State Finance and Procurement (GSF) — Title 3. Budget and Management

The Secretary serves at the pleasure of the Governor and is responsible directly to the Governor. The Secretary shall advise the Governor on all matters assigned to the Department and is responsible for carrying out the Governor’s policies on those matters.

The Secretary is responsible for the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient administration of the Department. The Secretary may establish, reorganize, or abolish areas of responsibility in the Department as necessary to fulfill the duties assigned to the Secretary.

The Secretary is responsible for establishing policy to be followed by the units in the Department.

With the approval of the Governor, the Secretary shall appoint a Deputy Secretary.

The Deputy Secretary:

The Secretary shall appoint 1 or more budget analysts.

The budget analysts shall:

The Secretary may employ a staff in accordance with the State budget.

Each assistant secretary and professional consultant is in the executive service, management service, or is a special appointment in the State Personnel Management System and is appointed by and serves at the pleasure of the Secretary.

Except as provided in this section or otherwise by law, the Secretary shall appoint and remove all other staff in accordance with the provisions of the State Personnel and Pensions Article.

The appointment or removal of staff of any unit in the Department is subject to the approval of the Secretary.

The Secretary is responsible for the comprehensive planning of programs and services of the Department.

The Secretary shall review the plans of the units in the Department and may approve or disapprove any of the plans.

With the advice of the Secretary, the Attorney General shall assign at least 1 assistant Attorney General to the Central Collection Unit.

At the request of the Governor, the Attorney General shall assign to the Department:

The Attorney General shall designate 1 of the assistant Attorneys General assigned to the Department as counsel to the Department. After the Attorney General designates the counsel to the Department, the Attorney General may not reassign the counsel without consulting the Secretary.

The counsel may have no duty other than to give the legal aid, advice, and counsel required by the Secretary or any other official of the Department, to supervise the other assistant Attorneys General assigned to the Department and its Central Collection Unit, and to perform for the Department the duties that the Attorney General assigns. The counsel shall perform these duties subject to the control and supervision of the Attorney General.

In this section the following words have the meanings indicated.

“Historically black colleges and universities” means Bowie State University, Coppin State University, Morgan State University, and University of Maryland Eastern Shore.

“Interagency agreement” means an agreement between an agency or unit of the Executive Branch of State government and a public institution of higher education that:

whether the agreement is necessary and should continue;

whether the services can be provided more cost effectively by the agency or unit or through a competitive procurement; and

whether the agreement is being utilized due to the agency’s or unit’s inability to recruit or retain positions and, if so, whether an annual salary review should be conducted to address recruitment or retention issues.

Subject to paragraphs (2) and (3) of this subsection, on or before December 1 each year, the Department shall report a summary of the findings of the review required under subsection (b) of this section to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article.

In each report required under paragraph (1) of this subsection, the Department shall provide the following information:

In each report required under paragraph (1) of this subsection, the Department shall provide information on interagency agreements with historically black colleges and universities, including:

All employees and personnel of the Central Collection Unit shall:

Except for employees in the Executive Pay Plan and any assistant Attorneys General assigned to the Central Collection Unit, a management service or special appointment of the skilled service or the professional service employee of the Central Collection Unit may not be permanently removed except for cause and until written charges have been filed and a hearing has been conducted in accordance with Title 10, Subtitle 2 of the State Government Article. This paragraph does not apply to the removal of a management service or special appointment employee because of a layoff that resulted from:

The Secretary may establish a performance incentive program to provide pay incentives for employees of the Central Collection Unit.

Pay incentives provided to employees under this subsection shall be paid from the Central Collection Fund established under § 3–306 of this subtitle as provided in the State budget.

Pay incentives may not be provided under this subsection if:

Except as otherwise provided in subsections (b) and (d) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central Collection Unit is responsible for the collection of each delinquent account or other debt that is owed to the State or any of its officials or units.

