction, repair, repainting, and refinishing.
(b) If an application for the change or alteration to a property subject to a historic preservation easement held by the Trust is for general repair or maintenance of the property, the Trust shall notify the applicant of the Director’s decision on the application on or before the earlier of:
(1) the expiration of the period of time specified in the easement documentation in which the Trust is required to notify the applicant of the Director’s decision; or
(2) 90 days after the date the application or any supplement to an application is submitted to the Trust.
(a) In this part the following words have the meanings indicated.
(b) “Council” means the Maryland Advisory Council on Historic Preservation.
(c) “Historic Register” means the Maryland Register of Historic Properties.
(d) “Preparation costs” means the costs of studies, surveys, plans and specifications, or architectural, engineering, and other special services.
(a) The Trust shall compile a Maryland Inventory of Historic Properties that consists of districts, sites, buildings, structures, and other objects of known or potential value to the prehistory, history, upland and underwater archaeology, architecture, engineering, and culture of the State.
(b) (1) The Trust shall compile a Historic Register to include all properties in the State that are listed in or eligible for listing in the National Register of Historic Places of the United States Department of the Interior.
(2) The Trust shall adopt regulations specifying procedures and eligibility standards for including properties in the Historic Register.
(3) The Director shall determine whether a property is eligible to be listed in the National Register of Historic Places.
(4) (i) The Director’s determination may be appealed to the Governor’s Consulting Committee on the National Register of Historic Places, which reviews nominations to the National Register under the National Historic Preservation Act.
(ii) The determination of the Governor’s Consulting Committee is final.
(c) The location and character of a historic property included in the Maryland Inventory of Historic Properties or the Historic Register shall be confidential if the Director determines that disclosure would create a substantial risk of theft of the property or damage to the property or to the area where the property is located.
(a) There is a Maryland Advisory Council on Historic Preservation.
(b) (1) The Council consists of seven voting members.
(2) The ex officio members are:
(i) the Secretary of General Services;
(ii) the Secretary of Housing and Community Development;
(iii) the Secretary of Planning; and
(iv) the Secretary of Transportation.
(3) The Governor shall appoint the other three members, of whom:
(i) two shall be individuals with expertise in architecture, history, archaeology, or another appropriate discipline that relates to historic preservation; and
(ii) one shall be a member of the general public.
(4) An ex officio member may designate a deputy secretary from the member’s department to act in the member’s absence.
(c) The Secretary of Planning serves as chair.
(d) (1) The term of an appointed member is 4 years.
(2) The terms of the appointed members are staggered as required by the terms provided for members of the Council on October 1, 2005.
(3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(4) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(e) (1) A majority of the authorized membership of the Council is a quorum.
(2) The Council shall set the times and places of its meetings.
(f) A member of the Council:
(1) may not receive compensation as a member; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(g) The Director of the Trust is the secretary and staff to the Council.
(a) (1) To the extent feasible, a State unit that submits a request or is otherwise responsible for a capital project shall consult with the Director to determine whether the project will adversely affect any property listed in or eligible for listing in the Historic Register.
(2) The consultation shall occur:
(i) before the State unit submits a request for the capital project to the Department of Budget and Management under § 3–602 of this article;
(ii) before or as part of the final project planning phase for a major transportation capital project as defined in § 2–103.1 of the Transportation Article; or
(iii) as early in the planning process as possible for a capital project that uses nonbudgeted money and is subject to the reporting requirements of § 3–602 of this article.
(b) (1) State units that own or control properties may consult with the Director to develop plans or interagency agreements to identify, evaluate, and manage any of those properties that are listed in or eligible to be listed in the Historic Register.
(2) Capital projects undertaken in accordance with a plan approved by the Trust or an interagency agreement are not subject to further review under this section.
(c) (1) This subsection applies to a capital project that:
(i) is not being carried out by a State unit;
(ii) uses the proceeds of State general obligation bonds; and
(iii) is not otherwise reviewed by the Trust under this section.
(2) Before the Board of Public Works may approve the use of bond proceeds for the project, the Department of Budget and Management or another State unit responsible for the project shall consult with the Director to determine whether the project will adversely affect any property listed in or eligible to be listed in the Historic Register.
(d) (1) Within 30 days after a State unit notifies the Director of a proposed capital project under this section, the Director shall determine whether the project would adversely affect any property listed in or eligible to be listed in the Historic Register.
(2) If the Director finds that the proposed capital project would have a significant adverse effect on a listed or eligible property, the Director and the State unit shall consult to determine whether a practicable plan exists to avoid, mitigate, or satisfactorily reduce the adverse effect.
(3) If the Director and the State unit cannot agree on a plan, the State unit shall submit to the Council a report of the consultations and the findings and recommendations of the State unit.
(4) Within 30 days after receiving the report, the Council shall submit to the State unit comments:
(i) accepting the adverse effect; or
(ii) recommending practicable alternatives to avoid, mitigate, or satisfactorily reduce the adverse effect.
(5) The State unit may:
(i) incorporate in the project the alternatives recommended by the Council; or
(ii) disagree with the comments of the Council.
(6) If the State unit disagrees with the comments of the Council, the State unit:
(i) shall respond in writing to the Council, explaining why the State unit refuses to adopt the measures included in the comments of the Council; and
(ii) may not proceed with the project for at least 10 working days after responding.
(e) Except for the cost of studies and surveys, a State unit may include the capital costs of preservation activities required under this subtitle as eligible project costs of any project undertaken or financed by the State unit.
(f) The Trust shall adopt regulations that establish procedures and standards for:
(1) administrative review and comment under this section, including time frames for Trust action by the Trust or the Director on specific categories of projects;
(2) exempting specific projects, categories of projects, or categories of programs from any requirement of this section, if the exemption is found to be consistent with the purposes of this subtitle and the best interests of the State, considering the magnitude of the exemption and the risk of impairing historic properties; and
(3) participation by State units, political subdivisions, private organizations, and other entities in proceedings under this section that may affect their interests.
(g) In accordance with regulations adopted under subsection (f) of this section, this section may be applied to any undertaking that is subject to the National Historic Preservation Act, 54 U.S.C. § 306108.
(h) Failure by a State unit to comply with this section does not create a private cause of action under State law.
(a) In cooperation with the Trust and subject to available resources, each State unit shall:
(1) establish a program to identify, document, and nominate to the Trust each property owned or controlled by the State unit that appears to qualify for the Historic Register;
(2) ensure that no property listed in or eligible to be listed in the Historic Register is inadvertently transferred, sold, demolished, destroyed, substantially altered, or allowed to deteriorate significantly; and
(3) use any available historic building under its control to the extent prudent and practicable before acquiring, constructing, or leasing a building to carry out its responsibilities.
(b) If it is prudent, practicable, and in the State’s best interest to do so, a State unit that transfers a surplus property listed in or eligible to be listed in the Historic Register shall ensure that the transfer provides for the preservation or enhancement of the property.
(c) If a historic property is to be altered substantially or destroyed by State action or with financial assistance from a State unit, the State unit shall cause timely steps to be taken to:
(1) make appropriate investigations and records;
(2) salvage appropriate objects and materials; and
(3) deposit with the Trust the results of the investigations, the records, and the recovered objects and materials.
(d) (1) A State unit that issues permits or licenses or provides financial assistance for any undertaking shall cooperate with the Trust by:
(i) giving notice to the Director, on request, of each application for a permit, a license, or financial assistance; and
(ii) requiring that, where appropriate, an applicant for a permit, a license, or financial assistance consult with the Director before the State unit takes final action on the application.
(2) After consulting with the Director, and to avoid, mitigate, or satisfactorily reduce any significant adverse effect on a property listed in or eligible to be listed in the Historic Register, a State unit may:
(i) put reasonable conditions on a license, permit, or award of financial assistance; and
(ii) seek guidance from the Council before imposing any conditions on a license, permit, or award of financial assistance.
(3) A person may appeal in accordance with the Administrative Procedure Act the reasonableness of a condition imposed by a State unit under this subsection on a license or permit.
(e) By regulation, the Trust shall establish professional standards, guidelines, and procedures to preserve historic properties owned, controlled, regulated, or assisted by State units, to minimize the need for Director review, and to avoid duplication and delays.
(f) This section may be applied to any undertaking that is subject to the National Historic Preservation Act, 54 U.S.C. § 306108.
(g) Failure by a State unit to comply with this section does not create a private cause of action under State law.
(a) (1) In this section the following words have the meanings indicated.
(2) “MHT Loan Fund” means the Historic Preservation Loan Fund of the Trust.
(3) “MHT Loan Program” means the Historic Preservation Loan Program of the Trust.
(b) (1) There is an MHT Loan Program in the Trust.
(2) The purpose of the MHT Loan Program is to implement and encourage the preservation of historic properties.
(3) The Trust shall administer the MHT Loan Program and coordinate the MHT Loan Program with federal and State programs that complement or facilitate carrying out the MHT Loan Program.
(c) There is an MHT Loan Fund in the Trust.
(d) The MHT Loan Fund may be used:
(1) to pay administrative costs directly related to the MHT Loan Program;
(2) to pay for the Trust to acquire historic properties or interests in historic properties for its authorized purposes or for resale or lease subject to appropriate preservation covenants;
(3) to pay costs, including preparation costs, to restore or rehabilitate historic properties owned by the Trust for:
(i) the Trust’s authorized purposes; or
(ii) resale or lease subject to appropriate preservation covenants;
(4) to make loans to nonprofit organizations, political subdivisions, business entities, and individuals to:
(i) acquire, rehabilitate, restore, or refinance historic properties; or
(ii) provide short–term financing for costs, including preparation costs, directly related to work that the Trust or the State Historic Preservation Officer requires or recommends to be undertaken before a construction project financed with federal or State money is begun or continued; or
(5) to make a transfer to a qualified cooperating nonprofit organization as provided for under § 5A–331 of this part.
(e) (1) The MHT Loan Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article.
(2) The State Treasurer shall hold and the Comptroller shall account for the MHT Loan Fund.
(f) The MHT Loan Fund consists of:
(1) money appropriated in the State budget to the MHT Loan Program;
(2) money received as interest or repayment of principal on loans made under the MHT Loan Program or the Capital Revolving Fund for Historic Preservation;
(3) the proceeds from the resale or lease of property originally acquired by the Trust with money from the MHT Loan Fund or the Capital Revolving Fund for Historic Preservation;
(4) money received from other public or private sources for the benefit of the MHT Loan Fund; and
(5) money received from the sale of general obligation bonds.
(g) Money in the MHT Loan Fund shall be invested in the same manner as other State money.
(h) (1) The Department shall adopt regulations to carry out the purposes of the MHT Loan Program.
(2) The regulations shall include:
(i) application procedures;
(ii) procedures to give adequate notice to the public of assistance available under the MHT Loan Program;
(iii) provisions for the review of plans and specifications;
(iv) provisions for the inspection of projects during construction; and
(v) selection criteria the Trust must consider in evaluating loan applications, including:
1. the relative historical or cultural significance of, and the urgency of need for, the project to be financed by the loan;
2. any proposed contribution by the appropriate political subdivision to the project;
3. the geographic distribution of loan assistance from the MHT Loan Fund; and
4. other relevant factors.
(i) (1) With the approval of the Secretary, for each loan the Trust may set:
(i) the principal amount;
(ii) the maturity;
(iii) the repayment terms; and
(iv) an interest rate that complies with applicable federal regulations governing State borrowing.
(2) A loan from the MHT Loan Fund may be granted at an interest rate lower than rates on other loans from the MHT Loan Fund if:
(i) the loan recipient is a nonprofit organization or a political subdivision; or
(ii) the Secretary of Housing and Community Development determines under § 4–212 of the Housing and Community Development Article that after restoration or rehabilitation, the historic property will be wholly or partly occupied by individuals or families of limited income.
(3) A loan from the MHT Loan Program may be secured by:
(i) a mortgage lien, which may be subordinate to other mortgage liens;
(ii) a guarantee of repayment; or
(iii) another form of collateral acceptable to the Trust.
(4) Without approval or execution by the Board of Public Works, the Trust may take title to a mortgaged property by foreclosure or by deed in lieu of foreclosure and:
(i) convey title to a buyer; and
(ii) obtain and seek enforcement of a deficiency judgment.
(5) An individual or business entity may receive a loan only if the recipient can document that private financing is unavailable.
(6) The Trust shall ensure that no loan is made under the MHT Loan Program to acquire, restore, or rehabilitate a historic property unless the historic property is listed in or eligible to be listed in the Historic Register.
(j) (1) The Trust shall require the recipient of a loan from the MHT Loan Program to enter into an agreement to preserve and maintain the property.
(2) If the property is real property, the agreement shall be a recordable historic preservation easement.
(3) The Secretary may waive the agreement requirement if the Secretary finds that an agreement is impracticable.
(k) The trustees shall review and make recommendations to the Secretary about loans and expenditures from the MHT Loan Fund, and the Secretary shall approve each loan and expenditure from the MHT Loan Fund.
(l) (1) To the extent required by regulations adopted by the Secretary and approved by the Board of Public Works, the Secretary shall submit to the Board of Public Works for approval a proposed loan or expenditure from the MHT Loan Fund that will be financed through the sale of State general obligation bonds.
(2) Except for an expenditure under subsection (d)(2) or (3) of this section, a loan or expenditure from the MHT Loan Fund is not subject to Titles 4 and 5 of this article.
(m) On or before December 31 of each year, the Trust shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly on the financial status and the activities of the MHT Loan Program for the preceding fiscal year.
(n) (1) A person may not knowingly make or cause to be made a material false statement of fact, including an understatement or overstatement of financial condition, in a statement or report in or regarding an application for a loan or affecting an existing loan.
(2) A person who violates this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.
(a) (1) In this section the following words have the meanings indicated.
(2) “MHT Grant Fund” means the Historic Preservation and Historical and Cultural Museum Assistance Grant Fund of the Trust.
(3) “MHT Grant Program” means the Historic Preservation Grant Program of the Trust.
(b) (1) There is an MHT Grant Program in the Trust.
(2) The purposes of the MHT Grant Program are to:
(i) implement and encourage the preservation of historic properties; and
(ii) promote interest in and study of historic properties and their preservation.
(c) (1) The Trust shall administer the MHT Grant Program and coordinate the MHT Grant Program with federal and State programs that complement or facilitate the MHT Grant Program.
(2) The Trust shall ensure that a grant awarded under the MHT Grant Program to acquire, restore, or rehabilitate a historic property is used only if the historic property is listed in or is eligible to be listed in the Historic Register.
(3) (i) The Trust shall require a grantee under the MHT Grant Program to enter into an agreement to preserve and maintain the property.
(ii) If the property is real property, the agreement shall be a recordable historic preservation easement.
(iii) The Secretary may waive the agreement requirement if the Secretary determines that an agreement is impracticable.
(d) (1) The Department shall adopt regulations to carry out the purposes of the MHT Grant Program.
(2) The regulations shall include:
(i) application procedures;
(ii) procedures to give adequate notice to the public of assistance available under the MHT Grant Program;
(iii) provisions for the review of plans and specifications;
(iv) provisions for the inspection of projects during construction; and
(v) selection criteria the Trust must consider when evaluating applications for grants, including:
1. the relative historical or cultural significance of, and the urgency of need for, the project to be financed by the grant;
2. any proposed contribution by the appropriate political subdivision to the project;
3. the geographic distribution of grant assistance from the MHT Grant Fund under subsection (e) of this section; and
4. other relevant factors.
(e) (1) There is an MHT Grant Fund in the Trust.
(2) The MHT Grant Fund may be used:
(i) for the purposes set forth in § 5A–353 of this subtitle;
(ii) to make grants to nonprofit organizations, political subdivisions, business entities, and individuals to acquire, rehabilitate, or restore historic properties;
(iii) to make grants to nonprofit organizations and political subdivisions to pay costs, including preparation costs, that are directly related to a rehabilitation or restoration project;
(iv) to make grants to nonprofit organizations and political subdivisions for historic preservation education and promotion, including the research, survey, and evaluation of historic properties and the preparation of historic preservation planning documents and educational materials;
(v) to purchase or acquire historic properties or interests in historic properties for the Trust’s authorized purposes or for resale or lease with appropriate preservation covenants;
(vi) to pay costs, including preparation costs, that are directly related to restoring or rehabilitating historic properties that the Trust owns for use in accordance with the Trust’s authorized purposes or for resale or lease subject to appropriate preservation covenants;
(vii) to pay for historic preservation education and promotion conducted by the Trust, and for the research, survey, and evaluation of historic properties and the preparation of historic preservation planning documents and educational materials; and
(viii) to pay for reasonable and necessary administrative costs directly related to the administration of the MHT Grant Fund, not to exceed 5% of the annual general fund appropriation to the MHT Grant Fund.
(f) The Trust shall administer the MHT Grant Fund.
(g) (1) The MHT Grant Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article.
(2) The Treasurer shall hold and the Comptroller shall account for the MHT Grant Fund.
(h) The MHT Grant Fund consists of:
(1) money appropriated in the State budget to the MHT Grant Program or the Historical and Cultural Museum Assistance Program under § 5A–352 of this subtitle;
(2) the proceeds from the resale or lease of any properties originally acquired by the Trust from the MHT Grant Fund or the Capital Grant Fund for Historic Preservation;
(3) money received from other public or private sources for the benefit of the MHT Grant Fund; and
(4) money received from the sale of State general obligation bonds.
(i) Subject to the limitations of the State budget, for fiscal year 2018 and each fiscal year thereafter, the Governor shall include in the annual State budget bill an appropriation of $1,500,000 to the MHT Grant Fund.
(j) Money in the MHT Grant Fund shall be invested in the same manner as other State money.
(k) (1) The trustees shall review and make recommendations to the Secretary about grant applications and expenditure requests from the MHT Grant Fund.
(2) The trustees shall base their grant recommendations on a competitive selection process.
(3) In any fiscal year, the Secretary may hold up to 20% of the money in the MHT Grant Fund in reserve for emergency use in accordance with subsection (e) of this section.
(4) Grants to business entities may not exceed 10% of all grants awarded from the MHT Grant Fund under this section.
(5) Grants to historic properties owned by the Trust may not exceed 10% of all grants awarded from the MHT Grant Fund under this section.
(l) (1) To the extent required by regulations adopted by the Secretary and approved by the Board of Public Works, the Secretary shall submit to the Board of Public Works for approval grants or expenditures from the MHT Grant Fund to be financed through the sale of State general obligation bonds.
(2) Except for an expenditure under subsection (e)(2)(v) and (vi) of this section, grants and expenditures from the MHT Grant Fund are not subject to Titles 4 and 5 of this article.
(m) (1) On or before December 31 of each year, the Trust shall report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly on the financial status and the activities of the MHT Grant Program and the MHT Grant Fund for the preceding fiscal year.
(2) In the report required under paragraph (1) of this subsection, the Trust shall include information on:
(i) the amount of the MHT Grant Fund that is used for administrative purposes; and
(ii) the amount of grants made to historic properties owned by the Trust.
(n) (1) A person may not knowingly make or cause to be made a material false statement of fact, including an understatement or overstatement of financial condition, in a statement or report in or regarding an application for a grant or affecting an existing grant.
(2) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.
(a) In this section, “Fund” means the Historic Marker Program Fund.
(b) There is a Historic Marker Program Fund in the Trust.
(c) The purpose of the Fund is to produce and install historic markers at sites of statewide historical significance.
(d) The Trust shall administer the Fund.
(e) (1) The Fund is a continuing, nonlapsing special fund that is not subject to § 7-302 of this article.
(2) The State Treasurer shall hold and the Comptroller shall account for the Fund.
(f) The Fund consists of:
(1) money appropriated to the Fund in the State budget;
(2) money recovered by the State to replace damaged or destroyed historic markers; and
(3) money from any other source received for the benefit of the Fund.
(g) The Trust may use money from the Fund to produce and install a historic marker at a site that the Trust determines to have statewide historical significance:
(1) if the site is on State-owned land; or
(2) if the site is not on State-owned land and at least one-half of the cost of producing and installing the historic marker is provided from sources other than the State.
(h) Money in the Fund shall be invested in the same manner as other State money.
(i) (1) The Trust shall approve the form and text of historic markers produced and installed under this section.
(2) Except as provided in paragraph (3) of this subsection, the Trust shall approve the location of a historic marker.
(3) If a historic marker is to be placed within the right-of-way of a public highway or street, the unit of the State or the political subdivision that maintains the public highway or street shall approve the location and manner of installation of the historic marker.
(j) The State owns the historic markers produced and installed under this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “AAHP Grant Fund” means the African American Heritage Preservation Grant Fund of the Trust.
(3) “African American Heritage Grant” means a grant made under the Program for an African American Heritage Preservation Project or that is an African American Heritage Preservation Noncapital Grant.
(4) “African American Heritage Preservation Noncapital Grant” means a grant awarded under this section for the purpose of preserving or sharing African American history or culture in the State.
(5) “African American Heritage Preservation Project” means a capital project that:
(i) preserves buildings, communities, and sites of historical and cultural importance to the African American experience in the State; and
(ii) is for:
1. the acquisition of land or buildings; or
2. the construction or improvement of land or buildings.
(6) “Commission” means the Commission on African American History and Culture.
(7) “Construction or improvement” means planning, design, engineering, alteration, construction, reconstruction, enlargement, expansion, extension, improvement, replacement, rehabilitation, renovation, upgrading, repair, or capital equipping.
(8) “Program” means the African American Heritage Preservation Program.
(9) “Secretary” means the Secretary of Planning.
(b) (1) There is an African American Heritage Preservation Program in the Trust.
(2) The purpose of the Program is to identify and preserve buildings, communities, and sites of historical and cultural importance to the African American experience in the State.
(3) The Trust shall develop and administer the Program in partnership with the Commission.
(c) (1) There is an African American Heritage Preservation Grant Fund in the Trust.
(2) The Trust shall administer the AAHP Grant Fund.
(3) The AAHP Grant Fund may be used only for African American Heritage Grants.
(4) (i) The AAHP Grant Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of this article.
(ii) The State Treasurer shall hold the AAHP Grant Fund separately and the Comptroller shall account for the AAHP Grant Fund.
(5) The AAHP Grant Fund consists of:
(i) money appropriated in the State budget to the Program;
(ii) investment earnings of the AAHP Grant Fund;
(iii) grants and donations to the AAHP Grant Fund;
(iv) any other money from any other source accepted for the benefit of the AAHP Grant Fund; and
(v) money received from the sale of State general obligation bonds.
(6) For each fiscal year, the Governor shall include in the annual operating or capital budget an appropriation of $5,000,000 to the AAHP Grant Fund.
(7) (i) The State Treasurer shall invest the money of the AAHP Grant Fund in the same manner as other State money.
(ii) Any investment earnings of the AAHP Grant Fund shall be paid into the AAHP Grant Fund.
(8) Expenditures from the AAHP Grant Fund may be made only in accordance with the State budget.
(d) (1) On or before a date established annually by the Trust and the Commission and subject to availability of money in the AAHP Grant Fund, an individual or a business entity, nonprofit organization, or political subdivision may submit an application for an African American Heritage Grant to the Trust.
(2) An application shall include:
(i) a description of the scope and purpose of the project;
(ii) a building plan that includes the estimated total cost of the project; and
(iii) any other information required by the Trust and the Commission.
(e) An African American Heritage Grant to a business entity, an individual, or a political subdivision may not exceed $500,000.
(f) (1) The Trust and the Commission shall:
(i) review all grant applications submitted in accordance with subsection (d) of this section;
(ii) except as provided under subsection (g) of this section, consider a grant application competitively against all other grant applications submitted during the same fiscal year; and
(iii) make recommendations regarding each application to the Secretary for the award of African American Heritage Grants.
(2) In making recommendations under this subsection, the Trust and the Commission shall consider:
(i) the public necessity and urgency of a project;
(ii) the need for additional sources of funding for a project;
(iii) the estimated cost and timeliness of executing a project;
(iv) geographic diversity; and
(v) any other criteria determined by the Trust and the Commission to be relevant.
(g) (1) Subject to the requirements of subsection (h)(2) and (3) of this section, in any fiscal year, the Secretary may reserve up to 20% of the money available in the AAHP Grant Fund to award African American Heritage Grants to eligible emergency African American Heritage Preservation Projects not otherwise applied for in accordance with subsection (d) of this section.
(2) The application for an emergency grant shall include any information required by the Trust.
(3) The Trust and the Commission shall:
(i) review all applications for emergency grants; and
(ii) for each application for an emergency grant, make recommendations to the Secretary on whether to award the grant.
(h) (1) The Secretary shall:
(i) review each grant application submitted under subsection (d) or (g) of this section and the recommendations of the Trust and the Commission;
(ii) consider:
1. the applications and recommendations under the criteria set forth in subsection (f)(2) of this section; and
2. if the grant was submitted under subsection (g) of this section, the nature of the emergency; and
(iii) subject to paragraphs (2) and (3) of this subsection, make the final decision to award the grant or deny the application.
(2) Subject to paragraph (3)(ii) of this subsection, the Secretary may award a grant under the Program funded by money received under subsection (c)(5)(i), (ii), (iv), or (v) of this section only for an African American Heritage Preservation Project.
(3) (i) The Secretary may award a grant funded by money received under subsection (c)(5)(iii) of this section as an African American Heritage Preservation Noncapital Grant.
(ii) If, after the award of all eligible grants under subparagraph (i) of this paragraph have been made, there is additional money in the AAHP Grant Fund received under subsection (c)(5)(iii) of this section, the Secretary may award a grant funded by money received under subsection (c)(5)(iii) of this section for an African American Heritage Preservation Project.
(i) On or before December 31 of each year, the Trust and the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly, on the financial status and the activities of the Program and the AAHP Grant Fund for the prior fiscal year.
(j) (1) Except as provided in paragraph (3) of this subsection, the Trust shall require a grantee awarded an African American Heritage Grant to enter into an agreement to preserve and maintain the property for which the grant was awarded.
(2) If the property is historic real property, the agreement shall be a recordable historic preservation easement.
(3) The Director may waive the agreement or easement requirement if the Director determines that an agreement or easement is impracticable, infeasible, or not necessary under the circumstances.
(k) (1) Subject to paragraph (2) of this subsection, the Secretary, in consultation with the Commission, shall adopt regulations to implement the Program.
(2) A proposed regulation that relates to approval by the Board of Public Works of grants to be financed through the sale of State general obligation bonds may not be adopted under paragraph (1) of this subsection unless the regulation is approved by the Board of Public Works.
(l) To the extent required by regulations adopted under subsection (k) of this section, the Trust and the Commission shall submit to the Board of Public Works for the Board’s approval each African American Heritage Grant that is to be financed through the sale of State general obligation bonds.
(a) In this section, a “qualified cooperating nonprofit organization” means a nonprofit organization in good standing with the State Department of Assessments and Taxation that:
(1) is based in the State;
(2) operates statewide; and
(3) has demonstrated experience:
(i) rehabilitating historic structures;
(ii) managing preservation funds; and
(iii) holding preservation easements.
(b) (1) A qualified cooperating nonprofit organization may use funds provided by the Trust only:
(i) to pay for the qualified cooperating nonprofit organization to acquire historic properties or interests in historic properties for resale or lease;
(ii) to pay costs, including preparation and administrative costs, to restore or rehabilitate historic properties owned by the qualified cooperating nonprofit organization for resale or lease;
(iii) to make loans to other nonprofit organizations, political subdivisions, and business entities to acquire, rehabilitate, restore, or refinance historic properties;
(iv) to make loans to individuals to rehabilitate or restore historic properties recognized by the National Park Service as National Historic Landmarks; or
(v) for necessary administrative and programmatic expenses associated with carrying out the transfer of funds.
(2) A qualified cooperating nonprofit organization shall develop a competitive process for making awards of financial assistance with funds received from the Trust.
(c) A qualified cooperating nonprofit organization receiving funds from the Trust, in coordination with the Director, shall adopt appropriate guidelines to carry out the purposes enumerated in subsection (b) of this section.
(d) A qualified cooperating nonprofit organization shall make the following information available on its website:
(1) the guidelines established under subsection (c) of this section;
(2) the availability of funds; and
(3) information on projects receiving financial assistance from the transferred funds.
(e) (1) On or before June 30 each year, a qualified cooperating nonprofit organization shall provide an annual report to the Trust outlining all funds received.
(2) The annual financial review or audit of the organization shall be provided at the request of the Trust to confirm the intended use of the transferred funds.
(a) In this part the following words have the meanings indicated.
(b) “Archaeology Office” means the Archaeology Office established under § 5A-334 of this subtitle.
(c) “Associated funerary objects” means objects that are reasonably believed to have been placed with individual human remains as a part of the death rite or ceremony of a culture.
(d) (1) “Cave” has the meaning stated in § 5-1401 of the Natural Resources Article.
(2) “Cave” includes:
(i) any naturally occurring void, cavity, recess, cavern, sinkhole, grotto, rock shelter, or system of interconnecting passages beneath the surface of the earth or within a cliff or ledge; and
(ii) natural subsurface water and drainage systems.
(e) “Committee” means the Advisory Committee on Archaeology.
(f) “Human remains” means any part of the body of a deceased human being in any state of decomposition.
(g) “Native American” means an individual or a descendant of an individual who inhabited North America before European contact.
(h) “Submerged archaeological historic property” means any underwater structure, remains, or object that:
(1) yields or is likely to yield information significant to the study of human prehistory, history, or culture; and
(2) (i) is so embedded in underwater land that excavating tools are needed to move the bottom sediments to reach all or part of it and has remained unclaimed for at least 100 years; or
(ii) is included or is eligible to be included in the National Register of Historic Places.
(a) There is an Archaeology Office in the Trust.
(b) (1) The Archaeology Office includes a research unit.
(2) The research unit shall:
(i) engage in and direct fundamental archaeological research;
(ii) synthesize existing research information; and
(iii) encourage archaeological research and investigation by museums, institutions of higher education, and scientific and historical institutions and organizations in the State.
(c) (1) The Director shall employ a Chief Archaeologist, a State Terrestrial Archaeologist, and a State Underwater Archaeologist in accordance with § 5A-316 of this subtitle.
(2) (i) Each archaeologist employed under this subsection shall have an advanced degree in archaeology or a closely related field from an accredited college or university.
(ii) The Chief Archaeologist shall be a professional archaeologist.
(3) The Chief Archaeologist is the administrative head of the Archaeology Office.
(d) (1) Except as provided in paragraph (2) of this subsection, the Archaeology Office includes all staff members of the Trust who are archaeologists or hired to perform archaeological work, including those who may be assigned archaeological-related functions in other units of the Trust.
(2) The Archaeology Office does not include individuals specifically assigned to a park, museum, or other site-specific facility under the jurisdiction of the Trust.
(a) The Archaeology Office shall:
(1) cooperate in excavating historically or archaeologically significant sites in the custody or control of any other State unit;
(2) encourage the preservation of prehistoric or historic sites on privately owned land in the State;
(3) coordinate the work of retrieving and preserving archaeologically significant objects and materials found during public construction in the State;
(4) cooperate with and help museums, institutions of higher education, and other scientific or historical institutions and organizations in preserving and protecting objects and materials of archaeological nature in their custody or control;
(5) cooperate with similar units of other states in preserving archaeologically significant sites, objects, and materials; and
(6) keep institutions or units of other states from exploiting archaeologically significant sites, objects, and materials in this State.
(b) The Archaeology Office also shall:
(1) make available to museums, institutions of higher education, and other scientific or historical institutions and organizations objects and materials suitable for demonstrating the archaeological history of the State;
(2) make available to public and private schools in the State exhibits on, and help to teach students about, the life of the early settlers and Native Americans of the State;
(3) disseminate archaeological information by publishing reports of archaeological research and investigation; and
(4) establish an educational program to train interested members of the public to identify, investigate, and register terrestrial archaeological historic property.
(c) The Archaeology Office also shall:
(1) prepare a list of prioritized research goals and objectives to guide the Trust and the Department’s Division of Historical and Cultural Programs in choosing archaeological research projects to perform;
(2) develop, in consultation with the Committee, a policy that specifies the circumstances under which the Trust may directly perform archaeological investigations to comply with State or federal law that the Trust or the State Historic Preservation Officer administers; and
(3) provide to the Committee each year a copy of the part of the Trust’s annual report to the Governor, required by § 5A-318(c)(16) of this subtitle, that relates to the Trust’s archaeological activities.
(d) (1) Except as provided in paragraph (2) of this subsection, an archaeologist who is not working for the Trust need not adhere to the archaeological research goals and objectives developed by the Archaeology Office under this section.
(2) An archaeologist who performs a project governed by any State or federal law that the Trust or the State Historic Preservation Officer administers shall adhere to those goals and objectives to the extent required by law.
(a) There is an Advisory Committee on Archaeology.
(b) (1) The Committee consists of seven members appointed by the Governor on recommendation of the Secretary and with the advice and consent of the Senate.
(2) The Committee shall include representatives of reputable museums, institutions of higher education, other recognized scientific or historical institutions or organizations, and qualified private firms that provide archaeological services.
(c) Each member of the Committee shall have skill and knowledge in archaeological matters.
(d) (1) The term of a member is 3 years and begins on July 1.
(2) The terms of members are staggered as required by the terms provided for members of the Committee on October 1, 2005.
(3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(4) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(e) The Committee shall elect a chair from among its members.
(f) (1) The Committee shall meet at least four times a year at the times and places that the chair sets.
(2) At every meeting at least one of the following officers shall attend:
(i) the Chief Archaeologist;
(ii) the State Terrestrial Archaeologist; or
(iii) the State Underwater Archaeologist.
(g) A member of the Committee:
(1) may not receive compensation for duties performed as a member; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(h) The Committee shall:
(1) advise and assist the Archaeology Office on archaeological matters; and
(2) review policies, plans, and regulations relating to archaeological matters.
A person who knows the location of an archaeological site in the State is encouraged to give the information to a reputable museum, an institution of higher education, another recognized scientific or historical institution or organization, or the Trust.
The costs of archaeological work incurred in a State project on a site of archaeological or historical significance shall be as stated in § 7-114.1 of this article.
(a) Except as provided in subsection (b) of this section and elsewhere in this title, an object or material of historical or archaeological value or interest found on a submerged or terrestrial archaeological site on land that the State owns or controls:
(1) is the property of the State; and
(2) shall be deposited for permanent preservation with a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization.
(b) (1) Subject to applicable federal law and paragraph (2) of this subsection, the Trust may transfer Native American or other human remains in its possession, custody, or control to an appropriate place of repose.
(2) If the cultural affiliation of human remains and associated funerary objects in the possession, custody, or control of the Trust can be established, the Trust may transfer the human remains and associated funerary objects in the following order of priority to:
(i) the descendants of the deceased; or
(ii) a group established as culturally affiliated with the deceased, including a Native American tribe, band, group, or clan.
(c) (1) Except for human remains of Native Americans and associated funerary objects subject to subsection (b)(2) of this section, the Trust may transfer any human remains and associated funerary objects in its possession, custody, or control to a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization for study, if:
(i) the study is an essential part of scientific research;
(ii) the outcome of the scientific research will benefit the State; and
(iii) except as provided in paragraph (2) of this subsection, the study will be completed and the items returned to the Trust within 1 year after the date of the transfer.
(2) (i) If a transferee under this subsection makes a good faith effort but cannot complete a study within 1 year, the transferee may request an extension from the Trust.
(ii) The Trust may grant the extension only in accordance with its regulations.
(d) (1) In consultation with the Commission on Indian Affairs, the Trust shall adopt regulations to carry out this section.
(2) The regulations shall include:
(i) procedures to determine the appropriate disposition of human remains for which descent or cultural affiliation cannot be established;
(ii) specific time frames and procedures to extend a study of human remains and associated funerary objects beyond 1 year; and
(iii) procedures to account for any human remains and associated funerary objects that temporarily are transferred for study to a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization.
(a) Submerged archaeological historic property on or taken from underwater land over which the State has sovereign control is the property of the State.
(b) The State may convey title to part or all of submerged archaeological historic property it owns in accordance with a permit, if the Board of Public Works approves the permit in accordance with Title 10, Subtitle 3 of this article.
(c) (1) The Trust and a holder of a permit under § 5A-341 of this subtitle may enter into an agreement to dispose of submerged archaeological historic property recovered by the holder.
(2) The agreement may divide the recovered submerged archaeological historic property between the State and the holder.
(3) Subject to approval of the Board of Public Works, the division may be in value or in kind.
(4) The Trust shall be the arbiter of the division, acting in the best interest of the State and giving consideration to the fair treatment of the permit holder.
(5) An agreement under this subsection shall provide reasonable compensation to the permit holder for any recovered submerged archaeological historic property claimed and turned over to the State.
(d) The Trust shall:
(1) establish an educational program to train interested members of the public to identify and register submerged archaeological historic property; and
(2) certify members of the public who successfully complete the educational program.
(e) (1) The Trust shall adopt regulations on issuing permits and disposing of and transferring submerged archaeological historic property under this subtitle.
(2) The regulations shall be adopted:
(i) with the approval of the Secretary; and
(ii) in consultation with the Federal Advisory Council on Historic Preservation and appropriate public and private sector groups in the State, including sport divers, professional dive operators, dive clubs, salvors, archaeologists, commercial fishermen, and historic preservationists.
(a) Without a permit, a person may not excavate, remove, destroy, injure, deface, or disturb a submerged archaeological historic property on land over which the State has sovereign control.
(b) A person does not need a permit to inspect, study, explore, photograph, measure, record, or otherwise use and enjoy submerged archaeological historic property on land over which the State has sovereign control if the use or activity does not:
(1) involve the excavation, removal, destruction, injury, or disturbance of the submerged archaeological historic property or its immediate environment;
(2) endanger other persons or property; or
(3) violate any law.
(c) (1) Regulations under § 5A-340(e) of this subtitle shall provide that an individual does not need a permit to collect from submerged archaeological historic property a limited number of objects or materials recoverable by hand or with the use of screwdrivers, wrenches, or pliers.
(2) The State is not liable for injury or loss sustained by an individual engaged in activity authorized in accordance with paragraph (1) of this subsection.
(d) The Trust does not need a permit to do anything for which a permit is required under this section, but shall obtain approval for the undertaking from the Board of Public Works.
(e) The Trust shall establish a program for issuing and administering permits for activity that involves the removal, excavation, destruction, injury, or disturbance of submerged archaeological historic property on land over which the State has sovereign control.
(f) Subject to subsection (g) of this section, the Trust may issue to any person a permit granting an exclusive right to remove, excavate, destroy, injure, or disturb submerged archaeological historic property on land over which the State has sovereign control for the term and under the conditions that the Trust considers appropriate if:
(1) the Trust and the applicant for the permit have entered into an agreement under § 5A-340(c) of this subtitle; and
(2) the Trust determines that issuing the permit is in the best interest of the State and that the applicant for the permit has submitted a research plan that meets standards established by the Trust for:
(i) professional qualifications of the applicant and persons working under the permit;
(ii) techniques and methodology for the recovery and dissemination of data; and
(iii) proper conservation of information and materials.
(g) The Trust may not issue a permit to a person that seeks title to part or all of submerged archaeological historic property, or to a person that seeks to use submerged archaeological historic property for commercial salvage or another income-producing purpose, unless:
(1) the applicant has provided the Trust with assurance acceptable to the Trust that the project will be carried out and completed in accordance with a research plan under subsection (f)(2) of this section; and
(2) the Trust finds that:
(i) the submerged archaeological historic property is threatened with imminent destruction or substantial damage by natural or human factors unrelated to the proposed commercial excavation or disturbance;
(ii) the submerged archaeological historic property is not of major scientific, archaeological, anthropological, historical, recreational, or other public value;
(iii) the proposed excavation or disturbance will be minor and will produce information relevant to the statewide comprehensive historic preservation plan prepared by the Trust under § 5A-318(c)(4) of this subtitle; or
(iv) the submerged archaeological historic property will not be excavated or disturbed by any other person in the foreseeable future and will remain submerged until it is excavated or disturbed.
(h) The Trust may charge a reasonable fee to issue a permit and may require an applicant or permit holder to pay for the cost of the Trust’s review, administration, and supervision of the permit.
(i) The Director or the Director’s designee may enforce this section and may:
(1) issue a summons for a violation of this section or of a permit issued under this section;
(2) seize objects or materials removed from a submerged archaeological historic property, if the removal took place without a permit on or after July 1, 1988, or if the removal was contrary to the terms of a permit; and
(3) revoke a permit on a finding that the permit was issued improperly or the terms of the permit have been violated.
(a) Without a permit, a person may not excavate, remove, destroy, injure, deface, or disturb a terrestrial archaeological site on land that the State owns or controls.
(b) The Trust does not need a permit to do anything for which a permit is required under this section.
(c) The Trust may issue a permit to excavate a terrestrial archaeological site on land the State owns or controls to any person that the Trust determines is qualified to conduct an excavation to collect objects and materials of historical or archaeological value or interest.
(d) A terrestrial archaeological excavation may be conducted only to benefit a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization, so as to increase knowledge and appreciation of historical and archaeological objects and materials.
(e) The Trust may adopt regulations to ensure that objects and materials collected in a terrestrial archaeological excavation are properly safeguarded and preserved.
(f) The Director or the Director’s designee may enforce the provisions of this subtitle relating to terrestrial archaeological historic property in the same manner as provided in § 5A-341(i) of this subtitle for submerged archaeological historic property.
(a) (1) This section applies to all archaeological, prehistoric, and historic features found in any cave, including:
(i) all or any part of any burial grounds, historic or prehistoric ruins, and archaeological sites; and
(ii) relics, inscriptions, saltpeter workings, fossils, bones, and remains of historical human activity.
(2) Without a permit issued under this section, a person may not excavate, remove, destroy, injure, deface, or disturb features found in a cave.
(b) In accordance with §§ 5A-341 and 5A-342 of this subtitle, an individual trained in archaeology may apply for and be issued a permit to excavate or remove features described in subsection (a) of this section from or in a cave on land that the State owns or controls by rights under a lease, option contract, or purchase contract.
(c) (1) An individual may apply for a permit to excavate or remove archaeological, prehistoric, and historic features from a cave on privately owned land.
(2) An applicant for a permit shall:
(i) be trained in archaeology;
(ii) give the Trust a detailed statement of the purposes and objectives of the proposed excavation or removal;
(iii) agree to provide the Trust with information from and results of any excavation, study, or collection in accordance with the terms of the permit;
(iv) obtain the prior written consent of the owner of the land on which the excavation or removal will be conducted; and
(v) agree to carry the permit while conducting the excavation or removal authorized by the permit.
(3) A permit may be issued for a maximum term of 2 years and may be renewed.
(4) A permit is not transferable, but a person working under the direct supervision of the permit holder need not obtain a separate permit.
(d) Any object or material of archaeological, prehistoric, or historic value or interest found in a cave on privately owned land is the property of the owner of the land.
(e) If a person uses a cave for recreational or scientific purposes with the prior consent of and without a charge by the owner and sustains an injury, the owner and an authorized agent of the owner acting within the scope of the agent’s authority are not liable for the injury.
(f) The Director and the Director’s designee may enforce the provisions of this part relating to archaeological historic property found in caves in the same manner as provided in § 5A-341(i) of this subtitle for submerged archaeological historic property.
(a) If the Director or the Director’s designee takes any enforcement action under this subtitle against a permit holder, the permit holder shall be given an opportunity for a hearing before the Secretary.
(b) Subject to subsection (c) of this section, notice shall be given and the hearing shall be held in accordance with Title 10, Subtitle 2 of the State Government Article.
(c) The Director or the Director’s designee shall provide notice that a hearing will be held within 30 days after the enforcement action, unless a different period is agreed to by the parties.
(a) The provisions of this subtitle that protect property on land under State control if it is submerged archaeological historic property, terrestrial archaeological historic property, or archaeological historic property in a cave may apply to similar historic property on privately owned land if:
(1) the owner asks the Trust in writing to apply the provisions to the property; and
(2) the Trust determines that the property is eligible for the Maryland Register of Historic Properties and deserves protection.
(b) Unless the State controls privately owned land by rights under a lease, option contract, or purchase contract, this subtitle does not:
(1) limit the use of the land by the owner or the owner’s guest; or
(2) require the owner or guest to hold a permit before conducting any activity on the land.
(a) (1) A person who violates § 5A-339, § 5A-341, § 5A-342, or § 5A-343 of this subtitle, or a regulation adopted under any of those sections is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 30 days or a fine not exceeding $1,000 or both.
(2) If a person is found guilty of a violation under paragraph (1) of this subsection, the court:
(i) may impose costs against the person; and
(ii) on request by the Trust, may revoke any permit issued to the person under § 5A-340, § 5A-341, § 5A-342, or § 5A-343 of this subtitle.
(3) Each day on which a violation occurs is a separate violation.
(b) (1) A person who violates any term of a permit issued under § 5A-341 of this subtitle for use of a submerged archaeological historic property for commercial salvage or other income-producing purpose is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both.
(2) If a person is found guilty of a violation under paragraph (1) of this subsection, the court:
(i) may impose costs against the person; and
(ii) on request by the Trust, may revoke the person’s permit.
(3) Each day on which a violation occurs is a separate violation.
(c) Materials and recorded information obtained in violation of § 5A-339, § 5A-341, § 5A-342, or § 5A-343 of this subtitle are subject to appropriation by the State and will be managed, cared for, and administered by the Trust.
(a) In this part the following words have the meanings indicated.
(b) “Operating support” means money for necessary administrative, technical, or professional services, and related expenses.
(c) “Panel” means the Museum Assistance Review Panel.
(d) “Program” means the Historical and Cultural Museum Assistance Program.
This part applies to a museum in the State that:
(1) is organized on a nonprofit basis for essentially educational or preservation purposes;
(2) cares for tangible inanimate objects that the museum owns or uses;
(3) exhibits those objects to the public on a regular schedule; and
(4) interprets the State’s cultural heritage, history, natural history, or history of science and technology.
(a) The General Assembly finds that:
(1) museums present, interpret, and preserve unusual and significant objects of the State’s heritage for the benefit, enjoyment, and education of the residents of the State;
(2) museums are unique and beneficial resources that supplement the State’s educational system;
(3) museums are repositories and caretakers of irreplaceable cultural objects for the benefit of today’s generation and generations yet to come;
(4) museums, including those located in small communities, play an important and cost-effective role in the State’s leisure time and tourism industry;
(5) it is not feasible or desirable to display the entire history and heritage of the State in a single facility at one location;
(6) the history and heritage of the State should be displayed and interpreted to the public where the history happened and the heritage arose, so that centers of community pride may be created and tourist activity may be dispersed throughout the State; and
(7) the public interest is served by helping museums to become more accessible and by helping residents of the State and visitors to understand the State’s diverse heritage.
(b) The General Assembly finds that the public interest is served by establishing a program of financial assistance to support the upgrade, care, research, interpretation, documentation, and display of the State’s irreplaceable museum collections.
There is a Historical and Cultural Museum Assistance Program of the Trust.
(a) The purpose of the Program is to provide political subdivisions and nonprofit organizations with financial assistance for museums.
(b) The Program shall make grants from the MHT Grant Fund under § 5A-328 of this subtitle to political subdivisions and nonprofit organizations for use by museums for:
(1) research related to collections, exhibits, or other educational activities;
(2) the care, conservation, interpretation, and documentation of collections;
(3) the planning, design, and construction of exhibits;
(4) educational programs and projects;
(5) the development of master plans for museums, including activities required to achieve accreditation by the American Association of Museums or another appropriate entity;
(6) minor structural modifications to existing museum facilities;
(7) the development of plans and specifications and the provision of architectural, engineering, or other special services directly related to the construction or rehabilitation of museum facilities; or
(8) operating support for any museum-related activity, including activities described in items (1) through (7) of this subsection.
(c) On or before December 31 of each year, the Trust shall report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly on the financial status and the activities of the Program for the preceding fiscal year.
(a) There is a Museum Assistance Review Panel in the Program.
(b) (1) The Panel shall include as members:
(i) the President of the Senate or the President’s designee; and
(ii) the Speaker of the House of Delegates or the Speaker’s designee.
(2) The Secretary shall appoint the other members of the Panel.
(3) Of the members that the Secretary appoints:
(i) one shall be a representative of the Executive Branch with functions related to the purposes of the Program; and
(ii) the others shall fairly represent museums eligible for assistance under this part.
(c) (1) The Panel shall:
(i) advise the Secretary and the staff of the Trust regarding Program policies and activities;
(ii) review applications for grants under the Program and recommend approval or disapproval to the Secretary; and
(iii) seek the advice and recommendations of the State Archivist in reviewing grant applications that relate in any part to the care and preservation of, or access to, archival material.
(2) The Panel shall recommend approval of a grant only after a competitive selection process.
(a) The Trust shall administer the Program and coordinate the Program with federal, State, and private programs that complement or facilitate carrying out the Program.
(b) The Trust shall:
(1) survey the locations, resources, and needs of museums in the State;
(2) provide technical and general advisory assistance to museums that qualify or seek to qualify for grants under the Program; and
(3) encourage museums to develop long-range plans and to achieve accreditation by the American Association of Museums or another appropriate entity that accredits museums and helps them to meet professional standards.
The Trust may not make a grant to a museum that:
(1) is operated wholly or partly by the State; or
(2) has not existed as a nonprofit organization for at least 3 years before applying for the grant.
In any fiscal year, the Secretary may reserve up to 20% of the money available in the MHT Grant Fund under § 5A-328 of this subtitle for unanticipated projects eligible for assistance under § 5A-353 of this subtitle.
(a) The Department shall adopt regulations to carry out the Program, including:
(1) application and review procedures;
(2) procedures for adequate public notice of assistance available under the Program; and
(3) selection standards that the Panel shall consider in reviewing applications for grants.
(b) Selection standards under subsection (a)(3) of this section include:
(1) the relative merits of the project or activities within identified statewide needs;
(2) the extent to which the appropriate political subdivision contributes to support the project;
(3) the potential for the project to stimulate increased tourism, museum attendance, or museum self-sufficiency; and
(4) other relevant factors, such as the extent to which the project helps achieve equal geographic distribution of grant assistance throughout the State.
(a) A person may not knowingly make or cause to be made a material misstatement of fact in a statement or report in or regarding an application for a grant or affecting a grant already made.
(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.
For fiscal year 2025 and each fiscal year thereafter, the Governor may include in the annual budget bill an appropriation of $5,000,000 to the Trust to fund grants under the Program.
(a) In this subtitle the following words have the meanings indicated.
(b) “Committee” means the Maryland Advisory Committee on Historic Agricultural Structure Preservation.
(c) “Fund” means the Maryland Barn Preservation Fund.
(a) There is a Maryland Advisory Committee on Historic Agricultural Structure Preservation.
(b) (1) The Committee consists of 10 members.
(2) The ex officio members are:
(i) the Secretary of Agriculture, or the Secretary’s designee;
(ii) the Secretary of Commerce, or the Secretary’s designee;
(iii) the Secretary of Planning, or the Secretary’s designee;
(iv) the Director of the Maryland Historical Trust; and
(v) the Director of the Maryland Cooperative Extension.
(3) The Governor shall appoint the other five members, of whom:
(i) one shall be from a list of at least two nominees representing the Maryland State Grange;
(ii) one shall be from a list of at least two nominees representing the Maryland Farm Bureau;
(iii) two shall be individuals actively engaged in agriculture; and
(iv) one shall be a member of the Maryland Environmental Trust.
(c) The Secretary of Planning serves as chair.
(d) The term of an appointed member is 4 years.
(e) A member of the Committee:
(1) may not receive compensation as a member; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(a) There is a Barn Preservation Fund in the Department of Planning.
(b) The Fund shall be used to make grants to preserve historic barns and agricultural structures in the State.
(c) The Fund consists of:
(1) money appropriated in the State budget to the Fund; and
(2) any other money from any other source accepted for the benefit of the Fund.
(d) To apply for a grant, an applicant shall submit to the Committee an application in the form that the Committee requires.
(e) On a recommendation from the Committee, the Board of Public Works shall approve expenditures from the Fund in the form of grants to preserve historic barns and agricultural structures.
(f) In recommending grants under this subtitle, the Committee shall consider:
(1) any historic building features;
(2) important examples of historic agricultural building types;
(3) the productive long–term use of the property;
(4) important local landmarks;
(5) structures that are located on designated scenic and cultural byways; and
(6) structures that accept a preservation easement.
The Department of Planning shall adopt any regulations necessary to implement this subtitle.
If a recipient of a grant under this subtitle or subsequent owner of a property that was assisted by a grant under this subtitle takes any action within 10 years of the grant award with respect to the assisted building or structure, such as dismantlement, removal, or substantial alteration, which causes it to no longer be eligible for listing on the National Register of Historic Places, within 1 year from the date of loss of eligibility, the preservation grant shall be repaid in full to the Fund.
Receipt of a grant award under this subtitle and conditions of the award shall be recorded in the land records for the county in which the historic barn or agricultural structure is located.
(a) In this subtitle the following words have the meanings indicated.
(b) “Board” means the Board of Revenue Estimates.
(c) “Bureau” means the Bureau of Revenue Estimates.
(d) “Chief” means the Chief of the Bureau.
(a) There is a Board of Revenue Estimates.
(b) The Board consists of the following 3 ex officio members:
(1) the Comptroller;
(2) the Treasurer; and
(3) the Secretary of Budget and Management.
(c) The Treasurer may appoint, as the Treasurer’s designee, a deputy treasurer to serve on the Board.
(d) The Chief is the executive secretary of the Board.
(a) There is a Bureau of Revenue Estimates in the Office of the Comptroller.
(b) (1) The head of the Bureau is the Chief.
(2) Subject to the supervision of the Comptroller, the Chief has administrative control of the Bureau.
(3) Unless the Comptroller, with the approval of the Board, determines that an alternative structure is appropriate, the Chief shall be subject to the supervision of the Deputy Comptroller with responsibility for tax administration.
(c) (1) Except as otherwise provided by law, subject to the approval of the Board, the Comptroller shall appoint the Chief from a list of not fewer than three candidates reviewed and evaluated by the Revenue Monitoring Committee and the Consensus Revenue Monitoring and Forecasting Group established under § 6–105 of this subtitle.
(2) The Chief may be removed only by a majority of the Board for incompetence or other good cause.
(d) The Chief shall appoint other employees of the Bureau in accordance with the provisions of the State Personnel and Pensions Article, including:
(1) a minimum of six analysts; and
(2) one Deputy Chief.
(a) (1) In this section, “nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article.
(2) “Nonwithholding income tax revenues” does not include:
(i) the county share of income tax quarterly estimated and final payments with returns made by individuals;
(ii) income tax payments made by corporations;
(iii) income tax refunds paid to individuals or corporations; or
(iv) income tax withholding.
(b) (1) After the end of each fiscal year, the Bureau shall submit to the Board a report that:
(i) contains an itemized statement of the State revenues from all sources for that fiscal year; and
(ii) includes any recommendations of the Bureau.
(2) (i) In December, March, and September of each year, the Bureau shall submit to the Board a report that contains an itemized statement of the estimated State revenues from all sources for the fiscal year following the fiscal year in which the report is made.
(ii) The report required under subparagraph (i) of this paragraph shall be reviewed and approved by the Revenue Monitoring Committee before the estimates in the report may be formally adopted by the Board.
(iii) The Bureau shall submit the March report required under subparagraph (i) of this paragraph to the Board by a date that allows the Board to meet before the passage of the annual budget bill in the first chamber of the General Assembly to vote on the budget bill in that year.
(3) The Bureau shall provide to the Board any other information that the Board requests.
(4) Notwithstanding any other provision of law, the reports required under paragraphs (1) and (2) of this subsection shall include an itemized statement of:
(i) revenues or estimated revenues distributed to the Transportation Trust Fund, including the motor fuel taxes imposed under Title 9, Subtitle 3 of the Tax – General Article and motor vehicle titling taxes imposed under Title 13, Subtitle 8 of the Transportation Article;
(ii) revenues from the State transfer tax imposed under Title 13, Subtitle 2 of the Tax – Property Article;
(iii) estimated revenues from nonwithholding income taxes calculated in accordance with subsection (e) of this section; and
(iv) estimated revenues from any premium taxes collected by the Maryland Insurance Administration.
(5) (i) In order for the Bureau to include in the reports required under paragraphs (1) and (2) of this subsection estimated revenues from any premium taxes collected by the Maryland Insurance Administration, the Maryland Insurance Administration shall submit to the Bureau:
1. within 1 month after the end of the preceding fiscal quarter, quarterly premium tax data on a cash basis and by fund source, including payments, refunds, other financial transactions, and total net cash impact;
2. a fiscal year–end close–out report reconciling the quarterly data;
3. an annual report tabulating data from submitted tax forms for each insurer, including total premiums, total deductions, total taxable premiums, gross tax owed, and liability information; and
4. any other data requested by the Bureau.
(ii) The Maryland Insurance Administration shall submit the data required under this paragraph in a format determined by the Bureau.
(c) In addition to these reports, the Bureau shall continually conduct studies of State revenue sources to:
(1) determine the amount of revenue produced; and
(2) devise and recommend new methods and sources for improved efficiency, equity, and economy in production, collection, and estimation of revenue.
(d) (1) On or before December 1, 2008, and December 1 of every third year thereafter, the Bureau shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly a tax incidence study measuring:
(i) the burden of all the major taxes and toll charges imposed by the State, including:
1. the individual income tax;
2. the motor fuel tax;
3. the real property tax; and
4. the sales and use tax;
(ii) how the burden of each tax and charge type is shared among taxpayers of different income levels; and
(iii) the aggregate impact of the taxes and charges among taxpayers of different income levels.
(2) In order to assist the Bureau in preparing a tax incidence study under this subsection, any governmental unit involved in the implementation or administration of the taxes and charges evaluated in the study shall:
(i) provide promptly any information that the Bureau requests; and
(ii) otherwise cooperate with the Bureau.
(3) The Bureau shall prepare and submit the statistics of income report required under § 10–223 of the Tax – General Article.
(e) (1) Beginning with the revenue estimate for fiscal year 2020, the Bureau shall calculate the share of General Fund revenues represented by nonwithholding income tax revenues in accordance with this subsection.
(2) (i) For each fiscal year, the Bureau shall calculate the 10–year average share of General Fund revenues represented by nonwithholding income tax revenues.
(ii) 1. For each fiscal year, the 10–year average shall use the 10 most recently completed fiscal years for which data are available when the estimate is prepared in the September before the beginning of the fiscal year.
2. The same 10–year average shall be used in all subsequent revisions to the revenue estimate for that fiscal year.
(3) (i) Subject to subparagraph (ii) of this paragraph, for each fiscal year, if the Bureau’s estimate of the share of General Fund revenues from nonwithholding income tax revenues is above the 10–year average share, the Bureau shall adjust the revenue estimate by reducing General Fund revenues from nonwithholding income tax revenues by an amount sufficient to align the estimated share of General Fund revenues from nonwithholding income tax revenues with the 10–year average share of General Fund revenues from nonwithholding income taxes.
(ii) The adjustment made under subparagraph (i) of this paragraph may not exceed the following percentage of total General Fund revenues or dollar value in a specified fiscal year:
1. 0.225% for fiscal year 2020;
2. $0 for fiscal year 2021;
3. $80,000,000 for fiscal year 2022;
4. $100,000,000 for fiscal year 2023;
5. $0 for fiscal years 2024 through 2029; and
6. 2% for fiscal year 2030 and each fiscal year thereafter.
(iii) The capped estimate calculated under this paragraph shall be incorporated in the revenue estimate the Bureau shall report to the Board in the report required under subsection (b)(2) of this section.
(f) On or before February 1, 2023, and February 1 of every fourth year thereafter, the Bureau, in collaboration with the Consensus Revenue Monitoring and Forecasting Group established under § 6–105 of this subtitle, shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly a report on the strengths and weaknesses of the Bureau in the preceding four years, including:
(1) the accuracy of Bureau estimates of State revenue;
(2) the impact of the revenue volatility cap on reporting; and
(3) the challenges faced by the Bureau in forecasting State revenues.
(g) (1) On or before August 1, 2023, and August 1 of every fourth year thereafter, the Department of Legislative Services shall submit, in accordance with § 2–1257 of the State Government Article, to the General Assembly a report on the operations of the Bureau, including:
(i) an analysis of the transparency and usability of data and reports produced by the Bureau;
(ii) an overview of appropriations for the Bureau and major expenditures;
(iii) an analysis of the staffing needs of the Bureau; and
(iv) issues preventing the Bureau from carrying out its duties under this subtitle.
(2) The report shall cover the operations of the Bureau during the same period as the report issued by the Bureau under subsection (f) of this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “Group” means the Consensus Revenue Monitoring and Forecasting Group established under this section.
(3) (i) “State share of nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article.
(ii) “State share of nonwithholding income tax revenues” does not include:
1. the county share of income tax quarterly estimated and final payments with returns made by individuals;
2. income tax payments made by corporations;
3. income tax refunds paid to individuals or corporations; or
4. income tax withholding.
(b) There is a Consensus Revenue Monitoring and Forecasting Group.
(c) The Group consists of:
(1) the Chief and staff of the Bureau as designated by the Chief;
(2) the Deputy Comptroller with responsibility for tax administration and staff as designated by the Deputy Comptroller with responsibility for tax administration;
(3) staff of the Office of the Treasurer as designated by the Treasurer;
(4) staff of the Department of Budget and Management as designated by the Secretary of Budget and Management;
(5) staff of the Department of Transportation as designated by the Secretary of Transportation; and
(6) staff of the Office of Policy Analysis of the Department of Legislative Services as designated by the Director of the Office.
(d) The Chief shall chair the Group.
(e) The Group and its constituent units shall:
(1) review and analyze attainment of revenues on a monthly basis;
(2) advise and collaborate with the Bureau:
(i) in the development of revenue forecasts and any necessary revisions to those forecasts; and
(ii) in the performance of any pertinent studies or analyses as requested by the Chief or as directed by the Board;
(3) develop and recommend to the Bureau a methodology for determining the State share of nonwithholding income tax revenues for each fiscal year; and
(4) before a new Chief is appointed, review and evaluate candidates for the position.
(f) To assist the Group in performing its function, the Comptroller and the Bureau shall:
(1) within 7 calendar days after the end of each month, provide to members of the Group detailed data on revenue collections;
(2) before any document relating to the work of the Bureau is published, provide a draft of the document to the members of the Group for review and comment; and
(3) at the request of the Group, provide research and analysis of particular issues identified by the Group in the course of its duties.
(a) (1) In this section, “nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article.
(2) “Nonwithholding income tax revenues” does not include:
(i) the county share of income tax quarterly estimated and final payments with returns made by individuals;
(ii) income tax payments made by corporations;
(iii) income tax refunds paid to individuals or corporations; or
(iv) income tax withholding.
(a–1) The Board shall:
(1) study the information that the Bureau provides; and
(2) consider the recommendations of the Bureau.
(b) (1) In December, March, and September of each year, the Board shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly, a report that:
(i) contains an itemized statement of the estimated State revenues from all sources for the fiscal year following the fiscal year in which the report is made; and
(ii) includes any recommendations of the Board.
(2) (i) Subject to subparagraph (ii) of this paragraph, the Governor shall state the most recent estimates of revenues reported by the Board in the proposed budget and any supplemental budget submitted to the General Assembly.
(ii) If the Governor uses different estimates of revenues in the formulation of the proposed budget and any supplemental budget submitted to the General Assembly than those reported by the Board, a statement providing an explanation as to the differences shall be included together with those submissions.
(3) The report required under paragraph (1) of this subsection shall include estimated revenues from nonwithholding income taxes calculated in accordance with § 6–104(e) of this subtitle.
(c) The Board shall approve a methodology for determining the State share of nonwithholding income tax revenues for each fiscal year.
(d) (1) On or before July 31 each year, the Board, in coordination with the Chief, shall schedule the Board’s annual meetings for March, December, and September of that fiscal year.
(2) Not later than 5 days before the scheduled date of the meeting, the Board, on the recommendation of the Chief, may reschedule a meeting under this subsection.
(3) Notice of a meeting rescheduled under paragraph (2) of this subsection shall:
(i) be posted to the website established under subsection (e) of this section; and
(ii) include a statement from the Chief concerning the reason the meeting is rescheduled.
(e) The Board shall develop and maintain a website that:
(1) provides access to the revenue estimates, projections, and reports developed by the Board;
(2) provides a schedule of upcoming Board meetings and agendas for open meetings of the Board;
(3) provides links to live video streaming of each open meeting of the Board;
(4) provides a complete and unedited archived video recording of each open meeting for which live video streaming was made available under item (3) of this subsection for a minimum of 5 years after the date of the meeting;
(5) provides access to reports and projections of the General Fund of the State and the following special funds:
(i) the Blueprint for Maryland’s Future Fund established under § 5–219 of the Education Article;
(ii) the Education Trust Fund established under § 9–1A–30 of the State Government Article; and
(iii) the Transportation Trust Fund established under § 3–216 of the Transportation Article;
(6) provides access to reports and projections of appropriations for, distributions from, and funds maintained by Program Open Space; and
(7) provides any other information the Board considers relevant.
(a) In this subtitle the following words have the meanings indicated.
(b) “Banking institution” means an institution that is incorporated under the laws of the State as a State bank, trust company, or savings bank.
(c) “Collateral” means collateral that is listed under § 6–202 of this subtitle.
(d) “Deposit insurance” means insurance by:
(1) the Federal Deposit Insurance Corporation; or
(2) the Resolution Trust Corporation created under § 21A of the Federal Home Loan Bank Act (12 U.S.C. § 1441a.).
(e) “Financial institution” means:
(1) any banking institution;
(2) any national banking association;
(3) an institution that is incorporated under the laws of any other state as a bank; or
(4) an institution that is incorporated under the laws of this State or of the United States as a savings and loan association.
(f) “National banking association” means an institution that is incorporated under federal law as a bank.
(g) “State money” for purposes of §§ 6–209 and 6–210 of this subtitle includes money in a bank account maintained under the control of an employee or official of the clerk of the court or register of wills.
Collateral that may be used under this subtitle shall be:
(1) an obligation of the United States or any of its agencies;
(2) an obligation guaranteed by the United States or by any of its agencies;
(3) an obligation insured by the United States;
(4) an obligation of the State or any of its units or instrumentalities;
(5) an obligation of a county of the State or any of its agencies;
(6) an obligation of a municipal corporation in the State or any of its agencies;
(7) an obligation of any other governmental authority in the State;
(8) an obligation of the Inter–America Development Bank;
(9) an obligation of the World Bank;
(10) an obligation of the following government–sponsored enterprises:
(i) the Federal Home Loan Banks;
(ii) the Federal Home Loan Mortgage Corporation;
(iii) the Federal National Mortgage Association;
(iv) the Farm Credit System;
(v) the Federal Agricultural Mortgage Corporation; and
(vi) the Student Loan Marketing Association;
(11) a surety bond if:
(i) subject to the terms and conditions of the bond, it is irrevocable and absolute;
(ii) the surety bond is issued by an insurance company authorized to do business in this State;
(iii) the issuer of the surety bonds does not provide surety bonds for any one financial institution in an amount that exceeds 10% of the surety bond insurer’s policyholders’ surplus and contingency reserve, net of reinsurance; and
(iv) the claims–paying ability of the authorized insurance company is rated, at all relevant times, in the highest category by at least two nationally recognized rating agencies acceptable to the Treasurer;
(12) an obligation or security of, or other interest in, any open–end or closed–end management type investment company or investment trust registered under the provisions of the federal Investment Company Act of 1940, 15 U.S.C. § 80a–1 et seq., if:
(i) the portfolio of the open–end or closed–end management type investment company or investment trust is limited to direct obligations of the United States government and to repurchase agreements fully collateralized by United States government obligations; and
(ii) the open–end or closed–end management type investment company or investment trust takes delivery of that collateral, either directly or through an authorized custodian; or
(13) a letter of credit issued by a Federal Home Loan Bank if the letter of credit meets the conditions under the guidelines issued by the State Treasurer’s office.
(a) The Treasurer shall give 15% of the weight of the decision to the standards established in this section in deciding whether to:
(1) designate a financial institution as a depositary for State money under § 6-205 of this subtitle; and
(2) make an agreement with a financial institution for a banking service under § 6-229 of this subtitle.
(b) (1) The Treasurer shall consider whether the financial institution received a rating of “needs improvement” or “substantial noncompliance” in its most recent examination under the federal Community Reinvestment Act of 1977, P.L. Number 95-128.
(2) If a financial institution operates in a state other than Maryland, the Treasurer shall consider Maryland-specific information that is provided within the assessment area section of the Community Reinvestment Act report.
(c) (1) The Treasurer shall consider whether, during the previous 5 years, a court in Maryland has found, in a final adjudication, that a financial institution has violated any antidiscrimination statute or regulation.
(2) The Treasurer may consider whether, during the previous 5 years, a court outside Maryland has found, in a final adjudication, that a financial institution has violated any antidiscrimination statute or regulation.
(3) The Treasurer may determine how to assess a violation under paragraph (1) or (2) of this subsection if the violation was committed by:
(i) an affiliate of the financial institution; or
(ii) an entity acquired by the financial institution.
(d) The Treasurer shall consider whether the financial institution has demonstrated that during the previous 5 years, the financial institution has:
(1) successfully made loans in Maryland through State or federal lending programs designed to assist small and minority-owned businesses;
(2) had an active outreach program to assist small and minority-owned businesses through which the financial institution has made efforts in Maryland; and
(3) established strategic partnerships in Maryland with entities whose mission is to provide technical assistance to small and minority-owned businesses.
(a) Subject to the limitations in this subtitle and in any other law, the Treasurer may designate any financial institution as a depositary for State money.
(b) The Treasurer may designate foreign banks and similar institutions as depositaries for the purpose of conducting State government activities outside the United States. The deposits in such institutions may not exceed the amount appropriated in the budget for conducting State government activities outside the United States.
The Treasurer may not designate a financial institution or a foreign institution as a depositary unless the Governor approves the designation.
(a) State money on deposit with a financial institution shall be secured by:
(1) deposit insurance; or
(2) collateral as required by this section.
(b) (1) The collateral for State money on deposit with a financial institution:
(i) must have, at all times, a market value that equals or exceeds the State money that is on deposit with the financial institution and is not covered by deposit insurance; and
(ii) must be approved by the Treasurer.
(2) If the collateral is a surety bond under § 6-202 of this subtitle:
(i) the surety bond shall be in a form and amount acceptable to the Treasurer as determined by the Treasurer from time to time; and
(ii) the financial institution that provides the surety bond as collateral shall immediately notify the Treasurer if the rating assigned to the issuing insurance company by any rating agency, found acceptable to the Treasurer under § 6-202 of this subtitle, is withdrawn or downgraded, in which event the financial institution shall immediately provide the Treasurer with substitute collateral permitted under § 6-202 of this subtitle.
(3) Subject to the requirements of this subsection, a financial institution may change its collateral from time to time.
(c) (1) A custodian shall hold the collateral under this section for the benefit of the State.
(2) A financial institution may use as a custodian:
(i) any banking institution that is approved by the Commissioner of Financial Regulation to conduct commercial banking business in the State;
(ii) a federal reserve bank; or
(iii) any national banking association that is approved by the Comptroller of the Currency to conduct banking business in the State.
(3) A financial institution may not be approved as custodian for the collateral of a depositary unless the assets of the financial institution equal or exceed 200% of the value of the collateral to be held for the depositary.
(a) (1) On request of the Treasurer, a depositary for State money shall submit to the Treasurer or a designee of the Treasurer a report that states:
(i) the total amount of State money on deposit with the depositary;
(ii) the total amount of collateral and deposit insurance for the money; and
(iii) the market value of the collateral for the money.
(2) Each national banking association that is a depositary for State money shall submit to the Comptroller of the Currency each report for which the Comptroller asks.
(3) Each banking institution that is a depositary for State money shall submit to the Commissioner of Financial Regulation each report for which the Commissioner asks.
(4) Each other bank that is a depositary for State money shall submit to the banking authority for the state where the bank has its principal office each report for which the banking authority of that state asks.
(b) On request of the Treasurer a custodian shall submit to the Treasurer or a designee of the Treasurer a report that states the total amount of collateral that a depositary has with the custodian.
(a) (1) There is a Linked Deposit Program for Small Businesses in the Department of Housing and Community Development.
(2) The purpose of the Linked Deposit Program for Small Businesses is to stimulate opportunities for small businesses to have access to credit by assisting these businesses in obtaining loans at lower than market interest rates.
(b) A loan qualifies under the Linked Deposit Program for Small Businesses if the loan:
(1) satisfies the lending criteria of the financial institution;
(2) has a term not exceeding 10 years;
(3) is made to a small business qualified under Title 14, Subtitle 5 of this article;
(4) has an interest rate that the financial institution charges on a loan for a similar purpose and a similar term that is reduced by at least the lesser of:
(i) 2 percentage points; or
(ii) the difference between the financial institution’s rate on a 60–month certificate of deposit and the interest rate acceptable to the Treasurer for its deposits; and
(5) has points or fees charged at loan closing not exceeding 1 percent of the loan amount.
(c) The Department of Housing and Community Development shall:
(1) confirm with the Department of General Services that each loan under the Linked Deposit Program for Small Businesses is made to a business that qualifies as a small business;
(2) establish procedures for notification by the Department of General Services if a business that has an outstanding balance of a loan under the Linked Deposit Program for Small Businesses no longer qualifies as a small business;
(3) require small businesses and lenders to notify the Department of Housing and Community Development concerning final loan disposition; and
(4) report annually to the Governor, the Treasurer, and, in accordance with § 2–1257 of the State Government Article, the General Assembly on overall performance of the Linked Deposit Program for Small Businesses.
(d) The Treasurer may establish the Linked Deposit Program for Small Businesses for investment of deposits in any financial institution that:
(1) the Treasurer has designated as a depository for State money; and
(2) makes a loan in accordance with subsection (b) of this section.
(e) (1) The Treasurer may make one or more interest bearing deposits that are equal to:
(i) the amount of the loan made by the financial institution in accordance with subsection (b) of this section; or
(ii) the aggregate amount of two or more loans made by one or more financial institutions in accordance with subsection (b) of this section.
(2) In making an interest bearing deposit under this subsection, the Treasurer may accept a rate that is up to 2 percentage points below current market rates or an index selected by the Treasurer.
(3) The Treasurer may use up to $50,000,000 to make interest bearing deposits in an amount equivalent to the amount financial institutions loan to qualified small businesses.
(4) Notwithstanding the provisions of § 6–202 of this subtitle, the Treasurer may make an interest bearing deposit under this subsection in any financial institution without the security required in § 6–202 of this subtitle if:
(i) the funds are initially placed for deposit with a financial institution selected by the Treasurer;
(ii) the financial institution selected by the Treasurer arranges for the further deposit of the money into one or more certificates of deposit, each in an amount of not more than the applicable Federal Deposit Insurance Corporation maximum insurance coverage limit, in one or more financial institutions for the account of the Treasurer;
(iii) at the same time the money is deposited and the certificates of deposit are issued for the benefit of the Treasurer by other financial institutions, the financial institution selected by the Treasurer receives an amount of deposits from customers of other banks or savings and loan associations equal to the amount of money initially deposited by the Treasurer;
(iv) each certificate of deposit issued for the Treasurer’s account is insured by the Federal Deposit Insurance Corporation for 100% of the principal and accrued interest of the certificate of deposit; and
(v) the financial institution selected by the Treasurer acts as custodian for the depositor with respect to the certificates of deposit issued for the Treasurer’s account.
(f) (1) Subject to paragraph (2) of this subsection, on notification by the Department of Housing and Community Development that a small business participating in the Linked Deposit Program for Small Businesses no longer qualifies as a small business under Title 14, Subtitle 5 of this article, the Treasurer shall reduce the amount of the interest bearing deposit with the participating financial institution by the outstanding balance of the loan made under this section to the small business that no longer qualifies under Title 14, Subtitle 5 of this article.
(2) A small business that loses its qualification due to revenue or employee growth may not be considered unqualified for purposes of paragraph (1) of this subsection.
(g) (1) A loan assisted by a linked deposit is not a debt of the State or a pledge of the credit of the State.
(2) The Treasurer and the State are not liable to any financial institution for payment of the principal or interest on a loan assisted by a linked deposit.
(h) The Department of Housing and Community Development and the Treasurer may adopt regulations to carry out this section.
(a) Except as otherwise provided by law, in accordance with regulations and policies adopted by the Treasurer and the Comptroller, each unit of the State government shall:
(1) pay into depositaries designated by the Treasurer for the account of the State Treasury all collections, fees, income, and other revenues that are received by the unit; and
(2) account to the Comptroller for those revenues.
(b) The Comptroller shall credit the revenues that a unit pays into depositaries designated by the Treasurer for the account of the State Treasury:
(1) to the account that the law specifies; or
(2) if the law does not specify an account, to an account that the Comptroller designates for the use of the unit.
(c) (1) With the approval of the Governor, the Comptroller:
(i) shall exempt revenues from the requirements of subsection (a) of this section if the Comptroller determines that the exemption would be in the public interest; and
(ii) may rescind an exemption.
(2) The Comptroller shall keep a record that shows each exemption and the reasons for it.
(3) The records shall be kept in the Office of the Comptroller and shall be open to public inspection.
(d) (1) In this subsection, “State institution” includes a hospital or center that the State operates.
(2) The Treasurer may exclude from the State Treasury the personal funds that a State institution holds for its residents or clients.
(3) A State institution shall use, as a depositary for these funds, a financial institution that the Treasurer approves.
(4) The Treasurer may require the submission of a proposed agreement between the State institution and the financial institution and may approve or disapprove the agreement.
(5) The accounts established by a State institution shall be interest bearing accounts.
(6) All interest on money of a resident or client of a State institution shall be credited to the resident or client.
(7) A State institution shall:
(i) keep records of all transactions that involve money of a resident or client; and
(ii) provide the resident or client with a statement of those transactions at least each 6 months and on discharge. �
Each person who collects or receives money for the State and who is not subject to § 6-213(a) of this subtitle shall:
(1) pay the money into the State Treasury as provided by law; and
(2) account to the Comptroller for the money:
(i) at the times and in the manner that the law specifies; or
(ii) if the law does not specify the time and manner, as the Comptroller considers necessary.
(a) (1) The Comptroller may not allow a warrant for payment of money into the State Treasury to be issued until a record is made in the Office of the Comptroller.
(2) The record shall state:
(i) the amount of the warrant; and
(ii) the account to which the money is credited.
(3) The Comptroller shall keep an abstract of each warrant for payment of money into the State Treasury.
(b) (1) The Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall endorse, as a receipt, a warrant for payment of money into the State Treasury that the Comptroller or, if authorized by law, the Chief Deputy Comptroller or a deputy comptroller has signed.
(2) Unless the warrant is signed as required by this subsection, an acknowledgment for money paid into the State Treasury is not valid.
(3) The Treasurer shall keep, as a voucher, a copy of each warrant for payment of money into the State Treasury.
(a) The Comptroller shall keep accounts that fully and accurately state, by class, State revenues and State expenditures for each fiscal year.
(b) The accounts shall be kept in the Office of the Comptroller.
The account that the Comptroller keeps for the Treasurer shall:
(1) charge the Treasurer with:
(i) the money that is in the State Treasury when a fiscal year begins; and
(ii) money that, on warrant, is paid into the State Treasury during the fiscal year; and
(2) credit the Treasurer with money that, on warrant, is paid from the State Treasury.
In an action against a person who is responsible for the receipt or collection of State money or against the surety of the person, a statement of the person’s account signed and certified by the Comptroller is prima facie evidence of the amount stated in it as due.
(a) In this section, “claim” includes a claim that is reduced to judgment.
(b) Subject to the limitations in this section, the Comptroller may settle a claim of the State that has been in arrears for at least 2 years:
(1) against a person who receives or collects State money;
(2) against the surety of that person; or
(3) against any other person.
(c) Before settling a claim under this section, the Comptroller shall examine the claim thoroughly and shall be satisfied that the State could not collect the claim through legal process.
(d) To settle a claim so as best to serve the interests of the State, the Comptroller may abate, wholly or partly, the principal or interest that is due to the State.
(e) The Comptroller shall discharge a person and the surety of the person when the agreed sum is paid into the State Treasury.
(f) (1) If a claim is settled without payment in full, the Comptroller shall keep a record that states the facts on which the settlement was based.
(2) The record shall be kept in the Office of the Comptroller.
(a) (1) Subject to paragraph (2) of this subsection, the Treasurer may invest or reinvest unexpended or surplus money over which the Treasurer has custody.
(2) Investments made under paragraph (1) of this subsection shall be in accordance with the limitations for the asset classes and thresholds established in regulations adopted under subsection (f) of this section.
(b) The Treasurer may sell, redeem, or exchange an investment or reinvestment made under this section in accordance with the limitations of this section.
(c) Subject to § 2–1257 of the State Government Article, the Treasurer shall report by January 3 of each year to the General Assembly on investment activities for unexpended or surplus money over which the Treasurer has custody which have been conducted during the previous fiscal year. At a minimum, the report shall specify for General Fund investments and all other investments:
(1) the inventory of investments with maturity dates and the book and market value as of June 30;
(2) the net income earned;
(3) the percentage share of each category of investment in the portfolio; and
(4) any sale of investments prior to the maturity date.
(d) An investment made pursuant to this section shall be made:
(1) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;
(2) in a manner designed to reasonably match the anticipated cash flow of the State so that sufficient funds are available to pay obligations upon proper presentation for payment;
(3) so that a reasonable amount of cash or cash equivalents is available for unanticipated cash needs;
(4) with due regard for minimizing risk while maximizing return;
(5) using competitive purchasing practices except when impractical;
(6) in accordance with a written investment policy;
(7) so that the securities and collateral may continue to be priced on a market to market basis; and
(8) to avoid the enhancement of the personal financial position of the Treasurer or any employee of the Treasurer who has responsibilities for such investments.
(e) (1) (i) Consistent with minority business purchasing standards applicable to units of State government under this article and consistent with the fiduciary duties of the Treasurer, the Treasurer shall attempt to use to the greatest extent feasible minority business enterprises for brokerage and investment management services under this section.
(ii) For purposes of this subsection, brokerage and investment management services shall include services relating to all allocated asset classes authorized in the regulations adopted under subsection (f) of this section.
(2) (i) To assist the Treasurer in achieving the goal described under paragraph (1) of this subsection, the Treasurer shall undertake measures to remove any barriers that limit full participation by minority business enterprises in brokerage and investment management services opportunities afforded under this section.
(ii) The measures undertaken by the Treasurer shall include the use of a wide variety of media, including the Treasurer’s website, to provide notice to a broad and varied range of potential providers about the brokerage and investment management services opportunities afforded by the Treasurer.
(3) In conjunction with the Governor’s Office of Small, Minority, and Women Business Affairs, the Treasurer shall develop guidelines to assist in identifying and evaluating qualified minority business enterprises in order to help the Treasurer achieve the objective for greater use of minority business enterprises for brokerage and investment management services under this section.
(4) On or before September 1 each year, the Treasurer shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 2–1257 of the State Government Article, the General Assembly on:
(i) the identity of the minority business enterprise brokerage and investment management services firms used by the Treasurer in the immediately preceding fiscal year;
(ii) the percentage and dollar value of the assets under the custody of the Treasurer that are under the investment control of minority business enterprise brokerage and investment management services firms for each allocated asset class; and
(iii) the measures the Treasurer undertook in the immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection.
(f) (1) The Treasurer shall adopt regulations that establish a State investment policy.
(2) The State investment policy shall specify:
(i) asset classes in which the Treasurer may invest or reinvest certain unexpended or surplus funds; and
(ii) thresholds for the maximum investment in each asset class authorized under item (i) of this paragraph.
(a) Except as otherwise prohibited by law, the Treasurer may invest or reinvest, in a deposit with a financial institution in the State, unexpended or surplus money over which the Treasurer has custody if:
(1) the deposit is interest bearing; and
(2) as provided for a depositary for State money:
(i) the financial institution provides collateral that has a market value that equals or exceeds the amount by which a deposit exceeds the deposit insurance; and
(ii) a custodian holds the collateral.
(b) The Treasurer may sell, redeem, or exchange an investment or reinvestment made under this section.
(a) Notwithstanding any other provision of law, the Treasurer may invest or reinvest unexpended or surplus State money in obligations that the Maryland Environmental Service issues for a capital project if:
(1) there is a commitment of federal funds for the project;
(2) the Service has not received the federal funds;
(3) the amount of the investment does not exceed the federal commitment; and
(4) as to any investment or reinvestment that exceeds $500,000, the Board of Public Works approves the investment or reinvestment.
(b) The Treasurer shall set the conditions of the investment or reinvestment, including the term, the interest rate, and any service charge.
(c) The Maryland Environmental Service shall repay the investment or reinvestment when the term that the Treasurer sets ends or, if sooner, when the Service receives the final federal funds.
(a) Notwithstanding any other provision of law, the Treasurer may invest or reinvest State money in any obligation that the Maryland Higher Education Loan Corporation guarantees if:
(1) a financial institution holds the obligation; and
(2) the Governor approves the financial institution.
(b) (1) The Treasurer may set the conditions of the investment or reinvestment, including the term and any service charge.
(2) The investments and reinvestments under this section may not exceed:
(i) for any 1 obligation, 80% of its principal;
(ii) for any 1 financial institution, the amount by which its holdings in the obligations exceed 1% of the total deposits of the financial institution; and
(iii) for all obligations, $10,000,000.
(c) If the Treasurer invests or reinvests in an obligation under this section, the financial institution that holds the obligation is the collecting agent of the State for the investment or reinvestment.
