# State Government (GSG) ## Title 9. Miscellaneous Executive Agencies ### Subtitle 1. State Lottery and Gaming Control Agency #### Section 9-101 (a) In this subtitle the following words have the meanings indicated. (b) "Agency" means the State Lottery and Gaming Control Agency. (c) "Commission" means the State Lottery and Gaming Control Commission. (d) "Director" means the Director of the Agency. (e) "Governmental unit" means: (1) an instrumentality of the State; (2) a county or municipal corporation of the State; or (3) an instrumentality of a county or municipal corporation of the State. (f) "Jackpot game" means a lottery game for which the top prize amount varies: (1) based on sales; and (2) if the prize was won in the preceding drawing. (g) "License" means a license issued by the Director to act as a licensed agent. (h) "Licensed agent" means a person or governmental unit licensed by the Director to act as a State lottery sales agent. (i) "Multijurisdictional game" means a lottery game offered by the Agency and: (1) any other political entity outside the State or outside the United States; or (2) any private licensee of a state or foreign nation. (j) (1) "State lottery" means the lottery established and operated under this subtitle. (2) "State lottery" includes a raffle conducted by the Agency. (k) "Subscription" means a method of playing a multijurisdictional or jackpot lottery game by which an individual submits to the Agency: (1) an application to play a game using the same game data for a specified number of consecutive drawings; and (2) payment for the drawings. #### Section 9-102 Another law that prohibits the sale of lottery tickets or shares or other acts relating to a lottery does not apply to the State lottery. #### Section 9-103 There is a State Lottery and Gaming Control Agency. #### Section 9-104 There is a State Lottery and Gaming Control Commission in the Agency. #### Section 9-105 (a) (1) The Commission consists of seven members appointed by the Governor with the advice and consent of the Senate. (2) The presiding officer of either house of the General Assembly may recommend to the Governor a list of individuals for appointment to the Commission. (b) (1) At the time of appointment, each member of the Commission shall be: (i) at least 25 years old; (ii) a resident of the State who has resided in the State for at least 5 years; (iii) a qualified voter of the State; (iv) an individual who has not been convicted of or granted probation before judgment for a serious crime or a crime that involves moral turpitude or gambling; and (v) knowledgeable and experienced in fiscal matters and shall have substantial experience: (1) as an executive with fiduciary responsibilities in charge of a large organization or foundation; (2) in an academic field relating to finance or economics; or (3) as an accountant, economist, or financial analyst, or as a professional in a similar profession relating to fiscal matters or economics. (2) A member of the Commission may not: (i) have a direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any gaming activities, including horse racing, video lottery terminals, table games, or lottery; (ii) have an official relationship to a person who holds a license under Subtitle 1A of this title; (iii) be an elected official of State or local government; (iv) receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities, including horse racing, video lottery terminals, table games, or lottery; or (v) have a beneficial interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of any independent consulting services in connection with any gaming establishment or gaming activity. (3) No more than five members may be of the same political party. (4) The members of the Commission shall reflect the geographic, racial, and gender makeup of the State. (5) A member of the Commission shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General Provisions Article. (c) (1) The term of a member is 5 years. (2) The terms of members are staggered as required by the terms provided for members of the Commission on October 1, 2012. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) 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. (5) A member may not serve for more than two full terms. (d) (1) Subject to the hearing requirements of this subsection, the Governor may remove a member for cause. (2) Before the Governor removes a member, the Governor shall give the member notice and an opportunity for a public hearing. (e) The Governor shall appoint one member of the Commission to serve as a liaison to the State Racing Commission established under Title 11 of the Business Regulation Article. (f) The Commission shall include at least one member who resides in a local jurisdiction in which a video lottery facility is located. #### Section 9-106 From among its members, the Commission annually shall elect a chairman. #### Section 9-107 (a) With the advice and consent of the Senate, the Governor shall appoint the Director of the Agency, who is the executive officer of the Agency and secretary of the Commission. (b) The Director serves at the pleasure of the Governor. (c) The Director must have the training and experience needed to direct the work of the Agency. (d) The Director shall devote full time to the duties of office and may not engage in another profession or occupation. (e) In addition to any duties set forth elsewhere in this subtitle, the Director shall have immediate supervision and direction over the Agency. (f) The Director is entitled to the salary provided in the State budget. #### Section 9-108 (a) (1) A majority of the full authorized membership of the Commission is a quorum. (2) The Commission may not act unless at least 4 members concur. (b) The Commission shall determine the times and places of its meetings. (c) (1) The secretary of the Commission promptly shall send the Governor a certified copy of the minutes of each meeting of the Commission. (2) The minutes shall include a copy of each regulation of the Agency that is adopted. (d) (1) Each member of the Commission is entitled to: (i) the salary provided in the budget of the Commission; and (ii) reimbursement for reasonable expenses: (1) incurred in the performance of the Commission member's duties; and (2) as provided in the budget of the Commission. (2) Each member of the Commission shall be paid biweekly. (3) Each member is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the budget of the Commission. (e) (1) With the advice of the Commission, the Director may employ deputy directors and other staff in accordance with the State budget. (2) Except as provided in paragraph (3) of this subsection or otherwise by law, the staff of the Commission is in the State Personnel Management System. (3) (i) Except as provided in subparagraph (ii) of this paragraph, a deputy director is in the executive service of the State Personnel Management System. (ii) A deputy director may be removed only for cause after being given notice and an opportunity for a hearing. (4) (i) With the approval of the Commission and in accordance with the State budget, the Director may set the compensation of an Agency employee in a position that: (1) is unique to the Agency; (2) requires specific skills or experience to perform the duties of the position; and (3) does not require the employee to perform functions that are comparable to functions performed in other units of the Executive Branch of State government. (ii) The Secretary of Budget and Management, in consultation with the Director, shall determine the positions for which the Director may set compensation under subparagraph (i) of this paragraph. (5) (i) The Governor shall include in the State budget sufficient money for the Commission to hire, develop, and organize a staff to perform the functions of the Commission. (ii) As deemed necessary by the Commission, the Commission shall hire experts including economists, gaming specialists, and lawyers. (iii) (1) The Commission shall contract with an outside consultant to provide continual analysis of the gaming industry both within and outside the State and support the licensing activities of the Commission and the Video Lottery Facility Location Commission. (2) The cost of the consultant required under this subparagraph may be divided proportionally among the video lottery operation licensees as determined by the Commission. #### Section 9-109 (a) In addition to the specific powers granted and duties imposed by this subtitle, the Commission has the powers and duties set forth in this section. (b) (1) The Commission shall conduct studies of the State lottery and gaming program to: (i) identify any defect in this subtitle, Subtitle 1A of this title, or the regulations of the Agency that may allow abuses in the operation and administration of the State lottery and gaming program or any evasion of this subtitle, Subtitle 1A of this title, or the regulations; (ii) guard against the use of this subtitle, Subtitle 1A of this title, and the regulations of the Agency as a means of conducting organized crime; (iii) ensure that the regulations of the Agency are proper and that this subtitle, Subtitle 1A of this title, and the regulations are administered to serve the purpose of this subtitle; and (iv) analyze the gaming industry within and outside the State to determine whether Maryland's gaming program is competitive and maximizing revenues for the State. (2) The Commission shall conduct studies of: (i) the operation and administration of similar laws in other states or countries; (ii) federal laws that may affect the operation of the State lottery or gaming activities; (iii) literature on lotteries and gaming activities, including problem gambling programs; and (iv) the reaction of citizens of the State to existing and potential features of the State lottery and gaming program. (c) (1) The Commission shall submit to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly the reports required under this subsection. (2) The Commission shall submit monthly a report that states the total State lottery and gaming revenues and the total prize disbursements and other expenses for the preceding month. (3) The Commission shall submit annually a report that states the total State lottery and gaming revenues and the total prize disbursements and other expenses for the preceding year. (4) The Commission shall submit a report whenever a matter requires an immediate change in a State law to: (i) prevent an abuse or evasion of this subtitle, Subtitle 1A of this title, or a regulation of the Agency; or (ii) rectify an undesirable condition in the operation or administration of the State lottery and gaming program. #### Section 9-110 (a) With the approval of the Commission, the Director may adopt regulations of the Agency. (b) The regulations of the Agency shall provide for: (1) all matters that are necessary or desirable for the efficient and economical operation and administration of the State lottery; and (2) the convenience of buyers of State lottery tickets and shares and of the holders of a winning ticket or share. #### Section 9-111 (a) The Director shall: (1) supervise and administer the State lottery in accordance with the regulations of the Agency and this subtitle; (2) confer, at least once a month, with the Commission on the operation and administration of the State lottery; (3) make available to the Commission any record or other information of the Agency that the Commission requests; (4) advise the Commission about any change needed to improve the operation or administration of the State lottery; (5) with the approval of the Commission and subject to Division II of the State Finance and Procurement Article, contract for: (i) the operation of all or any part of the State lottery; and (ii) the use of space, for advertising or promotional purposes, on tickets or publications distributed by the Agency, if, in the Director's discretion, the action is fiscally prudent and in the best interest of the State lottery; (6) submit monthly to the Comptroller and to the Commission a certified statement of the total State lottery revenues and the total prize disbursements and other expenses for the preceding month; and (7) with the approval of the Commission, contract for the promotion of the State lottery and enter into private sector cooperative marketing project agreements as provided for in Sec. 11-203(a)(1)(xiii) of the State Finance and Procurement Article. (b) With the approval of the Commission and the Legislative Policy Committee, the Director may enter into agreements to operate multijurisdictional lotteries or raffles with: (1) any other political entity outside the State or outside the United States that operates a lottery or raffle; or (2) a private licensee of a state or a foreign nation. (c) The Commission may advise the Director on the operation and administration of the State lottery. (d) In accordance with the regulations of the Agency and this subtitle, the Director may: (1) arrange for a person to perform any activity, function, or service in connection with the operation of the State lottery which shall constitute a lawful activity, function, or service of the person; and (2) authorize the Agency to sell lottery tickets for a temporary period at any promotional or special event being held in the State if: (i) in the Director's determination, no licensed agent is available to conduct the sale; and (ii) the person holding the promotional or special event has authorized the Agency to sell lottery tickets at the event. (e) (1) Except as provided in paragraphs (2) and (3) of this subsection, the Agency may not allow the establishment of any system or program that allows a person to purchase a State lottery ticket through an electronic device that connects to the Internet, such as a personal computer or mobile device. (2) The Agency may allow the establishment of a system or program that allows an individual to purchase a subscription through an electronic device that connects to the Internet, such as a personal computer or mobile device. (3) (i) The Agency may allow a licensed agent to sell a voucher that an individual may use to fund the purchase of a subscription. (ii) The Agency shall pay a licensed agent that sells a voucher described under subparagraph (i) of this paragraph the commission rate stated in Sec. 9-117 of this subtitle. (iii) The Agency shall pay a licensed agent the commission rate stated in Sec. 9-117 of this subtitle for the renewal of a subscription that was originally funded by a voucher sold by the licensed agent and is renewed before the subscription's expiration for a period of 24 months from the date of the first renewal. (f) It is the intent of the General Assembly that the Agency offer the Racetrax lottery game at a frequency that maximizes revenue from the game. #### Section 9-112 (a) (1) In this section the following words have the meanings indicated. (2) "Active members" means individuals who are recognized by a fraternal organization as dues-paying members or lifetime members. (3) (i) "Fraternal organization" means a nonprofit organization that: (1) (A) is tax exempt and organized as a fraternal or sororal organization under Sec. 501(c)(7) or Sec. 501(c)(8) of the Internal Revenue Code; (B) owns or leases a property; and (C) has a bona fide membership of at least 300 active members or has been located in a county in which subsection (d) of this section applies for at least 5 years before the organization applies for a license under subsection (d) of this section; or (2) is independent and the membership of which comprises solely graduate members of a nationwide fraternity or sorority that is tax exempt under Sec. 501(c)(7) or Sec. 501(c)(8) of the Internal Revenue Code. (ii) "Fraternal organization" does not include: (1) any college or high school fraternity or sorority; or (2) any other fraternity or sorority the membership of which is restricted in whole or in part to students or graduates of an educational institution or a professional school. (4) "Veterans' organization" means an organization that is tax exempt and organized as a veterans' organization under Sec. 501(c)(19) or Sec. 501(c)(4) of the Internal Revenue Code. (b) Except as provided in subsection (d) of this section, in accordance with the regulations of the Agency and this subtitle, the Director shall issue licenses to the persons and governmental units that will best serve the public convenience and promote the sale of State lottery tickets or shares. (c) Before issuing a license to an applicant, the Director may consider such factors as: (1) the financial responsibility and security of the applicant and the business or activity of the applicant; (2) the accessibility of the place of business or activity to the public; (3) the sufficiency of existing licenses to serve the public convenience; and (4) the volume of expected sales. (d) (1) This subsection does not apply in: (i) Caroline County; (ii) Cecil County; (iii) Dorchester County; (iv) Kent County; (v) Queen Anne's County; (vi) Somerset County; (vii) Talbot County; (viii) Wicomico County; and (ix) Worcester County. (2) (i) Subject to subparagraph (ii) of this paragraph, the Director may issue a license under this subtitle for: (1) not more than five instant ticket lottery machines to an applicant that is a veterans' organization; and (2) not more than three instant ticket lottery machines to an applicant that is a fraternal organization. (ii) A veterans' organization or fraternal organization that is issued a license under this subsection shall locate and operate its instant ticket lottery machines at its principal meeting hall in the county in which the veterans' organization or fraternal organization is located. (iii) As a retailer under the instant ticket lottery machine program, a veterans' organization or fraternal organization shall be compensated based on a percentage of proceeds. (3) (i) After deduction of any validation prize payout as provided under Sec. 9-117 of this subtitle, a veterans' organization issued a license under this subsection shall retain 50% of the net proceeds and credit the remaining net proceeds from the sale of tickets from instant ticket lottery machines to the State Lottery Fund established under Sec. 9-118 of this subtitle. (ii) On a properly approved transmittal, the Agency shall pay the following amounts from the net proceeds of sales of tickets from instant ticket lottery machines operated by a veterans' organization: (1) 5% to the Maryland Veterans Trust Fund established under Sec. 9-913 of this title; (2) to the Agency, an amount necessary to pay for the purchase or lease of the instant ticket lottery machines and Agency administration fees for the program; and (3) any remaining amount to the Education Trust Fund established under Sec. 9-1A-30 of this title. (iii) After deduction of a validation prize payout, a fraternal organization issued a license under this subsection shall: (1) retain 25% of the net proceeds for undergraduate, graduate, or trade school scholarships or capital improvements, capital outlays, acquisitions, or existing community outreach programs and resources; and (2) remit the remainder to the Agency to be distributed as provided in subparagraph (iv) of this paragraph. (iv) On a properly approved transmittal, the Agency shall pay the following amounts from the net proceeds of sales of tickets from instant ticket lottery machines operated by a fraternal organization: (1) 20% to the Homelessness Solutions Program in the Department of Housing and Community Development, to be used, in consultation with the Department of Veterans and Military Families, to assist veterans and families of veterans, with priority given to: (A) women veterans who are homeless or at risk of homelessness; (B) single-parent veteran families; and (C) veterans who are victims of domestic violence; (2) 5% to the Maryland Veterans Trust Fund established under Sec. 9-913 of this title; (3) to the Agency, an amount necessary to pay for the purchase or lease of the instant ticket lottery machines and Agency administration fees for the program; and (4) any remaining amount to the Education Trust Fund established under Sec. 9-1A-30 of this title. (4) An organization may not use net proceeds from the sale of tickets from instant ticket lottery machines that would otherwise be distributed as required under paragraph (3) of this subsection for the costs of purchasing or leasing instant ticket lottery machines. (5) (i) The Director may adopt regulations to implement the provisions of this subsection that include restricting the location of instant ticket lottery machines in areas of a veterans' organization's or a fraternal organization's public meeting hall that is accessible to the public. (ii) A fraternal organization may not locate or operate its instant ticket lottery machines in a meeting hall that is: (1) located on or affiliated with the campus of an institution of higher education; or (2) located in a building where students of an institution of higher education reside. (6) The Agency shall ensure that the element of chance in the conduct of the gaming through the instant ticket lottery machines established under this subsection is contained wholly within the predetermined instant lottery ticket, and that player enhancements in an instant ticket lottery machine may not affect the element of chance. (e) The Director may not issue a license to: (1) a person or governmental unit to engage in business primarily as a licensed agent; or (2) an individual who is under the age of 21 years. (f) The Commission may hear and decide an appeal of a denial of a license. #### Section 9-112.1 (a) In this section, "Central Repository" means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services. (b) The Agency shall apply to the Central Repository for a State and national criminal history records check for each new applicant for a license under Sec. 9-113 of this subtitle. (c) The Director may require any applicant seeking a change of ownership or renewal of a license to submit fingerprints to the Central Repository for a State and national criminal history records check. (d) The Central Repository shall provide to the Agency: (1) the State and national criminal history records of each individual requiring a criminal history records check under subsection (b) of this section and issue a printed statement of the Federal Bureau of Investigation report; (2) an update of the initial criminal history records check for an individual requiring a criminal history records check and issue a revised printed statement of the Federal Bureau of Investigation report listing any criminal charge occurring after the date of the initial criminal history records check; and (3) an acknowledged receipt of the application for a criminal history records check by an individual requiring a criminal history records check. (e) As part of the application for a criminal history records check, the Agency shall submit to the Central Repository: (1) a complete set of the applicant's legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation; (2) the fee authorized in Sec. 10-221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records; and (3) the mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check. (f) (1) In accordance with Sec.Sec. 10-201 through 10-234 of the Criminal Procedure Article, the Central Repository shall forward to the applicant and the Agency a printed statement of the applicant's criminal history record information. (2) Nothing in paragraph (1) of this subsection shall preclude the Director from notifying a licensed agent or an applicant of the approval or disqualification based on information obtained by the Agency under this section. (g) Information obtained from the Central Repository under this section: (1) shall be confidential; (2) may not be redisseminated; and (3) may be used only in connection with the issuance of a license required under this subtitle. (h) The subject of a criminal history records check under this section may contest the contents of the printed statement issued by the Central Repository as provided in Sec. 10-223 of the Criminal Procedure Article. #### Section 9-113 A license authorizes the licensee to act as a State lottery sales agent while the license is effective. #### Section 9-114 (a) The Director may require any lottery agent granted a license to post either an appropriate surety bond, irrevocable letter of credit, or cash security deposit in the amount that the regulations of the Agency set. (b) (1) In lieu of a surety bond, irrevocable letter of credit, or cash security deposit, the Agency, at the discretion of the Director, may provide a blanket bond covering all or selected agents in accordance with the availability of bonds and the financial status of an individual or a corporation. (2) A bond provided by the Agency shall be: (i) provided at the agent's expense; and (ii) based upon a financial evaluation of the agent conducted by the Director. #### Section 9-115 Each licensed agent shall display prominently the license or a copy of it, as the regulations of the Agency require. #### Section 9-116 The Commission may suspend or revoke a license, on the recommendation of the Director. #### Section 9-117 (a) (1) A licensed agent shall receive regular commissions of 5.75% of the licensed agent's gross receipts from ticket sales. (2) A licensed agent may further receive a cashing fee not to exceed 2% of valid prizes paid for services rendered in cashing winning tickets. (b) (1) The Commission may authorize the payment of special bonuses to licensed agents and their employees. (2) The total of the bonuses may not exceed one-half of 1% of the gross receipts from ticket sales for the year for which the bonuses are awarded. (3) Lottery sales agents may not offer patrons inducements of alcoholic beverages to purchase or redeem lottery tickets. (c) Unless otherwise expressly provided by a lease for premises on which lottery tickets are sold, whenever lottery tickets are sold by a licensed agent on premises subject to rent that is wholly or partially based on a percentage of gross sales or receipts, the tenant responsible for payment of the rent may calculate that portion of the rent arising from the sale of lottery tickets solely on the basis of: (1) the commission received by the licensed agent on the sale of those tickets; and (2) in the case of instant lottery tickets, the difference between the price paid by the licensed agent in purchasing the tickets from the Agency and the price for which they were sold by the agent. #### Section 9-118 (a) There is a State Lottery Fund. (b) Except as otherwise specifically provided by law: (1) the Agency shall account to the Comptroller for all of the revenue under this subtitle; and (2) the Comptroller shall credit the revenues to the State Lottery Fund. (c) A system of voucher deposits may be used for: (1) payout of prizes; (2) payout of commissions; and (3) reimbursement for money paid out for prizes or commissions. #### Section 9-119 (a) Except for the commission of a licensed agent, all of the receipts from the sale of State lottery tickets or shares are due to the Agency: (1) on the due date that the Agency sets; or (2) at the times and within the intervals prescribed by Agency regulations. (b) (1) (i) The Director shall require all licensed agents to deposit, with a bank that the licensed agent selects and to the credit of the State Lottery Fund, all of the receipts from the sale of State lottery tickets or shares less any commission and validation prize payout. (ii) (1) A licensed agent may commingle proceeds from the sale of State lottery tickets or shares with business receipts of the licensed agent. (2) Proceeds, including cash proceeds of the sale of any lottery products less any commission and validation prize payout, shall be remitted and paid directly or through the Agency's authorized collection representative. (iii) Licensed agents and each person who is a guarantor or indemnitor of a licensed agent's financial obligations to the Agency shall be liable for all proceeds from the sale of lottery tickets or shares. (iv) The Director may adjust the time, interval, or method of collection for collections of proceeds of any licensed agent. (v) (1) Nothing in this subsection may be construed to impose obligations or liability on any bank in which proceeds from the sale of State lottery tickets or shares are deposited. (2) This subparagraph does not affect the rights and obligations of any financial institution that has issued an irrevocable letter of credit or holds any cash security deposit as provided in Sec. 9-114 of this subtitle. (2) The Director may require any or all licensed agents to submit to the Director or a designee of the Director a report that: (i) is in the form that the Director requires; and (ii) gives the information that the Director requires as to the transactions in and receipts from the sale of State lottery tickets or shares. (c) (1) The Agency may impose a service charge if the payor bank dishonors: (i) a check that is given to the Agency by a licensed agent; or (ii) an electronic transfer of funds to the State lottery account from the account of a licensed agent for money received from the sale of State lottery tickets or shares. (2) The service charge under paragraph (1) of this subsection shall be sufficient to cover the Agency's costs associated with the dishonored return. (3) The Director shall adopt regulations specifying the costs and the methodology for determining the costs that are associated with a dishonored return. (4) The service charge imposed under paragraph (1) of this subsection shall be in addition to any other fees or charges authorized to be charged under this article. (d) A licensed agent shall be charged: (1) as provided in Sec. 13-604(a) of the Tax - General Article, interest on the money that is not paid to the Agency within 10 days after the due date; and (2) if the Agency refers the debt to the Central Collection Unit of the Department of Budget and Management, an additional fee sufficient to cover administrative and collection costs, in an amount equal to any fee charged by the Central Collection Unit in accordance with Sec. 3-304(a)(2) of the State Finance and Procurement Article. (e) (1) The amount, including any interest or penalty charge, due to the Agency from a licensed agent, as of the time that notice of the lien is filed: (i) is a lien on the property of that licensed agent; and (ii) subject to paragraph (5) of this subsection, has the same effect as a judgment lien. (2) The Agency shall: (i) file a notice of the lien with the clerk of the circuit court for the county where the property is located; and (ii) mail a copy of the notice to the business address of the licensed agent. (3) The clerk of court promptly shall enter in the judgment docket of the court: (i) the name of the licensed agent; (ii) the amount of the lien; and (iii) the date of the lien. (4) Within 30 days after the lien is filed, the licensed agent may petition the court for a hearing as to the amount that is due to the Agency. (5) Until an officer of a court levies on personal property, the lien is not effective against an innocent buyer for value. #### Section 9-120 (a) The Comptroller shall: (1) distribute, or cause to be distributed, the State Lottery Fund to pay: (i) on a pro rata basis for the daily and nondaily State lottery games, the expenses of administering and operating the State lottery, as authorized under this subtitle and the State budget; and (ii) then, except as provided in Sec. 10-113.1 of the Family Law Article, Sec. 11-618 of the Criminal Procedure Article, and Sec. 3-307 of the State Finance and Procurement Article, the holder of each winning ticket or share; and (2) cause to be distributed to the State Lottery Fund: (i) beginning in fiscal year 2027 and each fiscal year thereafter, $5,000,000 from the Purse Dedication Account, in accordance with Sec. 9-1A-28(b)(3)(ii) of this title; (ii) beginning in fiscal year 2027 and each fiscal year thereafter, $3,500,000 from the funds for local impact grants, in accordance with Sec. 9-1A-31(a)(4)(i)3 and (b)(3)(i)2 of this title; and (iii) beginning in fiscal year 2027 and each fiscal year thereafter, 80% of the amount of funds from the Racetrack Facility Renewal Account allocated to thoroughbred track licensees, in accordance with Sec. 9-1A-29(d)(1)(i)2 of this title. (b) (1) By the end of the month following collection, the Comptroller shall deposit, cause to be deposited, or pay: (i) (1) after June 30, 2023, but not later than June 30, 2026, into the Maryland Stadium Facilities Fund established under Sec. 7-312 of the State Finance and Procurement Article from the money that remains in the State Lottery Fund, after the distribution under subsection (a) of this section, an amount not to exceed $14,200,000 in each fiscal year; (2) after June 30, 2023, but not later than June 30, 2026, from the money that remains in the State Lottery Fund after the distribution under subsection (a) of this section, an amount for each fiscal year not to exceed: (A) $34,900,000 into the Camden Yards Football Sports Facility Supplemental Financing Fund established under Sec. 10-652.1 of the Economic Development Article; and (B) $40,900,000 into the Camden Yards Baseball Sports Facility Supplemental Financing Fund established under Sec. 10-652.2 of the Economic Development Article; (3) after June 30, 2026, but not later than June 30, 2039, into the Maryland Stadium Facilities Fund established under Sec. 7-312 of the State Finance and Procurement Article from the money that remains in the State Lottery Fund, after the distribution under subsection (a) of this section, an amount not to exceed $3,360,000 in each fiscal year; (4) after June 30, 2026, but not later than June 30, 2039, from the money that remains in the State Lottery Fund after the distribution under subsection (a) of this section, an amount for each fiscal year not to exceed: (A) $45,000,000 into the Camden Yards Football Sports Facility Supplemental Financing Fund established under Sec. 10-652.1 of the Economic Development Article; and (B) $41,640,000 into the Camden Yards Baseball Sports Facility Supplemental Financing Fund established under Sec. 10-652.2 of the Economic Development Article; and (5) after June 30, 2039, from the money that remains in the State Lottery Fund after the distribution under subsection (a) of this section, an amount for each fiscal year not to exceed: (A) $45,000,000 into the Camden Yards Football Sports Facility Supplemental Financing Fund established under Sec. 10-652.1 of the Economic Development Article; and (B) $45,000,000 into the Camden Yards Baseball Sports Facility Supplemental Financing Fund established under Sec. 10-652.2 of the Economic Development Article; (ii) after June 30, 2014, into the Maryland Veterans Trust Fund 10% of the money that remains in the State Lottery Fund from the proceeds of sales of tickets from instant ticket lottery machines by veterans' organizations under Sec. 9-112(d) of this subtitle, after the distribution under subsection (a) of this section; (iii) after June 30, 2014, into the Baltimore City Public School Construction Financing Fund established under Sec. 10-656 of the Economic Development Article the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) and (ii) of this paragraph, an amount equal to $20,000,000 in each fiscal year that bonds are outstanding and unpaid, to be paid in two installments with at least $10,000,000 paid no later than December 1 of each fiscal year; (iv) after June 30, 2026, into the Racing and Community Development Financing Fund established under Sec. 10-657.2 of the Economic Development Article from the money that remains in the State Lottery Fund, after the distribution under subsection (a) of this section: (1) for fiscal year 2026, an amount equal to $13,400,000; and (2) for each fiscal year thereafter, an amount equal to at least $29,000,000 until the bonds issued for a racing facility have matured; (v) after June 30, 2020, into the Michael Erin Busch Sports Fund established under Sec. 10-612.2 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (iv) of this paragraph, an amount equal to $1,000,000 in each fiscal year; (vi) after June 30, 2021, a grant to the Maryland Humanities Council for Maryland History Day and other programming from the money that remains in the State Lottery Fund after the distributions under subsection (a) of this section and items (i) through (v) of this paragraph, an amount equal to $150,000 in each fiscal year; (vii) after June 30, 2021, to Anne Arundel County or Baltimore City each fiscal year the amount required to be distributed under Sec. 9-1A-31(a)(7)(ii) of this title to be used as required under Sec. 9-1A-31 of this title; (viii) after June 30, 2022, into the Maggie McIntosh School Arts Fund established under Sec. 5-243 of the Education Article from the money that remains in the State Lottery Fund from the proceeds of all other lotteries after the distributions under subsection (a) of this section and items (i) through (vii) of this paragraph, an amount equal to $250,000 in each fiscal year; (ix) after June 1, 2022, to the Sports Entertainment Facilities Financing Fund established under Sec. 10-657.5 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (viii) of this paragraph, an amount not to exceed $25,000,000 to be paid in two installments not later than November 1 and June 1 of each fiscal year; (x) after June 30, 2022, to the Major Sports and Entertainment Event Program Fund established under Sec. 10-611.2 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (ix) of this paragraph: (1) for fiscal year 2023, an amount equal to $10,000,000; and (2) for each fiscal year thereafter, the amount necessary to restore the Major Sports and Entertainment Event Program Fund to a balance of $10,000,000; (xi) after June 30, 2024, into the Bus Rapid Transit Fund established under Sec. 2-802.1 of the Transportation Article for bus rapid transit system grants in accordance with Sec. 2-802 of the Transportation Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (x) of this paragraph: (1) for fiscal year 2025, an amount equal to $27,000,000 in each fiscal year; and (2) for each fiscal year thereafter, an amount equal to $17,000,000 in each fiscal year; (xii) (1) after June 30, 2026, except as provided in item 2 of this item, into the Prince George's County Blue Line Corridor Facility Fund established under Sec. 10-657.6 of the Economic Development Article from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (xi) of this paragraph, $29,000,000; and (2) for fiscal year 2027: (A) $18,000,000 for a grant to the Maryland Economic Development Corporation for the purpose of a mixed-use development, including a soccer stadium at the University of Maryland, College Park; (B) $4,000,000 for a grant to the Velocity Companies for infrastructure improvements and economic development along the Blue Line Corridor; (C) $2,000,000 for a grant to the Atlantic Pacific Companies to support the Addison Park Development Project; (D) $1,500,000 for a grant to the Prince George's County Redevelopment Authority to support Artspace in Mount Rainier; (E) $750,000 for a grant to the Town of Colmar Manor for the Colmar Manor Community Center and Town Hall; and (F) $750,000 for a grant to the Town of Cottage City for converting a firehouse into a Community Outreach Center; (xiii) after June 30, 2024, a supplemental local impact grant of $3,000,000 each fiscal year to the County Executive and County Council of Prince George's County from the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (xii) of this paragraph to be distributed in Prince George's County in accordance with Sec. 9-1A-31 of this title; (xiv) subject to paragraph (3) of this subsection after June 30, 2025, supplemental local impact aid of $250,000 each fiscal year from the proceeds of the Racetrax lottery game to Anne Arundel County, Howard County, and the City of Laurel in proportion to each jurisdiction's share of the money required to be paid under Sec. 11-404(d) of the Business Regulation Article to be used in accordance with paragraph (4) of this subsection; and (xv) into the General Fund of the State the money that remains in the State Lottery Fund from the proceeds of all lotteries after the distributions under subsection (a) of this section and items (i) through (xiv) of this paragraph. (2) The money paid into the General Fund under this subsection is available in the fiscal year in which the money accumulates in the State Lottery Fund. (3) The Comptroller may not pay the supplemental local impact aid required under paragraph (1)(xiv) of this subsection for any fiscal year following the fiscal year that: (i) Laurel Race Course is no longer used for live racing or training; or (ii) backstretch workers employed at Laurel Race Course are no longer living on the Laurel Race Course property. (4) (i) Anne Arundel County, Howard County, and the City of Laurel shall use the supplemental local impact aid required under paragraph (1)(xiv) of this subsection to provide programs and services to the communities surrounding Laurel Race Course including: (1) health and mental health services; (2) individual and family counseling; (3) drug and alcohol addiction awareness, support, and treatment; (4) social services; (5) nutrition and wellness programs; and (6) transportation, if necessary, to off-site medical and wellness services. (ii) (1) Anne Arundel County may use the supplemental local impact aid under paragraph (1)(xiv) of this subsection only to provide grant funding for the purposes identified under subparagraph (i) of this paragraph to nonprofit organizations: (A) with a history of working with backstretch workers employed at Laurel Race Course; and (B) that employ Spanish-speaking program staff or provide translation services for nonnative English speakers. (2) In consultation with at least two Laurel Race Course backstretch workers designated by the County Executive, Anne Arundel County may use the public grant application process developed and administered by the Laurel Race Course Impact Advisory Committee to provide grant funding to nonprofit organizations under this subparagraph. (3) A nonprofit organization that receives grant funding under this subparagraph may use the funding only to provide programs and services at Laurel Race Course or within 1 mile of Laurel Race Course to backstretch workers employed at Laurel Race Course or residents living in the 20724 postal zip code. (c) The regulations of the Agency shall apportion the money in the State Lottery Fund in accordance with subsection (b) of this section. #### Section 9-122 (a) The regulations of the Agency shall provide for winning tickets to be drawn at least once a week. (b) (1) Except as otherwise provided in this subsection, Sec. 10-113.1 of the Family Law Article, Sec. 11-618 of the Criminal Procedure Article, and Sec. 3-307 of the State Finance and Procurement Article, a prize won under this subtitle is not assignable. (2) If the prize winner dies before the prize is paid, the prize may be paid to the estate of the prize winner. (3) Under appropriate court order, a prize won under this subtitle may be paid to a person other than the winner. (4) (i) The right of a person to receive payment under a prize that is paid in installments over time by the Agency may be voluntarily assigned as a whole or in part, if the assignment is made to a person designated in accordance with an order of the circuit court in the county where the headquarters of the Agency is located. (ii) A circuit court specified under subparagraph (i) of this paragraph may hear petitions for approval of voluntary assignments. (iii) On the filing by the assignor or the assignee in the circuit court of a petition seeking approval of a voluntary assignment, the court shall issue an order approving a voluntary assignment and directing the Agency to make prize payments as a whole or in part to the assignee if the court finds that: (1) the assignment is in writing, is executed by the assignor, and is by its terms subject to the laws of this State; (2) the assignor provides a sworn affidavit attesting that the assignor is of sound mind, is in full command of the assignor's faculties, and is not acting under duress; (3) the assignor has been advised about the assignment by an independent attorney who is not related to and not compensated by the assignee or an affiliate of the assignee; (4) the assignor has received independent financial or tax advice concerning the effects of the assignment from an attorney or other professional who is unrelated to and is not compensated by the assignee or an affiliate of the assignee; (5) the assignor understands that the assignor will not receive the prize payments or parts of payments during the years assigned; (6) the assignor understands and agrees the Agency, Commission, and officials and employees of the Agency are not liable or responsible for making any of the assigned payments; (7) the assignee provides the assignor with a one-page disclosure statement that sets forth in bold type not less than 14 points in size the payments being assigned by amount and payment date, the purchase price, the rate of discount to present value assuming daily compounding and funding on the contract date, and any origination or closing fee that will be charged to the assignor; and (8) the contract of assignment expressly states that the assignor has 5 business days after signing the contract to cancel the assignment. (iv) (1) Written notice of the petition and proposed assignment and any court hearing concerning the petition and proposed assignment shall be given to the Agency's counsel at least 30 days before a court hearing. (2) The Agency need not appear in or be named as party to an action that seeks judicial approval of an assignment but may intervene as of right in the action. (3) A certified copy of a court order approving a voluntary assignment shall be given to the Agency not later than 60 days before the date on which the payment is to be made. (v) Beginning October 1, 2006, the Agency, not later than 30 days after receiving a certified copy of a court order approving a voluntary assignment, shall send the assignor and the assignee written confirmation of: (1) the court-approved assignment; and (2) the intent of the Agency to rely on the assignment in making payments to the assignee named in the order. (vi) A voluntary assignment may not include or cover payments or parts of payments to the extent that the payments are subject to child support payments, criminal restitution, or bankruptcy proceedings as of the date of the court order approving a voluntary assignment. (vii) (1) The Agency, the Commission, and officials and employees of the Agency are not liable under this paragraph after payment of an assigned prize is made. (2) The assignor and assignee shall hold harmless and indemnify the Agency, the Commission, and the State and its employees and agents from all claims, suits, actions, complaints, or liabilities related to the assignment. (viii) (1) The Agency may establish a reasonable fee to defray administrative expenses associated with assignments made under this section, including a processing fee imposed by a private annuity provider. (2) The amount of the fee shall reflect the direct and indirect costs of processing assignments. (ix) (1) A contract of assignment in which the assignor is a lottery winner shall include a sworn affidavit in a form that the Agency provides and the assignee completes. (2) Until the Agency provides the form, an assignee may use its own form that includes the information required in subsubparagraph 3 of this subparagraph. (3) The affidavit shall include: (A) a summary of assignee contacts with the winner; (B) a summary of any complaints, lawsuits, claims, or other legal actions from lottery winners regarding conduct of the assignee or its agents; (C) a statement that the assignee is registered to do business in the State and is in good standing with the Department of Assessments and Taxation and any other licensing or regulatory unit whose approval is required in the conduct of the assignee's business; (D) a brief business history of the assignee; (E) a description of the business of the assignee; and (F) a statement of the assignee's privacy and nonharassment policies and express affirmation that the assignee has followed those policies in the State. (4) The affidavit shall be provided only by the assignee who enters into the contract with the lottery winner or the estate of a lottery winner. (x) The assignee shall notify the Agency of its business location and mailing address for payment purposes and of any change in location or address during the entire course of the assignment. (xi) An assignment may be made by a husband and wife who are co-owners of a prize only if they jointly assign the prize to an assignee. (xii) (1) A court order or a combination of court orders under this section may not require the Agency to divide a single prize payment among more than three different persons. (2) This section does not prohibit the substitution of assignees as long as there are not more than three assignees at any one time for any one prize payment. (3) Any subsequent assignee is bound as the original assignee by the provisions of this section and the terms and conditions of the contract of assignment. (xiii) If the Internal Revenue Service or a court of competent jurisdiction issues a determination letter, revenue ruling, or other public document declaring that the voluntary assignment of prizes will affect the federal income tax treatment of lottery prize winners who do not assign their prizes: (1) within 15 days after the Agency receives the letter, ruling, or other document, the Director of the Agency shall file a copy of it with the Attorney General; and (2) a court may not issue an order authorizing a voluntary assignment under this paragraph. (xiv) This paragraph shall prevail over any inconsistent provision in Sec. 9-406 of the Commercial Law Article. (xv) A contract or agreement made or entered into on or before May 31, 2006, that purports to voluntarily assign or grant an interest in prize payments is void. (c) The Director may establish by regulation the amount a licensed agent may pay in cash game prizes. (d) (1) (i) In this subsection the following words have the meanings indicated. (ii) "Financial institution" has the meaning stated in Sec. 13-301 of the Estates and Trusts Article. (iii) "Guardian" has the meaning stated in Sec. 13-101 of the Estates and Trusts Article. (iv) "Member of the minor's family" has the meaning stated in Sec. 13-301 of the Estates and Trusts Article. (2) If a minor wins a prize of less than $5,000, the Director may give a draft, as provided for in rules and regulations of the Agency payable to the order of the minor, to: (i) an adult member of the minor's family; or (ii) a guardian of the minor. (3) If a minor wins $5,000 or more, the Director may deposit the prize in a financial institution to the credit of one of the following, as custodian for the minor: (i) an adult member of the minor's family; or (ii) a guardian of the minor. (4) A custodian under paragraph (3) of this subsection has the same powers and duties as a custodian under the Maryland Uniform Transfers to Minors Act. (e) On payment of a prize in accordance with this section, the Director is discharged of all liability. (f) (1) A prize winner shall claim a prize within 182 days after the drawing in which the prize is won. (2) Except as provided in paragraph (3) of this subsection, the Director shall keep an unclaimed prize: (i) for 182 days after the drawing in which the prize is won, for payment of the winner; and (ii) then in an unclaimed prize fund for use for other prizes. (3) For a game that the Agency designates as a bonus game or drawing and that is not a daily or weekly State lottery drawing, the period for claiming a prize may differ from the period set in paragraph (2) of this subsection. (g) (1) Unless otherwise specifically provided by the laws of the State, and except for prizes paid for any multistate lottery game, the State and every officer, department, agency, board, commission, or other unit of State government may not raise the defense of sovereign immunity in the courts of the State in an action in contract brought by an annuitant or prize winner that is based on the liability of the State to pay an annuitant or prize winner the prize that the annuitant is entitled to receive in accordance with this subtitle and any regulations adopted under this subtitle. (2) Notwithstanding any other provision of law, the State may raise the defense of sovereign immunity to a contract action brought by an annuitant or prize winner of any multistate lottery game, for any claim that exceeds $200,000. #### Section 9-123 A State lottery ticket or share may not be bought by and a prize may not be given to: (1) an officer or employee of the Agency; or (2) an individual who is a spouse, child, parent, or sibling of an officer or employee of the Agency and resides in the principal residence of the officer or employee. #### Section 9-124 (a) This section does not prohibit: (1) giving a State lottery ticket or share as a gift; (2) buying a State lottery ticket or share as a gift for a minor; or (3) the Agency from directly selling any State lottery ticket to the public as provided in Sec. 9-111(d) of this subtitle. (b) Except as otherwise provided in this section, a person or governmental unit may not: (1) hold itself out to the public as a State lottery sales agent without being licensed by the Agency to act as a licensed agent; (2) unless a licensed agent or employee of a licensed agent, sell a State lottery ticket or share; (3) sell or purchase: (i) a State lottery ticket or share at any price other than the price that the regulations of the Agency set; or (ii) the prize validated for payment by the Agency; (4) sell a State lottery ticket or share to a minor; (5) knowingly present a counterfeit or altered State lottery ticket or share for payment; (6) knowingly transfer a counterfeit or altered State lottery ticket or share to another person to present for payment; or (7) knowingly purchase a State lottery ticket or share from another person with the intent to deceive or circumvent the payment of prize winnings to the State, in accordance with: (i) Sec. 11-616(b) of the Criminal Procedure Article; (ii) Sec. 10-113.1(b) of the Family Law Article; (iii) Sec. 3-307 of the State Finance and Procurement Article; or (iv) Sec. 10-905(c)(3) of the Tax - General Article. (c) Unless a person receives written authorization from the Agency, the person may not use the term "Maryland State lottery", "Maryland lottery", "State lottery", "Maryland State Lottery Agency", "Maryland State Lottery and Gaming Control Agency", "Maryland State Lottery Commission", "Maryland State Lottery and Gaming Control Commission", or any variation of these terms in the title or name of a charitable or commercial enterprise, product, or service. (d) (1) A licensed agent may not fail to report, as required by the Internal Revenue Service or the Agency, income tax information relating to holders of winning lottery tickets. (2) For prizes of over $600, a licensed agent may not fail to determine, through the Agency and prior to paying the prize whether a holder of a winning lottery ticket has been certified under: (i) Sec. 11-616(b) of the Criminal Procedure Article; (ii) Sec. 10-113.1(b) of the Family Law Article; or (iii) Sec. 3-307 of the State Finance and Procurement Article. (3) A licensed agent may not pay a prize to a holder of a winning lottery ticket if the Agency has notified the licensed agent that the holder has been certified under: (i) Sec. 11-616(b) of the Criminal Procedure Article; (ii) Sec. 10-113.1 of the Family Law Article; or (iii) Sec. 3-307 of the State Finance and Procurement Article. (4) A licensed agent may not: (i) pay a prize winner less than the lawfully due prize amount; (ii) deceive or conspire with another person to pay less than the lawfully due prize amount to any prize winner; (iii) seek payment or claim reimbursement of a cashing fee for cashing a winning ticket for less than the lawfully due prize amount; or (iv) receive a cashing fee for cashing a winning ticket filed in error. (e) A person who violates any provision of subsection (b), (c), or (d) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $2,500 or imprisonment not exceeding 3 years or both. #### Section 9-125 This subtitle may be cited as the "Maryland State Lottery Law". ### Subtitle 1A. Video Lottery Terminals #### Section 9-1A-01 (a) In this subtitle the following words have the meanings indicated. (b) "Applicant" means a person who applies for any license required under this subtitle. (c) "Associated equipment" means hardware located on the licensee's premises that is connected to the video lottery system for the purpose of performing communication, validation, or other functions, but not including the communication facilities of a regulated utility or the video lottery terminals. (d) "Average payout percentage" means the average percentage of money used by players to play a video lottery terminal that is returned to players of that video lottery terminal. (e) "Award" means the act, by the Video Lottery Facility Location Commission, of approving the issuance of a video lottery operation license by the State Lottery and Gaming Control Commission to an applicant for the operation of video lottery terminals at a specified location. (f) "Background investigation" means a security, criminal, and credit investigation of a person who applies for or who is granted a license under this subtitle. (g) "Career offender" means a person whose behavior is pursued in an occupational manner or context for the purpose of economic gain and who utilizes methods that are deemed by the Commission as criminal violations inimical to the interest of the State. (h) "Career offender cartel" means a group of persons who operate together as career offenders. (i) "Central monitor and control system" means a central system provided to and controlled by the Commission to which video lottery terminals communicate for purposes of: (1) information retrieval; (2) retrieval of the win and loss determination from video lottery terminals; and (3) programs to activate and disable video lottery terminals. (j) "Central Repository" means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services. (k) "Commission" means the State Lottery and Gaming Control Commission. (l) "Control" means the authority to direct the management and policies of an applicant or licensee. (m) "Costs" means, unless the context otherwise requires, the expenses incurred by the Commission in the administration of this subtitle, including: (1) the costs of leasing or the capitalized cost of purchasing the video lottery terminals, central monitor and control system, and associated equipment and software; (2) the costs to repair and maintain the video lottery terminals, central monitor and control system, and associated equipment and software to the extent these costs are not included in the costs of leasing or purchasing the video lottery terminals, central monitor and control system, and associated equipment and software; (3) the costs of testing and examination of video lottery terminals and the central monitor and control system; and (4) the costs of performing background