EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0782* HOUSE BILL 782 F1 3lr1382 By: Delegate Atterbeary Introduced and read first time: February 8, 2023 Assigned to: Ways and Means A BILL ENTITLED AN ACT concerning 1 Education – Maryland Office of the Inspector General for Education – Powers 2 and Notifications 3 FOR the purpose of providing that the Maryland Office of the Inspector General for 4 Education is a state educational authority under a certain federal law; providing that 5 the Maryland Office of the Inspector General for Education is the State unit 6 authorized to audit or evaluate certain education programs; prohibiting the 7 Inspector General for Education from serving more than a certain number of full 8 terms; requiring the Governor, the Attorney General, and the State Treasurer to 9 provide the Inspector General with a certain notice and opportunity for a hearing 10 before removing the Inspector General; authorizing the Inspector General to appoint 11 and retain certain employees and consultants, including Deputy Inspectors General; 12 expanding the types of reviews the Inspector General may conduct and the entities 13 the Inspector General may review; requiring the Inspector General to advise a 14 person of the right to counsel when a subpoena is served if the subpoena requires an 15 appearance; authorizing a circuit court to grant appropriate relief after conducting 16 a certain hearing in a criminal proceeding; authorizing the Inspector General to 17 obtain legal services from a person outside the Office of the Attorney General under 18 certain circumstances; requiring each unit of government or county board of 19 education that received State education funds to post a certain notice and, on request 20 of the Maryland Office of the Inspector General for Education, distribute certain 21 information; and generally relating to the Maryland Office of the Inspector General 22 for Education. 23 BY repealing and reenacting, without amendments, 24 Article – Education 25 Section 9.10–101 and 9.10–105 26 Annotated Code of Maryland 27 (2022 Replacement Volume) 28 BY repealing and reenacting, with amendments, 29 2 HOUSE BILL 782 Article – Education 1 Section 9.10–102 through 9.10–104 2 Annotated Code of Maryland 3 (2022 Replacement Volume) 4 BY adding to 5 Article – Education 6 Section 9.10–106 7 Annotated Code of Maryland 8 (2022 Replacement Volume) 9 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10 That the Laws of Maryland read as follows: 11 Article – Education 12 9.10–101. 13 (a) In this title the following words have the meanings indicated. 14 (b) “Inspector General” means the Inspector General in the Maryland Office of 15 the Inspector General for Education. 16 (c) “Office” means the Maryland Office of the Inspector General for Education. 17 9.10–102. 18 (a) There is a Maryland Office of the Inspector General for Education. 19 (b) The Office is [an]: 20 (1) AN independent unit of the State; 21 (2) A STATE EDUCATIONAL AU THORITY UNDER THE FEDERAL 22 FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT; AND 23 (3) THE STATE UNIT AUTHORIZED TO AUDIT OR EVALUATE 24 ELEMENTARY AND SECON DARY EDUCATION PROGRAMS AND SERVICE S IN THE 25 STATE THAT RECEIVE FE DERAL OR STATE SUPPORT . 26 (c) The purpose of the Office is to provide accountability and transparency in the 27 expenditure of public funds for education in the State. 28 (d) All expenses and operations related to the administration of the Office shall 29 be separately identified and independent of any other unit of State government. 30 HOUSE BILL 782 3 9.10–103. 1 (a) There is an Inspector General in the Maryland Office of the Inspector General 2 for Education. 3 (b) (1) An individual is eligible to be the Inspector General only if the 4 individual executes an affidavit stating that the individual will not accept appointment to, 5 or be a candidate for, a State or local office: 6 (i) During the period of service as the Inspector General; and 7 (ii) For at least 3 years immediately after the individual last serves 8 as the Inspector General. 