MD
Maryland House Bill HB9

Maryland 2024 Regular Session

Maryland House Bill HB9 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb0009*
66
77 HOUSE BILL 9
88 P6 4lr0455
99 HB 790/23 – APP (PRE–FILED)
1010 By: Delegate Crosby
1111 Requested: August 4, 2023
1212 Introduced and read first time: January 10, 2024
1313 Assigned to: Appropriations
1414
1515 A BILL ENTITLED
1616
1717 AN ACT concerning 1
1818
1919 State Retirement and Pension System – Forfeiture of Benefits 2
2020
2121 FOR the purpose of establishing that a public employee is subject to forfeiture of benefits 3
2222 from the State Retirement and Pension System when the public employee is found 4
2323 guilty of, pleads guilty to, or enters a plea of nolo contendere to a qualifying crime; 5
2424 providing for the processes and procedures to implement a forfeiture of benefits; 6
2525 providing for the processes and procedures to reverse a forfeiture of benefits; and 7
2626 generally relating to the forfeiture of pension benefits. 8
2727
2828 BY repealing and reenacting, with amendments, 9
2929 Article – State Personnel and Pensions 10
3030 Section 21–502(a)(3) 11
3131 Annotated Code of Maryland 12
3232 (2015 Replacement Volume and 2023 Supplement) 13
3333
3434 BY adding to 14
3535 Article – State Personnel and Pensions 15
3636 Section 21–801 through 21–809 to be under the new subtitle “Subtitle 8. Forfeiture 16
3737 of Benefits” 17
3838 Annotated Code of Maryland 18
3939 (2015 Replacement Volume and 2023 Supplement) 19
4040
4141 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
4242 That the Laws of Maryland read as follows: 21
4343
4444 Article – State Personnel and Pensions 22
4545
4646 21–502. 23
4747
4848 (a) (3) A court of competent jurisdiction may expressly order that a benefit 24 2 HOUSE BILL 9
4949
5050
5151 under this Division II be assigned to a spouse, former spouse, child, or other dependent 1
5252 when [an order of benefit forfeiture is issued] A FORFEITURE OF BENE FITS OCCURS in 2
5353 accordance with § 21–704 OR § 21–804 of this title. 3
5454
5555 SUBTITLE 8. FORFEITURE OF BENEFITS. 4
5656
5757 21–801. 5
5858
5959 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 6
6060 INDICATED. 7
6161
6262 (B) “DOMESTIC RELATIONS OR DER” MEANS AN ORDER ISSUE D IN 8
6363 ACCORDANCE WITH § 21–502(A)(2) OF THIS TITLE, § 414(P) OF THE INTERNAL 9
6464 REVENUE CODE, AND REGULATIONS ADOP TED BY THE BOARD OF TRUSTEES THAT 10
6565 ASSIGNS A BENEFIT TO A SPOUSE, A FORMER SPOUSE , A CHILD, OR ANY OTHER 11
