WES MOORE, Governor Ch. 437
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Chapter 437
(House Bill 1012)
AN ACT concerning
State Officers and Employees – Required Surety Bonds – Insurance Policies
Authorized
FOR the purpose of altering the requirements that certain officers and employees of the
State be covered by certain surety bonds to allow the officers and employees to be
covered by certain insurance policies; transferring certain duties and responsibilities
of the Maryland State Employees Surety Bond Committee to the State Treasurer;
repealing certain provisions of law related to the approval, form, and record of
certain surety bonds required for certain officers and employees of the State; and
generally relating to surety bond and insurance coverage requirements for certain
officers and employees of the State.
BY repealing and reenacting, with amendments,
Article – Agriculture
Section 8–205(c)(8) and 8–303(c)
Annotated Code of Maryland
(2016 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Business Occupations and Professions
Section 3–204(d)(2), 7–203(c), 16–203(c), 16–205(e), 17–203(d), and 17–205(f)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Business Regulation
Section 4–204(d), 8–205(d), and 11–204(d)
Annotated Code of Maryland
(2015 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Correctional Services
Section 3–217
Annotated Code of Maryland
(2017 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 10–313(b)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement) Ch. 437 2024 LAWS OF MARYLAND
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BY repealing
Article – Education
Section 18–1908(a)
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY adding to
Article – Education
Section 18–1908(a)
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Insurance
Section 2–103(e) and 2–104(a)(3)
Annotated Code of Maryland
(2017 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Labor and Employment
Section 8–414(b)(1)
Annotated Code of Maryland
(2016 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Natural Resources
Section 3–103(e)(1)(v) and (2)(ii) and 3–903(g)
Annotated Code of Maryland
(2023 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 8–135(c)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Government
Section 2–1218(b)(3), 4–102, 4–104(b)(2), 5–102, 5–102.1, and 5–105(a)(2)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY adding to
Article – State Government
Section 5–108 WES MOORE, Governor Ch. 437
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Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing
Article – State Government
Section 9–1701 through 9–1707 and the subtitle “Subtitle 17. Maryland State
Employees Surety Bond Committee”
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Personnel and Pensions
Section 21–210(a)
Annotated Code of Maryland
(2015 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Transportation
Section 8–204(e)(2)
Annotated Code of Maryland
(2020 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Agriculture
8–205.
(c) The Committee shall:
(8) Provide for the execution of surety bonds OR INSURANCE POLICIE S
OF THE TYPE AND IN T HE AMOUNT OF COVERAG E DETERMINED BY THE STATE
TREASURER UNDER § 5–108 OF THE STATE GOVERNMENT ARTICLE for every
employee or officer entrusted with funds or property;
8–303.
(c) The supervisors shall provide for the execution of surety bonds OR
INSURANCE POLICIES O F THE TYPE AND IN TH E AMOUNT OF COVERAGE
DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THE STATE
GOVERNMENT ARTICLE for every employee and officer who is entrusted with funds or
property. They shall provide for the keeping of a full and accurate record of all proceedings
and of all resolutions, rules and regulations, and orders issued or adopted. They shall
provide for an annual audit of the accounts of receipts and disbursements.
Ch. 437 2024 LAWS OF MARYLAND
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Article – Business Occupations and Professions
3–204.
(d) (2) The Board may require the staff to be covered by a surety bond [in the
form and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
7–203.
(c) The secretary of the Board shall be covered by a surety bond [in the form and
amount required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE AMOUNT
OF COVERAGE DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THE
STATE GOVERNMENT ARTICLE.
16–203.
(c) While in office, the chairman shall be covered by a surety bond [in the form
and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
16–205.
(e) While employed as executive director, the executive director shall be covered
by a surety bond [in the form and amount required by law] OR AN INSURANCE POLI CY
OF THE TYPE AND IN T HE AMOUNT OF COVERAG E DETERMINED BY THE STATE
TREASURER UNDER § 5–108 OF THE STATE GOVERNMENT ARTICLE.
