EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0035*
SENATE BILL 35
L3 5lr1605
(PRE–FILED) CF 5lr2090
By: Senator Ellis
Requested: October 31, 2024
Introduced and read first time: January 8, 2025
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Municipal Appointees and Employees – Financial Oversight – Required 2
Education and Experience 3
FOR the purpose of requiring that, beginning on a certain date, an individual appointed or 4
employed by a municipality in a role with certain financial oversight responsibilities 5
have certain training and experience; requiring a municipality to establish certain 6
continuing education requirements for certain individuals appointed or employed by 7
the municipality; requiring a municipality to maintain certain records in a certain 8
manner; requiring the Legislative Auditor to include in a certain annual report 9
information on municipal compliance with this Act; and generally relating to the 10
training and experience of certain municipal appointees and employees. 11
BY adding to 12
Article – Local Government 13
Section 4–112 14
Annotated Code of Maryland 15
(2013 Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Local Government 18
Section 16–307(a) 19
Annotated Code of Maryland 20
(2013 Volume and 2024 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Local Government 24
2 SENATE BILL 35
4–112. 1
(A) BEGINNING JUNE 30, 2030, A MUNICIPALITY SHALL COMPLY WITH THIS 2
SECTION WHEN APPOINT ING, HIRING, OR CONTINUING TO EMP LOY AN INDIVIDUAL 3
AS A COMPTROLLER , A TREASURER, OR ANY OTHER APPOINTEE OR EMPLOYEE OF 4
THE MUNICIPALITY WHO IS RESPONSIBLE F OR: 5
(1) FINANCIAL OVERSIGHT OF THE MUNICIPALITY ; 6
(2) MANAGING THE FUNDS OF THE MUNICIPAL ITY; OR 7
(3) MAINTAINING AND PREPARING ACCOUNTING , BUDGET, AND 8
FINANCIAL REPORTS FOR THE MUNICIPALITY . 9
(B) A MUNICIPAL COMPTROLLE R, TREASURER, OR OTHER APPOINTEE O R 10
EMPLOYEE DESCRIBED UNDER SUBS ECTION (A) OF THIS SECTION SHALL: 11
(1) HAVE SATISFACTORILY COMPLETED 27 SEMESTER HOURS OF 12
UNDERGRADUATE OR GRA DUATE LEVEL ACCOUNTING COURSES THAT INCLUDE AT 13
LEAST: 14
(I) THREE SEMESTER HOURS OR THEIR EQUIVALENT OF: 15
1. ACCOUNTING INFORMATI ON SYSTEMS; 16
2. ACCOUNTING ETHICS OR BUSINESS ETHICS ; AND 17
3. AUDITING; AND 18
(II) NINE SEMESTER HOURS OR THEIR EQUIVALENT OF 19
FINANCIAL ACCOUNTING ; 20
(2) HOLD A BACCALAUREATE OR HIG HER DEGREE IN ACCOUNTING , 21
BUSINESS ADMINISTRAT ION, FINANCE, PUBLIC ADMINISTRATIO N, OR A RELATED 22
FIELD FROM AN ACCRED ITED INSTITUTION OF HIGHER EDUCATION; AND 23
(3) HAVE AT LEAST 5 YEARS OF FULL –TIME EMPLOYMENT 24
EXPERIENCE IN ACCOUNTING OR FINANCE OR A RELATED FIELD THAT INCLUDES AT 25
LEAST 3 YEARS IN A SUPERVISO RY OR LEADERSHIP ROL E IN ACCOUNTING , FINANCE, 26
PUBLIC FINANCE , OR A RELATED FIELD . 27
(C) (1) TO ENSURE THE CONTINU ED INTEGRITY AND CAP ABILITY OF THE 28
FINANCIAL ADMINISTRA TION OF THE STATE’S MUNICIPAL ITIES, AS A CONDITION OF 29 SENATE BILL 35 3
THE CONTINUED EMPLOY MENT OF A MUNICIPAL COMPTROLLER , TREASURER, OR 1
OTHER APPOINTEE OR E MPLOYEE DESCRIBED UN DER SUBSECTION (A) OF THIS 2
SECTION, EACH MUNICIPALITY SHALL E STABLISH CONTINUING EDUCATION 3
REQUIREMENTS . 4
(2) THE CONTINUING EDUCAT ION REQUIREMENTS SHALL ESTABLISH 5
A MINIMUM NUMBER OF HOURS EACH YEAR OF PROFESSIONAL DEVELOP MENT AND 6
TRAINING RELATED TO ETHICS IN FINANCIAL MANAGEMENT , GOVERNMENT 7
ACCOUNTING , OR MUNICIPAL FINANCE . 8
(D) A MUNICIPALITY SHALL : 9
(1) MAINTAIN A RECORD OF THE QUALIFICATIONS O F AN INDIVIDUAL 10
APPOINTED OR EMPLOYE D AS A MUNICIPAL COMPT ROLLER, TREASURER, OR OTHER 11
APPOINTEE OR EMPLOYE E UNDER SUBSECTION (A) OF THIS SECTION; 12
(2) MAKE THE RECORD AVAILABLE FOR PUBLIC INSPECTION; AND 13
(3) INCLUDE THE RECORD I N THE REPORT TO THE LEGISLATIVE 14
AUDITOR REQUIRED UNDE R § 16–306 OF THIS ARTICLE. 15
16–307. 16
(a) (1) Each year the Legislative Auditor shall: 17
(i) review the audit reports required under § 16–306 of this subtitle; 18
and 19
(ii) make a full and detailed written report to the Comptroller and, 20
in accordance with § 2–1257 of the State Government Article, the Executive Director of the 21
Department of Legislative Services on the result of the audit of the financial records of each 22
county, municipality, and special taxing district created by the State. 23
(2) THE REPORT SHALL INCL UDE INFORMATION ON THE 24
COMPLIANCE OF EACH M UNICIPALITY WITH THE REQUIREMENTS OF § 4–112 OF 25
THIS ARTICLE. 26
(3) The report may include recommendations that the Legislative Auditor 27
considers advisable relating to: 28
(i) methods of bookkeeping; 29
(ii) changes in the uniform system of financial reporting; and 30
4 SENATE BILL 35
(iii) changes in the reports of the counties, municipalities, and special 1
taxing districts. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to any 3
individual appointed or hired by a municipality on or after July 1, 2025. 4
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2025. 6