In this subtitle the following words have the meanings indicated. “Adjusted assessed valuation of real property” means the most recent estimate by the State Department of Assessments and Taxation before the State budget is submitted to the General Assembly, of the sum of 100 percent of the assessed valuation of operating real property of public utilities and 50 percent of the assessed value of all other real property for State purposes as of July 1 of the first completed fiscal year before the fiscal year for which the calculation of State library aid is made under this subtitle. “Capital expense” means principal and interest payments, or current capital spending or accumulation for: The purchase of land for libraries; The purchase and construction of library buildings; Remodeling and adding to library buildings; and The purchase of equipment and furniture for these library buildings. “Net taxable income” means the amount certified by the State Comptroller for the second full calendar year before the fiscal year for which the calculation of State library aid is made under this subtitle, based on tax returns filed on or before July 1 after that calendar year. “Population” means population determined from figures available as of July 1 of the calendar year before the fiscal year for which the calculation is made, from: The latest decennial census; or Estimates prepared by the Maryland Department of Health. “Real property” means all property classified as real property under § 8–101(b) of the Tax – Property Article. “Wealth” means the sum of net taxable income and adjusted assessed valuation of real property.

There is a county-State minimum library program for the support and growth of public libraries. The State shall share in the current operating and capital expenses of the county public library systems that participate in the minimum library program.

The entire capital and operating cost of the minimum library program for this State as a whole shall be shared as provided in this subsection. Subject to subsection (d) of this section, the State shall provide: Approximately 40 percent of the total cost of the minimum program; and Not less than 20 percent of the cost of the minimum program in any county. The counties participating in the program together shall provide through local taxes approximately 60 percent of the total statewide cost of the minimum program. Subject to subsection (d) of this section, each county public library system that participates in the minimum library program shall be provided for each resident of the county, to be used for operating and capital expenses: For fiscal year 2022 – $17.10; For fiscal year 2023 – $17.50; For fiscal year 2024 – $17.90; For fiscal year 2025 – $18.30; For fiscal year 2026 – $18.70; For fiscal year 2027 – $19.10; For fiscal year 2028 – $19.50; For fiscal year 2029 – $19.92; For fiscal year 2030 – $20.32; For fiscal year 2031 – $20.74; and For fiscal year 2032 and each fiscal year thereafter – $21.15. Subject to subsection (d) of this section, the State shall share in this amount. Any county may provide an amount greater than its share under the cooperative program, but the State may not share in the excess. Any employer Social Security contributions required by federal law for any employee in a county public library system shall remain the obligation of the employer. Receipt of State funding for a county library system that participates in the minimum library program under this section is contingent on the board of library trustees adopting a written policy for operation of the county library system that is consistent with the State standards for libraries. The Comptroller shall withhold all State funds from a county library system that the State Library Board certifies has failed to meet the State standards for libraries. The Comptroller shall continue to withhold funds under subparagraph (i) of this paragraph until the State Library Board certifies that the county library system has adopted a written policy consistent with the State standards for libraries.

Subject to paragraph (2) of this subsection, a public library shall reimburse the State annually for the employer contributions made by the State for an employee who: Is a member of the Teachers’ Retirement System or the Teachers’ Pension System under Division II of the State Personnel and Pensions Article; and Is receiving a salary funded by a source other than State or local aid. To the extent that an employee’s salary is funded in part by sources other than State or local aid, the public library shall reimburse the State a pro rata share of the State’s payment based on the percentage of the employee’s salary funded by a source other than State or local aid. To ensure that each public library is properly reimbursing the State as provided under subsection (a) of this section, the State Library Board or, at the State Library Board’s request, a public library may at any time examine the records of public libraries to determine whether the State’s payments for retirement contributions for employees of the public libraries are in accordance with the provisions of Division II of the State Personnel and Pensions Article. An audit conducted under paragraph (1) of this subsection may be: Included with an existing annual financial audit as a supplemental part and tested independently; Conducted in conjunction with a supplemental federally mandated single audit of federal financial assistance programs and tested independently; or Conducted as a separate independent audit. If an examination of the records of a public library shows that the State has paid more than is required under Division II of the State Personnel and Pensions Article, within 30 days after the date of the notice to the library of the State overpayment, the public library may appeal the notice of State overpayment to the Secretary of Budget and Management who shall appoint a hearing examiner. The hearing examiner shall make recommendations to the Secretary of Budget and Management who shall make a final determination regarding the amount, if any, of the State overpayment. If a public library does not appeal to the Secretary of Budget and Management or if the Secretary of Budget and Management determines that the State is due reimbursement for excess payments as provided in paragraph (1) of this subsection, at the request of the State Library Board the money owed shall be deducted from any other State funds that would otherwise be paid to the public library. For purposes of the Administrative Procedure Act, an appeal taken under this section is not a contested case. Any reimbursements under subsection (a) of this section: Shall be applied first to the cost of any audit or portion of any audit relating to subsection (a) of this section to reimburse either the State Library Board or the public library for the expenses of the audits; and After reimbursement to the State Library Board or public library under item (i) of this paragraph, shall be credited to the General Fund. If an audit under this section is performed by a public library, before the public library is reimbursed under paragraph (1)(i) of this subsection, the public library shall provide documentation to the State Library Board that the incremental costs of the audit incurred by the public library are reasonable.