IN EFFECT
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Pretrial Services Program Grant Fund;
109. the Supplemental Facilities Fund;
110. the Hemp Farming Fund;
111. the Prince George’s County Public–Private Partnership Fund;
112. the Zero–Emission Vehicle School Bus Transition Fund;
113. the Rape Kit Testing Grant Fund;
114. the Pedestrian Safety Fund;
115. the Legal Representation Fund for Title IX Proceedings;
116. the Student Peer Mediation Program Fund;
117. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
118. the Federal Government Employee Assistance Loan Fund;
119. the Racing and Community Development Financing Fund;
120. the Racing and Community Development Facilities Fund;
121. the Supplemental Public School Construction Facilities Fund;
122. the Supplemental Public School Construction Financing Fund;
123. the Nancy K. Kopp Public School Facilities Priority Fund;
124. the Prescription Drug Affordability Fund;
125. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
126. the Michael Erin Busch Sports Fund;
127. the Coordinated Community Supports Partnership Fund;
128. the Opioid Restitution Fund;
129. the Historically Black Colleges and Universities Reserve Fund;
130. the Rural Broadband Assistance Fund;
131. the Digital Inclusion Fund;
132. the Digital Connectivity Fund;
133. the K–9 Compassionate Care Fund;
134. the Maternal and Child Health Population Health Improvement Fund;
135. the Inclusion Fund;
136. the Regional Institution Strategic Enterprise Fund;
137. the Hagerstown Multi–Use Sports and Events Facility Fund;
138. the Pre–Seed Builder Fund;
139. the Resilient Maryland Revolving Loan Fund;
140. the Notary Public Fund;
141. the Health Equity Resource Community Reserve Fund;
142. the Access to Counsel in Evictions Special Fund;
143. the Homeowner Protection Fund;
144. the Maggie McIntosh School Arts Fund;
145. the Climate Catalytic Capital Fund;
146. the Park System Critical Maintenance Fund;
147. the Park System Capital Improvements and Acquisition Fund;
148. the Great Maryland Outdoors Fund;
149. the Abortion Care Clinical Training Program Fund;
150. the Sports Entertainment Facilities Financing Fund;
151. the Major Sports and Entertainment Event Program Fund;
152. the Prince George’s County Blue Line Corridor Facility Fund;
153. the Senator George C. Edwards Fund;
154. the 9–8–8 Trust Fund;
155. the Maryland AIDS Drug Assistance Program Fund;
156. the Local Cybersecurity Support Fund;
157. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
158. the Maryland Makerspace Initiative Fund;
159. the Sustainable Maryland Program Fund;
160. the On–Site Wastewater Professionals Fund;
161. the Child Care Capital Support Revolving Loan Fund;
162. the Maryland New Start Pilot Microloan Program Fund;
163. the Department of General Services Broker Rebate Fee Fund;
164. the Patient Safety Center Fund;
165. the False Claims Fund;
166. the Resiliency Hub Grant Program Fund;
167. the Family and Medical Leave Insurance Fund;
168. the Cannabis Business Assistance Fund;
169. the Cannabis Public Health Fund;
170. the Community Reinvestment and Repair Fund;
171. the Young Adult Service Year Option Pathway Fund;
172. the Maryland Service Year Option Pathway Fund;
173. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
174. the Camden Yards Football Sports Facility Supplemental Financing Fund;
175. the Bus Rapid Transit Fund;
176. the Cannabis Regulation and Enforcement Fund;
177. the Medical Cannabis Compassionate Use Fund;
178. the Behavioral Health Workforce Investment Fund;
179. the Build Our Future Grant Fund;
180. the Human–Relevant Research Fund;
181. the Equitech Growth Fund;
182. the Maryland Forestry Education Fund;
183. the Transit–Oriented Development Capital Grant and Revolving Loan Fund;
184. the Local Land Trust Revolving Loan Fund;
185. the State Disaster Recovery Fund;
186. the Black Bass Conservation Fund;
187. the Non–Depository Special Fund;
188. the Teacher Retention and Development Fund;
189. the Protecting Against Hate Crimes Grant Fund;
190. the Fallen Transportation Workers Scholarship Fund;
191. the Maryland Geological Survey Fund;
192. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
193. the Rental Assistance for Community School Families Fund;
194. the Community Health and Safety Works Grant Program Fund;
195. the Camden Yards Football Sports Facility Capital Works Fund;
196. the Camden Yards Football Sports Facility Emergency Repair Fund;
197. the ENOUGH Grant Fund;
198. the Talent Innovation Fund;
199. the Climate Technology Founder’s Fund;
200. the Whole Watershed Fund;
201. the Radiation Emergency Response Fund;
202. the Victims of Domestic Violence Program Grant Fund;
203. the Proposed Programs Collaborative Grant Fund;
204. the Maryland Pay Per Apprentice Program Fund;
205. the West North Avenue Development Authority Fund;
206. the Academic Excellence Fund;
207. the Abandoned and Neglected Cemeteries Fund;
208. the Assistive Technology Services Fund;
209. the Private Dam Repair Fund;
210. the Public Health Abortion Grant Program Fund;
211. the Natural Resources Property Maintenance Fund;
212. the Department of Social and Economic Mobility Special Fund; and
213. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE JUNE 30, 2027 PER CHAPTERS 111, 430, AND 431 OF 2023 //
// EFFECTIVE UNTIL JUNE 30, 2028 PER CHAPTER 364 OF 2021 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Pretrial Services Program Grant Fund;
109. the Supplemental Facilities Fund;
110. the Hemp Farming Fund;
111. the Prince George’s County Public–Private Partnership Fund;
112. the Zero–Emission Vehicle School Bus Transition Fund;
113. the Rape Kit Testing Grant Fund;
114. the Pedestrian Safety Fund;
115. the Legal Representation Fund for Title IX Proceedings;
116. the Student Peer Mediation Program Fund;
117. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
118. the Federal Government Employee Assistance Loan Fund;
119. the Racing and Community Development Financing Fund;
120. the Racing and Community Development Facilities Fund;
121. the Supplemental Public School Construction Facilities Fund;
122. the Supplemental Public School Construction Financing Fund;
123. the Nancy K. Kopp Public School Facilities Priority Fund;
124. the Prescription Drug Affordability Fund;
125. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
126. the Michael Erin Busch Sports Fund;
127. the Coordinated Community Supports Partnership Fund;
128. the Opioid Restitution Fund;
129. the Historically Black Colleges and Universities Reserve Fund;
130. the Rural Broadband Assistance Fund;
131. the Digital Inclusion Fund;
132. the Digital Connectivity Fund;
133. the K–9 Compassionate Care Fund;
134. the Maternal and Child Health Population Health Improvement Fund;
135. the Inclusion Fund;
136. the Regional Institution Strategic Enterprise Fund;
137. the Hagerstown Multi–Use Sports and Events Facility Fund;
138. the Pre–Seed Builder Fund;
139. the Resilient Maryland Revolving Loan Fund;
140. the Notary Public Fund;
141. the Health Equity Resource Community Reserve Fund;
142. the Access to Counsel in Evictions Special Fund;
143. the Homeowner Protection Fund;
144. the Maggie McIntosh School Arts Fund;
145. the Climate Catalytic Capital Fund;
146. the Park System Critical Maintenance Fund;
147. the Park System Capital Improvements and Acquisition Fund;
148. the Great Maryland Outdoors Fund;
149. the Abortion Care Clinical Training Program Fund;
150. the Sports Entertainment Facilities Financing Fund;
151. the Major Sports and Entertainment Event Program Fund;
152. the Prince George’s County Blue Line Corridor Facility Fund;
153. the Senator George C. Edwards Fund;
154. the 9–8–8 Trust Fund;
155. the Maryland AIDS Drug Assistance Program Fund;
156. the Local Cybersecurity Support Fund;
157. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
158. the Maryland Makerspace Initiative Fund;
159. the Sustainable Maryland Program Fund;
160. the On–Site Wastewater Professionals Fund;
161. the Child Care Capital Support Revolving Loan Fund;
162. the Maryland New Start Pilot Microloan Program Fund;
163. the Department of General Services Broker Rebate Fee Fund;
164. the Patient Safety Center Fund;
165. the False Claims Fund;
166. the Resiliency Hub Grant Program Fund;
167. the Family and Medical Leave Insurance Fund;
168. the Cannabis Business Assistance Fund;
169. the Cannabis Public Health Fund;
170. the Community Reinvestment and Repair Fund;
171. the Young Adult Service Year Option Pathway Fund;
172. the Maryland Service Year Option Pathway Fund;
173. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
174. the Camden Yards Football Sports Facility Supplemental Financing Fund;
175. the Bus Rapid Transit Fund;
176. the Cannabis Regulation and Enforcement Fund;
177. the Medical Cannabis Compassionate Use Fund;
178. the Behavioral Health Workforce Investment Fund;
179. the Human–Relevant Research Fund;
180. the Equitech Growth Fund;
181. the Maryland Forestry Education Fund;
182. the Transit–Oriented Development Capital Grant and Revolving Loan Fund;
183. the Local Land Trust Revolving Loan Fund;
184. the State Disaster Recovery Fund;
185. the Black Bass Conservation Fund;
186. the Non–Depository Special Fund;
187. the Teacher Retention and Development Fund;
188. the Protecting Against Hate Crimes Grant Fund;
189. the Fallen Transportation Workers Scholarship Fund;
190. the Maryland Geological Survey Fund;
191. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
192. the Rental Assistance for Community School Families Fund;
193. the Community Health and Safety Works Grant Program Fund;
194. the Camden Yards Football Sports Facility Capital Works Fund;
195. the Camden Yards Football Sports Facility Emergency Repair Fund;
196. the ENOUGH Grant Fund;
197. the Talent Innovation Fund;
198. the Climate Technology Founder’s Fund;
199. the Whole Watershed Fund;
200. the Radiation Emergency Response Fund;
201. the Victims of Domestic Violence Program Grant Fund;
202. the Proposed Programs Collaborative Grant Fund;
203. the Maryland Pay Per Apprentice Fund;
204. the West North Avenue Development Authority Fund;
205. the Academic Excellence Fund;
206. the Abandoned and Neglected Cemeteries Fund;
207. the Assistive Technology Services Fund;
208. the Private Dam Repair Fund;
209. the Public Health Abortion Grant Program Fund;
210. the Natural Resources Property Maintenance Fund;
211. the Department of Social and Economic Mobility Special Fund; and
212. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE JUNE 30, 2028 PER CHAPTER 364 OF 2021 //
// EFFECTIVE UNTIL SEPTEMBER 30, 2028 PER CHAPTER 322 OF 2022 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Supplemental Facilities Fund;
109. the Hemp Farming Fund;
110. the Prince George’s County Public–Private Partnership Fund;
111. the Zero–Emission Vehicle School Bus Transition Fund;
112. the Rape Kit Testing Grant Fund;
113. the Pedestrian Safety Fund;
114. the Legal Representation Fund for Title IX Proceedings;
115. the Student Peer Mediation Program Fund;
116. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
117. the Federal Government Employee Assistance Loan Fund;
118. the Racing and Community Development Financing Fund;
119. the Racing and Community Development Facilities Fund;
120. the Supplemental Public School Construction Facilities Fund;
121. the Supplemental Public School Construction Financing Fund;
122. the Nancy K. Kopp Public School Facilities Priority Fund;
123. the Prescription Drug Affordability Fund;
124. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
125. the Michael Erin Busch Sports Fund;
126. the Coordinated Community Supports Partnership Fund;
127. the Opioid Restitution Fund;
128. the Historically Black Colleges and Universities Reserve Fund;
129. the Rural Broadband Assistance Fund;
130. the Digital Inclusion Fund;
131. the Digital Connectivity Fund;
132. the K–9 Compassionate Care Fund;
133. the Maternal and Child Health Population Health Improvement Fund;
134. the Inclusion Fund;
135. the Regional Institution Strategic Enterprise Fund;
136. the Hagerstown Multi–Use Sports and Events Facility Fund;
137. the Pre–Seed Builder Fund;
138. the Resilient Maryland Revolving Loan Fund;
139. the Notary Public Fund;
140. the Health Equity Resource Community Reserve Fund;
141. the Access to Counsel in Evictions Special Fund;
142. the Homeowner Protection Fund;
143. the Maggie McIntosh School Arts Fund;
144. the Climate Catalytic Capital Fund;
145. the Park System Critical Maintenance Fund;
146. the Park System Capital Improvements and Acquisition Fund;
147. the Great Maryland Outdoors Fund;
148. the Abortion Care Clinical Training Program Fund;
149. the Sports Entertainment Facilities Financing Fund;
150. the Major Sports and Entertainment Event Program Fund;
151. the Prince George’s County Blue Line Corridor Facility Fund;
152. the Senator George C. Edwards Fund;
153. the 9–8–8 Trust Fund;
154. the Maryland AIDS Drug Assistance Program Fund;
155. the Local Cybersecurity Support Fund;
156. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
157. the Maryland Makerspace Initiative Fund;
158. the Sustainable Maryland Program Fund;
159. the On–Site Wastewater Professionals Fund;
160. the Child Care Capital Support Revolving Loan Fund;
161. the Maryland New Start Pilot Microloan Program Fund;
162. the Department of General Services Broker Rebate Fee Fund;
163. the Patient Safety Center Fund;
164. the False Claims Fund;
165. the Resiliency Hub Grant Program Fund;
166. the Family and Medical Leave Insurance Fund;
167. the Cannabis Business Assistance Fund;
168. the Cannabis Public Health Fund;
169. the Community Reinvestment and Repair Fund;
170. the Young Adult Service Year Option Pathway Fund;
171. the Maryland Service Year Option Pathway Fund;
172. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
173. the Camden Yards Football Sports Facility Supplemental Financing Fund;
174. the Bus Rapid Transit Fund;
175. the Cannabis Regulation and Enforcement Fund;
176. the Medical Cannabis Compassionate Use Fund;
177. the Behavioral Health Workforce Investment Fund;
178. the Human–Relevant Research Fund;
179. the Equitech Growth Fund;
180. the Maryland Forestry Education Fund;
181. the Transit–Oriented Development Capital Grant and Revolving Loan Fund;
182. the Local Land Trust Revolving Loan Fund;
183. the State Disaster Recovery Fund;
184. the Black Bass Conservation Fund;
185. the Non–Depository Special Fund;
186. the Teacher Retention and Development Fund;
187. the Protecting Against Hate Crimes Grant Fund;
188. the Fallen Transportation Workers Scholarship Fund;
189. the Maryland Geological Survey Fund;
190. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
191. the Rental Assistance for Community School Families Fund;
192. the Community Health and Safety Works Grant Program Fund;
193. the Camden Yards Football Sports Facility Capital Works Fund;
194. the Camden Yards Football Sports Facility Emergency Repair Fund;
195. the ENOUGH Grant Fund;
196. the Talent Innovation Fund;
197. the Climate Technology Founder’s Fund;
198. the Whole Watershed Fund;
199. the Radiation Emergency Response Fund;
200. the Victims of Domestic Violence Program Grant Fund;
201. the Proposed Programs Collaborative Grant Fund;
202. the Maryland Pay Per Apprentice Program Fund;
203. the West North Avenue Development Authority Fund;
204. the Academic Excellence Fund;
205. the Abandoned and Neglected Cemeteries Fund;
206. the Assistive Technology Services Fund;
207. the Private Dam Repair Fund;
208. the Public Health Abortion Grant Program Fund;
209. the Natural Resources Property Maintenance Fund;
210. the Department of Social and Economic Mobility Special Fund; and
211. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE SEPTEMBER 30, 2028 PER CHAPTER 322 OF 2022 //
// EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022 AND CHAPTER 627 OF 2023 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Supplemental Facilities Fund;
109. the Hemp Farming Fund;
110. the Prince George’s County Public–Private Partnership Fund;
111. the Zero–Emission Vehicle School Bus Transition Fund;
112. the Rape Kit Testing Grant Fund;
113. the Pedestrian Safety Fund;
114. the Legal Representation Fund for Title IX Proceedings;
115. the Student Peer Mediation Program Fund;
116. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
117. the Federal Government Employee Assistance Loan Fund;
118. the Racing and Community Development Financing Fund;
119. the Racing and Community Development Facilities Fund;
120. the Supplemental Public School Construction Facilities Fund;
121. the Supplemental Public School Construction Financing Fund;
122. the Nancy K. Kopp Public School Facilities Priority Fund;
123. the Prescription Drug Affordability Fund;
124. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
125. the Michael Erin Busch Sports Fund;
126. the Coordinated Community Supports Partnership Fund;
127. the Opioid Restitution Fund;
128. the Historically Black Colleges and Universities Reserve Fund;
129. the Rural Broadband Assistance Fund;
130. the Digital Inclusion Fund;
131. the Digital Connectivity Fund;
132. the K–9 Compassionate Care Fund;
133. the Maternal and Child Health Population Health Improvement Fund;
134. the Inclusion Fund;
135. the Regional Institution Strategic Enterprise Fund;
136. the Hagerstown Multi–Use Sports and Events Facility Fund;
137. the Pre–Seed Builder Fund;
138. the Resilient Maryland Revolving Loan Fund;
139. the Notary Public Fund;
140. the Health Equity Resource Community Reserve Fund;
141. the Access to Counsel in Evictions Special Fund;
142. the Homeowner Protection Fund;
143. the Maggie McIntosh School Arts Fund;
144. the Climate Catalytic Capital Fund;
145. the Park System Critical Maintenance Fund;
146. the Park System Capital Improvements and Acquisition Fund;
147. the Great Maryland Outdoors Fund;
148. the Abortion Care Clinical Training Program Fund;
149. the Sports Entertainment Facilities Financing Fund;
150. the Major Sports and Entertainment Event Program Fund;
151. the Prince George’s County Blue Line Corridor Facility Fund;
152. the Senator George C. Edwards Fund;
153. the 9–8–8 Trust Fund;
154. the Maryland AIDS Drug Assistance Program Fund;
155. the Local Cybersecurity Support Fund;
156. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
157. the Sustainable Maryland Program Fund;
158. the On–Site Wastewater Professionals Fund;
159. the Child Care Capital Support Revolving Loan Fund;
160. the Maryland New Start Pilot Microloan Program Fund;
161. the Department of General Services Broker Rebate Fee Fund;
162. the Patient Safety Center Fund;
163. the False Claims Fund;
164. the Resiliency Hub Grant Program Fund;
165. the Family and Medical Leave Insurance Fund;
166. the Cannabis Business Assistance Fund;
167. the Cannabis Public Health Fund;
168. the Community Reinvestment and Repair Fund;
169. the Young Adult Service Year Option Pathway Fund;
170. the Maryland Service Year Option Pathway Fund;
171. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
172. the Camden Yards Football Sports Facility Supplemental Financing Fund;
173. the Bus Rapid Transit Fund;
174. the Cannabis Regulation and Enforcement Fund;
175. the Medical Cannabis Compassionate Use Fund;
176. the Behavioral Health Workforce Investment Fund;
177. the Human–Relevant Research Fund;
178. the Equitech Growth Fund;
179. the Maryland Forestry Education Fund;
180. the Transit–Oriented Development Capital Grant and Revolving Loan Fund;
181. the Local Land Trust Revolving Loan Fund;
182. the State Disaster Recovery Fund;
183. the Black Bass Conservation Fund;
184. the Non–Depository Special Fund;
185. the Teacher Retention and Development Fund;
186. the Protecting Against Hate Crimes Grant Fund;
187. the Fallen Transportation Workers Scholarship Fund;
188. the Maryland Geological Survey Fund;
189. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
190. the Rental Assistance for Community School Families Fund;
191. the Community Health and Safety Works Grant Program Fund;
192. the Camden Yards Football Sports Facility Capital Works Fund;
193. the Camden Yards Football Sports Facility Emergency Repair Fund;
194. the ENOUGH Grant Fund;
195. the Talent Innovation Fund;
196. the Climate Technology Founder’s Fund;
197. the Whole Watershed Fund;
198. the Radiation Emergency Response Fund;
199. the Victims of Domestic Violence Program Grant Fund;
200. the Proposed Programs Collaborative Grant Fund;
201. the Maryland Pay Per Apprentice Program Fund;
202. the West North Avenue Development Authority Fund;
203. the Academic Excellence Fund;
204. the Abandoned and Neglected Cemeteries Fund;
205. the Assistive Technology Services Fund;
206. the Private Dam Repair Fund;
207. the Public Health Abortion Grant Program Fund;
208. the Natural Resources Property Maintenance Fund;
209. the Department of Social and Economic Mobility Special Fund; and
210. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE JUNE 30, 2029 PER CHAPTER 485 OF 2022 AND CHAPTER 627 OF 2023 //
// EFFECTIVE UNTIL SEPTEMBER 30, 2029 PER CHAPTERS 215 AND 216 OF 2025 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Supplemental Facilities Fund;
109. the Hemp Farming Fund;
110. the Prince George’s County Public–Private Partnership Fund;
111. the Zero–Emission Vehicle School Bus Transition Fund;
112. the Rape Kit Testing Grant Fund;
113. the Pedestrian Safety Fund;
114. the Legal Representation Fund for Title IX Proceedings;
115. the Student Peer Mediation Program Fund;
116. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
117. the Federal Government Employee Assistance Loan Fund;
118. the Racing and Community Development Financing Fund;
119. the Racing and Community Development Facilities Fund;
120. the Supplemental Public School Construction Facilities Fund;
121. the Supplemental Public School Construction Financing Fund;
122. the Nancy K. Kopp Public School Facilities Priority Fund;
123. the Prescription Drug Affordability Fund;
124. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
125. the Michael Erin Busch Sports Fund;
126. the Coordinated Community Supports Partnership Fund;
127. the Opioid Restitution Fund;
128. the Historically Black Colleges and Universities Reserve Fund;
129. the Rural Broadband Assistance Fund;
130. the Digital Inclusion Fund;
131. the Digital Connectivity Fund;
132. the K–9 Compassionate Care Fund;
133. the Maternal and Child Health Population Health Improvement Fund;
134. the Inclusion Fund;
135. the Regional Institution Strategic Enterprise Fund;
136. the Hagerstown Multi–Use Sports and Events Facility Fund;
137. the Pre–Seed Builder Fund;
138. the Resilient Maryland Revolving Loan Fund;
139. the Notary Public Fund;
140. the Health Equity Resource Community Reserve Fund;
141. the Access to Counsel in Evictions Special Fund;
142. the Homeowner Protection Fund;
143. the Maggie McIntosh School Arts Fund;
144. the Climate Catalytic Capital Fund;
145. the Park System Critical Maintenance Fund;
146. the Park System Capital Improvements and Acquisition Fund;
147. the Great Maryland Outdoors Fund;
148. the Abortion Care Clinical Training Program Fund;
149. the Sports Entertainment Facilities Financing Fund;
150. the Major Sports and Entertainment Event Program Fund;
151. the Prince George’s County Blue Line Corridor Facility Fund;
152. the Senator George C. Edwards Fund;
153. the 9–8–8 Trust Fund;
154. the Maryland AIDS Drug Assistance Program Fund;
155. the Local Cybersecurity Support Fund;
156. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
157. the Sustainable Maryland Program Fund;
158. the On–Site Wastewater Professionals Fund;
159. the Child Care Capital Support Revolving Loan Fund;
160. the Department of General Services Broker Rebate Fee Fund;
161. the Patient Safety Center Fund;
162. the False Claims Fund;
163. the Resiliency Hub Grant Program Fund;
164. the Family and Medical Leave Insurance Fund;
165. the Cannabis Business Assistance Fund;
166. the Cannabis Public Health Fund;
167. the Community Reinvestment and Repair Fund;
168. the Young Adult Service Year Option Pathway Fund;
169. the Maryland Service Year Option Pathway Fund;
170. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
171. the Camden Yards Football Sports Facility Supplemental Financing Fund;
172. the Bus Rapid Transit Fund;
173. the Cannabis Regulation and Enforcement Fund;
174. the Medical Cannabis Compassionate Use Fund;
175. the Behavioral Health Workforce Investment Fund;
176. the Human–Relevant Research Fund;
177. the Equitech Growth Fund;
178. the Maryland Forestry Education Fund;
179. the Local Land Trust Revolving Loan Fund;
180. the State Disaster Recovery Fund;
181. the Black Bass Conservation Fund;
182. the Non–Depository Special Fund;
183. the Teacher Retention and Development Fund;
184. the Protecting Against Hate Crimes Grant Fund;
185. the Fallen Transportation Workers Scholarship Fund;
186. the Maryland Geological Survey Fund;
187. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
188. the Rental Assistance for Community School Families Fund;
189. the Community Health and Safety Works Grant Program Fund;
190. the Camden Yards Football Sports Facility Capital Works Fund;
191. the Camden Yards Football Sports Facility Emergency Repair Fund;
192. the ENOUGH Grant Fund;
193. the Talent Innovation Fund;
194. the Climate Technology Founder’s Fund;
195. the Whole Watershed Fund;
196. the Radiation Emergency Response Fund;
197. the Victims of Domestic Violence Program Grant Fund;
198. the Proposed Programs Collaborative Grant Fund;
199. the Maryland Pay Per Apprentice Program Fund;
200. the West North Avenue Development Authority Fund;
201. the Academic Excellence Fund;
202. the Abandoned and Neglected Cemeteries Fund;
203. the Assistive Technology Services Fund;
204. the Private Dam Repair Fund;
205. the Public Health Abortion Grant Program Fund;
206. the Natural Resources Property Maintenance Fund;
207. the Department of Social and Economic Mobility Special Fund; and
208. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE SEPTEMBER 30, 2029 PER CHAPTERS 215 AND 216 OF 2025 //
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTER 74 OF 2021 AND CHAPTERS 185 AND 186 OF 2024 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Supplemental Facilities Fund;
109. the Hemp Farming Fund;
110. the Prince George’s County Public–Private Partnership Fund;
111. the Zero–Emission Vehicle School Bus Transition Fund;
112. the Rape Kit Testing Grant Fund;
113. the Pedestrian Safety Fund;
114. the Legal Representation Fund for Title IX Proceedings;
115. the Student Peer Mediation Program Fund;
116. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
117. the Federal Government Employee Assistance Loan Fund;
118. the Racing and Community Development Financing Fund;
119. the Racing and Community Development Facilities Fund;
120. the Supplemental Public School Construction Facilities Fund;
121. the Supplemental Public School Construction Financing Fund;
122. the Nancy K. Kopp Public School Facilities Priority Fund;
123. the Prescription Drug Affordability Fund;
124. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
125. the Michael Erin Busch Sports Fund;
126. the Coordinated Community Supports Partnership Fund;
127. the Opioid Restitution Fund;
128. the Historically Black Colleges and Universities Reserve Fund;
129. the Rural Broadband Assistance Fund;
130. the Digital Inclusion Fund;
131. the Digital Connectivity Fund;
132. the K–9 Compassionate Care Fund;
133. the Maternal and Child Health Population Health Improvement Fund;
134. the Inclusion Fund;
135. the Regional Institution Strategic Enterprise Fund;
136. the Hagerstown Multi–Use Sports and Events Facility Fund;
137. the Pre–Seed Builder Fund;
138. the Resilient Maryland Revolving Loan Fund;
139. the Notary Public Fund;
140. the Health Equity Resource Community Reserve Fund;
141. the Access to Counsel in Evictions Special Fund;
142. the Homeowner Protection Fund;
143. the Maggie McIntosh School Arts Fund;
144. the Climate Catalytic Capital Fund;
145. the Park System Critical Maintenance Fund;
146. the Park System Capital Improvements and Acquisition Fund;
147. the Great Maryland Outdoors Fund;
148. the Abortion Care Clinical Training Program Fund;
149. the Sports Entertainment Facilities Financing Fund;
150. the Major Sports and Entertainment Event Program Fund;
151. the Prince George’s County Blue Line Corridor Facility Fund;
152. the Senator George C. Edwards Fund;
153. the 9–8–8 Trust Fund;
154. the Maryland AIDS Drug Assistance Program Fund;
155. the Local Cybersecurity Support Fund;
156. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
157. the Sustainable Maryland Program Fund;
158. the On–Site Wastewater Professionals Fund;
159. the Child Care Capital Support Revolving Loan Fund;
160. the Department of General Services Broker Rebate Fee Fund;
161. the Patient Safety Center Fund;
162. the False Claims Fund;
163. the Resiliency Hub Grant Program Fund;
164. the Family and Medical Leave Insurance Fund;
165. the Cannabis Business Assistance Fund;
166. the Cannabis Public Health Fund;
167. the Community Reinvestment and Repair Fund;
168. the Young Adult Service Year Option Pathway Fund;
169. the Maryland Service Year Option Pathway Fund;
170. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
171. the Camden Yards Football Sports Facility Supplemental Financing Fund;
172. the Bus Rapid Transit Fund;
173. the Cannabis Regulation and Enforcement Fund;
174. the Medical Cannabis Compassionate Use Fund;
175. the Behavioral Health Workforce Investment Fund;
176. the Human–Relevant Research Fund;
177. the Equitech Growth Fund;
178. the Maryland Forestry Education Fund;
179. the Local Land Trust Revolving Loan Fund;
180. the State Disaster Recovery Fund;
181. the Black Bass Conservation Fund;
182. the Non–Depository Special Fund;
183. the Teacher Retention and Development Fund;
184. the Protecting Against Hate Crimes Grant Fund;
185. the Fallen Transportation Workers Scholarship Fund;
186. the Maryland Geological Survey Fund;
187. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
188. the Rental Assistance for Community School Families Fund;
189. the Community Health and Safety Works Grant Program Fund;
190. the Camden Yards Football Sports Facility Capital Works Fund;
191. the Camden Yards Football Sports Facility Emergency Repair Fund;
192. the ENOUGH Grant Fund;
193. the Talent Innovation Fund;
194. the Climate Technology Founder’s Fund;
195. the Whole Watershed Fund;
196. the Radiation Emergency Response Fund;
197. the Victims of Domestic Violence Program Grant Fund;
198. the Proposed Programs Collaborative Grant Fund;
199. the Maryland Pay Per Apprentice Program Fund;
200. the Academic Excellence Fund;
201. the Abandoned and Neglected Cemeteries Fund;
202. the Assistive Technology Services Fund;
203. the Private Dam Repair Fund;
204. the Public Health Abortion Grant Program Fund;
205. the Natural Resources Property Maintenance Fund;
206. the Department of Social and Economic Mobility Special Fund; and
207. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE JUNE 30, 2030 PER CHAPTER 74 OF 2021 //
// EFFECTIVE UNTIL DECEMBER 31, 2030 PER CHAPTER 615 OF 2025 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Supplemental Facilities Fund;
109. the Hemp Farming Fund;
110. the Prince George’s County Public–Private Partnership Fund;
111. the Zero–Emission Vehicle School Bus Transition Fund;
112. the Rape Kit Testing Grant Fund;
113. the Pedestrian Safety Fund;
114. the Legal Representation Fund for Title IX Proceedings;
115. the Student Peer Mediation Program Fund;
116. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
117. the Federal Government Employee Assistance Loan Fund;
118. the Racing and Community Development Financing Fund;
119. the Racing and Community Development Facilities Fund;
120. the Supplemental Public School Construction Facilities Fund;
121. the Supplemental Public School Construction Financing Fund;
122. the Nancy K. Kopp Public School Facilities Priority Fund;
123. the Prescription Drug Affordability Fund;
124. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
125. the Michael Erin Busch Sports Fund;
126. the Coordinated Community Supports Partnership Fund;
127. the Opioid Restitution Fund;
128. the Historically Black Colleges and Universities Reserve Fund;
129. the K–9 Compassionate Care Fund;
130. the Maternal and Child Health Population Health Improvement Fund;
131. the Inclusion Fund;
132. the Regional Institution Strategic Enterprise Fund;
133. the Hagerstown Multi–Use Sports and Events Facility Fund;
134. the Pre–Seed Builder Fund;
135. the Resilient Maryland Revolving Loan Fund;
136. the Notary Public Fund;
137. the Health Equity Resource Community Reserve Fund;
138. the Access to Counsel in Evictions Special Fund;
139. the Homeowner Protection Fund;
140. the Maggie McIntosh School Arts Fund;
141. the Climate Catalytic Capital Fund;
142. the Park System Critical Maintenance Fund;
143. the Park System Capital Improvements and Acquisition Fund;
144. the Great Maryland Outdoors Fund;
145. the Abortion Care Clinical Training Program Fund;
146. the Sports Entertainment Facilities Financing Fund;
147. the Major Sports and Entertainment Event Program Fund;
148. the Prince George’s County Blue Line Corridor Facility Fund;
149. the Senator George C. Edwards Fund;
150. the 9–8–8 Trust Fund;
151. the Maryland AIDS Drug Assistance Program Fund;
152. the Local Cybersecurity Support Fund;
153. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
154. the Sustainable Maryland Program Fund;
155. the On–Site Wastewater Professionals Fund;
156. the Child Care Capital Support Revolving Loan Fund;
157. the Department of General Services Broker Rebate Fee Fund;
158. the Patient Safety Center Fund;
159. the False Claims Fund;
160. the Resiliency Hub Grant Program Fund;
161. the Family and Medical Leave Insurance Fund;
162. the Cannabis Business Assistance Fund;
163. the Cannabis Public Health Fund;
164. the Community Reinvestment and Repair Fund;
165. the Young Adult Service Year Option Pathway Fund;
166. the Maryland Service Year Option Pathway Fund;
167. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
168. the Camden Yards Football Sports Facility Supplemental Financing Fund;
169. the Bus Rapid Transit Fund;
170. the Cannabis Regulation and Enforcement Fund;
171. the Medical Cannabis Compassionate Use Fund;
172. the Behavioral Health Workforce Investment Fund;
173. the Human–Relevant Research Fund;
174. the Equitech Growth Fund;
175. the Maryland Forestry Education Fund;
176. the Local Land Trust Revolving Loan Fund;
177. the State Disaster Recovery Fund;
178. the Black Bass Conservation Fund;
179. the Non–Depository Special Fund;
180. the Protecting Against Hate Crimes Grant Fund;
181. the Fallen Transportation Workers Scholarship Fund;
182. the Maryland Geological Survey Fund;
183. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
184. the Rental Assistance for Community School Families Fund;
185. the Community Health and Safety Works Grant Program Fund;
186. the Camden Yards Football Sports Facility Capital Works Fund;
187. the Camden Yards Football Sports Facility Emergency Repair Fund;
188. the ENOUGH Grant Fund;
189. the Talent Innovation Fund;
190. the Climate Technology Founder’s Fund;
191. the Whole Watershed Fund;
192. the Radiation Emergency Response Fund;
193. the Victims of Domestic Violence Program Grant Fund;
194. the Proposed Programs Collaborative Grant Fund;
195. the Maryland Pay Per Apprentice Program Fund;
196. the Academic Excellence Fund;
197. the Abandoned and Neglected Cemeteries Fund;
198. the Assistive Technology Services Fund;
199. the Private Dam Repair Fund;
200. the Public Health Abortion Grant Program Fund;
201. the Natural Resouces Property Maintenance Fund;
202. the Department of Social and Economic Mobility Special Fund; and
203. the Population Health Improvement Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE DECEMBER 31, 2030 PER CHAPTER 615 OF 2025 //
// EFFECTIVE UNTIL SEPTEMBER 30, 2032 PER CHAPTER 92 OF 2022 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. the Spay/Neuter Fund;
73. State Brain Injury Trust Fund;
74. the Baltimore City Public School Construction Facilities Fund;
75. the Baltimore City Public School Construction Financing Fund;
76. the Prekindergarten Expansion Fund;
77. the Energy–Efficient Homes Construction Fund;
78. the Maryland E–Nnovation Initiative Fund;
79. the Innovation Investment Fund;
80. the Regional Advanced Manufacturing Partnership of Maryland Fund;
81. the Newborn Screening Program Fund;
82. the Economic Development Marketing Fund;
83. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
84. the Baltimore Regional Neighborhood Initiative Program Fund;
85. the Strategic Demolition and Smart Growth Impact Fund;
86. the Seed Community Development Anchor Institution Fund;
87. the Next Generation Scholars of Maryland Program Fund;
88. the Construction Education and Innovation Fund;
89. the Uninsured Motorist Education and Enforcement Fund;
90. the Performance Incentive Grant Fund;
91. the Internet Crimes Against Children Task Force Fund;
92. the Community Program Fund;
93. the Addiction Treatment Divestiture Fund;
94. the Maryland Energy Innovation Fund;
95. the State Lakes Protection and Restoration Fund;
96. the National Capital Strategic Economic Development Fund;
97. the Advance Directive Program Fund;
98. the Make Office Vacancies Extinct Matching Fund;
99. the Blueprint for Maryland’s Future Fund;
100. the School Construction Revolving Loan Fund;
101. the Safe Schools Fund;
102. the Maryland Violence Intervention and Prevention Program Fund;
103. the Computing Education and Professional Development Fund;
104. the Maryland Prenatal and Infant Care Grant Program Fund;
105. the Healthy School Facility Fund;
106. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
107. the Maryland Police Training and Standards Commission Fund;
108. the Supplemental Facilities Fund;
109. the Hemp Farming Fund;
110. the Prince George’s County Public–Private Partnership Fund;
111. the Zero–Emission Vehicle School Bus Transition Fund;
112. the Rape Kit Testing Grant Fund;
113. the Pedestrian Safety Fund;
114. the Legal Representation Fund for Title IX Proceedings;
115. the Student Peer Mediation Program Fund;
116. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
117. the Federal Government Employee Assistance Loan Fund;
118. the Racing and Community Development Financing Fund;
119. the Racing and Community Development Facilities Fund;
120. the Supplemental Public School Construction Facilities Fund;
121. the Supplemental Public School Construction Financing Fund;
122. the Nancy K. Kopp Public School Facilities Priority Fund;
123. the Prescription Drug Affordability Fund;
124. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
125. the Michael Erin Busch Sports Fund;
126. the Coordinated Community Supports Partnership Fund;
127. the Opioid Restitution Fund;
128. the Historically Black Colleges and Universities Reserve Fund;
129. the K–9 Compassionate Care Fund;
130. the Maternal and Child Health Population Health Improvement Fund;
131. the Inclusion Fund;
132. the Regional Institution Strategic Enterprise Fund;
133. the Hagerstown Multi–Use Sports and Events Facility Fund;
134. the Pre–Seed Builder Fund;
135. the Resilient Maryland Revolving Loan Fund;
136. the Notary Public Fund;
137. the Health Equity Resource Community Reserve Fund;
138. the Access to Counsel in Evictions Special Fund;
139. the Homeowner Protection Fund;
140. the Maggie McIntosh School Arts Fund;
141. the Climate Catalytic Capital Fund;
142. the Park System Critical Maintenance Fund;
143. the Park System Capital Improvements and Acquisition Fund;
144. the Great Maryland Outdoors Fund;
145. the Abortion Care Clinical Training Program Fund;
146. the Sports Entertainment Facilities Financing Fund;
147. the Major Sports and Entertainment Event Program Fund;
148. the Prince George’s County Blue Line Corridor Facility Fund;
149. the Senator George C. Edwards Fund;
150. the 9–8–8 Trust Fund;
151. the Maryland AIDS Drug Assistance Program Fund;
152. the Local Cybersecurity Support Fund;
153. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
154. the Sustainable Maryland Program Fund;
155. the On–Site Wastewater Professionals Fund;
156. the Child Care Capital Support Revolving Loan Fund;
157. the Department of General Services Broker Rebate Fee Fund;
158. the Patient Safety Center Fund;
159. the False Claims Fund;
160. the Resiliency Hub Grant Program Fund;
161. the Family and Medical Leave Insurance Fund;
162. the Cannabis Business Assistance Fund;
163. the Cannabis Public Health Fund;
164. the Community Reinvestment and Repair Fund;
165. the Young Adult Service Year Option Pathway Fund;
166. the Maryland Service Year Option Pathway Fund;
167. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
168. the Camden Yards Football Sports Facility Supplemental Financing Fund;
169. the Bus Rapid Transit Fund;
170. the Cannabis Regulation and Enforcement Fund;
171. the Medical Cannabis Compassionate Use Fund;
172. the Behavioral Health Workforce Investment Fund;
173. the Human–Relevant Research Fund;
174. the Equitech Growth Fund;
175. the Maryland Forestry Education Fund;
176. the Local Land Trust Revolving Loan Fund;
177. the State Disaster Recovery Fund;
178. the Black Bass Conservation Fund;
179. the Non–Depository Special Fund;
180. the Protecting Against Hate Crimes Grant Fund;
181. the Fallen Transportation Workers Scholarship Fund;
182. the Maryland Geological Survey Fund;
183. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
184. the Rental Assistance for Community School Families Fund;
185. the Community Health and Safety Works Grant Program Fund;
186. the Camden Yards Football Sports Facility Capital Works Fund;
187. the Camden Yards Football Sports Facility Emergency Repair Fund;
188. the ENOUGH Grant Fund;
189. the Talent Innovation Fund;
190. the Climate Technology Founder’s Fund;
191. the Whole Watershed Fund;
192. the Radiation Emergency Response Fund;
193. the Victims of Domestic Violence Program Grant Fund;
194. the Proposed Programs Collaborative Grant Fund;
195. the Maryland Pay Per Apprentice Program Fund;
196. the Academic Excellence Fund;
197. the Abandoned and Neglected Cemeteries Fund;
198. the Assistive Technology Services Fund;
199. the Private Dam Repair Fund;
200. the Public Health Abortion Grant Program Fund;
201. the Natural Resouces Property Maintenance Fund; and
202. the Department of Social and Economic Mobility Special Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
// EFFECTIVE SEPTEMBER 30, 2032 PER CHAPTER 92 OF 2022 //
(a) (1) Except as otherwise specifically provided by law or by regulation of the Treasurer, the Treasurer shall credit to the General Fund any interest on or other income from State money that the Treasurer invests.
(2) (i) This paragraph does not apply in fiscal years 2024 through 2028.
(ii) Notwithstanding any other provision of law, and unless inconsistent with a federal law, grant agreement, or other federal requirement or with the terms of a gift or settlement agreement, net interest on all State money allocated by the State Treasurer under this section to special funds or accounts, and otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of the State.
(iii) The provisions of subparagraph (ii) of this paragraph do not apply to the following funds:
1. Maryland Housing Loan Funds of 1976, 1978, 1979, and 1984;
2. Microsoft Cost Share Fund;
3. Subsequent Injury Fund;
4. Uninsured Employers’ Fund;
5. Jane E. Lawton Conservation Loan Program;
6. Energy Overcharge Restitution Fund;
7. PEPCO/Connectiv Settlement Fund;
8. Baseball Capital Improvements Fund;
9. State Victims of Crime Fund;
10. Juvenile Accountability Incentive Block Grant Fund;
11. Victim and Witness Protection and Relocation Fund;
12. Unclaimed Restitution – Victims of Crime;
13. Justice Assistance Grant;
14. Byrne Justice Assistance Grant;
15. Maryland Election Modernization Fund;
16. Scriven Estate Fund;
17. Volunteer Company Assistance Fund;
18. Radoff Memorial Fund;
19. Archives Endowment Account within the Archives Fund;
20. Ellefson Endowment Fund;
21. Albert C. Ritchie Memorial Fund;
22. Senior Prescription Drug Assistance Program Fund;
23. Fair Campaign Financing Fund;
24. State Employees and Retirees Health and Welfare Benefits Fund;
25. Major Information Technology Development Project Fund;
26. State Retirement Agency Funds;
27. Postretirement Health Benefits Trust Fund;
28. Maryland Emergency Medical System Operations Fund;
29. State Wildlife Management and Protection Fund;
30. Fisheries Management and Protection Fund;
31. Ocean Beach Replenishment Fund;
32. Community Services Trust Fund;
33. Waiting List Equity Fund;
34. Health Care Coverage Fund;
35. Health Services Cost Review Commission Fund;
36. Hospital Uncompensated Care Fund;
37. funds in the accounts of Morgan State University;
38. funds in the accounts of St. Mary’s College of Maryland;
39. funds in the accounts of the University System of Maryland;
40. Maryland Prepaid College Trust Fund;
41. Nurse Support Program Assistance Fund;
42. funds in the accounts of the Baltimore City Community College;
43. Education Trust Fund;
44. Section 8 construction and administration funds administered by the Department of Housing and Community Development;
45. MacArthur Grant Fund;
46. all special funds within the Department of Commerce;
47. Maryland Water Quality Revolving Loan Fund;
48. Maryland Drinking Water Revolving Loan Fund;
49. Bay Restoration Fund;
50. Migratory Game Bird Fund;
51. Deer Stamp Fund;
52. Wildlife Habitat Incentive Fund;
53. Fisheries Research and Development Fund;
54. Strategic Energy Investment Fund;
55. Criminal Injuries Compensation Fund;
56. 50% of the interest from the 9–1–1 Trust Fund;
57. all accounts within the State Reserve Fund;
58. local revenue accounts collected by the Judiciary;
59. Assistive Technology Loan Fund;
60. Veterans Trust Fund;
61. Transportation Trust Fund;
62. Foreclosed Property Registry Fund;
63. Asbestos Worker Protection Fund;
64. Maryland Innovation Initiative Fund;
65. Family Security Trust Fund, subject to § 7–4A–03(d) of the Health Occupations Article;
66. Baltimore City Community Enhancement Transit–Oriented Development Fund;
67. the Maryland Legal Services Corporation Fund;
68. Mortgage Loan Servicing Practices Settlement Fund;
69. Maryland Offshore Wind Business Development Fund;
70. the Maryland First Scholarship Fund;
71. Natalie M. LaPrade Medical Cannabis Commission Fund;
72. State Brain Injury Trust Fund;
73. the Baltimore City Public School Construction Facilities Fund;
74. the Baltimore City Public School Construction Financing Fund;
75. the Prekindergarten Expansion Fund;
76. the Energy–Efficient Homes Construction Fund;
77. the Maryland E–Nnovation Initiative Fund;
78. the Innovation Investment Fund;
79. the Regional Advanced Manufacturing Partnership of Maryland Fund;
80. the Newborn Screening Program Fund;
81. the Economic Development Marketing Fund;
82. the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund;
83. the Baltimore Regional Neighborhood Initiative Program Fund;
84. the Strategic Demolition and Smart Growth Impact Fund;
85. the Seed Community Development Anchor Institution Fund;
86. the Next Generation Scholars of Maryland Program Fund;
87. the Construction Education and Innovation Fund;
88. the Uninsured Motorist Education and Enforcement Fund;
89. the Performance Incentive Grant Fund;
90. the Internet Crimes Against Children Task Force Fund;
91. the Community Program Fund;
92. the Addiction Treatment Divestiture Fund;
93. the Maryland Energy Innovation Fund;
94. the State Lakes Protection and Restoration Fund;
95. the National Capital Strategic Economic Development Fund;
96. the Advance Directive Program Fund;
97. the Make Office Vacancies Extinct Matching Fund;
98. the Blueprint for Maryland’s Future Fund;
99. the School Construction Revolving Loan Fund;
100. the Safe Schools Fund;
101. the Maryland Violence Intervention and Prevention Program Fund;
102. the Computing Education and Professional Development Fund;
103. the Maryland Prenatal and Infant Care Grant Program Fund;
104. the Healthy School Facility Fund;
105. the Natalie M. LaPrade Medical Cannabis Compassionate Use Fund;
106. the Maryland Police Training and Standards Commission Fund;
107. the Supplemental Facilities Fund;
108. the Hemp Farming Fund;
109. the Prince George’s County Public–Private Partnership Fund;
110. the Zero–Emission Vehicle School Bus Transition Fund;
111. the Rape Kit Testing Grant Fund;
112. the Pedestrian Safety Fund;
113. the Legal Representation Fund for Title IX Proceedings;
114. the Student Peer Mediation Program Fund;
115. the Markell Hendricks Youth Crime Prevention and Diversion Parole Fund;
116. the Federal Government Employee Assistance Loan Fund;
117. the Racing and Community Development Financing Fund;
118. the Racing and Community Development Facilities Fund;
119. the Supplemental Public School Construction Facilities Fund;
120. the Supplemental Public School Construction Financing Fund;
121. the Nancy K. Kopp Public School Facilities Priority Fund;
122. the Prescription Drug Affordability Fund;
123. the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund;
124. the Michael Erin Busch Sports Fund;
125. the Coordinated Community Supports Partnership Fund;
126. the Opioid Restitution Fund;
127. the Historically Black Colleges and Universities Reserve Fund;
128. the K–9 Compassionate Care Fund;
129. the Maternal and Child Health Population Health Improvement Fund;
130. the Inclusion Fund;
131. the Regional Institution Strategic Enterprise Fund;
132. the Hagerstown Multi–Use Sports and Events Facility Fund;
133. the Pre–Seed Builder Fund;
134. the Resilient Maryland Revolving Loan Fund;
135. the Notary Public Fund;
136. the Health Equity Resource Community Reserve Fund;
137. the Access to Counsel in Evictions Special Fund;
138. the Homeowner Protection Fund;
139. the Maggie McIntosh School Arts Fund;
140. the Climate Catalytic Capital Fund;
141. the Park System Critical Maintenance Fund;
142. the Park System Capital Improvements and Acquisition Fund;
143. the Great Maryland Outdoors Fund;
144. the Abortion Care Clinical Training Program Fund;
145. the Sports Entertainment Facilities Financing Fund;
146. the Major Sports and Entertainment Event Program Fund;
147. the Prince George’s County Blue Line Corridor Facility Fund;
148. the Senator George C. Edwards Fund;
149. the 9–8–8 Trust Fund;
150. the Maryland AIDS Drug Assistance Program Fund;
151. the Local Cybersecurity Support Fund;
152. the Maryland Loan Assistance Repayment Program Fund for Nurses and Nursing Support Staff;
153. the Sustainable Maryland Program Fund;
154. the On–Site Wastewater Professionals Fund;
155. the Child Care Capital Support Revolving Loan Fund;
156. the Department of General Services Broker Rebate Fee Fund;
157. the Patient Safety Center Fund;
158. the False Claims Fund;
159. the Resiliency Hub Grant Program Fund;
160. the Family and Medical Leave Insurance Fund;
161. the Cannabis Business Assistance Fund;
162. the Cannabis Public Health Fund;
163. the Community Reinvestment and Repair Fund;
164. the Young Adult Service Year Option Pathway Fund;
165. the Maryland Service Year Option Pathway Fund;
166. the Camden Yards Baseball Sports Facility Supplemental Financing Fund;
167. the Camden Yards Football Sports Facility Supplemental Financing Fund;
168. the Bus Rapid Transit Fund;
169. the Cannabis Regulation and Enforcement Fund;
170. the Medical Cannabis Compassionate Use Fund;
171. the Behavioral Health Workforce Investment Fund;
172. the Human–Relevant Research Fund;
173. the Equitech Growth Fund;
174. the Maryland Forestry Education Fund;
175. the Local Land Trust Revolving Loan Fund;
176. the State Disaster Recovery Fund;
177. the Black Bass Conservation Fund;
178. the Non–Depository Special Fund;
179. the Protecting Against Hate Crimes Grant Fund;
180. the Fallen Transportation Workers Scholarship Fund;
181. the Maryland Geological Survey Fund;
182. the Access to Attorneys, Advocates, and Consultants for Special Education Fund;
183. the Rental Assistance for Community School Families Fund;
184. the Community Health and Safety Works Grant Program Fund;
185. the Camden Yards Football Sports Facility Capital Works Fund;
186. the Camden Yards Football Sports Facility Emergency Repair Fund;
187. the ENOUGH Grant Fund;
188. the Talent Innovation Fund;
189. the Climate Technology Founder’s Fund;
190. the Whole Watershed Fund;
191. the Radiation Emergency Response Fund;
192. the Victims of Domestic Violence Program Grant Fund;
193. the Proposed Programs Collaborative Grant Fund;
194. the Maryland Pay Per Apprentice Program Fund;
195. the Academic Excellence Fund;
196. the Abandoned and Neglected Cemeteries Fund;
197. the Assistive Technology Services Fund;
198. the Private Dam Repair Fund;
199. the Public Health Abortion Grant Program Fund;
200. the Natural Resources Property Maintenance Fund; and
201. the Department of Social and Economic Mobility Special Fund.
(b) (1) Notwithstanding any other provision of law, the Treasurer may invest separately or commingled in 1 or more pools amounts to be invested by law or regulation for State agencies.
(2) The Treasurer shall allocate net earnings on amounts commingled in a pool to the appropriate State agencies entitled to receive interest earnings under subsection (a) of this section.
(a) The Treasurer may make an agreement with a financial institution as to terms, conditions, and compensation for a banking service that the financial institution provides to the State or any State agency.
(b) An agreement under this section:
(1) shall specify the charges to be paid for a banking service;
(2) may allow the deposit of money with the financial institution in an amount determined by the Treasurer that permits the financial institution to earn sufficient compensation to offset the charges for its banking service; and
(3) shall require the financial institution to invest any money on deposit that exceeds any amount allowed by the Treasurer under item (2) of this subsection and unless otherwise specifically provided by law to pay to the State the proceeds of the investment to the General Fund of the State.
(c) The Treasurer, with the concurrence of the Comptroller, may authorize a State agency to open and maintain an account with a financial institution that has an agreement with the Treasurer under this section.
(d) An account established under subsection (c) of this section shall comply with the provisions of this subtitle and regulations and policies adopted by the Treasurer and the Comptroller.
(a) In this subtitle the following words have the meanings indicated.
(b) “Proposed budget” means:
(1) the budget bill; and
(2) the budget books and other documents that support the budget bill.
(c) “Secretary” means the Secretary of Budget and Management.
(a) The General Assembly desires that, during preparation of a proposed budget, the Governor review, thoroughly and in detail, the recommendations of the Spending Affordability Committee.
(b) To have the complete financial program of the Governor early in a regular session, the General Assembly desires that the Governor:
(1) submit with the proposed budget for a fiscal year:
(i) the Governor’s complete financial program for that fiscal year; and
(ii) each bond or revenue bill proposed to carry out the program; and
(2) use a supplemental budget amendment only to:
(i) correct a mechanical error in the proposed budget; or
(ii) provide funding for legislation enacted during the session.
(a) (1) The Secretary shall continually conduct studies on the needs of units of the Executive Branch of the State government and of private entities to which the State appropriates money.
(2) To obtain the information that the Secretary wants in estimating the needs of the unit or entity, the Secretary may:
(i) question any officer or employee of the unit or entity; and
(ii) examine the records of the unit or entity.
(b) The Secretary shall:
(1) continually compare the needs of the units of the Executive Branch of the State government and of the private entities with the revenues that are collected;
(2) prepare estimates of revenues that will be available for the State budget;
(3) prepare any other estimates of revenues that the Governor requests;
(4) study the revenue structure of the State;
(5) evaluate the sources of State revenues; and
(6) recommend to the Governor:
(i) appropriate changes in the revenue structure of the State; and
(ii) new sources of State revenues.
(c) (1) The studies of the units of the Executive Branch of the State government shall include:
(i) program analyses; and
(ii) careful consideration of the administration, organization, functions, and duties of the units, to identify duplication or overlap.
(2) On the basis of the studies, the Secretary shall report to the Governor on changes that the Secretary believes would result in economy or efficiency or otherwise would be in the State’s best interest, including:
(i) elimination or reduction of State programs;
(ii) abolition of positions;
(iii) changes in procedures; and
(iv) reorganization or consolidation of units.
(3) The Secretary shall send a copy of each report under this subsection, subject to § 2-1257 of the State Government Article, to the Executive Director of the Department of Legislative Services.
(a) (1) The Secretary shall prepare for the Governor a draft of the proposed budget.
(2) The draft shall:
(i) be comprehensive;
(ii) eliminate duplication and conflict; and
(iii) include each item that the Governor is required by law to include in a proposed budget.
(b) The Secretary shall include in the draft items for capital improvements.
(c) The Secretary may specify:
(1) the form to be used by a unit of the Executive Branch of the State government or a private entity to request an appropriation from the State;
(2) information that must be submitted with the form; and
(3) the time for submission of the form.
Each proposed budget shall be classified as and in the form and with the detail that the Governor or law requires.
The Governor shall submit to the General Assembly by the third Wednesday in January each year, except in the case of a newly elected Governor, and then not later than 10 days after the convening of the General Assembly, each bond or revenue bill necessary to submit a balanced budget and to carry out the proposed budget for the next fiscal year.
The Secretary shall publish on the Department of Budget and Management’s website, in a machine–readable format, an itemized statement, linked to the proposed State budget, of revenues collected by the State that are dedicated by law to a special fund, including:
(1) the name of each special fund;
(2) a description of the purpose of the special fund;
(3) the source of revenue for the special fund;
(4) the amount deposited into the special fund in the previous fiscal year; and
(5) the balance of revenues in the special fund at the close of the previous fiscal year.
(a) In accordance with the Maryland Constitution and other law, the Governor shall include in each budget bill:
(1) an appropriation to pay the principal of and interest on the State debt;
(2) without revision, the appropriations requested for public schools, as certified by the State Superintendent of Schools;
(3) without revision, the appropriations requested for the Legislative Branch of the State government, as certified by the presiding officers of the General Assembly;
(4) without revision, the appropriations requested for the Judicial Branch of the State government, as certified by the Chief Justice of the Supreme Court of Maryland;
(5) the appropriations requested by the Governor for the Executive Branch of the State government;
(6) the appropriations required by law to be included with the appropriations for the Executive Branch;
(7) appropriations for the salaries required by law to be paid by the State;
(8) without revision, appropriations for the Accountability and Implementation Board, as jointly certified by the presiding officers of the General Assembly and the Governor; and
(9) any other appropriations required by the Maryland Constitution or other law to be included in the budget bill.
(b) The Governor shall use the current salary plan of the Secretary of Budget and Management as the basis for the appropriations to pay those salaries to which the plan applies.
(a) Each budget bill shall contain a separate section that includes:
(1) the proposed salary schedule for the executive pay plan established under Title 8, Subtitle 1 of the State Personnel and Pensions Article, which shall be in effect for that fiscal year; and
(2) a listing of the job classification and title of each position in the executive pay plan, including the proposed salary grade for each position.
(b) In addition to the separate section required under subsection (a) of this section, each budget bill shall contain a separate section that includes:
(1) a listing, by the unit of State government, of the job classification of each position with flat rate or per diem compensation in excess of the minimum salary in the proposed executive pay plan. The listing shall include, but not be limited to, constitutional officers, positions for which salaries by law are determined by judicial salaries, and positions for which salaries are determined by an agency with independent salary setting authority that have not been included in the executive pay plan;
(2) the number of positions in each of those job classifications; and
(3) the amount of the salary proposed for each of those job classifications.
(c) (1) The salary schedule and proposed salary grade, as provided in accordance with subsection (a) of this section, shall be subject to approval by the General Assembly.
(2) The proposed salary for job classifications, as provided in accordance with subsection (b) of this section, shall be subject to approval by the General Assembly.
(a) (1) In this section the following words have the meanings indicated.
(2) “Capital expenditure” means an expenditure made by the Department of Transportation for:
(i) the construction, reconstruction, or rehabilitation of a transportation facility, as defined in § 3-101(l) of the Transportation Article; or
(ii) capital equipment as defined by the Secretary of Transportation.
(3) “Modal administration” has the meaning stated in § 1-101 of the Transportation Article.
(4) “Operating expenditure” means an expenditure that is made by the Department of Transportation, including the Office of the Secretary or a modal administration, and that is not a capital expenditure.
(b) (1) Each budget bill shall set forth as part of the appropriation for the Office of the Secretary of Transportation and for each modal administration, separate items for:
(i) capital expenditures; and
(ii) operating expenditures.
(2) The budget books shall set forth, for information, a summary of the capital expenditures and operating expenditures, as defined by the Secretary of Transportation, for the Maryland Transportation Authority.
(3) The budget books for a fiscal year shall include the appropriation for the preceding fiscal year for each modal administration, as provided in the Consolidated Transportation Program.
(c) On submission of the budget bill to the General Assembly, the Department of Transportation shall report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Committee on Ways and Means, in accordance with § 2–1257 of the State Government Article, on the estimated costs for planning, engineering, right–of–way acquisition, and construction for all projects for which planning funds were added to the budget by the General Assembly during the previous three legislative sessions.
If the U.S. General Services Administration applies to Prince George’s County or the State for a permit associated with the relocation of the Federal Bureau of Investigation Headquarters to Prince George’s County, the Governor shall include in the annual operating or capital budget bill an appropriation of at least $200,000,000 for site redevelopment and to improve transportation infrastructure for the Federal Bureau of Investigation Headquarters relocation project.
(a) The Governor shall include in each budget bill a lump sum appropriation to the University College of the University of Maryland.
(b) An appropriation under this section for a fiscal year shall equal the amount that University College estimates it will receive during the fiscal year from tuitions, fees, gifts, and grants and interest on those revenues.
(c) (1) The supporting documents for each budget bill shall include the annual financial information statement that University College prepares.
(2) The supporting documents need not include any other information about the appropriation under this section.
(a) Unless specifically authorized by law, the Governor may not submit a budget bill that changes a State statute.
(b) Subject to the limitations in the Maryland Constitution, a statute that sets a salary is superseded by passage of a budget bill that alters the salary.
(a) The purposes of this section are to:
(1) carry out the purposes of the laws relating to motor vehicle licensing and motor vehicle fuel taxes; and
(2) prevent diversions of revenues that those laws generate.
(b) In a budget bill, the Governor may use the revenues that are generated by motor vehicle licensing and by motor vehicle fuel taxes, including fines and penalties, only to:
(1) construct, reconstruct, and maintain bridges, highways, roads, and streets;
(2) pay the interest on and principal of bonds that have been issued to finance the construction of bridges, highways, roads, and streets; or
(3) enforce those laws.
(a) (1) In this section the following words have the meanings indicated.
(2) “Cancer Program” means the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article.
(3) “Tobacco Program” means the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article.
(b) Each budget bill shall contain a separate section that includes the appropriation for:
(1) each Component of the Tobacco Program;
(2) each Component of the Cancer Program;
(3) the Tri–County Council for Southern Maryland, in accordance with § 13–611 of the Economic Development Article; and
(4) any other program that is funded with money from the Cigarette Restitution Fund established under § 7–317 of this title.
The costs of archaeological work incurred in a State project on a site of archaeological or historical significance shall be included in the budget bill of which the project is a part.
(a) Except as provided in subsection (b) of this section, when a proposed budget includes expenditure reductions to be applied across multiple Executive Branch agencies, the budget bill shall specify how the savings will be achieved and with the exception of position abolitions and items requiring collective bargaining shall include a separate schedule for each reduction allocating the reduction for each agency in a level of detail not less than the 3–digit R*Stars financial agency code and by each fund type.
(b) For fiscal year 2026 only, when a proposed budget includes expenditure reductions to be applied across multiple Executive Branch agencies, the budget bill may specify how the savings will be achieved and with the exception of position abolitions and items requiring collective bargaining may include a separate schedule for each reduction allocating the reduction for each agency in a level of detail not less than the 3–digit R*Stars financial agency code and by each fund type.
(a) Except as provided in subsection (b) of this section, a proposed appropriation in the annual budget bill for a unit of State government that the General Assembly has struck or reduced may not be restored for the same purpose as originally proposed.
(b) A proposed appropriation that the General Assembly has struck or reduced may be restored for the same purpose as originally proposed if the General Assembly, in striking or reducing the appropriation, expressly authorized the restoration.
(a) On submission of the budget bill to the presiding officers of the General Assembly, the Governor shall provide the supporting material specified in this section.
(b) The Governor shall provide budget books that include the information required in this section.
(c) The budget books for a fiscal year shall:
(1) (i) state each source of State revenues for the year, from which the proposed appropriations are to be paid; and
(ii) state the amount that the Governor estimates will be collected from each source;
(2) contain a summary of the annuity bond accounts of the State as of the end of the last full fiscal year; and
(3) (i) include a copy of the statewide cost allocation plan filed with the federal government for federal reimbursement of the costs of indirect State services that benefit federally funded programs; and
(ii) list, by unit of the State government, the amount of reimbursement received under the plan during the last full fiscal year.
(d) The budget books shall contain personnel detail in a section that, by unit of the State government, sets forth, for each program or purpose of that unit:
(1) the total number of officers and employees and the number in each job classification:
(i) authorized in the State budget for the last full fiscal year and the current fiscal year; and
(ii) requested for the next fiscal year; and
(2) an itemized statement of the expenditures for contractual services, supplies and materials, equipment, land and structures, fixed charges, and other operating expenses:
(i) made in the last full fiscal year;
(ii) authorized in the State budget for the current fiscal year; and
(iii) requested for the next fiscal year.
(e) The following information shall be provided on the website of the Department of Budget and Management simultaneously with the submission of the annual State budget:
(1) the StateStat or managing for results agency strategic plan required under this article, limited to a description of the agency’s mission, goals, objectives, and performance measures; and
(2) personnel detail, by unit of State government, that sets forth, for each program or purpose of the unit, the total amount for salaries of officers and employees and the amount for salaries of each job classification:
(i) spent during the last full fiscal year;
(ii) authorized in the State budget for the current fiscal year; and
(iii) requested for the next fiscal year.
(f) Whenever a proposed budget exceeds the recommendations of the Spending Affordability Committee, the budget books shall:
(1) indicate the degree to which the proposed budget and recommendations differ; and
(2) set forth the Governor’s reasons for exceeding the recommendations.
(g) The budget books shall include supporting data and the results of the calculations required under § 5–202(l) of the Education Article.
(h) The information required under this section shall be provided on the website of the Department of Budget and Management simultaneously with the submission of the annual State budget.
(a) In this section, “machine–readable format” means a comma–separated values file format.
(b) On submission of the budget bill to the presiding officers of the General Assembly, the Governor shall provide the following number of copies of the budget books required under § 7–115 of this subtitle:
(1) one copy to each member of the General Assembly; and
(2) 80 copies to the Department of Legislative Services.
(c) The information required under § 7–115 of this subtitle shall be provided in a machine–readable format on the website of the Department of Budget and Management simultaneously with the publication of the proposed annual State budget.
(d) The Department of Budget and Management shall archive the information provided in a machine–readable format on the website of the Department of Budget and Management beginning with the fiscal year 2017 budget.
(a) Subject to § 2–1257 of the State Government Article, the Secretary shall provide to the General Assembly on a biennial basis by no later than February 1 of the fiscal year preceding the fiscal year the report covers, a report that contains a statement of the estimated amount by which exemptions from taxation reduce, for the year:
(1) State revenues; and
(2) revenues that the State collects for local governments.
(b) For each exemption, the statement shall:
(1) show the estimated amount by which the exemption reduces revenues;
(2) identify the person or the part of the population that benefits from the exemption; and
(3) say whether the exemption conflicts with any other State program.
(c) The statement shall include:
(1) each subtraction modification under § 10–207, § 10–208, or § 10–209 of the Tax – General Article; and
(2) each exemption under:
(i) Title 8, Subtitle 7 of the Natural Resources Article;
(ii) § 5–104, § 6–103, § 7–203, § 7–303, § 9–203, § 9–303, § 9–304, § 10–104, § 10–211, § 10–212, § 12–104, or Title 11, Subtitle 2 of the Tax – General Article;
(iii) Title 7 of the Tax – Property Article; and
(iv) § 13–810 or § 13–903 of the Transportation Article.
(d) The Comptroller, the Department of Assessments and Taxation, the Maryland Department of Labor, the Department of Natural Resources, the Department of Transportation, and other units of the State government shall help the Secretary of Budget and Management to prepare a draft of the statement under this section.
(a) In its annual submission of the proposed budget, the Department of Budget and Management shall provide, for informational purposes, a budget presentation that includes a description of the proposed expenditures under the Maryland Emergency Medical System Operations Fund for the:
(1) Maryland Institute for Emergency Medical Services Systems;
(2) R Adams Cowley Shock Trauma Center;
(3) Maryland Fire and Rescue Institute;
(4) Aviation Division of the Special Operations Bureau, Department of State Police; and
(5) grants under the Senator William H. Amoss Fire, Rescue, and Ambulance Fund.
(b) (1) (i) In this subsection the following words have the meanings indicated.
(ii) “Cancer Program” means the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article.
(iii) “Tobacco Program” means the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article.
(2) The budget books shall contain a budget presentation that provides an overview of the proposed expenditures for:
(i) the Tobacco Program, including the proposed expenditures for:
1. each Component of the Tobacco Program;
2. each program funded under each Component of the Tobacco Program; and
3. each Local Public Health Tobacco Grant;
(ii) the Cancer Program, including the proposed expenditures for:
1. each Component of the Cancer Program;
2. each program funded under each Component of the Cancer Program;
3. each Local Public Health Cancer Grant;
4. each statewide Academic Health Center Public Health Grant;
5. each statewide Academic Health Center Cancer Research Grant;
6. each statewide Academic Health Center Tobacco–Related Diseases Research Grant; and
7. each statewide Academic Health Center Network Grant;
(iii) the Tri–County Council for Southern Maryland, in accordance with § 13–611 of the Economic Development Article, including proposed expenditures for the Southern Maryland Agricultural Development Commission; and
(iv) any other program that is funded with the Cigarette Restitution Fund established under § 7–317 of this title.
(a) (1) For each fiscal year, General Fund capital appropriations shall be budgeted in the operating budget in separate eight–digit programs.
(2) When multiple projects or programs are budgeted within the same nontransportation eight–digit program, each distinct program and project shall be budgeted in a distinct subprogram.
(b) (1) To the extent possible, subprograms for projects spanning multiple years shall be retained to preserve funding history.
(2) The budget detail for prior and current fiscal years submitted with each proposed budget shall be organized in the same fashion to allow comparison between fiscal years.
On submission of a supplemental budget bill to the presiding officers of the General Assembly that includes an appropriation in accordance with § 5–202(l) of the Education Article, the Governor shall provide supporting data and the results of the calculations required under that subsection.
(a) In this subtitle the following words have the meanings indicated.
(b) “Appropriation act” means:
(1) the State budget; or
(2) a supplementary appropriation act.
(c) “Program” means a brief statement in an appropriation act of the purpose for which an appropriation shall be used.
(d) “Warrant” means a warrant that the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller issues for the disbursement of money from the State Treasury.
Money may be disbursed from the State Treasury only on appropriation by an appropriation act.
Money may be disbursed from the State Treasury only in accordance with the current appropriation for a program as amended from time to time in accordance with this title.
The initial appropriation for a program is set forth in the appropriation act. However, the appropriation for a program may be increased or reduced as provided in this subtitle.
(a) “Lump sum appropriation” means an appropriation for which the budget books or other documents that support the appropriation act contain no detailed information.
(b) Within 90 days after the General Assembly adjourns, each officer or unit of the State government to which a lump sum appropriation is made shall submit to the Board of Public Works a schedule that shows, in the form and with the detail set by the Board, the proposed apportionment and proposed disbursement of the appropriation.
(a) While the General Assembly is in session the General Assembly may amend the appropriation for a program of the Legislative Branch of the State government by amendment to the budget bill.
(b) While the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates jointly may authorize an amendment of an appropriation for a program of the Legislative Branch of the State government.
(c) An amendment of an appropriation for a program of the Legislative Branch of the State government:
(1) may not increase the sum of the appropriations from the General Fund of the State for all the programs of the Legislative Branch; and
(2) may authorize the expenditure of money from a special fund or the federal government as provided in § 2-201 of this article or § 7-217(a) of this subtitle.
(d) (1) (i) Except as provided in this subsection, an amendment under this section may not increase a salary for a nonclassified position so that the salary exceeds the amount set by the most recently enacted State budget.
(ii) The limitation applies whether or not the most recently enacted budget is in effect.
(iii) This subsection does not apply to salaries of positions that are included in an executive pay plan for the Legislative Branch.
(2) While the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates jointly may approve an amendment that increases a salary so that it exceeds the limitation in this subsection if:
(i) the President and the Speaker find that the salary increase is needed because an inability to obtain or to keep an essential career employee who is performing an administrative function or an essential professional or technical employee has created an acute emergency; and
(ii) their findings are documented.
(e) A copy of each amended appropriation for a program shall be provided promptly to:
(1) the Comptroller; and
(2) the Secretary of Budget and Management.
(a) The Chief Justice of the Supreme Court of Maryland may authorize an amendment of an appropriation for a program of the Judicial Branch.
(b) An amendment of an appropriation for a program of the Judicial Branch:
(1) may not increase the sum of the appropriations from the General Fund of the State for all the programs of the Judicial Branch; and
(2) may authorize the expenditure of money from a special fund or the federal government as provided in § 2–201 of this article and § 7–217(a) of this subtitle.
(c) (1) Except as provided in paragraph (2) of this subsection, an amendment under this section may not increase a salary for a nonclassified position so that the salary exceeds the amount set forth by the most recently enacted State budget bill. The limitation in this paragraph applies whether or not the most recently enacted budget is in effect.
(2) The Chief Justice of the Supreme Court of Maryland may approve an amendment that increases a salary so that it exceeds the limitation of this subsection if the Chief Justice finds that the salary increase is needed because an inability to obtain or to keep an essential career employee who is performing an administrative function or an essential professional or technical employee has created an acute emergency, and the finding is documented. This paragraph does not apply to salaries of positions that are included in an executive pay plan for the Judicial Branch. Adjustments to those salaries beyond the amount included in the most recently enacted State budget shall be submitted to the Legislative Policy Committee for approval.
(d) A copy of each amended appropriation for a program shall be provided promptly to:
(1) the Comptroller; and
(2) the Secretary of Budget and Management.
(a) The Governor may amend an appropriation for a program of the Office of the Governor.
(b) (1) Except as provided in § 7–212 of this subtitle, whenever an officer or unit of the Executive Branch of the State government wants the appropriation for a program of the officer or unit amended, the officer or unit shall submit a proposed amended appropriation for the program to the Secretary of Budget and Management.
(2) The Secretary of Budget and Management shall endorse on or attach to the proposed amended appropriation for the program a recommendation and send the amended appropriation for the program and recommendation to the Governor.
(3) At any time before the Governor approves or disapproves the proposed amended appropriation for a program, the officer or unit may withdraw the proposal.
(4) Whenever the Governor approves a proposed amended appropriation for a program, the Governor shall endorse it as “approved”.
(c) (1) An amendment of an appropriation for a program:
(i) except as provided in paragraph (2) of this subsection, may not increase the sum of the appropriations from the General Fund of the State for all the programs of the officer or unit; and
(ii) may permit the expenditure of money from a special fund or the federal government as provided in § 2–201 of this article or § 7–217(a) of this subtitle.
(2) An amendment of an appropriation for a program of the Executive Branch may increase the sum of the appropriations from the General Fund of the State for all programs of the officer or unit if money from the Contingent Fund of the Board of Public Works is transferred to the program.
(d) (1) (i) Except as provided in paragraph (2) of this subsection, an amendment under this section may not increase a salary so that it exceeds the amount set by the most recently enacted State budget.
(ii) The limitation in this paragraph applies whether or not the most recently enacted budget is in effect.
(2) (i) If the Board of Public Works approves the increase, the Governor may approve an amendment that increases the salary for a position listed in the budget bill in accordance with § 7–109 of this title.
(ii) An amendment under this paragraph remains effective until the State budget for the next fiscal year becomes effective.
(e) (1) Except as provided in paragraphs (2) and (3) of this subsection, an amendment under this section may not transfer any part of an appropriation among any of the principal departments or any of the units in the Executive Branch that are not assigned to a principal department.
(2) This subsection does not prevent a transfer that:
(i) is part of a reorganization under § 8–301 of the State Government Article;
(ii) is needed to comply with federal law or a policy directive of a federal unit that relates to the use of federal funds;
(iii) because of an emergency declared by the Governor, is needed to protect the health, welfare, or property of the public; or
(iv) is specifically authorized by the budget bill or other law.
(3) (i) Subject to the State budget bill, an amendment may transfer part of an appropriation of special or federal funds between any of the principal departments or any of the units in the Executive Branch that are not assigned to a principal department if:
1. funds are available to the department or unit from which the funds are to be transferred through a federal grant or contract or other restricted grant or contract;
2. the use of funds by the department or unit to which the funds are to be transferred is directly related to the purposes of the grant or contract and the statutory duties of that department or unit; and
3. the transferring department or unit and the receiving department or unit submit a schedule of funds to be transferred to the Department of Budget and Management.
(ii) Funds transferred under this paragraph may not be expended by the recipient department or unit until each proposed budget amendment has been approved by:
1. the Secretary of Budget and Management;
2. the Governor; and
3. the Board of Public Works.
(iii) A copy of each approved budget amendment under this paragraph shall be provided to the Department of Legislative Services.
(f) The Governor shall send a copy of each amended appropriation for a program to:
(1) the Comptroller; and
(2) the Department of Legislative Services.
(g) An amended appropriation for a program is effective when the Governor sends notice of the amended appropriation to the Comptroller.
(a) (1) A budget amendment may not change any language or substantive provision in the State budget.
(2) The limitation in this subsection does not apply to the monetary figures of an appropriation.
(b) A budget amendment may not transfer any part of a General Fund capital appropriation to an operating program or purpose.
(a) On or before the 3rd Wednesday in January of each year, the Secretary of Transportation shall submit to the General Assembly, subject to § 2-1257 of the State Government Article, a report on amendments of appropriations for programs of the Department of Transportation.
(b) (1) A report under this section shall describe each proposed amended appropriation for a program that the Department has submitted or expects to submit during the current fiscal year under § 7-209 of this subtitle.
(2) The description shall include:
(i) an explanation of the purpose of the amendment; and
(ii) an analysis of the impact of the amendment on appropriations of special and federal funds.
(a) This section applies only to the following governing boards:
(1) the Board of Regents of Morgan State University;
(2) the Board of Regents of the University System of Maryland; and
(3) the Board of Trustees of St. Mary’s College of Maryland.
(b) A governing board to which this section applies may transfer money among objects and, subject to the limitation in subsection (c) of this section, among programs under the jurisdiction of the governing board without submitting a proposed amended appropriation for a program under § 7-209 of this subtitle.
(c) During a fiscal year, a governing board may not transfer from a program more than 5% of the appropriation in the State budget for that program.
(d) At the end of each fiscal year, each governing board to which this section applies shall give to the Comptroller, the Department of Budget and Management, and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services, for information only, a summary of the transfers among programs made during the fiscal year.
(e) Section 7-209 of this subtitle does not apply to a transfer under this section.
(a) (1) Subject to paragraph (2) of this subsection and except as provided in subsection (b) of this section, with the approval of the Board of Public Works, the Governor may reduce, by not more than 25% of the legislative appropriation as approved by the General Assembly for any eight–digit program in the State operating budget in any fiscal year, any appropriation:
(i) that the Governor considers unnecessary; or
(ii) that is subject to budgetary reductions required under the budget bill as approved by the General Assembly.
(2) At least 7 calendar days before the Board of Public Works may approve a proposed reduction of an appropriation under this subsection, the Secretary of Budget and Management shall:
(i) publish on the Department of Budget and Management’s Web site, in a machine–readable format, notice of the proposed reduction, including:
1. the name of the State agency or program for which the appropriation is intended and a brief narrative summary of the impact of the proposed reduction on the State agency or program;
2. the amount of the proposed reduction in both dollar and percentage values;
3. the fund source of the appropriation subject to the proposed reduction; and
4. any projected reductions in workforce as a result of the proposed reduction;
(ii) provide the notice required under subparagraph (i) of this paragraph to the Board of Public Works for publication, in a machine–readable format, on the Board’s Web site; and
(iii) provide written notice of the proposed reduction, including the items specified under subparagraph (i) of this paragraph, to:
1. the Legislative Policy Committee;
2. the Senate Budget and Taxation Committee; and
3. the House Appropriations Committee.
(b) (1) The Governor may not reduce an appropriation to the Legislative Branch or the Judicial Branch of the State government.
(2) The Governor may not reduce an appropriation for:
(i) payment of the principal of or interest on the State debt;
(ii) public schools, including the Maryland School for the Deaf;
(iii) the Maryland School for the Blind; or
(iv) the salary of a public officer, during the term of office.
(3) Except as provided in § 8–109 of the State Personnel and Pensions Article, the Governor may not reduce an appropriation for the salary of any nontemporary employee in the State Personnel Management System.
(a) Subject to the limitations in this subtitle, an officer or unit of the State government may spend an appropriation for a program of the officer or unit in accordance with the current appropriation.
(b) (1) Except as provided in subsection (c) of this section, whenever an officer or a unit of the State government spends any part of an appropriation, the officer or unit promptly shall send the bill to the Comptroller for payment.
(2) Subject to the limitations in this subtitle, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may issue a warrant for payment of the bill.
(c) (1) The Comptroller shall exempt an officer or unit of the State government from the requirements of subsection (b) of this section if the Comptroller determines that the exemption would be in the public interest.
(2) Subject to the limitations in this subtitle, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may issue warrants from time to time to provide the officer or unit with the working cash that the Comptroller finds necessary.
(3) The Comptroller shall keep a record that shows each exemption, each amount advanced to an officer or unit, and the reasons for each exemption.
(4) The record shall be kept in the Office of the Comptroller and shall be open to public inspection.
(5) An officer or unit shall send to the Comptroller the voucher or a copy of the voucher for each expenditure made from an advance under this subsection.
(a) An officer or unit of the State government may spend money from a special fund or the federal government that is not estimated or included in the State budget or exceeds the estimate in the State budget and is paid into the State Treasury for a program after an approved amendment of a special or federal fund appropriation for the program:
(1) for the specific purpose to which the money is dedicated by State law or act of Congress; or
(2) if the money is not dedicated to a specific purpose, with the approval of the Governor and as authorized in an approved budget amendment, for necessary current operations.
(b) Money that is derived from a source estimated and included in an appropriation act and that is in excess of the estimate shall remain in the General Fund of the State until appropriated by a subsequent appropriation act.
Before issuance of a warrant for payment of a bill, the Comptroller may have the bill audited.
(a) The Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not sign a blank warrant.
(b) A warrant for payment of a bill is not valid unless the following information appears on the face of the warrant:
(1) the amount of the warrant;
(2) the date of issue;
(3) a reference to the document that identifies:
(i) the payee; and
(ii) the officer or unit of the State government that submitted the bill; and
(4) the certification of the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller that:
(i) the amount of the warrant is correct; and
(ii) the officer or unit submitted the bill for which the warrant is issued.
(c) A warrant for an advance of money to an officer or unit of the State government is not valid unless the following information appears on the face of the warrant:
(1) the amount of the warrant;
(2) the date of issue;
(3) the identity of the officer or unit; and
(4) the certification of the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller that the amount of the warrant is correct.
A warrant shall charge an applicable appropriation to the officer or unit that:
(1) has submitted a bill for payment; or
(2) is to receive an advance.
(a) The Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not issue a warrant for disbursement of an appropriation to an institution or corporation unless the Comptroller has on file an affidavit that complies with the requirements of this section.
(b) An affidavit under this section shall state that the affiant personally knows that no money from State funds has been paid or promised to any legislative agent, lawyer, or lobbyist for any service to obtain the appropriation.
(c) An affidavit under this section shall be signed by:
(1) the president and the treasurer of the institution or corporation; or
(2) if there is no president or treasurer, another officer or individual who has charge of and disburses the money of the institution or corporation.
Unless a person and the Comptroller or any duly authorized agent or representative designated by the Comptroller have entered into an agreement for the payment of the person’s indebtedness to the State and the payments are current or unless, for good cause shown, the Board of Public Works grants a waiver, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not issue to a person a warrant for payment of a claim due to the person in the person’s own right, if the person owes $50 or more to the State, a unit of the State government, or any governmental entity under the control of the State.
(a) (1) The Comptroller may not allow a warrant to be issued until a record is made in the books of the Office of the Comptroller.
(2) The record shall:
(i) state the amount of the warrant;
(ii) state the account against which the warrant is charged; and
(iii) identify:
1. the payee and the officer or unit of the State government that submitted the bill; or
2. for an advance, the officer or unit.
(b) The Comptroller shall keep an abstract of each warrant.
Subject to the limitations in this Part IV of this subtitle and any other law, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may disburse money from the State Treasury in accordance with a warrant.
A check that is drawn to disburse money from the State Treasury shall be:
(1) signed by the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer; and
(2) countersigned by the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller.
In addition to disbursement of money by check authorized under § 7–227 of this subtitle, the Treasurer, upon warrant of the Comptroller, may disburse money by those means generally recognized and accepted by the banking industry for transferring funds. Such disbursements shall be made in accordance with regulations promulgated by the Treasurer, after concurrence by the Comptroller, in accordance with Title 10, Subtitle 1 of the State Government Article.
The Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall keep a receipt for money disbursed from the State Treasury.
(a) In this section, “Fund” means the Undeliverable Checks Fund.
(b) There is an Undeliverable Checks Fund.
(c) If a check that the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer issues is returned to the Comptroller as undeliverable, the Comptroller:
(1) shall keep the check for a period of not more than 30 days;
(2) during that period, shall try diligently to find the correct address of the payee and to deliver the check; and
(3) if unable to deliver the check during that period, shall send the check to the Treasurer.
(d) Whenever the Comptroller returns a check as undeliverable, the Treasurer shall:
(1) cancel the check; and
(2) request the Comptroller to credit the amount of the canceled check to the Fund.
(e) On a warrant charged against the Fund, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may issue a check to replace a check canceled under this section.
(f) As required by State or federal law, or as considered proper by the Treasurer, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall:
(1) on a warrant charged against the Fund, disburse to the original source any money in the Fund required to be returned to the source; or
(2) request the Comptroller to transfer any money in the Fund to another fund or account.
(g) At the end of each fiscal year, the Treasurer:
(1) shall identify the checks that have been credited to the Fund and remain unclaimed for 2 years;
(2) determine a reasonable balance to retain in the Fund that will be needed to honor each replacement check that may be issued on a warrant charged against the Fund; and
(3) request the Comptroller to transfer the balance in the Fund, after subtraction of the amount determined as provided in item (2) of this subsection, to the General Fund of the State.
(h) Undeliverable checks credited to the Fund are not subject to Title 17 of the Commercial Law Article.
(i) Notwithstanding Title 4, Subtitle 3, Part III of the General Provisions Article, at the end of each fiscal year, the Treasurer may electronically publish on the Treasurer’s website the names of payees of checks that have remained unclaimed for 2 years or more.
(a) In this section, “Fund” means the Unpresented Checks Fund.
(b) There is an Unpresented Checks Fund.
(c) At the end of each fiscal year, the Treasurer shall:
(1) identify each check that:
(i) has been issued against the money of the State; and
(ii) has remained unpresented for 2 years; and
(2) request the Comptroller to credit the aggregate amount of the checks to the Fund.
(d) At the end of each fiscal year, the Treasurer shall:
(1) determine a reasonable minimum balance to retain in the Fund that will be needed to honor each check that is presented after its amount has been credited to the Fund; and
(2) request the Comptroller to transfer the balance in the Fund to the General Fund of the State.
(e) After the amount of a check has been credited to the Fund, on a warrant charged against the Fund, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may reissue a check that is presented for payment.
(f) As required by State or federal law, or as considered proper by the Treasurer, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall:
(1) void an unpresented check; and
(2) request the Comptroller to transfer the amount of the voided check to:
(i) the original source of the money; or
(ii) another fund or account.
(g) Unpresented checks credited to the Fund are not subject to Title 17 of the Commercial Law Article.
(h) Notwithstanding Title 4, Subtitle 3, Part III of the General Provisions Article, at the end of each fiscal year, the Treasurer may electronically publish on the Treasurer’s Web site the names of payees of checks that have remained unpresented for 2 years or more.
An officer or unit of the State government may not spend any part of a lump sum appropriation to the officer or unit until the Board of Public Works approves the schedule for apportionment and disbursement of the appropriation, as provided in § 7-207 of this subtitle.
(a) An officer or unit of the State government may not spend money:
(1) in excess of the total appropriation to the officer or unit; or
(2) in excess of the amounts set forth in the current schedule for apportionment and disbursement of the appropriation.
(b) (1) The State may not reimburse any expenditure to the extent that the expenditure violates subsection (a) of this section.
(2) The State is not obligated to appropriate money to pay an expenditure that violates subsection (a) of this section.
(c) Each employee or member of a unit and each officer of the State government who makes an expenditure that violates subsection (a) of this section is guilty of neglect of official duty and is subject to removal.
(a) (1) Except as provided in paragraph (2) of this subsection, this section applies to:
(i) each unit of the State government; and
(ii) each unit that:
1. is created by general law; and
2. operates in 2 or more counties.
(2) This section does not apply to a bicounty commission that county governing bodies appoint if those bodies also review the budget of the commission.
(b) A unit may not adopt a rule or regulation or take any other administrative action that would result in expenditures in excess of the limitations in the State budget unless:
(1) the General Assembly expressly approves the administrative action;
(2) if the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates:
(i) consult with the Joint Audit and Evaluation Committee; and
(ii) after receiving the written advice of the Joint Audit and Evaluation Committee, jointly give written approval for the administrative action; or
(3) the Governor declares, by proclamation, that the administrative action is necessary and a matter of emergency.
(a) A unit of the Executive Branch of the State government may not create a permanent staff position that is in addition to the positions for which the State budget and its supporting documents specifically provide unless:
(1) the Board of Public Works gives its approval; and
(2) money for the position is available:
(i) from the General Emergency Fund; or
(ii) by budget amendment, from other special or federal funds.
(b) On the 1st day of each regular session of the General Assembly, the Secretary of Budget and Management shall submit, subject to § 2-1257 of the State Government Article, to the appropriate committees of the General Assembly a report that:
(1) states the total number of additional staff positions for which the Board of Public Works has given approval since the last regular session; and
(2) for each position, states:
(i) the type;
(ii) the salary or wages; and
(iii) the reasons for the approval.
(c) The approval of a new position under this section is temporary. However, unless the General Assembly deletes the position from the budget bill, the position continues with the compensation provided in the State budget.
(a) This section applies to any officer or agent of the State who is charged with:
(1) construction, improvement, or maintenance of a building or work; or
(2) management of or provision for a State institution.
(b) An officer or agent to whom this section applies may not:
(1) make or participate in making for any purpose a contract that purports to bind the State to pay any amount unless money has been appropriated for that purpose and remains unspent;
(2) create a deficiency; or
(3) incur a liability or spend money in excess of the applicable appropriation.
(c) (1) The State is not liable on any contract made in violation of subsection (b) of this section.
(2) An officer or agent who willfully or knowingly violates subsection (b)(1) of this section is personally liable on the contract.
(d) If an officer or agent to whom this section applies is found guilty of willfully or knowingly violating any provision of subsection (b)(2) or (3) of this section:
(1) the officer or agent is personally liable to the State for the amount of the deficiency or excess; and
(2) the officer or agent is subject:
(i) for a 1st offense, to a fine not exceeding $1,000 or imprisonment in the State Penitentiary not exceeding 2 years or both; and
(ii) for a subsequent offense, to a fine not exceeding $2,000 or imprisonment in the State Penitentiary not exceeding 2 years or both.
(a) (1) In this section the following words have the meanings indicated.
(2) “Capital project” means a project for which funds are spent for:
(i) the construction, reconstruction, or rehabilitation of a transportation facility, as defined in § 3-101(l) of the Transportation Article; or
(ii) capital equipment as defined by the Secretary of Transportation.
(3) “Major capital project” has the meaning stated in § 2-103.1 of the Transportation Article.
(4) “Modal administration” has the meaning stated in § 1-101 of the Transportation Article.
(b) Except for an emergency project, the Department of Transportation, including the Office of the Secretary and the modal administrations, may not use an appropriation for a major capital project for any capital project that was not included in the Consolidated Transportation Program when the appropriation was made.
An officer or unit of State government may not use any part of an appropriation to settle a claim of unlawful harassment or discrimination, based on any characteristic protected by law, filed against an official or employee of State government in the individual’s personal capacity.
(a) This section applies to the following entities:
(1) an institution that receives an appropriation for operating expenses; and
(2) an officer or unit of the State government that:
(i) receives an appropriation for operating expenses; or
(ii) has its expenses paid out of the fees collected by the officer or unit.
(b) At the end of each fiscal year, each entity that, during that fiscal year, has received an appropriation for operating expenses shall give the Comptroller notice of:
(1) the amount of the appropriation that is unspent; and
(2) the amount of the unspent part that is needed to meet unpaid obligations incurred during the fiscal year.
Except as otherwise provided by law, at the end of a fiscal year, the unspent balance of each appropriation that was made for that fiscal year to an officer or unit of the State government or to an institution reverts to the General Fund of the State.
At the end of a fiscal year, the amount of the unspent part of an appropriation that is needed to meet unpaid obligations incurred during that fiscal year does not revert to the General Fund of the State.
At the end of a fiscal year, the unspent part of an appropriation from a source that State law or an Act of Congress dedicates to a specific purpose does not revert to the General Fund of the State but reverts to the appropriate special fund.
(a) In this section, “capital expenditure” includes an expenditure for:
(1) acquisition of land, buildings, or equipment; or
(2) new construction.
(b) At the end of a fiscal year, the unspent part of an appropriation for a capital expenditure made through the State budget or a supplementary appropriation act other than an enabling act for a general obligation loan:
(1) does not revert to the General Fund; and
(2) with the approval of the Board of Public Works, may be carried in a capital account until it is spent in accordance with subsection (c) of this section or until the authority to spend the appropriation for a project terminates.
(c) Money carried in a capital account under subsection (b) of this section may be spent only for a capital purpose.
(d) Unless otherwise provided by law, the authority to spend the appropriation for a project terminates:
(1) 2 years after the effective date of the appropriation act that authorizes the project, if:
(i) evidence that a required matching fund will be provided has not been presented to the Board; or
(ii) no part of the project is under contract and the Board has not encumbered money for any part of the project;
(2) 1 year after the latest of abandonment, completion, or acceptance of the project; or
(3) except to the extent the Board has encumbered money for a State project or program authorized by an appropriation act, 7 years after the effective date of the appropriation act that authorized the project unless:
(i) the appropriation act provides otherwise; or
(ii) in an emergency, the Board unanimously grants a temporary exception for 1 year.
(a) This section applies only to St. Mary’s College of Maryland.
(b) At the end of a fiscal year, the unencumbered balance of each appropriation from the General Fund, including an amount received as reimbursement of statewide indirect costs, to the Board or any of these institutions reverts to the General Fund of the State.
(c) The unencumbered balance of any other appropriation to the Board or these institutions:
(1) does not revert to the General Fund of the State;
(2) shall be available as provided in the State budget or through an approved budget amendment; and
(3) shall be reported by the Board or institution to the State Comptroller at the end of each fiscal year.
(a) Unless the State budget expressly provides otherwise, whenever a new or substantially renovated facility does not begin operation on the date that was used to determine the amount of the appropriation to the facility in the State budget, the part of the appropriation for operating expenses that is not needed to provide services to the same clients, students, patients, or incarcerated individuals shall revert to the General Fund or to an appropriate special fund and may not be spent for any other purpose or transferred by a budget amendment.
(b) If a facility under this section begins to operate after the date on which the appropriation was based but in the same fiscal year, the Department of Budget and Management shall determine, on a pro rata basis, the amount of the appropriation for operating expenses that shall revert to the General Fund.
The Secretary of Budget and Management shall give each member of the General Assembly notice of:
(1) the total reversions at the end of each fiscal year; and
(2) any revision of an estimated reversion from an appropriation in the State budget for the current fiscal year.
(a) There is a State Reserve Fund.
(b) The State Reserve Fund comprises:
(1) the Dedicated Purpose Account;
(2) the Revenue Stabilization Account;
(3) the Economic Development Opportunities Program Account; and
(4) the Catastrophic Event Account.
(a) In this section, “Account” means the Dedicated Purpose Account.
(b) The Dedicated Purpose Account is established:
(1) to retain appropriations for major, multi-year expenditures where the magnitude and timing of cash needs are uncertain; and
(2) beginning in fiscal year 1996, to meet specific expenditure requirements.
(c) The Governor may provide an appropriation in the budget bill to the Account for a specific purpose or purposes.
(d) For each appropriation to the Account, the Governor may:
(1) include the funds in the State budget subject to appropriation by the General Assembly; or
(2) transfer the funds by budget amendment from the Account to the expenditure account of the appropriate unit of State government only after the proposed budget amendment has been:
(i) submitted to the Senate Budget and Taxation Committee and the House Appropriations Committee of the General Assembly; and
(ii) subject to a 45–day review and comment period by the Legislative Policy Committee.
(e) The Account is a continuing, nonlapsing fund which is not subject to § 7-302 of this subtitle.
(f) (1) The unspent balance of an appropriation to the Account reverts to the Revenue Stabilization Account 4 years after the end of the fiscal year for which the appropriation was made.
(2) If the Governor determines that certain funds in the Account are no longer needed for the purpose for which they were originally appropriated, those funds may be transferred by budget amendment to the Revenue Stabilization Account after the proposed budget amendment has been:
(i) submitted to the Senate Budget and Taxation Committee and the House Appropriations Committee of the General Assembly; and
(ii) approved by the Legislative Policy Committee.
(a) Any money received by the State or otherwise subject to the direction or control of a State official, as a result of a settlement, judgment, or consent decree made or entered into after January 1, 2012:
(1) shall be deposited in the State treasury; and
(2) except for funds designated as restitution:
(i) shall be expended only as authorized in the State budget bill as enacted; and
(ii) may be transferred by budget amendment.
(b) In negotiating any State payment under any national or multistate settlement, judgment, or consent decree, a State official may recommend restrictions on the use of that State payment but shall also request that the settlement, judgment, or consent decree also provide that the funds may be used for any public purpose, to the extent that doing so is not inconsistent with the State or its citizens securing the maximum benefit from the settlement, judgment, or consent decree.
(a) (1) In this section the following words have the meanings indicated.
(2) “Account” means the Revenue Stabilization Account.
(3) “Estimated General Fund revenues” means the estimated General Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates submitted to the Governor under § 6–106 of this article in December preceding the fiscal year.
(4) “Unappropriated General Fund surplus” does not include the amount of nonwithholding income tax revenues that exceed the capped estimate determined under § 6–104(e) of this article.
(b) (1) The Revenue Stabilization Account is established to retain State revenues for future needs and reduce the need for future tax increases by moderating revenue growth.
(2) It is the goal of the State that 10% of estimated General Fund revenues in each fiscal year be retained in the Account.
(c) The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle.
(d) The Account consists of:
(1) money appropriated in the State budget to the Account;
(2) money distributed to the Account by the State Comptroller as provided in § 7–329 of this subtitle; and
(3) interest or other income earned from the investment of any portion of this Account or any other account in the State Reserve Fund.
(e) (1) Except as provided in subsection (f) of this section, for each fiscal year, except fiscal year 2026:
(i) if the Account balance is below 3% of the estimated General Fund revenues for that fiscal year, the Governor shall include in the budget bill an appropriation to the Account equal to at least $100,000,000; and
(ii) if the Account balance is at least 3% but less than 7.5% of the estimated General Fund revenues for that fiscal year, the Governor shall include in the budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or whatever amount is required for the Account balance to exceed 7.5% of the estimated General Fund revenues for that fiscal year.
(2) At the end of fiscal year 2020 and each fiscal year thereafter, if the amount of nonwithholding income tax revenues exceeds the capped estimate determined under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in § 7–329(c) and (d) of this subtitle.
(f) (1) The appropriations required by subsection (e)(1) of this section are not required when the Account balance exceeds 7.5% of the estimated General Fund revenues.
(2) The distributions required by subsection (e)(2) of this section are not required when the Account balance exceeds 10% of the estimated General Fund revenues for that fiscal year.
(g) (1) Unless the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, if authorized by an act of the General Assembly or specifically authorized in the State budget bill as enacted, the Governor may transfer funds from the Account to General Fund revenues as necessary to support the operation of State government on a temporary basis.
(2) If the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, the Governor may transfer funds from the Account to General Fund revenues only if the transfer is authorized by an act of the General Assembly other than the State budget bill.
(h) If the budget bill as submitted to the General Assembly includes a transfer of funds from the Account pursuant to subsection (g) of this section, the budget bill as enacted by the General Assembly may provide for a reduction of the amount of the transfer from the Account by an amount up to the amount of the reductions made by the General Assembly in the General Fund appropriations.
(i) Funds of the Account may only be transferred from the Account as provided in this section and are not subject to transfer by budget amendment.
(j) (1) Except as provided in paragraph (2) of this subsection, for fiscal years 2007 through 2023, the Governor shall include in the budget bill an appropriation:
(i) for fiscal year 2017, to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000;
(ii) for fiscal year 2020:
1. to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and
2. to the Account equal to the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000, less the amount of the appropriation under item 1 of this item;
(iii) for fiscal year 2021, to the Account in the amount of $291,439,149;
(iv) except as provided in item (v) of this paragraph, for fiscal year 2022 and each fiscal year thereafter:
1. to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000;
2. to the Postretirement Health Benefits Trust Fund established under § 34–101 of the State Personnel and Pensions Article an amount, up to a maximum of $25,000,000, that is equal to one–quarter of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and
3. to the Account equal to the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; and
(v) for fiscal year 2024:
1. to the Maryland Equity Investment Fund established under § 10–487 of the Economic Development Article an amount, up to $10,000,000, that is equal to 10% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000;
2. to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $15,000,000, that is equal to 15% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and
3. to the Postretirement Health Benefits Trust Fund established under § 34–101 of the State Personnel and Pensions Article an amount, up to a maximum of $25,000,000, that is equal to 25% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000.
(2) The appropriation required under this subsection for any fiscal year may be reduced by the amount of any appropriation to the Account required to be included for that fiscal year under subsection (e) of this section.
(a) There is a Maryland Stadium Facilities Fund.
(b) The Fund is:
(1) a special, nonlapsing fund that consists of money that may be appropriated, transferred, credited, or paid to it from any source; and
(2) not subject to § 7–302 of this subtitle.
(c) The Treasurer shall separately hold, and the Comptroller shall account for, the Fund.
(d) (1) The Fund shall be invested and reinvested in the same manner as other State funds.
(2) Any investment earnings shall be retained to the credit of the Fund.
(e) Money credited to the Maryland Stadium Facilities Fund may be used, in accordance with approved comprehensive financing plans, to:
(1) pay rent to the Maryland Stadium Authority;
(2) with the approval of the Board of Public Works, make grants or loans, not exceeding $1 million in any fiscal year, to the Authority for its corporate purposes;
(3) with the approval of the Board of Public Works, finance capital construction in lieu of issuing bonds; or
(4) financially support, through equity investment, loan, guarantee, or otherwise, full or partial private financing of any element of the facility.
(f) (1) At the end of the fiscal year, a transfer to the Dedicated Purpose Fund of the State Reserve Fund shall be made to the extent that the balance of revenues in the Fund exceeds:
(i) $24 million; and
(ii) the Debt Service Reserve Fund being held by or on behalf of the Maryland Stadium Authority for payment of debt service on revenue bonds issued by the Authority.
