MD
Maryland Senate Bill SB399

Maryland 2022 Regular Session

Maryland Senate Bill SB399 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0399*
66
77 SENATE BILL 399
88 P1 2lr0148
99 CF HB 416
1010 By: The President (By Request – Administration) and Senators Bailey, Carozza,
1111 Cassilly, Corderman, Eckardt, Edwards, Elfreth, Gallion, Hershey, Hough,
1212 Jennings, Ready, Salling, Simonaire, and West
1313 Introduced and read first time: January 24, 2022
1414 Assigned to: Education, Health, and Environmental Affairs
1515
1616 A BILL ENTITLED
1717
1818 AN ACT concerning 1
1919
2020 State Government – Quasi–Governmental Units – Oversight and Governance 2
2121
2222 FOR the purpose of establishing certain entities as “quasi–governmental units”; 3
2323 establishing the intent of the General Assembly to weigh certain factors when 4
2424 considering the creation of a new quasi–governmental unit; requiring a board of 5
2525 directors of a quasi–governmental unit to conduct a certain annual performance 6
2626 appraisal of the head of the quasi–governmental unit; requiring a 7
2727 quasi–governmental unit to submit annually a certain budget to the Department of 8
2828 Budget and Management in a certain manner; requiring the Department of Budget 9
2929 and Management to include the budget of a quasi–governmental unit in the State 10
3030 annual budget book for informational purposes; requiring the budget committees of 11
3131 the General Assembly to hold hearings on the budgets of quasi–governmental units 12
3232 at certain intervals; requiring the board of directors of a quasi–governmental unit to 13
3333 obtain a certain independent assessment at certain intervals; requiring the 14
3434 assessment to include evaluations of certain items; requiring the board of directors 15
3535 of a quasi–governmental unit to take certain actions relating to the independent 16
3636 assessment under certain circumstances, submit the assessment to the Governor and 17
3737 the General Assembly, and post a copy of the assessment to the website of the 18
3838 quasi–governmental unit in a certain manner; requiring the Department of 19
3939 Legislative Services to conduct certain reviews and prepare certain reports regarding 20
4040 quasi–governmental units at certain intervals; requiring the Department of 21
4141 Legislative Services to submit an evaluation report to certain committees of the 22
4242 General Assembly; requiring an evaluation report to address certain items; requiring 23
4343 a quasi–governmental unit to respond to and cooperate with the Department of 24
4444 Legislative Services during an evaluation; authorizing certain information to be 25
4545 provided in a certain manner; requiring the Department of Legislative Services to 26
4646 follow certain procedures under certain circumstances; establishing the initial 27
4747 schedule of certain evaluations of quasi–governmental units; and generally relating 28
4848 to regulation of quasi–governmental units. 29 2 SENATE BILL 399
4949
5050
5151
5252 BY adding to 1
5353 Article – State Government 2
5454 Section 9.6–101 through 9.6–303 to be under the new title “Title 9.6. 3
