MD
Maryland Senate Bill SB747

Maryland 2024 Regular Session

Maryland Senate Bill SB747 Compare Versions

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1- WES MOORE, Governor Ch. 499
21
3-– 1 –
4-Chapter 499
5-(Senate Bill 747)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0747*
810
9-Local Government – Annual Audit Reporting Requirements – Alterations
11+SENATE BILL 747
12+L6 (4lr1734)
13+ENROLLED BILL
14+— Budget and Taxation/Environment and Transportation —
15+Introduced by Senators Guzzone and Benson
1016
11-FOR the purpose of requiring a certain amount of State aid to be discontinued if a county,
12-municipality, or special taxing district does not submit a certain audit report within
13-a certain period of time after the deadline for the report, subject to a certain
14-condition; and generally relating to local government reporting requirements.
17+Read and Examined by Proofreaders:
1518
16-BY repealing and reenacting, without amendments,
17- Article – Local Government
18-Section 16–304
19- Annotated Code of Maryland
20- (2013 Volume and 2023 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2123
22-BY repealing and reenacting, with amendments,
23- Article – Local Government
24-Section 16–306
25- Annotated Code of Maryland
26- (2013 Volume and 2023 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
2725
28- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
29-That the Laws of Maryland read as follows:
26+_______ day of _______________ at __ ______________________ o’clock, ________M.
3027
31-Article – Local Government
28+______________________________________________
29+President.
3230
33-16–304.
31+CHAPTER ______
3432
35- (a) (1) Except as provided in paragraph (2) of this subsection, on or before
36-October 31 after the close of its fiscal year, each county, municipality, and special taxing
37-district shall file with the Department of Legislative Services a financial report for that
38-fiscal year.
33+AN ACT concerning 1
3934
40- (2) (i) A county, municipality, or special taxing district with a
41-population of over 400,000 may file its financial report on or before December 31 after the
42-close of its fiscal year.
35+Local Government – Annual Audit Reporting Requirements – Alterations 2
4336
44- (ii) Unless subparagraph (i) of this paragraph applies, Howard
45-County may file its financial report on or before November 30 after the close of its fiscal
46-year.
37+FOR the purpose of requiring a certain amount of State aid to be discontinued if a county, 3
38+municipality, or special taxing district does not submit a certain audit report within 4
39+a certain period of time after the deadline for the report, subject to a certain 5
40+condition; and generally relating to local government reporting requirements. 6
4741
48- (iii) Allegany County, Calvert County, Caroline County, Charles
49-County, Frederick County, Garrett County, Queen Anne’s County, St. Mary’s County, Ch. 499 2024 LAWS OF MARYLAND
42+BY repealing and reenacting, without amendments, 7
43+ Article – Local Government 8
44+Section 16–304 9
45+ Annotated Code of Maryland 10
46+ (2013 Volume and 2023 Supplement) 11
5047
51-– 2 –
52-Somerset County, Talbot County, and Wicomico County may file the county’s financial
53-report on or before December 31 after the close of the county’s fiscal year.
48+BY repealing and reenacting, with amendments, 12
49+ Article – Local Government 13 2 SENATE BILL 747
5450
55- (b) The financial report required under subsection (a) of this section shall be:
5651
57- (1) prepared on the form established by the Department of Legislative
58-Services; and
52+Section 16–306 1
53+ Annotated Code of Maryland 2
54+ (2013 Volume and 2023 Supplement) 3
5955
60- (2) verified by the chief executive officer of the county, municipality, or
61-special taxing district.
