EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0399*
SENATE BILL 399
P1 2lr0148
CF HB 416
By: The President (By Request – Administration) and Senators Bailey, Carozza,
Cassilly, Corderman, Eckardt, Edwards, Elfreth, Gallion, Hershey, Hough,
Jennings, Ready, Salling, Simonaire, and West
Introduced and read first time: January 24, 2022
Assigned to: Education, Health, and Environmental Affairs
A BILL ENTITLED
AN ACT concerning 1
State Government – Quasi–Governmental Units – Oversight and Governance 2
FOR the purpose of establishing certain entities as “quasi–governmental units”; 3
establishing the intent of the General Assembly to weigh certain factors when 4
considering the creation of a new quasi–governmental unit; requiring a board of 5
directors of a quasi–governmental unit to conduct a certain annual performance 6
appraisal of the head of the quasi–governmental unit; requiring a 7
quasi–governmental unit to submit annually a certain budget to the Department of 8
Budget and Management in a certain manner; requiring the Department of Budget 9
and Management to include the budget of a quasi–governmental unit in the State 10
annual budget book for informational purposes; requiring the budget committees of 11
the General Assembly to hold hearings on the budgets of quasi–governmental units 12
at certain intervals; requiring the board of directors of a quasi–governmental unit to 13
obtain a certain independent assessment at certain intervals; requiring the 14
assessment to include evaluations of certain items; requiring the board of directors 15
of a quasi–governmental unit to take certain actions relating to the independent 16
assessment under certain circumstances, submit the assessment to the Governor and 17
the General Assembly, and post a copy of the assessment to the website of the 18
quasi–governmental unit in a certain manner; requiring the Department of 19
Legislative Services to conduct certain reviews and prepare certain reports regarding 20
quasi–governmental units at certain intervals; requiring the Department of 21
Legislative Services to submit an evaluation report to certain committees of the 22
General Assembly; requiring an evaluation report to address certain items; requiring 23
a quasi–governmental unit to respond to and cooperate with the Department of 24
Legislative Services during an evaluation; authorizing certain information to be 25
provided in a certain manner; requiring the Department of Legislative Services to 26
follow certain procedures under certain circumstances; establishing the initial 27
schedule of certain evaluations of quasi–governmental units; and generally relating 28
to regulation of quasi–governmental units. 29 2 SENATE BILL 399
BY adding to 1
Article – State Government 2
Section 9.6–101 through 9.6–303 to be under the new title “Title 9.6. 3
Quasi–Governmental Units – Oversight and Governance” 4
Annotated Code of Maryland 5
(2021 Replacement Volume) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – State Government 9
TITLE 9.6. QUASI–GOVERNMENTAL UNITS – OVERSIGHT AND GOVERNANCE . 10
SUBTITLE 1. DEFINITION; INTENT. 11
9.6–101. 12
IN THIS TITLE, “QUASI–GOVERNMENTAL UNIT ” MEANS: 13
(1) BAINBRIDGE DEVELOPMENT CORPORATION (TITLE 11, 14
SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); 15