5555 Quasi–Governmental Units – Oversight and Governance” 4
5656 Annotated Code of Maryland 5
5757 (2021 Replacement Volume) 6
5858
5959 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
6060 That the Laws of Maryland read as follows: 8
6161
6262 Article – State Government 9
6363
6464 TITLE 9.6. QUASI–GOVERNMENTAL UNITS – OVERSIGHT AND GOVERNANCE . 10
6565
6666 SUBTITLE 1. DEFINITION; INTENT. 11
6767
6868 9.6–101. 12
6969
7070 IN THIS TITLE, “QUASI–GOVERNMENTAL UNIT ” MEANS: 13
7171
7272 (1) BAINBRIDGE DEVELOPMENT CORPORATION (TITLE 11, 14
7373 SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); 15
7474
7575 (2) CANAL PLACE PRESERVATION AND DEVELOPMENT AUTHORITY 16
7676 (TITLE 13, SUBTITLE 10, PART II OF THE FINANCIAL INSTITUTIONS ARTICLE); 17
7777
7878 (3) MARYLAND AGRICULTURAL AND RESOURCE–BASED INDUSTRY 18
7979 DEVELOPMENT CORPORATION (TITLE 10, SUBTITLE 5 OF THE ECONOMIC 19
8080 DEVELOPMENT ARTICLE); 20
8181
8282 (4) MARYLAND AUTOMOBILE INSURANCE FUND (TITLE 20 OF THE 21
8383 INSURANCE ARTICLE); 22
8484
8585 (5) MARYLAND CLEAN ENERGY CENTER (TITLE 10, SUBTITLE 8 OF 23
8686 THE ECONOMIC DEVELOPMENT ARTICLE); 24
8787
8888 (6) MARYLAND ECONOMIC DEVELOPMENT CORPORATION (TITLE 25
8989 10, SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE); 26
9090
9191 (7) MARYLAND ENVIRONMENTAL SERVICE (TITLE 3, SUBTITLE 1 OF 27
9292 THE NATURAL RESOURCES ARTICLE); 28
9393 SENATE BILL 399 3
9494
9595
9696 (8) MARYLAND FOOD CENTER AUTHORITY (TITLE 10, SUBTITLE 2 1
9797 OF THE ECONOMIC DEVELOPMENT ARTICLE); 2
9898
9999 (9) MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 3
100100 AUTHORITY (TITLE 10, SUBTITLE 3 OF THE ECONOMIC DEVELOPMENT ARTICLE); 4
101101
102102 (10) MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY 5
103103 (TITLE 5, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); 6
104104
105105 (11) MARYLAND STADIUM AUTHORITY (TITLE 10, SUBTITLE 6 OF THE 7
106106 ECONOMIC DEVELOPMENT ARTICLE); 8
107107
108108 (12) MARYLAND TECHNOLOGY DEVELOPMENT CORPORATION (TITLE 9
109109 10, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); AND 10
110110
111111 (13) NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY (TITLE 3, 11
112112 SUBTITLE 9 OF THE NATURAL RESOURCES ARTICLE). 12
113113
114114 9.6–102. 13
115115
116116 IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT WHEN CO NSIDERING THE 14
117117 CREATION OF A NEW QUASI–GOVERNMENTAL UNIT THE FOLLOWING F ACTORS WILL 15
118118 BE WEIGHED: 16
119119
120120 (1) THE ABILITY OF A CUR RENT GOVERNMENTAL UN IT OR PRIVATE 17
121121 BUSINESS TO PERFORM THE FUNCTIONS OF THE PROPOSED NEW 18
122122 QUASI–GOVERNMENTAL UNIT; AND 19
123123
124124 (2) THE PROPOSED ROLE OF THE NEW QUASI–GOVERNMENTAL UNIT 20
125125 IN RELATION TO EXIST ING UNITS OF GOVERNM ENT AND BUSINESSES , INCLUDING 21
126126 WHETHER THE NEW QUASI–GOVERNMENTAL UNIT WILL IN ANY WAY CONFLICT WITH 22
127127 OR ENHANCE THE OPERA TIONS OF A CURRENT U NIT OF GOVERNMENT OR BUSINESS. 23
128128
129129 9.6–103. 24
130130
131131 THE PROVISIONS OF THI S TITLE ARE IN ADDIT ION TO ANY OTHER 25
132132 REQUIREMENTS OF LAW RELATING TO A QUASI–GOVERNMENTAL UNIT . 26