(2) (i) Any revenues transferred to the State Reserve Fund in accordance with paragraph (1) of this subsection shall be dedicated for use by the Maryland Stadium Authority and may be transferred from the State Reserve Fund by an appropriation in the budget bill or, with the approval of the Legislative Policy Committee, by budget amendment.
(ii) The unspent balance of any revenues for the Maryland Stadium Authority in the State Reserve Fund shall revert to the General Fund 2 years after the end of the fiscal year in which the transfer was made.
(a) (1) In this section the following words have the meanings indicated.
(2) “Account” means the Economic Development Opportunities Program Account.
(3) “Executive agency” means an executive department or agency in the Executive Branch of State government, including all offices of the Executive Department or agency directly responsible to the Governor.
(4) “Extraordinary economic development opportunity” means the:
(i) attraction of a new private sector enterprise to the State or retention or expansion of an existing private sector enterprise in the State that:
1. maintains a strong financial condition and minimal credit risk profile;
2. is capable of accessing alternative sources of financing through financial institutions or capital markets;
3. is consistent with the strategic plan of the State for economic development;
4. creates or retains substantial employment, particularly in areas of high unemployment; and
5. invests in capital at a level equal to five times the value of the incentive offered;
(ii) retention or expansion of an existing public institution, private institution, or federal research and development institute that:
1. is consistent with the strategic plan of the State for economic development; and
2. creates or retains substantial employment, particularly in areas of high unemployment; or
(iii) establishment or attraction of a public institution, a private institution, or a federal research and development institute new to the State that:
1. is consistent with the strategic plan of the State for economic development; and
2. creates or retains substantial employment, particularly in areas of high unemployment.
(5) (i) “Performance requirement” means a contractual agreement between an executive agency and an Account recipient that requires the Account recipient to meet minimum economic development outcomes in exchange for a grant or a loan under this section.
(ii) “Performance requirement” includes claw–back, penalty, rescission, and recalibration clauses that utilize job creation, capital investment, and other measures of economic development.
(6) “Private sector enterprise” means any commercial, industrial, educational, or research organization which is not a part of or controlled by a federal, State, or local government agency.
(b) Subject to the provisions of this section, the Economic Development Opportunities Program Account is established to maximize extraordinary economic development opportunities.
(c) Subject to subsection (r) of this section, the Governor may provide an appropriation in the budget bill to the Account for a specific or general purpose or purposes.
(d) After notice to and approval by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Economic Development Opportunities Program Account to the expenditure account of the appropriate executive agency.
(e) (1) The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle.
(2) The Treasurer shall separately hold, and the Comptroller shall account for, the Account.
(3) The Account shall be invested and reinvested in the same manner as other State funds.
(4) Except as provided in paragraph (5) of this subsection, any investment earnings shall be subject to § 7–311(d) of this subtitle.
(5) Any investment earnings on money transferred from the Account to a second continuing, nonlapsing fund may be retained to the credit of the second fund.
(f) (1) Money appropriated or credited to the Account does not revert to the Revenue Stabilization Account.
(2) Except as provided in paragraph (3) of this subsection, repayments of principal or interest on any loan from the Account shall be retained to the credit of the Account.
(3) Repayments of principal or interest on any loan made from money transferred from the Account to a second continuing, nonlapsing fund may be retained to the credit of the second fund.
(g) (1) The Department of Commerce shall include the following information in the report that is required under § 2.5–109 of the Economic Development Article:
(i) the financial status of the program and a summary of its operations for the preceding fiscal year;
(ii) for the previous 3 fiscal years, the status of Account disbursements for economic development projects reviewed by the Legislative Policy Committee under this section;
(iii) for the previous 3 fiscal years, the status of job creation, capital investment, and other measures of economic development for each economic development project reviewed by the Legislative Policy Committee under this section;
(iv) a list of guidelines for the kinds of performance requirements that may be negotiated with the loan or grant applicant; and
(v) an explanation if the job creation, capital investment, and other measures of economic development described in items (i) through (iii) of this paragraph are lower than negotiated according to subsection (h)(1) of this section.
(2) Upon receipt of the information that is required to be reported under this subsection, the Legislative Policy Committee shall have 60 days to review and comment on the information provided by the Department of Commerce under paragraph (1) of this subsection, during which time the Department of Commerce shall provide any additional information regarding the Account as requested by the Legislative Policy Committee.
(h) (1) Except as provided in paragraph (2) of this subsection and in subsection (i) of this section, any funds transferred from the Economic Development Opportunities Program Account shall be used only for extraordinary economic development opportunities that:
(i) meet the criteria provided in this section;
(ii) include performance requirements; and
(iii) in addition to the performance requirements under item (ii) of this paragraph, include a performance requirement that utilizes a claw–back provision.
(2) The Account may pay an executive agency for administrative, legal, or actuarial expenses incurred by the agency in connection with transactions funded by transfers of money to the agency from the Account.
(i) The Legislative Policy Committee may approve an economic development opportunity that is not an extraordinary economic development opportunity if the executive agency requesting the transfer of funds offers a detailed justification for the exception. The Legislative Policy Committee shall give particular consideration to an exception that would provide a significant economic development opportunity for an area of the State that has a relatively high unemployment rate or relatively low per capita income.
(j) (1) The Department of Commerce may modify the guidelines for the kinds of performance requirements that may be negotiated with the loan or grant as needed, upon approval of the Legislative Policy Committee.
(2) An executive agency may depart from these guidelines as needed, upon approval of the Legislative Policy Committee.
(k) Subject to the provisions of this subtitle, funds transferred from the Economic Development Opportunities Program Account, to an executive agency, may be loaned, granted, or invested for:
(1) assisting in the retention or expansion of existing private sector enterprises, public or private institutions, or federal research and development institutes;
(2) assisting in the establishment or attraction of private sector enterprises, public or private institutions, or federal research and development institutes new to this State; or
(3) providing assistance where existing State or local programs lack sufficient resources or are constrained by timing or program design from being utilized.
(l) Upon submission to the Legislative Policy Committee of a proposed budget amendment to transfer money from the Account, the Governor shall provide, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee:
(1) a detailed description of:
(i) the proposed use of the funds;
(ii) the manner in which the proposed use meets the criteria as set forth in this section;
(iii) the degree to which the proposed use of funds will advance statewide or local economic development strategies and objectives; and
(iv) the degree to which available sources of federal, State, local, and private financial support have been sought and will be utilized;
(2) the terms, conditions, and performance requirements of any grant or loan for which the funds are to be used;
(3) a comprehensive economic analysis of the proposed use of the funds which estimates:
(i) the economic impact to the State and the local jurisdictions affected;
(ii) a minimum level of net economic benefits to the public sector;
(iii) the number of jobs expected to be created as a result of the proposed economic development project and the percentage of those jobs that are expected to be held by Maryland residents;
(iv) the wage rates and benefit packages for the jobs expected to be created as a result of the proposed economic development project; and
(v) any other appropriate financial or economic benefits;
(4) any other analysis or information that is requested by the Legislative Policy Committee; and
(5) the date on which the executive agency expects to disburse the funds to the proposed recipient.
(m) If an executive agency fails to disburse transferred funds to a recipient within 1 year after the expected disbursement date presented to the Legislative Policy Committee under subsection (l) of this section, the funds will revert back to the Account and the Governor shall:
(1) resubmit the proposed budget amendment to transfer money from the Account to the Legislative Policy Committee; and
(2) provide the Legislative Policy Committee with the information required under subsection (l) of this section.
(n) Funds appropriated to the Economic Development Opportunities Program Account may not be loaned, granted, or invested for:
(1) substituting for funds from other State or local programs for which a project may be eligible and sufficient resources exist;
(2) projects which are not likely to attract or retain employment opportunities;
(3) funding projects located outside the State;
(4) construction or land acquisition by the Maryland Stadium Authority; or
(5) funding for any sports activity or facility.
(o) (1) This subsection does not apply to an economic development opportunity located in an area designated as a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.
(2) In the case of an economic development opportunity located outside a priority funding area as established under Title 5, Subtitle 7B of this article, the Department shall first comply with the provisions of that subtitle before making a request for approval by the Legislative Policy Committee under this section.
(p) An executive agency may approve changes to a transaction approved by the Legislative Policy Committee as long as the changes do not materially and adversely affect the overall position of the executive agency in the transaction or the economic development benefits to be derived by the State in the transaction.
(q) (1) (i) In this subsection the following words have the meanings indicated.
(ii) “Financial assistance” means a grant, loan, or investment provided under this subsection that exceeds $100,000.
(iii) “Political subdivision” includes an agency or other instrumentality of the political subdivision.
(2) This subsection does not apply to financial assistance used solely for the purpose of acquiring real property or structures on real property.
(3) With respect to financial assistance under this section to a political subdivision:
(i) if the political subdivision has a program for promoting procurement opportunities among minority businesses that is acceptable to the Department of Commerce, the political subdivision shall apply the requirements of that program to the procurement of goods or services made with the proceeds from the financial assistance; but
(ii) if the political subdivision does not have a program that is acceptable to the Department of Commerce under item (i) of this paragraph, the political subdivision is subject to paragraph (4) of this subsection.
(4) (i) In this paragraph, “minority business enterprise” has the meaning stated in § 14–301 of this article.
(ii) With respect to financial assistance under this section to an entity other than a political subdivision, the entity shall agree to include in the agreement providing the financial assistance a provision acceptable to the Department of Commerce that would encourage the procurement from minority business enterprises of goods or services purchased with the proceeds from the financial assistance.
(iii) In negotiating the provision required under subparagraph (ii) of this paragraph, the Department of Commerce shall take into account relevant factors, including:
1. the intended use of the proceeds from the financial assistance; and
2. the feasibility of obtaining the required goods or services from minority business enterprises.
(5) The Department of Commerce may require that a recipient of financial assistance under this section submit to the Department of Commerce a list, or an updated list, of the minority business enterprises from which goods or services were procured and the nature and dollar amount of the goods or services.
(r) For fiscal years 2019 through 2021, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Account to be used by the Department of Commerce to provide conditional loans or grants to companies that meet the following criteria:
(1) construction of company headquarters in the State with capital expenditures of at least $500,000,000; and
(2) retention of company headquarters in the State with at least 3,250 eligible employees, consistent with a letter of intent entered into with the Department of Commerce in October 2016.
(a) There is an Energy Overcharge Restitution Fund.
(b) (1) The Fund is a continuing, nonlapsing fund that is not subject to the provisions of § 7–302 of this subtitle.
(2) There shall be credited to the Fund:
(i) all federal fund revenues consisting of refunds received by the State from any source as a direct or indirect result of litigation or administrative proceedings prosecuted by the U.S. Department of Energy to redress violations of federal petroleum pricing regulations under the Emergency Petroleum Allocation Act, 15 U.S.C. §§ 751 through 756, and the Energy Policy and Conservation Act, 15 U.S.C. §§ 757 through 760H; and
(ii) all special fund revenues received and accepted as a gift under § 2–201 of this article that are expressly given for the purpose of energy assistance or weatherization for individuals in this State.
(3) Revenues received by the State as a result of claims representing purchases by the State are excluded from the Fund.
(c) The Treasurer shall:
(1) invest and reinvest the Fund in the same manner as other State funds; and
(2) credit any investment earnings to the Fund.
(d) Expenditures from the Fund shall be made by:
(1) an appropriation in the annual State budget; or
(2) a budget amendment in accordance with § 7–209 of this title, provided that any budget amendment shall be submitted to and approved by the Legislative Policy Committee prior to the expenditure or obligation of funds.
(e) In accordance with the provisions of subsection (f) of this section, the Director of the Maryland Energy Administration or the designee of the Director shall:
(1) administer the Fund;
(2) develop plans, prepare and submit proposals to the Governor for Fund use, and undertake any action that is necessary to obtain for the Fund all energy overcharge refunds and judgment awards to which the citizens of the State have a legal entitlement;
(3) assess and determine the respective needs of the citizens of the State and develop recommendations for the allocation and disbursement of funds in accordance with those needs pursuant to the provisions of subsection (f) of this section;
(4) conduct public hearings at least twice a year at times and places the Director or the designee of the Director determines; and
(5) perform other duties as may be assigned by the Governor.
(f) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are:
(i) expressly provided by statute; or
(ii) required as a condition of the acceptance of funds.
(2) The Fund shall be expended:
(i) for emergency energy assistance provided under § 5–5A–07(a) of the Human Services Article;
(ii) for energy assistance programs provided under § 5–5A–07(b) of the Human Services Article;
(iii) for energy assistance and weatherization programs provided under § 4–211(c) of the Housing and Community Development Article and Title 9, Subtitle 20 of the State Government Article;
(iv) for energy extension service and low–income home–energy programs provided under 42 U.S.C. §§ 7001 through 7011 and 8621 through 8629;
(v) for other energy assistance or weatherization programs meeting the federal restitutive objectives governing the distribution of overcharge refunds to the states;
(vi) for any other program within the definition of “energy conservation programs” as provided by Pub. L. No. 97–377, 96 Stat. 1830, § 155 (1982) and subsequent amendments, including the State Energy Efficiency Programs Improvement Act of 1990, Pub. Law No. 101–440;
(vii) for energy efficiency and economic development loans provided under Title 9, Subtitle 20A of the State Government Article; or
(viii) for any other purpose required as a condition of their acceptance.
(3) In addition to the provisions of paragraph (2) of this subsection, priority shall be given to the energy assistance and weatherization programs.
(4) Disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for such programs under federal or State law.
IN EFFECT
(a) There is a Cigarette Restitution Fund.
(b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law.
(3) There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article.
(c) The Treasurer shall:
(1) invest and reinvest the Fund in the same manner as other State funds; and
(2) credit any investment earnings to the Fund.
(d) Expenditures from the Fund shall be made by an appropriation in the annual State budget.
(e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are:
(i) expressly provided by statute;
(ii) required as a condition of the acceptance of funds; or
(iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund.
(2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section.
(f) (1) The Cigarette Restitution Fund shall be used to fund:
(i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article;
(ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article;
(iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article;
(iv) for each of fiscal years 2025 through 2029, the Maryland Community Health Resources Commission Fund, in accordance with subsection (g) of this section;
(v) the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health – General Article; and
(vi) other programs that serve the following purposes:
1. reduction of the use of tobacco products by individuals under the age of 21 years;
2. implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco;
3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products;
4. smoking cessation programs;
5. enforcement of the laws regarding tobacco sales;
6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article;
7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products;
8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects;
9. substance abuse treatment and prevention programs; and
10. any other public purpose.
(2) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill.
(g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection.
(2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made.
(3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section.
(4) (i) This paragraph does not apply in fiscal year 2026.
(ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program.
(5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article.
(6) For each of fiscal years 2025 through 2029, the Governor shall include in the annual budget bill an appropriation of $8,000,000 to the Maryland Community Health Resources Commission Fund.
(7) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose.
(h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–126 of the Education Article.
(ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses.
(i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices.
(2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years.
(j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall:
(1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and
(2) report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on:
(i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and
(ii) the specific outcomes or public benefits resulting from that expenditure.
// EFFECTIVE JUNE 30, 2029 PER CHAPTER 644 OF 2023 //
// EFFECTIVE UNTIL JUNE 30, 2031 PER CHAPTERS 812 AND 813 OF 2024 //
(a) There is a Cigarette Restitution Fund.
(b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law.
(3) There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article.
(c) The Treasurer shall:
(1) invest and reinvest the Fund in the same manner as other State funds; and
(2) credit any investment earnings to the Fund.
(d) Expenditures from the Fund shall be made by an appropriation in the annual State budget.
(e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are:
(i) expressly provided by statute;
(ii) required as a condition of the acceptance of funds; or
(iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund.
(2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section.
(f) (1) The Cigarette Restitution Fund shall be used to fund:
(i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article;
(ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article;
(iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article;
(iv) the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health – General Article; and
(v) other programs that serve the following purposes:
1. reduction of the use of tobacco products by individuals under the age of 21 years;
2. implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco;
3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products;
4. smoking cessation programs;
5. enforcement of the laws regarding tobacco sales;
6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article;
7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products;
8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects;
9. substance abuse treatment and prevention programs; and
10. any other public purpose.
(2) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill.
(g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection.
(2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made.
(3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section.
(4) (i) This paragraph does not apply in fiscal year 2026.
(ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program.
(5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article.
(6) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose.
(h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–126 of the Education Article.
(ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses.
(i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices.
(2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years.
(j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall:
(1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and
(2) report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on:
(i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and
(ii) the specific outcomes or public benefits resulting from that expenditure.
// EFFECTIVE JUNE 30, 2031 PER CHAPTERS 812 AND 813 OF 2024 //
(a) There is a Cigarette Restitution Fund.
(b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law.
(3) There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article.
(c) The Treasurer shall:
(1) invest and reinvest the Fund in the same manner as other State funds; and
(2) credit any investment earnings to the Fund.
(d) Expenditures from the Fund shall be made by an appropriation in the annual State budget.
(e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are:
(i) expressly provided by statute;
(ii) required as a condition of the acceptance of funds; or
(iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund.
(2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section.
(f) (1) The Cigarette Restitution Fund shall be used to fund:
(i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article;
(ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article;
(iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article; and
(iv) other programs that serve the following purposes:
1. reduction of the use of tobacco products by individuals under the age of 21 years;
2. implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco;
3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products;
4. smoking cessation programs;
5. enforcement of the laws regarding tobacco sales;
6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article;
7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products;
8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects;
9. substance abuse treatment and prevention programs; and
10. any other public purpose.
(2) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill.
(g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection.
(2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made.
(3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section.
(4) (i) This paragraph does not apply in fiscal year 2026.
(ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program.
(5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article.
(6) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose.
(h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–126 of the Education Article.
(ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses.
(i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices.
(2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years.
(j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall:
(1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and
(2) report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on:
(i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and
(ii) the specific outcomes or public benefits resulting from that expenditure.
(a) (1) In this section the following words have the meanings indicated.
(2) “Account” means the Catastrophic Event Account.
(3) “Fund” means the State Disaster Recovery Fund established under § 14–110.5 of the Public Safety Article.
(b) Subject to the provisions of this section, the Account is established to enable the State or a local government to respond without undue delay to:
(1) a natural disaster or other catastrophic situation;
(2) federal employee financial hardship from a full or partial federal government shutdown due to a lapse in federal appropriations that cannot be taken care of within the resources of existing appropriations; or
(3) former federal employee financial hardship from the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances.
(c) The Governor may provide an appropriation in the budget bill to the Account.
(d) (1) Subject to paragraph (2) of this subsection, after a 10–day review and comment period by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Account to:
(i) the expenditure accounts of the appropriate unit of State government or unit of local government; or
(ii) subject to subsection (e)(2)(ii) of this section, the State Disaster Recovery Fund.
(2) If the federal government is in a full or partial shutdown due to a lapse in appropriations, after a 2–day review and comment period by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Account to the Federal Government Employee Assistance Loan Fund established under § 7–327 of this subtitle.
(e) Funds appropriated to the Catastrophic Event Account:
(1) may not be used to offset operating deficiencies in regular programs of State government; but
(2) (i) may be expended to assist a unit of State government or unit of local government in funding costs in connection with:
1. a natural disaster;
2. a catastrophic situation;
3. a full or partial federal government shutdown due to a lapse in appropriations; or
4. a closure, relocation, or mass layoff of a unit of the federal government; and
(ii) may be transferred to the State Disaster Recovery Fund if:
1. the balance of the Fund has been depleted due to use or transfer; or
2. the estimated costs for providing adequate disaster relief for a natural disaster or catastrophic situation are in excess of the Fund’s balance.
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle.
(2) The Treasurer shall separately hold, and the Comptroller shall account for, the Account.
(3) The Account shall be invested and reinvested in the same manner as other State funds.
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle.
(g) Money appropriated to the Account does not revert to the Revenue Stabilization Account.
(a) (1) In this section the following words have the meanings indicated.
(2) “Council” means the Maryland State Arts Council.
(3) “General fund growth adjustment” means the percentage by which the projected total General Fund revenues for the upcoming fiscal year exceed the revised estimate of total General Fund revenues for the current fiscal year, as contained in the report of estimated State revenues submitted by the Board of Revenue Estimates to the Governor under § 6–106(b) of this article.
(b) (1) For fiscal years 2013 through 2024, the Governor shall include in the annual budget bill a General Fund appropriation for the Council in an amount not less than the amount of the General Fund appropriation for the Council for the immediately preceding fiscal year increased by the general fund growth adjustment.
(2) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill a General Fund appropriation for the Council in an amount not less than the result of the following calculation:
(i) any funds distributed to the Council in the immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article increased by the general fund growth adjustment; plus
(ii) the amount of the General Fund appropriation for the Council for the immediately preceding fiscal year increased by the general fund growth adjustment; minus
(iii) the amount of funds distributed to the Council in the immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article.
(c) The Legislative Auditor has the authority to conduct a review or audit of any recipient of a grant from the Council.
(a) In this section, “Fund” means the Public School Construction Fund.
(b) The Fund is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle.
(c) The Fund consists of money transferred by the Camden Yards Financing Funds as required under § 10–652 of the Economic Development Article.
(d) The Treasurer shall separately hold, and the Comptroller shall account for, the Fund.
(e) Subject to the approval of the Interagency Commission on School Construction, money credited to the Fund shall be used only for public school construction projects and public school capital improvements consistent with the provisions of Title 5, Subtitle 3 of the Education Article.
(f) Money from the Fund may only be transferred from the Fund to the extent authorized by an appropriation as enacted in the annual State budget bill and is not subject to transfer by budget amendment.
(g) It is the intent of the General Assembly that the funds provided for school construction in the Fund be in addition to and not in substitution of general funds or any other funds provided in the Governor’s allowance for public school construction.
(a) In this section, “Fund” means the Federal Government Employee Assistance Loan Fund.
(b) There is a Federal Government Employee Assistance Loan Fund.
(c) The purpose of the Fund is to provide loans to State residents who are:
(1) employees of the federal government, required to report to work, and who are not being paid because of a full or partial federal government shutdown due to a lapse in appropriations after January 1, 2025; or
(2) in the immediately preceding 6 months, and on or after January 1, 2025, were terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the employees’ control, and who are experiencing financial hardship as determined by the Maryland Department of Labor.
(d) The Maryland Department of Labor shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle that shall be available in perpetuity for the purpose of providing loans in accordance with the provisions of this section.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(3) The Maryland Department of Labor is authorized to disclose information to third–party vendors to verify federal employment for the purpose of assisting with the implementation of the Fund, subject to privacy considerations.
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) any interest earnings of the Fund;
(3) money transferred from the Catastrophic Event Account in accordance with § 7–324 of this subtitle;
(4) repayments on loans made from the Fund; and
(5) any other money from any other source accepted for the benefit of the Fund.
(g) The Fund shall be used only to provide no–interest loans to State residents who are:
(1) employees of the federal government, required to report to work, and who are not being paid because of a full or partial federal government shutdown due to a lapse in appropriations after January 1, 2025; or
(2) in the immediately preceding 6 months, and on or after January 1, 2025, were terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the employees’ control, and who are experiencing financial hardship as determined by the Maryland Department of Labor.
(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) (1) Subject to paragraph (2) of this subsection, the Maryland Department of Labor shall establish procedures and eligibility criteria for loans from the Fund.
(2) The eligibility criteria shall include that:
(i) 1. the federal government is in a full or partial shutdown due to a lapse in appropriations; or
2. a unit of the federal government has been closed, been relocated, experienced mass layoffs, or experienced other similar circumstances; and
(ii) an individual applying for a loan from the Fund is, a resident of the State who is:
1. an employee of the federal government, required to report to work, and not being paid because of the full or partial federal government shutdown due to the lapse in appropriations after January 1, 2025; or
2. a former employee of the federal government who, within the 6 months immediately preceding the date of the loan application, and on or after January 1, 2025, was terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the individual’s control, and who is experiencing financial hardship as determined by the Maryland Department of Labor.
(3) The Maryland Department of Labor may establish other criteria to best assist federal employees facing financial hardship.
(4) The procedures shall include:
(i) application procedures;
(ii) payment procedures from the Fund; and
(iii) if repayment is required, repayment procedures, including timelines, for an individual to repay a loan from the Fund.
(5) The Maryland Department of Labor may forgive a loan provided under this section.
(a) There is a Mortgage Loan Servicing Practices Settlement Fund.
(b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) Except for restitution and funds designated as fines, civil penalties, and money that are otherwise required under Maryland law, a judgment, or a settlement agreement to be paid into the General Fund of the State, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with bank mortgage servicers or any other person in the mortgage servicing industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law.
(c) The Treasurer shall:
(1) invest and reinvest the Fund in the same manner as other State funds; and
(2) credit any investment earnings to the Fund.
(d) Expenditures from the Fund shall be made by an appropriation in the annual State budget or may be transferred by budget amendment.
(e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are:
(i) expressly provided by statute; or
(ii) required as a condition of the acceptance of funds.
(2) It is the intent of the General Assembly that disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used as provided in this section solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law.
(f) (1) The Mortgage Loan Servicing Practices Settlement Fund shall be used for housing and foreclosure–relief purposes and for related investigation and enforcement activities, including:
(i) the provision of housing counseling;
(ii) legal assistance related to foreclosure, evictions, and housing activities;
(iii) criminal or civil investigations of fraud related to housing and the securitization of mortgage loans;
(iv) relevant enforcement activities;
(v) foreclosure prevention, remediation, and restitution;
(vi) programs to address community blight;
(vii) programs reasonably targeted to benefit persons harmed by mortgage fraud; and
(viii) any other public purpose reasonably related to housing and foreclosure relief.
(2) The Mortgage Loan Servicing Practices Settlement Fund may be used to provide legal assistance related to any type of legal proceeding.
(3) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill.
(g) For each program, project, or activity under subsection (f)(1) of this section for which funds are appropriated, the Governor shall:
(1) develop appropriate statements of vision, mission, key goals, objectives, and performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and
(2) on or before October 1 of each year until 2016, report, subject to § 2–1257 of the State Government Article, to the General Assembly on:
(i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and
(ii) the specific outcomes or public benefits resulting from that expenditure.
(a) (1) In this section the following words have the meanings indicated.
(2) “Fund” means the Fiscal Responsibility Fund established under § 7–330 of this subtitle.
(3) (i) “Nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article.
(ii) “Nonwithholding income tax revenues” does not include:
1. the county share of income tax quarterly estimated and final payments with returns made by individuals;
2. income tax payments made by corporations;
3. income tax refunds paid to individuals or corporations; or
4. income tax withholding.
(b) At the end of fiscal year 2020, and each fiscal year thereafter, if General Fund revenues for the fiscal year are less than the March estimate of the Board of Revenue Estimates, the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article shall be applied to close the gap in revenues for that fiscal year.
(b–1) At the end of fiscal year 2022 only, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount necessary to close the gap in revenues under subsection (b) of this section, the State Comptroller shall distribute the remainder to the Fund for the purpose of providing, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859.
(c) Except as provided in subsection (b–1) of this section, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount necessary to close the gap in revenues under subsection (b) of this section, and if the balance of the Revenue Stabilization Account under § 7–311 of this subtitle is less than 6% of the estimated General Fund revenues for that fiscal year, the State Comptroller shall distribute to the Revenue Stabilization Account the lesser of:
(1) the remaining balance of nonwithholding income tax revenues in excess of the capped estimate determined under § 6–104(e) of this article; or
(2) the amount required for the Revenue Stabilization Account balance to equal 6% of the estimated General Fund revenues for that fiscal year.
(d) Except as provided in subsection (b–1) of this section, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount the State Comptroller is required to distribute to the Revenue Stabilization Account under subsection (c) of this section, the State Comptroller shall distribute:
(1) subject to subsection (e) of this section, 50% of the remaining amount to the Revenue Stabilization Account; and
(2) the remainder to the Fund.
(e) The distribution to the Revenue Stabilization Account under subsection (d)(1) of this section does not apply if the amount in the Revenue Stabilization Account exceeds 10% of General Fund revenues.
(a) (1) In this section the following words have the meanings indicated.
(2) “Fund” means the Fiscal Responsibility Fund.
(3) (i) “Nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article.
(ii) “Nonwithholding income tax revenues” does not include:
1. the county share of income tax quarterly estimated and final payments with returns made by individuals;
2. income tax payments made by corporations;
3. income tax refunds paid to individuals or corporations; or
4. income tax withholding.
(b) There is a Fiscal Responsibility Fund.
(c) The purpose of the Fund is to retain the amount of nonwithholding income tax revenues deposited to the Fund in accordance with § 7–329(d)(2) of this subtitle until the revenues are appropriated in the State budget.
(d) The State Comptroller shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) The State Treasurer shall hold the Fund separately, and the State Comptroller shall account for the Fund.
(f) The Fund consists of nonwithholding income tax revenues that exceed the capped estimate determined under § 6–104(e) of this article deposited into the Fund by the State Comptroller under § 7–329(d)(2) of this subtitle.
(g) (1) Except as provided in paragraph (2) of this subsection, the Fund may be used only to provide pay–as–you–go capital funds for:
(i) public school construction and public school capital improvement projects, in accordance with Title 5, Subtitle 3 of the Education Article;
(ii) capital projects at public community colleges; and
(iii) capital projects at four–year public institutions of higher education.
(2) For fiscal year 2023 only, money in the Fund shall be used to provide, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859.
(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the General Fund of the State.
(i) Expenditures from the Fund may be made only in accordance with the State budget.
(j) (1) Except as provided in paragraph (3) of this subsection, the Governor shall include in the budget bill for the second following fiscal year an appropriation equal to the amount in the Fund for pay–as–you–go capital projects.
(2) Money expended from the Fund for pay–as–you–go capital projects is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for capital projects, including those funded with pay–as–you–go funds and the proceeds from the sale of general obligation bonds.
(3) The Governor shall include in the budget bill submitted at the 2022 Session of the General Assembly an appropriation equal to the amount distributed to the Fund in accordance with § 7–329(b–1) of this subtitle to provide, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859.
(k) At the end of a fiscal year, the unspent balance of each appropriation that was made for that fiscal year from the Fund reverts to the Fund.
IN EFFECT
(a) In this section, “Fund” means the Opioid Restitution Fund.
(b) There is an Opioid Restitution Fund.
(c) The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section.
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e) The Fund consists of:
(1) all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and
(2) the interest earnings of the Fund.
(f) The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including:
(1) programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction;
(2) supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State;
(3) addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services;
(4) addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services;
(5) evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article:
(i) determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and
(ii) approves the use of money for the pilot program or demonstration study;
(6) evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality;
(7) operating expenses and personnel costs for investigations, enforcement actions, and other activities conducted by the Opioids Enforcement Unit within the Office of the Attorney General that are related to the recovery of funds from opioid–related judgments or settlements; and
(8) the Buprenorphine Training Grant Program established under § 13–5802 of the Health – General Article.
(g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(h) (1) Expenditures from the Fund may be made only in accordance with the State budget.
(2) For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions:
(i) appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions:
1. as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or
2. required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and
(ii) the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with:
1. the State–subdivision agreement of January 21, 2022, as amended; or
2. the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions.
(3) The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection.
(i) (1) (i) This paragraph does not apply in fiscal years 2025 and 2026.
(ii) Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services.
(2) Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses.
(j) The Governor shall:
(1) develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts;
(2) subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and
(3) report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:
(i) an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by:
1. use;
2. if applicable, jurisdiction; and
3. budget program and subdivision;
(ii) the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and
(iii) the recommended appropriations from the Fund identified in accordance with item (2) of this subsection.
(k) Beginning on or before October 1, 2025, and each October 1 thereafter, the Office of the Attorney General shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the status of activity of the Opioids Enforcement Unit, including:
(1) the number of investigations taking place;
(2) the number of lawsuits filed; and
(3) the disposition of lawsuits filed.
// EFFECTIVE JUNE 30, 2029 PER CHAPTERS 700 AND 701 OF 2025 //
// EFFECTIVE UNTIL SEPTEMBER 30, 2030 PER CHAPTER 759 OF 2025 //
(a) In this section, “Fund” means the Opioid Restitution Fund.
(b) There is an Opioid Restitution Fund.
(c) The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section.
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e) The Fund consists of:
(1) all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and
(2) the interest earnings of the Fund.
(f) The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including:
(1) programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction;
(2) supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State;
(3) addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services;
(4) addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services;
(5) evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article:
(i) determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and
(ii) approves the use of money for the pilot program or demonstration study;
(6) evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality; and
(7) the Buprenorphine Training Grant Program established under § 13–5802 of the Health – General Article.
(g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(h) (1) Expenditures from the Fund may be made only in accordance with the State budget.
(2) For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions:
(i) appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions:
1. as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or
2. required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and
(ii) the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with:
1. the State–subdivision agreement of January 21, 2022, as amended; or
2. the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions.
(3) The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection.
(i) (1) (i) This paragraph does not apply in fiscal years 2025 and 2026.
(ii) Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services.
(2) Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses.
(j) The Governor shall:
(1) develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts;
(2) subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and
(3) report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:
(i) an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by:
1. use;
2. if applicable, jurisdiction; and
3. budget program and subdivision;
(ii) the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and
(iii) the recommended appropriations from the Fund identified in accordance with item (2) of this subsection.
// EFFECTIVE SEPTEMBER 30, 2030 PER CHAPTER 759 OF 2025 //
(a) In this section, “Fund” means the Opioid Restitution Fund.
(b) There is an Opioid Restitution Fund.
(c) The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section.
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle.
(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e) The Fund consists of:
(1) all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and
(2) the interest earnings of the Fund.
(f) The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including:
(1) programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction;
(2) supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State;
(3) addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services;
(4) addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services;
(5) evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article:
(i) determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and
(ii) approves the use of money for the pilot program or demonstration study; and
(6) evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality.
(g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(h) (1) Expenditures from the Fund may be made only in accordance with the State budget.
(2) For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions:
(i) appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions:
1. as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or
2. required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and
(ii) the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with:
1. the State–subdivision agreement of January 21, 2022, as amended; or
2. the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions.
(3) The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection.
(i) (1) (i) This paragraph does not apply in fiscal years 2025 and 2026.
(ii) Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services.
(2) Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses.
(j) The Governor shall:
(1) develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts;
(2) subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and
(3) report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on:
(i) an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by:
1. use;
2. if applicable, jurisdiction; and
3. budget program and subdivision;
(ii) the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and
(iii) the recommended appropriations from the Fund identified in accordance with item (2) of this subsection.
(a) The Comptroller may direct the units of the State government to use the method that the Comptroller sets for:
(1) keeping books and accounts;
(2) adopting uniform systems of accounting; or
(3) making reports.
(b) (1) Except as provided in paragraph (2) of this subsection, the Comptroller shall require a unit of the State government to comply with each recommendation of the Legislative Auditor in an audit report on the unit concerning:
(i) its record keeping;
(ii) its use of a uniform system of accounting; and
(iii) its submission of reports.
(2) The Comptroller may waive compliance with a recommendation of the Legislative Auditor if the unit satisfies the Comptroller that the recommendation should not be carried out.
(3) The Comptroller shall report to the Joint Audit and Evaluation Committee on actions under this subsection.
(4) The report shall include the reasons for waiving compliance with a recommendation of the Legislative Auditor.
(a) (1) In this section the following words have the meanings indicated.
(2) “Social organization” means an association or corporation that is operated for a charitable, cultural, educational, historical, humane, industrial, medical, or military purpose.
(3) “State aid” means a contribution, grant, or subsidy of money from the State Treasury.
(b) (1) Each social organization that, by statute, is to receive State aid shall make an agreement:
(i) with the unit of the State government to which the money for the State aid has been appropriated; or
(ii) if the money is not appropriated to a unit, with the Comptroller.
(2) An agreement under this subsection shall:
(i) define the purposes and terms of the State aid; and
(ii) require the social organization to submit to the unit or Comptroller a report on expenditure of the State aid.
(c) (1) Unless the agreement sets another date for submission of the report, a social organization shall submit the report on or before September 1 after the close of the fiscal year in which the social organization received the State aid.
(2) The report shall:
(i) contain an itemized statement that fully and accurately accounts for how the State aid was spent; and
(ii) be verified:
1. by an officer of the social organization; or
2. for a military organization, by the commanding officer.
(d) After a unit or the Comptroller receives a report under this section, the unit or Comptroller:
(1) shall determine whether the social organization has spent and accounted for the State aid in accordance with the agreement; and
(2) if the unit or Comptroller finds inconsistencies between the agreement and the expenditures or operations of the social organization, shall give the Department of Budget and Management and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services notice of the inconsistencies.
(e) To ensure compliance with this section, the unit or the Comptroller may audit the financial records of a social organization.
(a) (1) In this section the following words have the meanings indicated.
(2) “Financial records” means the generally accepted budgets, journals, ledgers, reports of expenses and revenue, or other forms of financial documentation that may be required as a condition for receiving State funds.
(3) “Health or social welfare organization” means an organization that is operated for the promotion of the public health or social welfare, whether or not the organization is tax exempt under § 501(c) of the Internal Revenue Code.
(4) “Uniform accounting standards” means:
(i) accounting standards and procedures that the American Institute of Certified Public Accountants has adopted for voluntary health or social welfare organizations; or
(ii) uniform standards of an equivalent nature that:
1. are applied consistently; and
2. conform to generally accepted accounting principles.
(b) This section does not apply to:
(1) a dentist;
(2) a hospital that the State Health Services Cost Review Commission regulates;
(3) a pharmacist; or
(4) a physician.
(c) (1) This subsection applies only to a contract for the provision of health or social welfare services between:
(i) a unit of the State government; and
(ii) a health or social welfare organization or an individual.
(2) A contract with an individual who is a Maryland resident or with a health or social welfare organization incorporated under the laws of this State shall require the individual or the health or social welfare organization to keep financial records in accordance with uniform accounting standards.
(3) A contract with any other individual or private health or social welfare organization may require the individual or private health or social welfare organization to keep financial records in accordance with uniform accounting standards.
(d) A unit of the State government that makes a grant to a private health or social welfare organization shall require the private health or social welfare organization to keep financial records in accordance with uniform accounting standards.
(e) A unit of the State government may not require an individual or a private health or social welfare organization to keep financial records in a manner that is inconsistent with uniform accounting standards.
(f) (1) (i) The chief accountant of a unit of the State government or of the principal department to which the unit is assigned may examine the financial records of an individual or a health or social welfare organization that receives a grant from the unit.
(ii) The accountant shall give 30 days’ prior notice of an examination under this paragraph.
(2) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, the chief accountant of a unit or of the principal department to which the unit is assigned shall examine any financial records required to be kept under subsection (c) of this section.
(ii) For the financial records required to be kept under subsection (c)(2) of this section, the accountant shall give 30 days’ prior notice of the examination under this paragraph.
(iii) For any financial records required to be kept under subsection (c)(3) of this section, the accountant shall examine the financial records when an examination is authorized by:
1. the secretary of the principal department to which the unit is assigned; or
2. if the unit is not assigned to a principal department, the head of the unit.
(g) A unit of the State government may not:
(1) make a grant to an organization that fails to keep financial records in accordance with uniform accounting standards; or
(2) make a contract with an organization or individual who fails to keep financial records as required under this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “Department” means a principal department of the Executive Branch of the State government.
(3) “Independent unit” means a unit of the State government that is not in a department.
(b) This section does not apply to:
(1) a private provider who provides care for 4 or fewer individuals;
(2) a provider from another state;
(3) a provider of family child care for 6 or fewer children; or
(4) a foster parent with whom a child is placed by the Social Services Administration.
(c) (1) After consultation with the Legislative Auditor, the head of each department or independent unit that contracts with a private provider for care of an individual in a nongovernmental facility shall specify the intervals and manner of examination of the accounts of the private provider.
(2) The examination shall determine whether costs of care for which the private provider has received reimbursement are in accordance with the guidelines of the department or unit for allowable costs.
(d) The department or independent unit shall pay for the examination from the appropriation to the department or independent unit in the State budget.
(e) If an independent certified public accountant is to examine the accounts of a private provider, the head of the department or independent unit shall choose the accountant in accordance with a procedure that the Legislative Auditor has reviewed.
(f) (1) Whenever an examination under this section shows that the reimbursement that a provider has received during the period covered by the examination exceeds the total allowable costs, the department or independent unit shall collect:
(i) the full amount of the excess; or
(ii) a lesser amount if the department or independent unit finds that the collection of the full amount would impair seriously the financial condition of the provider.
(2) Whenever an examination under this section shows that the allowable costs exceed the reimbursement that the provider has received, the department or independent unit shall pay to the provider the difference between the reimbursement and the lesser of the allowable costs or the maximum rate of payment as provided in the State budget.
(g) The head of a department or independent unit shall send to the Secretary of Budget and Management and, subject to § 2–1257 of the State Government Article, the Legislative Auditor:
(1) a copy of a report of each examination under this section; and
(2) a written statement that contains the basis for any finding made under subsection (f)(1)(ii) of this section.
(h) A provision of this section has effect only to the extent that the provision does not conflict with federal law.
(a) (1) In this section the following words have the meanings indicated.
(2) “Developmentally disabled individual” means a severe chronic disability of an individual that:
(i) is attributable to a physical or mental impairment, other than the sole diagnosis of mental illness, or to a combination of mental and physical impairments;
(ii) is manifested before the individual attains the age of 22;
(iii) is likely to continue indefinitely;
(iv) results in an inability to live independently without external support or continuing and regular assistance; and
(v) reflects the need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are individually planned and coordinated for the individual.
(3) “Elderly individual” means an individual who is 60 years old or older.
(b) In addition to any other requirement of this subtitle, each corporation that administers services to elderly or developmentally disabled individuals and receives funds from the State shall be subject to audit of its financial records by:
(1) the State Comptroller; or
(2) the State Legislative Auditor.
(c) This section does not apply to services administered by a nonprofit hospital corporation.
(a) (1) In this section the following words have the meanings indicated.
(2) “Department” means the Department of Budget and Management.
(3) (i) “Grantee” means a for profit or nonprofit entity or association that receives State aid during a fiscal year.
(ii) “Grantee” does not include a unit of State or local government.
(4) “Grantor” means a unit of State government or other State entity that provides State aid to a grantee.
(5) (i) “State aid” means a contribution, grant, or subsidy of $50,000 or more provided through the State operating or capital budget or by the action of a unit of State government from State funds appropriated to that unit.
(ii) “State aid” does not include reimbursements to providers participating in a State program.
(b) (1) (i) A grantor shall submit a report as provided in this subsection to the Department on or before September 1 after the close of each fiscal year in which the grantor provided State aid to a grantee.
(ii) The report shall contain:
1. the name, address, and zip code of each grantee that received State aid from the grantor during the previous fiscal year;
2. the amount of any State aid provided to the grantee; and
3. a description of the State aid provided to the grantee.
(2) The reports required under this subsection shall be in the form and format, including electronic format, that the Department, after consultation with the Department of Information Technology, requires.
(c) (1) The Department of Information Technology, in consultation with the Department of Budget and Management, shall develop and operate a searchable website, accessible to the public at no cost through the Internet.
(2) The searchable website shall contain:
(i) the name of the grantor that provided the State aid;
(ii) the name of the grantee that received the State aid;
(iii) the amount of the State aid that was provided to the grantee;
(iv) the zip code of the grantee that received the State aid; and
(v) a description of the State aid that was provided to the grantee.
(3) The searchable website shall allow a user to search by the following data fields:
(i) the grantee that received the State aid;
(ii) the grantor that provided the State aid; and
(iii) the zip code of any grantee that received State aid.
(d) The Office of Legislative Audits may conduct an audit or review of a grantee in accordance with §§ 2–1221 through 2–1227 of the State Government Article.
(a) In this subtitle the following words have the meanings indicated.
(b) “Board” means the Board of Public Works.
(c) “Capital appreciation bond” means a State bond that accrues interest payable only on the date of maturity.
(d) “Enabling act” means a law that authorizes the creation of a general obligation debt of the State and the sale of State bonds to evidence that debt.
(e) “State bond” means a general obligation bond of the State.
(f) “State debt” means the general obligation debt of the State.
(a) In this Part II of this subtitle the following words have the meanings indicated.
(b) “Committee” means the Capital Debt Affordability Committee.
(c) (1) “Tax supported debt” means:
(i) State debt; and
(ii) other forms of debt, including State agency capital leases supported in whole or part by State tax revenues and debt of the Department of Transportation, the Maryland Stadium Authority, and other units of State government which, in the opinion of the Committee, are supported directly or indirectly by State tax revenues.
(2) “Tax supported debt” does not include capital leases used to finance energy performance contracts entered into under § 12–301 of this article, if, as determined by the Committee, energy savings that are guaranteed by the contractor:
(i) equal or exceed the capital lease payments on an annual basis; and
(ii) are monitored in accordance with reporting requirements adopted by the Committee.
(a) The General Assembly finds that:
(1) for many years, State bonds have had the highest credit rating and, therefore, have been readily marketable at favorable interest rates;
(2) to continue to finance essential capital projects for the benefit of its citizens, the State must keep this rating; and
(3) to keep this rating, authorizations of State debt must be based on the ability of the State to meet its total debt service requirements in light of other calls on its fiscal resources.
(b) The purpose of this Part II of this subtitle is to provide for a State debt management program through which:
(1) a State debt affordability analysis can be made annually;
(2) on the basis of the analysis, proposed capital projects that require new State debt can be evaluated; and
(3) the General Assembly can receive guidance in properly setting priorities among capital projects and appropriations.
This Part II of this subtitle shall be construed liberally to carry out its purpose.
(a) This Part II of this subtitle applies only to tax supported debt.
(b) This Part II of this subtitle does not affect:
(1) the authority of the Governor to submit:
(i) amendments to the consolidated loan budget or to any accompanying bill; or
(ii) instead of amendments, separate bills that authorize State debt; or
(2) the authority of the General Assembly to:
(i) continue its independent analysis of State debt affordability; or
(ii) consider bills that authorize State debt in addition to the bills that accompany the consolidated loan budget.
There is a Capital Debt Affordability Committee in the Executive Department.
The Committee consists of the following 7 members:
(1) 1 individual appointed by the Governor;
(2) as ex officio members:
(i) the Comptroller;
(ii) the Treasurer;
(iii) the Secretary of Budget and Management; and
(iv) the Secretary of Transportation; and
(3) as nonvoting members:
(i) the chair of the Capital Budget Subcommittee of the Senate Budget and Taxation Committee; and
(ii) the chair of the Capital Budget Subcommittee of the House Appropriations Committee.
The Treasurer is the Chairman of the Committee.
(a) The Chairman shall call meetings of the Committee as needed to perform its duties.
(b) The Committee shall invite the Executive Director of the Department of Legislative Services to attend the meetings of the Committee.
(a) The Committee shall review on a continuing basis the size and condition of the State tax supported debt as well as other debt of State units, including the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, and the Baltimore City Community College.
(b) On or before October 20 of each year, the Committee shall submit to the Governor and the General Assembly the Committee’s estimate of the total amount of new State debt that prudently may be authorized for the next fiscal year.
(c) In making the estimate, the Committee shall consider:
(1) the amount of State bonds that, during the next fiscal year:
(i) will be outstanding; and
(ii) will be authorized but unissued;
(2) the capital program prepared by the Department of Budget and Management;
(3) capital improvement and school construction needs during the next 5 fiscal years, as projected by the Interagency Commission on School Construction;
(4) projections of debt service requirements during the next 10 fiscal years;
(5) the criteria that recognized bond rating agencies use to judge the quality of issues of State bonds;
(6) any other factor that is relevant to:
(i) the ability of the State to meet its projected debt service requirements for the next 5 fiscal years; or
(ii) the marketability of State bonds;
(7) the effect of authorizations of new State debt on each of the factors set out in this subsection; and
(8) the amount of issuances, debt outstanding, and debt service requirement of other classes of State tax supported debt as well as other debt of State units, including the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, and the Baltimore City Community College.
(d) The estimate of the Committee:
(1) is advisory; and
(2) does not bind the General Assembly, the Board, or the Governor.
(e) (1) In this subsection, “System” and “academic facilities” have the meanings stated in § 19–101 of the Education Article.
(2) In addition to its other duties under this section, the Committee shall review on a continuing basis the size and condition of any debt of the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, and the Baltimore City Community College.
(3) In preparing an estimate with respect to the authorization of any new State debt, the Committee shall take into account as part of the affordability analysis any debt for academic facilities to be issued by a System.
(4) At the same time that the Committee makes its report as required under subsection (b) of this section, the Committee shall submit to the Governor and the General Assembly the Committee’s estimate of the amount of new bonds for academic facilities that prudently may be authorized in the aggregate for the next fiscal year by the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, and the Baltimore City Community College.
(5) The Committee may request any needed information from a System and shall consider the information in making its estimates, including any information submitted by a System at its own initiative.
(6) This estimate:
(i) is advisory; and
(ii) does not bind the General Assembly, the Board, or the Governor.
On or before November 1 of each year, after considering the current estimate of the Committee, the Governor shall determine:
(1) the total authorizations of new State debt that the Governor considers advisable for the next fiscal year; and
(2) the preliminary allocation of new State debt for:
(i) general construction projects;
(ii) school construction projects; and
(iii) other special projects.
(a) The Department of Budget and Management annually shall prepare for the Governor a draft of the part of the consolidated loan budget that relates to general construction projects.
(b) On or before the 20th day of each regular session of the General Assembly, the Governor shall submit to the General Assembly:
(1) the consolidated loan budget; and
(2) if necessary, 1 or more bills that authorize new State debt to fund the consolidated loan budget.
(c) The consolidated loan budget shall:
(1) contain a complete plan of the proposed projects that any accompanying bills would fund; and
(2) show, by dollar amount and percent, the allocation for:
(i) general construction projects;
(ii) school construction projects; and
(iii) other special projects.
(d) (1) Each bill that the Governor submits under this section shall comply with the requirements of Article III, §§ 34 and 52 of the Maryland Constitution.
(2) An authorization of State debt to fund any part of the consolidated loan budget shall be deemed to be a single work, object, or purpose under Article III, § 52 of the Maryland Constitution.
(a) The General Assembly may authorize the Board to:
(1) borrow money for any public purpose; and
(2) issue State bonds to evidence the debt.
(b) An enabling act shall specify the total principal amount of the debt authorized by the enabling act.
(c) An enabling act may take substantially the following form:
“A BILL ENTITLED
AN ACT concerning
Creation of a State Debt – (Name of Project)
FOR the purpose of authorizing the creation of a State debt not to exceed $....., (for an enabling act that requires an equal matching fund)/ in the amount of $....., (for an enabling act that requires no matching fund or a lesser matching fund) the proceeds to be used as a grant to ..... (name of grantee) for certain development or improvement purposes; providing for disbursement of the loan proceeds, subject to the requirement that the grantee provide and expend a matching fund (if the enabling act requires a matching fund); and providing generally for the issuance and sale of bonds evidencing the loan.
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That:
(1) The Board of Public Works may borrow money and incur indebtedness on behalf of the State of Maryland through a State loan to be known as the ... (name of project) Loan of ... (year) equal to the lesser of (i) $... or (ii) the amount of the matching fund provided in accordance with Section 1(5) below. (For an enabling act that requires an equal matching fund)/ in the total principal amount of $..... (for an enabling act that requires no matching fund or a lesser matching fund). This loan shall be evidenced by the issuance, sale, and delivery of State general obligation bonds authorized by a resolution of the Board of Public Works and issued, sold, and delivered in accordance with §§ 8–117 through 8–124 and 8–131.2 of the State Finance and Procurement Article.
(2) The bonds to evidence this loan or installments of this loan may be sold as a single issue or may be consolidated and sold as part of a single issue of bonds under § 8–122 of the State Finance and Procurement Article.
(3) The cash proceeds of the sale of the bonds shall be paid to the Treasurer and first shall be applied to the payment of the expenses of issuing, selling, and delivering the bonds, unless funds for this purpose are otherwise provided, and then shall be credited on the books of the Comptroller and expended, on approval by the Board of Public Works, for the following public purposes, including any applicable architects’ and engineers’ fees: as a grant to ..... (name of grantee) (referred to hereafter in this Act as “the grantee”) (for an enabling act that requires a matching fund) for (here state the purpose or purposes to which the proceeds of the bonds are to be applied).
(4) An annual State tax is imposed on all assessable property in the State in rate and amount sufficient to pay the principal of and interest on the bonds, as and when due and until paid in full. The principal shall be discharged within 15 years after the date of issue of the bonds.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, .... (year)”.
(d) (1) If an enabling act requires an equal matching fund, the fifth paragraph is as follows:
“(5) Prior to the payment of any funds under the provisions of this Act for the purposes set forth in Section 1(3) above, the grantee shall provide and expend a matching fund. No part of the grantee’s matching fund may be provided, either directly or indirectly, from funds of the State, whether appropriated or unappropriated. No part of the fund may consist of real property, in kind contributions, or funds expended prior to the effective date of this Act. In case of any dispute as to the amount of the matching fund or what money or assets may qualify as matching funds, the Board of Public Works shall determine the matter and the Board’s decision is final. The grantee has until June 1, ... (2 years from the effective date of the Act), to present evidence satisfactory to the Board of Public Works that a matching fund will be provided. If satisfactory evidence is presented, the Board shall certify this fact and the amount of the matching fund to the State Treasurer, and the proceeds of the loan equal to the amount of the matching fund shall be expended for the purposes provided in this Act. Any amount of the loan in excess of the amount of the matching fund certified by the Board of Public Works shall be canceled and be of no further effect.”.
(2) If an enabling act requires a lesser matching fund, the fifth paragraph is as follows:
“(5) Prior to the payment of any funds under the provisions of this Act for the purposes set forth in Section 1(3) above, the grantee shall provide and expend a matching fund of $ ..., (amount of the matching fund to be provided by the grantee). No part of the grantee’s matching fund may be provided, either directly or indirectly, from funds of the State, whether appropriated or unappropriated. No part of the fund may consist of real property, in kind contributions, or funds expended prior to the effective date of this Act. In case of any dispute as to the amount of the matching fund or what money or assets may qualify as matching funds, the Board of Public Works shall determine the matter and the Board’s decision is final. The grantee has until June 1, ... (2 years from the effective date of the Act), to present evidence satisfactory to the Board of Public Works that a matching fund will be provided. If satisfactory evidence is presented, the Board shall certify this fact to the State Treasurer, and the proceeds of the loan shall be expended for the purposes provided in this Act.”.
(e) An enabling act may also contain the following paragraph:
“The proceeds of the loan must be expended or encumbered by the Board of Public Works for the purposes provided in this Act no later than June 1, .... (7 years from the effective date of the Act). If any funds authorized by this Act remain unexpended or unencumbered after June 1, .... (7 years from the effective date of the Act), the amount of the unencumbered or unexpended authorization shall be canceled and be of no further effect. If bonds have been issued for the loan, the amount of unexpended or unencumbered bond proceeds shall be disposed of as provided in § 8–129 of the State Finance and Procurement Article.”.
(f) An enabling act under this section may contain:
(1) an additional provision for all or part of the principal of and interest on the State bonds issued under the enabling act to be paid primarily from sources of funds other than a State tax on assessable property; and
(2) any other additional provision that is appropriate to the purpose of the enabling act and the nature of State bonds.
(a) The Board shall exercise the powers and perform the duties that the General Assembly delegates to the Board in connection with:
(1) the creation of State debt;
(2) the determination of interest on and other terms and conditions of the State debt;
(3) the preparation of State bonds that evidence the State debt;
(4) notice of a sale of State bonds; and
(5) the sale.
(b) The Board shall exercise these powers and perform these duties in accordance with:
(1) Article III, § 34 of the Maryland Constitution;
(2) §§ 8-117 through 8-124 of this subtitle; and
(3) the specific enabling act.
(a) By 1 or more resolutions, the Board may provide for the terms, conditions, security, issuance, sale, delivery, replacement, or payment of the State bonds authorized by an enabling act.
(b) Unless the enabling act provides otherwise, the Board shall use the procedures set forth in §§ 8-117 through 8-124 of this subtitle for the issuance and sale of the State bonds.
By resolution, the Board may provide that the State bonds authorized by an enabling act:
(1) be in 1 or more series;
(2) bear a certain date of issue;
(3) be executed in a certain manner;
(4) be sold in a certain manner at public or private, negotiated sale;
(5) be in certain denominations, not necessarily in equal paramounts;
(6) mature in certain amounts at certain times, not necessarily in consecutive annual installments, but not later than 15 years after their respective dates of issue;
(7) bear interest at certain rates or at rates to be determined in the manner stated in the resolution; and
(8) be paid, as to principal and interest, at certain places.
(a) By resolution, the Board may specify the form in which State bonds are to be issued, including:
(1) a coupon form;
(2) a capital appreciation form;
(3) a variable interest rate form;
(4) a form that qualifies for tax credits, interest subsidies, or other federal tax benefits;
(5) a form that qualifies as a registered form under §§ 54A, 103, and 149 of the Internal Revenue Code or a regulation proposed or adopted under those sections; and
(6) any other registered form.
(b) (1) Whenever the Board provides for the sale of State bonds in registered form, the Board may establish procedures for the registration and transfer of the State bonds.
(2) The Board may exercise any other power that relates to issuance of State bonds in registered form and that is not conferred on the Treasurer.
(c) Whenever the Board provides for the sale of State bonds in registered form, the Treasurer may:
(1) appoint any agent, including an authenticating trustee, corporate trustee, paying agent, registrar, or transfer agent, or use the agent appointed under § 8-135 of this subtitle;
(2) specify the rights, duties, and compensation of the agent; and
(3) in connection with the establishment and maintenance of a central depository system for the transfer or pledge of the State bonds, make agreements with:
(i) custodian banks and their nominees; or
(ii) financial intermediaries and their nominees.
(d) Whenever the Board provides for the sale of State bonds in variable interest rate form, the Treasurer may:
(1) appoint any agent or other contracting party, including an underwriter, remarketing agent, dealer, tender agent, insurer, liquidity provider, or similar entity; and
(2) specify the rights, duties, and compensation of and make agreements with the agent or other contracting party.
(a) By resolution, the Board may provide for all or part of the State bonds authorized by 2 or more enabling acts to be consolidated and sold as a single issue. However, the Board may not include in a consolidated issue any State bonds authorized by an enabling act that specifically exempts the State bonds from this section.
(b) A consolidated issue under this section shall be known as the “State and local facilities loan” of the series and year in which the Board authorizes the sale of the issue.
(c) Notwithstanding any provision of an enabling act, each State bond that is sold as part of a consolidated issue under this section shall be identified by the series and year in which the Board authorizes the sale of the issue.
(a) Upon sale of State bonds authorized by an enabling act, the principal amount of the loan authorized by that enabling act shall be reduced by:
(1) the stated principal amount of the State bonds sold, if the bonds are sold at 95% or more of par; or
(2) the cash proceeds, excluding any accrued interest, received for the State bonds, if the bonds are sold at less than 95% of par.
(b) Whenever State bonds are sold as a consolidated issue at less than 95% of par, the Board, by resolution, shall determine the manner in which the cash proceeds received for the bonds, excluding accrued interest, shall be allocated among the loans included in that issue.
(a) Except as otherwise provided in this subtitle, the Board shall offer State bonds at a public sale.
(b) (1) At least 10 days before the date of a public sale, the Board shall give public notice of the sale.
(2) The notice shall state the date, time, and place of the public sale.
(3) The notice may be given by The Municipal Market Monitor (TM3) or a similar service or such other method as the Treasurer deems appropriate.
(c) (1) Except as provided in paragraph (2) of this subsection, at a public sale, the Board shall sell State bonds for cash to the responsible bidder who:
(i) offers the lowest net interest cost to the State; or
(ii) meets other terms or conditions of sale or issuance that the Board has set.
(2) Whenever the Board determines that no bid is satisfactory and that it is in the best interests of the State to reject all bids, the Board may reject the bids.
(d) (1) By resolution, the Board may postpone the time for receipt of proposals for the bonds without republishing the form of advertisement for the bonds.
(2) (i) The Treasurer shall provide notice of the new date and time of sale not less than 24 hours prior to the time proposals are to be submitted, which date may not be more than 30 days after the originally scheduled date of sale.
(ii) The notice may be given by The Municipal Market Monitor (TM3) or a similar service or such other method as the Treasurer deems appropriate.
(a) In accordance with the authority to issue capital appreciation bonds under § 8-121 of this subtitle, the Board, in a resolution setting forth the terms and conditions of any State bond issue, may designate that all or a portion of the State bonds be issued as capital appreciation bonds.
(b) The Board may sell the capital appreciation bonds at a negotiated sale if the Board determines that a negotiated sale will provide greater access to investors who are residents of the State of Maryland.
(a) In this section, “small denomination bonds” means bonds in denominations of $5,000 or less.
(b) In accordance with § 8-121 of this subtitle, the Board, in a resolution setting forth the terms and conditions of any State bond issue, may designate that all or a portion of the State bonds be issued as small denomination bonds.
(c) Small denomination bonds may be issued in any form permitted under § 8-121 of this subtitle.
(d) The Board may sell small denomination bonds at a negotiated sale if the Board determines that a negotiated sale will:
(1) result in either a more efficient or economical sale of the bonds; or
(2) provide greater access to investors who are residents of the State of Maryland.
(a) In considering the structure of a State of Maryland capital appreciation general obligation bond issue, the Board of Public Works shall be sensitive to the need to help Maryland citizens save for the costs of college.
(b) The Maryland College Savings Bond Advisory Board, created under § 20-101 of the Education Article, shall make recommendations to the Board of Public Works regarding the need for Maryland capital appreciation general obligation bonds for college savings.
(a) Except as provided in subsection (c) of this section, in accordance with the authority to issue variable interest rate bonds under § 8-121 of this subtitle, the Board, in a resolution setting forth the terms and conditions of a State bond issue, may designate that all or a portion of the State bonds be issued as variable interest rate bonds.
(b) The Board may sell variable interest rate bonds at a private, negotiated sale on the terms and conditions that the Board determines to be most advantageous to the State.
(c) At the time of issuance, the aggregate par value of the State’s general obligation variable interest rate bonds shall comprise no more than 15% of the outstanding general obligation indebtedness of the State.
(a) Subject to the provisions of subsection (b) of this section, it is the policy of the State that the preferred method of sale of general obligation bonds of the State by the Board is by public, competitive sale.
(b) The Board may offer the sale of general obligation bonds of the State at a private, negotiated sale, but only if the Board determines that:
(1) extraordinary credit market conditions exist that warrant the use of the method authorized by this subsection instead of the method stated in subsection (a) of this section; and
(2) the terms and conditions for the sale of general obligation bonds of the State, including price, interest rates, and payment dates, achieved through a private, negotiated sale are more advantageous to the State than the terms and conditions for the sale that can be achieved by a public, competitive sale.
(c) Whenever the Board receives no bids or rejects all bids for the State bonds offered at a public, competitive sale, the Board may sell some or all of the State bonds at a private, negotiated sale, on the terms and conditions, including price, interest rates, and payment dates, that the Board determines to be the most advantageous to the State.
(d) Any determination or finding made by the Board pursuant to this section shall be conclusive.
(a) In this section, “Fund” means the State and Local Facilities Loan Fund.
(b) For bonds issued under § 8-122 of this subtitle, the Comptroller shall establish:
(1) the State and Local Facilities Loan Fund;
(2) a premium and expense account in the Fund; and
(3) for accounting purposes only:
(i) a capital project account for each enabling act; and
(ii) separate subaccounts for each project included in enabling acts authorizing multiple projects.
(c) (1) The Comptroller shall credit the proceeds of the sale of State bonds to the Fund.
(2) The Comptroller shall credit to the premium and expenses account:
(i) any part of the proceeds of a bond sale that is a premium; and
(ii) any additional part of the proceeds necessary to pay the expenses of that bond sale.
(d) (1) On approval by the Board, the Comptroller may expend money from the Fund for any expenditure authorized by an enabling act, regardless of whether bonds have been sold to specifically fund that enabling act.
(2) To ensure compliance with § 8-127 of this subtitle, the Comptroller shall account for all expenditures from the Fund on a project-specific basis.
(3) An expenditure made under this subsection may not reduce the amount of bonds authorized under an enabling act for which bonds have not been sold.
(e) (1) Unless payment of expenses otherwise has been provided, the expenses of each bond sale shall be paid from the proceeds of that bond sale credited to the premium and expense account.
(2) After the expenses of each sale of State bonds have been paid, the remaining premium credited to the premium and expense account from that bond sale shall be transferred to the Annuity Bond Fund.
(a) Whenever an appropriation from the General Fund is made in the State budget and is spent to finance any part of a project or program for which an enabling act authorizes State debt, the total State debt authorized by the enabling act is reduced by the lesser of:
(1) the amount of the appropriation; or
(2) the amount of the State debt for which State bonds have not been issued.
(b) Whenever any other funds are made available to finance any part of a project or program for which an enabling act authorizes State debt, the Governor, with the approval of the Board, may reduce the total State debt authorized by the enabling act by an amount not exceeding the amount of funds made available.
(c) The Comptroller shall submit for publication in 2 separate issues of the Maryland Register a notice that:
(1) describes the project or program for which the debt authorization is to be reduced;
(2) states the amount of the reduction;
(3) states the source of the funds on which the reduction is based; and
(4) states the chapter number and year of enactment of the enabling act and each amendment to the enabling act.
(d) A reduction under this section may become effective only after the second publication of notice in the Maryland Register.
(a) Except as provided in § 8-129 of this subtitle, the proceeds of a sale of State bonds may be used only in the manner and for a project or program that is specified in an enabling act authorizing the issuance of State bonds.
(b) (1) Except as provided in § 8-129 of this subtitle, the proceeds of a sale of State bonds may be used only for a capital improvement unless:
(i) the enabling act specifically provides otherwise; or
(ii) in an emergency, the Board unanimously grants a temporary exception.
(2) The Board shall determine whether the object of an expenditure is a capital improvement. The standard for this determination is whether the useful life of the object equals or exceeds the life of the State bonds.
(c) The Board shall enforce the provisions of this section.
(a) If, within 2 years after the date of an authorization of State debt, evidence that a required matching fund will be provided has not been presented to the Board or no part of the project or program for which the enabling act authorized the State debt is under contract and the Board has not encumbered money for any part of the project or program, the authorization terminates unless:
(1) the enabling act provides otherwise; or
(2) in an emergency, the Board unanimously grants a temporary exception for a period of 1 year.
(b) Unless otherwise provided in an enabling act, an authorization of State debt for a project or program shall terminate no later than 1 year after the abandonment, completion, or acceptance of the project or program, as determined by the Board.
(c) Except to the extent that money authorized by an enabling act for a State project or program has been encumbered by the Board, an authorization of State debt shall automatically terminate 7 years after the date of the authorization, unless:
(1) the enabling act provides otherwise; or
(2) in an emergency, the Board unanimously grants a temporary exception for 1 year.
(d) If bonds have not been issued, the amount of any unissued bonds from a terminated authorization shall be canceled and be of no further effect.
(e) If bonds have been issued, the amount of any unspent bond proceeds from a terminated authorization shall be disposed of as provided in § 8-129 of this subtitle.
(f) (1) The Board shall enforce the provisions of this section.
(2) A failure to comply with or give effect to the provisions of this section may not affect the validity or enforceability of State debt.
(g) The Board shall submit for publication in the Maryland Register a notice of any authorization of State debt that has been terminated or extended under this section; the notice shall include the chapter number and year of enactment of the enabling act and each amendment to the enabling act.
(h) A termination or extension under this section may become effective only after the publication of notice in the Maryland Register.
(i) (1) The Treasurer, in consultation with the Comptroller, shall submit a report on January 1 each year to the Governor and, in accordance with § 2-1257 of the State Government Article, the General Assembly.
(2) The report shall list all projects or programs for which authorization would be terminated in the upcoming year under the provisions in this section or § 7-305 of this article.
(a) With the approval of the Board, the Governor shall dispose of unspent proceeds of an enabling act within 1 year after the termination of the State debt authorization under § 8-128 of this subtitle.
(b) The Governor shall:
(1) use the proceeds to reduce State debt authorizations, as provided in § 8-126(b) through (d) of this subtitle;
(2) allocate the proceeds to the Construction Contingency Fund, as provided in § 3-609 of this article; or
(3) order the proceeds to be credited to the Annuity Bond Fund, to pay the outstanding bonded indebtedness of the State.
(c) The Board shall enforce the provisions of this section.
The Department of Budget and Management, with the approval of the Board, shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article to implement the provisions of §§ 8-128 and 8-129 of this subtitle.
(a) Subject to the limitations in this section, the Board of Public Works may issue new bonds to refund its outstanding bonds.
(b) The power to issue bonds under this section is in addition to any other power to borrow.
(c) The Board may issue bonds under this section only for:
(1) the public purpose of realizing for the State a savings in the total cost of debt service on a direct comparison or present value basis; or
(2) the public purpose of debt restructuring that reduces the total cost of debt service.
(d) The Board may:
(1) provide that bonds under this section be in 1 or more series; and
(2) vary the amount of the series.
(e) The total principal amount of the bonds issued under this section may exceed the total principal amount of the bonds that are being refunded.
(f) Bonds that are being refunded and that are subject to redemption before their stated dates of maturity may be called for redemption:
(1) on the earliest redemption date; or
(2) at a later date that the Board determines.
(g) (1) The Treasurer shall invest and apply proceeds of a sale of bonds issued under this section to ensure that the principal and redemption premium of, and interest on, the bonds that are being refunded will be paid in full when due.
(2) The Treasurer may deposit any part of the proceeds of the sale of bonds issued under this section in a trust fund with a trust company or other banking institution, in the name of the State.
(3) The trustee may invest and reinvest money in the trust fund in:
(i) obligations of the United States;
(ii) obligations guaranteed by the United States;
(iii) certificates of deposit or time deposits secured by an obligation of the United States;
(iv) certificates of deposit or time deposits secured by an obligation guaranteed by the United States; or
(v) any obligation or other investment described in § 6–222(b) of this article.
(4) Interest, income, and profits on the investment may be applied in any lawful manner, including to the payment of:
(i) the bonds that are being refunded; and
(ii) the bonds issued under this section.
(5) The trustee shall make money in the trust fund available, as the Board requires, for the payment of:
(i) the principal and redemption premium of, and interest on, the bonds that are being refunded;
(ii) the principal and redemption premium of, and interest on, the bonds issued under this section; or
(iii) any other related costs.
(6) The Comptroller shall account for the proceeds of a sale of bonds issued under this section as nonbudgeted funds.
(h) All or any part of the bonds issued under this section may be made payable from and secured by:
(1) money in the Annuity Bond Fund established under § 8-132 of this subtitle; or
(2) other money or security that the State provides.
(i) Nothing in this section shall prevent issuance and sale of refunding bonds the interest on which is not excludable from gross income for federal income tax purposes.
(a) (1) In this section the following words have the meanings indicated.
(2) “Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code.
(3) “Proceeds” means money received from the sale of State bonds, and includes any money deemed to be proceeds of State bonds under the Code.
(b) The Treasurer and the Comptroller shall establish and maintain funds and accounts for the administration, management, investment and accounting of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on State bonds.
(c) The Treasurer shall manage and invest proceeds, including any investment earnings on proceeds, in a manner so as to maintain the exclusion from gross income for federal income tax purposes of interest on State bonds. The Treasurer shall restrict the yields on investments of proceeds if and to the extent necessary to maintain the exclusion from gross income for federal income tax purposes of interest on State bonds.
(d) The Treasurer and the Comptroller shall prepare and maintain records of the receipt, deposit, investment, management, disbursement and application of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to maintain or verify the exclusion from gross income for federal income tax purposes of interest on State bonds.
(e) The Treasurer shall establish a separate rebate fund to be used to make any payments to the United States with respect to investment earnings on proceeds that may be required from time to time by the Code. There may be separate accounts within the rebate fund. Amounts deposited to the rebate fund shall be used only for the purpose of making rebate payments to the United States. The Treasurer shall make payments from the rebate fund as may be required from time to time in order to comply with the Code and to maintain the exclusion from gross income for federal income tax purposes of interest on State bonds. Any excess money held in the rebate fund with respect to an issue of State bonds after all required rebate payments for that issue have been made, as certified by the Treasurer, shall be deposited in the General Fund.
(f) The Treasurer and the Comptroller shall prepare and file from time to time with the appropriate agency of the United States any forms, information, and reports with respect to State bonds and the expenditure and investment of proceeds that may be required under the Code.
(g) For purposes of doing whatever is necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on State bonds, the Board, the Treasurer, and the Comptroller shall each:
(1) take any other or further actions;
(2) enter into any agreement or covenant regarding the use of proceeds, including any investment earnings on proceeds, the deposit of money to the rebate fund and the making of rebate payments; and
(3) provide certifications of facts and estimates.
(h) This section does not prevent the Board from authorizing the issuance and sale of State bonds the interest on which is not excludable from gross income for federal income tax purposes if the Board in its authorizing resolution finds that to be in the best interests of the State.
The State bonds, the transfer of State bonds, the interest payable on State bonds, and any income derived from State bonds, including profit realized in the sale or exchange of State bonds, are exempt from State and local taxes.
(a) In this section, “Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code.
(b) There is an Annuity Bond Fund.
(c) The Comptroller shall:
(1) credit to the Annuity Bond Fund any money appropriated in the State budget to:
(i) meet the debt service requirements on State bonds; and
(ii) pay the costs of fiscal agents and other contracting parties appointed by the State Treasurer under §§ 8–121 and 8–136 of this subtitle; and
(2) as specified in the appropriation, use the money to meet the debt service on the State bonds and pay fiscal agents and other contracting parties’ costs.
(d) Any premium from the sale of State bonds transferred to the Annuity Bond Fund under § 8–125 of this subtitle may be used to pay for:
(1) debt service on State bonds;
(2) capital projects; or
(3) if necessary or appropriate from time to time to comply with the requirements of the Code, any other use authorized by the Code.
(a) The source of payment for the principal of and interest on each State bond that is sold as part of a State and local facilities loan shall be as provided in the enabling act under which the State bond is issued.
(b) This section does not affect any exemption from taxation provided by law.
(a) (1) Subject to the provisions of subsection (b) of this section, on or before May 1 of each year, the Board shall certify to the governing body of each county the rates of State tax on assessable property needed to meet the debt service requirements during the next taxable year on all the State bonds that the Board anticipates will be outstanding during that year.
(2) Each governing body immediately shall collect the tax at the rates the Board certifies under this section.
(b) If, on or before May 1 of any year, the Comptroller certifies to the Board that the General Assembly has appropriated enough money to meet the debt service requirements during the next taxable year on an issue of State bonds:
(1) the Board, by resolution, may determine that the tax otherwise required by the enabling act under which those State bonds are issued need not be imposed for that year; and
(2) the Governor, by proclamation issued under the resolution, shall declare that the taxes otherwise required by the enabling act may not be collected during that year.
(a) In this section, “financial institution” has the meaning stated in § 6-201 of this article.
(b) The Treasurer may appoint any financial institution as a fiscal agent.
(c) During its agency, the fiscal agent shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.
(d) (1) In accordance with the procedures that the Treasurer sets, a fiscal agent shall pay at the financial institution, from money advanced to the agent, the interest on State debt and, as the principal matures, the principal.
(2) The fiscal agent shall keep a receipt for each payment.
(e) Each fiscal agent shall:
(1) allow the Treasurer to inspect the agent’s accounts at any time; and
(2) provide copies of the accounts on request of:
(i) the Senate;
(ii) the House of Delegates;
(iii) the Comptroller; or
(iv) the Treasurer.
(f) At least once every 6 months, each fiscal agent shall send to the Treasurer:
(1) an accounting of the State bonds and coupons that the agent has redeemed since the last accounting or transmittal under this subsection;
(2) (i) a certificate that states the total number of those State bonds and coupons and that attests to the destruction of all of them by a method satisfactory to the Treasurer; or
(ii) if the Treasurer requires, the State bonds and coupons that the agent has redeemed since the last accounting or transmittal under this subsection;
(3) an accounting of the State bonds and coupons that have not been redeemed during any allowed redemption period that expired since the prior accounting provided under this subsection; and
(4) the total unredeemed principal and interest on any State bonds and coupons for which the redemption period has expired since the prior accounting provided under this subsection.
(g) (1) The Treasurer shall examine, count, and record each State bond and coupon that a fiscal agent returns.
(2) Once every 2 years, after the Legislative Auditor verifies the records of the Treasurer, the Comptroller and the Treasurer or their deputies shall destroy all State bonds and coupons that the fiscal agents returned before the close of the last fiscal year.
(3) The State bonds and coupons shall be destroyed in the presence of the Legislative Auditor or a designee of the Auditor.
(4) The Comptroller, Treasurer, and Legislative Auditor shall execute a certificate that states the total number of State bonds and coupons destroyed and that attests to the destruction of all of them.
(h) The Treasurer shall:
(1) keep all certificates of destruction; and
(2) send copies of each certificate to the presiding officers of the General Assembly.
(i) The Treasurer shall:
(1) deposit unredeemed principal and interest into an unpresented bond and coupon account; and
(2) dispose of unredeemed principal and interest as provided in Title 17 of the Commercial Law Article.
If the Board has authorized the transaction and approved the form of the agreement, to improve the management of State general obligation debt or to reduce the cost of servicing such debt, and after giving due consideration to the creditworthiness of the counterparties, the Treasurer may:
(1) enter into interest rate exchange agreements or contracts providing for payments based on levels of or changes in interest rates; and
(2) appoint any agents necessary to implement and administer such agreements or contracts.
Subject to the limitations in this Part V of this subtitle, and at the direction of the Board, the Treasurer may borrow money, on the credit of the State, in anticipation of:
(1) tax receipts, as set forth in the revenue estimates that support an enacted State budget; or
(2) proceeds of a sale of State bonds.
The Board shall give the President of the Senate and the Speaker of the House of Delegates at least 10 days’ prior notice of a loan under this Part V of this subtitle.
The loans outstanding under this Part V of this subtitle may not exceed a total principal amount of $100,000,000.
The Board shall determine the interest rates on loans under this Part V of this subtitle.
(a) A loan under this Part V of this subtitle in anticipation of proceeds of a sale of State bonds shall be repaid within 180 days after the date of the loan.
(b) A loan under this Part V of this subtitle in anticipation of tax receipts shall be repaid within 180 days after the date of the loan but no later than 45 days after the close of the fiscal year.
(c) The Board may not extend a time limit set in this section.
(a) Whenever the owner of a State bond or coupon from a State bond satisfies the Treasurer, by legal and competent evidence, that the State bond or coupon has been lost and gives the Treasurer satisfactory security to indemnify the State against any other claim on the State bond or coupon, the Treasurer may issue a duplicate State bond or duplicate coupon.
(b) Each duplicate State bond or duplicate coupon shall:
(1) show on its face that it is a duplicate of a lost State bond or coupon; and
(2) correspond in amount with the lost State bond or coupon.
(a) In this subtitle the following words have the meanings indicated, unless the context clearly requires otherwise.
(b) (1) “Bond” means an obligation for the payment of money, by whatever name known or source of funds secured, issued by a State unit under general or special statutory authority.
(2) “Bond” includes:
(i) a bond;
(ii) a certificate of indebtedness;
(iii) an interim certificate; and
(iv) a note.
(c) “Enabling act” means a law that authorizes a State unit to create a debt and to sell bonds to evidence that debt.
(d) “Resolution” means a resolution or other evidence of official action customarily used by a State unit.
(e) (1) “State unit” means a unit or instrumentality of the State.
(2) “State unit” does not include the State.
This subtitle does not apply to an entity that is governed by Title 19, Subtitles 1, 2, and 9 and Subtitle 6, Part I of the Local Government Article.
(a) A State unit authorized to issue bonds may issue bonds:
(1) in coupon form; or
(2) notwithstanding any other provision of law, in a form that qualifies as a registered form under §§ 103 and 149 of the Internal Revenue Code or a regulation proposed or adopted under those sections.
(b) Whenever a State unit provides for the sale of bonds in registered form, the State unit may:
(1) establish procedures for the registration and transfer of the bonds;
(2) appoint any agent, including an authenticating trustee, corporate trustee, paying agent, registrar, or transfer agent;
(3) in connection with the establishment and maintenance of a central depository system for the transfer or pledge of the bonds, make agreements with:
(i) custodian banks and their nominees; or
(ii) financial intermediaries and their nominees; and
(4) exercise any other power that relates to issuance of bonds in registered form.
(a) (1) This section does not apply if the total principal amount of the authorized issue is $25,000 or less.
(2) This section does not apply to a bond that:
(i) matures within 1 year after the date of issue and is issued:
1. in anticipation of tax receipts;
2. to meet current expenses; or
3. to meet an emergency;
(ii) is sold to the United States or a unit or instrumentality of the United States;
(iii) is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or
(iv) is issued under any other plan to refund or refinance in exchange, bond for bond, an outstanding maturing debt, other than:
1. a current or floating debt; or
2. a bond under item (i) of this paragraph.
(3) This section does not apply if:
(i) the proceeds of the sale of bonds are to be used with a grant from the United States or a unit or instrumentality of the United States to finance public works; and
(ii) in the opinion of the Attorney General, the agreement or other writing referring to the grant conditions the grant on the prior execution, by the State unit and a prospective buyer, of a contract for the sale of the bonds when issued.
(4) This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.
(5) This section does not apply to bonds issued under an enabling act that specifically states that this section does not apply or that provides a different method for the sale of the bonds.
(b) A State unit shall offer bonds at a public sale.
(c) (1) A State unit shall give notice of a public sale of bonds at least twice in at least 1 newspaper with a general circulation in the State. The 1st publication shall appear at least 10 days before the date of sale.
(2) The notice shall:
(i) be in the form required in the resolution that authorizes the issuance of the bonds;
(ii) state the date, time, and place of the public sale;
(iii) describe the bonds by reference to the enabling act under which they are authorized;
(iv) state the date of issue;
(v) state the total principal amount;
(vi) state the schedule of maturities;
(vii) state the interest payable or the manner of determining the interest;
(viii) state the purpose for which the proceeds will be used;
(ix) describe the general form of the bonds, including:
1. whether the bonds will be in coupon or registered form; and
2. whether the principal or interest or both will be registrable;
(x) state that each bid must be made in writing by sealed proposal; and
(xi) state the amount of the good faith deposit that the State unit has determined must accompany the bid.
(3) The notice may reserve to the State unit the right to reject any or all bids.
(d) Except as provided in subsection (e) of this section and § 8-207 of this subtitle, the State unit shall sell the bonds to the highest bidder or bidders at the public sale.
(e) (1) If the State unit has reserved the right to reject bids and does reject all bids, the State unit, within 30 days after rejecting all the bids, may sell the bonds at a private sale for not less than the highest amount bid by an acceptable bidder at the public sale.
(2) If the State unit has reserved the right to reject all bids and does reject all bids and fails to sell the bonds at a private sale within the 30-day period under paragraph (1) of this subsection, the State unit may sell the bonds only at another public sale after notice as required in subsection (c) of this section.
(a) This section does not apply to bonds issued under an enabling act that specifically states that this section does not apply.
(b) Whenever a State unit simultaneously issues bonds authorized under 2 or more enabling acts, the State unit may allow submission of a bid that:
(1) is for bonds authorized under 1 enabling act; and
(2) is conditioned on the acceptance of 1 or more companion bids for bonds authorized under 1 or more of the other enabling acts.
(c) Whenever, as a whole, a set of bids under subsection (b) of this section yields to the State unit more than individual bids, the State unit shall accept the set even if 1 or more of the bids in the set yields less than the individual bids.
(a) (1) This section does not apply to a bond that:
(i) matures within 1 year after the date of issue and is issued:
1. in anticipation of tax receipts;
2. to meet current expenses; or
3. to meet an emergency;
(ii) is sold to the United States or a unit or instrumentality of the United States;
(iii) is issued under a plan of composition approved in a proceeding under Chapter IX of the United States Bankruptcy Act; or
(iv) is issued under any other plan to refund or refinance in exchange, bond for bond, an outstanding maturing debt, other than:
1. a current or floating debt; or
2. a bond under item (i) of this paragraph.
(2) This section does not apply to bond or grant anticipation notes issued under Part III of this subtitle.
(3) This section does not apply to bonds issued under an enabling act that specifically states that this section does not apply or that provides a different method for establishing the maturity of the bonds.
(b) (1) A State unit shall issue bonds on a serial maturity plan.
(2) The State unit may:
(i) vary the amounts of the series; and
(ii) provide for the maturity of a series in consecutive annual installments or at longer intervals.
(c) (1) The maturity date of the final series shall be based on the purpose for which the bonds are issued:
(i) within the time limit that applies under the schedule in paragraph (2) of this subsection; or
(ii) if more than 1 time limit applies, within the shortest applicable time limit.
(2) The schedule of maturity dates is as follows:
Limit on Maturity Purpose of Issue of Issue Paving existing highways or streets ………………… 10 years Airports and buildings constructed or to be constructed on airports ………………………………… 15 years Highway construction …………………………………… 20 years Electric light and power systems ……………………… 25 years Gas systems ……………………………………………… 25 years Grade crossing eliminations …………………………… 25 years Harbor improvements …………………………………… 25 years School construction ……………………………………… 25 years All unscheduled permanent structures of durable Materials …………………………………………………… 25 years Bridges ……………………………………………………… 30 years Land acquired for permanent improvements ………… 40 years Sewerage installation ……………………………………… 40 years Water Systems ……………………………………………… 40 years All other unscheduled proprietary or public purposes 40 years
(a) Subject to the limitations in this section, with the approval of the Board of Public Works, a State unit authorized to issue bonds may issue new bonds to refund its outstanding bonds.
(b) The power to issue bonds under this section is in addition to any other power to borrow.
(c) A State unit may issue bonds under this section only for:
(1) the public purpose of realizing for the State unit a savings in the total cost of debt service on a direct comparison or present value basis;
(2) the public purpose of debt restructuring that reduces the total cost of debt service; or
(3) the public purpose of debt restructuring that the State unit determines:
(i) is in its best interests;
(ii) is consistent with its long term financial plan; and
(iii) realizes a financial objective of the State unit, including improvement of the relationship of debt service to any source of payment such as taxes, assessments, or other charges.
(d) A State unit may:
(1) provide that bonds under this section be in 1 or more series; and
(2) vary the amount of the series.
(e) (1) The total principal amount of the bonds issued under this section may exceed the total principal amount of the bonds that are being refunded.
(2) To determine whether the bonds under this section are within any limit on debt that applies to the State unit:
(i) the amount of the bonds that are being refunded shall be subtracted from its total outstanding debt; and
(ii) the amount of the bonds issued under this section shall be added to the difference.
(f) (1) Except as provided in paragraph (2) of this subsection, a State unit shall issue bonds under this section in accordance with the procedures that applied to issuance of the bonds that are being refunded.
(2) If, at a public meeting, the State unit determines that it would be in the public interest, the State unit may sell bonds issued under this section at a private sale, without soliciting bids.
(g) Bonds that are being refunded and that are subject to redemption before their stated dates of maturity may be called for redemption:
(1) on the earliest redemption date; or
(2) at a later date that the State unit determines.
(h) (1) A State unit shall invest and apply proceeds of a sale of bonds issued under this section to ensure that the principal and redemption premium of, and interest on, the bonds that are being refunded will be paid in full when due.
(2) The State unit may deposit any part of the proceeds of the sale of bonds issued under this section in a trust fund with a trust company or other banking institution, in the name of the State unit.
(3) The trustee may invest and reinvest money in the trust fund in:
(i) obligations of the United States;
(ii) obligations guaranteed by the United States;
(iii) certificates of deposit or time deposits secured by an obligation of the United States; or
(iv) certificates of deposit or time deposits secured by an obligation guaranteed by the United States.
(4) Interest, income, and profits on the investment may be:
(i) considered to be revenue of a revenue project; and
(ii) applied in any lawful manner, including to the payment of:
1. the bonds that are being refunded; and
2. the bonds issued under this section.
(5) The trustee shall make money in the trust fund available, as the State unit requires, for the payment of:
(i) the principal and redemption premium of, and interest on, the bonds that are being refunded;
(ii) the principal and redemption premium of, and interest on, the bonds issued under this section; or
(iii) any other related costs.
(i) All or any part of the bonds issued under this section may be made payable from and secured by:
(1) money in the trust fund; or
(2) other money or security that the State unit provides.
(a) A State unit authorized to issue bonds:
(1) subject to the limitations in this section and notwithstanding any other law, if the State unit determines that it is in the public interest, may issue and sell the bonds in denominations of less than $1,000, in any form; and
(2) subject to any other provision of law, may set the prices for and the interest rates to be paid on the bonds.
(b) (1) A State unit may not have bonds outstanding under this section in excess of a total principal amount of $1,000,000.
(2) The total debts of a State unit, including bonds under this section, may not exceed a limit set by law.
(c) A State unit may sell bonds issued under this section in any manner that the State unit considers appropriate, notwithstanding §§ 8-206 and 8-208 of this subtitle or any other law that requires the solicitation of competitive bids or the public sale of bonds to the highest bidder or bidders or that regulates the manner in which the sale shall be advertised or the bonds sold.
(d) (1) A State unit that issues bonds under this section shall approve a disclosure document that includes:
(i) a description of the security for the bonds;
(ii) a statement of the purposes for which the proceeds of the bonds will be used;
(iii) a description of the financial condition of the State unit;
(iv) a statement of the prices for and the interest rates to be paid on the bonds; and
(v) a statement of the times and places of payment of the principal of and interest on the bonds.
(2) The State unit shall make the disclosure document available to buyers of the bonds.
(a) (1) In this section the following words have the meanings indicated.
(2) “Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code.
(3) “Financial officer” means the Controller, the director of finance or similar official of a unit of the State government or a political instrumentality of the State that has authority to issue bonds. “Financial officer” includes, to the extent necessary, the Treasurer and the Comptroller.
(4) “Proceeds” means money received from the sale of bonds, and includes any money deemed to be proceeds of bonds under the Code.
(b) The financial officer may establish and maintain funds and accounts for the administration, management, investment and accounting of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.
(c) The financial officer may manage and invest proceeds, including any investment earnings on proceeds, in a manner so as to maintain the exclusion from gross income for federal income tax purposes of interest on the bonds. The financial officer may restrict the yields on investments of proceeds if and to the extent necessary to maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.
(d) The financial officer may prepare and maintain records of the receipt, deposit, investment, management, disbursement and application of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to maintain or verify the exclusion from gross income for federal income tax purposes of interest on the bonds.
(e) (1) The financial officer may establish a separate rebate fund to be used to make any payments to the United States with respect to investment earnings on proceeds that may be required from time to time by the Code.
(2) There may be separate accounts within the rebate fund.
(3) Amounts deposited to the rebate fund shall be used only for the purpose of making rebate payments to the United States.
(4) The financial officer may make payments from the rebate fund as may be required from time to time in order to:
(i) comply with the Code; and
(ii) maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.
(5) Any excess money held in the rebate fund with respect to an issue of bonds after all required rebate payments for that issue have been made, as certified by the financial officer, shall be applied in a manner consistent with the Code.
(f) The financial officer may prepare and file from time to time with the appropriate agency of the United States any forms, information, and reports with respect to the bonds and the expenditure and investment of proceeds that may be required under the Code.
(g) The financial officer and other officers of a State unit may:
(1) take any other or further actions;
(2) enter into any agreement or covenant regarding the use of proceeds, including any investment earnings on proceeds, the deposit of money to the rebate fund and the making of rebate payments; and
(3) provide certifications of facts and estimates, that may be necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on the bonds.
(h) Nothing in this section shall prevent the State unit from authorizing the issuance and sale of bonds the interest on which is not excludable from gross income for federal income tax purposes.
(a) A State unit authorized to issue bonds may issue and sell bond anticipation notes if, in the resolution that authorizes the notes, the State unit covenants to:
(1) pay from the proceeds of the bonds in anticipation of the sale of which the notes are issued:
(i) the principal of the notes; and
(ii) to the extent that the interest on the notes is not paid from the proceeds of sale of the notes, the interest on the notes; and
(2) issue the bonds as soon as there is no longer a reason for deferring their issuance.
(b) A State unit may issue and sell grant anticipation notes in anticipation of the receipt of a grant from the United States, the State, or any of their units if, in the resolution that authorizes the notes, the State unit covenants to pay from the proceeds of the grant in anticipation of the receipt of which the notes are issued:
(1) the principal of the notes; and
(2) the interest on the notes.
(a) Bond and grant anticipation notes issued under this Part III of this subtitle shall be authorized by resolution of the State unit.
(b) (1) The resolution shall state:
(i) the authority for the notes and, if the notes are bond anticipation notes, the authority for the bonds;
(ii) the amount of notes authorized; and
(iii) the terms of the notes.
(2) The resolution shall specify that the notes:
(i) be sold in a certain manner, at public sale or, if the State unit considers private negotiation to be in its best interest, at private sale;
(ii) mature at certain times;
(iii) bear interest at certain rates or at rates to be determined in the manner stated in the resolution; and
(iv) be sold for certain prices or for prices to be determined in the manner stated in the resolution, which may be at, above, or below par.
(3) The resolution may provide that the notes:
(i) be in 1 or more series, as money is required; and
(ii) be renewable at maturity with or without resale.
(a) A State unit may not issue bond anticipation notes under this Part III of this subtitle in a total principal amount that exceeds the authorized amount of the bonds in anticipation of the sale of which the notes are issued and sold.
(b) A State unit may not issue grant anticipation notes under this Part III of this subtitle in a total amount, including interest, that exceeds the amount of the grant in anticipation of the receipt of which the notes are issued and sold.
Grant anticipation notes may not be sold under this Part III of this subtitle until the State unit receives from the grantor a written commitment for the grant.
(a) A bond anticipation note may not be issued under this Part III of this subtitle unless it is signed, endorsed, or guaranteed in the manner required by law for the bonds in anticipation of which the note is issued.
(b) A bond or grant anticipation note is valid and binding in accordance with its terms notwithstanding that:
(1) an official whose signature appears on the note is no longer an official when the note is delivered; or
(2) an official whose signature appears on the note became an official after the note was issued.
(a) (1) The principal of and interest on bond anticipation notes under this Part III of this subtitle shall be payable from:
(i) the 1st proceeds of sale of the bonds; or
(ii) the tax or other revenue that the State unit has pledged to the payment of the bonds.
