MD
Maryland House Bill HB416

Maryland 2022 Regular Session

Maryland House Bill HB416 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb0416*
66
77 HOUSE BILL 416
88 P1 2lr0149
99 CF SB 399
1010 By: The Speaker (By Request – Administration) and Delegates Anderton, Boteler,
1111 Buckel, Chisholm, Ghrist, Griffith, Hartman, Hornberger, Howard, Jacobs,
1212 Kipke, Krebs, Long, Mangione, McComas, McKay, Metzgar, Morgan, Munoz,
1313 Novotny, Otto, Parrott, Reilly, Saab, Szeliga, and Wivell
1414 Introduced and read first time: January 19, 2022
1515 Assigned to: Appropriations
1616
1717 A BILL ENTITLED
1818
1919 AN ACT concerning 1
2020
2121 State Government – Quasi–Governmental Units – Oversight and Governance 2
2222
2323 FOR the purpose of establishing certain entities as “quasi–governmental units”; 3
2424 establishing the intent of the General Assembly to weigh certain factors when 4
2525 considering the creation of a new quasi–governmental unit; requiring a board of 5
2626 directors of a quasi–governmental unit to conduct a certain annual performance 6
2727 appraisal of the head of the quasi –governmental unit; requiring a 7
2828 quasi–governmental unit to submit annually a certain budget to the Department of 8
2929 Budget and Management in a certain manner; requiring the Department of Budget 9
3030 and Management to include the budget of a quasi–governmental unit in the State 10
3131 annual budget book for informational purposes; requiring the budget committees of 11
3232 the General Assembly to hold hearings on the budgets of quasi–governmental units 12
3333 at certain intervals; requiring the board of directors of a quasi–governmental unit to 13
3434 obtain a certain independent assessment at certain intervals; requiring the 14
3535 assessment to include evaluations of certain items; requiring the board of directors 15
3636 of a quasi–governmental unit to take certain actions relating to the independent 16
3737 assessment under certain circumstances, submit the assessment to the Governor and 17
3838 the General Assembly, and post a copy of the assessment to the website of the 18
3939 quasi–governmental unit in a certain manner; requiring the Department of 19
4040 Legislative Services to conduct certain reviews and prepare certain reports regarding 20
4141 quasi–governmental units at certain intervals; requiring the Department of 21
4242 Legislative Services to submit an evaluation report to certain committees of the 22
4343 General Assembly; requiring an evaluation report to address certain items; requiring 23
4444 a quasi–governmental unit to respond to and cooperate with the Department of 24
4545 Legislative Services during an evaluation; authorizing certain information to be 25
4646 provided in a certain manner; requiring the Department of Legislative Services to 26
4747 follow certain procedures under certain circumstances; establishing the initial 27 2 HOUSE BILL 416
4848
4949
5050 schedule of certain evaluations of quasi–governmental units; and generally relating 1
5151 to regulation of quasi–governmental units. 2
5252
5353 BY adding to 3
5454 Article – State Government 4