133133
134134 SUBTITLE 2. GENERAL PROVISIONS. 27
135135
136136 9.6–201. 28
137137 4 SENATE BILL 399
138138
139139
140140 THE VOTING MEMBERS OF THE BOARD OF DIRECTO RS OF A 1
141141 QUASI–GOVERNMENTAL UNIT SH ALL CONDUCT A N ANNUAL PERFORMANCE 2
142142 APPRAISAL OF THE HEA D OF THE QUASI–GOVERNMENTAL UNIT . 3
143143
144144 9.6–202. 4
145145
146146 (A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION , A 5
147147 QUASI–GOVERNMENTAL UNIT SH ALL SUBMIT ANNUALLY A FULL AND DETAILED 6
148148 BUDGET REFLECTING TH E OPERATING AND CAPI TAL PROGRAM OF THE 7
149149 QUASI–GOVERNMENTAL UNIT TO THE DEPARTMENT OF BUDGET AND 8
150150 MANAGEMENT . 9
151151
152152 (2) THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL 10
153153 INCLUDE EACH BUDGET RECEIVED UNDER PARAG RAPH (1) OF THIS SUBSECTION I N 11
154154 THE STATE ANNUAL BUDGET B OOK FOR INFORMATIONAL PU RPOSES. 12
155155
156156 (B) A BUDGET SUBMITTED UND ER SUBSECTION (A) OF THIS SECTION 13
157157 SHALL: 14
158158
159159 (1) BE SUBMITTED IN THE MANNER REQUIRED BY T HE DEPARTMENT 15
160160 OF BUDGET AND MANAGEMENT ; AND 16
161161
162162 (2) SPECIFY THE SOURCE O F THE QUASI–GOVERNMENTAL UNIT ’S 17
163163 REVENUES IN THE MANNER REQUIRED BY T HE DEPARTMENT OF BUDGET AND 18
164164 MANAGEMENT . 19
165165
166166 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPHS (2) AND (3) OF THIS 20
167167 SUBSECTION, THE BUDGET COMMITTEES OF THE GENERAL ASSEMBLY SHALL EACH 21
168168 HOLD A HEARING ON TH E BUDGET OF EACH QUA SI–GOVERNMENTAL UNIT AT LEAST 22
169169 ONCE EVERY 2 YEARS. 23
170170
171171 (2) THE BUDGET COMMITTEES MAY HOLD A HEAR ING ON THE 24
172172 BUDGET OF A QUASI–GOVERNMENTAL UNIT EV ERY YEAR. 25
173173
174174 (3) (I) A BUDGET COMMITTEE MAY VOTE NOT TO HOLD A HEARING 26
175175 ON THE BUDGET OF A SPECIFIC QUASI–GOVERNMENTAL UNIT IN A REQUIRED YEAR . 27
176176
177177 (II) IF A BUDGET COMMITTEE VOTES NOT TO HOLD A HEARIN G 28
178178 ON THE BUDGET OF A SPECIFIC QUASI–GOVERNMENTAL UNIT IN A REQUIRED YEAR 29
179179 UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE COMMITTEE SHALL HOLD THE 30
180180 HEARING THE IMMEDIATELY FOLLOWING YEAR . 31
181181
182182 9.6–203. 32 SENATE BILL 399 5
183183
184184
185185
186186 (A) ON OR BEFORE DECEMBER 31, 2023, AND EVERY 5 YEARS THEREAFTER , 1
187187 THE BOARD OF DIRECTO RS OF A QUASI–GOVERNMENTAL UNIT SH ALL OBTAIN AN 2
188188 ASSESSMENT OF THE BO ARD’S OPERATIONS BY AN I NDEPENDENT CONSULTAN T OR 3
189189 ACCOUNTANT . 4
190190
191191 (B) THE ASSESSMENT REQUIR ED UNDER SUBSECTION (A) OF THIS SECTION 5
192192 SHALL INCLUDE AN EVA LUATION OF: 6
193193
194194 (1) THE STRUCTURE OF THE BOARD, INCLUDING THE BOARD ’S: 7
195195
196196 (I) COMPOSITION ; 8
197197
198198 (II) CHARTER, BYLAWS, AND OTHER GOVERNING DOCUMENTS 9
199199 AND PROCEDURES ; 10
200200
201201 (III) DIVERSITY; 11
202202
203203 (IV) SUBCOMMITTEES OR WOR KGROUPS; AND 12
204204
205205 (V) FREQUENCY OF MEETING S; 13
206206
207207 (2) THE DYNAMICS AND FUN CTIONING OF THE BOAR D, INCLUDING: 14
208208
209209 (I) THE BOARD’S ANNUAL CALENDAR ; 15
210210
211211 (II) ACCESS TO INFORMATIO N; 16
212212
