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. *hb0720* HOUSE BILL 720 M1 5lr0355 CF 5lr0356 By: Chair, Environment and Transportation Committee (By Request – Departmental – Natural Resources) Introduced and read first time: January 27, 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 Natural Resources – Repeal of Somers Cove Marina Commission and 2 Improvement Fund and Alteration of Operations 3 FOR the purpose of repealing provisions of law relating to the Somers Cove Marina 4 Commission, the Somers Cove Marina Improvement Fund, and the operation of 5 Somers Cove Marina; authorizing the Secretary of Natural Resources to execute 6 certain leases, procure and execute certain contracts, and employ certain staff, and 7 assess certain fees; requiring the Secretary to set the compensation for certain 8 employees under certain circumstances; establishing the Somers Cove Marina 9 Advisory Commission to advise the Secretary on certain matters relating to the 10 Somers Cove Marina; requiring certain revenue received by the Department of 11 Natural Resources to be deposited into the Natural Resources Property Maintenance 12 Fund; altering the uses of the Natural Resources Property Maintenance Fund; 13 requiring interest earnings of the Natural Resources Property Maintenance Fund to 14 be credited to that Fund; and generally relating to Somers Cove Marina. 15 BY repealing 16 Article – Natural Resources 17 Section 5–908.1 18 Annotated Code of Maryland 19 (2023 Replacement Volume and 2024 Supplement) 20 BY adding to 21 Article – Natural Resources 22 2 HOUSE BILL 720 Section 5–908.1 and 5–908.2 1 Annotated Code of Maryland 2 (2023 Replacement Volume and 2024 Supplement) 3 BY repealing and reenacting, with amendments, 4 Article – Natural Resources 5 Section 5–909 6 Annotated Code of Maryland 7 (2023 Replacement Volume and 2024 Supplement) 8 BY repealing and reenacting, without amendments, 9 Article – State Finance and Procurement 10 Section 6–226(a)(2)(i) 11 Annotated Code of Maryland 12 (2021 Replacement Volume and 2024 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – State Finance and Procurement 15 Section 6–226(a)(2)(ii)204. and 205. 16 Annotated Code of Maryland 17 (2021 Replacement Volume and 2024 Supplement) 18 BY adding to 19 Article – State Finance and Procurement 20 Section 6–226(a)(2)(ii)206. 21 Annotated Code of Maryland 22 (2021 Replacement Volume and 2024 Supplement) 23 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 That the Laws of Maryland read as follows: 25 Article – Natural Resources 26 [5–908.1. 27 (a) (1) In this section the following words have the meanings indicated. 28 (2) “Commission” means the Somers Cove Marina Commission. 29 (3) “Fund” means the Somers Cove Marina Improvement Fund. 30 (4) “Unencumbered” means not pledged for use by the State for Somers 31 Cove Marina before the creation of the Commission. 32 (b) (1) (i) There is a Somers Cove Marina Commission. 33 HOUSE BILL 720 3 (ii) The Commission is a body politic and corporate and an 1 instrumentality of the State. 2 (2) The Commission consists of the following members: 3 (i) Two members from Somerset County, appointed by the Board of 4 County Commissioners of Somerset County, one of whom shall be a member of the Somerset 5 County business community; 6 (ii) Two members from the City of Crisfield, appointed by the Mayor 7 of Crisfield, one of whom shall be a member of the Somerset County business community; 8 and 9 (iii) Three members appointed by the Secretary, one of whom shall 10 be a current slip holder at Somers Cove Marina. 11 (3) (i) The term of a member is 4 years. 12 (ii) A member may not serve more than 2 consecutive terms. 13 (iii) At the end of a term, a member continues to serve until a 14 successor is appointed and qualifies. 15 (iv) A member who is appointed after a term has begun serves only 16 for the rest of the term and until a successor is appointed and qualifies. 17 (4) A member is not entitled to compensation except for reimbursement for 18 expenses as provided in the budget of the Commission. 19 (5) (i) The Commission shall elect a chair and a vice chair of the 20 Commission from among its members. 21 (ii) The Commission shall appoint a secretary–treasurer who need 22 not be a member of the Commission. 