For the purposes of this subtitle, a community college or board of trustees for a community college established or operating under Title 16 of the Education Article is a unit of the State.

any taxes;

any child support payment that is owed under § 5–308 of the Human Services Article;

any unemployment insurance contribution or overpayment;

any fine;

any court costs;

any forfeiture on bond;

any money that is owed as a result of a default on a loan that the Department of Commerce or the Department of Housing and Community Development has made or insured;

any money that is owed under Title 9, Subtitles 2, 3, and 4 and Title 20 of the Insurance Article;

any money that is owed for unpaid video tolls and associated civil penalties under § 21–1414 of the Transportation Article under a delinquent account associated with a person residing outside the State; or

any money that is owed under a delinquent account for unpaid video tolls and associated civil penalties and is recalled by the Maryland Transportation Authority under § 21–1414(h) of the Transportation Article.

adopts a resolution appointing the Central Collection Unit as the collector of delinquent accounts or other debt; and

submits the resolution to the Central Collection Unit.

for all debts or claims collected on or after June 1, 1992:

waive or reduce any fee assessed under paragraph (2) of this subsection;

certify a debt or claim and the debtor responsible for the debt or claim to:

if the Board of Public Works determines the federal government to be delinquent in federal funds owed to the State under § 10–208 of this article, in consultation with the Attorney General:

Notwithstanding the provisions of § 9–602 of the Criminal Law Article, and subject to paragraphs (2) through (5) of this subsection, the Central Collection Unit may manage the monitoring and recording of incoming telephone calls:

Any monitored or recorded telephone call shall contain a notice to the telephone caller that “Your call may be recorded or monitored for training and quality control purposes”.

The Central Collection Unit may not record or monitor calls to or from a direct individual line of an employee of the Central Collection Unit.

The recording of an incoming telephone call to an employee of the Central Collection Unit may not be offered as evidence in a criminal or civil proceeding against any caller unless:

A recording of a telephone call may not be retained by the Central Collection Unit for longer than 60 days, unless the recording is being used or is to be used:

the full name of the debtor and any other name known to be used by the debtor;

the Social Security number of the debtor; and

the amount of the debt.

the debtor has won a prize to be paid by the State Lottery and Gaming Control Agency;

the State Lottery and Gaming Control Agency has received notice from the Central Collection Unit of the debtor’s debt or claim owed to the State in the specified amount;

State law requires the State Lottery and Gaming Control Agency to withhold the prize and to pay it towards the debtor’s debt or claim;

the debtor may appeal to the Central Collection Unit if the debtor disputes the existence or the amount of the debt or claim; and

if an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency will transfer the prize or the part of the prize that equals the amount of the debt or claim to the Central Collection Unit.

The State Lottery and Gaming Control Agency shall withhold all or part of the prize up to the amount of the debt or claim owed to the State until the Central Collection Unit notifies the State Lottery and Gaming Control Agency to whom the withheld prize money is to be paid.

The State Lottery and Gaming Control Agency shall honor lottery prize interception requests in the following order:

On receipt of a notice from the State Lottery and Gaming Control Agency, a debtor who disputes the existence or amount of the debt or claim may appeal the proposed transfer in accordance with the provisions of the Administrative Procedure Act, Title 10, Subtitle 2 of the State Government Article.

If an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency shall transfer the amount of the prize withheld to the Central Collection Unit.

If the debtor appeals the proposed transfer, after a hearing the Central Collection Unit shall notify the State Lottery and Gaming Control Agency that the withheld prize shall be:

the full name of the debtor and any other name known to be used by the debtor;

the Social Security number of the debtor; and

the amount of the debt.

the debtor has won a prize to be paid by the video lottery operator;

the video lottery operator has received notice from the Central Collection Unit of the debtor’s debt or claim owed to the State in the specified amount;

State law requires the video lottery operator to withhold the prize and to pay it toward the debtor’s debt or claim;

the debtor may appeal to the Central Collection Unit if the debtor disputes the existence or the amount of the debt or claim; and

if an appeal is not filed within 15 days after the date of the notice, the video lottery operator will transfer the prize or the part of the prize that equals the amount of the debt or claim to the Central Collection Unit.

The video lottery operator shall withhold all or part of the prize up to the amount of the debt or claim owed to the State.