investigations and other related activities. (n) "Family" means spouse, parents, grandparents, children, grandchildren, siblings, uncles, aunts, nephews, nieces, fathers-in-law, mothers-in-law, daughters-in-law, sons-in-law, brothers-in-law, and sisters-in-law, whether by whole blood or half blood, marriage, adoption, or natural relationship. (o) "Institutional investor" means: (1) a retirement fund administered by a public agency for the exclusive benefit of federal, state, or local public employees; (2) an investment company registered under the Investment Company Act of 1940; (3) a collective investment trust organized by banks under Part 9 of the rules of the Comptroller of the Currency; (4) a closed end investment trust; (5) a chartered or licensed life insurance company; (6) a property and casualty insurance company; (7) a banking or other chartered or licensed lending institution; (8) an investment advisor registered under the Investment Advisors Act of 1940; or (9) any other person registered in any foreign jurisdiction and regulated in accordance with a statute of any foreign jurisdiction that the Commission determines to be substantially similar to that regulated by the Investment Company Act of 1940 or the Investment Advisors Act of 1940. (p) "License" means, unless the context otherwise requires, a license required under this subtitle. (q) "Licensee" means an applicant who has been issued a license required under this subtitle. (r) "Manufacturer" means a person: (1) (i) that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing a central monitor and control system, video lottery terminals, associated equipment or software, or the cabinet in which a video lottery terminal is housed; (ii) that produces a product that is intended for sale, lease, or other assignment to the Commission or a licensee; and (iii) that contracts with the Commission or a licensee for the sale, lease, or other assignment of a product described in item (i) of this item; or (2) (i) that is engaged in the business of designing, building, constructing, assembling, manufacturing, or distributing table games or table game equipment; (ii) that produces a product related to table games that is intended for sale, lease, or other assignment to a licensee; and (iii) that contracts with a licensee for the sale, lease, or other assignment of a product described in item (i) of this item. (s) "Own" means having a beneficial or proprietary interest of at least 5% in the property or business of an applicant or licensee. (t) "Player" means an individual who plays a video lottery terminal at a video lottery facility licensed by the Commission. (u) (1) "Proceeds" means the part of the amount of money bet through video lottery terminals and table games that is not returned to successful players but is otherwise allocated under this subtitle. (2) (i) "Proceeds" may be reduced consistent with regulations adopted by the Commission in accordance with subparagraph (ii) of this paragraph. (ii) If a video lottery operation licensee returns to successful players more than the amount of money bet through video lottery terminals or table games on a given day, the video lottery licensee may subtract that amount from the proceeds of up to 7 following days. (3) (i) Subject to subparagraph (ii) of this paragraph, "proceeds" does not include money given away by a video lottery operation licensee as free promotional play and used by players to bet in a video lottery terminal or at a table game. (ii) After the first fiscal year of operations, the exclusion specified in subparagraph (i) of this paragraph may not exceed a percentage established by the Commission by regulation of the proceeds received from video lottery terminals and table games in the prior fiscal year by the video lottery operation licensee under Sec. 9-1A-27(a)(2), (c)(1)(ii), and (d)(1) of this subtitle. (v) "Progressive jackpot" means a prize that increases as one or more video lottery terminals are connected to a progressive jackpot system. (w) "Progressive jackpot system" means a system capable of linking one or more video lottery terminals in one or more licensed facilities and offering one or more common progressive jackpots. (w-1) "Racing licensee" means the holder of a license issued by the State Racing Commission to hold a race meeting in the State under Title 11 of the Business Regulation Article. (w-2) "Table game equipment" means equipment that is related to the operation of table games and that is owned or leased by the video lottery facility and located on the video lottery facility's premises. (w-3) "Table games" means: (1) roulette, baccarat, blackjack, craps, big six wheel, minibaccarat, poker, pai gow poker, and sic bo, or any variation and composites of such games; and (2) gaming tournaments in which players compete against one another in one or more of the games authorized under item (1) of this subsection. (x) "Video lottery" means gaming or betting conducted using a video lottery terminal. (y) "Video lottery destination location" means a location that is eligible for or has been awarded in the manner provided by law a video lottery operation license. (z) "Video lottery employee" means an employee of a person who holds a license. (aa) "Video lottery facility" means: (1) a facility at which players play video lottery terminals and table games under this subtitle; and (2) a casino for the purposes of the federal Bank Secrecy Act of 1970 and its related regulations. (bb) "Video lottery operation license" means a license awarded by the Video Lottery Facility Location Commission and issued by the State Lottery and Gaming Control Commission to a person that allows players to play video lottery terminals and table games. (cc) "Video lottery operator" means a person licensed to operate a video lottery facility under this subtitle. (dd) (1) "Video lottery terminal" means any machine or other device that, on insertion of a bill, coin, token, voucher, ticket, coupon, or similar item, or on payment of any consideration: (i) is available to play or simulate the play of any game of chance in which the results, including the options available to the player, are randomly determined by the machine or other device; and (ii) by the element of chance, may deliver or entitle the player who operates the machine or device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payout is made automatically from the device or in any other manner. (2) "Video lottery terminal" includes a machine or device: (i) that does not directly dispense money, tokens, or anything of value to winning players; and (ii) described under paragraph (1) of this subsection that uses an electronic credit system making the deposit of bills, coins, or tokens unnecessary. (3) "Video lottery terminal" does not include an authorized slot machine operated by an eligible organization under Title 12, Subtitle 3 of the Criminal Law Article. #### Section 9-1A-02 (a) This subtitle is statewide and exclusive in its effect. (b) (1) The Commission shall regulate the operation of video lottery terminals in accordance with this subtitle. (2) The Maryland State Lottery and Gaming Control Agency shall provide assistance to the Commission in the performance of the Commission's duties under this subtitle. (3) The Commission shall regulate the operation of table games in accordance with this subtitle. (c) (1) This subtitle authorizes the operation of video lottery terminals that are connected to a central monitor and control system owned or leased by the State that allows the Commission to monitor a video lottery terminal. (2) The Commission shall provide and operate a single central monitor and control system into which all licensed video lottery terminals must be connected. (3) The central monitor and control system shall be capable of: (i) continuously monitoring, retrieving, and auditing the operations, financial data, and program information of all video lottery terminals; (ii) allowing the Commission to account for all money inserted in and payouts made from any video lottery terminal; (iii) disabling from operation or play any video lottery terminal as the Commission deems necessary to carry out the provisions of this subtitle; (iv) supporting and monitoring a progressive jackpot system capable of operating one or more progressive jackpots; and (v) providing any other function that the Commission considers necessary. (4) The central monitor and control system shall employ a widely accepted gaming industry communications protocol to facilitate the ability of video lottery terminal manufacturers to communicate with the statewide system. (5) (i) Except as provided in subparagraph (ii) of this paragraph, the Commission may not allow a video lottery operation licensee to have access to, or obtain information from, the central monitor and control system. (ii) Only if the access does not in any way affect the integrity or security of the central monitor and control system, may the Commission allow a video lottery operation licensee to have access to the central monitor and control system that allows the licensee to obtain information pertinent to the legitimate operation of a video lottery facility. (d) Only a person with a video lottery operation license issued under this subtitle may offer a video lottery terminal and table games for public use in the State under this subtitle. #### Section 9-1A-03 (a) Except as provided in subsection (b) of this section, any additional forms or expansion of commercial gaming other than as expressly provided in this subtitle and Subtitle 1E of this title are prohibited. (b) This subtitle, including the authority provided to the Commission under this subtitle, does not apply to: (1) lotteries conducted under Subtitle 1 of this title; (2) wagering on horse racing conducted under Title 11 of the Business Regulation Article; (3) the operation of slot machines as provided under Titles 12 and 13 of the Criminal Law Article; or (4) other gaming conducted under Titles 12 and 13 of the Criminal Law Article. #### Section 9-1A-04 (a) The Commission shall: (1) promptly and in reasonable order, make a determination on license applications and causes affecting the granting or renewal of licenses under this subtitle; (2) issue licenses in accordance with this subtitle; (3) after a hearing, promptly and in reasonable order, make a determination on the suspension or revocation of licenses under this subtitle; (4) except as provided in subsection (b)(1)(v) of this section, after a hearing, suspend or revoke as applicable the license of a licensee who has a license suspended or revoked in another state; (5) conduct hearings concerning civil violations of this subtitle or regulations issued under this subtitle; (6) collect application, license, and other fees to cover the administrative costs of this subtitle related to licensing; (7) deposit application, license, and other fees to a bank account that the State Treasurer designates to the credit of the State Lottery Fund to cover the administrative costs of this subtitle related to licensing; (8) levy and collect civil penalties for civil violations of the provisions of this subtitle or regulations issued under this subtitle; (9) be present at a video lottery operation through its employees and agents at any time during the operation of any video lottery terminal or table game for the purpose of certifying revenue from the video lottery terminals or table games, receiving complaints from the public, and conducting any other investigation into the operation of the video lottery terminals or table games and the maintenance of the video lottery terminals and associated equipment and software and table games and table game equipment as the Commission may deem necessary and proper; (10) review and rule on any complaint by a licensee regarding any investigative procedures of the Commission that are unnecessarily disruptive of video lottery and table games operations; and (11) authorize a holder of a video lottery operation license under this subtitle to offer table games to the public in the State. (b) (1) The Commission may: (i) issue subpoenas to compel the attendance of witnesses at any place within the State in the course of any investigation or hearing under this subtitle; (ii) administer oaths and require testimony under oath before the Commission in the course of any investigation or hearing conducted under this subtitle; (iii) serve or cause to be served its process or notices in a manner provided for service of process in civil actions under the Maryland Rules; (iv) propound written interrogatories; and (v) suspend a license on an emergency basis if it is determined that the suspension is necessary to protect the State's gaming program against a serious and imminent risk of harm to its integrity, security, or profitability. (2) If the Commission suspends a license on an emergency basis, the Commission shall schedule promptly a hearing on the suspension and provide the licensee with written notice of the suspension. (3) The Commission may delegate to the Director its authority under paragraph (1) of this subsection. (c) Except as otherwise provided in this subtitle, the Commission shall conduct a hearing in the same manner as specified in Title 10, Subtitle 2 of this article. (d) The Commission shall adopt regulations that include the following specific provisions in accordance with this subtitle: (1) establishing the methods and forms of application that an applicant for any license required under this subtitle shall follow and complete before consideration of the application by the Commission; (2) establishing the methods, procedures, and form for delivery of information from an applicant or licensee concerning any person's family, habits, character, associates, criminal record, business activities, and financial affairs; (3) establishing the procedures for the fingerprinting of an applicant for any license required under this subtitle or other methods of identification that may be necessary in the judgment of the Commission to accomplish effective enforcement of the provisions of this subtitle; (4) establishing the manner and procedure of hearings conducted by the Commission; (5) establishing the manner and method of collection of taxes, fees, and civil penalties; (6) defining and limiting the areas of operation for video lottery terminals and table games, rules of video lottery terminals and table games, odds for video lottery terminals and table games, the types and values of promotional items that may be given away to encourage play of video lottery terminals and table games, the method of operation of the video lottery terminals and table games, and the number and types of table games; (7) regulating the practice and procedures for negotiable transactions involving players, including limitations on the circumstances and amounts of negotiable transactions and the establishment of forms and procedures for negotiable instrument transactions, redemptions, and consolidations; (8) prescribing the grounds and procedures for reprimands of licensees or the revocation or suspension of licenses issued under this subtitle; (9) governing the manufacture, distribution, sale, and servicing of video lottery terminals and table games; (10) establishing the procedures, forms, and methods of management controls; (11) providing for minimum uniform standards of accountancy methods, procedures, and forms as are necessary to ensure consistency, comparability, and effective disclosure of all financial information, including percentages of profit for video lottery terminals and table games; (12) establishing periodic financial reports and the form of the reports, including an annual audit prepared by a certified public accountant licensed to do business in the State, disclosing whether the accounts, records, and control procedures examined are maintained by the video lottery operation licensee as required by this subtitle and the regulations that shall be issued under this subtitle; (13) requiring licensees under this subtitle to demonstrate and maintain financial viability; (14) ensuring that the operation of video lottery terminals, table games, and video lottery facilities is conducted legally; (15) establishing procedures for the removal of video lottery terminals from a video lottery facility; (16) determining the suitability of: (i) the use of any variations or composites of the table games authorized under this subtitle after an appropriate test or experimental period under terms and conditions that the Commission may deem appropriate; and (ii) any other game that is compatible with the public interest and suitable for casino use after an appropriate test or experimental period deemed appropriate by the Commission; (17) establishing procedures for accounting for all money exchanged at each table game; (18) establishing the number of video lottery terminals that may be removed from a video lottery facility to accommodate table games; (19) requiring each video lottery operator under this subtitle to: (i) establish procedures to offer players the opportunity to donate coins, when receiving cash on payout, to the Maryland Veterans Trust Fund established under Sec. 9-913 of this title; and (ii) attach donation boxes near the exits from a video lottery facility, with the proceeds dedicated to the Maryland Veterans Trust Fund; and (20) otherwise carrying out the provisions of this subtitle. (e) (1) The Commission shall by regulation require an applicant or licensee to file a bond for the benefit of the State for the faithful performance of the requirements imposed by this subtitle and any regulations issued under this subtitle. (2) An applicant or licensee shall obtain and submit satisfactory proof of the bond to the Commission before a license is issued or reissued. (3) The bonds furnished may be applied by the Commission to the payment of an unpaid liability of the licensee. (4) The Commission by regulation may exempt categories of video lottery and table game employees who are not directly involved in the video lottery and table game operations from the requirements of this subsection if the Commission determines that the requirement is not necessary in order to protect the public interest or accomplish the policies established under this subtitle. (f) (1) The Commission shall promptly and thoroughly investigate all applications and enforce this subtitle and regulations that are adopted under this subtitle. (2) The Commission and its employees and agents shall have the authority, without notice and without warrant, to: (i) inspect and examine all premises in which video lottery and table game operations under this subtitle are conducted or any authorized table games, table game equipment, video lottery terminals, central monitor and control system, or associated equipment and software designed, built, constructed, assembled, manufactured, sold, distributed, or serviced, or in which records of those activities are prepared or maintained; (ii) inspect any table games, table game equipment, video lottery terminals, central monitor and control system, or associated equipment and software in, about, on, or around those premises; (iii) seize summarily and remove from those premises and impound, or assume physical control of, any table games, table game equipment, video lottery terminals, central monitor and control system, or associated equipment and software for the purposes of examination and inspection; (iv) inspect, examine, and audit books, records, and documents concerning a licensee's video lottery and table game operations, including the financial records of a parent corporation, subsidiary corporation, or similar business entity; and (v) seize, impound, or assume physical control of books, records, ledgers, cash boxes and their contents, a counting room or its equipment, or other physical objects relating to video lottery or table game operations. (3) A licensee shall authorize any other person having financial records relating to the licensee to provide those records to the Commission. (g) The Commission may not charge a video lottery facility a fee to offer table games. (h) The Commission may not permit the operation of video lottery terminals in Prince George's County before the earlier of July 1, 2016, or 30 months after the video lottery facility in Baltimore City is open to the public. #### Section 9-1A-05 (a) The Video Lottery Facility Location Commission established under Sec. 9-1A-36 of this subtitle may not: (1) award more than six video lottery operation licenses; (2) award more than 16,500 video lottery terminals for operation at video lottery facilities in the State; (3) subject to the requirements of Sec. 9-1A-36(h) and (i) of this subtitle, award more than 4,750 terminals for operation at any video lottery facility; and (4) for a location in Allegany County: (i) award a video lottery operation license to an applicant that does not agree to purchase the Rocky Gap Lodge and Resort; and (ii) notwithstanding Sec. 9-1A-36(i)(2) of this subtitle, award more than 1,500 video lottery terminals for operation at a video lottery facility in Allegany County. (b) An owner or operator of a video lottery destination location described under Sec. 9-1A-01 of this subtitle may submit an application for a video lottery operation license. (c) A video lottery operation license issued under this subtitle is not valid at a geographic location other than the geographic location authorized in the license awarded by the Video Lottery Facility Location Commission and issued by the State Lottery and Gaming Control Commission. (d) (1) In this subsection, "owner" includes any type of owner or beneficiary of a business entity, including an officer, director, principal employee, partner, investor, stockholder, or beneficial owner of the business entity and, notwithstanding any other provisions of this subtitle, including a person having any ownership interest regardless of the percentage of ownership interest. (2) An individual or business entity may not own an interest in more than one video lottery facility. (3) A member of the Senate of Maryland or the House of Delegates may not be an owner or an employee of any business entity that holds a video lottery operation license. (4) Notwithstanding paragraphs (1) and (2) of this subsection: (i) an individual or business entity may enter into a management agreement to operate a facility located in Allegany County that it does not own, subject to the approval of the Video Lottery Facility Location Commission and the State Lottery and Gaming Control Commission; and (ii) a holder of a video lottery operation license may apply to the Video Lottery Facility Location Commission for an additional license provided that the application required under Sec. 9-1A-36 of this subtitle includes a plan for divesting from the video lottery operation license held on the date of the application. #### Section 9-1A-06 (a) Except as provided in Sec.Sec. 10-14A-03 and 10-14B-03 of this article, the following persons shall be licensed under this subtitle: (1) a video lottery operator; (2) a manufacturer; (3) a person not licensed under item (1) or (2) of this subsection who manages, operates, supplies, provides security for, or provides service, maintenance, or repairs for video lottery terminals or table games; and (4) a video lottery employee. (b) The Commission may by regulation require a person that contracts with a licensee and the person's employees to obtain a license under this subtitle if the Commission determines that the licensing requirements are necessary in order to protect the public interest and accomplish the policies established by this subtitle. (c) (1) Except as provided in paragraph (2) of this subsection or Sec.Sec. 10-14A-03 and 10-14B-03 of this article, unless an individual holds a valid license issued under this subtitle, the individual may not be employed by a licensee as a video lottery employee. (2) The Commission by regulation may exempt categories of video lottery employees who are not directly involved in the video lottery operations from the requirement under paragraph (1) of this subsection if the Commission determines that the requirement is not necessary in order to protect the public interest or accomplish the policies established under this subtitle. (d) For a period of 1 year after the individual's service on the State Lottery and Gaming Control Commission or the Video Lottery Facility Location Commission ends, a licensee may not employ, or enter into a financial relationship with, an individual who has been a member of the State Lottery and Gaming Control Commission or the Video Lottery Facility Location Commission. #### Section 9-1A-07 (a) Except as provided in Sec. 9-1A-36 of this subtitle, an applicant for a license shall submit to the Commission an application: (1) in the form that the Commission requires; and (2) on or before the date set by the Commission. (b) (1) This subsection does not apply to license fees for a video lottery operation license. (2) The Commission shall by regulation establish a fee for a license under this subtitle. (3) An applicant shall submit the fee with the application. (c) (1) Applicants and licensees shall have the affirmative responsibility to establish by clear and convincing evidence the person's qualifications. (2) Applicants and licensees shall provide information required by this subtitle and satisfy requests for information relating to qualifications in the form specified by the Commission or the Video Lottery Facility Location Commission, if applicable. (3) Applicants and licensees shall consent to inspections, searches, and seizures authorized by this subtitle or regulations issued under this subtitle. (4) (i) Applicants and licensees shall have the continuing duty to: (1) provide assistance or information required by the Commission; and (2) cooperate in an inquiry, investigation, or hearing conducted by the Commission. (ii) On issuance of a formal request to answer or produce information, evidence, or testimony, if an applicant or licensee refuses to comply, the application or license of the person may be denied, suspended, or revoked by the Commission. (5) (i) If the applicant is an individual, the applicant shall be photographed and fingerprinted for identification and investigation purposes. (ii) If the applicant is not an individual, the Commission by regulation may establish the categories of individuals who shall be photographed and fingerprinted for identification and investigation purposes. (6) (i) Applicants and licensees shall have a duty to inform the Commission of an act or omission that the person knows or should know constitutes a violation of this subtitle or the regulations issued under this subtitle. (ii) Applicants and licensees may not discriminate against a person who in good faith informs the Commission of an act or omission that the person believes constitutes a violation of this subtitle or the regulations issued under this subtitle. (7) Applicants and licensees shall produce information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence: (i) the financial stability, integrity, and responsibility of the applicant or licensee; (ii) the integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application; (iii) the applicant's or licensee's good character, honesty, and integrity; (iv) sufficient business ability and experience of the applicant or licensee; and (v) that: (1) the applicant or licensee has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent video lottery and hospitality industry workers in the State; (2) the labor peace agreement is valid and enforceable under 29 U.S.C. Sec. 158; (3) the labor peace agreement protects the State's revenues by prohibiting the labor organization and its members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the operation of the video lottery facility within the first 5 years of the effective date of the video lottery operation license; and (4) the labor peace agreement applies to all operations at the video lottery facility that are conducted by a lessee or tenant or under a management agreement. (d) (1) On the filing of an application for any license required under this subtitle and any supplemental information required by the Commission, the Commission shall: (i) conduct a background investigation under Sec. 9-1A-20 of this subtitle on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license; and (ii) if the applicant is applying for a video lottery operation license, conduct a hearing on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license. (2) The Commission may refer an application for a license to an approved vendor under Sec. 9-1A-20 of this subtitle to conduct the background investigation for the Commission. (e) (1) Except for a video lottery operation license, after receiving the results of the background investigation, the Commission may either grant a license to an applicant whom the Commission determines to be qualified or deny the license to an applicant whom the Commission determines to be not qualified or disqualified. (2) If an application for a license is denied, the Commission shall prepare and file an order denying the license with a statement of the reasons for the denial, including the specific findings of fact. (f) (1) Except for a video lottery operation license as provided in Sec. 9-1A-13 of this subtitle, if satisfied that an applicant is qualified to receive a license, and on tender of all required application, license, and other fees and taxes, and any bond required under Sec. 9-1A-04(e) of this subtitle, the Commission shall issue a license for a term of 5 years. (2) The Commission may stagger the terms of licenses. (g) (1) An individual may not knowingly give false information or make a material misstatement in an application required for any license under this subtitle or in any supplemental information required by the Commission. (2) An individual who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both. #### Section 9-1A-08 (a) In addition to other information required by this subtitle, a business entity applying for a video lottery operation license shall provide the following information: (1) the organization, financial structure, and nature of all businesses operated by the business entity; (2) the names, personal employment, and, when applicable, criminal histories of the officers, directors, partners, and principal employees of the business entity; (3) the names of all holding, intermediary, and subsidiary companies or other similar business entities of the business entity; (4) the organization, financial structure, and nature of all businesses operated by the business entity's holding, intermediary, and subsidiary companies or other similar business entities; (5) the rights and privileges acquired by the holders of different classes of authorized securities, partnership interests, or other similar ownership interests of the business entity and its holding, intermediary, and subsidiary companies or other similar business entities; (6) the terms on which the securities, partnership interests, or other similar ownership interests have been or are to be offered; (7) the terms and conditions of all outstanding loans, mortgages, trust deeds, pledges, or other indebtedness or security devices utilized by the business entity; (8) the extent of the equity security holding in the business entity of the officers, directors, partners, and underwriters and their remuneration in the form of salary, wages, fees, or otherwise; (9) the names of persons other than the directors and officers who occupy positions specified by the Commission or whose compensation exceeds an amount determined by the Commission; (10) the names of persons who own or control the business entity; (11) a description of all bonus and profit sharing arrangements; (12) copies of management and service contracts; and (13) a listing of stock options. (b) If a business entity that applies for a video lottery operation license is a subsidiary or if a business entity holding a video lottery operation license is to become a subsidiary, each holding company and each intermediary company with respect to the business entity shall, as a condition of the subsidiary acquiring or retaining a video lottery operation license: (1) qualify to do business in the State; or (2) furnish the Commission with the information required under subsection (a) of this section and other information that the Commission or the Video Lottery Facility Location Commission may require. (c) (1) Except as provided in paragraph (2) of this subsection, an individual applying for a video lottery operation license shall provide, to the extent applicable to an individual, the information required under subsection (a) of this section in the form required by the Commission. (2) The Commission may waive the requirement to provide the information required under subsection (a) of this section for an institutional investor. (d) The Commission shall disqualify an applicant for a video lottery operation license on the basis of any of the following criteria: (1) failure of the applicant to prove by clear and convincing evidence that the applicant and each person who owns or controls the application are qualified under the provisions of this subtitle; (2) failure of the applicant or any person required to be qualified under this subtitle as a condition of a license to provide information, documentation, and assurances required by this subtitle or requested by the Commission; (3) failure of the applicant or any person required to be qualified under this subtitle as a condition of a license to reveal any fact material to qualification; (4) supplying, by the applicant or any person required to be qualified under this subtitle as a condition of a license, information that is untrue or misleading as to a material fact concerning the qualification criteria; (5) conviction of the applicant or of any person required to be qualified under this subtitle as a condition of a license of an offense under the laws of any jurisdiction that is a criminal offense involving moral turpitude or a gambling offense; (6) current prosecution of the applicant or a person who is required to be qualified under this subtitle as a condition of a license for an offense described under item (5) of this subsection, provided that, at the request of the applicant, the Commission may defer its decision on the application during the pendency of the charge; (7) pursuit by the applicant or a person who is required to be qualified under this subtitle as a condition of a license of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of this subtitle; (8) identification of the applicant or a person who is required to be qualified under this subtitle as a condition of a license as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of this subtitle; (9) commission of an act within the prior 7 years by the applicant or a person who is required to be qualified under this subtitle as a condition of a license that would constitute an offense described under item (5) of this subsection, even if the act was not prosecuted or may not be prosecuted under the criminal laws of any jurisdiction; and (10) willful defiance by the applicant or a person who is required to be qualified under this subtitle as a condition of a license of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity. #### Section 9-1A-09 (a) As a condition of eligibility for funding under Sec. 9-1A-29 of this subtitle, a racing licensee shall: (1) (i) (1) for Rosecroft Raceway, for any year that funding is provided, conduct a minimum of 60 annual live racing days unless otherwise agreed to by the racing licensee and the organization that represents the majority of licensed standardbred owners and trainers in the State or unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee's control; and (2) for Ocean Downs Racetrack, for any year that funding is provided, conduct a minimum of 40 annual live racing days unless otherwise agreed to by the racing licensee and the organization that represents the majority of licensed standardbred owners and trainers in the State or unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee's control; and (ii) if the racing licensee receives funding without providing and expending a matching fund, conduct live racing days in the State for at least 10 years after the construction plan required under Sec. 9-1A-29(e) of this subtitle is complete; (2) develop and submit to the State Racing Commission a multiyear plan to improve the quality and marketing of horse racing at racetrack locations owned or operated by the racing licensee in Maryland, which shall include: (i) goals, indicators, and timelines for specific actions that will be taken by the racing licensee to improve the quality and marketing of the horse racing industry in Maryland; and (ii) a master plan for capital improvements that reflects, at a minimum: (1) commitments that have been made to the State Racing Commission; (2) updates to any prior master plan specifically identifying capital improvements and expenditures made on or after January 1, 2018; and (3) an ongoing investment in capital maintenance and improvements in the horse racing facilities; and (3) for each year that funding is requested, spend at least the following minimum amounts for capital maintenance and improvements, which may include amounts provided as a matching fund if the racing licensee elects to provide and expend a matching fund under Sec. 9-1A-29(e)(2) of this subtitle: (i) for Rosecroft Raceway, $300,000; and (ii) for Ocean Downs Racetrack, $300,000. (b) As part of the capital maintenance and improvement items in the plan submitted under subsection (a)(2) of this section, a racing licensee shall include any improvements necessary to ensure that the condition of any part of the racetrack facility where individuals reside is satisfactory for human habitation and meets minimum housing and sanitation standards in the county where the facility is located. (c) The plans required under subsection (a) of this section shall also be provided to the Department of General Services and to the Legislative Policy Committee of the General Assembly. #### Section 9-1A-10 (a) (1) The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this section. (2) To the extent practicable and authorized by the United States Constitution, a licensee shall comply with the State's Minority Business Enterprise Program. (b) (1) (i) An applicant or a licensee is subject to: (1) the requirement to put forth a good faith effort to meet the minority business participation goal established for a unit by the Special Secretary for the Office of Small, Minority, and Women Business Affairs under Sec. 14-302(a)(1)(ii) of the State Finance and Procurement Article; and (2) any other corresponding provisions of law under Title 14, Subtitle 3 of the State Finance and Procurement Article. (ii) The minority business participation goal shall apply to: (1) construction related to video lottery terminals; and (2) procurement related to the operation of video lottery terminals, including procurement of equipment and ongoing services. (2) If the county in which a video lottery facility will be located has higher minority business participation requirements than the State as described in paragraph (1) of this subsection, the applicant shall meet the county's minority business participation requirements to the extent possible. (3) A county in which a video lottery facility will be located may impose local business, local minority business participation, and local hiring requirements to the extent authorized by local law and permitted by the United States Constitution. (4) Any collective bargaining agreement or agreements, including a project labor agreement or a neutrality agreement, entered into by an applicant or licensee may not negate the requirements of this subsection. (5) If an applicant for employment at a video lottery facility believes that the applicant has been discriminated against in the employment process, the applicant may appeal the employment decision to the local human relations board in the county where the facility is located. (6) Notwithstanding any collective bargaining agreement or agreements, a licensee shall: (i) provide health insurance coverage for its employees; and (ii) give a preference to hiring qualified employees from the communities within 10 miles of the video lottery facility. (7) A licensee shall: (i) provide retirement benefits for its employees; and (ii) if the licensee is a racetrack licensee, provide retirement benefits to its video lottery operation employees that are equivalent to the level of benefits provided to the racetrack employees who are eligible under the Maryland Racetrack Employees Pension Fund. (8) Notwithstanding any collective bargaining agreement or agreements, if the licensee is a racetrack location, the licensee shall provide health insurance coverage to all employees of the racetrack, including the employees of the racetrack on the backstretch of the racetrack. (c) (1) The Commission shall ensure that a video lottery operation licensee complies with the requirements of subsection (b)(1) and (2) of this section as a condition of holding the video lottery operation license. (2) The Office of Small, Minority, and Women Business Affairs shall monitor a licensee's compliance with subsection (b)(1) and (2) of this section. (3) The Office of Small, Minority, and Women Business Affairs shall report to the Commission at least every 6 months on the compliance of licensees with subsection (b)(1) and (2) of this section. (4) If the Office of Small, Minority, and Women Business Affairs reports that a licensee is not in compliance with subsection (b)(1) and (2) of this section, the Commission may take immediate action to ensure the compliance of the licensee. (d) On or after July 1, 2031, the provisions of subsections (b)(1) and (2) and (c) of this section and any regulations adopted under subsections (b)(1) and (2) and (c) of this section shall be of no effect and may not be enforced. #### Section 9-1A-11 (a) Any video lottery operation licenses not issued or awarded for a location authorized under this subtitle shall automatically revert to the State. (b) (1) Except as provided in paragraphs (2) and (3) of this subsection, a licensee shall commence operation of video lottery terminals in a permanent facility at the location for which the video lottery operation license has been awarded within 18 months after the license is awarded. (2) (i) On a determination by the Commission that extenuating circumstances exist that are beyond the control of an awardee and have prevented the awardee from complying with the requirements of paragraph (1) of this subsection, the Commission may allow the awardee an extension of 6 months to comply with the requirements. (ii) The Commission may not grant more than two extensions to an awardee under this paragraph. (3) Notwithstanding paragraphs (1) and (2) of this subsection, the Commission may allow an awardee of a video lottery operation license in Prince George's County to commence operation in a permanent facility more than 18 months, but not more than 30 months, after the license is awarded. (4) If a video lottery operation awardee fails to comply with the requirements of this subsection, the license awarded to the awardee shall be revoked and shall automatically revert to the State. (c) (1) Nothing in this subtitle may be construed to prohibit a video lottery operation licensee that is issued a license from beginning video lottery terminal or table game operations in a temporary facility that meets the minimum requirements established in regulations adopted by the State Lottery and Gaming Control Commission. (2) Notwithstanding the provisions of paragraph (1) of this subsection, a video lottery operation licensee shall be operational in a permanent facility no later than 30 months after the award of the video lottery operation license. (3) Notwithstanding paragraph (1) of this subsection, a video lottery facility in Prince George's County may not begin video lottery terminal or table game operations in a temporary facility or in a structure, including a hotel or conference center, that exists on August 15, 2012. (d) (1) For a location in Allegany County, if video lottery terminals are permanently located in the Rocky Gap Lodge and Resort, the licensee shall restrict public access to the video lottery facility from the Rocky Gap Lodge and Resort. (2) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, for a location in Allegany County, if video lottery terminals are permanently located in the Rocky Gap Lodge and Resort and existing meeting space is eliminated as a result of the video lottery terminals, the licensee shall provide for meeting space that is accessible from the Rocky Gap Lodge and Resort within 36 months after issuance of the video lottery operation license, subject to the approval of the Video Lottery Facility Location Commission and the State Lottery and Gaming Control Commission. (ii) The licensee shall restrict public access to the video lottery facility from any meeting space provided under subparagraph (i) of this paragraph. (iii) The licensee may not begin table game operations until the licensee submits evidence satisfactory to the State Lottery and Gaming Control Commission that replacement work has begun to provide meeting space equal to or greater than the eliminated meeting space. #### Section 9-1A-12 If a video lottery operation licensee contracts with another person other than an employee of the video lottery operation licensee to provide any of the services related to operating a video lottery facility, each person and each other person who owns or controls the person or management and supervisory personnel and other principal employees of the person shall qualify under the standards and provisions set forth in Sec.Sec. 9-1A-07 and 9-1A-08 of this subtitle for video lottery operation licensees. #### Section 9-1A-13 (a) The initial term of a video lottery operation license is 15 years from the date on which the video lottery facility is issued the license by the Commission. (b) During the initial term of a video lottery operation license, the licensee shall provide the Commission with an annual update of the information required under this subtitle for the issuance of a license by the date set by the Commission in regulations and on the form required by the Commission. (c) At least 2 years but not more than 5 years before the expiration of the initial 15-year license term or a renewal term of a video lottery operation license, the licensee shall file with the Commission a notice of intent to apply for renewal of the license under this subtitle. (d) (1) This subsection applies to the first renewal of a video lottery operation license following the initial 15-year term and each subsequent renewal of the license. (2) A renewal of a video lottery operation license is for a term of 15 years. (3) At least 1 year but not more than 5 years before the end of the initial 15-year license term or a renewal term, a video lottery operation licensee may file an application to renew a video lottery operation license. (4) On proper application for renewal of a video lottery operation license, the Commission shall renew the license unless the Commission finds that the licensee is no longer qualified under this subtitle to hold a license. (5) Before denying an application under this subsection, the Commission shall provide the video lottery operation licensee an opportunity for a hearing. (6) (i) For each 5-year period of the 15-year term, the video lottery operation licensee shall pay a fee equal to 0.75% of the average annual proceeds from the operation of video lottery terminals and table games at the video lottery facility for the preceding 3-year period, to be paid in equal annual installments. (ii) The video lottery operation licensee shall pay each installment: (1) for the first year of the 15-year term, on the effective date of the renewed license; and (2) for the remaining 14 years of the 15-year term, if the licensee remains qualified to hold a license under this subtitle, on the date of the anniversary of the effective date of the renewed license. (iii) The Commission shall pay the renewal license fees submitted under this paragraph to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (e) If a licensee has its license revoked or otherwise surrenders the license, the video lottery operation license reverts to the State. #### Section 9-1A-14 (a) Unless an individual holds a valid video lottery employee license or temporary video lottery employee license issued by the Commission, the individual may not be employed by a video lottery operation licensee as a video lottery employee. (b) Before issuance of a video lottery employee license, an applicant shall provide sufficient information, documentation, and assurances that the Commission may require. (c) (1) The Commission shall deny a video lottery employee license to an applicant who is disqualified due to: (i) the applicant's failure to prove the applicant's good character, honesty, and integrity; (ii) the applicant's lack of expertise or training to be a video lottery employee; (iii) except as provided in paragraphs (2) and (3) of this subsection, the applicant's conviction, active parole, or probation for any crime involving moral turpitude or gambling under the laws of the United States or any state within the prior 7 years; (iv) except as provided in paragraphs (2) and (3) of this subsection, the applicant's current prosecution for any crime involving moral turpitude or gambling under the laws of the United States or any state, but, at the request of the applicant, the Commission may defer a decision on the application during the pendency of the charge; (v) pursuit by the applicant of economic gain in an occupational manner or context that is in violation of the laws of the State, if the pursuit creates a reasonable belief that participation of the applicant in video lottery operations would be inimical to the policies of this subtitle; (vi) identification of the applicant as a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in a manner that creates a reasonable belief that the association is of a nature as to be inimical to the policies of this subtitle; (vii) willful defiance by the applicant or a person that is required to be qualified under this subtitle as a condition of a license of a legislative investigatory body or other official investigatory body of the United States or a jurisdiction within the United States when the body is engaged in the investigation of crimes relating to gambling, official corruption, or organized crime activity; and (viii) any other reason established in the regulations of the Commission as a reason for denying a license. (2) (i) In this paragraph, "problem-solving court" means a problem-solving court under the Office of Problem-Solving Courts, or a comparable program from another state court system, that provides a collaborative, therapeutic, nonadversarial approach to judicial supervision of eligible offenders, including a drug court, DUI court, veterans' court, mental health court, or reentry court. (ii) An applicant is not disqualified from licensure under paragraph (1)(iii) or (iv) of this subsection if the conviction, active parole, probation, or prosecution involves a nonviolent misdemeanor offense, other than a crime involving gambling, for which the applicant participated in and completed a problem-solving court program. (3) An applicant is not disqualified from licensure under paragraph (1)(iii) or (iv) of this subsection if: (i) the conviction, active parole, probation, or prosecution involves a nonviolent misdemeanor offense, other than a crime involving gambling; (ii) the applicant will not be employed by the video lottery operation licensee in the operation of gaming or security; and (iii) the video lottery operation licensee requests that the Commission issue the license notwithstanding the conviction, active parole, probation, or prosecution. (d) (1) The Commission may issue a temporary video lottery employee license that authorizes an applicant to be employed as a video lottery employee. (2) The Commission: (i) may issue a temporary license to an applicant who: (1) files a completed application for a video lottery employee license; and (2) acknowledges, in writing, that the State is not financially responsible for any consequences resulting from termination of the temporary license under paragraph (4) of this subsection; and (ii) may not issue a temporary license to an applicant who: (1) has an immediately known present or prior activity, criminal record, reputation, habit, or association that would disqualify the applicant from holding a video lottery employee license under this subtitle; or (2) poses a serious imminent risk of harm to the integrity, security, or profitability of the State's gaming program. (3) (i) A temporary license issued under this subsection expires 180 days after the date of issue. (ii) The Commission may extend a temporary license for an additional 180 days. (4) Notwithstanding Sec. 9-1A-04(a)(3) of this subtitle, the Commission may terminate without a hearing the temporary license of an applicant for: (i) failure to pay a required fee; (ii) failure to submit required information to the Commission; (iii) failure to comply with the Commission's staff requests; (iv) engaging in conduct that obstructs the Commission from completing the applicant's background investigation; or (v) any other reason established in the regulations of the Commission. (5) If the Commission denies the application for a video lottery employee license of an applicant who has been issued a temporary license, the applicant immediately shall surrender the applicant's temporary license identification to the Commission and cease working as a video lottery employee. #### Section 9-1A-15 (a) (1) Unless a manufacturer holds a valid manufacturer's license issued by the Commission before conducting business with a licensee or the State, the manufacturer may not offer any video lottery terminal, central monitor and control system, associated equipment or software, or goods or services that directly relate to the operation of video lottery terminals under this subtitle. (2) Unless a manufacturer holds a valid manufacturer's license issued by the Commission before conducting business with a licensee, the manufacturer may not offer any table games or table game equipment under this subtitle. (b) Each manufacturer, and each person that owns or controls the manufacturer or management and supervisory personnel and other principal employees of the manufacturer, shall qualify under the standards and provisions set forth in Sec.Sec. 9-1A-07 and 9-1A-08 of this subtitle for video lottery operation licensees. (c) Except as provided in Sec. 9-1A-16(a) of this subtitle, the Commission may not grant an exemption or waiver of any licensing requirement to an applicant for or holder of a manufacturer's license. (d) (1) A manufacturer of the video lottery terminals, central monitor and control system, and associated equipment and software shall manufacture or distribute the video lottery terminals, central monitor and control system, and associated equipment and software that meet specifications and procedures established by the Commission. (2) A manufacturer of table games and table game equipment shall manufacture or distribute the table games and table game equipment that meet specifications and procedures established by the Commission. #### Section 9-1A-16 (a) For all licenses required under this subtitle other than a video lottery operation license, if an applicant or licensee holds a valid license in another state and the Commission determines that the licensing standards of the other state are comprehensive, thorough, and provide similar adequate safeguards to those provided in this subtitle, the Commission may: (1) waive some or all of the requirements of this subtitle; and (2) issue a license to a person having a similar license in another state. (b) (1) Except as provided in subsection (c) of this section, on the request of an applicant, the Commission may grant an exemption or waiver of a licensing requirement or grounds for denial of a license if the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary in order to protect the public interest or accomplish the policies established by this subtitle. (2) On granting to an applicant an exemption or waiver of a licensing requirement or grounds for denial of a license, or at any time after a waiver or exemption has been granted, the Commission may: (i) limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and (ii) require the person that is granted the exemption or waiver to cooperate with the Commission and to provide the Commission with any additional information required by the Commission as a condition of the waiver or exemption. (c) The Commission may not waive any of the requirements of this subtitle related to a video lottery operation license. #### Section 9-1A-17 (a) This section does not apply to the renewal of a video lottery operation license. (b) Subject to the power of the Commission to deny, revoke, or suspend a license, a license in force may be renewed by the Commission for the next succeeding license period on: (1) proper application for renewal; and (2) payment of all required application, license, and other fees and taxes. #### Section 9-1A-18 (a) Because the public has a vital interest in video lottery and table game operations and has established a limited exception to the policy of the State concerning gambling for private gain, participation in video lottery and table game operations by a licensee under this subtitle shall be deemed a revocable privilege conditioned on the proper and continued qualification of the licensee and on the discharge of the affirmative responsibility of each licensee to provide to the regulatory and investigatory authorities under this subtitle or any other provision of law, any assistance and information necessary to assure that the policies declared by this subtitle are achieved. (b) Consistent with the policy described in subsection (a) of this section, it is the intent of this section to: (1) preclude: (i) the creation of any property right in any license required under this subtitle; (ii) the accrual of any monetary value to the privilege of participation in video lottery operations; and (iii) the transfer of any license issued under this subtitle; and (2) require that participation in video lottery operations be conditioned solely on the continuing individual qualifications of the person who seeks the privilege. #### Section 9-1A-19 (a) Except as provided in subsection (b) of this section, a license issued under this subtitle may not be: (1) transferred or assigned to another person; or (2) pledged as collateral. (b) (1) A licensee may not sell or otherwise transfer more than 5% of the legal or beneficial interests of the licensee unless: (i) the licensee notifies the Commission of the proposed sale or transfer; (ii) the Commission determines that the proposed buyer or transferee meets the requirements of this subtitle; and (iii) the transfer is consistent with the policies and intent of Sec. 9-1A-18 of this subtitle. (2) Unless the Commission needs a longer time to determine whether the proposed buyer or transferee meets the requirements of this subtitle, if the requirements of paragraph (1) of