(2) One year’s interest on the notes, or on any renewal of the notes, accounting from the date of the initial issue of the notes, may be paid from the proceeds of sale of the notes.
(b) (1) Subject to paragraphs (2) and (3) of this subsection, the principal of and interest on grant anticipation notes under this Part III of this subtitle shall be payable from the proceeds of the grant.
(2) The State unit may make the grant anticipation notes payable only from the proceeds of the grant and need not pledge the faith and credit or taxing power of the State unit.
(3) If the State unit does not pledge its faith and credit or taxing power, the grant anticipation notes are not a debt or a charge against the general credit or taxing power of the State unit under any constitutional provision or statutory limitation.
The proceeds of sale of bond anticipation notes shall be spent:
(1) 1st, for payment of the expenses of issuance of the notes; and
(2) then, subject to § 8-218(a)(2) of this subtitle, only for the public purposes for which the bonds are authorized.
(a) (1) Except for the provisions of this section, each State unit shall comply with the provisions, requirements, and limitations in the enabling act.
(2) If a State unit is unable to sell bonds to pay the bond anticipation notes under this Part III of this subtitle when due because of an interest rate limitation in the enabling act, the State unit may:
(i) issue bonds in a total principal amount sufficient to pay the principal of and not more than 1 year’s interest on the notes; and
(ii) provide for payment of interest on the bonds at a rate that is higher than the interest rate limitation in the enabling act.
(3) This section is supplemental authority for a State unit to issue bonds free of an interest rate limitation to pay outstanding bond anticipation notes under this Part III of this subtitle.
(b) A resolution that authorizes the issuance of bonds under subsection (a)(2) of this section shall refer to:
(1) the enabling act; and
(2) this section.
(a) A State unit may issue bond or grant anticipation notes under this Part III of this subtitle as notes in the nature of commercial paper.
(b) A bond or grant anticipation note issued as a note in the nature of commercial paper may be secured by:
(1) a trust indenture with a trust company, or a bank with powers of a trust company, in or outside the State; and
(2) a letter of credit, line of credit, or other credit arrangement from or with a lending institution.
(c) (1) For bond anticipation notes, the credit arrangement may be made payable out of:
(i) the 1st proceeds of sale of the bonds; or
(ii) the tax or other revenue that the State unit has pledged to payment of the principal of and interest on the bonds.
(2) For grant anticipation notes, the credit arrangement may be made payable out of the proceeds of the grant.
The following obligations are exempt from State and local taxation:
(1) a bond or grant anticipation note issued under this part;
(2) a bond issued to pay the notes issued under item (1) of this section; and
(3) the interest on the obligations.
(a) Except as provided in subsection (b) of this section or in other law, a contract to spend the proceeds of a general obligation loan that has been authorized by any act of the General Assembly may not be executed until the Board of Public Works approves the contract.
(b) (1) Approval by the Board of Public Works is not required if the act merely authorizes a county or municipal corporation to borrow money and no State funds are involved.
(2) Approval by the Board of Public Works is not required for a contract or other authorization to spend the proceeds of a general obligation loan for public school construction projects.
(a) In this section, “bond” means an obligation of the State or of any of its units or instrumentalities.
(b) If a bond otherwise complies with the requirements of the Commercial Law Article for investment securities, the bond shall be considered to be an investment security notwithstanding that:
(1) the resolution or other authority under which the bond is issued subjects the bond to an indenture or agreement that is separate from the resolution or authority;
(2) the resolution or other authority under which the bond is issued limits payment of principal and interest to:
(i) the proceeds of limited sources of revenue; or
(ii) a special fund established for that purpose;
(3) any law limits payment of principal and interest to a certain amount or rate of tax that may be imposed; or
(4) principal or interest are registrable.
(c) A bond that is considered to be an investment security under subsection (b) of this section has all the attributes of an investment security that are possessed by a bond that is:
(1) issued on the full faith and credit of the issuer;
(2) payable to bearer; and
(3) secured as to the payment of principal and interest by the unlimited taxing power of the issuer.
(a) In this section, “enabling act” has the meaning stated in § 8–101 of this title.
(b) (1) Unless otherwise prohibited by law and subject to paragraph (2) of this subsection, an appropriation authorized by an enabling act may be used to reimburse a grant recipient for an expenditure incurred on or before the effective date of the enabling act.
(2) An appropriation may not be used to reimburse a grant recipient for an expenditure if the expenditure is not consistent with the public purpose of the appropriation.
(a) (1) In this section the following words have the meanings indicated.
(2) “Convention facility” has the meaning stated in § 10–601 of the Economic Development Article.
(3) “Institution of higher education” has the meaning stated in § 10–101 of the Education Article.
(b) This section applies to a convention facility and a facility at an institution of higher education that receives State capital funding totaling at least $2,000,000 in the operating or capital budget bills in the prior fiscal year.
(c) Subject to subsection (d) of this section, on or before October 1 each year, the entity responsible for facilities maintenance for a facility specified in subsection (b) of this section shall submit a report in accordance with § 2–1257 of the State Government Article to the Senate Budget and Taxation Committee and the House Appropriations Committee on the entity’s deferred maintenance plan.
(d) The report required under subsection (c) of this section shall include:
(1) the dollar amount that the entity spends per square foot on deferred maintenance;
(2) the total dollar value of the backlog for deferred maintenance;
(3) the process for facility condition assessment, including the process for rating and assessing deferred maintenance projects;
(4) the number of staff hours devoted to inspecting and analyzing the need for facility repair and maintenance; and
(5) the entity’s plan to address all deferred maintenance projects.
The purpose of this subtitle is to codify the authority of the State Treasurer to enter into a capital lease agreement and to establish a method for financing a capital lease as defined in this subtitle.
(a) In this subtitle the following terms have the meanings indicated.
(b) “Capital equipment” means any item of equipment that, by generally accepted accounting principles, is capitalized for purposes of accounting.
(c) (1) “Capital lease” means any lease, conditional sale, installment sale, or similar agreement, defined as a capital lease in accordance with generally accepted accounting principles, that is used to finance:
(i) the acquisition or construction of improvements to real property, under § 3-602 of this article; or
(ii) the acquisition of capital equipment.
(2) “Capital lease” includes a master lease.
(a) The State Treasurer, with the approval of the Board of Public Works, may enter into a capital lease on behalf of one or more units of State government.
(b) Prior to submission of a capital lease to the Board of Public Works, the Treasurer shall submit to the Legislative Policy Committee the total financing request and any supporting information. The Legislative Policy Committee has 45 days within which to review and provide written comments on the financing.
A capital lease authorized under this subtitle:
(1) shall be contingent on the availability of appropriated or other legally available funds, not including nonappropriated pension or retirement funds, that permit the timely payment of principal, interest, and other obligations, if any, imposed by the terms of the capital lease;
(2) may not be construed or deemed to be a debt of the State or a unit of State government; and
(3) may not constitute a pledge of the full faith and credit and taxing power of the State or a unit of State government.
(a) Except for capital leases used to finance energy performance contracts excluded from tax supported debt under § 8–104 of this title, the Treasurer shall, at a reasonable market rate, capitalize the payments on a capital lease authorized under this subtitle on an annual basis for each fiscal year the lease is in effect.
(b) The greater of the amount determined for a given fiscal year under subsection (a) of this section or the amount of any purchase value at the termination of a capital lease authorized under this subtitle shall be included in the tax supported debt considered by the Capital Debt Affordability Committee in its annual estimate for that fiscal year under Subtitle 1 of this title.
(a) (1) The State Treasurer may deposit the proceeds of a capital lease authorized under this subtitle in an escrow account or similar arrangement.
(2) The proceeds may be withdrawn for the purpose of making payment due under the terms of the capital lease.
(3) A withdrawal made under the provisions of this section shall be made in accordance with the terms of the individual contract.
(b) The State Treasurer may invest any unexpended proceeds held in escrow and the investment income on the proceeds in obligations authorized for the investment of State funds under § 6-222 of this article.
(a) (1) In this section the following words have the meanings indicated.
(2) “Code” means the Internal Revenue Code of 1986 and includes regulations and rulings issued under that Code.
(3) (i) “Financial officer” means the secretary of the principal department that includes the appropriate unit or the head of the unit if the unit is an independent unit.
(ii) “Financial officer” includes the Treasurer and the Comptroller.
(4) “Proceeds” means money received from the sale of a capital lease, and includes any money deemed to be proceeds of a capital lease under the Code.
(b) The financial officer may establish and maintain funds and accounts for the administration, management, investment and accounting of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on a capital lease.
(c) (1) The financial officer may manage and invest proceeds, including any investment earnings on proceeds, in a manner so as to maintain the exclusion from gross income for federal income tax purposes of interest on a capital lease.
(2) The financial officer may restrict the yields on investments of proceeds if and to the extent necessary to maintain the exclusion from gross income for federal income tax purposes of interest on a capital lease.
(d) The financial officer may prepare and maintain records of the receipt, deposit, investment, management, disbursement and application of proceeds, including any investment earnings on proceeds, that may be necessary or appropriate from time to time to comply with the Code and to maintain or verify the exclusion from gross income for federal income tax purposes of interest on a capital lease.
(e) (1) The financial officer may establish a separate rebate fund to be used to make any payments to the United States with respect to investment earnings on proceeds that may be required from time to time by the Code.
(2) There may be separate accounts within the rebate fund.
(3) Amounts deposited to the rebate fund shall be used only for the purpose of making rebate payments to the United States.
(4) The financial officer may make payments from the rebate fund as may be required from time to time in order to:
(i) comply with the Code; and
(ii) maintain the exclusion from gross income for federal income tax purposes of interest on a capital lease.
(5) Any excess money held in the rebate fund with respect to a capital lease after all required rebate payments for that capital lease have been made, as certified by the financial officer, shall be applied in a manner consistent with the Code.
(f) The financial officer may prepare and file from time to time with the appropriate agency of the United States any forms, information, and reports with respect to each capital lease and the expenditure and investment of proceeds that may be required under the Code.
(g) The financial officer and other officers of a State unit may:
(1) take any other or further actions;
(2) enter into any agreement or covenant regarding the use of proceeds, including any investment earnings on proceeds, the deposit of money to the rebate fund, and the making of rebate payments; and
(3) provide certifications of facts and estimates, that may be necessary or appropriate from time to time to comply with the Code and to establish or maintain the exclusion from gross income for federal income tax purposes of interest on a capital lease.
(h) Nothing in this section shall prevent the Treasurer from entering into a capital lease the interest on which is not excludable from gross income for federal income tax purposes.
(a) In this title the following words have the meanings indicated.
(b) “Fund” means the State Insurance Trust Fund.
(c) “Program” means the State Insurance Program.
(a) The General Assembly finds that it is desirable for the State to have a program of purchased insurance and self-insurance against loss, damage, and liability that the State may incur.
(b) The General Assembly intends that the State:
(1) insure against loss, damage, and liability as fully as permitted by law or agreement; and
(2) have a program for central administration of purchased insurance and self-insurance.
(a) There is a State Insurance Program for providing and administering purchased insurance and self-insurance for the State, including:
(1) insurance on State property;
(2) insurance that federal law requires;
(3) insurance trust agreements; and
(4) insurance against other risk or commitment of the State.
(b) (1) There is a State Insurance Trust Fund.
(2) The Fund consists of:
(i) each General Fund and special fund appropriation in the State budget to the Treasurer or a unit of the State government for self-insurance;
(ii) each General Fund and special fund appropriation to the State Insurance Trust Fund for payment under Title 12, Subtitle 5 of the State Government Article;
(iii) each premium that a unit of the State government pays for protection under the Fund;
(iv) each payment for a loss under purchased insurance; and
(v) each payment from salvage or other recovery that results from a loss paid through the Program.
(3) The General Assembly intends that the State budget include sufficient General Fund appropriations to provide in the State Insurance Trust Fund a reserve that the Treasurer considers adequate to cover losses under § 9-105 of this title.
(a) (1) Subject to any limitation in an agreement or law, the Treasurer is responsible for the Program.
(2) The Treasurer shall administer the Fund.
(3) Notwithstanding any law that authorizes a unit of the State government to buy insurance, the Treasurer may:
(i) buy the insurance in accordance with Division II of this article; or
(ii) require the unit to obtain approval before the unit buys the insurance.
(b) The Treasurer shall adopt necessary regulations:
(1) to set policies and procedures for payment on losses, including adjustment and approval;
(2) to collect from private insurers on losses; and
(3) otherwise to carry out the duties of the Treasurer under this title.
(c) The Office of the Attorney General and the State Fire Marshal shall cooperate with and assist the Treasurer in carrying out the duties of the Treasurer under this title.
(a) (1) The Treasurer shall provide self-insurance for:
(i) loss of or damage to State motor vehicles;
(ii) loss of or damage to hulls of State vessels;
(iii) loss of or damage to State real property, to the extent that purchased insurance does not cover the loss or damage; and
(iv) loss as a result of a settlement or judgment to the extent that the Board of Public Works pays the loss under Title 12, Subtitle 5 of the State Government Article.
(2) The Treasurer may provide self-insurance for loss of or damage to State personal property, including fine arts. However, for any fine art item that the Treasurer determines is irreplaceable, the indemnity shall be only for repair of damage.
(3) To the extent that funds are available in the State budget, the Treasurer may provide self-insurance for any other loss risk that the Treasurer finds appropriate.
(b) To the extent that funds are available in the State budget, the Treasurer:
(1) shall provide purchased insurance as required by law; and
(2) may provide any other purchased insurance that the Treasurer considers appropriate to the interests of the State.
(c) To the extent that funds are available in the State budget, the Treasurer shall provide sufficient self-insurance, purchased insurance, or both to cover the liability of the State and its units and personnel under the Maryland Tort Claims Act.
(a) If a unit of the State government is funded by special or federal funds, the Treasurer shall assess the unit a premium for coverage under the Fund that is needed to pay losses due to total protection or applicable deductions on purchased insurance.
(b) After considering the potential exposure of the Fund and its loss experience, the Treasurer shall try to set premiums so as to produce funds that approximate the payments from the Fund.
(a) Subject to the limitations in this section, the Treasurer shall pay a unit of the State government for a loss that is covered under § 9-105 of this title, without regard to whether the unit is funded wholly or partly from general, special, or federal funds.
(b) (1) The unit of the State government that had State property at the time of its loss or damage and the Treasurer jointly shall determine the value of the property.
(2) The Office of the Attorney General shall determine and certify to the Treasurer the value of a liability claim against the State.
(3) The Treasurer may not pay from the Fund any money for loss or liability in excess of the value certified under this subsection.
(c) Notwithstanding any other provision of this title, the 1st $1,000 of value of each loss, damage, or liability occurrence of a unit shall be paid from its appropriations in the State budget unless, on recommendation of the Secretary of Budget and Management, the Treasurer reduces the amount.
(a) (1) In this section the following words have the meanings indicated.
(2) “Detention center function” includes:
(i) operating and administering a detention center; and
(ii) supervising personnel who perform a function described in item (i) of this paragraph.
(3) “Law enforcement function” includes:
(i) conducting patrol;
(ii) making stops and arrests;
(iii) investigating criminal offenses; and
(iv) supervising personnel who perform a function described in items (i) through (iii) of this paragraph.
(b) This section applies to any sheriff or deputy sheriff engaged in any activity other than those activities relating to:
(1) courthouse security;
(2) service of process;
(3) the transportation of incarcerated individuals to and from court proceedings;
(4) personnel and other administrative activities;
(5) activities, including activities relating to performing law enforcement functions, arising under a multijurisdictional agreement under the supervision and direction of the Maryland State Police or other State agency; or
(6) any other activities, except activities relating to performing law enforcement functions or detention center functions.
(c) A county or Baltimore City may obtain insurance to provide the coverage and defense necessary under the Maryland Tort Claims Act.
(d) (1) If a county or Baltimore City does not obtain adequate insurance coverage to satisfy the coverage and defense necessary under the Maryland Tort Claims Act, an assessment for coverage and for payment of any litigation expenses, other than for compensation for the time spent by any State employee working for the Attorney General, shall be set off from:
(i) any tax which has been appropriated in the State budget to the county or Baltimore City; or
(ii) the subdivision’s share of any income tax collected by the State Comptroller.
(2) Any amount due under this subsection shall be collected in the manner provided by § 7–222 of this article.
In this title, “Board” means the Board of Public Works.
(a) The Board may appoint a full-time secretary.
(b) The secretary serves at the pleasure of the Board.
(c) The secretary:
(1) must be a person of high character and integrity; and
(2) shall be appointed on the basis of executive skill and ability.
(a) This section does not apply to property to be acquired in connection with State roads, bridges, or highways.
(b) Subject to Title 12 of the Real Property Article, the Board may condemn property for State use.
(c) The Department of General Services, with the approval of the Board, shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article that establish a uniform method of determining the value of any applicable life estate discount for property condemned in accordance with this section.
(a) (1) On the recommendation of the Comptroller, the Board shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article covering matters of business administration in the units of the State government.
(2) The regulations adopted under this section may include regulations that establish:
(i) uniform rates of mileage allowance; and
(ii) the terms and renewals of bonds furnished by State officials and employees.
(b) Regulations adopted under this section are binding on all units of the State government affected by the regulations.
By regulation, the Board may require that any proposed contract, contract renewal, or change order, of a designated class or monetary value, of any unit of the Executive Branch be brought to the Board for consideration and approval before execution.
For purposes of the preparation of the State budget:
(1) the Board of Public Works is an independent agency; and
(2) all expenses related to the administration of the Board of Public Works shall be separately identified and independent of the budget of any other State agency.
Any payments due by the State for the Baltimore Zoo under a lease or sublease agreement shall be included in the annual budget for the Board of Public Works.
(a) For each meeting of the Board held on or after October 1, 2024, beginning on the date the Board makes the meeting agenda available to the public, including any updates to the agenda, the Board shall allow members of the public to electronically submit public comments on agenda items.
(b) Public comments submitted under subsection (a) of this section or that are otherwise received by the Board by electronic or regular mail and relate to a Board agenda item shall:
(1) be included in each meeting packet prepared for members of the Board;
(2) be posted online at least 24 hours in advance of the meeting, or as soon as practicable after the public comment is received; and
(3) be retained online through the Board’s public website.
(c) Any Board discussion items that are not subject to inclusion in a public agenda under § 3–302.1 of the General Provisions Article are not subject to public comment under this section.
(d) To carry out the requirements of this section, the Board shall employ at least one more staff position than the number of positions authorized in fiscal year 2023.
In this subtitle, “real or personal property” includes:
(1) the inland waters of the State and the land under those waters;
(2) the waters of the Atlantic Ocean for 3 miles from the low watermark of the coast of the State bordering on that ocean and the land under those waters; and
(3) any legal or equitable rights, interests, privileges, or easements in, to, or over any real or personal property.
This subtitle does not apply to the transfer or disposal of excess personal property or surplus personal property under Title 4, Subtitle 5 of this article.
This subtitle does not apply to:
(1) the release of a lot subject to an agricultural land preservation easement under § 2–513 of the Agriculture Article; or
(2) the sale, transfer, exchange, lease, or other disposition of real property held by the Maryland Agricultural Land Preservation Foundation under the Critical Farms Program under § 2–517 of the Agriculture Article.
(a) Notwithstanding any other section of this subtitle, the Department of Natural Resources may dispose of any existing structure on any property acquired by the State for the use of the Department if the structure is valued at $2,500 or less.
(b) Before the Department of Natural Resources disposes of any structure under this section, the Department shall give public notice in a newspaper of general circulation in the county in which the structure is located.
(c) The proceeds of the sale shall be credited to the Natural Resources Property Maintenance Fund.
(a) This section does not apply to:
(1) property that is pledged to secure the payment of principal of or interest on revenue bonds; or
(2) real property that is owned or controlled by the State Highway Administration, unless the property is being transferred to the Maryland Transportation Authority or to another unit in the Department of Transportation.
(b) (1) The Board may transfer any property, and all rights of physical custody and control over the property, from a unit of the Executive Branch of the State government to another unit of the Executive Branch of the State government.
(2) Any property transferred under this subsection is exempt from the appraisal requirements under § 10–305(b)(2)(i) of this subtitle.
(3) Any property transferred under this subsection is subject to the continuing general jurisdiction of the Board.
(a) Subject to subsections (b) and (c) of this section, any real or personal property of the State or a unit of the State government may be sold, leased, transferred, exchanged, granted, or otherwise disposed of:
(1) to any person, to the United States or any of its units, or to any unit of the State government, for a consideration the Board decides is adequate; or
(2) to any county or municipal corporation in the State subject to any conditions the Board imposes.
(b) (1) (i) Except as provided under subparagraph (ii) of this paragraph, this subsection applies to the sale, transfer, grant, or exchange of:
1. real property identified under § 5–310(c)(1) of this article; and
2. State–owned real or personal property, funded in accordance with an appropriation act of the General Assembly, that has an appraised value over $100,000.
(ii) This subsection does not apply to the following dispositions of property identified in subparagraph (i) of this paragraph:
1. leasing the property;
2. the sale, transfer, grant, or exchange of a corrective or access easement on the property; or
3. an exchange by the Department of Natural Resources under § 1–109(e)(3) of the Natural Resources Article.
(2) The Board may not approve the sale, transfer, exchange, or grant of property until:
(i) the Department of General Services or the Department of Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article has submitted to the Board two independent appraisals of the property that:
1. with regard to real property, consider the value of any restrictive covenant that may be placed on the property; and
2. may not be publicly disclosed if the property is to be sold at auction;
(ii) the following information has been submitted, by electronic mail or facsimile and by certified mail, to the Senate Budget and Taxation Committee, the House Appropriations Committee, and, for property that meets both criteria of paragraph (1)(i) of this subsection, the Legislative Policy Committee:
1. a description of the property; and
2. if applicable, any justification for not selling, transferring, exchanging, or granting the property in a manner that generates the highest return for the State;
(iii) 45 days have elapsed since:
1. the information required by item (ii) of this paragraph was received by the appropriate committees; and
2. the Board declared the property surplus; and
(iv) except for property sold under paragraph (4) of this subsection, for property that meets both criteria under paragraph (1)(i) of this subsection and for which the Board intends to approve a fee simple sale, transfer, exchange, or grant, the General Assembly has approved the proposed disposition as provided under paragraph (3) of this subsection.
(3) (i) Within 45 days after receiving the information submitted under paragraph (2) of this subsection, the Legislative Policy Committee shall:
1. review the information and the public record created by the Department of Planning for the property; and
2. A. approve the proposed disposition of the surplus property and refer the property back to the Board for final disposition; or
B. refer the proposed disposition of the property to the full General Assembly and notify the Board of the referral.
(ii) If the Legislative Policy Committee fails to take any action under subparagraph (i)2 of this paragraph within the specified time period, the proposed disposition shall be deemed approved by the Committee.
(iii) 1. If the proposed disposition of the surplus property is referred by the Legislative Policy Committee to the full General Assembly, the proposed disposition may not be approved by the Board unless it is approved by the passage of legislation during the next legislative session of the General Assembly.
2. In any legislation passed in accordance with subsubparagraph 1 of this subparagraph, the General Assembly may approve the proposed disposition with or without conditions.
(4) If the Board has declared the property surplus, the Board shall sell the property to the federal government, a local government, or a unit of federal or local government for $1.00, if:
(i) the government or unit has indicated its interest in acquiring the land; and
(ii) a restrictive covenant is placed on the deed of transfer, in accordance with § 5–906(e)(7) and (8) of the Natural Resources Article, that requires the property to be maintained in a use that is consistent with its use at the time of transfer.
(5) Any revenues derived from the sale, transfer, exchange, or grant of property identified under paragraph (1)(i)1 of this subsection shall be deposited in the Advance Option and Purchase Fund under § 5–904(b) of the Natural Resources Article.
(6) If the Board has declared the property surplus, the Board shall donate or sell the property determined by the Department of Housing and Community Development to be suitable for use or redevelopment as affordable housing in accordance with a proposal developed under § 2–203 of the Housing and Community Development Article.
(c) (1) This subsection does not apply to:
(i) property that will be acquired with Program Open Space funds under Title 5, Subtitle 9 of the Natural Resources Article;
(ii) property that will be acquired with Rural Legacy Program funds under Title 5, Subtitle 9A of the Natural Resources Article;
(iii) property that will be acquired with Local Land Preservation Program funds under Title 5, Subtitle 9B of the Natural Resources Article;
(iv) property that will be acquired with Community Parks and Playgrounds Program funds under Title 5, Subtitle 9C of the Natural Resources Article;
(v) property that will be acquired with funds from the Heritage Conservation Fund under Title 5, Subtitle 15 of the Natural Resources Article;
(vi) property that will be acquired with funds from the Forest and Park Reserve Fund established under § 5–212 of the Natural Resources Article;
(vii) property that will be acquired with federal grant funds made available to the Department of Natural Resources for open space, recreation, or conservation purposes;
(viii) property that will be acquired by the Maryland Environmental Trust;
(ix) a Maryland Agricultural Land Preservation Foundation easement acquired under § 2–504 of the Agriculture Article;
(x) federally owned military property;
(xi) property that will be acquired by the Maryland Aviation Administration; or
(xii) property that will be acquired by the Maryland Port Administration.
(2) The Board may not approve the acquisition of real property with an appraised value of at least $500,000 unless the Board has provided to the Legislative Policy Committee:
(i) a justification for the planned acquisition; and
(ii) on request of the cochairs of the Legislative Policy Committee made within 14 days after receiving the justification under item (i) of this paragraph:
1. a cost–benefit analysis of the planned acquisition; and
2. at least 45 days to review the information provided under this paragraph and comment on the planned acquisition before the acquisition is approved.
(3) If the acquisition of real property with an appraised value of at least $500,000 from the federal government would require the State to provide ongoing maintenance of the property, the Board may not approve the acquisition until the Board has provided to the Legislative Policy Committee:
(i) notice that the acquisition would require the State to provide ongoing maintenance of the property; and
(ii) on request of the cochairs of the Legislative Policy Committee within 14 days after receiving the notice provided under item (i) of this paragraph, a study regarding the ongoing fiscal impact the acquisition would have on the State, including any environmental mitigation that may be required.
(d) Except as otherwise provided in this section:
(1) if any real or personal property disposed of under this section is not under the jurisdiction or control of any particular unit of the State government, the deed, lease, or other evidence of conveyance of the real or personal property shall be executed by the Board; and
(2) if any real or personal property disposed of under this section is under the jurisdiction or control of a unit of the State government, the deed, lease, or other evidence of conveyance of the real or personal property shall be executed by the highest official of the unit and by the Board.
(e) (1) Whenever any unit of the State government leases any State–owned property under its jurisdiction and control to any State employee, agent, or servant, or to any other individual in State service, for the purpose of permitting the individual to maintain a residence on or in the property, the lease shall be:
(i) executed by the unit; and
(ii) approved by the Secretary of General Services.
(2) The lease is not valid unless the Secretary of General Services approves it.
(3) Whenever any unit of the State government leases any State–owned property under its jurisdiction and control to any lessee, the lease shall include a provision which prohibits the lessee from assigning or subleasing that property without the prior approval of the Board of Public Works.
(4) (i) Whenever the State Highway Administration leases any State–owned property under its jurisdiction and control to any person, the Administrator of the State Highway Administration may execute the lease if:
1. the lease is entered into on a 30–day renewable basis; and
2. the duration of the tenancy does not exceed 1 year.
(ii) At least twice each year, the Administrator of the State Highway Administration shall submit a report of the leases executed under the authority granted in subparagraph (i) of this paragraph to the Board of Public Works.
(5) (i) Whenever the Department of Natural Resources leases any State–owned property under its jurisdiction and control to any lessee, the lease shall include a provision that requires the lessee to:
1. maintain unobstructed access to trail heads by trail users and first responders; and
2. ensure that the trail heads remain free of obstructions at all times.
(ii) At least once each year, the Secretary of Natural Resources shall submit a report of all leases executed by the Department of Natural Resources to the Department of General Services.
(f) (1) On the sale, lease, transfer, exchange, or other disposition of any real or personal property owned or controlled by the State Retirement and Pension System or the State of Maryland for the use of the Board of Trustees of the State Retirement and Pension System, any conveyancing document shall be executed in the manner provided in Division II of the State Personnel and Pensions Article.
(2) Any sale, lease, transfer, exchange or other disposition of any real or personal property owned or controlled by the State Retirement and Pension System or the State of Maryland for the use of the Board of Trustees of the State Retirement and Pension System by a conveyancing document executed by or for the Board of Trustees of the State Retirement and Pension System before October 1, 1994 in the manner provided under former Article 73B is ratified and confirmed.
(g) All conveyances under this section shall be made in the name of the State of Maryland, acting through the executing authority provided for in this section.
(h) This section does not apply to any lease or other temporary transfer, grant, or disposition of State real or personal property in connection with a procurement made subject to § 11–202(3) of this article.
(i) The Department of Budget and Management and Department of General Services, with the approval of the Board, shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article to implement the provisions of this section.
(a) In this section, “capital asset” means an asset of a substantial permanent nature.
(b) If the consideration received for the disposition of any real or personal property of the State or any unit of the State government is other real or personal property, the real or personal property received shall be held and accounted for in the same manner as other property under the jurisdiction and control of the unit of the State government that receives the real or personal property.
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if cash is received as consideration for the disposition of a capital asset of the State or any unit of the State government, the cash shall be applied to the State Annuity Bond Fund Account for the payment of the principal of and interest on the bonded indebtedness of the State.
(2) If the capital asset is real property that is being leased or sold to a private party for the purpose of realizing a transit–oriented development as defined under § 7–101 of the Transportation Article, at the discretion of the State agency that is disposing of the property, all or a portion of the cash proceeds resulting from the transaction shall be deposited in:
(i) the Baltimore City Community Enhancement Transit–Oriented Development Fund established under Title 15 of the Economic Development Article for the purposes of that Fund; or
(ii) the Transit–Oriented Development Capital Grant and Revolving Loan Fund established under Title 7 of the Transportation Article for the purposes of that Fund.
(3) (i) If cash is received as consideration for the disposition of a capital asset, and if the capital asset was originally purchased with special funds, the cash shall be applied to the special fund.
(ii) Notwithstanding subparagraph (i) of this paragraph, cash received as consideration for the disposition of helicopters, auxiliary helicopter equipment, ground support equipment, or other capital equipment related to helicopters shall be applied to the State Annuity Bond Fund Account for the payment of the principal of and interest on the bonded indebtedness of the State.
(4) If cash is received as consideration for the disposition of any real or personal property of the State or any unit of the State government, other than a capital asset, the cash shall be accounted for and paid into the State Treasury.
(a) In this section, “geothermal resources” has the meaning stated in § 5-601 of the Environment Article.
(b) Subject to any conditions the Board and the Department of Natural Resources impose, geothermal resources located on real property owned by the State may be sold, leased, transferred, exchanged, granted, or otherwise disposed of to any person for a consideration the Board decides is adequate.
(a) In this section, “minority business enterprise” has the meaning stated in Title 14, Subtitle 3 of this article.
(b) Each unit of the State government that leases State-owned property to business entities shall adopt regulations that establish procedures for awarding the leases. The procedures shall be structured to try to achieve participation by minority business enterprises in:
(1) 10% of the total dollar amount of the leases; and
(2) 10% of the total number of leases.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Perpetual care” means the maintenance, including the cutting of grass abutting memorials or monuments, administration, supervision, and embellishments of a cemetery and its grounds, roads, and paths.
(ii) “Perpetual care” includes the repair and renewal of buildings, including columbaria and mausoleums, and the property of the cemetery.
(3) “State facility” means:
(i) a facility maintained by the Behavioral Health Administration of the Maryland Department of Health and listed in § 10–406 of the Health – General Article;
(ii) a State residential center for individuals with an intellectual disability in the Developmental Disabilities Administration of the Maryland Department of Health; and
(iii) a facility that formerly met the definition of “State facility” under item (i) or (ii) of this subsection, including:
1. the former Rosewood Center; and
2. the former Crownsville Hospital Center.
(b) A cemetery owned by the State and located on the grounds of a State facility may not be sold by the State if the State facility is downsized, consolidated, closed, or sold.
(c) A cemetery owned by the State and located on the grounds of a State facility shall be provided perpetual care and marked with a monument commemorating the individuals interred in the cemetery.
(d) Activities or projects undertaken under subsection (c) of this section shall be undertaken in consultation with the Maryland Historical Trust, in accordance with the consultation provisions:
(1) for capital projects under § 5A–325 of this article; and
(2) for issuance of permits or licenses or provision of financial assistance under § 5A–326(d)(2) of this article.
(e) Any easement or right of entry to a cemetery owned by the State and located on the grounds of a State facility that has been recorded among the land records of the county where the cemetery is located on or before October 1, 2004 may not be transferred or sold.
(f) Notwithstanding subsections (b) and (e) of this section, a cemetery or an easement or right of entry to a cemetery owned by the State and located on the grounds of a State facility may be sold by the State if the deed for the property includes a restrictive covenant requiring the owner and any future owner to maintain the cemetery as provided under subsection (c) of this section.
(g) The provisions of § 5–502 of the Business Regulation Article apply to a cemetery owned by the State and located on the grounds of a State facility.
(h) Beginning January 1, 2015, and on or before January 1 of each succeeding year, the Maryland Department of Health shall report, in accordance with § 2–1257 of the State Government Article, to the Senate Finance Committee and the House Health and Government Operations Committee on the implementation of this section.
(a) This subtitle applies only to land owned by the State as a result of the relationship of the land to the waters of the State.
(b) This subtitle does not:
(1) affect the title to interests conveyed by the State before July 1, 1970, by a valid grant, lease, or patent or a grant confirmed by Article 5 of the Maryland Declaration of Rights;
(2) prohibit the execution of a conveyance for which application was made and approved by the Board before July 1, 1970;
(3) deprive any riparian owner or proprietor of any riparian rights, privilege, or enjoyment that the owner or proprietor had before July 1, 1970; or
(4) affect §§ 3-101 and 3-102 of the Natural Resources Article of the Code of Public Local Laws of Worcester County.
(a) The Board may not convey any title to land covered by this subtitle to any person other than the riparian owner or proprietor of the land abutting the land conveyed.
(b) The Board may convey title to land covered by this subtitle only after seeking the advice of:
(1) the Department of Natural Resources;
(2) appropriate agricultural agencies, including:
(i) the Maryland Agricultural Commission;
(ii) the agricultural stabilization and conservation committee of the county in which the land lies; and
(iii) the soil conservation district committee of the county in which the land lies; and
(3) other interested federal and State agencies.
(c) (1) Before the Board may convey title to land covered by this subtitle, the Board shall:
(i) hold a public hearing, after proper notice, in the county in which the land lies; and
(ii) issue a written decision that justifies the action of the Board, taking into account the best interests of the State with respect to the varying ecological, economic, developmental, agricultural, recreational, and aesthetic values of the area under consideration.
(2) The written decision issued under this subsection shall be kept among the permanent records of the Board and be open to public inspection.
(a) (1) On receipt of an order by an administrative law judge granting a petition under subsection (b) of this section, subject to paragraph (5) of this subsection, the Board of Public Works shall compensate an individual erroneously convicted, sentenced, and confined under State law for a crime the individual did not commit in an amount equal to the product of the total number of days that the individual was wrongfully confined after the erroneous conviction multiplied by a daily rate of the State’s most recent annual median household income as published in the American Community Survey of the U.S. Census Bureau in the year the order of eligibility is issued under subsection (b) of this section and divided by 365 days to the nearest whole cent.
(2) In addition to the compensation awarded under paragraph (1) of this subsection, the administrative law judge issuing an order under subsection (b) of this section may direct the appropriate State agency or service provider to provide to the individual free of charge any of the following benefits:
(i) a State identification card and any other document necessary for the individual’s health or welfare on the individual’s release from confinement;
(ii) housing accommodations for a period not exceeding 5 years after the date the order of eligibility is issued under subsection (b) of this section;
(iii) education and training relevant to life skills, job and vocational training, or financial literacy for a period of time until the individual elects to no longer receive the education and training;
(iv) health care and dental care for at least 5 years after the date the order of eligibility is issued under subsection (b) of this section;
(v) access to enrollment at and payment of tuition and fees for attending a public senior higher education institution, a regional higher education center, or the Baltimore City Community College for a period of enrollment not exceeding 8 years; and
(vi) reimbursement for court fines, fees, and restitution paid by the individual for the crime for which the individual was erroneously convicted, sentenced, and confined.
(3) (i) If an individual previously received a monetary award from a civil suit or entered into a settlement agreement with the State or a political subdivision of the State for an erroneous conviction, sentence, or confinement, the amount owed to the individual under this subsection shall be reduced by the amount of the monetary award or settlement that was paid to the individual less any amount paid for attorney’s fees and costs for litigating the award or settlement.
(ii) 1. If, after receiving compensation under this subsection, an individual receives a monetary award from a civil suit or enters into a settlement agreement with the State or a political subdivision of the State for an erroneous conviction, sentence, or confinement, the individual shall reimburse the State the amount of money paid under this section less any amount paid for attorney’s fees and costs for litigating the award or settlement.
2. Reimbursement required under subsubparagraph 1 of this subparagraph may not exceed the amount of the monetary award the individual received in the civil suit or settlement agreement.
3. The State may obtain a lien against the monetary award from a civil suit or settlement agreement to satisfy an obligation under subsubparagraph 1 of this subparagraph.
(4) If an individual eligible for compensation and benefits under this subsection is deceased, the individual’s estate has standing to be compensated under this subsection.
(5) (i) Beginning in fiscal year 2026, the county government in the county in which the conviction of an individual occurred shall pay to the State 50% of the amount of compensation awarded to the individual under paragraph (1) of this subsection.
(ii) The payment shall be remitted annually to the Comptroller by June 30 equal to 100% of the county’s share of costs for that fiscal year.
(iii) On October 1, December 1, March 1, and June 1 of each fiscal year, the Board of Public Works shall notify the Comptroller and each county of the county’s share of each erroneous conviction award during the fiscal year.
(iv) The Comptroller may withhold a portion of a local income tax distribution of a county that fails to make timely payment in accordance with this section.
(b) (1) An administrative law judge shall issue an order that an individual is eligible for compensation and benefits from the State under subsection (a) of this section if:
(i) the individual has received from the Governor a full pardon stating that the individual’s conviction has been shown conclusively to be in error; or
(ii) subject to paragraph (2) of this subsection, the administrative law judge finds that the individual has proven by clear and convincing evidence that:
1. the individual was convicted, sentenced, and subsequently confined for a felony or conspiracy to commit a felony;
2. the judgment of conviction for the felony or conspiracy to commit a felony was reversed or vacated and:
A. the order reversing or vacating the judgment of conviction did not allow for retrial;
B. the charges against the individual were dismissed; or
C. on retrial, the individual was found not guilty;
3. the individual did not commit the felony or conspiracy to commit a felony for which they were convicted, sentenced, and subsequently confined and was not an accessory or accomplice to the felony or conspiracy to commit a felony; and
4. subject to paragraph (2)(ii) of this subsection, the individual did not commit or suborn perjury, fabricate evidence, or by the individual’s own conduct cause or bring about the conviction.
(2) (i) In determining the weight and admissibility of evidence presented by the parties, the administrative law judge may, in the interest of justice, give due consideration to the passage of time, death or unavailability of witnesses, the destruction of evidence, or any other factor.
(ii) For the purposes of paragraph (1)(ii)4 of this subsection, suborning perjury, fabricating evidence, or causing or bringing about a conviction does not include:
1. a confession or admission later determined to be false; or
2. a guilty plea.
(3) A request for an order of eligibility under this section shall be:
(i) filed with the Office of Administrative Hearings; and
(ii) captioned “In the Matter of the Wrongful Conviction of (Claimant)” or “(Claimant) v. Board of Public Works”.
(4) The following shall be parties to a proceeding under this subsection:
(i) the State’s Attorney of the county where the crime was committed, or the State’s Attorney’s designee; and
(ii) the State, represented by the Attorney General, or the Attorney General’s designee.
(c) (1) Except as provided in paragraph (2) of this subsection, an individual may file a petition for an order under subsection (b) of this section not later than 2 years after the date on which:
(i) the Governor issued a pardon described under subsection (b)(1)(i) of this section; or
(ii) the criminal charges against the individual were dismissed, an order reversing or vacating the judgment of conviction and not allowing for retrial was issued, or the individual was found not guilty on retrial as described under subsection (b)(1)(ii) of this section.
(2) An individual convicted of a conspiracy to commit a felony who meets the requirements of this section and who was ineligible for compensation before July 1, 2024, may petition for an order under subsection (b) of this section not later than July 1, 2026.
(3) If an individual otherwise eligible for relief under this section is deceased, a personal representative or an executor of the individual’s estate may file a petition for an order under subsection (b) of this section on the individual’s behalf.
(4) A petition filed under this section shall be served on:
(i) the State’s Attorney in the county in which the conviction occurred, or the State’s Attorney’s designee; and
(ii) the Attorney General, or the Attorney General’s designee.
(5) (i) Subject to subparagraph (ii) of this paragraph, an individual may not receive compensation under this section for any period of confinement during which the individual was concurrently serving a sentence for a conviction of another offense for which the individual was lawfully convicted and confined.
(ii) The State shall notify the individual in writing at least 15 days before a hearing on a petition under this section of:
1. the State’s intention to introduce evidence to reduce or prevent an award of compensation under this paragraph; and
2. the number of days that the State claims the individual was incarcerated but not concurrently serving a sentence for a conviction of another offense for which the individual was lawfully convicted and confined.
(6) The decision to grant or deny a petition under this section may be appealed by any party to the proceeding.
(d) (1) If an administrative law judge orders that an individual is eligible for compensation and benefits under this section, the order shall include:
(i) the monetary award owed to the individual under subsection (a)(1) of this section;
(ii) reasonable attorney’s fees and expenses associated with the action brought under this section;
(iii) benefits to be awarded under subsection (a)(2) of this section; and
(iv) if the administrative law judge determines that it is in the interests of the individual, a recommendation for an expedited payment schedule.
(2) A copy of the order shall be delivered to:
(i) the Board of Public Works to make the payments ordered under paragraph (1)(i) and (ii) of this subsection; and
(ii) any State agency or service provider ordered to provide benefits under paragraph (1)(iii) of this subsection.
(e) The Board of Public Works shall pay the compensation ordered under subsection (d) of this section in:
(1) one initial payment equal to the annual amount of the State’s most recent median household income to be paid within 60 days after receiving the order; and
(2) (i) after the initial payment under item (1) of this subsection, installments paid over a period not to exceed 6 fiscal years; or
(ii) in accordance with an expedited payment schedule recommended under subsection (d)(1)(iv) of this section.
(f) (1) This section does not prohibit an individual from contracting for services to:
(i) determine the individual’s innocence;
(ii) obtain a pardon;
(iii) obtain the individual’s release from confinement; or
(iv) obtain compensation under this section.
(2) (i) A person providing services under paragraph (1)(iv) of this subsection may not charge, demand, receive, or collect payment other than that allowed under subsection (d)(1)(ii) of this section.
(ii) An obligation incurred in violation of this paragraph is void.
(g) On or before December 31, 2022, and annually thereafter, the Board of Public Works shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on any compensation and services awarded under this section.
(h) The Office of Administrative Hearings, in consultation with the Board of Public Works, shall adopt regulations to govern the procedures and practices in all cases requesting compensation and benefits under this subtitle.
In awarding compensation under this subtitle, the Board of Public Works shall use money in the General Emergency Fund or money that the Governor provides in the annual budget for that purpose.
(a) In this title the following words have the meanings indicated.
(b) “Budget committees” means the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the House Appropriations Committee.
(c) “Private entity” means an individual, a corporation, a general or limited partnership, a limited liability company, a joint venture, a statutory trust, a public benefit corporation, a nonprofit entity, or another business entity.
(d) (1) “Public infrastructure asset” means a capital facility or structure, including systems and equipment related to the facility or structure intended for public use.
(2) “Public infrastructure asset” includes blue infrastructure and green infrastructure, as defined in § 9–1601 of the Environment Article.
(e) “Public notice of solicitation” includes a request for qualifications, a request for expressions of interest, a request for proposals, or any combination thereof.
(f) (1) “Public–private partnership” means a method for delivering public infrastructure assets using a long–term, performance–based agreement between a reporting agency and a private entity where appropriate risks and benefits can be allocated in a cost–effective manner between the contractual partners in which:
(i) a private entity performs functions normally undertaken by the government, but the reporting agency remains ultimately accountable for the public infrastructure asset and its public function; and
(ii) the State may retain ownership in the public infrastructure asset and the private entity may be given additional decision–making rights in determining how the asset is financed, developed, constructed, operated, and maintained over its life cycle.
(2) “Public–private partnership” does not include:
(i) a short–term operating space lease entered into in the ordinary course of business by a unit of State government and a private entity and approved under § 4–321 or § 12–204 of this article;
(ii) a procurement governed by Division II of this article;
(iii) public–private partnership agreements entered into by the University System of Maryland, St. Mary’s College of Maryland, Morgan State University, or Baltimore City Community College, where no State funds are used to fund or finance any portion of a capital project; or
(iv) a revenue–producing transportation facility under 21.01.03.03B.(1)(d) of the Code of Maryland Regulations that is not a public–private partnership as defined under paragraph (1) of this subsection.
(g) “Reporting agency” means:
(1) the Department of General Services;
(2) the Maryland Department of Transportation, for public infrastructure assets of any of its modal administrations;
(3) the Maryland Transportation Authority;
(4) the University System of Maryland;
(5) Morgan State University;
(6) St. Mary’s College of Maryland; and
(7) the Baltimore City Community College.
(h) “Responsibility determination” means the determination by a reporting agency that a private entity that responds to a solicitation for a public–private partnership:
(1) has the capacity in all respects to perform fully the requirements of a public–private partnership agreement; and
(2) possesses the integrity and reliability that will ensure good faith performance.
(a) It is the public policy of the State to utilize public–private partnerships, if appropriate, to:
(1) develop and strengthen the State’s public infrastructure assets;
(2) apportion between the public and private sectors the risks involved with developing and strengthening public infrastructure assets;
(3) foster the creation of new jobs; and
(4) promote the socioeconomic development and competiveness of Maryland.
(b) It is the public policy of the State that a private entity that enters into a public–private partnership with a reporting agency comply with the Labor and Employment Article and the federal Fair Labor Standards Act.
(a) (1) A reporting agency may establish a public–private partnership and execute an agreement in connection with any public infrastructure asset for which the reporting agency is responsible in accordance with the provisions of the Annotated Code.
(2) A public–private partnership agreement executed under paragraph (1) of this subsection may include provisions that are necessary to develop and strengthen a public infrastructure asset in conjunction with a public–private partnership.
(b) (1) A reporting agency shall adopt regulations and establish processes for the development, solicitation, evaluation, award, and delivery of public–private partnerships.
(2) A reporting agency may not adopt regulations under paragraph (1) of this subsection until:
(i) the Joint Committee on Administrative, Executive, and Legislative Review reviews the regulations in accordance with § 10–110 of the State Government Article;
(ii) the budget committees review and comment on the regulations; and
(iii) at least 45 days after the first publication of the regulations in the Maryland Register.
(c) A reporting agency may create a specific function dedicated to public–private partnership processes within the existing reporting agency.
(d) Any combination of federal, State, or local funds, grants, loans, debt, or other public sources of funding or financing may be used and combined with any private sources of funding or financing for a public–private partnership project.
(e) Any proceeds or revenues received by a reporting agency from a public–private partnership that are not otherwise paid or allocated to the private sector shall accrue to the fund that would have normally received those funds.
(a) (1) By January 1 of each year, each reporting agency shall submit to the budget committees, in accordance with § 2–1257 of the State Government Article:
(i) a report concerning each public–private partnership under consideration that has not been reviewed or approved previously by the General Assembly; and
(ii) a status report concerning each existing public–private partnership in which the reporting agency is involved.
(2) The reports submitted by the Department of General Services under this subsection shall include information concerning all public–private partnerships involving units within the Executive Branch of State government, except for those units that are also reporting agencies.
(b) By January 1 of each year, a unit of State government that provides conduit financing for a public–private partnership shall submit to the budget committees, in accordance with § 2–1257 of the State Government Article, a list that includes each public–private partnership for which the unit is providing conduit financing.
(c) The annual report of the Capital Debt Affordability Committee required under § 8–112 of this article shall include an analysis of the aggregate impact of public–private partnership agreements on the total amount of new State debt that prudently may be authorized for the next fiscal year.
(d) All existing public–private partnerships and any public–private partnership that is expected to be solicited shall be listed annually as appropriate in the annual capital budget or the Consolidated Transportation Program.
(a) A project undertaken by a reporting agency through a public–private partnership shall comply with the following provisions, to the extent that the provisions are applicable to the project:
(1) § 3–602.1 of this article; and
(2) the Environment Article.
(b) The private entity and any contractors or subcontractors constructing a public infrastructure asset shall be subject to Title 17, Subtitles 1 and 2 of this article regardless of whether the contract qualifies as a public works contract.
(c) State employees shall retain all of the protections in State law, regulations, and policies that are in effect at the time the public–private partnership agreement is approved by the Board of Public Works.
(d) The Board of Public Works may not approve a public–private partnership that results in the State exceeding its debt affordability guidelines.
(a) (1) (i) Except as provided in subparagraph (ii) of this paragraph, a reporting agency may not issue a public notice of solicitation for a public–private partnership until a presolicitation report concerning the proposed public–private partnership is submitted to the Comptroller, the State Treasurer, the budget committees, and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article.
(ii) A reporting agency may not issue a public notice of solicitation for a public–private partnership for a transportation facilities project, as defined in § 4–101(h) of the Transportation Article, until a presolicitation report concerning the proposed public–private partnership is submitted to the budget committees and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article.
(2) (i) The budget committees may not have more than 45 days to review and comment on the presolicitation report submitted in accordance with paragraph (1) of this subsection.
(ii) 1. If the total value of a proposed public–private partnership reported in the presolicitation report under paragraph (b)(1) of this subsection exceeds $500,000,000, the budget committees may request an additional 15 days to review and comment on the presolicitation report.
2. The request for additional time under this subparagraph shall:
A. be made in writing to the Governor, the Department of Budget and Management, and the reporting agency; and
B. include the reason for the request and any preliminary issues the budget committees have.
(b) (1) A presolicitation report shall:
(i) state the specific policy, operational, and financial reasons for pursuing a public–private partnership;
(ii) identify the anticipated value of the proposed public–private partnership, risks and benefits to the State, and any potential workforce, economic development, or environmental implications;
(iii) evaluate, if relevant and to the extent necessary, the risks and benefits of a public–private partnership, including benefits such as expedited asset delivery, cost savings, risk transfer, net new revenue, state–of–the–art techniques for asset development or operations, efficiency of operations, maintenance via innovative management techniques, and expertise in accessing and organizing the widest range of financial resources;
(iv) include, if relevant and to the extent possible, the following information prepared by the reporting agency, in consultation with the Department of Budget and Management:
1. a preliminary analysis on debt affordability;
2. a preliminary summary of the proposed solicitation process; and
3. a statement of intention to use the exemption from the requirements of Division II of this article set forth in § 11–203 of this article;
(v) withhold information deemed confidential, proprietary, or otherwise exempt from disclosure under applicable law, in accordance with § 4–335 of the General Provisions Article, relating to:
1. confidential commercial information;
2. confidential financial information; and
3. trade secrets; and
(vi) be posted online by the reporting agency during the review period in accordance with paragraph (2) of this subsection.
(2) The online location of the presolicitation report shall be:
(i) on the website of the reporting agency; or
(ii) on the website of the specific project if one has been established.
(3) The reporting agency shall include in the Maryland Register a brief synopsis of, and a link to, the presolicitation report.
(c) (1) After the budget committees’ review and comment period on the presolicitation report and before issuing a public notice of solicitation, a reporting agency shall seek the official designation by the Board of Public Works of the public infrastructure asset as a public–private partnership and approval of the solicitation method.
(2) The request for official designation and approval shall:
(i) include a copy of the presolicitation report required under subsection (a) of this section;
(ii) describe the process for soliciting, evaluating, selecting, and awarding the public–private partnership;
(iii) include a preliminary solicitation schedule;
(iv) outline the organization and contents of the public notice of solicitation;
(v) provide a summary of the key terms of the proposed public–private partnership agreement; and
(vi) include any other information or requests determined to be relevant by the reporting agency.
(a) If a reporting agency intends to establish a public–private partnership under § 10A–103 of this title, the reporting agency shall issue a public notice of solicitation for the public–private partnership.
(b) (1) A private entity may be qualified as a bidder through a request for qualifications.
(2) After a bidder is qualified and at any time before the award of the public–private partnership agreement, a reporting agency may engage in discussions with qualified bidders.
(3) These discussions may be held to:
(i) obtain comments and make revisions to solicitation documents;
(ii) obtain the best value for the State; and
(iii) ensure full understanding of:
1. the requirements of the State, as set forth in the request for proposals; and
2. the proposal submitted by the bidder.
(c) For any private entity that responds to the public notice of solicitation, a reporting agency shall make a responsibility determination.
(d) If a private entity is composed of multiple subentities or partners, the reporting agency shall make a responsibility determination for each subentity or partner owning 20% or more of the entity.
(e) Any changes in the ownership composition of a public–private partnership, as described in subsection (d) of this section, require:
(1) a responsibility determination;
(2) 45 days’ notice to the budget committees; and
(3) approval by the Board of Public Works.
(f) (1) A reporting agency may reimburse a private entity for the portion of the entity’s costs incurred in response to the solicitation of a public–private partnership.
(2) A reporting agency shall adopt regulations that establish the process for reimbursing a private entity under paragraph (1) of this subsection.
(3) Regulations adopted under paragraph (2) of this subsection shall:
(i) provide for the reimbursement of a private entity based on the dollar value of a project, the value of any work product received from the private entity, or any other method for calculating such reimbursement; and
(ii) specify a maximum dollar amount that a reporting agency may reimburse a private entity for costs incurred under paragraph (1) of this subsection.
(4) A reporting agency may pay a private entity that submits an unsuccessful proposal for the right to use the private entity’s work product.
(5) A reporting agency may not reimburse a private entity for any portion of the costs incurred to develop a response to a public notice of solicitation if:
(i) the private entity enters into a public–private partnership agreement with the reporting agency; and
(ii) the public–private partnership agreement entered into under item (i) of this paragraph is approved by the Board of Public Works.
(a) (1) Except as provided in paragraph (2) of this subsection, the Board of Public Works may not approve a public–private partnership agreement until:
(i) a copy of the proposed agreement is submitted simultaneously to the Comptroller, the State Treasurer, the budget committees, and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article;
(ii) the State Treasurer, in coordination with the Comptroller, analyzes the impact on the State’s capital debt affordability limits of the proposed public–private partnership agreement;
(iii) the State Treasurer submits the analysis to the budget committees and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article; and
(iv) the budget committees have reviewed and commented on the agreement in accordance with paragraph (3) of this subsection.
(2) The Board of Public Works may not approve a public–private partnership agreement for a transportation facilities project, as defined in § 4–101(h) of the Transportation Article, until the proposed agreement is submitted to the budget committees and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article.
(3) (i) The period for review, analysis, and comment under paragraphs (1) and (2) of this subsection may not exceed a total of 30 days from the date the proposed public–private partnership agreement is submitted simultaneously to the State Treasurer, the Comptroller, the budget committees, and the Department of Legislative Services.
(ii) The budget committees may facilitate a faster review and comment period by sending a letter to the Board of Public Works supporting a proposed public–private partnership agreement in advance of the expiration of the 30–day review period.
(b) (1) The proposed public–private partnership agreement made available to the public shall:
(i) after consultation with the private entity, withhold information deemed confidential, proprietary, or otherwise exempt from disclosure under applicable law, including in accordance with § 4–335 of the General Provisions Article, relating to:
1. confidential commercial information;
2. confidential financial information; and
3. trade secrets; and
(ii) be posted online by the reporting agency during the 30–day review period in accordance with paragraph (2) of this subsection.
(2) The online location of the proposed public–private partnership agreement shall be:
(i) on the website of the reporting agency; or
(ii) on the website of the specific project if one has been established.
(a) The reporting agency shall post the final public–private partnership agreement on the website of the reporting agency or the website of the specific project if one has been established.
(b) Information deemed confidential, proprietary, or otherwise exempt from disclosure under applicable law shall be withheld from the posted version of the final public–private partnership agreement in accordance with § 4–335 of the General Provisions Article relating to:
(1) a trade secret;
(2) confidential commercial information; and
(3) confidential financial information.
(a) A reporting agency may accept, reject, or evaluate an unsolicited proposal for a public–private partnership that will assist the reporting agency in implementing its functions in a manner consistent with State policy.
(b) A reporting agency shall establish the process for determining whether an unsolicited proposal meets a need of the reporting agency or is otherwise advantageous to the reporting agency.
(c) (1) A reporting agency may establish by regulation an application fee for submitting an unsolicited proposal.
(2) For an unsolicited proposal that does not address a project already in the State’s Capital Improvement Program or Consolidated Transportation Program planning documents, a reporting agency may require a higher application fee.
(d) If a reporting agency determines that an unsolicited proposal meets a need of the reporting agency or is otherwise advantageous to the reporting agency, the reporting agency shall:
(1) conduct a competitive solicitation process as described under Subtitle 2 of this title;
(2) protect proprietary information included in the unsolicited proposal to the same extent proprietary information is protected under § 10A–203(b) of this title; and
(3) comply with all of the other procedural requirements set forth in this title.
(e) An individual or firm that has submitted an unsolicited proposal under this title may participate in any subsequent competitive solicitation process.
(a) Whenever applicable, a public–private partnership agreement shall include the following provisions:
(1) the method and terms for approval of any assignment, reassignment, or other transfer of interest related to the public–private partnership agreement;
(2) the methods and terms for setting and adjusting tolls, fares, fees, and other charges related to the public infrastructure asset;
(3) the method and terms for revenue–sharing or other sharing in fees or charges, in which the public participates in the financial upside of asset performance of the public infrastructure asset;
(4) minimum quality standards, performance criteria, incentives, and disincentives;
(5) operations and maintenance standards;
(6) the rights for inspection by the State;
(7) the terms and conditions under which the reporting agency may provide services for a fee sufficient to cover both direct and indirect costs;
(8) provisions for oversight and remedies and penalties for default;
(9) the terms and conditions under which the reporting agency originating the public–private partnership shall be responsible for ongoing oversight;
(10) the terms and conditions for audits by the State, including the Office of Legislative Audits, related to the agreement’s financial records and performance;
(11) the terms and conditions under which the public infrastructure assets shall be returned to the State at the expiration or termination of the agreement; and
(12) requirements for the private entity to provide performance security and payment security in a form and in an amount determined by the responsible public entity, except that:
(i) requirements for the payment security for construction contracts shall be in accordance with Title 17, Subtitle 1 of this article; and
(ii) requirements for the amount of the payment security and any performance security in the form of a performance bond for a construction contract shall be based on the value of the respective construction elements of the public–private partnership agreement and not on the total value of the public–private partnership agreement.
(b) (1) A public–private partnership agreement may include a provision that, except as provided in paragraph (2) of this subsection, compensation may be provided for competing infrastructure developments that directly result in a documented revenue loss for the private entity in a public–private partnership.
(2) Compensation may not be provided as a result of State infrastructure developments already in the State’s Capital Improvement Program or Consolidated Transportation Program planning documents at the time the public–private partnership agreement is executed, safety initiatives, transit projects, infrastructure improvements with minimal capacity increases, or infrastructure or transit service improvements for other transportation modes that are not the subject of the public–private partnership.
(c) A public–private partnership agreement for a project involving road, highway, or bridge assets may not include a noncompete clause that would inhibit the planning, construction, or implementation of State–funded transit projects.
(a) Except as provided in subsection (b) of this section, a public–private partnership agreement may not exceed 50 years, including all renewals and extensions.
(b) The Board of Public Works may:
(1) waive the prohibition set forth in subsection (a) of this section if the Board determines that the reporting agency has demonstrated sufficient reason for the agreement to have a longer term; and
(2) waive the prohibition set forth in subsection (a) of this section at any point during the presolicitation, proposal review, or agreement negotiations process.
(a) This section applies to the project development of the 28–acre State–owned property in Baltimore City bordered by Dolphin Street, North Howard Street, Martin Luther King Boulevard, and Madison Avenue, commonly known as State Center.
(b) Notwithstanding any other provision of this title, the State or its reporting agency may not enter into a new or modified contract or plan for the development of State Center unless the new or modified contract or plan includes provisions that require:
(1) an enforceable community benefits agreement between the developer and the State Center Neighborhood Alliance, Inc. to provide for a concerted and coordinated effort by the developer and the community throughout the entire planning, development, and construction phases of the project;
(2) a comprehensive local hiring plan for the project that includes goals for short–term construction jobs, long–term employment opportunities, and job training; and
(3) an economic improvement plan for the project that includes goals for the use of minority– and women–owned and locally owned businesses.
(c) Any new or modified development contract or plan shall, to the extent possible, include:
(1) State agencies as the major anchor tenant;
(2) space for retail, housing, offices, restaurants, and other private businesses;
(3) a high–quality, full–service grocery store;
(4) parking facilities designed to reduce parking impacts on the surrounding communities;
(5) elements designed to increase the connection of State Center to the surrounding communities; and
(6) green space.
(d) The State or its reporting agency shall include the State Center Neighborhood Alliance, Inc., and any other interested community association in:
(1) any selection process for a new development contractor; and
(2) the development of any new plans for the State Center project or any proposed modifications to existing development contracts for the project.
(e) A developer who is a party to a new contract or plan for the development of State Center shall use best practical efforts to begin construction within 18 months after execution of the new contract and any associated plans.
(a) The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of this article are hereby incorporated.
(b) To the extent practicable and permitted by the United States Constitution, the provisions of the Minority Business Enterprise Program under Title 14, Subtitle 3 of this article shall apply to public–private partnerships established under this title.
(c) (1) The Board of Public Works may not approve a public–private partnership agreement under § 10A–203 of this title until the reporting agency, in consultation with the Governor’s Office of Small, Minority, and Women Business Affairs, the Office of the Attorney General, and the private entity, if permissible, establishes reasonable and appropriate minority business enterprise participation goals and procedures for the project.
(2) To the extent practicable, goals and procedures established under paragraph (1) of this subsection shall be based on the requirements of Title 14, Subtitle 3 of this article, including the implementation of regulations adopted under §§ 14–302 and 14–303 of this article.
(a) In this Division II the following words have the meanings indicated unless:
(1) the context clearly requires a different meaning; or
(2) a different definition is provided for a particular title or provision.
(b) (1) “Architectural services” means professional or creative work that:
(i) is performed in connection with the design and supervision of construction or landscaping; and
(ii) requires architectural education, training, and experience.
(2) “Architectural services” includes consultation, research, investigation, evaluation, planning, architectural design and preparation of related documents, and coordination of services that structural, civil, mechanical, and electrical engineers and other consultants provide.
(3) “Architectural services” does not include construction inspection services, services provided in connection with an energy performance contract, or structural, mechanical, plumbing, or electrical engineering.
(c) “Bid” means a response to an invitation for bids under § 13–103 of this article.
(d) “Board” means the Board of Public Works.
(e) “Chief Procurement Officer” means an official of the Department of General Services who:
(1) shall be appointed by the Governor with the advice and consent of the Senate;
(2) except for procurement activity by a primary procurement unit other than the Department of General Services, is the head of all procurement activity for the Executive Branch of State government; and
(3) may engage in or control procurement for the Department of General Services in accordance with § 12–107(b)(2) of this article.
(f) (1) “Construction” means the process of building, altering, improving, or demolishing an improvement to real property.
(2) “Construction” includes any major work necessary to repair, prevent damage to, or sustain existing components of an improvement to real property.
(3) “Construction” does not include the maintenance or routine operation of an existing improvement to real property, or activities related to an energy performance contract.
(g) (1) “Construction related services” means feasibility studies, surveys, construction management, construction inspection, and similar efforts associated with construction or the acquisition of public improvements as defined in § 4–401(d) of this article.
(2) “Construction related services” does not include services provided in connection with an energy performance contract.
(h) “County” means a county of the State and, unless expressly provided otherwise, Baltimore City.
(i) “Energy performance contract” means an agreement for the provision of energy services, including electricity, heating, ventilation, cooling, steam, or hot water, in which a person agrees to design, install, finance, maintain, or manage energy systems or equipment to improve the energy efficiency of a building or facility in exchange for a portion of the energy savings.
(j) (1) “Engineering services” means professional or creative work that:
(i) is performed in connection with any utility, structure, building, machine, equipment, or process, including structural, mechanical, plumbing, electrical, geotechnical, and environmental engineering; and
(ii) requires engineering education, training, and experience in the application of special knowledge of the mathematical, physical, and engineering sciences.
(2) “Engineering services” includes consultation, investigation, evaluation, planning, design, and inspection of construction to interpret and ensure compliance with specifications and design within the scope of inspection services.
(3) “Engineering services” does not include services provided in connection with an energy performance contract.
(k) “Information technology” has the meaning stated in § 3.5–301 of this article.
(l) “Invitation for bids” means any document used for soliciting bids under § 13–103 of this article.
(m) “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any partnership, firm, association, corporation, or other entity.
(n) “Primary procurement units” means:
(1) the State Treasurer;
(2) the Department of General Services;
(3) the Department of Transportation;
(4) the University System of Maryland;
(5) the Maryland Port Commission;
(6) the Morgan State University; and
(7) the St. Mary’s College of Maryland.
(o) (1) “Procurement” means the process of:
(i) leasing real or personal property as lessee; or
(ii) buying or otherwise obtaining supplies, services, construction, construction related services, architectural services, engineering services, or services provided under an energy performance contract.
(2) “Procurement” includes the solicitation and award of procurement contracts and all phases of procurement contract administration.
(p) (1) “Procurement contract” means an agreement in any form entered into by a unit for procurement.
(2) “Procurement contract” does not include:
(i) a collective bargaining agreement with an employee organization;
(ii) an agreement with a contractual employee, as defined in § 1–101(d) of the State Personnel and Pensions Article;
(iii) a Medicaid, Judicare, or similar reimbursement contract for which law sets:
1. user or recipient eligibility; and
2. price payable by the State; or
(iv) a Medicaid contract with a managed care organization, as defined in § 15–101(e) of the Health – General Article as to which regulations adopted by the Department establish:
1. recipient eligibility;
2. minimum qualifications for managed care organizations; and
3. criteria for enrolling recipients in managed care organizations.
(q) “Procurement officer” means an individual authorized by a unit to:
(1) enter into a procurement contract;
(2) administer a procurement contract; or
(3) make determinations and findings with respect to a procurement contract.
(r) “Proposal” means a response to any solicitation other than an invitation for bids.
(s) “Request for proposals” means any document used for soliciting proposals.
(t) “Responsible bidder or offeror” means a person who:
(1) has the capability in all respects to perform fully the requirements for a procurement contract; and
(2) possesses the integrity and reliability that will ensure good faith performance.
(u) “Responsive bid” means a bid that:
(1) is submitted under § 13–103 of this article; and
(2) conforms in all material respects to the invitation for bids.
(v) (1) Except as provided in paragraph (3) of this subsection, “services” means:
(i) the labor, time, or effort of a contractor; and
(ii) any product or report necessarily associated with the rendering of a service.
(2) “Services” includes:
(i) services provided by attorneys, accountants, physicians, consultants, and other professionals who are independent contractors; and
(ii) information technology services and cybersecurity.
(3) “Services” does not include:
(i) construction related services;
(ii) architectural services;
(iii) engineering services; or
(iv) energy performance contract services.
(w) “State” means:
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia.
(x) (1) “State correctional facilities” means correctional institutions, and all places of correctional confinement, that are located within the State of Maryland and are primarily operated by the Maryland State government.
(2) “State correctional facilities” includes Patuxent Institution.
(y) “Statewide contract” means a contract that has been procured by a primary procurement unit to be used by all units or any entity listed in § 4–316 of this article.
(z) (1) “Supplies” means:
(i) insurance;
(ii) tangible personal property including information technology hardware and software;
(iii) printing; and
(iv) services necessarily associated with insurance or tangible personal property.
(2) “Supplies” does not include:
(i) an interest in real property; or
(ii) tangible personal property acquired or used in connection with an energy performance contract.
(aa) (1) “Unit” means an officer or other entity that is in the Executive Branch of the State government and is authorized by law to enter into a procurement contract.
(2) “Unit” does not include:
(i) a bistate, multistate, bicounty, or multicounty governmental agency; or
(ii) a special tax district, sanitary district, drainage district, soil conservation district, water supply district, or other political subdivision of the State.
(a) The purposes and policies of this Division II include:
(1) providing for increased confidence in State procurement;
(2) ensuring fair and equitable treatment of all persons who deal with the State procurement system;
(3) providing safeguards for maintaining a State procurement system of quality and integrity;
(4) fostering effective broad–based competition in the State through support of the free enterprise system;
(5) promoting increased long–term economic efficiency and responsibility in the State by encouraging the use of recycled materials;
(6) providing increased economy in the State procurement system;
(7) getting the maximum benefit from the purchasing power of the State;
(8) simplifying, clarifying, and modernizing the law that governs State procurement;
(9) allowing the continued development of procurement regulations, policies, and practices in the State; and
(10) promoting development of uniform State procurement procedures to the extent possible.
(b) Unless otherwise indicated, this Division II shall be construed liberally and applied to promote the purposes and policies enumerated in subsection (a) of this section.
(c) If a provision of this Division II is inconsistent with a federal law, regulation, or grant agreement or other federal requirement that governs procurement or a procurement contract or with the terms of a gift, as defined in § 1–109 of the General Provisions Article, the federal requirement or the terms of the gift control the procurement or procurement contract.
(d) (1) In this subsection, “bundle” means the consolidation of two or more procurement requirements for supplies or services previously provided or performed under separate contracts into a single solicitation seeking offers for a single contract that is unlikely to be accessible for award to a small business or minority business enterprise.
(2) This subsection does not apply if a unit bundles a procurement for the purpose of participating in the Small Business Reserve Program in accordance with Title 14, Subtitle 5 of this article.
(3) For the purpose of precluding or limiting participation by a minority business enterprise as defined under Title 14, Subtitle 3 of this article or a small business as defined under Title 14, Subtitle 2 of this article, a unit subject to this Division II may not:
(i) bundle a procurement;
(ii) limit the number of competitive bidders or offerors; or
(iii) limit participation to a predetermined group of bidders or offerors.
Except as otherwise expressly provided by law, this Division II applies to:
(1) each expenditure by a unit under a procurement contract;
(2) each procurement by a unit on behalf of another unit, governmental agency, or other entity; and
(3) each procurement by a unit, even if a resulting procurement contract will involve no expenditure by the State and will produce revenue for the State, for services that are to be provided for the benefit of:
(i) State officials, State employees, or students at a State facility, including a school, hospital, institution, or recreational facility;
(ii) clients or patients at a State hospital or State institution;
(iii) the public at a State recreational facility; or
(iv) the public at a State transportation facility or State higher education facility, as required by the Board.
IN EFFECT
(a) Except as provided in subsection (b) of this section, this Division II does not apply to:
(1) procurement by:
(i) the Blind Industries and Services of Maryland;
(ii) the Maryland State Arts Council, for the support of the arts;
(iii) the Maryland Health and Higher Educational Facilities Authority, if no State money is to be spent on a procurement contract;
(iv) the Maryland Industrial Training Program or the Partnership for Workforce Quality Program in the Department of Commerce, for training services or programs for new or expanding businesses or industries or businesses or industries in transition;
(v) the Maryland Food Center Authority, to the extent the Authority is exempt under Title 10, Subtitle 2 of the Economic Development Article;
(vi) the Maryland Public Broadcasting Commission:
1. for services of artists for educational and cultural television productions; or
2. when planning for or fulfilling the obligations of grants or cooperative agreements that support the educational and cultural activities of the Commission;
(vii) public institutions of higher education, for cultural, entertainment, and intercollegiate athletic procurement contracts;
(viii) the Maryland State Planning Council on Developmental Disabilities, for services to support demonstration, pilot, and training programs;
(ix) the Maryland Historical Trust for:
1. surveying and evaluating architecturally, archeologically, historically, or culturally significant properties; and
2. other than as to architectural services, preparing historic preservation planning documents and educational material;
(x) the University of Maryland, for Global Campus Overseas Programs, if the University adopts regulations that:
1. establish policies and procedures governing procurement for Global Campus Overseas Programs; and
2. promote the purposes stated in § 11–201(a) of this subtitle;
(xi) the Department of Commerce, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of Maryland and the tourism industry where there will be a private sector contribution to the project of not less than 50% of the total cost of the project, if the project is reviewed by the Attorney General and approved by the Secretary of Commerce or the Secretary’s designee;
(xii) the Rural Maryland Council;
(xiii) the Maryland State Lottery and Gaming Control Agency, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of the Maryland State Lottery and its products, if the cooperative marketing project:
1. provides a substantive promotional or marketing value that the lottery determines acceptable in exchange for advertising or other promotional activities provided by the lottery;
2. does not involve the advertising or other promotion of alcohol or tobacco products; and
3. is reviewed by the Attorney General and approved by the Maryland Lottery Director or the Director’s designee;
(xiv) the Maryland Health Insurance Plan established under Title 14, Subtitle 5 of the Insurance Article;
(xv) the Maryland Energy Administration, when negotiating or entering into grants or cooperative agreements with private entities to meet federal specifications or solicitation requirements related to energy conservation, energy efficiency, or renewable energy projects that benefit the State;
(xvi) the Maryland Developmental Disabilities Administration of the Maryland Department of Health for family and individual support services, and individual family care services, as those terms are defined by the Maryland Department of Health in regulation;
(xvii) the Department of General Services for the rehabilitation of a structure that is listed in or eligible for listing in the National Register of Historic Places, to the extent the procurement is necessary to preserve the historic fabric of the structure impacted by the rehabilitation, as determined by the Department of General Services in consultation with the Maryland Historical Trust;
(xviii) the Department of Natural Resources, for:
1. negotiating or entering into grants, agreements, or partnerships with nonprofit entities related to conservation service opportunities; and
2. negotiating or entering into pay–for–success contracts in accordance with § 13–112.1 of this Division II; and
(xix) the State Archives for preservation, conservation, proper care, restoration, and transportation of fine art or decorative art that is:
1. in the custody of the Commission on Artistic Property; and
2. owned by or loaned to the State;
(2) procurement by a unit from:
(i) another unit;
(ii) a political subdivision of the State;
(iii) an agency of a political subdivision of the State;
(iv) a government, including the government of another state, of the United States, or of another country;
(v) an agency or political subdivision of a government; or
(vi) a bistate, multistate, bicounty, or multicounty governmental agency; or
(3) procurement in support of enterprise activities for the purpose of:
(i) direct resale; or
(ii) remanufacture and subsequent resale.
(b) (1) The following provisions of this Division II apply to each procurement enumerated in subsection (a) of this section:
(i) § 11–205 of this subtitle (“Collusion”);
(ii) § 10–204 of this article (“Approval for designated contracts”);
(iii) Title 12, Subtitle 2 of this article (“Supervision of Capital Expenditures and Real Property Leases”);
(iv) § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
(v) § 13–221 of this article (“Disclosures to Secretary of State”);
(vi) Title 12, Subtitle 4 of this article (“Policies and Procedures for Exempt Units”);
(vii) § 15–112 of this article (“Change orders”);
(viii) § 15–113 of this article (“Liquidated damages policies and reporting”);
(ix) Title 16 of this article (“Suspension and Debarment of Contractors”); and
(x) Title 17 of this article (“Special Provisions – State and Local Subdivisions”).
(2) A procurement by an entity listed in subsection (a)(1)(i) through (xiii) and (xvii) of this section shall be made under procedures that promote the purposes stated in § 11–201(a) of this subtitle.
(3) (i) A unit that procures human, social, or educational services from an entity enumerated in subsection (a)(2) of this section shall publish in eMaryland Marketplace notice of a procurement contract or an extension or renewal of a procurement contract if:
1. the procurement contract, extension, or renewal costs more than $50,000; and
2. the procurement is made for 3rd party clients described in § 13–106 of this article.
(ii) The notice required under this paragraph shall be published not more than 30 days after the execution and approval of the procurement contract or the extension or renewal of the procurement contract.
(4) The purchase of advisory services from the General Selection Board or the Transportation Selection Board under § 13–305 of this article shall be governed by the Maryland Architectural and Engineering Services Act.
(c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitles 3 and 8 of this article and except for §§ 15–112 and 15–113 of this article, this Division II does not apply to the Maryland Stadium Authority.
(d) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for § 15–113 of this article, this Division II does not apply to the Board of Trustees of the State Retirement and Pension System for:
(1) services of managers to invest the assets of the State Retirement and Pension System, including real and personal property;
(2) expenditures to manage, maintain, and enhance the value of the assets of the State Retirement and Pension System in accordance with investment guidelines adopted by the Board of Trustees;
(3) services related to the administration of the optional retirement program under Title 30 of the State Personnel and Pensions Article;
(4) services related to the administration of the Postretirement Health Benefits Trust Fund; and
(5) expenditures for the safe custody, domestic or global, of investments as provided under § 21–123(f) of the State Personnel and Pensions Article.
(e) (1) In this subsection, “University” means the University System of Maryland, Morgan State University, or St. Mary’s College of Maryland.
(2) Except as otherwise provided in this subsection, this Division II does not apply to the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, or Baltimore City Community College.
(3) (i) A procurement by a University or Baltimore City Community College shall comply with the policies and procedures developed by the University or Baltimore City Community College and approved by the Board of Public Works and the Administrative, Executive, and Legislative Review Committee of the General Assembly in accordance with:
1. § 12–112 of the Education Article for the University System of Maryland;
2. § 14–109 of the Education Article for Morgan State University;
3. § 14–405(f) of the Education Article for St. Mary’s College of Maryland; or
4. § 16–505.3 of the Education Article for Baltimore City Community College.
(ii) 1. The review and approval of the Board of Public Works shall be required for the following types of contracts with a value that exceeds $1,000,000 for a University or $500,000 for Baltimore City Community College:
A. capital improvements; and
B. services.
2. In its review of a contract for services or capital improvements with a value that exceeds $1,000,000, the Board of Public Works may request the comments of the appropriate agencies, including the Department of Budget and Management and the Department of General Services.
3. For Baltimore City Community College contracts that are not subject to the review and approval of the Board of Public Works under subsubparagraph 1 of this subparagraph:
A. contracts with a value of $100,000 or less shall be reviewed and approved by the President of Baltimore City Community College or the President’s designee; and
B. contracts with a value that exceeds $100,000 but does not exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community College.
(4) The policies of a University or Baltimore City Community College shall:
(i) to the maximum extent practicable, require the purchasing of supplies and services in accordance with Title 14, Subtitle 1 of this article;
(ii) promote the purposes of the regulations adopted by the Department of General Services governing the procurement of architectural and engineering services;
(iii) promote the purposes of § 13–402 of the State Personnel and Pensions Article;
(iv) to the maximum extent practicable, be similar to § 13–218.1 of this article; and
(v) to the maximum extent practicable, require the procurement of food in accordance with Title 14, Subtitle 7 of this article.
(5) (i) Except as provided in paragraph (7) of this subsection, the following provisions of Division II of this article apply to a University and to Baltimore City Community College:
1. § 11–205 of this subtitle (“Collusion”);
2. § 11–205.1 of this subtitle (“Falsification, concealment, etc., of material facts”);
3. § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
4. § 13–225 of this article (“Retainage”);
5. Title 14, Subtitle 3 of this article (“Minority Business Participation”);
6. Title 14, Subtitle 7 of this article (“Certified Local Farm and Fish Program”);
7. Title 15, Subtitle 1 of this article (“Procurement Contract Administration”);
8. § 15–226 of this article (“Policy established; timing of payments; notice upon nonpayment; disputes; appeals”); and
9. Title 16 of this article (“Suspension and Debarment of Contractors”).
(ii) Except as provided in paragraph (7) of this subsection, Title 14, Subtitle 8 of this article (“Employee Stock Ownership Plan Preference Program”) applies to Morgan State University, St. Mary’s College of Maryland, and Baltimore City Community College.
(iii) If a procurement violates the provisions of this subsection or policies adopted in accordance with this subsection, the procurement contract is void or voidable in accordance with the provisions of § 11–204 of this subtitle.
(6) (i) The State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by:
1. the University System of Maryland before July 1, 1999;
2. Morgan State University before July 1, 2004; and
3. Baltimore City Community College before July 1, 2021.
(ii) At the election of the Board of Regents of the University System of Maryland and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by the University after June 30, 1999.
(iii) At the election of the Board of Regents of Morgan State University and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by the University after June 30, 2004.
(iv) At the election of the Board of Trustees of St. Mary’s College of Maryland and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by St. Mary’s College of Maryland after June 30, 2006.
(v) At the election of the Board of Trustees of Baltimore City Community College and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by Baltimore City Community College after June 30, 2021.
(7) Except with regard to the provisions of § 15–113 of this article, paragraphs (3), (4), and (5) of this subsection do not apply to:
(i) procurement by a University or Baltimore City Community College from:
1. another unit;
2. a political subdivision of the State;
3. an agency of a political subdivision of the State;
4. a government, including the government of another state, of the United States, or of another country;
5. an agency or political subdivision of a government; or
6. a bistate, multistate, bicounty, or multicounty governmental agency;
(ii) procurement by a University in support of enterprise activities for the purpose of:
1. direct resale;
2. remanufacture and subsequent resale; or
3. procurement by the University for overseas programs; or
(iii) procurement by the University System of Maryland for:
1. services of managers to invest, in accordance with the management and investment policies adopted by the Board of Regents of the University System of Maryland, gift and endowment assets received by the University System of Maryland in accordance with § 12–104(e) of the Education Article; or
2. expenditures to manage, maintain, and enhance, in accordance with the management and investment policies adopted by the Board of Regents of the University System of Maryland, the value of gift and endowment assets received by the University System of Maryland in accordance with § 12–104(e) of the Education Article.
(f) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for § 15–113 of this article, this Division II does not apply to Maryland 529 for:
(1) services of managers to invest the assets of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive investment plan adopted by the State Treasurer under § 18–1906 of the Education Article; and
(2) expenditures to manage, maintain, and enhance the value of the assets of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive investment plan adopted by the State Treasurer under § 18–1906 of the Education Article.
(g) This Division II does not apply to a contract or grant awarded by a unit of State government to the Chesapeake Bay Trust for a project involving the restoration or protection of the Chesapeake Bay and other aquatic and land resources of the State.
(h) (1) Except as provided in paragraph (2) of this subsection, this division does not apply to a public–private partnership under Title 10A of this article.
(2) To the extent otherwise required by law, the following provisions of this division apply to a public–private partnership under Title 10A of this article:
(i) § 11–205 of this subtitle (“Collusion”);
(ii) § 11–205.1 of this subtitle (“Falsification, concealment, etc., of material facts”);
(iii) Title 12, Subtitle 4 of this article (“Policies and Procedures for Exempt Units”);
(iv) § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
(v) § 15–113 of this article (“Liquidated damages policies and reporting”);
(vi) Title 17, Subtitle 1 of this article (“Security for Construction Contracts”);
(vii) Title 17, Subtitle 2 of this article (“Prevailing Wage Rates – Public Work Contracts”); and
(viii) Title 18 of this article (“Living Wage”).
(i) (1) Except as provided in paragraph (2) of this subsection, this Division II does not apply to the Maryland Corps Program established under Title 24, Subtitle 11 of the Education Article.
(2) The Maryland Corps Program established under Title 24, Subtitle 11 of the Education Article is subject to Title 14, Subtitle 3 and § 15–113 of this article.
(j) Repealed.
(k) (1) Except as provided in paragraph (2) of this subsection, this Division II does not apply to the West North Avenue Development Authority established under Title 12, Subtitle 7 of the Economic Development Article.
(2) The West North Avenue Development Authority established under Title 12, Subtitle 7 of the Economic Development Article is subject to Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article.
// EFFECTIVE SEPTEMBER 30, 2026 PER CHAPTER 136 OF 2023 //
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
(a) Except as provided in subsection (b) of this section, this Division II does not apply to:
(1) procurement by:
(i) the Blind Industries and Services of Maryland;
(ii) the Maryland State Arts Council, for the support of the arts;
(iii) the Maryland Health and Higher Educational Facilities Authority, if no State money is to be spent on a procurement contract;
(iv) the Maryland Industrial Training Program or the Partnership for Workforce Quality Program in the Department of Commerce, for training services or programs for new or expanding businesses or industries or businesses or industries in transition;
(v) the Maryland Food Center Authority, to the extent the Authority is exempt under Title 10, Subtitle 2 of the Economic Development Article;
(vi) the Maryland Public Broadcasting Commission:
1. for services of artists for educational and cultural television productions; or
2. when planning for or fulfilling the obligations of grants or cooperative agreements that support the educational and cultural activities of the Commission;
(vii) public institutions of higher education, for cultural, entertainment, and intercollegiate athletic procurement contracts;
(viii) the Maryland State Planning Council on Developmental Disabilities, for services to support demonstration, pilot, and training programs;
(ix) the Maryland Historical Trust for:
1. surveying and evaluating architecturally, archeologically, historically, or culturally significant properties; and
2. other than as to architectural services, preparing historic preservation planning documents and educational material;
(x) the University of Maryland, for Global Campus Overseas Programs, if the University adopts regulations that:
1. establish policies and procedures governing procurement for Global Campus Overseas Programs; and
2. promote the purposes stated in § 11–201(a) of this subtitle;
(xi) the Department of Commerce, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of Maryland and the tourism industry where there will be a private sector contribution to the project of not less than 50% of the total cost of the project, if the project is reviewed by the Attorney General and approved by the Secretary of Commerce or the Secretary’s designee;
(xii) the Rural Maryland Council;
(xiii) the Maryland State Lottery and Gaming Control Agency, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of the Maryland State Lottery and its products, if the cooperative marketing project:
1. provides a substantive promotional or marketing value that the lottery determines acceptable in exchange for advertising or other promotional activities provided by the lottery;
2. does not involve the advertising or other promotion of alcohol or tobacco products; and
3. is reviewed by the Attorney General and approved by the Maryland Lottery Director or the Director’s designee;
(xiv) the Maryland Health Insurance Plan established under Title 14, Subtitle 5 of the Insurance Article;
(xv) the Maryland Energy Administration, when negotiating or entering into grants or cooperative agreements with private entities to meet federal specifications or solicitation requirements related to energy conservation, energy efficiency, or renewable energy projects that benefit the State;
(xvi) the Maryland Developmental Disabilities Administration of the Maryland Department of Health for family and individual support services, and individual family care services, as those terms are defined by the Maryland Department of Health in regulation;
(xvii) the Department of General Services for the rehabilitation of a structure that is listed in or eligible for listing in the National Register of Historic Places, to the extent the procurement is necessary to preserve the historic fabric of the structure impacted by the rehabilitation, as determined by the Department of General Services in consultation with the Maryland Historical Trust;
(xviii) the Department of Natural Resources, for:
1. negotiating or entering into grants, agreements, or partnerships with nonprofit entities related to conservation service opportunities; and
2. negotiating or entering into pay–for–success contracts in accordance with § 13–112.1 of this Division II; and
(xix) the State Archives for preservation, conservation, proper care, restoration, and transportation of fine art or decorative art that is:
1. in the custody of the Commission on Artistic Property; and
2. owned by or loaned to the State;
(2) procurement by a unit from:
(i) another unit;
(ii) a political subdivision of the State;
(iii) an agency of a political subdivision of the State;
(iv) a government, including the government of another state, of the United States, or of another country;
(v) an agency or political subdivision of a government; or
(vi) a bistate, multistate, bicounty, or multicounty governmental agency; or
(3) procurement in support of enterprise activities for the purpose of:
(i) direct resale; or
(ii) remanufacture and subsequent resale.
(b) (1) The following provisions of this Division II apply to each procurement enumerated in subsection (a) of this section:
(i) § 11–205 of this subtitle (“Collusion”);
(ii) § 10–204 of this article (“Approval for designated contracts”);
(iii) Title 12, Subtitle 2 of this article (“Supervision of Capital Expenditures and Real Property Leases”);
(iv) § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
(v) § 13–221 of this article (“Disclosures to Secretary of State”);
(vi) Title 12, Subtitle 4 of this article (“Policies and Procedures for Exempt Units”);
(vii) § 15–112 of this article (“Change orders”);
(viii) § 15–113 of this article (“Liquidated damages policies and reporting”);
(ix) Title 16 of this article (“Suspension and Debarment of Contractors”); and
(x) Title 17 of this article (“Special Provisions – State and Local Subdivisions”).
(2) A procurement by an entity listed in subsection (a)(1)(i) through (xiii) and (xvii) of this section shall be made under procedures that promote the purposes stated in § 11–201(a) of this subtitle.
(3) (i) A unit that procures human, social, or educational services from an entity enumerated in subsection (a)(2) of this section shall publish in eMaryland Marketplace notice of a procurement contract or an extension or renewal of a procurement contract if:
1. the procurement contract, extension, or renewal costs more than $50,000; and
2. the procurement is made for 3rd party clients described in § 13–106 of this article.
(ii) The notice required under this paragraph shall be published not more than 30 days after the execution and approval of the procurement contract or the extension or renewal of the procurement contract.
(4) The purchase of advisory services from the General Selection Board or the Transportation Selection Board under § 13–305 of this article shall be governed by the Maryland Architectural and Engineering Services Act.
(c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitles 3 and 8 of this article and except for §§ 15–112 and 15–113 of this article, this Division II does not apply to the Maryland Stadium Authority.
(d) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for § 15–113 of this article, this Division II does not apply to the Board of Trustees of the State Retirement and Pension System for:
(1) services of managers to invest the assets of the State Retirement and Pension System, including real and personal property;
(2) expenditures to manage, maintain, and enhance the value of the assets of the State Retirement and Pension System in accordance with investment guidelines adopted by the Board of Trustees;
(3) services related to the administration of the optional retirement program under Title 30 of the State Personnel and Pensions Article;
(4) services related to the administration of the Postretirement Health Benefits Trust Fund; and
(5) expenditures for the safe custody, domestic or global, of investments as provided under § 21–123(f) of the State Personnel and Pensions Article.
(e) (1) In this subsection, “University” means the University System of Maryland, Morgan State University, or St. Mary’s College of Maryland.
(2) Except as otherwise provided in this subsection, this Division II does not apply to the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, or Baltimore City Community College.
(3) (i) A procurement by a University or Baltimore City Community College shall comply with the policies and procedures developed by the University or Baltimore City Community College and approved by the Board of Public Works and the Administrative, Executive, and Legislative Review Committee of the General Assembly in accordance with:
1. § 12–112 of the Education Article for the University System of Maryland;
2. § 14–109 of the Education Article for Morgan State University;
3. § 14–405(f) of the Education Article for St. Mary’s College of Maryland; or
4. § 16–505.3 of the Education Article for Baltimore City Community College.
(ii) 1. The review and approval of the Board of Public Works shall be required for the following types of contracts with a value that exceeds $1,000,000 for a University or $500,000 for Baltimore City Community College:
A. capital improvements; and
B. services.
2. In its review of a contract for services or capital improvements with a value that exceeds $1,000,000, the Board of Public Works may request the comments of the appropriate agencies, including the Department of Budget and Management and the Department of General Services.
3. For Baltimore City Community College contracts that are not subject to the review and approval of the Board of Public Works under subsubparagraph 1 of this subparagraph:
A. contracts with a value of $100,000 or less shall be reviewed and approved by the President of Baltimore City Community College or the President’s designee; and
B. contracts with a value that exceeds $100,000 but does not exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community College.
(4) The policies of a University or Baltimore City Community College shall:
(i) to the maximum extent practicable, require the purchasing of supplies and services in accordance with Title 14, Subtitle 1 of this article;
(ii) promote the purposes of the regulations adopted by the Department of General Services governing the procurement of architectural and engineering services;
(iii) promote the purposes of § 13–402 of the State Personnel and Pensions Article;
(iv) to the maximum extent practicable, be similar to § 13–218.1 of this article; and
(v) to the maximum extent practicable, require the procurement of food in accordance with Title 14, Subtitle 7 of this article.
(5) (i) Except as provided in paragraph (7) of this subsection, the following provisions of Division II of this article apply to a University and to Baltimore City Community College:
1. § 11–205 of this subtitle (“Collusion”);
2. § 11–205.1 of this subtitle (“Falsification, concealment, etc., of material facts”);
3. § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
4. § 13–225 of this article (“Retainage”);
5. Title 14, Subtitle 3 of this article (“Minority Business Participation”);
6. Title 14, Subtitle 7 of this article (“Certified Local Farm and Fish Program”);
7. Title 15, Subtitle 1 of this article (“Procurement Contract Administration”);
8. § 15–226 of this article (“Policy established; timing of payments; notice upon nonpayment; disputes; appeals”); and
9. Title 16 of this article (“Suspension and Debarment of Contractors”).
(ii) Except as provided in paragraph (7) of this subsection, Title 14, Subtitle 8 of this article (“Employee Stock Ownership Plan Preference Program”) applies to Morgan State University, St. Mary’s College of Maryland, and Baltimore City Community College.
(iii) If a procurement violates the provisions of this subsection or policies adopted in accordance with this subsection, the procurement contract is void or voidable in accordance with the provisions of § 11–204 of this subtitle.
(6) (i) The State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by:
1. the University System of Maryland before July 1, 1999;
2. Morgan State University before July 1, 2004; and
3. Baltimore City Community College before July 1, 2021.
(ii) At the election of the Board of Regents of the University System of Maryland and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by the University after June 30, 1999.
(iii) At the election of the Board of Regents of Morgan State University and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by the University after June 30, 2004.
(iv) At the election of the Board of Trustees of St. Mary’s College of Maryland and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by St. Mary’s College of Maryland after June 30, 2006.
(v) At the election of the Board of Trustees of Baltimore City Community College and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by Baltimore City Community College after June 30, 2021.