6666 DEPENDENT OF A PUBLI C EMPLOYEE IN CONNEC TION WITH A DECREE O R ORDER OF 12
6767 ALIMONY, CHILD SUPPORT , OR DIVORCE. 13
6868
6969 (C) “FINAL ADJUDICATION ” MEANS ADJUDICATION B Y A TRIAL COURT 14
7070 RESULTING IN FINAL D ISPOSITION OF ALL CH ARGES THAT CONSTITUT E A 15
7171 QUALIFYING CRIME . 16
7272
7373 (D) “PUBLIC EMPLOYEE ” MEANS AN INDIVIDUAL WHO: 17
7474
7575 (1) IS LISTED IN § 21–802 OF THIS SUBTITLE; AND 18
7676
7777 (2) HAS BEEN CHARGED WIT H A QUALIFYING CRIME . 19
7878
7979 (E) “QUALIFYING CRIME” MEANS A CRIMINAL OFF ENSE UNDER § 3–303, § 20
8080 3–304, § 3–309, OR § 3–310 OF THE CRIMINAL LAW ARTICLE THAT IS COMMI TTED IN 21
8181 THE COURSE OF THE PE RFORMANCE OF THE PUB LIC EMPLOYEE ’S DUTIES AND 22
8282 RESPONSIBILITIES . 23
8383
8484 (F) “RETIREMENT ALLOWANCE ”: 24
8585
8686 (1) HAS THE MEANING STATED IN § 20–101 OF THIS ARTICLE; AND 25
8787
8888 (2) INCLUDES A VESTED AL LOWANCE. 26
8989
9090 (G) “VESTED ALLOWANCE ” HAS THE MEANING STAT ED IN § 20–101 OF THIS 27
9191 ARTICLE. 28
9292
9393 21–802. 29 HOUSE BILL 9 3
9494
9595
9696
9797 (A) THIS SUBTITLE APPLIES TO AN INDIVIDUAL WHO IS A MEMBER, FORMER 1
9898 MEMBER, OR RETIREE OF: 2
9999
100100 (1) THE STATE POLICE RETIREMENT SYSTEM; 3
101101
102102 (2) THE LAW ENFORCEMENT OFFICERS’ PENSION SYSTEM; 4
103103
104104 (3) THE EMPLOYEES’ PENSION SYSTEM OR THE EMPLOYEES’ 5
105105 RETIREMENT SYSTEM; 6
106106
107107 (4) THE TEACHERS’ PENSION SYSTEM OR THE TEACHERS’ 7
108108 RETIREMENT SYSTEM; 8
109109
110110 (5) THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM; OR 9
111111
112112 (6) THE JUDGES’ RETIREMENT SYSTEM. 10
113113
114114 (B) THIS SUBTITLE DOES NO T APPLY TO ANY SERVI CE EARNED BEFORE 11
115115 JULY 1, 2024. 12
116116
117117 21–803. 13
118118
119119 (A) BENEFITS UNDER THIS DIVISION II OF THIS ARTICLE PAYA BLE TO A 14
120120 PUBLIC EMPLOYEE ARE SUBJECT TO FORFEITURE IN ACC ORDANCE WITH THIS 15
121121 SUBTITLE IF THE PUBL IC EMPLOYEE IS FOUND GUILTY OF, PLEADS GUILTY TO , OR 16
122122 ENTERS A PLEA OF NOL O CONTENDERE TO A QU ALIFYING CRIME . 17
123123
124124 (B) (1) BENEFITS UNDER THIS DIVISION II MAY NOT BE FORFEITED OR 18
125125 REDUCED IF THE INTERNAL REVENUE SERVICE DETERMINES TH AT THE 19
126126 FORFEITURE OR REDUCT ION WILL NEGATIVELY AFFECT OR INVALIDATE THE TAX 20
127127 QUALIFIED STATUS OF ANY OF THE SEVERAL S YSTEMS. 21
128128
129129 (2) IF THE INTERNAL REVENUE SERVICE DETERMINES TH AT THE 22
130130 APPLICATION OF THIS SUBTITLE WOULD NEGATIV ELY AFFECT OR INVALI DATE THE 23