17–203.
(d) While in office, the chairman shall be covered by a surety bond [in the form
and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
17–205.
(f) While employed as executive director, the executive director shall be covered
by a surety bond [in the form and amount required by law] OR AN INSURANCE POLI CY
OF THE TYPE AND IN T HE AMOUNT OF COVERAG E DETERMINED BY THE STATE
TREASURER UNDER § 5–108 OF THE STATE GOVERNMENT ARTICLE.
WES MOORE, Governor Ch. 437
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Article – Business Regulation
4–204.
(d) While in office, each member of the Commission shall be covered by a surety
bond [in the form and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE
AND IN THE AMOUNT OF COVERAGE DETERMINED BY THE STATE TREASURER
UNDER § 5–108 OF THE STATE GOVERNMENT ARTICLE.
8–205.
(d) While employed as executive director, the executive director shall be covered
by a surety bond [in the form and amount required by law] OR AN INSURANCE POLI CY
OF THE TYPE AND IN T HE AMOUNT OF COVERAG E DETERMINED BY THE STATE
TREASURER UNDER § 5–108 OF THE STATE GOVERNMENT ARTICLE.
11–204.
(d) While in office, each member of the Commission shall be covered by a surety
bond [in the form and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE
AND IN THE AMOUNT OF COVERAGE DETERMINED BY THE STATE TREASURER
UNDER § 5–108 OF THE STATE GOVERNMENT ARTICLE.
Article – Correctional Services
3–217.
(a) (1) The Governor may require the Commissioner to execute a surety bond
in an amount that the Governor establishes OR AN INSURANCE POLI CY OF THE TYPE
AND IN THE AMOUNT OF COVERAGE DETERMINED BY THE GOVERNOR IN
CONSULTATION WITH TH E STATE TREASURER.
(2) The Commissioner may require any officer or other employee of the
Division to execute a surety bond in the amount that the Commissioner, with the approval
of the [Comptroller] STATE TREASURER, establishes.
(3) The bond shall be conditioned on the individual faithfully performing
the duties of office and accounting for all funds officially received.
(b) (1) [The] A surety bond for the Commissioner shall be issued by a
corporate surety approved by the Governor.
(2) [The] ANY surety bond for [any] AN officer or other employee of the
Division shall be issued by a corporate surety approved by the Commissioner and the
[Comptroller] STATE TREASURER. Ch. 437 2024 LAWS OF MARYLAND
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(c) The premium for a surety bond OR AN INSURANCE POLICY issued under this
section shall be paid by the Division.
(d) An individual who fails to provide or maintain a surety bond OR AN
INSURANCE POLICY as required by this section:
(1) may not assume the duties of the individual’s position; and
(2) after 30 days, forfeits the individual’s office or employment.
Article – Economic Development
10–313.
(b) Each member, the Executive Director, each other officer, and each employee
of the Authority shall be covered by a surety bond [in accordance with Title 9, Subtitle 17
of the State Government Article] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
Article – Education
18–1908.
[(a) The State Treasurer shall purchase a bond for each fiduciary in accordance
with Title 9, Subtitle 17 of the State Government Article.]
(A) EACH FIDUCIARY SHALL BE COVERED BY A SURE TY 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,
AS A FIDUCIARY OF TH E TRUST.
Article – Insurance
2–103.
(e) The Commissioner shall be covered by a surety bond [in the form and amount
required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE AMOUNT OF
COVERAGE DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THE STATE
GOVERNMENT ARTICLE.
2–104.
WES MOORE, Governor Ch. 437
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(a) (3) The Deputy Commissioner shall be covered by a surety bond [in the
form and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
Article – Labor and Employment
8–414.
(b) (1) Subject to § 8–405 of this subtitle and paragraph (2) of this subsection,
the Secretary shall use the Unemployment Insurance Administration Fund to pay the
administrative costs of this title including the costs of:
(i) office space in accordance with § 8–421(c) of this subtitle; and
(ii) the PREMIUM OF A NY surety bond OR INSURANCE POLICY of
the State Treasurer under § 5–102.1 of the State Government Article for the
Unemployment Insurance Administration Fund.
