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.
Italics indicate opposite chamber/conference committee amendments.
*sb0365*
SENATE BILL 365
P1 EMERGENCY BILL (5lr0951)
ENROLLED BILL
— Finance/Health and Government Operations —
Introduced by Senators Kagan, Sydnor, and M. Washington
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Department of Commerce – Nonprofit Organizations Navigator – Established 2
FOR the purpose of establishing a nonprofit organizations navigator within the 3
Department of Commerce; specifying the duties of the navigator; altering the 4
composition and duties of the Maryland Efficient Grant Application Council; and 5
generally relating to the nonprofit organizations navigator and the Maryland 6
Efficient Grant Application Council. 7
BY adding to 8
Article – Economic Development 9
Section 2.5–110 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13 2 SENATE BILL 365
Article – State Finance and Procurement 1
Section 2–209 and 2–210 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2024 Supplement) 4
BY repealing 5
Chapter 28 of the Acts of the General Assembly of 2024 6
Section 2 7
BY repealing 8
Chapter 29 of the Acts of the General Assembly of 2024 9
Section 2 10
BY repealing and reenacting, with amendments, 11
Article – Economic Development 12
Section 2.5–110 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2024 Supplement) 15
(As enacted by Section 1 of this Act) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Economic Development 19
2.5–110. 20
(A) THERE IS A NONPROFIT ORGANIZATIONS NAVIGA TOR IN THE 21
DEPARTMENT . 22
(B) THE SECRETARY SHALL DESIGNATE THE NAVIGA TOR. 23
(C) THE NAVIGATOR SHALL : 24
(1) PROVIDE TECHNICAL AS SISTANCE TO NONPROFI T 25
ORGANIZATIONS IN OBT AINING ACCESS TO AND APPLYING FOR STATE GRANT 26
PROGRAMS; 27
(2) WORK WITH NONPROFIT ORGANIZATIONS AND UN ITS OF STATE 28
GOVERNMENT TO RESOLVE PROCEDURAL C OMPLEXITIES AND DELA YS IN STATE 29
GRANT–MAKING PROCESSES ; 30
(3) COLLECT AND SHARE IN FORMATION ON OPPORTU NITIES FOR 31
FEDERAL, STATE, AND LOCAL GRANTS WIT H NONPROFIT ORGANIZA TIONS; AND 32
SENATE BILL 365 3
(4) REPRESENT NONPROFIT ORGANIZATIONS ’ INTERESTS AND 1
CONCERNS AS A MEMBER OF THE MARYLAND EFFICIENT GRANT APPLICATION 2
COUNCIL ESTABLISHED U NDER § 2–209 OF THE STATE FINANCE AND 3
PROCUREMENT ARTICLE. 4
(D) THE NAVIGATOR MAY NOT PROVIDE SERVICES TO A NONPROFIT 5
ORGANIZATION IN THE STATE THAT PROVIDES A TOTAL ANNUAL COMPENSATION 6
EXCEEDING $250,000 TO ANY SINGLE SALARI ED EMPLOYEE . 7
Article – State Finance and Procurement 8
2–209. 9
(a) In this section, “Council” means the Maryland Efficient Grant Application 10
Council. 11
(b) There is a Maryland Efficient Grant Application Council. 12
(c) (1) The Council consists of the following members: 13
(i) the Chief Procurement Officer, or the Chief Procurement 14
Officer’s designee; 15
(ii) the State Treasurer, or the State Treasurer’s designee; 16
(iii) the Comptroller, or the Comptroller’s designee; 17
(iv) the Attorney General, or the Attorney General’s designee; 18
(v) the Secretary of Budget and Management, or the Secretary’s 19
designee; 20
(vi) the Secretary of Health, or the Secretary’s designee; 21
(vii) the Secretary of Human Services, or the Secretary’s designee; 22
(viii) the Secretary of Housing and Community Development, or the 23
Secretary’s designee; 24
(ix) the Secretary of Agriculture, or the Secretary’s designee; 25
(x) the Secretary of the Environment, or the Secretary’s designee; 26
(xi) the State Superintendent of Schools, or the State 27
Superintendent’s designee; 28
4 SENATE BILL 365
(xii) the Director of the Maryland Energy Administration, or the 1
Director’s designee; 2
(xiii) the Executive Director of the Governor’s Office of Crime 3
Prevention and Policy, or the Executive Director’s designee; 4
(xiv) the chair of the Maryland Higher Education Commission, or the 5
chair’s designee; 6
(xv) the Secretary of Natural Resources, or the Secretary’s designee; 7
(xvi) THE NONPROFIT ORGANIZATION S NAVIGATOR , OR THE 8
NAVIGATOR’S DESIGNEE, WHO SHALL SERVE AS A NONVOTING MEMBER ; 9
(XVII) a representative from the Maryland Association of 10
Counties; 11