131131 TAX QUALIFIED STATUS OF ANY OF THE SEVERA L SYSTEMS, ANY FORFEITURE OF 24
132132 BENEFITS THAT TOOK P LACE BEFORE THE INTERNAL REVENUE SERVICE’S 25
133133 DETERMINATION SHALL BE REVERSED IN ACCOR DANCE WITH § 21–807 OF THIS 26
134134 SUBTITLE TO THE EXTENT NEC ESSARY TO COMPLY WIT H THE DETERMINATION . 27
135135
136136 21–804. 28
137137
138138 (A) IF THE FINAL ADJUDICA TION OF CHARGES RESU LTS IN CONVICTION OF 29 4 HOUSE BILL 9
139139
140140
141141 A PUBLIC EMPLOYEE , THE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE SHALL BE 1
142142 FORFEITED IN ACCORDA NCE WITH THIS SECTIO N. 2
143143
144144 (B) (1) EXCEPT AS PROVIDED UN DER SUBSECTIONS (C), (D), AND (E) OF 3
145145 THIS SECTION, BENEFITS MAY NOT BE PAID TO A PUBLIC EMP LOYEE IF THE BOARD 4
146146 OF TRUSTEES FINDS BY CLE AR AND CONVINCING EV IDENCE THAT: 5
147147
148148 (I) THE PUBLIC EMPLOYEE WAS CONVICTED OF A Q UALIFYING 6
149149 CRIME; 7
150150
151151 (II) THE PUBLIC EMPLOYEE WAS A MEMBER OF THE STATE 8
152152 POLICE RETIREMENT SYSTEM, THE LAW ENFORCEMENT OFFICERS’ PENSION 9
153153 SYSTEM, THE EMPLOYEES’ PENSION SYSTEM, THE EMPLOYEES’ RETIREMENT 10
154154 SYSTEM, THE TEACHERS’ PENSION SYSTEM, THE TEACHERS’ RETIREMENT 11
155155 SYSTEM, THE CORRECTIONAL OFFICERS’ RETIREMENT SYSTEM, OR THE JUDGES’ 12
156156 RETIREMENT SYSTEM; AND 13
157157
158158 (III) THE QUALIFYING CRIME FOR WHICH THE PUBLIC 14
159159 EMPLOYEE WAS CONVICT ED WAS COMMITTED WHI LE THE PUBLIC EMPLOY EE WAS 15
160160 AN ACTIVE MEMBER OF THE STATE POLICE RETIREMENT SYSTEM, THE LAW 16
161161 ENFORCEMENT OFFICERS’ PENSION SYSTEM, THE EMPLOYEES’ PENSION SYSTEM, 17
162162 THE EMPLOYEES’ RETIREMENT SYSTEM, THE TEACHERS’ PENSION SYSTEM, THE 18
163163 TEACHERS’ RETIREMENT SYSTEM, THE CORRECTIONAL OFFICERS’ RETIREMENT 19
164164 SYSTEM, OR THE JUDGES’ RETIREMENT SYSTEM. 20
165165
166166 (2) ONLY SERVICE CREDIT I N THE STATE SYSTEM IN WHICH THE 21
167167 PUBLIC EMPLOYEE IS A MEMBER WHEN THE QUAL IFYING CRIME IS COMM ITTED IS 22
168168 ELIGIBLE FOR FORFEIT URE UNDER THIS SECTI ON. 23
169169
170170 (C) (1) A PUBLIC EMPLOYEE CONV ICTED OF A QUALIFYIN G CRIME MAY, 24
171171 WITHIN 1 YEAR AFTER THE CONVIC TION, FILE A CLAIM IN CIRC UIT COURT FOR A 25
172172 PARTIAL PAYMENT OF T HE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE. 26
173173
174174 (2) NOTICE OF THE CLAIM F ILED UNDER PARAGRAPH (1) OF THIS 27
175175 SUBSECTION SHALL BE SERVED ON THE STATE RETIREMENT AGENCY. 28
176176
177177 (3) WHEN CONSIDERING A CLAIM OF A PUBLIC EMPLOYEE UNDER 29
