EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0418*
HOUSE BILL 418
P1 4lr2365
CF SB 459
By: Delegate Stein Delegates Stein, Alston, Bagnall, Bhandari, Chisholm,
Cullison, Guzzone, Hill, Hutchinson, S. Johnson, Kaiser, Kerr, Kipke,
R. Lewis, Lopez, Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg,
Szeliga, Taveras, White Holland, and Woods
Introduced and read first time: January 18, 2024
Assigned to: Health and Government Operations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 20, 2024
CHAPTER ______
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 2 HOUSE BILL 418
Section 2 and 4 1
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3
Article – State Finance and Procurement 4
2–209. 5
(a) In this section, “Council” means the Maryland Efficient Grant Application 6
Council. 7
(b) There is a Maryland Efficient Grant Application Council. 8
(c) (1) The Council consists of the following members: 9
(i) the Director of the Governor’s Grants Office, or the Director’s 10
designee; 11
(ii) the Chief Procurement Officer, or the Chief Procurement 12
Officer’s designee; 13
(iii) (II) the State Treasurer, or the State Treasurer’s designee; 14
(IV) (III) THE COMPTROLLER , OR THE COMPTROLLER ’S 15
DESIGNEE; 16
[(iv)] (V) the Attorney General, or the Attorney General’s designee; 17
[(v)] (VI) the Secretary of Budget and Management, or the 18
Secretary’s designee; 19
[(vi)] (VII) the Secretary of Health, or the Secretary’s designee; 20
[(vii)] (VIII) the Secretary of Human Services, or the Secretary’s 21
designee; 22
[(viii)] (IX) the Secretary of Housing and Community Development, or 23
the Secretary’s designee; 24
[(ix)] (X) the Secretary of Agriculture, or the Secretary’s designee; 25
[(x)] (XI) the Secretary of the Environment, or the Secretary’s 26
designee; 27
HOUSE BILL 418 3
[(xi)] (XII) the State Superintendent of Schools, or the State 1
Superintendent’s designee; 2
[(xii)] (XIII) the Director of the Maryland Energy Administration, or 3
the Director’s designee; 4
[(xiii)] (XIV) the Executive Director of the Governor’s Office of Crime 5
Prevention, Youth, and Victim Services, or the Executive Director’s designee; 6
[(xiv)] (XV) the chair of the Maryland Higher Education Commission, 7
or the chair’s designee; 8
[(xv)] (XVI) the Secretary of Natural Resources, or the Secretary’s 9
designee; 10
(XVII) THE LEGISLATIVE AUDITOR, OR THE LEGISLATIVE 11
AUDITOR’S DESIGNEE; 12
[(xvi)] (XVIII) a representative from the Maryland Association of 13
Counties; 14
[(xvii)] (XIX) a representative from the Maryland Municipal 15
League; 16
[(xviii)] (XX) five representatives of private nonprofit 17
organizations with experience providing services funded by State or federal grants and that 18
reflect the size and diversity of the nonprofit grant recipients in the State, appointed by the 19
Governor; 20
[(xix)] (XXI) one representative of a private nonprofit organization, 21
appointed by the President of the Senate; and 22
[(xx)] (XXII) one representative of a private nonprofit organization, 23
appointed by the Speaker of the House. 24
(2) (i) This paragraph applies to members of the Council appointed 25
under paragraph [(1)(xviii)] (1)(XX) of this subsection. 26
(ii) The term of a member is 4 years. 27
(iii) The terms of members are staggered as required by the terms 28
provided for members of the Council on July 1, 2020. 29
(iv) At the end of a term, a member continues to serve until a 30
successor is appointed and qualifies. 31
4 HOUSE BILL 418
(v) A member who is appointed after a term has begun serves only 1
for the rest of the term and until a successor is appointed and qualifies. 2
(vi) The Governor may remove a member for neglect of duty, 3
incompetence or misconduct. 4
(d) The Director of the Governor’s Grants Office or the Director’s designee 5
SECRETARY OF BUDGET AND MANAGEMENT , OR THE SECRETARY’S DESIGNEE shall 6
serve as Chair of the Council. 7
(e) The staffing responsibilities of the Council shall be shared by the agencies 8
represented on the Council. 9
(f) A member of the Council: 10
(1) may not receive compensation as a member of the Council; but 11
(2) is entitled to reimbursement for expenses under the Standard State 12
Travel Regulations, as provided in the State Budget. 13
(g) The Council shall: 14
(1) advise the Governor’s Grants Office and the Department of Budget and 15
Management on the implementation of § 2–210 of this subtitle; and 16
(2) monitor and report to the Governor’s Grants Office and the Department 17