The video lottery operator shall honor prize interception requests in the following order:

On receipt of a notice from the video lottery operator, a debtor who disputes the existence or amount of the debt or claim may appeal the proposed transfer in accordance with the provisions of the Administrative Procedure Act, Title 10, Subtitle 2 of the State Government Article.

If an appeal is not filed within 15 days after the date of the notice, the video lottery operator shall transfer the amount of the prize withheld to the Central Collection Unit.

If the debtor appeals the proposed transfer, after a hearing held in accordance with Title 10, Subtitle 2 of the State Government Article, the Central Collection Unit shall notify the video lottery operator that the withheld prize shall be:

standards for purchase by the Department of General Services of motor vehicles for State use; and

all leases or rentals of motor vehicles for use by officials or employees of any unit of the Executive Branch of the State government, other than any individual motor vehicle lease or rental made under the Standard State Travel Regulations.

To ensure economical and efficient use of motor vehicles by units of the Executive Branch of the State government, the Secretary shall adopt and enforce regulations to carry out the provisions of this subtitle.

The regulations adopted under this section shall apply to:

The regulations shall be directed to:

The regulations shall provide that, unless the Secretary determines on the basis of published criteria that the use of a State-owned motor vehicle is required for the efficient operation of a State program regardless of miles traveled, State-owned motor vehicles shall be allocated to those State employees accumulating the greatest mileage for official use.

the text of any regulations that have been adopted under this section and are currently in effect; and

a statement of any problems involved in ensuring compliance with this subtitle.

providing objective assessment of corrective actions; and

monitoring progress in the implementation of corrective actions.

four or more repeat audit findings; or

unsatisfactory audits.

as soon as practicable, a review of the timeline developed by the Executive Departmental Unit for the implementation of corrective actions for each recommendation to ensure that the timeline has achievable completion dates;

a review of resolution actions on each finding with a focus on repeat and significant findings to provide advice and support in assisting with the development of corrective actions;

performing sample tests of implemented corrective actions, as needed; and

monitoring progress of the implementation of corrective actions until the legislative auditors return to begin the next related fiscal compliance audit.

The Unit shall establish a specialized team to provide the direct assistance required under this section.

The specialized team established in paragraph (1) of this subsection may include current State employees, current contractual employees, and external contractors.

the recommendations of the Office of Legislative Audits;

the number of years that a repeat finding remains unresolved;

the projected completion date for resolution of a finding;

information on unresolved findings, including the reason a finding is unresolved; and

the progress of corrective actions that includes whether the finding is unresolved, in progress, or resolved.

Before an appropriation may be authorized for preliminary planning of a proposed capital project:

Before an appropriation may be authorized for construction of a proposed capital project:

This subsection applies only to capital projects that involve construction of permanent or long-time duration.

When the request for an appropriation for a capital project is submitted to the General Assembly, the unit of the State government that would receive the capital project or a State officer on behalf of the unit shall submit to the General Assembly:

design/build which involves a single solicitation to design and build the facility; or

“fast track” in which design and construction are implemented concurrently.

In this section the following words have the meanings indicated.

“High performance building” means a building that:

“Major renovation” means the renovation of a building where:

the State shall employ green building technologies when constructing or renovating a State building not subject to this section; and

high performance buildings shall meet the criteria and standards established under the “High Performance Green Building Program” adopted by the Maryland Green Building Council.

This subsection applies to:

Except as provided in subsections (d) and (e) of this section, if a capital project includes the construction or major renovation of a building that is 7,500 square feet or greater, the building shall be constructed or renovated to be a high performance building.

warehouse and storage facilities;

garages;

maintenance facilities;

transmitter buildings;

pumping stations; and

other similar types of buildings, as determined by the Department.

The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government or a community college to obtain a waiver from complying with subsection (c) of this section.

The waiver process shall:

In this section the following words have the meanings indicated.

“Commission” means the Maryland Commission on Public Art established under Title 4, Subtitle 6 of the Economic Development Article.

“Construction project” means the construction of a new building that is proposed to contain 15,000 or more square feet.

“Council” means the Maryland State Arts Council established under Title 4, Subtitle 5 of the Economic Development Article.

“Division” means the Division of Tourism, Film, and the Arts established under Title 4, Subtitle 1 of the Economic Development Article.

