# State Finance and Procurement (GSF)

## Title 2. General Provisions

### Subtitle 1. Finances

#### Section 2-101

(a) The fiscal year for the State and its officers and units begins on July 1 of a calendar year and ends on June 30 of the next calendar year.

(b) Each officer and unit of the State government shall use the fiscal year for:

  (1) appropriating money;

  (2) authorizing expenditures;

  (3) keeping records;

  (4) balancing books and accounts; and

  (5) making reports.

#### Section 2-102

(a) On or before the 10th day of each regular session of the General Assembly, the Comptroller shall submit to the Governor and, subject to Sec. 2-1257 of the State Government Article, to the General Assembly an annual report on the fiscal operations of the State.

(b) The report shall state:

  (1) for the fiscal year in which the report is made:

    (i) the estimated State revenues; and

    (ii) the estimated State expenditures; and

  (2) for the preceding fiscal year:

    (i) the total State funds;

    (ii) the total State revenues;

    (iii) the amount of revenues that the State received from each source;

    (iv) the total State expenditures;

    (v) the purposes of the expenditures;

    (vi) each amount that the State claims is due from a political subdivision;

    (vii) each amount that the State claims is due from an officer of a political subdivision who, by law, collects revenues for the State;

    (viii) the total funds, from all State sources, that the State transferred to each political subdivision; and

    (ix) the amount of those transferred funds, as calculated for each $100 of assessed value of property in a political subdivision.

#### Section 2-103

After each regular session of the General Assembly, the Comptroller shall deliver to the printer who is designated to print the session laws an accurate statement of receipts and expenditures of public money for the last full fiscal year preceding that session.

#### Section 2-104

(a) On or before January 1 of each year, the Treasurer shall submit an annual report to the Governor and, subject to Sec. 2-1257 of the State Government Article, to the General Assembly.

(b)

  (1) The report shall describe the activities and operation of the Office of the Treasurer during the preceding fiscal year.

  (2) The report shall include:

    (i) a statement on the management of State funds;

    (ii) a statement on the interest earned on investments; and

    (iii) a statement on the administration of the State Insurance Program and the State Insurance Trust Fund, including any recommendations for changes in their operation.

#### Section 2-106

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Bond" means any evidence of debt.

  (3) "Official" includes:

    (i) a comptroller;

    (ii) a chief financial officer; and

    (iii) a treasurer.

  (4) "Public body" means:

    (i) a unit of the State government; or

    (ii) a county, municipal corporation, public corporation, special authority, or other political subdivision of the State.

(b) If a public body is authorized to incur debt to be redeemed from the proceeds of any tax or levy, an authorized official of the public body shall submit to the State Treasurer:

  (1) on or before January 1 of each year, a report on bonds anticipated to be issued during the next 7-month period; and

  (2) on or before July 1 of each year, a report on bonds anticipated to be issued during the next 7-month period.

(c)

  (1) A report under this section shall be in the form the State Treasurer requires.

  (2) The report shall include:

    (i) a statement of the amount of bonds that the public body expects to issue during the period that the report covers; and

    (ii) for each issue of bonds, a statement of:

      (1) the month and part of the month during which the bonds will be issued;

      (2) the term for which the bonds will be outstanding; and

      (3) whether the bonds will be sold at a public or private sale.

(d)

  (1) The State Treasurer shall prepare:

    (i) on or before January 31 of each year, a compilation of the information in the reports submitted for the current January 1 to July 31 period; and

    (ii) on or before July 31 of each year, a compilation of the information in the reports submitted for the current July 1 to January 31 period.

  (2) The compilation shall include any additions or corrections to the information in the reports.

  (3) The State Treasurer shall send a copy of the compilation to each official who submitted a report included in the compilation.

(e) The State Treasurer shall:

  (1) make the reports and compilations available for inspection during normal business hours; and

  (2) provide a copy of a report or compilation to any person who first pays to the State Treasurer a fee to cover costs.

(f)

  (1) An official is not personally liable for failure to submit a report under this section.

  (2) Failure to submit the report or to comply with other requirements of this section does not affect:

    (i) the authority of a public body to incur debt; or

    (ii) the validity of any debt that the public body incurs.

#### Section 2-107

(a) As provided by the Comptroller by regulation, each unit of State government that imposes fees of any kind shall maintain and make available to the Comptroller up-to-date data regarding:

  (1) the services or functions for which fees are imposed and the associated levels of the fees; and

  (2) a comparison of the actual revenues generated by the fees and the total costs of providing the service or performing the function for which the fees are imposed.

(b) The Comptroller shall prepare and submit to the Governor and, subject to Sec. 2-1257 of the State Government Article, the General Assembly, on a biennial basis on or before December 1 of every other year, a report compiling the data made available to the Comptroller under subsection (a) of this section.

(c)

  (1) The Comptroller shall adopt regulations to implement this section.

  (2) The regulations adopted by the Comptroller under paragraph (1) of this subsection shall specify:

    (i) that the data required for the Maryland Port Administration of the Department of Transportation shall be the data included in the port tariff;

    (ii) that the Maryland Aviation Administration and the Maryland Port Administration shall disclose aggregate information on fees and costs, provided that such disclosure does not include information that is proprietary in nature; and

    (iii) that any other department, agency, or governmental unit which collects fees or user charges that may contain privileged or proprietary information may aggregate or standardize the information submitted as needed to preserve the sensitive nature of the information.

#### Section 2-108

(a) A unit of State government may not knowingly use public funds to influence the decisions of State employees to:

  (1) support or oppose an employee organization that represents or seeks to represent the employees of the unit of State government; or

  (2) become a member of an employee organization.

(b) This section does not apply to an activity performed or to an expense incurred in connection with:

  (1) addressing a grievance or negotiating or administering a collective bargaining agreement;

  (2) allowing an employee organization or a representative of an employee organization access to and use of State facilities or properties;

  (3) performing an activity required by federal or State law or a collective bargaining agreement;

  (4) negotiating, entering into, or carrying out a voluntary recognition agreement with an employee organization; or

  (5) paying wages to a represented employee while the employee is performing duties if the payment is permitted under a collective bargaining agreement.

### Subtitle 2. Gifts and Grants

#### Section 2-201

(a) In this section, "gift" has the meaning stated in Sec. 1-109 of the General Provisions Article.

(b) Except as otherwise expressly provided by law, an officer or unit of the State government may not spend any money that derives from a gift until the Governor assents to the acceptance of the gift.

(c) If the Governor assents to the acceptance of a gift by an officer or unit, the officer or unit may use the gift in accordance with its terms. If the gift is money or generates money, the officer or unit may not spend the money until it is appropriated as provided in Title 7 of this article.

#### Section 2-202

(a) In this section, "block grant" means any federal grant-in-aid that:

  (1) contains consolidated funding for 1 or more programs;

  (2) includes any change in the financing of a program that includes any kind of capped allocations or specific spending targets; or

  (3) is designated by Congress as a block grant.