[(xvii)] (XVIII) a representative from the Maryland Municipal 12
League; 13
[(xviii)] (XIX) five representatives of private nonprofit 14
organizations with experience providing services funded by State or federal grants and that 15
reflect the size and diversity of the nonprofit grant recipients in the State, appointed by the 16
Governor; 17
[(xix)] (XX) one representative of a private nonprofit organization, 18
appointed by the President of the Senate; and 19
[(xx)] (XXI) one representative of a private nonprofit organization, 20
appointed by the Speaker of the House. 21
(2) (i) This paragraph applies to members of the Council appointed 22
under paragraph [(1)(xviii)] (1)(XIX) of this subsection. 23
(ii) The term of a member is 4 years. 24
(iii) The terms of members are staggered as required by the terms 25
provided for members of the Council on July 1, 2020. 26
(iv) At the end of a term, a member continues to serve until a 27
successor is appointed and qualifies. 28
(v) A member who is appointed after a term has begun serves only 29
for the rest of the term and until a successor is appointed and qualifies. 30
SENATE BILL 365 5
(vi) The Governor may remove a member for neglect of duty, 1
incompetence or misconduct. 2
(d) The Secretary of Budget and Management, or the Secretary’s designee shall 3
serve as Chair of the Council. 4
(e) The staffing responsibilities of the Council shall be shared by the agencies 5
represented on the Council. 6
(f) A member of the Council: 7
(1) may not receive compensation as a member of the Council; but 8
(2) is entitled to reimbursement for expenses under the Standard State 9
Travel Regulations, as provided in the State Budget. 10
(g) The Council shall: 11
(1) advise the Department of Budget and Management on the 12
implementation of § 2–210 of this subtitle; and 13
(2) monitor and report to the Department of Budget and Management on 14
the State’s progress towards implementing § 2–210 of this subtitle. 15
2–210. 16
(a) (1) In this section the following words have the meanings indicated. 17
(2) “Council” means the Maryland Efficient Grant Application Council 18
established under § 2–209 of this subtitle. 19
(3) “Department” means the Department of Budget and Management. 20
(4) (i) “Grant” means a legal instrument of financial assistance 21
between a State grant–making entity and a non–State entity that is: 22
1. used to enter into a relationship the principal purpose of 23
which is to transfer anything of value from the grant–making entity to the grant recipient 24
to carry out a public purpose authorized by law and not to acquire property or services for 25
the direct benefit or use of the grant–making entity; and 26
2. distinguished from a cooperative agreement in that it does 27
not provide for substantial involvement between the grant–making entity and the grant 28
recipient in carrying out the activity contemplated by the award. 29
(ii) “Grant” does not include an instrument that provides only: 30
6 SENATE BILL 365
1. direct government cash assistance to an individual; 1
2. a subsidy; 2
3. a loan; 3
4. a loan guarantee; 4
5. insurance; 5
6. grants made by the State higher education system, the 6
capital budget, the Department of Transportation, or the Maryland Technology 7
Development Corporation; 8
7. business development grants made by the Department of 9
Commerce; or 10
8. any State funding that is required annually and is 11
calculated through a formula set in statute. 12
(5) “Grant application form” means a grant application template and 13
related materials required to be submitted by grant applicants, including: 14
(i) required organizational materials; and 15
(ii) proposed budget categories and line items. 16
(6) “Uniform Guidance” means the Office of Management and Budget 17
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 18
Federal Awards, 2 C.F.R. Part 200. 19
(b) (1) In order to improve efficiency, streamline and reduce redundant 20
processes, reduce paperwork and administrative burdens on both granting agencies and 21
grant recipients, and facilitate development and implementation of a statewide centralized 22
grants management and accountability system, the Council shall study and make 23