this subsection are not satisfied, a license issued under this subtitle is automatically revoked 90 days after the sale or transfer. #### Section 9-1A-20 (a) In this section, "approved vendor" means a person that: (1) specializes in conducting background investigations; (2) has experience in the gaming industry; and (3) obtains the approval of the Commission to conduct background investigations under this section. (b) The Commission or an approved vendor shall conduct a background investigation in a timely manner of: (1) an applicant for a video lottery operation license; (2) a video lottery operator; and (3) any other applicant the Commission considers necessary. (c) (1) An applicant shall provide the Commission or an approved vendor with all information the Commission requires in order to conduct a background investigation. (2) Failure to provide timely or accurate information is grounds for the Commission to deny an application. (d) (1) The Commission or an approved vendor shall apply to the Central Repository for a State and a national criminal history records check for the applicant, if required by the Commission. (2) As part of the application for a criminal history records check, the Commission or an approved vendor shall submit to the Central Repository: (i) two complete sets of the applicant's legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation; (ii) the fee authorized under Sec. 10-221(b)(7) of the Criminal Procedure Article for access to Maryland criminal history records; (iii) the mandatory processing fee required by the Federal Bureau of Investigation for a national criminal history records check; and (iv) the mandatory processing fee required by Interpol for an international criminal history records check. (3) In accordance with Sec.Sec. 10-201 through 10-234 of the Criminal Procedure Article, the Central Repository shall forward to the applicant and the Commission a printed statement of the applicant's criminal history record information. (4) Information obtained from the Central Repository under this section: (i) shall be confidential; (ii) may not be redisseminated; and (iii) may be used only in connection with the issuance of a license required under this subtitle. (5) The subject of a criminal history records check under this section may contest the contents of the printed statement issued by the Central Repository as provided in Sec. 10-223 of the Criminal Procedure Article. (e) After completion of a background investigation conducted under this section, an approved vendor shall promptly forward the results of the investigation to the Commission. (f) The Commission shall adopt regulations specifying the factors used to determine whether an applicant for a license must submit to an international criminal history records check. #### Section 9-1A-21 (a) (1) The central monitor and control system and the associated equipment and software shall be: (i) owned or leased by the Commission; and (ii) under the control of the Commission. (2) (i) Except as provided in subparagraphs (ii) and (iii) of this paragraph, each video lottery terminal device and the associated equipment and software shall be owned or leased by the video lottery facility. (ii) (1) Subject to subsubparagraph 2 of this subparagraph, for a video lottery facility located in Allegany County or Worcester County, each video lottery terminal device and the associated equipment and software shall be owned or leased by the video lottery facility after March 31, 2020. (2) A video lottery facility located in Allegany County or Worcester County may apply to the Commission for permission to assume ownership or the right to lease each video lottery terminal device used by the facility. (iii) For a video lottery facility located in Anne Arundel County or Cecil County, the Commission shall own each video lottery terminal device and the associated equipment and software through March 31, 2015. (3) The savings that are attributable to requiring video lottery facilities to own or lease the video lottery terminals and associated equipment and software shall be appropriated to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle in the year in which the spending would have otherwise occurred. (b) Subject to the Commission's ability to cancel or alter the contract in the event one or more eligible applicants for a video lottery facility fail to obtain a license, the Commission shall contract with one or more licensed manufacturers for the lease or purchase of the video lottery terminals, central monitor and control system, and associated equipment and software authorized under this subtitle. (c) (1) The Commission shall adopt regulations governing the sale or lease of video lottery terminals by the Commission under this subtitle. (2) The Commission may adopt regulations to provide incentives to licensed manufacturers based on the performance of the manufacturers' video lottery terminals. (d) The Commission shall establish a process enabling a licensee and the Commission to select video lottery terminals from a list approved by the Commission, subject to available funds, for use in the licensee's video lottery facility. #### Section 9-1A-22 (a) Except as provided in subsections (b) and (c) of this section, a video lottery terminal shall have an average payout percentage of at least 85%. (b) The Commission may by regulation establish an average payout percentage of more than 88% but not more than 95% for video lottery operation licensees. (c) The Commission may approve an average payout percentage of more than 95% for the video lottery terminals at a video lottery facility. #### Section 9-1A-23 (a) A video lottery facility may operate 24 hours a day. (b) A video lottery operation licensee shall be responsible for all marketing, advertising, and promotion for its video lottery operation. (c) Any State lottery games that are offered by or through the Commission may be offered for sale at a video lottery facility in the State. #### Section 9-1A-24 (a) Except as provided in subsection (b) of this section, the Commission shall ensure that a video lottery operation licensee complies with the requirements of this section as a condition of holding the video lottery operation license. (b) (1) The county alcoholic beverages licensing authority for the county in which a video lottery facility is located shall ensure that the video lottery operation licensee complies with the requirements of this subsection. (2) Except as provided in paragraph (4) of this subsection, a video lottery operation licensee may not provide food or alcoholic beverages to individuals at no cost. (3) Any food or alcoholic beverages offered by a video lottery operation licensee for sale to individuals may be offered only at prices that are determined by the county alcoholic beverages licensing authority to be commensurate with the price of similar types of food and alcoholic beverages at restaurants in the county in which the video lottery facility is located. (4) A video lottery operation licensee may provide food at no cost to individuals to the same extent allowed under Sec. 6-310 of the Alcoholic Beverages and Cannabis Article for a person engaged in the sale or barter of spirituous, malt, or intoxicating liquors and licensed under the laws of Maryland. (c) (1) Except as provided in paragraph (2) of this subsection, a video lottery operation licensee shall ensure that intoxicated individuals and individuals under the age of 21 years are not allowed to play video lottery terminals or table games and are not allowed in areas of the video lottery facility where video lottery terminals or table games are located. (2) A video lottery operation licensee may allow a video lottery employee who is an adult to enter or remain in an area within the video lottery facility that is designated for table game or video lottery terminal activities if the video lottery employee is working. (d) (1) By regulation, the Commission shall provide for the establishment of a list of individuals who are to be mandatorily excluded or ejected by a video lottery operation licensee from any video lottery operation licensed under this subtitle. (2) The regulations under this subsection shall define the standards for exclusion or ejection and shall include standards relating to individuals: (i) who are career offenders as defined by regulations adopted by the Commission; (ii) who have been convicted of a criminal offense under the laws of the United States or any jurisdiction within the United States that is a criminal offense involving moral turpitude or a gambling offense; or (iii) whose presence in the establishment of a licensee would be adverse to the interest of the State, the licensee, or the person. (3) The Commission may impose sanctions on a licensee in accordance with this subtitle if the licensee knowingly fails to exclude or eject from the premises of the licensee an individual placed by the Commission on the list of individuals to be excluded or ejected. (4) An order under this subsection is subject to judicial review. (e) (1) By regulation, the Commission shall adopt measures that are intended to reduce or mitigate the effects of problem gambling. (2) The regulations shall: (i) include establishment of a voluntary exclusion list of individuals with gambling problems who have requested to be excluded from any video lottery operation licensed under this subtitle; and (ii) provide a simple mechanism for an individual who is sober and informed to request placement on the voluntary exclusion list for a specified period of time. (3) A video lottery operation licensee may not permit an individual on the voluntary exclusion list to enter into the video lottery facility or to play a video lottery terminal. (4) The Commission may impose sanctions on a licensee in accordance with this subtitle if the licensee knowingly fails to exclude from the premises of the licensee an individual on the voluntary exclusion list. (f) In order to protect the public interest, the regulations shall include provisions that: (1) limit the number and location of and maximum withdrawal amounts from automated teller machines; (2) prohibit authorized automated teller machines from accepting electronic benefit cards, debit cards, or similar negotiable instruments issued by the Department of Human Services for the purpose of accessing temporary cash assistance; (3) require payouts above an amount adopted by the Commission to be made by check; (4) require conspicuous disclosures related to the payout of video lottery terminals; (5) limit the dollar amount that video lottery terminals will accept; (6) prohibit the use of specified negotiable instruments at video lottery facilities and the use of credit cards, debit cards, and similar devices in video lottery terminals; (7) provide consumers with a record of video lottery terminal spending levels if marketing measures are utilized that track consumer spending at video lottery facilities; (8) prohibit consumers from cashing paychecks at video lottery facilities; and (9) prohibit video lottery operation licensees from engaging in or contracting with another to engage in predatory marketing practices. (g) (1) A video lottery operation licensee may not, directly or indirectly, interfere with, hinder, obstruct, impede, or take any action to delay the implementation or establishment of a video lottery facility by any other licensee or applicant for a video lottery operation license awarded or issued under this subtitle. (2) (i) The Commission shall adopt regulations, to the fullest extent allowed by the first amendment of the Constitution of the United States, to carry out the provisions of this subsection. (ii) The regulations adopted under this subsection shall include provisions: (1) that expressly prohibit: (A) taking any of the actions described in paragraph (1) of this subsection relating to the issuance of required State or local governmental approvals for the establishment of a video lottery facility; or (B) providing funding or other material support to engage in any of the actions described in paragraph (1) of this subsection; (2) that prohibit, as unlawful indirect conduct, activity: (A) by an entity in which the licensee owns a beneficial or proprietary interest; or (B) by an entity in which an affiliate of the licensee owns a beneficial or proprietary interest; and (3) that allow the Commission to impose sanctions and penalties in accordance with Sec. 9-1A-25 of this subtitle if a licensee knowingly violates paragraph (1) of this subsection. #### Section 9-1A-25 (a) The Commission may deny a license to an applicant, reprimand or fine a licensee, or suspend or revoke a license for a violation of: (1) this subtitle; (2) a regulation adopted under this subtitle; or (3) a condition that the Commission sets. (b) (1) For each violation specified in subsection (a) of this section, the Commission may impose a penalty not exceeding $5,000. (2) Each day that a person is in violation under this section shall be considered a separate violation. (3) To determine the amount of the penalty imposed under paragraph (1) of this subsection, the Commission shall consider: (i) the seriousness of the violation; (ii) the harm caused by the violation; and (iii) the good faith or lack of good faith of the person who committed the violation. (c) Except as otherwise expressly provided in this subtitle, nothing contained in this subtitle abrogates or limits the criminal laws of the State or limits the authority of the General Assembly to enact statutes establishing criminal offenses and penalties relating to video lottery operations. #### Section 9-1A-26 (a) (1) Except as provided in paragraphs (2) and (3) of this subsection, all proceeds from the operation of video lottery terminals and table games shall be electronically transferred daily into the State Lottery Fund established under Subtitle 1 of this title and distributed as provided under Sec. 9-1A-27 of this subtitle. (2) The requirement under paragraph (1) of this subsection does not apply on a day when State government is closed. (3) The amount from the proceeds of video lottery terminals to be paid to video lottery operation licensees under Sec. 9-1A-27(a)(2), (7), and (8), (b), and (c)(1)(ii) and (2) of this subtitle shall be retained by the licensee. (b) (1) The Commission shall account to the Comptroller for all of the revenue under this subtitle. (2) The proceeds from video lottery terminals and table games shall be under the control of the Comptroller and, except as provided in subsection (c) of this section, shall be distributed as provided under Sec. 9-1A-27 of this subtitle. (c) A jackpot won at a video lottery terminal that is not claimed by the winner within 182 days after the jackpot is won shall: (1) become the property of the State; and (2) be distributed as follows: (i) (2) 5% to the Small, Minority, and Women-Owned Businesses Account established under Sec. 5-1501 of the Economic Development Article; (ii) (9) 5% in local impact grants, in accordance with Sec. 9-1A-31 of this subtitle; (iii) 10% to the Purse Dedication Account established under Sec. 9-1A-28 of this subtitle; (iv) (1) 5% to the Racetrack Facility Renewal Account established under Sec. 9-1A-29 of this subtitle; and (v) the remainder to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (d) The admissions and amusement tax may not be imposed on any proceeds from the operation of video lottery terminals and table games. (e) The Commission shall adopt regulations that allow a video lottery operation licensee to reduce the amount of proceeds when a video lottery operation licensee returns to successful players more than the amount of money bet through video lottery terminals or table games on a given day that are consistent with Sec. 9-1A-01(u) of this subtitle. #### Section 9-1A-27 (a) Except as provided in subsections (b) and (c) of this section and Sec. 9-1A-26(a)(3) of this subtitle, on a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the proceeds of video lottery terminals at each video lottery facility: (1) (i) on or before March 31, 2015, 2% to the State Lottery and Gaming Control Agency for costs as defined in Sec. 9-1A-01 of this subtitle; and (ii) beginning April 1, 2015, 1% to the State Lottery and Gaming Control Agency for costs as defined in Sec. 9-1A-01 of this subtitle; (2) to the video lottery operation licensee, the percentage stated in the accepted application for the location, not to exceed, except as provided in subsection (b) of this section, 33%; (3) (5) 5% in local impact grants, in accordance with Sec. 9-1A-31 of this subtitle; (4) 6% to the Purse Dedication Account established under Sec. 9-1A-28 of this subtitle, not to exceed a total of $100,000,000 to the Account annually; (5) (i) until the issuance of a video lottery operation license in Baltimore City, 1.75% to the Racetrack Facility Renewal Account established under Sec. 9-1A-29 of this subtitle and distributed in accordance with that section; and (ii) on or after the issuance of a video lottery operation license in Baltimore City, 1% to the Racetrack Facility Renewal Account established under Sec. 9-1A-29 of this subtitle and distributed in accordance with that section, not to exceed a total of $20,000,000 to the Account annually; (6) (1) 5% to be distributed: (i) $5,000,000 to the Maryland Small Business Development Financing Fund established under Sec. 5-515 of the Economic Development Article; and (ii) the remainder to the Small, Minority, and Women-Owned Businesses Account established under Sec. 5-1501 of the Economic Development Article; (7) (i) except as provided in items (ii) and (iii) of this item, 6% to the video lottery operation licensee if the video lottery operation licensee owns or leases each video lottery terminal device and the associated equipment and software; (ii) 8% to the video lottery operation licensee in Anne Arundel County; and (iii) 10% to the video lottery operation licensee in Allegany County or Worcester County if the video lottery operation licensee assumes ownership or the right to lease each video lottery terminal device and the associated equipment and software used by the facility before January 1, 2019; (8) beginning after the issuance of a video lottery operation license for a video lottery facility in Prince George's County, 8% to the video lottery operation licensee in Anne Arundel County and 7% to the licensee in Baltimore City for: (i) marketing, advertising, and promotional costs required under Sec. 9-1A-23 of this subtitle; and (ii) capital improvements at the video lottery facilities; (9) to each video lottery operation licensee, an amount equal to 20% of the amount paid by the video lottery licensee under Sec. 9-1A-13 of this subtitle, for costs required under Sec. 9-1A-23 of this subtitle for marketing, advertising, and promotions that exclusively target out-of-state audiences; and (10) the remainder to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (b) (1) Beginning July 1, 2013, for a video lottery facility in Worcester County with less than 1,000 video lottery terminals, the percentage in subsection (a)(2) of this section is equal to 43% provided that each year an amount equivalent to 2.5% of the proceeds from video lottery terminals at the video lottery facility is spent on capital improvements at the video lottery facility. (2) After the first 10 years of operations at a video lottery facility in Allegany County, the percentage in subsection (a)(2) of this section is equal to 48% provided that each year an amount equivalent to 2.5% of the proceeds from video lottery terminals at the video lottery facility is spent on capital improvements at the video lottery facility. (3) For a video lottery facility in Prince George's County, the percentage in subsection (a)(2) of this section stated in the accepted application for the location may not exceed 38%. (4) Beginning July 1, 2023, for a video lottery facility in Cecil County, the percentage in subsection (a)(2) of this section is equal to 36% provided that each year an amount equivalent to 3% of the proceeds from video lottery terminals at the video lottery facility is spent on: (i) marketing, advertising, and promotional costs required under Sec. 9-1A-23 of this subtitle; and (ii) capital improvements at the video lottery facility. (5) Beginning July 1, 2023, for a video lottery facility in Baltimore City, the percentage in subsection (a)(2) of this section is equal to 34% provided that each year an amount equivalent to 1% of the proceeds from video lottery terminals at the video lottery facility is spent on: (i) marketing, advertising, and promotional costs required under Sec. 9-1A-23 of this subtitle; and (ii) capital improvements at the video lottery facility. (c) (1) For the first 10 years of operations at a video lottery facility in Allegany County, on a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the proceeds of video lottery terminals at a video lottery facility in Allegany County: (i) 1% to the State Lottery and Gaming Control Agency for costs as defined in Sec. 9-1A-01 of this subtitle; (ii) to the video lottery operation licensee, the percentage stated in the accepted application for the location, not to exceed 50%; (iii) (3) 75% in local impact grants, in accordance with Sec. 9-1A-31 of this subtitle; (iv) (2) 5% to the Purse Dedication Account established under Sec. 9-1A-28 of this subtitle; (v) (1) except as provided in items 2 and 3 of this item, 0.75% to the Small, Minority, and Women-Owned Businesses Account established under Sec. 5-1501 of the Economic Development Article; (2) for fiscal year 2018, 0.75% to the General Fund to pay a portion of the costs of the grants provided under Chapters 6 and 607 of the Acts of the General Assembly of 2017; and (3) for fiscal years 2019 and 2020, 0.75% to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle; and (vi) the remainder to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (2) After the first 10 years of operations at a video lottery facility in Allegany County, the proceeds generated at the facility in Allegany County shall be allocated as provided in subsections (a) and (b) of this section. (d) (1) Each video lottery operation licensee shall retain 80% of the proceeds of table games at the video lottery facility. (2) On a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the proceeds of table games at each video lottery facility: (i) 5% to the local jurisdiction in which the video lottery facility is located, provided that: (1) 50% of the proceeds paid to Baltimore City shall be used to fund school construction projects; and (2) 50% of the proceeds paid to Baltimore City shall be used to fund the maintenance, operation, and construction of recreational facilities; and (ii) 15% to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (e) (1) If the costs of the State Lottery and Gaming Control Agency are less than the proceeds specified in subsection (a)(1) of this section, any amount not distributed to the State Lottery and Gaming Control Agency shall be paid to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (2) The costs of the Commission shall be as provided in the State budget. (f) On or before December 1, 2019, and every year thereafter, the State Lottery and Gaming Control Commission shall report to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly on the distribution of proceeds of video lottery terminals to licensees for the procurement of video lottery terminals; marketing, advertising, and promotional costs; and capital improvements and the distributions of local impact grants to jurisdictions under Sec. 9-1A-31 of this subtitle. (g) Baltimore City shall report to the Baltimore City Senate and House Delegations by December 31 of each year as to the distribution and use of the funds provided under subsection (d) of this section. #### Section 9-1A-28 (a) There is a Purse Dedication Account under the authority of the State Racing Commission. (b) (1) The Account shall receive money as required under Sec. 9-1A-27 of this subtitle. (2) Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account. (3) The Comptroller shall: (i) account for the Account; (ii) for fiscal year 2022 and each fiscal year thereafter, on a properly approved transmittal prepared by the Maryland Stadium Authority, issue a warrant to pay out $5,000,000, from the portion of the proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this section, to the State Lottery Fund established under Sec. 9-120 of this title until any bonds, debt, or other financial instruments issued or made available by the Maryland Stadium Authority for a racing facility under Title 10, Subtitle 6 of the Economic Development Article reach final maturity; (iii) for fiscal year 2028 and each fiscal year thereafter, on a properly approved transmittal prepared by the Maryland Economic Development Corporation, issue a warrant to pay out $2,000,000, from the portion of the proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this section, to the Corporation established under Title 10, Subtitle 1 of the Economic Development Article until any bonds, debt, or other financial instruments issued or made available by the Corporation for a training facility site and other improvements under Title 10, Subtitle 6 of the Economic Development Article reach final maturity; (iv) beginning with the first full fiscal year of thoroughbred racing operations at the reconstructed Pimlico racing facility, for any fiscal year that the thoroughbred racetrack operator reports an operating loss, inclusive of thoroughbred purse account contributions, in accordance with Sec. 10-646.1 of the Economic Development Article, on a properly approved transmittal prepared by the Maryland Stadium Authority, issue a warrant to pay out the amount of the operating loss, from the portion of the proceeds in the Account allocated to thoroughbred purses under subsection (c)(1) of this section, to the thoroughbred racetrack operator; and (v) on a properly approved transmittal prepared by the State Racing Commission, issue a warrant to pay out money from the Account in the manner provided under this section. (4) The Account is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (5) Except as provided in paragraph (3)(ii) through (iv) of this subsection, expenditures from the Account shall only be made on a properly approved transmittal prepared by the State Racing Commission as provided under subsection (c) of this section. (c) Subject to subsections (d) and (e) of this section, the State Racing Commission shall allocate funds in the Account as follows: (1) 80% to the thoroughbred industry; and (2) 20% to the standardbred industry. (d) The amount of funds allocated to thoroughbred purses and the Maryland-bred Race Fund shall be allocated as follows: (1) 89% to thoroughbred purses at the Pimlico Race Course, Laurel Park, the racecourse in Allegany County, and the racecourse at Timonium; and (2) 11% to the Maryland-bred Race Fund. (e) The amount of funds allocated to standardbred purses and the Standardbred Race Fund shall be allocated as follows: (1) 89% to standardbred purses at Rosecroft Raceway, Ocean Downs Race Course, and the racecourse in Allegany County, allocated based on the number of live racing days at each track location; and (2) 11% to the Standardbred Race Fund. (f) From the amount provided to thoroughbred purses, the State Racing Commission shall pay an annual grant of $100,000 to Fair Hill, as defined under Sec. 11-811 of the Business Regulation Article. (g) (1) Of the amount provided from the Purse Dedication Account under subsection (e)(1) of this section: (i) for Ocean Downs Race Course, an amount equal to but not exceeding $30,000 multiplied by the total number of live racing days held during the calendar year may be used to provide financial assistance for operating losses incurred during that calendar year, in accordance with generally accepted accounting principles, to support a minimum of 40 annual live racing days unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee's control; and (ii) for Rosecroft Raceway, up to $1,200,000 each year for calendar years 2018, 2019, 2020, 2021, 2022, 2023, and 2024 may be used to provide financial assistance for operating losses, in accordance with generally accepted accounting principles, to support a minimum of 40 annual live racing days unless the racing licensee is prevented by weather, acts of God, or other circumstances beyond the racing licensee's control. (2) Funds received by Ocean Downs Race Course or Rosecroft Raceway under paragraph (1) of this subsection may not be used to contribute to a campaign finance entity under Title 13 of the Election Law Article or make an independent expenditure as defined in Sec. 1-101 of the Election Law Article. (h) (1) To obtain operating assistance under this section: (i) a racing licensee at Ocean Downs Race Course or Rosecroft Raceway may apply to the Secretary of Labor for the reimbursement of expenditures made by the racing licensee to conduct the annual live racing schedule; and (ii) a racing licensee at Rosecroft Raceway shall: (1) agree to rehire workers employed at the facility prior to the end of live racing on June 27, 2008; and (2) recognize collective bargaining agreements that were in place as of June 1, 2008. (2) (i) On the completion of the review of the application by a certified public accountant, the Secretary may authorize the reimbursement of expenditures by the racing licensee that are necessary to conduct the annual live racing schedule. (ii) Expenditures eligible for reimbursement under subparagraph (i) of this paragraph shall include the ordinary and reasonable costs of conducting the race meetings, pari-mutuel wagering, and stabling activities of the racing licensee, net of ordinary income and receipts. (iii) The reimbursement calculation under subparagraph (ii) of this paragraph may not include: (1) extraordinary income and expense-related items, including extraordinary litigation expenses; (2) lobbying fees; (3) capital investments, including predevelopment costs; or (4) prior year adjustments and claims. (3) All costs associated with the racing licensee's application shall be paid by the racing licensee. (4) In support of the racing licensee's application and request for reimbursement submitted under paragraph (1) of this subsection, the racing licensee shall provide to the Secretary: (i) monthly financial information requested by the Secretary, in a form satisfactory to the Secretary; and (ii) an annual audited financial statement. (5) A racing licensee may not receive assistance under this section while the racing licensee is a party to a proceeding challenging the issuance or denial of a video lottery operation license. (i) The provisions of this section may not be construed to apply to the racecourse in Allegany County until horse racing begins at that racecourse. (j) On or before December 1, 2014, the State Racing Commission shall: (1) conduct a study to determine the impact of the Purse Dedication Account on the racing industry in the State; and (2) make recommendations to the General Assembly regarding the continuation of the Purse Dedication Account and the amount of money distributed to the Purse Dedication Account. #### Section 9-1A-28.1 (a) In this section, "open purse" means any purse, except for one offered in a race funded by the Maryland Standardbred Race Fund. (b) (1) The organization that represents a majority of the standardbred owners and trainers in the State may apply to the Secretary of Labor for the reimbursement of expenditures listed in subsection (c) of this section. (2) From the amount allocated to the Purse Dedication Account under Sec. 9-1A-28(e)(1) of this subtitle, the Secretary may allocate to the organization that represents a majority of the standardbred owners and trainers in the State an amount for the reimbursement of expenditures requested under this subsection. (3) The amount allocated by the Secretary under paragraph (2) of this subsection, in addition to any amount agreed on under a contractual arrangement with track licensees, may not exceed 2% of all open purses. (c) Expenditures eligible for reimbursement under subsection (b) of this section include the ordinary and reasonable costs of establishing and maintaining the following programs for standardbred owners and trainers: (1) counseling programs to address issues such as drug addiction, depression, marital problems, and financial problems; (2) preventive care programs such as health fairs, mammogram screenings, and flu vaccination clinics; (3) group health, life, and on-track drivers' insurance plans; and (4) retirement programs. (d) The reimbursement calculation under subsection (c) of this section may not include: (1) extraordinary income and expense-related items, including extraordinary litigation expenses; (2) lobbying fees; (3) capital investments, including predevelopment costs; or (4) prior year adjustments and claims. (e) In support of an application and a request for reimbursement submitted under subsection (b) of this section, the organization shall provide to the Secretary of Labor in a form satisfactory to the Secretary: (1) an itemized statement under oath for the preceding fiscal year of receipts from all sources and of all disbursements, including salaries of all officers, attorney fees, and lobbying expenses; and (2) a certified audit by a certified public accountant of the financial records of the organization for the preceding fiscal year. #### Section 9-1A-29 (a) There is a Racetrack Facility Renewal Account under the authority of the State Racing Commission. (b) (1) The Account shall receive money as required under Sec. 9-1A-27 of this subtitle for the first 16 years of operations at each video lottery facility. (2) Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account. (3) The Comptroller shall: (i) account for the Account; and (ii) on a properly approved transmittal prepared by the State Racing Commission, issue a warrant to pay out money from the Account in the manner provided under this section. (4) The Account is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (5) Expenditures from the Account shall only be made on a properly approved transmittal prepared by the State Racing Commission as provided under subsection (c) of this section. (6) (i) Subject to subparagraph (ii) of this paragraph, the State Racing Commission may use the services of a certified public accountant to review an eligible request for or the expenditures of a grant under this section. (ii) A racing licensee that has requested a grant under this section shall reimburse the State Racing Commission for any expenditures for services under subparagraph (i) of this paragraph. (c) Except as provided in subsection (d)(1) of this section, funds from the Account shall be used to provide a grant to the racing licensee for racetrack facility capital construction and improvements. (d) (1) The amount of funds made available from the Racetrack Facility Renewal Account shall be allocated as follows: (i) (1) for fiscal year 2021, 80% to be deposited in the Racing and Community Development Facilities Fund established under Sec. 10-657.3 of the Economic Development Article; and (2) for fiscal year 2022 and thereafter, 80% to the State Lottery Fund established under Sec. 9-120 of this title; and (ii) subject to paragraph (2) of this subsection, 20% to Rosecroft Raceway and Ocean Downs Race Course according to a formula established in regulations adopted by the State Racing Commission. (2) Of the amount available to Rosecroft Raceway from the Racetrack Facility Renewal Account under paragraph (1)(ii) of this subsection: (i) the unencumbered fund balance, including accrued interest, existing as of June 30, 2020, shall be transferred to the Racing and Community Development Facilities Fund established under Sec. 10-646.3 of the Economic Development Article; and (ii) subject to paragraph (3) of this subsection, for fiscal year 2021 and each fiscal year thereafter, $200,000 shall be transferred annually to Employ Prince George's, Inc. for workforce development and small, minority, and women-owned business development. (3) (i) It is the intent of the General Assembly that the funds transferred to Employ Prince George's, Inc. shall supplement, and not supplant, funds otherwise available for Employ Prince George's, Inc. (ii) If Employ Prince George's, Inc. is unable to expend the funds transferred under paragraph (2)(ii) of this subsection during the 12-month period after which Employ Prince George's, Inc. received the funds, Employ Prince George's, Inc. shall partner with similar organizations located within Prince George's County to expend the balance of the funds from that period to encourage workforce development and small, minority, and women-owned business development. (4) For fiscal year 2026, the Governor shall include in the annual budget bill an appropriation of $4,500,000 to the Racetrack Facility Renewal Account to be made available to Rosecroft Raceway. (e) (1) In order to obtain a grant, a racing licensee shall submit a capital construction plan to be completed within a specified time frame to the State Racing Commission for approval. (2) Subject to Sec. 9-1A-09(a)(1)(ii) of this subtitle and the approval of the grant for the capital construction plan by the State Racing Commission, the racing licensee may provide and expend a matching fund. (f) (1) After a grant has been provided under this section, the State Racing Commission shall: (i) in consultation with the Department of General Services, monitor the implementation of the approved capital construction plan; (ii) on written request from the grantee, in consultation with the Department of General Services, certify in writing that the grantee has completed the approved capital construction plan; and (iii) make provisions for recapture of grant money if the capital construction plan is not completed within the time frame approved by the State Racing Commission. (2) If a racing licensee receives a grant for a capital construction plan without expending a matching fund and does not complete the capital construction plan or conduct live racing days in the State for at least 10 years after the construction plan is complete, the State Racing Commission shall: (i) if the racing licensee does not conduct live racing days in the State for at least 10 years after the construction plan is complete, calculate the amount to be repaid on a pro rata basis and recapture the grant money; or (ii) recapture the grant money. (g) Any unencumbered funds remaining in the Racetrack Facility Renewal Account after the last video lottery facility to open has been in operation for 16 years shall be paid to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (h) (1) The State Racing Commission shall adopt regulations to implement the provisions of this section, including regulations to: (i) address minimum criteria for the types of improvements to be made by the racing licensee; (ii) establish a formula to allocate funds under subsection (d)(2) of this section between Rosecroft Raceway and Ocean Downs Race Course; and (iii) establish guidelines for a racing licensee that requests a grant for a capital construction plan without expending a matching fund. (2) (i) If Rosecroft Raceway is closed and no longer used for live racing, 75% of the unencumbered fund balance, including accrued interest, of the amount available to Rosecroft Raceway from the Racetrack Facility Renewal Account under subsection (d)(1)(ii) of this section shall be made available to Ocean Downs Race Course. (ii) If Ocean Downs Race Course is closed and no longer used for live racing, 75% of the unencumbered fund balance, including accrued interest, of the amount available to Ocean Downs from the Racetrack Facility Renewal Account under subsection (d)(1)(ii) of this section shall be made available to Rosecroft Raceway. (i) The provisions of this section may not be construed to apply to the racecourse in Allegany County. #### Section 9-1A-30 (a) In this section, "supplemental funding" means funding to: (1) ensure access to public education that allows children in the State to compete in the global economy of the future; (2) provide funding for high-quality early education programs; (3) provide opportunities for public school students to participate in career and technical education programs that lead to an identified job skill or certificate; (4) allow students to obtain college credit and degrees while in high school at no cost to the students; (5) support the advancement and professionalization of educators in public education; and (6) maintain, renovate, or construct public schools. (b) There is an Education Trust Fund which is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (c) (1) There shall be credited to the Education Trust Fund: (i) all proceeds allocated to the Fund under Sec. 9-1A-27 of this subtitle; (ii) all judgments paid to the Fund under Sec. 11-210 of the Education Article; and (iii) renewal license fees paid to the Fund under Sec. 9-1A-13 of this subtitle. (2) Money in the Education Trust Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall accrue to the Fund. (d) Money in the Education Trust Fund shall be used for the following purposes, in the following order of priority: (1) required deposits under Sec. 10-649(g) of the Economic Development Article into the Supplemental Public School Construction Financing Fund established under Sec. 10-658 of the Economic Development Article; (2) required funding for public elementary and secondary education, through continuation of the funding and formulas established under the programs commonly known as the Bridge to Excellence in Public Schools Act, first enacted by Chapter 288 of the Acts of the General Assembly of 2002, including the funding for regional differences in the cost of education under Sec. 5-202(f) of the Education Article; and (3) supplemental funding for education and public schools. (e) (1) The Governor's annual budget submission shall include not less than the following amounts as supplemental funding for public education from the Education Trust Fund: (i) for fiscal year 2020, $125,000,000; (ii) for fiscal year 2021, $250,000,000; (iii) for fiscal year 2022, $375,000,000; and (iv) for fiscal year 2023 and each fiscal year thereafter, 100% of the funds. (2) (i) The supplemental funding required under paragraph (1) of this subsection shall be in addition to the State funding and formulas provided through the funding formulas established in the Bridge to Excellence in Public Schools Act of 2002 for prekindergarten through grade 12 in public schools. (ii) Beginning in fiscal year 2020 and in each fiscal year thereafter, the Governor shall identify in the annual budget as introduced how the revenue required under this subsection is being used to supplement and not supplant the spending on public education for prekindergarten through grade 12. (f) Expenditures from the Education Trust Fund shall be made each fiscal year in accordance with the State budget. #### Section 9-1A-31 (a) (1) Except as provided in paragraph (8) of this subsection, the local impact grants provided under Sec. 9-1A-27 of this subtitle shall be distributed as provided in this subsection. (2) The following amounts shall be distributed to the following jurisdictions: (i) Allegany County - $200,000; (ii) Cecil County - $130,000; (iii) Town of Forest Heights - $120,000; (iv) Town of Perryville - $70,000; and (v) Worcester County - $200,000. (3) The remaining funds for local impact grants shall be distributed in the following manner: (i) 82% to the local jurisdictions with video lottery facilities, based on each jurisdiction's percentage of overall gross revenues from video lottery terminals; and (ii) except as provided in paragraph (4) of this subsection, for operations at a video lottery facility starting in fiscal year 2012 and ending in fiscal year 2032, 18% to Baltimore City with the Pimlico Community Development Authority acting as the local development council in accordance with subsection (d) of this section, to be distributed primarily for capital projects benefiting economic and community development in the following manner: (1) (A) for fiscal years 2012 through 2023, at least 75% in a manner that is consistent with the Park Heights Master Plan; and (B) for fiscal years 2024 through 2032, 85% in a manner that is consistent with the Park Heights Master Plan; and (2) the remainder dedicated to the needs of: (A) any census blockgroup that Baltimore City identifies as being located partly or entirely within 1 mile of Pimlico Race Course but not within the boundaries of the Park Heights Master Plan in a manner that is consistent with adopted neighborhood priorities; (B) any neighborhood included in the Northwest Community Planning Forum Strategic Neighborhood Action Plan in a manner that is consistent with the adopted Northwest Community Planning Forum Strategic Neighborhood Action Plan priorities; and (C) beginning after a video lottery operation license is issued to a video lottery facility in Baltimore City, any neighborhood within an area bounded by Liberty Heights Avenue, Northern Parkway, Druid Park Drive, and Wabash Avenue in a manner that is consistent with adopted neighborhood priorities. (4) (i) Of the amount specified under paragraph (3)(ii) of this subsection: (1) $1,000,000 shall be provided annually to Prince George's County to be used for public safety projects in the community within 5 miles surrounding Rosecroft Raceway; (2) $500,000 shall be provided annually for impact aid to be distributed as provided under Sec. 11-404(d) of the Business Regulation Article to help pay for facilities and services in communities within 3 miles of the Laurel Race Course; (3) for fiscal years 2022 through 2032, $3,500,000 shall be provided annually to the State Lottery Fund established under Sec. 9-120 of this title; and (4) for fiscal years 2021 through 2032, the greater of $2,400,000 or 24% of the total amount distributed for the fiscal year under paragraph (3)(ii) of this subsection shall be provided annually to Park Heights Renaissance, Inc. (ii) The Legislative Policy Committee shall report its findings and recommendations concerning the advisability of the continuation of the distribution of funds after fiscal year 2032 to the Comptroller and, in accordance with Sec. 2-1257 of this article, the General Assembly, on or before November 1, 2030. (5) Anne Arundel County, Howard County, Prince George's County, and the City of Laurel shall report to the Legislative Policy Committee, in accordance with Sec. 2-1257 of this article, by December 31 of each year as to the distribution of the funds provided under this section. (6) Baltimore City shall: (i) except as provided in subsection (b)(3)(i) of this section, establish a schedule for the distribution and expenditure of funds provided under this section; and (ii) provide a quarterly report to the Legislative Policy Committee, in accordance with Sec. 2-1257 of this article, on the distribution of the funds provided under this section. (7) (i) The distribution under paragraph (3)(i) of this subsection to Anne Arundel County, Baltimore City, and Prince George's County equals the sum of the amounts to be distributed to Anne Arundel County, Baltimore City, and Prince George's County divided by three. (ii) (1) Notwithstanding subparagraph (i) of this paragraph, the amount distributed to Anne Arundel County and Baltimore City under paragraph (3)(i) of this subsection may not be less than the amount received in the fiscal year before the video lottery operation license for a video lottery facility in Prince George's County was issued. (2) Any amount distributed to Anne Arundel County or Baltimore City as required under subsubparagraph 1 of this subparagraph shall be paid from the State Lottery Fund established under Sec. 9-120(b) of this title. (8) Beginning after a video lottery operation license is issued to a video lottery facility in Baltimore City, 100% of the local impact grants provided under Sec. 9-1A-27 of this subtitle from the proceeds of the video lottery facilities located in Allegany, Cecil, and Worcester counties shall be distributed to the local jurisdictions in which those video lottery facilities are located. (b) (1) Except as otherwise provided in paragraphs (2) and (3) of this subsection and subject to paragraph (4) of this subsection, local impact grants provided under subsection (a)(3)(i) of this section shall be used for improvements primarily in the communities in immediate proximity to the video lottery facilities and may be used for the following purposes: (i) infrastructure improvements; (ii) facilities; (iii) public safety; (iv) sanitation; (v) economic and community development, including housing; and (vi) other public services and improvements. (2) (i) Subject to subparagraph (ii) of this paragraph, in Allegany County, local impact grants provided under subsection (a)(3)(i) of this section may be used: (1) for purposes listed in paragraph (1) of this subsection throughout the county; and (2) to pay down the debt incurred by the county in the construction and related costs for the golf course, lodge, and other improvements in Rocky Gap State Park. (ii) At least 20% of the local impact grants provided under subsection (a)(3)(i) of this section in Allegany County shall be used for capital projects for municipalities and nonprofit organizations in the county. (3) (i) In Baltimore City from the local impact grants provided under subsection (a)(3)(i) of this section: (1) beginning in fiscal year 2018, at least 50% shall be distributed directly to the South Baltimore Gateway Community Impact District Management Authority; and (2) beginning in fiscal year 2033 and each fiscal year thereafter, $3,500,000 shall be paid annually to the State Lottery Fund established under Sec. 9-120 of this title until any bonds, debt, or other financial instruments issued or made available by the Maryland Stadium Authority for a racing facility under Title 10, Subtitle 6 of the Economic Development Article reach final maturity. (ii) Except as provided in subparagraph (i)2 of this paragraph, local impact grants provided under subsection (a)(3)(i) of this section shall be used for improvements in the communities in immediate proximity to the video lottery facility and may be used for the following purposes: (1) infrastructure improvements; (2) facilities; (3) public safety; (4) sanitation; (5) economic and community development, including housing; and (6) other public services and improvements. (4) (i) (1) Subject to subsubparagraph 2 of this subparagraph, in Prince George's County, 40% of local impact grants provided under this section shall be used to address infrastructure needs related to Maryland Route 210 in Prince George's County. (2) The amount of local impact grants used as provided in subsubparagraph 1 of this subparagraph may not exceed $15,000,000 in a fiscal year. (3) Prince George's County may be reimbursed by the State for any money used as provided in this subparagraph. (ii) In Prince George's County, $125,000 of the local impact grants provided under this section shall be provided annually to be used in communities within 2.5 miles northeast of the video lottery facility in Prince George's County. (c) (1) A local development council shall be established in each geographic area where a video lottery facility is located. (2) Subject to paragraph (3) of this subsection, a local development council shall consist of the following members appointed by the chief executive of the county in which the local development council is located, in consultation with the Senators and Delegates who represent the communities surrounding the facility and the respective county councils, city councils, or county commissioners: (i) one Senator who represents the district where the facility is located or the Senator's designee; (ii) two Delegates who represent the districts where the communities surrounding the facility are located or the Delegates' designees; (iii) one representative of the video lottery operation licensee; (iv) seven residents of the communities in immediate proximity to the facility; and (v) four representatives of businesses or institutions located in immediate proximity to the facility. (3) (i) If the video lottery facility is at a racetrack location at the Ocean Downs Race Course: (1) the County Commissioners of Worcester County shall appoint the local development council; (2) the Senator or the Senator's designee shall serve as a member of the local development council; and (3) the Delegates or the Delegates' designees shall serve as members of the local development council. (ii) If the video lottery facility is located in Anne Arundel County, the County Executive shall appoint three Delegates who represent the district where the communities surrounding the facility are located or the Delegates' designees. (d) (1) Prior to any expenditure of local impact grant funds provided under Sec. 9-1A-27 of this subtitle, a county or municipality shall develop, in consultation with the local development council, a multiyear plan for the expenditure of the local impact grant funds for services and improvements consistent with subsection (b) of this section. (2) A county or municipality shall submit the plan to the local development council for review and comment before adopting the plan or expending any grant funds. (3) The local development council shall advise the county or municipality on the impact of the facility on the communities and the needs and priorities of the communities in immediate proximity to the facility. (4) (i) A local development council shall have 45 days to review, comment, and make recommendations on the plan required under this subsection. (ii) Except as provided in subparagraph (iii) of this paragraph, on the request of a local development council, the county or municipality shall hold a public hearing on the plan. (iii) Baltimore City shall hold a public hearing on the plan for the expenditure of funds allocated under subsection (a)(3)(ii) of this section. (5) A county or municipality shall make best efforts to accommodate the recommendations of the local development council and any testimony presented at the hearing before adopting the plan required under this subsection. (e) A video lottery operation licensee shall provide to the local development council a master plan for the development of the site on which the video lottery facility will be located. #### Section 9-1A-32 (a) The State may pay for the reasonable transportation costs to: (1) mitigate the impact on the communities in the immediate proximity to the facility; and (2) make each video lottery facility accessible to the public. (b) (1) A comprehensive transportation plan shall be: (i) developed by each county where a facility is located, in consultation with the local development council created under Sec. 9-1A-31 of this subtitle; and (ii) approved by the Maryland Department of Transportation. (2) The comprehensive transportation plan shall include provisions on roads and provisions regarding mass transit if mass transit is a substantial manner of transportation in the county where a video lottery facility is located. (c) The Maryland Department of Transportation shall facilitate negotiations with affected communities to ensure the most practical ingress to and egress from the video lottery facility. (d) (1) Notwithstanding any other provision of this section, the Department of Transportation may pay for and undertake the improvement and enhancement of MD Route 589 from the intersection of MD Route 50 through MD Route 113 in Worcester County to address the needs related to traffic capacity, public safety, and esthetics in the area where a video lottery facility is located. (2) The Department may take the necessary steps to ensure that the plans for the improvements and enhancements to MD Route 589 are under development on or before the date on which the video lottery facility at the Worcester County location is operational and open to the public. #### Section 9-1A-33 (a) (1) The Commission shall: (i) establish an annual fee of $425, to be paid by each video lottery operation licensee, for each video lottery terminal operated by the licensee during the year, based on the maximum number of terminal positions in use during the year; and (ii) distribute the fees collected under item (i) of this paragraph to the Problem Gambling Fund established in subsection (b) of this section. (2) The Commission may establish an annual fee of up to $500 for each table game to be paid by each video lottery operation licensee and distributed to the Problem Gambling Fund under subsection (b) of this section in order to ensure sufficient funds are available to provide requested services. (b) (1) (i) There is a Problem Gambling Fund in the Maryland Department of Health. (ii) The purpose of the Fund is primarily to provide funding for problem gambling treatment and prevention programs, including: (1) inpatient and residential services; (2) outpatient services; (3) intensive outpatient services; (4) continuing care services; (5) educational services; (6) services for victims of domestic violence; and (7) other preventive or rehabilitative services or treatment. (2) The Problem Gambling Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (3) Money in the Problem Gambling Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall accrue to the Fund. (4) Except as provided in paragraph (5) of this subsection, expenditures from the Problem Gambling Fund shall be made only by the Maryland Department of Health to: (i) establish a 24-hour hotline for compulsive and problem gamblers and to provide counseling and other support services for compulsive and problem gamblers; (ii) establish an outreach program for compulsive and problem gamblers, including individuals who requested placement on the voluntary exclusion list established by the Commission under Sec. 9-1A-24 of this subtitle, for the purpose of participating in problem gambling treatment and prevention programs; (iii) develop and implement free or reduced cost problem gambling treatment and prevention programs, including the programs established under Title 19, Subtitle 8 of the Health - General Article; and (iv) develop and implement free or reduced cost problem gambling treatment and prevention programs targeted at individuals with problem gambling issues related to sports wagering, participation in fantasy competitions, and other forms of wagering, whether legal or illegal, conducted in the State or through online means. (5) After satisfying the requirements of paragraph (4) of this subsection, any unspent funds in the Problem Gambling Fund may be expended by the Maryland Department of Health on drug and other addiction treatment services. (6) Expenditures from the Problem Gambling Fund shall be made in accordance with an appropriation approved by the General Assembly in the annual State budget or by the budget amendment procedure provided for in Sec. 7-209 of the State Finance and Procurement Article. #### Section 9-1A-34 The Commission shall make an annual report to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly: (1) on the operation and finances of the video lottery facilities; (2) with the assistance of local police departments and the Department of State Police, detailing the crimes that occur within the communities surrounding a video lottery facility; and (3) on the attainment of minority business participation