(b) It is the policy of the State that the General Assembly and the Governor should consult before the Executive Branch of the State government adopts State policy on block grants.

(c)

  (1) This section is in addition to and not in derogation of any other power or duty of the General Assembly.

  (2) This section applies to the adoption of State policy to:

    (i) participate in a block grant;

    (ii) set a date on which the State will accept responsibility for a block grant; or

    (iii) transfer money between block grants.

(d) The Governor shall send, subject to Sec. 2-1257 of the State Government Article, to the Legislative Policy Committee each proposal for the adoption of State policy on a block grant.

(e) Within 60 days after the Legislative Policy Committee receives the proposal or, if the Committee sets a shorter period, within that period, the Committee:

  (1) may hold a public hearing on the proposal;

  (2) may refer the proposal to another committee for review; and

  (3) for the General Assembly, may send the Governor comments on the proposal.

(f) The Governor may act on the proposal only after the expiration of the 60-day period or any shorter period set under subsection (e) of this section.

#### Section 2-203

(a)

  (1) After consultation with the Department of Budget and Management, the Secretary of Planning shall adopt regulations that require a unit of the State government to submit information, as required in this section, on federal aid, including grants, instructional contracts, loans, research contracts, or other assistance.

  (2) The regulations shall require a unit of the State government to obtain a State Application Identifier (SAI) from the Department of Planning.

(b)

  (1) Each 6 months, a unit shall submit a summary notice to the Department of Planning if, during the 6-month period that the notice covers, the unit has received an award of federal aid in the form of an instructional contract, instructional grant, research contract, or research grant.

  (2) The summary notice shall state the amount of the award.

(c)

  (1) This subsection does not apply to an instructional contract, instructional grant, research contract, or research grant.

  (2) When a unit applies for federal aid, the unit shall send to the Department of Planning a copy of the application.

  (3) Within 30 days after a unit receives an award of federal aid, the unit shall submit to the Department of Planning a summary notice that states:

    (i) the amount of the award; and

    (ii) if the award is conditioned on matching funds:

      (1) the amount of those funds;

      (2) the source of those funds; and

      (3) the period for which those funds are required.

#### Section 2-205

The Governor may designate any unit of the State government:

(1) to accept any surplus food that, under an act of Congress, is available to the State; and

(2) to manage and dispose of the food in accordance with federal law.

#### Section 2-206

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Board" means the Maryland Agricultural Education and Rural Development Assistance Board.

  (3) "Council" means the Rural Maryland Council established under Title 13, Subtitle 4 of the Economic Development Article.

  (4) "Fund" means the Maryland Agricultural Education and Rural Development Assistance Fund.

(b) The General Assembly finds and declares that:

  (1) many nonprofit organizations that serve the needs of the rural areas of the State experience fiscal difficulties in addressing the areas of economic and community development and agriculture and forestry education because of the inadequacy of funding resources for them;

  (2) these organizations do not have the access to private and public sources of funding that are generally more available to nonprofit groups that serve the needs of the metropolitan areas of the State; and

  (3) as a result, the rural areas of the State face a serious deficit of resources where the need, in many instances, is greatest.

(c)

  (1) There is a Maryland Agricultural Education and Rural Development Assistance Fund that shall be administered by the Council.

  (2) The purpose of the Fund is to provide funding:

    (i) to rural regional planning and economic development organizations and rural community development programs whose missions and work have statewide implications and merit State support; and

    (ii) to augment the efforts of advanced technology centers and similar programs that serve agricultural and natural resources based small businesses in rural areas through community colleges.

  (3)

    (i) The Fund is a continuing, nonlapsing fund which is not subject to Sec. 7-302 of this article.

    (ii) The Treasurer shall separately hold and the Comptroller shall account for the Fund.

    (iii) The Treasurer may invest money in the Fund in the same manner as other State money may be invested.

  (4) Expenditures from the Fund may only be made:

    (i) pursuant to an appropriation approved by the General Assembly in the annual State budget; or

    (ii) by the budget amendment procedure provided for in Sec. 7-209 of this article, provided that:

      (1) the budget amendment and supporting information have been submitted to the budget committees for their review and comment; and

      (2) at least 45 days have elapsed from the time the budget amendment and supporting information were submitted to the budget committees.

(d) The Council shall award grants on the basis of the binding recommendations of the Maryland Agricultural Education and Rural Development Assistance Board.

(e)

  (1) There is a Maryland Agricultural Education and Rural Development Assistance Board.

  (2) The Board shall consist of:

    (i) the Secretary of Agriculture or the Secretary's designee;

    (ii) the Secretary of Commerce or the Secretary's designee;

    (iii) the Secretary of Housing and Community Development or the Secretary's designee;

    (iv) the Secretary of Health or the Secretary's designee;

    (v) the Secretary of Natural Resources or the Secretary's designee; and

    (vi) the Chairman of the Council or the Chairman's designee.

  (3) The agencies listed in paragraph (2)(i) through (v) of this subsection may assist the Council with administering individual grant awards.

  (4) The Board shall:

    (i) establish procedures for applications for grants;

    (ii) review applications for grants; and

    (iii) make binding recommendations to the Council regarding the recipients of grants and the amount of the grants.

  (5) The Board shall give funding priority to organizations described in subsection (c)(2)(i) of this section that have:

    (i) obtained an equal matching amount of funding from a source other than the State in the immediate prior fiscal year;

    (ii) sufficient evidence of a commitment of a third party funding source to provide an equal matching amount of funding in the current fiscal year; or

    (iii) received a completion certificate under Sec. 13-416 of the Economic Development Article.

(f)

  (1) A grant recipient shall submit to the Council written documentation of how the grant recipient spent or otherwise used the grant.

  (2) On or before October 1 each year, the Council shall submit to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly, a written report that includes:

    (i) the number of grants made during the fiscal year;

    (ii) the names of the recipients of the grants;

    (iii) the specific purpose of each grant awarded; and

    (iv) documentation of how the grant recipient spent or otherwise used the grant.

#### Section 2-207

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Agriculture" means the commercial production, storage, processing, marketing, distribution, or export of an agronomic, aquacultural, equine, floricultural, horticultural, ornamental, silvicultural, or viticultural crop, including:

    (i) farm products;

    (ii) livestock and livestock products;

    (iii) poultry and poultry products;

    (iv) milk and dairy products;

    (v) timber and forest products;

    (vi) fruit and horticultural products; and

    (vii) seafood and aquacultural products.

  (3) "Board" means the Maryland Agricultural Education and Rural Development Assistance Board established under Sec. 2-206(e) of this subtitle.

  (4) "Cooperative development" means activities to support the creation or growth of a business cooperative, including support for:

    (i) business feasibility studies;

    (ii) industry studies;

    (iii) market studies;

    (iv) the establishment of business entities; and

    (v) administration of the business cooperative.

  (5) "Council" means the Rural Maryland Council established under Title 13, Subtitle 4 of the Economic Development Article.