56+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
57+That the Laws of Maryland read as follows: 5
6258
63- (c) If a county, municipality, or special taxing district does not comply with
64-subsection (a) of this section, the Comptroller, on notice from the Executive Director of the
65-Department of Legislative Services, may order the discontinuance of all money, grants, or
66-State aid that the county, municipality, or special taxing district is entitled to receive under
67-State law, including money from:
59+Article – Local Government 6
6860
69- (1) the income tax;
61+16–304. 7
7062
71- (2) the tax on racing;
63+ (a) (1) Except as provided in paragraph (2) of this subsection, on or before 8
64+October 31 after the close of its fiscal year, each county, municipality, and special taxing 9
65+district shall file with the Department of Legislative Services a financial report for that 10
66+fiscal year. 11
7267
73- (3) the recordation tax;
68+ (2) (i) A county, municipality, or special taxing district with a 12
69+population of over 400,000 may file its financial report on or before December 31 after the 13
70+close of its fiscal year. 14
7471
75- (4) the admissions and amusement tax; and
72+ (ii) Unless subparagraph (i) of this paragraph applies, Howard 15
73+County may file its financial report on or before November 30 after the close of its fiscal 16
74+year. 17
7675
77- (5) the license tax.
76+ (iii) Allegany County, Calvert County, Caroline County, Charles 18
77+County, Frederick County, Garrett County, Queen Anne’s County, St. Mary’s County, 19
78+Somerset County, Talbot County, and Wicomico County may file the county’s financial 20
79+report on or before December 31 after the close of the county’s fiscal year. 21
7880
79-16–306.
81+ (b) The financial report required under subsection (a) of this section shall be: 22
8082
81- (a) The county, municipality, or special taxing district shall report the results of
82-the audit required under § 16–305 of this subtitle to the Legislative Auditor:
83+ (1) prepared on the form established by the Department of Legislative 23
84+Services; and 24
8385
84- (1) on the form and in the manner that the Legislative Auditor requires;
85-and
86+ (2) verified by the chief executive officer of the county, municipality, or 25
87+special taxing district. 26
8688
87- (2) on or before the date the financial report of the county, municipality, or
88-special taxing district must be filed under § 16–304(a) of this subtitle.
89+ (c) If a county, municipality, or special taxing district does not comply with 27
90+subsection (a) of this section, the Comptroller, on notice from the Executive Director of the 28
91+Department of Legislative Services, may order the discontinuance of all money, grants, or 29
92+State aid that the county, municipality, or special taxing district is entitled to receive under 30
93+State law, including money from: 31
8994
90- (b) An audit report filed by a county, municipality, or special taxing district with
91-the Legislative Auditor shall include financial statements of the county, municipality, or
92-special taxing district that are:
95+ (1) the income tax; 32
9396
94- (1) prepared in accordance with generally accepted accounting principles;
95-and
97+ (2) the tax on racing; 33
98+ SENATE BILL 747 3
9699
97- (2) audited in accordance with generally accepted auditing standards. WES MOORE, Governor Ch. 499
98100
99-– 3 –
101+ (3) the recordation tax; 1
100102
101- (c) An audit report filed with the Legislative Auditor is a public record.
103+ (4) the admissions and amusement tax; and 2
102104
103- (d) [If] EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , IF a
104-county, municipality, or special taxing district does not comply with subsection (a) or (b) of
105-this section, the Comptroller, on notice from the Executive Director of the Department of
106-Legislative Services, may order the discontinuance of all money, grants, or State aid that
107-the county, municipality, or special taxing district is entitled to receive under State law
108-that are distributed by the Comptroller, the clerks of the court, or any other unit of State
109-government.
105+ (5) the license tax. 3
110106
111- (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF A COUNTY,
112-MUNICIPALITY, OR SPECIAL TAXING DI STRICT DOES NOT COMP LY WITH SUBSECTION
113-(A) OR (B) OF THIS SECTION WITH IN 1 2 CALENDAR YEAR YEARS AFTER THE
114-DEADLINE DESCRIBED I N SUBSECTION (A)(2) OF THIS SECTION , THE EXECUTIVE
115-DIRECTOR OF THE DEPARTMENT OF LEGISLATIVE SERVICES SHALL NOTIFY THE
116-COMPTROLLER AND THE COMPTROLLER SHALL ORD ER THE DISCONTINUANC E OF
117-20% OF ALL STATE AID FOR POLICE AID, THE CURRENT FISCAL Y EAR FOR HIGHWAY
118-USER REVENUES , AND DISPARITY GRANTS THAT THE COUNTY , MUNICIPALITY, OR
119-SPECIAL TAXING DISTR ICT IS OTHERWISE ENTITLED TO RECEIVE UNDER STATE LAW
120-THAT IS DISTRIBUTED BY THE COMPTROLLER , THE CLERKS OF THE CO URT, OR ANY
121-OTHER UNIT OF STATE GOVERNMENT .