goals specified for licensees under Sec. 9-1A-10(a)(1) and (2) of this subtitle and the efforts by licensees to maintain those goals. #### Section 9-1A-36 (a) There is a Video Lottery Facility Location Commission. (b) (1) The Video Lottery Facility Location Commission consists of seven members. (2) (i) Three of the members shall be appointed by the Governor. (ii) Two of the members shall be appointed by the President of the Senate but may not be members of the Senate of Maryland. (iii) Two of the members shall be appointed by the Speaker of the House of Delegates but may not be members of the House. (3) The membership of the Video Lottery Facility Location Commission appointed under this subsection should reflect the race, gender, and geographic diversity of the population of the State. (4) One of the members appointed by the Governor shall be the chair of the Video Lottery Facility Location Commission. (5) The Governor, in consultation with the President of the Senate and the Speaker of the House of Delegates, may remove a member of the Video Lottery Facility Location Commission for inefficiency, misconduct in office, or neglect of duty. (c) A member of the Video Lottery Facility Location Commission: (1) shall be at least 21 years of age; (2) shall be a citizen of the United States; (3) shall be a resident of the State; (4) shall be knowledgeable and experienced in fiscal matters and shall have at least 10 years substantial experience: (i) as an executive with fiduciary responsibilities in charge of a large organization or foundation; (ii) in an academic field relating to finance or economics; or (iii) as an economist, financial analyst, or accountant, or as a professional in a similar profession relating to fiscal matters or economics; (5) may not have been convicted of or granted probation before judgment for a serious crime or a crime that involves gambling or moral turpitude; (6) may not have an official relationship to a person that holds a license under this subtitle; (7) may not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any gaming activities, including horse racing, video lottery terminals, or lottery; (8) may not receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities, including horse racing or lottery; (9) may not have a beneficial interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of any independent consulting services in connection with any gaming establishment or gaming activity; (10) may not be an elected official of State or local government; and (11) shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 15, Subtitle 6 of this article. (d) A member of the Video Lottery Facility Location Commission: (1) may not receive compensation for serving on the Video Lottery Facility Location Commission; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (e) The State Lottery and Gaming Control Commission shall provide staff to the Video Lottery Facility Location Commission. (f) The Video Lottery Facility Location Commission may award not more than six video lottery operation licenses to qualified applicants, through a competitive process consistent with the process for competitive sealed proposals under Title 13 of the State Finance and Procurement Article. (g) The Video Lottery Facility Location Commission may not award more than one video lottery operation license in a single county or Baltimore City. (h) (1) In order to qualify for a video lottery operation license under this section, a proposed video lottery facility shall be located in one of the following counties: (i) a location in Anne Arundel County, within 2 miles of MD Route 295; (ii) a location in Cecil County, within 2 miles of Interstate 95; (iii) a location on State property associated with the Rocky Gap State Park in Allegany County; (iv) a location in Worcester County, within 1 mile of the intersection of Route 50 and Route 589; (v) a location in Baltimore City that is: (1) located: (A) in a nonresidential area; (B) within one-half mile of Interstate 95; (C) within one-half mile of MD Route 295; and (D) on property that is owned by Baltimore City on the date on which the application for a video lottery operation license is submitted; and (2) not adjacent to or within one-quarter mile of property that is: (A) zoned for residential use; and (B) used for a residential dwelling on the date the application for a video lottery operation license is submitted; or (vi) a location in Prince George's County within a 4-mile radius of the intersection of Bock Road and St. Barnabas Road. (2) Nothing in this subtitle may be construed to preempt the exclusive authority of the Video Lottery Facility Location Commission to award video lottery operation licenses in accordance with this subtitle. (3) (i) With respect to a video lottery operation license awarded to a location under paragraph (1)(iv) of this subsection, the holder of the video lottery operation license or any other person with a direct or indirect legal or financial interest in the Ocean Downs racetrack or video lottery facility may not build or operate a conference center or convention center, amusement park, amusement rides, arcade, or miniature golf course on or within 10 miles of the property owned by the holder of the license on which a video lottery facility is operated. (ii) The prohibitions under subparagraph (i) of this paragraph apply to any subsequent holder of a video lottery operation license awarded under paragraph (1)(iv) of this subsection. (i) (1) Except as provided in paragraphs (2) and (3) of this subsection, the Video Lottery Facility Location Commission may not allocate more than the following number of video lottery terminals for: (i) a location in Anne Arundel County - 4,750 video lottery terminals; (ii) a location in Baltimore City - 3,750 video lottery terminals; (iii) a location in Cecil County - 2,500 video lottery terminals; (iv) a location in Prince George's County - 3,000 video lottery terminals; (v) a location in Rocky Gap State Park (Allegany County) -1,500 video lottery terminals; and (vi) a location in Worcester County - 2,500 video lottery terminals. (2) The Video Lottery Facility Location Commission may allocate video lottery terminals in a manner that is different from the allocation provided in paragraph (1) of this subsection on a determination that the market factors and other factors evaluated under subsection (k) of this section warrant the different allocation, provided that no one location may be allocated more than 4,750 video lottery terminals. (3) (i) Beginning with the termination date for the Video Lottery Facility Location Commission and every 3 years thereafter, if all of the video lottery terminals authorized under this subtitle are not allocated or have been allocated but are not in regular operation, the State Lottery and Gaming Control Commission may allocate or reallocate video lottery terminals to video lottery operation licensees in a manner that ensures that the highest potential revenues are achieved. (ii) In determining the highest potential revenues to be achieved by additional video lottery terminals at each potential location, the State Lottery and Gaming Control Commission shall consider the market performance of the existing video lottery terminals at each location. (j) (1) (i) Except as provided in subparagraph (ii) of this paragraph, an application submitted for a video lottery operation license under this section shall include an initial license fee in the application of at least $3,000,000 for each 500 video lottery terminals included in the application. (ii) For an application submitted for a video lottery operation license in Allegany County, the initial license fee for up to 500 video lottery terminals shall be waived. (2) All initial license fees submitted under this subtitle shall accrue to the Education Trust Fund established under Sec. 9-1A-30 of this subtitle. (3) (i) An application submitted for a video lottery operation license under this section shall provide for at least $25,000,000 in direct investment by the applicant in construction and related costs for each 500 video lottery terminals contained in the proposed application that shall be prorated based on the exact number of video lottery terminals contained in the application. (ii) For an application submitted for a video lottery operation license in Allegany County, the purchase price for the Rocky Gap Lodge and Resort shall be counted in the calculation of the applicant's direct investment under this paragraph, as determined by the Video Lottery Facility Location Commission. (k) (1) In awarding a video lottery operation license, the Video Lottery Facility Location Commission shall evaluate the factors under this subsection in the manner specified. (2) The decision by the Video Lottery Facility Location Commission to award a license shall be weighted by 70% based on business and market factors including: (i) the highest potential benefit and highest prospective total revenues to be derived by the State; (ii) the potential revenues from a proposed location based on a market analysis; (iii) the extent to which the proposed location encourages Maryland gaming participants to remain in the State; (iv) the extent to which the proposed location demonstrates that the facility will be a substantial regional and national tourist destination; (v) the proposed facility capital construction plans and competitiveness of the proposed facility; (vi) the amount of gross revenues to be allocated to the video lottery operator over the term of the license; (vii) the percent of ownership by entities meeting the definition of minority business enterprise under Title 14, Subtitle 3 of the State Finance and Procurement Article; (viii) the extent to which the proposed location will preserve existing Maryland jobs and the number of net new jobs to be created; and (ix) the contents of the licensee's plan to achieve minority business participation goals in accordance with the requirements described under Sec. 9-1A-10(a)(1) and (2) of this subtitle. (3) The decision by the Video Lottery Facility Location Commission to award a license shall be weighted by 15% based on economic development factors, including: (i) the anticipated wages and benefits for new jobs to be created; and (ii) any additional economic development planned in the area of the proposed facility. (4) The decision by the Video Lottery Facility Location Commission to award a license shall be weighted by 15% based on location siting factors, including: (i) the existing transportation infrastructure surrounding the proposed facility location; (ii) the negative impact, if any, of a proposed facility location on the surrounding residential community; and (iii) the need for additional public infrastructure expenditures at the proposed facility. (l) (1) If an applicant is seeking investors in the entity applying for a video lottery operation license, it shall take the following steps before being awarded a license by the Video Lottery Facility Location Commission: (i) make serious, good-faith efforts to solicit and interview a reasonable number of minority investors; and (ii) as part of the application, submit a statement that lists the names and addresses of all minority investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application. (2) If an applicant is awarded a license by the Video Lottery Facility Location Commission, the applicant shall sign a memorandum of understanding with the Video Lottery Facility Location Commission that requires the awardee to again make serious, good-faith efforts to interview minority investors in any future attempts to raise venture capital or attract new investors to the entity awarded the license. (3) The Governor's Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority investors to satisfy the requirements under paragraphs (1)(i) and (2) of this subsection. (m) The Video Lottery Facility Location Commission may not award a video lottery operation license to a person that is not qualified under this section or this subtitle. (n) (1) The Video Lottery Facility Location Commission shall refer to the State Lottery and Gaming Control Commission the name and all relevant information concerning a person that makes an application under this section. (2) On receipt of the information in paragraph (1) of this subsection, the State Lottery and Gaming Control Commission shall evaluate whether an applicant is qualified to hold a video lottery operation license under this subtitle. (3) On completion of its determination, the State Lottery and Gaming Control Commission shall notify the Video Lottery Facility Location Commission of its evaluation as to whether an applicant is qualified to hold a video lottery operation license under this subtitle. (o) After an award of a video lottery operation license under this section, the Video Lottery Facility Location Commission shall notify the State Lottery and Gaming Control Commission of the successful applicants. (p) After an award of a video lottery operation license under this section, the State Lottery and Gaming Control Commission shall: (1) issue the video lottery operation license; and (2) be responsible for all matters relating to regulation of the licensee. (q) (1) An unsuccessful applicant for a video lottery operation license under this section may seek, under Title 15 of the State Finance and Procurement Article, review by the State Board of Contract Appeals of the awarding of the video lottery operation license by the Video Lottery Facility Location Commission. (2) A proceeding under this subsection shall: (i) take precedence on the Board's docket; (ii) be heard at the earliest practicable date; and (iii) be expedited in every way. (r) (1) Nothing in this subtitle may be construed to require the Video Lottery Facility Location Commission to award all six video lottery operation licenses authorized under this subtitle. (2) Notwithstanding any of the provisions of this subtitle, the Video Lottery Facility Location Commission may not award a video lottery operation license under this subtitle unless the Video Lottery Facility Location Commission determines and declares that an applicant selected for award of the license is in the public interest and is consistent with the purposes of this subtitle. (s) The Video Lottery Facility Location Commission may award a video lottery operation license that is revoked or surrendered utilizing the criteria established in this subtitle. (t) (1) Except as provided in paragraph (2) of this subsection, the Video Lottery Facility Location Commission shall terminate on January 1, 2015. (2) The Governor may reconstitute the Video Lottery Facility Location Commission, which shall include the appointment of new members based on the criteria established under subsections (b) and (c) of this section: (i) one year prior to the expiration of a video lottery operation license; or (ii) following the revocation or surrender of a video lottery operation license. #### Section 9-1A-37 (a) (1) The Commission may consider and make recommendations on proposed changes to this subtitle, Subtitle 1 of this title, and any provisions of the Alcoholic Beverages and Cannabis Article that relate to the regulation of alcoholic beverages at video lottery facilities. (2) On request of the Governor or the presiding officer of either house of the General Assembly, the Commission shall consider and make recommendations on proposed changes to this subtitle, Subtitle 1 of this title, and any provisions of the Alcoholic Beverages and Cannabis Article that relate to the regulation of alcoholic beverages at video lottery facilities. (3) A video lottery facility may request that the Commission consider and make recommendations on proposed changes to this subtitle and any provisions of the Alcoholic Beverages and Cannabis Article that relate to the regulation of alcoholic beverages at video lottery facilities. (b) (1) The Commission may recommend or propose legislation on any matter within or related to the jurisdiction of the Commission. (2) The Commission shall review and comment on any legislation introduced during a session of the General Assembly that relates to a matter within the jurisdiction of the Commission. #### Section 9-1A-38 (a) There is a Joint Committee on Gaming Oversight. (b) (1) The Committee consists of the following eight members: (i) four members of the Senate, appointed by the President of the Senate; and (ii) four members of the House of Delegates, appointed by the Speaker of the House. (2) At least one Senator and one Delegate appointed under this subsection shall be a member of the minority party. (c) The members of the Committee serve at the pleasure of the presiding officer who appointed them. (d) The President and the Speaker of the House shall appoint a Senator and a Delegate, respectively, to serve as cochairs. (e) (1) The Committee shall examine: (i) the status of the State's gaming program; and (ii) the implementation of new laws relating to gaming. (2) The Committee shall make recommendations for potential improvements to the State's gaming program. (f) The Department of Legislative Services shall provide staffing for the Committee. (g) A member of the Committee may not receive compensation for serving on the Committee, but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (h) On or before December 31 of each year, the Committee shall report its findings and recommendations to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly. ### Subtitle 1B. Amusement Gaming Licenses #### Section 9-1B-01 (a) In this subtitle the following words have the meanings indicated. (b) "Commission" means the State Lottery and Gaming Control Commission. (c) (1) "Family entertainment center" means a location with a street address: (i) where a person or legal entity offers licensed amusement, merchandise, redemption, or skills-based devices for operation or play to individuals of all ages; and (ii) that pays: (1) State and local property tax; (2) sales and use tax; and (3) admissions and amusement tax. (2) "Family entertainment center" does not include: (i) a location without a street address; (ii) the common area of a commercial building or facility; or (iii) a location that is operated primarily as a movie theater, bowling alley, skating rink, or any other similar establishment that displays or operates amusement devices only during the hours that the establishment makes its primary service or activity available to the public. #### Section 9-1B-02 (a) This section applies only in Worcester County. (b) The Commission may issue an amusement gaming license to a family entertainment center that satisfies the requirements of this section. (c) A family entertainment center may apply to the Commission for a license under this section if the family entertainment center: (1) is located in a building that is owned, leased, or occupied by the family entertainment center for the primary purpose of providing amusement devices to the public; (2) receives a majority of the gross receipts from amusement, merchandise, redemption, or skills-based devices; (3) markets its business to families with children; (4) offers amusement devices, arcade games, crane games, video games, interactive and sporting games, amusement rides, miniature golf, and bowling; and (5) is in continuous operation in the same geographic location since 1975. (d) (1) A family entertainment center that holds an amusement gaming license issued under this section may operate: (i) skills-based devices that award noncash prizes of minimal value; and (ii) up to 10 skills-based devices that award noncash prizes with a minimal wholesale value that does not exceed $599. (2) The Commission shall determine the value of the noncash prizes that may be awarded by a skills-based device under paragraph (1)(i) of this subsection. (e) A family entertainment center may not exchange merchandise for money. (f) The Commission may determine that a device at a family entertainment center is an illegal gaming device and order the device to be removed from the family entertainment center. (g) A family entertainment center that holds an amusement gaming license issued under this section may not transfer the license to another geographic location. ### Subtitle 1C. Gaming Laws #### Section 9-1C-01 (a) Notwithstanding any other provision of the Criminal Law Article, an individual who is at least 21 years old may conduct a home game involving wagering if the home game: (1) except as provided in subsection (b) of this section, is limited to mah jong or a card game; (2) is conducted not more than once a week: (i) in the place of residence of an individual who may also participate as a player in the home game; or (ii) in a common area of a residential property that is restricted to residents who are at least 55 years old; (3) allows a player to compete directly against one or more other players who share a preexisting social relationship; (4) does not allow an individual to benefit financially in any way, directly or indirectly, other than from the winnings accrued by participating as a player in the game; (5) does not involve: (i) a player's use of an electronic device that connects to the Internet; (ii) the use of paid public advertising or promotions; (iii) the charging of a fee for admission, a seat, entertainment, or food and drink or any other fee; or (iv) the use of any money except money used for wagering; and (6) has a limit of $1,000 on the total amount of money, tokens representing money, or any other thing or consideration of value that may be wagered by all players during any 24-hour period. (b) In Carroll County, a home game authorized under subsection (a) of this section may include bingo if it is conducted in a common area of a residential property that is restricted to residents who are at least 55 years old. ### Subtitle 1D. Fantasy Competitions #### Section 9-1D-01 (a) In this subtitle the following words have the meanings indicated. (b) "Commission" has the meaning stated in Sec. 9-1A-01 of this title. (c) "Entry fee" means cash or cash equivalents that a fantasy competition player is required to pay to a fantasy competition operator in order to participate in a fantasy competition. (d) "Fantasy competition" includes any online fantasy or simulated game or contest such as fantasy sports, in which: (1) participants own, manage, or coach imaginary teams; (2) all prizes and awards offered to winning participants are established and made known to participants in advance of the game or contest; (3) the winning outcome of the game or contest reflects the relative skill of the participants and is determined by statistics generated by actual individuals (players or teams in the case of a professional sport); and (4) no winning outcome is based: (i) solely on the performance of an individual athlete; or (ii) on the score, point spread, or any performances of any single real-world team or any combination of real-world teams. (e) (1) "Fantasy competition operator" means any person that offers services in connection with fantasy competitions to individuals by means of: (i) the Internet; (ii) a smart phone application; or (iii) any other electronics, digital media, communication technology, or device. (2) "Fantasy competition operator" includes, for purposes of the federal Bank Secrecy Act of 1970 and its related regulations, a gaming establishment having at least $1,000,000 in annual gross revenue. (3) "Fantasy competition operator" does not include an individual who: (i) organizes a fantasy competition in which the individual also participates; and (ii) receives no compensation for organizing the fantasy competition. (f) "Fantasy competition player" means an individual who participates in a fantasy competition offered by a fantasy competition operator. (g) "Location percentage" means, for a fantasy competition, the percentage, rounded to the nearest one-tenth of a percent, of the total entry fees collected by a fantasy competition operator from fantasy competition players in the State divided by the total entry fees collected from all fantasy competition players, regardless of the players' locations, of the fantasy contests. (h) "Proceeds" means, for a fantasy competition, the amount of entry fees collected by a fantasy competition operator from all fantasy competition players entering the fantasy competition, less winnings paid to fantasy competition players, multiplied by the location percentage. #### Section 9-1D-02 (a) Notwithstanding the provisions of Title 12 of the Criminal Law Article or any other title, and except as provided under subsection (b) of this section, the prohibitions against betting, wagering, and gambling do not apply to participation in a fantasy competition. (b) A person may not operate a kiosk or machine that offers fantasy competition to the public in a place of business physically located in the State. #### Section 9-1D-03 (a) A fantasy competition operator shall register with the Commission before the fantasy competition operator may offer a fantasy competition or services in connection with a fantasy competition in the State. (b) Unless a registration is renewed for a 1-year term, the registration expires 1 year from the initial date of registration. (c) The Commission may impose a fee for the registration of a fantasy competition operator in accordance with this section. #### Section 9-1D-04 (a) A fantasy competition operator shall retain 85% of the proceeds and pay the remainder to the Commission. (b) The Commission shall distribute the proceeds paid under subsection (a) of this section to the Blueprint for Maryland's Future Fund established under Sec. 5-206 of the Education Article. #### Section 9-1D-05 (a) The Commission shall adopt regulations to carry out the provisions of this subtitle. (b) The regulations adopted under this section may include requirements for the establishment of a voluntary exclusion list. ### Subtitle 1E. Sports Wagering #### Section 9-1E-01 (a) In this subtitle the following words have the meanings indicated. (b) "Commission" has the meaning stated in Sec. 9-1A-01 of this title. (c) "Gaming establishment" means, for purposes of the federal Bank Secrecy Act of 1970 and its related regulations, a sports wagering licensee having at least $1,000,000 in annual gross revenue. (d) "Horse racing licensee" means the holder of a license issued by the State Racing Commission under Sec. 11-510 of the Business Regulation Article. (e) "Mobile sports wagering licensee" means a sports wagering licensee who is authorized to conduct and operate online sports wagering. (f) "Online sports wagering" means sports wagering through an online gaming system: (1) on a computer, a mobile device, or any other interactive device; and (2) that is accepted by a sports wagering licensee or an online sports wagering operator. (g) "Online sports wagering operator" means an entity registered with a state to do business within a jurisdiction of the United States that holds a license issued by the Commission under this subtitle to operate online sports wagering on behalf of a sports wagering licensee. (h) "Proceeds" means the amount of money wagered on a sporting event, less: (1) the amount returned to successful bettors; (2) the cash equivalents of any merchandise or thing of value awarded as a prize to successful bettors; (3) free bets and promotional credits redeemed by bettors; and (4) all excise taxes paid by a sports wagering licensee in accordance with federal law. (i) (1) "Sporting event" means: (i) a professional sports or athletic event; (ii) a collegiate sports or athletic event; (iii) an Olympic or international sports or athletic event; (iv) an electronic sports or video game competition in which each participant is at least 18 years old; (v) a motor race event sanctioned by a motor racing governing entity; (vi) except as otherwise prohibited under Title 11 of the Business Regulation Article or the federal Interstate Horse Racing Act, a horse race, held in or out of the State, if consented to and approved by: (1) the horse racing licensee of the applicable breed; (2) the organization representing the majority of the owners and trainers of the applicable breed in the State; (3) the organization representing the majority of the applicable breeders in the State; and (4) the State Racing Commission; (vii) any portion of a sporting event, including the individual performance statistics of athletes or competitors in a sporting event; or (viii) an award event or competition of national or international prominence if expressly authorized by the Commission. (2) "Sporting event" does not include: (i) a high school sports or athletic event; or (ii) a fantasy competition regulated under Subtitle 1D of this title. (j) "Sports wagering" means the business of accepting wagers on any sporting event by any system or method of wagering, including single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets. (k) (1) "Sports wagering facility licensee" means a sports wagering licensee who is authorized to conduct and operate sports wagering at the sports wagering facility owned, leased, or occupied by the sports wagering licensee. (2) "Sports wagering facility licensee" includes the holder of a Class A-1, A-2, B-1, or B-2 sports wagering facility license issued under Sec. 9-1E-06 of this subtitle. (l) "Sports wagering license" means a license issued by the Commission under this subtitle that authorizes the holder to accept wagers on sporting events. (m) "Sports wagering licensee" means the holder of a sports wagering license. (n) "Video lottery facility" has the meaning stated in Sec. 9-1A-01 of this title. (o) "Video lottery operation license" has the meaning stated in Sec. 9-1A-01 of this title. (p) "Video lottery operator" has the meaning stated in Sec. 9-1A-01 of this title. #### Section 9-1E-02 It is the intent of the General Assembly that this subtitle is to be implemented in a manner that, to the extent permitted by State and federal law, maximizes the ability of minorities, women, and minority and women-owned businesses to participate in the sports wagering industry, including through the ownership of entities licensed to conduct sports wagering under this subtitle. #### Section 9-1E-03 (a) (1) Unless the context requires otherwise, the requirements under Sec.Sec. 9-1A-04, 9-1A-06, 9-1A-07, 9-1A-08, 9-1A-12, 9-1A-14, 9-1A-18, 9-1A-19, 9-1A-20, and 9-1A-25 of this title apply to the authority, duties, and responsibilities of the Commission, a sports wagering licensee, and an employee or a contractor of a sports wagering licensee under this subtitle. (2) The Commission shall consider the use of technology, remote surveillance, and other similar measures to carry out its duties under this subsection and Sec. 9-1E-04 of this subtitle. (b) This subtitle authorizes a sports wagering licensee to conduct and operate sports wagering in the State as provided in this subtitle. (c) A sports wagering licensee: (1) shall: (i) comply with all State and federal data security laws; and (ii) maintain all sports wagering data securely for at least 5 years; and (2) may not: (i) share any personally identifiable information with any third parties without permission, except as needed to operate sports wagering and administer the licensee's obligations under this subtitle; (ii) target advertising to individuals who are prohibited from participating in sports wagering and other at-risk individuals; or (iii) engage in any false or deceptive advertising. (d) (1) Except as provided in paragraph (2) of this subsection, a sports wagering facility is subject to local zoning laws. (2) The use of a facility for sports wagering is not required to be submitted to or approved by any county or municipal zoning board, authority, or unit if the facility is properly zoned and operating as of the effective date of this Act for the following activities: (i) operation of a video lottery facility; (ii) pari-mutuel betting on horse racing; or (iii) operation of electronic bingo or electronic tip jar machines. #### Section 9-1E-04 (a) Except as otherwise provided in this subtitle, the Commission shall regulate sports wagering and the conduct of sports wagering to the same extent that the Commission regulates the operation of video lottery terminals and table games under Subtitle 1A of this title. (b) In accordance with this subtitle, the Commission shall adopt regulations that establish: (1) subject to Sec. 9-1E-15 of this subtitle, the form and content of an application for any license required under this subtitle; (2) the methods, procedures, and form for delivery of information from an applicant or a licensee concerning any person's family, habits, character, associates, criminal record, business activities, and financial affairs; (3) the procedures for the fingerprinting of an applicant for any license required under this subtitle or other methods of identification that may be necessary in the judgment of the Commission to accomplish effective enforcement of the provisions of this subtitle; (4) the grounds and procedures for reprimands of licensees or the revocation or suspension of licenses issued under this subtitle; (5) the manner and method of collection of taxes, fees, and civil penalties; (6) standards, procedures, and rules that govern the conduct of sports wagering, including: (i) the approval process for self-service kiosks, devices, or machines, security measures for the kiosks, devices, or machines, the amount of wagers authorized on the kiosks, devices, or machines, and any other matter relating to a self-service kiosk, device, or machine necessary to carry out the provisions of this subtitle; (ii) the types of wagers on sporting events that may be accepted by a sports wagering licensee and prohibited wagers, such as wagers on injuries, penalties, the outcome of player disciplinary rulings, replay reviews, and other types or forms of wagering that are contrary to public policy or unfair to bettors; (iii) the types and values of promotional items that may be given away to encourage sports wagering; (iv) the manner in which wagers are received and payouts are remitted; (v) the maximum wagers that may be accepted by a sports wagering licensee from a single bettor on a single sporting event; (vi) the amount of cash reserves or other financial security to be maintained by sports wagering licensees to cover winning wagers; (vii) acceptable forms of payment and advance deposit methods by bettors; (viii) minimum uniform standards of accountancy methods, procedures, and forms as are necessary to ensure consistency, comparability, and effective disclosure of all financial information, including percentages of profit; (ix) periodic financial reports and the form of the reports, including an annual audit prepared by a certified public accountant licensed to do business in the State in accordance with the Statement on Standards for Attestation Engagements and generally accepted accounting principles; (x) requiring licensees under this subtitle to demonstrate and maintain financial viability; (xi) ensuring that sports wagering is conducted legally; (xii) requiring licensees to prominently publish complaint procedures; and (xiii) establishing a list of individuals who are to be mandatorily excluded or ejected by a sports wagering licensee from any facility or website operated by a sports wagering licensee; and (7) any other regulation necessary to carry out the provisions of this subtitle. (c) The Commission may adopt regulations authorizing a sports wagering licensee, if a satellite simulcast facility is located in the licensee's sports wagering facility, to allow its employees to: (1) accept satellite simulcast bets on horse racing; and (2) operate kiosks capable of accepting both sports wagers and satellite simulcast bets. #### Section 9-1E-05 (a) Except as provided in Sec.Sec. 10-14A-03 and 10-14B-03 of this article, the following persons shall be licensed under this subtitle: (1) a person that operates sports wagering; (2) a person that operates sports wagering on behalf of a sports wagering licensee, including an online sports wagering operator; (3) a person not licensed under item (1) or (2) of this subsection that manages, operates, supplies, provides security for, or provides service, maintenance, or repairs for sports wagering equipment and devices; and (4) an individual directly employed in the operation of sports wagering by a sports wagering licensee if the individual does not otherwise hold a valid license under Subtitle 1A of this title. (b) The Commission may by regulation require a person that contracts with a licensee and the person's employees to obtain a license under this subtitle if the Commission determines that the licensing requirements are necessary in order to protect the public interest and accomplish the policies established by this subtitle. (c) (1) For all licenses required under this subtitle, if an applicant holds a valid license in this State or another state and the Commission determines that the licensing standards of the issuing agency are comprehensive and thorough and provide similar and adequate safeguards to those provided in this subtitle, the Commission may: (i) waive some or all of the requirements of this subtitle; and (ii) issue a license to that applicant. (2) Except as provided under this subtitle or in regulation, the Commission may not waive a requirement under paragraph (1) of this subsection that relates to: (i) minority business enterprise participation goals and procedures established under Sec. 9-1E-07(b) of this subtitle; or (ii) a requirement of the Sports Wagering Application Review Commission under Sec. 9-1E-15 of this subtitle. (d) (1) Except as provided in paragraph (3) of this subsection, on the request of an applicant, the Commission may grant an exemption or a waiver of a licensing requirement or grounds for denial of a license if the Commission determines that the requirement or grounds for denial of a license as applied to the applicant are not necessary to protect the public interest or accomplish the policies established by this subtitle. (2) On granting to an applicant an exemption or a waiver under this subsection, or at any time after an exemption or a waiver has been granted, the Commission may: (i) limit or place restrictions on the exemption or waiver as the Commission considers necessary in the public interest; and (ii) require the person that is granted the exemption or waiver to cooperate with the Commission and to provide the Commission with any additional information required by the Commission as a condition of the waiver or exemption. (3) Except as provided under this subtitle or in regulation, the Commission may not grant an exemption or a waiver of a licensing requirement adopted by the Sports Wagering Application Review Commission in accordance with Sec. 9-1E-15(h)(2) of this subtitle to implement remedial measures based on the findings of a study of the sports wagering industry and market. #### Section 9-1E-06 (a) (1) On an award of a license by the Sports Wagering Application Review Commission established under Sec. 9-1E-15 of this subtitle, the Commission shall: (i) issue a Class A-1 sports wagering facility license to an applicant that meets the requirements for licensure under this subtitle who is: (1) a video lottery operator with more than 1,000 video lottery terminals; or (2) (A) the owner, or the designee of the owner, of a stadium in Prince George's County that is primarily used for professional football (NFL); (B) the owner, or the designee of the owner, of a professional football (NFL) franchise that is a lessee of a stadium in Baltimore City; (C) the owner, or the designee of the owner, of a professional major league baseball franchise that is a lessee of a stadium in Baltimore City; (D) the owner, or the designee of the owner, of a professional hockey league (NHL) franchise, that is a lessee of a stadium in the State; (E) the owner, or the designee of the owner, of a professional basketball association (NBA) franchise, that is a lessee of a stadium in the State; or (F) the owner, or the designee of the owner, of a professional soccer league (MLS) franchise, that is a lessee of a stadium in the State; (ii) issue a Class A-2 sports wagering facility license to an applicant that meets the requirements for licensure under this subtitle who is: (1) a video lottery operator with 1,000 or fewer video lottery terminals; or (2) a horse racing licensee; (iii) subject to paragraphs (2) and (3) of this subsection, issue a Class B-1 sports wagering facility license to any applicant who meets the requirements for licensure under this subtitle and who is not eligible for a Class B-2 sports wagering facility license; (iv) subject to paragraphs (2) and (3) of this subsection, issue a Class B-2 sports wagering facility license to any applicant who is a person with less than: (1) 25 full-time equivalent employees; or (2) $3,000,000 in annual gross receipts; and (v) issue not more than 60 mobile sports wagering licenses to any applicant who meets the requirements for licensure under this subtitle. (2) (i) The Commission shall issue a Class B-1 or Class B-2 sports wagering facility license to an applicant that meets the requirements for licensure under this subtitle who is: (1) the holder of a license issued by the State Racing Commission under Sec. 11-524 of the Business Regulation Article, including a subsidiary of the license holder; (2) a person who is the owner or lessee of a facility approved for satellite simulcast betting before January 1, 2021, unless the satellite simulcast facility is located at a video lottery facility or a racetrack; and (3) a person who holds a commercial bingo license, if the facility at which the person operates commercial bingo was permitted to operate at least 200 electronic bingo machines or electronic tip jar machines on January 1, 2021. (ii) In addition to the Class B-1 and B-2 sports wagering facility licenses issued in accordance with subparagraph (i) of this paragraph, the Commission may issue not more than 30 Class B-1 and Class B-2 sports wagering facility licenses under paragraph (1) of this subsection. (3) (i) The Sports Wagering Application Review Commission established under Sec. 9-1E-15 of this subtitle may not award a Class B-1 or B-2 sports wagering facility license to an applicant: (1) who is eligible to apply for a Class A-1 or A-2 sports wagering facility license under paragraph (1) of this subsection; (2) who holds a Class A-1 or A-2 sports wagering facility license; or (3) whose sports wagering facility will be located: (A) except as provided under subparagraph (ii) of this paragraph, within a 15-mile radius of a Class A-1 or A-2 sports wagering facility located in Allegany County, Cecil County, or Worcester County; (B) with respect to an application for a sports wagering facility license submitted before June 1, 2025, within a 15-mile radius of a Class B-1 or B-2 sports wagering facility licensed to a person described under paragraph (2)(i) of this subsection and located in Charles County; (C) with respect to an application for a sports wagering facility license submitted before June 1, 2025, within a 10-mile radius of a Class B-1 or B-2 sports wagering facility licensed to a person described under paragraph (2)(i) of this subsection and located in Carroll County; (D) with respect to an application for a sports wagering facility license submitted before June 1, 2025, within a 5-mile radius of a Class B-1 or B-2 sports wagering facility licensed to a person described under paragraph (2)(i) of this subsection and located in Frederick County; or (E) within a 1.5-mile radius of a Class A-1 or A-2 sports wagering facility located in a county not described under item A, B, C, or D of this item or any other Class B-1 or B-2 sports wagering facility. (ii) (1) The prohibition under subparagraph (i)3A of this paragraph does not apply in Allegany County prior to the issuance of a Class A-1 or A-2 sports wagering facility license in Allegany County. (2) A Class B-1 or B-2 sports wagering facility license issued within a 15-mile radius of a Class A-1 or A-2 sports wagering facility in Allegany County may be renewed if the license was initially issued prior to the issuance of the Class A-1 or A-2 license. (4) A for-profit entity, nonprofit organization, or public-private partnership operating at the racing location described under Title 11, Subtitle 7 of the Business Regulation Article located on lands owned by the Department of Natural Resources may apply for a Class B-1 or B-2 sports wagering facility license. (5) If an applicant designates an entity to hold the license under paragraph (1)(i)2 of this subsection, the designee shall be considered the applicant and subject to the requirements of the application process. (6) In addition to any other person, an applicant for or holder of a Class A-1, A-2, B-1, or B-2 sports wagering facility license may apply for a mobile sports wagering license under this subsection. (b) (1) Except as provided in paragraph (2) of this subsection, an applicant for a sports wagering license shall pay to the Commission an application fee of: (i) $2,000,000 for a Class A-1 sports wagering facility license; (ii) $1,000,000 for a Class A-2 sports wagering facility license; (iii) $250,000 for a Class B-1 sports wagering facility license; (iv) $50,000 for a Class B-2 sports wagering facility license; and (v) $500,000 for a mobile sports wagering license. (2) The requirement to pay an application fee to the Commission under paragraph (1) of this subsection does not apply to an applicant for a Class A-2 sports wagering facility license that is a horse racing licensee described under Sec. 11-510(b)(3) of the Business Regulation Article. (c) (1) The term of a sports wagering license under this section is 5 years. (2) On application by the sports wagering licensee and payment of the license renewal fee under paragraph (3) of this subsection, the Commission shall renew for 5 years a sports wagering license if the licensee complies with all statutory and regulatory requirements. (3) The license renewal fee is equal to 1% of the average annual amount the licensee retained under Sec. 9-1E-12(b)(1)(ii), (iii), or (iv) of this subtitle for the preceding 3-year period. (d) (1) A sports wagering licensee may not begin accepting wagers on sporting events until the application fee under subsection (b)(1) of this section is paid in full and the applicant reimburses the Commission for expenses related to performing background investigations. (2) The application fee under subsection (b)(1) of this section is nonrefundable. #### Section 9-1E-07 (a) An applicant for a license under this subtitle shall submit to the Commission: (1) an application in the form that the Commission requires; and (2) if the applicant is applying for a sports wagering license, an affidavit attesting to: (i) the number of minority and women owners of the applicant; (ii) the ownership interest of any minority and women owners of the applicant; (iii) the number of minority and women employees of the applicant; (iv) the number of current contracts the applicant has with minority- and women-owned subcontractors; and (v) any other information considered necessary by the Commission or the Sports Wagering Application Review Commission established under Sec. 9-1E-15 of this subtitle. (b) (1) The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this subsection. (2) To the extent practicable and authorized by the United States Constitution, a sports wagering licensee shall comply with the State's Minority Business Enterprise Program. (3) (i) On or before 6 months after the issuance of a sports wagering license under this subtitle, the Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the sports wagering licensee, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for the procurement of goods and services related to sports wagering, including procurement of construction, equipment, and ongoing services. (ii) To the extent practicable, the goals and procedures specified in subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article and the regulations implementing that subtitle. (4) On or after July 1, 2031, the provisions of this subsection and any regulations adopted under this subsection shall be of no effect and may not be enforced. (c) (1) This subsection does not apply to the application or license renewal fees for a sports wagering license required under Sec. 9-1E-06 of this subtitle. (2) (i) Subject to subparagraph (ii) of this paragraph, the Commission shall adopt regulations that establish an application fee and license renewal fee for a license under this subtitle. (ii) The application fee for an online sports wagering operator license may not be less than $5,000. (3) An applicant shall submit the application fee with the application. (4) The term of the license is 5 years. (d) On a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the application fees and license renewal fees collected by the Commission under this section and Sec. 9-1E-06 of this subtitle: (1) an amount to the State Lottery and Gaming Control Agency necessary to reimburse the Agency for expenses related to the issuance and renewal of sports wagering licenses; (2) 5% of the fees collected for each Class A-1 and A-2 sports wagering facility license to the Small, Minority-Owned, and Women-Owned Business Sports Wagering Assistance Fund established under Sec. 9-1E-16 of this subtitle; and (3) the remainder to the Blueprint for Maryland's Future Fund established under Sec. 5-206 of the Education Article. (e) (1) Applicants and licensees shall have the affirmative responsibility to establish by clear and convincing evidence the applicant's or licensee's qualifications. (2) Applicants and licensees shall provide information required by this subtitle and satisfy requests for information relating to qualifications in the form specified by the Commission, if applicable. (3) (i) Applicants and licensees shall: (1) provide assistance or information required by the Commission; and (2) cooperate in an inquiry, an investigation, or a hearing conducted by the Commission. (ii) On issuance of a formal request to answer or produce information, evidence, or testimony, if an applicant or a licensee refuses to comply, the application or license may be denied, suspended, or revoked by the Commission. (4) (i) If the applicant is an individual, the applicant shall be photographed and fingerprinted for identification and investigation purposes. (ii) If the applicant is not an individual, the Commission by regulation may establish the categories of individuals who shall be photographed and fingerprinted for identification and investigation purposes. (5) (i) Applicants and licensees shall inform the Commission of an act or omission that the person knows or should know constitutes a violation of this subtitle or the regulations adopted under this subtitle. (ii) Applicants and licensees may not discriminate against a person who in good faith informs the Commission of an act or omission that the person believes constitutes a violation of this subtitle or the regulations adopted under this subtitle. (6) Applicants and licensees shall produce information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence: (i) the financial stability, integrity, and responsibility of the applicant or licensee; (ii) the integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application; (iii) the applicant's or licensee's good character, honesty, and integrity; (iv) sufficient business ability and experience of the applicant or licensee; and (v) that: (1) unless the applicant or licensee already has a collective bargaining agreement, the applicant or licensee has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent sports wagering industry workers in the State; (2) the labor peace agreement is valid and enforceable under 29 U.S.C. Sec. 158; (3) the labor peace agreement protects the State's revenues by prohibiting the labor organization and its members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the operation of sports wagering within the first 5 years of the effective date of a sports wagering license; and (4) the labor peace agreement applies to all operations conducted by the applicant or licensee at a facility or location where sports wagering is conducted. (f) (1) On the filing of an application for any license required under this subtitle and any supplemental information required by the Commission, the Commission shall conduct a background investigation on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license. (2) The Commission may refer an application for a license to an approved vendor under Sec. 9-1A-20 of this title to conduct the background investigation for the Commission. (g) (1) After receiving the results of the background investigation, the Commission may either grant a license to an applicant whom the Commission determines to be qualified or deny the license to an applicant whom the Commission determines to be not qualified or disqualified. (2) If an application for a license is denied, the Commission shall prepare and file an order denying the license with a statement of the reasons for the denial, including the specific findings of fact. (h) (1) An individual may not knowingly give false information or make a material misstatement in an application required for any license under this subtitle or in any supplemental information required by the Commission. (2) An individual who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both. (i) (1) The holder of a Class B-1 or B-2 sports wagering facility license or a mobile sports wagering license may only sell or transfer ownership of the license if the licensee was actively engaged in operating sports wagering in the State for at least 3 years immediately preceding the sale or transfer of the ownership of the license. (2) Nothing in paragraph (1) of this subsection may be construed to limit the ability of the Commission to enforce this subtitle. (j) (1) A sports wagering facility licensee issued a license under Sec. 9-1E-06(a)(2)(ii) of this subtitle may submit a written request to the Commission to relocate a Class B sports wagering facility. (2) The Commission may grant a request submitted under paragraph (1) of this subsection only if: (i) the sports wagering facility licensee was originally issued a Class B sports wagering facility license on or before September 30, 2023; and (ii) the new location for the sports wagering facility: (1) is within the same county; (2) complies with the location requirements under Sec. 9-1E-06 of this subtitle; and (3) subject to Sec. 9-1E-15(q) of this subtitle, is approved by the Sports Wagering Application Review Commission. #### Section 9-1E-08 (a) The Commission may deny a license to an applicant for a license under Sec. 9-1E-05 of this subtitle, reprimand or fine a licensee, or suspend or revoke a license for a violation of: (1) this subtitle; (2) a regulation adopted under this subtitle; or (3) a condition that the Commission sets. (b) For each violation specified in subsection (a) of this section, the Commission may impose a penalty not exceeding $5,000. (c) Each day that a person is in violation under this section shall be considered a separate violation. (d) To determine the amount of the penalty imposed under subsection (b) of this section, the Commission shall consider: (1) the seriousness of the violation; (2) the harm caused by the violation; and (3) the good faith or lack of good faith of the person who committed the violation. (e) Except as otherwise provided in this subtitle, nothing contained in this subtitle abrogates or limits the criminal laws of the State or limits the authority of the General Assembly to enact statutes establishing criminal offenses and penalties relating to sports wagering operations. #### Section 9-1E-09 (a) A sports wagering facility licensee may accept wagers on sporting events that are made: (1) by an individual physically present: (i) at a video lottery facility, if the sports wagering licensee is a video lottery operator; (ii) at Pimlico Race Course or a race track located at Laurel Park, if the sports wagering licensee is a horse racing licensee; (iii) subject to subsection (d) of this section, at a stadium primarily used for professional football (NFL), professional major league baseball, professional hockey (NHL), professional basketball (NBA), or professional soccer (MLS), if the sports wagering licensee is the owner or a lessee or the designee of the owner or lessee of the stadium; (iv) at the Maryland State Fairgrounds in Timonium, if the sports wagering licensee is the holder of a license issued by the State Racing Commission under Sec. 11-524 of the Business Regulation Article, or a subsidiary of the license holder; (v) at a satellite simulcast facility, if the sports wagering licensee is the owner or lessee of a satellite simulcast facility described under Sec. 9-1E-06(a)(2) of this subtitle; (vi) at a commercial bingo facility with at least 200 electronic bingo machines or electronic tip jar machines, if the sports wagering licensee is a commercial bingo operator described under Sec. 9-1E-06(a)(2) of this subtitle; or (vii) subject to subsection (e) of this section, at the facility identified in the application approved by the Sports Wagering Application Review Commission, if the sports wagering licensee is a holder of a Class B-1 or B-2 sports wagering facility license; or (2) on a self-service kiosk, device, or machine, approved by the Commission, located in a facility or at a location identified under item (1) of this subsection. (b) A mobile sports wagering licensee may accept wagers on sporting events that are made through online sports wagering by an individual physically located in the State. (c) To participate in online sports wagering under this section, an individual shall register: (1) in person at a facility or location identified under subsection (a)(1) of this section; or (2) online using a website or mobile application approved by the Commission. (d) (1) (i) Subject to paragraph (2) of this subsection, a sports wagering facility licensee may contract with any other sports wagering facility licensee to provide sports wagering services on behalf of the licensee at a location where the licensee is authorized to accept wagers on sporting events. (ii) A Class A sports wagering facility licensee that provides sports wagering services on behalf of a Class B sports wagering facility licensee: (1) may utilize the Class A sports wagering facility's branding and loyalty rewards programs at the Class B sports wagering facility on behalf of which it is providing sports wagering services; but (2) may not allow an individual to utilize the account wallet that the individual maintains with the Class A sports wagering facility when placing wagers with the Class B sports wagering licensee. (iii) Subject to the approval of a Class A sports wagering facility licensee, a Class B sports wagering facility licensee that receives sports wagering services from a Class A sports wagering facility licensee may utilize and market the Class A sports wagering facility licensee's branding and loyalty rewards programs in the same manner as the Class A sports wagering facility licensee. (2) If a sports wagering licensee authorized to accept wagers at a stadium under subsection (a)(1)(iii) of this section contracts with a video lottery operator, or an affiliate or a subsidiary of that video lottery operator, to provide sports wagering services at the stadium, the