EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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HOUSE BILL 418
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By: Delegate Stein
Introduced and read first time: January 18, 2024
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Grant Applications and Reporting – Maryland Efficient Grant Application 2
Council – Alterations 3
FOR the purpose of altering the composition of the Maryland Efficient Grant Application 4
Council; requiring the Council to study and make recommendations to the 5
Governor’s Grants Office and the Department of Budget and Management regarding 6
the creation of a State Grants Ombudsperson; altering certain reporting 7
requirements; extending the termination date of the Council; and generally relating 8
to the Maryland Efficient Grant Application Council and reporting requirements. 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 2–209 and 2–210 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2023 Supplement) 14
BY repealing and reenacting, with amendments, 15
Chapter 484 of the Acts of the General Assembly of 2020 16
Section 2 and 4 17
BY repealing and reenacting, with amendments, 18
Chapter 485 of the Acts of the General Assembly of 2020 19
Section 2 and 4 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – State Finance and Procurement 23
2–209. 24
2 HOUSE BILL 418
(a) In this section, “Council” means the Maryland Efficient Grant Application 1
Council. 2
(b) There is a Maryland Efficient Grant Application Council. 3
(c) (1) The Council consists of the following members: 4
(i) the Director of the Governor’s Grants Office, or the Director’s 5
designee; 6
(ii) the Chief Procurement Officer, or the Chief Procurement 7
Officer’s designee; 8
(iii) the State Treasurer, or the State Treasurer’s designee; 9
(IV) THE COMPTROLLER , OR THE COMPTROLLER ’S DESIGNEE; 10
[(iv)] (V) the Attorney General, or the Attorney General’s designee; 11
[(v)] (VI) the Secretary of Budget and Management, or the 12
Secretary’s designee; 13
[(vi)] (VII) the Secretary of Health, or the Secretary’s designee; 14
[(vii)] (VIII) the Secretary of Human Services, or the Secretary’s 15
designee; 16
[(viii)] (IX) the Secretary of Housing and Community Development, or 17
the Secretary’s designee; 18
[(ix)] (X) the Secretary of Agriculture, or the Secretary’s designee; 19
[(x)] (XI) the Secretary of the Environment, or the Secretary’s 20
designee; 21
[(xi)] (XII) the State Superintendent of Schools, or the State 22
Superintendent’s designee; 23
[(xii)] (XIII) the Director of the Maryland Energy Administration, or 24
the Director’s designee; 25
[(xiii)] (XIV) the Executive Director of the Governor’s Office of Crime 26
Prevention, Youth, and Victim Services, or the Executive Director’s designee; 27
[(xiv)] (XV) the chair of the Maryland Higher Education Commission, 28
or the chair’s designee; 29 HOUSE BILL 418 3
[(xv)] (XVI) the Secretary of Natural Resources, or the Secretary’s 1
designee; 2
(XVII) THE LEGISLATIVE AUDITOR, OR THE LEGISLATIVE 3
AUDITOR’S DESIGNEE; 4
[(xvi)] (XVIII) a representative from the Maryland Association of 5
Counties; 6
[(xvii)] (XIX) a representative from the Maryland Municipal 7
League; 8
[(xviii)] (XX) five representatives of privat e nonprofit 9
organizations with experience providing services funded by State or federal grants and that 10
reflect the size and diversity of the nonprofit grant recipients in the State, appointed by the 11
Governor; 12
[(xix)] (XXI) one representative of a private nonprofit organization, 13
appointed by the President of the Senate; and 14
[(xx)] (XXII) one representative of a private nonprofit organization, 15
appointed by the Speaker of the House. 16
(2) (i) This paragraph applies to members of the Council appointed 17
under paragraph [(1)(xviii)] (1)(XX) of this subsection. 18
(ii) The term of a member is 4 years. 19
(iii) The terms of members are staggered as required by the terms 20
provided for members of the Council on July 1, 2020. 21
(iv) At the end of a term, a member continues to serve until a 22
successor is appointed and qualifies. 23
(v) A member who is appointed after a term has begun serves only 24
for the rest of the term and until a successor is appointed and qualifies. 25
(vi) The Governor may remove a member for neglect of duty, 26
incompetence or misconduct. 27
(d) The Director of the Governor’s Grants Office or the Director’s designee shall 28
serve as Chair of the Council. 29
(e) The staffing responsibilities of the Council shall be shared by the agencies 30
represented on the Council. 31 4 HOUSE BILL 418
(f) A member of the Council: 1