Article – Natural Resources
3–103.
(e) (1) (v) Upon entering the performance of official duties, the Treasurer
shall be covered by a surety bond [in accordance with the provisions of law concerning the
State Employees Surety Bond Committee] OR AN INSURANCE POLI CY OF THE TYPE AND
IN THE AMOUNT OF COV ERAGE DETERMINED BY THE STATE TREASURER UNDER §
5–108 OF THE STATE GOVERNMENT ARTICLE.
(2) (ii) The Deputy Treasurer shall be covered by a surety bond [in
accordance with the provisions of law concerning the State Employees Surety Bond
Committee] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE AMOUNT OF
COVERAGE DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THE STATE
GOVERNMENT ARTICLE.
3–903.
(g) Each member of the Authority, the executive director and such employees as
may be designated by the Authority, shall, upon entering the performance of their duties,
be covered by a surety bond [in accordance with the provisions of Title 9, Subtitle 17 of the
State Government Article] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
Article – State Finance and Procurement Ch. 437 2024 LAWS OF MARYLAND
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8–135.
(c) During its agency, the fiscal agent shall be covered by a surety bond [in the
form and amount required by law] OR AN INSURANCE POLICY OF THE TYPE AND IN THE
AMOUNT OF COVERAGE D ETERMINED BY THE STATE TREASURER UNDER § 5–108 OF
THE STATE GOVERNMENT ARTICLE.
Article – State Government
2–1218.
(b) The Legislative Auditor must:
(3) while in office, be covered by a surety bond [in the form and amount
required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N THE AMOUNT OF
COVERAGE DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THIS
ARTICLE.
4–102.
(a) While in office, the Comptroller shall be covered by a surety bond OR AN
INSURANCE POLICY as required in this section.
(b) [The] A surety bond of the Comptroller shall:
(1) run to the State;
(2) be in the amount of $200,000;
(3) be with surety that the Governor approves; and
(4) be conditioned on the Comptroller:
(i) accounting for the funds that are received under color of office;
and
(ii) otherwise discharging faithfully each duty of office.
(c) After execution and approval of a surety bond under this section, the surety
bond shall be recorded in the office of the Clerk of the Supreme Court of Maryland.
(D) THE STATE TREASURER SHALL DETER MINE THE TYPE AND AM OUNT OF
COVERAGE TO BE PROVI DED BY AN INSURANCE POLICY PURCHASED UND ER WES MOORE, Governor Ch. 437
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SUBSECTION (A) OF THIS SECTION AND KEEP REC ORD OF ANY INSUR ANCE POLICY
PROCURED TO MEET THE REQUIREMENTS OF SUBS ECTION (A) OF THIS SECTION.
4–104.
(b) (2) While in office, the Chief Deputy Comptroller and each deputy
comptroller shall be covered by a surety bond [in the form and amount required by law] OR
AN INSURANCE POLICY OF THE TYPE AND IN T HE AMOUNT OF COVERAG E
DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THIS ARTICLE.
5–102.
(a) While in office, the Treasurer shall be covered by a surety bond OR AN
INSURANCE POLICY as required in this section.
(b) [The] A surety bond under this section shall:
(1) run to the State;
(2) be in the amount that the Governor approves;
(3) be with a surety company that is authorized to do business in the State;
and
(4) include provisions that secure the money of:
(i) the Injured Workers’ Insurance Fund;
(ii) the Subsequent Injury Fund; and
(iii) the Unemployment Insurance Administration Fund.
(c) (1) If the Governor believes that [the] A surety bond under this section has
or is likely to become invalid or insufficient, the Governor shall demand that the Treasurer
obtain coverage under a new surety bond that meets the requirements of this section.