licensee may contract only with a video lottery operator, or an affiliate or a subsidiary of that video lottery operator, that operates a video lottery facility located in the same county as the stadium. (e) A sports wagering facility licensee authorized to accept in-person wagers at the racing location described under Title 11, Subtitle 7 of the Business Regulation Article located on lands owned by the Department of Natural Resources may only accept wagers in the special event zone. #### Section 9-1E-10 (a) (1) A mobile sports wagering licensee: (i) may conduct and operate online sports wagering; or (ii) subject to paragraph (3) of this subsection and subsection (b) of this section, may enter into a contract with an online sports wagering operator to conduct online sports wagering on its behalf. (2) A person other than the mobile sports wagering licensee may not conduct online sports wagering, except for testing purposes, until the person receives from the Commission an online sports wagering license. (3) (i) A mobile sports wagering licensee may not contract with more than one online sports wagering operator to conduct online sports wagering on the licensee's behalf. (ii) All mobile sports wagering licensees that are related entities are treated as a single mobile sports wagering licensee for purposes of the limitation under subparagraph (i) of this paragraph. (b) (1) The duties and responsibilities of an online sports wagering operator may not be assigned, delegated, subcontracted, or transferred to a third party without the prior approval of the Commission. (2) A third party must be licensed as an online sports wagering operator before offering online sports wagering. (c) An online sports wagering operator may conduct online sports wagering on behalf of more than one mobile sports wagering licensee. #### Section 9-1E-11 (a) An individual may not wager on a sporting event and a sports wagering licensee may not accept a wager from an individual on a sporting event if the individual: (1) is under the age of 21 years; (2) is not physically present in the State; (3) is an athlete, a coach, a referee, or a director or an employee of a sports governing entity or any of its member teams; (4) is the direct or indirect legal or beneficial owner of 10% or more of a sports governing entity or any of its member teams if any member team of that sports governing entity participates in the sporting event; (5) has access to certain types of exclusive information on any sporting event overseen by that individual's sports governing entity; (6) holds a position of authority or influence sufficient to exert influence over the participants in a sporting event, including coaches, managers, handlers, or athletic trainers; (7) is identified on a mandatory or voluntary sports wagering exclusion list maintained by the Commission; (8) is the operator, director, officer, owner, or employee of the sports wagering licensee or online sports wagering operator or any relative of the licensee or operator living in the same household as the licensee or operator; (9) has access to nonpublic confidential information held by the sports wagering licensee or online sports wagering operator; or (10) is a category of individuals prohibited by the Commission under subsection (e) of this section from wagering on a sporting event. (b) For online sports wagering, a mobile sports wagering licensee shall: (1) have in place technical and operational measures to prevent access by individuals who are underage or physically located outside the State, including: (i) age verification procedures, which may require the use of a reputable independent third party that is in the business of verifying an individual's personally identifiable information; and (ii) the use of geolocation technology to verify a bettor's geographic location; (2) include on its online sports wagering website a description of the possible repercussions for an underage or out-of-state bettor, which may include immediate stoppage of play, account closure, and forfeiture and confiscation of winnings; and (3) establish procedures to prevent prohibited individuals from wagering on sporting events. (c) A sports wagering licensee shall: (1) promptly report to the Commission: (i) any criminal or disciplinary proceedings against the licensee or its employees in connection with the licensee's sports wagering operation; (ii) any abnormal betting activity or patterns that may indicate a concern about the integrity of a sporting event; (iii) any other conduct with the potential to corrupt the outcome of a sporting event for purposes of financial gain, including match fixing; and (iv) any suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification; and (2) maintain records of sports wagering operations in accordance with regulations adopted by the Commission. (d) The Commission is authorized to share any information under this section with any law enforcement agency, sports team, sports governing entity, or regulatory agency the Commission deems appropriate. (e) (1) In this subsection, "interested party" means: (i) a sports wagering licensee; (ii) a professional sports team, league, association, or governing entity; or (iii) an institution of higher education. (2) If an interested party believes that a type or form of wagering or a category of individuals wagering on sporting events is contrary to public policy, is unfair to consumers, or affects the integrity of a particular sport or the sports wagering industry, the interested party may submit to the Commission, in writing, a request to prohibit the type or form of sports wagering or the category of individuals from wagering on sporting events. (3) After conducting a public hearing on a request submitted under paragraph (2) of this subsection, the Commission may grant the request on a showing of good cause by the interested party. (4) The Commission shall respond to a request under this subsection concerning a particular sporting event before the start of the sporting event to the greatest extent feasible, or as soon as practicable. #### Section 9-1E-12 (a) (1) The Commission shall account to the Comptroller for all of the revenue under this subtitle. (2) The proceeds from sports wagering, less the amount retained by the licensee under subsection (b)(1) of this section, shall be under the control of the Comptroller and distributed as provided under subsection (b) of this section. (b) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this paragraph, all proceeds from sports wagering shall be electronically transferred monthly into the State Lottery Fund established under Subtitle 1 of this title. (ii) A Class A-1 and A-2 sports wagering facility licensee shall retain 85% of the proceeds from sports wagering conducted at the locations described in Sec. 9-1E-09(a) of this subtitle. (iii) A Class B-1 and B-2 sports wagering facility licensee shall retain 85% of the proceeds from sports wagering conducted at the location described in the licensee's application. (iv) A mobile sports wagering licensee shall retain 80% of the proceeds from online sports wagering received by the licensee. (2) (i) Except as provided in subparagraph (ii) of this paragraph, all proceeds from sports wagering in the State Lottery Fund established under Subtitle 1 of this title shall be distributed on a monthly basis, on a properly approved transmittal prepared by the Commission to the Blueprint for Maryland's Future Fund established under Sec. 5-206 of the Education Article. (ii) For fiscal year 2026 and each fiscal year thereafter, 5% of the proceeds attributable to online sports wagering shall be deposited in the General Fund. (c) A winning wager on a sporting event that is not claimed by the winner within 182 days after the wager is won shall: (1) become the property of the State; and (2) be distributed to the Problem Gambling Fund established under Sec. 9-1A-33 of this title. (d) If a sports wagering licensee returns to successful players more than the amount of money wagered in any month, the licensee may subtract that amount from the proceeds of up to the three following months. (e) The admissions and amusement tax may not be imposed on any proceeds from sports wagering. #### Section 9-1E-13 (a) All wagers on sporting events authorized under this subtitle shall be initiated, received, and otherwise made within the State unless otherwise determined by the Commission in accordance with applicable federal and State laws. (b) Consistent with the intent of the United States Congress as articulated in the Unlawful Internet Gambling Enforcement Act of 2006, the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this subtitle may not determine the location in which the wager is initiated, received, or otherwise made. (c) Notwithstanding the provisions of this subtitle, a wager on a sporting event may be accepted or pooled with a wager from an individual who is not physically present in the State if the Commission determines that accepting or pooling the wager is not inconsistent with federal law or the law of the jurisdiction, including any foreign nation, in which the individual is located, or that such wagering is conducted in accordance with a reciprocal agreement to which the State is a party that is not inconsistent with federal law. #### Section 9-1E-14 (a) On or before July 1 each year, each sports wagering licensee shall report to the Commission on: (1) the number of minority and women owners of the licensee; (2) the ownership interest of any minority and women owners of the licensee; (3) the number of minority and women employees of the licensee; (4) the number of current contracts the licensee has with minority- and women-owned subcontractors; and (5) any other information considered necessary by the Commission. (b) On or before December 1 each year, the Commission shall report to the Governor and, in accordance with Sec. 2-1257 of this article, to the General Assembly on: (1) the operation of sports wagering in the State; and (2) sports wagering revenues from the immediately preceding fiscal year, including the handle, hold, hold percentage, and proceeds, broken down by categories defined by the Commission. (c) (1) Subject to paragraph (2) of this subsection, on or before December 1, 2025, the Commission shall report to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, on the racial, ethnic, gender, and geographic diversity of holders of Class B-1 and B-2 sports wagering facility licenses and mobile sports wagering licenses under this subtitle, the level of market saturation of sports wagering in the State, and whether the number of Class B-1 and B-2 sports wagering facility licenses and mobile sports wagering licenses that may be issued under this subtitle should be increased in order to address the demand for sports wagering in the State. (2) Before the Commission submits the report described under paragraph (1) of this subsection, the Commission shall provide the Legislative Policy Committee with at least 30 days to submit comments to the Commission. #### Section 9-1E-15 (a) There is a Sports Wagering Application Review Commission. (b) (1) The Sports Wagering Application Review Commission consists of the following seven members: (i) the chair of the Commission, or the chair's designee; (ii) two members appointed by the Governor; (iii) two members appointed by the President of the Senate, who may not be members of the Senate; and (iv) two members appointed by the Speaker of the House, who may not be members of the House of Delegates. (2) The membership of the Sports Wagering Application Review Commission appointed under this subsection should reflect the race, gender, and geographic diversity of the population of the State. (3) The Governor shall designate a chair of the Sports Wagering Application Review Commission from among the members described under paragraph (1)(i) and (ii) of this subsection. (4) The Governor, in consultation with the President of the Senate and the Speaker of the House, may remove a member of the Sports Wagering Application Review Commission for inefficiency, misconduct in office, or neglect of duty. (c) A member of the Sports Wagering Application Review Commission: (1) shall be at least 21 years old; (2) shall be a citizen of the United States; (3) shall be a resident of the State; (4) shall be knowledgeable and experienced in fiscal matters and shall have at least 10 years of substantial experience: (i) as an executive with fiduciary responsibilities in charge of a large organization or foundation; (ii) in an academic field relating to finance or economics; or (iii) as an economist, a financial analyst, or an accountant, or as a professional in a similar profession relating to fiscal matters or economics; (5) may not have been convicted of or granted probation before judgment for a serious crime or a crime that involves gambling or moral turpitude; (6) may not have an official relationship to a person that is applying for or holds a license under this subtitle or Subtitle 1D of this title; (7) may not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any gaming activities, including horse racing, video lottery terminals, fantasy competitions, or lottery; (8) may not receive or share in, directly or indirectly, the receipts or proceeds of any gaming activities, including horse racing or lottery; (9) may not have a beneficial interest in any contract for the manufacture or sale of gaming devices, the conduct of any gaming activity, or the provision of any independent consulting services in connection with any gaming establishment or gaming activity; (10) may not be an elected official of State or local government; and (11) shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 15, Subtitle 6 of this article. (d) A member of the Sports Wagering Application Review Commission: (1) may not receive compensation for serving on the Sports Wagering License Review Commission; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (e) (1) The Commission and the Department of Legislative Services shall provide staff to the Sports Wagering Application Review Commission. (2) The Department of Legislative Services shall contract with an independent consultant that has at least 10 years of substantial experience in consulting on matters relating to the gaming industry to assist the Sports Wagering Application Review Commission in the review and analysis of applications submitted under this section. (f) The Sports Wagering Application Review Commission: (1) shall review applications for sports wagering licenses submitted in accordance with Sec. 9-1E-06 of this subtitle; (2) shall award: (i) a Class A-1 or A-2 facility license to any applicant that meets the requirements for licensure under this subtitle; and (ii) a Class B-1 or B-2 facility license to any applicant that is described under Sec. 9-1E-06(a)(2)(i) of this subtitle and meets the requirements for licensure under this subtitle; and (3) may not award a Class B-1 or B-2 sports wagering facility license, other than to an applicant described under Sec. 9-1E-06(a)(2)(i) of this subtitle, or a mobile sports wagering license until after the Sports Wagering Application Review Commission adopts the regulations required under subsection (h) of this section. (g) Nothing in this subtitle may be construed to preempt the exclusive authority of the Sports Wagering Application Review Commission to award sports wagering licenses in accordance with this subtitle. (h) (1) This subsection applies only to Class B-1 or B-2 sports wagering facility licenses, other than licenses issued to an applicant described under Sec. 9-1E-06(a)(2)(i) of this subtitle, and mobile sports wagering licenses. (2) Subject to paragraph (3) of this subsection, the Sports Wagering Application Review Commission shall adopt regulations governing the evaluation of applications for Class B-1 or B-2 sports wagering facility licenses, other than licenses issued to an applicant described under Sec. 9-1E-06(a)(2)(i) of this subtitle, and mobile sports wagering licenses submitted in accordance with Sec. 9-1E-06 of this subtitle. (3) The Sports Wagering Application Review Commission, in consultation with the certification agency as defined in Sec. 14-301 of the State Finance and Procurement Article, the Governor's Office of Small, Minority, and Women Business Affairs, and the Office of the Attorney General, shall: (i) evaluate a study of the sports wagering industry and market to determine whether there is a compelling interest to implement remedial measures, in addition to the application of the State Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article or a similar program, to assist minorities and women in the sports wagering industry; (ii) evaluate race-neutral programs or other methods that may be used to address the needs of minorities, women, and minority and women-owned businesses seeking to participate in the sports wagering industry, including through the ownership of entities licensed to conduct sports wagering under this subtitle; (iii) consider whether an applicant for a Class B-1 or B-2 sports wagering facility license intends to conduct sports wagering at a facility located in an opportunity zone or an enterprise zone; (iv) consider allowing early access to the mobile sports wagering market to entities with a meaningful partnership with minorities, women, and minority- and women-owned businesses; and (v) adopt emergency regulations to implement remedial measures, if necessary and to the extent permitted by State and federal law, based on the findings of the study evaluated under item (i) of this paragraph. (4) The Sports Wagering Application Review Commission shall: (i) to the extent permitted by federal and State law, actively seek to achieve racial, ethnic, and gender diversity when awarding licenses; and (ii) encourage applicants who qualify as a minority business enterprise, as defined in Sec. 14-301 of the State Finance and Procurement Article, or who are small, minority, or women-owned business entities to apply for sports wagering licenses under this subtitle. (i) (1) If an applicant is seeking investors in the entity applying for a sports wagering license, the applicant shall take the following steps before being awarded a license by the Sports Wagering Application Review Commission: (i) make serious, good-faith efforts to solicit and interview a reasonable number of minority and women investors; and (ii) as part of the application, submit a statement that lists the names and addresses of all minority and women investors interviewed and whether or not any of those investors have purchased an equity share in the entity submitting an application. (2) If an applicant is awarded a license by the Sports Wagering Application Review Commission, the applicant shall sign a memorandum of understanding with the Sports Wagering Application Review Commission that requires the awardee to again make serious, good-faith efforts to interview minority and women investors in any future attempts to raise venture capital or attract new investors to the entity awarded the license. (3) The Governor's Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General, shall provide assistance to all potential applicants and potential minority and women investors to satisfy the requirements under paragraphs (1)(i) and (2) of this subsection. (j) The Sports Wagering Application Review Commission may not award a sports wagering license to a person that is not qualified under this section or this subtitle. (k) (1) The Sports Wagering Application Review Commission shall refer to the State Lottery and Gaming Control Commission the name and all relevant information concerning a person that makes an application under this section. (2) On receipt of the information in paragraph (1) of this subsection, the State Lottery and Gaming Control Commission shall evaluate whether an applicant is qualified to hold a sports wagering license under this subtitle. (3) On completion of its determination, the State Lottery and Gaming Control Commission shall notify the Sports Wagering Application Review Commission of its evaluation as to whether an applicant is qualified to hold a sports wagering license under this subtitle. (l) After an award of a sports wagering license under this section, the Sports Wagering Application Review Commission shall notify the State Lottery and Gaming Control Commission of the successful applicants. (m) After an award of a sports wagering license under this section, the State Lottery and Gaming Control Commission shall: (1) issue the sports wagering license in accordance with the provisions of this subtitle; and (2) be responsible for all matters relating to regulation of the licensee. (n) (1) An unsuccessful applicant for a sports wagering license under this section may seek, under Title 15 of the State Finance and Procurement Article, review by the State Board of Contract Appeals of the awarding of the sports wagering license by the Sports Wagering Application Review Commission. (2) A proceeding under this subsection shall: (i) take precedence on the Board's docket; (ii) be heard at the earliest practicable date; and (iii) be expedited in every way. (o) Notwithstanding any of the provisions of this subtitle, the Sports Wagering Application Review Commission may not award a sports wagering license under this subtitle unless the Sports Wagering Application Review Commission determines and declares that an applicant selected for award of the license is in the public interest and is consistent with the purposes of this subtitle. (p) The Sports Wagering Application Review Commission may award a sports wagering license that is revoked or surrendered utilizing the criteria established in this subtitle. (q) (1) Except as provided in paragraph (2) of this subsection, the Sports Wagering Application Review Commission shall terminate on January 1, 2028. (2) The Governor may reconstitute the Sports Wagering Application Review Commission, which shall include the appointment of new members based on the criteria established under subsections (b) and (c) of this section: (i) 1 year prior to the expiration of a sports wagering license; or (ii) following the revocation or surrender of a sports wagering license. #### Section 9-1E-16 (a) In this section, "Fund" means the Small, Minority-Owned, and Women-Owned Business Sports Wagering Assistance Fund. (b) There is a Small, Minority-Owned, and Women-Owned Business Sports Wagering Assistance Fund. (c) The purpose of the Fund is to assist small, minority-owned, and women-owned businesses entering the sports wagering market. (d) The Department of Commerce shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) The Fund consists of: (1) revenue distributed to the Fund under Sec. 9-1E-07(d) of this subtitle; (2) money appropriated in the State budget to the Fund; and (3) any other money from any other source accepted for the benefit of the Fund. (g) The Fund may be used only for grants or loans to small, minority-owned, or women-owned businesses for: (1) sports wagering license application assistance; (2) assistance with sports wagering operations; or (3) targeted training to support participation in the sports wagering industry. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the General Fund of the State. (i) Expenditures from the Fund may be made only in accordance with the State budget. #### Section 9-1E-17 (a) (1) In this section the following words have the meanings indicated. (2) "Content partner" means an individual who or a platform that creates sports wagering content for a sports wagering licensee through contracted work, affiliation, or other partnership. (3) "Sports wagering content" means predictions of sporting event outcomes, including moneylines, against the spread, totals, futures, parlays, and other outcomes, whether provided at no cost or through a subscription or other partnership. (4) "Sports wagering expert" or "sports wagering influencer" means a person who creates sports wagering content for a sports wagering licensee, a content partner, or the person's own benefit. (b) (1) The Commission shall license independent evaluators to evaluate and rate sports wagering content provided by sports wagering experts, sports wagering influencers, and content partners. (2) In order to be licensed under paragraph (1) of this subsection, an independent evaluator: (i) shall have demonstrated experience and expertise in evaluating and rating sports wagering content; (ii) shall have an audit process constructed and maintained by in-house, licensed certified public accountants; (iii) shall have evaluation and rating procedures that are unable to be adjusted, duplicated, or altered by the persons subject to evaluation; (iv) may not have any direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests in any sports wagering activities; (v) may not receive or share in, directly or indirectly, the receipts or proceeds of any sports wagering activities; and (vi) may not have any revenue-sharing relationship with or other financial interest in a sports wagering licensee or sports wagering operator. (3) An employee or a principal of an independent evaluator, or the independent evaluator as an entity, may not wager on a sporting event. (4) (i) Except as provided in subparagraph (ii) of this paragraph, an independent evaluator may not be compensated by a sports wagering licensee or sports wagering operator that utilizes the independent evaluator's evaluation services solely for marketing materials. (ii) An independent evaluator may be compensated by a sports wagering licensee or sports wagering operator for its evaluation and rating of sports wagering content. (5) The Commission may establish additional qualifications for the licensing of independent evaluators in accordance with this subsection. (c) The Commission shall adopt regulations to implement this section. (d) A sports wagering licensee or sports wagering operator that advertises in the State may contract with an independent evaluator licensed under subsection (b) of this section to evaluate and rate the sports wagering licensee's sports wagering content, sports wagering experts, sports wagering influencers, and content partners. ### Subtitle 2. Commission on Uniform State Laws #### Section 9-201 (a) In this subtitle the following words have the meanings indicated. (b) "Commission" means the State Commission on Uniform State Laws. (c) "National Conference" means the National Conference of Commissioners on Uniform State Laws. #### Section 9-202 There is a State Commission on Uniform State Laws in the Executive Department. #### Section 9-203 (a) The Commission consists of: (1) 3 members appointed by the Governor; and (2) as an ex officio member, any individual elected to life membership in the National Conference of Commissioners on Uniform State Laws, after service as an appointed member of the Commission from this State. (b) (1) The term of an appointed member is 4 years and begins on June 1 of the year in which the term of the Governor begins. (2) At the end of a term, an appointed member continues to serve until a successor is appointed. (3) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed. #### Section 9-204 (a) (1) A member of the Commission may not receive compensation. (2) Members of the Commission and the associate member of the National Conference from the State are entitled to reimbursement for expenses incurred in the performance of their duties, as provided in the State budget. (b) In accordance with the State budget, the Commission may: (1) employ a staff; and (2) make necessary expenditures. #### Section 9-205 The Commission may contribute to the expenses of the National Conference, as provided in the State budget. #### Section 9-206 (a) In addition to any duties set forth elsewhere, the Commission shall: (1) represent the State in the National Conference; (2) meet with representatives of other states in the National Conference; (3) draft uniform laws and model acts for submission to and adoption by the states; (4) recommend the best action to accomplish uniformity in legislation; and (5) otherwise seek the best means to obtain uniformity in the laws of the states. (b) (1) Before each regular session of the General Assembly, the Commission shall submit an annual report: (i) to the Governor; and (ii) subject to Sec. 2-1257 of this article, to the General Assembly. (2) The annual report shall: (i) describe the activities of the Commission; and (ii) include recommendations on appropriate subjects. ### Subtitle 3. Office of Small, Minority, and Women Business Affairs. [Renumbered] #### Section 9-301 (a) In this subtitle the following words have the meanings indicated. (b) "Governor's Subcabinet" means the Governor's Subcabinet on Socioeconomic Procurement Participation. (c) (1) "Minority person" means: (i) an individual who has been deprived of the opportunity to develop and keep a competitive position in the economy because of a social or economic disadvantage that arises from cultural, racial, or other similar causes; or (ii) a sheltered workshop for individuals with disabilities. (2) "Minority person" includes: (i) an Aleut; (ii) an American Indian; (iii) a Black; (iv) an Eskimo; (v) a Hispanic; (vi) an Oriental; (vii) a Puerto Rican; or (viii) a woman. (d) "Office" means the Office of Small, Minority, and Women Business Affairs. (e) "Special Secretary" means the Special Secretary for the Office of Small, Minority, and Women Business Affairs. #### Section 9-303.1 (a) There is a Governor's Subcabinet on Socioeconomic Procurement Participation. (b) The Governor's Subcabinet is composed of: (1) the Special Secretary of the Governor's Office of Small, Minority, and Women Business Affairs, who shall serve as chair of the Subcabinet; (2) the Secretary of Budget and Management, or the Secretary's designee; (3) the Secretary of Commerce, or the Secretary's designee; (4) the Secretary of General Services, or the Secretary's designee; (5) the Secretary of Health, or the Secretary's designee; (6) the Secretary of Housing and Community Development, or the Secretary's designee; (7) the Secretary of Human Services, or the Secretary's designee; (8) the Secretary of Information Technology, or the Secretary's designee; (9) the Secretary of Public Safety and Correctional Services, or the Secretary's designee; (10) the Secretary of Transportation, or the Secretary's designee; (11) the Secretary of Veterans and Military Families, or the Secretary's designee; (12) the Chief Procurement Officer for the State, or the Chief Procurement Officer's designee; (13) the Minority Business Enterprise Ombudsman, or the Ombudsman's designee; and (14) any other head of a department or agency that is accountable to the Governor, as deemed necessary by the Governor. (c) The Governor's Subcabinet shall: (1) meet: (i) a minimum of once each quarter; and (ii) at a frequency deemed appropriate by the chair; (2) study socioeconomic procurement programs in other states to identify successes and best practices; (3) develop accountability measures for procurement forecasts, strategic plans, Procurement Review Group processes, and liaison officer accountability; (4) work with the Office of State Procurement to implement process improvements that directly impact socioeconomic procurement businesses' ability to fairly compete for and understand State contracting opportunities; (5) identify and recommend statutory and regulatory reforms to strengthen and improve the State's socioeconomic procurement programs; and (6) recommend actions to make improvements to the Small Business Reserve Program, the Minority Business Enterprise Program, and the Veteran Small Business Enterprise Program. (d) On or before December 31, 2025, and each December 1 thereafter, the Governor's Subcabinet shall report to the Governor on the Governor's Subcabinet's activities, progress, and recommendations. ### Subtitle 5. State House Trust #### Section 9-501 In this subtitle, "Trust" means the State House Trust. #### Section 9-502 There is a State House Trust. #### Section 9-503 (a) (1) The Trust consists of the following 4 ex officio members: (i) the Governor; (ii) the President of the Senate; (iii) the Speaker of the House of Delegates; and (iv) from the Maryland Historical Trust, the Chairman or the Chairman's designee, who may be another trustee, the Director, or the State Historic Preservation Officer. (2) The Trust may include not more than 3 associate members appointed by the members. (b) (1) Each associate member must have experience and interest in historic preservation. (2) An associate member may not vote. #### Section 9-504 The Trust shall determine the times and places of its meetings. #### Section 9-505 (a) In addition to any duties set forth elsewhere, the Trust shall: (1) be responsible for the restoration and preservation of the State House; (2) be responsible for the landscaping and construction of Lawyer's Mall; and (3) disapprove or approve and supervise: (i) any proposed repair, improvement, or other change to the State House or to any other building within State Circle, including any change to the furnishings or fixtures of those buildings; (ii) any proposed landscaping of the grounds of those buildings; and (iii) any proposed improvement, nonemergency repair, or other change to Lawyer's Mall. (b) The Trust is not required under subsection (a)(2) or (3)(iii) of this section to be responsible for, or disapprove or approve and supervise, the coordination, security, and scheduling of rallies and other events held on Lawyer's Mall. #### Section 9-506 (a) The Trust shall retain an architect as a consultant. (b) The consultant must: (1) be registered by the State Board of Architects; (2) be familiar with all phases of 18th century architecture; and (3) have the professional experience that is needed to restore the State House in a way that befits its majestic history and its current role as the Capitol. (c) The consultant is entitled to the compensation provided in the State budget. (d) The consultant shall: (1) prepare measured drawings of the State House; (2) publish the drawings and a descriptive text; (3) send copies of the drawings to the National Trust for Historic Preservation; and (4) subject to Sec. 2-1257 of this article, submit to the General Assembly a report on the drawings. ### Subtitle 6. Government House Trust #### Section 9-601 In this subtitle, "Trust" means the Government House Trust. #### Section 9-602 There is a Government House Trust. #### Section 9-603 (a) The Trust shall consist of the following voting members: (1) the Governor; (2) the President of the Senate; (3) the Speaker of the House of Delegates; (4) the Secretary of General Services; and (5) the Director of the Maryland Historical Trust. (b) The Trust shall consist of the following advisor nonvoting members: (1) the Director of the Baltimore Museum of Art; (2) the Director of the Maryland Historical Society; (3) the Director of the St. Mary's City Commission; (4) the Director of the Talbot County Historical Society; (5) the Director of the Walters Museum of Art; (6) the Director of the Washington County Museum of Fine Arts; (7) the Chairman of the History Department of the University of Maryland, College Park Campus; (8) the Horticulturist from the Paca House and Gardens; (9) the State Archivist; and (10) up to three members of the general public appointed by the Governor. (c) A voting or nonvoting member may designate another individual to represent the member at the Trust. #### Section 9-604 The Secretary of General Services is the Chairman of the Trust. #### Section 9-605 (a) The Trust shall meet at least twice a year or as necessary as determined by the Trust. (b) A voting and nonvoting member of the Trust: (1) may not receive compensation; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (c) The Trust may: (1) adopt bylaws for the regulation of its affairs and the conduct of its business; and (2) appoint committees to carry out the purposes of the Trust. #### Section 9-606 (a) (1) In this section the following words have the meanings indicated. (2) (i) "Furnishings" means personal property and fixtures. (ii) "Furnishings" includes furniture, art objects, and accessories. (3) "State room" means any of the following rooms of the Government House: (i) the center hall; (ii) the conservatory; (iii) the private reception room; (iv) the State dining room; (v) the State drawing room; (vi) the State parlour; and (vii) the State reception room. (b) In addition to any duties set forth elsewhere, the Trust shall: (1) be responsible for the renovation of the State rooms, including their design and furnishings; (2) supervise and direct any improvement or other change in the internal design or furnishings of a State room; (3) be responsible for any proposed landscaping of the grounds of the Government House; (4) be responsible for the conservation and restoration of objects in a State room; and (5) be responsible for and carry out the maintenance of the State rooms. (c) The Department of General Services shall maintain an inventory of furnishings in the Government House. (d) In addition to any powers set forth elsewhere, the Trust, on behalf of the State, may: (1) accept and receive a gift or loan of property for use in a State room; and (2) accept and receive a gift of money for maintenance and restoration of a State room. (e) Unless the Trust approves, the internal design and furnishings of a State room may not be changed. (f) Before the renovation, furnishing, and decoration of a State room, the Trust shall consult with and obtain the input of the Board of Trustees and the Council of the Maryland Historical Society. ### Subtitle 8. Financial Education and Capability Commission #### Section 9-801 In this subtitle, "Commission" means the Financial Education and Capability Commission. #### Section 9-802 There is a Financial Education and Capability Commission. #### Section 9-803 (a) The Commission consists of the following members: (1) two members of the Senate of Maryland, appointed by the President of the Senate; (2) two members of the House of Delegates, appointed by the Speaker of the House; (3) the State Superintendent of Schools, or the Superintendent's designee; (4) the Secretary of Housing and Community Development, or the Secretary's designee; (5) the Commissioner of Financial Regulation in the Maryland Department of Labor, or the Commissioner's designee; (6) the Executive Director of the Family Investment Administration in the Department of Human Services, or the Executive Director's designee; (7) the Chief of the Consumer Protection Division of the Office of the Attorney General, or the Chief's designee; (8) the State Treasurer, or the State Treasurer's designee; (9) the Comptroller, or the Comptroller's designee; (10) the Secretary of Higher Education, or the Secretary's designee; (11) the Secretary of Disabilities, or the Secretary's designee; and (12) the following members, appointed by the Governor: (i) one member of the Board of Trustees of the Maryland State Employees Supplemental Retirement Plans; (ii) one member of the Maryland State Education Association who teaches a course involving principles of financial education; (iii) one representative of the Maryland CASH Campaign; (iv) one representative of a community-focused nonprofit organization that provides free financial education in the State; (v) one representative of a philanthropic organization that provides funding for financial education in the State; (vi) one representative of the Maryland Council on Economic Education or the Maryland Coalition for Financial Literacy; (vii) one representative of a bank, whether or not State-chartered, that has a branch in the State; (viii) one representative of a credit union, whether or not State-chartered, that has a branch in the State; (ix) one licensed mortgage broker holding the Maryland Association of Mortgage Brokers' "Lending Seal of Integrity"; (x) one member of the Maryland Association of CPAs; and (xi) one representative of a nonprofit organization in the State that provides financial assistance and free financial education to State residents for postsecondary education. (b) (1) The term of an appointed member of the Commission is 4 years. (2) The terms of the appointed members are staggered as required by the terms provided for appointed members of the Commission on October 1, 2012. (3) At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies. (4) A member who is appointed after a term has begun serves only for the remainder of the term and until a successor is appointed and qualifies. (c) (1) The President of the Senate shall designate one of the members appointed from the Senate as co-chair of the Commission. (2) The Speaker of the House of Delegates shall designate one of the members appointed from the House as co-chair of the Commission. (d) The Maryland CASH Campaign shall provide staff for the Commission. (e) A member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (f) The Commission shall meet at least two times each year at the times and places determined by the Commission. #### Section 9-804 (a) The Commission shall: (1) monitor the implementation of public and private initiatives to improve the financial education and capability of residents of the State; (2) make recommendations on the coordination of financial education and capability efforts across State agencies; and (3) encourage financial education events and activities to highlight April as Financial Education Month. (b) (1) Subject to paragraph (2) of this subsection, on or before December 1 each year, the Commission shall report to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly on its recommendations and the status of efforts undertaken by State agencies or in partnership with State agencies to improve the financial education and capability of residents of the State. (2) Every 3 years, the report of the Commission required under paragraph (1) of this subsection shall include a comprehensive discussion of statewide efforts to improve the financial education and capability of residents of the State, including initiatives funded by the State or a local government and those undertaken in the private sector by nonprofit organizations, financial institutions, and other persons. ### Subtitle 9. Department of Veterans and Military Families #### Section 9-901 (a) In this subtitle the following words have the meanings indicated. (b) "Active duty" has the meaning stated in 37 U.S.C. Sec. 101. (c) "Active military, naval, air, or space service" has the meaning stated in 38 U.S.C. Sec. 101. (d) "Active service member" means an individual who is: (1) an active duty member of the uniformed services; or (2) serving in a reserve component of the uniformed services on active duty orders. (e) "Armed forces" has the meaning stated in 10 U.S.C. Sec. 101. (f) "Board" means the Board of Trustees of the Maryland Veterans Trust. (g) "Department" means the Department of Veterans and Military Families. (h) "Interment" means all final disposition of human remains, including: (1) earth burial; and (2) niche or columbarium inurnment. (i) "Interment location" means a grave plot or niche in a columbarium. (j) "Military family" includes the spouse and dependent children of a service member or veteran related by blood, marriage, or adoption. (k) "Military protection order" means a protection order issued in accordance with 10 U.S.C. Sec. 1567 by a commanding officer against a person under the officer's command in: (1) any branch of the uniformed services; (2) the Maryland National Guard; or (3) the national guard of any other state. (l) "Reserve component" has the meaning stated in 37 U.S.C. Sec. 101. (m) "Secretary" means the Secretary of Veterans and Military Families. (n) "Service member" means an individual who is a member of: (1) the uniformed services; or (2) a reserve component of the uniformed services. (o) "Trust" means the Maryland Veterans Trust. (p) "Uniformed services" has the meaning stated in 37 U.S.C. Sec. 101. (q) Except as otherwise provided in this subtitle, "veteran" has the meaning stated in 38 U.S.C. Sec. 101. #### Section 9-902 (a) There is a Department of Veterans and Military Families, established as a principal department of the State government. (b) The head of the Department is the Secretary of Veterans and Military Families who shall be: (1) a veteran who has an honorable discharge from active service with a uniformed service; and (2) appointed by the Governor with the advice and consent of the Senate. (c) (1) 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 these matters. (2) The Secretary is responsible for: (i) the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient operation of the Department; and (ii) the development of coordinated policies for leading veterans, service members, and their families through life's transitions, including assisting in securing benefits earned through service in the uniformed services and reserve components. (3) Subject to the provisions of this subtitle, the Secretary may establish, reorganize, or consolidate areas of responsibility in the Department as necessary to fulfill the duties assigned by the Secretary. (4) The Secretary shall adopt regulations necessary to carry out the provisions of this subtitle. (d) The Secretary is entitled to the salary provided in the State budget. #### Section 9-902.1 (a) The Secretary shall appoint a Deputy Secretary of Military Family Policy and Programs. (b) The Deputy Secretary shall serve at the pleasure of the Secretary. (c) The Deputy Secretary is entitled to the salary provided in the State budget. (d) The Deputy Secretary shall direct policy and programs related to military families. #### Section 9-903 The Attorney General is the legal adviser to the Department. #### Section 9-904 (a) (1) The Department may: (i) establish service centers that the Department considers necessary or advisable to facilitate and expedite the servicing of claims of veterans and dependents; and (ii) close any service center that the Department no longer considers necessary. (2) The Department shall try to locate each service center centrally in the area to be served so that the greatest number of veterans: (i) have access with the least possible delay, travel, and inconvenience; and (ii) receive, as far as possible, personal attention. (b) There shall be a Director of Veterans Service Centers responsible for the supervision of veterans service centers, whose duties shall include maintaining contact with the appropriate governmental unit regarding the status of each claim of a veteran or eligible dependent of a veteran. #### Section 9-905 The Department shall: (1) help veterans and their dependents to receive promptly and regularly all of the benefits to which veterans or dependents are entitled under federal law; (2) help veterans and their dependents in: (i) preparing, in proper form, claims for benefits; (ii) presenting the claims to the appropriate governmental unit; (iii) trying to prevent and to relieve congestion in the processing of the claims; and (iv) obtaining and expediting action on the claims; and (3) on request, provide a veteran with a document certifying veteran status. #### Section 9-905.1 (a) (1) In this section the following words have the meanings indicated. (2) "Advertisement" means: (i) a written or printed communication made for the purpose of soliciting business for veterans benefits appeals services; (ii) a directory listing for a person that is offering veterans benefits appeals services; or (iii) a radio, television, computer network or airwave, or electronic transmission that solicits business for or promotes a person offering veterans benefits appeals services. (3) "Veterans benefits appeals services" means any services that a veteran might reasonably require in order to appeal a denial of federal, state, or local veterans benefits, including denials of disability, limited income, home loan, insurance, education and training, health care, interment and memorial, and dependent and survivor benefits. (4) "Veterans benefits services" means any services a veteran or a family member of a veteran might reasonably use in order to obtain federal, state, or local veterans benefits. (b) (1) Before entering into an agreement with an individual for the provision of veterans benefits services or veterans benefits appeals services, a person who charges a fee for those services shall: (i) provide a written disclosure statement to each individual; and (ii) obtain the individual's signature on the written disclosure statement acknowledging that the individual understands the disclosure statement. (2) The written disclosure statement shall: (i) be on a form approved by the Secretary; and (ii) state that veterans benefits services and veterans benefits appeals services are offered at no cost by the Department and other veterans services organizations accredited by the U.S. Department of Veterans Affairs. (c) A person who charges a fee for providing veterans benefits appeals services shall provide in any advertisement for appeals services notice that appeals services are also offered at no cost by the Department and other veterans services organizations accredited by the U.S. Department of Veterans Affairs. (d) (1) A person who violates the provisions of this section is subject to a civil penalty of not more than $1,000 for each violation. (2) Civil penalties shall be in an amount ordered by the District Court in an action brought by the Attorney General. (3) Each day a violation continues is a separate violation. (4) Any civil penalty collected shall be deposited in the Maryland Veterans Trust Fund. #### Section 9-906 (a) (1) In this section the following words have the meanings indicated. (2) "American braille tactile flag" means a tactile flag designed to allow blind people to experience the American flag, including a flag created by the Kansas Braille Transcription Institute. (3) In this section and in Sec. 9-907 of this subtitle, "eligible decedent" means: (i) a veteran; (ii) a qualified reserve member; or (iii) an eligible spouse or dependent. (4) "Eligible dependent" means: (i) a child who meets the requirements stated in 38 C.F.R. Sec. 38.620(e); (ii) a parent who meets the requirements stated in 38 C.F.R. Sec. 38.620(i); or (iii) a parent or child related by blood, marriage, or adoption of a qualified reserve member. (5) "Eligible spouse" means: (i) a spouse who meets the requirements stated in 38 C.F.R. Sec. 38.620(e); or (ii) a spouse of a qualified reserve member. (6) "Qualified reserve member" means a reserve component member who does not meet the requirements for interment at a national veterans' cemetery but served other than dishonorably and completed the individual's contractual obligation of service. (7) "State veterans' cemetery" means a cemetery that the Department establishes under this section. (8) "Washington Cemetery" means the Civil War cemetery grounds authorized by Chapter 213 of the Acts of the General Assembly of 1870. (b) The Department may establish one or more cemeteries in the State for the burial of eligible decedents as authorized by the Secretary. (c) The Department may accept land, on behalf of the State or a political subdivision of the State, or otherwise acquire land for a State veterans' cemetery, if the Department has the approval of: (1) the governing body of the county where the State veterans' cemetery is to be located; (2) the delegation in the General Assembly for the county where the State veterans' cemetery is to be located; and (3) the Board of Public Works. (d) (1) The Department shall maintain and supervise each State veterans' cemetery. (2) The Washington Cemetery shall be under the supervision of the Department. (e) The Department shall provide an interment location in a State veterans' cemetery, without charge, to a veteran or a veteran's eligible spouse or dependent who meets the requirements of this section. (f) To qualify for an interment location in a State veterans' cemetery: (1) the eligible decedent must be: (i) a veteran who meets the requirements for interment at a national veterans' cemetery; (ii) a qualified reserve member; or (iii) an eligible spouse or dependent who meets the requirements of this subsection; and (2) if a qualified reserve member, the qualified reserve member must also have been a resident of the State: (i) when the qualified reserve member entered the reserve component; (ii) when the qualified reserve member died; or (iii) for 2 years, unless, for a reason that the Department finds compelling, the Department waives the time period. (g) To obtain an interment location in a State veterans' cemetery, an applicant shall submit to the Department an application on the form that the Department provides. (h) (1) In an interment location that is allotted to a veteran or a qualified reserve member, the Department shall inter: (i) the veteran or qualified reserve member; and (ii) any member of the immediate family who is an eligible spouse or dependent if the family member can be interred in a space above or below the veteran or qualified reserve member or in the next available interment location. (2) With each interment location, the Department shall provide an outer burial receptacle or columbarium niche and marker at no cost for the veteran or the veteran's eligible spouse or dependent. (i) (1) Except as provided in paragraph (2) of this subsection, the Department may not charge a veteran or a veteran's eligible spouse or dependent for interment. (2) If the individual being interred is a qualified reserve member or a qualified reserve member's eligible spouse or dependent, the Department shall collect at the time of interment a fee that is equal to the annual interment location allowance established by the National Cemetery Administration. (j) The Department shall designate a location for an American braille tactile flag to be placed in one or more State veterans' cemeteries as authorized by the Secretary to honor members of the uniformed services, veterans, and other individuals in the State who are blind or visually impaired. #### Section 9-907 The Department shall keep a registry of the interment locations of eligible decedents who are interred in the State veterans' cemeteries. #### Section 9-908 (a) In this section, "veterans' memorials and monuments" means: (1) the Maryland Vietnam Veterans Memorial and Associated Land as established pursuant to Joint Resolution No. 22 of 1983; (2) the Maryland Korean War Memorial and Associated Land as established pursuant to Joint Resolution No. 3 of 1985; and (3) the Maryland World War II Memorial and Associated Land. (b) There is a Veterans' Memorials and Monuments Program administered by the Department. (c) The purpose of the Program is to provide for the operation, maintenance, security, and preservation of veterans' memorials and monuments. (d) In furtherance of these purposes, the Department may, as provided for in the budget: (1) lease land on behalf of the State or a political subdivision of the State; or (2) acquire land that has been improved by construction of a memorial or monument. (e) The Secretary may adopt regulations to carry out the provisions of this section. (f) (1) The Department shall, as provided for in the budget, provide for the management of the veterans' memorials and monuments as provided in this section. (2) The Department may delegate any of its powers and duties under this section to a special commission or board created by the Department and approved by the Governor. (g) The Department may acquire, hold, use, and improve property for the purposes specified in subsection (c) of this section. (h) Subject to Title 7 of the State Finance and Procurement Article, the Department may: (1) accept gifts or grants; (2) unless otherwise provided, spend the principal and income of a gift or grant; and (3) invest all or part of the principal income in general obligations of the State or any other security. #### Section 9-909 "Home" means the home or homes for veterans that the Department supervises. #### Section 9-910 (a) The Department shall: (1) maintain and supervise generally the home in accordance with this subtitle; and (2) adopt any regulation that is needed for management of the home, including regulations for admission, maintenance, and discharge of its residents. (b) (1) The Department may appoint a Director for the home and employ any other staff that is needed to manage the home properly. (2) In appointing or employing staff, the Department shall give preference to a veteran who has an honorable discharge from the uniformed services. (3) The Director shall: (i) serve at the pleasure of the Secretary; and (ii) perform any duty that the Department requires. #### Section 9-911 (a) In accordance with the regulations of the Department and applicable law, the home shall be open: (1) to a veteran who: (i) has an honorable discharge from active service with a uniformed service; and (ii) is a resident of the State as defined in regulations adopted by the Secretary; or (2) to a spouse of an eligible veteran. (b) (1) The Department may charge an individual a reasonable fee for residence in the home. (2) The Department shall set the fee in accordance with the ability of an individual to pay. However, the fee may not exceed the cost of maintaining the resident in the home and shall allow the resident enough money for necessary and incidental expenses. (c) A resident may be discharged in accordance with the regulations of the Department and applicable law. #### Section 9-912 (a) To carry out the responsibilities and goals of the Department, the Department may acquire, hold, use, improve, and convey property. (b) (1) In addition to any other power under this section, the Department may lease any part of the home property for use as a concession or other commercial purpose that is consistent with the purposes of the Department. However, the Department may not lease its property merely for investment purposes. (2) Notwithstanding any other law, unless the lease expressly provides for redemption by the tenant, the lease is not subject to redemption. #### Section 9-912.1 (a) Subject to Title 7 of the State Finance and Procurement Article, to carry out the purposes or goals of the Department, the Charlotte Hall Veterans Home may: (1) accept a gift or grant for use at the Charlotte Hall Veterans Home; and (2) unless the terms of a gift or grant require otherwise, and subject to the approval of the Secretary, spend the principal and income of the gift or grant for use at the Charlotte Hall Veterans Home. (b) Gifts and grants that the Charlotte Hall Veterans Home accepts under subsection (a) of this section for use at the Home: (1) shall be administered by the Director of the Veterans Home Program; and (2) are not subject to reversion under Sec. 7-302 of the State Finance and Procurement Article. (c) (1) On or before July 31 of each year, the Director of the Veterans Home Program shall submit a report to the Secretary on the status of the gifts and grants accepted for use at the Charlotte Hall Veterans Home. (2) On or before August 31 of each year, the Secretary shall submit a report to the General Assembly, in accordance with Sec. 2-1257 of this article, on the status of the gifts and grants accepted for use at the Charlotte Hall Veterans Home. (3) The reports required under this subsection shall include the following information on the gifts and grants accepted for use at the Charlotte Hall Veterans Home during the previous fiscal year: (i) the gross amount of the gifts and grants; (ii) the costs of administration of the gifts and grants; and (iii) a detailed accounting of the use of the gifts and grants. #### Section 9-912.2 (a) (1) In this section the following words have the meanings indicated. (2) "Bed lease payments" means a daily rate paid by the contractor that operates the Charlotte Hall Veterans Home to the State in lease payments based on the total number of beds, regardless of whether all of the beds are filled. (3) "Fund" means the Charlotte Hall Veterans Home Fund. (b) There is a Charlotte Hall Veterans Home Fund. (c) The purpose of the Fund is to maintain the operation of the Charlotte Hall Veterans Home. (d) The Secretary shall administer the Fund. (e) (1) (i) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (ii) Except as provided in subparagraph (iii) of this paragraph, any unspent portions of the Fund may not be transferred to or revert to the General Fund of the State. (iii) If, after deducting all expenses authorized under subsection (g) of this section, the remaining balance of the revenue to the Department from bed lease payments at the end of a fiscal year is greater than 10% of the total budget of the Charlotte Hall Veterans Home for that fiscal year, the amount of the remaining balance that is in excess of 10% of the total budget shall revert to the General Fund of the State. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) The Fund consists of bed lease payments. (g) The Fund may be used only for: (1) the salaries and benefits of the departmental staff of the Charlotte Hall Veterans Home; (2) improvements to the Charlotte Hall Veterans Home; and (3) any other operating expenses of the Charlotte Hall Veterans Home. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the General Fund of the State. (i) Expenditures from the Fund may be made only in accordance with the State budget. (j) Money expended from the Fund for the Charlotte Hall Veterans Home is supplemental to, and is not intended to take the place of, funding that otherwise would be appropriated for the Charlotte Hall Veterans Home. (k) The Office of Legislative Audits shall audit the accounts and transactions of the Fund as provided in Sec. 2-1220 of this article. #### Section 9-913 (a) In this section, "Fund" means the Maryland Veterans Trust Fund. (b) (1) There is a Maryland Veterans Trust established for the purpose of providing monetary and other assistance to: (i) veterans and their families; (ii) members of the Maryland National Guard and their families; and (iii) public and private programs that support veterans and their families. (2) There is a Maryland Veterans Trust Fund. (c) The Trust shall be a body corporate and shall have perpetual existence, subject to modification or termination by the General Assembly if necessary to effectuate its purpose or if its substantial purpose ceases to exist. (d) The Fund consists of: (1) gifts and grants that the Trust receives under Sec. 9-914.2(a)(1) of this subtitle; (2) contributions to the Fund from: (i) the sale of tickets from instant ticket lottery machines under Sec. 9-112(d) of this title; (ii) the donations from video lottery facility players under Sec. 9-1A-04(d)(19) of this title; (iii) the designated fees from special registration plates for recipients of an individually earned, combat-related armed forces medal or a non-combat-related uniformed services medal of the highest levels under Sec. 13-619.1 of the Transportation Article; and (iv) civil penalties collected in accordance with Sec. 9-905.1 of this subtitle; and (3) the net proceeds from contributions under the income tax checkoff established under Sec. 2-117 of the Tax - General Article. (e) Money in the Fund may only be used to: (1) make grants and loans under Sec. 9-914.2(a)(3) of this subtitle; (2) be invested under Sec. 9-914.3(b) of this subtitle; and (3) pay the costs of administering the Fund through distribution to an administrative cost account in the Department. (f) Money expended from the Fund is not intended to take the place of funding that would otherwise be appropriated to the Department. #### Section 9-914 (a) The powers and duties of the Trust shall rest in and be exercised by a Board of Trustees. (b) The Board of Trustees shall consist of the following 12 members: (1) the Secretary, ex officio, or the Secretary's designee, who shall serve as the chair; (2) the Secretary of Aging, ex officio, or the Secretary's designee; (3) the Secretary of Labor, ex officio, or the Secretary's designee; (4) the Secretary of Health, ex officio, or the Secretary's designee; (5) the Secretary of Human Services, ex officio, or the Secretary's designee; (6) the Secretary of Disabilities, ex officio, or the Secretary's designee; (7) the Adjutant General of the Military Department, ex officio, or the Adjutant General's designee; (8) one representative of each of the following organizations, appointed by the Governor: (i) a veterans service organization; (ii) a nonprofit organization that serves veterans; and (iii) the business community; (9) as an ex officio trustee, a member of the House of Delegates appointed by the Speaker of the House; and (10) as an ex officio trustee, a member of the Senate appointed by the President of the Senate. (c) The Governor shall consider geographical balance in making appointments to the Board of Trustees. (d) Except for the ex officio members or their designees: (1) the term of a member is 4 years; (2) the terms of members are staggered as required by the terms provided for members of the Board on July 1, 2013; (3) at the end of a term, a member continues to serve until a successor is appointed and qualifies; (4) a member who is appointed after a term has begun serves for the rest of the term and until a successor is appointed and qualifies; and (5) a member may serve no more than 2 terms. #### Section 9-914.1 (a) The Board shall meet at places and dates to be determined by the Board, but not less than 2 times a year. (b) A majority of the trustees is a quorum. (c) A trustee: (1) may not receive compensation as a trustee; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (d) The Department shall provide staff, supplies, and office space for the Board. #### Section 9-914.2 (a) The Trust shall have the powers and duties to: (1) solicit and accept any gift, grant, legacy, or endowment of money from the federal government, State government, local government, or any private source in furtherance of the Trust; (2) maintain the Fund, which shall consist of any gift, grant, legacy, or endowment provided to the Trust under item (1) of this subsection; (3) expend money from the Fund to provide grants or loans to: (i) veterans and their families; (ii) members of the Maryland National Guard and their families; (iii) public and private programs that support veterans and their families; or (iv) any other programs that the Trust considers to be within the purpose for which the Trust is established; (4) develop projects for sponsorship by corporate and business organizations or private individuals; (5) make, execute, and enter into any contract or other legal instrument; (6) receive appropriations as provided in the State budget; (7) acquire, hold, use, improve, and convey property; (8) lease and maintain an office at a place within the State that the Trust designates; (9) adopt bylaws for the regulation of its affairs and the conduct of its business; (10) take any other action necessary to carry out the purposes of the Trust; (11) sue and be sued, but only to enforce contractual or similar agreements with the Trust; and (12) submit a report on or before August 31 of each year to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly, with recommendations or requests deemed appropriate to further the purposes of the Trust, and a description of the activities of the Trust during the preceding year, including: (i) the gross amount of gifts and grants credited to the Trust; (ii) the costs of administration of the Trust; and (iii) a detailed accounting of the use of the Trust. (b) The Trust may carry out its corporate purposes without obtaining the consent of any department, board, or agency of the State. (c) In exercising its powers, the Trust is exempt from the provisions of Division II of the State Finance and Procurement Article. #### Section 9-914.3 (a) All money received by the Trust shall be deposited, as directed by the Trust, in any state or national bank, or federally or state-insured savings and loan associations located in the State having a total paid-in capital of at least $1,000,000. The trust department of any state or national bank or savings and loan association may be designated as a depository to receive any securities acquired or owned by the Trust. The restriction with respect to paid-in capital may be waived for any qualifying bank or savings and loan association that agrees to pledge securities of the state or of the United States to protect the funds and securities of the Trust in amounts and under arrangements acceptable to the Trust. (b) (1) Except as provided in paragraph (2) of this subsection, any money of the Trust, in its discretion and unless otherwise provided in any agreement or covenant between the Trust and the holders of any of its obligations limiting or restricting classes of investments, may be invested in bonds or other obligations of the United States, the State, the political subdivisions or units of the State, direct or indirect federal agencies, corporate bonds with a rating of BAA3/BBB, or mortgage-backed and asset-backed securities with a rating of AAA. (2) The overall investment portfolio of the Trust must have a rating of at least AA. (c) The Trust shall make provision for a system of financial accounting, controls, audits, and reports. (d) The books, records, and accounts of the Trust are subject to audit by the State. #### Section 9-915 In this Part II of this subtitle, "Commission" means the Maryland Veterans Commission. #### Section 9-916 There is a Maryland Veterans Commission in the Department that shall advise the Secretary of all matters pertaining to veterans issues. #### Section 9-917 (a) (1) The Commission consists of the following members appointed by the Governor. (2) Of the members: (i) 1 shall be appointed from each of the 8 congressional districts in the State; (ii) 1 shall be a veteran appointed from the State at large; (iii) 1 shall be a woman veteran appointed from the State at large; (iv) 1 shall be a representative of a retired enlisted organization; (v) 1 shall be a veteran of the Iraq or Afghanistan conflict, as defined in Sec. 1-202(a-1) of the Public Safety Article; and (vi) 1 shall be appointed from a list of individuals submitted to the Governor by each of the following organizations: (1) the American Legion; (2) the AMVETS; (3) the Catholic War Veterans; (4) the Disabled American Veterans; (5) the Fleet Reserve Association; (6) the Jewish War Veterans; (7) the Marine Corps League; (8) the Maryland Military Officers Association of America; (9) the Military Order of the Purple Heart; (10) the Veterans of Foreign Wars; (11) the Vietnam Veterans of America; (12) the Korean War Veterans Association, Inc.; (13) the National Association for Black Veterans; (14) the Colonial Chapter of the Paralyzed Veterans of America; (15) the Reserve Organization of America; and (16) an organization representing military families. (b) Each member must be a resident of the State. (c) (1) The term of an appointed member is 5 years. (2) The terms of the appointed members are staggered as required by the terms provided for members of the Commission on October 1, 1984. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) 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. (5) When an organization is no longer a part of the Commission, the appointment shall terminate at the end of the current member's term. (6) An organization's representative seat may be removed if the organization fails to appoint a new commissioner for 2 continuous years. (7) An organization may be removed from the Commission if a representative from the organization is not recommended by that organization. #### Section 9-918 (a) From among the members of the Commission, the Governor shall appoint a chair. (b) A vice chair shall be elected by a simple majority vote of the Commission. #### Section 9-919 (a) The Commission shall determine the times and places of its meetings. (b) A member of the Commission: (1) may not receive compensation; but (2) if the Commission approves, is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (c) The Department shall provide staff support to the Commission in accordance with the State budget. #### Section 9-922 There is a Maryland Veterans' Home Commission in the Department. #### Section 9-923 (a) The purpose of the Maryland Veterans' Home Commission is to advise the Department of issues related to State veterans homes. (b) The General Assembly declares the purpose of the Maryland Veterans' Home Commission to be of general benefit to the veterans of the State. #### Section 9-924 This Part III of this subtitle does not limit any power or activity of: (1) a unit of the State government; (2) a political subdivision of the State; or (3) any person who is interested in veterans in the State. #### Section 9-925 (a) The Veterans' Home Commission consists of the following 14 members: (1) 11 individuals appointed by the Governor with the advice and consent of the Senate; and (2) as ex officio members: (i) the Governor; (ii) the President of the Senate; and (iii) the Speaker of the House of Delegates. (b) (1) The term of an appointed member is 5 years. (2) The terms of the appointed members are staggered as required by the terms provided for members of the Veterans' Home Commission on October 1, 1984. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) 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. (c) As far as is practicable and is consistent with the purposes and goals of the Veterans' Home Commission, the Governor shall choose appointed members so as to have a broad distribution from among: (1) veterans and veterans' organizations; and (2) the geographical areas of the State. #### Section 9-926 (a) From among its members, the Veterans' Home Commission shall elect a chair, a secretary, and any other officers that the Commission considers appropriate. (b) The manner of election of officers and their terms of office shall be as the Veterans' Home Commission determines. #### Section 9-927 (a) Seven members of the Veterans' Home Commission are a quorum to do business. (b) (1) The Veterans' Home Commission shall meet: (i) at least twice a year, at the times and places that it determines; and (ii) at the call of the Chair, on the Chair's initiative or on the request of at least 4 members. (2) Unless all of the members of the Veterans' Home Commission agree otherwise, the secretary of the Commission shall give each member at least 7 days' written notice of a meeting. (3) If the President is unable to attend a meeting, the President may designate a Senator or an employee of the General Assembly to represent the President at the meeting. (4) If the Speaker is unable to attend a meeting, the Speaker may designate a Delegate or an employee of the General Assembly to represent the Speaker at the meeting. (5) If the Governor is unable to attend a meeting, the Governor may designate another individual to represent the Governor at the meeting. (c) A member of the Veterans' Home Commission: (1) may not receive compensation; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. #### Section 9-928 (a) With the approval of the Secretary, the Veterans' Home Commission may adopt procedures to: (1) govern itself; and (2) carry out the responsibilities of the Veterans' Home Commission. (b) The Commission: (1) may not incur any expenses without the consent of the Department; and (2) at each regular meeting of the Commission or more often as it directs, shall submit to the Department a report on any action that the Commission has taken since its last report. (c) (1) The Veterans' Home Commission shall through the Department submit an annual report: (i) to the Governor; and (ii) subject to Sec. 2-1257 of this article, to the General Assembly. (2) The annual report shall: (i) describe the activities of the Commission; and (ii) include any recommendations for furthering the purposes of the Commission. (d) As far as practicable, the Veterans' Home Commission shall cooperate with persons and public agencies to carry out the purposes and goals of the Commission and Department. #### Section 9-929 The State is not obligated to provide capital or operating funds for the Veterans' Home Commission but may appropriate money for the purposes and goals of the Commission. #### Section 9-932 In this Part IV of this subtitle, "Commission" means the War Memorial Commission. #### Section 9-933 There is a War Memorial Commission in the Department. #### Section 9-934 (a) (1) The Commission consists of 10 members. (2) Of the 10 Commission members: (i) 5 shall be appointed by the Secretary, with the approval of the Governor; and (ii) 5 shall be appointed by the Mayor of Baltimore City. (b) Each member must be a Maryland war veteran. (c) (1) The term of a member is 5 years. (2) The terms of a member are staggered as required by the terms provided for members of the Commission on October 1, 1984. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) 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. #### Section 9-935 (a) From among its members, the Commission may elect: (1) a chair; (2) a vice chair; and (3) a secretary and a treasurer or a secretary-treasurer. (b) The manner of election of officers and their terms of office shall be as the Commission determines. #### Section 9-936 (a) A member of the Commission may not receive compensation. (b) If the Commission approves the reimbursement and records the vote in the minutes, a member is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. #### Section 9-937 The State and Baltimore City jointly shall hold title to the War Memorial Building and the memorial site. #### Section 9-938 (a) The Commission may provide for management of the War Memorial Building as provided in this section. (b) (1) The Commission shall adopt regulations that provide for the management of the War Memorial Building in a manner that: (i) permits the greatest possible use of the building by the people of the State and by patriotic organizations in the State; and (ii) to the extent possible, permits the use by the patriotic organizations without cost. (2) The Commission shall enforce the regulations. (c) The Commission may appoint a custodian and a janitor for the War Memorial Building. (d) The Commission may use, for the maintenance and administration of the building, any funds that the General Assembly or the Mayor and City Council of Baltimore appropriate for those purposes. #### Section 9-940 (a) In this part, "Program" means the Communications, Outreach, and Advocacy Program. (b) There is a Communications, Outreach, and Advocacy Program in the Department. (c) The purpose of the Program is to ensure that: (1) veterans, service members, and their families are informed of the services, benefits, and assistance available to them from the State and federal government and community organizations; and (2) general issues relating to veterans', service members', and their families' needs are brought to the attention of the Governor and the General Assembly in order for them to be addressed. #### Section 9-941 (a) The Secretary shall appoint a director for the Program. (b) The director is entitled to the salary provided in the State budget. (c) The director shall administer and coordinate the Program. #### Section 9-942 (a) The Program shall actively help veterans, service members, and their dependents become aware of and access any service or benefit to which they are entitled including: (1) tax benefits; (2) health care benefits; (3) disability benefits; and (4) pension benefits. (b) The Program, in collaboration with the Maryland Higher Education Commission, shall actively help veterans, service members, and their dependents become aware of and access education and training benefits to which they are entitled. (c) The director of the Program shall: (1) support veterans, service members, and their dependents through the service or benefit process; and (2) refer veterans, service members, their dependents, and their survivors to the appropriate governmental unit for claim assistance. #### Section 9-943 (a) (1) For the purposes of reaching any veteran, service member, dependent of a veteran or service member, or survivor of a veteran or service member in need of assistance in obtaining services or benefits granted by the law, the director shall develop and implement a communications and outreach plan. (2) In order to carry out the director's responsibilities under paragraph (1) of this subsection, the director may: (i) enter into contracts; and (ii) work with governmental units and community-based organizations, including the Maryland Department of Health, the Department of Aging, faith-based groups, veterans groups, senior centers, adult day care centers, institutions of higher education, and other entities the director considers appropriate. (b) (1) The director shall develop mechanisms for outreach to be disseminated by direct mail and through community-based veterans organizations, the Department, the Department of Human Services, the Maryland Department of Health, and any other State agency or unit the director considers appropriate. (2) Communication mechanisms shall include: (i) designing marketing materials describing the services provided by the Program; (ii) a regular electronic newsletter; (iii) brochures describing various benefits or any other issue or benefit of interest to veterans, service members, or their dependents; and (iv) other measures the director considers appropriate. (c) The Department shall communicate welcome home information to veterans and service members returning to the State. (d) The Department, in conjunction with the types of community-based organizations listed in subsection (a)(2) of this section, shall develop communication tools to assist in identifying veterans, service members, and dependents who may be eligible for benefits and programs offered by the Department. (e) The Program shall: (1) manage the Maryland Veterans Service Animal Program and Fund established under Part VIII of this subtitle; (2) coordinate the responsibilities of veterans' services specialists designated under Sec. 9-944 of this subtitle; and (3) manage Department media relations, web content, social media, internal and external communications, customer service training, and intergovernmental relations. (f) The director shall serve, as necessary, as the Secretary's designee to appropriate commissions, workgroups, and councils. #### Section 9-944 (a) In this section, "specialist" means an employee designated by a governmental unit who is responsible for responding to and assisting veterans who are employed by the unit or who contact the unit for assistance. (b) Each governmental unit shall: (1) designate an employee of the unit, who to the extent practicable is a veteran, as a veterans' services specialist for the unit and whose duties include the coordination of veterans' services with the Department; (2) provide the Department with any nonprotected or nonprivate information about services the unit provides to veterans; and (3) post on the unit's website: (i) all services available for veterans from the unit; (ii) the contact information for the unit's veterans' services specialist; and (iii) a link to the Department with the contact information for the director of the Program in the Department. (c) The veterans' services specialist shall: (1) coordinate the provision of veterans' services available through the unit with the Department; and (2) attend annual training that the Department provides concerning the coordination of veterans' services. (d) On request for services by a veteran, a governmental unit that does not provide services to veterans shall direct the veteran to contact the Department and provide the veteran with the Department contact information. (e) The Department shall: (1) coordinate a meeting each quarter, or as otherwise necessary, with governmental units to discuss and receive information concerning the implementation of the requirements of this section; and (2) on or before January 15 each year, report on the implementation of the requirements of this section to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly. #### Section 9-946 The Secretary shall submit a report by December 31 of each year to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly, that includes: (1) the number of: (i) requests for help in obtaining benefits; (ii) public contacts made by the Communications, Outreach, and Advocacy Program; (iii) veterans enrolled in the United States Veterans Health Administration; and (iv) veterans receiving benefits; (2) the average amount of disability and pension benefits received by qualified individuals in this State compared to individuals in other states; (3) an account of the costs of operating the Communications, Outreach, and Advocacy Program; (4) a status of the accomplishments for, efficacy of, efficiency of, and level of resources available for each of the following programs: (i) cemetery; (ii) memorial; (iii) service; (iv) veterans homes; (v) communications, outreach, and advocacy; (vi) Maryland Veterans Service Animal Program and Fund; and (vii) veterans' services specialists; (5) a general assessment of the status of veterans in the State; (6) the estimated impact current operations are likely to have on the needs of veterans in the future; (7) the status of federal veterans programs as they relate to Maryland veterans; (8) a general assessment of communication methods utilized in support of the Communications, Outreach, and Advocacy Program; (9) any other issues concerning veterans that the Secretary considers appropriate; and (10) any other issues concerning service members, including issues uniquely pertaining to active service members that the Secretary considers appropriate. #### Section 9-949 (a) In this part the following words have the meanings indicated. (b) "College Collaboration" means the Maryland College Collaboration for Student Veterans, Memorandum of Understanding between the State and Maryland Institutions of Higher Education dated January 31, 2011. (c) "Commission" means the Maryland College Collaboration for Student Veterans Commission. #### Section 9-950 There is a Maryland College Collaboration for Student Veterans Commission in the Department. #### Section 9-951 (a) The Commission consists of the following members: (1) the designee of the Secretary; (2) the Chancellor of the University System of Maryland, or the Chancellor's designee; (3) the President of the Maryland Independent College and University Association, or the President's designee; (4) the Executive Director of the Maryland Association of Community Colleges, or the Executive Director's designee; and (5) one representative of any institution of higher education in the State that elects to participate, appointed by the President of the institution. (b) (1) The term of a member is 2 years. (2) At the end of a term, a member continues to serve until a successor is appointed and qualifies. #### Section 9-952 The Commission shall elect annually a chair, a vice chair, and a secretary from among the members of the Commission. #### Section 9-953 (a) The Commission shall meet at least four times each year. (b) A member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) may receive reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. #### Section 9-954 The Commission shall: (1) work to ensure the educational success of returning veterans, including their recruitment, successful transition into higher education, retention, and eventual graduation; (2) facilitate the sharing of best practices among institutions of higher education and State agencies regarding academic transition programs and support services designed for returning veterans; (3) work with institutions of higher education in the State to provide the following services to veterans, as set forth in the College Collaboration: (i) awareness of veteran reintegration challenges; (ii) communication and coordination of available veteran services; (iii) a designated "one door" office that coordinates veteran services and supports; (iv) behavioral health services; (v) financial aid and GI Bill support services; and (vi) peer support groups; (4) publish an annual report and any other material the Commission considers necessary; and (5) submit the annual report to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly. #### Section 9-957 (a) (1) In this section the following words have the meanings indicated. (2) "Eligible family member" means a spouse or dependent of an eligible veteran. (3) "Direct threat" has the meaning stated in the federal Americans with Disabilities Act. (4) "Eligible veteran" means a veteran who: (i) is a resident of the State; or (ii) receives treatment or care from a U.S. Department of Veterans Affairs or U.S. Department of Defense medical facility in the State. (5) "Fund" means the Maryland Veterans Service Animal Program Fund established under subsection (f) of this section. (6) "Nonprofit training entity" means a corporation, a foundation, or any other legal entity that: (i) is qualified under Sec. 501(c)(3) of the Internal Revenue Code; (ii) (1) engages in the training of service dogs or support dogs for use by veterans; or (2) uses trained therapy horses for interaction with veterans; and (iii) has been selected by the Department to provide services under this section. (7) "Program" means the Maryland Veterans Service Animal Program established under subsection (b) of this section. (8) "Program participant" means an eligible veteran or eligible family member who participates in the Program. (9) "Service dog" means a dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including physical, sensory, psychiatric, intellectual, or other mental disability. (10) "Successful Program participant" means a Program participant who successfully completes the training or therapy protocol specified by a nonprofit training entity. (11) "Support dog" means a dog that is individually trained and that serves as an emotional support or therapy animal that a medical professional, within the medical professional's scope of practice, has determined provides benefit for an individual with a sensory, psychiatric, intellectual, or other mental disability. (12) "Therapy horse" includes a horse determined appropriate for interactions with veterans by a stable licensed by the State that: (i) is a Professional Association of Therapeutic Horsemanship, International (PATH, Intl.) member center; or (ii) has Equine Assisted Growth and Learning Association (EAGALA) certified professionals who provide services to veterans. (b) There is a Maryland Veterans Service Animal Program in the Department. (c) The purposes of the Program are to: (1) refer eligible veterans and eligible family members who inquire about participation in the Program to one or more nonprofit training entities; (2) provide additional funding mechanisms to assist veterans and eligible family members participating in the Program; (3) encourage successful Program participants to assist in outreach and referral of other eligible veterans and eligible family members who could benefit from participation in the Program; (4) assist in the reduction of the Maryland veteran suicide rate; and (5) identify potential capital projects and services to facilitate more services for veterans and eligible family members in the State. (d) (1) The Department shall select at least one nonprofit training entity to: (i) implement a training or therapy protocol for the purposes of the Program that will teach each Program participant methodologies, strategies, and techniques for: (1) partnering with service dogs or support dogs; or (2) interacting with therapy horses; (ii) select qualified Program participants from those eligible veterans and eligible family members referred to the nonprofit entity under the Program; (iii) select an appropriate service dog, support dog, or therapy horse, as applicable, for each Program participant; (iv) facilitate each Program participant's training or therapy using the nonprofit training entity's training or therapy protocol; and (v) unless the nonprofit training entity uses trained therapy horses, partner each successful Program participant with the service dog or support dog on the Program participant's successful completion of the nonprofit training entity's training protocol. (2) To be eligible for selection under paragraph (1) of this subsection, a nonprofit entity must: (i) be based in the State; (ii) serve the needs of the veteran population in the State; and (iii) generate its own revenue and reinvest the proceeds of that revenue in the growth and development of its programs. (e) (1) A nonprofit training entity may disqualify a Program participant from participation in the Program if the nonprofit training entity determines that the Program participant's involvement in the Program: (i) presents a danger to the Program participant's mental or physical well-being; (ii) presents a direct threat to others; (iii) presents a direct threat to the mental or physical well-being of the service dog, support dog, or therapy horse; or (iv) does not meet the training requirement of the nonprofit training entity. (2) A Program participant may discontinue involvement in the Program for any reason. (f) (1) There is a Maryland Veterans Service Animal Program Fund. (2) The Department shall use revenue from the Fund to pay a nonprofit training entity. (3) Revenue from the Fund may be used only to pay: (i) a nonprofit training entity; and (ii) administrative costs of the Program. (4) The Secretary, or the Secretary's designee, shall administer the Fund. (5) (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. (6) The Fund consists of: (i) revenue collected by the Department in the form of donations to the Program; (ii) money appropriated in the State budget to the Fund; and (iii) any other money from any other source accepted for the benefit of the Fund. (7) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (8) Any interest earnings of the Fund shall be credited to the General Fund of the State. (9) Expenditures from the Fund may be made only in accordance with the State budget. (10) Money expended from the Fund is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Program. (g) (1) For the purpose of implementing this section, the Department may accept gifts or grants for donation to the Fund. (2) On or before October 1, 2018, and each October 1 thereafter, the Department shall post and maintain on its website a list containing the names of all persons who have donated to the Fund in the previous year and have authorized the Department to publish their names on its website. (h) The Department shall adopt regulations to implement this section, including regulations establishing procedures for the Department to: (1) promote the Program to eligible veterans and eligible family members through the Department's outreach methods; (2) refer eligible veterans and eligible family members to selected nonprofit entities; (3) receive donations for the Fund through a link placed in a prominent location on the Department's website; and (4) use revenue from the Fund to pay selected nonprofit entities for services that are provided through the Program. ### Subtitle 10. State Archives and Artistic Property #### Section 9-1001 (a) In this Part I of this subtitle the following words have the meanings indicated. (b) "Archives" means the State Archives. (c) "Commission" means the Hall of Records Commission. #### Section 9-1002 (a) There is a State Archives in the office of the Governor. (b) There is a Hall of Records Commission. #### Section 9-1003 The Commission consists of the following 11 members: (1) the Chief Justice of the Supreme Court of Maryland; (2) a member of the Senate appointed by the President of the Senate; (3) a member of the House of Delegates appointed by the Speaker of the House; (4) the Comptroller; (5) the Treasurer who may appoint, as the Treasurer's designee, a deputy treasurer; (6) the Secretary of General Services; (7) the President of The Johns Hopkins University or a designee; (8) the President of the Maryland Historical Society; (9) the President of the St. John's College or a designee; (10) the Chancellor of the University System of Maryland or a designee; and (11) the President of the Morgan State University or a designee. #### Section 9-1004 (a) The Commission shall meet at least quarterly at the times and places that the Commission determines. (b) A member of the Commission: (1) may not receive compensation; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (c) The Archives shall provide staff services for the Commission. (d) (1) The Commission shall be an advisory body for the Archives. (2) The Commission shall review and comment on: (i) the proposed budget of the Archives; (ii) all proposed publications of the Archives; and (iii) all proposed policies pertaining to the use of the Archives by the public. #### Section 9-1005 (a) (1) After consultation with the Commission, the Governor shall appoint a competent, qualified individual as State Archivist. (2) The State Archivist shall: (i) be knowledgeable in subjects relevant to archival activities; and (ii) possess experience in archival or related fields. (b) The State Archivist is entitled to a salary as provided in the State budget. #### Section 9-1006 (a) (1) The State Archivist may appoint an Assistant State Archivist. (2) The Assistant State Archivist has the powers and duties of the State Archivist: (i) to the extent delegated by the State Archivist; (ii) if the office of the State Archivist is vacant; and (iii) if for any other reason the State Archivist is unable to perform the duties of office. (b) The State Archivist may employ other staff in accordance with the State budget. #### Section 9-1007 (a) In addition to any powers set forth elsewhere, the State Archivist may: (1) adopt regulations to: (i) govern the Archives; (ii) manage the Hall of Records Building and other real and personal property that the Archives acquires; (iii) manage the records under the supervision of the Archives; and (iv) define the categories of records in the report of the Records Management Division under Sec. 10-611 of this article; (2) have a seal; and (3) on request, or at the State Archivist's discretion, review, evaluate, and make recommendations to the General Assembly regarding State designations under Title 7 of the General Provisions Article. (b) At the request of the President of the Senate, the Speaker of the House, the Chair of the Senate Committee on Education, Energy, and the Environment, or the Chair of the House Government, Labor, and Elections Committee, the State Archivist shall review, evaluate, and make recommendations to the General Assembly regarding State designations under Title 7 of the General Provisions Article. (c) (1) The State Archivist may establish reasonable fees for the care and preservation of records and other services provided by the Archives. (2) Fees may be in the form of: (i) a percentage not to exceed 2% of an existing fee charged at the time of the creation of a record in any form or format; or (ii) a flat rate subscription charge for a publication of the Archives. (3) Of the fees collected, 7% shall be deposited in the Archives Endowment Account of the State Archives Fund established under Sec. 9-1013 of this subtitle as an educational and entrepreneurial reserve. (d) The State Archivist shall submit to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly an annual report on the activities of the Archives and the Commission during the preceding fiscal year. #### Section 9-1008 (a) The State Archivist may: (1) determine, in consultation with the Commission, the types of records and other information that the Archives will accept for safekeeping; and (2) acquire, as a gift or with money appropriated or given to the Archives for that purpose: (i) any record or other material that, in consultation with the Commission, the State Archivist considers worthy of preservation; and (ii) other real or personal property. (b) The State Archivist: (1) shall supervise and control the use of the State Hall of Records Building; (2) may equip and furnish the Building in accordance with law; and (3) subject to Title 2, Subtitles 4 and 5, Title 4, Subtitles 7 and 8, Sec.Sec. 8-127, 8-128, and 8-129, Part V of Title 8, Subtitle 1, Title 10, Title 12, Subtitle 2, and Sec.Sec. 13-219 and 13-221 of the State Finance and Procurement Article, shall supervise and control the use of any other real or personal property that the State acquires for use of the Archives. (c) The State Archivist shall provide the Commissioner of Land Patents with space in the State Hall of Records Building. #### Section 9-1009 (a) The Archives may: (1) repair and preserve the records under the supervision of the State Archivist, as provided in the State budget; (2) make a copy of any record in the Archives; and (3) certify the copy. (b) The Archives may publish, electronically or in print, indices to records, descriptions, summaries of record material, or original record material, in whole or in part, that are not otherwise restricted from access under existing law. (c) The Archives shall index or provide other finding aids for: (1) the historical records acquired under Sec. 9-1010 of this subtitle; and (2) the land records in its custody under Sec. 9-1011 of this subtitle. (d) (1) Except as provided in paragraph (2) of this subsection, the Archives may charge a reasonable fee for providing a copy of a record and for certifying the record. (2) If, with the written approval of a judge of a circuit court, the clerk of court asks for a copy of a land record that a court has transferred to the Commission or Archives, the Archives shall provide, without charge, a micrographic copy of the land record. #### Section 9-1010 (a) The Archives: (1) shall collect public and private records and other information that relate to the history of the province and State of Maryland from the earliest times, including church records and newspapers; (2) may edit and publish these records; and (3) shall encourage research into the history of the State. (b) Any records and materials that relate to the history of Maryland and are not needed for the operation of a unit belong to the Archives and shall be under the supervision of the State Archivist. #### Section 9-1011 (a) The Archives is the central depository for and custodian of each deed, title insurance policy, and other record that relates to real property acquired by the State. (b) The Archives may allow a unit of the State government to have custody of an original record that relates to real property acquired by the State, if the unit: (1) needs the record for the daily operation of the unit; (2) demonstrates to the Archives that the unit will preserve the record adequately; and (3) deposits with the Archives a security microform copy of the record. (c) (1) The Archives shall receive, index, and file durable-backed, microfilm aperture card copies or electronic images of plats showing property or rights-of-way acquired or conveyed by the State Roads Commission and the State Highway Administration. (2) (i) The Archives electronically shall post an image of each plat on the Archives website (http://www.plats.net) for the county where the property or right-of-way is located. (ii) The posted image shall conform to a generally accepted archival standard in quality and permanence. (iii) The image shall include or be linked to a certification by the State Archivist that the image is an authentic representation of the plat received by the Archives. (iv) Such certification by the State Archivist shall constitute a recordation of the plat. (v) The Archives may charge a reasonable fee to the State Roads Commission, the State Highway Administration, and the courts to recover the cost of electronically posting and maintaining the images of plats. (vi) The Archives may charge a reasonable fee, not to exceed $3, to the public for the cost of reproducing a copy of a plat under this subsection. #### Section 9-1012 (a) The Archives may allow a unit of local government or its designee to have custody of an original local record if the unit or designee: (1) demonstrates that the unit or designee will preserve the record adequately; and (2) deposits with the Archives or permits the Archives to make a security microform copy of the record. (b) The Archives may not destroy a local record unless the Archives: (1) offers the record to the appropriate local government or its designee; and (2) the government or designee declines to accept the record. #### Section 9-1013 (a) There is a State Archives Fund. (b) The Comptroller shall credit to the State Archives Fund any money that: (1) is appropriated or given to the Archives for publication of the series known as "The Archives of Maryland"; (2) is received from the sale of the series; (3) is received from public grants and private contributions; or (4) is received from fees collected in accordance with Sec. 9-1007(c) of this subtitle. (c) (1) The Commission may utilize the proceeds of public grants, private contributions, and fees collected under Sec. 9-1007(c)(3) of this subtitle to create an Archives Endowment Account within the State Archives Fund, if this use is consistent with the terms of the public grants and private contributions. (2) If an endowment is created, the principal of the endowment may not be expended, except pursuant to a recommendation of the Commission. (d) (1) The Archives shall use money received by the State Archives Fund for "The Archives of Maryland" to prepare, edit, and publish volumes of the series, including reprints of unavailable volumes. (2) The Archives may use other money in the Fund for the general dissemination of archival materials. This includes the preparation and distribution of books and other publications using archival materials. (3) Earnings from the endowment may be used for research on Maryland citizens who achieve national, State, or local prominence, for research on historical and geographical aspects of Maryland, and for an outreach program into the schools. (e) The Treasurer shall invest money from the State Archives Fund, including money in the Archives Endowment Account, for the use of the Fund, and all earnings shall be credited to the Fund. (f) Expenditures from the Fund, including earnings from the Archives Endowment Account, shall be made pursuant to an appropriation approved by the General Assembly in the annual State budget or by the budget amendment procedure provided for in Sec. 7-209 of the State Finance and Procurement Article. (g) The Fund is a continuing, nonlapsing fund which is not subject to Sec. 7-302 of the State Finance and Procurement Article. (h) The Fund and the Endowment Account are subject to audit by the Legislative Auditor. #### Section 9-1014 (a) The Archives may establish a consolidated publications account. (b) The Archives may place in the consolidated publications account revenues from publications, the issuance of land patents, and services of the Archives. However, at the end of each fiscal year, the money in the account in excess of $50,000 shall revert to the General Fund of the State. (c) The Archives may use the consolidated publications account to produce, distribute, and promote any of the publications of the Archives, except the Maryland Manual. #### Section 9-1015 (a) (1) In this section the following words have the meanings indicated. (2) "Certified or abridged copy" means a copy of a restricted vital record that contains only the personal information that appears on the certificate of birth and does not include any confidential medical information appearing on the certificate. (3) "Department" means the Maryland Department of Health. (4) "Extract" means the following information from a restricted vital record: (i) full names; (ii) birthplaces of parents; and (iii) date and place of birth or death. (5) "File" means to present for registration at the Department any certificate of birth, death, adoption, marriage, divorce, or annulment. (6) "Restricted vital record" means a certificate of birth that pertains to a birth that occurred fewer than 100 years prior to the request for the record or to a death that occurred fewer than 10 years prior to the request for the record. (7) "Unrestricted vital record" means a record in the custody of the Archives, including one obtained from the Department by the Archives, that pertains to a birth that occurred more than 100 years prior to the request for the record, or to any marriage license, to a report of absolute divorce or annulment of marriage, or to a death that occurred more than 10 years prior to the request for the record. (8) "Vital record" means a record of birth, death, marriage, absolute divorce, or marriage annulment required by law to be filed with the Department. (b) Upon request of the Archives, the Department shall provide the Archives with vital records and indexes of vital records that are in the custody of the Department. (c) Vital records and indexes may be copied by the Archivist in any manner. (d) (1) Upon request, the Archives may only disclose and provide copies of vital records to: (i) an individual who is lawfully entitled under Sec. 4-217(b)(1) of the Health - General Article to obtain a certified or abridged copy of a restricted vital record from the Department or any other original custodian; (ii) an individual who requests an unrestricted vital record; or (iii) an individual who has evidence of the death of the person in the restricted vital record. (2) An individual may examine and obtain a copy of indexes that pertain to vital records that are in the custody of the Archives. (3) An individual may obtain an extract of a restricted vital record. (4) An individual may obtain from the Archives a certified copy of the original of a vital record that may be examined under paragraph (1) of this subsection. (e) The Archives may charge a reasonable fee to cover the expense of copying vital records or indexes to a vital record, to make extracts from restricted vital records or to undertake a search for vital records. (f) (1) An individual may not request a copy of vital records, indexes to vital records, or extracts from restricted vital records for the purpose of commercial solicitation or private gain. (2) The Archives may require an individual to state the individual's intended use of the information obtained under this section. (g) Under this section, the copying and use of vital records for disclosure, the disclosure of vital records, or extracts of restricted vital records or indexes does not violate the rule of confidentiality in a provision of law, including Title 10, Subtitle 6 of this article or Sec. 4-224 of the Health - General Article. (h) The Archives is not liable to an individual for: (1) errors in indexing or extracting information from vital records; or (2) reasonable reliance on evidence that the person in a restricted vital record is deceased. (i) Unless a record has been transferred to the custody of the Archives, the information disclosed under this section does not constitute an official record. #### Section 9-1016 In this Part II of this subtitle, "Commission" means the Commission on Artistic Property. #### Section 9-1017 There is a Commission on Artistic Property in the State Archives. #### Section 9-1018 (a) (1) The Commission consists of 15 members, 7 of whom are institutional members and 8 of whom are public members. (2) The institutional members are the chief executive officers, or their designees, of the following institutions: (i) the Academy of the Arts in Easton; (ii) the Baltimore Museum of Art; (iii) Maryland Historical Society; (iv) the Maryland Institute, College of Art in Baltimore; (v) the Peabody Institute; (vi) Walters Art Gallery; and (vii) Washington County Museum of Fine Arts in Hagerstown. (3) (i) The State Archivist shall appoint the public members with the approval of the Governor. (ii) The State Archivist shall seek to include representatives of the historical museums of the State among the public members. (iii) The public members serve at the pleasure of the State Archivist. (b) From time to time, with the approval of the Governor, the State Archivist shall designate a public member of the Commission to serve as chairman. #### Section 9-1019 (a) A member of the Commission: (1) may not receive compensation; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (b) The Commission may employ a professional staff, in accordance with the State budget. The Commission may also contract for a curator and for the services of the Archivist of the Peabody Institute to act as curator of some or all of the objects in the Peabody Art Collection once that collection becomes the property of the State. #### Section 9-1020 (a) (1) With the approval of the Governor and the State Archivist, the Commission may accept, on behalf of the State: (i) a gift of any painting or other object of decorative art; and (ii) a loan of any painting or other object of decorative art. (2) The Commission shall care for any object of decorative art accepted under this section. (b) With the approval of the Governor, the State Archivist: (1) may accept a gift of money from any public or private source; and (2) shall administer and use the gift of money in accordance with any conditions of the gift. #### Section 9-1021 (a) (1) The Commission is the official custodian of all valuable paintings and other objects of decorative art owned by or loaned to the State, except those located in a State room of the Government House. With respect to the objects subject to its official custody, the Commission shall: (i) keep a continuing inventory of the objects; and (ii) be responsible for and supervise the acquisition, custody, display, location, preservation, proper care, security, and restoration of the objects. (2) At such time as the State acquires the Peabody Art Collection from the Peabody Institute, the Commission shall become the official custodian of the Collection. (3) In exercising its custodial responsibilities, the Commission may loan objects owned by the State to qualified institutions and may contract with such institutions for the performance of curatorial services. (b) (1) Each person or agency that desires to acquire a painting or object of decorative art for display in or on the premises of any State building, except in a room of the Government House, must receive both prior approval and final acceptance from the Commission. (2) Before giving prior approval or final acceptance in accordance with this subsection, the Commission shall consider: (i) the competence of the artist; (ii) the proposed location of the object; and (iii) the quality, historical significance, and appropriateness of the work. (c) This subtitle does not apply to artwork acquired through the Maryland Public Art Initiative Program established under Title 4, Subtitle 6 of the Economic Development Article. #### Section 9-1022 As to all paintings or other objects of decorative art in the State rooms of the Government House, the Commission shall: (1) advise the Government House Trust about acquisition and display of the objects; (2) insure the objects; and (3) be responsible for the preservation of the objects. #### Section 9-1023 In performing its responsibilities in or on the premises of any State building, the Commission shall seek the advice of: (1) the President of the Senate and the Speaker of the House of Delegates for any State building used by the Legislative Branch of the State government; (2) the Governor for any State building used by the Executive Branch of the State government; and (3) the Chief Justice of the Supreme Court of Maryland for any State building used by the Judicial Branch of the State government. #### Section 9-1026 (a) The State Archives shall compile, edit, and publish an online Maryland Manual that: (1) describes: (i) the State and its government, including State, interstate, regional, county, intercounty, and municipal government; and (ii) federal officials and agencies directly related to the State; and (2) contains: (i) a copy of the Maryland Constitution; (ii) the name of each officer of the State, a county, or a municipality who is: (1) elected; (2) appointed by the Governor; or (3) appointed by the Board of Public Works; and (iii) any other information that, in consultation with the Hall of Records Commission, the State Archivist considers necessary. (b) As provided in the State budget, the State Archives shall: (1) update the Maryland Manual as necessary to maintain the accuracy of the information; and (2) annually preserve a version of the Maryland Manual that contains all changes made to the Maryland Manual under item (1) of this subsection in the immediately preceding year. (c) To the extent practicable, the State Archivist shall provide outreach to public schools, public libraries, and the general public to increase awareness regarding the availability and content of the Maryland Manual. ### Subtitle 14. Sustainable Growth Subcabinet #### Section 9-1401 (a) In this subtitle the following words have the meanings indicated. (b) "Subcabinet" means the Sustainable Growth Subcabinet. (c) "Sustainable growth policy" means the State Economic Growth, Resource Protection, and Planning Policy set forth in Sec. 5-7A-01 of the State Finance and Procurement Article. #### Section 9-1402 (a) The General Assembly finds that the State is committed to addressing the high financial, social, and environmental costs of sprawl development through effective sustainable growth policy. (b) The purpose of this subtitle is to establish a centralized office in the State in a manner such that the policy of sustainable growth can be better articulated, coordinated, and implemented in order to better serve the residents of the State. #### Section 9-1403 (a) There is a Sustainable Growth Subcabinet. (b) The Subcabinet consists of: (1) the Secretary of Agriculture; (2) the Secretary of Budget and Management; (3) the Secretary of Commerce; (4) the Secretary of Emergency Management; (5) the Secretary of the Environment; (6) the Secretary of General Services; (7) the Secretary of Higher Education; (8) the Secretary of Housing and Community Development; (9) the Assistant Secretary of the Office of Neighborhood Revitalization; (10) the Secretary of Natural Resources; (11) the Secretary of Planning; (12) the Secretary of Transportation; (13) a representative of the Governor's office; (14) the Secretary of Health; (15) the Secretary of Labor; and (16) the Director of the Maryland Energy Administration. (c) The Executive Director of the National Center for Smart Growth Education and Research at the University of Maryland, College Park Campus shall serve as an ex officio member of the Subcabinet. (d) (1) The Secretary of Planning shall chair the Subcabinet and shall be responsible for the oversight, direction, and accountability of the work of the Subcabinet. (2) The Secretary of Housing and Community Development shall be the vice chair of the Subcabinet. (e) (1) The Department of Planning