  (6) "Fund" means the Rural Maryland Prosperity Investment Fund established under this section.

  (7) "Regional councils" means:

    (i) the Mid-Shore Regional Council;

    (ii) the Tri-County Council for the Lower Eastern Shore of Maryland;

    (iii) the Tri-County Council for Southern Maryland;

    (iv) the Tri-County Council for Western Maryland; and

    (v) the Upper Shore Regional Council.

  (8) "Rural area" means:

    (i) the following counties:

      (1) Allegany;

      (2) Calvert;

      (3) Caroline;

      (4) Carroll;

      (5) Cecil;

      (6) Charles;

      (7) Dorchester;

      (8) Frederick;

      (9) Garrett;

      (10) Harford;

      (11) Kent;

      (12) Queen Anne's;

      (13) St. Mary's;

      (14) Somerset;

      (15) Talbot;

      (16) Washington;

      (17) Wicomico; and

      (18) Worcester; and

    (ii) portions of other counties in close proximity to agricultural activity.

  (9) "Rural community" means an incorporated or unincorporated area of a county or group of counties in a rural area.

  (10) "Workforce development" means activities to:

    (i) assist workers with obtaining training in the necessary skills required by local employers; and

    (ii) assist community colleges, career and technical education centers, local workforce boards, and similar organizations with efforts to provide training programs consistent with item (i) of this paragraph.

(b) The General Assembly finds that:

  (1) many rural communities in the State face a host of difficult challenges relating to persistent unemployment and poverty, changing technological and economic conditions, an aging population and an out-migration of youth, inadequate access to quality housing, health care and other services, and deteriorating or inadequate transportation, communications, sanitation, and economic development infrastructure;

  (2) Maryland's agricultural and resource-based industries continue to underpin the local economies of rural communities but are increasingly under threat from national and international market competition, urban encroachment and land development pressure, and environmental and regulatory influences;

  (3) local governments, regional organizations, educational institutions, and private sector service providers have been unable to meet all the economic development, community development, health care, and human services needs of Maryland residents in the rural counties and municipal corporations because of a lack of adequate available capacity and resources;

  (4) the objective of the Rural Maryland Prosperity Investment Fund is to help raise the overall standard of living in rural areas to a level that meets or exceeds statewide benchmark averages by 2030, while preserving the best aspects of a pastoral heritage and rural way of life;

  (5) resources provided to the Fund are designed to facilitate significant targeted investments in important economic, health care, and community development programs and promote regional and intergovernmental cooperation;

  (6) these investments will also enable local and regional public and nonprofit organizations to leverage additional nonstate financial and human resources to facilitate the realization of sustainable rural development objectives while the program is in effect; and

  (7) the Fund will serve the interests of the entire State by:

    (i) encouraging the increase of entrepreneurial activity and commerce and a balanced economy in the State;

    (ii) relieving conditions of unemployment and underemployment in rural areas;

    (iii) assisting in the retention of valuable farm and forest land for productive use by present and future generations;

    (iv) promoting intergovernmental cooperation and public sector/private sector partnerships in and between rural and other areas;

    (v) enhancing the deployment of housing, transportation, water, wastewater, and broadband communications infrastructure and services in rural areas;

    (vi) supporting rural commercial center redevelopment and community revitalization efforts; and

    (vii) generally promoting the health, happiness, safety, employment opportunity, and general welfare of the residents of each of the rural counties and municipal corporations of the State.

(c)

  (1) There is a Rural Maryland Prosperity Investment Fund.

  (2) The Fund is administered by the Rural Maryland Council with the assistance of the Board.

  (3) The purpose of the Fund is to provide funding to rural regional and statewide planning and development organizations, institutions of higher education serving rural communities, rural community development organizations, and local governments acting in partnership with one another to promote the quality of life in rural areas.

(d) Each year, beginning in fiscal year 2008 and continuing through fiscal year 2030, the Governor may include an appropriation in the budget bill for the Fund.

(e)

  (1) The Fund is a special, nonlapsing fund that is not subject to reversion under Sec. 7-302 of this article.

  (2) The Treasurer shall separately hold and the Comptroller shall account for the Fund.

  (3) The Treasurer may invest money in the Fund in the same manner as other State money may be invested.

(f)

  (1) Except as provided in paragraph (2) of this subsection, disbursements of money appropriated to the Fund shall be allocated in the following manner:

    (i) one-third shall be allocated equally to the five regional councils as grants for rural regional planning and development assistance, by targeting support to the:

      (1) regional councils serving rural areas; and

      (2) multicounty efforts serving rural communities in areas not served by the regional councils; and

    (ii) the remaining two-thirds shall be allocated equally as grants among the following categories:

      (1) regional infrastructure projects that directly involve two or more units of local government, not to exceed one-fourth of the total cost of any particular project;

      (2) rural entrepreneurship and agricultural development, including:

      (A) programs and activities serving rural communities undertaken by nonprofit organizations and institutions of higher education;

      (B) cooperative development; and

      (C) workforce development;

      (3) rural community development, programmatic assistance, and education, with money to be divided equally between the Council and the Maryland Agricultural Education and Rural Development Assistance Fund; and

      (4) rural health care organizations.

  (2) If in any fiscal year revenues appropriated to the Fund are insufficient to fully fund all grants under paragraph (1) of this subsection, disbursements of money appropriated to the Fund shall be allocated as follows:

    (i) $500,000 shall be allocated to the Council, of which:

      (1) $250,000 shall be used to support the operations of the Council; and

      (2) $250,000 shall be allocated to the Maryland Agricultural Education and Rural Development Assistance Fund established under Sec. 2-206 of this subtitle; and

    (ii) the remaining disbursements of money appropriated to the Fund shall be allocated in the manner described in paragraph (1) of this subsection.

(g)

  (1) Any money received by a regional council under subsection (f)(1)(i) of this section shall be used to benefit rural areas as the regional council determines.

  (2)

    (i) Subject to subparagraph (ii) of this paragraph, the Board shall award grants from the Fund under subsection (f)(1)(ii) of this section on a competitive basis in accordance with the procedures in Sec. 2-206(e) of this subtitle.

    (ii) Any money received by the Council under subsection (f)(1)(ii) of this section shall be used to help administer the Fund and perform other functions that benefit rural areas as the Council determines.

  (3) A grant recipient shall submit to the Council written documentation of how the grant recipient spent or otherwise used the grant.

(h) The Board may reallocate money from one category listed in subsection (f)(1)(ii) of this section to another category only if there is a lack of sufficient applications requesting use of money in a particular category.

(i)

  (1) On or before October 1 of each year, the Council shall submit a report to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly.

  (2) The report shall summarize the activities of the Fund during the preceding fiscal year, including:

    (i) the number of grants made during the fiscal year;

    (ii) the names of the recipients of the grants;

    (iii) the specific purpose of each grant awarded; and

    (iv) documentation of how the grant recipient spent or otherwise used the grant.