(2) CANAL PLACE PRESERVATION AND DEVELOPMENT AUTHORITY 16
(TITLE 13, SUBTITLE 10, PART II OF THE FINANCIAL INSTITUTIONS ARTICLE); 17
(3) MARYLAND AGRICULTURAL AND RESOURCE–BASED INDUSTRY 18
DEVELOPMENT CORPORATION (TITLE 10, SUBTITLE 5 OF THE ECONOMIC 19
DEVELOPMENT ARTICLE); 20
(4) MARYLAND AUTOMOBILE INSURANCE FUND (TITLE 20 OF THE 21
INSURANCE ARTICLE); 22
(5) MARYLAND CLEAN ENERGY CENTER (TITLE 10, SUBTITLE 8 OF 23
THE ECONOMIC DEVELOPMENT ARTICLE); 24
(6) MARYLAND ECONOMIC DEVELOPMENT CORPORATION (TITLE 25
10, SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE); 26
(7) MARYLAND ENVIRONMENTAL SERVICE (TITLE 3, SUBTITLE 1 OF 27
THE NATURAL RESOURCES ARTICLE); 28
SENATE BILL 399 3
(8) MARYLAND FOOD CENTER AUTHORITY (TITLE 10, SUBTITLE 2 1
OF THE ECONOMIC DEVELOPMENT ARTICLE); 2
(9) MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES 3
AUTHORITY (TITLE 10, SUBTITLE 3 OF THE ECONOMIC DEVELOPMENT ARTICLE); 4
(10) MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY 5
(TITLE 5, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); 6
(11) MARYLAND STADIUM AUTHORITY (TITLE 10, SUBTITLE 6 OF THE 7
ECONOMIC DEVELOPMENT ARTICLE); 8
(12) MARYLAND TECHNOLOGY DEVELOPMENT CORPORATION (TITLE 9
10, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT ARTICLE); AND 10
(13) NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY (TITLE 3, 11
SUBTITLE 9 OF THE NATURAL RESOURCES ARTICLE). 12
9.6–102. 13
IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT WHEN CO NSIDERING THE 14
CREATION OF A NEW QUASI–GOVERNMENTAL UNIT THE FOLLOWING F ACTORS WILL 15
BE WEIGHED: 16
(1) THE ABILITY OF A CUR RENT GOVERNMENTAL UN IT OR PRIVATE 17
BUSINESS TO PERFORM THE FUNCTIONS OF THE PROPOSED NEW 18
QUASI–GOVERNMENTAL UNIT; AND 19
(2) THE PROPOSED ROLE OF THE NEW QUASI–GOVERNMENTAL UNIT 20
IN RELATION TO EXIST ING UNITS OF GOVERNM ENT AND BUSINESSES , INCLUDING 21
WHETHER THE NEW QUASI–GOVERNMENTAL UNIT WILL IN ANY WAY CONFLICT WITH 22
OR ENHANCE THE OPERA TIONS OF A CURRENT U NIT OF GOVERNMENT OR BUSINESS. 23
9.6–103. 24
THE PROVISIONS OF THI S TITLE ARE IN ADDIT ION TO ANY OTHER 25
REQUIREMENTS OF LAW RELATING TO A QUASI–GOVERNMENTAL UNIT . 26
SUBTITLE 2. GENERAL PROVISIONS. 27
9.6–201. 28
4 SENATE BILL 399
THE VOTING MEMBERS OF THE BOARD OF DIRECTO RS OF A 1
QUASI–GOVERNMENTAL UNIT SH ALL CONDUCT A N ANNUAL PERFORMANCE 2
APPRAISAL OF THE HEA D OF THE QUASI–GOVERNMENTAL UNIT . 3
9.6–202. 4
(A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION , A 5
QUASI–GOVERNMENTAL UNIT SH ALL SUBMIT ANNUALLY A FULL AND DETAILED 6
BUDGET REFLECTING TH E OPERATING AND CAPI TAL PROGRAM OF THE 7
QUASI–GOVERNMENTAL UNIT TO THE DEPARTMENT OF BUDGET AND 8
MANAGEMENT . 9
(2) THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL 10
INCLUDE EACH BUDGET RECEIVED UNDER PARAG RAPH (1) OF THIS SUBSECTION I N 11
THE STATE ANNUAL BUDGET B OOK FOR INFORMATIONAL PU RPOSES. 12
(B) A BUDGET SUBMITTED UND ER SUBSECTION (A) OF THIS SECTION 13
SHALL: 14
(1) BE SUBMITTED IN THE MANNER REQUIRED BY T HE DEPARTMENT 15
OF BUDGET AND MANAGEMENT ; AND 16
(2) SPECIFY THE SOURCE O F THE QUASI–GOVERNMENTAL UNIT ’S 17
REVENUES IN THE MANNER REQUIRED BY T HE DEPARTMENT OF BUDGET AND 18
MANAGEMENT . 19
(C) (1) EXCEPT AS PROVIDED IN PARAGRAPHS (2) AND (3) OF THIS 20