5555 Section 9.6–101 through 9.6–303 to be under the new title “Title 9.6. 5
5656 Quasi–Governmental Units – Oversight and Governance” 6
5757 Annotated Code of Maryland 7
5858 (2021 Replacement Volume) 8
5959
6060 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
6161 That the Laws of Maryland read as follows: 10
6262
6363 Article – State Government 11
6464
6565 TITLE 9.6. QUASI–GOVERNMENTAL UNITS – OVERSIGHT AND GOVERNANCE . 12
6666
6767 SUBTITLE 1. DEFINITION; INTENT. 13
6868
6969 9.6–101. 14
7070
7171 IN THIS TITLE, “QUASI–GOVERNMENTAL UNIT ” MEANS: 15
7272
7373 (1) BAINBRIDGE DEVELOPMENT CORPORATIO N (TITLE 11, 16
7474 SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); 17
7575
7676 (2) CANAL PLACE PRESERVATION AND DEVELOPMENT AUTHORITY 18
7777 (TITLE 13, SUBTITLE 10, PART II OF THE FINANCIAL INSTITUTIONS ARTICLE); 19
7878
7979 (3) MARYLAND AGRICULTURAL AND RESOURCE–BASED INDUSTRY 20
8080 DEVELOPMENT CORPORATION (TITLE 10, SUBTITLE 5 OF THE ECONOMIC 21
8181 DEVELOPMENT ARTICLE); 22
8282
8383 (4) MARYLAND AUTOMOBILE INSURANCE FUND (TITLE 20 OF THE 23
8484 INSURANCE ARTICLE); 24
8585
8686 (5) MARYLAND CLEAN ENERGY CENTER (TITLE 10, SUBTITLE 8 OF 25
8787 THE ECONOMIC DEVELOPMENT ARTICLE); 26
8888
8989 (6) MARYLAND ECONOMIC DEVELOPMENT CORPORATION (TITLE 27
9090 10, SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE); 28
9191
9292 (7) MARYLAND ENVIRONMENTAL SERVICE (TITLE 3, SUBTITLE 1 OF 29
9393 THE NATURAL RESOURCES ARTICLE); 30 HOUSE BILL 416 3
9494
9595
9696
9797 (8) MARYLAND FOOD CENTER AUTHORITY (TITLE 10, SUBTITLE 2 1
9898 OF THE ECONOMIC DEVELOPMENT ARTICLE); 2
9999
100100 (9) MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 3
101101 AUTHORITY (TITLE 10, SUBTITLE 3 OF THE ECONOMIC DEVELOPMENT ARTICLE); 4
102102
103103 (10) MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY 5
104104 (TITLE 5, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); 6
105105
106106 (11) MARYLAND STADIUM AUTHORITY (TITLE 10, SUBTITLE 6 OF THE 7
107107 ECONOMIC DEVELOPMENT ARTICLE); 8
108108
109109 (12) MARYLAND TECHNOLOGY DEVELOPMENT CORPORATION (TITLE 9
110110 10, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); AND 10
111111
112112 (13) NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY (TITLE 3, 11
113113 SUBTITLE 9 OF THE NATURAL RESOURCES ARTICLE). 12
114114
115115 9.6–102. 13
116116
117117 IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT WHEN CO NSIDERING THE 14
118118 CREATION OF A NEW QU ASI–GOVERNMENTAL UNIT TH E FOLLOWING FACTORS WILL 15
119119 BE WEIGHED: 16
120120
121121 (1) THE ABILITY OF A CUR RENT GOVERNMENTAL UN IT OR PRIVATE 17
122122 BUSINESS TO PERFORM THE FUNCTIONS OF THE PROPOSED NEW 18
123123 QUASI–GOVERNMENTAL UNIT ; AND 19
124124
125125 (2) THE PROPOSED ROLE OF THE NEW QUASI –GOVERNMENTAL UNIT 20
126126 IN RELATION TO EXIST ING UNITS OF GOVER NMENT AND BUSINESSES , INCLUDING 21
127127 WHETHER THE NEW QUAS I–GOVERNMENTAL UNIT WI LL IN ANY WAY CONFLI CT WITH 22
128128 OR ENHANCE THE OPERA TIONS OF A CURRENT U NIT OF GOVERNMENT OR BUSINESS. 23
129129
130130 9.6–103. 24
131131
132132 THE PROVISIONS OF THI S TITLE ARE IN ADDIT ION TO ANY OTHER 25
