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. *hb0344* HOUSE BILL 344 M3 5lr2062 CF SB 315 By: Delegates Stein and Lehman Introduced and read first time: January 13, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: February 25, 2025 CHAPTER ______ AN ACT concerning 1 Maryland Environmental Service – Membership of Board of Directors – 2 Alterations 3 FOR the purpose of altering the composition of the Board of Directors of the Maryland 4 Environmental Service by replacing the State Treasurer with the Secretary of 5 Planning or the Secretary’s designee; providing that certain provisions of law 6 relating to terms of members of the Board do not apply to the Secretary of Planning, 7 certain legislative members, and the Executive Director; and generally relating to 8 the membership of the Board of Directors of the Maryland Environmental Service. 9 BY repealing and reenacting, without amendments, 10 Article – Natural Resources 11 Section 3–103(a) 12 Annotated Code of Maryland 13 (2023 Replacement Volume and 2024 Supplement) 14 BY repealing and reenacting, with amendments, 15 Article – Natural Resources 16 Section 3–103(b) 17 Annotated Code of Maryland 18 (2023 Replacement Volume and 2024 Supplement) 19 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 That the Laws of Maryland read as follows: 21 2 HOUSE BILL 344 Article – Natural Resources 1 3–103. 2 (a) (1) There is a body politic and corporate known as the “Maryland 3 Environmental Service”. 4 (2) The Service is an instrumentality of the State and a public corporation 5 by that name, style, and title, and the exercise by the Service of the powers conferred by 6 this subtitle is the performance of an essential governmental function of the State. 7 (b) (1) There are four officers of the Service: 8 (i) An Executive Director; 9 (ii) A Deputy Director; 10 (iii) A Secretary; and 11 (iv) A Treasurer. 12 (2) (i) The four officers of the Service shall be appointed in accordance 13 with this paragraph. 14 (ii) 1. The Executive Director shall be appointed by the 15 Governor, with the advice and consent of the Senate solely with regard to the qualifications 16 for the duties of the office. 17 2. The Executive Director serves at the pleasure of the Board 18 with the concurrence of the Governor and shall receive such compensation as may be 19 determined by the Board. 20 (iii) 1. The Deputy Director shall be appointed by the Executive 21 Director with the approval of the Governor solely with regard to the qualifications for the 22 duties of the office. 23 2. The Deputy Director serves at the pleasure of the 24 Executive Director and shall receive such compensation as may be determined by the 25 Board. 26 (iv) 1. The Secretary and the Treasurer shall be selected by the 27 Board from among the Board’s members. 28 2. The Secretary and the Treasurer serve at the pleasure of 29 the Board and shall receive such compensation as may be reasonably determined by the 30 Board. 31 HOUSE BILL 344 3 (3) The Board of Directors of the Service shall consist of the following 1 members: 2 (i) The Executive Director, who shall serve as a nonvoting member; 3 (ii) THE FOLLOWING TWO MEM BERS, WHO SHALL EACH SERVE 4 AS A NONVOTING MEMBE R: 5 1. ONE MEMBER OF THE SENATE OF MARYLAND, 6 APPOINTED BY THE PRESIDENT OF THE SENATE; AND 7 2. ONE MEMBER OF THE HOUSE OF DELEGATES, 8 APPOINTED BY THE SPEAKER OF THE HOUSE; 9 (III) The [State Treasurer] SECRETARY OF PLANNING, or the 10 [State Treasurer’s] SECRETARY’S designee; 11 (iii) (IV) Three members from the public sector in the State in 12 positions responsible for environmental, water, wastewater, or solid waste management; 13 (iv) (V) One member from the private sector in the State with 14 technical, financial, development, or legal experience related to environmental, water, 15 wastewater, or solid waste management; 16 (v) (VI) One member from the private sector in the State with 17 financial experience related to environmental, water, wastewater, or solid waste 18 management; and 19 (vi) (VII) One member from the private sector in the State with 20 experience or expertise in matters related to business ethics, preferably involving board of 21 director ethics and conflicts of interest. 22 (4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, the 23 public sector and private sector members of the Board, as set forth in paragraph (3)(iii) 24 through (vi) (3)(IV) THROUGH (VII) of this subsection shall be appointed by the Governor 25 with the advice and consent of the Senate. 26 (ii) The Governor shall select at least one of the public sector 27 members of the Board from a list of recommendations jointly compiled by the Maryland 28 Association of Counties and the Maryland Municipal League. 29 (iii) The Governor may not appoint an employee of the Service to the 30 Board. 31 (iv) At least one of the public sector or private sector members shall 32 be a resident of a rural county in the State. 33 4 HOUSE BILL 344 (5) (i) Five members constitute a quorum for the transactio n of 1 business of the Board. 2 (ii) The affirmative vote of at least five members is necessary for any 3 action taken by the Board. 4 (6) Those members of the Board not already holding a public office shall 5 receive from the Service: 6 (i) Per diem compensation as established by the Board; and 7 (ii) Reimbursement for expenses under Standard State Travel 8 Regulations. 9 (7) The term of a member other than the [State Treasurer] SECRETARY 10 OF PLANNING, A MEMBER APPOINTED U NDER PARAGRAPH (3)(II) OF THIS 11 SUBSECTION, AND THE EXECUTIVE DIRECTOR is 4 years. 12 (8) The terms of members other than the [State Treasurer] SECRETARY 13 OF PLANNING, A MEMBER APPOINTED U NDER PARAGRAPH (3)(II) OF THIS 14 SUBSECTION, AND THE EXECUTIVE DIRECTOR are staggered as required by the terms 15 provided for those members of the Board on July 1, 2021. 16 (9) At the end of a term, a member continues to serve until a successor is 17 appointed and qualifies. 18 (10) A member who is appointed after a term has begun serves only the 19 remainder of that term and until a successor is appointed and qualifies. 20 (11) A member of the Board who is appointed under paragraph (3)(iii) 21 through (vi) of this subsection may serve only two consecutive full 4–year terms, plus any 22 partial term served before the initial 4–year term. 23 (12) Subject to paragraphs (13) and (14) of this subsection, the Board shall 24 select a Chair from among the Board’s members. 25 (13) The Executive Director may not serve as the Secretary, Treasurer, or 26 Chair of the Board. 27 (14) The [State Treasurer] SECRETARY OF PLANNING OR A MEMBER 28 APPOINTED UNDER PARA GRAPH (3)(II) OF THIS SUBSECTION may not serve as the 29 Secretary, Treasurer, or Chair of the Board. 30 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31 1, 2025. 32