107+16–306. 4
122108
123- (2) (I) A DISCONTINUANCE OF FU NDS UNDER PARAGRAPH (1) OF
124-THIS SUBSECTION SHALL REMAIN I N EFFECT FOR A COUNT Y, MUNICIPALITY, OR
125-SPECIAL TAXING DISTR ICT UNTIL THE COUNTY , MUNICIPALITY, OR SPECIAL TAXING
126-DISTRICT SUBMITS THE AUDIT REPORT REQUIRE D UNDER THIS SECTION .
109+ (a) The county, municipality, or special taxing district shall report the results of 5
110+the audit required under § 16–305 of this subtitle to the Legislative Auditor: 6
127111
128- (II) 1. SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS
129-SUBPARAGR APH, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF
130-LEGISLATIVE SERVICES SHALL NOTIFY THE COMPTROLLER AND THE
131-COMPTROLLER SHALL ORD ER THE CONTINUANCE REINSTATEMENT OF THE FUNDS
132-DISCONTINUED UNDER P ARAGRAPH (1) OF THIS SUBSECTION P ROMPTLY AFTER THE
133-COUNTY, MUNICIPALITY, OR SPECIAL TAXING DI STRICT SUBMITS THE A UDIT
134-REPORT REQUIRED UNDE R THIS SECTION.
112+ (1) on the form and in the manner that the Legislative Auditor requires; 7
113+and 8
135114
136- 2. A. IF A CONTINUANCE REINSTATEMENT OF FUNDS
137-IS ORDERED UNDER SUB SUBPARAGRAPH 1 OF THIS SUBPARAGRAPH , ONLY THE
138-DISCONTINUED FUNDS F OR THE CURRENT FISCA L YEAR SHALL BE RELEASED .
115+ (2) on or before the date the financial report of the county, municipality, or 9
116+special taxing district must be filed under § 16–304(a) of this subtitle. 10
139117
140- B. FOR ANY FISCAL YEAR I N WHICH IF A COUNTY,
141-MUNICIPALITY, OR SPECIAL TAXING DI STRICT FAILED TO SUB MIT THE AUDIT
142-REPORT REQUIRED UNDE R THIS SECTION IN THE SAME FISCAL Y EAR IN WHICH IT
143-WAS DUE, THE DISCONTINUED FUN DS FOR THAT FISCAL YEAR SHALL REVERT TO Ch. 499 2024 LAWS OF MARYLAND
118+ (b) An audit report filed by a county, municipality, or special taxing district with 11
119+the Legislative Auditor shall include financial statements of the county, municipality, or 12
120+special taxing district that are: 13
144121
145-– 4 –
146-THE GENERAL FUND OF THE STATE FOR DISCONTINUED DIS PARITY GRANTS AND TO
147-THE TRANSPORTATION TRUST FUND FOR DISCONTINUED HIGHWAY USER
148-REVENUES.
122+ (1) prepared in accordance with generally accepted accounting principles; 14
123+and 15
149124
150- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply beginning
151-with the fiscal year 2024 audits that are required to be submitted under § 16–306 of the
152-Local Government Article.
125+ (2) audited in accordance with generally accepted auditing standards. 16
153126
154- SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
155-July 1, 2024.
127+ (c) An audit report filed with the Legislative Auditor is a public record. 17
156128
157-Approved by the Governor, May 9, 2024.