#### Section 2-207.1

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Board" means the Maryland Agricultural Education and Rural Development Assistance Board established in Sec. 2-206 of this subtitle.

  (3) "Council" means the Rural Maryland Council established under Title 13, Subtitle 4 of the Economic Development Article.

  (4) "Eligible applicant" has the meaning stated in Sec. 13-416 of the Economic Development Article.

  (5) "Fund" means the Rural Maryland Capacity Building Fund.

  (6) "Rural community" has the meaning stated in Sec. 2-207 of this subtitle.

(b)

  (1) There is a Rural Maryland Capacity Building Fund.

  (2) The purpose of the Fund is to support collaborative planning and capacity building initiatives that address the needs of rural communities.

  (3) The Council shall administer the Fund.

  (4)

    (i) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

    (ii) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

  (5) The Fund consists of:

    (i) money appropriated in the State budget to the Fund; and

    (ii) any other money from any other source accepted for the benefit of the Fund.

  (6) The Fund may be used only for grants provided under this section.

  (7)

    (i) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

    (ii) Any interest earnings of the Fund shall be credited to the General Fund of the State.

  (8) Expenditures from the Fund may be made only in accordance with the State budget.

(c)

  (1) The Board shall:

    (i) establish procedures for applications for grants provided under this section;

    (ii) review applications for grants; and

    (iii) approve grant recipients and the amount of the grant award.

  (2) Grants may not be awarded to eligible applicants that have not completed the Rural Readiness Program established under Sec. 13-416 of the Economic Development Article.

  (3) Grants shall be awarded on a competitive basis.

  (4) The Board shall give priority to eligible applicants that have:

    (i) multijurisdictional and multisector projects; and

    (ii) provided sufficient evidence of a commitment to a funding match of at least 20% of the grant amount.

  (5) A grant amount may not exceed $50,000.

(d) Eligible applicants must apply for a grant in a manner consistent with the procedures established by the Board.

(e)

  (1) Grant funds may be used to support:

    (i) collaborative planning and capacity building initiatives that advance efforts to address the needs of rural communities, including:

      (1) housing;

      (2) broadband services;

      (3) placemaking;

      (4) energy;

      (5) transportation;

      (6) health;

      (7) infrastructure;

      (8) economic development; and

      (9) workforce;

    (ii) readiness for investment in and development of a rural community or property in a rural community, including:

      (1) development of property inventories;

      (2) site development studies;

      (3) site material development;

      (4) site implementation or land assembly activities; and

      (5) feasibility or market studies;

    (iii) partnerships and planning to build readiness for future projects and collaborative initiatives; and

    (iv) cross-sector collaboration for community and stakeholder engagement that fosters planning and dialogue.

  (2) Grant funds may not be used to:

    (i) pay or reimburse the grantee for employee salary, wages, benefits, or other indirect costs of the grantee that are not related to the project for which a grant was awarded;

    (ii) fund operational activities at a for-profit entity;

    (iii) purchase or lease real property; or

    (iv) support a nonrural area.

(f) On or before October 1 each year, the Council shall submit to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly a report on:

  (1) the number of grants made in the previous fiscal year;

  (2) the name of each grant recipient; and

  (3) the purpose and use of each grant.

#### Section 2-208

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Indirect costs" means any costs that would be considered to be indirect costs under OMB Uniform Guidance.

  (3) "Nonprofit organization" means an organization that is tax exempt under Sec. 501(c)(3), (4), or (6) of the Internal Revenue Code.

  (4) "OMB Uniform Guidance" means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards adopted by the Office of Management and Budget in 2 C.F.R. 200 and any related guidance published by the Office of Management and Budget.

(b)

  (1) This section applies only to:

    (i) a grant or contract awarded on or after October 1, 2018;

    (ii) a multi-year grant or contract awarded before October 1, 2018, if:

      (1) the grant or contract continues to be in effect on or after October 1, 2018; and

      (2) funding for the grant or contract is required to be authorized separately for each fiscal year; and

    (iii) an extension or a renewal of a grant or contract if the extension or renewal is awarded on or after July 1, 2019.

  (2) This section applies whether or not the funds awarded through the grant or contract are transferred directly by the State or through a third party to the nonprofit organization.

  (3) This section does not require the reimbursement of indirect costs incurred under a multi-year grant or contract described under paragraph (1)(ii) of this subsection during any fiscal year that begins before July 1, 2019.

(c) If a nonprofit organization is a direct recipient or subrecipient of a grant or contract for the provision of services that is funded wholly with State funds or with a combination of State and other nonfederal funds, the terms of the grant or contract shall allow for reimbursement of indirect costs:

  (1) at the same rate the nonprofit organization has negotiated and received:

    (i) for indirect costs under a direct federal award; or

    (ii) from a nonfederal entity based on the cost principles in Subpart E of OMB Uniform Guidance; or

  (2) if the nonprofit organization has not negotiated and received an indirect cost rate described in item (1) of this subsection, at a rate equal to the greater of the de minimis rate established in Subpart E of OMB Uniform Guidance or 15% of the costs that would be considered modified total direct costs under OMB Uniform Guidance.

#### Section 2-209

(a) In this section, "Council" means the Maryland Efficient Grant Application Council.

(b) There is a Maryland Efficient Grant Application Council.

(c)

  (1) The Council consists of the following members:

    (i) the Chief Procurement Officer, or the Chief Procurement Officer's designee;

    (ii) the State Treasurer, or the State Treasurer's designee;

    (iii) the Comptroller, or the Comptroller's designee;

    (iv) the Attorney General, or the Attorney General's designee;

    (v) the Secretary of Budget and Management, or the Secretary's designee;

    (vi) the Secretary of Health, or the Secretary's designee;

    (vii) the Secretary of Human Services, or the Secretary's designee;

    (viii) the Secretary of Housing and Community Development, or the Secretary's designee;

    (ix) the Secretary of Agriculture, or the Secretary's designee;

    (x) the Secretary of the Environment, or the Secretary's designee;

    (xi) the State Superintendent of Schools, or the State Superintendent's designee;

    (xii) the Director of the Maryland Energy Administration, or the Director's designee;

    (xiii) the Executive Director of the Governor's Office of Crime Prevention and Policy, or the Executive Director's designee;

    (xiv) the chair of the Maryland Higher Education Commission, or the chair's designee;

    (xv) the Secretary of Natural Resources, or the Secretary's designee;

    (xvi) the nonprofit organizations navigator, or the navigator's designee, who shall serve as a nonvoting member;

    (xvii) a representative from the Maryland Association of Counties;

    (xviii) a representative from the Maryland Municipal League;

    (xix) five representatives of private nonprofit organizations with experience providing services funded by State or federal grants and that reflect the size and diversity of the nonprofit grant recipients in the State, appointed by the Governor;

    (xx) one representative of a private nonprofit organization, appointed by the President of the Senate; and

    (xxi) one representative of a private nonprofit organization, appointed by the Speaker of the House.