(7) Except with regard to the provisions of § 15–113 of this article, paragraphs (3), (4), and (5) of this subsection do not apply to:
(i) procurement by a University or Baltimore City Community College from:
1. another unit;
2. a political subdivision of the State;
3. an agency of a political subdivision of the State;
4. a government, including the government of another state, of the United States, or of another country;
5. an agency or political subdivision of a government; or
6. a bistate, multistate, bicounty, or multicounty governmental agency;
(ii) procurement by a University in support of enterprise activities for the purpose of:
1. direct resale;
2. remanufacture and subsequent resale; or
3. procurement by the University for overseas programs; or
(iii) procurement by the University System of Maryland for:
1. services of managers to invest, in accordance with the management and investment policies adopted by the Board of Regents of the University System of Maryland, gift and endowment assets received by the University System of Maryland in accordance with § 12–104(e) of the Education Article; or
2. expenditures to manage, maintain, and enhance, in accordance with the management and investment policies adopted by the Board of Regents of the University System of Maryland, the value of gift and endowment assets received by the University System of Maryland in accordance with § 12–104(e) of the Education Article.
(f) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for § 15–113 of this article, this Division II does not apply to Maryland 529 for:
(1) services of managers to invest the assets of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive investment plan adopted by the State Treasurer under § 18–1906 of the Education Article; and
(2) expenditures to manage, maintain, and enhance the value of the assets of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive investment plan adopted by the State Treasurer under § 18–1906 of the Education Article.
(g) This Division II does not apply to a contract or grant awarded by a unit of State government to the Chesapeake Bay Trust for a project involving the restoration or protection of the Chesapeake Bay and other aquatic and land resources of the State.
(h) (1) Except as provided in paragraph (2) of this subsection, this division does not apply to a public–private partnership under Title 10A of this article.
(2) To the extent otherwise required by law, the following provisions of this division apply to a public–private partnership under Title 10A of this article:
(i) § 11–205 of this subtitle (“Collusion”);
(ii) § 11–205.1 of this subtitle (“Falsification, concealment, etc., of material facts”);
(iii) Title 12, Subtitle 4 of this article (“Policies and Procedures for Exempt Units”);
(iv) § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
(v) § 15–113 of this article (“Liquidated damages policies and reporting”);
(vi) Title 17, Subtitle 1 of this article (“Security for Construction Contracts”);
(vii) Title 17, Subtitle 2 of this article (“Prevailing Wage Rates – Public Work Contracts”); and
(viii) Title 18 of this article (“Living Wage”).
(i) (1) Except as provided in paragraph (2) of this subsection, this Division II does not apply to the Maryland Corps Program established under Title 24, Subtitle 11 of the Education Article.
(2) The Maryland Corps Program established under Title 24, Subtitle 11 of the Education Article is subject to Title 14, Subtitle 3 and § 15–113 of this article.
// EFFECTIVE JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
(a) Except as provided in subsection (b) of this section, this Division II does not apply to:
(1) procurement by:
(i) the Blind Industries and Services of Maryland;
(ii) the Maryland State Arts Council, for the support of the arts;
(iii) the Maryland Health and Higher Educational Facilities Authority, if no State money is to be spent on a procurement contract;
(iv) the Maryland Industrial Training Program or the Partnership for Workforce Quality Program in the Department of Commerce, for training services or programs for new or expanding businesses or industries or businesses or industries in transition;
(v) the Maryland Food Center Authority, to the extent the Authority is exempt under Title 10, Subtitle 2 of the Economic Development Article;
(vi) the Maryland Public Broadcasting Commission:
1. for services of artists for educational and cultural television productions; or
2. when planning for or fulfilling the obligations of grants or cooperative agreements that support the educational and cultural activities of the Commission;
(vii) public institutions of higher education, for cultural, entertainment, and intercollegiate athletic procurement contracts;
(viii) the Maryland State Planning Council on Developmental Disabilities, for services to support demonstration, pilot, and training programs;
(ix) the Maryland Historical Trust for:
1. surveying and evaluating architecturally, archeologically, historically, or culturally significant properties; and
2. other than as to architectural services, preparing historic preservation planning documents and educational material;
(x) the University of Maryland, for Global Campus Overseas Programs, if the University adopts regulations that:
1. establish policies and procedures governing procurement for Global Campus Overseas Programs; and
2. promote the purposes stated in § 11–201(a) of this subtitle;
(xi) the Department of Commerce, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of Maryland and the tourism industry where there will be a private sector contribution to the project of not less than 50% of the total cost of the project, if the project is reviewed by the Attorney General and approved by the Secretary of Commerce or the Secretary’s designee;
(xii) the Rural Maryland Council;
(xiii) the Maryland State Lottery and Gaming Control Agency, for negotiating and entering into private sector cooperative marketing projects that directly enhance promotion of the Maryland State Lottery and its products, if the cooperative marketing project:
1. provides a substantive promotional or marketing value that the lottery determines acceptable in exchange for advertising or other promotional activities provided by the lottery;
2. does not involve the advertising or other promotion of alcohol or tobacco products; and
3. is reviewed by the Attorney General and approved by the Maryland Lottery Director or the Director’s designee;
(xiv) the Maryland Health Insurance Plan established under Title 14, Subtitle 5 of the Insurance Article;
(xv) the Maryland Energy Administration, when negotiating or entering into grants or cooperative agreements with private entities to meet federal specifications or solicitation requirements related to energy conservation, energy efficiency, or renewable energy projects that benefit the State;
(xvi) the Maryland Developmental Disabilities Administration of the Maryland Department of Health for family and individual support services, and individual family care services, as those terms are defined by the Maryland Department of Health in regulation;
(xvii) the Department of General Services for the rehabilitation of a structure that is listed in or eligible for listing in the National Register of Historic Places, to the extent the procurement is necessary to preserve the historic fabric of the structure impacted by the rehabilitation, as determined by the Department of General Services in consultation with the Maryland Historical Trust;
(xviii) the Department of Natural Resources, for:
1. negotiating or entering into grants, agreements, or partnerships with nonprofit entities related to conservation service opportunities; and
2. negotiating or entering into pay–for–success contracts in accordance with § 13–112.1 of this Division II; and
(xix) the State Archives for preservation, conservation, proper care, restoration, and transportation of fine art or decorative art that is:
1. in the custody of the Commission on Artistic Property; and
2. owned by or loaned to the State;
(2) procurement by a unit from:
(i) another unit;
(ii) a political subdivision of the State;
(iii) an agency of a political subdivision of the State;
(iv) a government, including the government of another state, of the United States, or of another country;
(v) an agency or political subdivision of a government; or
(vi) a bistate, multistate, bicounty, or multicounty governmental agency; or
(3) procurement in support of enterprise activities for the purpose of:
(i) direct resale; or
(ii) remanufacture and subsequent resale.
(b) (1) The following provisions of this Division II apply to each procurement enumerated in subsection (a) of this section:
(i) § 11–205 of this subtitle (“Collusion”);
(ii) § 10–204 of this article (“Approval for designated contracts”);
(iii) Title 12, Subtitle 2 of this article (“Supervision of Capital Expenditures and Real Property Leases”);
(iv) § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
(v) § 13–221 of this article (“Disclosures to Secretary of State”);
(vi) Title 12, Subtitle 4 of this article (“Policies and Procedures for Exempt Units”);
(vii) § 15–112 of this article (“Change orders”);
(viii) § 15–113 of this article (“Liquidated damages policies and reporting”);
(ix) Title 16 of this article (“Suspension and Debarment of Contractors”); and
(x) Title 17 of this article (“Special Provisions – State and Local Subdivisions”).
(2) A procurement by an entity listed in subsection (a)(1)(i) through (xiii) and (xvii) of this section shall be made under procedures that promote the purposes stated in § 11–201(a) of this subtitle.
(3) (i) A unit that procures human, social, or educational services from an entity enumerated in subsection (a)(2) of this section shall publish in eMaryland Marketplace notice of a procurement contract or an extension or renewal of a procurement contract if:
1. the procurement contract, extension, or renewal costs more than $50,000; and
2. the procurement is made for 3rd party clients described in § 13–106 of this article.
(ii) The notice required under this paragraph shall be published not more than 30 days after the execution and approval of the procurement contract or the extension or renewal of the procurement contract.
(4) The purchase of advisory services from the General Selection Board or the Transportation Selection Board under § 13–305 of this article shall be governed by the Maryland Architectural and Engineering Services Act.
(c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for §§ 15–112 and 15–113 of this article, this Division II does not apply to the Maryland Stadium Authority.
(d) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for § 15–113 of this article, this Division II does not apply to the Board of Trustees of the State Retirement and Pension System for:
(1) services of managers to invest the assets of the State Retirement and Pension System, including real and personal property;
(2) expenditures to manage, maintain, and enhance the value of the assets of the State Retirement and Pension System in accordance with investment guidelines adopted by the Board of Trustees;
(3) services related to the administration of the optional retirement program under Title 30 of the State Personnel and Pensions Article;
(4) services related to the administration of the Postretirement Health Benefits Trust Fund; and
(5) expenditures for the safe custody, domestic or global, of investments as provided under § 21–123(f) of the State Personnel and Pensions Article.
(e) (1) In this subsection, “University” means the University System of Maryland, Morgan State University, or St. Mary’s College of Maryland.
(2) Except as otherwise provided in this subsection, this Division II does not apply to the University System of Maryland, Morgan State University, St. Mary’s College of Maryland, or Baltimore City Community College.
(3) (i) A procurement by a University or Baltimore City Community College shall comply with the policies and procedures developed by the University or Baltimore City Community College and approved by the Board of Public Works and the Administrative, Executive, and Legislative Review Committee of the General Assembly in accordance with:
1. § 12–112 of the Education Article for the University System of Maryland;
2. § 14–109 of the Education Article for Morgan State University;
3. § 14–405(f) of the Education Article for St. Mary’s College of Maryland; or
4. § 16–505.3 of the Education Article for Baltimore City Community College.
(ii) 1. The review and approval of the Board of Public Works shall be required for the following types of contracts with a value that exceeds $1,000,000 for a University or $500,000 for Baltimore City Community College:
A. capital improvements; and
B. services.
2. In its review of a contract for services or capital improvements with a value that exceeds $1,000,000, the Board of Public Works may request the comments of the appropriate agencies, including the Department of Budget and Management and the Department of General Services.
3. For Baltimore City Community College contracts that are not subject to the review and approval of the Board of Public Works under subsubparagraph 1 of this subparagraph:
A. contracts with a value of $100,000 or less shall be reviewed and approved by the President of Baltimore City Community College or the President’s designee; and
B. contracts with a value that exceeds $100,000 but does not exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community College.
(4) The policies of a University or Baltimore City Community College shall:
(i) to the maximum extent practicable, require the purchasing of supplies and services in accordance with Title 14, Subtitle 1 of this article;
(ii) promote the purposes of the regulations adopted by the Department of General Services governing the procurement of architectural and engineering services;
(iii) promote the purposes of § 13–402 of the State Personnel and Pensions Article;
(iv) to the maximum extent practicable, be similar to § 13–218.1 of this article; and
(v) to the maximum extent practicable, require the procurement of food in accordance with Title 14, Subtitle 7 of this article.
(5) (i) Except as provided in paragraph (7) of this subsection, the following provisions of Division II of this article apply to a University and to Baltimore City Community College:
1. § 11–205 of this subtitle (“Collusion”);
2. § 11–205.1 of this subtitle (“Falsification, concealment, etc., of material facts”);
3. § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
4. § 13–225 of this article (“Retainage”);
5. Title 14, Subtitle 3 of this article (“Minority Business Participation”);
6. Title 14, Subtitle 7 of this article (“Certified Local Farm and Fish Program”);
7. Title 15, Subtitle 1 of this article (“Procurement Contract Administration”);
8. § 15–226 of this article (“Policy established; timing of payments; notice upon nonpayment; disputes; appeals”); and
9. Title 16 of this article (“Suspension and Debarment of Contractors”).
(ii) If a procurement violates the provisions of this subsection or policies adopted in accordance with this subsection, the procurement contract is void or voidable in accordance with the provisions of § 11–204 of this subtitle.
(6) (i) The State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by:
1. the University System of Maryland before July 1, 1999;
2. Morgan State University before July 1, 2004; and
3. Baltimore City Community College before July 1, 2021.
(ii) At the election of the Board of Regents of the University System of Maryland and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by the University after June 30, 1999.
(iii) At the election of the Board of Regents of Morgan State University and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by the University after June 30, 2004.
(iv) At the election of the Board of Trustees of St. Mary’s College of Maryland and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by St. Mary’s College of Maryland after June 30, 2006.
(v) At the election of the Board of Trustees of Baltimore City Community College and subject to the approval of the Board of Public Works, the State Board of Contract Appeals shall have authority over contract claims related to procurement contracts awarded by Baltimore City Community College after June 30, 2021.
(7) Except with regard to the provisions of § 15–113 of this article, paragraphs (3), (4), and (5) of this subsection do not apply to:
(i) procurement by a University or Baltimore City Community College from:
1. another unit;
2. a political subdivision of the State;
3. an agency of a political subdivision of the State;
4. a government, including the government of another state, of the United States, or of another country;
5. an agency or political subdivision of a government; or
6. a bistate, multistate, bicounty, or multicounty governmental agency;
(ii) procurement by a University in support of enterprise activities for the purpose of:
1. direct resale;
2. remanufacture and subsequent resale; or
3. procurement by the University for overseas programs; or
(iii) procurement by the University System of Maryland for:
1. services of managers to invest, in accordance with the management and investment policies adopted by the Board of Regents of the University System of Maryland, gift and endowment assets received by the University System of Maryland in accordance with § 12–104(e) of the Education Article; or
2. expenditures to manage, maintain, and enhance, in accordance with the management and investment policies adopted by the Board of Regents of the University System of Maryland, the value of gift and endowment assets received by the University System of Maryland in accordance with § 12–104(e) of the Education Article.
(f) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of this article and except for § 15–113 of this article, this Division II does not apply to Maryland 529 for:
(1) services of managers to invest the assets of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive investment plan adopted by the State Treasurer under § 18–1906 of the Education Article; and
(2) expenditures to manage, maintain, and enhance the value of the assets of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust in accordance with the comprehensive investment plan adopted by the State Treasurer under § 18–1906 of the Education Article.
(g) This Division II does not apply to a contract or grant awarded by a unit of State government to the Chesapeake Bay Trust for a project involving the restoration or protection of the Chesapeake Bay and other aquatic and land resources of the State.
(h) (1) Except as provided in paragraph (2) of this subsection, this division does not apply to a public–private partnership under Title 10A of this article.
(2) To the extent otherwise required by law, the following provisions of this division apply to a public–private partnership under Title 10A of this article:
(i) § 11–205 of this subtitle (“Collusion”);
(ii) § 11–205.1 of this subtitle (“Falsification, concealment, etc., of material facts”);
(iii) Title 12, Subtitle 4 of this article (“Policies and Procedures for Exempt Units”);
(iv) § 13–219 of this article (“Required clauses – Nondiscrimination clause”);
(v) § 15–113 of this article (“Liquidated damages policies and reporting”);
(vi) Title 17, Subtitle 1 of this article (“Security for Construction Contracts”);
(vii) Title 17, Subtitle 2 of this article (“Prevailing Wage Rates – Public Work Contracts”); and
(viii) Title 18 of this article (“Living Wage”).
(i) (1) Except as provided in paragraph (2) of this subsection, this Division II does not apply to the Maryland Corps Program established under Title 24, Subtitle 11 of the Education Article.
(2) The Maryland Corps Program established under Title 24, Subtitle 11 of the Education Article is subject to Title 14, Subtitle 3 and § 15–113 of this article.
(a) A unit may not enter into a procurement contract except as allowed under this Division II.
(b) (1) Except as otherwise provided in this Division II, if a procurement violates this Division II, the procurement contract is void.
(2) Whenever a procurement contract is void under this subsection, the contractor shall be awarded compensation for actual expenses reasonably incurred under the procurement contract, plus a reasonable profit, if the contractor:
(i) acted in good faith;
(ii) did not directly contribute to a violation of this Division II; and
(iii) had no knowledge of the violation before the procurement contract was awarded.
(c) (1) Whenever a procurement violates this Division II, the Board may determine that the procurement contract is voidable, rather than void, if the Board determines that:
(i) all parties acted in good faith;
(ii) ratification of the procurement contract would not undermine the purposes of this Division II; and
(iii) the violation or series of violations was insignificant or otherwise did not prevent substantial compliance with this Division II.
(2) Whenever a procurement contract is voidable under this subsection and the contractor has not acted in violation of this Division II, the unit may:
(i) ratify the procurement contract if the unit determines that ratification is in the best interests of the State; or
(ii) void the procurement contract and award the contractor compensation for actual expenses reasonably incurred under the contract, plus a reasonable profit.
(3) Whenever a procurement contract is voidable under this subsection and the contractor has acted in violation of this Division II, the unit:
(i) may void the procurement contract; or
(ii) without prejudice to the State’s right to appropriate damages, may ratify the procurement contract if the unit determines that ratification is in the best interests of the State.
(a) This section is broadly applicable to all procurements by the State.
(b) A person who, for the purpose of defrauding the State, acts in collusion with another person in connection with the procurement process is liable for damages equal to 3 times the value of the loss to the State that is attributable to the collusion.
(c) (1) A procurement officer who has reason to believe that collusion has occurred in connection with the procurement process shall send to the Office of the Attorney General written notice that states the belief and its basis.
(2) The Attorney General may begin an action in the appropriate court for damages under subsection (b) of this section.
(d) (1) If there is reason to believe that collusion has occurred in connection with the procurement process, all relevant documents shall be kept until the Attorney General gives notice that they may be destroyed.
(2) On request by the Office of the Attorney General, relevant documents shall be made available immediately.
(a) In connection with a procurement contract a person may not willfully:
(1) falsify, conceal, or suppress a material fact by any scheme or device;
(2) make a false or fraudulent statement or representation of a material fact; or
(3) use a false writing or document that contains a false or fraudulent statement or entry of a material fact.
(b) A person may not aid or conspire with another person to commit an act under subsection (a) of this section.
(c) A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 5 years or both.
(a) Unless otherwise indicated in the regulation, a regulation adopted under this Division II applies to a procurement contract if:
(1) the regulation is in effect on the day that the parties execute the procurement contract; and
(2) the procurement contract is governed by this Division II.
(b) A regulation adopted under this Division II does not affect the rights of a unit or contractor under a procurement contract that was entered into before the effective date of the regulation.
(c) A requirement of law that a procurement contract contain a particular provision is satisfied if the procurement contract includes notice of the provision, including the subject matter of the provision.
Each determination required under this Division II shall be:
(1) in writing;
(2) based on written findings of the public official or employee who makes the determination; and
(3) kept, for at least 3 years, in an official procurement contract file.
(a) In this subtitle the following words have the meanings indicated.
(b) (1) “Employee” means any individual who performs services for, or under the control and direction of, an employer for wages or other remuneration.
(2) “Employee” does not include an employee as defined in § 1-501(c)(1) of the Health Occupations Article.
(c) (1) “Employer” means a person engaged in a business, industry, profession, trade, or other enterprise that enters a procurement contract with a unit to provide supplies or services under this Division II.
(2) “Employer” includes agents, contractors, and subcontractors of an employer.
(3) “Employer” does not include a unit of State government subject to the provisions of Title 5, Subtitle 3 of the State Personnel and Pensions Article or the Judicial Branch of State government.
An employer subject to this subtitle shall provide employees with written notice of the protections and remedies provided by this subtitle.
An employer may not take or refuse to take any personnel action as a reprisal against an employee because the employee:
(1) discloses information that the employee reasonably believes evidences:
(i) an abuse of authority, gross mismanagement, or gross waste of money;
(ii) a substantial and specific danger to public health or safety; or
(iii) a violation of law;
(2) objects to or refuses to participate in any activity, policy, or practice in violation of law; or
(3) following a disclosure under item (1) of this section, seeks a remedy provided under this subtitle.
(a) Any employee who is subject to a personnel action in violation of § 11-303 of this subtitle may institute a civil action in the county where:
(1) the alleged violation occurred;
(2) the employee resides; or
(3) the employer maintains its principal office in the State.
(b) The action shall be brought within 1 year after the alleged violation of § 11-303 of this subtitle occurred or within 1 year after the employee first became aware of the alleged violation of § 11-303 of this subtitle.
In any action brought under this subtitle, a court may:
(1) issue an injunction to restrain continued violation of § 11-303 of this subtitle;
(2) reinstate the employee to the same or an equivalent position held before the violation of § 11-303 of this subtitle;
(3) remove any adverse personnel record entries based on or related to the violation of § 11-303 of this subtitle;
(4) reinstate full fringe benefits and seniority rights;
(5) require compensation for lost wages, benefits, and other remuneration;
(6) award costs of litigation and reasonable attorney’s fees to the prevailing employee; and
(7) award any other appropriate damages and relief.
In any action brought under this subtitle, it is a defense that the personnel action was based on grounds other than the employee’s exercise of any rights protected under this subtitle.
(a) This section does not apply to:
(1) capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12–202 of this title; or
(2) procurements by the Department of General Services for the purpose of modernizing cybersecurity infrastructure for the State valued below $1,000,000.
(b) (1) The Board may control procurement by units.
(2) To implement the provisions of this Division II, the Board may:
(i) set policy;
(ii) adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article; and
(iii) establish internal operational procedures consistent with this Division II.
(3) The Board shall ensure that the regulations of the primary procurement units provide for procedures that are consistent with this Division II and Title 13, Subtitle 4 of the State Personnel and Pensions Article and, to the extent the circumstances of a particular type of procurement or a particular unit do not require otherwise, are substantially the same.
(4) The Board may delegate any of its authority that it determines to be appropriate for delegation and may require prior Board approval for specified procurement actions.
(5) Except as limited by the Maryland Constitution, the Board may exercise any control authority conferred on a primary procurement unit by this Division II and, to the extent that its action conflicts with the action of the primary procurement unit, the action of the Board shall prevail.
(c) On or before December 1 each year, the Department of General Services shall submit a report to the Board on procurements made under subsection (a)(2) of this section that shall include for each procurement:
(1) the purpose of the procurement;
(2) the name of the contractor;
(3) the contract amount;
(4) the method of procurement utilized;
(5) the number of bidders who bid on the procurement; and
(6) the contract term.
(d) A contract to modernize an information technology system or to proceed with an expedited project as defined in § 3.5–301 of this article shall be expedited for approval by the Board and placed on the agenda of the Board as soon as practicable.
(a) (1) The Board shall appoint a Procurement Advisor, who serves at the pleasure of the Board.
(2) The Procurement Advisor shall:
(i) ensure that the State’s procurement system is utilizing the most advanced procurement methods and management techniques;
(ii) examine all procurements that are subject to review by the Board and make recommendations to the Board as to the appropriateness of each procurement, with an emphasis on whether the proposed procurement:
1. has been competitively conducted; and
2. conforms to provisions of procurement law, procurement regulations, and best management practices;
(iii) prevent and detect fraud, waste, and abuse and foster competition in the expenditure of State funds in the procurement of supplies, services, or construction;
(iv) conduct investigations into procurement policies, practices, and procedures, as appropriate;
(v) investigate complaints made by State employees concerning fraud, waste, and abuse in the procurement process and any alleged violation of the procurement law or regulations;
(vi) investigate complaints, other than formal bid protests filed under Title 15, Subtitle 2 of this article, made by contractors and other interested parties concerning fraud, waste, and abuse in the procurement process and any alleged violation of the procurement law or regulations;
(vii) if apparent criminal violations are found in the course of an investigation, report findings to the Board of Public Works, Office of the Attorney General, United States Attorney, and State or local prosecutors, as appropriate;
(viii) if other apparent violations of law or regulation are found in the course of an investigation, report findings to the Board of Public Works, the appropriate agency head, and any other appropriate body for administrative action;
(ix) produce and submit to the Board of Public Works and the General Assembly, in accordance with § 2–1257 of the State Government Article, an annual report of the activities of the Procurement Advisor, including:
1. all findings and recommendations for improvements to the procurement system; and
2. the identification of barriers to effective broad–based competition in State procurement and recommendations for the elimination of these barriers;
(x) assist agencies and the public with questions regarding procurement policy;
(xi) establish policies for the effective training of State procurement officials to ensure that the State’s procurement system is utilizing the most advanced procurement methods and management techniques;
(xiii) review internal audit reports and comment as appropriate;
(xiv) notify the Legislative Auditor when the Procurement Advisor undertakes an investigation under item (v) or (vi) of this paragraph.
(3) The Procurement Advisor shall:
(i) have access to all books, accounts, records, reports, any material related to contracts and procurement, and all other papers and equipment necessary to carry out its responsibilities; and
(ii) have direct and prompt access to all heads of agencies involved in the expenditure of public funds.
(b) (1) (i) The Board shall appoint a General Counsel, who serves at the pleasure of the Board.
(ii) The General Counsel shall be an attorney in this State.
(2) The General Counsel shall:
(i) provide independent legal advice to the Board;
(ii) examine all procurements that are subject to review by the Board and make recommendations to the Board as to the legal sufficiency of the procurements, with an emphasis on whether the proposed procurement has been competitively conducted;
(iii) assist the Procurement Advisor in investigations undertaken by the Procurement Advisor;
(iv) assist the Procurement Advisor in responding to complaints made by State employees, contractors, and other interested parties concerning fraud, waste, and abuse in the procurement process or any alleged violation of the procurement law and regulations;
(v) compile information for distribution to State procurement officials relating to recent decisions of the Maryland State Board of Contract Appeals and State and federal courts concerning procurement, including any policy or legal guidance to the procurement officials based on these decisions; and
(vi) review regulations proposed by the Board for legality and approve them for proposal and adoption.
(3) The General Counsel shall:
(i) have access to all books, accounts, records, any material related to contracts and procurement, and all other papers and equipment necessary to carry out its responsibilities; and
(ii) have direct and prompt access to all heads of agencies involved in the expenditure of public funds.
(c) In accordance with the State budget, the Board may appoint any additional staff necessary to carry out its responsibilities under this Division II.
(a) This section does not apply to capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12-202 of this title.
(b) Notwithstanding any delegation of authority under § 12-101 of this subtitle, the Board retains full authority to engage in procurement of services and supplies for itself.
(c) By resolution, the Board may authorize a Board member or a unit to exercise all or any part of the authority of the Board for a specific Board procurement or for a particular class of Board procurements.
(a) Except as provided in subsection (b) of this section, the Board may modify or waive any requirement under this Division II for a procurement contract or a class of procurement contracts that is to be performed entirely outside the United States, or any lease of real property outside this State, to the extent that:
(1) the purposes stated in § 11–201(a) of this article are fostered;
(2) the circumstances require the modification or waiver; and
(3) foreign or out–of–state contractors are expected to be involved in the procurement.
(b) The Board may not modify or waive the following requirements:
(1) § 14–404 of this article (“Coal in heating systems”);
(2) Title 16, Subtitle 2 of this article (“Offenses Subject to Debarment”); and
(3) Title 17 of this article (“Special Provisions –– State and Local Subdivisions”).
(a) In this section, “Council” means the Procurement Improvement Council.
(b) There is a Procurement Improvement Council.
(c) (1) The Council consists of the following members:
(i) the State Treasurer;
(ii) the Chancellor of the University System of Maryland;
(iii) the Chief Procurement Officer;
(iv) the Secretary of Information Technology;
(v) the Secretary of Transportation;
(vi) the Procurement Advisor of the Board;
(vii) the Special Secretary for the Office of Small, Minority, and Women Business Affairs;
(viii) the Secretary of Juvenile Services;
(ix) the Secretary of Human Services;
(x) the Secretary of Health;
(xi) the State Superintendent of Schools;
(xii) the Comptroller;
(xiii) the Attorney General;
(xiv) the following individuals, appointed by the Governor with the advice and consent of the Senate:
1. a representative of local government who has expertise in local procurement matters;
2. two representatives of social service providers in the State; and
3. a representative of a minority–, women–, or veteran–owned business;
(xv) three members of the general public appointed by the presiding officers of the General Assembly, of whom:
1. at least one shall have expertise in State procurement matters; and
2. at least two shall represent a minority–, women–, or veteran–owned business;
(xvi) a member of the Senate, appointed by the President of the Senate; and
(xvii) a member of the House of Delegates, appointed by the Speaker of the House.
(2) (i) If the State Treasurer is unable to attend a meeting of the Council, the Treasurer may designate the Deputy Treasurer to attend the meeting.
(ii) If a member of the Council listed in paragraph (1)(ii) through (xi) of this subsection is unable to attend a meeting of the Council, the member may designate a senior management staff member with experience in procurement to attend the meeting.
(iii) If the Comptroller is unable to attend a meeting of the Council, the Comptroller may send a designee to attend the meeting.
(iv) If the Attorney General is unable to attend a meeting of the Council, the Attorney General may send a designee to attend the meeting.
(d) The Chief Procurement Officer is Chairman of the Council.
(e) The Council shall meet at least quarterly each year.
(f) The Chief Procurement Officer is the principal staff of the Council and the Council shall have any additional staff authorized in accordance with the State budget.
(g) The Council shall:
(1) ensure that the State’s procurement system is utilizing the most advanced procurement methods and management techniques, including policies, procedures, and forms for all procurement activity and contract management;
(2) effect and enhance communication between State units on procurement matters, with an emphasis on disseminating information on current developments and advances in procurement methods and management;
(3) provide a forum for the discussion of specific procurement issues and problems that arise, including:
(i) procurement officer training;
(ii) risk analysis and insurance requirements;
(iii) management of eMaryland Marketplace and other Internet procurement resources;
(iv) use of eMaryland Marketplace and compliance with § 17–502 of this article;
(v) use of intergovernmental cooperative purchasing agreements;
(vi) strategies to increase the participation of small, minority–owned, and women–owned businesses in procurement contracts; and
(vii) any other issues or problems identified by the Council;
(4) advise the Board on problems in the procurement process and make recommendations for improvement of the process;
(5) review existing procurement regulations to:
(i) determine whether they fulfill the intent and purpose of the law, especially as it relates to fostering broad–based competition; and
(ii) make recommendations on the regulations, if revising and restructuring them will result in easier understanding and use; and
(6) advise the General Assembly on proposed legislation in order to enhance the efficiency and transparency of State procurement.
The Board may establish other advisory bodies.
(a) This section does not apply to capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12–202 of this title.
(b) Subject to the authority of the Board, jurisdiction over procurement is as follows:
(1) the State Treasurer may engage in or control procurement of banking and financial services, insurance, and insurance services, as provided in Division I of this article and Article VI, § 3 of the Maryland Constitution;
(2) the Department of General Services may:
(i) engage in or control procurement of:
1. leases of real property, including leases under Title 4, Subtitle 3 of this article;
2. supplies, including supplies under Title 4, Subtitle 3 of this article, but excluding insurance and motor vehicle leases;
3. construction, including construction under Title 4, Subtitle 4 of this article;
4. construction related services, including those under Title 4, Subtitle 4 of this article;
5. architectural or engineering services under Title 13, Subtitle 3 of this article;
6. services by a unit, subject to any limitation in this Division II;
7. leases of motor vehicles, as provided in Title 3, Subtitle 5 of this article;
8. construction and construction–related services for State correctional facilities;
9. supplies, materials, and equipment in support of construction and construction–related services for State correctional facilities in accordance with this Division II and Title 2 and Title 10, Subtitle 1 of the Correctional Services Article;
10. telecommunication equipment, systems, or services, as provided in Title 3.5, Subtitle 4 of this article;
11. information technology system modernization, as provided in Title 3.5, Subtitle 3 of this article; and
12. cybersecurity upgrades and modernization, as provided in Title 3.5, Subtitle 3 of this article;
(ii) while retaining oversight, delegate control of procurement activity to units with expertise in specified types of procurement;
(iii) develop performance metrics for procurement activity and implement strategic sourcing when appropriate;
(iv) compile comprehensive statistics on the procurement system by agency, amount, and type of procurement;
(v) effect and enhance communication on procurement matters, with an emphasis on disseminating information on current developments and advances in the management of the State procurement system;
(vi) assist units with questions regarding procurement policy;
(vii) oversee the implementation of procurement officer training;
(viii) oversee the implementation of appropriate risk analysis and insurance requirements for State procurement; and
(ix) coordinate with governmental entities and local entities to maximize use of intergovernmental purchasing agreements established in accordance with § 13–110 of this article, including working with the State Department of Education to procure local food for local school systems in accordance with § 7–136 of the Education Article;
(3) the Department of Transportation and the Maryland Transportation Authority, without the approval of any of the other primary procurement units, may engage in the procurement of:
(i) construction that is related to transportation, as provided in the Transportation Article;
(ii) construction related services that are related to transportation, as provided in the Transportation Article;
(iii) architectural or engineering services that are related to transportation, under Title 13, Subtitle 3 of this article;
(iv) supplies for transportation–related activities, including information technology supplies that are subject to Title 3.5 of this article, but excluding:
1. supplies funded by the proceeds from State general obligation bonds; and
2. insurance;
(v) services for transportation–related activities, including information technology services that are subject to Title 3.5 of this article, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection;
(vi) rolling stock and other property peculiar to the operation of a transit system, as provided in § 7–403 of the Transportation Article;
(vii) supplies for aeronautics related activities, including motor vehicles and information processing supplies, but excluding:
1. supplies funded by the proceeds from State general obligation bonds; and
2. insurance; and
(viii) services for aeronautics related activities, including information processing services, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection; and
(4) the Maryland Port Commission, without the approval of any of the other primary procurement units, may engage in the procurement of:
(i) supplies for port related activities, including motor vehicles and information processing supplies, but excluding:
1. supplies funded by the proceeds from State general obligation bonds; and
2. insurance;
(ii) services for port related activities, including information processing services, but excluding banking and financial services under the authority of the State Treasurer under item (1) of this subsection;
(iii) construction and construction related services for a port facility as defined in § 6–101(e) of the Transportation Article;
(iv) port related architectural and engineering services under Title 13, Subtitle 3 of this article; and
(v) leases of real property for port related activities unless the lease payments are from the General Fund of the State.
(a) This section does not apply to capital expenditures by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways, as provided in § 12-202 of this title.
(b) Subject to the approval of the Board and under the coordination of the Governor, each of the primary procurement units shall:
(1) adopt regulations to carry out this Division II;
(2) send to the Board a copy of each proposed regulation under item (1) of this subsection; and
(3) send to the Board a copy of each internal operating procedure that the primary procurement unit adopts.
If authorized by the principal executive or legislative authority of the local government in accordance with local ordinance, a local health department may use either the State procurement system or the procurement system of the county in which the health department is located.
(a) (1) In this section the following words have the meanings indicated.
(2) “Public employer” means:
(i) a unit;
(ii) a county;
(iii) a municipality;
(iv) a county board of education; or
(v) a special taxing district.
(3) (i) Except as provided in subparagraph (ii) of this paragraph, “services” has the meaning stated in § 11–101 of this article.
(ii) “Services” includes:
1. construction–related services;
2. architectural services;
3. engineering services; and
4. energy performance contract services.
(b) This section applies to a procurement contract with an estimated value of $2,000,000 or more.
(c) In response to a solicitation for a procurement contract issued by a public employer, a bidder shall disclose to the public employer the following:
(1) whether the bidder or any contractor that the bidder will subcontract with to perform the contract has plans, at the time the bid is submitted, to perform any services required under the contract outside the United States; and
(2) if services required under the contract are anticipated to be performed outside the United States:
(i) where the services will be performed; and
(ii) the reasons why it is necessary or advantageous to perform the services outside the United States.
(d) (1) Except as provided in paragraph (2) of this subsection, a public employer may not knowingly contract for the following services unless the services are to be provided in the United States:
(i) architectural services;
(ii) construction services;
(iii) engineering services; or
(iv) energy performance contract services.
(2) A public employer may contract for services listed in paragraph (1) of this subsection that are provided outside the United States, if:
(i) the services are not available in the United States;
(ii) the price of the services in the United States exceeds by an unreasonable amount the price of services provided outside the United States; or
(iii) the quality of the services in the United States is substantially less than the quality of comparably priced services provided outside the United States.
(3) The Board shall adopt regulations defining the following terms for the purposes of this subsection:
(i) “unreasonable amount”; and
(ii) “substantially less”.
This subtitle is broadly applicable to all procurements by the State.
(a) This section does not apply to capital expenditures:
(1) for public school construction under Title 5, Subtitle 3 of the Education Article; or
(2) by the Department of Transportation or the Maryland Transportation Authority, in connection with State roads, bridges, or highways.
(b) Before execution, a contract for a capital expenditure other than in connection with a State correctional facility, St. Mary’s College of Maryland, Morgan State University, or the University System of Maryland shall be:
(1) reviewed by the Secretary of General Services; and
(2) except as provided in § 12-203 of this subtitle and § 13-108 of this article, after that review, approved by the Board.
(c) Before execution, a contract for a capital expenditure in connection with a State correctional facility shall be:
(1) reviewed by the Secretary of Public Safety and Correctional Services; and
(2) except as provided in § 12-203 of this subtitle, after that review, approved by the Board.
(d) Before execution, a contract for a capital expenditure in connection with the University System of Maryland shall be:
(1) subject to the provisions of Title 4, Subtitle 4 of this article;
(2) approved by the Board of Regents of the University System of Maryland; and
(3) approved by the Board of Public Works.
(e) Before execution, a contract for a capital expenditure in connection with St. Mary’s College of Maryland shall be:
(1) subject to the provisions of Title 4, Subtitle 4 of this article;
(2) approved by the Board of Trustees of St. Mary’s College of Maryland; and
(3) approved by the Board of Public Works.
(f) Before execution, a contract for a capital expenditure in connection with Morgan State University shall be:
(1) subject to the provisions of Title 4, Subtitle 4 of this article;
(2) approved by the Board of Regents of Morgan State University; and
(3) approved by the Board of Public Works.
(g) The Board shall supervise the expenditure of any money that the General Assembly appropriates for:
(1) buildings;
(2) equipment;
(3) new construction; or
(4) any other capital expenditure.
(a) (1) The Board may adopt regulations that allow a unit of the State government to enter into a contract or make a change order related to a capital project without approval.
(2) These regulations shall:
(i) comply with this section; and
(ii) be subject to the approval of the Joint Committee on Administrative, Executive, and Legislative Review.
(b) (1) Regulations adopted under this section shall:
(i) establish an expenditure or use classification to determine which contracts or change orders may be made without Board approval;
(ii) set an amount for each classification and require a unit of the State government to obtain approval of the Board if the annual dollar value of a contract and its change orders exceeds that amount; and
(iii) require a unit of the State government to establish a reporting system approved by the Board to inform the Board about contracts or change orders entered into without Board approval.
(2) The amount established by the Board under paragraph (1)(ii) of this subsection shall be an amount that:
(i) frees the Board from direct review of relatively insignificant items; but
(ii) does not impair the strong public policy favoring direct review by the Board for items that have a substantial fiscal impact.
(a) This section does not apply to a lease entered into on or before May 31, 1967, unless the lease is renewed after that date.
(b) (1) Except as otherwise provided in this section and § 13–108 of this article, before a unit executes or renews a lease of land, buildings, or office space, the Board shall approve the lease or lease renewal.
(2) After review by the Secretary of General Services, the Board may designate the location of any unit.
(c) (1) Subject to paragraph (2) of this subsection, the Board may adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article, that allow a unit to execute or renew a lease without Board approval.
(2) These regulations are subject to the approval of:
(i) the General Assembly; or
(ii) while the General Assembly is not in session, the Legislative Policy Committee.
(3) Regulations adopted under this section shall:
(i) establish an expenditure or use classification to determine which leases or lease renewals may be entered into without Board approval;
(ii) set an amount for each classification and require a unit to obtain approval if a lease or lease renewal exceeds that amount; and
(iii) require a unit to establish a reporting system approved by the Board to inform the Board about leases or lease renewals entered into without Board approval.
(d) (1) Subject to paragraph (2) of this subsection, the Board may not approve a lease that:
(i) transfers ownership of the property to the lessee on or before the termination of the lease;
(ii) allows the lessee to purchase the property below fair market value or for a fixed amount;
(iii) is for a term that is 75% or more of the estimated useful economic life of the property; or
(iv) has payments with a present value that is 90% or more of the fair market value of the property.
(2) The Board may approve a lease described in paragraph (1) of this subsection if:
(i) the Capital Debt Affordability Committee has certified to the Governor and the General Assembly that the total amount of new State debt to be incurred by the lease may prudently be authorized; or
(ii) the General Assembly has approved the lease in the budget for the requesting unit.
(a) This section does not apply to a lease entered into on or before May 31, 1967, unless the lease is renewed after that date.
(b) An appropriation may not be obligated or spent for the lease of a building or part of a building to be occupied by the State or a unit of the State government for a State purpose at an annual rent that exceeds 15% of the fair market value of the leased premises on the date of the lease.
(a) (1) (i) A unit shall consult with the Department of General Services during the development phase of a project that will require an energy performance contract.
(ii) Before issuing a request for proposals for an energy performance contract, a unit shall consult with the Department of General Services and the Chief Procurement Officer.
(2) The Department of General Services shall review the proposed request to ensure that it meets with the State energy standards and preserves the State’s flexibility to investigate and use economically justifiable new technologies.
(3) A unit pursuing an energy contract must receive final approval from the Department of General Services before submitting the proposed contract to the Board of Public Works for approval.
(b) (1) Notwithstanding any other provision of law and subject to the approval and control of the Board of Public Works and the Chief Procurement Officer, a unit of State government is authorized to enter into energy performance contracts of up to 30 years’ duration.
(2) The Treasurer may enter into a capital lease to finance energy performance contracts as provided in Title 8, Subtitle 4 of this article.
(3) The payments and the total contract amount due under an energy performance contract or, in the case of a capital lease used to finance energy performance contracts, the capital lease payments may not exceed the actual energy savings realized as a result of the contract’s performance.
(4) (i) Before approval of an energy performance contract, the Board:
1. shall ensure that the projected annual energy savings attributable to the project will exceed the projected annual capital lease payments or payments to the contractor under the contract; and
2. based on the review of the Department of General Services, shall determine whether the proposed energy technology is appropriate for the time period provided in the contract.
(ii) The Board may:
1. authorize the use of incentive contracts, including contracts that guarantee energy savings performance; and
2. require prospective contractors to furnish appropriate guarantees to ensure that projected savings are realized.
(iii) Any guarantees required under subparagraph (ii) of this paragraph may include a requirement that the contractor furnish a bond or other assurance to the State in an appropriate amount to guarantee projected performance and that the bond or other assurance be structured so that a failure to meet guaranteed performance savings will forfeit a portion of the bond or other assurance to match the shortfall in energy savings.
(a) The Department of General Services shall be responsible for monitoring the status of active energy performance contracts and reporting that status to the Board annually.
(b) A unit that has entered into an energy performance contract shall submit to the Department of General Services for review any required annual measurement and verification reports.
The Board may modify or waive any authorization, source selection, solicitation, or contract requirement under this Division II for an energy performance contract or a class of energy performance contracts to the extent that:
(1) the purposes stated in § 11-201(a) of this article are fostered; and
(2) the circumstances of energy performance contracting require the modification or waiver.
(a) (1) Except as provided in paragraph (2) of this subsection, each unit with an exemption from any provision of Division II of this article shall have written policies and procedures for the exempted unit’s procurements.
(2) This section does not apply to:
(i) § 11–203(a)(1)(iii) of this article;
(ii) § 11–203(a)(2) of this article;
(iii) § 11–203(e) of this article; or
(iv) § 11–203(g) of this article.
(b) Written policies and procedures shall include:
(1) the types of procurement exempted from Division II of this article;
(2) the methods of procurement to be used for procurements provided under item (1) of this subsection;
(3) the advertising requirements for each type of procurement provided under item (1) of this subsection;
(4) procurement goals, including minority business enterprise participation, for each type of procurement provided under item (1) of this subsection; and
(5) the approval process for each type of procurement provided under item (1) of this subsection.
(c) (1) Except as provided in paragraph (2) of this subsection, at the beginning of each fiscal year, each unit shall submit written policies and procedures to the Board for review as required by subsections (a) and (b) of this section.
(2) Units that are governed by their own board, commission, council, or authority shall submit their policies and procedures as required by subsections (a) and (b) of this section to their board, commission, council, or authority for approval.
(a) In this subtitle the following words have the meanings indicated.
(b) “Direct involvement in the deportation of victims” means ownership or operation of the trains on which individuals were transported to extermination camps, death camps, or any facility used to transition individuals to extermination camps or death camps, during the period beginning on September 1, 1939, and ending on September 2, 1945.
(c) “Entity” means:
(1) a corporation, affiliate, or other similar organization or a successor in interest of the corporation, affiliate, or similar organization that controls, or is controlled or owned or partially owned by or under common control with, a corporation that had direct involvement in the deportation of victims; or
(2) a member of a partnership or a consortium that includes an entity that certifies that it had direct involvement in the deportation of victims.
(d) “MARC” means the Maryland Area Regional Commuter.
(e) “Process of assembling the records” means to:
(1) organize, digitize, and make records available to the public in an Internet accessible, electronic format that is searchable and analyzable; and
(2) prepare to submit the information described in § 12–507 of this subtitle to the State Archivist.
(f) (1) “Property” means any personal belongings owned or controlled by victims.
(2) “Property” includes:
(i) jewelry;
(ii) books;
(iii) artifacts;
(iv) precious metals; and
(v) currency.
(g) (1) “Records” means material relating to the deportation of victims.
(2) “Records” includes:
(i) documents;
(ii) correspondence;
(iii) memoranda;
(iv) receipts;
(v) invoices;
(vi) presentations;
(vii) audits; and
(viii) any other materials related to items (i) through (vii) of this paragraph.
(h) “Victim” means an individual who was on an entity’s train for the purpose of being transported to an extermination camp, death camp, or a facility used to transition individuals to extermination camps or death camps during the period beginning on September 1, 1939 and ending on September 2, 1945.
For the purposes of this subtitle:
(1) two or more entities shall be considered as the same entity if:
(i) one entity is a wholly owned subsidiary of the other; or
(ii) one entity owns or directly or indirectly controls more than 50% of the voting securities of the other entity, regardless of whether the equity interest in that other entity is owned by a foreign government; and
(2) if an equity interest in an entity is or was owned by a foreign government, that equity interest shall be attributed to the entity.
This subtitle applies to an entity that:
(1) had direct involvement in the deportation of victims; and
(2) submits a bid or offer to a unit of State or local government on a procurement contract to provide MARC service that is funded in whole or in part with public funds.
An entity may not be considered a responsible bidder or offeror for a procurement contract to provide MARC service unless the entity complies with the requirements of §§ 12–505 through 12–507 of this subtitle.
(a) In conjunction with the submission of a bid or offer on a procurement contract to a unit of State or local government to provide MARC service, an entity shall submit to the unit:
(1) a statement that the entity had direct involvement in the deportation of victims; and
(2) an estimated date for completing the process of assembling the records and providing information to the State Archivist in accordance with §§ 12–506 and 12–507 of this subtitle.
(b) The entity shall notify the unit of any change in the estimated date that was submitted to the unit in accordance with subsection (a) of this section.
(a) Before a unit of State or local government may award a procurement contract to provide MARC service to an entity subject to this subtitle, the entity shall comply with the provisions of this section for the process of assembling the records related to the deportation of victims.
(b) (1) An entity shall contract with an archivist and a historian to conduct an initial analysis of the records.
(2) The archivist and historian that conduct the initial analysis shall:
(i) be approved by the State Archivist;
(ii) be independent of the entity; and
(iii) conduct the analysis in accordance with the standards of the Society of American Archivists and the Council of State Archivists.
(3) The initial analysis shall include:
(i) an inspection of each location in which the entity maintains records that may be related to the deportation of victims; and
(ii) a report submitted to the State Archivist.
(4) The initial report submitted to the State Archivist shall include:
(i) a list of each location inspected and an assessment of whether the location maintains any records;
(ii) an outline and assessment of the quality of the records;
(iii) a timeline for the process to assemble the records; and
(iv) an estimated cost to assemble the records.
(c) (1) After the initial analysis is concluded and the State Archivist has approved the initial report in accordance with § 12–508(a)(2)(i) of this subtitle, the entity shall contract with an archivist and a historian to ensure that the process of assembling the records is completed in a manner consistent with:
(i) the initial report; and
(ii) the standards of the Society of American Archivists and the Council of State Archivists.
(2) The archivist and historian contracted with to carry out paragraph (1) of this subsection:
(i) shall be approved by the State Archivist; and
(ii) may be the archivist and historian that conducted the initial analysis or another archivist and historian approved by the State Archivist.
(d) After the process of assembling the records is complete, the entity shall provide the information required under § 12–507 of this subtitle to the State Archivist.
Before a unit of State or local government may award a procurement contract to provide MARC service to an entity subject to this subtitle, the entity shall provide the State Archivist with the following information as it relates to the deportation of victims:
(1) a written statement providing:
(i) whether the entity possesses, has custody of, or controls records relating to the the deportation of victims;
(ii) each location where the records are maintained; and
(iii) the contents and addresses of each archive or other facility where the entity maintains records;
(2) a detailed index of the records, including:
(i) the location of the records and a list of any money received for each deportation, delineated by individual convoys and persons; and
(ii) an accounting of each piece of property taken or confiscated from each victim;
(3) if the entity no longer has in its custody or control any or all of the property taken or confiscated from each victim, a written description of:
(i) the time and manner in which the entity disposed of or converted the property;
(ii) any property currently owned or operated by the entity that was exchanged for the expropriated property;
(iii) any expropriated property currently owned by the entity or any other property derived from the expropriated property; and
(iv) any other derivative or traceable property that remains in the entity’s possession, custody, or control as a result of its deportations activity; and
(4) a written statement concerning whether the entity has provided restitution or reparations to all identifiable victims of the deportations and, if so stated, a detailed description on how the restitution or reparations apply specifically to the deportation of each victim.
(a) The State Archivist shall:
(1) approve an archivist and historian to conduct the initial analysis required under § 12–506(b) of this subtitle;
(2) within 14 days after receiving the initial report submitted in accordance with § 12–506(b) of this subtitle:
(i) review the report and determine whether, in the professional opinion of the State Archivist, the report is consistent with the standards of the Society of American Archivists and the Council of State Archivists; and
(ii) approve an archivist and historian that will ensure that the process of assembling the records is completed in a manner consistent with:
1. the initial report; and
2. the standards of the Society of American Archivists and the Council of State Archivists;
(3) as needed, provide guidance for and oversight of the process of assembling the records;
(4) after receiving from an entity the information required under § 12–507 of this subtitle, determine whether, in the professional opinion of the State Archivist:
(i) the process of assembling the records is complete;
(ii) the process of assembling the records was completed in a manner consistent with:
1. the initial report submitted in accordance with § 12–506(b) of this subtitle; and
2. the standards of the Society of American Archivists and the Council of State Archivists; and
(iii) the information submitted under § 12–507 of this subtitle is as complete and accurate as possible; and
(5) provide written notice of the determination made under item (4) of this subsection to:
(i) the entity; and
(ii) if the State Archivist determines that the entity met the requirements set forth in item (4)(i), (ii), and (iii) of this subsection, to the unit of State or local government awarding the procurement contract to provide MARC service.
(b) The State Archivist may use a designee to carry out any provision of this section.
(a) At least 30 days before awarding a procurement contract on which an entity subject to this subtitle submitted a bid or offer, a unit of State or local government shall publish notice of its intent to award the procurement contract.
(b) A unit of State or local government may not award a procurement contract to provide MARC service to an entity that does not comply with §§ 12–505 through 12–507 of this subtitle.
(c) A unit of State or local government may award a procurement contract to provide MARC service to an entity only after the unit receives the notice from the State Archivist in accordance with § 12–508(a)(5) of this subtitle.
(d) Notwithstanding the requirements of this subtitle, a unit of State or local government may award a procurement contract to provide MARC service to a bidder or offeror that is not an entity subject to the requirements of this subtitle.
An entity awarded a procurement contract to provide MARC service in accordance with § 12–509(c) of this subtitle is considered to have satisfied the requirements of §§ 12–505 through 12–507 of this subtitle for all future procurement contracts to provide MARC service.
The entity or any other bidder or offeror for a procurement contract to provide MARC service may not submit a protest under § 15–217 of this article relating to the requirements of this subtitle.
(a) In this subtitle the following words have the meanings indicated.
(b) “Designated procurement unit” means:
(1) the Department of General Services;
(2) the Department of Transportation; or
(3) the Department of Information Technology, only with respect to an information technology master contract executed before July 1, 2022, until the earlier of:
(i) the expiration date of all information technology master contracts; or
(ii) June 30, 2027.
(c) “eMaryland Marketplace” or “eMaryland Marketplace Advantage” means the Internet–based procurement system managed by the Department of General Services.
(d) “Evaluated bid price” means the price of a bid after adjustment in accordance with objective measurable criteria.
(e) “Master contracting” means a streamlined procurement method that provides for the qualification of bidders and offerors for the procurement of services, supplies, or commodities.
(f) (1) “Objective measurable criteria” means standards that enable the State to compare the economy, effectiveness, or value of the subject of the bids.
(2) “Objective measurable criteria” includes standards of reliability, operational costs, maintainability, useful life, and residual value.
(g) “Person” includes, unless the context requires otherwise:
(1) the State;
(2) a county, a municipal corporation, or any other political subdivision; and
(3) any unit of the State government or a political subdivision.
(h) “Task order” means a procurement process in which only those vendors with master contracts may compete to provide the services, supplies, or commodities under the procurement.
(a) The following procurement methods are authorized at the procurement officer’s discretion, where applicable:
(1) competitive sealed bids under § 13–103 of this subtitle;
(2) competitive sealed proposals under § 13–104 or § 13–105 of this subtitle;
(3) noncompetitive negotiation under § 13–106 of this subtitle;
(4) sole source procurement under § 13–107 of this subtitle;
(5) emergency or expedited procurement under § 13–108 of this subtitle;
(6) small procurement under § 13–109 of this subtitle;
(7) an intergovernmental cooperative purchasing agreement under § 13–110 of this subtitle;
(8) auction bids under § 13–111 of this subtitle;
(9) architectural, engineering, and land surveying services qualification based selection under § 13–112 of this subtitle;
(10) master contracting under § 13–113 of this subtitle; or
(11) legislative fast–track procurements under § 13–117 of this subtitle.
(b) (1) In awarding a procurement contract for human, social, cultural, or educational service, the preferred method is by competitive sealed proposals under § 13–104 of this subtitle.
(2) In awarding a procurement contract for a lease of real property, the preferred method is by competitive sealed proposals under § 13–105 of this subtitle.
(3) Procurement under an intergovernmental cooperative purchasing agreement is appropriate in situations where the State is expected to achieve a better price as the result of economies of scale or to otherwise benefit by purchasing in cooperation with another governmental entity.
(a) A unit may not charge a fee to access eMaryland Marketplace.
(b) (1) Subject to approval by the Board of Public Works, the Chief Procurement Officer may establish fees for the use of eMaryland Marketplace by an entity that publishes a notice of a procurement, conducts a procurement, or publishes a notice of award.
(2) The Chief Procurement Officer may not charge a unit, as defined in § 11–101 of this article, a fee under this subsection.
(c) Subject to approval by the Board of Public Works, the Chief Procurement Officer, in consultation with the Department of Budget and Management, may establish fees for:
(1) training;
(2) strategic sourcing; and
(3) administrative costs.
(d) (1) There is an Operations Revenue Fund in the Department of General Services.
(2) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.
(3) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(4) The Fund consists of any fees imposed and collected under subsection (b)(1) or (c) of this section and § 13–226(c) of this title.
(5) The Fund shall be used by the Department of General Services to cover the actual documented direct and indirect operating expenses of the Office of State Procurement.
(a) (1) Whenever procurement is based on competitive sealed bids, a procurement officer shall seek bids by issuing an invitation for bids.
(2) Subject to subsection (b) of this section, an invitation for bids shall include:
(i) the specifications of the procurement contract, including the expected degree of minority business enterprise participation, as provided in § 14–303(b) of this article;
(ii) a summary of the factors used to determine the expected degree of minority business enterprise participation for the procurement contract, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries;
(iii) whether the procurement contract will be awarded based on the lowest bid price, the lowest evaluated bid price or, if the procurement is subject to § 11–202(3) of this article, the bid most favorable to the State;
(iv) if the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined; and
(v) if the head of the unit or the head of the unit’s designee has so designated, the small business preference.
(b) (1) Whenever a procurement officer determines that an initial preparation of specifications for price bids is impracticable, the invitation for bids may:
(i) include a request for unpriced technical offers or samples; and
(ii) direct bidders to submit price bids:
1. with the unpriced technical offers or samples; or
2. after the unit evaluates the technical offers or samples and finds that they are acceptable under the criteria set forth in the invitation for bids.
(2) A unit shall consider the prices submitted by bidders whose technical offers or samples have been found acceptable.
(3) Price bids may not be opened until after the unit has completed evaluation of the technical offers or samples.
(4) (i) A price bid may not be opened at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit.
(ii) A procurement officer shall return an unopened price bid submitted by a bidder whose technical offer or sample has been evaluated as unacceptable.
(c) (1) A unit shall give public notice of an invitation for bids before bid opening in accordance with this subsection.
(2) A unit shall give reasonable notice that shall be at least 10 days before bid opening.
(3) The unit shall publish notice in eMaryland Marketplace at least 20 days before bid opening if:
(i) the procurement officer reasonably expects bid prices to exceed the small procurement amount specified in § 13–109 of this subtitle or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article; and
(ii) at least part of the procurement contract is to be performed in this State or the District of Columbia.
(4) In addition to any notice required under this subsection, a unit may publish notice of an invitation for bids:
(i) on a bid board or eMaryland Marketplace; or
(ii) in a newspaper, periodical, or trade journal.
(d) (1) A procurement officer shall:
(i) open bids in public at the time and place designated in the invitation for bids; and
(ii) announce, record, and post:
1. the name of each bidder; and
2. the amount of each bid.
(2) Except as provided in paragraph (3) of this subsection, a bid is irrevocable, after bid opening, for the period specified in the invitation for bids.
(3) A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is:
(i) allowed under regulations adopted under this Division II; and
(ii) approved in writing by the Office of the Attorney General.
(e) (1) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that:
(i) is the lowest bid price;
(ii) if the invitation for bids so provides, is the lowest evaluated bid price; or
(iii) for procurement subject to § 11–202(3) of this article, is the bid most favorable to the State.
(2) If, after competitive sealed bids have been opened, a procurement officer determines that only 1 responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that 1 bidder under the procedure for sole source procurement.
(3) (i) After competitive sealed bids have been opened, a procurement officer may award a procurement contract on the basis of revised bids if:
1. all bids are rejected under § 13–206(b) of this title;
2. all bid prices exceed the funds available for the procurement; or
3. with the approval of the head of the unit or a designee, the procurement officer determines that all bids are unreasonable as to at least 1 requirement and the delay that would result from issuing a new invitation for bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State.
(ii) If there is more than 1 bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions.
(iii) As promptly as possible, the procurement officer shall:
1. issue an invitation for revised bids, which shall state whether the award will be made without competitive negotiations; and
2. require a prompt response to that invitation.
(iv) An invitation for revised bids is not subject to the notice requirements in subsection (c) of this section.
(v) After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate.
(vi) After revised bids have been opened and any approval required by law has been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that:
1. is the lowest bid price;
2. if the invitation for revised bids so provides, is the lowest evaluated bid price; or
3. for procurement subject to § 11–202(3) of this article, is the bid most favorable to the State.
(4) A responsive bid or proposal shall include the criteria specified in subsection (a) of this section.
(f) Not more than 30 days after the execution and approval of a procurement contract in excess of the small procurement amount specified in § 13–109 of this subtitle awarded under this section, or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article, a unit shall publish notice of the award in eMaryland Marketplace.
(a) Competitive sealed proposals is the preferred method for:
(1) human, social, cultural, or educational services; and
(2) security services with an expected value that is greater than $1,000,000.
(b) (1) Whenever procurement is based on competitive sealed proposals, a procurement officer shall seek proposals by issuing a request for proposals.
(2) A request for proposals shall include a statement of:
(i) the scope of the procurement contract, including the expected degree of minority business enterprise participation, as provided in § 14–303(b) of this article;
(ii) a summary of the factors used to determine the expected degree of minority business enterprise participation for the procurement contract, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries;
(iii) the factors, including price, that will be used in evaluating proposals; and
(iv) the relative importance of each factor.
(c) A unit shall publish a request for proposals in the same manner as required for an invitation for bids.
(d) (1) After receipt of proposals but before the procurement officer awards the procurement contract, a unit may conduct discussions with an offeror to:
(i) obtain the best price for the State; and
(ii) ensure full understanding of:
1. the requirements of the State, as set forth in the request for proposals; and
2. the proposal submitted by the offeror.
(2) If discussions are conducted, the unit:
(i) shall conduct the discussions in accordance with regulations adopted under this Division II;
(ii) shall provide an opportunity to participate to each responsible offeror who submits a proposal that, in the judgment of the procurement officer, is reasonably susceptible of being selected for award;
(iii) shall treat all of those responsible offerors fairly and equally;
(iv) may allow all of those responsible offerors to revise their initial proposals by submitting best and final offers, if discussions indicate that it would be in the best interests of the State to do so;
(v) may conduct more than 1 series of discussions and requests for best and final offers; and
(vi) may not disclose to an offeror any information derived from a proposal of or discussions with a competing offeror.
(3) (i) Except as provided in subparagraph (ii) of this paragraph, an oral presentation is required when:
1. the total value of the contract is expected to exceed $2,000,000 for architectural and engineering services;
2. the total value of the contract is expected to exceed $10,000,000 for construction and construction related services; or
3. for any other procurement, including information technology and professional services, the total value of the contract is expected to exceed $5,000,000.
(ii) If the procurement officer makes a written determination that oral presentations are unlikely to aid in the evaluation process, oral presentations are not required.
(e) (1) Except as provided in paragraph (2) of this subsection:
(i) a proposal is irrevocable for the period specified in the request for proposals; and
(ii) a best and final offer is irrevocable for the period specified in the request for best and final offers.
(2) A procurement officer may allow an offeror to correct or withdraw a proposal or best and final offer if correction or withdrawal is:
(i) allowed under regulations adopted under this Division II; and
(ii) approved in writing by the Office of the Attorney General.
(f) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible offeror who submits the proposal or best and final offer determined to be the most advantageous to the State considering the evaluation factors set forth in the request for proposals.
(g) A unit shall publish notice of a contract in excess of the small procurement amount specified in § 13–109 of this subtitle awarded under this section, or a lower amount set by the Board by regulation in accordance with Title 10, Subtitle 1 of the State Government Article in eMaryland Marketplace.
(a) A request for proposals for a lease of real property shall include:
(1) a work statement that shall be used as a basis for the evaluation of proposals;
(2) a statement of the factors, including price, that will be used in evaluating proposals; and
(3) a statement of the relative importance of each factor.
(b) Subject to the requirements of Title 4, Subtitle 3, Part III of this article, a unit shall publish a request for proposals in the same manner as required for an invitation for bids.
(c) After proposals have been opened, the procurement officer shall reject any proposal that is unacceptable.
(d) (1) If more than three proposals are submitted, the procurement officer may conduct negotiations with the offerors who, based on a preliminary evaluation in accordance with the evaluation factors, have submitted the three best proposals.
(2) Negotiations are not required if the request for proposals:
(i) notified all offerors that negotiations would not be conducted; and
(ii) requested best and final offers.
(e) (1) The procurement officer:
(i) may establish a maximum fair market rental rate for each premises offered;
(ii) during negotiations, may not disclose to an offeror any information derived from the proposal of a competing offeror, except price and information directly related to price; and
(iii) after negotiations, may reject a proposal that exceeds the maximum fair market rate.
(2) After receiving best and final offers:
(i) a procurement officer may conduct further negotiations with the successful offeror to obtain for the State the best price, conditions, and services; and
(ii) any modification of a successful offer must be in the best interests of the State.
(f) By direct solicitation and without republication of notice, the procurement officer may acquire other offers if:
(1) (i) negotiations and best and final offers fail to produce a lease for real property with terms comparable to market rental rates in the boundaries in which the unit must obtain the lease; and
(ii) the final offeror did not accept a lease with terms comparable to the market rental rates; or
(2) the public notice of requests for proposals fails to produce a response or offer of a lease for real property.
(g) If a procurement officer determines that renewal of an existing lease is in the best interests of the State, the procurement officer may negotiate the renewal without soliciting other offers.
(h) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible offeror who submits the proposal or best and final offer determined to be the most advantageous to the State considering:
(1) the price and evaluation factors set forth in the request for proposals; and
(2) the modifications to those factors under the negotiation process.
(a) A procurement officer may award a procurement contract on the basis of noncompetitive negotiation if:
(1) the procurement is for human, social, or educational services to be provided directly to individuals with disabilities, individuals who are aged, indigent, disadvantaged, unemployed, mentally or physically ill, or displaced or minors;
(2) the procurement is one of a class for which the Chief Procurement Officer or the Chief Procurement Officer’s designee has approved the use of noncompetitive negotiation; and
(3) with the approval of the head of the unit, the procurement officer determines that:
(i) at least 2 sources are available for the services; but
(ii) the absence of effective competition makes it unreasonable to expect bids or proposals from the available sources.
(b) (1) Whenever a procurement is based on noncompetitive negotiation, a unit shall publish a request for general expressions of interest.
(2) A request for general expressions of interest shall:
(i) state the general requirement for services;
(ii) request interested service providers to respond in writing with general expressions of interest; and
(iii) be published in the same manner as required for an invitation for bids.
(c) (1) To satisfy all or part of the requirements of the State as they occur, and without additional advertising, the procurement officer may conduct discussions with any responsible service provider who has submitted an expression of interest.
(2) As far as practicable in the course of administering a program, the unit shall treat fairly and equally with respect to discussions all responsible service providers who have submitted expressions of interest.
(d) After obtaining any approval required by law, the unit may award a procurement contract if the head of the unit determines, on the basis of continuing discussions or past program experience, that an award will serve the best interests of the State.
(e) A unit shall publish in eMaryland Marketplace notice of a procurement contract awarded under this section.
(a) (1) Whenever a procurement officer determines that there is only 1 available source for the subject of a procurement contract, the procurement officer may award the procurement contract without competition to that source.
(2) Before awarding a procurement contract to a sole source, the procurement officer shall obtain:
(i) the approval of the head of the unit; and
(ii) any other approval required by law.
(b) (1) Subject to paragraphs (2) and (3) of this subsection, with the prior written approval of the Attorney General, a unit may enter into a sole source contract to obtain the services of a contractor in connection with:
(i) threatened or pending litigation;
(ii) appraisal of real property for acquisition by the State; or
(iii) collective bargaining.
(2) This subsection applies only to a procurement in which:
(i) a unit obtains the services of a contractor to represent the State; and
(ii) the nature of the services to be performed requires confidentiality.
(3) This subsection does not apply if the unit reasonably can anticipate a continuing need for a contractor described in paragraph (1)(ii) or (iii) of this subsection.
(c) Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish in eMaryland Marketplace notice of the award.
IN EFFECT
(a) In this section, “emergency” means an occurrence or condition that creates an immediate and serious need for services, materials, or supplies that:
(1) cannot be met through normal procurement methods; and
(2) are required to avoid or mitigate serious damage to public health, safety, or welfare.
(b) (1) Except as provided in § 11–205 (“Collusion”), § 10–204 (“Approval for designated contracts”), § 13–219 (“Required clauses – Nondiscrimination clause”), Title 16 (“Suspension and Debarment of Contractors”), or Title 17 (“Special Provisions – State and Local Subdivisions”) of this article, with the approval of the head of a unit, its procurement officer may make an emergency procurement by any method that the procurement officer considers most appropriate to avoid or mitigate serious damage to public health, safety, or welfare.
(2) (i) Except when delaying a procurement by up to 48 hours would likely result in imminent harm, after obtaining the approval of the head of the unit and before making an emergency procurement, the procurement officer shall obtain approval of the use of emergency procurement procedures from the Chief Procurement Officer, or the Chief Procurement Officer’s designee.
(ii) Within 48 hours after receiving a request to use emergency procurement procedures, the Chief Procurement Officer or designee shall approve or disapprove the request.
(iii) If the Chief Procurement Officer or designee does not approve or disapprove the request to use emergency procurement procedures within 48 hours after receiving the request, the request shall be considered to be approved.
(3) The procurement officer shall:
(i) obtain as much competition as possible under the circumstances, including by making reasonable efforts to solicit at least three oral quotes;
(ii) limit the emergency procurement to the procurement of only those items, both in type and quantity, necessary to avoid or to mitigate serious damage to public health, safety, or welfare;
(iii) before awarding an emergency procurement contract to a prospective contractor, evaluate the contractor’s ability to perform the requirements of the contract based on:
1. the length of time the contractor has been in business;
2. the contractor’s level of experience providing the types and amounts of supplies, services, maintenance, commodities, construction, or construction–related services required under the contract; and
3. the contractor’s history of successful procurement contracts with the State and other jurisdictions;
(iv) execute a written contract with the successful contractor which includes the terms of the emergency procurement; and
(v) not more than 15 days after awarding the procurement contract, submit to the Board a written report that gives the justification for use of the emergency procurement procedure.
(4) (i) This paragraph applies only to an emergency procurement contract with a value of $1,000,000 or more.
(ii) 1. In advance of or concurrent with the execution of an emergency procurement contract that is subject to this paragraph, a unit may not pay an amount that exceeds $2,000,000, plus 30% of the contract value in excess of $2,000,000.
2. Unless authorized by the Board, the unit may not make any additional payment under the contract until at least 30 days after the execution of the contract.
(iii) Not later than 7 days after awarding an emergency procurement contract that is subject to this paragraph, a unit shall submit a copy of the contract to the Board.
(iv) The Board may:
1. review an emergency procurement contract submitted under this paragraph at a regularly scheduled meeting of the Board or at an emergency meeting called for that purpose; and
2. direct the unit or the appropriate control agency to take any action, including canceling or rescinding the contract, that the Board deems appropriate.
(5) If supplies or commodities procured under an emergency procurement contract are not delivered and used within 1 month after the date the contract is awarded, the unit shall:
(i) prepare a report describing the delivery and use status of supplies and commodities procured under the contract at least once per month until all supplies and commodities have been delivered and used; and
(ii) submit the reports prepared under this paragraph to the Board, the appropriate control agency, and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Audit and Evaluation Committee.
(6) A procurement contract awarded under this subsection shall include provisions addressing the contractor’s ability to perform the requirements of the contract within the emergency time frame.
(7) Notwithstanding subsection (e) of this section, on the day of the execution and approval of a procurement contract awarded under this subsection, or as soon as practicable thereafter, a unit shall publish in eMaryland Marketplace notice of the award.
(8) (i) This paragraph applies only to the award of a contract or a contract modification made under this subsection that, with prior modifications, exceeds the small procurement amount specified in § 13–109 of this subtitle.
(ii) Within 15 days after awarding a contract or a contract modification, a unit shall submit to the Board and the appropriate control agency a report that includes:
1. the basis and justification for the emergency procurement including the date the emergency first became known;
2. a listing of supplies, services, maintenance, commodities, construction, or construction–related services procured;
3. the names of all persons solicited and a justification if the solicitation was limited to one person;
4. the prices and times of performance proposed by the persons responding to the solicitation;
5. the name of and basis for the selection of a particular contractor;
6. the amount and type of the contract or contract modification;
7. a listing of any prior or related emergency contracts, including all contract modifications, executed for the purposes of avoiding or mitigating the particular emergency, including the aggregate costs; and
8. the identification number, if any, of the contract file.
(iii) The Board may adopt regulations to carry out this paragraph.
(c) (1) Consistent with the requirements of subsection (b)(1) of this section, the State Highway Administration may enter into procurement contracts related to the pretreatment and removal of snow and ice as required or authorized under Title 8 of the Transportation Article.
(2) (i) Beginning on June 30, 2016, and no later than June 30 of each succeeding year, the State Highway Administration shall submit to the Board a written report on the operation and effectiveness of the procurement contracts entered into under this subsection during the previous year.
(ii) The report shall include:
1. the number of contracts awarded;
2. the total dollar value of the contracts awarded; and
3. the amount of contracting dollars expended with minority business enterprises, certified small businesses, and certified veteran–owned businesses, as defined under Title 14 of this article.
(3) The Board, in consultation with the State Highway Administration, may adopt regulations to carry out the requirements of this subsection.
(d) (1) Except as provided in § 11–205 (“Collusion”), § 10–204 (“Approval for designated contracts”), § 13–219 (“Required clauses – Nondiscrimination clause”), Title 16 (“Suspension and Debarment of Contractors”), or Title 17 (“Special Provisions – State and Local Subdivisions”) of this article, with the approval of the head of the unit and the Board, a unit’s procurement officer may make a procurement on an expedited basis if the head of the unit and the Board find that:
(i) urgent circumstances require prompt action;
(ii) an expedited procurement best serves the public interest; and
(iii) the need for the expedited procurement outweighs the benefits of making the procurement on the basis of competitive sealed bids or competitive sealed proposals.
(2) The procurement officer shall attempt to obtain as much competition as reasonably possible.
(e) Except as provided in subsection (b)(7) of this section, not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish in eMaryland Marketplace notice of the award.
(f) For real property leases procured under this section, the term of the lease shall be for the minimum period of time practicable.
(g) The Board may adopt regulations to carry out this section.
(h) The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation and the Attorney General, shall establish guidelines for each unit to consider when determining the appropriate minority business enterprise participation percentage goal and outreach for an emergency procurement contract.
(a) In this section, “small procurement” means a procurement for which:
(1) a unit spends $100,000 or less;
(2) a contractor provides services subject to § 11–202(3) of this article for expected annual revenues of $100,000 or less;
(3) the Department of General Services or the Department of Transportation is seeking to award a procurement contract for a construction with a value that is $200,000 or less;
(4) the Department of Natural Resources is seeking to award a procurement contract for capital projects or maintenance with a value that is $200,000 or less; or
(5) for purposes of administering Title 29, Subtitle 1 of the State Personnel and Pensions Article, the State Retirement Agency spends $100,000 or less during a fiscal year for:
(i) expenses related to independent medical evaluations by a physician; and
(ii) any expenses related to testimony by the physician at administrative hearings on behalf of the Agency.
(b) A unit may make small procurements in accordance with the regulations of primary procurement units.
(c) A primary procurement unit may not create a small procurement by artificial division of a procurement.
(d) Any regulation of a primary procurement unit to govern small procurements:
(1) shall provide for a simplified administrative procedure;
(2) shall be consistent with the basic intent of this Division II; and
(3) may not be disadvantageous economically to the State.
(e) At least every 3 years, the Board shall:
(1) review the prevailing costs of labor and materials; and
(2) if warranted by changes in cost, recommend to the General Assembly appropriate adjustments in the ceiling for a small procurement.
(f) If a primary procurement unit determines that a unit does not adhere to the established small procurement regulations, the primary procurement unit may limit or revoke a unit’s ability to conduct small procurements.
(a) (1) In this section the following words have the meanings indicated.
(2) “Cooperative entity” means one or more State or local entities that enter into an agreement for the cooperative or joint administration of programs.
(3) “Governmental entity” means:
(i) the federal government or an agency or other instrumentality of the federal government;
(ii) another state or an agency or other instrumentality of another state;
(iii) a bistate or multistate agency;
(iv) a county, municipal corporation, or other political subdivision of the State or of another state, or an agency or other instrumentality of the political subdivision;
(v) a bicounty or multicounty agency;
(vi) a primary procurement unit; or
(vii) an affiliation, alliance, consortium, or group composed solely of governmental entities that is established for purposes of promoting intergovernmental cooperative purchasing.
(4) “Intergovernmental cooperative purchasing agreement” means a contract:
(i) 1. entered into by at least one governmental entity and a person selected in a manner that is consistent with the purposes set forth under § 11–201 of this article;
2. that is available for use by the governmental entity entering the contract and at least one additional governmental entity which may, but need not be, an original party to the contract; and
3. that is intended to promote efficiency and savings that can result from intergovernmental cooperative purchasing; or
(ii) between a primary procurement unit and a person who, at the time the intergovernmental cooperative purchasing agreement is awarded, has a contract with the federal government or an agency or other instrumentality of the federal government, and who agrees to provide the unit with identical prices, terms, and conditions as stipulated in the federal contract.
(5) (i) “Local entity” means a county, municipal corporation, bicounty or multicounty agency, public authority, special taxing district, or other political subdivision or unit of a political subdivision of this State.
(ii) “Local entity” includes boards of education and library boards that receive funding from the State.
(6) “Nonprofit entity” means�a corporation incorporated in the State, or otherwise qualified to do business in the State that has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code.
(7) “State entity” means a department, board, commission, agency, or a subunit in the Executive branch of State government.
(b) (1) Subject to § 12–107 of this article, a primary procurement unit procurement officer shall make a determination, in accordance with paragraph (2) or (3) of this subsection, before the primary procurement unit may:
(i) initially sponsor or participate in an intergovernmental cooperative purchasing agreement;
(ii) renew an intergovernmental cooperative purchasing agreement; or
(iii) modify an intergovernmental cooperative purchasing agreement.
(2) A determination under paragraph (1)(i) of this subsection shall be in writing and include:
(i) sufficient evidence that the intergovernmental cooperative purchasing agreement:
1. will provide cost benefits to the State; or
2. will promote administrative efficiencies or promote intergovernmental cooperation; and
(ii) a statement that the intergovernmental cooperative purchasing agreement:
1. is in the best interest of the State; and
2. is not intended to evade the purposes of this Division II.
(3) A determination under paragraph (1)(ii) or (iii) of this subsection shall be in writing and include:
(i) sufficient evidence that the intergovernmental cooperative purchasing agreement:
1. will provide cost benefits to the State; and
2. will promote administrative efficiencies or promote intergovernmental cooperation; and
(ii) a statement that the intergovernmental cooperative purchasing agreement:
1. is in the best interest of the State; and
2. is not intended to evade the purposes of this Division II.
(4) A primary procurement unit shall post each determination required under this subsection on the primary procurement unit’s website.
(5) If a primary procurement unit sponsors an intergovernmental cooperative purchasing agreement:
(i) the contract shall be awarded in the same manner as the contract would be awarded under this Division II if the unit was the sole participant under the contract, including compliance with all notice requirements; and
(ii) all procedures under this Division II, including procedures governing contract claims and protests, shall apply.
(6) If a primary procurement unit participates in an intergovernmental cooperative purchasing agreement, any protest or contract claim involving the agreement shall be handled in accordance with the terms of the agreement.
(7) If a primary procurement unit sponsors or participates in an intergovernmental cooperative purchasing agreement, the intergovernmental cooperative purchasing agreement shall be:
(i) approved by:
1. the head of the primary procurement unit or the head of the primary procurement unit’s designee; or
2. the Chief Procurement Officer or the Chief Procurement Officer’s designee; and
(ii) subject to any other approval required by law.
(c) (1) Except as provided in paragraph (2) of this subsection, each procurement contract for supplies or services entered into by a State or local entity shall include a provision that facilitates other State and local entities and nonprofit entities to participate in the contract.
(2) (i) This subsection does not apply to:
1. a procurement for a capital facility, improvement, or other unique purchase; or
2. a procurement with a projected value of less than $100,000.
(ii) This subsection does not apply if the State or local entity determines that including the provision would:
1. undermine the desired timing or effect of the procurement;
2. interfere with the State or local entity’s ability to meet:
A. the minority business enterprise goals provided under § 14–302 of this article or any other minority business enterprise program sponsored by the local entity; or
B. the Small Business Reserve Program requirements under § 14–502 of this article or any other small business procurement program sponsored by the local entity; or
3. not be in the best interest of the entity.
(d) (1) A State or local entity may enter into an agreement for the cooperative or joint administration of programs with one or more other State or local entities.
(2) A cooperative entity established under this section may administer the programs and exercise the powers and duties specifically delegated to the cooperative entity by the agreement that established the cooperative entity.
(3) An agreement described under this subsection does not relieve a State or local entity or other participant of the agreement from any obligation or responsibility imposed on the entity by law.
(e) Notwithstanding any other law, a local entity may participate in an existing State or local contract drafted in accordance with this section, if the governing body of the entity determines that participation would:
(1) provide a cost savings in purchase price or administrative burden; or
(2) further other policy goals including operational and energy–efficiency goals related to the purchase, operation, or maintenance of the supply or service.
(a) This section applies to the procurement of supplies and services by a primary procurement unit.
(b) (1) Whenever the head of a primary procurement unit or designee determines that it is in the best interest of the State for a procurement contract to be based on auction bids, a procurement officer shall seek bids by issuing an invitation for auction bids.
(2) Subject to subsection (c) of this section, an invitation for auction bids shall include:
(i) the specifications of the procurement contract;
(ii) whether the procurement contract will be awarded based on the lowest bid price or the lowest evaluated bid price;
(iii) if the procurement contract will be based on evaluated bid price, the objective measurable criteria by which the lowest evaluated bid price will be determined;
(iv) the small business preference, if designated under § 13–103 of this subtitle; and
(v) the date and time when bidding will commence and the date and time when bidding will end or the event upon which bidding will end.
(c) (1) In the discretion of the procurement officer, the invitation for auction bids may:
(i) include a request for unpriced technical offers or samples;
(ii) direct bidders to submit price bids after the unit evaluates the technical offers or samples and finds they are acceptable under the criteria set forth in the invitation for auction bids; and
(iii) inform all bidders who submitted technical offers or samples of the identity of each bidder who submitted an acceptable technical offer or sample.
(2) Price bids may not be received until after the unit has completed evaluation of the technical offers or samples.
(3) A price bid may not be received at any time if the bid is submitted by a bidder whose technical offer or sample has been evaluated as unacceptable to the unit.
(d) A unit shall give public notice of an invitation for auction bids in the same manner as required for an invitation for bids.
(e) (1) (i) Multiple price bids are permitted in response to an invitation for auction bids.
(ii) When a bidder submits multiple bids, each bid shall be judged independently and shall not revoke previous bids of that bidder.
(2) A procurement officer shall:
(i) receive bids in public at the time and place designated in the invitation for auction bids; and
(ii) record the amount of each bid at the time it is received.
(3) (i) The amount of a price bid shall be available for public inspection from the time it is received.
(ii) The identity of the bidder submitting a price bid shall not be available for public inspection until bidding has ended.
(4) Except as provided in paragraph (5) of this subsection, a bid is irrevocable, after receipt, for the period specified in the invitation for auction bids.
(5) A procurement officer may allow a bidder to correct or withdraw a bid if correction or withdrawal is:
(i) allowed under regulations adopted under this Division II applicable to an invitation for bids; and
(ii) approved in writing by the Office of the Attorney General.
(f) (1) After obtaining any approval required by law, the procurement officer shall award the procurement contract to the responsible bidder who submits the responsive bid that:
(i) is the lowest bid price; or
(ii) if the invitation for auction bids so provides, is the lowest evaluated bid price.
(2) If, after bids have been received, a procurement officer determines that only one responsible bidder has submitted a responsive bid, the unit may negotiate the procurement contract with that one bidder under the procedure for sole source procurement.
(3) (i) After bids have been received, a procurement officer may award a procurement contract on the basis of revised bids if:
1. all bids are rejected under § 13–206(b) of this title;
2. all bid prices exceed the funds available for the procurement; or
3. with the approval of the head of a primary procurement unit or a designee, the procurement officer determines that all bids are unreasonable as to at least one requirement and the delay that would result from issuing a new invitation for auction bids with revised specifications or quantities would be fiscally disadvantageous or otherwise not in the best interests of the State.
(ii) If there is more than one bidder, discussions about revised specifications or quantities shall be conducted with all responsible bidders who submitted responsive bids. The bidders shall be treated fairly and equally with respect to any discussions.
(iii) If one of the conditions set forth under subparagraph (i) of this paragraph exists, as promptly as possible, the procurement officer shall:
1. issue an invitation for revised auction bids, which shall state whether the award will be made without competitive negotiations; and
2. require a prompt response to that invitation.
(iv) An invitation for revised auction bids is not subject to the notice requirements in subsection (d) of this section.
(v) After revised bids have been submitted, negotiations with bidders may not be conducted unless the procurement officer determines that there is a compelling reason to negotiate.
(vi) After revised bids have been received and any approval required by law has been obtained, the procurement officer shall award the procurement contract to the responsible bidder who submits a responsive bid that:
1. is the lowest bid price; or
2. if the invitation for revised bids so provides, is the lowest evaluated bid price.
(g) Not more than 30 days after the execution and approval of a procurement contract awarded under this section, a unit shall publish notice of the award in eMaryland Marketplace.
(a) In this section, “Department” means the Department of General Services or the Department of Transportation.
(b) Qualification based selection shall only be used by the Department if the procurement:
(1) is for architectural services, engineering services, or land surveying services;
(2) is made on a competitive basis;
(3) includes an evaluation of the technical proposals and qualifications of at least two persons; and
(4) the services cannot be provided feasibly and economically by existing in–house resources.
(c) (1) Whenever a procurement is based on qualification based selection, a procurement officer shall seek proposals by issuing a request for architectural services, engineering services, or land surveying services.
(2) A request for architectural services, engineering services, or land surveying services shall include a statement:
(i) describing generally the architectural services, engineering services, or land surveying services that are the subject of the procurement; and
(ii) indicating how an interested person may receive information about the procurement, including a comprehensive description of the nature and scope of the architectural services, engineering services, or land surveying services.
(d) The Department shall publish reasonable and timely notice of a request for architectural services, engineering services, or land surveying services in eMaryland Marketplace.
(e) The Department shall:
(1) evaluate the technical proposals and qualifications of the persons submitting the proposals; and
(2) determine an order of priority based on those evaluations.
(f) (1) From the results of the selection process under this section, the Department shall:
(i) begin negotiations with the most qualified persons; and
(ii) try to negotiate a procurement contract with that person at a rate of compensation that is fair, competitive, and reasonable.
(2) In determining the rate of compensation under this subsection, the Department shall:
(i) consider the scope and complexity of the architectural services, engineering services, or land surveying services required; and
(ii) conduct a detailed analysis of the cost of those services.
(3) (i) In determining the rate of compensation under this subsection, the Department of Transportation also shall comply with limits on costs reimbursement, including overhead limits established by the Department.
(ii) In setting the limits under subparagraph (i) of this paragraph, the Department of Transportation shall consider the goal of the selection process as well as the reasonable cost of architectural services, engineering services, or land surveying services.
(g) If the Department is unable to negotiate a satisfactory procurement contract at a rate of compensation that is fair, competitive, and reasonable, it shall:
(1) terminate negotiations with the most qualified person; and
(2) negotiate in the same manner with the next most qualified person and, if necessary, continue negotiations in accordance with the procedures under this section until the Department reaches an agreement.
(h) After obtaining any approval required by law, the procurement officer shall award a procurement contract to the most qualified person with whom an agreement was reached on compensation that is fair, competitive, and reasonable.
(i) Not more than 30 days after the execution and approval of a procurement contract awarded under this section, the Department shall publish in eMaryland Marketplace notice of the award.
(j) All documents relating to the award of a procurement contract are to be made available to the public, including:
(1) technical resumes;
(2) technical proposals;
(3) the procurement contract;
(4) scope of services;
(5) programs/projects;
(6) staff reports;
(7) internal worksheets; and
(8) all other information relating to the negotiation and award of a procurement contract under this section.
(k) (1) The Department shall waive the requirements in subsections (b), (e), (f), (g), and (j) of this section if:
(i) the Department determines that:
1. the architectural services, engineering services, or land surveying services cannot be defined so completely as to carry out those requirements; or
2. the specifications require architectural services, engineering services, or land surveying services that are available only from a bona fide single source or a proprietary product or process;
(ii) the Governor declares an emergency;
(iii) after a natural disaster, public health and safety are endangered; or
(iv) on the recommendation of the Secretary of the Department and a finding by the Governor that extraordinary circumstances exist, the Board of Public Works determines that:
1. for a particular project, urgent circumstances require the selection of a contractor on an expedited basis;
2. expedited selection best serves the public interest; and
3. the need for an expedited selection outweighs the benefits of carrying out those requirements.
(2) A waiver and the reasons for it shall be documented and:
(i) immediately reported to eMaryland Marketplace for publication; and
(ii) reported to the Legislative Policy Committee within 30 days after the waiver occurs.
(l) (1) The Department may not award a procurement contract to a person under this subtitle unless:
(i) the person submits:
1. an affidavit of noncollusion; and
2. a price quotation; and
(ii) for a procurement contract costing more than $200,000, the person has executed a truth–in–negotiation certificate.
(2) The truth–in–negotiation certificate shall state that:
(i) wage rates and other factual unit costs supporting wages are accurate, complete, and current as of the time of contracting; and
(ii) the original price of the procurement contract and any additions to the procurement contract will be adjusted to exclude any significant price increase if the Department determines that the price increase is due to wage rates or other factual unit costs that were inaccurate, incomplete, or not current as of the time of contracting.
(3) An adjustment to the procurement contract shall be made within 1 year after the procurement contract is completed.
(m) The Department may not award a procurement contract for architectural services, engineering services, or land surveying services that:
(1) is a cost–plus–a–percentage–of–cost contract; or
(2) includes fee schedules that are based on a percentage of construction costs.
(n) (1) The State may postaudit the rates of contractors performing architectural services, engineering services, or land surveying services.
(2) All rates used in a cost–plus–fixed–fee procurement contract shall be verified by postaudit if:
(i) the compensation is more than $50,000 and the procurement contract involves a unit other than a transportation unit; and
(ii) the compensation is more than $25,000 and the procurement contract involves a transportation unit.
(3) On request by a procuring authority of any political subdivision of the State that is considering an architect, an engineer, or a land surveyor for a specific project, any State audit of the architect, engineer, or land surveyor shall be made available.
(o) (1) The Department may terminate without liability a procurement contract for architectural services, engineering services, or land surveying services if:
(i) there has been a conviction of a crime arising out of or in connection with the procurement contract or any payment to be made under the procurement contract; or
(ii) there has been a breach or violation of any provision of this subtitle.
(2) Subject to subsection (a) of this section, the Department may deduct from the procurement contract price or otherwise recover the full amount of any fee, commission, gift, percentage, or other consideration paid in violation of this subtitle.
(3) If a procurement contract is terminated under this section, the contractor:
(i) is entitled only to the earned value of the work completed as of the date of termination, plus termination costs;
(ii) is liable for any costs incurred for completion of the work over the maximum amount payable to the contractor under the procurement contract; and
(iii) shall refund all profits or fixed fees realized under the procurement contract.
(4) (i) The provisions of this section are in addition to any other right or remedy allowed by law.
(ii) By carrying out this section, the Department does not waive any other right or remedy provided by law.
(p) A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 10 years or both.
(q) (1) The Department of General Services and the Department of Transportation shall adopt regulations that provide substantially similar procedures to carry out this section.
(2) The procedures of the Department shall ensure that a recommendation to the Board of Public Works for the award of a procurement contract for architectural services, engineering services, or land surveying services costing over $200,000 is made on a competitive basis and includes an evaluation of the technical proposals and qualifications of at least two persons.
(a) The designated procurement units may adopt master contracting, a streamlined procurement method, to provide for the qualification of an offeror in one or more categories of services, supplies, or commodities.
(b) If a designated procurement unit adopts master contracting, the master contracting method shall include:
(1) the categories of services, supplies, or commodities in which an offeror may submit a proposal for qualification;
(2) a procedure for the consideration and approval of proposals for qualification of multiple offerors in each category of services, supplies, or commodities;
(3) the execution of a standard contract for a specified period of time between the State and an offeror approved as a master contractor; and
(4) a performance evaluation procedure to be used by a unit of the Executive Branch to evaluate the performance of a qualified offeror that has completed work on a task order.
(c) (1) A unit of the Executive Branch that requires services, supplies, or commodities covered under a master contract may issue a solicitation for a task order to a master contractor consistent with the regulations adopted under § 13–114 of this subtitle.
(2) Except as provided in subsection (f) of this section, the solicitation for a task order shall include a statement of the:
(i) factors that will be used in evaluating a master contractor’s response; and
(ii) relative importance of each factor.
(d) (1) This subsection does not apply to a task order designated as a small business reserve in accordance with § 14–502 of this article.
(2) Except as provided in subsection (f) of this section, if the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will exceed $500,000, the unit shall issue a solicitation for a task order to all master contractors in the appropriate category established by the designated procurement unit.
(3) If the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will exceed $100,000 but will not exceed $500,000, the unit shall issue a solicitation for a task order to a minimum of six qualified master contractors on a rotating basis for master contracts designated by the Chief Procurement Officer or all master contractors, whichever is less, in the appropriate category established by the designated procurement unit.
(4) If the unit of the Executive Branch expects that the total cost of the services, supplies, or commodities will be $100,000 or less, the unit shall issue a solicitation for a task order to a minimum of three qualified master contractors on a rotating basis for master contracts designated by the Chief Procurement Officer or all master contractors, whichever is fewer, in the appropriate category established by the designated procurement unit.
(e) (1) Except as provided in subsection (f) of this section, after a unit of the Executive Branch receives responses from master contractors to a solicitation for a task order, the unit shall evaluate the responses and may select a master contractor based on the response that is determined to be the most advantageous to the State considering the evaluation factors set forth in the task order.
(2) Except as provided in paragraph (3) of this subsection, oral presentations are required prior to selecting a master contractor when:
(i) the total value of the task order is expected to exceed $2,000,000 for architectural and engineering services;
(ii) the total value of the task order is expected to exceed $10,000,000 for construction and construction related services; or
(iii) for all other procurement, including information technology and professional services, when the total value of the task order is expected to exceed $5,000,000.
(3) If the procurement officer makes a written determination that oral presentations are unlikely to aid in the evaluation process, oral presentations will not be required.
(f) The requirements of subsections (c)(2), (d), and (e)(1) of this section do not apply to a master contract for construction if the master contract:
(1) is awarded through a competitive process in accordance with this subtitle; and
(2) states:
(i) how task orders will be awarded; and
(ii) the maximum number of qualified contractors that will be awarded a master contract for construction.
(a) The Board shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article to establish a uniform process for the solicitation of master contracts and task orders.
(b) Each designated procurement unit shall ensure compliance with the regulations set forth in subsection (a) of this section.