129+ (d) [If] EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , IF a 18
130+county, municipality, or special taxing district does not comply with subsection (a) or (b) of 19
131+this section, the Comptroller, on notice from the Executive Director of the Department of 20
132+Legislative Services, may order the discontinuance of all money, grants, or State aid that 21
133+the county, municipality, or special taxing district is entitled to receive under State law 22
134+that are distributed by the Comptroller, the clerks of the court, or any other unit of State 23
135+government. 24
136+
137+ (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF A COUNTY, 25
138+MUNICIPALITY, OR SPECIAL TAXING DI STRICT DOES NOT COMP LY WITH SUBSECTION 26
139+(A) OR (B) OF THIS SECTION WITH IN 1 2 CALENDAR YEAR YEARS AFTER THE 27
140+DEADLINE DESCRIBED I N SUBSECTION (A)(2) OF THIS SECTION , THE EXECUTIVE 28
141+DIRECTOR OF THE DEPARTMENT OF LEGISLATIVE SERVICES SHALL NOTIFY THE 29
142+COMPTROLLER AND THE COMPTROLLER SHALL ORD ER THE DISCONTINUANC E OF 30
143+20% OF ALL STATE AID FOR POLICE AID, THE CURRENT FISCAL Y EAR FOR HIGHWAY 31
144+USER REVENUES , AND DISPARITY GRANTS THAT THE COUNTY , MUNICIPALITY, OR 32
145+SPECIAL TAXING DISTR ICT IS OTHERWISE ENTITLED TO RECEIVE UNDER STATE LAW 33 4 SENATE BILL 747
146+
147+
148+THAT IS DISTRIBUTED BY THE COMPTROLLER , THE CLERKS OF THE CO URT, OR ANY 1
149+OTHER UNIT OF STATE GOVERNMENT . 2
150+
151+ (2) (I) A DISCONTINUANCE OF FU NDS UNDER PARAGRAPH (1) OF 3
152+THIS SUBSECTION SHALL REMAIN I N EFFECT FOR A COUNT Y, MUNICIPALITY, OR 4
153+SPECIAL TAXING DISTR ICT UNTIL THE COUNTY , MUNICIPALITY, OR SPECIAL TAXING 5
154+DISTRICT SUBMITS THE AUDIT REPORT REQUIRE D UNDER THIS SECTION . 6
155+
156+ (II) 1. SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 7
157+SUBPARAGRAPH , THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF 8
158+LEGISLATIVE SERVICES SHALL NOTIFY THE COMPTROLLER AND THE 9
159+COMPTROLLER SHALL ORD ER THE CONTINUANCE REINSTATEMENT OF THE FUNDS 10
160+DISCONTINUED UNDER P ARAGRAPH (1) OF THIS SUBSECTION P ROMPTLY AFTER THE 11
161+COUNTY, MUNICIPALITY, OR SPECIAL TAXING DI STRICT SUBMITS THE A UDIT 12
162+REPORT REQUIRED UNDE R THIS SECTION. 13
163+
164+ 2. A. IF A CONTINUANCE REINSTATEMENT OF FUNDS 14
165+IS ORDERED UNDER SUBSUBPARAGRAPH 1 OF THIS SUBPARAGRAPH , ONLY THE 15
166+DISCONTINUED FUNDS F OR THE CURRENT FISCA L YEAR SHALL BE RELE ASED. 16
167+
168+ B. FOR ANY FISCAL YEAR I N WHICH IF A COUNTY, 17
169+MUNICIPALITY, OR SPECIAL TAXING DI STRICT FAILED TO SUB MIT THE AUDIT 18
170+REPORT REQUIRED UNDE R THIS SECTION IN THE SAME FISCAL Y EAR IN WHICH IT 19
171+WAS DUE, THE DISCONTINUED FUN DS FOR THAT FISCAL Y EAR SHALL REVERT TO 20
172+THE GENERAL FUND OF THE STATE FOR DISCONTINUED DIS PARITY GRANTS AND TO 21
173+THE TRANSPORTATION TRUST FUND FOR DISCONTINUED HIGHWAY USER 22
174+REVENUES. 23
175+
176+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply beginning 24
177+with the fiscal year 2024 audits that are required to be submitted under § 16–306 of the 25
178+Local Government Article. 26
179+
180+ SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
181+July 1, 2024. 28