213213 (III) COMMUNICATION WITH T HE PERSONNEL OF THE 17
214214 QUASI–GOVERNMENTAL UNIT ; 18
215215
216216 (IV) PLANNING; AND 19
217217
218218 (V) COHESIVENESS AND CONDUCT OF BOARD MEE TINGS; 20
219219
220220 (3) THE BOARD ’S ROLE IN THE SHORT –TERM AND LONG –TERM 21
221221 STRATEGY OF THE QUASI–GOVERNMENTAL UNIT ; 22
222222
223223 (4) THE FINANCIAL REPORT ING PROCESS, INTERNAL AUDITS , AND 23
224224 INTERNAL CONTROLS OF THE QUASI–GOVERNMENTAL UNIT ; 24
225225
226226 (5) THE BOARD’S ROLE IN MONITORING T HE POLICIES, STRATEGIES, 25
227227 AND SYSTEMS OF THE QUASI–GOVERNMENTAL UNIT ; 26 6 SENATE BILL 399
228228
229229
230230
231231 (6) THE BOARD ’S ROLE IN SUPPORTING AND ADVISING THE 1
232232 QUASI–GOVERNMENTAL UNIT; 2
233233
234234 (7) THE ROLE OF THE CHAI R OF THE BOARD ; AND 3
235235
236236 (8) ANY OTHER ISSUE RELE VANT TO THE BOARD’S OPERATIONS. 4
237237
238238 (C) THE BOARD SHALL : 5
239239
240240 (1) REVIEW EACH ASSESSME NT REQUIRED UNDER TH IS SECTION AT A 6
241241 MEETING OF THE BOARD ; AND 7
242242
243243 (2) MAKE ANY CHANGES OR RECOMMENDATIONS THAT THE BOARD 8
244244 CONSIDERS APPROPRIAT E BASED ON THE ASSES SMENT. 9
245245
246246 (D) (1) THE BOARD SHALL SUBMI T EACH ASSESSMENT RE QUIRED UNDER 10
247247 THIS SECTION TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THIS 11
248248 ARTICLE, THE GENERAL ASSEMBLY. 12
249249
250250 (2) A QUASI–GOVERNMENTAL UNIT SH ALL POST A COPY OF E ACH 13
251251 ASSESSMENT ON THE WE BSITE OF THE QUASI–GOVERNMENTAL UNIT , INCLUDING A 14
252252 LINK TO A COPY OF TH E MOST RECENT ASSESS MENT ON THE HOMEPAGE OF THE 15
253253 WEBSITE. 16
254254
255255 SUBTITLE 3. EVALUATION OF QUASI–GOVERNMENTAL UNITS. 17
256256
257257 9.6–301. 18
258258
259259 (A) IN THIS SUB TITLE THE FOLLOWING W ORDS HAVE THE MEANIN GS 19
260260 INDICATED. 20
261261
262262 (B) “DEPARTMENT ” MEANS THE DEPARTMENT OF LEGISLATIVE SERVICES. 21
263263
264264 (C) “EVALUATION” MEANS THE PROCESS OF LEGISLATIVE REVIEW O F A 22
265265 GOVERNMENTAL ACTIVIT Y OR QUASI–GOVERNMENTAL UNIT USED TO DETERMI NE: 23
266266
267267 (1) WHETHER THE QUASI –GOVERNMENTAL UNIT IS FULFILLING T HE 24
268268 PURPOSE AS PROVIDED IN ITS IMPLEMENTING LEGISLATION, INCLUDING WHETHER 25
269269 ITS DUTIES OR FUNCTI ONS DIFFER FROM THIS LEGISLATION; 26
270270 SENATE BILL 399 7
271271
272272
273273 (2) WHETHER ANOTHER GOVE RNMENTAL UNIT OR PRI VATE 1
274274 BUSINESS IS BETTER A BLE TO PERFORM THE F UNCTIONS OF THE 2
275275 QUASI–GOVERNMENTAL UNIT; AND 3
276276
277277 (3) WHAT, IF ANY, LEGISLATIVE OR NONLEGISLATIVE CHANGES 4
278278 SHOULD BE RECOMMENDE D TO THE GENERAL ASSEMBLY TO IMPROVE T HE 5
279279 OPERATIONS OF THE QU ASI–GOVERNMENTAL UNIT . 6
280280
281281 9.6–302. 7
282282
283283 (A) (1) AS PROVIDED IN PARAGR APH (2) OF THIS SUBSECTION , 8
284284 ACCORDING TO THE SCHEDULE DETERMINED BY THE EXECUTIVE DIRECTOR OF THE 9
285285 DEPARTMENT , THE DEPARTMENT SHALL COND UCT AN EVALUATION OF THE 10
286286 QUASI–GOVERNMENTAL UNIT AN D THE STATUTES RELAT ED TO THE 11
287287 QUASI–GOVERNMENTAL UNIT. 12
288288
289289 (2) THE DEPARTMENT SHALL EVAL UATE EACH 13
290290 QUASI–GOVERNMENTAL UNIT AT LEAS T ONCE EVERY 8 YEARS. 14
291291