23 (iii) A secretary–treasurer who is not a member of the Commission 24 may not vote on matters before the Commission. 25 (6) (i) The Commission shall meet at least every 2 months, as 26 determined by the chair. 27 (ii) At least 10 days before each meeting, written notice shall be 28 given to each member of the Commission. 29 (7) Five members of the Commission are a quorum. 30 4 HOUSE BILL 720 (8) A majority vote of the members present at a meeting having a quorum 1 is needed for the Commission to act. 2 (9) (i) The Secretary may remove a member of the Commission for any 3 reason upon a majority vote of the members of the Commission. 4 (ii) If a member is removed, a new member shall promptly be 5 appointed by the individual or body that appointed the removed member. 6 (c) (1) The Secretary shall: 7 (i) Appoint an Executive Director; 8 (ii) Consult with the Commission in conducting the annual 9 performance evaluation of the Executive Director; and 10 (iii) Review and make determinations on requests for approval of 11 leases and contracts submitted to the Secretary by the Executive Director in accordance 12 with subsection (d) of this section. 13 (2) The Executive Director: 14 (i) Shall administer the Fund; 15 (ii) On or before May 1 of each year, and after consulting with the 16 Commission, shall prepare operating and capital budgets for the subsequent fiscal year and 17 submit the budgets to the Commission for review and approval; 18 (iii) Shall supervise the marina manager; 19 (iv) May execute leases of land, buildings, or facilities at Somers Cove 20 Marina and execute contracts for events or concessions at Somers Cove Marina in 21 accordance with subsection (c) of this section; 22 (v) Subject to the approval of the Secretary, and in cooperation with 23 the Commission, shall develop an annual master plan for the operations, maintenance, 24 development, and improvement of Somers Cove Marina that improves services to the 25 general boating public; 26 (vi) Shall administer, in cooperation with the Commission, all 27 unencumbered grants; 28 (vii) 1. Shall employ a staff to operate and maintain Somers Cove 29 Marina, and set the staff’s compensation; and 30 2. Shall, except for the marina manager, employ staff as 31 employees of the Commission; and 32 HOUSE BILL 720 5 (viii) Shall be an employee of the State and serve at the pleasure of the 1 Secretary. 2 (3) (i) The marina manager shall be an employee of the State. 3 (ii) The marina manager is responsible for the day –to–day 4 operations of the marina. 5 (4) On approval of and subject to the conditions that the Department may 6 require, Commission staff who are not employees of the Department may use vehicles or 7 equipment of the Department. 8 (d) (1) A lease of land, a building, or other facility at the Somers Cove Marina 9 or a contract for an event or concession at the Somers Cove Marina shall conform to the 10 annual master plan approved under subsection (c)(2)(v) of this section. 11 (2) A lease of land, a building, or a facility or a contract for an event or 12 concession that is executed by the Executive Director: 13 (i) May not be for a term of more than 5 years or be renewed for 14 more than an additional 5 years; and 15 (ii) Shall be reviewed and approved by the Commission and Office of 16 the Attorney General. 17 (3) A lease entered into before the creation of the Commission shall remain 18 in effect for the duration of the term of the lease. 19 (4) (i) The Executive Director may not execute a lease or contract for 20 nonboating related improvements or goods at the marina without the approval of the 21 Secretary. 22 (ii) Within 30 days after receiving a request for approval of a lease 23 or contract, the Secretary shall provide the Executive Director with an initial response that 24 may include a process or plan of action for addressing the merits of the request. 25 (e) On approval of and subject to the conditions that the Secretary may require, 26 the Department may transfer any vehicle, equipment, or other inventory to the 27 Commission. 28 (f) (1) Except as provided in paragraph (6) of this subsection, the Executive 29 Director shall procure goods, services, and capital improvement, design, and maintenance 30 projects in accordance with the requirements of this subsection. 