  (2)

    (i) This paragraph applies to members of the Council appointed under paragraph (1)(xix) of this subsection.

    (ii) The term of a member is 4 years.

    (iii) The terms of members are staggered as required by the terms provided for members of the Council on July 1, 2020.

    (iv) At the end of a term, a member continues to serve until a successor is appointed and qualifies.

    (v) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.

    (vi) The Governor may remove a member for neglect of duty, incompetence, or misconduct.

(d) The Secretary of Budget and Management, or the Secretary's designee shall serve as Chair of the Council.

(e) The staffing responsibilities of the Council shall be shared by the agencies represented on the Council.

(f) A member of the Council:

  (1) may not receive compensation as a member of the Council; but

  (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(g) The Council shall:

  (1) advise the Department of Budget and Management on the implementation of Sec. 2-210 of this subtitle; and

  (2) monitor and report to the Department of Budget and Management on the State's progress towards implementing Sec. 2-210 of this subtitle.

#### Section 2-210

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Council" means the Maryland Efficient Grant Application Council established under Sec. 2-209 of this subtitle.

  (3) "Department" means the Department of Budget and Management.

  (4)

    (i) "Grant" means a legal instrument of financial assistance between a State grant-making entity and a non-State entity that is:

      (1) used to enter into a relationship the principal purpose of which is to transfer anything of value from the grant-making entity to the grant recipient to carry out a public purpose authorized by law and not to acquire property or services for the direct benefit or use of the grant-making entity; and

      (2) distinguished from a cooperative agreement in that it does not provide for substantial involvement between the grant-making entity and the grant recipient in carrying out the activity contemplated by the award.

    (ii) "Grant" does not include an instrument that provides only:

      (1) direct government cash assistance to an individual;

      (2) a subsidy;

      (3) a loan;

      (4) a loan guarantee;

      (5) insurance;

      (6) grants made by the State higher education system, the capital budget, the Department of Transportation, or the Maryland Technology Development Corporation;

      (7) business development grants made by the Department of Commerce; or

      (8) any State funding that is required annually and is calculated through a formula set in statute.

  (5) "Grant application form" means a grant application template and related materials required to be submitted by grant applicants, including:

    (i) required organizational materials; and

    (ii) proposed budget categories and line items.

  (6) "Uniform Guidance" means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200.

(b)

  (1) In order to improve efficiency, streamline and reduce redundant processes, reduce paperwork and administrative burdens on both granting agencies and grant recipients, and facilitate development and implementation of a statewide centralized grants management and accountability system, the Council shall study and make recommendations to the Department regarding the entire grants life cycle, including:

    (i) the creation of the following materials for use by grant-making agencies, grant applicants, and grant recipients in the State:

      (1) a uniform grant application form;

      (2) uniform financial controls and reporting requirements for grant recipients; and

      (3) uniform performance progress reporting requirements for grant recipients;

    (ii) regulations adopting each part of the Uniform Guidance, with appropriate modifications for its application to grant-making entities in the State, including modifications or variances based on the scope or size of particular grant programs, grant-making entities, or grantees;

    (iii) recommended timeframes and deadlines for the various tasks included in items (i) and (ii) of this paragraph;

    (iv) recommended deadlines for use and implementation by the various grant-making entities of the materials prepared in accordance with item (i) of this paragraph; and

    (v) recommended deadlines for grant-making entities to administer State and federal grants in accordance with the provisions of parts of Uniform Guidance as adopted by the Department by regulation.

  (2) In developing materials and recommendations under this subsection, the Council shall:

    (i) solicit the input of diverse stakeholders, including grant-making agencies and organizations representing local governments, grant professionals, experts in nonprofit accounting and auditing, and nonprofit service providers; and

    (ii) establish one or more issue working groups, composed of stakeholders representing diverse backgrounds appropriate to the charge of each workgroup, and also reflecting the demographic diversity of the State and the diversity of grant programs and grant recipients, including arts, history, and social service, to participate in and facilitate the process of developing recommendations.

(c) On or before July 1, 2027, the Council shall submit a report on its full recommendations as required by subsection (b)(1) of this section to the Department and the General Assembly, in accordance with Sec. 2-1257 of the State Government Article.

(d) On or before October 1, 2020, each State grant-making agency shall appoint a Chief Accountability Officer who shall:

  (1) serve as a liaison to the Council and the Department; and

  (2) be responsible for the agency's representation and participation in the process established under this section.

(e) The Department shall provide technical assistance and interpretations of policy requirements in order to ensure the effective and efficient implementation of this section.

#### Section 2-211

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Grant" means a legal instrument of financial assistance between a State grant-making entity and a nonprofit organization exempt from taxation under Sec. 501(c) of the Internal Revenue Code that is:

      (1) used to enter into a relationship the principal purpose of which is to transfer anything of value from the State grant-making entity to the grant recipient to carry out a public purpose authorized by law and not to acquire property or services for the direct benefit or use of the State grant-making entity;

      (2) used to provide for one or more payments in reimbursement for services or other performance under the agreement on a scheduled or other incremental basis;

      (3) distinguished from a cooperative agreement in that it does not provide for substantial involvement between the State grant-making entity and the grant recipient in carrying out the activity contemplated by the award; and

      (4) executed, renewed, or extended on or after June 1, 2023.

    (ii) "Grant" does not include an instrument that provides only:

      (1) direct government cash assistance to an individual;

      (2) a subsidy;

      (3) a loan;

      (4) a loan guarantee;

      (5) insurance; or

      (6) State funding that is required annually and is calculated through a formula set in statute.

  (3) "Payment" includes all required processing and authorization by the Comptroller, as provided under State regulations.

  (4) "Proper invoice" means a bill, a written document, or an electronic transmission readable by the State grant-making entity, provided by a grant recipient, that:

    (i) requests an amount that is due and payable by law under a written grant agreement; and

    (ii) meets the requirements of subsection (e) of this section.

(b) This section does not apply to grants:

  (1) made by a unit in the Judicial Branch of State government; or

  (2) funded from general obligation bond proceeds or from a General Fund capital appropriation to the Board of Public Works.

(c) It is the policy of the State to make a payment under a grant agreement within 37 days after:

  (1) the day on which the payment becomes due under the grant agreement; or

  (2) if later, the day on which the State grant-making entity receives a proper invoice.

(d)

  (1) Except as provided in paragraph (3) of this subsection, a grant-making entity shall be liable for interest that shall accrue at the rate of 9% a year on any amount:

    (i) that is due and payable by law and under a written grant agreement; and

    (ii) for which the grant-making entity has received, and failed to submit to the Comptroller within 30 days of its receipt, a proper invoice.

  (2) Interest shall accrue beginning on the 38th day after the day on which the State grant-making entity receives a proper invoice.