(1) may not receive compensation as a member of the Council; but 2
(2) is entitled to reimbursement for expenses under the Standard State 3
Travel Regulations, as provided in the State Budget. 4
(g) The Council shall: 5
(1) advise the Governor’s Grants Office and the Department of Budget and 6
Management on the implementation of § 2–210 of this subtitle; and 7
(2) monitor and report to the Governor’s Grants Office and the Department 8
of Budget and Management on the State’s progress towards implementing § 2–210 of this 9
subtitle. 10
2–210. 11
(a) (1) In this section the following words have the meanings indicated. 12
(2) “Council” means the Maryland Efficient Grant Application Council 13
established under § 2–209 of this subtitle. 14
(3) “Department” means the Department of Budget and Management. 15
(4) (i) “Grant” means a legal instrument of financial assistance 16
between a State grant–making entity and a non–State entity that is: 17
1. used to enter into a relationship the principal purpose of 18
which is to transfer anything of value from the grant–making entity to the grant recipient 19
to carry out a public purpose authorized by law and not to acquire property or services for 20
the direct benefit or use of the grant–making entity; and 21
2. distinguished from a cooperative agreement in that it does 22
not provide for substantial involvement between the grant–making entity and the grant 23
recipient in carrying out the activity contemplated by the award. 24
(ii) “Grant” does not include an instrument that provides only: 25
1. direct government cash assistance to an individual; 26
2. a subsidy; 27
3. a loan; 28
4. a loan guarantee; 29 HOUSE BILL 418 5
5. insurance; 1
6. grants made by the State higher education system, the 2
capital budget, the Department of Transportation, or the Maryland Technology 3
Development Corporation; 4
7. business development grants made by the Department of 5
Commerce; or 6
8. any State funding that is required annually and is 7
calculated through a formula set in statute. 8
(5) “Grant application form” means a grant application template and 9
related materials required to be submitted by grant applicants, including: 10
(i) required organizational materials; and 11
(ii) proposed budget categories and line items. 12
(6) “Uniform Guidance” means the Office of Management and Budget 13
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 14
Federal Awards, 2 C.F.R. Part 200. 15
(b) (1) In order to improve efficiency, streamline and reduce redundant 16
processes, reduce paperwork and administrative burdens on both granting agencies and 17
grant recipients, and facilitate development and implementation of a statewide centralized 18
grants management and accountability system, the Council shall study and make 19
recommendations to the Governor’s Grants Office and the Department regarding the entire 20
grants life cycle, including: 21
(i) the creation of the following materials for use by grant–making 22
agencies, grant applicants, and grant recipients in the State: 23
1. a uniform grant application form; 24
2. uniform financial controls and reporting requirements for 25
grant recipients; and 26
3. uniform performance progress reporting requirements for 27
grant recipients; 28
(II) THE CREATION OF A STATE GRANTS OMBUDSPERSON TO 29
PROVIDE TECHNICAL AS SISTANCE WITH: 30
1. ACCESSING AND NAVIGA TING STATE GRANT 31
PROGRAMS; 32 6 HOUSE BILL 418
2. RESOLVING DELAYS IN THE GRANT –MAKING 1
PROCESS; AND 2
3. COLLECTING AND DISSE MINATING INFORMATION ON 3
OPPORTUNITIES FOR GR ANTS FROM FEDERAL, STATE, AND LOCAL GOVERNMENT ; 4
[(ii)] (III) regulations adopting each part of the uniform guidance, 5
with appropriate modifications for its application to grant–making entities in the State, 6
including modifications or variances based on the scope or size of particular grant 7
programs, grant–making entities, or grantees; 8
[(iii)] (IV) recommended timeframes and deadlines for the various 9
tasks included in items (i) [and (ii)] THROUGH (III) of this paragraph; 10
[(iv)] (V) recommended deadlines for use and implementation by 11
the various grant–making entities of the materials prepared in accordance with item (i) of 12
this paragraph; and 13
[(v)] (VI) recommended deadlines for grant–making entities to 14
administer State and federal grants in accordance with the provisions of parts of uniform 15
guidance as adopted by the Department by regulation. 16
(2) In developing materials and recommendations under this subsection, 17
the Council shall: 18
(i) solicit the input of diverse stakeholders, including grant–making 19