31 (2) For goods, services, and capital improvement, design, and maintenance 32 projects with an expected value of $1,000 to $5,000, the Executive Director shall: 33 6 HOUSE BILL 720 (i) Make a written or telephone request for bids; 1 (ii) Evaluate the bids; and 2 (iii) Award the contract to the responsible bidder that submits the 3 responsive bid that is the lowest bid price. 4 (3) For goods, services, and capital improvement, design, and maintenance 5 projects with an expected value of $5,000 to $200,000, the Executive Director shall: 6 (i) Advertise the solicitation in a local newspaper and on the 7 Somerset County website; 8 (ii) Issue invitations for bids to all known prospective vendors; 9 (iii) Tabulate and evaluate the bids; 10 (iv) Select for award the responsible bidder who submits the 11 responsive bid that is the lowest bid price; and 12 (v) Submit the proposed award to the Commission for review and 13 approval. 14 (4) The Executive Director shall procure goods, services, and capital 15 improvement, design, and maintenance projects with an expected value exceeding $200,000 16 in accordance with Division II of the State Finance and Procurement Article. 17 (5) For goods, services, and capital improvement, design, and maintenance 18 projects funded by the proceeds from State bonds, the Executive Director shall submit the 19 proposed award to the Board of Public Works for approval. 20 (6) For an emergency procurement that the Executive Director determines 21 to be necessary to avoid or mitigate serious damage to public health, safety, or welfare, the 22 Executive Director shall: 23 (i) Obtain as much competition as possible under the circumstances; 24 and 25 (ii) After awarding the procurement contract, submit to the 26 Commission and the Secretary a written report that gives the justification for the use of 27 the emergency procurement procedure. 28 (7) The Executive Director shall adopt a procurement policy that includes 29 provisions for minority– and women–owned business participation. 30 HOUSE BILL 720 7 (8) This subsection does not apply to procurement in support of enterprise 1 activities for the purpose of direct resale or remanufacture and subsequent resale. 2 (g) (1) The Commission shall: 3 (i) Adopt an operating budget to use the Fund to implement the 4 master plan; 5 (ii) Adopt a capital budget that may use funds from Somerset 6 County, the City of Crisfield, the State, and other sources to implement the master plan; 7 (iii) 1. Apply for grants from the Waterway Improvement Fund 8 in accordance with Title 8, Subtitle 7 of this article; and 9 2. Subject to the Secretary’s approval, receive approved 10 grant amounts at the time of acceptance of a bid or bids for waterway improvement work; 11 (iv) Assess slip and other fees and charges at Somers Cove Marina as 12 necessary in order to implement the master plan; 13 (v) Set policy and provide general oversight of marina operations; 14 and 15 (vi) Adopt rules and regulations necessary for the conduct of its own 16 affairs. 17 (2) The Commission may: 18 (i) Accept gifts, contributions, or loans of money, supplies, goods, 19 and services, and accept appropriations, allotments, and loans of money from: 20 1. The State or federal government; 21 2. A federal corporation; 22 3. A unit or instrumentality of the federal government; or 23 4. A political subdivision or instrumentality of the State; 24 (ii) Exercise a power usually possessed by a private corporation in 25 performing similar functions unless to do so would conflict with State law; and 26 (iii) Do all things necessary to carry out the mandates and powers 27 expressly provided by this section. 28 8 HOUSE BILL 720 (h) There is a Somers Cove Marina Improvement Fund in the Commission, to be 1 used for the operation, maintenance, development, and improvement of the Somers Cove 2 Marina facilities in Crisfield, Maryland. 3 (i) Any money obtained by the Commission from Somers Cove Marina shall be 4 credited to the Fund. 5 (j) (1) The Commission shall: 6 (i) Maintain the Fund in a bank account separate from State funds; 7 (ii) Transfer any unencumbered money in the Fund run by the 8 Department to the Commission’s Fund; and 9 (iii) Reimburse the State for the salary of the marina manager. 