shall provide the primary staff support for the Subcabinet and serve as its primary office. (2) The Secretary of Planning may call upon any of the Subcabinet members to provide additional staff assistance as needed. (f) The Secretary of Planning may establish subcommittees to carry out the work of the Subcabinet. (g) The Subcabinet shall meet regularly at such times and places as it determines. (h) (1) The Subcabinet shall: (i) provide a forum for discussion of interdepartmental issues relating to activities that affect growth, development, neighborhood vitality, and resource management; (ii) work together using all available resources to promote the understanding of sustainable growth; (iii) work together to create, enhance, support, and revitalize equitable and sustainable communities across the State; (iv) meet at least biannually with county and municipal elected leaders and planning officials to discuss local government issues relating to activities that affect equitable and resilient growth, development, neighborhood vitality, and resource management; (v) subject to paragraph (2) of this subsection, make recommendations to: (1) the Department of Commerce in accordance with Sec. 5-1304 of the Economic Development Article; (2) the Department of Housing and Community Development in accordance with Sec. 6-206 of the Housing and Community Development Article; (3) the Department of Planning in accordance with Sec. 5A-303 of the State Finance and Procurement Article; and (4) the Department of Transportation in accordance with Sec. 7-101 of the Transportation Article; (vi) in coordination with State agencies, evaluate and report annually to the Governor and, in accordance with Sec. 2-1257 of this article, to the General Assembly on the implementation of the State's sustainable growth policy; and (vii) perform other duties assigned by the Governor. (2) The failure of the Subcabinet to make a recommendation under paragraph (1)(v) of this subsection may not be construed as prohibiting a department to act in accordance with the department's authority under State law. (i) The annual report required in subsection (h)(1) of this section shall include: (1) a description of the projects, programs, and costs of activities located in priority funding areas; (2) a description of projects, programs, and costs of activities funded under the exceptions allowed in Sec. 5-7B-06 of the State Finance and Procurement Article; (3) projects submitted to the Board of Public Works for funding outside priority funding areas under the extraordinary circumstances exception in accordance with Sec. 5-7B-05 of the State Finance and Procurement Article and the impact of these projects upon the State's sustainable growth policy; (4) a list of programs and policies reviewed and changed to ensure compliance with the State's sustainable growth policy; and (5) a list of projects or programs approved and funded under Chapter 759, Sec. 2 of the Acts of 1997. #### Section 9-1405 (a) In addition to any other powers and duties imposed by law, the Subcabinet has the powers and duties set forth in this section. (b) The Subcabinet shall: (1) review State assistance programs related to sustainable growth to determine their applicability, if any, to projects that are consistent with the State's sustainable growth policy; (2) promote interagency consensus and cooperation on projects that are consistent with the State's sustainable growth policy and resolve conflicting agency positions on projects in an expedited manner; (3) provide advisory and technical assistance to local jurisdictions and to the public in preparing, financing, and developing sustainable growth and neighborhood vitality projects; (4) gather and disseminate information to the public, including local jurisdictions, nonprofit organizations, and developers on how to develop projects that are consistent with the State's sustainable growth policy; (5) provide a single point of access for members of the public, including local jurisdictions, nonprofit organizations, developers, and community and homeowners' associations who need assistance or guidance in navigating the processes and regulations of State agencies on projects that are consistent with the State's sustainable growth policy; (6) work with local governments in expediting review of projects that both the local government and the State agree are consistent with the State's sustainable growth policy; (7) provide effective public information on sustainable growth programs and educational activities, including relationships with the National Center for Smart Growth Education and Research at the University of Maryland, College Park Campus, and coordination of sustainable growth outreach efforts to local governments, the general public, and other interest groups; (8) coordinate the efforts of the Executive Branch to provide input to the General Assembly on legislation that concerns sustainable growth and neighborhood vitality; and (9) recommend to the Governor changes to State law and regulations necessary to advance the policy of sustainable growth. ### Subtitle 16. Office of Administrative Hearings #### Section 9-1601 (a) This subtitle does not apply to: (1) the Governor; (2) any unit of the Judicial Branch; (3) any unit of the Legislative Branch; (4) the Comptroller of the Treasury; (5) the incarcerated individual adjustment hearing officers; (6) the Public Service Commission; (7) the State Workers' Compensation Commission; (8) the Parole Commission; (9) the Health Services Cost Review Commission; (10) the Maryland Health Care Commission; and (11) unemployment insurance benefit determinations and employer obligation determinations in the Maryland Department of Labor, and appeals from those determinations. (b) Except as provided in subsection (a) of this section, this subtitle shall apply to each agency that employs or engages one or more hearing officers to adjudicate contested cases unless the agency has been exempted by the Governor under subsection (c) of this section. (c) Until July 1, 1994, the Governor may temporarily exempt an agency from this subtitle. #### Section 9-1602 The Office of Administrative Hearings is created as an independent unit in the Executive Branch of State government. #### Section 9-1603 (a) The Office is headed by a Chief Administrative Law Judge appointed by the Governor with the advice and consent of the Senate. (b) The Chief Administrative Law Judge shall: (1) be appointed for a term of 6 years; (2) devote full time to the duties of the Office; and (3) be eligible for reappointment. (c) The Chief Administrative Law Judge shall: (1) receive the salary provided in the State budget; (2) be admitted to practice law in the State; and (3) have the powers and duties specified in this subtitle. (d) The Chief Administrative Law Judge may employ a staff in accordance with the State budget. #### Section 9-1604 (a) The Chief Administrative Law Judge shall: (1) supervise the Office of Administrative Hearings; (2) establish qualifications for administrative law judges; (3) appoint and remove administrative law judges in accordance with Sec. 9-1605 of this subtitle; (4) assign administrative law judges to conduct hearings in contested cases or cases to determine eligibility for compensation and benefits under Sec. 10-501 of the State Finance and Procurement Article; (5) if necessary, establish classifications for case assignment on the basis of subject matter, expertise, and case complexity; (6) establish and implement standard and specialized training programs and provide materials for administrative law judges; (7) provide and coordinate continuing education programs and services for administrative law judges, including research, technical assistance, technical and professional publications, compiling and disseminating information, and advise of changes in the law relative to their duties; (8) develop model rules of procedure and other guidelines for administrative hearings; (9) develop a code of professional responsibility for administrative law judges; and (10) monitor the quality of State administrative hearings. (b) (1) The Chief Administrative Law Judge may: (i) serve as an administrative law judge in a contested case or a case to determine eligibility for compensation and benefits under Sec. 10-501 of the State Finance and Procurement Article; (ii) furnish administrative law judges on a contractual basis to other governmental entities; (iii) accept and expend funds, grants, and gifts and accept services from any public or private source; (iv) enter into agreements and contracts with any public or private agencies or educational institutions; (v) adopt regulations to implement this subtitle; and (vi) assess fees to cover administrative expenses as follows: (1) to file an appeal, a fee not exceeding: (A) $150 for an appeal of a driver's license suspension or revocation related to a violation of the Maryland Vehicle Law; and (B) $50 for all other types of appeals; and (2) to process a subpoena, a fee not exceeding $5. (2) Fees charged under paragraph (1) of this subsection for administrative expenses may not be charged to: (i) State agencies; or (ii) petitioners who are determined by the Office of Administrative Hearings to be unable to pay the fees. (3) A fee charged under paragraph (1) of this subsection for filing an appeal shall be refunded to a party who initiates the appeal if the party receives a favorable decision from the administrative law judge. (c) (1) The Chief Administrative Law Judge shall submit an annual report on the activities of the Office to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly. (2) This report may be prepared in conjunction with the annual report required under Sec. 9-1610 of this subtitle. (d) The Chief Administrative Law Judge shall meet and confer regularly with the Advisory Council on Administrative Hearings. #### Section 9-1605 (a) An administrative law judge: (1) shall be a special appointment in the State Personnel Management System; (2) may be removed, suspended, or demoted by the Chief Administrative Law Judge for cause, after notice and an opportunity to be heard; (3) shall receive the compensation provided in the State budget; and (4) may not perform duties inconsistent with the duties and responsibilities of an administrative law judge. (b) An administrative law judge may not be responsible to or subject to the supervision or direction of an officer, employee, or agent engaged in the performance of investigative, prosecuting, or advisory functions for an agency. (c) In any contested case conducted by an administrative law judge, the administrative law judge may: (1) authorize the issuance of subpoenas for witnesses; (2) administer oaths; (3) examine an individual under oath; and (4) compel the production of documents or other tangible things. (d) (1) Without good cause, a person may not refuse an order by any administrative law judge to: (i) appear for a hearing; (ii) testify under oath; or (iii) produce any relevant evidence, including documents or other tangible things. (2) (i) An administrative law judge may apply, upon affidavit, to any judge of a circuit court for an order, returnable in not less than 2 nor more than 5 days, to show cause why a person should not be committed to jail for refusal to comply with an order issued under paragraph (1) of this subsection. (ii) On the return of an order issued under subparagraph (i) of this paragraph, if the judge hearing the matter determines that the person is guilty of refusal to comply with the order of the administrative law judge, the judge may commit the offender to jail as in cases of civil contempt. #### Section 9-1606 (a) All units of State government shall cooperate with the Chief Administrative Law Judge in the discharge of his duties. (b) The Office shall be subject to audit and examination by the Office of Legislative Audits of the Department of Legislative Services under Sec. 2-1220 of this article. (c) Except as provided in this subtitle or in regulations adopted under this subtitle, an agency may not select or reject a particular administrative law judge for a particular proceeding. #### Section 9-1607 If the Office is unable to assign an administrative law judge in response to an agency request, the Chief Administrative Law Judge shall designate in writing an individual to serve as an administrative law judge in a proceeding before the agency if: (1) the individual meets the qualifications for an administrative law judge established by the Office under Sec. 9-1604(a)(2) of this subtitle; and (2) the agency that employs the individual consents to the assignment. #### Section 9-1607.1 (a) An individual who is not licensed to practice law in this State may represent a party in a proceeding before the Office if: (1) authorized by law; (2) the individual is representing: (i) a recipient of or applicant for benefits that are: (1) based on the recipient's or applicant's income and resources; and (2) provided by the Department of Human Services or the Maryland Department of Health; (ii) a resident of a facility at a proceeding conducted under Sec. 19-344(q)(4) or Sec. 19-345.1 of the Health - General Article; (iii) a health care facility, as defined in Sec. 10-101 of the Health - General Article, at a proceeding under the provisions of Sec. 10-632 or Sec. 10-708 of the Health - General Article or Sec. 3-121 of the Criminal Procedure Article; or (iv) a grievant at a proceeding conducted pursuant to Title 10, Subtitle 2 of the Correctional Services Article concerning a grievance submitted to the Inmate Grievance Office, provided the representation is not otherwise restricted for reasons of security or expense pursuant to regulations, rules, directives, or policies adopted by the Division of Correction or Patuxent Institution; (3) the individual is a designee of a corporation while appearing on its behalf in an administrative proceeding held under Sec. 27-613 of the Insurance Article; (4) the individual is an officer of a corporation, an employee designated by an officer of a corporation, a general partner in a business operated as a partnership or an employee designated by a general partner, or an employee designated by the owner of a business operated as a sole proprietorship while the officer, partner, or employee is appearing on behalf of the corporation, partnership, or business in an administrative hearing held under: (i) Sec. 8-312 of the Business Regulation Article (Home Improvement Commission); (ii) Title 5 of the Labor and Employment Article (Occupational Safety and Health); or (iii) regulations adopted pursuant to Sec. 14-303 of the State Finance and Procurement Article, concerning the decertification of a minority business enterprise to conduct business with the Department of Transportation; (5) in the case of an insurer, the individual is a designee of the insurer who: (i) is employed by the insurer in claims, underwriting, or as otherwise provided by the Commissioner; and (ii) has been given the authority by the insurer to resolve all issues involved in the proceeding; or (6) the individual is representing a unit of State government, at the direction of the unit of State government. (b) (1) An employee designated by a business entity under subsection (a)(3) or (4) of this section: (i) shall provide the Office a power of attorney sworn to by the employer that certifies that the designated employee is an authorized agent of the business entity and may bind the business entity on matters pending before the Office; and (ii) may not be a disbarred or suspended lawyer in any state. (2) A business entity may not contract, hire, or employ another business entity, other than an attorney, to provide appearance services under subsection (a)(3) or (4) of this section. (3) An employee designated by a business entity under subsection (a)(4) of this section may not be assigned on a full-time basis to appear in administrative hearings before the Office on behalf of the business entity. (c) This section may not be interpreted to limit the right of an individual to appear on the individual's own behalf. #### Section 9-1607.2 (a) Subject to subsection (b) of this section, regulations adopted in accordance with Sec. 10-206(a)(1) of this article shall apply to a proceeding before the Office, regardless of whether the proceeding is subject to Title 10, Subtitle 2 of this article (Administrative Procedure Act - Contested Cases). (b) Unless a federal or State law or regulation requires that a federal or State procedure shall be observed, the regulations specified in subsection (a) of this section shall take precedence in the event of a conflict. #### Section 9-1608 (a) There is a State Advisory Council on Administrative Hearings. (b) The Council consists of 10 members. (c) Of the 10 Council members: (1) 1 shall be a member of the Senate of Maryland, appointed by the President of the Senate; (2) 1 shall be a member of the House of Delegates, appointed by the Speaker of the House; (3) 1 shall be the Attorney General or the Attorney General's designee; (4) 1 shall be a nongovernmental attorney who practices before the Office of Administrative Hearings; (5) 2 shall be secretaries or designees from departments involved in the adjudication of contested cases; (6) 2 shall represent the Maryland State Bar Association; and (7) 2 shall be from the general public. (d) The Governor shall appoint the members specified in subsection (c)(4) through (7) of this section. (e) Of the members appointed under subsection (c) of this section, not more than 5 shall be attorneys who practice before the Office of Administrative Hearings. #### Section 9-1609 (a) (1) The term of a member of the Council is 4 years. (2) The terms of the members are staggered as required by the terms provided for members of the Council on January 1, 1990. (3) A member is eligible to serve more than 1 term. (b) A member of the Council may not receive compensation, but is entitled to reimbursement for expenses under the Standard State Travel Regulations. (c) The Council shall designate a chairman from among its members. #### Section 9-1610 (a) The Council shall: (1) advise the Chief Administrative Law Judge in carrying out his duties; (2) identify issues of importance to administrative law judges that should be addressed by the Chief Administrative Law Judge; (3) review issues and problems relating to administrative hearings and the administrative process; (4) review and comment upon policies and regulations proposed by the Chief Administrative Law Judge; (5) advise the Governor as to those agencies for which a continuing exemption under Sec. 9-1601 of this subtitle should be maintained as consistent with the purposes of this subtitle; and (6) submit an annual report, which may be prepared in conjunction with the report required under Sec. 9-1604 of this subtitle and is subject to Sec. 2-1257 of this article, to the Legislative Policy Committee of the General Assembly, including a list of the agencies that are exempted from this subtitle under Sec. 9-1601(c) of this subtitle and the reasons for the exemptions. (b) The Council shall meet at a regular time and place to be determined by the Council. ### Subtitle 19. Assisted Living Programs Board #### Section 9-1901 (a) There is an Assisted Living Programs Board established to: (1) develop statewide policy on assisted living programs; (2) coordinate agency responsibility for implementation of policies and programs related to assisted living; (3) review and approve policies and regulations governing assisted living programs; and (4) establish appropriate interagency agreements relative to assisted living programs. (b) The Board consists of 15 voting members as follows: (1) the Secretary of Health; (2) the Secretary of Human Services; (3) the Secretary of Aging; and (4) the following voting members appointed by the Governor with the advice and consent of the Senate: (i) one representative of the Disability Law Center; (ii) one representative of a small program that was certified as a sheltered housing project by the Department of Aging as of December 31, 1995, or could have been certified as a sheltered housing project by the Department of Aging if it had been in existence on December 31, 1995; (iii) one representative of a small program that was certified as a care program by the Department of Human Services as of December 31, 1995, or could have been certified as a care program by the Department of Human Services if it had been in existence on December 31, 1995; (iv) one representative of a small program that was licensed or registered as a domiciliary care program by the Maryland Department of Health as of December 31, 1995, or could have been licensed or registered as a domiciliary care program by the Maryland Department of Health if it had been in existence on December 31, 1995; (v) four consumer members; (vi) one representative of the Assisted Living Facilities Association of America; (vii) one representative of the Maryland Association of Nonprofit Homes for the Aging; (viii) one representative of the Health Facilities Association of Maryland; and (ix) one representative of the Long-Term Care Association. (c) (1) The Governor shall appoint a chairperson of the Board from among the three State agency representatives to the Board. (2) (i) The Governor shall appoint the provider and consumer members from the recommendations of organizations representing assisted living program providers and consumers. (ii) The Governor is not restricted to these recommendations in appointing members. (3) The provider and consumer members shall represent a broad geographic cross section of the State. (d) The term of a member who is not a cabinet member or who does not represent the Maryland Disability Law Center or the Department of Aging is 4 years. (e) Each member of the Board shall serve without compensation but shall be entitled to reimbursement for expenses under the Standard State Travel Regulations. (f) The Board may establish its own procedures and voting requirements. (g) The Departments of Health, Human Services, and Aging shall provide the Board with the necessary staff and support services. ### Subtitle 20. Maryland Energy Administration #### Section 9-2001 (a) In this subtitle the following words have the meanings indicated. (b) "Administration" means the Maryland Energy Administration. (c) "Director" means the Director of the Maryland Energy Administration. #### Section 9-2002 (a) The Administration is established as a separate unit of State government. (b) With the approval of the Governor, the Administration shall implement and administer conservation, allocation, or other energy programs or measures under State law or federal laws, orders, or regulations. (c) The Governor shall appoint a Director of the Administration. (d) The Administration shall have the staff provided for in the State budget. #### Section 9-2003 The Administration shall: (1) provide advisory, consultative, training, and educational services, technical assistance, grant and loan funds therefor, and financial assistance to any municipality, county, State unit, local public agency, nonprofit organization, or private entity, in order to establish or carry out sound energy policies or practices, including energy management and energy conservation; (2) assume those responsibilities delegated to the State energy offices in accordance with the orders, rules, and regulations adopted under any federal laws relating to the allocation, conservation, development, or consumption of energy resources or any other delegation of federal authority pertaining to energy; (3) evaluate and coordinate energy related policies and activities among all agencies of the Executive Branch of the State and, where appropriate, those of the various local governments; (4) collect, analyze, and evaluate statistics and information related to energy use, conservation, consumption, and energy production and coordinate information related to energy resources, including electricity, natural gas, and the production of oil and natural gas, with the Public Service Commission, the Power Plant Research Program, and the Maryland Geological Survey; (5) serve as liaison between federal and State agencies for all matters related to energy and maintain liaison with energy agencies in other states; (6) develop and conduct education and communications programs for and disseminate informative materials to the public on energy production, supply, and conservation; (7) provide for, encourage, and assist, where practicable, public participation in the development and dissemination of energy programs; (8) in cooperation with the Department of General Services, monitor the energy savings accrued by the energy management and conservation efforts undertaken by agencies of State government; (9) coordinate and direct integrated energy planning for State agencies and the public that recognizes the benefits and costs of energy conservation and improved efficiency; (10) promote the transfer and commercialization of energy conservation methods and energy technology from private and public laboratories to the citizens of the State; (11) cooperate and coordinate with other State agencies in the research and development of energy conservation methods and alternative energy technologies; and (12) develop strategic plans and implement policies relating to energy supply management, including the promotion and supervision of research on alternative fuels and energy emergency management. #### Section 9-2004 The Administration shall assist the Department of General Services in considering the most economical and efficient alternative for meeting the annual heating oil requirements of State agencies. #### Section 9-2005 The Administration shall have the following additional duties and responsibilities concerning the State's preparedness for, and management of, general energy emergencies and shortfalls: (1) to prepare contingency plans for mitigating the impact of any severe shortage of fuel resources, including middle distillate oil, motor gasoline, residual fuel oil, and propane gas, on various classes of consumers; (2) to work with the United States Department of Energy in preparing and training for an energy emergency response; (3) to maintain communications, including computerized electronic communication, with the United States Department of Energy and with neighboring states to obtain and share energy data pertaining to energy emergencies; and (4) to collect, analyze, evaluate, and maintain on a proprietary basis so as to preserve the confidentiality of its source, data related to managing any energy emergency or shortfall. #### Section 9-2006 (a) (1) In this section the following words have the meanings indicated. (2) (i) "Air purifier", also known as a "room air cleaner", means an electric, cord-connected, portable appliance that primarily functions to remove particulate matter from the air. (ii) "Air purifier" does not include indoor air cleaning devices that are manufactured, advertised, marketed, and labeled for industrial use. (3) "Commercial dishwasher" means a machine designed to clean and sanitize dinnerware, flatware, cooking utensils, and similar items by applying sprays of detergent solution and a sanitizing rinse. (4) (i) "Commercial steam cooker", also known as a "compartment steamer", means a device with one or more food-steaming compartments in which the energy in the steam is transferred to the food by direct contact. (ii) "Commercial steam cooker" includes: (1) countertop models; (2) wall-mounted models; and (3) floor models mounted on a stand, pedestal, or cabinet-style base. (5) "Electric vehicle supply equipment" means the fittings, devices, and apparatuses installed specifically for the purpose of delivering energy from a premises' wiring to an all-electric or hybrid vehicle. (6) (i) "Faucet" means a fitting that controls and guides the flow of water in a water supply system. (ii) "Faucet" includes: (1) a private lavatory faucet; (2) a public lavatory faucet; (3) a residential kitchen faucet; and (4) a replacement aerator for a private lavatory faucet, public lavatory faucet, or residential kitchen faucet. (iii) "Faucet" does not include a metering faucet. (7) (i) "High color rendering index fluorescent lamp" or "high CRI fluorescent lamp" means a fluorescent lamp with a color rendering index of 87 or greater. (ii) "High color rendering index fluorescent lamp" does not include a compact fluorescent lamp. (8) "Portable electric spa" means a factory-built electric spa or hot tub that includes water-heating or water-circulating equipment. (9) "Public lavatory faucet" means a faucet designed to be installed in a public bathroom. (10) "Replacement aerator" means an aerator sold: (i) as a replacement; and (ii) separately from the faucet to which the aerator was intended to be attached. (11) "Residential ventilating fan" means a ceiling fan, wall-mounted fan, or a fan mounted outside the area to be ventilated (also known as a remotely mounted fan) that is designed to move air from inside a building to the outdoors, such as fans used in a bathroom or utility room. (12) "Retailer" means a person engaged in the business of making retail sales within the State. (13) (i) "Showerhead" means a device or set of devices that is: (1) attached to a single water supply fitting; and (2) used for spraying water for bathing. (ii) "Showerhead" includes a showerhead that can be held or fixed in place and connected by a flexible hose (also known as a hand-held showerhead). (iii) "Showerhead" does not include safety equipment such as eyewash stations or drench showers. (14) "Spray sprinkler body" means the exterior case or shell of a sprinkler that: (i) includes a method for connecting to the water system piping; and (ii) houses a spray nozzle that applies water to the ground. (15) (i) "Urinal" means a plumbing fixture that: (1) is designed to receive only liquid body waste; and (2) conveys the waste through a trap into a drainage system. (ii) "Urinal" does not include: (1) urinals designed and marketed exclusively for use at prisons or mental health facilities; and (2) trough-type urinals. (16) (i) "Water closet" means a plumbing fixture having a water-containing receptacle designed to receive liquid and solid body waste and convey the waste through an integral trap into a drainage system. (ii) "Water closet" includes a water closet incorporating a feature that allows the user to flush the water closet with either a reduced load or a full volume of water, also known as a dual-flush water closet. (17) (i) "Water cooler" means a freestanding device that uses energy to cool or heat potable water. (ii) "Water cooler" includes: (1) cold only units that dispense only cold water; (2) hot and cold units that dispense both hot and cold water; (3) cook and cold units that dispense both cold and room temperature water; and (4) storage-type units that store thermally conditioned water in a tank inside the water cooler that is available instantaneously, including point-of-use, dry storage compartment, and bottled water coolers. (18) "Widely available in Maryland" means a conforming product available in the State from three or more manufacturers. (b) (1) This section applies to the testing, certification, and enforcement of efficiency standards for the following types of new products sold, offered for sale, or installed for profit in the State: (i) electric vehicle supply equipment; (ii) high CRI fluorescent lamps; (iii) portable electric spas; (iv) air purifiers; (v) commercial dishwashers; (vi) commercial steam cookers; (vii) faucets; (viii) residential ventilating fans; (ix) showerheads; (x) spray sprinkler bodies; (xi) urinals; (xii) water closets; and (xiii) water coolers. (2) This section does not apply to: (i) new products manufactured in the State and sold outside the State; (ii) new products manufactured outside the State and sold at wholesale inside the State for final retail sale and installation outside the State; (iii) products installed in mobile manufactured homes at the time of construction; (iv) products designed expressly for installation and use in recreational vehicles or marine vessels; or (v) products to be sold at retail that are in stock at the retail establishment before the effective date of any efficiency standard regulation for that item. (c) (1) On or before January 1, 2023, the Administration: (i) shall review minimum efficiency standards regulations for the new products specified in subsection (b)(1)(i) and (ii) of this section; and (ii) may adopt new regulations establishing minimum efficiency standards for the new products specified in subsection (b)(1)(i) and (ii) of this section. (2) Beginning October 1, 2024, a new product specified in subsection (b)(1)(i) or (ii) of this section may not be sold or offered for sale in the State unless the efficiency of the new product meets or exceeds the efficiency standards specified in regulations adopted, if any, under paragraph (1) of this subsection. (3) (i) This paragraph does not apply to a product that is sold before the regulations adopted, if any, under paragraph (1) of this subsection are in effect. (ii) Beginning October 1, 2025, a new product specified in subsection (b)(1)(i) or (ii) of this section may not be installed for profit in the State unless the efficiency of the new product meets or exceeds the efficiency standards specified in regulations adopted, if any, under paragraph (1) of this subsection. (d) (1) (i) On or before January 1, 2023, the Administration shall adopt regulations establishing minimum efficiency standards for the new products specified in subsection (b)(1)(iii) through (xiii) of this section. (ii) The regulations shall provide for the following minimum efficiency standards: (1) air purifiers shall meet the following requirements as measured in accordance with the Energy Star Program Requirements Product Specification for Room Air Cleaners, Version 2.0: (A) the clean air delivery rate for smoke must be 30 or greater; (B) for models with a clean air delivery rate for smoke of less than 100, the clean air delivery rate per watt for smoke must be greater than or equal to 1.7; (C) for models with a clean air delivery rate for smoke greater than or equal to 100 and less than 150, the clean air delivery rate per watt for smoke must be greater than or equal to 1.9; (D) for models with a clean air delivery rate for smoke greater than or equal to 150, the clean air delivery rate per watt for smoke must be greater than or equal to 2.0; (E) for ozone-emitting models, measured ozone must be less than or equal to 50 parts per billion; (F) for models with a Wi-Fi network connection enabled by default when shipped, partial on-mode power may not exceed 2 watts; and (G) for models without a Wi-Fi network connection enabled by default when shipped, partial on-mode power may not exceed 1 watt; (2) commercial dishwashers must meet the applicable qualification criteria specified in the Energy Star Program Requirements Product Specification for Commercial Dishwashers, Version 2.0; (3) commercial steam cookers must meet the requirements specified in the Energy Star Program Requirements Product Specification for Commercial Steam Cookers, Version 1.2; (4) faucets must meet the following standards when tested in accordance with 10 C.F.R. Sec. 430, Subpart B, Appendix S, compliance with which must be verified by using the Uniform Test Method for Measuring the Water Consumption of Faucets and Showerheads in effect on January 1, 2020: (A) lavatory faucets and replacement aerators must not exceed a maximum flow rate of 1.5 gallons per minute at 60 pounds per square inch; (B) residential kitchen faucets and replacement aerators must not exceed a maximum flow rate of 1.8 gallons per minute at 60 pounds per square inch, with optional temporary flow of 2.2 gallons per minute provided the faucet defaults to a maximum flow rate of 1.8 gallons per minute at 60 pounds per square inch after each use; and (C) public lavatory faucets and replacement aerators must not exceed a maximum flow rate of 0.5 gallons per minute at 60 pounds per square inch; (5) portable electric spas must meet the requirements of the American National Standard for Portable Electric Spa Energy Efficiency specifically known as ANSI/APSC/ICC 14-2019; (6) residential ventilating fans must meet the following requirements when tested in accordance with the Home Ventilation Institute's HVI Airflow Test Procedure (HVI Publication 916): (A) in-line residential ventilating fans must be equipped with a fan motor with an efficiency of at least 2.8 cubic feet per minute per watt; and (B) non-in-line residential ventilating fans must be equipped with a fan motor with an efficiency of at least 1.4 cubic feet per minute per watt for airflows less than 90 cubic feet per minute and at least 2.8 cubic feet per minute per watt for airflows greater than or equal to 90 cubic feet per minute; (7) showerheads must not exceed a maximum flow rate of 2.0 gallons per minute at 80 pounds per square inch when tested in accordance with 10 C.F.R. Sec. 430, Subpart B, Appendix S, compliance with which must be verified by using the Uniform Test Method for Measuring the Water Consumption of Faucets and Showerheads in effect on January 1, 2020; (8) spray sprinkler bodies that are not specifically excluded from the scope of the WaterSense Specification for Spray Sprinkler Bodies, Version 1.0 must include an integral pressure regulator and meet the water efficiency, performance criteria, and other requirements specified in the WaterSense Specification for Spray Sprinkler Bodies, Version 1.0; (9) urinals must have a maximum flush volume of 0.5 gallons per flush when tested in accordance with 10 C.F.R. Sec. 430, Subpart B, Appendix T, compliance with which must be verified by using the Uniform Test Method for Measuring the Water Consumption of Water Closets and Urinals in effect on January 1, 2020; (10) water closets must meet the following standards when tested in accordance with 10 C.F.R. Sec. 430, Subpart B, Appendix T, compliance with which must be verified by using the Uniform Test Method for Measuring the Water Consumption of Water Closets and Urinals in effect on January 1, 2020: (A) subject to item B of this item, water closets must have a maximum flush volume of 1.28 gallons per flush; and (B) dual-flush tank-type water closets must have a maximum dual-flush effective volume of 1.28 gallons per flush; and (11) water coolers included in the scope of the Energy Star Program's Water Coolers Specification, Version 2.0 must have an on mode with no water draw energy consumption that is less than or equal to the following values as measured in accordance with the on mode with no water draw test mode specified in the Water Coolers Specification: (A) (0) 16 kilowatt-hours per day for cold only units and cook and cold units; (B) (0) 87 kilowatt-hours per day for storage type hot and cold units; and (C) (0) 18 kilowatt-hours per day for on-demand hot and cold units. (2) Beginning January 1, 2024, a new product specified in subsection (b)(1)(iii) through (xiii) of this section may not be sold or offered for sale in the State unless the efficiency of the new product meets or exceeds the efficiency standards specified in the regulations adopted under paragraph (1) of this subsection. (3) (i) This paragraph does not apply to a product that is sold before the regulations adopted under paragraph (1) of this subsection are in effect. (ii) Beginning January 1, 2025, a new product specified in subsection (b)(1)(iii) through (xiii) of this section may not be installed for profit in the State unless the efficiency of the new product meets or exceeds the efficiency standards specified in the regulations adopted under paragraph (1) of this subsection. (e) (1) By regulation, the Administration may clarify but not expand the scope of the devices defined under subsections (a) and (b) of this section. (2) On request of a Maryland business or consumer and after public notice and comment, the Administration may delay the effective date of any standard under this section by not more than 1 year if the Administration determines that products conforming to the standard will not be widely available in Maryland by the applicable date stated in subsections (c)(2) and (3)(ii) and (d)(2) and (3)(ii) of this section. (3) The Administration may limit a delay under paragraph (2) of this subsection to identifiable subcategories of any category of covered products. (f) (1) The Administration may adopt regulations to increase the efficiency standards for the products listed in subsection (b)(1) of this section. (2) Every 2 years, the Administration shall consider and propose to the General Assembly: (i) new standards for products not specifically listed in subsection (b)(1) of this section; and (ii) revised, more stringent standards for products listed in subsection (b)(1) of this section. (3) In considering new or amended standards, the Administration shall propose new or amended efficiency standards if it determines that any new or increased efficiency standards would: (i) serve to promote energy conservation in the State; (ii) be life-cycle cost effective for consumers who purchase and use the new products; and (iii) be technologically feasible and economically justified. (4) A new or increased efficiency standard may not become effective less than 1 year after the adoption of that standard. (5) Subject to paragraphs (6) and (7) of this subsection, the Administration may apply for a waiver of federal preemption in accordance with federal procedures (42 U.S.C. Sec. 6297(d)) for State efficiency standards for any product regulated by the federal government. (6) The Administration may apply for a waiver under paragraph (5) of this subsection, if: (i) at least 90 days before the day on which the application for the waiver is submitted to the federal government, the Administration announces its intention to submit the application by publication in the Maryland Register and writing to the presiding officers of the General Assembly; and (ii) at least 60 days before the day on which the application for the waiver is submitted to the federal government, the Administration, after reasonable notice other than publication in the Maryland Register, shall hold a public hearing on the proposed application to receive public comment. (7) The President of the Senate and the Speaker of the House of Delegates may direct that the appropriate standing committees of the General Assembly hold hearings on the proposed application for the waiver and provide comments to the Administration. (g) (1) After public notice and comment, the Administration shall adopt procedures by rule for testing the energy efficiency of the new products listed in subsection (b)(1) of this section if testing procedures are not provided for in the Maryland Building Performance Standards. (2) The Administration may adopt updated test methods by regulation when new versions of test methods become available or when an alternative test method has been adopted by another state or the federal government. (3) The Administration shall use appropriate nationally recognized test methods such as those approved by the United States Department of Energy. (4) The manufacturers of new products listed in subsection (b)(1) of this section shall cause samples of their products to be tested in accordance with the test procedures adopted under this subsection or those specified in the Maryland Building Performance Standards. (h) (1) Manufacturers of new products listed in subsection (b)(1) of this section shall certify to the Administration that the products are in compliance with the provisions of this section. (2) (i) The Administration shall adopt regulations governing the certification of new products and may coordinate with the certification programs of other states with similar standards or national voluntary certification programs. (ii) Any manufacturer that has certified a product to another state, the federal Energy Star Program, or the federal WaterSense Program may provide the Administration with a copy of the certification that the manufacturer made to the other state or agency in place of a separate certification to the State of Maryland, provided that: (1) the other state's standards or the Energy Star or WaterSense specifications are equivalent to or more stringent than the standards of the State of Maryland; and (2) all information required by the regulations adopted under subparagraph (i) of this paragraph is included in the certification. (i) (1) The Administration shall adopt regulations governing the identification of such products or packaging which shall be coordinated to the greatest practical extent with the labeling programs and requirements of other states and federal agencies with equivalent efficiency standards. (2) If a national efficiency standard is established by federal law or regulation for a product listed in subsection (b) of this section, the labeling requirements set forth in COMAR 14.26.03.11 do not apply to that product. (3) In accordance with COMAR 14.26.03.11, all display models of products shall be displayed with a mark, label, or tag on the product. (j) (1) The Administration may test products listed in subsection (b)(1) of this section using an accredited testing facility. (2) If products tested are found not to be in compliance with the minimum efficiency standards established under subsections (c) and (d) of this section, the Administration shall: (i) charge the manufacturer of the product for the cost of product purchase and testing; and (ii) make information available to the public on products found not to be in compliance with the standards. (k) (1) With prior notice and at reasonable and convenient hours, the Administration may make periodic inspections of distributors or retailers of new products listed in subsection (b)(1) of this section in order to determine compliance with the provisions of this section. (2) The Administration shall coordinate with the Department of Housing and Community Development and the Maryland Department of Labor regarding inspections, prior to occupancy, of newly constructed buildings containing new products that are also covered by the Maryland Building Performance Standards. (l) (1) The Administration may investigate complaints received concerning violations of this section and shall report the results of an investigation to the Attorney General. (2) The Attorney General may institute proceedings to enforce the provisions of this section. (3) A manufacturer, distributor, or retailer of new products listed in subsection (b)(1) of this section that violates any provision of this section shall be issued a warning by the Administration for a first violation. (4) Repeat violators shall be subject to a civil penalty of not more than $250. (5) Each violation of this section shall constitute a separate offense and each day that a violation continues shall constitute a separate offense. (6) Penalties assessed under this subsection are in addition to costs assessed under subsection (j)(2)(i) of this section. (7) Penalties assessed under this subsection shall be paid into the General Fund of the State. #### Section 9-2007 (a) (1) In this section the following words have the meanings indicated. (2) "Installed electricity generation capacity" means the maximum direct current power output in watts of the array of photovoltaic modules rated under standard test condition. (3) "Photovoltaic property" means solar energy property with an installed electricity generation capacity of 20 kilowatts or less that uses a solar photovoltaic process to generate electricity and that meets applicable performance and quality standards and certification requirements in effect at the time of acquisition of the property, as specified by the Maryland Energy Administration. (4) "Program" means the Solar Energy Grant Program. (5) (i) "Solar energy property" means equipment that uses solar energy: (1) to generate electricity; (2) to heat or cool a structure or provide hot water for use in a structure; or (3) to provide solar process heat. (ii) "Solar energy property" does not include a swimming pool, hot tub, or any other energy storage medium that has a function other than storage. (6) "Solar water heating property" means solar energy property that: (i) when installed in connection with a structure, uses solar energy for the purpose of providing hot water for use within the structure; and (ii) meets applicable performance and quality standards and certification requirements in effect at the time of acquisition of the property, as specified by the Maryland Energy Administration. (b) There is a Solar Energy Grant Program in the Administration. (c) The purpose of the Program is to provide grants to individuals, local governments, and businesses for a portion of the costs of acquiring and installing photovoltaic property and solar water heating property. (d) The Administration shall: (1) administer the Program; (2) establish application procedures for the Program; and (3) award grants from the Program. (e) A grant awarded under the Program may not exceed: (1) for photovoltaic property, the lesser of $2,500 per kilowatt of installed electricity generation capacity or $10,000; and (2) for solar water heating property, the lesser of $3,000 or 30% of the total installed cost of the solar water heating property. (f) Subject to the limitations in subsection (e) of this section, the Administration may adjust the grant amounts under the Program to reflect market conditions and the prevailing prices of photovoltaic property and solar water heating property. #### Section 9-2008 (a) (1) In this section the following words have the meanings indicated. (2) "Geothermal heat pump" means a heating and cooling device that is installed using ground loop technology. (3) "Program" means the Geothermal Heat Pump Grant Program. (4) "Ton" means 1 standard ton of refrigeration equal to 12,000 British thermal units of heat removal per hour. (b) There is a Geothermal Heat Pump Grant Program in the Administration. (c) The purpose of the Program is to provide grants to individuals for a portion of the cost of acquiring and installing a geothermal heat pump. (d) The Administration shall: (1) administer the Program; (2) establish application procedures for the Program; and (3) award grants from the Program. (e) A grant awarded under the Program may not exceed the lesser of: (1) $1,000 per ton or $3,000 for a residential system; and (2) $1,000 per ton or $10,000 for a nonresidential system. (f) Subject to the limitations in subsection (e) of this section, the Administration may adjust the grant amounts under the Program to reflect market conditions and the prevailing prices of geothermal heat pump systems. #### Section 9-2009 (a) (1) In this section the following words have the meanings indicated. (2) "Electric vehicle recharging equipment rebate" means a rebate issued by the Administration under this section for the cost of qualified electric vehicle recharging equipment. (3) "Qualified electric vehicle recharging equipment" means property in the State that is used for recharging motor vehicles propelled by electricity. (b) (1) There is an Electric Vehicle Recharging Equipment Rebate Program. (2) The Administration shall administer the Program. (c) (1) For fiscal years 2021 through 2026, subject to the provisions of this section, an individual, a business entity, or a unit of State or local government may apply to the Administration for an electric vehicle recharging equipment rebate for the costs of acquiring and installing qualified electric vehicle recharging equipment. (2) For each fiscal year, the total amount of rebates issued by the Administration may not exceed $2,500,000. (3) The Administration may allow an applicant to include reasonable installation costs in the cost of qualified electric vehicle recharging equipment for the purpose of calculating the amount of an electric vehicle recharging equipment rebate. (d) Subject to subsection (e) of this section, the Administration may issue an electric vehicle recharging equipment rebate to: (1) an individual in an amount equal to the lesser of: (i) 50% of the costs of acquiring and installing qualified electric vehicle recharging equipment; or (ii) $700; or (2) a business entity or unit of State or local government in an amount equal to the lesser of: (i) 50% of the costs of acquiring and installing qualified electric vehicle recharging equipment; or (ii) $5,000. (e) (1) Except as provided in paragraph (2) of this subsection, an electric vehicle recharging equipment rebate issued under this section is limited to the acquisition of one recharging system per individual. (2) The Administration may alter the Program to offer additional benefits for the installation of qualified electric vehicle recharging equipment in multifamily housing, planned urban developments, and condominiums in: (i) low- to moderate-income communities located in a census tract with an average median income at or below 80% of the average median income for the State; or (ii) overburdened or underserved communities as defined in Sec. 1-701 of the Environment Article. (f) (1) The Administration may adopt regulations to carry out this section. (2) The regulations adopted under this subsection may include: (i) further limitations on the maximum amount of an electric vehicle recharging equipment rebate that may be claimed by an applicant under subsection (d) of this section; (ii) additional benefits for the installation of qualified electric vehicle recharging equipment in multifamily housing, planned urban developments, and condominiums located in: (1) low- to moderate-income communities located in a census tract with an average median income at or below 80% of the average median income for the State; or (2) overburdened or underserved communities as defined in Sec. 1-701 of the Environment Article; (iii) a requirement that an applicant demonstrate compliance with a State, local, or federal law that applies to the installation or operation of the qualified electric vehicle recharging equipment; and (iv) any additional application and qualification requirements deemed appropriate by the Administration. #### Section 9-2010 (a) In this section, "Hub" means the Climate Transition and Clean Energy Hub. (b) There is a Climate Transition and Clean Energy Hub in the Administration. (c) The purpose of the Hub is to serve as a clearinghouse for information on advanced technology and architectural solutions to reduce greenhouse gas emissions from the building sector. (d) (1) The Hub shall provide technical assistance to public and private entities to achieve greenhouse gas emissions reductions and comply with State and local energy efficiency and electrification requirements, including: (i) building emissions standards for covered commercial and multifamily residential buildings established under Title 2, Subtitle 16 of the Environment Article; (ii) the Maryland Building Performance Standards and local amendments to the Standards established under Title 12, Subtitle 5 of the Public Safety Article; and (iii) high performance building requirements for State-funded buildings established under Sec. 3-602.1 of the State Finance and Procurement Article. (2) The Hub shall also provide technical assistance for increasing building performance and energy efficiency for other existing and new residential properties. #### Section 9-2011 (a) (1) In this section the following words have the meanings indicated. (2) "Grant" means a medium-duty or heavy-duty zero-emission vehicle grant issued by the Administration under this section for up to 75% of the incremental cost of a qualified medium-duty or heavy-duty zero-emission vehicle or zero-emission heavy equipment property. (3) "Incremental cost" means the difference in price of: (i) a conventional model vehicle and a zero-emission model that is attributable to the functional features of the vehicle; or (ii) conventional heavy equipment property and zero-emission heavy equipment property that is attributable to the functional features of the equipment. (4) "Program" means the Medium-Duty and Heavy-Duty Zero-Emission Vehicle Grant Program. (5) "Qualified medium-duty or heavy-duty zero-emission vehicle" means a motor vehicle that is: (i) rated at more than 10,000 pounds gross vehicle weight; and (ii) powered by electricity that is stored in a battery or produced by a hydrogen fuel cell. (6) "Qualified medium-duty or heavy-duty zero-emission vehicle supply equipment" means property in the State that is used for recharging or refueling medium-duty or heavy-duty zero-emission vehicles or zero-emission heavy equipment property. (7) (i) "Zero-emission heavy equipment property" means construction, earthmoving, or industrial heavy equipment, including any attachment for the equipment, that: (1) is mobile; and (2) does not use an internal combustion engine. (ii) "Zero-emission heavy equipment property" includes: (1) a self-propelled vehicle that is not designed to be driven on a highway; and (2) industrial electrical generation equipment, industrial lift equipment, industrial material handling equipment, or other similar industrial equipment. (b) (1) There is a Medium-Duty and Heavy-Duty Zero-Emission Vehicle Grant Program. (2) The Program applies only to vehicles and equipment intended for commercial or industrial use. (3) The Administration shall administer the Program. (c) (1) For each of fiscal years 2024 through 2027, a person or a unit of local government may apply to the Administration for a grant under the Program. (2) For the purpose of calculating the amount of a grant, the Administration may allow an applicant to include reasonable installation costs in the cost of qualified medium-duty or heavy-duty zero-emission vehicle supply equipment. (3) In issuing Program grants, the Administration shall give preference to: (i) qualified medium-duty or heavy-duty zero-emission vehicles that are: (1) expected to be primarily domiciled and operated in the State; and (2) to be owned or operated by an entity engaged in business activity that impacts public health, the environment, or infrastructure in an overburdened or underserved community, as defined in Sec. 1-701 of the Environment Article; and (ii) zero-emission heavy equipment property that is expected to be used primarily at locations in the State. (d) Program grants are subject to available funding and Sec. 9-20B-05(j)(4) of this title. (e) Notwithstanding Sec. 9-20B-05(g) of this title, in each of fiscal years 2024 through 2027, the Governor shall include in the annual budget bill an appropriation of at least $10,000,000 from the Strategic Energy Investment Fund for grants for qualified newly manufactured medium-duty or heavy-duty zero-emission vehicles or zero-emission heavy equipment property under the Program. #### Section 9-2012 (a) (1) In this section the following words have the meanings indicated. (2) "Eligible applicant" means: (i) the owner of a residential property who purchases and installs an energy storage system on the residential property; (ii) the owner of a commercial property who purchases and installs an energy storage system on the commercial property; or (iii) an individual or a business entity that owns or pays for the installation of an energy storage system that supplies electrical energy intended for use on the residential or commercial property on which the energy storage system is installed. (3) "Energy storage system" means a system used to store electrical