Title 2. General Provisions — Subtitle 2. Gifts and Grants
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 2-201 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–201LinkCopy Citation
(a)
In this section, “gift” has the meaning stated in § 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.
Md. Code Ann., State Fin. & Proc. § 2-202 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–202LinkCopy Citation
(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 § 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.
Md. Code Ann., State Fin. & Proc. § 2-203 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–203LinkCopy Citation
(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.
Md. Code Ann., State Fin. & Proc. § 2-205 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–205LinkCopy Citation
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.
Md. Code Ann., State Fin. & Proc. § 2-206 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–206LinkCopy Citation
(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 § 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 § 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 § 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 § 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.
Md. Code Ann., State Fin. & Proc. § 2-207 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–207LinkCopy Citation
(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 § 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 § 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 § 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 § 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 § 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.
Md. Code Ann., State Fin. & Proc. § 2-207.1 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–207.1LinkCopy Citation
(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 § 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 § 13–416 of the Economic Development Article.
(5)
“Fund” means the Rural Maryland Capacity Building Fund.
(6)
“Rural community” has the meaning stated in § 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 § 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 § 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 § 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.
Md. Code Ann., State Fin. & Proc. § 2-208 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–208LinkCopy Citation
(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 § 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.
Md. Code Ann., State Fin. & Proc. § 2-209 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–209LinkCopy Citation
(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 § 2–210 of this subtitle; and
(2)
monitor and report to the Department of Budget and Management on the State’s progress towards implementing § 2–210 of this subtitle.
Md. Code Ann., State Fin. & Proc. § 2-210 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–210LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Council” means the Maryland Efficient Grant Application Council established under § 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 § 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.
Md. Code Ann., State Fin. & Proc. § 2-211 (2026)
Title 2. General Provisions
Subtitle 2. Gifts and Grants
§ 2–211LinkCopy Citation
(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 § 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.