9 (2) The Inspector General shall renew the affidavit every 2 years during 10 the period of service. 11 (3) A failure to renew the affidavit under this subsection shall subject the 12 Inspector General to removal from office under this section. 13 (c) (1) The Inspector General shall be appointed unanimously by the 14 Governor, the Attorney General, and the State Treasurer, subject to the advice and consent 15 of the Senate. 16 (2) (I) The term of the Inspector General is 5 years, beginning July 1 17 after the appointment of the Inspector General. 18 (II) THE INSPECTOR GENERAL MAY NOT SER VE MORE THAN 19 TWO FULL 5–YEAR TERMS. 20 (3) At the end of a term, the Inspector General shall continue to serve until 21 a successor is appointed. 22 (4) If a vacancy occurs in the Office, an Interim Inspector General shall be 23 appointed as a successor to serve for the remainder of the unexpired term. 24 (d) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 25 Inspector General may be removed unanimously by the Governor, the Attorney General, 26 and the State Treasurer for: 27 [(1)] (I) Misconduct in office; 28 [(2)] (II) Persistent failure to perform the duties of the Office; or 29 [(3)] (III) Conduct prejudicial to the proper administration of justice. 30 4 HOUSE BILL 782 (2) (I) BEFORE REMOVING THE INSPECTOR GENERAL, THE 1 GOVERNOR, THE ATTORNEY GENERAL, AND THE STATE TREASURER SHALL 2 PROVIDE THE INSPECTOR GENERAL WITH WRITTEN NOTICE OF THE PROPOS ED 3 REMOVAL. 4 (II) WITHIN 10 DAYS AFTER RECEIVING THE WRITTEN NOTICE 5 OF THE PROPOSED REMO VAL, THE INSPECTOR GENERAL MAY REQUEST A N 6 ADMINISTRATIVE HEARING. 7 (III) THE GOVERNOR, THE ATTORNEY GENERAL, AND THE 8 STATE TREASURER MAY DESIGNA TE AN ASSISTANT ATTORNEY GENERAL TO SERVE 9 AS THE ADMINISTRATIV E HEARING OFFICER FO R A HEARING UNDER 10 SUBPARAGRAPH (II) OF THIS PARAGRAPH . 11 (e) (1) Subject to paragraph (2) of this subsection, the Inspector General shall 12 be professionally qualified through experience or education in at least one of the following 13 areas: 14 (i) Law; 15 (ii) Auditing; 16 (iii) Government operations; 17 (iv) Financial management; or 18 (v) Education policy. 19 (2) If the Inspector General is professionally qualified in the area of 20 education policy, the Inspector General also shall be professionally qualified through 21 experience or education in at least one of the other areas listed in paragraph (1) of this 22 subsection. 23 (f) (1) The Inspector General is entitled to the salary provided in the State 24 budget. 25 (2) Funding for the Office shall be as provided in the State budget. 26 (G) (1) THE INSPECTOR GENERAL MAY , AS PROVIDED IN THE STATE 27 BUDGET, APPOINT TERM MERIT EMPLOYEE S, INCLUDING ONE OR MOR E DEPUTY 28 INSPECTOR S GENERAL. 29 (2) THE TERM OF A DEPUTY INSPECTOR GENERAL SHALL END WHE N 30 THE NEXT INSPECTOR GENERAL TAKES OFFICE , UNLESS THE INSPECTOR GENERAL 31 HOUSE BILL 782 5 SPECIFIES A SHORTER TERM WHEN APPOINT ING THE DEPUTY INSPECTOR 1 GENERAL. 2 (3) THE INSPECTOR GENERAL MAY , AS PROVIDED IN THE STATE 3 BUDGET, RETAIN PROJECT STAFF OR OTHER CONSULTANTS BY CONTRACT . 4 (4) THE INSPECTOR GENERAL MAY , WITH THE AGREEMENT O F THE 5 HEAD OF ANY OTHER GOVERNMENT AGENCY OR COUNTY BOARD , TEMPORARILY 6 DETAIL AN EMPLOYEE O F THAT DEPARTMENT OR COUNTY BOARD TO THE OFFICE. 7 (5) THE INSPECTOR GENERAL MAY APPOINT AND EMPLOY 8 PROFESSIONAL AND CLE RICAL STAFF, INCLUDING ATTORNEYS , ACCOUNTANTS , 9 AUDITORS, ANALYSTS, AND INVESTIGATORS , AS PROVIDED IN THE STATE BUDGET , 10 TO CONDUCT THE WORK OF THE OFFICE. 11 9.10–104. 12 (a) (1) Except as provided in paragraph (2) of this subsection, the Inspector 13 General [shall be responsible for examining and investigating the] MAY CONDUCT AN 14 INVESTIGATION , BUDGETARY ANA LYSIS, AND FINANCIAL , MANAGEMENT , OR 15 PERFORMANCE AUDIT OR SIMILAR REVIEW OF THE matters listed in subsection (b) of 16 this section with respect to the management and affairs of the following entities: 17 (i) County boards, local school systems, and public schools; 18 (ii) Nonpublic schools that receive State funds; 19 (iii) The Department; [and] 20 (iv) The Interagency Commission on School Construction; AND 21 (V) THE ACCOUNTABILITY AND IMPLEMENTATION BOARD. 