recommendations to the Department regarding the entire grants life cycle, including: 24
(i) the creation of the following materials for use by grant–making 25
agencies, grant applicants, and grant recipients in the State: 26
1. a uniform grant application form; 27
2. uniform financial controls and reporting requirements for 28
grant recipients; and 29
3. uniform performance progress reporting requirements for 30
grant recipients; 31 SENATE BILL 365 7
(ii) [the creation of a State Grants Ombudsperson to provide 1
technical assistance with: 2
1. accessing and navigating State grant programs; 3
2. resolving delays in the grant–making process; and 4
3. collecting and disseminating information on opportunities 5
for grants from federal, State, and local government; 6
(iii)] regulations adopting each part of the uniform guidance, with 7
appropriate modifications for its application to grant–making entities in the State, 8
including modifications or variances based on the scope or size of particular grant 9
programs, grant–making entities, or grantees; 10
[(iv)] (III) recommended timeframes and deadlines for the various 11
tasks included in items (i) [through (iii)] AND (II) of this paragraph; 12
[(v)] (IV) recommended deadlines for use and implementation by 13
the various grant–making entities of the materials prepared in accordance with item (i) of 14
this paragraph; and 15
[(vi)] (V) recommended deadlines for grant–making entities to 16
administer State and federal grants in accordance with the provisions of parts of uniform 17
guidance as adopted by the Department by regulation. 18
(2) In developing materials and recommendations under this subsection, 19
the Council shall: 20
(i) solicit the input of diverse stakeholders, including grant–making 21
agencies and organizations representing local governments, grant professionals, experts in 22
nonprofit accounting and auditing, and nonprofit service providers; and 23
(ii) establish one or more issue working groups, composed of 24
stakeholders representing diverse backgrounds appropriate to the charge of each 25
workgroup, and also reflecting the demographic diversity of the State and the diversity of 26
grant programs and grant recipients, including arts, history, and social service, to 27
participate in and facilitate the process of developing recommendations. 28
(c) On or before July 1, 2027, the Council shall submit a report on its full 29
recommendations as required by subsection (b)(1) of this section to the Department and the 30
General Assembly, in accordance with § 2–1257 of the State Government Article. 31
(d) On or before October 1, 2020, each State grant–making agency shall appoint 32
a Chief Accountability Officer who shall: 33 8 SENATE BILL 365
(1) serve as a liaison to the Council and the Department; and 1
(2) be responsible for the agency’s representation and participation in the 2
process established under this section. 3
(e) The Department shall provide technical assistance and interpretations of 4
policy requirements in order to ensure the effective and efficient implementation of this 5
section. 6
Chapter 28 of the Acts of 2024 7
[SECTION 2. AND BE IT FURTHER ENACTED, That: 8
(a) The Maryland Efficient Grant Application Council shall: 9
(1) study the feasibility, cost, and impacts of designating a State Grants 10
Ombudsperson in accordance with § 2–210(b)(1)(ii) of the State Finance and Procurement 11
Article, as enacted by Section 1 of this Act; and 12
(2) on or before July 1, 2025, make recommendations regarding the 13
designation of a State Grants Ombudsperson, including recommended timelines and 14
deadlines, to the Department of Budget and Management. 15
(b) On or before December 31, 2025, the Department of Budget and Management 16
shall, in accordance with § 2–1257 of the State Government Article, report to the General 17
Assembly on the recommendations made by the Maryland Efficient Grant Application 18
Council under subsection (a) of this section.] 19
Chapter 29 of the Acts of 2024 20
[SECTION 2. AND BE IT FURTHER ENACTED, That: 21
(a) The Maryland Efficient Grant Application Council shall: 22
(1) study the feasibility, cost, and impacts of designating a State Grants 23