“Major renovation project” means the renovation of an existing building where:

This section applies to capital projects that are:

This section does not apply to the following types of unoccupied buildings:

the unit of State government that will be the primary user of the building;

the unit of State government responsible for project management of the building; and

the Division.

The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government to obtain a waiver from complying with this section.

The waiver process shall:

the contract price or an estimate of the cost of acquisition or construction;

an estimate of the operating and maintenance costs;

an estimate of the number of additional State positions that will be required as a result of the project;

an estimate of revenues likely to be received from the project; and

existing sources of funds or the need for additional sources of funds for construction, acquisition, and operation.

from general funds; or

with the approval of the Board of Public Works, from:

money appropriated to the Fund:

unspent proceeds of an enabling act allocated to the Fund by the Governor under § 8–129 of this article; or

the amount of an appropriation in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act that is in excess of the amount needed for a project included in the Act and that is allocated to the Fund by the Governor.

that is for a capital project to be owned by the State or a unit of the State government;

that was contained in a capital appropriation of an annual budget, in an annual general construction loan, or in an annual Maryland consolidated capital bond loan; and

all reasonable attempts to reduce the cost of the project have been made;

no practicable alternative exists for securing funding to complete the project; and

the requested additional funding does not increase the scope of the project.

Prior to seeking approval from the Board of Public Works, the Department of General Services and the Department of Budget and Management shall:

Each time an expenditure from the Fund is authorized by the Board of Public Works, the amount specified by the Board of Public Works may be transferred from the account to the appropriate annuity bond account to supplement the specified authorization.

appropriated to the Fund;

authorized for expenditure from the Fund; and

expended from the Fund.

a miscellaneous grant program;

a local House of Delegates initiative; or

a local Senate initiative.

Prior to the release of State funds for a capital project that meets the conditions of subsection (b) of this section, the Governor’s Office of Small, Minority, and Women Business Affairs shall:

In setting subgoals under this subsection, the Governor’s Office of Small, Minority, and Women Business Affairs shall consider the availability and capacity of minority business enterprises in Maryland and in the county where the project is located to fulfill the subgoal.

If the Governor’s Office of Small, Minority, and Women Business Affairs establishes minority business enterprise subgoals for the capital project, the recipient of the State funds shall:

The Governor’s Office of Small, Minority, and Women Business Affairs shall review a request for a waiver under paragraph (1)(ii) of this subsection and report the revised subgoals for the capital project to the Department.

On or before July 31 each year, the Department shall submit an annual report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the number of waivers granted for capital projects that meet the conditions of subsection (b) of this section in the prior fiscal year.

The report shall include:

“Performance measure” means a quantitative or qualitative indicator used to assess whether an agency is meeting its goals and objectives.

“Performance measure” includes the following:

the goals developed in the managing for results State comprehensive plan; and

the plan’s objectives and performance measures.

compatible with the managing for results State comprehensive plan; or

consistent with the agency’s mission if the goals identified in the managing for results State comprehensive plan do not apply to the agency.

a mission statement;

a description of the agency’s goals;

a description of the objectives and performance measures implemented at the program level to achieve the agency’s goals, including:

a discussion of the agency’s progress in meeting its goals and performance measures and any challenges the agency has faced in working toward its goals;

a description of the internal controls established to ensure reliability of the data collected for each performance measure; and

an identification of the customers and stakeholders served.

The Department shall provide a report to the Senate Budget and Taxation Committee and House Appropriations Committee in January of each year on the contents of the State comprehensive plan and the State’s progress toward the goals outlined in the plan.

The report shall include details on each agency’s progress.

The Senate Budget and Taxation Committee and House Appropriations Committee may hold hearings after receiving the report.

The first report shall be submitted on or before January 31, 2005 and shall include a presentation of the first managing for results State comprehensive plan.

There is a StateStat process that is managed by the Executive Branch.

StateStat is an accountability process that involves:

Each agency that participates in the StateStat process shall submit a strategic plan and performance measurement report to the Secretary as part of its annual budget submission.

The report submitted by each agency that participates in the StateStat process shall contain the information required in § 3–1002(c) of this subtitle.