292292 (B) ON COMPLETION OF AN EVALUATION OF A QUASI–GOVERNMENTAL 15
293293 UNIT, THE DEPARTMENT SHALL SUBM IT AN EVALUATION REPORT , INCLUDING 16
294294 DRAFT LEGISLATION TO IMPLEMENT ANY RECOMM ENDED STATUTORY CHAN GES, TO 17
295295 THE COMMITTEES OF TH E GENERAL ASSEMBLY THAT ROUTINE LY HANDLE THE 18
296296 POLICY ISSUES AND LE GISLATION RELATED TO A SPECIFIC GOVERNMEN TAL 19
297297 ACTIVITY OR QUASI–GOVERNMENT AL UNIT SUBJECT TO REVI EW UNDER THIS 20
298298 SUBTITLE. 21
299299
300300 (C) AN EVALUATION REPORT PREPARED UNDER THIS SECTION SHALL 22
301301 ADDRESS THE QUASI –GOVERNMENTAL UNIT ’S: 23
302302
303303 (1) EFFICIENCY; 24
304304
305305 (2) EFFECTIVENESS ; 25
306306
307307 (3) ROLE IN PROTECTING C ONSUMERS; 26
308308
309309 (4) SUFFICIENCY OF RESOURCES; AND 27
310310
311311 (5) ADHERENCE TO AND ACC OMPLISHMENT OF LEGIS LATIVE 28
312312 OBJECTIVES. 29
313313
314314 9.6–303. 30
315315 8 SENATE BILL 399
316316
317317
318318 (A) DURING AN EVALUATION CONDUCTED UNDER THIS SUBTITLE, THE 1
319319 QUASI–GOVERNMENTAL UNIT UN DER EVALUATION SHALL : 2
320320
321321 (1) PROMPTLY PROVIDE ANY INFORMATION THAT THE DEPARTMENT 3
322322 REQUESTS; AND 4
323323
324324 (2) OTHERWISE COOPERATE WITH THE DEPARTMENT TO CARRY O UT 5
325325 THE REQUIREMENTS OF THIS SUBTITLE. 6
326326
327327 (B) INFORMATION REQUESTED UNDER SUBSECTION (A)(1) OF THIS 7
328328 SECTION MAY BE PROVI DED IN A FORMAT THAT PROTECTS THE CONFIDE NTIALITY 8
329329 OF INDIVIDUALS AS NECESSAR Y. 9
330330
331331 (C) THE DEPARTMENT SHALL FOLL OW PROCEDURES TO MAI NTAIN THE 10
332332 CONFIDENTIALITY OF A NY INFORMATION , DOCUMENTS , OR PROCEEDINGS 11
333333 OBTAINED OR OBSERVED IN THE COURSE OF CAR RYING OUT THE REQUIR EMENTS 12
334334 OF THIS SUBTITLE. 13
335335
336336 SECTION 2. AND BE IT FURTHER ENACTED, That the initial evaluation reports 14
337337 of quasi–governmental units required under Title 9.6, Subtitle 3 of the State Government 15
338338 Article, as enacted by Section 1 of this Act, shall be submitted on or before December 31 of 16
339339 the following years: 17
340340
341341 (1) Northeast Maryland Waste Disposal Authority – 2023; 18
342342
343343 (2) Maryland Clean Energy Center – 2023; 19
344344
345345 (3) Maryland Agricultural and Resource–Based Industry Development 20
346346 Corporation – 2024; 21
347347
348348 (4) Maryland Automobile Insurance Fund – 2024; 22
349349
350350 (5) Bainbridge Development Corporation – 2025; 23
351351
352352 (6) Canal Place Preservation and Development Authority – 2025; 24
353353
354354 (7) Maryland Economic Development Corporation – 2026; 25
355355
356356 (8) Maryland Environmental Service – 2027; 26
357357
358358 (9) Maryland Food Center Authority – 2028; 27
359359
360360 (10) Maryland Health and Higher Educational Facilities Authority – 2028; 28
361361
362362 (11) Maryland Industrial Development Financing Authority – 2029; 29
363363 SENATE BILL 399 9
364364
365365
366366 (12) Maryland Stadium Authority – 2029; and 1
367367
368368 (13) Maryland Technology Development Corporation – 2030. 2
369369
370370 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
371371 October 1, 2022. 4
372372
373373