(2) Neglect or refusal to obtain the coverage within 20 days after the
demand constitutes disqualification from office, as authorized in the Maryland
Constitution.
(d) After execution and approval of a surety bond under this section, the surety
bond shall be recorded in the office of the Clerk of the Supreme Court of Maryland.
Ch. 437 2024 LAWS OF MARYLAND
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(E) (1) THE GOVERNOR, IN CONSULTATION WITH THE STATE
TREASURER, SHALL DETERMINE THE TYPE AND AMOUNT OF C OVERAGE PROVIDED
BY AN INSURANCE POLICY PURCHASED UND ER SUBSECTION (A) OF THIS SECTION.
(2) THE STATE TREASURER SHALL KEEP A RECORD OF ANY
INSURANCE POLICY PRO CURED FOR THE PURPOS E OF MEETING THE
REQUIREMENTS OF SUBS ECTION (A) OF THIS SECTION.
5–102.1.
(a) In addition to the bond OR INSURANCE POLICY required under § 5–102 of
this subtitle, the State Treasurer shall be covered by a surety bond [as required in] OR AN
INSURANCE POLICY MEE TING THE REQUIREMENT S OF this section.
(b) [The] A surety bond [under] PURCHASED TO MEET TH E REQUIREMENT S
OF SUBSECTION (A) OF this section shall:
(1) be conditioned on the faithful performance of the duties of the State
Treasurer as custodian of the Unemployment Insurance Fund;
(2) run to the State;
(3) be in an amount that the Secretary approves; and
(4) be in a form required by law or approved by the Attorney General.
(C) AN INSURANCE POLICY P URCHASED TO MEET THE REQUIREMENTS OF
SUBSECTION (A) OF THIS SECTION SHAL L BE OF THE TYPE AND IN THE AMOUNT OF
COVERAGE DETERMINED BY THE STATE TREASURER, IN CONSULTATION WITH THE
SECRETARY OF LABOR.
5–105.
(a) (2) While on the staff, an individual shall be covered by a surety bond [in
the form and amount required by law] OR AN INSURANCE POLI CY OF THE TYPE AND I N
THE AMOUNT OF COVERA GE DETERMINED BY THE STATE TREASURER UNDER §
5–108 OF THIS SUBTITLE.
5–108.
(A) IN DETERMINING THE TY PE AND AMOUNT OF COV ERAGE OF ANY SURETY
BOND OR INSURANCE PO LICY REQUIRED BY LAW , THE STATE TREASURER SHALL
HAVE DUE REGARD FOR THE DUTIES AND RESPO NSIBILITIES OF THE O FFICER OR
EMPLOYEE. WES MOORE, Governor Ch. 437
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(B) AN OFFICER OR EMPLOYE E WHO IS REQUIRED TO BE BONDED OR
INSURED SHALL BE COV ERED, ON BEGINNING THE PER FORMANCE OF THE
OFFICER’S OR EMPLOYEE ’S DUTIES, BY A SURETY BOND OR AN INSURANCE POLICY
OF THE TYPE SPECIFIE D AND IN THE AMOUNT AND TERM TO BE DETER MINED BY THE
STATE TREASURER.
(C) EACH STATE OFFICER OR EMPL OYEE, OTHER THAN THOSE
SPECIFICALLY REQUIRE D TO BE BONDED OR IN SURED IN ACCORDANCE WITH ANY
LAW OF THE STATE, WHO IN THE OPINION O F THE STATE TREASURER SHOULD BE
BONDED OR INSURED SH ALL BE BONDED WITH T HE TYPE OF BOND OR I NSURANCE
AND IN THE AMOUNT AN D TERM TO BE DETERMI NED BY THE STATE TREASURER.
(D) THE STATE TREASURER SHALL KEEP A RECORD OF E ACH INSURANCE
POLICY PURCHASED TO MEET THE REQUIREMENT S OF SUBSECTION (B) OF THIS
SECTION.