22 (2) The Inspector General may not examine or investigate a nonpublic 23 school that does not receive State funds. 24 (3) IN PERFORMING THE FUN CTIONS UNDER PARAGRA PH (1) OF THIS 25 SUBSECTION, THE INSPECTOR GENERAL MAY: 26 (I) SEEK ASSISTANCE FROM ANY OTHER GOVERNMENT 27 AGENCY OR PRIVATE PA RTY; AND 28 (II) UNDERTAKE ANY PROJECT JOINTLY WITH ANY OTH ER 29 GOVERNMENT AGENCY . 30 6 HOUSE BILL 782 (b) The Inspector General may receive and investigate complaints or information 1 concerning: 2 (1) Instances of fraud, waste, or abuse involving the use of public funds and 3 property; 4 (2) Violations of civil rights, as defined in federal or State laws, of students 5 or employees of the entities listed in subsection (a) of this section; 6 (3) Whether policies and procedures governing the prevention and 7 reporting of child abuse and neglect comply with applicable federal and State laws on child 8 abuse and neglect; and 9 (4) Compliance with other applicable POLICIES, PROCEDURES , AND 10 federal and State laws. 11 (c) (1) The Inspector General may not disclose the identity of the source of a 12 complaint or information provided under subsection (b) of this section unless the Inspector 13 General: 14 (i) Obtains the written consent of the source; or 15 (ii) Determines that disclosure of the identity of the source is 16 necessary and unavoidable during the course of the investigation. 17 (2) If the Inspector General determines that disclosure of the identity of a 18 source is necessary and unavoidable, the Inspector General shall notify the source in 19 writing at least 7 days before disclosure. 20 (d) (1) Except as provided in paragraph (2) of this subsection, during an 21 investigation, BUDGETARY ANALYSIS , OR FINANCIAL , MANAGEMENT , OR 22 PERFORMANCE AUDIT OR SIMILAR REVIEW conducted in accordance with this title, the 23 Inspector General shall have access to all records, data, reports, contracts, correspondence, 24 or other documents of an entity listed under subsection (a) of this section that is the subject 25 of the investigation. 26 (2) The Inspector General may not access or compel the production of 27 documents that are: 28 (i) Protected under the attorney–client privilege; or 29 (ii) Confidential or privileged under applicable provisions of federal 30 or State law. 31 (e) (1) (i) During an investigation, BUDGETARY ANALYSIS , OR 32 FINANCIAL, MANAGEMENT , OR PERFORMANCE AUDIT OR SIMILAR REVIEW conducted 33 in accordance with this title, the Inspector General may: 34 HOUSE BILL 782 7 1. Seek and obtain sworn testimony; and 1 2. Issue subpoenas as necessary to compel the production of 2 documents and records or the attendance of witnesses. 3 (ii) A subpoena may be served in the same manner as one issued by 4 a circuit court. 5 (2) (i) A person may have an attorney present during any contact with 6 the Inspector General. 7 (ii) The Inspector General shall advise a person of the right to 8 counsel when a subpoena is served, IF THE SUBPOENA REQU IRES THE APPEARANCE OF 9 A PERSON. 10 (3) (i) 1. The Inspector General immediately may report the failure 11 of a person to obey a lawfully served subpoena to the circuit court of the county that has 12 jurisdiction. 13 2. The Inspector General shall provide a copy of the 14 subpoena and proof of service to the circuit court. 15 (ii) After conducting a hearing at which the person who allegedly 16 failed to comply with a subpoena has an opportunity to be heard and represented by counsel 17 IN A CRIMINAL PROCEE DING, the circuit court may grant appropriate relief. 18 (f) A State or local agency, county board, nonpublic school, or public official may 19 not take adverse, retaliatory action against an individual [because the individual 20 cooperated] WHO: 21 (1) COOPERATED with or provided information to the Inspector General; 22 OR 23 (2) IS PROTECTED UNDER TITLE 6, SUBTITLE 9 OF THIS ARTICLE . 