SUBSECTION, THE BUDGET COMMITTEES OF THE GENERAL ASSEMBLY SHALL EACH 21
HOLD A HEARING ON TH E BUDGET OF EACH QUA SI–GOVERNMENTAL UNIT AT LEAST 22
ONCE EVERY 2 YEARS. 23
(2) THE BUDGET COMMITTEES MAY HOLD A HEAR ING ON THE 24
BUDGET OF A QUASI–GOVERNMENTAL UNIT EV ERY YEAR. 25
(3) (I) A BUDGET COMMITTEE MAY VOTE NOT TO HOLD A HEARING 26
ON THE BUDGET OF A SPECIFIC QUASI–GOVERNMENTAL UNIT IN A REQUIRED YEAR . 27
(II) IF A BUDGET COMMITTEE VOTES NOT TO HOLD A HEARIN G 28
ON THE BUDGET OF A SPECIFIC QUASI–GOVERNMENTAL UNIT IN A REQUIRED YEAR 29
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE COMMITTEE SHALL HOLD THE 30
HEARING THE IMMEDIATELY FOLLOWING YEAR . 31
9.6–203. 32 SENATE BILL 399 5
(A) ON OR BEFORE DECEMBER 31, 2023, AND EVERY 5 YEARS THEREAFTER , 1
THE BOARD OF DIRECTO RS OF A QUASI–GOVERNMENTAL UNIT SH ALL OBTAIN AN 2
ASSESSMENT OF THE BO ARD’S OPERATIONS BY AN I NDEPENDENT CONSULTAN T OR 3
ACCOUNTANT . 4
(B) THE ASSESSMENT REQUIR ED UNDER SUBSECTION (A) OF THIS SECTION 5
SHALL INCLUDE AN EVA LUATION OF: 6
(1) THE STRUCTURE OF THE BOARD, INCLUDING THE BOARD ’S: 7
(I) COMPOSITION ; 8
(II) CHARTER, BYLAWS, AND OTHER GOVERNING DOCUMENTS 9
AND PROCEDURES ; 10
(III) DIVERSITY; 11
(IV) SUBCOMMITTEES OR WOR KGROUPS; AND 12
(V) FREQUENCY OF MEETING S; 13
(2) THE DYNAMICS AND FUN CTIONING OF THE BOAR D, INCLUDING: 14
(I) THE BOARD’S ANNUAL CALENDAR ; 15
(II) ACCESS TO INFORMATIO N; 16
(III) COMMUNICATION WITH T HE PERSONNEL OF THE 17
QUASI–GOVERNMENTAL UNIT ; 18
(IV) PLANNING; AND 19
(V) COHESIVENESS AND CONDUCT OF BOARD MEE TINGS; 20
(3) THE BOARD ’S ROLE IN THE SHORT –TERM AND LONG –TERM 21
STRATEGY OF THE QUASI–GOVERNMENTAL UNIT ; 22
(4) THE FINANCIAL REPORT ING PROCESS, INTERNAL AUDITS , AND 23
INTERNAL CONTROLS OF THE QUASI–GOVERNMENTAL UNIT ; 24
(5) THE BOARD’S ROLE IN MONITORING T HE POLICIES, STRATEGIES, 25
AND SYSTEMS OF THE QUASI–GOVERNMENTAL UNIT ; 26 6 SENATE BILL 399
(6) THE BOARD ’S ROLE IN SUPPORTING AND ADVISING THE 1
QUASI–GOVERNMENTAL UNIT; 2
(7) THE ROLE OF THE CHAI R OF THE BOARD ; AND 3
(8) ANY OTHER ISSUE RELE VANT TO THE BOARD’S OPERATIONS. 4
(C) THE BOARD SHALL : 5
(1) REVIEW EACH ASSESSME NT REQUIRED UNDER TH IS SECTION AT A 6
MEETING OF THE BOARD ; AND 7
(2) MAKE ANY CHANGES OR RECOMMENDATIONS THAT THE BOARD 8
CONSIDERS APPROPRIAT E BASED ON THE ASSES SMENT. 9
(D) (1) THE BOARD SHALL SUBMI T EACH ASSESSMENT RE QUIRED UNDER 10
THIS SECTION TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THIS 11
ARTICLE, THE GENERAL ASSEMBLY. 12
(2) A QUASI–GOVERNMENTAL UNIT SH ALL POST A COPY OF E ACH 13
ASSESSMENT ON THE WE BSITE OF THE QUASI–GOVERNMENTAL UNIT , INCLUDING A 14
LINK TO A COPY OF TH E MOST RECENT ASSESS MENT ON THE HOMEPAGE OF THE 15
WEBSITE. 16
SUBTITLE 3. EVALUATION OF QUASI–GOVERNMENTAL UNITS. 17
9.6–301. 18
(A) IN THIS SUB TITLE THE FOLLOWING W ORDS HAVE THE MEANIN GS 19
INDICATED. 20
(B) “DEPARTMENT ” MEANS THE DEPARTMENT OF LEGISLATIVE SERVICES. 21
(C) “EVALUATION” MEANS THE PROCESS OF LEGISLATIVE REVIEW O F A 22
GOVERNMENTAL ACTIVIT Y OR QUASI–GOVERNMENTAL UNIT USED TO DETERMI NE: 23
(1) WHETHER THE QUASI –GOVERNMENTAL UNIT IS FULFILLING T HE 24
PURPOSE AS PROVIDED IN ITS IMPLEMENTING LEGISLATION, INCLUDING WHETHER 25
ITS DUTIES OR FUNCTI ONS DIFFER FROM THIS LEGISLATION; 26