10 (2) Money of the Fund is: 11 (i) Not money of the State within the meaning of Article VI of the 12 Maryland Constitution; and 13 (ii) Subject to audit by the State, including the Department and the 14 Legislative Auditor. 15 (3) Money pledged for use by the State for Somers Cove Marina before the 16 creation of the Commission shall be used for the same purpose as originally pledged. 17 (k) On or before October 1 of each year, the Commission shall provide to the 18 Department an accounting of revenues and expenses from Somers Cove Marina for the 19 previous fiscal year. 20 (l) (1) On November 1, 2011, the Department and the Commission shall begin 21 to evaluate the Commission’s work so that the Department and the Commission may make 22 findings and recommendations concerning the Commission’s ability to: 23 (i) Operate, maintain, develop, and improve Somers Cove Marina in 24 an effective manner; and 25 (ii) Afford or assume the costs of operating, maintaining, developing, 26 and improving Somers Cove Marina, including the salaries of: 27 1. The Executive Director; and 28 2. Employees of the State who remain working at Somers 29 Cove Marina. 30 HOUSE BILL 720 9 (2) On November 1, 2013, based on the evaluation undertaken in 1 accordance with paragraph (1) of this subsection, the Department and the Commission 2 shall report their findings and recommendations, in accordance with § 2–1257 of the State 3 Government Article, to the General Assembly.] 4 5–908.1. 5 (A) THE SECRETARY: 6 (1) MAY: 7 (I) EXECUTE LEASES OF LAN D, BUILDINGS, OR FACILITIES AT 8 SOMERS COVE MARINA; 9 (II) PROCURE AND EXECUTE C ONTRACTS FOR OPERATI ONS, 10 MAINTENANCE , MANAGEMENT , IMPROVEMENTS , EVENTS, OR CONCESSIONS AT 11 SOMERS COVE MARINA IN ACCORDANCE WITH DIVISION II OF THE STATE FINANCE 12 AND PROCUREMENT ARTICLE; 13 (III) EMPLOY A MARINA MANAG ER WHO IS RES PONSIBLE FOR 14 THE DAY–TO–DAY OPERATIONS OF SOMERS COVE MARINA; AND 15 (IV) EMPLOY ADDITIONAL STA FF TO OPERATE AND MA INTAIN 16 SOMERS COVE MARINA; AND 17 (V) ASSESS SLIP AND OTHER FEES AND CHARGES AS 18 NECESSARY TO OPERATE , MAINTAIN, MANAGE, AND IMPROVE SOMERS COVE 19 MARINA; AND 20 (2) SHALL: 21 (I) IF APPLICABLE, SET THE COMPENSATION FOR A MANAGER 22 AND STAFF EMPLOYED U NDER ITEM (1)(III) AND (IV) OF THIS SECTION; 23 (II) ON OR BEFORE OCTOBER 1, 2027, DEVELOP A MASTER 24 PLAN FOR THE OPERATI ONS, MAINTENANCE , DEVELOPMENT , AND IMPROVEMENT 25 OF SOMERS COVE MARINA THAT IMPROVES SERVICES TO THE GENE RAL BOATING 26 PUBLIC; AND 27 (III) ON OR BEFORE OCTOBER 1, 2032, AND OCTOBER 1 EVERY 28 5 YEARS THEREAFTER , UPDATE THE MASTER PL AN DEVELOPED UNDER I TEM (II) OF 29 THIS ITEM. 30 (B) ALL REVENUE RECEIVED BY THE DEPARTMENT FROM MANAG ING, 31 OPERATING, MAINTAINING, IMPROVING, AND DEVELOPING SOMERS COVE MARINA 32 10 HOUSE BILL 720 SHALL BE DEPOSITED I NTO THE NATURAL RESOURCES PROPERTY MAINTENANCE 1 FUND ESTABLISHED UNDE R § 5–909 OF THIS SUBTITLE. 2 5–908.2. 3 (A) IN THIS SECTION, “COMMISSION” MEANS THE SOMERS COVE MARINA 4 ADVISORY COMMISSION. 5 (B) (1) THERE IS A SOMERS COVE MARINA ADVISORY COMMISSION IN 6 THE DEPARTMENT . 7 (2) (I) THE COMMISSION SHALL CONS IST OF THE FOLLOWING 8 MEMBERS: 9 1. ONE REPRESENTATIVE FR OM SOMERSET COUNTY, 10 APPOINTED BY THE BOARD OF COUNTY COMMISSIONERS OF SOMERSET COUNTY; 11 2. ONE REPRESENTATIVE FR OM THE CITY OF 12 CRISFIELD, APPOINTED BY THE MAYOR OF CRISFIELD; 13 3. THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 14 4. ONE REPRESENTATIVE FR OM THE COMMERCIAL 15 FISHING INDUSTRY ; 16 5. ONE REPRESENTATIVE FR OM THE ECONOMIC 17 DEVELOPMENT OR TOURI SM INDUSTRY; 18 6. ONE REPRESENTATIVE OF SAILBOAT OWNERS , WHO 19 MAY BE A CURRENT SLI P HOLDER AT SOMERS COVE MARINA; AND 20 7. ONE REPRESENTATIVE OF POWER BOAT OWNERS , 21 WHO MAY BE A CURRENT SLIP HOLDER AT SOMERS COVE MARINA. 22 (II) THE COMPOSITION OF TH E COMMISSION SHALL 23 CONSTITUTE A DIVERSE CROSS–SECTION OF STAKEHOLD ERS BROADLY 24 REPRESENTATIVE OF MU LTIPLE INTERESTS INC LUDING TOURISM, ECONOMIC 25 DEVELOPMENT , BUSINESS COMMUNITIES , FISHING, AND BOATING. 26 (3) FROM AMONG ITS MEMBER S, THE COMMISSION SHALL ELEC T A 27 CHAIR AND A VICE CHA IR. 28 (4) (I) THE TERM OF A MEMBER IS 4 YEARS. 29 HOUSE BILL 720 11 (II) AT THE END OF A TERM , A MEMBER CONTINUES TO SERVE 1 UNTIL A SUCCESSOR IS APPOINTED AND QUALIF IES. 2 (III) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN 3 SERVES ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINTED 4 AND QUALIFIES. 