(a) The Department of Information Technology shall require basic security requirements to be included in a contract:
(1) in which a third–party contractor will have access to and use State telecommunication equipment, systems, or services; or
(2) for systems or devices that will connect to State telecommunication equipment, systems, or services.
(b) The security requirements developed under subsection (a) of this section shall be consistent with a widely recognized security standard, including National Institute of Standards and Technology SP 800–171, ISO27001, or Cybersecurity Maturity Model Certification.
(a) In this section, “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.
(b) (1) A competitive proof of concept procurement is 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:
(i) testing software–as–a–service or off–the–shelf software;
(ii) testing new, innovative products or services; or
(iii) testing a product or service conceptualized or conceived of by a unit of State government.
(2) (i) After obtaining the approval of the head of the unit and before conducting a competitive proof of concept procurement, the unit shall obtain approval from the Secretary of Information Technology, or the Secretary’s designee.
(ii) The Secretary of Information Technology may grant approval for a competitive proof of concept procurement if the 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.
(c) (1) A competitive proof of concept procurement may be conducted through the issuance of a solicitation by any method of procurement authorized under this Division II.
(2) A competitive proof of concept procurement solicitation shall include a statement of:
(i) the scope of work or project description, including the intended use, quantity, estimated time frame for the proof of concept, and anticipated number of proof of concept awards that will be made; and
(ii) the factors, including price, that will be used in evaluating proposals and the relative importance of each.
(3) A 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 under $15,000 not otherwise required by law to be posted, be posted on eMaryland Marketplace Advantage, in accordance with the policies and procedures under subsection (g) of this section.
(d) 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:
(i) the requirements of the unit, as set forth in the request for proposals; and
(ii) 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.
(e) A request for product samples for testing or demonstration made under subsection (d)(2) of this section shall be issued to all offerors deemed reasonable at the time of the request.
(f) A unit may award one or more of the proposals a contract for the proof of concept.
(g) A vendor 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.
(h) The Department of General Services, in consultation with the Department of Information Technology, shall adopt policies and procedures for the development and implementation of competitive proof of concept procurements.
(a) It is the intent of the General Assembly to:
(1) recognize the need for State agencies to be responsive to the requests and legislative directives of the General Assembly;
(2) reduce the time it takes for State agencies to procure consultants to assist with legislative mandates that have deadlines specified in law; and
(3) be timely in addressing climate change, environmental, energy, and greenhouse gas emissions related issues.
(b) This section applies only to the procurement of consultants that:
(1) are legislatively mandated with specific time frames established in law; and
(2) will address issues related only to climate change, the environment, energy, and greenhouse gas emissions.
(c) The following units are authorized to issue competitive sealed bids higher than their designated small procurement delegation authorities:
(1) the Public Service Commission;
(2) the Office of People’s Counsel;
(3) the Maryland Energy Administration;
(4) the Department of the Environment; and
(5) the Department of Natural Resources.
(d) Before awarding a procurement contract under this section, the procurement officer shall obtain the approval of:
(1) the head of the unit; and
(2) the Chief Procurement Officer, or their designee.
(e) (1) The Chief Procurement Officer, or their designee, shall approve a procurement contract submitted under this section if it complies with the requirements of this section.
(2) If the Chief Procurement Officer, or their designee, does not approve a procurement contract submitted under this section within 5 business days after receiving the contract, the contract shall be considered approved.
(a) In this subtitle the following words have the meanings indicated.
(b) “Change order” means a written order that:
(1) is signed by the procurement officer; and
(2) directs the contractor to make changes that the procurement contract authorizes the procurement officer to order without the consent of the contractor.
(c) “Contract modification” means a written alteration that:
(1) affects specifications, delivery point, date of delivery, period of performance, price, quantity, or other provisions of a procurement contract; and
(2) is accomplished by mutual action of the parties to the procurement contract.
(d) “Cost-reimbursement contract” means a procurement contract under which the State reimburses a contractor for fees and other costs that are:
(1) recognized as allowable and allocable under the regulations of the Board on price and cost principles; and
(2) within a stated ceiling.
(a) After a solicitation is issued and until a recommendation is made by a procurement officer, a procurement officer may disclose to a person outside the Executive Department only:
(1) whether a decision has been made regarding a solicitation; and
(2) information that is available to the public under Title 4, Subtitles 1 through 5 of the General Provisions Article.
(b) After a solicitation is issued, a procurement officer shall record and include in the procurement file the following information from an inquiry from a source outside the Executive Department:
(1) the date and time of the inquiry;
(2) the name and affiliation of the person making the inquiry; and
(3) the substance and nature of the inquiry.
(c) A procurement officer shall maintain a file on each procurement that includes:
(1) a record of all inquiries required to be recorded under subsection (b) of this section;
(2) all written solicitations by an agency or unit;
(3) all offers received;
(4) all internal and external correspondence regarding the procurement;
(5) written documentation from the procurement officer describing efforts to confirm the information in the affidavits submitted by the successful bidder or offeror; and
(6) the final contract.
(a) A unit:
(1) shall draft specifications to encourage maximum practicable competition without modifying the requirements of the State; and
(2) may not draft specifications to favor a single prospective bidder or offeror.
(b) A unit shall require a prospective bidder or offeror of supplies or construction to state in the bid or offer:
(1) whether the procurement will or may include recycled materials; and
(2) the types, amounts, and application of recycled materials that the bidder or offeror intends to include in the procurement.
(a) (1) A procurement officer shall reject a bid or proposal if the procurement officer determines that:
(i) the bid is nonresponsive or the proposal is unacceptable; or
(ii) the bidder or offeror is not responsible.
(2) The procurement officer shall include a determination under this subsection in the procurement file.
(b) If, with the approval of the Board, a unit determines that it is fiscally advantageous or otherwise in the best interests of the State, the unit may:
(1) cancel an invitation for bids, a request for proposals, or other solicitation; or
(2) reject all bids or proposals.
(c) A procurement officer may determine that a person is not a responsible bidder or offeror for:
(1) unreasonable failure to supply information promptly in connection with a determination of responsibility under subsection (a) of this section; or
(2) any other reason indicating that the person does not have:
(i) the capability in all respects to perform fully the requirements for a procurement contract; or
(ii) the integrity and reliability that will ensure good faith performance.
(a) Except as otherwise provided in this section, a procurement officer may not require a bidder or offeror to provide bid security on a procurement contract if the procurement officer expects the price to be less than or equal to the small procurement amount specified in § 13–109 of this title.
(b) (1) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for construction if:
(i) the price is expected to exceed the small procurement amount specified in § 13–109 of this title; or
(ii) required by federal law or a condition of federal assistance requires the security.
(2) The amount of bid security required for a procurement contract for construction shall be:
(i) at least 5% of the bid or price proposal; or
(ii) if the bid or price proposal states a rate but not a total price, an amount determined by the procurement officer.
(c) (1) A procurement officer may require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if the price of the procurement contract is expected to exceed the small procurement amount specified in § 13–109 of this title.
(2) A procurement officer shall require a bidder or offeror to provide bid security on a procurement contract for services, supplies, or construction related services if federal law or a condition of federal assistance requires the security.
(3) The amount of bid security required for a procurement contract for services, supplies, or construction related services shall be an amount determined by the procurement officer. If a bid or proposal states a rate but not a total price, the procurement officer shall determine the dollar amount of the bid security.
(d) Bid security under this section shall be:
(1) a bond provided by a surety company authorized to do business in the State;
(2) cash; or
(3) another form of security allowed by regulation.
(a) Except as provided under subsection (b) of this section, if a procurement officer requires bid security, the procurement officer shall reject a bid or proposal that is not accompanied by proper security.
(b) A procurement officer may accept a bid or proposal that is accompanied by bid security in less than the amount required if:
(1) the procurement officer determines that:
(i) the deficiency in the amount is insubstantial; and
(ii) acceptance of the bid or proposal would be in the best interests of the State; and
(2) the procurement officer further determines that:
(i) the bid or proposal was the only one submitted and there is no time for rebidding;
(ii) the bid security became inadequate as a result of the correction of a mistake in the bid or proposal or as a result of a modification in the bid or proposal in accordance with applicable regulations, and the bidder or offeror increased the amount of bid security to required limits within 48 hours after the correction or modification; or
(iii) after consideration of the risks involved and the difference between the lowest bid and the next lowest bid, it would be fiscally advantageous to the State to accept the lowest bid or proposal.
Whenever a bidder or offeror withdraws a bid or proposal, action may be taken against the bid security unless:
(1) there is a mistake in the bid or proposal; and
(2) the procurement officer allows the bidder or offeror to withdraw before the procurement contract is awarded.
(a) (1) If a procurement officer decides to conduct a pre–bid conference to explain the requirements of a procurement that is expected to exceed $100,000, as soon as practicable after the conference concludes, the procurement officer shall have written minutes of the conference prepared.
(2) The minutes of a pre–bid conference are public records and shall be open to public inspection during ordinary business hours.
(b) (1) Subject to Title 4 of the General Provisions Article:
(i) a summary of the final evaluation of a proposal shall be open to public inspection;
(ii) after an award, all proposals shall be open to public inspection; and
(iii) at and after bid opening, the contents of a bid and any document submitted with the bid shall be open to public inspection.
(2) Except as otherwise provided in this section, Title 4 of the General Provisions Article shall govern any request for the disclosure of information related to a procurement.
(c) A procurement officer may deny public access to the advisory or deliberative records of an evaluator of a proposal if the records would not be available by law to a private party in litigation with the unit.
(d) (1) Before bid opening:
(i) bids shall remain sealed; and
(ii) the State may not disclose the name of a bidder.
(2) Before the closing date for proposals, a procurement officer may not disclose the name of a person who has submitted a proposal.
(3) Before awarding a procurement contract based on competitive sealed proposals, the State may not disclose the contents of a proposal to any person other than a person responsible for evaluating or reviewing the proposal.
(e) Subsections (b)(1), (c), and (d) of this section do not affect the authority of the Board of Contract Appeals or a court of competent jurisdiction to:
(1) decide that information is discoverable in an administrative or judicial proceeding; and
(2) compel disclosure.
(a) In this section, “procurement official” means a procurement officer or an individual who participates in the drafting of specifications for procurement.
(b) During the conduct of a procurement, a competing contractor, or any officer, employee, representative, agent, or consultant of any competing contractor, may not knowingly:
(1) make any offer or promise of future employment or business opportunity to, or engage in any discussion of future employment or business opportunity with, any procurement official of the agency conducting the procurement;
(2) offer, give, or promise to offer or give any money, gratuity, or other thing of value to any procurement official of the agency conducting the procurement; or
(3) solicit or obtain from any officer or employee of an agency conducting the procurement, before the award of a contract, any proprietary or source selection information regarding the procurement.
(a) Each invitation for bids or request for proposals for a contract that will involve the selection of a consultant who is to assist the unit in the formation, award, or execution of any State contract shall require that a bidder or offeror provide to the unit an affidavit that discloses any actual or potential conflict of interest of which the bidder or offeror knows, or can reasonably be expected to know, in accordance with regulations adopted under this section.
(b) The Board shall adopt regulations concerning the disclosure and evaluation of conflicts of interest under this section.
(a) Except as provided in subsection (d) of this section, an individual who assists an executive unit in the drafting of specifications, an invitation for bids, a request for proposals for a procurement, or the selection or award made in response to an invitation for bids or a request for proposals, or a person that employs the individual during the period of assistance, may not:
(1) submit a bid or proposal for that procurement; or
(2) assist or represent another person, directly or indirectly, who is submitting a bid or proposal for that procurement.
(b) For purposes of subsection (a) of this section, assisting in the drafting of specifications, an invitation for bids, or a request for proposals for a procurement does not include:
(1) providing descriptive literature, such as catalogue sheets, brochures, technical data sheets, or standard specification “samples”, whether requested by an executive unit or provided unsolicited;
(2) submitting written or oral comments on a specification prepared by an executive unit or on a solicitation for a bid or proposal when comments are solicited from two or more persons as part of a request for information or a prebid or preproposal process;
(3) providing specifications for a sole source procurement made in accordance with § 13–107 of this title;
(4) providing architectural and engineering services for:
(i) programming, master planning, or other project planning services; or
(ii) the design of a construction project if:
1. the design services do not involve lead or prime design responsibilities or construction phase responsibilities on behalf of the State; and
2. A. the anticipated value of the procurement contract at the time of advertisement is at least $2,500,000 and not more than $100,000,000; or
B. regardless of the amount of the procurement contract, the payment to the individual or person for the design services does not exceed $500,000; or
(5) for a procurement of health, human, social, or educational services, comments solicited from two or more persons as part of a request for information, including written or oral comments on a draft specification, an invitation for bids, or a request for proposals.
(c) A unit that receives comments as described in subsection (b)(2) and (5) of this section shall retain:
(1) any written comments; and
(2) a record of any oral comments.
(d) (1) The prohibitions established under subsection (a) of this section apply from the date of issuance of the first invitation for bids or request for proposals for which the specifications were initially drafted until the later of:
(i) 2 years from the date of issuance; or
(ii) the selection or award of a procurement contract in response to the issuance of the invitation for bids or request for proposals or a reissuance of the invitation for bids or request for proposals for which the specifications were initially drafted.
(2) The prohibitions established under subsection (a) of this section do not apply to a subsequent invitation for bids or request for proposals for which the specifications are reused after the initial prohibition is no longer applicable in accordance with paragraph (1) of this subsection.
(a) In accordance with Title 10, Subtitle 1 of the State Government Article, the Board shall adopt regulations on price and cost principles based on generally accepted accounting principles.
(b) The principles adopted by the Board shall be used:
(1) as guidelines for negotiations on:
(i) estimated costs or fixed prices;
(ii) price adjustments for contract modifications and change orders; and
(iii) settlements of terminated procurement contracts;
(2) to establish the allowability of costs under procurement contract provisions for the reimbursement of costs; and
(3) in any other situation that requires the establishment of the estimated or incurred costs of performing a procurement contract.
(a) (1) Subject to § 13-215 of this subtitle and subsection (b) of this section, a unit may enter into a procurement contract based on any method of pricing that will promote the best interests of the State.
(2) If practicable, a unit shall give preference to a fixed-price form of procurement contract.
(b) (1) A unit may not enter into a cost-plus-a-percentage-of-cost procurement contract.
(2) A contractor who is subject to a cost-reimbursement contract may not enter into a cost-plus-a-percentage-of-cost subcontract.
(a) A unit may not enter into a cost-reimbursement contract unless the procurement officer determines that:
(1) a cost-reimbursement contract is likely to be less costly to the State than any other type of contract; or
(2) except for leases of real property, the kind or quality of procurement that the unit requires could not be obtained practicably under any other type of contract.
(b) A unit may not enter into a procurement contract that is wholly or partly a cost-reimbursement contract unless the procurement officer determines that the accounting system of the contractor:
(1) will allow timely development of all necessary cost data in the form required by the specific type of procurement contract under consideration; and
(2) is adequate to allocate costs in accordance with generally accepted accounting principles.
(c) A cost-reimbursement contract shall provide that costs, including costs for subcontractors, will be reimbursed only if the costs are allowable and allocable under:
(1) the procurement contract; or
(2) the regulations of the Board on cost principles.
(d) A contractor under a cost-reimbursement contract shall give notice to and, as required under the contract, obtain approval from a procurement officer before the contractor enters into:
(1) a cost-reimbursement subcontract; or
(2) any subcontract involving more than:
(i) $25,000; or
(ii) 5% of the estimated cost of the procurement contract.
(a) Except as provided in subsection (b) of this section, a procurement officer may not require a contractor to provide a performance bond, payment bond, or other security on a procurement contract for construction, construction related services, services, or supplies if the price of the procurement contract is less than or equal to the small procurement amount specified in § 13–109 of this title.
(b) A procurement officer shall require a contractor to provide a performance bond, payment bond, or other security if federal law or a condition of federal assistance requires the security.
(c) If the price of a procurement contract for construction exceeds the small procurement amount specified in § 13–109 of this title for construction, a procurement officer shall require a contractor to provide security as required under Title 17, Subtitle 1 of this article.
(d) A procurement officer may require a contractor to provide a performance bond or other security on a procurement contract for supplies, services, or construction related services if:
(1) circumstances warrant security; and
(2) the price of the procurement contract exceeds the small procurement amount specified in § 13–109 of this title.
(e) (1) The Board shall adopt regulations to establish separate surety bond forms for procurement officers to use to require security for:
(i) fixed–price contracts; and
(ii) multiyear contracts.
(2) The form for multiyear contracts shall provide for annual and renewable contracts.
(a) In this section, “multi–year contract” means a procurement contract that requires appropriations for more than 1 fiscal year.
(b) (1) A unit may enter into a multi–year contract subject to:
(i) standards established by the Board; and
(ii) regulations adopted by the primary procurement unit that is responsible for the type of procurement involved.
(2) A multi–year contract shall be subject to review and approval by that primary procurement unit.
(c) A multi–year contract may not be approved unless each unit reviewing the multi–year contract determines that:
(1) the estimated requirements of the State:
(i) cover the period of the multi–year contract;
(ii) are reasonably firm; and
(iii) are continuing; and
(2) the multi–year contract will serve the best interests of the State by encouraging effective competition or otherwise promoting economy in State procurement.
(d) (1) If money sufficient for the continued performance of a multi–year contract is not appropriated for any fiscal year, the multi–year contract terminates automatically on the earlier of:
(i) the last day of the fiscal year for which money last was appropriated; or
(ii) the date provided in the termination clause of the procurement contract.
(2) If the multi–year contract is terminated under this subsection, the unit shall reimburse the contractor for the reasonable value of any nonrecurring costs that were:
(i) incurred as a result of the multi–year contract; but
(ii) not amortized in the price of the supplies or services delivered under the multi–year contract.
(3) The cost of termination under this subsection may be paid from any appropriation available for that purpose.
(e) Except as provided in subsection (f) of this section, each multi–year contract, including a lease of real property, shall include an automatic termination clause that:
(1) is not inconsistent with the requirements of subsection (d) of this section; and
(2) discharges both parties to the multi–year contract from future performance of that contract, but not from their existing obligations.
(f) (1) On the recommendation of the Secretary of General Services, the Board may waive the requirement to include an automatic termination clause under subsection (e) of this section for a multi–year contract to procure energy generated from a Tier 1 renewable source or a Tier 2 renewable source, as defined in § 7–701 of the Public Utilities Article.
(2) In determining whether or not to grant a waiver under paragraph (1) of this subsection, the Board shall consider the effect of imposing the termination clause requirement under subsection (e) of this section on the ability of the energy supplier to obtain financing for the renewable energy generation project that produces the energy that the State is contracting to procure.
(a) Each procurement contract shall include clauses covering:
(1) termination for default;
(2) termination wholly or partly by the State for its convenience if the head of the primary procurement unit determines that termination is appropriate;
(3) variations that occur between estimated and actual quantities of work in a procurement contract;
(4) liquidated damages, as appropriate;
(5) specified excuses for nonperformance;
(6) except for real property leases, the unilateral right of the State to order in writing:
(i) changes in the work, if the changes are within the scope of the procurement contract; and
(ii) a temporary stop or delay in performance;
(7) the obligation of the contractor to comply with the political contribution reporting requirements under Title 14 of the Election Law Article, to which the contractor may be subject as required under § 17–402 of this article; and
(8) nonvisual access for information technology as required under § 3A–312 of this article.
(b) In addition to the clauses required under subsection (a) of this section, a procurement contract for construction shall include:
(1) a clause providing for contract modification if the condition of a site differs from the condition described in the specifications; and
(2) a clause covering the requirements for notice of contract claims, submission of contract claims, and resolution of contract claims under § 15–219 of this article.
(c) Each procurement contract shall include a clause that gives to the parties notice that preexisting regulations apply to the procurement contract in accordance with § 11–206 of this article.
(d) At any time after the parties enter into a procurement contract they may include additional clauses in the procurement contract, by consent, without consideration.
(e) A clause required under this section for contract modification of or change orders to a procurement contract for construction shall:
(1) make each contract modification or change order that affects the price of the procurement contract subject to:
(i) prior written approval from the unit and any other person responsible for the procurement contract; and
(ii) prior certification by the fiscal authority responsible for the unit about:
1. the availability of money; and
2. the effect of the contract modification or change order on the project budget or the total construction cost; and
(2) prohibit the contract modification or change order if the certification by the fiscal authority discloses that the contract modification or change order will increase the cost beyond budgeted and available money, unless:
(i) sufficient additional money is made available; or
(ii) the scope of the project is adjusted to allow completion within the project budget.
(a) In this section, “service contract” has the meaning stated in § 13–401 of the State Personnel and Pensions Article.
(b) (1) At least 60 days before the issuance of a solicitation for a service contract that is not exempt under § 13–403(c) or § 13–404(b) of the State Personnel and Pensions Article, the unit shall provide the exclusive representative of the employees who may be affected by the service contract with:
(i) written notice of:
1. work that is being proposed for contracting; and
2. contracting procedures, requirements, timetables, and employee rights as provided in Title 13, Subtitle 4 of the State Personnel and Pensions Article; and
(ii) a reasonable opportunity to meet and discuss alternatives to the proposed service contract.
(2) (i) 1. Except as provided in subsubparagraph 2 of this subparagraph, this paragraph applies to a solicitation for a service contract for janitorial services.
2. This paragraph does not apply to a service contract for janitorial services under Title 14, Subtitle 1 of this article.
(ii) In consultation with the Department of General Services, the Board shall adopt regulations concerning a solicitation for a service contract for janitorial services to require that a bidder or offeror delineate its costs by category, including:
1. labor;
2. cleaning supplies; and
3. projected man–hours to satisfactorily complete the service.
(c) A violation of this section does not constitute grounds to challenge or appeal an award of a procurement or the process through which the procurement was conducted.
(a) This section is broadly applicable to all procurements by the State.
(b) Each contract for procurement shall include a nondiscrimination clause as provided in this section.
(c) The nondiscrimination clause shall:
(1) prohibit discrimination in any manner by the contractor against an employee or applicant for employment because of sex, sexual orientation, gender identity, disability, race, age, color, creed, or national origin;
(2) require the contractor to include a similar clause in every subcontract except a subcontract for standard commercial supplies or raw materials; and
(3) require each contractor and subcontractor subject to this clause to post conspicuously a notice that sets forth the provisions of the clause in a place that is available to employees and applicants for employment.
(d) If the nondiscrimination clause is omitted from a contract or subcontract subject to this section, the State may declare the contract to be void. In that event, the contractor is entitled to the reasonable value of work that has been performed and materials that have been provided.
(e) If a contractor willfully fails to comply with the requirements of the nondiscrimination clause and the contract is partly executory, the State may compel the contractor to continue to perform under the contract, but the State:
(1) is liable for no more than the reasonable value of work performed and materials provided after the date on which the breach of contract was or should have been discovered; and
(2) shall deduct any money that has been paid under the contract from the money that becomes due under item (1) of this subsection.
(f) If a subcontractor willfully fails to comply with the requirements of a nondiscrimination clause, the contractor may void the subcontract. In that event, the contractor is liable for no more than the reasonable value of work performed or materials provided.
(g) (1) Any person, including an employee or prospective employee, who has information about a violation of this section or a nondiscrimination clause may inform the Board.
(2) The Board:
(i) shall cause an immediate investigation of the charge; and
(ii) if it concludes that the charge is true, may invoke any remedy available by law.
(a) In this section, “established catalog price” means the price included in the most current catalog, price list, schedule, or other form that:
(1) is regularly maintained by the manufacturer or supplier of an item;
(2) is published or available for inspection by customers; and
(3) states:
(i) prices at which sales are currently or were last made to the general buying public; or
(ii) discounted prices at which sales are currently or were last made to local, State, or federal governmental units.
(b) This section applies to all procurements by units except:
(1) a procurement for which the price will be established by competitive sealed bidding; or
(2) a lease of real property or an amendment to a lease of real property.
(c) An offeror or contractor shall submit cost and price information for a procurement contract, change order, or contract modification if the price:
(1) is expected to exceed $100,000 or a smaller amount set by the procurement officer; and
(2) is not:
(i) based on adequate price competition;
(ii) based on the established catalog or market price of commercial items sold in substantial quantities to a significant number of buyers; or
(iii) set by law.
(d) An offeror or contractor required to submit cost and price information shall certify that, to the best knowledge of the offeror or contractor, the information is:
(1) accurate;
(2) complete; and
(3) current as of a specific date that:
(i) has been determined by the procurement officer and the offeror or contractor; and
(ii) occurs before the conclusion of price discussions.
(e) Each procurement contract, change order, or contract modification for which a cost and price certificate is required shall contain a provision that the price, including profit or fee, shall be reduced to exclude any significant price increases in a component that result because the contractor provided cost or price information that, as of the date specified under subsection (d)(3) of this section, was inaccurate, incomplete, or not current.
(a) For a State procurement contract for $10,000 or more, except as provided in subsection (c) of this section, at the time a bid or proposal for any State procurement contract is submitted, the bidder or offeror shall certify to the procurement officer that:
(1) the bidder or offeror has paid all taxes, unemployment insurance contributions, reimbursement payments, and interest not barred by limitations and payable to the Comptroller, the Department of Assessments and Taxation, or the Maryland Department of Labor or has provided for payment in a manner satisfactory to the unit responsible for collection; and
(2) if the bidder or offeror is a vendor of tangible personal property, the bidder or offeror possesses a valid sales and use tax license under Title 11, Subtitle 7 of the Tax – General Article.
(b) Before a unit awards any procurement contract for $100,000 or more, the unit shall verify through the Office of the Comptroller:
(1) that all taxes, unemployment insurance contributions, reimbursement payments, and interest not barred by limitations and payable by the contractor to the Comptroller, the Department of Assessments and Taxation, and the Secretary of Labor are paid or that payment has been provided for in a manner satisfactory to the unit responsible for collection; and
(2) if the contractor is a vendor of tangible personal property, that the contractor possesses a valid sales and use tax license under Title 11, Subtitle 7 of the Tax – General Article.
(c) The Board may waive the requirements of this section if the Board determines that:
(1) the procurement is essential or in the best interests of the State; and
(2) there is no other known source for the procurement at a reasonable cost.
(d) In any solicitation, a unit shall provide notice of the requirements of this section.
(a) Each procurement contract shall include the following clause:
“The contractor, architect, or engineer warrants that it has not employed or retained any person, partnership, corporation, or other entity, other than a bona fide employee, bona fide agent, bona fide salesperson, or commercial selling agency working for the contractor, architect, or engineer, to solicit or secure this agreement, and that it has not paid or agreed to pay any person, partnership, corporation, or other entity, other than a bona fide employee, bona fide salesperson, or commercial selling agency, any fee or other consideration contingent on the making of this agreement.”
(b) (1) (i) Except as provided in subparagraph (ii) of this paragraph, unless a person is a bona fide employee, bona fide salesperson, or commercial selling agency working for the contractor, the person may not offer or agree to solicit or secure a procurement contract under this subtitle if the person’s fee is contingent on, or results from, the making of the procurement contract.
(ii) A regulated lobbyist, who is described in § 5–702(a)(1), (2), or (3) of the General Provisions Article, may not offer or agree to solicit or secure a procurement contract under this subtitle if the lobbyist’s fee is contingent on, or results from, the making of the procurement contract.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, a contractor or a person who provides architectural or engineering services may not offer to pay a fee or other consideration that is contingent on the making of a procurement contract under this article.
(ii) This paragraph does not apply to a payment to a bona fide employee, bona fide salesperson, or commercial selling agency working for the contractor or person providing architectural or engineering services.
(3) An employee of a unit may not solicit or secure or offer to solicit or secure a procurement contract under this article between the unit and any other person for which the employee is paid or is to be paid a fee or other consideration that is contingent on the making of the procurement contract.
(a) (1) In this section the following words have the meanings indicated.
(2) “Children of current or former recipients” has the meaning stated in § 5–304 of the Human Services Article.
(3) “Department” means the Department of Human Services.
(4) “Eligible contract” means a procurement contract designated by the Board as appropriate for the execution of a hiring agreement.
(5) “FIP” means the Family Investment Program established under Title 5, Subtitle 3 of the Human Services Article.
(6) “Former recipient” has the meaning stated in § 5–304 of the Human Services Article.
(7) “Foster youth” has the meaning stated in § 5–304 of the Human Services Article.
(8) “Hiring agreement” means an agreement entered into by the Department or a local department and an entity doing business with the State under which the Department or the local department and the entity agree to work cooperatively in endeavoring to identify and hire current and former FIP recipients, children of current or former recipients, foster youth, and obligors to fill job openings of the entity.
(9) “Local department” means a local department of social services in a county or in Baltimore City created or continued under § 3–201(a) of the Human Services Article.
(10) “Obligor” has the meaning stated in § 10–101 of the Family Law Article.
(b) On or before October 1, 1998, the Board, in consultation with the Department, shall designate the types of procurement contracts that are eligible contracts.
(c) (1) On or before December 1, 1998, the Department shall develop a model hiring agreement form that shall be completed by the Department or a local department and an entity in conjunction with the award of an eligible contract.
(2) The model hiring agreement form shall include the following provisions:
(i) the entity will:
1. inform the Department or the local department, as appropriate, of all of the entity’s job openings;
2. declare the Department or the local department, as appropriate, its “first source” in identifying and hiring candidates to fill those job openings;
3. work cooperatively with the Department or the local department, as appropriate, to develop any necessary training programs that will enable current and former FIP recipients, children of current or former recipients, foster youth, and obligors in qualifying for and securing the positions;
4. give first preference and first consideration to the extent permitted by law and any existing labor agreements to candidates referred to the entity by the Department or the local department, as appropriate;
5. agree to give candidates referred to the entity by the Department or the local department, as appropriate, priority in the filling of a job opening if the candidate meets the qualifications of the position;
6. provide the Department or the local department, as appropriate, with information on the disposition of all referrals made by the Department or the local department, as appropriate, including an explanation of why any such candidate was not hired or considered qualified;
7. provide the Department or the local department, as appropriate, with information regarding the progress and employment status of those candidates referred by the Department or the local department, as appropriate, that the entity hired; and
8. designate a specific individual that the Department or the local department, as appropriate, may contact in regard to the provisions of the hiring agreement; and
(ii) the Department or the local department, as appropriate, will assign an account representative to the entity who will:
1. receive and process all of the entity’s job notifications;
2. refer only screened and qualified candidates to the entity;
3. assist in the development of any mutually agreed upon training programs, internship programs, or both that will better prepare current and former FIP recipients, children of current or former recipients, foster youth, and obligors for employment with the entity;
4. arrange follow–up and post–hire transitional/supportive services, such as child care and transportation, as necessary and appropriate; and
5. review and evaluate the effectiveness of the hiring agreement with the entity and make modifications in the agreement as necessary and appropriate.
(d) Each year, the Department and any local departments that have entered into hiring agreements shall submit a report to the Board and, subject to § 2–1257 of the State Government Article, the General Assembly on:
(1) the number of hiring agreements executed;
(2) the number of current and former FIP recipients, children of current or former recipients, foster youth, and obligors hired by an entity with which a hiring agreement was executed; and
(3) the effectiveness of each hiring agreement in obtaining employment for current and former FIP recipients, children of current or former recipients, foster youth, and obligors.
(a) (1) In this section the following words have the meanings indicated.
(2) “Payment security” has the meaning stated in § 17-101 of this article.
(3) “Performance security” has the meaning stated in § 17-101 of this article.
(b) (1) If a contractor has furnished 100% payment security and 100% performance security in accordance with Title 17, Subtitle 1 of this article under a State procurement contract for construction, the percentage specified in the contract for retainage may not exceed 5% of the total amount.
(2) In addition to retainage, a primary procurement unit and the Maryland Transportation Authority may withhold from payments otherwise due a contractor any amount that the unit reasonably believes necessary to protect the State’s interest.
(3) Retainage withheld by a primary procurement unit and the Maryland Transportation Authority may be deposited in an interest-bearing escrow account in accordance with § 15-108 of this article.
(c) (1) A contractor may not retain a percentage of payments due a subcontractor that exceeds the percentage of payments retained by the primary procurement unit or the Maryland Transportation Authority.
(2) Paragraph (1) of this subsection may not be construed to prohibit a contractor from withholding any amount in addition to retainage if the contractor determines that a subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.
(d) (1) A subcontractor may not retain a percentage of payments due a lower tier subcontractor that exceeds the percentage of payments retained from the subcontractor.
(2) Paragraph (1) of this subsection may not be construed to prohibit a subcontractor from withholding any amount in addition to retainage if the subcontractor determines that a lower tier subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.
(e) If retainage has been placed in escrow under § 15-108 of this article, each payment of retainage shall include a pro rata portion of interest earned.
(f) This section may not be construed to limit the application of the provisions of Title 17, Subtitle 1 of this article.
(a) Unless otherwise prohibited by law, a primary procurement unit may conduct procurement, including the solicitation of bids or proposals, evaluation, award, execution, and administration of a contract, by electronic means as provided in the Uniform Electronic Transactions Act in Title 21 of the Commercial Law Article.
(b) Bidding or submitting a proposal on a procurement contract by electronic means shall constitute consent by the bidder or proposer to conduct by electronic means all elements of the procurement of that contract which the unit agrees to conduct by electronic means.
(c) (1) (i) Except as provided in paragraph (2) of this subsection, a unit utilizing electronic means to conduct procurement or a private contractor furnishing to the State electronic means for conducting procurement may charge a reasonable fee, on approval by the Chief Procurement Officer, to the bidder, proposer, or each contract awardee for the use of the electronic means.
(ii) Any fees collected under subparagraph (i) of this paragraph that are due to the State shall be deposited in the Operations Revenue Fund established under § 13–102.1(c) of this subtitle.
(2) Unless approved by the Board of Public Works, a fee may not be charged under this subsection.
(d) The terms and conditions of a procurement conducted under this section shall comply with the Uniform Electronic Transactions Act in Title 21 of the Commercial Law Article.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2025.
Approved by the Governor, April 8, 2025.
(a) If a prime contractor requires a subcontractor to provide a bid, performance, or payment bond on a procurement contract for services, supplies, or construction related services with the State, the prime contractor may not require bid, performance, or payment bonding from the subcontractor that is more stringent than the bonding requirements in §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article.
(b) A bid, performance, or payment bond that is provided by a subcontractor under subsection (a) of this section shall be accepted by the prime contractor if the bond would be accepted by the State and provided by:
(1) a surety company authorized to do business in the State; or
(2) the Maryland Small Business Development Financing Authority established in Title 5, Subtitle 5 of the Economic Development Article.
(c) In a solicitation or pre–bid conference for a procurement contract for services, supplies, or construction related services with the State, the procurement agency shall provide notice to all bidders that bid security shall be:
(1) a bond provided by a surety company authorized to do business in this State;
(2) a bond provided by an individual surety that meets the requirements of §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article;
(3) cash; or
(4) another form of security:
(i) authorized by federal or State regulation; or
(ii) that is satisfactory to the unit awarding the contract.
(a) (1) In this section the following words have the meanings indicated.
(2) “Aggregator” means a person that:
(i) provides or contracts for environmental outcomes; or
(ii) provides or raises capital to finance delivery of environmental outcomes.
(3) “Environmental outcome” means a commodity that is modeled or directly measured as a single, quantifiable, and certified unit of improvement to the environment, including a nutrient or carbon benefit.
(4) “Environmental outcomes project” means a project designed to secure environmental outcomes.
(5) “Evaluator” means a person other than an aggregator that determines whether environmental outcomes have been achieved based on defined performance measures.
(6) “Outcome payment” means the money paid when a pay–for–success contract performance measure is met.
(7) “Quantification plan” means a plan in which an aggregator describes:
(i) the method that will be used to measure or model environmental outcomes and co–benefits under a pay–for–success contract;
(ii) the compliance monitoring that will occur to ensure that the actions proposed in the pay–for–success contract are taken and maintained over the life of the project;
(iii) verification steps that will be carried out by the State to confirm model results or accurate measurement of environmental outcomes; and
(iv) the timeline for proposed payments under the pay–for–success contract.
(b) The General Assembly finds and declares that:
(1) pay–for–success contracting shifts the risk of performance to the contractor because government payment is made only on achievement of outcomes;
(2) social and environmental impact investment is growing dramatically, and investors are seeking ways to finance and execute pay–for–success contracts in the State to expand the success of Chesapeake Bay restoration efforts and achieve other public outcomes; and
(3) it is in the best interest of the State to include pay–for–success contracting as a contracting option, particularly for units responsible for land conservation and environmental protection, enhancement, and restoration.
(c) A unit may enter into a pay–for–success contract only if the procurement officer of the unit determines that:
(1) the contract will produce estimated financial savings or other quantifiable public benefits for the State; and
(2) a substantial portion of the outcome payment due under the contract will be paid only after specific outcomes have been documented.
(d) (1) This subsection applies only to contracts by:
(i) the Department of Agriculture;
(ii) the Department of the Environment;
(iii) the Department of Natural Resources;
(iv) the Department of Transportation;
(v) the Maryland Environmental Service; and
(vi) the Department of General Services.
(2) This subsection does not apply to the purchase of nitrogen load reductions with funds from the Clean Water Commerce Account of the Bay Restoration Fund established under § 9–1605.2 of the Environment Article.
(3) (i) A unit specified in paragraph (1) of this subsection may enter into a pay–for–success contract with an aggregator to purchase:
1. delivery of an environmental outcomes project; or
2. already certified environmental outcomes.
(ii) Other State and local entities may participate in a pay–for–success contract under this subsection in accordance with an intergovernmental cooperative purchasing agreement under § 13–110 of this title.
(4) A pay–for–success contract executed under this subsection shall include:
(i) a quantification plan approved by the unit;
(ii) a statement of the environmental outcomes to be procured under the contract and a description of how defined performance measures will demonstrate progress in achieving these outcomes;
(iii) requirements regarding the content and frequency of progress reports regarding the achievement of environmental outcomes;
(iv) a methodology for calculating the amount and timing of outcome payments to an aggregator when the evaluator determines that the aggregator has achieved a defined performance measure;
(v) a statement that the basis of payment is the determination of achievement of environmental outcomes by the evaluator and that payments for those outcomes do not require itemized billing or cost documentation by the aggregator; and
(vi) terms addressing:
1. compliance with State law;
2. nondiscrimination in employment;
3. contractor indemnification;
4. termination for default; and
5. the unit’s right to inspect the environmental outcomes project.
(5) A pay–for–success contract executed under this subsection may include provisions regarding:
(i) long–term maintenance and monitoring of environmental services, including the establishment of a stewardship fund;
(ii) a requirement that the unit hold contract funds in a reserve account for outcome payments;
(iii) for agriculture services, payment for achievement of baseline water quality requirements for nitrogen, phosphorus, or sediment; or
(iv) terminations prior to the first payment under the contract for the purpose of selling environmental outcomes without penalty to another entity or for any other reason.
(e) (1) Beginning July 2025 and every 3 years thereafter, the Maryland Environmental Service shall review and evaluate the results of all pay–for–success contracts completed under this section for the previous 3 fiscal years.
(2) The review conducted under paragraph (1) of this subsection shall include:
(i) the cost of each project performed under a contract;
(ii) the length of time taken to complete the project, from the date of notice to proceed until completion;
(iii) the average cost and project duration for each project type; and
(iv) whether each project met the terms of its contract.
(3) Each unit that enters into a pay–for–success contract under this section shall execute an agreement with the Maryland Environmental Service to reimburse the Maryland Environmental Service for each of the unit’s completed contracts the Maryland Environmental Service reviews under this section.
(4) The Maryland Environmental Service shall provide copies of each review conducted under this subsection to:
(i) each unit for which the Maryland Environmental Service reviewed and evaluated a contract; and
(ii) in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment, the Senate Budget and Taxation Committee, the House Environment and Transportation Committee, and the House Appropriations Committee.
(a) Before a unit awards any procurement contract for an amount above $500,000, the recommended awardee may be required to submit a workforce diversity plan to the procurement officer.
(b) Before a unit awards any procurement contract for an amount above $250,000, the recommended awardee may be required to submit a supplier diversity plan to the procurement officer.
(c) The Governor’s Office of Small, Minority, and Women Business Affairs in consultation with the Office of State Procurement shall adopt regulations to carry out this section that include:
(1) suggested content to be included in a workforce or supplier diversity plan; and
(2) guidance for units to comply with the requirements of this section.
(a) In this subtitle the following words have the meanings indicated.
(b) “Community service provider” means an entity that:
(1) is organized under the laws of the United States or this State;
(2) is accredited by the Division of Rehabilitation Services of the State Department of Education for participation in the Employment Works Program;
(3) is operated in the interest of individuals who have a mental or physical disability, including blindness, that:
(i) constitutes a substantial barrier to employment; and
(ii) prevents the individual from engaging in competitive employment; and
(4) does not inure net income wholly or partly to the benefit of any shareholder or other individual.
(c) “Individual with disability owned business” means a business:
(1) that is organized under the laws of the United States or the State;
(2) that is majority owned by an individual or individuals determined by the Division of Rehabilitation Services in the State Department of Education to have a disability, as defined by Title 21, Subtitle 3 of the Education Article;
(3) whose majority owner or owners are directly and significantly engaged in the daily operation of the business;
(4) whose workforce includes individuals with disabilities comprising a percentage of the workforce that is at or above the minimum required under the policies or guidelines established by the Pricing and Selection Committee for the Employment Works Program;
(5) whose total gross revenues for contracts assigned under the Program at the time of assignment do not exceed the maximum allowed under policies or guidelines established by the Pricing and Selection Committee for the Employment Works Program; and
(6) that continues to meet all other eligibility criteria established by the Pricing and Selection Committee for the Employment Works Program.
(d) “Preferred provider” means a provider of supplies or services given preference in § 14–103 of this subtitle.
(e) “State aided or controlled entity” means any public or quasi–public institution that receives aid from the State or that is owned, controlled, or managed by the State.
(a) Notwithstanding any other provision of this Division II, a State or State aided or controlled entity shall buy supplies and services in accordance with § 14–103 of this subtitle.
(b) The procurement of services from the Employment Works Program or an Employment Works Program vendor is not subject to the cost savings requirements of § 13–405 of the State Personnel and Pensions Article.
(a) A State or State aided or controlled entity shall buy supplies and services from:
(1) Maryland Correctional Enterprises, as provided in Title 3, Subtitle 5 of the Correctional Services Article, if Maryland Correctional Enterprises provides the supplies or services;
(2) Blind Industries and Services of Maryland, if:
(i) Blind Industries and Services of Maryland provides the supplies or services; and
(ii) Maryland Correctional Enterprises does not provide the supplies or services; or
(3) the Employment Works Program established under § 14–108 of this subtitle, if:
(i) a community service provider or an individual with disability owned business provides the supplies or services;
(ii) neither Maryland Correctional Enterprises nor Blind Industries and Services of Maryland provides the supplies or services; and
(iii) a State or State aided or controlled entity is not required by law to buy the supplies or services from any other unit of the State government.
(b) A State or State aided or controlled entity shall give preference to the providers listed under subsection (a) of this section in the order that the providers are listed.
(c) To the extent practicable, a State or State aided or controlled entity shall include in a maintenance contract that has a component for housekeeping or janitorial services, a requirement that a prime contractor procure janitorial products from Blind Industries and Services of Maryland if the specified products are made, manufactured, remanufactured, packaged, repackaged, or assembled by Blind Industries and Services of Maryland and are available.
(d) (1) On request by a State or State aided or controlled entity, the Pricing and Selection Committee for Preferred Providers may grant a waiver to the State or State aided or controlled entity from the requirement under subsection (a)(1) of this section if:
(i) the price of the needed supplies and services is at least 10% above market rates for similar supplies and services; or
(ii) the time at which the needed supplies and services would be delivered does not meet the entity’s needs.
(2) The Department of General Services shall adopt regulations to implement this subsection.
(a) In this section, “Committee” means the Pricing and Selection Committee for Preferred Providers.
(b) There is a Pricing and Selection Committee for Preferred Providers.
(c) The Committee consists of the following 6 members:
(1) the Secretary of Transportation or a designee;
(2) the Chief Procurement Officer or a designee;
(3) the Secretary of Public Safety and Correctional Services or a designee;
(4) the Assistant Secretary for Vocational Rehabilitation within the State Department of Education or a designee;
(5) the Secretary of Labor or a designee; and
(6) the Special Secretary for the Office of Small, Minority, and Women Business Affairs or a designee.
(d) A member of the Committee:
(1) may not receive compensation; but
(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.
(e) (1) Blind Industries and Services of Maryland shall provide staff for the Committee.
(2) The staff provided in accordance with paragraph (1) of this subsection shall:
(i) be a blind or a visually impaired associate of Blind Industries and Services of Maryland; and
(ii) complete work related to the duties of the Committee regarding Blind Industries and Services of Maryland under the supervision and direction of the Committee.
(f) The Committee shall:
(1) ensure that supplies and services provided by Blind Industries and Services of Maryland or an Employment Works Program community service provider create work opportunities for individuals who have a mental or physical disability, including blindness, for which Blind Industries and Services of Maryland or the Employment Works Program community service provider was established to assist;
(2) set the prices of supplies and services that Blind Industries and Services of Maryland provides to reflect the fair market prices for the supplies and services;
(3) review and verify the prevailing average market prices, as proposed by Maryland Correctional Enterprises:
(i) when changes are made to the pricing of existing supplies and services that are available from Maryland Correctional Enterprises; and
(ii) for new supplies or services that Maryland Correctional Enterprises intends to make available;
(4) establish procedures to govern procurement of supplies, services, and other sales from Employment Works Program community service providers and individual with disability owned businesses;
(5) from the State procurement list, choose appropriate supplies, services, and other sales for Employment Works Program community service providers and individual with disability owned businesses to offer for procurement;
(6) provide that the State procure those supplies, services, and other sales from an Employment Works Program community service provider or an individual with disability owned business;
(7) if supplies, services, or other sales are not available for procurement from a unit of the State government, determine whether supplies, services, or other sales are available from an Employment Works Program community service provider or an individual with disability owned business;
(8) determine the fair market price of supplies, services, and other sales that Employment Works Program community service providers and individual with disability owned businesses provide;
(9) in accordance with market conditions, adjust prices for the supplies, services, and other sales that Employment Works Program community service providers and individual with disability owned businesses provide;
(10) at the request of a community service provider or an individual with disability owned business, review and, if appropriate, change the price of a supply or service; and
(11) review a request submitted from and may grant a waiver to the State or a State–aided or controlled entity in accordance with § 14–103(d)(1) of this subtitle.
(g) In addition to the duties specified under subsection (f) of this section, the Committee shall:
(1) establish and periodically review eligibility policies or guidelines for participating community service providers and individual with disability owned businesses;
(2) maintain a current list of community service providers and individual with disability owned businesses;
(3) periodically review and revise its list of community service providers and individual with disability owned businesses; and
(4) send any revised list to the Chief Procurement Officer who shall make the list available to each person responsible for buying supplies or services for the State or a State aided or controlled entity.
The Pricing and Selection Committee for Preferred Providers shall:
(1) (i) maintain a current list of supplies and services that Blind Industries and Services of Maryland provides;
(ii) maintain a current list of supplies, services, and other sales that community service providers and individual with disability owned businesses provide; and
(iii) maintain a current list of supplies and services that Maryland Correctional Enterprises provides;
(2) periodically review and revise the lists of supplies, services, and other sales maintained in accordance with item (1) of this section; and
(3) send the lists, and any revised lists, to the Chief Procurement Officer who shall make the lists available to each person responsible for buying supplies, services, or other sales for the State or a State aided or controlled entity.
(a) In this section, “Program” means the Employment Works Program.
(b) There is an Employment Works Program in the Governor’s Office of Small, Minority, and Women Business Affairs.
(c) The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall designate Maryland Works, Inc., or another appropriate coordinating entity, to facilitate the distribution of procurement contracts for supplies and services among community service providers and individual with disability owned businesses.
(d) The coordinating entity designated under subsection (c) of this section shall:
(1) identify potential contracts for supplies and services eligible for procurement;
(2) establish procedures for the selection of community service providers to perform under potentially eligible contracts for preference procurement;
(3) establish procedures for remediation of noncompliance with State or Program policies;
(4) provide training and technical assistance to participating community service providers;
(5) conduct cost analyses and market research for submission and review by the Pricing and Selection Committee for the Program;
(6) provide staff support for the Pricing and Selection Committee for the Program; and
(7) serve as a monitoring agent to ensure that high quality standards are met and maintained by the Program and its participating community service providers.
(a) (1) In this section the following words have the meanings indicated.
(2) “Blind person” means a person who is:
(i) blind; and
(ii) licensed by the Division under the federal acts.
(3) “Division” means the Division of Rehabilitation Services in the Department of Education.
(4) “Program” means the Maryland Business Enterprise Program for the Blind.
(5) “Vending facility” includes vending machines, cafeterias, snack bars, and other concession stands that sell food, beverages, newspapers, periodicals, confections, tobacco products, and other merchandise, including chances for the State Lottery.
(6) “Vending machine” means a currency-operated machine that dispenses products or services.
(7) “Vending machine income” means receipts, other than those of a blind vendor, from vending machine operations on property controlled by the Department of General Services after deducting the costs of the goods sold, including reasonable service and maintenance costs in accordance with customary business practices.
(b) There is a Maryland Business Enterprise Program for the Blind in the Division.
(c) (1) Except as provided in paragraph (2) of this subsection, the Program has priority to operate a vending facility on property controlled by the Department of General Services.
(2) If a facility required to give the priority under this section has vending facilities that are not operated by blind persons, the requirements of this section are waived until the earlier of:
(i) the first expiration of a contract between the operator of the vending facility and the Department of General Services; or
(ii) June 1, 1994.
(d) (1) The Division and the Department of General Services shall adopt regulations for:
(i) the operation and maintenance of a vending facility by the Program; and
(ii) the protection of State property.
(2) The Department of General Services shall cooperate with the Division for the establishment, whenever possible, of vending facilities operated by the Program on Department of General Services property.
(3) (i) Any vending machine income that results from the provisions of this section shall accrue to the blind person managing the vending facility on the property where the income is generated in accordance with federal regulations governing the Vending Facilities Program for the Blind.
(ii) If there is no person managing the vending facility, the vending machine income shall be distributed to the Division for the support of the Program.
(a) Notwithstanding any other provision of law, subsections (b) and (c) of this section apply to:
(1) a State or State aided or controlled entity that is:
(i) subject to the requirements of § 14–103 of this subtitle and § 14–305 of this title; or
(ii) identified by the Department of General Services; and
(2) the University System of Maryland, St. Mary’s College of Maryland, and Morgan State University.
(b) (1) Within 60 days after the enactment of the budget bill by the General Assembly, each State or State aided or controlled entity shall prepare and submit to the Department of General Services a fiscal year procurement expenditure forecast that details the expected expenditures and contracts to be awarded under § 14–103 of this subtitle in the next fiscal year.
(2) The forecast required by paragraph (1) of this subsection shall include activities planned to increase the number of contracts awarded under § 14–103 of this subtitle.
(c) (1) Within 90 days after the end of each fiscal year, a State or State aided or controlled entity shall submit a report to the Department of General Services that complies with the requirements of paragraph (2) of this subsection.
(2) For the preceding fiscal year, the report shall include:
(i) the total number and the dollar value of contracts awarded by the State or State aided or controlled entity to a preferred provider;
(ii) the total number and the dollar value of payments made by a State or State aided or controlled entity to a preferred provider, including purchase card procurements;
(iii) the total number and the dollar value of contracts awarded by the State or State aided or controlled entity to a provider other than a preferred provider;
(iv) the total number and the dollar value of payments made by the State or State aided or controlled entity to a provider other than a preferred provider, including purchase card procurements;
(v) the percentage that the contracts to preferred providers represent of the total number of procurement contracts;
(vi) the percentage that the payments to preferred providers represent of the total value of payments; and
(vii) any other information required by the Department of General Services.
(d) (1) Within 90 days after the end of each fiscal year, a preferred provider awarded a contract in accordance with § 14–103 of this subtitle shall report to the Department of General Services in accordance with paragraphs (2) and (3) of this subsection.
(2) 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.
(3) For the preceding fiscal year, Maryland Correctional Enterprises shall report the length of time between each order and delivery of supplies and services.
(e) Within 60 days after receipt of all of the reports required under subsections (c) and (d) of this section, the Department of General Services shall submit a summary of the information to:
(1) the Board of Public Works; and
(2) in accordance with § 2–1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment, the House Health and Government Operations Committee, and the Legislative Policy Committee.
(a) In this subtitle the following words have the meanings indicated.
(b) “Disabled veteran” means a veteran who has been certified by the U.S. Department of Veterans Affairs as having a service–connected disability regardless of the disability rating.
(c) “Disabled veteran–owned small business” means a small business that is at least 51% owned and controlled by one or more individuals who are disabled veterans.
(d) “Small business” means a business that meets the qualifications established under § 14–203 of this subtitle.
(e) “Small business preference” means a purchase request for which bids are invited from a list of qualified bidders that includes small businesses.
(f) “Veteran” means a veteran as defined in 38 U.S.C. § 101(2) who is domiciled in Maryland.
(g) “Veteran–owned small business” means a small business that is at least 51% owned and controlled by one or more individuals who are veterans.
(a) This subtitle applies to procurement of supplies, services, and construction related services by any unit or agency of the Executive Branch of State government.
(b) For procurements in connection with the construction of a State correctional facility, the Department of Public Safety and Correctional Services shall:
(1) apply the percentage price preferences established by the Department of General Services under this subtitle; and
(2) follow the same procedures established by the Department of General Services to comply with this subtitle.
(a) By regulation, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall specify the criteria that a business must meet to qualify as a small business.
(b) (1) The criteria for qualification as a small business may vary among industries to reflect their particular characteristics.
(2) Regulations adopted under this section shall include, for each class of business, the maximum number of employees a business may have to qualify as a small business.
(c) The regulations adopted under subsection (a) of this section shall require the qualification of a business as a small business for the exclusive purpose of pursuing out–of–state contracts, if the business has:
(1) 250 or fewer employees; or
(2) average annual gross receipts of $10,000,000 or less averaged over its most recently completed 3 fiscal years.
The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish procedures for:
(1) compiling and maintaining a comprehensive bidder’s list of small businesses;
(2) locating potential sources for various construction related services, supplies, and services and affirmatively seeking to locate potential minority business enterprise sources for those construction related services, supplies, and services;
(3) helping small businesses to comply with the procedures for bidding on procurement contracts;
(4) examining requests for construction related services, supplies, and services to determine when an invitation for bids may be designated for the Small Business Preference Program;
(5) bidding for a procurement contract designated for a small business preference;
(6) simplifying procurement specifications and terms, to increase the opportunities for small business participation;
(7) investigating the responsibility of bidders on small business preferences; and
(8) explaining to a small business the reason for which its bid for a small business preference was rejected.
The Department of Commerce shall help the Special Secretary for the Office of Small, Minority, and Women Business Affairs in establishing procedures to carry out § 14–204(1) and (2) of this subtitle.
(a) In this section, “percentage preference” means the percent of the lowest responsive bid submitted by a responsible bidder who is not a small business by which a responsive bid by a small business may:
(1) exceed the lowest bid; and
(2) be awarded a procurement contract under this subtitle.
(b) Subject to the approval of the Board, each unit:
(1) shall establish a percentage preference, not to exceed 8%, for each industry as follows:
(i) a base percentage preference not to exceed 5% for all small businesses; and
(ii) two additional preferences to the percentage preference set forth in item (i) of this paragraph as follows:
1. 2% for veteran–owned small businesses; and
2. 3% for disabled veteran–owned small businesses; and
(2) may vary the percentage preference determined in item (1)(i) of this subsection among industries to account for their particular characteristics.
(a) The unit may designate, for the Small Business Preference Program, procurement of certain supplies, services, or construction related services that have been requested through or with the approval of the head of the unit.
(b) The invitation for bids on a procurement that has been designated for a small business preference shall be sent to small businesses and regular bidders to establish a reasonable price range commensurate with current market conditions.
(c) A unit shall award a procurement contract designated for a small business preference to the small business that:
(1) is a responsible bidder; and
(2) submits the lowest responsive bid from a small business if the difference between that bid and the lowest responsive bid submitted by a responsible bidder who is not a small business does not exceed the percentage preference established under § 14–206 of this subtitle.
IN EFFECT
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(a) In this subtitle the following words have the meanings indicated.
(b) “Certification” means the determination that a legal entity is a minority business enterprise for the purposes of this subtitle.
(c) “Certification agency” means the agency designated by the Board of Public Works under § 14–303(b) of this subtitle to certify and decertify minority business enterprises.
(d) “Certified minority business enterprise” means a minority business enterprise that holds a certification.
(e) “Economically disadvantaged individual” means a socially disadvantaged individual whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged.
(e–1) “Industry type” means the following procurement categories:
(1) construction;
(2) architectural and engineering services and other construction–related professional services;
(3) maintenance;
(4) information technology;
(5) services;
(6) goods, supplies, and equipment; and
(7) real property title insurance services, including commercial real property title insurance services.
(f) “Minority business enterprise” means any legal entity, except a joint venture, that is:
(1) organized to engage in commercial transactions;
(2) at least 51% owned and controlled by 1 or more individuals who are socially and economically disadvantaged; and
(3) managed by, and the daily business operations of which are controlled by, one or more of the socially and economically disadvantaged individuals who own it.
(g) “Minority business enterprise participation schedule” means a schedule included in the submission of a bid or offer that identifies:
(1) the certified minority business enterprises that a bidder or offeror agrees to use in the performance of the contract; and
(2) the percentage of contract value attributed to each certified minority business enterprise.
(h) “Nonprofit entity” means a corporation that:
(1) is incorporated in the State or otherwise qualified to do business in the State;
(2) has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code; and
(3) is organized to promote the interests of physically or mentally disabled individuals.
(i) (1) Subject to paragraphs (2) and (3) of this subsection, “personal net worth” means the net value of the assets of an individual remaining after total liabilities are deducted.
(2) “Personal net worth” includes the individual’s share of assets held jointly or as community property with the individual’s spouse.
(3) “Personal net worth” does not include:
(i) the individual’s ownership interest in the applicant or a certified minority business enterprise;
(ii) the individual’s equity in his or her primary place of residence; or
(iii) up to $500,000 of the cash value of any qualified retirement savings plans or individual retirement accounts.
(j) “Race–neutral measure” means a method that is or can be used to assist all small businesses.
(k) (1) Subject to paragraphs (2) and (3) of this subsection, and in accordance with the State’s most recent disparity study, “socially and economically disadvantaged individual” means a citizen or lawfully admitted permanent resident of the United States who is:
(i) in any of the following minority groups:
1. African American – an individual having origins in any of the black racial groups of Africa;
2. American Indian/Native American – an individual having origins in any of the original peoples of North America and who is a documented member of a North American tribe, band, or otherwise has a special relationship with the United States or a state through treaty, agreement, or some other form of recognition. This includes an individual who claims to be an American Indian/Native American and who is regarded as such by the American Indian/Native American community of which the individual claims to be a part, but does not include an individual of Eskimo or Aleutian origin;
3. Asian – an individual having origins in the Far East, Southeast Asia, or the Indian subcontinent, and who is regarded as such by the community of which the person claims to be a part;
4. Hispanic – an individual of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race, and who is regarded as such by the community of which the person claims to be a part;
5. physically or mentally disabled – notwithstanding the State’s most recent disparity study, an individual who has an impairment that substantially limits one or more major life activities, who is regarded generally by the community as having such a disability, and whose disability has substantially limited his or her ability to engage in competitive business; or
6. women – a woman, regardless of race or ethnicity; or
(ii) otherwise found by the certification agency to be a socially and economically disadvantaged individual.
(2) There is a rebuttable presumption that an individual who is a member of a minority group under paragraph (1)(i) of this subsection is socially and economically disadvantaged.
(3) An individual whose personal net worth exceeds $1,500,000, as adjusted annually for inflation according to the Consumer Price Index, may not be found to be economically disadvantaged.
(l) “Socially disadvantaged individual” means an individual who has been subjected to racial or ethnic prejudice or cultural bias within American society because of membership in a group and without regard to individual qualities. Social disadvantage must stem from circumstances beyond the control of the individual.
IN EFFECT
// EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 //
The General Assembly finds the following:
(1) the State of Maryland wishes to provide all of its citizens with equal access to business formation and business growth opportunities;
(2) the elimination of discrimination against minority– and women–owned businesses is of paramount importance to the future welfare of the State;
(3) the General Assembly has received and carefully reviewed the disparity study entitled “Business Disparities in the Maryland Market Area” commissioned by the General Assembly and published on February 8, 2017 (the Study), and finds that the Study provides a strong basis in evidence demonstrating persistent discrimination against minority– and women–owned businesses;
(4) based on its review of the Study, the General Assembly finds that:
(i) there are substantial and statistically significant adverse disparities that are consistent with discrimination against minorities and nonminority women in wages, firm formation, entrepreneurial earnings, and access to capital in the private sector in the same geographic markets and industry categories in which the State does business;
(ii) the State would become a passive participant in private sector racial and gender discrimination if it ceased or curtailed its remedial efforts, including the operation of the Minority Business Enterprise Program;
(iii) there are substantial and statistically significant adverse disparities that are consistent with discrimination against minorities and nonminority women in State procurement;
(iv) there are substantial and statistically significant adverse disparities that are consistent with discrimination against all individual minority groups and for nonminority women in most major industry categories in State procurement;
(v) there is ample evidence that discrimination in the private sector has depressed firm formation and firm growth among minority and nonminority women entrepreneurs; and
(vi) there is powerful and persuasive qualitative evidence, both statistical and anecdotal, of discrimination against minority and nonminority women business owners in both the public and private sectors;
(5) as a result of ongoing discrimination and the present day effects of past discrimination, minority– and women–owned businesses combined continue to be very significantly underutilized relative to their availability to perform work in the overwhelming majority of the procurement categories in which the State does business;
(6) minority prime contractors also are subject to discrimination and confront especially daunting barriers in attempting to compete with very large and long–established nonminority companies;
(7) despite the fact that the State has employed, and continues to employ, numerous and robust race–neutral remedies, including aggressive outreach and advertising, training and education, small business programs, efforts to improve access to capital, and other efforts, there is a strong basis in evidence that discrimination persists even in public sector procurement where these efforts have been employed;
(8) notwithstanding the levels of participation achieved when race–conscious measures are used, in the absence of Minority Business Enterprise participation goals for State procurement, there is a substantial decrease in the overall utilization of minority– and women–owned businesses;
(9) this subtitle ensures that race–neutral efforts will be used to the maximum extent feasible and that race–conscious measures will be used only where necessary to eliminate discrimination that was not alleviated by race–neutral efforts;
(10) this subtitle continues and enhances efforts to ensure that the State limits the burden on nonminority businesses as much as possible by ensuring that all goals are developed using the best available data and that waivers are available whenever contractors make good faith efforts;
(11) this subtitle ensures that the operation of the Minority Business Enterprise Program is consistent with the Study data and narrowly tailored to the compelling interests of the State; and
(12) State efforts to support the development of competitively viable minority– and women–owned business enterprises will assist in reducing discrimination and creating jobs for all citizens of Maryland.
IN EFFECT
// EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 //
(a) (1) (i) 1. Except for leases of real property, each unit shall structure procurement procedures, consistent with the purposes of this subtitle, to try to achieve an overall percentage goal of the unit’s total dollar value of procurement contracts being made directly or indirectly to certified minority business enterprises.
2. Notwithstanding subsubparagraph 1 of this subparagraph, the following contracts may not be counted as part of a unit’s total dollar value of procurement contracts:
A. a procurement contract awarded in accordance with Subtitle 1 of this title;
B. a procurement contract awarded to a nonprofit entity in accordance with requirements mandated by State or federal law; and
C. a procurement by the Maryland Developmental Disabilities Administration of the Maryland Department of Health for 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.
(ii) 1. The overall percentage goal shall be established on a biennial basis by the Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General.
2. During any year in which there is a delay in establishing the overall goal, the previous year’s goal will apply.
(iii) 1. In consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall establish guidelines on a biennial basis for each unit to consider while determining whether to set subgoals for the minority groups listed in § 14–301(k)(1)(i)1, 2, 3, 4, and 6 of this subtitle.
2. During any year in which there is a delay in establishing the subgoal guidelines, the previous year’s subgoal guidelines will apply.
(iv) 1. The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, shall establish goals and subgoal guidelines that, to the maximum extent feasible, approximate the level of minority business enterprise participation that would be expected in the absence of discrimination.
2. In establishing overall goals and subgoal guidelines, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall provide for public participation by consulting with minority, women’s, and general contractor groups, community organizations, and other officials or organizations that could be expected to have information concerning:
A. the availability of minority– and women–owned businesses;
B. the effects of discrimination on opportunities for minority– and women–owned businesses; and
C. the State’s operation of the Minority Business Enterprise Program.
(v) In establishing overall goals, the factors to be considered shall include:
1. the relative availability of minority– and women–owned businesses to participate in State procurement as demonstrated by the State’s most recent disparity study;
2. past participation of minority business enterprises in State procurement, except for procurement related to leases of real property; and
3. other factors that contribute to constitutional goal setting.
(vi) Notwithstanding § 12–101 of this article, the Special Secretary for the Office of Small, Minority, and Women Business Affairs shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article setting forth the State’s overall goal.
(2) The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, shall establish guidelines for each unit to consider when determining the appropriate minority business enterprise participation percentage goal for a procurement contract in accordance with paragraph (3) of this subsection.
(3) Each unit shall:
(i) consider the practical severability of all contracts and, in accordance with § 11–201 of this article, may not bundle contracts;
(ii) implement a program that will enable the unit to evaluate each contract to determine the appropriate minority business enterprise participation goals, if any, for the contract based on:
1. the potential subcontract opportunities available in the prime procurement contract;
2. the availability of certified minority business enterprises to respond competitively to the potential subcontract opportunities;
3. the contract goal guidelines established under paragraph (2) of this subsection;
4. the subgoal guidelines established under paragraph (1)(iii) of this subsection; and
5. other factors that contribute to constitutional goal setting;
(iii) monitor and collect data with respect to prime contractor compliance with contract goals; and
(iv) institute corrective action when prime contractors do not make good–faith efforts to comply with contract goals.
(4) Units may not use quotas or any project goal–setting process that:
(i) solely relies on the State’s overall numerical goal, or any other jurisdiction’s overall numerical goal; or
(ii) fails to incorporate the analysis outlined in paragraph (3)(ii) of this subsection.
(5) (i) A woman who is also a member of an ethnic or racial minority group may be certified in that category in addition to the gender category.
(ii) For purposes of achieving the goals in this subsection, a certified minority business enterprise may participate in a procurement contract and be counted as a woman–owned business, a business owned by a member of an ethnic or racial group, or both, if the business has been certified in both categories.
(6) Each unit shall meet the maximum feasible portion of the State’s overall goal established in accordance with this subsection by using race–neutral measures to facilitate minority business enterprise participation in the procurement process.
(7) If a unit establishes minority business enterprise participation goals for a contract, a contractor, including a contractor that is a certified minority business enterprise, shall:
(i) identify specific work categories appropriate for subcontracting;
(ii) at least 10 days before bid opening, solicit minority business enterprises, through written notice that:
1. describes the categories of work under item (i) of this paragraph; and
2. provides information regarding the type of work being solicited and specific instructions on how to submit a bid;
(iii) attempt to make personal contact with the firms in item (ii) of this paragraph;
(iv) offer to provide reasonable assistance to minority business enterprises to fulfill bonding requirements or to obtain a waiver of those requirements;
(v) in order to publicize contracting opportunities to minority business enterprises, attend prebid or preproposal meetings or other meetings scheduled by the unit; and
(vi) upon acceptance of a bid or proposal, provide the unit with a list of minority businesses with whom the contractor negotiated, including price quotes from minority and nonminority firms.
(8) (i) Subject to subparagraph (ii) of this paragraph, a unit may consider modifying the minority business participation goal on a procurement contract:
1. at any time prior to contract execution; or
2. after contract execution, when determined to be in the best interest of the State.
(ii) Before a unit may consider modifying a minority business participation goal under subparagraph (i) of this paragraph, the unit shall:
1. make a determination that there has been a change in the factors established under paragraph (3) of this subsection;
2. use the factors established under paragraph (3) of this subsection to determine the percentage modification to the minority business participation goal; and
3. obtain the agreement of the contractor, including any reasonable pricing considerations.
(9) The Special Secretary for the Office of Small, Minority, and Women Business Affairs shall:
(i) in consultation with the Secretary of Transportation, the Chief Procurement Officer, and the Attorney General, establish procedures governing how the participation of minority business enterprise prime contractors is counted toward contract goals; and
(ii) notwithstanding § 12–101 of this article, adopt regulations setting forth the procedures established in accordance with this paragraph.
(10) (i) 1. If a contractor, including a certified minority business enterprise, does not achieve all or a part of the minority business enterprise participation goals on a contract, the unit shall make a finding of whether the contractor has demonstrated that the contractor took all necessary and reasonable steps to achieve the goals, including compliance with paragraph (7) of this subsection.
2. A waiver of any part of the minority business enterprise goals for a contract shall be granted if a contractor provides a reasonable demonstration of good–faith efforts to achieve the goals.
(ii) If the unit determines that a waiver should be granted in accordance with subparagraph (i) of this paragraph, the unit may not require the contractor to renegotiate any subcontract in order to achieve a different result.
(iii) The head of the unit may waive any of the requirements of this subsection relating to the establishment, use, and waiver of contract goals for a sole source, expedited, or emergency procurement in which the public interest cannot reasonably accommodate use of those requirements.
(iv) 1. Except for waivers granted in accordance with subparagraph (iii) of this paragraph, when a waiver determination is made, the unit shall issue the determination in writing.
2. The head of the unit shall:
A. keep one copy of the waiver determination and the reasons for the determination; and
B. forward one copy of the waiver determination to the Governor’s Office of Small, Minority, and Women Business Affairs.
(v) On or before July 31 of each year, each unit shall submit directly to the Board of Public Works and the Governor’s Office of Small, Minority, and Women Business Affairs an annual report of waivers requested and waivers granted under this paragraph.
(vi) The report required under subparagraph (v) of this paragraph shall contain the following information on those contracts where the unit considered a contractor’s request for waiver of all or a portion of the minority business enterprise goals:
1. the contract titles, numbers, and dates;
2. the number of waiver requests received;
3. the number of waiver requests granted; and
4. any other information specifically requested by the Board.
(11) (i) This paragraph applies to a bidder or offeror after submission of a bid or proposal and before the execution of a contract with an expected degree of minority business enterprise participation.
(ii) 1. If a unit’s procurement officer determines that a deficiency exists in the minority business enterprise participation schedule, the procurement officer shall notify the bidder or offeror of the deficiency and require the bidder or offeror to submit an amended minority business enterprise participation schedule within a reasonable time period.
2. A determination under subsubparagraph 1 of this subparagraph shall be made in consultation with the unit’s minority business enterprise liaison.
3. As directed by the notification made under subsubparagraph 1 of this subparagraph, the bidder or offeror shall submit an amended minority business enterprise participation schedule correcting the deficiency identified.
(12) (i) This paragraph applies after execution of a contract with an expected degree of minority business enterprise participation.
(ii) The minority business enterprise participation schedule, including any amendment, shall be attached to and made a part of the executed contract.
(iii) 1. A. Except as provided in subsubsubparagraph B of this subsubparagraph, for purposes of this subparagraph, good cause for removal of a certified minority business enterprise after contract execution includes documented nonperformance by the minority business enterprise or election by the certified minority business enterprise to cease work on the contract.
B. Failure of a certified minority business enterprise to provide a bond requested by a contractor in violation of § 13–227 of this article may not be considered nonperformance by the minority business enterprise.
2. A contractor may not terminate or otherwise cancel the contract of a certified minority business enterprise subcontractor listed in the minority business enterprise participation schedule without showing good cause and obtaining the prior written consent of the minority business enterprise liaison and approval of the head of the unit.
3. The unit shall send a copy of the written consent obtained under subsubparagraph 2 of this subparagraph to the Governor’s Office of Small, Minority, and Women Business Affairs.
(iv) A minority business enterprise participation schedule may be amended to modify minority business enterprise participation after the date of contract execution only if:
1. it is in the best interest of the State;
2. it is approved by the head of the unit; and
3. the contract is amended.
(13) If, during the performance of a contract, a certified minority business enterprise contractor or subcontractor becomes ineligible to participate in the Minority Business Enterprise Program because one or more of its owners has a personal net worth that exceeds the amount specified in § 14–301(k)(3) of this subtitle:
(i) that ineligibility alone may not cause the termination of the certified minority business enterprise’s contractual relationship for the remainder of the term of the contract; and
(ii) the certified minority business enterprise’s participation under the contract shall continue to be counted toward the program and contract goals.
(14) (i) Except as provided in subparagraph (ii) of this paragraph, a nonprofit entity participating as a minority business enterprise on a procurement contract awarded by a unit before July 1, 2015, may continue to participate in the contract until the contract expires or otherwise terminates, including all options, renewals, and other extensions.
(ii) 1. The nonprofit entity’s participation may not be counted toward achieving the minority business enterprise participation goals in this subsection.
2. The unit may not require that a certified minority business enterprise be substituted for the nonprofit entity in order to meet the minority business enterprise goals for the procurement contract.
(15) (i) For purposes of this paragraph and paragraph (16) of this subsection, “regular dealer”:
1. means a firm that owns, operates, or maintains a store, a warehouse, or any other establishment in which the materials, supplies, articles, or equipment are of the general character described by the specifications required under the contract and are bought, kept in stock, or regularly sold or leased to the public in the usual course of business; and
2. does not include a packager, a broker, a manufacturer’s representative, or any other person that arranges or expedites transactions.
(ii) A unit may apply only 60% of the costs of the materials and supplies provided by the certified minority business enterprise if the certified minority business enterprise is a regular dealer for purposes of achieving the minority business enterprise contract goal.
(16) With respect to materials or supplies purchased from a certified minority business enterprise that is neither a manufacturer nor a regular dealer:
(i) a unit may apply the entire amount of fees or commissions charged for assistance in the procurement of the materials and supplies, fees, or transportation charges for the delivery of materials and supplies required on a procurement toward minority business enterprise contract goals, provided a unit determines the fees to be reasonable and not excessive as compared with fees customarily allowed for similar services; and
(ii) a unit may not apply any portion of the costs of the materials and supplies toward minority business enterprise goals.
(b) (1) The provisions of §§ 14–301(f) and 14–303 of this subtitle and subsection (a) of this section are inapplicable to the extent that any unit determines the provisions to be in conflict with any applicable federal program requirement.
(2) The determination under this subsection shall be included with the report required under § 14–305 of this subtitle.
IN EFFECT
// EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 //
(a) (1) (i) In accordance with Title 10, Subtitle 1 of the State Government Article, the Board shall adopt regulations consistent with the purposes of this Division II to carry out the requirements of this subtitle.
(ii) The Board shall keep a record of information regarding any waivers requested in accordance with § 14–302(a)(10)(i) of this subtitle and subsection (b)(12) of this section and submit a copy of the record to the General Assembly on or before October 1 of each year, in accordance with § 2–1257 of the State Government Article.
(2) The regulations shall establish procedures to be followed by units, prospective contractors, and successful bidders or offerors to maximize notice to, and the opportunity to participate in the procurement process by, a broad range of minority business enterprises.
(b) These regulations shall include:
(1) provisions:
(i) designating one State agency to certify and decertify minority business enterprises for all units through a single process that meets applicable federal requirements, including provisions that promote and facilitate the submission of some or all of the certification application through an electronic process;
(ii) for the purpose of certification under this subtitle, that promote and facilitate certification of minority business enterprises that have received certification from a federal or a county program that uses a certification process substantially similar to the process established in accordance with item (i) of this item, including a provision that provides for certification of a business as a minority business enterprise if the business:
1. has obtained certification under the federal Disadvantaged Business Enterprise Program; and
2. meets the eligibility requirements of the Minority Business Enterprise Program;
(iii) requiring the agency designated to certify minority business enterprises to complete the agency’s review of an application for certification and notify the applicant of the agency’s decision within 90 days of receipt of a complete application that includes all of the information necessary for the agency to make a decision; and
(iv) authorizing the agency designated to certify minority business enterprises to extend the notification requirement established under item (iii) of this item once, for no more than an additional 60 days, if the agency provides the applicant with a written notice and explanation;
(2) a requirement that the solicitation document accompanying each solicitation:
(i) set forth the expected degree of minority business enterprise participation based, in part, on the factors set forth in § 14–302(a)(3)(ii) of this subtitle; and
(ii) include a summary of the factors used to determine the expected degree of minority business enterprise participation, including subcontracting opportunities identified for the project, any applicable North American Industry Classification System codes linked to the subcontracting opportunities, and the number of certified minority business enterprises in those industries;
(3) a requirement that bidders or offerors complete a document setting forth the percentage of the total dollar amount of the contract that the bidder or offeror agrees will be performed by certified minority business enterprises;
(4) a requirement that within 10 days after notice from the prime contractor of the State’s intent to award a contract, each minority business enterprise serving as a subcontractor on the contract complete a document setting forth the percentage and type of work assigned to the subcontractor under the contract and submit copies of the completed form to both the procurement officer and the contractor;
(5) a requirement that the solicitation documents completed and submitted by the bidder or offeror in connection with its minority business enterprise participation commitment must be attached to and made a part of the contract;
(6) (i) a requirement that all contracts containing minority business enterprise participation goals shall contain a liquidated damages provision that applies in the event that the contractor fails to comply in good faith with the provisions of this subtitle or the pertinent terms of the applicable contract; and
(ii) a provision that prohibits a unit from assessing liquidated damages for an indefinite delivery contract or an indefinite performance contract if a unit fails to request the performance or delivery of a task for which:
1. a minority business enterprise subcontractor was named on the participation schedule; or
2. a minority business enterprise subcontractor was named on the participation schedule and qualified based on the subcontractor’s existing North American Industry Classification System code;
(7) a requirement that the unit provide a current list of certified minority business enterprises to each prospective contractor;
(8) provisions to ensure the uniformity of requests for bids on subcontracts;
(9) provisions relating to the timing of requests for bids on subcontracts and of submission of bids on subcontracts;
(10) provisions designed to ensure that a fiscal disadvantage to the State does not result from an inadequate response by minority business enterprises to a request for bids;
(11) provisions relating to joint ventures, under which a bidder may count toward meeting its minority business enterprise participation goal, the minority business enterprise portion of the joint venture;
(12) consistent with § 14–302(a)(10) of this subtitle, provisions relating to any circumstances under which a unit may waive obligations of the contractor relating to minority business enterprise participation;
(13) provisions requiring a submission to the unit by minority business enterprises acknowledging all payments received or any other information requested based on criteria established by the Governor’s Office of Small, Minority, and Women Business Affairs under a contract governed by this subtitle;
(14) a requirement that a unit shall verify and maintain data concerning payments received by minority business enterprises, including a requirement that, upon completion of a project, the unit shall compare the total dollar value actually received by minority business enterprises with the amount of contract dollars initially awarded, and an explanation of any discrepancies therein;
(15) a requirement that a unit verify that minority business enterprises listed in a successful bid are actually participating to the extent listed in the project for which the bid was submitted;
(16) provisions establishing a graduation program based on the financial viability of the minority business enterprise, using annual gross receipts or other economic indicators as may be determined by the Board;
(17) a requirement that a bid or proposal based on a solicitation with an expected degree of minority business enterprise participation identify the specific commitment of certified minority business enterprises at the time of submission;
(18) provisions promoting and providing for the counting and reporting of certified minority business enterprises as prime contractors;
(19) provisions establishing standards to require a minority business enterprise to perform a commercially useful function on a contract;
(20) a requirement that each unit work with the Governor’s Office of Small, Minority, and Women Business Affairs to designate certain procurements as being excluded from the requirements of § 14–302(a) of this subtitle;
(21) provisions promoting and providing for the counting and reporting of minority business enterprises certified as both a woman–owned business and a business owned by a member of an ethnic or racial group in accordance with § 14–302(a)(5) of this subtitle; and
(22) other provisions that the Board considers necessary or appropriate to encourage participation by minority business enterprises and to protect the integrity of the procurement process.
(c) The regulations adopted under this section shall specify that a unit may not allow a business to participate as if it were a certified minority business enterprise if the business’s certification is pending.
IN EFFECT
// EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 //
(a) (1) The certification agency shall develop and maintain a directory of all certified minority business enterprises.
(2) The directory shall be accessible to the public through the Internet.
(3) For each minority business enterprise included in the directory, the certification agency shall include the following information:
(i) all contract information available to the certification agency for the minority business enterprise;
(ii) the certification number and minority status of the minority business enterprise;
(iii) contact information for up to three professional references for the minority business enterprise; and
(iv) any other information the certification agency considers necessary or appropriate to encourage participation in the procurement process by minority business enterprises.
(4) The certification agency shall:
(i) update the directory at least monthly;
(ii) identify as recently certified in the directory each minority business enterprise that has obtained certification during the calendar year; and
(iii) include in the directory a list of all minority business enterprises that have become ineligible to participate in the Minority Business Enterprise Program because:
1. one or more of its owners has a personal net worth that exceeds the amount specified in § 14–301(i)(3) of this subtitle; or
2. the minority business enterprise no longer meets the standards developed under § 14–303(b)(13) of this subtitle.
(b) In the same manner and with the same fees as provided by law in civil cases, in a matter regarding the decertification of a certified minority business enterprise, the certification agency may:
(1) subpoena witnesses;
(2) administer oaths; and
(3) compel the production of records, books, papers, and other documents.
(c) If a person fails to comply with a subpoena issued under subsection (b) of this section, or fails to produce documents or other evidence, on petition of the certification agency, a court of competent jurisdiction may pass an order directing compliance with the subpoena or compelling the production of documents or other evidence.
IN EFFECT
// EFFECTIVE UNTIL JULY 1, 2026 PER CHAPTERS 620 AND 621 OF 2025 //
(a) (1) Within 90 days after the end of the fiscal year, each unit shall report to the Governor’s Office of Small, Minority, and Women Business Affairs and the certification agency.
(2) A report under this subsection shall for the preceding fiscal year:
(i) state the total number and value of procurement contracts between the unit and certified minority business enterprises, by specific category of minority business enterprise and by industry type, including whether the minority business enterprise participated as a prime contractor or as a subcontractor;
(ii) indicate the percentage that those procurement contracts represent, by specific category of minority business enterprise and by industry type, of the total number and value of procurement contracts;
(iii) state the total number and the names of certified minority business enterprises that participated as prime contractors or as subcontractors on procurement contracts awarded by a unit;
(iv) for each minority business included in the report under item (iii) of this paragraph, list all procurement contracts awarded by a unit to the minority business enterprise, including a description of the contract and industry type;
(v) provide the results of each compliance assessment conducted by the unit under § 14–303(b)(15) of this subtitle, including for each contract completed during the fiscal year:
1. the names of each prime contractor and each subcontractor that participated in the contract;
2. the type of good or service provided by the contract;
3. the minority business enterprise participation goal for the contract;
4. whether a waiver was granted for the minority business enterprise participation goal;
5. the total dollar value of payments made to each prime contractor and by each prime contractor to each subcontractor during the contract term;
6. whether each subcontractor is a certified minority business enterprise; and
7. if applicable, a description of factors that may have contributed to failure to achieve the minority business enterprise participation goal for the contract, including documented nonperformance or unavailability of a minority business enterprise; and
(vi) contain other such information as required by the Governor’s Office of Small, Minority, and Women Business Affairs and the certification agency and approved by the Board.
(3) As to procurement contracts for architectural services and engineering services reported under paragraph (2) of this subsection, the report shall identify by separate category of minority business enterprise procurements for:
(i) architectural services; and
(ii) engineering services.
(4) A report under this subsection shall be in a form prescribed by the Governor’s Office of Small, Minority, and Women Business Affairs and the certification agency and approved by the Board.
(5) Except for real property title insurance services, the Special Secretary for the Office of Small, Minority, and Women Business Affairs may waive the requirement for a unit to report minority business participation by industry type under paragraph (2) of this subsection if the spending threshold for the industry type is too low for the unit to provide sufficient data.
(b) (1) On or before December 31 of each year, the Governor’s Office of Small, Minority, and Women Business Affairs shall submit to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee and the Joint Committee on Fair Practices and State Personnel Oversight a report summarizing the information the Office receives under subsection (a) of this section.
(2) If applicable, the report submitted under paragraph (1) of this subsection shall include minority business enterprise participation data for each unit by industry type.
(3) This report may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.
(4) (i) Beginning with the report submitted under paragraph (1) of this subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small, Minority, and Women Business Affairs shall include in the report an attestation that all units required to report under subsection (a) of this section are represented in the report.
(ii) To ensure accuracy of the attestation made under subparagraph (i) of this paragraph, on or before December 31, 2023, and every 3 years thereafter, the Governor’s Office of Small, Minority, and Women Business Affairs shall conduct an audit of the Executive Branch of State government to determine what entities are included in the definition of “unit” under § 11–101 of this article.
(c) (1) In this subsection, “mitigating factors” includes documented nonperformance or unavailability of a minority business enterprise designated for a contract.
(2) The Governor’s Office of Small, Minority, and Women Business Affairs and the Office of State Procurement in the Department of General Services, in consultation with the Office of the Attorney General and the Board of Public Works, shall adopt by regulation criteria used to determine that a prime contractor has persistently failed to meet contract goals in the absence of mitigating factors.
(3) The criteria adopted under paragraph (2) of this subsection shall include the results of the compliance assessments made under subsection (a)(2)(v) of this section.
(4) The Governor’s Office of Small, Minority, and Women Business Affairs shall refer prime contractors identified under the criteria adopted under paragraph (2) of this subsection to the Office of the Attorney General for debarment under § 16–203(d)(4) of this article.
The Legislative Policy Committee shall direct at least 1 standing committee of the House of Delegates and at least 1 standing committee of the State Senate to review annually the performance of units as reported under § 14–305 of this subtitle.
(a) (1) A person may not:
(i) fraudulently obtain, hold, or attempt to obtain or hold certification;
(ii) aid another person in performing an act prohibited under item (i) of this paragraph;
(iii) willfully obstruct, impede, or attempt to obstruct or impede a State official or employee investigating the qualifications of a business entity that has requested certification;
(iv) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain, public money to which the person is not entitled under this subtitle; or
(v) in any minority business enterprise matter administered under this subtitle:
1. willfully falsify, conceal, or cover up a material fact by any scheme or device;
2. make a false or fraudulent statement or representation; or
3. use a false writing or document that the person knows to contain a false or fraudulent statement or entry.
(2) Except as otherwise provided by law, a contractor may not identify a certified minority business enterprise in a bid or proposal and:
(i) fail to request, receive, or otherwise obtain authorization from the certified minority business enterprise to identify the certified minority business enterprise in its bid or proposal;
(ii) fail to notify the certified minority business enterprise before execution of the contract of its inclusion of the bid or proposal;
(iii) fail to use the certified minority business enterprise in the performance of the contract; or
(iv) pay the certified minority business enterprise solely for the use of its name in the bid or proposal.
(3) A person who violates any provision of this subsection is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 5 years or both.
(b) (1) A person may not make a false statement about whether an entity has certification.
(2) A person who violates this subsection is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $2,500 or imprisonment not exceeding 1 year or both.
(c) The Governor’s Office of Small, Minority, and Women Business Affairs shall make available a fraud hotline for reporting violations of this section.
The provisions of §§ 14–301 through 14–305 of this subtitle, and any regulations adopted under those sections, shall be of no effect and may not be enforced after July 1, 2026.
(a) (1) In this section the following words have the meanings indicated.
(2) “Preference” includes:
(i) a percentage preference;
(ii) an employee residency requirement; or
(iii) any other provision that favors a resident over a nonresident.
(3) “Resident bidder” means a bidder whose principal office is located in the State.
(4) “Resident offeror” means an offeror whose principal office is located in the State.
(5) (i) Subject to subparagraph (ii) of this paragraph, “services” has the meaning stated in § 11–101 of this article.
(ii) Notwithstanding § 11–101 of this article, “services” includes construction related services and energy performance contract services.
(b) When a unit uses competitive sealed bidding to award a procurement contract, the unit may give a preference to the resident bidder who submits the lowest responsive bid from a resident bidder if:
(1) the resident bidder is a responsible bidder;
(2) a responsible bidder whose principal office or operation is in another state submits the lowest responsive bid;
(3) the state in which the nonresident bidder’s principal office is located or the state in which the nonresident bidder has its principal operation through which it would provide supplies or services gives a preference to its residents; and
(4) a preference does not conflict with a federal law or grant affecting the procurement contract.
(c) When a unit uses competitive sealed proposals to award a procurement contract, the unit may give a preference to resident offerors if:
(1) a responsible offeror whose principal office or operation is in another state submits a proposal;
(2) the state in which the nonresident offeror’s principal office is located or the state in which the nonresident offeror has its principal operation through which it would provide the subject of the contract gives a preference to its residents; and
(3) the preference does not conflict with a federal law or grant affecting the procurement contract.
(d) (1) At the request of the unit, a nonresident bidder or nonresident offeror submitting a proposal for a State project shall provide a copy of the current statute, resolution, policy, procedure, or executive order that pertains to the treatment of nonresident bidders or nonresident offerors by:
(i) the state in which the nonresident bidder’s or nonresident offeror’s principal office is located; and
(ii) the state in which the nonresident bidder or nonresident offeror has its principal operation through which it would provide supplies or services.
(2) A unit may give a preference under this section that is identical to any of the following preferences, or any combination of them:
(i) the preference that the state in which the nonresident bidder’s or nonresident offeror’s principal office is located gives to its residents; or
(ii) the preference that the state in which the nonresident bidder or nonresident offeror has its principal operation through which it would provide supplies or services gives to its residents.
(a) (1) In this section the following words have the meanings indicated.
(2) “Nonresident firm” means a business entity that:
(i) has one office that:
1. is a principal office for the entity; and
2. is not located in the State; or
(ii) for an entity that has offices in multiple states, has not had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.
(3) “Preference” includes:
(i) a percentage preference;
(ii) an employee residency requirement; or
(iii) any other provision that favors an offeror from one state to the disadvantage of an offeror from another state.
(4) (i) “Principal office” means a primary place of business that is staffed on a regular basis to provide the services that are requested by a unit in a request for proposals.
(ii) “Principal office” does not include a satellite office or an office that is minimally staffed and is not open on a regular basis to provide the services that are requested by a unit in a request for proposals.
(5) “Request for proposals” means a request for architectural services or engineering services that is issued in accordance with § 13–112 of this article.
(6) (i) “Resident firm” means a business entity that:
1. is licensed or otherwise authorized to provide architectural or engineering services in the State; and
2. A. for an entity that has one office, the office is located in the State; or
B. for an entity that has offices in multiple states, has had a principal office located in the State for at least 6 months immediately before the date of a request for proposals.
(ii) “Resident firm” includes a joint venture that:
1. was entered into before the date of the request for proposals for which the joint venture submits a proposal; and
2. includes one party that:
A. holds at least a 51% interest in the joint venture; and
B. meets the requirements under subparagraph (i) of this paragraph.
(b) Subject to subsection (d) of this section, a unit shall apply a preference to a proposal from a resident firm if:
(1) (i) a nonresident firm is:
1. a responsible offeror; and
2. determined to be the most qualified person to submit a proposal in accordance with § 13–112 of this article; and
(ii) the state in which the principal office of the nonresident firm is located has a preference that favors an offeror from that state to the disadvantage of an offeror from this State;
(2) a resident firm:
(i) is a responsible offeror; and
(ii) at the same time that it submits the proposal for which the preference would apply, certifies that it meets the requirements for a resident firm; and
(3) the preference:
(i) is the same as the preference referenced in item (1)(ii) of this subsection; and
(ii) does not conflict with a federal law or grant affecting the procurement contract.
(c) At the request of a unit, a nonresident firm shall provide the following documentation for the state in which the principal office of the nonresident firm is located:
(1) a copy of the current statute, resolution, policy, procedure, or executive order that establishes a preference that favors an offeror from that state to the disadvantage of an offeror from this State; or
(2) a certification that the other state does not have a preference that favors an offeror from that state to the disadvantage of an offeror from this State.
(d) (1) If a resident firm qualifies for a preference established under this section and for another preference established under this Division II, the unit:
(i) may not apply more than one preference to the proposal from the resident firm; and
(ii) shall apply the preference to the proposal from the resident firm that is most advantageous to the resident firm.
(2) If, when making a determination of qualification under § 13–112 of this article, a unit determines that a proposal from a resident firm and a proposal from a nonresident firm are equally qualified, the unit may apply a preference to the proposal from the resident firm.
(e) A unit may not apply a preference to a proposal submitted by a resident firm if the resident firm does not submit the certification required under subsection (b)(2)(ii) of this section at the same time that it submits the proposal.
(f) The Board shall:
(1) post and maintain a list of all states with a preference that favors an offeror from that state to the disadvantage of an offeror from this State; and
(2) adopt regulations to implement this section.
(a) In this section, “recycled paper” means a paper product at least 80% of the total weight of which consists of the product of a manufacturing process that:
(1) has converted a raw material into a valuable commodity; and
(2) includes a total gross content of post consumer waste of at least 80%.
(b) To the extent practicable, in procuring paper or paper products under Title 4, Subtitle 3, Part II of this article, the Secretary of General Services shall buy or approve for purchase only supplies that are produced from recycled paper.
(c) Of the total volume of paper that the Secretary of General Services buys, at least 90% shall be recycled paper.
(d) If recycled paper that meets the definition set forth in subsection (a) of this section is unavailable, then for purposes of complying with the requirements of this section, the Department of General Services may purchase recycled paper products that at a minimum conform to the definitions set forth in the Environmental Protection Agency guideline for federal procurement of paper and paper products containing recovered materials (40 C.F.R., Part 247).
(a) To the extent practicable, each unit of the State government shall buy or lease for use by the State government supplies that are the quietest available supplies.
(b) Supplies that are certified as low-noise-emission products under the federal Noise Control Act of 1972 are considered to meet the requirement of subsection (a) of this section.
(a) In this section, “coal products” includes coal in both its synthetic and conventional forms.