133133 REQUIREMENTS OF LAW RELATING TO A QUASI–GOVERNMENTAL UNIT . 26
134134
135135 SUBTITLE 2. GENERAL PROVISIONS. 27
136136
137137 9.6–201. 28
138138 4 HOUSE BILL 416
139139
140140
141141 THE VOTING MEMBERS OF THE BOARD OF DIRECTO RS OF A 1
142142 QUASI–GOVERNMENTAL UNIT SH ALL CONDUCT AN ANNUA L PERFORMANCE 2
143143 APPRAISAL OF THE HEA D OF THE QUASI–GOVERNMENTAL UNIT . 3
144144
145145 9.6–202. 4
146146
147147 (A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION , A 5
148148 QUASI–GOVERNMENTAL UNIT SH ALL SUBMIT ANNUALLY A FULL AND DETAILED 6
149149 BUDGET REFLECTING TH E OPERATING AND CAPI TAL PROGRAM OF THE 7
150150 QUASI–GOVERNMENTAL UNIT TO THE DEPARTMENT OF BUDGET AND 8
151151 MANAGEMENT. 9
152152
153153 (2) THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL 10
154154 INCLUDE EACH BUDGET RECEIVED UNDER PARAG RAPH (1) OF THIS SUBSECTION I N 11
155155 THE STATE ANNUAL BUDGET B OOK FOR INFORMATIONA L PURPOSES. 12
156156
157157 (B) A BUDGET SUBMITTED UND ER SUBSECTION (A) OF THIS SECTION 13
158158 SHALL: 14
159159
160160 (1) BE SUBMITTED IN THE MANNER REQUIRED BY T HE DEPARTMENT 15
161161 OF BUDGET AND MANAGEMENT ; AND 16
162162
163163 (2) SPECIFY THE SOURCE O F THE QUASI–GOVERNMENTAL UNIT ’S 17
164164 REVENUES IN THE MANN ER REQUIRED BY THE DEPARTMENT OF BUDGET AND 18
165165 MANAGEMENT . 19
166166
167167 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPHS (2) AND (3) OF THIS 20
168168 SUBSECTION, THE BUDGET COMMITTEE S OF THE GENERAL ASSEMBLY SHALL EACH 21
169169 HOLD A HEARING ON TH E BUDGET OF EACH QUA SI–GOVERNMENTAL UNIT AT LEAST 22
170170 ONCE EVERY 2 YEARS. 23
171171
172172 (2) THE BUDGET COMMITTEES MAY HOLD A HEARING O N THE 24
173173 BUDGET OF A QUASI–GOVERNMENTAL UNIT EV ERY YEAR. 25
174174
175175 (3) (I) A BUDGET COMMITTEE MAY VOTE NOT TO HOLD A H EARING 26
176176 ON THE BUDGET OF A S PECIFIC QUASI–GOVERNMENTAL UNIT IN A REQUIRED YEAR . 27
177177
178178 (II) IF A BUDGET COMMITTEE VOTES NOT TO HOLD A HEARING 28
179179 ON THE BUDGET OF A SPECIFIC QUASI–GOVERNMENTAL UNIT IN A REQUIRED YEAR 29
180180 UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE COMMITTEE SHALL HOLD THE 30
181181 HEARING THE IMMEDIAT ELY FOLLOWING YEAR . 31
182182
183183 9.6–203. 32 HOUSE BILL 416 5
184184
185185
186186
187187 (A) ON OR BEFORE DECEMBER 31, 2023, AND EVERY 5 YEARS THEREAFTER , 1
188188 THE BOARD OF DI RECTORS OF A QUASI –GOVERNMENTAL UNIT SH ALL OBTAIN AN 2
189189 ASSESSMENT OF THE BO ARD’S OPERATIONS BY AN I NDEPENDENT CONSULTAN T OR 3
190190 ACCOUNTANT . 4
191191
192192 (B) THE ASSESSMENT REQUIR ED UNDER SUBSECTION (A) OF THIS SECTION 5
193193 SHALL INCLUDE AN EVA LUATION OF: 6
194194
195195 (1) THE STRUCTURE OF THE BOARD , INCLUDING THE BOARD ’S: 7
196196
197197 (I) COMPOSITION ; 8
198198
199199 (II) CHARTER, BYLAWS, AND OTHER GOVERNING DOCUMENTS 9
200200 AND PROCEDURES ; 10
201201
202202 (III) DIVERSITY; 11
203203
204204 (IV) SUBCOMMITTEES OR WOR KGROUPS; AND 12
205205
206206 (V) FREQUENCY OF MEETING S; 13
207207
208208 (2) THE DYNAMICS AND FU NCTIONING OF THE BOA RD, INCLUDING: 14
209209
210210 (I) THE BOARD’S ANNUAL CALENDAR ; 15
211211
212212 (II) ACCESS TO INFORMATIO N; 16