of Budget and Management on the State’s progress towards implementing § 2–210 of this 18
subtitle. 19
2–210. 20
(a) (1) In this section the following words have the meanings indicated. 21
(2) “Council” means the Maryland Efficient Grant Application Council 22
established under § 2–209 of this subtitle. 23
(3) “Department” means the Department of Budget and Management. 24
(4) (i) “Grant” means a legal instrument of financial assistance 25
between a State grant–making entity and a non–State entity that is: 26
1. used to enter into a relationship the principal purpose of 27
which is to transfer anything of value from the grant–making entity to the grant recipient 28
to carry out a public purpose authorized by law and not to acquire property or services for 29
the direct benefit or use of the grant–making entity; and 30
HOUSE BILL 418 5
2. distinguished from a cooperative agreement in that it does 1
not provide for substantial involvement between the grant–making entity and the grant 2
recipient in carrying out the activity contemplated by the award. 3
(ii) “Grant” does not include an instrument that provides only: 4
1. direct government cash assistance to an individual; 5
2. a subsidy; 6
3. a loan; 7
4. a loan guarantee; 8
5. insurance; 9
6. grants made by the State higher education system, the 10
capital budget, the Department of Transportation, or the Maryland Technology 11
Development Corporation; 12
7. business development grants made by the Department of 13
Commerce; or 14
8. any State funding that is required annually and is 15
calculated through a formula set in statute. 16
(5) “Grant application form” means a grant application template and 17
related materials required to be submitted by grant applicants, including: 18
(i) required organizational materials; and 19
(ii) proposed budget categories and line items. 20
(6) “Uniform Guidance” means the Office of Management and Budget 21
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 22
Federal Awards, 2 C.F.R. Part 200. 23
(b) (1) In order to improve efficiency, streamline and reduce redundant 24
processes, reduce paperwork and administrative burdens on both granting agencies and 25
grant recipients, and facilitate development and implementation of a statewide centralized 26
grants management and accountability system, the Council shall study and make 27
recommendations to the Governor’s Grants Office and the Department regarding the entire 28
grants life cycle, including: 29
(i) the creation of the following materials for use by grant–making 30
agencies, grant applicants, and grant recipients in the State: 31
6 HOUSE BILL 418
1. a uniform grant application form; 1
2. uniform financial controls and reporting requirements for 2
grant recipients; and 3
3. uniform performance progress reporting requirements for 4
grant recipients; 5
(II) THE CREATION OF A STATE GRANTS OMBUDSPERSON TO 6
PROVIDE TECHNICAL AS SISTANCE WIT H: 7
1. ACCESSING AND NAVIGA TING STATE GRANT 8
PROGRAMS; 9
2. RESOLVING DELAYS IN THE GRANT –MAKING 10
PROCESS; AND 11
3. COLLECTING AND DISSE MINATING INFORMATION ON 12
OPPORTUNITIES FOR GR ANTS FROM FEDERAL , STATE, AND LOCAL GOVERNMENT ; 13
[(ii)] (III) regulations adopting each part of the uniform guidance, 14
with appropriate modifications for its application to grant–making entities in the State, 15
including modifications or variances based on the scope or size of particular grant 16
programs, grant–making entities, or grantees; 17
[(iii)] (IV) recommended timeframes and deadlines for the various 18
tasks included in items (i) [and (ii)] THROUGH (III) of this paragraph; 19
[(iv)] (V) recommended deadlines for use and implementation by 20
the various grant–making entities of the materials prepared in accordance with item (i) of 21
this paragraph; and 22
[(v)] (VI) recommended deadlines for grant–making entities to 23
administer State and federal grants in accordance with the provisions of parts of uniform 24
guidance as adopted by the Department by regulation. 25
(2) In developing materials and recommendations under this subsection, 26
the Council shall: 27
(i) solicit the input of diverse stakeholders, including grant–making 28
agencies and organizations representing local governments, grant professionals, experts in 29
nonprofit accounting and auditing, and nonprofit service providers; and 30
(ii) establish one or more issue working groups, composed of 31
stakeholders representing diverse backgrounds appropriate to the charge of each 32