(b) This section does not apply to a building or facility for which:
(1) the Department of the Environment determines that the use of coal products violates a provision of the Environment Article or a regulation that the Department adopts under that article; or
(2) the Department of General Services or another appropriate unit determines that the use of coal products would not be cost effective.
(c) The design of a heating system in a building or facility constructed after July 1, 1986 may not preclude the use of Maryland coal if:
(1) the State provides at least 50% of the money used for construction of the building or facility; and
(2) a determination is made that coal products will be used to fuel the heating system.
(a) (1) In this section the following words have the meanings indicated.
(2) “Environmentally preferable product or service” means a product or service that throughout the full life cycle of the product or service:
(i) is energy efficient, water efficient, biobased, nonozone depleting, made with recycled content, or nontoxic; or
(ii) has other attributes recognized as environmentally preferable by the Maryland Green Purchasing Committee.
(b) (1) To encourage the maximum purchase of environmentally preferable products and services, the Maryland Green Purchasing Committee established under § 14–410 of this subtitle shall establish environmentally preferable specifications to be adopted by State agencies.
(2) The environmentally preferable specifications shall be published and maintained online by the Maryland Green Purchasing Committee for use by State agencies.
(c) Each State unit shall review annually the procurement specifications currently used by the unit and, to the extent practicable:
(1) adopt the environmentally preferable specifications published by the Maryland Green Purchasing Committee; and
(2) revise the unit’s procurement specifications in accordance with § 14–410 of this subtitle.
(d) On or before October 1 of each year, each unit shall report to the Department of General Services on the unit’s procurement of environmentally preferable products and services as a percentage of the unit’s gross purchases during the preceding fiscal year, including the types and quantities of products and services procured.
(e) (1) Except as provided in paragraph (2) of this subsection, this section is broadly applicable to all procurements by the State if the quality of the product or service is consistent with the requirements of the bid specifications.
(2) Only to the extent necessary to prevent the denial of federal money or eliminate the inconsistency with federal law, this section does not apply to a procurement by the State if the procurement officer determines that compliance with this section would:
(i) cause denial of federal money; or
(ii) be inconsistent with the requirements of federal law.
(a) In this section, “preference” includes:
(1) a percentage price preference; and
(2) any other provision that favors products or equipment that are mercury free or that contain the least amount of mercury necessary to meet product or equipment performance standards over other products.
(b) Beginning October 1, 2003, all State agencies shall give preference to products and equipment that are mercury free or contain the least amount of mercury necessary to meet product or equipment performance standards.
(c) This section does not apply to a contract or procurement agreement in effect on October 1, 2001.
(d) The Board may adopt regulations to implement this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “Locally grown food” means food grown at a certified local farm defined in § 14–701 of this title.
(3) “Percentage price preference” means the percent by which a responsive bid from a responsible bidder whose product is a locally grown food may exceed the lowest responsive bid submitted by a responsible bidder whose product is not a locally grown food.
(b) (1) The Board shall adopt regulations that require State schools and facilities to establish a percentage price preference, not to exceed 10%, for the purchase of locally grown food.
(2) Notwithstanding paragraph (1) of this subsection, the Board shall adopt regulations authorizing State schools and facilities to conduct an individual procurement that is limited to responses from certified local farms as defined in § 14–701 of this title.
(c) A percentage price preference under this section may not be used in conjunction with any other percentage price preference established under this title.
(d) Each State school and facility shall review the procurement specifications currently used and, to the extent practicable, require the use of a percentage price preference in their purchase of locally grown food.
(e) (1) Except as provided in paragraph (2) of this subsection, this section is broadly applicable to all procurements by State schools and facilities if the locally grown food is consistent with the requirements of the bid specification.
(2) Only to the extent necessary to prevent the denial of federal money or eliminate the inconsistency with federal law, this section does not apply to a procurement by a State school or facility if it is determined that compliance with this section would:
(i) cause denial of federal money; or
(ii) be inconsistent with the requirements of federal law.
(a) In this section, “biodiesel fuel” means:
(1) a fuel, comprised of mono–alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, that is designated B100 and meets the requirements of ASTM D 6751 and its successors; or
(2) a blend of biodiesel fuel meeting ASTM D 6751 with petroleum–based diesel fuel, designated as BXX, where XX represents the volume percentage of biodiesel fuel in the blend.
(b) In fiscal year 2008 and in each subsequent fiscal year, the State shall ensure that at least 50% of the vehicles using diesel fuel in the State vehicle fleet use a blend of fuel that is at least 5% biodiesel fuel or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive or approved under the EPA Renewable Fuels Standard 2 program.
(c) In fiscal year 2009 and in each subsequent fiscal year, the State shall ensure that at least 50% of the heavy equipment owned by the State using diesel fuel and at least 50% of the heating equipment in State buildings that uses normal or #2 heating oil use, subject to availability, a blend of fuel that is at least 5% biodiesel fuel or other biofuel approved by the U.S. Environmental Protection Agency as a fuel or fuel additive or approved under the EPA Renewable Fuels Standard 2 program.
(d) This section does not apply to any State vehicle, piece of heavy equipment, or heating equipment for which mechanical failure due to use of biodiesel fuel or other biofuel will void the manufacturer’s warranty for that vehicle, piece of heavy equipment, or heating equipment.
(a) In this section, “aggregate” means gravel, crushed stone, sand, and other similar materials.
(b) A State or local unit responsible for the maintenance of public lands in the State, to the maximum extent practicable, shall give consideration and preference to the use of compost in any land maintenance activity that is to be paid for with public funds.
(c) It is the goal of the Department of General Services to:
(1) compost, to the extent practicable, all landscape waste on State property that is under its operation for use as fertilizer in landscaping activities; and
(2) increase the percentage of landscaped area fertilized by compost each year.
(d) (1) In purchasing compost, mulch, or other soil amendments or aggregate, each unit of State government shall include in its procurement specifications the specifications published by the Maryland Green Purchasing Committee for compost, mulch, or other soil amendments or aggregate under paragraph (3) of this subsection.
(2) The requirements of paragraph (1) of this subsection apply if:
(i) the products are competitively priced;
(ii) the quality of the products is satisfactory for the intended purposes; and
(iii) the products are readily available.
(3) (i) The Maryland Green Purchasing Committee, established under § 14–410 of this subtitle, shall establish specifications for purchasing of compost, mulch, or other soil amendments or aggregate produced from municipal solid waste, food waste, dredged material, construction waste, yard waste, clean wood waste, or other recycled or organic materials.
(ii) The specifications established under subparagraph (i) of this paragraph shall be published and maintained online by the Maryland Green Purchasing Committee for use by State agencies.
(a) (1) In this section the following words have the meanings indicated.
(2) “Committee” means the Maryland Green Purchasing Committee.
(3) “Environmentally preferable purchasing” means the procurement or acquisition of goods and services that have a lesser or reduced effect on human health and the environment when compared with competing goods or services that serve the same purpose, based on:
(i) the full life cycle of the product or service;
(ii) relevant international consensus standards; and
(iii) relevant factors including the raw materials, manufacturing, packaging, distribution, use, reuse, operation, maintenance, recycling, energy recovery, climate change, fossil fuel, ozone depletion, and disposal of the goods or services.
(b) (1) There is a Maryland Green Purchasing Committee.
(2) The Committee shall consist of the following members:
(i) the Secretary of General Services, or the Secretary’s designee;
(ii) the Secretary of Budget and Management, or the Secretary’s designee;
(iii) the Secretary of Natural Resources, or the Secretary’s designee;
(iv) the Secretary of the Environment, or the Secretary’s designee;
(v) the Secretary of Health, or the Secretary’s designee;
(vi) the Secretary of Commerce, or the Secretary’s designee;
(vii) the Secretary of Transportation, or the Secretary’s designee;
(viii) the Secretary of Public Safety and Correctional Services, or the Secretary’s designee;
(ix) the Chancellor of the University System of Maryland, or the Chancellor’s designee;
(x) the Secretary of Information Technology, or the Secretary’s designee;
(xi) the Secretary of Education, or the Secretary’s designee; and
(xii) the State Treasurer, or the Treasurer’s designee.
(3) The Secretary of General Services, or the Secretary’s designee, shall serve as the Chair of the Committee.
(4) Staff support to the Committee shall be provided by the Department of General Services, with assistance as necessary to be furnished by other member agencies.
(c) The Committee shall provide the State with information and assistance regarding environmentally preferable purchasing, including:
(1) the promotion of environmentally preferable purchasing through education and training;
(2) the development and implementation of statewide policies, guidelines, programs, best practices, and regulations;
(3) coordination with other State or federal agencies, task forces, workgroups, regulatory efforts, research and data collection efforts, or other programs and services relating to environmentally preferable purchasing;
(4) the publication of environmentally preferable specifications to be adopted by State agencies; and
(5) the framework and format for State unit reports required under § 14–405 of this subtitle.
(d) The Committee shall designate a single point of contact for State agencies, suppliers, and other interested parties to contact regarding environmentally preferable purchasing issues.
(e) On or before December 31 of each year, the Committee shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the Committee’s activities and the progress made as a result of the implementation of this section.
(f) This section may not be construed to:
(1) limit or supersede recycled content requirements under any other provision of law; or
(2) require the acquisition of goods or services that:
(i) do not perform adequately for the intended use;
(ii) exclude adequate competition; or
(iii) are not available at a reasonable price in a reasonable period of time.
(g) A bidder or offeror for a procurement contract shall certify in writing that any claims of environmental attributes made relating to a product or service are consistent with the Federal Trade Commission’s Guidelines for the Use of Environmental Marketing Terms.
(a) In this section, “public employer” means:
(1) a unit;
(2) a county;
(3) a municipality in the State;
(4) a school district in the State; or
(5) any special district in the State.
(b) (1) Except as provided in paragraph (2) of this section, a public employer may not knowingly buy, furnish, or require an employee to buy or acquire for use while on duty any of the following items unless the item is manufactured in the United States:
(i) a uniform or any other item of apparel, the selection of which is not in the employee’s discretion, except for the proper size; or
(ii) safety equipment and protective accessories.
(2) A public employer may buy, furnish, or require an employee to purchase or acquire an item listed in paragraph (1) of this subsection that is manufactured outside of the United States, if:
(i) the item or a similar item is not manufactured or available for purchase in the United States;
(ii) the item or a similar item is not manufactured or available for purchase in the United States in reasonably available quantities;
(iii) the price of the item or a similar item manufactured in the United States exceeds the price of a similar, available item that is not manufactured in the United States by an unreasonable amount; or
(iv) the quality of the item or a similar item manufactured in the United States is substantially less than the quality of a comparably priced, similar, and available item that is not manufactured in the United States.
(3) The Board shall adopt regulations defining the following terms for the purposes of this section:
(i) “reasonably available”;
(ii) “unreasonable amount”; and
(iii) “substantially less”.
(a) (1) In this section the following words have the meanings indicated.
(2) “Lamp” means the component of a luminaire that produces the light.
(3) “Lumen” means a unit of measurement of luminous flux.
(4) “Luminaire” means the complete lighting unit, including the lamp or other component that produces light and the assembly that holds the lamp, including an assembly housing, a mounting bracket or pole socket, a lamp holder, a ballast, a reflector or mirror, and a refractor or lens.
(5) “Restricted uplight luminaire” means a luminaire that:
(i) except for a 0.5% maximum incidental uplight from reflection off mounting hardware, allows no direct light emission above a horizontal plane through the luminaire’s lowest light–emitting part; and
(ii) emits no more than 10% of the total direct light emission at or above a vertical angle of 80 degrees.
(6) “State building” means a building owned or leased by the State or a unit of the State.
(b) This section does not apply to a luminaire:
(1) located on the grounds of a correctional facility;
(2) required by federal regulation;
(3) required for storm operation activities performed by the Department of Transportation;
(4) required to illuminate the State flag or the flag of the United States;
(5) used for sign illumination;
(6) in a lighting plan where less than 25% of the luminaires are to be replaced; or
(7) used to illuminate the field of play at a sports facility.
(c) State funds may not be used to install or replace a permanent outdoor luminaire for lighting on the grounds of any State building, facility, park, or trail unless:
(1) the luminaire is designed to maximize energy conservation and to minimize light pollution, glare, and light trespass;
(2) except for a luminaire installed or replaced by the Department of Transportation, the luminaire has a correlated light temperature that is less than or equal to 3,000 kelvins;
(3) the illumination produced by the luminaire is the minimum illumination necessary for the intended purpose of the lighting; and
(4) for a luminaire with an output of more than 1,800 lumens, the luminaire is a restricted uplight luminaire.
(d) (1) The Board of Public Works or the Board’s designee may waive the requirements of subsection (c)(2) or (4) of this section if, after a request for a waiver has been made, the Board of Public Works or the Board’s designee determines that the waiver is necessary for the lighting application.
(2) The Board of Public Works shall establish the requirements for a waiver request under paragraph (1) of this subsection, including:
(i) a description of the lighting plan;
(ii) a description of the efforts made to comply with the requirements of this section; and
(iii) the reason a waiver is necessary.
(3) In reviewing a waiver request, the Board of Public Works or the Board’s designee shall consider design safety, costs, and any other factors the Board or the Board’s designee determines are appropriate.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Conflict mineral” means a mineral or mineral derivative determined under federal law to be financing human conflict.
(ii) “Conflict mineral” includes columbite–tantalite (coltan), cassiterite, gold, wolframrite, or derivatives of these minerals.
(3) “Noncompliant person” means a person:
(i) that is required to disclose under federal law information relating to conflict minerals that originated in the Democratic Republic of the Congo or its neighboring countries; and
(ii) for which the disclosure is not filed, is considered under federal law to be an unreliable determination, or contains false information.
(b) A unit may not knowingly procure supplies or services from a noncompliant person.
(c) In any solicitation for supplies or services, a unit shall provide notice of the requirements of this section.
(a) (1) In this section the following words have the meanings indicated.
(2) “Electronic product” means a product covered by EPEAT or another comprehensive environmental rating system approved by the Department of Information Technology.
(3) “EPEAT” means the Electronic Product Environmental Assessment Tool.
(b) When purchasing an electronic product to be used by the State, a State unit shall purchase an electronic product that:
(1) is listed and rated silver or gold on the EPEAT registry; or
(2) meets nationally recognized and consensus–based standards established by a comprehensive environmental rating system approved by the Department of Information Technology.
(c) If a unit requests a waiver from the requirement in subsection (b) of this section, the Secretary of Information Technology, or the Secretary’s designee, may waive the requirement.
(a) (1) In this section the following words have the meanings indicated.
(2) “Certified e–Stewards recycler” means a recycler of electronic products that has successfully completed the e–Stewards certification program created by the Basel Action Network.
(3) “Electronic product” means a product recycled by:
(i) a certified e–Stewards recycler;
(ii) a R2 certified recycler; or
(iii) a recycler of electronic products that meets nationally recognized and consensus–based guidelines, standards, and systems for recycling that are approved by the Department of the Environment in consultation with the Department of General Services.
(4) “R2 certified recycler” means a recycler of electronic products that is certified in the R2 Practices Standards that are maintained by R2 Solutions.
(b) On or after October 1, 2014, when awarding a procurement contract for services to recycle electronic products, a State unit shall award the contract to a recycler of electronic products that:
(1) is R2 or e–Stewards certified; or
(2) meets nationally recognized and consensus–based guidelines, standards, and systems for recycling that are approved by the Department of the Environment in consultation with the Department of General Services.
(a) (1) In this section the following words have the meanings indicated.
(2) “American manufactured goods” means goods that:
(i) are manufactured in the United States; or
(ii) are assembled in the United States.
(3) (i) “Emergency life safety and property safety goods” means any goods when provided for installation in, as part of, or as an addition to a system designed to:
1. prevent, respond to, alert regarding, suppress, control, or extinguish an emergency or the cause of an emergency that threatens life or property; or
2. assist in evacuation in the event of an emergency that threatens life or property.
(ii) “Emergency life safety and property safety goods” includes:
1. systems or items for or relating to:
A. fire alarms;
B. fire sprinklers;
C. fire suppression;
D. fire extinguishing;
E. security;
F. gas detection;
G. intrusion detection;
H. access control;
I. video surveillance and recording;
J. mass notification;
K. public address;
L. emergency lighting;
M. patient wandering;
N. infant tagging; and
O. nurse call; and
2. information technologies and telecommunications products and technologies that are used for the purposes listed in subparagraph (i) of this paragraph.
(4) “Public body” means:
(i) a unit;
(ii) a county;
(iii) a municipality in the State;
(iv) a school district in the State; or
(v) a special district in the State.
(b) Except as provided in subsection (c) of this section, a public body shall require a contractor or subcontractor to use or supply American manufactured goods in the performance of a contract for:
(1) constructing or maintaining a public work; or
(2) buying or manufacturing machinery or equipment that is to be installed at a public work site.
(c) This section does not apply:
(1) if the head of a public body determines that:
(i) the price of the American manufactured goods exceeds the price of a similar manufactured good that is not manufactured in the United States by an unreasonable amount;
(ii) the item or a similar item is not manufactured or available for purchase in the United States in reasonably available quantities;
(iii) the quality of the item or a similar item manufactured in the United States is substantially less than the quality of a comparably priced, similar, and available item that is not manufactured in the United States; or
(iv) the procurement of a manufactured good would be inconsistent with the public interest; or
(2) to emergency life safety and property safety goods.
(d) The Board of Public Works shall adopt regulations to define the following terms for the purposes of this section:
(1) “reasonably available”;
(2) “unreasonable amount”; and
(3) “substantially less”.
(a) (1) Except as provided in paragraph (2) of this subsection, on or after July 1, 2022, State funds may not be used to purchase or plant an invasive plant species for an outdoor project.
(2) The prohibition under paragraph (1) of this subsection does not apply if the plant species is commonly used for agricultural or horticultural purposes and is being maintained for the purposes of education or research.
(b) Each entity that receives State funding and each State agency shall prioritize, whenever possible, the use of plants native to the State for every planting project.
(a) (1) In this section the following words have the meanings indicated.
(2) “Hybrid vehicle” means an automobile that can draw propulsion energy from both of the following sources of stored energy:
(i) gasoline or diesel fuel; and
(ii) a rechargeable energy storage system.
(3) “Light–duty vehicle” means a vehicle with a gross weight of 8,500 pounds or less.
(4) “Passenger car” has the meaning stated in § 11–144.2 of the Transportation Article.
(5) “Zero–emission vehicle” has the meaning stated in § 23–206.4 of the Transportation Article.
(b) It is the intent of the General Assembly that 100% of:
(1) passenger cars in the State vehicle fleet be zero–emission vehicles by 2031; and
(2) other light–duty vehicles in the State vehicle fleet be zero–emission vehicles by 2036.
(c) This section does not apply to the purchase of vehicles:
(1) that have special performance requirements necessary for the protection and welfare of the public; or
(2) by the Department of Transportation or the Maryland Transit Administration that will be used to provide paratransit service.
(d) The State shall ensure that:
(1) (i) in fiscal years 2023 through 2025, inclusive, at least 25% of passenger cars purchased for the State vehicle fleet are zero–emission vehicles;
(ii) in fiscal years 2026 and 2027, at least 50% of passenger cars purchased for the State vehicle fleet are zero–emission vehicles;
(iii) beginning in fiscal year 2028, 100% of passenger cars purchased for the State vehicle fleet are zero–emission vehicles; and
(iv) beginning in fiscal year 2024, any passenger car purchased for the State vehicle fleet that is not a zero–emission vehicle is a hybrid vehicle; and
(2) (i) in fiscal years 2028 through 2030, inclusive, at least 25% of all other light–duty vehicles purchased for the State vehicle fleet are zero–emission vehicles;
(ii) in fiscal years 2031 and 2032, at least 50% of all other light–duty vehicles purchased for the State vehicle fleet are zero–emission vehicles; and
(iii) beginning in fiscal year 2033, 100% of all other light–duty vehicles purchased for the State vehicle fleet are zero–emission vehicles.
(e) The Department of General Services shall ensure the development of charging infrastructure to support the operation of zero–emission vehicles in the State vehicle fleet.
(f) (1) On or before December 1 each year, the Chief Procurement Officer shall submit to the General Assembly, in accordance with § 2–1257 of the State Government Article, an annual report that includes, for the immediately preceding fiscal year:
(i) the total number of passenger cars and other light–duty vehicles purchased by each unit;
(ii) the number of zero–emission passenger cars and other light–duty vehicles purchased by each unit;
(iii) the current percentage of passenger cars and other light–duty vehicles in the State vehicle fleet that are zero–emission vehicles;
(iv) any operational savings associated with the purchase and operation of zero–emission vehicles; and
(v) an evaluation of the charging infrastructure that exists to support the operation of zero–emission vehicles in the State vehicle fleet.
(2) Each unit shall cooperate with the Chief Procurement Officer in the collection and reporting of the information required under this subsection.
(a) In this subtitle the following words have the meanings indicated.
(b) “Certification agency” has the meaning stated in § 14–301 of this title.
(c) “Economically disadvantaged individual” has the meaning stated in § 14–301 of this title.
(d) “Small business” means:
(1) a certified minority business enterprise, as defined in § 14–301 of this title, that meets the criteria specified under item (3) of this subsection;
(2) a veteran–owned small business enterprise, as defined in § 14–601 of this title, that meets the criteria specified under item (3) of this subsection; or
(3) a business, other than a broker, that meets the following criteria:
(i) the business is independently owned and operated;
(ii) the business is not a subsidiary of another business;
(iii) the business is not dominant in its field of operation; and
(iv) 1. A. the wholesale operations of the business did not employ more than 50 persons in its most recently completed 3 fiscal years;
B. the retail operations of the business did not employ more than 25 persons in its most recently completed 3 fiscal years;
C. the manufacturing operations of the business did not employ more than 100 persons in its most recently completed 3 fiscal years;
D. the service operations of the business did not employ more than 100 persons in its most recently completed 3 fiscal years;
E. the construction operations of the business did not employ more than 50 persons in its most recently completed 3 fiscal years; and
F. the architectural and engineering services of the business did not employ more than 100 persons in its most recently completed 3 fiscal years; or
2. A. the gross sales of the wholesale operations of the business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal years;
B. the gross sales of the retail operations of the business did not exceed an average of $3,000,000 in its most recently completed 3 fiscal years;
C. the gross sales of the manufacturing operations of the business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal years;
D. the gross sales of the service operations of the business did not exceed an average of $10,000,000 in its most recently completed 3 fiscal years;
E. the gross sales of the construction operations of the business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal years; and
F. the gross sales of the architectural and engineering services of the business did not exceed an average of $4,500,000 in its most recently completed 3 fiscal years.
(e) “Small business reserve” means those procurements that are limited to responses from small businesses under § 14–502(c) of this subtitle.
(a) Except as provided in subsection (d) of this section, this subtitle applies to all procurements by a unit.
(b) This section does not apply to procurements subject to Subtitle 1 of this title.
(c) To the extent practicable, a unit shall structure its procurement procedures to achieve a minimum of 20% of the unit’s total dollar value of goods, supplies, services, maintenance, construction, construction–related services, and architectural and engineering service contracts to be made directly to small businesses.
(d) The total dollar value of procurements by a unit does not include the value of contracts to which this section does not apply because of a conflict with federal law.
(e) A 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.
(f) (1) The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Attorney General, shall establish standards and guidelines for participation in the Small Business Reserve Program every 5 years.
(2) The standards and guidelines established under paragraph (1) of this subsection shall allow for the registration of businesses for participation in the Small Business Reserve Program without the need to file any additional paperwork other than evidence that the business:
(i) is a small business under this subtitle; and
(ii) 1. is certified as a minority business enterprise under Subtitle 3 of this title;
2. is certified under the federal Disadvantaged Business Enterprise Program; or
3. is qualified as a small business under Subtitle 2 of this title.
(a) (1) This section applies to a procurement by any unit or agency of the Executive Branch of State government for goods, supplies, services, maintenance, construction, construction–related services, architectural services, or engineering services.
(2) This section does not apply to:
(i) procurements made under Subtitle 1 of this title;
(ii) procurements involving expenditures of federal dollars, to the extent that inclusion in the small business reserve program conflicts with federal law or grant provisions;
(iii) the procurement of human, social, cultural, or educational services; or
(iv) term and master contracts exempted under subsection (c) of this section.
(b) (1) A procurement with a total dollar value of $1,000,000 or less shall be designated for the small business reserve.
(2) Each unit or agency shall implement this subsection in a manner consistent with all applicable statutes, including the requirements of Subtitle 3 of this title.
(c) (1) A procurement may be exempt from designation under subsection (b) of this section if the Governor’s Office of Small, Minority, and Women Business Affairs certifies, concurrently with review of any waiver determinations for certified minority business enterprise participation contract goals, that it is not practicable to do so.
(2) The Office of State Procurement in the Department of General Services shall assist the Governor’s Office of Small, Minority, and Women Business Affairs in establishing procedures and guidelines for the exemption of procurements under paragraph (1) of this subsection.
(a) The Governor’s Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish procedures for compiling and maintaining a comprehensive bidder’s list of qualified small businesses that shall be posted on the Internet.
(b) The Governor’s Office of Small, Minority, and Women Business Affairs shall:
(1) establish guidelines for Small Business Reserve Program administration;
(2) ensure agency compliance with the Small Business Reserve Program;
(3) provide training and technical assistance to agency personnel; and
(4) collect data regarding the State’s utilization of small business reserve vendors.
(c) Each unit shall ensure compliance with the regulations set forth in subsection (a) of this section.
(a) Any procurement by a unit of goods, supplies, services, maintenance, construction, construction–related services, architectural services, and engineering services shall be eligible for designation for the small business reserve.
(b) A solicitation for procurement that has been designated for a small business reserve shall be published in the same manner as required for an invitation for bids as set forth in § 13–103(c) of this article.
(c) The procurement officer of a unit shall award a procurement contract designated for a small business reserve to the small business that submits a responsive bid or a proposal that is reasonably susceptible of being selected for award that:
(1) is the lowest bid price;
(2) if the invitation for bids so provides, is the lowest evaluated bid price; or
(3) is the bid or proposal most favorable to the State within the small business reserve.
(a) The certification agency, in consultation with the Governor’s Office of Small, Minority, and Women Business Affairs, shall develop an outreach program to increase the participation of small businesses that are owned by economically disadvantaged individuals participating in the Small Business Reserve Program.
(b) On or before December 1 each year, the certification agency shall submit to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a report on:
(1) the status of the outreach program required under subsection (a) of this section; 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.
(a) Within 60 days after the enactment of the budget bill by the General Assembly, each unit shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs that complies with the reporting requirements set forth in COMAR 21.11.01.06.
(b) (1) Within 90 days after the end of each fiscal year, each unit shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs that complies with the requirements of paragraph (2) of this subsection.
(2) For the preceding fiscal year, the report shall:
(i) state the total number and the dollar value of awards the unit made to small businesses under designated small business reserve contracts;
(ii) state the total number and the dollar value of awards the unit made to small businesses under nondesignated small business reserve contracts, including purchase card procurements;
(iii) state the total dollar value of awards the unit made under procurement contracts; and
(iv) contain other such information as required by the Governor’s Office of Small, Minority, and Women Business Affairs.
(c) On or before December 31 of each year, the Governor’s Office of Small, Minority, and Women Business Affairs shall submit to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a report summarizing the information the Office receives under subsection (b) of this section.
(a) In this subtitle the following words have the meanings indicated.
(b) “Veteran” means an individual who is verified to be a veteran, as defined in § 9–901 of the State Government Article.
(c) “Veteran–owned small business enterprise” means a for–profit business that:
(1) meets the size standards adopted by the United States Small Business Administration in 13 C.F.R. 121.201 and any subsequent revision of that regulation; and
(2) is at least 51% owned by one or more individuals who:
(i) are veterans; and
(ii) control the management and daily operations of the business.
(a) (1) A unit shall structure procurement procedures, consistent with the purposes of this subtitle, to try to achieve or exceed an overall percentage goal of the unit’s total dollar value of procurement contracts to be made directly or indirectly with veteran–owned small business enterprises.
(2) The Office of Small, Minority, and Women Business Affairs shall adopt regulations that establish the overall percentage goal.
(b) Solicitation documents shall state the expected percentage of veteran–owned small business enterprise participation based, in part, on:
(1) the potential contracting opportunities available in the procurement contract, including both prime contracting and subcontracting opportunities, as determined through analysis of the scope of the work presented in the solicitation documents; and
(2) the availability of veteran–owned small business enterprises to respond competitively to the potential contracting opportunities.
(c) (1) (i) This paragraph applies to a bidder or offeror after submission of a bid or proposal and before the execution of a contract with an expected degree of veteran–owned small business enterprise participation.
(ii) 1. If a unit’s procurement officer determines that a deficiency exists in the veteran–owned small business enterprise participation schedule, the procurement officer shall notify the bidder or offeror of the deficiency and require the bidder or offeror to submit an amended veteran–owned small business enterprise participation schedule within a reasonable time period.
2. A determination under subsubparagraph 1 of this subparagraph shall be made in consultation with the unit’s veteran–owned small business enterprise liaison.
3. As directed by the notification made under subsubparagraph 1 of this subparagraph, the bidder or offeror shall submit an amended veteran–owned small business enterprise participation schedule correcting the deficiency identified.
(2) (i) Subject to subparagraph (ii) of this paragraph, a unit may consider modifying the veteran–owned small business participation goal on a procurement contract:
1. at any time prior to contract execution; or
2. after contract execution, when determined to be in the best interest of the State.
(ii) Before a unit may consider modifying a veteran–owned small business participation goal under subparagraph (i) of this paragraph, the unit shall:
1. make a determination that there has been a change in the factors established under subsection (b) of this section;
2. use the factors established under subsection (b) of this section to determine the percentage modification to the veteran–owned small business participation goal; and
3. obtain the agreement of the contractor, including any reasonable pricing considerations.
(3) The veteran–owned small business enterprise participation schedule, including any amendment, shall be attached to and made a part of the executed contract.
(4) A veteran–owned small business enterprise participation schedule may be amended to modify the veteran–owned small business enterprise participation after the date of contract execution only if:
(i) it is in the best interest of the State;
(ii) it is approved by the head of the unit; and
(iii) the contract is amended.
(d) The provisions of this subtitle do not apply to a unit’s procurement procedures to the extent that any unit determines that those provisions are in conflict with an applicable federal program.
(a) In this section, “veteran–owned small business reserve” means those procurements that are limited to responses from businesses that qualify as a veteran–owned small business enterprise.
(b) (1) Except as provided in paragraph (2) of this subsection, this section applies to all procurements by the Department of Veterans and Military Families and the Military Department or any unit acting on behalf of the Department of Veterans and Military Families or the Military Department.
(2) This section does not apply to:
(i) procurements made under Subtitle 1 of this title; or
(ii) procurements involving expenditures of federal dollars, to the extent that the requirements in this section conflict with federal law or other grant provisions.
(c) Notwithstanding Subtitle 5 of this title, any procurement by the Department of Veterans and Military Families or the Military Department of goods, supplies, services, maintenance, construction, construction related services, architectural services, and engineering services shall be eligible for designation for the veteran–owned small business reserve.
(d) The Governor’s Office of Small, Minority, and Women Business Affairs shall:
(1) in consultation with the Chief Procurement Officer and the Attorney General, establish standards and guidelines for participation in the veteran–owned small business reserve program every 5 years;
(2) establish guidelines for veteran–owned small business reserve program administration; and
(3) collect data regarding the Department of Veterans and Military Families’ and the Military Department’s use of veteran–owned small business reserve vendors.
(a) For procurements conducted by competitive sealed bidding, a unit shall award the contract to the responsible bidder that submits the responsive bid that:
(1) (i) has the lowest bid price;
(ii) has the lowest evaluated bid price; or
(iii) for procurements subject to § 11–202(3) of this article, is the bid most favorable to the State; and
(2) meets or makes a good faith effort to meet any applicable overall percentage goal established under this subtitle.
(b) For procurements conducted by competitive sealed proposals, a unit shall award the contract to the responsible offeror:
(1) proposing the most advantageous offer; and
(2) that meets or makes a good faith effort to meet any applicable overall percentage goal established under this subtitle.
The Governor’s Office of Small, Minority, and Women Business Affairs shall:
(1) adopt regulations to implement this subtitle;
(2) establish procedures for tracking and reporting participation of veteran–owned small business enterprises under this subtitle; and
(3) on or before December 1 of each year, report to the Legislative Policy Committee on:
(i) the number and dollar value of contracts awarded to veteran–owned small business enterprises under this subtitle, including the total dollar value of payments made to veteran–owned small business enterprises under existing contracts; and
(ii) an evaluation of the effectiveness of the program under this subtitle.
(a) (1) In this section the following words have the meanings indicated.
(2) “Advisory Committee” means the Advisory Committee on Veteran–Owned Small Business Enterprises.
(3) “Office” means the Office of Small, Minority, and Women Business Affairs.
(4) “Special Secretary” means the Special Secretary for the Office.
(b) The Office shall establish an Advisory Committee on Veteran–Owned Small Business Enterprises.
(c) The Special Secretary shall be Chair of the Advisory Committee and the Office shall provide staff support.
(d) The Advisory Committee consists of individuals that the Special Secretary considers will assist the Office in studying and developing policies to further the purposes of this subtitle, including representatives from:
(1) the Department of Commerce;
(2) the Department of General Services;
(3) the Governor’s Office of Performance Improvement;
(4) the Department of Veterans and Military Families; and
(5) certified veteran–owned small business enterprises.
(e) The Advisory Committee shall meet at least two times each year.
(f) The Advisory Committee shall:
(1) review the annual report and evaluation submitted to the Legislative Policy Committee in accordance with § 14–604 of this subtitle to:
(i) identify any areas of the program that need improvement; and
(ii) recommend possible actions that may achieve the necessary improvements; and
(2) ensure that a continuous oversight and improvement structure exists for the program.
(a) A person may not:
(1) knowingly and with intent to defraud, fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain, public money, procurement contracts, or funds expended under a procurement contract to which the person is not entitled under this article;
(2) knowingly and with intent to defraud, fraudulently represent participation of a veteran–owned small business enterprise in order to obtain or retain a bid preference or a procurement contract;
(3) willfully and knowingly make or subscribe to any statement, declaration, or other document that is fraudulent or false as to any material matter, whether or not that falsity or fraud is committed with the knowledge or consent of the person authorized or required to present the declaration, statement, or document;
(4) willfully and knowingly aid, assist in, procure, counsel, or advise the preparation or presentation of a declaration, statement, or other document that is fraudulent or false as to any material matter, regardless of whether that falsity or fraud is committed with the knowledge or consent of the person authorized or required to present the declaration, statement, or document;
(5) willfully and knowingly fail to file any declaration or notice with the unit that is required by this subtitle; or
(6) establish, knowingly aid in the establishment of, or exercise control over a business found to have violated a provision of items (1) through (5) of this subsection.
(b) (1) A person who violates any of the provisions of subsection (a) of this section shall be guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both.
(2) In addition to the penalties under paragraph (1) of this subsection, a person who violates any of the provisions of subsection (a) of this section shall be:
(i) for the first offense, liable for a civil penalty of not less than $10,000 and not exceeding $30,000; and
(ii) for a subsequent offense, liable for a civil penalty of not less than $30,000 and not exceeding $50,000.
(3) A person who violates any of the provisions of subsection (a) of this section shall pay all costs and attorney’s fees incurred by the plaintiff in a civil action brought under this subtitle.
(c) The Board shall prohibit a business or person who fails to satisfy the penalties, costs, and attorney’s fees imposed under subsection (b) of this section from further contracting with the State until the penalties are satisfied.
(d) (1) A unit shall report all alleged violations of this section to the Board.
(2) The Board subsequently shall report all alleged violations of this section to the Office of the Attorney General, which shall determine whether to bring a civil action against a person or business for a violation of this section.
In addition to the penalties under § 14–605(b) of this subtitle, a person that willfully misrepresents a business as a veteran–owned small business enterprise for purposes of obtaining or retaining a contract or subcontract may be subject to:
(1) suspension or debarment under Title 16 of this article; or
(2) civil penalties under the Maryland False Claims Act under Title 8 of the General Provisions Article.
(a) In this subtitle the following words have the meanings indicated.
(b) “Certified Chesapeake invasive species” means a finfish species that is:
(1) ranked as high priority in the Maryland Aquatic Nuisance Species Management Plan; and
(2) harvested from the Chesapeake Bay or its tributaries.
(c) “Certified Chesapeake invasive species provider” means a person licensed and authorized as a seafood dealer under § 4–701 of the Natural Resources Article that:
(1) is certified by the Department in accordance with regulations adopted under this subtitle; and
(2) can demonstrate that the person’s product is a certified Chesapeake invasive species.
(d) “Certified local farm” means a local farm enterprise that:
(1) meets the nutrient management requirements established under Title 8, Subtitle 8 of the Agriculture Article; and
(2) is certified by the Department in accordance with regulations adopted under this subtitle.
(e) “Department” means the Department of Agriculture.
(f) “Office” means the Office for the Certified Local Farm and Fish Program.
(g) “Program” means the Certified Local Farm and Fish Program.
(a) (1) There is an Office for the Certified Local Farm and Fish Program in the Department.
(2) The purpose of the Office is to administer the Program and facilitate the participation of certified local farms and certified Chesapeake invasive species providers in the Program.
(b) (1) There is a Certified Local Farm and Fish Program in the Office.
(2) The purpose of the Program is to encourage each unit to try to achieve an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts for food from certified local farms and certified Chesapeake invasive species providers.
(c) The Department shall create two positions to provide staff for the Office.
(d) The Department, along with the Department of General Services, shall coordinate with the State Department of Education to procure local food for local school systems in accordance with § 7–136 of the Education Article.
(a) (1) Each unit shall structure procurement procedures, consistent with the purposes of this subtitle, to try to achieve an overall percentage goal of 20% of the unit’s total dollar value of procurement contracts for food being made directly or indirectly to certified local farms and certified Chesapeake invasive species providers.
(2) A unit may achieve the 20% goal through:
(i) competitive sealed bids and proposals; and
(ii) small procurement in accordance with § 13–109 of this article.
(3) For procurements conducted by competitive sealed bidding, a unit shall award the contract to the responsible bidder that submits the responsive bid that:
(i) 1. has the lowest bid price;
2. has the lowest evaluated bid price; or
3. for procurements subject to § 11–202(3) of this article, is the bid most favorable to the State; and
(ii) meets or makes a good faith effort to meet any applicable goal established under this subtitle.
(4) For procurements conducted by competitive sealed proposals, a unit shall award the contract to the responsible offeror:
(i) proposing the most advantageous offer; and
(ii) that meets or makes a good faith effort to meet any applicable goal established under this subtitle.
(b) The Office, in consultation with the Secretary of Agriculture, shall establish guidelines for each unit to consider when determining the appropriate local farm and Chesapeake invasive species provider participation percentage goal for a procurement contract for food in accordance with subsection (c) of this section.
(c) Each unit shall:
(1) consider the practical severability of all procurement contracts for food and, in accordance with § 11–201 of this article, may not bundle contracts;
(2) implement a program that will enable the unit to evaluate each procurement contract for food to determine the appropriate local farm and Chesapeake invasive species provider participation goals, if any, for the contract based on:
(i) the availability of certified local farms and certified Chesapeake invasive species providers to respond competitively to contract opportunities; and
(ii) the contract goal guidelines established under subsection (b) of this section;
(3) monitor and collect data with respect to a unit’s compliance with contract goals, including explanations for failing to meet contract goals; and
(4) institute corrective action when a unit does not make good faith efforts to comply with contract goals.
(d) The Office shall, in consultation with the Secretary of Agriculture, establish procedures governing how the participation of certified local farms and certified Chesapeake invasive species providers is counted toward contract goals under the Program.
(e) (1) (i) If a unit does not achieve the certified local farm and certified Chesapeake invasive species provider participation goals on a procurement contract for food, the unit shall demonstrate to the Office that the unit took all necessary and reasonable steps to achieve the goals.
(ii) A waiver of any part of the certified local farm and certified Chesapeake invasive species provider goals for a procurement contract for food shall be granted if a unit provides to the Office a reasonable demonstration of good faith efforts to achieve the goals.
(2) The Office may waive any of the requirements of this subsection relating to the establishment, use, and waiver of certified local farm and certified Chesapeake invasive species provider goals for a sole source, expedited, or emergency procurement in which the public interest cannot reasonably accommodate use of those requirements.
(3) Except for waivers granted in accordance with paragraph (2) of this subsection, when a waiver determination is made, the Office shall issue the determination in writing.
(4) On or before October 31 each year, the Office shall submit directly to the Board an annual report of waivers requested and waivers granted under this subsection.
(5) The report required under paragraph (4) of this subsection shall contain the following information on those procurement contracts for food where the Office considered a unit’s request for waiver of all or a portion of the local farm and Chesapeake invasive species provider goals:
(i) the contract titles, numbers, and dates;
(ii) the number of waiver requests received;
(iii) the number of waiver requests granted; and
(iv) any other information specifically requested by the Board.
(f) The Board shall keep a record of information regarding any waivers requested in accordance with this section and submit a copy of the record to the Senate Committee on Education, Energy, and the Environment and the House Health and Government Operations Committee on or before December 31 each year, in accordance with § 2–1257 of the State Government Article.
(a) In accordance with Title 10, Subtitle 1 of the State Government Article, the Office shall adopt regulations to implement this subtitle.
(b) The regulations shall establish procedures to be followed by units, certified local farms and certified Chesapeake invasive species providers, and successful bidders or offerors to maximize notice to, and the opportunity to participate in the food procurement process by, a broad range of local farms and Chesapeake invasive species providers.
(c) The regulations shall include provisions:
(1) designating the Office to certify and decertify local farms and Chesapeake invasive species providers for all units through a single process, including provisions that promote and facilitate the submission of some or all of the certification application through an electronic process;
(2) specifying that a unit may not allow a local farm or Chesapeake invasive species provider to participate as if it were a certified local farm or certified Chesapeake invasive species provider if the local farm’s or Chesapeake invasive species provider’s certification is pending;
(3) consistent with this subtitle, relating to any circumstances under which the Office may waive obligations of a unit relating to certified local farm and certified Chesapeake invasive species provider participation goals; and
(4) that the Office considers necessary or appropriate to:
(i) encourage participation by local farms and Chesapeake invasive species providers; and
(ii) protect the integrity of the procurement process.
(a) In the same manner and with the same fees as provided by law in civil cases, in a matter regarding the decertification of a certified local farm or certified Chesapeake invasive species provider, the Office may:
(1) subpoena witnesses;
(2) administer oaths; and
(3) compel the production of records, books, papers, and other documents.
(b) If a person fails to comply with a subpoena issued under subsection (a) of this section, or fails to produce documents or other evidence, on petition of the Office, a court of competent jurisdiction may pass an order directing compliance with the subpoena or compelling the production of documents or other evidence.
(c) The Office shall make available a fraud hotline for reporting violations of this section.
(a) Within 90 days after the end of the fiscal year, each unit shall report to the Office.
(b) A report under this section for the preceding fiscal year shall:
(1) state the total number and value of procurement contracts for food between the unit and certified local farms and certified Chesapeake invasive species providers;
(2) indicate the percentage that those procurement contracts for food represent of the total number and value of procurement contracts for food awarded by a unit;
(3) state the total number and the names of certified local farms and certified Chesapeake invasive species providers that participated in procurement contracts for food awarded by a unit;
(4) for each certified local farm or certified Chesapeake invasive species provider included in the report under item (3) of this subsection, list all procurement contracts for food awarded by a unit to the certified local farm or certified Chesapeake invasive species provider, including a description of the contract; and
(5) contain other such information as required by the Office, subject to approval by the Board.
(c) A report under this section shall be:
(1) in a form prescribed by the Office; and
(2) approved by the Board.
(d) On or before December 31, 2023, and each December 31 thereafter, the Office shall submit a consolidated report to the Senate Committee on Education, Energy, and the Environment and the House Health and Government Operations Committee, in accordance with § 2–1257 of the State Government Article, on Program implementation and participation.
(a) (1) The Department shall develop and maintain a directory of all certified local farms and certified Chesapeake invasive species providers.
(2) The directory shall be accessible to the public on the Department’s website.
(b) The Department shall include the following information for each certified local farm and certified Chesapeake invasive species provider included in the directory:
(1) all contract information available to the Department for the certified local farm or certified Chesapeake invasive species provider;
(2) the certification number of the certified local farm or certified Chesapeake invasive species provider; and
(3) any other information the Department considers necessary or appropriate to encourage participation in the procurement process by local farms and Chesapeake invasive species providers.
(c) The Department shall:
(1) update the directory at least once a year; and
(2) identify as recently certified in the directory each local farm and Chesapeake invasive species provider that has obtained certification during the calendar year.
(a) There is a Certified Local Farm and Fish Food Aggregation Grant Fund.
(b) The purpose of the Fund is to support the creation of food aggregation, storage, processing, and distribution sites across the State through grants and near–equity investments.
(c) The Maryland Agricultural and Resource–Based Industry Development Corporation shall administer the Fund.
(d) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) principal that is repaid from near–equity investments; and
(3) any other money from any other source accepted for the benefit of the Fund.
(e) The Fund may be used only for establishing and operating food aggregation, storage, processing, and distribution sites across the State through grants and near–equity investments.
(a) In this subtitle the following words have the meanings indicated.
(b) “Covered procurement” means a procurement contract that:
(1) meets the criteria established by the Chief Procurement Officer, in consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the Secretary of Information Technology, under § 14–802 of this subtitle; and
(2) is not a public work contract subject to § 17–202 of this article.
(c) “Department” means the Maryland Department of Labor.
(d) “Eligible internship program” means an internship program that requires a contractor or other entity to provide paid internships that meet standards established by the Secretary.
(e) “Registered apprenticeship program” means an apprenticeship program that is registered with and approved by the Division of Workforce Development and Adult Learning.
(f) “Secretary” means the Secretary of Labor.
(a) This subtitle applies to a covered procurement made by a unit.
(b) A contractor awarded a covered procurement with an estimated total dollar value of $1,000,000 or more shall utilize an eligible internship program.
(c) A contractor awarded a covered procurement shall utilize a registered apprenticeship program.
(d) The Chief Procurement Officer, in consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the Secretary of Information Technology:
(1) shall adopt regulations establishing the definition of “covered procurement”; and
(2) may adopt:
(i) regulations to improve the recruitment or skills of employees of vendors; or
(ii) other regulations necessary to carry out this subtitle, including waiver processes.
(a) A contractor that submits a bid or proposal for a covered procurement shall provide to a unit written verification of:
(1) the number of apprentices or interns that will be utilized throughout the contract term, including potential renewal options;
(2) the work to be performed by apprentices in a registered apprenticeship program or interns in an eligible internship program; and
(3) the duration of the apprenticeship or the internship.
(b) The written verification required under subsection (a) of this section shall be provided before the contractor may be awarded a contract for a covered procurement.
(a) The Secretary is responsible for ensuring compliance with the requirements of this subtitle.
(b) The Secretary shall establish criteria to assist units in ensuring contractor compliance with this subtitle, including:
(1) penalties for a contractor’s failure to use apprentices or interns as provided in a bid or proposal; and
(2) procedures for reporting alleged violations of this subtitle.
(a) A contractor that is awarded a contract for a covered procurement under this subtitle who fails to use apprentices from a registered apprenticeship program or interns from an eligible internship program as provided in the bid or proposal shall be liable for an amount as specified by the criteria established under § 14–804 of this subtitle.
(b) A unit shall report alleged violations of this subtitle to the Department as specified in the criteria established under § 14–804 of this subtitle.
(c) The Department shall report alleged violations of this subtitle to the Office of the Attorney General, which shall determine whether to bring a civil action against a person or business for a violation of this subtitle.
(d) Penalties shall be recoverable in civil actions and paid to the State Apprenticeship Training Fund established under § 17–602 of this article, unless otherwise required by federal law.
(e) The Secretary may file suit to enforce this subtitle in any court of competent jurisdiction.
(f) In an action filed under this section, the court shall require the contractor to pay the amount required by subsection (a) of this section, including interest, reasonable attorney’s fees, and court costs.
(a) In this subtitle the following words have the meanings indicated.
(b) “Commissioner” means the Commissioner of Labor and Industry.
(c) “Good labor practices evaluation factor” means a factor for good labor practices that will be used to evaluate technical proposals received for procurements being conducted through the competitive sealed proposals procurement method under § 13–104 of this article.
(d) “Public body” has the meaning stated in § 17–201 of this article.
(e) “Public work contract” has the meaning stated in § 17–201 of this article.
This subtitle applies to:
(1) public work contracts procured by a public body; and
(2) a contract subject to § 18–102 of this article.
(a) To qualify for application of the good labor practices evaluation factor, a business must attest by affidavit that, on any contract subject to this subtitle that it is awarded or under which it performs any work, the business will:
(1) directly employ, as W–2 employees, all workers performing tasks on behalf of the business, except for a person exempt under Title 3, Subtitle 9 of the Labor and Employment Article, under the contract;
(2) pay all workers by check or electronic means as available and not in cash or cash equivalent;
(3) strictly comply with all legal obligations as an employer, including its obligations as an employer under Title 3, Title 5, Title 8, or Title 9 of the Labor and Employment Article and, as applicable, under Title 17 or Title 18 of this article;
(4) provide advance written notification to the procurement authority and to the Maryland Department of Labor, Division of Labor and Industry, in a form to be determined by the Commissioner, of any subcontractors performing work under the contract;
(5) provide written notice of the requirements of items (1), (2), and (3) of this subsection to any subcontractors performing work under the contract;
(6) obtain written acknowledgment of the notice provided in item (5) of this subsection and of the subcontractor’s agreement to adhere to those requirements, to be filed with the Commissioner, in a form and manner determined by the Commissioner;
(7) successfully complete a comprehensive consultation visit by the Maryland Occupational Safety and Health Program within a reasonable time determined by the Commissioner, following the start of work under the contract;
(8) be jointly and severally liable as an employer for any violation of a subcontractor under Title 17 or Title 18 of this article in connection with the subcontractor’s performance of work under the contract;
(9) promptly disclose to the Commissioner, in a form and manner to be prescribed by the Commissioner, any suits, charges, demands, orders, findings, or adjudications made against it in connection with violations subject to item (1), (2), or (3) of this subsection or against any of its subcontractors as provided in item (8) of this subsection; and
(10) on contracts subject to § 18–102 of this article, provide proof that the business has secured a payment bond sufficient to ensure payment of wages to all employees performing work under the contract.
(b) A procurement officer who receives a proposal for a competitive sealed proposal procurement that is submitted with the affidavit described under subsection (a) of this section shall evaluate the proposal with the good labor practices evaluation factor.
(c) The Commissioner shall:
(1) maintain a list for the preceding 12 months of all businesses that have submitted the affidavit described under subsection (a) of this section, confirming adherence to good labor practices;
(2) provide the list in item (1) of this subsection to all procurement officers at least once every 6 months and on request; and
(3) publish the list in item (1) of this subsection on the Maryland Department of Labor’s public website.
(d) If the Commissioner determines that a business is not following good labor practices, as described in subsection (a) of this section:
(1) the Commissioner shall remove the business from the list maintained under subsection (c)(1) of this section; and
(2) the business may not be eligible for the good labor practices evaluation factor for 12 months following the determination made under this subsection.
(e) The Chief Procurement Officer, in consultation with the Commissioner, may adopt regulations to implement the provisions of this subtitle.
(a) A good labor practices evaluation factor for good labor practices described in § 14–903(a) of this subtitle shall be included in the technical evaluation factors for competitive sealed proposals for a proposal submitted for a contract described in § 14–902 of this subtitle.
(b) The good labor practices evaluation factor shall be:
(1) if a point system is used for evaluation of proposals, 10% of the total allocable technical points; or
(2) if a point system is not used for evaluation of proposals, ranked in its relative order of importance.
(a) A person may not engage in conduct prohibited under § 14–605(a) or § 14–606 of this title in connection with any act undertaken to qualify for a good labor practices evaluation factor.
(b) The penalties established in §§ 14–605(b) and (c) and 14–606 of this title apply to violations of this subtitle.
In addition to the penalties established under § 14–905 of this subtitle, a person that willfully misrepresents or willfully omits any material matter in connection with an application or required disclosure for purposes of obtaining or retaining a contract or subcontract under this subtitle may be subject to:
(1) suspension or debarment under Title 16 of this article; or
(2) civil penalties under the Maryland False Claims Act.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
(a) In this subtitle the following words have the meanings indicated.
(b) “Covered procurement” means a procurement that is valued at less than $80,000,000.
(c) “ESOP evaluation factor” means a preference for an ESOP offeror that a unit may include in the evaluation of proposals.
(d) “ESOP offeror” means a responsible offeror who utilizes an employee stock ownership plan approved under § 401(a) of the Internal Revenue Code.
(e) “Unit” means the Maryland Stadium Authority, a university, or the Baltimore City Community College.
(f) “University” means Morgan State University or St. Mary’s College of Maryland.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
This subtitle applies to a covered procurement of:
(1) the Maryland Stadium Authority;
(2) a university; or
(3) Baltimore City Community College.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
Subject to the approval of the Board, each unit may establish an evaluation factor, not to exceed 10%.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
(a) A unit may include an ESOP evaluation factor in the technical evaluation for a competitive sealed proposal under § 13–104 of this article for a contract subject to this subtitle.
(b) An ESOP evaluation factor may be:
(1) if a point system is used for evaluation of proposals, up to the percentage of the total allocable technical points authorized under § 14–1003 of this subtitle; or
(2) if a point system is not used for evaluation of proposals, ranked in its relative order of importance.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
(a) A contractor that is awarded a contract for a covered procurement shall provide to a unit, as a condition of receiving the contract, written verification of the IRS determination letter for the contractor’s employee stock ownership plan.
(b) The written verification required under subsection (a) of this section shall be provided by a contractor to the unit responsible for the project with the submission of a proposal.
IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTERS 736 AND 737 OF 2025 //
On or before December 1, 2028, the Maryland Stadium Authority, Baltimore City Community College, Morgan State University, and St. Mary’s College of Maryland shall submit a report, in accordance with § 2–1257 of the State Government Article, to the Legislative Policy Committee, the Senate Budget and Taxation Committee, and the House Health and Government Operations Committee, on:
(1) the number and dollar value of contracts awarded in accordance with this subtitle to ESOP offerors during fiscal years 2026, 2027, and 2028; and
(2) an evaluation of the effectiveness of the Employee Stock Ownership Plan Preference Program.
In this subtitle, “invoice” means an invoice that meets the requirements of § 15-102 of this subtitle.
A contractor who submits an invoice for a procurement contract shall include in the invoice:
(1) the contractor’s federal employer’s identification number or Social Security number;
(2) the procurement contract or purchase order number or another adequate description of the procurement contract; and
(3) any documentation required by regulation or the procurement contract.
(a) It is the policy of the State to make a payment under a procurement contract:
(1) within 30 days after the day on which the payment becomes due and the unit receives a proper invoice; or
(2) for a small business reserve contract, within 15 days after the day on which the payment becomes due and the unit receives a proper invoice.
(b) Interest shall accrue in accordance with § 15–104 of this subtitle.
(a) Except as provided in § 15–105 of this subtitle, interest shall accrue at the rate of 9% per annum on any amount that:
(1) is due and payable by law and under the written procurement contract; and
(2) remains unpaid more than 37 days after a unit receives an invoice.
(b) Interest shall accrue beginning on the 31st day after:
(1) the day on which payment becomes due under a procurement contract; or
(2) if later, the day on which the unit receives an invoice.
A unit is not liable under § 15-104 of this subtitle for interest:
(1) unless within 30 days after the date on the State’s check for the amount on which the interest accrued, the contractor submits an invoice for the interest;
(2) if a contract claim has been filed under Subtitle 2 of this title;
(3) accruing more than 1 year after the 31st day after the unit receives an invoice; or
(4) on an amount that represents unpaid interest.
The Governor shall resolve a dispute among units as to which unit is responsible for a delayed payment under a procurement contract.
After a unit pays a semifinal estimate on a procurement contract, the unit shall place any retainage remaining in its possession in an interest bearing escrow account.
(a) This section does not apply to any procurement contract funded with tax-exempt financing.
(b) (1) Subject to the requirements of this section, a contractor under a procurement contract that a unit awards for construction is entitled to have retainage under the procurement contract placed in an escrow account if the contractor:
(i) elects that procedure in the procurement contract in the space provided for that election; and
(ii) submits to the unit an escrow agreement that meets the requirements of subsection (c) of this section.
(2) The procurement contract shall identify the escrow agent.
(c) The escrow agreement shall:
(1) be on a form that the unit provides;
(2) include the complete address of both the escrow agent and the surety;
(3) authorize the unit to pay retainage to the escrow agent; and
(4) be signed by:
(i) the contractor;
(ii) the surety for the contractor; and
(iii) the escrow agent.
(d) On compliance with the requirements of subsection (b) of this section, the unit shall pay the retainage to the escrow agent unless:
(1) federal money is involved and application of this section would jeopardize timely recovery of that federal money; or
(2) retainage is withheld for:
(i) lack of progress on the part of the contractor; or
(ii) other violations by the contractor.
(e) In accordance with the escrow agreement, a contractor may require an escrow agent:
(1) to invest the retainage placed in the escrow account; and
(2) to the extent the contractor is entitled to retainage under subsection (f)(2)(ii) of this section, to pay the earnings on the investment to the contractor.
(f) (1) Retainage may be released to the contractor only as directed by the unit.
(2) At the time of final payment, the unit shall direct the escrow agent to settle the escrow account by distributing money in the escrow account in the following order:
(i) to the unit for any claim it may have against the contractor under the procurement contract;
(ii) unless waived by the Board, to the Comptroller for any claim exceeding $50 against the contractor by the State, a unit, or a State controlled governmental entity; and
(iii) to the contractor.
(a) At reasonable times an inspection may be conducted of a plant, place of business, or job site of:
(1) a bidder or offeror seeking a procurement contract;
(2) any contractor under a procurement contract;
(3) a subcontractor under a procurement contract; or
(4) a prospective subcontractor of:
(i) a bidder or offeror seeking a procurement contract; or
(ii) a contractor under a procurement contract.
(b) An inspection under this section may be conducted by:
(1) the Department of Legislative Services;
(2) the unit engaged in procurement; or
(3) as authorized by law, any other unit.
(a) The following persons are subject to an audit of books, accounts, or records:
(1) before the expiration of the period of retention under subsection (c) of this section, a person who submits cost and price information under § 13-220 of this article, if the books, accounts, or records being audited are reasonably connected with the cost and price information;
(2) a contractor or subcontractor under a procurement contract if, from an audit of a cost-type contract, the unit has reason to believe that costs have been inappropriately assigned to the cost-type contract from a fixed-price contract; and
(3) a contractor or subcontractor under a procurement contract that:
(i) was awarded by a method other than competitive sealed bids; and
(ii) is not a firm fixed-price procurement contract.
(b) An audit under this section may be conducted by:
(1) the Department of Legislative Services;
(2) a unit engaged in procurement; or
(3) as authorized by law, any other unit.
(c) A person subject to an audit under subsection (a) of this section shall keep books, accounts, and records for:
(1) at least 3 years after the day on which the person receives final payment under a procurement contract or a subcontract; or
(2) if longer, the period required under the procurement contract.
(a) Within 60 days after the end of each fiscal year, each primary procurement unit shall submit to the Chief Procurement Officer a report on each procurement contract that was awarded during the preceding fiscal year, whether the procurement was conducted by the primary procurement unit or subject to review by the primary procurement unit, and:
(1) was exempt from the notice requirements of § 13–103(c) of this article because the procurement officer reasonably expected that the procurement contract would be performed entirely outside this State and the District of Columbia;
(2) cost more than the small procurement amount specified in § 13–109 of this article and was awarded for the procurement of services, construction related services, architectural services, or engineering services; or
(3) was awarded on the basis of:
(i) § 13–107 of this article (“Sole source procurement”);
(ii) § 13–108(a) of this article (“Emergency procurement”); or
(iii) § 13–108(c) of this article (“Expedited procurement”).
(b) (1) A report required under subsection (a)(2) or (3) of this section shall include:
(i) the name of each contractor;
(ii) the type and cost of the procurement contract; and
(iii) a description of the procurement.
(2) A report required under subsection (a)(3) of this section shall include:
(i) a description of the basis for the award;
(ii) the identity of the department or agency that awarded the contract;
(iii) the identity of any agency official required to authorize the contract for award;
(iv) the award date of the procurement contract and the final date of the contract term;
(v) the date the contract award was posted to eMaryland Marketplace; and
(vi) for procurements awarded under § 13–108(b) of this article (“Emergency procurement”):
1. the number of days between the agency declaration of an emergency procurement and the contract award date;
2. the date of the emergency declaration for each procurement; and
3. for an award that must be reported to the Board, the date the award was reported to the Board.
(c) Within 90 days after the end of each fiscal year, the Chief Procurement Officer shall submit to the Governor, the Legislative Policy Committee, the Senate Budget and Taxation Committee, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, the House Health and Government Operations Committee, and the Joint Audit and Evaluation Committee a consolidated report that includes each report required under subsection (a) of this section.
(d) Within 90 days after the end of each fiscal year, the Department of General Services shall submit to the Board and the General Assembly a report on each class of procurement for which the procedure for noncompetitive negotiated procurement has been approved under § 13–106 of this article.
(e) A report to the General Assembly or a committee of the General Assembly under this section is subject to § 2–1257 of the State Government Article.
(a) (1) (i) Except as provided in subparagraph (ii) of this paragraph, this section applies to State procurement contracts for:
1. construction;
2. information processing equipment, cloud computing services, and associated services; and
3. in accordance with Title 3.5, Subtitle 3 of this article, information technology system and cybersecurity upgrades and modernization.
(ii) This section does not apply to State procurement contracts for public school construction or public school capital improvements.
(2) For purposes of this section, a written acceptance letter for a State Highway Administration or Maryland Aviation Administration procurement contract for construction shall have the same force and effect as a change order until the State Highway Administration or Maryland Aviation Administration issues a written change order.
(b) (1) Except as provided in paragraphs (2) and (3) of this subsection, a unit may not require a prime contractor and a prime contractor may not require a subcontractor to begin change order work under a contract until the procurement officer for the unit issues a written change order that specifies whether the work is to proceed, in compliance with the terms of the contract, on:
(i) an agreed–to price which may include a preestablished catalog or unit prices based on local prevailing wage rates and equipment and material costs for each task required for the change order as included in the bid documents at the time of bid;
(ii) a force account;
(iii) a construction change directive; or
(iv) a time and materials basis.
(2) If a procurement officer and a prime contractor do not agree that work is included within the original scope and terms of a contract, nothing in this section:
(i) prohibits a procurement officer from issuing an order to a prime contractor to perform work or to furnish labor or materials determined by the procurement officer to be required by a contract between a unit and the prime contractor;
(ii) authorizes a refusal to perform work or to furnish labor or materials that a procurement officer has ordered the prime contractor to perform or to furnish because the procurement officer has determined that the work or labor is or the materials are required by a contract between a unit and the prime contractor; or
(iii) prejudices or impairs the right of a prime contractor to submit a claim or dispute to a procurement officer, in accordance with applicable law and the contract, seeking additional compensation for complying with an order of the procurement officer to perform work or to furnish labor or materials determined by the procurement officer to be required by a contract between the prime contractor and a unit.
(3) (i) If a unit is to pay for a contract or a part of a contract using a unit price methodology, a change order may not be required for work to continue and be completed beyond the estimated quantities in the contract.
(ii) After work is completed, a unit shall:
1. determine the actual quantity used to complete the contract; and
2. if necessary, issue a final adjustment change order to the contractor.
(c) If the amount to be paid under an approved change order does not exceed $50,000, a unit shall pay an invoice for work performed and accepted under the change order as provided for in the contract within 30 days after the unit receives the invoice and in accordance with § 15–103 of this subtitle.
(d) Within 5 days after receipt of a written change order, a prime contractor shall provide a subcontractor with a copy of the approved change order and the amount to be paid to the subcontractor based on the portion of the change order work to be completed by the subcontractor.
(e) The Board shall propose updated regulations as needed that provide for an expedited change order process for change orders valued at more than the small procurement amount specified in § 13–109 of this article.
(f) (1) On or before December 31, 2016, each unit shall issue guidelines for the unit’s change order process.
(2) The guidelines issued under paragraph (1) of this subsection shall be updated and reissued when any changes are made to the unit’s change order process.
(g) A provision of this section has effect only to the extent that the provision does not conflict with federal law or regulation.
(a) In this section, “liquidated damages” means damages in an amount designated by the parties to a contract that the injured party is eligible to collect as compensation for a specific breach of the contract.
(b) (1) On or before January 1, 2024, the Board, in consultation with the Procurement Improvement Council, shall publish a model policy concerning the inclusion and use of liquidated damages provisions in procurement contracts.
(2) The model policy shall include the following elements:
(i) guidance on when to include liquidated damages provisions in procurement contracts, including:
1. instances where liquidated damages provisions are required by law, including the requirements under §§ 14–303, 17–220, 17–222, and 18–108 of this Division II; and
2. conditions where liquidated damages provisions are recommended to protect State interests;
(ii) guidance for drafting liquidated damages provisions, including recommended methods for calculating the amount to be assessed;
(iii) a draft plan for responding to deficiencies in a contractor’s performance that may trigger a liquidated damages provision, reviewed by legal counsel for the Board; and
(iv) examples of liquidated damages provisions that may be used in a procurement contract with appropriate modification by the unit.
(3) The Board may propose alternative elements or models based on contract type.
(4) The Board may delegate the duties under this subsection to the Procurement Improvement Council established under § 12–105 of this Division II.
(c) (1) Subject to paragraph (2) of this subsection, on or before July 1, 2024, a unit shall adopt a written policy concerning the inclusion and use of liquidated damages provisions in procurement contracts by the unit that is substantially similar to the model policy established under subsection (b) of this section.
(2) (i) A primary procurement unit may establish a policy as required under paragraph (1) of this subsection that is applicable to those procurements that are within the control authority of the primary procurement unit.
(ii) A unit that performs a procurement subject to the control authority of a primary procurement unit shall apply the liquidated damages policy established by the primary procurement unit to any resulting procurement contract.
(d) A unit shall obtain the approval of the head of the unit if the unit decides not to include in a contract a liquidated damages clause specified under § 13–218(a)(4) of this article.
(e) (1) This subsection applies only to procurements valued at $5,000,000 or more.
(2) If a unit decides not to pursue liquidated damages when a specified breach associated with a liquidated damages provision has occurred, the unit shall:
(i) obtain the approval of the decision by the head of the unit; and
(ii) maintain documentation on the reason the unit decided not to pursue liquidated damages.
In this subtitle, “Appeals Board” means the Maryland State Board of Contract Appeals.
Except to the extent authorized by regulation by the Board, this subtitle does not apply to a protest concerning any act or omission by a procurement agency under Title 14, Subtitle 6 of this article.
There is a Maryland State Board of Contract Appeals.
The Appeals Board is an independent unit of the Executive Branch of the State government and, except by statute, may not be made a part of another unit of the State government.
(a) (1) The Appeals Board consists of 6 members appointed by the Governor with the advice and consent of the Senate.
(2) An appeal before the Appeals Board shall be heard by a panel of not more than 3 members designated by the Chairman.
(b) Each member of the Appeals Board shall:
(1) be qualified to serve in a quasi–judicial capacity; and
(2) have a thorough knowledge of procurement practices and processes.
(c) Before taking office, each appointee to the Appeals Board shall take the oath required by Article I, § 9 of the Maryland Constitution.
(d) (1) The term of a member is 5 years.
(2) The terms of members are staggered as required by the terms provided for members of the Appeals Board on October 1, 1988.
(3) At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(4) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(e) The Governor may remove a member of the Appeals Board for cause.
From among the members of the Appeals Board, the Governor shall designate a chairman.
(a) Each member of the Appeals Board shall devote full time to the duties of office.
(b) Each member of the Appeals Board is entitled to:
(1) compensation in accordance with the State budget; and
(2) reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(c) (1) Subject to paragraphs (2) and (3) of this subsection, the Appeals Board may employ a staff in accordance with the State budget.
(2) The Appeals Board shall have at least three more positions than the number of positions authorized in fiscal year 2022.
(3) (i) Subject to subparagraph (ii) of this paragraph, the Appeals Board shall employ at least three law clerks.
(ii) The Appeals Board shall employ:
1. at least one law clerk who is a graduate of the University of Maryland School of Law;
2. at least one law clerk who is a graduate of the University of Baltimore School of Law; and
3. at least one law clerk who is a graduate of Howard University School of Law.
In accordance with Title 10, Subtitle 1 of the State Government Article, the Appeals Board shall adopt regulations that provide for informal, expeditious, and inexpensive resolution of appeals before the Appeals Board.
(a) The Appeals Board shall have jurisdiction to hear and decide all appeals arising from the final action of a unit:
(1) on a protest relating to the formation of a procurement contract, including a violation of § 13–212.1 of this article; or
(2) except for a contract claim relating to a lease of real property, on a contract claim by a contractor or a unit concerning:
(i) breach;
(ii) performance;
(iii) modification; or
(iv) termination.
(b) A decision of the Appeals Board is final, subject to any judicial review.
(a) In connection with a proceeding authorized under this subtitle, the Appeals Board may:
(1) administer oaths;
(2) certify to all official acts; and
(3) at the request of a party to the proceeding:
(i) issue subpoenas for the attendance and testimony of witnesses or the production of documents; and
(ii) compel the testimony of witnesses.
(b) If a person fails to comply with a subpoena or order compelling testimony under this section, on petition of the Appeals Board, a court of competent jurisdiction may pass an order directing compliance with the subpoena or compelling testimony.
(c) (1) A person who, under oath, willfully makes a false statement about a matter before the Appeals Board is guilty of perjury.
(2) A person who causes another person under oath to make a false statement about a matter before the Appeals Board is guilty of subornation of perjury.
(3) A person who commits perjury or subornation of perjury under this section is subject to the penalty provided in §§ 9-101 and 9-102 of the Criminal Law Article.
(a) In this Part III of this subtitle the following words have the meanings indicated.
(b) (1) “Contract claim” means a claim that relates to a procurement contract.
(2) “Contract claim” includes a claim about the performance, breach, modification, or termination of the procurement contract.
(c) “Interested party” means an actual or a prospective bidder, offeror, or contractor that may be aggrieved by the solicitation or award of a contract, or by the protest.
(d) (1) “Protest” means a complaint that relates to the formation of a procurement contract.
(2) “Protest” includes a complaint about:
(i) the qualifications of a bidder or offeror; or
(ii) the determination of the successful bidder or offeror.
(a) Title 10, Subtitle 2 of the State Government Article does not apply to the disposition of a protest or a contract claim by:
(1) a primary procurement unit;
(2) a procurement officer; or
(3) a unit.
(b) The Appeals Board shall conduct its proceedings in accordance with Title 10, Subtitle 2 of the State Government Article.
(a) (1) A prospective bidder or offeror, a bidder, or an offeror may submit a protest to the procurement officer.
(2) A unit or a person who has been awarded a procurement contract may submit a contract claim to the procurement officer.
(b) Except as provided in § 15-219 of this subtitle, a protest or contract claim shall be submitted within the time required under regulations adopted by the primary procurement unit responsible for the procurement.
(a) Except as provided under § 15–219 of this subtitle, a procurement officer who receives a protest or a contract claim from a contractor shall comply with this section.
(b) (1) On receipt of a protest or contract claim from a contractor, a procurement officer:
(i) shall review the substance of the protest or contract claim;
(ii) may request additional information or substantiation through an appropriate procedure;
(iii) may discuss with interested parties and, if appropriate, may conduct negotiations with the person initiating the protest or contract claim; and
(iv) shall comply with any applicable regulations.
(2) Unless clearly inappropriate, the procurement officer shall seek the advice of the Office of the Attorney General.
(c) (1) Subject to subsection (b) of this section and consistent with the State budget and other applicable laws, the procurement officer shall:
(i) resolve the protest or contract claim by agreement of the parties;
(ii) wholly or partly deny the protest or contract claim; or
(iii) wholly or partly grant the relief sought by the person who submitted the protest or contract claim.
(2) The procurement officer promptly shall send the decision in writing to the reviewing authority.
(d) Unless otherwise provided by regulation, the decision of the procurement officer shall be reviewed promptly by:
(1) the head of the unit; and
(2) the head of the principal department or other equivalent unit of which the unit is a part.
(e) (1) Except as provided under paragraph (3) of this subsection, the reviewing authority shall approve, disapprove, or modify the decision of the procurement officer within 180 days after receiving the contract claim or a longer period to which the parties agree.
(2) The action of the reviewing authority under this subsection shall be the final action of the unit.
(3) The reviewing authority may remand the proceeding with instructions to the procurement officer.
(4) On remand, the procurement officer shall proceed under subsection (b) of this section in accordance with those instructions.
(f) (1) A decision not to pay a contract claim is a final action for the purpose of appeal to the Appeals Board.
(2) The failure to reach a decision within the time required under subsection (e) of this section may be deemed, at the option of the contractor, to be a decision not to pay the contract claim.
(a) Except to the extent a shorter period is prescribed by regulation governing differing site conditions, a contractor shall file a written notice of a claim relating to a procurement contract for construction within 30 days after the basis for the claim is known or should have been known.
(b) Unless extended by the unit, within 90 days after submitting a notice of a contract claim under a procurement contract for construction, a contractor shall submit to the unit a written explanation that states:
(1) the amount of the contract claim;
(2) the facts on which the contract claim is based; and
(3) all relevant data and correspondence that may substantiate the contract claim.
(c) (1) Subject to paragraph (2) of this subsection, the head of the unit engaged in procurement of the construction shall review the contract claim.
(2) If the unit is part of a principal department or other equivalent unit, the Secretary of the principal department or the equivalent official shall review the contract claim, unless review has been delegated by regulation to the head of the unit.
(d) The person who reviews a contract claim under subsection (c) of this section shall:
(1) investigate the contract claim; and
(2) give the contractor written notice of a resolution of the contract claim:
(i) within 90 days after receiving the contract claim or a longer period to which the parties agree, if the amount of the contract claim is not more than the amount under which the accelerated procedure may be selected before the Appeals Board; or
(ii) for any other contract claim, within 180 days after receiving the contract claim or a longer period to which the parties agree.
(e) Recovery under a contract claim is not allowed for any expense incurred:
(1) more than 30 days before the required submission of a notice of a claim under subsection (a) of this section; or
(2) unless the time for submission of a claim is extended under subsection (b) of this section, more than 120 days before the required submission of the claim.
(f) (1) If the unit determines that it is responsible for a portion but not all of the amount claimed by the contractor, subject to the terms of the contract, the unit shall pay the undisputed amount.
(2) Payment of the undisputed amount:
(i) is not an admission of the liability of the unit on the claims; and
(ii) does not preclude recovery of the amount paid if it subsequently is determined that the determination of the unit was not correct.
(g) (1) A decision not to pay a contract claim is a final action for the purpose of appeal to the Appeals Board.
(2) The failure to reach a decision within the time required under subsection (c) of this section may be deemed, at the option of the contractor, to be a decision not to pay the contract claim.
(h) At the time of final payment, the unit shall:
(1) release the retainage due to the contractor; and
(2) pay any interest that:
(i) has accrued on the retainage from the time of payment of the semifinal estimate; and
(ii) is due and payable to the contractor.
(a) (1) A unit may assert a contract claim against a contractor by sending written notice to the contractor and the procurement officer that states:
(i) the basis for the contract claim;
(ii) to the extent known, the amount, or the performance or other action, requested by the unit in the contract claim; and
(iii) the date by which the contractor is required to provide a written response to the contract claim.
(2) On receipt of a contract claim from a unit, a procurement officer:
(i) shall review the substance of the contract claim;
(ii) may request additional information or substantiation through an appropriate procedure; and
(iii) may discuss or, if appropriate, negotiate the contract claim with the unit or contractor.
(3) The procurement officer shall proceed under subsection (b) of this section if the contractor fails to respond, provides an inadequate response, or denies the contract claim or the relief sought by the unit in whole or in part.
(b) (1) If the contractor and the unit do not resolve the contract claim, the procurement officer shall prepare a proposed decision on the contract claim, including:
(i) a description of the contract claim;
(ii) references to pertinent contract provisions;
(iii) a statement of factual areas of agreement or disagreement; and
(iv) a statement in the proposed decision wholly or partly granting or denying the relief sought, with supporting rationale.
(2) Unless otherwise provided by regulation, the procurement officer shall submit the contract claim and proposed decision to:
(i) the head of the unit; and
(ii) the head of the principal department or other equivalent unit of which the unit is a part.
(3) (i) The reviewing authority shall approve, modify, or disapprove the proposed decision.
(ii) In disapproving a proposed decision, the reviewing authority may remand the contract claim with instructions to the procurement officer.
(iii) On remand, the procurement officer shall proceed as required under this subsection and in accordance with the instructions of the reviewing authority.
(4) The decision of the reviewing authority is the final action of the unit.
(a) Except for a contract claim related to a lease for real property, a bidder or offeror, a prospective bidder or offeror, a unit, or a contractor may appeal the final action of a unit to the Appeals Board.
(b) An appeal under this section shall be filed:
(1) for a protest, within 10 days after receipt of the notice of a final action; and
(2) for a contract claim, within 30 days after receipt of the notice of a final action.
(a) If a person appeals the decision of a unit about a protest, the Appeals Board shall:
(1) give that case priority over other matters not involving protests before the Appeals Board; and
(2) decide it expeditiously.
(b) (1) For any appeal, the Appeals Board may require each party to file a brief.
(2) If briefs are required, the Appeals Board shall establish the order and time limits for filing briefs after consultation with both parties.
(c) Except as provided in subsection (d) of this section, in a case before the Appeals Board, a party may obtain discovery about any matter that:
(1) is not privileged; and
(2) is relevant to the subject matter involved in that case.
(d) In an appeal from a decision about a protest, discovery shall be limited to requests for the production of documents unless the Appeals Board determines that extraordinary circumstances require additional limited discovery to avoid substantial unfairness or prejudice.
(e) In an appeal from a decision about a contract claim, unless both parties agree to a longer period, the Appeals Board shall issue its final decision within 180 days after the day on which:
(1) all briefs have been filed; or
(2) if later, the record has been closed.
(a) The Appeals Board may award an interested party the reasonable costs of filing and pursuing a protest, including reasonable attorney’s fees, if:
(1) the interested party appeals the final action of an agency on a protest;
(2) the Appeals Board sustains the appeal; and
(3) the Appeals Board finds that there has been a violation of law or regulation.
(b) The Appeals Board shall adopt regulations to implement this section and to determine what constitutes reasonable costs of filing and pursuing a protest.
(a) This section applies to a claim resulting under a contract.
(b) The Appeals Board may award to a contractor the reasonable costs of filing and pursuing a claim, including reasonable attorney’s fees, if the Appeals Board finds that the conduct of the unit in processing a contract claim is in bad faith, without substantial justification, or in violation of law.
(c) The Appeals Board shall adopt regulations to implement this section.
(a) Notwithstanding any provision of a procurement contract, the Appeals Board may award interest on money that the Appeals Board determines to be due to the unit or the contractor under a contract claim.
(b) (1) Subject to paragraph (2) of this subsection, interest may accrue from a day that the Appeals Board determines to be fair and reasonable after hearing all the facts until the day of the decision by the Appeals Board.
(2) Interest may not accrue before the procurement officer receives a contract claim from the unit or the contractor.
(c) (1) Subject to paragraph (2) of this subsection, an award under a decision by the Appeals Board shall accrue interest until the day on which the award is paid.
(2) If an award is reduced as a result of a judicial review of the decision of the Appeals Board, interest shall be paid only on the reduced award.
(d) The rate of interest under this section shall be the rate of interest on judgments as provided under § 11-107(a) of the Courts Article.
(a) (1) A decision of the Appeals Board is subject to judicial review in accordance with Title 10, Subtitle 2 of the State Government Article.
(2) Any party to an Appeals Board decision, including a unit, may appeal a final decision of the Appeals Board to a court of competent jurisdiction.
(b) When a decision about a protest or contract claim has become final and is no longer subject to judicial review, the determination shall be enforceable in the appropriate court.
(a) (1) In this section the following words have the meanings indicated.
(2) “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.
(3) “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) It is the policy of the State that, for work under a State procurement contract:
(1) a contractor shall promptly pay to a subcontractor or supplier any undisputed amount to which the subcontractor or supplier is entitled; and
(2) a subcontractor shall promptly pay to a lower tier subcontractor any undisputed amount to which the lower tier subcontractor is entitled.
(c) (1) A contractor shall pay a subcontractor or supplier an undisputed amount to which the subcontractor or supplier is entitled within 10 days of receiving a progress or final payment from the State.
(2) If a contractor withholds payment from a subcontractor or supplier, within the time period in which payment normally would be made, the contractor shall:
(i) notify the subcontractor or supplier in writing and state the reason why payment is being withheld; and
(ii) provide a copy of the notice to the procurement officer.
(d) (1) If a subcontractor or supplier does not receive a payment within the required time period, the subcontractor or supplier may give written notice of the nonpayment to the procurement officer.
(2) The notice shall:
(i) indicate the name of the contractor, the project under which the dispute exists, and the amount in dispute;
(ii) provide an itemized description on which the amount is based; and
(iii) if known, provide an explanation for any dispute concerning payment by the contractor.
(e) (1) 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 to ascertain whether the amount withheld is an undisputed amount.
(2) If the representative of the unit decides that a part or all of the amount withheld is an undisputed amount, the representative of the unit shall instruct the contractor to pay the subcontractor or supplier the undisputed amount within 3 business days.
(3) The representative of the unit shall verbally communicate to the subcontractor or supplier the results of discussions with the contractor.
(4) If the contractor is instructed to pay the subcontractor or supplier and the subcontractor or supplier is not paid within the time instructed under paragraph (2) of this subsection, the subcontractor or supplier may report the nonpayment in writing to the procurement officer.
(f) (1) If the subcontractor or supplier notifies the procurement officer under subsection (e)(4) of this section 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, and the subcontractor or supplier:
(i) at a time and location designated by the representative of the unit; but
(ii) not later than 10 days after receiving notice from the subcontractor or supplier under subsection (e)(4) of this section.
(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) The representative of the unit shall require the parties to provide at the meeting any information that the representative believes necessary to evaluate the dispute.
(4) If the representative of the unit determines that the contractor is delinquent in payment of an undisputed amount to the subcontractor or supplier, further progress payments to the contractor may be withheld until the subcontractor or supplier is paid.
(5) If payment is not paid to the subcontractor or supplier within 7 days after the representative of the unit determines that the contractor is delinquent in paying the subcontractor or supplier under this subsection, the representative shall schedule a second meeting to address the dispute:
(i) at a time and location designated by the representative of the unit; but
(ii) not later than 5 days after the close of the 7–day period.
(6) 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:
(i) shall order that further payments to the contractor not be processed until payment to the subcontractor is verified;
(ii) may order that work under the contract be suspended based on the failure of the contractor to meet obligations under the contract; and
(iii) subject to paragraph (7) of this subsection, may require 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 subsection (e)(2) of this section.
(7) A penalty may not be imposed under paragraph (6)(iii) of this subsection for any period that the representative of the unit determines the subcontractor or supplier was not diligent in reporting nonpayment to the procurement officer.
(g) (1) A contractor, a subcontractor, or a supplier may appeal a decision under subsection (f)(6) of this section to the procurement officer.
(2) The contractor shall comply with the procurement officer’s decision.
(h) 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 or between subcontractors under this section may not:
(1) affect the rights of the contracting parties under any other provision of law;
(2) be used as evidence on the merits of a dispute between the unit and the contractor, the contractor and subcontractor, or contractor and supplier in any other proceeding; or
(3) result in liability against or prejudice the rights of the unit.
(i) A decision of a procurement officer or a representative of the unit designated by the procurement officer under this section is not subject to judicial review or the provisions of Part III of this subtitle.
(j) (1) A unit shall include in each State procurement contract a provision:
(i) governing prompt payment to subcontractors; and
(ii) requiring inclusion of a similar provision in each subcontract at any tier.
(2) The contract provision shall establish procedures and remedies for the resolution of payment disputes similar to the process and remedies prescribed in subsections (c) through (g) of this section.
(a) In this title the following words have the meanings indicated.
(b) “Business” means an individual or a corporation, partnership, sole proprietorship, joint venture, or other legal entity through which commercial activity is conducted.
(c) “Contract” means any agreement in any form.
(d) “Controlling stockholder” means a stockholder who:
(1) owns more than 25% of the voting stock of a corporation; or
(2) notwithstanding the number of shares that the stockholder owns, has the power to direct or control the direction of the management or policies of a corporation.
(e) “Convicted” includes an accepted plea of nolo contendere.
(f) “Public body” means:
(1) the State;
(2) a unit; or
(3) a local governmental entity in the State, including a bicounty or multicounty governmental entity.
For purposes of this title, the Board may treat the imposition of probation before judgment for an offense in the same manner as a conviction for the same offense.
This subtitle is broadly applicable to all contracts with public bodies, except where a section refers only to the State.
(a) A person is debarred by operation of law from entering into a contract with a public body if the person has been convicted under the laws of the State for bribery, attempted bribery, or conspiracy to bribe, committed in furtherance of obtaining a contract with a public body.
(b) A person may be debarred from entering into a contract with a public body, if the person:
(1) has been convicted under the laws of the State for bribery, attempted bribery, or conspiracy to bribe, committed other than in furtherance of obtaining a contract with any public body;
(2) has been convicted under the laws of another state or of the United States of bribery, attempted bribery, or conspiracy to bribe; or
(3) during the course of an official investigation or other proceeding has admitted, in writing or under oath, acts or omissions that would constitute bribery, attempted bribery, or conspiracy to bribe, under the laws of the State, another state or the United States.
(a) A person may be debarred from entering into a contract with the State if the person, an officer, partner, controlling stockholder or principal of that person, or any other person substantially involved in that person’s contracting activities has:
(1) been convicted under the laws of the State, another state or the United States of:
(i) a criminal offense incident to obtaining, attempting to obtain, or performing a public or private contract, except as provided in § 16–202 of this subtitle; or
(ii) fraud, embezzlement, theft, forgery, falsification or destruction of records, or receiving stolen property;
(2) been convicted of a criminal violation of an antitrust statute of the State, another state, or the United States;
(3) been convicted of a violation of the Racketeer Influenced and Corrupt Organization Act, or the Mail Fraud Act, for acts in connection with the submission of bids or proposals for a public or private contract;
(4) been convicted of a violation of § 14–308 of this article;
(5) been convicted of conspiracy to commit any act or omission that would constitute grounds for conviction under any of the laws or statutes described in items (1), (2), (3), or (4) of this subsection;
(6) been convicted of a violation of § 7201, § 7203, § 7205, § 7206, or § 7207 of the Internal Revenue Code;
(7) been convicted of a violation of 18 U.S.C. § 286, § 287, or § 371;
(8) been convicted of a violation of Title 13, Subtitle 7 or Subtitle 10 of the Tax – General Article;
(9) been found to have willfully or knowingly violated Title 17, Subtitle 2 or Title 18 of this article if:
(i) 1. the finding was made by a court; and
2. the decision of the court became final; or
(ii) 1. the finding was made in a contested case under the Administrative Procedure Act; and
2. the finding was not overturned on judicial review;
(10) been found to have willfully or knowingly violated Title 3, Subtitle 3, Subtitle 4, or Subtitle 5 or Title 5 of the Labor and Employment Article if:
(i) 1. the finding was made by a court; and
2. the decision of the court became final; or
(ii) 1. the finding was made in a contested case under the Administrative Procedure Act; and
2. the finding was not overturned on judicial review;
(11) been found civilly liable under an antitrust statute of the State, another state, or the United States for acts or omissions in connection with the submission of bids or proposals for a public or private contract;
(12) been found to have willfully or knowingly violated Title 20, Subtitle 6 of the State Government Article if:
(i) 1. the finding was made by a court; and
2. the decision of the court became final; or
(ii) 1. the finding was made in a contested case under the Administrative Procedure Act; and
2. the finding was not overturned on judicial review; or
(13) been found in a final adjudicated decision to have violated the Commercial Nondiscrimination Policy under Title 19 of this article with regard to a public or private contract.
(b) A person may be debarred from entering into a contract with the State if, during the course of an official investigation or other proceedings, the person, an officer, partner, controlling stockholder or principal of that person, or any other person substantially involved in that person’s contracting activities has admitted, in writing or under oath, an act or omission that constitutes grounds for conviction or liability under any law or statute described in subsection (a) of this section.
(c) A person may be debarred from entering into a contract with the State if the person, an officer, partner, controlling stockholder or principal of that person, or any other person substantially involved in that person’s contracting activities has been debarred from federal contracts under:
(1) the Federal Acquisition Regulations, as provided in 48 C.F.R. Chapter 1; or
(2) federal Executive Order 11246, as amended due to discriminatory hiring practices in the State.
(d) A person may be debarred from entering into a contract with the State:
(1) if the Board finds that the person was established or operates in a manner designed to evade the application of this title or to defeat the purpose of this title;
(2) if the person is a successor, assignee, subsidiary, or affiliate of a person who is debarred or suspended;
(3) except as provided under item (4) of this subsection, for one of the following violations of a contract provision if the Board believes it to be serious enough to justify debarment:
(i) the deliberate failure, without good cause, to perform in accordance with the specifications, or within the time limit, provided in a contract; or
(ii) within the preceding 5 years, the failure to perform or unsatisfactory performance in accordance with the terms of one or more contracts, unless the failure to perform or unsatisfactory performance was caused by acts beyond the control of the person;
(4) for a period not exceeding 3 years if the person persistently fails to meet contract goals in the absence of mitigating factors under the criteria established under § 14–305(c)(2) of this article;
(5) if the person is a competing contractor, or any officer, employee, representative, agent, or consultant of any competing contractor who violates § 13–211 of this article; or
(6) for any other cause that the Board determines to be so serious as to affect the integrity of the procurement process.
This subtitle is broadly applicable to all debarment proceedings.
(a) The clerk of each circuit court shall send to the Board a certified copy of:
(1) each judgment of conviction of bribery, attempted bribery, or conspiracy to bribe; and
(2) each docket entry showing an acceptance of a plea of nolo contendere for bribery, attempted bribery, or conspiracy to bribe, or imposition of probation before judgment for any such offense.
(b) During an investigation or other proceeding, if a person admits an act or omission that would subject that person to debarment under § 16-202(b)(3) or § 16-203(b) of this title, the prosecuting officer of the public body who has responsibility for the proceeding shall send to the Board a copy or summary of the written statement or transcript reflecting the admission as soon as the officer determines that the transmission will not prejudice a pending or anticipated investigation or other proceeding.
(c) Each unit shall report to the Board information showing a cause for debarment under § 16-203(d) of this title.
(a) The Attorney General may institute proceedings to debar a person under § 16-202(b) or § 16-203 of this title from:
(1) being considered for the award of, being awarded, or performing a contract with a public body if the Attorney General believes that the person is subject to debarment under § 16-202(b) of this title; or
(2) being considered for the award of, being awarded, or performing a contract with the State if the Attorney General believes that the person is subject to debarment under § 16-203 of this title.
(b) The Attorney General may recommend whether the Board should suspend a person under § 16-305 of this subtitle.
(c) The Attorney General:
(1) shall investigate the matters to be determined by the Board in a hearing under this title;
(2) as a party to any proceeding brought under this title, shall present to the Board the evidence that the Attorney General considers appropriate; and
(3) may recommend:
(i) whether the Board should debar the person; and
(ii) the appropriate time period of the debarment.
(d) (1) If the Attorney General reasonably believes that a person may have information or may be in possession, custody, or control of any original or copy of any book, record, report, memorandum, paper communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording, wherever situated, which the Attorney General believes is relevant to, or may lead to the discovery of, evidence relevant to the subject matter of an investigation of a possible basis for debarment under this title, the Attorney General, before initiating debarment proceedings or recommending suspension as provided for in this title, may serve on the person a written investigative demand which requires the person to perform any one or more of the following:
(i) to be examined under oath;
(ii) to answer written interrogatories; or
(iii) to produce documentary material and permit inspection and copying of such material.
(2) The demand of the Attorney General shall:
(i) state the grounds for debarment under investigation;
(ii) describe the class of documentary material to be produced under the demand with sufficient specificity to indicate fairly the material demanded;
(iii) contain a copy of the written interrogatories;
(iv) prescribe a reasonable time of not less than 3 days after the demand is served at which time the person must appear to testify, within which time the person must answer the written interrogatories, and within which time the documentary materials must be produced;
(v) specify the place for the taking of testimony and for the production of documentary materials; and
(vi) identify the member of the Office of the Attorney General who will:
1. take testimony;
2. receive the answers to the written interrogatories; and
3. review the documentary material to be made available for inspection and copying.
(3) A petition to extend the time for compliance or to modify or set aside a demand issued under this subsection may be filed at any time before the date specified in the demand in the circuit court of the county of the petitioner’s residence or principal place of business.
(a) The Board shall notify a person that the person is debarred under § 16-202(a) of this title, and shall give reasonable opportunity for that person to be heard on whether the stated basis for debarment exists.
(b) (1) The Attorney General may institute proceedings to debar a person under § 16-202(b) or § 16-203 of this title by filing an administrative complaint with the Board.
(2) The Board shall notify the person that debarment proceedings have been initiated and that the person has a right to a hearing.
(c) Before being debarred, a person subject to debarment under § 16-202(b) or § 16-203 of this title is entitled to a hearing before the Board. The Board shall conduct the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
(d) When a unit contracting for a public body is notified that a person who has applied for a contract is subject to debarment under this title, the unit shall notify the person in writing that:
(1) the application may be disqualified; and
(2) the person has a right to a hearing before the Board.
(e) Unless a person notified by the Board pursuant to this section submits a request to the Board for a hearing within 30 days after receiving such notice, the person:
(1) waives the right to a hearing; and
(2) is debarred.
(a) While a final decision on a debarment is pending, the Board may suspend a person from:
(1) being considered for the award of, being awarded, or performing a contract with a public body, if the debarment proceedings are instituted under § 16-202(b) of this title; or
(2) being considered for the award of, being awarded, or performing a contract with the State, if the debarment proceedings are instituted under § 16-203 of this title.