agencies and organizations representing local governments, grant professionals, experts in 20
nonprofit accounting and auditing, and nonprofit service providers; and 21
(ii) establish one or more issue working groups, composed of 22
stakeholders representing diverse backgrounds appropriate to the charge of each 23
workgroup, and also reflecting the demographic diversity of the State and the diversity of 24
grant programs and grant recipients, including arts, history, and social service, to 25
participate in and facilitate the process of developing recommendations. 26
(c) On or before July 1, [2024] 2027, the Council shall submit a report on its full 27
recommendations as required by subsection (b)(1) of this section to the Department and the 28
General Assembly, in accordance with § 2–1257 of the State Government Article. 29
(d) On or before October 1, 2020, each State grant–making agency shall appoint 30
a Chief Accountability Officer who shall: 31
(1) serve as a liaison to the Council and the Governor’s Grants Office; and 32
HOUSE BILL 418 7
(2) be responsible for the agency’s representation and participation in the 1
process established under this section. 2
(e) The Governor’s Grants Office shall provide technical assistance and 3
interpretations of policy requirements in order to ensure the effective and efficient 4
implementation of this section. 5
Chapter 484 of the Acts of 2020 6
SECTION 2. AND BE IT FURTHER ENACTED, That, in accordance with § 2 –1257 7
of the State Government Article, the Department of Budget and Management shall: 8
(1) on or before December 31, 2021, report to the General Assembly on the 9
implementation of this Act, including the timelines and deadlines recommended by the 10
Maryland Efficient Grant Application Council in accordance with § 2–210(b)(1)(iii) of the 11
State Finance and Procurement Article, as enacted by Section 1 of this Act; and 12
(2) on or before December 31 of the calendar years 2022 through [2026] 13
2028, report to the General Assembly on the progress of the implementation of this Act, 14
including any recommendations of the Maryland Efficient Grant Application Council. 15
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2020. It shall remain effective for a period of [5] 8 years and, at the end of June 30, 17
[2025] 2028, this Act, with no further action required by the General Assembly, shall be 18
abrogated and of no further force and effect. 19
Chapter 485 of the Acts of 2020 20
SECTION 2. AND BE IT FURTHER ENACTED, That, in accordance with § 2 –1257 21
of the State Government Article, the Department of Budget and Management shall: 22
(1) on or before December 31, 2021, report to the General Assembly on the 23
implementation of this Act, including the timelines and deadlines recommended by the 24
Maryland Efficient Grant Application Council in accordance with § 2–210(b)(1)(iii) of the 25
State Finance and Procurement Article, as enacted by Section 1 of this Act; and 26
(2) on or before December 31 of the calendar years 2022 through [2026] 27
2028, report to the General Assembly on the progress of the implementation of this Act, 28
including any recommendations of the Maryland Efficient Grant Application Council. 29
SECTION 4. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect July 30
1, 2020. It shall remain effective for a period of [5] 8 years and, at the end of June 30, 31
[2025] 2028, this Act, with no further action required by the General Assembly, shall be 32
abrogated and of no further force and effect. 33
SECTION 2. AND BE IT FURTHER ENACTED, That: 34 8 HOUSE BILL 418
(a) The Maryland Efficient Grant Application Council shall: 1
(1) study the feasibility, cost, and impacts of designating a State Grants 2
Ombudsperson in accordance with § 2–210(b)(1)(ii) of the State Finance and Procurement 3
Article, as enacted by Section 1 of this Act; and 4
(2) on or before July 1, 2025, make recommendations regarding the 5
designation of a State Grants Ombudsperson, including recommended timelines and 6
deadlines, to the Governor’s Grants Office and the Department of Budget and Management. 7
(b) On or before December 31, 2025, the Department of Budget and Management 8
shall, in accordance with § 2–1257 of the State Government Article, report to the General 9
Assembly on the recommendations made by the Maryland Efficient Grant Application 10
Council under subsection (a) of this section. 11
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2024. It shall remain effective for a period of 4 years and, at the end of June 30, 2028, 13
this Act, with no further action required by the General Assembly, shall be abrogated and 14
of no further force and effect. 15