178178 PARAGRAPH (1) OF THIS SUBSECTION , THE COURT SHALL CONS IDER: 30
179179
180180 (I) THE SEVERITY OF THE CRIME; 31
181181
182182 (II) THE AMOUNT OF MONETA RY LOSS SUFFERED BY THE 32
183183 STATE, A COUNTY, A POLITICAL SUBDIVIS ION, OR A PERSON AS A R ESULT OF THE 33
184184 CRIME; 34 HOUSE BILL 9 5
185185
186186
187187
188188 (III) THE DEGREE OF PUBLIC TRUST PLACED IN THE PUBLIC 1
189189 EMPLOYEE; 2
190190
191191 (IV) THE FINANCIAL NEEDS AND RESOURCES OF THE PUBLIC 3
192192 EMPLOYEE; 4
193193
194194 (V) THE FINANCIAL NEEDS AND RESOURCES OF THE PUBLIC 5
195195 EMPLOYEE’S SPOUSE, CHILDREN, OR OTHER DEPENDE NTS; 6
196196
197197 (VI) ANY INTEREST IN BENE FITS OF A FORMER SPO USE 7
198198 ESTABLISHED UNDER AN EXISTING DOMESTIC RE LATIONS ORDER ; AND 8
199199
200200 (VII) ANY OTHER FACTORS TH E COURT DETERMINES R ELEVANT. 9
201201
202202 (D) (1) A SPOUSE, A FORMER SPOUSE , A CHILD, OR ANY OTHER 10
203203 DEPENDENT OF A PUBLIC EMPLOYEE CONV ICTED OF A QUALIFYIN G CRIME MAY , 11
204204 WITHIN 1 YEAR AFTER THE CONVI CTION, FILE A CLAIM IN CIRC UIT COURT FOR A 12
205205 PARTIAL PAYMENT OF T HE PUBLIC EMPLOYEE ’S RETIREMENT ALLOWAN CE FOR 13
206206 PURPOSES OF CHILD SU PPORT, ALIMONY, OR MARITAL PROPERTY RIGHTS. 14
207207
208208 (2) NOTICE OF THE CLAIM F ILED UNDER PARAGRAPH (1) OF THIS 15
209209 SUBSECTION SHALL BE SERVED ON THE STATE RETIREMENT AGENCY. 16
210210
211211 (3) THE COURT MAY ENTER A DOMESTIC RELATIONS O RDER THAT 17
212212 PROVIDES THAT SOME O R ALL OF THE FORFEIT ED BENEFITS BE PAID TO A SPOUSE, 18
213213 A FORMER SPOUSE, A CHILD, OR ANY OTHER DEPENDE NT FOR PURPOSES OF C HILD 19
214214 SUPPORT, ALIMONY, OR MARITAL PROPERTY RIGHTS. 20
215215
216216 (4) WHEN DETERMINING WHET HER TO ENTER A DOMES TIC 21
217217 RELATIONS ORDER UNDE R THIS SUBSECTION , THE COURT SHALL CONS IDER 22
218218 WHETHER THE PUBLIC E MPLOYEE’S SPOUSE, FORMER SPOUSE , CHILDREN, OR 23
219219 OTHER DEPENDENTS WER E CULPABLE OR COMPLI CIT IN THE COMMISSIO N OF THE 24
220220 QUALIFYING CRIME . 25
221221
222222 (5) THE COURT MAY NOT ORD ER BENEFITS TO BE PA ID TO A PUBLIC 26
223223 EMPLOYEE’S SPOUSE, FORMER SPOUSE , CHILD, OR OTHER DEPENDENT I N A 27
224224 MANNER THAT IS INCONSIS TENT WITH THE PAYMEN T OF BENEFITS IN THE STATE 28
225225 SYSTEM IN WHICH THE PUBLIC EMPLOYEE WAS A MEMBER. 29
226226
227227 (E) (1) A FORFEITURE OF BENEFI TS UNDER THIS SECTIO N MAY NOT 30
228228 IMPAIR OR ALTER AN E XISTING DOMESTIC REL ATIONS ORDER PROVIDI NG BENEFITS 31
229229 TO A FORMER SPOUSE OF A P UBLIC EMPLOYEE . 32