  (3) A State grant-making entity is not liable for interest:

    (i) unless within 30 days after the date on the State's check for the amount on which the interest accrued, the grant recipient submits an invoice for the interest;

    (ii) if the State grant-making entity has initiated legal proceedings to dispute the amount owed to the grant recipient;

    (iii) accruing more than 1 year after the 31st day after the State grant-making entity receives an invoice; or

    (iv) on an amount that represents unpaid interest.

  (4) Interest for which a State grant-making entity is liable under this subsection:

    (i) shall be paid from the State grant-making entity's operating budget; and

    (ii) may not be paid from funds appropriated to fund a grant.

(e) A proper invoice, required as payment documentation, shall include without error:

  (1) the grant recipient's federal employer identification number or Social Security number;

  (2) the grant agreement identification number or another adequate description of the grant agreement; and

  (3) any documentation required by regulation or the grant agreement.

(f) For the purposes of determining a payment due date and the date on which interest will begin to accrue if a payment is late, an invoice shall be deemed to be received:

  (1) for invoices that are mailed, when a proper invoice is received by the State grant-making entity, as of the date the State grant-making entity annotates the invoice with the date and time of receipt; or

  (2) for invoices electronically transmitted, on the date the transmission is received by the State grant-making entity, or the next business day if received after 5 p.m.

(g)

  (1) On receipt of an invoice, a State grant-making entity shall:

    (i) mark the invoice with the date the invoice was received; and

    (ii) review the invoice as soon as practicable to determine whether the invoice is a proper invoice.

  (2) If the State grant-making entity determines that the invoice is a proper invoice and submits the invoice to the Comptroller, the Comptroller shall make payment within 5 business days.

  (3)

    (i) If the State grant-making entity determines that the invoice is not a proper invoice, the State grant-making entity shall notify the grant recipient of all defects that prevent processing and specify all reasons why the invoice is not proper within 2 business days after the determination.

    (ii) It is the responsibility of the grant recipient to submit a corrected invoice.

  (4) State grant-making entities:

    (i) may use media that produce tangible recordings of information to expedite the payment process, rather than delaying the process by requiring original paper documents; and

    (ii) shall provide adequate safeguards and controls to ensure the integrity of the data and to prevent duplicate processing.

  (5) Failure by a State grant-making entity to comply with the procedural requirements of this subsection does not constitute a late payment.

  (6) This section does not create liability on the Comptroller for interest accrued on a late payment.

### Subtitle 3. Facsimile Signatures and Seals

#### Section 2-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Authorized officer" means any official of the State or any of its political subdivisions whose signature to a public security or instrument of payment is required or permitted.

(c) "Facsimile signature" means a reproduction by engraving, imprinting, stamping, or other means of the manual signature of any authorized officer.

(d) "Instrument of payment" means a check, draft, warrant, or order for the payment, delivery, or transfer of funds.

(e) "Public security" means a bond, note, certificate of indebtedness, or other obligation for the payment of money, issued by the State or by any of its political subdivisions.

(f) "State" means the State or any of its departments, agencies, public bodies, or other instrumentalities.

#### Section 2-302

This subtitle shall be construed to effectuate its general purpose to make uniform the law of those states that enact it.

#### Section 2-303

(a) Any authorized officer, after filing with the Secretary of State the manual signature of the authorized officer certified under oath, may execute or cause to be executed with a facsimile signature instead of a manual signature:

  (1) any public security, if the signature of at least 1 authorized officer required or permitted to be placed on the public security is manually subscribed; and

  (2) any instrument of payment.

(b) If a public security is required to be manually signed by a trustee, issuing agent, fiscal agent, registrar, or other agent or custodian, any other signature required or permitted to be placed on the public security may be a facsimile signature.

(c) Upon compliance with this subtitle by the authorized officer, the facsimile signature of the authorized officer has the same legal effect as the manual signature of the authorized officer.

#### Section 2-304

(a) When the seal of the State or of any of its political subdivisions is required in the execution of a public security or instrument of payment, the authorized officer may cause the seal to be printed, engraved, stamped, or otherwise placed in facsimile on the public security or instrument of payment.

(b) The facsimile seal has the same legal effect as the impression of the seal.

#### Section 2-305

(a) A person may not use, with intent to defraud, on a public security or an instrument of payment:

  (1) a facsimile signature, or any reproduction of it, of any authorized officer; or

  (2) a facsimile seal, or any reproduction of it, of the State or of any of its political subdivisions.

(b) A person who violates any provision of this section is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.

#### Section 2-306

This subtitle may be cited as the "Maryland Uniform Facsimile Signature of Public Officials Act".

### Subtitle 4. Water and Sewerage Systems

#### Section 2-401

(a) In this subtitle the following words have the meanings indicated.

(b) "Annual operating costs" include the cost of:

  (1) the production, treatment, pumping, storage, transmission, and distribution of water and the maintenance and repair of equipment associated with these functions;

  (2) the collection, pumping, transmission, and treatment of wastewater, and the maintenance and repair of equipment associated with these functions;

  (3) administrative overhead;

  (4) debt service;

  (5) depreciation; and

  (6) servicing customer accounts.

(c) "Lateral system construction costs" include:

  (1) any cost necessary to plan, design, acquire, construct, inspect, test, and put into operation the lateral system to serve a State facility; and

  (2) any indirect cost incurred by the local jurisdiction that is necessary to construct water and sewer lines.

#### Section 2-402

(a) The State shall pay its share of:

  (1) the annual operating costs of furnishing water and sewer service to any State facility; and

  (2) the lateral system construction costs associated with the installation of any water or sewer line that directly serves the State facility.

(b) The State shall pay the cost of expanding a water or sewage treatment facility if the expansion is necessitated by the use of the facility by the State. However, the amount the State pays may not exceed the cost of the capacity required by the State.

#### Section 2-403

The State shall pay any assessment, charge, or fee that is:

(1) levied by the local jurisdiction in which the State facility is located; and

(2) designated as the State's share of annual operating costs or lateral system construction costs.

#### Section 2-404

(a) If the State has agreed to pay the costs set out in Sec. 2-402 of this subtitle and any additional construction costs associated with the connection, the State may connect a State facility, regardless of its location, to a publicly owned utility system.

(b) If an existing publicly owned utility system is inadequate to handle proposed State utility needs, the State shall pay all costs that are:

  (1) associated with the expansion of the publicly owned utility system to meet the needs of the State; and

  (2) in excess of available federal funds.

(c) Before connecting to any publicly owned utility system, the State shall:

  (1) coordinate with the owner of the publicly owned utility system; and

  (2) consider any existing master plan in establishing the fiscal obligation of the State under this section.

(d)

  (1) After determining the need of the State for water or sewerage capacity, the State shall provide the information to the appropriate local jurisdictions.

  (2) The local jurisdictions shall include State facility needs in developing their master plans for water and sewerage systems.

### Subtitle 5. Facilities for Handicapped

#### Section 2-501

(a) In this subtitle the following words have the meanings indicated.