(b) A business is suspended to the same extent that a person is suspended under this section if:
(1) the suspended person’s debarment would cause the debarment of the business under § 16-307 of this subtitle; and
(2) the Board notifies the business in writing of its suspension under this subsection.
(c) (1) A person or business suspended under this section may petition the Board to modify or terminate the suspension.
(2) In its discretion, the Board may conduct, in accordance with Title 10, Subtitle 2 of the State Government Article, a hearing concerning a petition received under paragraph (1) of this subsection.
(3) In considering a petition received under paragraph (1) of this subsection, the Board shall conclude whether the integrity of the contracting process and the best interests of the State would be served by continuing, modifying, or terminating the suspension.
(4) The Board shall give the person or business petitioning for modification or termination of a suspension written notice of the Board’s decision.
(a) In making a determination whether a person should be debarred under § 16-202(b) or § 16-203 of this title, the Board shall conclude whether the integrity of the contracting process and the best interests of the State would be served by debarring the person from entering into contracts with the applicable public bodies. In making its determination, the Board shall consider relevant factors, including:
(1) the nature and seriousness of the act that caused the person to be subject to debarment;
(2) the time the act occurred;
(3) whether and to what extent the person cooperated with authorities in their investigation of the matters;
(4) the conditions under which the person cooperated; and
(5) the conduct of the person since the act occurred.
(b) Upon making its determination under subsection (a) of this section, the Board shall notify the person subject to debarment in writing either that:
(1) the person is debarred and the period of debarment; or
(2) the person is no longer subject to debarment for the act which was the subject of the hearing and determination.
(c) Except as provided in § 16-310 of this subtitle, this section does not apply to a person debarred under § 16-202(a) of this title.
(a) A business is debarred from entering into a contract with a public body if the Board debars:
(1) an officer, director, controlling shareholder, or partner; or
(2) an employee directly involved in the process of obtaining contracts with public bodies.
(b) The business is debarred under subsection (a) of this section to the same extent as the person debarred by the Board.
(c) A business shall remain debarred under this section:
(1) as long as the debarred person remains with the business in any capacity described in subsection (a) of this section; or
(2) until the debarment is removed under § 16-310 of this subtitle.
(d) The Board shall notify in writing any business that it is debarred under this section.
(a) The Board shall keep a roster of all persons and businesses suspended or debarred under this title.
(b) The roster is a public record.
(a) If a person or business is debarred or suspended based on an offense listed in § 16-202 of this title, the person or business may not be considered for the award of, be awarded, or perform, directly or indirectly, a contract with a public body during the time period of debarment or suspension.
(b) If a person or business is debarred or suspended based on an offense listed in § 16-203 of this title, the person or business may not be considered for the award of, be awarded, or perform, directly or indirectly, a contract with the State during the time period of debarment or suspension.
(a) (1) If the conviction that is the basis for a debarment or suspension is reversed or otherwise rendered void, the debarment or suspension terminates automatically.
(2) If the federal debarment that is the basis for a State debarment is reversed or otherwise rendered void, the debarment terminates automatically if the person debarred provides to the Board sufficient legal documentation that the federal debarment has been reversed or otherwise rendered void.
(b) (1) Any person debarred under § 16-202 of this title may, after a period of 5 years from the date of the debarment, petition the Board for removal of the debarment.
(2) Any person debarred under § 16-203(a), (b), or (d) of this title may petition the Board for removal of the debarment, after the expiration of:
(i) one-half of the period of debarment; or
(ii) 5 years.
(c) (1) The Board shall consider all petitions received under subsection (b) of this section.
(2) Within 90 days after receiving a petition under subsection (b) of this section, the Board shall determine in its discretion whether to conduct a hearing regarding the petition. If the Board decides to conduct a hearing, it shall conduct the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
(3) The Board shall notify the person of its decision whether it will conduct a hearing regarding the petition.
(d) In making its determination whether the debarment should be removed, the Board shall conclude whether the integrity of the contracting process and the best interests of the State would be served by continuing the debarment. In making its determination, the Board shall consider relevant factors including those listed in § 16-306(a) of this subtitle.
(e) Upon making its determination, the Board shall give written notice to the petitioner that the debarment is removed or continued.
(f) The time for any hearing or determination by the Board under this section may be extended by the Board upon a showing of good cause.
(a) Every person, upon submitting a bid proposal or other application for a contract with a public body, shall submit an affidavit stating to its best knowledge whether it or any of its officers, directors, or partners, or any of its employees who are directly involved in obtaining or performing contracts with any public bodies has:
(1) been convicted of bribery, attempted bribery, or conspiracy to bribe, under the laws of any state or of the federal government;
(2) been convicted under a State or federal law or statute of any offense enumerated in § 16-203 of this title; or
(3) been found civilly liable under a State or federal antitrust statute as provided in § 16-203 of this title.
(b) The affidavit required by subsection (a) of this section shall also contain the person’s affirmation that it shall not knowingly enter into a contract with a public body under which a person or business debarred or suspended under this subtitle will provide, directly or indirectly, supplies, services, architectural services, construction related services, leases of real property, or construction.
(c) The requirements of this section are satisfied if the affidavit:
(1) incorporates by reference the statements contained in an affidavit filed with the same public body within the previous year pursuant to the requirements of this section; and
(2) states that those statements remain accurate.
(a) Debarment proceedings under this subtitle against a person or business subject to debarment under this title may be instituted within 5 years after:
(1) a final judgment in a civil or criminal action that constitutes a cause for debarment;
(2) an admission, in writing or under oath, of an act or omission that constitutes grounds for a criminal conviction or civil liability that may be a cause for debarment; or
(3) the occurrence of any other event that constitutes a cause for debarment.
(b) Debarment proceedings under this subtitle against a person or business subject to debarment under this title may be instituted after the period set forth in subsection (a) of this section, only if such proceedings are brought within 1 year of the time when the State discovered, or by the exercise of ordinary diligence should have discovered, the grounds for debarment under this title.
(a) In this subtitle the following words have the meanings indicated.
(b) “Payment security” means security to guarantee payment for labor and materials, including leased equipment, under a contract for construction.
(c) “Performance security” means security to guarantee the performance of a contract for construction.
(d) “Public body” means:
(1) the State;
(2) a county, municipal corporation, or other political subdivision;
(3) a public instrumentality; or
(4) any governmental unit authorized to award a contract.
(e) (1) “Supplier” means a person who supplies labor or materials.
(2) “Supplier” includes a lessor of equipment to the extent of the fair rental value of the equipment.
(a) This subtitle does not limit the authority of a public body to require performance security in addition to, or in cases other than, those specified under §§ 17-103, 17-104, 17-106, and 17-107 of this subtitle.
(b) This subtitle applies only to security for a construction contract.
(c) (1) By ordinance, Baltimore City may provide for a program to satisfy the bonding requirements under §§ 17-103, 17-104, 17-106, and 17-107 of this subtitle with respect to any construction contract:
(i) that does not exceed $200,000; and
(ii) for which State money is not used.
(2) The program shall provide for payment security of at least 50% of the total amount payable under the contract.
(a) (1) Before a public body awards a construction contract exceeding the small procurement amount specified in § 13–109 of this article for construction, the contractor shall provide payment security and performance security that meet the requirements of § 17–104 of this subtitle.
(2) The security shall be:
(i) for performance security, in an amount that the public body considers adequate for its protection; and
(ii) for payment security, at least 50% of the total amount payable under the contract.
(b) A public body, other than the State or a unit of the State government, may require payment security or performance security for a construction contract if:
(1) the contract exceeds $100,000 but does not exceed the small procurement amount specified in § 13–109 of this article; and
(2) the amount of the security does not exceed 50% of the contract amount.
(a) Payment security or performance security required under this subtitle shall be:
(1) a bond executed by a surety company authorized to do business in the State;
(2) cash in an amount equivalent to a bond; or
(3) other security that is satisfactory to the public body awarding the contract.
(b) (1) Subject to paragraphs (2) and (3) of this subsection, performance security may include the granting of a mortgage or deed of trust on real property located within the State if such security is satisfactory to the public body awarding the contract.
(2) The face amount of a mortgage or deed of trust on real property granted as security under this subsection may not exceed 75% of the contractor’s equity interest in the property.
(3) A mortgage or deed of trust accepted under this subsection shall be recorded by an official designated by the public body accepting the mortgage or deed of trust in the land records of the county where the real property is situated in accordance with § 3–103 of the Real Property Article.
(a) Security under this subtitle:
(1) if required by the State or a unit of the State government, shall be payable to “the State of Maryland”; or
(2) if required by any other public body, shall be payable to that public body.
(b) The form of payment security or performance security shall be approved:
(1) for the State or a unit of the State government, by the Attorney General; and
(2) for any other public body, by its attorney.
(c) The contractor shall file the security or evidence of a trust account established as security:
(1) if payable to the State under this section, in the Office of the Comptroller; or
(2) if payable to any other public body, in the appropriate office of that public body.
Before a contractor receives a progress or final payment under a contract covered by payment security, the contractor shall certify in writing that, in accordance with contractual arrangements, suppliers:
(1) have been paid from the proceeds of previous progress payments; and
(2) will be paid in a timely manner from the proceeds of the progress or final payment currently due.
A contractor who provides payment security under this subtitle in connection with a construction contract awarded by a public body need not execute a waiver of a mechanics’ lien to the public body.
(a) Subject to subsection (b) of this section, a supplier may sue on payment security if the supplier:
(1) supplied labor or materials in the prosecution of work provided for in a contract subject to this subtitle; and
(2) has not been paid in full for the labor or materials within 90 days after the day that the person last supplied labor or materials for which the claim is made.
(b) (1) A supplier who has a direct contractual relationship with a subcontractor or sub-subcontractor of a contractor who has provided payment security but no contractual relationship with the contractor may sue on the security if the supplier gives written notice to the contractor within 90 days after the labor or materials for which the claim is made were last supplied in prosecution of work covered by the security.
(2) A notice under this subsection:
(i) shall state with substantial accuracy the amount claimed and the person to whom the labor or material was supplied; and
(ii) shall be sent by certified mail to the contractor at the contractor’s residence or a place where the contractor has an office or does business.
(c) (1) On request by a person who submits an affidavit verifying that the person has supplied labor or materials but has not been paid or is being sued under this section, the Comptroller or the officer in charge of the office where the payment security or evidence of security is required to be filed shall issue:
(i) a certified copy of the payment bond; or
(ii) for other security, a certified statement of the security.
(2) The person requesting certification shall pay a reasonable fee, set by the Comptroller or other officer required to issue the certification, to cover the costs of preparation.
(3) A certification under this section is prima facie evidence of the contents, execution, and delivery of payment security.
(d) (1) An executory contract between a supplier and a contractor or subcontractor that is related to a construction contract may not waive or require the supplier to waive the right to sue on payment security under this section.
(2) A provision in an executory contract between a supplier and a contractor or subcontractor that is related to a construction contract and that conditions payment to the supplier on receipt of payment by the person from a public body or other third party, may not abrogate or waive the right of the supplier to sue on payment security under this subtitle.
(3) A provision of a contract made in violation of this subsection is void as against the public policy of the State.
(a) An action on a payment bond required by this subtitle shall be filed in the appropriate court of the county where:
(1) the contract was executed and performed; or
(2) the contractor has its principal place of business.
(b) An action on a payment bond required by this subtitle shall be filed within 1 year after the public body finally accepts the work performed under the contract.
(c) An obligee named in a bond or a trustee for any other security is not liable for any costs in connection with an action on a payment bond required by this subtitle.
(a) Subsections (b)(1) and (2), (c), and (d) of this section do not apply to an entity that is required to comply with the provisions of § 13–225 of this article.
(b) (1) If a contractor has furnished 100% payment security and 100% performance security in accordance with this subtitle under a contract for construction awarded by a public body, the percentage specified in the contract for retainage may not exceed 5% of the total amount of the contract.
(2) In addition to retainage, a public body may withhold from payments otherwise due a contractor any amount that the public body reasonably believes necessary to protect the public body’s interest.
(3) Except as provided in paragraph (4) of this subsection, within 120 days after satisfactory completion of a contract for construction, a public body shall release any retainage due to the contractor.
(4) If there is a dispute or contract claim between the contractor and the public body concerning the satisfactory completion of a contract for construction, the public body shall release the retainage to the contractor within 120 days after the resolution of the dispute or contract claim.
(c) (1) A contractor may not retain a percentage of payments due a subcontractor that exceeds the percentage of payments retained by the public body.
(2) Paragraph (1) of this subsection may not be construed to prohibit a contractor from withholding any amount in addition to retainage if the contractor determines that a subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.
(d) (1) A subcontractor may not retain a percentage of payments due a lower tier subcontractor that exceeds the percentage of payments retained from the subcontractor.
(2) Paragraph (1) of this subsection may not be construed to prohibit a subcontractor from withholding any amount in addition to retainage if the subcontractor determines that a lower tier subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.
(e) This section may not be construed to limit the application of the remaining provisions of this subtitle.
This subtitle may be cited as the “Maryland Little Miller Act”.
(a) In this subtitle, unless the context indicates otherwise, the following words have the meanings indicated.
(b) “Apprentice” means an individual who:
(1) is at least 16 years old;
(2) has signed with an employer or employer’s agent, an association of employers, an organization of employees, or a joint committee from both, an agreement including a statement of:
(i) the trade, craft, or occupation that the individual is learning; and
(ii) the beginning and ending dates of the apprenticeship; and
(3) is registered in a program of the Council or the Office of Apprenticeship of the United States Department of Labor.
(c) “Commissioner” means:
(1) the Commissioner of Labor and Industry;
(2) the Deputy Commissioner of Labor and Industry; or
(3) an authorized representative of the Commissioner.
(d) “Construction” includes all:
(1) building;
(2) reconstructing;
(3) improving;
(4) enlarging;
(5) painting and decorating;
(6) altering;
(7) maintaining;
(8) repairing; and
(9) services provided under a mechanical systems service contract.
(e) “Council” means the Apprenticeship and Training Council.
(f) (1) “Employee” means an apprentice or worker employed by a contractor or subcontractor under a public work contract.
(2) “Employee” does not include an individual employed by a public body.
(g) (1) “Locality” means the county in which the work is to be performed.
(2) If the public work is located within 2 or more counties, the locality includes all counties in which the public work is located.
(h) “Mechanical systems service contract” means a contract for:
(1) HVAC systems, including heating, ventilation, ductwork, and cooling/air–conditioning equipment;
(2) refrigeration systems;
(3) plumbing systems, including pipes, tanks, fittings, and other elements that control the water and gas supply, heating, and sanitation of a building;
(4) electrical systems, including electrical components that supply, distribute, generate, and use electrical power, overhead and underground lines, poles, transformers, and other related equipment; and
(5) elevator systems, including escalators, moving walkways, and other conveyances.
(i) “Prevailing wage rate” means the hourly rate of wages paid in the locality as determined by the Commissioner under § 17–208 of this subtitle.
(j) (1) “Public body” means:
(i) the State;
(ii) except as provided in paragraph (2)(i) of this subsection, a unit of the State government or instrumentality of the State;
(iii) any political subdivision, agency, person, or entity with respect to the construction of any public work for which 25% or more of the money used for construction is State money;
(iv) notwithstanding paragraph (2)(ii) of this subsection, a political subdivision if its governing body:
1. provides by ordinance or resolution that the political subdivision is covered by this subtitle; and
2. gives written notice of that ordinance or resolution to the Commissioner; and
(v) the Washington Suburban Sanitary Commission.
(2) “Public body” does not include:
(i) except as provided in paragraph (1)(v) of this subsection, a unit of the State government or instrumentality of the State funded wholly from a source other than the State; or
(ii) any political subdivision, agency, person, or entity with respect to the construction of any public work for which less than 25% of the money used for construction is State money.
(k) (1) Subject to paragraph (2) of this subsection, “public work” means a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage disposal plant, that:
(i) is constructed for public use or benefit; or
(ii) is paid for wholly or partly by public money.
(2) “Public work” does not include:
(i) unless let to contract, a structure or work whose construction is performed by a public service company under order of the Public Service Commission or other public authority regardless of:
1. public supervision or direction; or
2. payment wholly or partly from public money; or
(ii) a capital project that receives State funds in the annual State capital budget as:
1. a local House of Delegates initiative; or
2. a local Senate initiative.
(l) “Public work contract” means a contract for construction of a public work.
(m) “Worker” means a laborer or mechanic.
(a) This subtitle does not limit:
(1) the hours of work an employee may work in a particular period of time; or
(2) the right of a contractor to pay an employee under a public work contract more than the prevailing wage rate.
(b) Except as provided in subsection (e) of this section, this subtitle does not apply to:
(1) a public work contract of less than $250,000; or
(2) the part of a public work contract for which the federal government provides money if, as to that part, the contractor is required to pay the prevailing wage rate as determined by the United States Secretary of Labor.
(c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is suspended, the Governor may declare this subtitle suspended for the same period for:
(1) the part of that public work contract for which the United States Secretary of Labor would have been required to make a determination of a prevailing wage rate; or
(2) that entire public work contract.
(d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in a designated tax increment financing development district created on or after July 1, 2018, established under State or local law.
(2) This subsection applies to the construction of a structure or work only if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince George’s County authorizes that the construction of the structure or work is subject to this subtitle.
(e) This subtitle applies to a mechanical systems service contract that is part of a public work contract with a value in excess of the threshold specified in 41 U.S.C. 6702(a)(2), the McNamara–O’Hara Service Contract Act of 1965 (SCA).
(a) (1) The Commissioner shall adopt regulations reasonably required to carry out this subtitle.
(2) The regulations may include exemptions for minimum number of hours worked or workers employed.
(3) Payroll records shall be kept in accordance with those regulations.
(b) On or before January 1 of each year, the Commissioner shall submit to the Governor and to the Secretary of Labor an annual report that:
(1) describes the activities of the Commissioner under this subtitle during the preceding calendar year; and
(2) includes:
(i) full information about the operation of this subtitle; and
(ii) other information about prevailing wage rates, as the Commissioner desires.
(a) A contractor or subcontractor under a public work contract subject to this subtitle:
(1) shall employ only competent workers and apprentices who qualify under subsection (b) of this section;
(2) may not employ any individual classified as a helper or trainee; and
(3) may refuse to employ a worker who is a resident of another state if the Commissioner finds that the other state enforces a law that prohibits a resident of this State from employment as a worker under a public work contract in that state, unless:
(i) the refusal is in conflict or otherwise inconsistent with a federal law applicable to the public work;
(ii) the federal government is to pay wholly or partly for the public work; and
(iii) the inconsistency with federal law jeopardizes the availability of federal funds for the public work.
(b) An apprentice under a public work contract shall be part of and used in accordance with an apprenticeship program registered with the Council and approved by the Office of Apprenticeship of the United States Department of Labor.
(a) (1) For each public work to which this subtitle applies, the Commissioner shall determine the prevailing wage rate for each classification of worker engaged in work of the same or a similar character.
(2) The Commissioner shall determine the prevailing wage rates for both straight time and overtime.
(3) These determinations shall be made in accordance with:
(i) the applicable provisions of Title 10, Subtitles 1 through 3 of the State Government Article; and
(ii) to the extent not inconsistent with those provisions, the requirements of this section.
(b) (1) Except as provided in subsection (c) of this section, the prevailing wage rate for straight time for a worker is the rate paid:
(i) in the locality;
(ii) on projects similar to the proposed public work;
(iii) for work of the same or a similar character as that to be performed on the public work; and
(iv) to 50% or more of the workers in the worker’s occupational classification.
(2) The prevailing wage rate for overtime for a worker shall be at least time and a half the prevailing wage rate for straight time for that worker.
(c) (1) If fewer than 50% of the workers in the locality working in the same classification receive the same wage rate:
(i) the prevailing wage rate shall be the rate paid to at least 40% of those workers; or
(ii) if fewer than 40% receive the same wage rate, the rate shall be a weighted average rate obtained by:
1. adding the products obtained by multiplying each hourly rate paid to workers in the classification by the number of workers receiving that rate; and
2. dividing that sum by the total number of workers in the classification.
(2) If the Commissioner determines that there is not a substantial number of competent workers engaged in similar work in the locality, the Commissioner shall determine the prevailing wage rate based on the nearest locality within the State that most closely approximates that locality in:
(i) population;
(ii) degree of industrialization; and
(iii) skill of work force.
(d) The calculation of the rate paid in the locality shall include the basic hourly rate of pay and either:
(1) if a contractor is not required by law to provide fringe benefits, the hourly rate of contribution irrevocably made by a contractor or subcontractor to a third person under a fund, plan, or program that provides:
(i) medical, surgical, or hospital care;
(ii) retirement, disability, or death benefits, including a profit sharing plan that provides benefits on retirement;
(iii) unemployment, life, or accident insurance or compensation;
(iv) insurance or compensation for injury or illness resulting from occupational activity;
(v) vacation and holiday pay;
(vi) subsidies to defray costs of apprenticeship or other similar programs; or
(vii) other bona fide fringe benefits; or
(2) the hourly rate of costs to the contractor or subcontractor that reasonably may be anticipated in providing the fringe benefits specified in item (1) of this subsection under an enforceable commitment to carry out a financially responsible plan or program that is communicated in writing to the workers.
(e) An apprentice under a public work contract shall be paid at least the percentage, set by the Council, of the prevailing wage rate for a mechanic in the trade in which the apprentice is employed.
(a) One time per year, the Commissioner shall determine the prevailing wage rate for a classification of worker in a locality by considering among other things:
(1) any other payroll information relevant to the determination; and
(2) wage rates established by collective bargaining agreements.
(b) The Commissioner shall mail notice as provided in § 17-210(b)(2) of this subtitle at least 60 days before making a determination under this section.
(c) (1) The determination, as issued under this section or modified in a proceeding under § 17-211 of this subtitle, is effective for 1 year from the date upon which the Commissioner issued the determination under this section.
(2) The Commissioner shall show on the determination the date upon which it expires.
(3) Upon expiration of the prevailing wage determination for a locality, the Commissioner shall issue a new determination for the locality.
(4) A determination applies to a public work covered by this subtitle that is the subject of a call for bids or proposals published on or before the date upon which it expires.
(a) Before a public body advertises for bids or proposals for a public work contract, it shall request the Commissioner to determine the prevailing wage rate for each classification of worker required to perform the public work contract.
(b) (1) The Commissioner shall give notice of each prevailing wage rate determination for a public work contract under this subtitle.
(2) On written request, the Commissioner shall mail to any representative of any classification, any employer, or any representative of any group of employers notice:
(i) that a determination will be made, at least 60 days before making the determination; and
(ii) of the determination, after making the determination.
(c) After a determination has been made, the public body shall include each prevailing wage rate for straight time and overtime:
(1) in any call for bids or proposals;
(2) in the specifications for the public work contract; and
(3) in the public work contract.
(a) A determination of a prevailing wage rate issued under § 17-209 of this subtitle is subject to review when a public body publishes a call for bids or proposals in which the determination is used for the first time following its issuance under § 17-209 of this subtitle.
(b) (1) Within 10 days after a public body publishes any call for bids or proposals, as described in subsection (a) of this section, a petition for review of a determination of a prevailing wage rate may be submitted to the Commissioner by:
(i) the public body;
(ii) a prospective bidder or offeror or a representative of a prospective bidder or offeror;
(iii) a representative of a group of employers engaged in the type of construction for which the prevailing wage rate was determined; or
(iv) a representative of a classification of worker for which the prevailing wage rate was determined.
(2) A petition under this subsection shall be verified and shall set forth the facts on which it is based.
(3) If a petition is not filed within the period set under paragraph (1) of this subsection, the determination is final and is the rate applicable in the locality for the remainder of the 1-year period for which it was issued under § 17-209 of this subtitle.
(c) (1) Within 2 days after a petition is submitted under this section, the petitioner shall send a copy to the public body.
(2) On receipt of a copy of the petition, the public body shall extend the closing date for bids or proposals until 5 days after the Commissioner publishes the final determination under subsection (f) of this section.
(d) (1) Within 20 days after a petition is submitted, the Commissioner shall:
(i) after giving the notice required under paragraph (3) of this subsection, conduct an investigation; and
(ii) hold a public hearing to review the petition.
(2) If more than 1 petition is submitted, the Commissioner may consolidate the hearings on any of the petitions.
(3) The Commissioner shall notify the petitioner, public body, recognized collective bargaining representative for the classification for which a review is requested, and any other person entitled to receive notice under § 17-210(b)(2) of this subtitle.
(e) At the hearing:
(1) the Commissioner shall introduce as evidence the investigation conducted under subsection (d) of this section and the other facts that formed the basis of the Commissioner’s original determination; and
(2) any interested party, including the Commissioner, may introduce other evidence material to the issue.
(f) Within 10 days after the conclusion of a review hearing, the Commissioner shall send to the public body and each interested party, a determination of the prevailing wage rate. This determination is final and is the rate applicable in the locality for the remainder of the 1-year period for which it was issued under § 17-209 of this subtitle.
A member of a public body may not vote for the award of a public work contract or vote to disburse money for the construction of a public work unless:
(1) the public body has asked the Commissioner to determine the prevailing wage rates in the locality for each classification of worker required to perform the public work contract; and
(2) the determination has been made part of the specifications and public work contract for the public work.
(a) Before entering into a public work contract, a public body shall require that the public work contract include a clause for payment:
(1) to a worker, of at least the prevailing wage rate; and
(2) to an apprentice, of at least the rate that the Council sets for an apprentice based on a percentage of the prevailing wage rate for a mechanic in that trade.
(b) A public body shall require bonds on public work contracts to guarantee the faithful performance of the prevailing wage rate clause of the public work contract.
(a) Except as provided in subsection (b) of this section, each contractor and subcontractor under a public work contract shall pay not less than the prevailing wage rate of straight time to an employee for each hour that the employee works.
(b) A contractor and subcontractor shall pay an employee the prevailing wage rate of overtime for each hour that the employee works:
(1) in excess of 10 hours in any single calendar day;
(2) in excess of 40 hours per each workweek; or
(3) on Sunday or a legal holiday.
(a) Each contractor and subcontractor subject to this subtitle shall pay each employee not less than the prevailing wage rate required under this subtitle:
(1) unconditionally;
(2) without subsequent rebate; and
(3) except as provided in subsection (b) of this section, without deductions for:
(i) food;
(ii) sleeping accommodations;
(iii) transportation;
(iv) use of small tools; or
(v) any other thing of any kind.
(b) A contractor or subcontractor may make deductions that are:
(1) required by law;
(2) required or allowed by a collective bargaining agreement between a bona fide labor organization and the contractor or subcontractor; or
(3) contained in a written agreement between an employee and an employer undertaken at the beginning of employment, if the agreement:
(i) concerns food, sleeping accommodations, or other similar items;
(ii) is submitted by the employer to the public body awarding the public work contract; and
(iii) is approved by the public body as fair and reasonable.
(a) A laborer may perform any work that is not ordinarily performed by a mechanic or mechanic’s apprentice, but shall be paid the prevailing wage rate for the work performed.
(b) (1) A laborer receiving the prevailing wage rate for laborers may not perform work ordinarily performed by a mechanic or mechanic’s apprentice.
(2) If a laborer performs work ordinarily performed by any mechanic or mechanic’s apprentice, the contractor or subcontractor shall pay the laborer for the entire time of performance of that work at the prevailing wage rate for a mechanic.
(a) Each contractor under a public work contract subject to this subtitle shall:
(1) post a clearly legible statement of each prevailing wage rate to be paid under the public work contract; and
(2) keep the statement posted during the full time that any employee is employed on the public work contract.
(b) The statement of prevailing wage rates shall be posted in a prominent and easily accessible place at the site of the public work.
(c) Subject to § 10-1001 of the State Government Article, the Commissioner may impose on a person that violates this section a civil penalty of up to $50 per violation.
(a) Each contractor required to pay the prevailing wage rate shall:
(1) keep payroll records covering work performed directly at the work site in accordance with regulations adopted by the Commissioner; and
(2) allow the Commissioner or the public body to inspect the records at any reasonable time and as often as necessary.
(b) (1) Each contractor shall submit a complete copy of the payroll records of the contractor and, for work performed at the work site, of the subcontractors in the form that the Commissioner specifies by regulation to:
(i) the public body; and
(ii) the Commissioner.
(2) The Commissioner and the public body shall make payroll records available for public inspection during regular business hours.
(c) Each copy of the payroll records shall be accompanied by a statement that is signed by the contractor or, for the subcontractor’s records, by the subcontractor and indicates that:
(1) the payroll records are correct;
(2) the wage rates paid are not less than those established by the Commissioner as set forth in the public work contract;
(3) the classification set forth for each employee conforms with the work performed by that employee; and
(4) the contractor or subcontractor has complied with each requirement of this subtitle.
(d) If a contractor is late in submitting copies of the payroll records required under subsection (b) of this section:
(1) the public body may postpone the processing of partial payment estimates under the public work contract pending receipt of the copies; and
(2) the contractor shall be liable to the public body for liquidated damages of $10 for each calendar day the records are late.
(a) Each public body that awards a public work contract shall:
(1) take cognizance of a complaint of a violation of this subtitle committed in the course of performance of the public work contract; and
(2) when making payments to the contractor, withhold any amount that the contractor owes to its employees or the public body as a result of the violation.
(b) (1) The Commissioner shall promptly institute an investigation as necessary to determine compliance with this subtitle and regulations adopted under this subtitle when the Commissioner:
(i) receives a complaint of a violation of this subtitle; and
(ii) is otherwise made aware of a possible violation of this subtitle.
(2) Any written or oral complaint or statement made by an employee is confidential and may not be disclosed to the employer without the consent of the employee.
(c) A contractor or subcontractor subject to an investigation under this section shall allow the Commissioner, during normal working hours, to observe work being performed at the site of a public work project, to interview employees, and to review books and records, to determine:
(1) the correctness of each classification;
(2) the ratio of apprentices to mechanics; and
(3) payment of straight and overtime prevailing wage rates as required under the public work contract.
(d) (1) If, after investigation, the Commissioner determines that a provision of this subtitle may have been violated, the Commissioner immediately shall notify the public body.
(2) On notification, the public body shall withhold from payment due the contractor or subcontractor an amount sufficient to:
(i) pay each employee of the contractor or subcontractor the full amount of wages due under this subtitle; and
(ii) satisfy a liability of a contractor for liquidated damages as provided in § 17–222(a) of this subtitle, pending a final determination.
(3) If a subcontractor is responsible for a violation of this subtitle, the contractor:
(i) may withhold from payment to the subcontractor an amount equal to the amount withheld from the contractor under paragraph (2) of this subsection; or
(ii) if payment has been made to the subcontractor, may sue to recover that amount.
(e) (1) (i) If, after investigation, the Commissioner makes an initial determination that a contractor or subcontractor may have violated the requirement to pay the prevailing wage rate under this subtitle, the Commissioner immediately may issue a stop work order to cease all business operations at every site where a violation occurred and shall:
1. notify the contractor or subcontractor of the violation, to include a statement of facts disclosed in the investigation;
2. meet with the contractor or subcontractor within 48 hours of issuing the stop work order; and
3. provide the contractor or subcontractor a reasonable timeframe, as determined by the Commissioner, to resolve the violation.
(ii) The Commissioner may issue the stop work order even if the Commissioner has referred the matter to the Attorney General or another appropriate authority for investigation or prosecution.
(2) If a stop work order is issued against a subcontractor:
(i) the prime contractor on the contract may not terminate the contract with the subcontractor until 48 hours after the meeting between the Commissioner and the subcontractor;
(ii) the prime contractor may not terminate the contract with the subcontractor if the violation has been resolved; and
(iii) the prime contractor may not incur any civil liability for damages to the subcontractor whose contract was terminated, other subcontractors affected by the termination, or any public body resulting from the termination.
(3) The Commissioner may impose a penalty of up to $5,000 per day against a contractor or subcontractor for each day the contractor or subcontractor violates a stop work order.
(4) A stop work order issued under this subsection shall:
(i) take effect when served on the contractor or subcontractor; and
(ii) remain in effect until the Commissioner issues an order releasing the stop work order.
(5) The Commissioner shall issue an order releasing a stop work order issued under this subsection on a showing by the contractor or subcontractor that the contractor or subcontractor:
(i) is properly paying employees the appropriate prevailing wage rate set in accordance with this subtitle; and
(ii) has paid all penalties assessed against the contractor or subcontractor under this subtitle.
(6) The Commissioner may include in the order releasing a stop work order a requirement that the contractor or subcontractor submit periodic reports to the Commissioner demonstrating compliance with the requirements of this subtitle.
(f) (1) (i) Within 72 hours after a contractor or subcontractor receives a stop work order under subsection (e) of this section, the contractor or subcontractor may submit a written appeal to the Commissioner on the stop work order.
(ii) If an appeal is not requested within 72 hours, the stop work order shall become a final order of the Commissioner.
(2) The Commissioner shall hold a hearing within 7 days after receiving the written appeal.
(3) If the Commissioner does not hold a hearing within 7 days after receiving the written appeal, the contractor or subcontractor may request an administrative law judge to release the order.
(4) (i) Within 5 days after holding a hearing on a stop work order under this subsection, the Commissioner shall issue a written decision on the appeal.
(ii) The decision shall include:
1. an explanation of why the order was upheld or released; and
2. the grounds on which the result was determined.
(g) If after investigation, the Commissioner determines that a provision of this subtitle may have been violated and has not issued a stop work order in accordance with subsection (e) of this section, the Commissioner shall:
(1) issue an order for a hearing within 30 days after completing an investigation; and
(2) expeditiously conduct the hearing.
(h) (1) At least 10 days before the hearing, the Commissioner shall serve, personally or by mail, written notice of the hearing on all interested persons, including the public body.
(2) The notice shall include:
(i) a statement of the facts disclosed in the investigation; and
(ii) the time and place of the hearing.
(i) (1) In conducting an investigation or hearing under this section, the Commissioner is deemed to be acting in a quasi–judicial capacity and may:
(i) issue subpoenas;
(ii) administer oaths; or
(iii) examine witnesses.
(2) The Commissioner shall grant each interested person an opportunity to speak at the hearing on matters relevant to the complaint.
(j) (1) After the conclusion of the hearing, the Commissioner shall:
(i) file in the Commissioner’s office an order that states the Commissioner’s determination; and
(ii) serve, personally or by mail, the public body and parties to the hearing with a copy of the order and notice of its filing.
(2) If the Commissioner finds a violation, the Commissioner shall determine the amount of liquidated damages and restitution to be assessed for the violation.
(3) On the entry and service of a Commissioner’s order, the public body, from the money due the contractor or subcontractor, shall:
(i) pay the affected employees the full amount of wages due them; and
(ii) satisfy the obligation of the contractor or subcontractor to pay liquidated damages as required under § 17–222 of this subtitle.
(k) (1) In addition to any other penalty, the Commissioner may impose a civil fine of not more than $1,000 against a contractor or subcontractor that knowingly fails to produce records or attend a hearing or deposition as required by an investigation into a possible prevailing wage violation under subsection (b) of this section.
(2) Each day that a violation under paragraph (1) of this subsection continues is a separate offense.
(a) (1) Except as provided under paragraph (2) of this subsection, a contractor under a public work contract is liable to the public body for liquidated damages of $20 for each laborer or other employee for each day for which:
(i) the laborer is paid less than the prevailing wage rate of a mechanic while performing a task required to be performed by a mechanic or mechanic’s apprentice; or
(ii) the employee is paid less than the prevailing wage rate.
(2) A contractor under a public work contract that knew or reasonably should have known of the contractor’s obligation to pay the prevailing wage rate and that deliberately failed or refused to pay the prevailing wage rate is liable to the public body for liquidated damages of $250 for each laborer or other employee for each day for which:
(i) the laborer is paid less than the prevailing wage rate of a mechanic while the laborer is performing a task required to be performed by a mechanic or mechanic’s apprentice; or
(ii) the employee is paid less than the prevailing wage rate.
(b) (1) If a contractor or subcontractor pays an employee less than the amount the employee is entitled to receive for the work performed, the contractor shall make restitution to the employee.
(2) The contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor’s employees.
(a) If a public body does not comply with a provision of this subtitle, the Commissioner:
(1) shall give written notice of the noncompliance to the public body;
(2) may require compliance within a sufficient period as determined by the Commissioner; and
(3) after the expiration of that period, may inform the Attorney General in writing that notice has been given and that the public body has not complied with the notice.
(b) As soon as possible after being informed by the Commissioner, the Attorney General shall sue, in the name of the State, in the circuit court for the county where the public body is located to seek any remedies that the court may find appropriate to carry out the policies of this subtitle.
(c) In the action, the State and the public body each shall have the right of appeal that is provided by law in an injunction proceeding.
(a) (1) If an employee under a public work contract is paid less than the prevailing wage rate for that employee’s classification for the work performed, the employee may file a complaint with the Commissioner.
(2) Except as otherwise provided in this section, a complaint filed under this section shall be subject to the provisions of § 17–221 of this subtitle.
(3) If the Commissioner’s investigation determines that the employer violated provisions of this subtitle, the Commissioner shall try to resolve the issue informally.
(4) (i) If the Commissioner is unable to resolve the matter informally, the Commissioner shall issue an order for a hearing in accordance with § 17–221 of this subtitle.
(ii) If, at the conclusion of a hearing ordered under subparagraph (i) of this paragraph, the Commissioner determines that the employee is entitled to restitution under this subtitle, the Commissioner shall issue an order in accordance with § 17–221 of this subtitle.
(iii) If an employer of an employee found to be entitled to restitution under subparagraph (ii) of this paragraph is no longer working under a contract with a public body, the Commissioner may order that restitution be paid directly by the employer to the employee within a reasonable period of time, as determined by the Commissioner.
(5) If an employer fails to comply with an order to pay restitution to an employee under paragraph (4)(iii) of this subsection, the Commissioner or the employee may bring a civil action to enforce the order in the circuit court in the county where the employee or employer is located.
(b) (1) If an employee under a public work contract is paid less than the prevailing wage rate for that employee’s classification for the work performed, the employee is entitled to sue to recover the difference between the prevailing wage rate and the amount received by the employee.
(2) A determination by the Commissioner that a contractor is required to make restitution under subsection (a)(4) of this section does not preclude an employee from filing an action under this subsection.
(c) (1) An action under this section is considered to be a suit for wages.
(2) A judgment in an action under this section shall have the same force and effect as any other judgment for wages.
(3) An action brought under this section for a violation of this subtitle shall be filed within 3 years from the date the affected employee knew or should have known of the violation.
(d) (1) The failure of an employee to protest orally or in writing the payment of a wage that is less than the prevailing wage rate is not a bar to recovery in an action under this section.
(2) A contract or other written document in which an employee states that the employee shall be paid less than the amount required by this subtitle does not bar the recovery of any remedy required under this subtitle.
(e) (1) Except as provided in paragraph (3) of this subsection, if the court in an action filed under this section finds that an employer paid an employee less than the requisite prevailing wage, the court shall award the affected employee the difference between the wage actually paid and the prevailing wage at the time that the services were rendered.
(2) (i) Subject to subparagraph (ii) of this paragraph, unpaid fringe benefit contributions owed for an employee in accordance with this section shall be paid to the appropriate benefit fund, plan, or program.
(ii) In the absence of an appropriate benefit fund, plan, or program, the amount owed for fringe benefits for an employee shall be paid directly to the employee.
(3) The court may order the payment of double damages or treble damages under this section if the court finds that the employer withheld wages or fringe benefits willfully and knowingly or with deliberate ignorance or reckless disregard of the employer’s obligations under this subtitle.
(4) In an action under this section, the court shall award a prevailing plaintiff reasonable counsel fees and costs.
(5) If the court finds that an employee submitted a false or fraudulent claim in an action under this section, the court may order the employee to pay the employer reasonable counsel fees and costs.
(6) The contractor and subcontractor shall be jointly and severally liable for any violation of the subcontractor’s obligations under this section.
(f) (1) Subject to paragraph (2) of this subsection, an action filed in accordance with this section may be brought by one or more employees on behalf of that employee or group of employees and on behalf of other employees similarly situated.
(2) An employee may not be a party plaintiff to an action brought under this section unless that employee files written consent with the court in which the action is brought to become a party to the action.
(g) (1) A person found to have made a false or fraudulent representation or omission known to be false or made with deliberate ignorance or reckless disregard for its truth or falsity regarding a material fact in connection with any prevailing wage payroll record required by § 17–220 of this subtitle is liable for a civil penalty of $1,000 for each falsified record.
(2) The penalty shall be recoverable in a civil action filed in accordance with this section and paid to the State General Fund.
(h) An employer may not discharge, threaten, or otherwise retaliate or discriminate against an employee regarding compensation or other terms and conditions of employment because that employee or an organization or other person acting on behalf of that employee:
(1) reports or makes a complaint under this subtitle or otherwise asserts the worker’s rights under this section; or
(2) participates in any investigation, hearing, or inquiry held by the Commissioner under § 17–221 of this subtitle.
(i) (1) A contractor or subcontractor may not retaliate or discriminate against an employee in violation of this section.
(2) If a contractor or subcontractor retaliates or discriminates against an employee in violation of this section, the affected employee may file an action in any court of competent jurisdiction within 3 years from the employee’s knowledge of the action.
(3) If the court finds in favor of the employee in an action brought under this subsection, the court shall order that the contractor or subcontractor:
(i) reinstate the employee or provide the employee restitution, as appropriate;
(ii) pay the employee an amount equal to three times the amount of back wages and fringe benefits calculated from the date of the violation; and
(iii) pay reasonable counsel fees and other costs.
(a) A person may not:
(1) violate the wage provisions of a public work contract;
(2) allow or require an employee to work for less than the applicable prevailing wage rate;
(3) except as provided in subsection (b) of this section, ask an employee or prospective employee to give anything of value to that person or any other person on a statement, representation, or understanding that failure to comply with the request or demand will prevent the employee from procuring or retaining employment; or
(4) directly or indirectly, authorize a violation of this subtitle by any other person.
(b) Subsection (a) of this section does not apply to any agent of a collective bargaining organization acting in collection of sums as allowed by the National Labor Relations Act.
(a) (1) After investigation and entry of an order in accordance with § 17-221 of this subtitle, the Commissioner shall file with the Secretary of State a list of the contractors and any subcontractors who persistently and willfully violate the provisions of this subtitle.
(2) Filing under this subsection shall be notice to a public body and its representatives.
(b) (1) If the name of a contractor or any subcontractor appears on the list, that contractor or subcontractor shall be prohibited from entering into a contract for construction of a public work directly or indirectly for 2 years from the day on which the list is filed.
(2) A public body may not award a contract for construction of a public work to a person who is prohibited from entering into a contract under this section.
On a showing by clear and convincing evidence that a violation of this subtitle has occurred, the Commissioner shall refer any complaint that alleges a violation of § 13–1007 or § 13–1024 of the Tax – General Article to the:
(1) Comptroller;
(2) State’s Attorney with jurisdiction over the alleged violation;
(3) U.S. Department of Justice;
(4) U.S. Department of Labor; and
(5) U.S. Department of the Treasury.
(a) In this subtitle the following words have the meanings indicated.
(b) “American steel product” means a product that is:
(1) produced from steel made in any state by the open hearth, basic oxygen, electric furnace, Bessemer, or other steel making process; and
(2) rolled, forged, drawn, cast, extruded, or otherwise similarly processed.
(c) “Public body” means:
(1) the State;
(2) a unit of the State government; or
(3) a county, municipal corporation, school or conservation district, or other governmental entity that, by State law, awards contracts for public construction or other public work.
The provisions of this subtitle do not apply if they conflict with a federal law or grant affecting a contract.
(a) Except as otherwise provided in this subtitle, a public body shall require a contractor or subcontractor to use or supply only American steel products in the performance of a contract for:
(1) constructing or maintaining a public work; or
(2) buying or manufacturing machinery or equipment that:
(i) is composed of at least 10,000 pounds of steel products; and
(ii) is to be installed at a public work site.
(b) This section does not apply if the head of a public body determines that:
(1) the price of American steel products is not reasonable, as provided in § 17-304 of this subtitle;
(2) American steel products are not produced in sufficient quantity to meet the requirements of the contract; or
(3) the purchase of American steel products would be inconsistent with the public interest.
(c) The public body shall give notice of the requirement for American steel products in the invitation for bids or request for proposals.
The Board shall adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article, stating that a bid or offered price of an American steel product shall be considered reasonable if it does not exceed the sum of the bid or offered price of a similar steel product of foreign origin, including duty, plus:
(1) 20% of that bid or offered price; or
(2) 30% of that bid or offered price if the steel product is produced in a “substantial labor surplus area” as defined by the United States Department of Labor.
(a) Unless a public body is satisfied that a person has completed the work in full compliance with §§ 17-303 and 17-304 of this subtitle, the public body may not pay or authorize a payment for work subject to §§ 17-303 and 17-304 of this subtitle to a person under a contract.
(b) If a person receives a payment that should not have been made under subsection (a) of this section, the Attorney General may recover the portion of the payment that is attributable to work that does not comply with §§ 17-303 and 17-304 of this subtitle directly from the person who did not comply with §§ 17-303 and 17-304 of this subtitle by filing a complaint in the circuit court for the county where the contract was executed or performed.
This subtitle may be cited as the “Maryland Buy American Steel Act”.
In this subtitle, “contribution” has the meaning stated in § 1-101 of the Election Law Article.
Each State or local government procurement contract shall include a clause covering the obligation of a contractor to comply with the political contribution reporting requirements under Title 14 of the Election Law Article to which the contractor may be subject.
(a) In this subtitle the following words have the meanings indicated.
(b) “eMaryland Marketplace” has the meaning stated in § 13–101 of this article.
(c) “Procurement” means procurement by competitive sealed bidding, competitive sealed proposals, or noncompetitive negotiation.
(a) This section does not apply to emergency procurement under § 13–108 of this Division II.
(b) In addition to any other provision of law, the following persons shall use eMaryland Marketplace to publish notice of a procurement and publish a notice of award of a procurement that is at the same amount or exceeds the amount required by the Board for a State contract to be published in eMaryland Marketplace:
(1) a unit of State government;
(2) a county;
(3) a municipality;
(4) a bicounty or multicounty governmental agency;
(5) a special tax district, sanitary district, drainage district, soil conservation district, and water supply district;
(6) a public institution of higher education;
(7) a public school; and
(8) except for the Maryland Health and Higher Educational Facilities Authority, an entity exempt from the provisions of this Division II in accordance with § 11–203 of this article.
(c) This section may not be construed to prohibit a person listed in subsection (b) of this section from publishing notice of a procurement or publishing a notice of award in accordance with any other law or policy.
(d) An unintentional violation of this section may not constitute grounds to challenge or appeal:
(1) the award of a procurement; or
(2) the process through which a procurement was conducted.
(a) In this section, “restricted individual” has the meaning stated in § 5–501.1 of the General Provisions Article.
(b) The Department of General Services shall include with each notice of a procurement published on eMaryland Marketplace on or after October 1, 2025, a check–off box to indicate an ownership interest by the Governor or a restricted individual in the bidder or offeror as reported under § 5–501.1 of the General Provisions Article.
(a) In this subtitle the following words have the meanings indicated.
(b) “Apprenticeship training program” means an apprenticeship training program that is registered with, and approved by, the Apprenticeship and Training Council or the U.S. Department of Labor.
(c) “Covered craft” means a classification of workers listed in the prevailing wage determination applicable to the covered project.
(d) “Covered project” means a project for the construction of a public work, as defined under § 17–201 of this title, that is valued at $500,000 or more.
(e) “Department” means the Maryland Department of Labor.
(f) “Fund” means the State Apprenticeship Training Fund established under § 17–602 of this subtitle.
(g) “Participates in an apprenticeship training program” means that a contractor or subcontractor makes regular financial contributions for each covered craft to apprenticeship training programs for covered crafts during the term of the covered project that are at least equal to the hourly fringe benefit contribution rates required for apprenticeship training by the applicable prevailing wage determination for the project, as specified by the Secretary.
(h) “Secretary” means the Secretary of Labor.
(a) There is a State Apprenticeship Training Fund in the Department.
(b) The Fund consists of:
(1) payments made by contractors or subcontractors in accordance with this subtitle and Subtitle 6A of this title;
(2) penalties collected as a result of violations of this subtitle and Subtitle 6A of this title; and
(3) penalties collected as a result of violations of Title 14, Subtitle 8 of this article.
(c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.
(d) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e) The Secretary shall use money in the fund to:
(1) promote preapprenticeship programs and other workforce development programs in the State’s public secondary schools and community colleges that assist students in preparing for and entering apprenticeship training programs; and
(2) pay any costs associated with carrying out the provisions of this subtitle and Subtitle 6A of this title or Title 14, Subtitle 8 of this article.
(a) A contractor that is awarded a procurement contract for a covered project shall provide to a unit, as a condition of receiving the contract, written verification that:
(1) the contractor participates in an apprenticeship training program for each covered craft in which it will employ persons for the covered project;
(2) the contractor will make payments to the Fund; or
(3) the contractor will make payments in amounts determined under § 17–605 of this subtitle to a registered apprenticeship program or to an organization that has registered apprenticeship programs for the purpose of supporting these programs.
(b) The written verification required under subsection (a) of this section shall be provided by a contractor to the unit responsible for the project before the contractor commences performance under the procurement contract.
(c) Organizations that have registered apprenticeship programs and receive funds from contractors under subsection (a)(3) of this section shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.
(d) The Secretary shall adopt regulations to establish a process for auditing organizations that provide registered apprenticeship programs to ensure that all funds received under subsection (a)(3) of this section are used solely to improve and expand apprenticeship programs in the State.
(a) A subcontractor that performs work at a value exceeding the small procurement amount specified in § 13–109 of this article for a covered project shall provide to a unit written verification that:
(1) the subcontractor participates in an apprenticeship training program for each covered craft in which it will employ persons for the covered project;
(2) the subcontractor will make payments to the Fund; or
(3) the subcontractor will make payments in amounts determined under § 17–605 of this subtitle to a registered apprenticeship program or to an organization that has registered apprenticeship programs for the purpose of supporting these programs.
(b) The written verification required under subsection (a) of this section shall be provided by a subcontractor to the unit responsible for the project before the subcontractor commences performance under the procurement contract.
(c) Organizations that have registered apprenticeship programs and receive funds from contractors under subsection (a)(3) of this section shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.
(d) The Secretary shall adopt regulations to establish a process for auditing organizations that provide registered apprenticeship programs to ensure that all funds received under subsection (a)(3) of this section are used solely to improve and expand apprenticeship programs in the State.
(a) (1) A contractor or subcontractor that elects to make payments to the Fund in accordance with this subtitle shall make payments, as determined by the Secretary, not to exceed 25 cents per hour for each employee in each covered craft who is employed by the contractor or subcontractor on the covered project.
(2) If the prevailing wage determination for a covered craft includes a fringe benefit contribution for apprenticeship programs that exceeds 25 cents, the contractor or subcontractor shall pay the difference to the employees in the covered craft in wages.
(3) Payments made under this section fulfill any obligations of the contractor or subcontractor regarding contributions for apprenticeship programs included in the prevailing wage determination under § 17–208 of this title.
(4) Payments made under paragraph (1) of this section are permissible deductions under § 17–215(b) of this title.
(5) Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis.
(b) (1) If the Secretary determines that a contractor or subcontractor for a covered project has made contributions to an apprenticeship training program at rates lower than those required by this subtitle, the contractor or subcontractor shall make payments to the Fund for the difference between its contribution and the contribution rate required by this subtitle.
(2) Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis.
(c) A contractor shall report all apprenticeship payments made under this subtitle on prevailing wage payroll records required by § 17–220 of this title.
(d) (1) A contractor or subcontractor that makes contributions to the Fund, a registered apprenticeship program, or an organization that has registered apprenticeship programs may request that its contributions be directed to a specific preapprenticeship or workforce development program.
(2) The Secretary shall make a good–faith effort to accommodate requests received in accordance with paragraph (1) of this subsection.
(a) A contractor or subcontractor that fails to meet the requirements of this subtitle shall be liable for an amount equal to twice the amount of unpaid apprenticeship training contributions required by this subtitle.
(b) (1) In this subsection, “willfully” means representations or omissions known to be false or made with deliberate ignorance or reckless disregard for their truth or falsity.
(2) Any person, firm, or corporation that is found to have made willfully a false or fraudulent representation or omission regarding a material fact in connection with prevailing wage records required by this section shall be liable for a civil penalty in an amount of up to $1,000 for each employee and each falsified record.
(3) Penalties shall be recoverable in civil actions and paid to the State.
(c) (1) The Secretary shall adopt regulations to establish administrative procedures for the collection of payments under this subtitle.
(2) (i) The Secretary may file suit to enforce this section in any court of competent jurisdiction.
(ii) In an action filed under this subsection, the court shall require the contractor or subcontractor to pay the amount required by subsection (a) of this section, including interest, reasonable counsel fees, and court costs.
(a) In this subtitle the following words have the meanings indicated.
(b) “Construction” includes:
(1) building;
(2) reconstructing;
(3) improving;
(4) enlarging;
(5) painting and decorating;
(6) altering;
(7) maintaining; and
(8) repairing.
(c) (1) “Covered contract” means a contract:
(i) for a capital construction project funded with at least $1,000,000 of funds in the State capital budget;
(ii) entered into by the recipient of the funding in the State capital budget and a contractor, or the contractor and a subcontractor; and
(iii) for an amount of $500,000 or more.
(2) “Covered contract” does not include a contract for a covered project as defined in § 17–601(d) of this title.
(d) “Department” means the Maryland Department of Labor.
(e) “Fund” means the State Apprenticeship Training Fund established under § 17–602 of this title.
(f) “Registered apprenticeship program” means an apprenticeship program that is registered with, and approved by, the Department or the United States Department of Labor.
(g) “Secretary” means the Secretary of Labor.
(a) Except as provided in subsection (b) of this section, each contractor or subcontractor awarded a covered contract shall:
(1) (i) be affiliated with a registered apprenticeship program; and
(ii) use apprentices from a registered apprenticeship program for each craft or trade in which the contractor or subcontractor employs persons to complete the covered contract;
(2) make payments to the Fund; or
(3) make payments in amounts determined under § 17–6A–03 of this subtitle to a registered apprenticeship program for the purpose of supporting the program.
(b) A contractor or subcontractor is not subject to the requirements of subsection (a) of this section if there are no registered apprenticeship programs for the craft or trade in which the contractor or subcontractor employs persons to complete the covered contract.
(a) (1) A contractor or subcontractor that elects to make payments to the Fund in accordance with this subtitle shall make payments, as determined by the Secretary, not to exceed 25 cents per hour for each employee who is employed by the contractor or subcontractor to complete the covered contract.
(2) Payments made to the Fund in accordance with this subsection shall be made on a monthly basis.
(b) (1) If the Secretary determines that a contractor or subcontractor awarded a covered contract has made contributions to a registered apprenticeship program at rates lower than those required by this subtitle, the contractor or subcontractor shall make payments to the Fund for the difference between its contribution and the contribution rate required by this subtitle.
(2) Payments made to the Fund in accordance with this subsection shall be made on a monthly basis.
(a) (1) A contractor or subcontractor that makes contributions to the Fund or a registered apprenticeship program may request that the contributions of the contractor or subcontractor be directed to a specific preapprenticeship or workforce development program.
(2) The Secretary shall make a good–faith effort to accommodate requests received in accordance with paragraph (1) of this subsection.
(b) A registered apprenticeship program that receives funds from contractors or subcontractors under § 17–6A–02(a)(3) of this subtitle shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training.
(a) The Secretary shall adopt regulations to carry out the provisions of this subtitle.
(b) (1) The regulations shall establish the process for a contractor or subcontractor to provide written verification to the Department that the requirements of this subtitle have been met.
(2) If a contractor or subcontractor is affiliated with a registered apprenticeship program, the regulations shall require the registered apprenticeship program to provide written documentation to the contractor or subcontractor verifying the affiliation.
(c) The regulations shall establish a process for auditing organizations that provide registered apprenticeship programs to ensure that all funds received by a registered apprenticeship program under § 17–6A–02(a)(3) of this subtitle are used solely to improve and expand apprenticeship programs in the State.
(a) A contractor or subcontractor that fails to meet the requirements of this subtitle shall be liable for an amount equal to twice the amount of unpaid apprenticeship contributions required by this subtitle.
(b) (1) In this subsection, “willfully” means a representation or an omission known to be false or made with deliberate ignorance or reckless disregard for truth or falsity.
(2) (i) Any person, firm, or corporation that is found to have made willfully a false or fraudulent representation or omission regarding a material fact in connection with contributions required by this subtitle shall be liable for a civil penalty in an amount of up to $1,000 for each employee for whom contributions are required and each falsification.
(ii) A penalty shall be recoverable in a civil action and paid to the State.
(c) (1) The Secretary may file suit to enforce this section in any court of competent jurisdiction.
(2) In an action filed under this subsection, the court shall require the contractor or subcontractor to pay the amount required by subsection (a) of this section, including interest, reasonable counsel fees, and court costs.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
(a) In this subtitle the following words have the meanings indicated.
(b) “Energy sector of Iran” means activities to develop petroleum or natural gas resources or nuclear power in Iran.
(c) “Financial institution” has the meaning stated in Section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172).
(d) “Iran” includes the government of Iran and any agency or instrumentality of Iran.
(e) “Person” includes:
(1) a natural person, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group;
(2) a governmental entity or instrumentality of a government, including a multilateral development institution, as defined by the federal International Financial Institutions Act, 22 U.S.C. 262r(c)(3); or
(3) any parent, successor, subunit, direct or indirect subsidiary of, or any entity under common ownership or control with, an entity described in item (1) or (2) of this subsection.
(f) “Public body” means:
(1) the State;
(2) a county, municipal corporation, or other political subdivision;
(3) a public instrumentality; or
(4) any governmental unit authorized to award a contract.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
(a) For purposes of this subtitle, a person engages in investment activities in Iran if:
(1) the person provides goods or services of $20,000,000 or more in the energy sector of Iran, including a person that provides oil or liquefied natural gas tankers or products used to construct or maintain pipelines used to transport oil or liquefied natural gas for the energy sector of Iran; or
(2) the person is a financial institution that extends $20,000,000 or more in credit to another person for 45 days or more if the person to whom the credit is extended:
(i) will use the credit to provide goods or services in the energy sector of Iran as described in item (1) of this subsection; and
(ii) is, at the time of the extension of credit, identified on a list created under § 17–704 of this subtitle as a person engaging in investment activities in Iran.
(b) If the Board determines that the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 has been amended or any other federal act or law has been enacted or amended that authorizes or requires the reduction of the dollar amounts provided for in this section or otherwise alters the parameters of investment activities in Iran for the purpose of imposing sanctions, the Board shall adopt regulations to reduce the dollar amounts or alter the parameters.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
A person that, at the time of bid or proposal for a new contract or renewal of an existing contract, is identified on a list created by the Board under § 17–704 of this subtitle as a person engaging in investment activities in Iran is ineligible to, and may not bid on, submit a proposal for, or enter into or renew a contract with a public body for goods or services.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
(a) (1) On or before December 31, 2012, the Board shall use credible information available to the public to create a list of persons that the Board determines to be engaged in investment activities in Iran as described in § 17–702 of this subtitle.
(2) The Board shall update the list at least every 180 days.
(3) Before the Board includes a person on the list, the Board shall provide the person with 90 days’ written notice that:
(i) the Board intends to include the person on the list; and
(ii) inclusion on the list would make the person ineligible to bid on, submit a proposal for, or enter into or renew a contract with a public body for goods or services.
(4) The notice required under paragraph (3) of this subsection shall specify that if the person ceases engagement in investment activities in Iran as described in § 17–702 of this subtitle, the person may become eligible for a future contract or contract renewal with a public body for goods or services on removal from the list.
(b) (1) The Board shall provide a person with an opportunity to comment in writing to the Board that the person is not engaged in investment activities in Iran.
(2) If the person demonstrates to the Board that the person is not engaged in investment activities in Iran as described in § 17–702 of this subtitle, the Board may not include the person on the list.
(c) The Board shall remove a person from the list if the person demonstrates to the Board that the person no longer is engaged in investment activities in Iran as described in § 17–702 of this subtitle.
(d) The Board shall make every reasonable effort to avoid erroneously including a person on the list.
(e) The Board shall publish the list on the Internet.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
(a) On or after January 1, 2013, a public body shall require a person that submits a bid or proposal to the public body for a contract for goods or services, or otherwise proposes to enter into or renew a contract for goods or services with the public body, to:
(1) certify at the time the bid is submitted or the contract is renewed that the person:
(i) is not identified on the list created by the Board as a person engaging in investment activities in Iran as described in § 17–702 of this subtitle; and
(ii) is not engaging in investment activities in Iran as described in § 17–702 of this subtitle; or
(2) if the person is unable to make the certification under item (1) of this subsection, provide the public body, under penalty of perjury, a detailed description of the person’s investment activities in Iran.
(b) A public body shall submit any information provided to the public body under subsection (a)(2) of this section to the Board.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
(a) (1) If a public body, using credible information available to the public, determines that a person has submitted a false certification under § 17–705(a)(1) of this subtitle, the public body shall provide written notice to the person and an opportunity for the person to demonstrate in writing that the person is not engaged in investment activities in Iran.
(2) If the person fails to demonstrate to the public body within 90 days after the public body provides notice under paragraph (1) of this subsection that the person is not engaged in investment activities in Iran, the public body shall report to the Board and the Attorney General:
(i) the name of the person determined to have submitted a false certification; and
(ii) the information on which the public body made its decision.
(b) (1) The Attorney General may institute an action against a person determined to have submitted a false certification under § 17–705(a)(1) of this subtitle.
(2) An action brought under this section shall be brought within 3 years from the date the certification is made.
(c) If, in an action brought under this section, a court determines that a person submitted a false certification:
(1) the person shall pay all reasonable costs and fees incurred in the civil action, including:
(i) any costs incurred by the public body for the investigation that led to the finding of the false certification; and
(ii) all reasonable costs and fees incurred by the Attorney General in bringing the action;
(2) the court may impose a civil penalty equal to the greater of $1,000,000 or twice the amount of the contract for which the false certification was submitted;
(3) the public body may terminate the contract for which the false certification was submitted; and
(4) the person is ineligible to bid on a contract with a public body for a period of 3 years from the date of the court order.
(d) (1) Except as provided in paragraph (2) of this subsection, an unsuccessful bidder or any other person may not protest the award of a contract or contract renewal on the basis of a false certification.
(2) Paragraph (1) of this subsection does not prohibit a public body from filing a protest objecting to the award of a contract or contract renewal on the basis of a false certification.
(e) This subtitle does not create or authorize a private right of action.
IN EFFECT
** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **
This subtitle preempts any law, ordinance, rule, or regulation of any local governing body involving procurement contracts for goods or services with a person engaged in investment activities in Iran.
(a) In this subtitle the following words have the meanings indicated.
(b) “Aggregate employee health care expenses” means all employee health care expenses paid by a responsible bidder or subcontractor.
(c) (1) “Aggregate Social Security wages” means all wages paid by a responsible bidder or subcontractor to an employee for the period of time in which the wages are paid.
(2) “Aggregate Social Security wages” does not include wages that are above the federal Social Security contribution and benefit base.
(d) “Employee” means an individual who is employed by a responsible bidder, contractor, or subcontractor to work on or at the site of a State–funded construction project.
(e) (1) “Employee health care expenses” means any costs for health care services that are paid by a responsible bidder or subcontractor to an employee, unless the employee has coverage under another plan.
(2) “Employee health care expenses” includes:
(i) contributions made on behalf of an employee to provide credible health care coverage in the form of any group policy, contract, or program that is written or administered by a disability insurer, health care service plan, fraternal benefits society, self–insured employer plan, or any other entity, in this State or elsewhere, that arranges or provides medical, hospital, and surgical coverage not designated to supplement other private or governmental plans;
(ii) contributions made on behalf of an employee to a health savings account as defined under § 223 of the Internal Revenue Code or to any other account having a substantially equivalent purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income;
(iii) reimbursements to an employee for expenses incurred in the purchase of health care services;
(iv) payments to a third party for the purpose of providing health care services for an employee;
(v) payments under a collective bargaining agreement for the purpose of providing health care services for an employee; and
(vi) costs incurred in the direct delivery of health care services to an employee.
(f) “Health care services” means medical care, services, or goods that:
(1) qualify as a tax deductible expense under § 213 of the Internal Revenue Code; or
(2) have a substantially equivalent purpose to medical care, services, or goods that qualify as a tax deductible expense under § 213 of the Internal Revenue Code.
(g) “Subcontractor” means a person:
(1) listed on a responsive bid to provide construction services under a portion of a contract with the State; or
(2) added to a contract with the State after the contract is awarded in order to provide construction services under a portion of the contract.
(a) Subject to subsection (b) of this section, the Board shall adopt regulations that require all bidders, contractors, and subcontractors to pay employee health care expenses as required by this subtitle.
(b) This subtitle does not apply to:
(1) a minority business enterprise, as defined under Title 14, Subtitle 3 of this article; or
(2) a small business with 30 or fewer employees.
(a) By regulation, the Department of General Services and the Department of Transportation shall establish procedures for each bidder, contractor, or subcontractor that performs work on a State–funded construction project to certify that the bidder, contractor, or subcontractor pays employee health care expenses in accordance with subsection (b) of this section.
(b) (1) Except as provided in paragraph (2) of this subsection, a bidder, contractor, or subcontractor shall demonstrate the payment of employee health care expenses by submitting certification or a valid contract to the Department of General Services or the Department of Transportation evidencing that, with respect to the employees who will work on or at the site of the project:
(i) the bidder, contractor, or subcontractor pays aggregate employee health care expenses of at least 5% of the aggregate Social Security wages paid by the bidder, contractor, or subcontractor; or
(ii) the bidder, contractor, or subcontractor pays 50% or more of the required premium necessary to obtain coverage by a credible health care insurance plan.
(2) Before July 1, 2021, a bidder, contractor, or subcontractor may demonstrate payment of employee health care expenses by submitting certification or a valid contract to the Department of General Services or the Department of Transportation evidencing, with respect to the employees who will work on or at the site of the project, that:
(i) under a contract with a credible health care insurance plan or through a collective bargaining agreement, the bidder, contractor, or subcontractor pays some portion of employee health care expenses; and
(ii) the bidder, contractor, or subcontractor will meet the requirements of paragraph (1) of this subsection on renewal of the contract or collective bargaining agreement.
(c) The Department of General Services and the Department of Transportation shall collaborate with the Maryland Department of Labor to develop the form required for certification under subsection (b) of this section.
(d) A procurement officer may require a responsible bidder or subcontractor to submit records to the procurement officer that are sufficient to support the certification that the bidder or subcontractor submitted in accordance with subsection (b) of this section.
(e) If a responsible bidder that is awarded a contract to work on a State–funded construction project fails to submit records required under this section within a reasonable period of time, the procurement officer may void the contract.
(a) A person or an entity may not provide false information under this subtitle.
(b) A person who violates subsection (a) of this section shall be subject to a civil penalty of not less than $2,500 and not exceeding $25,000 for each violation.
(c) An action for a civil penalty under this section may be brought by:
(1) the unit that awarded the contract, in its own name;
(2) the Attorney General, in the name of the State; or
(3) a State’s Attorney, in the name of the State.
(a) In this section, “bus lane system operator” has the meaning stated in § 21–1133 of the Transportation Article.
(b) (1) If the City of Baltimore elects to designate a contractor to serve as the bus lane system operator for the City of Baltimore, the City of Baltimore shall issue a competitive request for proposals to select the contractor.
(2) If the Baltimore City Police Department elects to designate a contractor to administer and process civil citations issued under § 21–1134 of the Transportation Article, the City of Baltimore shall issue a competitive request for proposals to select the contractor.
(c) If the City of Baltimore issues a request for proposals under subsection (b) of this section, the City of Baltimore shall apply the relevant procurement preferences for minority and women’s business enterprises and consider the procurement participation goals regarding minority and women’s business enterprises in selecting a contractor.
(a) In this title the following words have the meanings indicated.
(b) “Commissioner” means the Commissioner of Labor and Industry.
(c) (1) “Employer” means a contractor or subcontractor that has a State contract for services valued at $100,000 or more.
(2) “Employer” does not include a contractor or subcontractor that:
(i) employs 10 or fewer employees; and
(ii) has a State contract for services valued at less than $500,000.
(d) “Living wage” means an hourly wage set as provided under § 18–103 of this title.
(e) “Tier 1 area” includes Montgomery County, Prince George’s County, Howard County, Anne Arundel County, Baltimore County, and Baltimore City.
(f) “Tier 2 area” includes any county in the State not included in the Tier 1 area.
(a) (1) This title applies to an employee of an employer for the duration of a contract subject to this title if at least one–half of the employee’s time during any workweek relates to a State contract for services or a subcontract for services under a State contract.
(2) This title does not apply to an employee of an employer if the employee:
(i) is 17 years of age or younger for the duration of a contract subject to this title; or
(ii) works less than 13 consecutive weeks for the duration of a contract subject to this title and during that period works full time.
(b) This title does not apply to a contract:
(1) for services needed immediately to prevent or respond to an imminent threat to public health or safety;
(2) with a public service company;
(3) with a nonprofit organization;
(4) between units; or
(5) between a unit and a county or Baltimore City.
(c) If the unit responsible for a State contract determines that application of this title would conflict with any applicable federal program requirement, this title does not apply to the contract or program.
(d) The head of the unit responsible for a State contract subject to this title shall determine if contract services valued at 50% or more of the total value of the contract will be performed in the Tier 1 area or the Tier 2 area and shall provide that determination on the invitation for a bid.
(a) Except as provided in subsection (c) of this section, an employer subject to this title shall pay each employee covered under this title:
(1) at least $11.30 per hour, if State contract services valued at 50% or more of the total value of the contract are performed in the Tier 1 area; or
(2) at least $8.50 per hour, if State contract services valued at 50% or more of the total value of the contract are performed in the Tier 2 area.
(b) (1) Not later than 90 days after the start of each fiscal year, the Commissioner shall adjust the wage rates required under subsection (a) of this section by the annual average increase or decrease, if any, in the Consumer Price Index for all urban consumers for the Washington Metropolitan Area, or any successor index, for the previous calendar year.
(2) If the Commissioner adjusts the wage rates in accordance with paragraph (1) of this subsection, the Commissioner shall publish the new wage rates on the Division of Labor and Industry’s website.
(3) On request by any person, the Commissioner shall give the person a printed copy of the new wage rates.
(c) If an employer commits in its bid or proposal to provide health insurance to an employee, either directly or through an employee representative, the employer may:
(1) certify in its bid or proposal the hourly cost of the employer’s share of the premium for that insurance for each employee; and
(2) reduce the wage rate paid under subsection (a) of this section to any employee covered by the insurance by all or part of the hourly cost of the employer’s share of the premium for each employee.
(d) The Commissioner may authorize, by regulation, an employer to reduce the wage rates paid under subsection (a) of this section by no more than 50 cents of the hourly cost of the employer’s contribution to an employee’s deferred compensation plan.
(a) The Commissioner shall adopt regulations governing employers subject to this title.
(b) The Commissioner may require that an employer keep records and submit reports to the Commissioner that the Commissioner determines necessary for the effective administration and enforcement of this title.
(c) The Commissioner every 3 years shall assess the appropriateness of:
(1) the measures used to adjust the wage rates under § 18–103(b) of this subtitle to ensure that the measures accurately reflect the wage rates of employees in the Tier 1 area and Tier 2 area of the State; and
(2) the placement of counties in the Tier 1 area and Tier 2 area.
An agreement by an employee to commute, release, or waive the employee’s rights under this title is void.
(a) During any period in which an employee of the employer is entitled to a wage rate under this title, each employer subject to this title shall post in a prominent and easily accessible place at the work site of an employee described in § 18–102(a) of this title a notice of:
(1) the living wage rate;
(2) employee rights under this title; and
(3) the name, address, and telephone number of the Commissioner.
(b) The notice under this section shall be:
(1) developed by the Commissioner in English, Spanish, and any other language commonly used by employees at a work site; and
(2) (i) on request of an employer, provided without charge to the employer; or
(ii) made available for download on the Internet without charge.
(c) Subject to § 10–1001 of the State Government Article, the Commissioner may impose on a person that violates this section a civil penalty not exceeding $50 per violation.
(a) Within 30 days after a complaint is filed, the Commissioner shall investigate the complaint in accordance with this title.
(b) A written or oral complaint or statement made by an employee under this title is confidential and may not be disclosed to the employer without the consent of the employee.
(c) An employer subject to this title shall allow the Commissioner or the Commissioner’s designee access to a work site and payroll records, and allow an opportunity to interview employees for purposes of enforcing this title.
(d) (1) Within 30 days after completing an investigation, the Commissioner shall issue an order for a hearing.
(2) Within 30 days before the hearing, the Commissioner shall serve, personally or by mail, written notice of the hearing on all interested parties.
(3) The notice shall include:
(i) a statement of facts disclosed in the investigation; and
(ii) the time and place of the hearing.
(4) In conducting a hearing, the Commissioner may:
(i) subpoena witnesses;
(ii) administer oaths; and
(iii) compel the production of records, books, papers, and other evidence.
(e) (1) Within 30 days after the conclusion of the hearing, the Commissioner shall:
(i) issue a determination; and
(ii) serve, personally or by mail, each interested party with a copy of the determination.
(2) If the Commissioner finds a violation of this title, the Commissioner shall determine the amount of restitution and liquidated damages to be assessed under § 18–108 of this title.
(3) On receipt of the determination, the employer shall pay the affected employees the amount due in accordance with the Commissioner’s determination.
If the Commissioner determines that the employer violated a provision of this title or regulations of the Commissioner, the employer shall:
(1) pay restitution to each affected employee; and
(2) pay to the State liquidated damages of $20 per day for each employee who was paid less than the hourly rate required under this title.
(a) (1) If an employee was paid less than the wage rate required under this title the employee is entitled to sue to recover the amount of the difference between the wage rate required under this title and the amount received by the employee.
(2) A determination by the Commissioner that an employer is required to make restitution does not preclude an employee from filing an action under this section.
(b) (1) An action under this section is considered to be a suit for wages.
(2) A judgment in an action under this section shall have the same force and effect as any other judgment for wages.
(c) The failure of an employee to protest orally or in writing the payment of a wage that is less than the wage rate required under this title is not a bar to recovery in an action under this section.
(a) It is the policy of the State not to enter into a contract with any business entity that has discriminated in the solicitation, selection, hiring, or commercial treatment of vendors, suppliers, subcontractors, or commercial customers 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 any otherwise unlawful use of characteristics regarding the vendor’s, supplier’s, or commercial customer’s employees or owners.
(b) Nothing in this title shall be construed to prohibit or limit otherwise lawful efforts to remedy the effects of discrimination that have occurred or are occurring in the marketplace.
(c) A complaint of discrimination shall be filed within 4 years after the date the cause of action accrues.
It is the intent of the State to avoid becoming a passive participant in private sector commercial discrimination by refusing to procure goods and services from business entities that discriminate in the solicitation, selection, hiring, or commercial treatment of vendors, suppliers, subcontractors, or commercial customers on the basis of race, color, religion, ancestry or national origin, sex, age, marital status, gender identity, sexual orientation, or on the basis of disability or other unlawful forms of discrimination by providing a procedure for receiving, investigating, and resolving complaints of discrimination filed against business entities that:
(1) have submitted a bid or proposal; or
(2) have been selected to engage in, or are engaged in, providing goods or services to the State.
(a) In this title the following words have the meanings indicated.
(b) “Administrative law judge” means the individual assigned by the Office of Administrative Hearings to conduct a hearing under this title.
(c) (1) “Business entity” means any person, as defined in § 1–101(d) of this article, firm, sole proprietorship, partnership, corporation, limited liability company, or other business entity or a combination of any of these entities, including any financial institution, developer, consultant, prime contractor, subcontractor, supplier, or vendor, that has submitted a bid or proposal for, has been selected to engage in, or is engaged in providing goods or services to the State.
(2) “Business entity” does not include another governmental entity that is subject to Title VI of the Civil Rights Act of 1964.
(d) “Commercial customer” means a business entity that procured or attempted to procure goods or services from a business entity for business as opposed to personal, family, or household use.
(e) “Commercial Nondiscrimination Policy” means the provisions contained under this title and any regulations or documentation requirements adopted by the Commission on Civil Rights in accordance with this title.
(f) (1) “Commercial treatment” means the treatment of a vendor, supplier, subcontractor, or commercial customer by a business entity that affects the conduct of business and the terms and conditions under which business is transacted between two or more business entities.
(2) “Commercial treatment” does not mean treatment that is unrelated to a business transaction or the conduct of business.
(g) “Commission” means the Commission on Civil Rights.
(h) “Commission staff” means employees of the Commission on Civil Rights designated by the Commission to process, investigate, and pursue complaints filed under this title.
(i) “Contract” means an agreement with a business entity that is let by or on behalf of the State for that business entity to sell or lease supplies or goods, or to provide construction, real estate development, financial, insurance, professional, or other services to the State in return for a fee or any other form of compensation to be paid or provided by the State.
(j) (1) “Discrimination” means any disadvantage, difference, distinction, or preference in the solicitation, selection, hiring, or commercial treatment of a vendor, supplier, subcontractor, 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 any otherwise unlawful use of characteristics regarding the vendor’s, supplier’s, or commercial customer’s employees or owners.
(2) “Discrimination” does not include lawful efforts to remedy the effects of discrimination that have occurred or are occurring in the marketplace.
(k) “Economic development project” means a real estate development, construction, or renovation project for which the State provides:
(1) funding or other financial assistance, other than payments in exchange for goods or services;
(2) land;
(3) road improvements;
(4) tax credits; or
(5) a below market purchase price.
(l) (1) “Financial institution” means a person:
(i) engaged in the business of lending money, guaranteeing loans, extending credit, securing bonds, or providing venture or equity capital; or
(ii) that offers financial services in connection with State projects or the administration of State government.
(2) “Financial institution” includes banks, savings and loans, venture capital companies, insurance companies, bonding companies, mortgage companies, credit unions, and brokers.
(m) “Party” means:
(1) the person who has filed a complaint under this title;
(2) the respondent business entity that has been alleged to have violated this title; and
(3) the Commission that is responsible for investigating the complaint and rendering the initial findings.
(n) “Retaliate” means to take any action that has a material negative effect against any person, business or other entity for reporting any incident of discrimination, testifying as a witness at a hearing, or providing requested assistance to Commission staff in any investigation of an incident of discrimination under this title.
(o) “Services” includes construction, real estate development, financial, insurance, professional, and other services.
(p) “State subcontract” means an agreement for the provision of goods or the performance of a particular portion of work to be performed under a contract with the State, where:
(1) the party providing the goods or services is on reasonable notice that the work is to be performed under a State contract; and
(2) the amount to be paid for such goods and services is material with respect to the overall amount of the contract.
(q) “State subcontractor” means the party providing goods or services under a State subcontract.
(a) As a condition of participating in an economic development project, the State shall require the governmental entity, quasi-governmental entity, corporation, developer, or contractor that receives assistance from the State to comply with this title:
(1) in administering the economic development project; and
(2) in awarding contracts to manage or perform the work entailed in the economic development project.
(b) (1) Each contract and subcontract awarded in connection with an economic development project shall contain the nondiscrimination clause set forth in § 19-115 of this title.
(2) Any claim of discrimination relating to the economic development project shall be subject to investigation and adjudication by the State in accordance with this title.
(c) This title does not apply to:
(1) other than a lease of real estate for the State’s use, any real property acquisition by the State, including property subject to condemnation;
(2) settlement of litigation;
(3) except for proceedings to enforce this title, settlement of judicial or administrative enforcement proceedings by or on behalf of the State; and
(4) agreements concerning standards for locating facilities in a State right-of-way when a business entity has a statutory right to be in the right-of-way.
(a) The provisions of this title are to be liberally construed to accomplish its objectives and purposes.
(b) For purposes of administration, the Commission shall construe the provisions of this title.
(c) A decision of the Commission is subject to judicial review under § 19-113 of this title.
(a) Any person may file an administrative complaint with the Commission within the limitations period set forth in § 19–101(c) of this title stating facts showing or tending to show that a business entity has within the preceding 4–year period engaged in discrimination or retaliation against that person in violation of this title.
(b) Within 10 business days, the Commission shall notify the business entity against whom the complaint was filed that a complaint has been received.
(c) Before the commencement of an investigation of an administrative complaint, Commission staff shall review the complaint to determine whether:
(1) mediation would be appropriate; and
(2) both parties should be contacted to attempt such mediation in a manner consistent with the regulations adopted under this title.
(a) Commission staff shall be responsible for directing and conducting investigations of discrimination and retaliation complaints filed under this title in a manner consistent with §§ 20–208, 20–1005, 20–1006, 20–1008, 20–1009, and 20–1010 of the State Government Article.
(b) The Commission may request assignment of additional State personnel or outside consultants as may be reasonably necessary or appropriate to conduct an investigation.
(c) (1) Commission staff shall exercise reasonable judgment in seeking relevant evidence from the complainant, the respondent business entity and, as necessary, external sources.
(2) This title may not be construed to require the State to fund the cost of:
(i) having State staff or other individuals travel outside the State to investigate any claim under this title; or
(ii) having witnesses travel to the State for the purpose of investigating a claim or testifying at a hearing or proceeding under this title.
(d) (1) Consistent with § 20–1101 of the State Government Article, the Public Information Act, and the Open Meetings Act, the Commission shall protect the confidential character of information relating to an investigation and may issue protective orders for good cause to limit, or otherwise impose conditions on, access by any person to any document in the possession of a party.
(2) A protective order issued under paragraph (1) of this subsection may include:
(i) a document in the possession of the State or otherwise in the record that is not a public record; and
(ii) information disclosed in accordance with § 19–116 of this title.
(e) The Commission shall exercise reasonable discretion in determining the extent of the investigation required to support Commission staff’s initial findings and recommendations.
(f) (1) The Commission may investigate and adjudicate a claim of discrimination under this title only if the claim alleges that:
(i) the discrimination was committed by a business entity within the limitations period set forth in § 19–101(c) of this title; and
(ii) the discrimination occurred in the State.
(2) Discrimination is deemed to have occurred in the State only if:
(i) each party operated a place of business in, or resided in, the State at the time of the discrimination; or
(ii) the discriminatory act was committed in the State.
(a) In determining whether to proceed further with an investigation and in making findings, Commission staff may consider any evidence provided by the complainant or the respondent business entity as to the following factors:
(1) whether there was an intent to discriminate on the part of the respondent business firm;
(2) whether there was a pattern and practice of discrimination on the part of the respondent business entity;
(3) any actions taken by the respondent business entity to remedy the alleged discrimination;
(4) the effectiveness of any prior attempts by the respondent business entity to remedy the discrimination;
(5) whether the respondent business entity has procured goods or services from or otherwise engaged in business with persons or entities of the same protected class as the complainant to an extent sufficient to demonstrate that the respondent business entity has not discriminated against such protected class in the overall context of its business; and
(6) any other evidence deemed relevant by the Commission.
(b) Based on a review and investigation consistent with § 20–1005 of the State Government Article, Commission staff shall make an initial finding of each allegation stated in the complaint, that either:
(1) the investigation produced sufficient evidence to find that the alleged discrimination or retaliation did take place (“probable cause”);
(2) the investigation failed to produce sufficient evidence to find that the alleged discrimination or retaliation took place (“no probable cause”);
(3) the investigation produced sufficient evidence to establish that the complainant knowingly made one or more false or frivolous allegations, and further investigation did not appear likely to produce sufficient evidence that the alleged discrimination or retaliation did take place (“false or frivolous”);
(4) the allegation has been settled or otherwise resolved with the agreement of the respondent business entity, the complainant, and the State (“settled”); or
(5) the allegation has been withdrawn (“withdrawn”).
(c) Commission staff shall make the initial findings under subsection (b) of this section based on a preponderance of the evidence.
(d) On completion of its initial investigation, Commission staff shall recommend to the Commission the appropriate action to be taken, including:
(1) additional investigation of the complaint;
(2) the Commission’s adoption of the initial findings rendered by Commission staff;
(3) imposition of sanctions;
(4) imposition of remedies; or
(5) other action consistent with this title.
(e) In determining appropriate action on a discrimination claim, the Commission may take into account any evidence provided or uncovered in the course of the investigation regarding:
(1) the impact of the discrimination on affected parties;
(2) the impact of any authorized remedy on the State or any other party;
(3) actions taken by the respondent business entity to remedy the alleged discrimination;
(4) the effectiveness of any prior attempts by the respondent business entity to remedy the discrimination;
(5) whether the respondent business entity has procured goods or services from or otherwise engaged in business with persons or entities of the same protected class as the complainant to an extent sufficient to demonstrate that the respondent business entity has not discriminated against such protected class in the overall context of its business;
(6) the number and scope of prior violations of this policy by the respondent business entity; and
(7) any other evidence determined to be relevant by the Commission.
(f) (1) Except as provided in paragraph (2) of this subsection, the Commission shall make the initial findings and issue recommendations for appropriate action within 120 calendar days of the receipt of the complaint.
(2) The Commission may extend the time limit set forth in paragraph (1) of this subsection:
(i) for good cause; or
(ii) if the parties agree to mediate a settlement to the complaint.
(g) The Commission shall notify the complainant and the business entity within 5 business days of the issuance of the initial findings and recommendations, including an explanation of the reasons justifying the initial findings.
(a) A request for a contested case hearing in accordance with the procedures specified in this section may be made by:
(1) a business entity, upon a Commission determination of probable cause for one or more of the allegations stated in the complaint against the business entity, and failure of timely conciliation; or
(2) a complainant on a Commission determination that the complainant has filed a knowingly false or frivolous complaint.
(b) (1) To submit a matter to an administrative hearing as a contested case under this title, the business entity or the complainant must request a contested case hearing by filing a written notice with the Commission within 15 calendar days of notice of the initial findings and recommendations.
(2) The notice must contain the following information:
(i) a demand that the matter be referred to the Office of Administrative Hearings for a contested case hearing in accordance with § 10–205(c)(2) of the State Government Article;
(ii) the names, addresses, and telephone numbers of the Commission, the business entity’s representatives, and any other parties;
(iii) a reference to this title; and
(iv) a summary of the Commission’s findings and recommendations that are being submitted for resolution to the administrative law judge for the contested case hearing.
(3) The requesting party shall immediately serve notice of the request for a contested case hearing upon all other parties.
(c) If the business entity fails to properly request a contested case hearing, the initial findings and recommendations of the Commission shall become the final administrative decision of the State, and the Commission shall then be authorized to enter any order and to take any action reasonably necessary or convenient to:
(1) implement remedies under § 19–110 of this title;
(2) impose sanctions under § 19–111 of this title; and
(3) govern the conduct of the parties in the manner described under § 19–112 of this title so that the purposes of this title are achieved.
(d) (1) (i) For each contested case hearing properly requested by the business entity or by the complainant, the Commission shall file a statement of charges with the Office of Administrative Hearings and request a hearing before an administrative law judge in a manner consistent with the requirements of this subsection.
(ii) The Commission may designate the venue for the contested case hearing, taking into consideration the convenience of the parties and the location of the evidence.
(iii) At the contested case hearing, the Commission shall have the burden of proof by a preponderance of the evidence.
(2) The Office of Administrative Hearings shall conduct any contested case hearing in accordance with its rules of procedure under COMAR 28.02.01.
(3) (i) At the conclusion of the contested case hearing, the administrative law judge shall issue a written decision.
(ii) The administrative law judge’s written decision may:
1. affirm or reject all or part of the statement of charges; or
2. substitute different findings and recommend appropriate remedies.
(4) The administrative law judge’s written decision shall be solely based on a preponderance of the evidence contained in the record of the contested case hearing and shall reflect the evidentiary basis for its findings.
(5) An administrative law judge may consider any evidence regarding the factors described in § 19–108(a) of this title when determining whether to sustain an allegation presented in a statement of charges.
(e) Notwithstanding any contrary provision in this title, unless the administrative law judge finds that one or more allegations giving rise to the Commission’s findings or the business entity’s challenge to the findings were frivolous or knowingly false when made, each party shall bear the cost of its own legal representation and expert witness fees.
(f) If the administrative law judge finds that one or more allegations giving rise to the Commission’s findings or the business entity’s challenge to the findings was frivolous or knowingly false when made, the administrative law judge may require the party who made the frivolous or knowingly false allegations to bear all or a portion of the other party’s legal fees and expert witness fees.
(g) The business entity, the Commission, and the complainant shall cooperate in good faith to have the contested case hearing concluded within 180 days after the business entity issues its notice for a contested case hearing.
(h) If the Commission determines that one or more allegations are knowingly false or frivolous, the complainant making the allegations shall be entitled to a contested case hearing on the allegations that are determined to be knowingly false or frivolous in accordance with the procedures set forth in this section, except that all references to the business entity with respect to matters of contested case hearing rules and procedure shall apply to the complainant.
(i) If the complainant fails to properly request a contested case hearing regarding a determination of a knowingly false or frivolous allegation as provided in this title, the initial findings and recommendations shall become the final administrative decision of the State in accordance with § 19–112 of this title.
(j) (1) If a timely contested case hearing is not requested, the Commission may vacate the Commission staff’s recommended remedy on written notice to all parties within 5 business days after the time for requesting a contested case hearing has expired.
(2) In the absence of notice, the Commission shall be deemed to have approved the Commission staff’s recommended remedy.
(k) To the extent that procedures and standards stated in this title differ from those contained in Title 10, Subtitle 2 of the State Government Article, this title shall govern but, in all other respects, the provisions of the State Government Article shall govern.
(a) When an allegation is sustained by an administrative law judge under this title, the administrative law judge may take additional evidence on the appropriate remedy to be recommended, including evidence relating to factors set forth in § 19–108(e) of this title and any other evidence deemed relevant by the administrative law judge.
(b) If the administrative law judge sustains an allegation, the administrative law judge may order any one or more of the following actions:
(1) any remedy that is agreed to by the respondent business entity, the complainant, and the Commission;
(2) referral of the respondent business entity to the Board of Public Works for a determination of debarment pursuant to §§ 16–306 and 16–307 of this article to preclude the business entity from:
(i) bidding on or receiving contract awards on State projects; and
(ii) participating in State contracts as a subcontractor, vendor, or supplier for a period of not more than 3 years;
(3) rescission, suspension, or termination of any current contract between the respondent business entity and the State under the terms of that contract;
(4) exercise of any other rights or remedies available to the State under any current contract between the respondent business entity and the State;
(5) finding that the respondent business entity is not a “responsible bidder” within the meaning of this article with respect to specific contracts that the State has put out for bids or intends to put out for bids;
(6) referral of the matter for criminal prosecution of fraud and other violations under State law if appropriate under the circumstances; or
(7) mediation.
(a) If the Commission determines that one or more allegations of a complaint filed under this title are false and that the complainant knew them to be false when filed, or that one or more of the allegations of a complaint are frivolous and without merit, the Commission may refuse to review or investigate any subsequent complaint filed by that complainant for a period of up to 3 years.
(b) When the totality of the evidence warrants action to deter future abuse of the protections made available under this title, the Commission may also recommend to the administrative law judge:
(1) that monetary sanctions be imposed against the complainant in the amount of the costs incurred by the State and the business entity in the investigation and review of the false or frivolous complaint, including reasonable attorneys’ fees; and
(2) that the complainant be disqualified from bidding and contract awards on State projects for a period of not more than 3 years.
(a) Absent a request for a contested case hearing, the Commission’s findings and recommendations shall become the final administrative decision of the State, subject to such judicial review as is provided for in a contested case under § 10-222 of the State Government Article.
(b) In cases where a contested case hearing has been requested, the administrative law judge’s written decision shall become the final administrative decision of the State subject to judicial review as provided for in a contested case under § 10-222 of the State Government Article.
(c) On issuance of a final decision, the Commission or the administrative law judge may enter any order reasonably necessary or convenient to govern the conduct of the State and the parties so that the purposes of this title are achieved.
Any party who, after having exhausted all administrative remedies available, is aggrieved by a final decision of the Commission or the administrative law judge may seek judicial review of such decision under § 10-222 of the State Government Article.
Every contract and subcontract shall contain a nondiscrimination clause that is substantially similar to the following:
“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, the company may not discriminate 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 in the solicitation, selection, hiring, or commercial treatment of subcontractors, vendors, suppliers, or commercial customers, nor shall the company retaliate against any person for reporting instances of such discrimination. The company 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 shall prohibit or limit otherwise lawful efforts to remedy the effects of marketplace discrimination that have occurred or are occurring in the marketplace. The company understands and agrees 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 the company 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.”.
All requests for bids or proposals issued for State contracts shall include the following certification to be completed by the bidder:
“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.”.
Every contract that the State enters into shall include language substantially similar to the following:
“As a condition of entering into this agreement, upon the request of the Commission on Civil Rights, and only after the filing of a complaint against the company under Title 19 of the State Finance and Procurement Article, as amended from time to time, the company agrees to: provide to the State within 60 days after the request a truthful and complete list of the names of all subcontractors, vendors, and suppliers that the company has used in the past 4 years on any of its contracts that were undertaken within the State of Maryland, including the total dollar amount paid by the contractor on each subcontract or supply contract. The company further agrees to cooperate in any investigation conducted by the State pursuant to the State’s Commercial Nondiscrimination Policy as set forth under Title 19 of the State Finance and Procurement Article of the Annotated Code of Maryland, to provide any documents relevant to any investigation that is requested by the State. The company understands and agrees that violation of this clause shall be considered a material breach of this agreement and may result in contract termination, disqualification by the State from participating in State contracts, and other sanctions.”.
The remedies provided by this title are in addition to any other statutory, legal, or equitable remedies that may be available and are not intended to be prerequisite to or exclusive of any other remedies.
The filing, investigation, hearing, and appeal of a complaint under this title may not hinder or affect the eligibility for bidding, award of, performance of, or payment on a contract prior to a final adjudicated decision that establishes a violation.
(a) In accordance with Title 10 of the State Government Article, the Commission shall adopt regulations to implement this title.
(b) The Commission may establish documentation and reporting requirements to further the purposes and intent of this title.
This title and any regulations adopted under this title may be cited as the “Commercial Nondiscrimination Policy”.
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