To be eligible for its State share of the minimum program, a county government shall levy an annual tax sufficient to provide an amount for library purposes equal to: The wealth of the county; times A uniform percentage, rounded to the fifth decimal place equal to: 60 percent of the total minimum program for current and capital expenses to be shared for all counties; divided by The total wealth of all the counties. The State share of the minimum program for current and capital expenses for each county is the difference between the county share calculated under subsection (a) of this section and the minimum program for current and capital expenses to be shared under § 23-503 of this subtitle. Not more than 20 percent of the county and State shares may be applied to capital expenses. The county appropriation for capital expenses may include funds from any source except the State.

The State Librarian shall authorize the payment of funds under this subtitle: To the board of library trustees of each county that has a board of trustees; or In each county that does not have a board of library trustees, to the county. Current operating funds shall be administered by the county board of library trustees. Capital expense funds shall be administered by the county council, board of county commissioners, or Mayor and City Council of Baltimore City. The funds provided under this subtitle may be used only for library purposes. The State Librarian shall require that these funds be used subject to: The adoption of a written policy for operation of the county library system consistent with the State standards for libraries by each board of library trustees or, if the county does not have a board of library trustees, the county government; and Any other conditions specified by the appropriating agency or imposed under this subtitle.

In this section the following words have the meanings indicated. “Child pornography” means a violation of § 11–207 of the Criminal Law Article. “Obscene” has the meaning stated in § 11–203 of the Criminal Law Article. On or before January 1, 2001, each county or board of trustees of a county library shall: Adopt and implement policies and procedures to prevent minors from obtaining access through the library, by means of the Internet, the World Wide Web, Usenet, or any other interactive computer service to materials that are obscene or constitute child pornography; and Submit the policies and procedures required under this section to the State Librarian for review. The State Librarian or a designee of the State Librarian shall regularly monitor the county libraries to determine whether each library is complying with the policies and procedures adopted for preventing a minor from obtaining Internet access to obscene materials through the library.

The State Librarian shall authorize the State Comptroller to withhold State funds from any county that fails: To appropriate the amount of its share of the minimum program; or To meet the requirements of the law or of the State Library Board for operating the county library. The Comptroller shall withhold all State funds from a county that the State Library Board certifies has failed to operate the county library system consistent with the State standards for libraries. The Comptroller shall continue to withhold funds under paragraph (1) of this subsection until the State Library Board certifies that the county has adopted a written policy for the operation of the county library system consistent with the State standards for libraries.

Remuneration of an employee on account of sickness or accident of the employee shall be paid and treated as sick pay and not as continuation of salary.

In this section the following words have the meanings indicated. “Capital project” means the: Acquisition of land or buildings for a county library; or Construction or improvement of a county library. “Construction or improvement” means planning, design, engineering, alteration, construction, reconstruction, enlargement, expansion, extension, improvement, replacement, rehabilitation, renovation, upgrading, repair, or capital equipping. “County library” means a library in a county public library system in the State. “State Library Agency” means the Maryland State Library Agency. There is a State grant program for county public library capital projects in the State Library Agency. The grant program is in addition to the county–State minimum library program established under § 23–502 of this subtitle. The State Library Agency shall develop and administer a grant program to assist in the funding of county library capital projects. The purpose of the grant program is to: Provide a uniform and objective analysis of proposed capital projects; and Support projects that address the library needs in the State. Grants under the program: Require a matching fund from any combination of county, municipal, or private sources; and May not be for an amount less than $20,000. On or before July 15 of each year, a county public library system may submit applications to the State Library Agency to receive grants for county library capital projects for the next fiscal year. In order to apply for a capital project grant, a county public library system shall have: A countywide library plan that includes a mission statement, needs statement, and multiyear goals and objectives on file with the State Library Agency; and A master plan that includes a description of the capital project approved by the applicant’s governing body. An application shall include: A description of the scope and purpose of the project; A building plan that includes the estimated total cost of the project; and Any other information required by the State Library Agency. A county public library system may not apply for more than three capital project grants in a fiscal year. The State Library Agency shall review grant applications submitted in accordance with subsection (d) of this section. On or before October 1 of each year, the State Library Agency shall make recommendations to the State Library Board regarding capital project grants for the next fiscal year. In making its recommendations, the State Library Agency shall consider: The public necessity and urgency of a project; The need for additional sources of funding for a project; The estimated cost and timeliness of executing a project; The viability of matching funds for a project; and Geographic diversity. On or before November 1 of each year, the State Library Board shall: Approve capital projects for funding in the State budget for the next fiscal year; and Forward the list of approved capital projects to the Department of Budget and Management. For each of fiscal years 2008 through 2021, the Governor shall include in the annual operating or capital budget submission $5,000,000 for county library capital projects. For fiscal year 2022 and each fiscal year thereafter, the Governor shall include in the annual operating or capital budget submission $7,500,000 for county library capital projects. The State share percentage for a county library capital project approved under this section shall be calculated by dividing the State share of the minimum program for a county calculated under § 23–505(b) of this subtitle by the library program amount for a county calculated under § 23–503(b) of this subtitle, and multiplying this quotient by 1.25. The minimum State share of a county library capital project is 50%. The maximum State share of a county library capital project is 90%. The State Library Board shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly, on or before October 1 of each year, on State grants awarded for county public library capital projects for the prior fiscal year. The State Library Board shall adopt regulations to implement the grant program established under this section.