# Human Services (GHU)

## Title 8. Children, Youth, and Families

### Subtitle 8. Residential Child Care Programs -- Corporate Responsibility and Governance

#### Section 8-801

In this subtitle, "licensing agency":

(1) means the agency designated by the Office as responsible for licensing a residential child care program; and

(2) includes the Maryland Department of Health, the Department of Human Services, and the Department of Juvenile Services.

#### Section 8-802

This subtitle applies to a corporation that is an applicant for or has been granted a license to operate a residential child care program in the State.

#### Section 8-803

Except as provided in Sec. 8-807 of this subtitle and in addition to the standards set forth in COMAR 14.31.06 and 14.31.07, a corporation shall meet the requirements established in this subtitle as a condition of licensure.

#### Section 8-804

A corporation shall demonstrate to the licensing agency the capability to provide for and arrange for the provision of all applicable services proposed in the license application by submitting, at a minimum, the following documents to the licensing agency:

(1) a business plan that clearly demonstrates the ability of the residential child care program operated by the corporation to provide services in accordance with State regulations and funding requirements;

(2) a summary of the corporation's demonstrated experience in the field of human services, in accordance with standards developed by the Office;

(3) prior licensing reports issued within the previous 10 years concerning the corporation or any in-State or out-of-state entities associated with the corporation or the residential child care program, including deficiency reports and compliance records on which the State may make reasoned decisions about the qualifications of the corporation or the residential child care program; and

(4) a written quality assurance plan, approved by the licensing agency, to address how the corporation will ensure the health and safety of the individuals served by the residential child care program and the quality of services provided to individuals by the residential child care program.

#### Section 8-805

(a)

  (1) A corporation shall have a board of directors that consists of at least five individuals with an interest in or knowledge of the needs of children and their families.

  (2) Of the members of the board of directors:

    (i) at least one shall be a resident of the State;

    (ii) at least one shall have demonstrated experience in or knowledge of the field of human services; and

    (iii) at least one shall have demonstrated knowledge in the fields of accounting, business, or financial management.

  (3)

    (i) An employee, or an immediate family member of an employee, of a corporation or residential child care program may not serve on the corporation's board of directors.

    (ii) A person who is compensated by a corporation for providing goods or services may not serve on the corporation's board of directors.

(b) A corporation shall have a chief financial officer.

#### Section 8-806

A corporation shall adopt written bylaws that require the corporation's board of directors to be responsible for:

(1) overseeing the management and operation of the residential child care program operated by the corporation;

(2) ensuring that the residential child care program operates in compliance with all applicable laws and regulations;

(3) approving the residential child care program's mission statement, long-term goals, policies, procedures, and annual budget;

(4) defining and prohibiting circumstances that would create a financial or personal conflict of interest for members of the board of directors, corporate officers, employees, agents, assigns, and volunteers;

(5) ensuring that the residential child care program responds to all requests from the licensing agency in a timely manner;

(6) approving the residential child care program's service plan and ensuring that services are provided in accordance with the plan;

(7) if the corporation is a nonprofit corporation, reviewing annually whether the corporation is satisfying its charitable mission;

(8) ensuring that the corporation has liability insurance;

(9) requiring that members of the board of directors have training in their responsibilities regarding the governance of the residential child care program; and

(10) establishing committees or member assignments to periodically review as warranted, but not less than annually:

  (i) compensation of officers and staff of the corporation and the residential child care program;

  (ii) quality of services provided to clients, including all incidents harming or potentially harming clients;

  (iii) financial problems and concerns relating to the residential child care program;

  (iv) performance of key staff;

  (v) nominations of new members of the board of directors; and

  (vi) potential conflicts of interest.

#### Section 8-807

The members of the Children's Cabinet shall adopt regulations to authorize a waiver from some or all of the requirements of this subtitle for corporations that can demonstrate that their bylaws and policies are substantially similar to those required under this subtitle.

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Md. Code Ann., Hum. Servs. (as displayed at mgaleg.maryland.gov, October 16, 2026)