SENATE BILL 399 7
(2) WHETHER ANOTHER GOVE RNMENTAL UNIT OR PRI VATE 1
BUSINESS IS BETTER A BLE TO PERFORM THE F UNCTIONS OF THE 2
QUASI–GOVERNMENTAL UNIT; AND 3
(3) WHAT, IF ANY, LEGISLATIVE OR NONLEGISLATIVE CHANGES 4
SHOULD BE RECOMMENDE D TO THE GENERAL ASSEMBLY TO IMPROVE T HE 5
OPERATIONS OF THE QU ASI–GOVERNMENTAL UNIT . 6
9.6–302. 7
(A) (1) AS PROVIDED IN PARAGR APH (2) OF THIS SUBSECTION , 8
ACCORDING TO THE SCHEDULE DETERMINED BY THE EXECUTIVE DIRECTOR OF THE 9
DEPARTMENT , THE DEPARTMENT SHALL COND UCT AN EVALUATION OF THE 10
QUASI–GOVERNMENTAL UNIT AN D THE STATUTES RELAT ED TO THE 11
QUASI–GOVERNMENTAL UNIT. 12
(2) THE DEPARTMENT SHALL EVAL UATE EACH 13
QUASI–GOVERNMENTAL UNIT AT LEAS T ONCE EVERY 8 YEARS. 14
(B) ON COMPLETION OF AN EVALUATION OF A QUASI–GOVERNMENTAL 15
UNIT, THE DEPARTMENT SHALL SUBM IT AN EVALUATION REPORT , INCLUDING 16
DRAFT LEGISLATION TO IMPLEMENT ANY RECOMM ENDED STATUTORY CHAN GES, TO 17
THE COMMITTEES OF TH E GENERAL ASSEMBLY THAT ROUTINE LY HANDLE THE 18
POLICY ISSUES AND LE GISLATION RELATED TO A SPECIFIC GOVERNMEN TAL 19
ACTIVITY OR QUASI–GOVERNMENT AL UNIT SUBJECT TO REVI EW UNDER THIS 20
SUBTITLE. 21
(C) AN EVALUATION REPORT PREPARED UNDER THIS SECTION SHALL 22
ADDRESS THE QUASI –GOVERNMENTAL UNIT ’S: 23
(1) EFFICIENCY; 24
(2) EFFECTIVENESS ; 25
(3) ROLE IN PROTECTING C ONSUMERS; 26
(4) SUFFICIENCY OF RESOURCES; AND 27
(5) ADHERENCE TO AND ACC OMPLISHMENT OF LEGIS LATIVE 28
OBJECTIVES. 29
9.6–303. 30
8 SENATE BILL 399
(A) DURING AN EVALUATION CONDUCTED UNDER THIS SUBTITLE, THE 1
QUASI–GOVERNMENTAL UNIT UN DER EVALUATION SHALL : 2
(1) PROMPTLY PROVIDE ANY INFORMATION THAT THE DEPARTMENT 3
REQUESTS; AND 4
(2) OTHERWISE COOPERATE WITH THE DEPARTMENT TO CARRY O UT 5
THE REQUIREMENTS OF THIS SUBTITLE. 6
(B) INFORMATION REQUESTED UNDER SUBSECTION (A)(1) OF THIS 7
SECTION MAY BE PROVI DED IN A FORMAT THAT PROTECTS THE CONFIDE NTIALITY 8
OF INDIVIDUALS AS NECESSAR Y. 9
(C) THE DEPARTMENT SHALL FOLL OW PROCEDURES TO MAI NTAIN THE 10
CONFIDENTIALITY OF A NY INFORMATION , DOCUMENTS , OR PROCEEDINGS 11
OBTAINED OR OBSERVED IN THE COURSE OF CAR RYING OUT THE REQUIR EMENTS 12
OF THIS SUBTITLE. 13
SECTION 2. AND BE IT FURTHER ENACTED, That the initial evaluation reports 14
of quasi–governmental units required under Title 9.6, Subtitle 3 of the State Government 15
Article, as enacted by Section 1 of this Act, shall be submitted on or before December 31 of 16
the following years: 17
(1) Northeast Maryland Waste Disposal Authority – 2023; 18
(2) Maryland Clean Energy Center – 2023; 19
(3) Maryland Agricultural and Resource–Based Industry Development 20
Corporation – 2024; 21
(4) Maryland Automobile Insurance Fund – 2024; 22
(5) Bainbridge Development Corporation – 2025; 23
(6) Canal Place Preservation and Development Authority – 2025; 24
(7) Maryland Economic Development Corporation – 2026; 25
(8) Maryland Environmental Service – 2027; 26
(9) Maryland Food Center Authority – 2028; 27
(10) Maryland Health and Higher Educational Facilities Authority – 2028; 28
(11) Maryland Industrial Development Financing Authority – 2029; 29
SENATE BILL 399 9
(12) Maryland Stadium Authority – 2029; and 1
(13) Maryland Technology Development Corporation – 2030. 2
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2022. 4