213213
214214 (III) COMMUNICATION WITH T HE PERSONNEL OF THE 17
215215 QUASI–GOVERNMENTAL UNIT ; 18
216216
217217 (IV) PLANNING; AND 19
218218
219219 (V) COHESIVENESS AND CON DUCT OF BOARD MEETIN GS; 20
220220
221221 (3) THE BOARD ’S ROLE IN THE SHORT –TERM AND LONG –TERM 21
222222 STRATEGY OF THE QUAS I–GOVERNMENTAL UNIT ; 22
223223
224224 (4) THE FINANCIAL REPORT ING PROCESS, INTERNAL AUDITS , AND 23
225225 INTERNAL CONTROLS OF THE QUASI–GOVERNMENTAL UNIT ; 24
226226
227227 (5) THE BOARD’S ROLE IN MONITORING THE POLICIES, STRATEGIES, 25
228228 AND SYSTEMS OF THE Q UASI–GOVERNMENTAL UNIT ; 26 6 HOUSE BILL 416
229229
230230
231231
232232 (6) THE BOARD ’S ROLE IN SUPPORTING AND ADVISING THE 1
233233 QUASI–GOVERNMENTAL UNIT ; 2
234234
235235 (7) THE ROLE OF THE CHAI R OF THE BOARD ; AND 3
236236
237237 (8) ANY OTHER ISSUE RELEVANT TO THE BOARD’S OPERATIONS. 4
238238
239239 (C) THE BOARD SHALL : 5
240240
241241 (1) REVIEW EACH ASSESSME NT REQUIRED UNDER TH IS SECTION AT A 6
242242 MEETING OF THE BOARD ; AND 7
243243
244244 (2) MAKE ANY CHANGES OR RECOMMENDATIONS THAT THE BOARD 8
245245 CONSIDERS APPROPRIAT E BASED ON THE ASSES SMENT. 9
246246
247247 (D) (1) THE BOARD SHALL SUBMI T EACH ASSESSMENT RE QUIRED UNDER 10
248248 THIS SECTION TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THIS 11
249249 ARTICLE, THE GENERAL ASSEMBLY. 12
250250
251251 (2) A QUASI–GOVERNMENTAL UNIT SH ALL POST A COPY OF E ACH 13
252252 ASSESSMENT ON THE WE BSITE OF THE QUASI–GOVERNMENTAL UNIT , INCLUDING A 14
253253 LINK TO A COPY OF TH E MOST RECENT ASSESS MENT ON THE HOMEPAGE OF THE 15
254254 WEBSITE. 16
255255
256256 SUBTITLE 3. EVALUATION OF QUASI–GOVERNMENTAL UNITS. 17
257257
258258 9.6–301. 18
259259
260260 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
261261 INDICATED. 20
262262
263263 (B) “DEPARTMENT ” MEANS THE DEPARTMENT OF LEGISLATIVE SERVICES. 21
264264
265265 (C) “EVALUATION” MEANS THE PROCESS OF LEGISLATIVE REVIEW O F A 22
266266 GOVERNMENTAL ACTIVIT Y OR QUASI–GOVERNMENTAL UNIT US ED TO DETERMINE : 23
267267
268268 (1) WHETHER THE QUASI –GOVERNMENTAL UNIT IS FULFILLING TH E 24
269269 PURPOSE AS PROVIDED IN ITS IMPLEMENTING LEGISLATION, INCLUDING WHETHER 25
270270 ITS DUTIES OR FUNCTI ONS DIFFER FROM THIS LEGISLATION; 26
271271 HOUSE BILL 416 7
272272
273273
274274 (2) WHETHER ANOTHER GOVE RNMENTAL UNIT OR PRI VATE 1
275275 BUSINESS IS BETTER A BLE TO PERFORM THE F UNCTIONS OF THE 2
276276 QUASI–GOVERNMENTAL U NIT; AND 3
277277
278278 (3) WHAT, IF ANY, LEGISLATIVE OR NONLE GISLATIVE CHANGES 4
279279 SHOULD BE RECOMMENDE D TO THE GENERAL ASSEMBLY TO IMPROVE T HE 5
280280 OPERATIONS OF THE QU ASI–GOVERNMENTAL UNIT . 6
281281
282282 9.6–302. 7
283283
284284 (A) (1) AS PROVIDED IN PARAGR APH (2) OF THIS SUBSECTION , 8
285285 ACCORDING TO T HE SCHEDULE DETERMIN ED BY THE EXECUTIVE DIRECTOR OF THE 9
286286 DEPARTMENT , THE DEPARTMENT SHALL COND UCT AN EVALUATION OF THE 10
287287 QUASI–GOVERNMENTAL UNIT AN D THE STATUTES RELAT ED TO THE 11
288288 QUASI–GOVERNMENTAL UNIT . 12
289289
290290 (2) THE DEPARTMENT SHALL EVAL UATE EACH 13
291291 QUASI–GOVERNMENTAL UNIT AT LEAST ONCE EVERY 8 YEARS. 14