Ombudsperson in accordance with § 2–210(b)(1)(ii) of the State Finance and Procurement 24
Article, as enacted by Section 1 of this Act; and 25
(2) on or before July 1, 2025, make recommendations regarding the 26
designation of a State Grants Ombudsperson, including recommended timelines and 27
deadlines, to the Department of Budget and Management. 28
(b) On or before December 31, 2025, the Department of Budget and Management 29
shall, in accordance with § 2–1257 of the State Government Article, report to the General 30 SENATE BILL 365 9
Assembly on the recommendations made by the Maryland Efficient Grant Application 1
Council under subsection (a) of this section.] 2
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
as follows: 4
Article – Economic Development 5
2.5–110. 6
(a) There is a nonprofit organizations navigator in the Department. 7
(b) The Secretary shall designate the navigator. 8
(c) The navigator shall: 9
(1) provide technical assistance to nonprofit organizations in obtaining 10
access to and applying for State grant programs; 11
(2) work with nonprofit organizations and units of State government to 12
resolve procedural complexities and delays in State grant–making processes; AND 13
(3) collect and share information on opportunities for federal, State, and 14
local grants with nonprofit organizations[; and 15
(4) represent nonprofit organizations’ interests and concerns as a member 16
of the Maryland Efficient Grant Application Council established under § 2–209 of the State 17
Finance and Procurement Article]. 18
SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 19
Assembly that the nonprofit organization navigator position established under Section 1 of 20
this Act shall be filled on or before January 1, 2026 July 1, 2025. 21
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 22
effect on the taking effect of the termination provision specified in Section 4 of Chapters 23
484 and 485 of the Acts of the General Assembly of 2020. If the termination date of Chapters 24
484 or 485 is amended, Section 2 of this Act shall take effect on the termination of Chapters 25
484 or 485. This Act may not be interpreted to have any effect on that termination provision. 26
SECTION 5. AND BE IT FURTHER ENACTED, That ,: 27
(a) On or before January 1, 2027, the Department of Commerce shall report to 28
the Senate Finance Committee and the House Health and Government Operations 29
Committee, in accordance with § 2–1257 of the State Government Article, on the following 30
information for fiscal year 2026: 31
10 SENATE BILL 365
(1) the number of nonprofit organizations that received technical 1
assistance from the navigator in accordance with Section 1 of this Act; 2
(2) the total number of grant applications completed and submitted by 3
nonprofit organizations in the State as a result of receiving technical assistance from the 4
navigator in accordance with Section 1 of this Act; 5
(3) the total amount of grant funds awarded to nonprofit organizations in 6
the State as a result of receiving technical assistance from the navigator in accordance with 7
Section 1 of this Act; and 8
(4) any findings and recommendations of the Department regarding the 9
implementation of Section 1 of this Act. 10
(b) The Department shall collect sufficient information from the nonprofit 11
organizations that receive technical assistance in accordance with Section 1 of this Act to 12
complete the report required under subsection (a) of this section. 13
SECTION 6. AND BE IT FURTHER ENACTED, That, except as provided in Section 14
4 of this Act, this Act shall take effect July 1, 2025 is an emergency measure, is necessary 15
for the immediate preservation of the public health or safety, has been passed by a yea and 16
nay vote supported by three–fifths of all the members elected to each of the two Houses of 17
the General Assembly, and shall take effect from the date it is enacted. It shall remain 18
effective through June 30, 2027, and, at the end of June 30, 2027, this Act, with no further 19
action required by the General Assembly, shall be abrogated and of no further force and 20
effect. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.