230230 6 HOUSE BILL 9
231231
232232
233233 (2) A PUBLIC EMPLOYEE ’S INTEREST IN A BENE FIT OF A FORMER 1
234234 SPOUSE ESTABLISHED B Y A DOMESTIC RELATIO NS ORDER MAY NOT BE SUBJECT TO 2
235235 A FORFEITURE OR REDU CTION UNDER THIS SUB TITLE. 3
236236
237237 (F) BENEFITS AVAILABLE TO A PUBLIC EMPL OYEE AS A BENEFICIAR Y MAY 4
238238 NOT BE SUBJECT TO A FORFEITURE UNDER THI S SUBTITLE. 5
239239
240240 21–805. 6
241241
242242 (A) IF A PUBLIC EMPLOYEE HAS RETIRED BEFORE B EING CONVICTED OF A 7
243243 QUALIFYING CRIME , THE BOARD OF TRUSTEES MAY RECOVER FROM THE PUBLIC 8
244244 EMPLOYEE THE AMOUNT OF BENEFITS PA ID TO THE PUBLIC EMP LOYEE BEFORE THE 9
245245 CONVICTION. 10
246246
247247 (B) THE RECOVERY UNDER SU BSECTION (A) OF THIS SECTION IS L IMITED 11
248248 TO AN AMOUNT EQUAL T O THE BENEFITS THAT WOULD HAVE BEEN FORF EITED HAD 12
249249 THE CONVICTION OCCUR RED BEFORE THE PUBLI C EMPLOYEE BEGAN REC EIVING 13
250250 ANY BENEFITS AS A RETIRE E. 14
251251
252252 21–806. 15
253253
254254 (A) THIS SECTION APPLIES TO A PUBLIC EMPLOYEE WHO IS NOT A RETIREE . 16
255255
256256 (B) SUBJECT TO SUBSECTION (C) OF THIS SECTION , A PUBLIC EMPLOYEE 17
257257 MAY SUBMIT AN APPLIC ATION FOR RETIREMENT . 18
258258
259259 (C) IF A PUBLIC EMPLOYEE IS ELIGIBLE TO APPLY FOR A RETIREME NT 19
260260 ALLOWANCE , A PUBLIC EMPLOYEE ’S APPLICATION FOR RE TIREMENT BENEFITS : 20
261261
262262 (1) SHALL BE CONSIDERED SUBMITTED ON THE FIR ST DAY OF THE 21
263263 MONTH AFTER IT IS PR OPERLY COMPLETED AND SUBMITTED TO THE STATE 22
264264 RETIREMENT AGENCY; AND 23
265265
266266 (2) MAY NOT BE PROCESSED BY THE STATE RETIREMENT AGENCY 24
267267 UNLESS AND UNTIL THE FINAL ADJUDICATION O F THE CHARGE DOES NO T RESULT 25
268268 IN CONVICTION. 26
269269
270270 21–807. 27
271271
272272 (A) (1) ON RECEIPT OF AN ORDE R THAT REVERSES OR O VERTURNS A 28
273273 CONVICTION OF A PUBL IC EMPLOYEE, THE BOARD OF TRUSTEES SHALL RESCIND 29
274274 THE FORFEITURE OF BE NEFITS AND PAY ANY B ENEFITS THAT ARE PAY ABLE UNDER 30
275275 THIS DIVISION II OF THIS ARTICLE TO T HE PUBLIC EMPLOYEE . 31
276276 HOUSE BILL 9 7
277277
278278
279279 (2) WHEN A CONVICTION IS OVERTURNED , ANY DOMESTIC 1
280280 RELATIONS ORDER ENTE RED IN ACCORDANCE WI TH § 21–804(D) OF THIS SUBTITLE 2
281281 IS TERMINATED AND TH E BOARD OF TRUSTEES MAY NOT PAY ANY BENEFITS IN 3
282282 ACCORDANCE WITH THE ORDER. 4
283283
284284 (B) IF A CONVICTION OF A PUBLIC EMPLOYEE WHO WAS A RETIREE BEFORE 5
285285 THE DATE OF CONVICTI ON IS OVERTURNED : 6