workgroup, and also reflecting the demographic diversity of the State and the diversity of 33 HOUSE BILL 418 7
grant programs and grant recipients, including arts, history, and social service, to 1
participate in and facilitate the process of developing recommendations. 2
(c) On or before July 1, [2024] 2027, the Council shall submit a report on its full 3
recommendations as required by subsection (b)(1) of this section to the Department and the 4
General Assembly, in accordance with § 2–1257 of the State Government Article. 5
(d) On or before October 1, 2020, each State grant–making agency shall appoint 6
a Chief Accountability Officer who shall: 7
(1) serve as a liaison to the Council and the Governor’s Grants Office 8
DEPARTMENT ; and 9
(2) be responsible for the agency’s representation and participation in the 10
process established under this section. 11
(e) The Governor’s Grants Office DEPARTMENT shall provide technical 12
assistance and interpretations of policy requirements in order to ensure the effective and 13
efficient implementation of this section. 14
Chapter 484 of the Acts of 2020 15
SECTION 2. AND BE IT FURTHER ENACTED, That, in accordance with § 2 –1257 16
of the State Government Article, the Department of Budget and Management shall: 17
(1) on or before December 31, 2021, report to the General Assembly on the 18
implementation of this Act, including the timelines and deadlines recommended by the 19
Maryland Efficient Grant Application Council in accordance with § 2–210(b)(1)(iii) of the 20
State Finance and Procurement Article, as enacted by Section 1 of this Act; and 21
(2) on or before December 31 of the calendar years 2022 through [2026] 22
2028, report to the General Assembly on the progress of the implementation of this Act, 23
including any recommendations of the Maryland Efficient Grant Application Council. 24
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2020. It shall remain effective for a period of [5] 8 9 years and, at the end of June 30, 26
[2025] 2028 2029, this Act, with no further action required by the General Assembly, shall 27
be abrogated and of no further force and effect. 28
Chapter 485 of the Acts of 2020 29
SECTION 2. AND BE IT FURTHER ENACTED, That, in accordance with § 2 –1257 30
of the State Government Article, the Department of Budget and Management shall: 31
(1) on or before December 31, 2021, report to the General Assembly on the 32
implementation of this Act, including the timelines and deadlines recommended by the 33 8 HOUSE BILL 418
Maryland Efficient Grant Application Council in accordance with § 2–210(b)(1)(iii) of the 1
State Finance and Procurement Article, as enacted by Section 1 of this Act; and 2
(2) on or before December 31 of the calendar years 2022 through [2026] 3
2028, report to the General Assembly on the progress of the implementation of this Act, 4
including any recommendations of the Maryland Efficient Grant Application Council. 5
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2020. It shall remain effective for a period of [5] 8 9 years and, at the end of June 30, 7
[2025] 2028 2029, this Act, with no further action required by the General Assembly, shall 8
be abrogated and of no further force and effect. 9
SECTION 2. AND BE IT FURTHER ENACTED, That: 10
(a) The Maryland Efficient Grant Application Council shall: 11
(1) study the feasibility, cost, and impacts of designating a State Grants 12
Ombudsperson in accordance with § 2–210(b)(1)(ii) of the State Finance and Procurement 13
Article, as enacted by Section 1 of this Act; and 14
(2) on or before July 1, 2025, make recommendations regarding the 15
designation of a State Grants Ombudsperson, including recommended timelines and 16
deadlines, to the Governor’s Grants Office and the Department of Budget and Management. 17
(b) On or before December 31, 2025, the Department of Budget and Management 18
shall, in accordance with § 2–1257 of the State Government Article, report to the General 19
Assembly on the recommendations made by the Maryland Efficient Grant Application 20
Council under subsection (a) of this section. 21
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2024. It shall remain effective for a period of 4 5 years and, at the end of June 30, 2028 23
2029, this Act, with no further action required by the General Assembly, shall be abrogated 24
and of no further force and effect. 25
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.