(b) "Facility for handicapped individuals" includes any door, elevator, handrail, ramp, specially treated surface, or similar design, convenience, or device that facilitates the health, safety, or comfort of a handicapped individual.

(c) "Handicapped individual" means an individual with a measurable limitation of mobility caused by disease, trauma, or congenital defect.

(d)

  (1) "Public building" means a building, structure, or improved area that is:

    (i) owned by the State or any political subdivision of the State; or

    (ii) constructed for lease by the State or a political subdivision of the State.

  (2) "Public building" includes:

    (i) an educational facility constructed with public funds or owned or operated by the State or a political subdivision of the State;

    (ii) a public mass transportation accommodation, such as a terminal or station, that is supported by public funds; and

    (iii) an improvement of a public area used for gathering or amusement, including a public park, recreation center, or the like.

#### Section 2-502

The General Assembly finds that public buildings that lack facilities for handicapped individuals:

(1) create a substantial risk of death or injury to handicapped individuals and others in both normal and emergency conditions; and

(2) impair the full use and enjoyment of the public buildings by handicapped individuals for education, employment, recreation, training, or treatment.

#### Section 2-503

The design of any public building by the State or a political subdivision of the State is governed by this subtitle.

#### Section 2-504

Plans and specifications for the construction of any public building, other than a building to be used as a penal institution, shall provide for facilities for handicapped individuals.

#### Section 2-505

(a) Except as otherwise provided in subsection (b) of this section, if curbs or sidewalks at the intersection of 2 or more streets or roads are constructed or reconstructed by the State Highway Administration, by a political subdivision, or by a private contractor for dedication to a political subdivision, the curbs or sidewalks shall have ramps or curb cuts:

  (1) graded onto the crosswalks of the intersection;

  (2) at least 40 inches wide; and

  (3) constructed to allow reasonable access to the crosswalks by physically handicapped individuals.

(b) Ramps or curb cuts are not required under this section if, for a particular intersection outside Baltimore City, the State Highway Administration determines or, for a particular intersection in Baltimore City, the Baltimore City Department of Public Works determines that:

  (1) ramps or curb cuts would be contrary to public safety;

  (2) the cost of ramps or curb cuts would be too great considering the need for them or their probable use; or

  (3) the sparsity of population, the existence of other ways, or other factors show the lack of a need for ramps or curb cuts.

(c) Nothing in this section may be construed to prevent the State Highway Administration from certifying any project described in this section for the purpose of determining statewide eligibility for federal assistance.

#### Section 2-506

Braille numbers or raised print numbers that indicate floors or levels shall be installed on the control panels in each elevator located in a public building.

#### Section 2-507

(a) As provided in the State budget, the Secretary of General Services shall provide, in central locations in units of the State and local government and other public facilities jointly recommended by the Secretary of Health and the State Superintendent of Schools, teletypewriters for the use of deaf individuals. These locations shall provide access to emergency police, fire, and rescue services.

(b) The teletypewriters shall be connected electronically so as to provide a means of communication between deaf individuals and the offices of major public and private facilities equipped with similar machines within a toll-free telephone district.

(c) Whenever a unit of the State or a local government gives out conventional public service telephone numbers to the public on written material, it shall also give out corresponding teletypewriter numbers on the written material. The teletypewriter numbers may be included at the time of stock replenishment.

#### Section 2-508

In any place to which this subtitle applies, any toilet facility, ramp, building entrance, drinking fountain, parking, or walk that is usable by handicapped individuals shall be marked with a suitable symbol.

#### Section 2-509

(a) The Board of Public Works, through the Department of General Services, shall publish minimum standards for facilities for handicapped individuals in public buildings. The standards shall conform to American Standards Association specification A 117.1-1961, as modified by the Department of General Services.

(b) The standards may not require facilities for handicapped individuals in any part of a public building that is not open to or used by the general working force or the general public.

(c) The appropriate contracting authority shall determine whether the plans and specifications for any public building built by the State, a political subdivision of the State, or a public authority meet the standards adopted under this section.

(d) The standards shall be filed with the Secretary of State.

#### Section 2-510

(a) The Department of General Services is responsible for the enforcement of this subtitle if:

  (1) any State capital nonschool funds are used; or

  (2) construction is on State-owned land.

(b) The governing body of a political subdivision is responsible for the enforcement of this subtitle if:

  (1) construction is not on State-owned land;

  (2) funds of the political subdivision are used; and

  (3) no State funds are used, except for State funds for school construction.

#### Section 2-511

This subtitle may be cited as the "Maryland Facilities for the Handicapped Act".

### Subtitle 6. Securities

#### Section 2-601

Each officer and unit of the State government shall send to the Treasurer, for inventory and safekeeping, each certificate of stock or other security certificate that the officer or unit holds.

#### Section 2-602

(a) The Treasurer shall deposit in a box or vault as provided in subsection (b) of this section:

  (1) all of the physical securities that the State owns; and

  (2) all of the physical securities that, by State law, the Treasurer holds, in trust or otherwise, for a corporation or individual.

(b)

  (1) With the approval of the Board of Public Works, the Treasurer shall procure a box or vault.

  (2) The box or vault shall be located in the offices of the Treasurer.

  (3) Each box or vault in which securities are kept shall be built so that 2 different keys are needed to gain access to the securities.

  (4) The Comptroller and the Treasurer each shall have 1 of these keys.

  (5) Access to a box or vault in which physical securities are kept under this section shall be permitted only:

    (i) when the Governor, the Comptroller, the Chief Deputy Comptroller, or a Deputy Comptroller accompanies the Treasurer; or

    (ii) if access is needed and the Treasurer cannot be present:

      (1) when the Governor, the Comptroller, the Chief Deputy Comptroller, or a Deputy Comptroller accompanies the Chief Deputy Treasurer; or

      (2) when the Governor, the Comptroller, or the Chief Deputy Comptroller accompanies a Deputy Treasurer.

(c) The Treasurer shall determine which physical securities are deposited or held in each box or vault.

#### Section 2-602.1

The Treasurer shall maintain all securities other than physical securities with:

(1) any institution incorporated under the laws of the State as a State bank, trust company, or savings bank;

(2) any national banking association that has its principal office in the State; or

(3) any trust company, as defined in Sec. 1-101 of the Estates and Trusts Article.

#### Section 2-603

(a) Subject to the limitations in this section and notwithstanding any other provision of law, the Treasurer may lend to a bank or securities broker any security that is owned by the State and is in the custody of the Treasurer.

(b)

  (1) The Treasurer and the bank or broker to whom a loan is to be made under this section shall make a written contract that governs the loan.

  (2) The contract shall set forth:

    (i) the term of the loan;

    (ii) the consideration for the loan;

    (iii) any provisions that the Treasurer determines are needed to protect the interests of the State; and

    (iv) any other conditions of the loan.

(c) Consideration for a loan under this section may not be less than the current market lending rate for the securities on loan.