286286
287287 (1) THE PUBLIC EMPLOYEE ’S BENEFITS SHALL BE RESTORED BACK 7
288288 TO THE DATE THE BENE FIT PAYMENTS CEASED ; 8
289289
290290 (2) THE ALLOWANCE SHALL : 9
291291
292292 (I) BE PAID BEGINNING TH E MONTH AFTER THE STATE 10
293293 RETIREMENT AGENCY IS NOTIFIED TH AT THE CONVICTION IS OVERTURNED ; AND 11
294294
295295 (II) INCLUDE ANY COST –OF–LIVING ADJUSTMENTS T HAT 12
296296 WOULD HAVE BEEN MADE IN THE TIME BETWEEN THE CONVICTION AND T HE TIME 13
297297 BENEFIT PAYMENTS ARE RESTORED; AND 14
298298
299299 (3) BENEFIT PAYMENTS THA T WOULD HAVE BEEN MA DE DURING THE 15
300300 TIME FROM THE DATE O F CONVICTION TO THE DATE THE CONVICTION IS 16
301301 OVERTURNED SHALL BE MADE TO THE PUBLIC EMPLOY EE, LESS ANY PAYMENTS : 17
302302
303303 (I) MADE IN ACCORDANCE W ITH A DOMESTIC RELAT IONS 18
304304 ORDER DIRECTING PAYM ENT OF BENEFITS TO A SPOUSE, A FORMER SPOUSE , A 19
305305 CHILD, OR ANY OTHER DEPENDE NT; AND 20
306306
307307 (II) RECEIVED BY THE PUBL IC EMPLOYEE IN ACCOR DANCE 21
308308 WITH AN ORDER ISSUED UNDER § 21–804 GRANTING THE PUBLIC EMPLOYEE A 22
309309 PARTIAL PAYMENT OF B ENEFITS. 23
310310
311311 (C) IF A CONVICTION OF A PUBLIC EMPLOYEE WHO WAS NOT A RETIREE 24
312312 BEFORE THE DATE OF C ONVICTION IS OVERTUR NED, THE PUBLIC EMPLOYEE MAY 25
313313 RECEIVE BENEFITS IN ACCORDANCE WITH THIS DIVISION II OF THIS ARTICLE. 26
314314
315315 21–808. 27
316316
317317 (A) EXCEPT AS PROVIDED UN DER SUBSECTION (B) OF THIS SECTION , A 28
318318 PUBLIC EMPLOYEE SUBJ ECT TO A FORFEITURE UNDER THIS SUBTITLE IS ENTITLED 29
319319 TO A RETURN OF THE I NDIVIDUAL’S ACCUMULATED CONTRI BUTIONS ON REQUE ST 30
320320 UNDER § 29–501 OF THIS ARTICLE. 31
321321
322322 (B) THE PUBLIC EMPLOYEE ’S ACCUMULATED CONTRI BUTIONS SHALL BE 32 8 HOUSE BILL 9
323323
324324
325325 REDUCED BY AN AMOUNT EQUAL TO ANY BENEFIT PAYMENTS RECEIVED BY THE 1
326326 PUBLIC EMPLOYEE THAT WOULD HAVE BEEN SUBJ ECT TO FORFEITURE AN D HAVE 2
327327 NOT BEEN RECOVERED B Y THE BOARD OF TRUSTEES UNDER § 21–805 OF THIS 3
328328 SUBTITLE. 4
329329
330330 21–809. 5
331331
332332 THE BOARD OF TRUSTEES SHALL ADOPT REGULATIONS TO IMPLE MENT THIS 6
333333 SUBTITLE. 7
334334
335335 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 8
336336 apply only prospectively and may not be applied or interpreted to have any effect on or 9
337337 application to any crime committed before the effective date of this Act. 10
338338
339339 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
340340 1, 2024. 12
341341