292292
293293 (B) ON COMPLETION OF AN E VALUATION OF A QUASI –GOVERNMENTAL 15
294294 UNIT, THE DEPARTMENT SHALL SUBM IT AN EVALUATION REP ORT, INCLUDING 16
295295 DRAFT LEGISLATION TO IMPLEMENT ANY RECOMM ENDED STATUTORY CHAN GES, TO 17
296296 THE COMMITTEES OF T HE GENERAL ASSEMBLY THAT ROUTINE LY HANDLE THE 18
297297 POLICY ISSUES AND LE GISLATION RELATED TO A SPECIFIC GOVERNMEN TAL 19
298298 ACTIVITY OR QUASI –GOVERNMENTAL UNIT SU BJECT TO REVIEW UNDE R THIS 20
299299 SUBTITLE. 21
300300
301301 (C) AN EVALUATION REPORT PREPARED UNDER THIS SECTION SHALL 22
302302 ADDRESS THE QUASI–GOVERNMENTAL UNIT ’S: 23
303303
304304 (1) EFFICIENCY; 24
305305
306306 (2) EFFECTIVENESS ; 25
307307
308308 (3) ROLE IN PROTECTING C ONSUMERS; 26
309309
310310 (4) SUFFICIENCY OF RESOU RCES; AND 27
311311
312312 (5) ADHERENCE TO AND ACC OMPLISHMENT OF LEGIS LATIVE 28
313313 OBJECTIVES. 29
314314
315315 9.6–303. 30
316316 8 HOUSE BILL 416
317317
318318
319319 (A) DURING AN EVALUATION CONDUCT ED UNDER THIS SUBTIT LE, THE 1
320320 QUASI–GOVERNMENTAL UNIT UN DER EVALUATION SHALL : 2
321321
322322 (1) PROMPTLY PROVIDE ANY INFORMATION THAT THE DEPARTMENT 3
323323 REQUESTS; AND 4
324324
325325 (2) OTHERWISE COOPERATE WITH THE DEPARTMENT TO CARRY O UT 5
326326 THE REQUIREMENTS OF THIS SUBTITLE. 6
327327
328328 (B) INFORMATION REQUESTED UND ER SUBSECTION (A)(1) OF THIS 7
329329 SECTION MAY BE PROVI DED IN A FORMAT THAT PROTECTS THE CONFIDE NTIALITY 8
330330 OF INDIVIDUALS AS NE CESSARY. 9
331331
332332 (C) THE DEPARTMENT SHALL FOLL OW PROCEDURES TO MAI NTAIN THE 10
333333 CONFIDENTIALITY OF A NY INFORMATION , DOCUMENTS , OR PROCEEDINGS 11
334334 OBTAINED OR OBSERVED IN THE COURSE OF CAR RYING OUT THE REQUIR EMENTS 12
335335 OF THIS SUBTITLE. 13
336336
337337 SECTION 2. AND BE IT FURTHER ENACTED, That the initial evaluation reports 14
338338 of quasi–governmental units required under Title 9.6, Subtitle 3 of the State Government 15
339339 Article, as enacted by Section 1 of this Act, shall be submitted on or before December 31 of 16
340340 the following years: 17
341341
342342 (1) Northeast Maryland Waste Disposal Authority – 2023; 18
343343
344344 (2) Maryland Clean Energy Center – 2023; 19
345345
346346 (3) Maryland Agricultural and Resource–Based Industry Development 20
347347 Corporation – 2024; 21
348348
349349 (4) Maryland Automobile Insurance Fund – 2024; 22
350350
351351 (5) Bainbridge Development Corporation – 2025; 23
352352
353353 (6) Canal Place Preservation and Development Authority – 2025; 24
354354
355355 (7) Maryland Economic Development Corporation – 2026; 25
356356
357357 (8) Maryland Environmental Service – 2027; 26
358358
359359 (9) Maryland Food Center Authority – 2028; 27
360360
361361 (10) Maryland Health and Higher Educational Facilities Authority – 2028; 28
362362
363363 (11) Maryland Industrial Development Financing Authority – 2029; 29
364364 HOUSE BILL 416 9
365365
366366
367367 (12) Maryland Stadium Authority – 2029; and 1
368368
369369 (13) Maryland Technology Development Corporation – 2030. 2
370370
371371 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
372372 October 1, 2022. 4
373373