24 (g) Records or information provided to, prepared for, or obtained by the Inspector 25 General in connection with an investigation are confidential and not subject to disclosure 26 under the Public Information Act. 27 (h) If the Inspector General finds or has reasonable grounds to believe that there 28 has been a criminal violation of federal or State law, the Inspector General shall notify and 29 refer the matter to the appropriate federal, State, or local law enforcement authority, local 30 State’s Attorney’s office, Office of the Attorney General, Office of the State Prosecutor, or 31 federal agency. 32 8 HOUSE BILL 782 (i) If the Inspector General identifies an issue of concern that would not 1 constitute a criminal violation of State law, the Inspector General may report the issue of 2 concern to the State Superintendent, the State Board, the Interagency Commission on 3 School Construction, the Governor, and, in accordance with § 2–1257 of the State 4 Government Article, the General Assembly. 5 (j) The Inspector General may [appoint and employ professional and clerical 6 staff, including attorneys, accountants, auditors, analysts, and investigators, as 7 appropriated in the annual State budget, to conduct the work of the Office] OBTAIN LEGAL 8 SERVICES FROM A PERSON OUTSIDE THE OFFICE OF THE ATTORNEY GENERAL, IF: 9 (1) THE INSPECTOR GENERAL FINDS THAT OB TAINING 10 INDEPENDENT LEGAL SE RVICES IS NECE SSARY TO EFFECTIVELY PERFORM THE 11 OFFICE’S DUTIES; AND 12 (2) THE DEPARTMENT OF BUDGET AND MANAGEMENT 13 APPROPRIATES SUFFICI ENT FUNDS TO COVER T HE COST OF THE LEGAL SERVICES. 14 (K) THE STATE SHALL PROVIDE T HE INSPECTOR GENERAL WITH 15 APPROPRIATELY LOCATE D OFFICE SPACE AND S UFFICIENT PHYSICAL F ACILITIES, 16 INCLUDING NECESSARY OFFICE SUPPLIES , EQUIPMENT, AND FURNISHINGS TO 17 ENABLE THE OFFICE TO PERFORM ITS INDEPENDENT FUNCTION S. 18 9.10–105. 19 (a) On or before December 1 each year, the Office shall submit a report to the 20 State Superintendent, the State Board, the Interagency Commission on School 21 Construction, the Governor, and, in accordance with § 2–1257 of the State Government 22 Article, the General Assembly. 23 (b) The report shall include information on: 24 (1) The Office’s goals and priorities for the upcoming year; 25 (2) The Office’s activities during the preceding year; 26 (3) The number of incidents, in the aggregate, and a general summary of 27 the nature of the reported incidents, referred to the appropriate federal, State, or local law 28 enforcement authority, local State’s Attorney’s office, Office of the Attorney General, Office 29 of the State Prosecutor, or federal agency during the preceding year; 30 (4) Specific findings and recommendations relating to: 31 (i) Instances of fraud, waste, or abuse involving the use of public 32 funds and property; 33 HOUSE BILL 782 9 (ii) Violations of the civil rights of students or employees; 1 (iii) Policies and procedures related to child abuse and neglect and 2 compliance with applicable federal and State laws; and 3 (iv) Compliance with other applicable federal and State laws; and 4 (5) Any regulatory or statutory changes necessary to ensure compliance 5 with applicable federal and State laws. 6 9.10–106. 7 EACH UNIT OF GOVERNME NT OR COUNTY BOARD THAT RECEIVES STATE 8 EDUCATION FUNDS SHALL: 9 (1) KEEP POSTED IN CONSPI CUOUS PLACES ON ITS PREMISES A 10 NOTICE PREPARED BY T HE OFFICE SETTING FORTH THE METHODS FOR REPO RTING 11 FRAUD, WASTE, AND ABUSE OF EDUCA TION RESOURCES ; 12 (2) KEEP POSTED IN CONSPI CUOUS PLACES ON ITS WEBSITE A 13 DIRECT LINK TO THE OFFICE FOR REPORTING FRAUD, WASTE, AND ABUSE; AND 14 (3) ON REQUEST OF THE OFFICE, DISTRIBUTE INFORMATI ON 15 RELATED TO THE PREVE NTION, DETECTION, AND REPORTING OF FRAUD, WASTE, 16 AND ABUSE OF EDUCATI ON RESOURCES TO THE STATE, COUNTY BOARD 17 EMPLOYEES, AND OTHER PERSONS OR ENTITIES RECEIVING STATE EDUCATION 18 FUNDS. 19 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20 1, 2023. 21