(d)

  (1) The bank or broker to whom a loan is to be made under this section shall deposit with the Treasurer collateral with a value that equals or exceeds the value of the securities on loan.

  (2) Collateral that may be used under this section shall be:

    (i) money; or

    (ii) a security in which the Treasurer may invest under Sec. 6-222 or Sec. 6-223 of this article.

(e)

  (1) The Treasurer may enter into a contractual agreement with a financial institution to lend, as agent, securities owned by the State and in the custody of the Treasurer.

  (2) The financial institution shall provide security or indemnification acceptable to the Treasurer.

#### Section 2-604

(a) Whenever a certificate of stock that the State owns and holds has been lost or misplaced, the Treasurer, at the direction of the Board of Public Works, may obtain a duplicate certificate.

(b) The State shall indemnify the corporation that issues the duplicate certificate.

### Subtitle 7. Funding for Ethnic Affairs Units

#### Section 2-701

In this subtitle, "ethnic affairs unit" means:

(1) the Commission on African American History and Culture;

(2) the Commission on Indian Affairs; and

(3) the Office of Asian-Pacific American Affairs.

#### Section 2-702

(a) In order to become more financially self-sufficient, an ethnic affairs unit:

  (1) may receive funds from any person or organization; and

  (2) may not receive funds either directly or indirectly from the use of any gaming device or raised through a gaming event or activity.

(b) An ethnic affairs unit receiving funds under this section shall be subject to audit by the Legislative Auditor as provided in Sec. 2-1220 of the State Government Article.

### Subtitle 8. Changing Facilities

#### Section 2-801

(a) In this subtitle the following words have the meanings indicated.

(b) "Changing facility" means a table or other device suitable for changing the diaper of a child under the age of 4 years and providing personal care for an adult.

(c)

  (1) "Public building" means a building, a structure, or an improved area that is:

    (i) owned by the State or a political subdivision of the State; or

    (ii) constructed for lease by the State or a political subdivision of the State.

  (2) "Public building" includes:

    (i) a public mass transportation accommodation, such as a terminal or station, that is supported by public funds; and

    (ii) an improvement of a public area used for gathering or amusement, including a public park or recreation center.

  (3) "Public building" does not include a facility that is primarily used to provide primary or secondary education.

(d) "Public restroom" means a sanitary facility available to the general public that contains at least one toilet or urinal.

(e) "Substantial renovation" means a construction or renovation project with an estimated cost of $30,000 or more.

#### Section 2-802

(a) Except as provided in subsection (c) of this section, in a public building, a changing facility suitable for changing the diaper of a child under the age of 4 years shall be installed in at least one public restroom or, if the restrooms are divided by gender, in at least one men's public restroom and one women's public restroom if:

  (1) the public building is constructed on or after October 1, 2019;

  (2) a public restroom is constructed in a public building on or after October 1, 2019; or

  (3) a public restroom in a public building undergoes substantial renovation on or after October 1, 2019.

(b) Except as provided in subsection (c) of this section, in a public building, a changing facility shall be installed in at least one public restroom or, if the restrooms are divided by gender, in at least one men's public restroom and one women's public restroom if:

  (1) the public building is constructed on or after October 1, 2022;

  (2) the public restroom is constructed in a public building on or after October 1, 2022; or

  (3) a public restroom in a public building undergoes substantial renovation on or after October 1, 2022.

(c) A changing facility is not required to be installed under this section if a building inspector that has jurisdiction over the public building determines that the installation of a changing facility:

  (1) is not practicable; or

  (2) would result in a failure to comply with applicable building standards governing the right of access for individuals with disabilities.

(d)

  (1) The Board of Public Works, through the Department of General Services, shall adopt standards that a changing facility must meet in order to comply with the requirements of this section.

  (2) The standards shall be filed with the Secretary of State.

#### Section 2-803

(a) The Department of General Services, the University System of Maryland, and the Department of Transportation are responsible for the enforcement of this subtitle in the public buildings under each entity's control if:

  (1) any State capital nonschool funds are used; or

  (2) construction is on State-owned land.

(b) The governing body of a political subdivision is responsible for the enforcement of this subtitle if:

  (1) construction is not on State-owned land;

  (2) funds of the political subdivision are used; and

  (3) no State funds are used, except for State funds for school construction.

(c)

  (1) An entity responsible for the enforcement of this subtitle shall report the location of a changing facility to 2-1-1 Maryland, Inc., when the changing facility is installed.

  (2) 2-1-1 Maryland, Inc., shall maintain on its website a list containing all the locations of the changing facilities reported under paragraph (1) of this subsection.

### Subtitle 9. State Contracts

#### Section 2-901

(a) In this section, "State contract" means any agreement entered into by the State.

(a-1) This section does not apply to:

  (1) a State contract relating to the purchase, redevelopment, or operation of a racing facility or training facility site as those terms are defined under Sec. 10-601 of the Economic Development Article; or

  (2) a State contract entered into by the Office of International Trade in the Department of Commerce relating to the development of international business activities and opportunities authorized under Sec. 3-303 of the Economic Development Article.

(b) Except as required by State or federal law, a State contract may not include:

  (1) a provision that requires the State to indemnify, defend, or hold harmless another person without an appropriation of State funds for that purpose;

  (2) a provision by which the State agrees to binding arbitration or any other binding extrajudicial dispute resolution process;

  (3) a provision that names a jurisdiction or venue for any action or dispute against the State other than a court of proper jurisdiction in the State;

  (4) a provision that requires the State to agree to limit the liability for any direct loss to the State for bodily injury, death, or damage to real property or tangible personal property of the State caused by the negligence, intentional or willful misconduct, fraudulent act, recklessness, or other tortious conduct of a person or a person's employees or agents or a provision that would otherwise impose an indemnification obligation on the State;

  (5) a provision that requires the State to be bound by a term or condition that:

    (i) is unknown to the State at the time of signing a contract;

    (ii) may be unilaterally changed by the other party; or

    (iii) is electronically accepted by a State employee without authority;

  (6) a provision that provides for a person other than the Attorney General of Maryland to serve as legal counsel for the State, unless provided under Sec. 6-106 of the State Government Article;

  (7) a provision that is inconsistent with the State's obligations under Title 3 or 4 of the General Provisions Article;

  (8) a provision prohibited under Sec. 7-237 of this article;

  (9) a provision for automatic renewal that obligates the State to allocate funding in subsequent fiscal years; or

  (10) a provision that limits the State's ability to recover the difference in the cost of a replacement contractor to perform the services not performed by the original contractor, to the extent that the sum of the amount paid to the replacement contractor and the amount paid to the original contractor exceed the costs provided for in the contract with the original contractor.

(c) If a State contract contains a provision listed under subsection (b) of this section, the provision is void ab initio and the contract containing that provision shall be enforceable as if it did not contain the provision.

(d) A State contract that contains a provision listed under subsection (b) of this section shall be governed by and construed in accordance with State law, notwithstanding any term or condition to the contrary in the contract.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)