(E) (1) ON THE PURCHASE OF AN Y BOND REQUIRED BY L AW, A COPY OF
THE BOND SHALL BE SE NT TO THE COMPTROLLER .
(2) A RECORD SHALL BE KEPT IN THE OFFICE OF THE STATE
COMPTROLLER GIVING :
(I) THE NAME OF THE OFFI CER OR EMPLOYEE FOR WHOM ANY
INDIVIDUAL BOND IS I SSUED;
(II) THE NAME OF THE AGEN CY IN WHICH THE OFFI CER OR
EMPLOYEE IS EMPLOYED OR THE NAME OF THE A GENCIES COVERED UNDE R A
BLANKET BOND PROGRAM ;
(III) THE NAME OF THE COMP ANY ISSUING THE BOND ; AND
(IV) THE AMOUNT , DATE, AND TIME OF EXPIRATI ON OF THE
BOND AND OF ANY CERT IFICATE RENEWING THE BOND.
[Subtitle 17. Maryland State Employees Surety Bond Committee.]
[9–1701.
In this subtitle, “Committee” means the Maryland State Employees Surety Bond
Committee.]
[9–1702. Ch. 437 2024 LAWS OF MARYLAND
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There is a committee on bonding of State officers and employees, known as the
Maryland State Employees Surety Bond Committee.]
[9–1703.
The Committee consists of the State Treasurer, the State Comptroller, and the
Attorney General or their designated representatives.]
[9–1704.
(a) The Committee may periodically set the type and amount of the bonds of each
State officer and employee who is required to be bonded in accordance with any law of the
State, having due regard for the duties and responsibilities of the officer or employee.
(b) An officer or employee who is required to be bonded shall be covered, on
entering the performance of the officer’s or employee’s duties, by a surety bond of the type
specified and in the amount and term fixed by the Committee.]
[9–1705.
Each State officer or employee other than those specifically required to be bonded in
accordance with any law of the State, who in the opinion of the Committee should be
bonded, shall be bonded with the type of bond and in the amount and term to be determined
by the Committee.]
[9–1706.
(a) Bonds purchased in accordance with §§ 9–1704 and 9–1705 of this subtitle
shall be purchased by the State Treasurer on prior approval of the Board of Public Works
from a company authorized to issue the bonds and authorized to do business in the State.
(b) The premium on bonds purchased in accordance with §§ 9–1704 and 9–1705
of this subtitle shall be provided for in the State budget.
(c) On prior approval of the Board of Public Works, the State Treasurer may at
any time any bond coverage is no longer required, cause the bond to be canceled or
terminated and may collect any rebate of premium on the bond.]
[9–1707.
(a) Each bond required by §§ 9–1704 and 9–1705 of this subtitle shall be approved
as to form by the Attorney General and filed in the Office of the State Comptroller.
(b) A record shall be kept in the Office of the State Comptroller giving: WES MOORE, Governor Ch. 437
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(1) the name of the officer or employee for whom any individual bond is
issued;
(2) the name of the agency in which the officer or employee is employed or
the name of the agencies covered under a blanket bond program;
(3) the name of the company issuing the bond; and
(4) the amount, date, and time of expiration of the bond and of any
certificate renewing the bond.]
Article – State Personnel and Pensions
21–210.
(a) Except as provided in subsection (c) of this section, the State shall purchase a
bond for each fiduciary in [accordance with Title 9, Subtitle 17 of the State Government
Article] THE FORM AND AMOUNT DETERMINED BY THE STATE TREASURER UNDER §
5–108 OF THE STATE GOVERNMENT ARTICLE, IN CONSULTATION WITH THE BOARD
OF TRUSTEES.
Article – Transportation
8–204.
(e) (2) Any employee of the Administration may be bonded [under Title 9,
Subtitle 17 of the State Government Article] OR COVERED BY AN INS URANCE POLICY AS
DETERMINED BY THE STATE TREASURER UNDER § 5–108 OF THE STATE
GOVERNMENT ARTICLE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2024.
Approved by the Governor, May 9, 2024.