5 (5) THE COMMISSION SHALL MEET AT LEAST BIANNUALLY . 6 (C) THE COMMISSION SHALL ADVI SE THE SECRETARY ON MATTERS 7 RELATED TO THE MANAG EMENT, OPERATION, MAINTENANCE , AND DEVELOPMENT 8 OF SOMERS COVE MARINA. 9 5–909. 10 (a) In this section, “Fund” means the Natural Resources Property Maintenance 11 Fund. 12 [(b) The Natural Resources Property Maintenance Fund is created within the 13 Department to be used for the maintenance, repair, and management of property owned by 14 the Department. 15 (c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 16 the State Finance and Procurement Article. 17 (2) Any investment earnings of the Fund shall be credited to the General 18 Fund of the State. 19 (3) Money in the Fund may be used for administrative costs calculated in 20 accordance with § 1–103(b)(2) of this article.] 21 (B) THERE IS A NATURAL RESOURCES PROPERTY MAINTENANCE FUND IN 22 THE DEPARTMENT . 23 (C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 24 (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 25 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 26 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 27 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 28 (E) THE FUND CONSISTS OF : 29 (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 30 12 HOUSE BILL 720 (2) REVENUE DEPOSITED INT O THE FUND IN ACCORDANCE WI TH § 1 5–908.1(B) OF THIS SUBTITLE; 2 (3) INTEREST EARNINGS ; AND 3 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 4 THE BENEFIT OF THE FUND. 5 (F) THE FUND MAY BE USED ONLY FOR: 6 (1) MAINTAINING, REPAIRING, AND MANAGING PROPERT Y OWNED BY 7 THE DEPARTMENT ; 8 (2) MANAGING, OPERATING, MAINTAINING, AND DEVELOPING 9 SOMERS COVE MARINA; AND 10 (3) ADMINISTRATIVE EXPENS ES CALCULATED IN ACC ORDANCE WITH 11 § 1–103(B)(2) OF THIS ARTICLE. 12 (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 13 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 14 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 15 THE FUND. 16 (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 17 WITH THE STATE BUDGET . 18 Article – State Finance and Procurement 19 6–226. 20 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 21 through 2028. 22 2. Notwithstanding any other provision of law, and unless 23 inconsistent with a federal law, grant agreement, or other federal requirement or with the 24 terms of a gift or settlement agreement, net interest on all State money allocated by the 25 State Treasurer under this section to special funds or accounts, and otherwise entitled to 26 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 27 Fund of the State. 28 (ii) The provisions of subparagraph (i) of this paragraph do not apply 29 to the following funds: 30 HOUSE BILL 720 13 204. the Victims of Domestic Violence Program Grant Fund; 1 [and] 2 205. the Proposed Programs Collaborative Grant Fund; AND 3 206. THE NATURAL RESOURCES PROPERTY 4 MAINTENANCE FUND. 5 SECTION 2. AND BE IT FURTHER ENACTED, That the Department of Natural 6 Resources shall strive to ensure that current members of the Somers Cove Marina 7 Commission are appointed to the Somers Cove Marina Advisory Commission. 8 SECTION 3. AND BE IT FURTHER ENACTED, That the Department of Natural 9 Resources and the Somers Cove Marina Commission shall work cooperatively to ensure the 10 continuity of operations at the marina as management responsibilities are transferred from 11 the Commission to the Department, including any necessary assignments of contracts and 12 negotiation or renegotiation of agreements related to the facility, property, management, 13 maintenance, service, and staffing. 14 SECTION 4. AND BE IT FURTHER ENACTED, That, on or before October 1, 2025, 15 the Somers Cove Marina Commission shall transfer the remaining balance from the Somers 16 Cove Marina Improvement Fund to the Natural Resources Property Maintenance Fund 17 established under § 5–909 of the Natural Resources Article, including any unencumbered 18 funds, accounts receivable, and cancelled encumbrances. 19 SECTION 2 5. AND BE IT FURTHER ENACTED, That this Act shall take effect 20 October 1, 2025. 21 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.