energy, or mechanical, chemical, or thermal energy that was once electrical energy, for use as electrical energy at a later date or in a process that offsets electricity use at peak times. (4) "Fund" means the Energy Storage System Grant Fund. (5) "Program" means the Energy Storage System Grant Program. (b) There is an Energy Storage System Grant Program in the Administration. (c) The purpose of the Program is to provide grants to individuals and business entities for a portion of the costs of purchasing and installing energy storage systems. (d) The Administration shall: (1) administer the Program; (2) establish application procedures for the Program; and (3) award grants under the Program. (e) (1) Subject to paragraph (2) of this subsection and to the availability of money in the Fund, an eligible applicant may apply for a grant under the Program for costs incurred to purchase and install an energy storage system. (2) The Administration may require that an applicant participate in a program or tariff established under Sec. 7-1005 of the Public Utilities Article as a condition of eligibility for receiving a grant under the Program. (f) (1) Except as provided in paragraph (2) of this subsection, a grant awarded under the Program may not exceed the lesser of: (i) (1) for an energy storage system installed on a residential property, $5,000; or (2) for an energy storage system installed on a commercial property, $150,000; or (ii) 30% of the total installed costs of the energy storage system. (2) The award limits in paragraph (1) of this subsection do not apply to a grant provided to an applicant as an upfront incentive or rebate under Sec. 7-1006 of the Public Utilities Article. (g) The Administration shall approve all applications that qualify for a grant under the Program: (1) on a first-come, first-served basis; and (2) in a timely manner. (h) A grant under this section may not be awarded for an energy storage system installed before January 1, 2025. (i) (1) There is an Energy Storage System Grant Fund. (2) The Administration shall administer the Fund. (3) (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. (4) 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. (5) The Fund may be used only for: (i) providing grants under the Program to eligible applicants; and (ii) administrative costs of the Program. (6) (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. (j) The Administration may adopt regulations to carry out this section. #### Section 9-2013 (a) (1) In this section the following words have the meanings indicated. (2) "Fund" means the Mechanical Insulation Installation Grant Fund. (3) "Mechanical insulation" means insulation materials, facings, and accessory products used for thermal requirements for mechanical piping and equipment, hot and cold applications, and heating, ventilation, and air-conditioning applications. (4) "Minimum ASHRAE standard" means the minimum American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) standard 90.1-2019 (Energy Standard for Buildings Except Low-Rise Residential Buildings). (5) "Program" means the Mechanical Insulation Installation Grant Program. (6) (i) "Qualified expenses" means a capital investment of at least $10,000 for the installation of mechanical insulation, in a manner that complies with the minimum ASHRAE standard in effect at the time of the investment, on a commercial or industrial property in the State. (ii) "Qualified expenses" includes: (1) amounts paid for the purchase of mechanical insulation installed on the property; and (2) labor costs paid for the preparation, assembly, and installation of mechanical insulation on the property. (iii) "Qualified expenses" does not include capital investments for the installation of mechanical insulation that are required by statute, regulation, or code. (b) There is a Mechanical Insulation Installation Grant Program in the Administration. (c) The purpose of the Program is to provide grants to individuals, nonprofit organizations, and business entities for a portion of the qualified expenses paid or incurred to install mechanical insulation on a commercial or industrial property. (d) The Administration shall: (1) administer the Program; (2) establish application procedures for the Program; and (3) award grants from the Program. (e) Subject to the availability of money in the Fund, an individual, a nonprofit organization, or a business entity may apply for a grant under the Program for qualified expenses paid or incurred to install mechanical insulation on a commercial or industrial property. (f) A grant awarded under the Program may not exceed the lesser of: (1) 30% of the total amount of qualified expenses paid or incurred by the applicant; or (2) $20,000. (g) (1) There is a Mechanical Insulation Installation Grant Fund. (2) The Administration shall administer the Fund. (3) (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. (4) 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. (5) The Fund may be used only for: (i) providing grants under the Program to eligible applicants; and (ii) administrative costs of the Program. (6) (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. (h) The Administration shall adopt regulations to carry out this section. #### Section 9-2014 (a) (1) In this section the following words have the meanings indicated. (2) "Extended grid outage" means a planned or unplanned grid outage lasting more than 4 hours. (3) "Low-income" means a household with an annual adjusted gross income at or below 175% of the federal poverty level. (4) "Microgrid" means technology that: (i) combines clean, distributed power generation with advanced control equipment; and (ii) enables portions of the electric grid to remain online when the wider grid is down. (5) "Moderate-income" means a household with an annual adjusted gross income at or below 80% of the local median income, as determined by the latest Maryland Department of Housing and Community Development "Income Limits" document. (6) "Program" means the Resiliency Hub Grant Program. (7) "Resiliency hub" means a location where solar photovoltaic and battery energy storage are designed to provide electricity to meet community needs during extended grid outages, including providing: (i) emergency heating and cooling; (ii) refrigeration of temperature-sensitive medications; (iii) outlets or other plug power options for charging cell phone and computer batteries; and (iv) ventilation and emergency lighting. (b) There is a Resiliency Hub Grant Program in the Administration. (c) The purpose of the Program is to develop resiliency hubs that serve low-income and moderate-income households at no cost to the households. (d) (1) By regulation, the Administration shall set the terms and conditions for the issuance of grants under the Program consistent with this subtitle. (2) The regulations shall include: (i) a competitive application process for the Program; and (ii) criteria and procedures for awarding grants to eligible recipients that give priority to awarding grants to projects for microgrids that: (1) use a community solar energy generating system, as defined in Sec. 7-306.2 of the Public Utilities Article; and (2) provide more than 30% of the system's kilowatt output to low-income and moderate-income subscribers. (e) The following persons are eligible for a grant under the Program: (1) businesses; (2) nonprofit entities; (3) units of State government; and (4) local governments. (f) A project is eligible for a grant under the Program if the project: (1) proposes to develop a resiliency hub; (2) will operate the resiliency hub for a period of at least 5 years; and (3) will serve a community of majority low-income or moderate-income households. (g) The Administration shall: (1) coordinate administration of the Program with the Maryland Department of Emergency Management; and (2) provide to grant applicants information on other sources of assistance that may benefit the project, including loans and grants awarded under Sec. 9-20B-05(i)(3) of this title. (h) A person who receives a grant under the Program shall: (1) acquire a written attestation that all installation contractors and subcontractors working on the project: (i) pay at least 150% of the State minimum wage; (ii) afford employees the right to bargain collectively for wages and benefits; (iii) provide paid leave; (iv) are considered "covered employment" for purposes of unemployment insurance benefits in accordance with Title 8 of the Labor and Employment Article; (v) entitle the employees to workers' compensation benefits in accordance with Title 9 of the Labor and Employment Article; (vi) have been in compliance with federal and State wage and hour laws for the longer of the immediately preceding 3 years or for the duration of the contractor's or subcontractor's business operation; and (vii) offer employer-provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee's net monthly earnings; and (2) provide to the Administration a progress report on or before January 10, April 10, July 10, and October 10 each year. #### Section 9-2015 (a) (1) In this section the following words have the meanings indicated. (2) "Fund" means the Resiliency Hub Grant Program Fund. (3) "Program" means the Resiliency Hub Grant Program established under Sec. 9-2010 of this subtitle. (b) There is a Resiliency Hub Grant Program Fund. (c) The purpose of the Fund is to provide grants under the Program. (d) The Administration shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) The Fund consists of: (1) grant funding obtained under subsection (k) of this section; (2) funds distributed to the Fund under Sec. 9-20B-05 of this title and Sec.Sec. 2-110.1 and 13-201 of the Public Utilities Article; (3) money appropriated in the State budget to the Fund; (4) interest earnings; and (5) any other money from any other source accepted for the benefit of the Fund. (g) The Fund may be used only for: (1) grants awarded under the Program; and (2) costs associated with administering the Program and the Fund. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (i) Expenditures from the Fund may be made only in accordance with the State budget. (j) Money expended from the Fund for the Program is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Program. (k) The Administration and the Maryland Department of Emergency Management, in coordination with any other appropriate unit of State government, shall identify and apply for grant funding, including federal grant funding, to support the Program. #### Section 9-2016 (a) (1) In this section the following words have the meanings indicated. (2) "Eligible customer-generator" has the meaning stated in Sec. 7-306 of the Public Utilities Article. (3) "Low to moderate income" means a household with an annual household income at or below 150% of the average median income for the State. (4) "Program" means the Customer-Sited Solar Program established in this section. (b) There is a Customer-Sited Solar Program in the Administration. (c) The purpose of the Program is to: (1) increase deployment of customer-sited solar energy generating systems; and (2) provide grants to eligible customer-generators that have installed solar energy generating systems with or without energy storage. (d) (1) The Administration shall: (i) on or before January 1, 2025, establish application and income verification procedures for the Program; and (ii) award grants from the Program. (2) An applicant for a grant under this section shall: (i) include in the application an executed contract to purchase or lease a solar energy generating system or an executed power purchase agreement for the system; (ii) demonstrate that an agreement entered into between a third party and an eligible customer-generator meets the minimum benefits published under subsection (j) of this section; and (iii) include a signed disclosure form developed under subsection (l) of this section. (e) The Program may provide grants to an income-verified eligible customer-generator with a low to moderate income in an amount equal to $750 per kilowatt of nameplate capacity for a solar energy generating system, up to a maximum of $7,500 per system. (f) A grant awarded under subsection (e) of this section shall be funded from the Maryland Strategic Energy Investment Fund established under Sec. 9-20B-05 of this title. (g) The Administration shall use the income verification processes under Sec. 7-306.2(f)(1)(iv)1 through 6 of the Public Utilities Article to verify income for an eligible customer-generator with a low to moderate income. (h) A third party may: (1) apply for a grant on behalf of an eligible customer-generator with proof of consent from the eligible customer-generator; and (2) be assigned a grant by the eligible customer-generator to act on behalf of the eligible customer-generator. (i) (1) Funding used for grants under this section shall be monitored through an application process maintained by the Administration and visible on the Administration's website. (2) Data on the Administration's website shall: (i) include the amount of funding available, reserved, and spent for the fiscal year; and (ii) be updated regularly. (j) The Administration shall publish: (1) the disclosure form developed under subsection (l) of this section; and (2) the minimum benefits that an eligible customer-generator must receive under an agreement with a third party. (k) A solar energy generating system shall be installed within 180 days after a grant under this section is reserved by the Administration for an eligible customer-generator. (l) (1) The Administration shall develop a consumer protection policy in consultation with representatives of the customer-sited solar industry. (2) The consumer protection policy developed under paragraph (1) of this subsection shall: (i) include a disclosure form for solar energy power purchase agreements, solar energy lease agreements, and solar energy loan agreements that must be signed by an eligible customer-generator before entering into the agreement; (ii) for a solar energy power purchase agreement or a solar energy lease agreement, prohibit an annual rate increase of more than 3%; (iii) allow a customer-generator to cancel an agreement entered into with a third party up to 30 days after signing the agreement; and (iv) be easily accessible on the Administration's website and social media platforms. #### Section 9-2017 (a) On or before December 1, 2025, to assist the State in meeting its solar energy commitments under Title 7, Subtitle 7 of the Public Utilities Article, the Department of Natural Resources, in consultation with the Maryland Energy Administration, the Department of Transportation, and the Department of Planning, shall update the publicly available SmartDG+ tool to include State-owned land suitable for solar energy development. (b) On or before December 1, 2026, the Department of Natural Resources, in consultation with the Maryland Energy Administration, the Department of Transportation, and the Department of Planning, shall analyze land owned by the State to identify land suitable for solar energy development to assist the State in meeting its solar energy commitments under Title 7, Subtitle 7 of the Public Utilities Article. ### Subtitle 20B. Maryland Strategic Energy Investment Program #### Section 9-20B-01 (a) In this subtitle the following words have the meanings indicated. (b) "Administration" means the Maryland Energy Administration. (c) "Board" means the Strategic Energy Investment Advisory Board established under Sec. 9-20B-07 of this subtitle. (d) "Clean energy industry" means a group of employers and building and trade associations that are associated by their promotion of: (1) products and services that improve energy efficiency and conservation, including products and services provided by: (i) electricians; (ii) heating, ventilation, and air-conditioning installers; (iii) plumbers; (iv) energy auditors; (v) carpenters; (vi) pile-driver operators; (vii) millwrights; (viii) insulation workers; and (ix) well drillers; and (2) renewable and clean energy resources. (e) "Fund" means the Maryland Strategic Energy Investment Fund. (f) "Program" means the Maryland Strategic Energy Investment Program. #### Section 9-20B-02 There is a Maryland Strategic Energy Investment Program in the Maryland Energy Administration. #### Section 9-20B-03 The purpose of the Program is to decrease energy demand and increase energy supply to promote affordable, reliable, and clean energy and to strengthen the State's climate mitigation and climate resiliency to fuel Maryland's future prosperity. #### Section 9-20B-04 The Administration shall: (1) manage, supervise, and administer the Program; (2) adopt regulations to implement the Program and to ensure that Fund resources are utilized only to carry out the purposes of the Program; (3) attach specific terms and conditions to any grant, loan, or other form of assistance that are determined by the Administration as necessary to ensure that the purposes of the Program are fulfilled; (4) develop procedures for monitoring programs, projects, activities, and investments to verify that Fund resources are being used to meet the purposes of the Program; and (5) provide money annually or as needed to the Clean Air Fund managed by the Department of the Environment to fund the costs of the Department's programs to reduce or mitigate the effects of climate change. #### Section 9-20B-05 (a) In this section, "district energy" has the meaning stated in Sec. 7-232 of the Public Utilities Article. (a-1) There is a Maryland Strategic Energy Investment Fund. (b) The purpose of the Fund is to implement the Strategic Energy Investment Program. (c) The Administration shall administer the Fund. (d) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) all of the proceeds from the sale of allowances under Sec. 2-1002(g) of the Environment Article; (2) money appropriated in the State budget to the Program; (3) repayments and prepayments of principal and interest on loans made from the Fund; (4) compliance fees paid under Sec. 7-705 of the Public Utilities Article; (5) money received from any public or private source for the benefit of the Fund; (6) money transferred from the Public Service Commission under Sec. 7-207.2(d)(3) of the Public Utilities Article; and (7) money distributed under Sec. 2-614.1 of the Tax - General Article. (f) The Administration shall use the Fund: (1) to invest in the promotion, development, and implementation of: (i) cost-effective energy efficiency and conservation programs, projects, or activities, including measurement and verification of energy savings; (ii) renewable and clean energy resources; (iii) climate change programs directly related to reducing or mitigating the effects of climate change; and (iv) demand response programs that are designed to promote changes in electric usage by customers in response to: (1) changes in the price of electricity over time; or (2) incentives designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized; (2) to provide targeted programs, projects, activities, and investments to reduce electricity consumption by customers in the low-income and moderate-income residential sectors; (3) to provide supplemental funds for low-income energy assistance through electric and fuel assistance programs in the Department of Human Services; (4) to provide rate relief by offsetting electricity rates of: (i) residential customers, including an offset of surcharges imposed on ratepayers under Title 7, Subtitle 2, Part II of the Public Utilities Article; and (ii) to the extent feasible, residents of apartment houses, as defined in Sec. 7-303 of the Public Utilities Article, for which electricity service is provided through: (1) submetering authorized under Sec. 7-303 of the Public Utilities Article; or (2) an energy allocation system as defined in Sec. 7-304 of the Public Utilities Article; (5) to provide grants, loans, and other assistance and investment as necessary and appropriate to implement the purposes of the Program as set forth in Sec. 9-20B-03 of this subtitle; (6) to implement energy-related public education and outreach initiatives regarding reducing energy consumption and greenhouse gas emissions; (7) to provide rebates under the Electric Vehicle Recharging Equipment Rebate Program established under Sec. 9-2009 of this title; (8) to provide grants to encourage combined heat and power projects at industrial facilities; (9) to provide at least $1,200,000 in each fiscal year for fiscal year 2025 through fiscal year 2028 to the Climate Technology Founder's Fund established under Sec. 10-858 of the Economic Development Article; (10) subject to subsection (f-2) of this section, to provide at least $2,100,000 in funding each fiscal year to the Maryland Energy Innovation Fund established under Sec. 10-835 of the Economic Development Article; (11) to provide at least $500,000 each year to the Resiliency Hub Grant Program Fund under Sec. 9-2011 of this title; (12) to provide grants through the Customer-Sited Solar Program under Sec. 9-2016 of this title; (13) notwithstanding subsection (g) of this section, to pay costs associated with: (i) the Air and Radiation Administration within the Department of the Environment; (ii) the Power Plant Research Program within the Department of Natural Resources, including to support review of applications for certificates of public convenience and necessity associated with power plant construction as required under Sec. 3-306 of the Natural Resources Article; and (iii) the Environmental Review Program within the Department of Natural Resources, including to support the review of natural resource impacts of proposed development projects on State and private lands; (14) to provide funds to the Green and Renewable Energy Efficiency for Nonprofits Loan Fund established under Sec. 10-868 of the Economic Development Article; (15) to provide loans and grants for: (i) building electrification, including connection to an electrified district energy system; (ii) electrified thermal energy generation assets interconnected with a district energy system; and (iii) transportation electrification; (16) to provide loans and grants for programs, projects, and technologies that assist covered buildings, as defined in Sec. 2-1601 of the Environment Article, in meeting the building energy performance standards established under Sec. 2-1602 of the Environment Article; (17) to provide grants for renewable energy projects under Sec. 9-20E-02 of this title; (18) in fiscal year 2027, to provide grants to electric companies, including electric cooperatives and municipal electric utilities, to pay down the costs incurred by the electric companies for implementing and administering programs and services under Title 7, Subtitle 2, Part II of the Public Utilities Article; (19) in fiscal year 2027, to offset residential electric customer costs associated with the limited-income rate mechanism required under Sec. 4-309 of the Public Utilities Article; (20) in fiscal year 2027, to provide funding for a comprehensive study of public school HVAC systems in Baltimore City; (21) in fiscal year 2027, to provide funding for upgrades to public school HVAC systems in Baltimore City; (22) in fiscal year 2027, to provide additional funding for the Administration's Residential and Commercial Energy Storage Grant Program; (23) in fiscal year 2027, to provide additional funding for the review of renewable and clean energy projects through the Department of Natural Resources' Power Plant Research Program; (24) in fiscal year 2027, to provide additional funding for heat pump installations and replacements for low- and moderate-income households through the Administration's Residential Energy Equity Program; (25) beginning in fiscal year 2028, to provide $5,000,000 in each fiscal year to the Department of Natural Resources' Power Plant Research Program; (26) beginning in fiscal year 2028, $9,000,000 to provide grants or rebates to incentivize customers to install renewable on-site generating systems under Sec. 7-1006 of the Public Utilities Article; (27) to provide funding for clean energy and efficiency programs for buildings, including low-income household energy efficiency and school electrification; (28) to provide funding for transportation-related emissions reduction programs, including electric vehicle charging infrastructure and electric school bus deployment; (29) to provide funding for electric system resiliency programs, including microgrid installation and resiliency hubs; (30) for administrative expenses of the Maryland Clean Energy Center; and (31) to pay the expenses of the Program. (f-1) (1) Any funding provided under subsection (f)(9) of this section that is not spent in a given fiscal year shall revert to the Fund in the following fiscal year. (2) The Administration may provide additional funding for the purposes stated in subsection (f)(9) of this section. (f-2) Of the funds transferred to the Maryland Energy Innovation Fund under subsection (f)(10) of this section: (1) at least $1,200,000 may be used to fund the Maryland Clean Energy Center established under Sec. 10-806 of the Economic Development Article; and (2) at least $900,000 may be used to fund the Maryland Energy Innovation Institute established under Sec. 10-829 of the Economic Development Article. (g) Proceeds received by the Fund from the sale of allowances under Sec. 2-1002(g) of the Environment Article shall be allocated as follows: (1) at least 50% shall be credited to an energy assistance account to be used for electricity and fuel assistance programs in the Department of Human Services; (2) at least 20% shall be credited to a low and moderate income efficiency and conservation programs account and to a general efficiency and conservation programs account for energy efficiency and conservation programs, projects, or activities and demand response programs, of which at least one-half shall be targeted to the low and moderate income efficiency and conservation programs account for: (i) the low-income residential sector at no cost to the participants of the programs, projects, or activities; and (ii) the moderate-income residential sector; (3) at least 20% shall be credited to a renewable and clean energy programs account for: (i) renewable and clean energy programs and initiatives; (ii) energy-related public education and outreach; (iii) climate change and resiliency programs; (iv) programs and applicable initiatives related to State climate change mitigation and climate change resiliency efforts; and (v) notwithstanding Sec. 9-20B-03 of this subtitle, programs and applicable initiatives related to resiliency efforts defined and implemented by the Maryland Department of Emergency Management, including the annual report by the Office of Resilience required under Sec. 14-1203 of the Public Safety Article; and (4) up to 10%, but not more than $7,500,000, shall be credited to an administrative expense account for costs related to the administration of the Fund, including the review of electric company plans for achieving electricity savings and demand reductions that the electric companies are required under law to submit to the Administration. (g-1) Except as provided in subsection (i-2) of this section, proceeds received by the Fund from compliance fees under Sec. 7-705(b)(2)(i)2 of the Public Utilities Article shall be allocated as follows: (1) beginning in fiscal year 2025, at least 20% of the proceeds shall be used to provide grants to support the installation of new solar energy generating systems under the Customer-Sited Solar Program; (2) up to 10% of the proceeds shall be credited to an administrative expense account for costs related to the administration of the Fund; (3) proceeds collected but unused from a previous year shall be used before proceeds allocated for the current year; and (4) the Administration shall reallocate to other authorized uses any proceeds that are not used within 3 fiscal years after collection. (h) (1) Energy efficiency and conservation programs under subsection (g)(2) of this section include: (i) low-income energy efficiency programs; (ii) residential and small business energy efficiency programs; (iii) commercial and industrial energy efficiency programs; (iv) State and local energy efficiency programs; (v) demand response programs; (vi) loan programs and alternative financing mechanisms; and (vii) grants to training funds and other organizations supporting job training for deployment of energy efficiency and energy conservation technology and equipment. (2) Energy-related public education and outreach and renewable and clean energy programs and initiatives under subsection (g)(3)(i) and (ii) of this section include: (i) production incentives for specified renewable energy sources; (ii) expansion of existing grant programs for solar, geothermal, and wind programs; (iii) loan programs and alternative financing mechanisms; and (iv) consumer education and outreach programs that are designed to reach low-income communities. (i) (1) Except as provided in paragraphs (2) through (6) of this subsection and subsection (i-2) of this section, compliance fees paid under Sec. 7-705(b) of the Public Utilities Article may be used only to make loans and grants to support the creation of new Tier 1 renewable energy sources in the State that are owned by or directly benefit: (i) low- to moderate-income communities located in a census tract with an average median income at or below 80% of the average median income for the State; or (ii) overburdened or underserved communities, as defined in Sec. 1-701 of the Environment Article. (2) Except as provided in subsection (i-2) of this section, compliance fees paid under Sec. 7-705(b)(2)(i)2 of the Public Utilities Article shall be accounted for separately within the Fund and may be used only to make loans and grants to support the creation of new solar energy sources in the State that are owned by or directly benefit: (i) low- to moderate-income communities located in a census tract with an average median income at or below 80% of the average median income for the State; (ii) overburdened or underserved communities, as defined in Sec. 1-701 of the Environment Article; or (iii) households with low to moderate income, as defined in Sec. 9-2016 of this title. (3) For fiscal year 2026 only, up to $100,000,000 of compliance fees paid under Sec.Sec. 7-705(b) and 7-705(b)(2)(i)2 of the Public Utilities Article shall be accounted for separately within the Fund and may be used for solar development on State government property and local government clean energy projects. (4) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, compliance fees paid under Sec. 7-705 of the Public Utilities Article may be used to provide grants to electric companies to be refunded or credited to each residential distribution customer based on the customer's consumption of electricity supply that is subject to the renewable energy portfolio standard. (ii) The refunding or crediting of amounts to residential distribution customers shall be identified on the customer's bill as a line item identified as a "legislative energy relief refund". (iii) An electric company awarded a grant under this paragraph: (1) may not retain any of the grant funds to cover overhead expenses; and (2) shall provide all of the grant funds to residential distribution customers. (iv) The process under subparagraphs (i) and (ii) of this paragraph related to the refunding or crediting of amounts to residential distribution customers shall be directed and overseen by the Commission. (5) For fiscal year 2027 only, compliance fees paid under Sec.Sec. 7-705(b) and 7-705(b)(2)(i)2 of the Public Utilities Article shall be made available for $42,000,000 to the Dedicated Purpose Account to be made available for higher education research grants in any research field and not limited to energy-related research. (6) For fiscal years 2027 through 2031, compliance fees paid under Sec. 7-705 of the Public Utilities Article and deposited into the Fund may be used for grants or loans to support the creation of new Tier 1 renewable energy sources in the State. (i-1) (1) (i) In this subsection the following words have the meanings indicated. (ii) "Area median income" has the meaning stated in Sec. 4-1801 of the Housing and Community Development Article. (iii) "Low and moderate income" means having an annual household income that is at or below 120% of the area median income. (2) Except as provided in subsection (i-2) of this section, compliance fees paid under Sec. 7-705(b-1) of the Public Utilities Article shall be accounted for separately within the Fund and may be used only to make loans and grants to promote increased opportunities for the growth and development of small, minority, women-owned, and veteran-owned businesses in the State that install geothermal systems in the State. (i-2) For fiscal years 2027 and 2028, $100,000,000 of compliance fees paid under Sec. 7-705 of the Public Utilities Article and deposited into the Fund in each fiscal year may be used to provide grants for renewable energy projects under Sec. 9-20E-02 of this title, including any associated administrative expenses. (j) (1) The Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any investment earnings of the Fund shall be paid into the Fund. (3) Any repayment of principal and interest on loans made from the Fund shall be paid into the Fund. (4) Balances in the Fund shall be held for the benefit of the Program, shall be expended solely for the purposes of the Program, and may not be used for the general obligations of government. (k) Expenditures from the Fund shall be made by: (1) an appropriation in the annual State budget; or (2) a budget amendment in accordance with Sec. 7-209 of the State Finance and Procurement Article. (l) An expenditure by budget amendment may be made under subsection (k) of this section only after: (1) the Administration has submitted the proposed budget amendment and supporting documentation to the Senate Budget and Taxation Committee, Senate Committee on Education, Energy, and the Environment, House Appropriations Committee, and House Environment and Transportation Committee; and (2) the committees have had 45 days for review and comment. (m) (1) A loan or grant made available from the Fund to a unit of State or local government shall comply with Sec.Sec. 14-416 and 17-303 of the State Finance and Procurement Article. (2) At least 80% of workers participating in a project or program that receives money from the Fund must reside within 50 miles of the project or program, or another distance defined by the local jurisdiction where the project or program is located. #### Section 9-20B-06 (a) On or before December 31, 2019, the Administration shall develop a plan for expenditures for fiscal year 2020 and a plan for expenditures covering the next 3 fiscal years. (b) (1) The Administration shall hold one or more public meetings in conjunction with the development of a plan. (2) The Administration: (i) shall hold at least four public meetings across the State during the development of the initial plan under subsection (a) of this section, in the eastern, southern, central, and western parts of the State, respectively; and (ii) is encouraged to solicit input from all regions of the State in developing subsequent plans under this section. #### Section 9-20B-07 (a) There is a Strategic Energy Investment Advisory Board. (b) (1) The Board shall review the Program and the Administration's proposed uses of and expenditures from the Fund and make recommendations to the Administration concerning any proposed use or expenditure. (2) The Administration shall consider the Board's recommendations when making decisions about uses and expenditures from the Fund. (c) The Board consists of the following members: (1) one member of the Senate, appointed by the President of the Senate; (2) one member of the House of Delegates, appointed by the Speaker of the House of Delegates; (3) the following members appointed by the Governor: (i) two representatives of Maryland residential customers; (ii) a representative of Maryland commercial customers; (iii) a representative of large electricity users in the State; (iv) a representative of an electric company; (v) a representative of an electric cooperative; (vi) a representative of electricity suppliers; (vii) a representative of a Maryland environmental group; and (viii) a representative of a renewable electricity industry; and (4) the following nonvoting ex officio members: (i) the Chairman of the Public Service Commission or the Chairman's designee; (ii) the People's Counsel or the designee of the People's Counsel; and (iii) the Secretary of the Environment or the Secretary's designee. (d) If a regulated lobbyist is appointed to serve as a member of the Board, the lobbyist: (1) is not subject to Sec. 5-504(d) of the General Provisions Article with respect to that service; and (2) is not subject to Sec. 5-704(f)(3) of the General Provisions Article as a result of that service. (e) The Governor shall appoint the chair of the Board from among its voting members. (f) (1) The term of a member appointed by the Governor is 3 years. (2) The terms of the members appointed by the Governor are staggered as required by the terms provided for members of the Board on June 1, 2008. (3) (i) The Board shall meet at least 2 times each year. (ii) In addition, the Board may meet at the discretion of the chair of the Board or the request of the Director of the Administration. (4) The Board may act only by the affirmative vote of at least six voting members. (5) A member of the Board: (i) may not receive compensation as a member of the Board; but (ii) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (g) The Administration shall provide staff support for the Board. #### Section 9-20B-08 (a) The Administration regularly shall disclose summary information regarding any contract entered into by the Administration that encumbers $100,000 or more from the Fund. (b) For each of the contracts specified under subsection (a) of this section, the following information shall be posted on the Administration's website on a quarterly basis: (1) the name and business address of the parties of the contract; (2) a summary of the goods and services to be provided under the contract; and (3) the maximum amount of money from the Fund that may be obligated by the contract. #### Section 9-20B-09 (a) The Administration shall monitor and analyze the impact of each program, project, activity, and investment to ensure that the outcome of each program, project, activity, or investment achieves the purposes of the Program. (b) In monitoring and analyzing the impact of a program, project, activity, or investment under subsection (a) of this section, if the Administration finds that the outcome of the program, project, activity, or investment is not achieving the purposes of the Program, the Administration shall take specific measures to address the findings. #### Section 9-20B-10 The Administration may enter into contracts with third parties to assist in the development and implementation of programs and projects that will advance the purposes of the Program or to administer the Program, including contracts with third parties to make, service, or settle loans and other assistance or investments made through the Program. #### Section 9-20B-11 (a) A person may not knowingly make or cause to be made any false statement or report in any document required to be furnished to the Administration by any agreement relating to a grant, loan, or other financial assistance. (b) A person applying for a grant, loan, or other financial assistance through the Program may not knowingly make or cause to be made any false statements for the purpose of influencing any action of the Administration on an application or for the purpose of influencing any action of the Administration affecting any grant, loan, or other financial assistance already provided. (c) A person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both. #### Section 9-20B-12 (a) On or before January 1 each year, the Administration shall report to the Governor, to the Board, and, in accordance with Sec. 2-1257 of this article, to the General Assembly and the members of the Senate Finance Committee and the House Economic Matters Committee on the uses and expenditures of the Fund from the prior fiscal year. (b) The report shall include: (1) a detailed accounting of all amounts in excess of $10,000 received by and disbursed from the Fund, including the amount and recipient of each grant awarded by the Administration; (2) all amounts used by the Administration for administrative purposes, including the funding source from which each amount was obtained; (3) programs, projects, and activities included in each category under Sec. 9-20B-05(g) of this subtitle; (4) the status of programs, projects, activities, and investments implemented with funds from the Fund, including an evaluation of the impact of the programs, projects, activities, and investments that are directed to low-income or moderate-income residential sectors or to other particular classes of ratepayers; (5) an estimate of greenhouse gas emissions reductions from the programs, projects, activities, and investments; (6) the number of allowances sold in each auction; (7) the average allowance price from each auction; (8) an estimate of revenue from future auctions; (9) an accounting of all amounts received or disbursed by the Fund from all other sources, including money received in accordance with orders issued and settlement agreements approved by the Public Service Commission; (10) recommendations for changes to the allocation of funds under Sec. 9-20B-05(g) of this subtitle; (11) the status of programs and expenditures in the current fiscal year; and (12) possible or expected program initiatives and changes in later years. ### Subtitle 20C. Maryland Offshore Wind Business Development Fund #### Section 9-20C-01 (a) In this subtitle the following words have the meanings indicated. (b) "Administration" means the Maryland Energy Administration. (c) "Advisory Committee" means the Maryland Offshore Wind Business Development Advisory Committee established under Sec. 9-20C-02 of this subtitle. (d) "Director" means the Director of the Maryland Energy Administration. (e) "Emerging business" means a business that is at least 51% owned and controlled by an individual or individuals who are certified to have a personal net worth, as defined in Sec. 14-301 of the State Finance and Procurement Article, that does not exceed $6,500,000 as adjusted each year for inflation according to the Consumer Price Index. (f) "Fund" means the Maryland Offshore Wind Business Development Fund established under Sec. 9-20C-03 of this subtitle. (g) "Minority" means an individual who is a member of any of the groups listed in Sec. 14-301(k)(1)(i) of the State Finance and Procurement Article. #### Section 9-20C-02 (a) There is a Maryland Offshore Wind Business Development Advisory Committee. (b) The Advisory Committee shall make recommendations to the Administration on the most effective manner to use money in the Fund consistent with the purposes of the Fund. (c) The Advisory Committee consists of the following members: (1) two members of the Senate of Maryland, one from each of the principal political parties, appointed by the President of the Senate; (2) two members of the House of Delegates, one from each of the principal political parties, appointed by the Speaker of the House; (3) the Director or the Director's designee; (4) the Secretary of Commerce, or the Secretary's designee; (5) the Special Secretary of the Governor's Office of Small, Minority, and Women Business Affairs, or the Special Secretary's designee; and (6) the following 12 members, appointed by the Governor: (i) 1 representative of a public institution of higher education in the State; (ii) 1 representative of a historically black or African American university in the State; (iii) 1 representative of the State's community colleges; (iv) 1 representative of the Maryland Independent Colleges and Universities Association; (v) 1 representative of the Maryland Small Business Development Center Network; (vi) 1 representative of the Maryland Business Coalition for Offshore Wind; (vii) 1 representative of a business incubator in the State with experience in providing services to minority business enterprises as defined in Sec. 14-301 of the State Finance and Procurement Article, or to emerging businesses, including emerging businesses owned by minorities; (viii) 1 individual with experience in providing business financing to minority business enterprises as defined in Sec. 14-301 of the State Finance and Procurement Article, or to emerging businesses, including emerging businesses owned by minorities; (ix) 1 representative of an offshore wind developer; (x) 1 representative of an original equipment manufacturer; (xi) 1 individual who is a minority business advocate; and (xii) 1 individual with experience in offshore wind supply chain issues. (d) The Governor shall appoint the chair of the Advisory Committee. (e) The Administration shall provide staff for the Advisory Committee. (f) A member of the Advisory Committee: (1) may not receive compensation as a member of the Advisory Committee; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (g) (1) On or before December 31, 2013, the Advisory Committee shall provide written recommendations to the Administration regarding the most effective use of money in the Fund in order to maximize opportunities for emerging businesses in the State, including minority-owned emerging businesses, to participate in the offshore wind industry. (2) In making a recommendation under paragraph (1) of this subsection, the Advisory Committee shall consider opportunities to maximize leveraging opportunities, mentoring and protege models, innovation clusters, existing incubator and business development programs, and the appropriate role of partnerships with the State's universities and community colleges. (3) On or before December 31, 2014, the Advisory Committee shall provide updated recommendations to the Administration. (h) On completion and submission of the written recommendations required under subsection (g) of this section, the Advisory Committee shall terminate its operation and cease to meet. #### Section 9-20C-03 (a) There is a Maryland Offshore Wind Business Development Fund in the Administration. (b) The purposes of the Fund are to: (1) provide financial assistance, business development assistance, and employee training opportunities for the benefit of emerging businesses in the State, including minority-owned emerging businesses, to prepare those businesses to participate in the emerging offshore wind industry; and (2) encourage emerging businesses in the State, including minority-owned emerging businesses, to participate in the emerging offshore wind industry. (c) The Administration may use the Fund to: (1) carry out the purposes of the Fund; and (2) pay the costs of implementing this subtitle. (d) The Director shall manage and supervise the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to reversion under Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money. (2) Any investment earnings of the Fund shall be credited to the Fund. (g) The Fund consists of: (1) money appropriated by the State to the Fund; (2) money paid to the Fund by a qualified offshore wind project under Sec. 7-704.1(h) of the Public Utilities Article; (3) money made available to the Fund through federal programs or private contributions; (4) repayment of principal or payment of interest on a loan made from the Fund; (5) proceeds from the sale, disposition, lease, or rental by the Administration of collateral related to financing that the Administration provides under this subtitle; (6) investment earnings of the Fund; and (7) any other money made available to the Administration for the Fund. (h) (1) In fiscal years 2014 and 2015, $1,500,000 shall be transferred from the Strategic Energy Investment Fund to the Fund. (2) In fiscal year 2016, $1,000,000 shall be transferred from the Strategic Energy Investment Fund to the Fund. #### Section 9-20C-04 (a) When determining how most effectively to use the money in the Fund, the Administration shall consider the recommendations of the Advisory Committee. (b) In carrying out this subtitle, and consistent with the purposes of the Fund, the Administration may contract with: (1) experts in the area of offshore wind energy; (2) the Small Business Development Center Network in the University of Maryland; and (3) entities experienced in assisting emerging businesses, including minority-owned emerging businesses, in accessing market opportunities. (c) (1) Except as provided in paragraph (2) of this subsection, Division II of the State Finance and Procurement Article does not apply to a service that the Administration obtains under this section. (2) The Administration is subject to Title 12, Subtitle 4 of the State Finance and Procurement Article for services under this section. ### Subtitle 20D. Regulated Sustainable Energy Contracts #### Section 9-20D-01 (a) In this subtitle the following words have the meanings indicated. (b) "Administration" means the Maryland Energy Administration. (c) "Program" means the Regulated Sustainable Energy Contract Program. (d) "Qualified contractor" means a person authorized by the Administration under this subtitle to provide sustainable energy products to residential property owners under a regulated sustainable energy contract. (e) "Regulated sustainable energy contract" means a contract between a residential property owner and a qualified contractor that: (1) meets the requirements of Sec. 9-20D-04 of this subtitle; and (2) does not exceed $30,000. (f) "Residential energy efficiency measure" means a product or an improvement to a structure that, when installed, results in a reduction of energy usage in that structure. (g) "Residential renewable energy installation" means a product that, when installed on residential property, provides energy savings or generates energy from a renewable source. #### Section 9-20D-02 This subtitle is intended to promote energy conservation and the use of renewable energy by providing a secure form of long-term financing to facilitate the implementation of residential renewable energy installations and residential energy efficiency measures on or in residential properties. #### Section 9-20D-03 (a) The Administration may create a Regulated Sustainable Energy Contract Program to authorize qualified contractors to provide residential renewable energy installations and residential energy efficiency measures to residential property owners under regulated sustainable energy contracts in accordance with this subtitle. (b) The Administration shall manage, supervise, and administer a Program created under this subtitle. (c) If the Administration creates a Program under this subtitle, the Administration shall adopt regulations that: (1) ensure that financing is provided only to a project that carries out the purposes stated in a regulated sustainable energy contract; (2) establish eligibility criteria for qualified contractors, including a required minimum level of capitalization; (3) establish eligibility requirements for property owners that give due regard to the owner's ability to pay in a manner substantially similar to the requirements for a mortgage loan under Sec.Sec. 12-127, 12-311, 12-409.1, 12-925, and 12-1029 of the Commercial Law Article; (4) define and place limits on eligible residential renewable energy installations and eligible residential energy efficiency measures; (5) establish cost-effectiveness requirements for eligible residential renewable energy installations and eligible residential energy efficiency measures; (6) establish payback requirements, rate-of-return and interest rate guidelines, and limits for regulated sustainable energy contracts; (7) establish mechanisms for independent quality control and quality assurance; (8) market the Program to property owners and potential qualified contractors; and (9) provide a process for adopting brand names for the Program as well as elements of the Program. (d) The Administration may enter into contracts with third parties to ensure that: (1) financing is provided only to projects that carry out the terms and conditions of regulated sustainable energy contracts; and (2) the purposes of the Program are fulfilled. (e) The Administration may collect reasonable fees from qualified contractors to: (1) ensure that the purposes of the Program are fulfilled; and (2) carry out the Administration's duties under this subtitle. (f) The Administration may authorize qualified contractors to: (1) enter into regulated sustainable energy contracts with individual residential property owners, groups of residential property owners, or the builder of a new residential structure; (2) directly bill, in accordance with the rate and payment schedules provided in the regulated sustainable energy contract, each property owner that: (i) is a party to a regulated sustainable energy contract; or (ii) owns property subject to a regulated sustainable energy contract; and (3) enforce payment under a regulated sustainable energy contract in accordance with Sec. 9-20D-08 of this subtitle. (g) The Administration may: (1) limit the authorization of a qualified contractor to a particular territory or specified residential renewable energy installation; and (2) authorize more than one qualified contractor to operate in a particular territory or to offer specified residential renewable energy installation. (h) The Administration: (1) before developing and implementing a Program, shall perform a study to assess: (i) the feasibility of the Program; and (ii) the Administration's abilities to fulfill its duties regarding the Program under this subtitle; (2) may develop and implement a test or pilot program; and (3) notwithstanding the provisions in this subtitle, shall ensure that any financing authorized under this subtitle shall comply with applicable provisions in Title 12, Subtitles 1, 3, 4, 6, 9, and 10 of the Commercial Law Article. #### Section 9-20D-04 (a) Under a Program created in accordance with Sec. 9-20D-03(a) of this subtitle, a regulated sustainable energy contract shall: (1) meet the requirements established by the Administration under subsection (d) of this section; and (2) require, for each property expected to be subject to the regulated sustainable energy contract, the qualified contractor to notify, by first-class certified mail, any party that holds a recorded mortgage or deed of trust on property of: (i) the expected existence and terms of the regulated sustainable energy contract; and (ii) the right of the party that holds a recorded mortgage or deed of trust to object to the contract as provided in subsection (b) of this section. (b) (1) A party that holds a recorded mortgage or deed of trust on property that would be subject to a regulated sustainable energy contract has 30 days from receipt of the notice required under subsection (a)(2) of this section to object to the contract. (2) Any objection to the contract on the part of a party that holds a recorded mortgage or deed of trust on the property must be in writing and addressed to the owner of the property and the qualified contractor. (c) If an objection is made under subsection (b) of this section by a party that holds a recorded mortgage or deed of trust on the property, the regulated sustainable energy contract may not become effective and if executed shall be void. (d) When creating a Program under this subtitle, the Administration shall, by order or regulation, establish specific requirements for a regulated sustainable energy contract under this subtitle, including: (1) terms and conditions, including: (i) interest rates, schedules, and rates for repayment; (ii) a requirement that, if there is no objection by a party that holds a recorded mortgage or deed of trust, the regulated sustainable energy contract be recorded in the land records of the county in which the property is located; (iii) time frames for the recordation; and (iv) any terms and conditions required to create and enforce a lien under the Maryland Contract Lien Act, Title 14, Subtitle 2 of the Real Property Article; (2) eligibility requirements for property owners that give due regard to the owner's ability to pay in a manner substantially similar to the requirements for a mortgage loan under Sec.Sec. 12-127, 12-311, 12-409.1, 12-925, and 12-1029 of the Commercial Law Article; and (3) mechanisms: (i) for quality control; and (ii) to ensure that the savings to the property owner under a regulated sustainable energy contract outweigh the cost of the regulated sustainable energy contract. #### Section 9-20D-05 A qualified contractor may not enter into a regulated sustainable energy contract unless, for each property that would be subject to the regulated sustainable energy contract: (1) property taxes and mortgage debt are current; (2) there are no outstanding or unsatisfied liens; (3) there are no notices of default or other evidence of property-based debt delinquency for the lesser of: (i) the 3 years immediately preceding the contract date; or (ii) the length of time that the property owner has owned the property; and (4) the regulated sustainable energy contract has not been objected to under Sec. 9-20D-04(b) of this subtitle by a party that holds a recorded mortgage or deed of trust on the property that would be subject to the regulated sustainable energy contract. #### Section 9-20D-06 (a) A property owner may subject property to a regulated sustainable energy contract by recording or authorizing the recordation of the regulated sustainable energy contract among the land records in the county where the property is located. (b) (1) Subject to Sec. 9-20D-08 of this subtitle, a person who acquires property subject to a regulated sustainable energy contract, whether by purchase or other means, assumes the obligation to pay the qualified contractor in accordance with the rate and payment schedules in the regulated sustainable energy contract. (2) A person selling or transferring a property subject to a regulated sustainable energy contract shall provide written notice to the person acquiring the property that the person acquiring the property shall assume the obligation to pay the qualified contractor in accordance with the rate and payment schedules in the regulated sustainable energy contract. #### Section 9-20D-07 The Administration may revoke the authorization of a qualified contractor under this subtitle if the Administration determines that: (1) the qualified contractor is not complying with the terms of the authorization; (2) there is an excessive number of consumer complaints; or (3) the authorization is no longer serving the purpose of this subtitle. #### Section 9-20D-08 (a) (1) Subject to subsection (c) of this section, a qualified contractor may collect payments under a regulated sustainable energy contract that are in arrears, including the principal, interest, late charges, costs of collection, and reasonable attorney's fees, by the imposition of a lien on property that is subject to the contract in accordance with the Maryland Contract Lien Act, Title 14, Subtitle 2 of the Real Property Article. (2) A lien imposed under paragraph (1) of this subsection may not take priority over a lien, mortgage, deed of trust, or other security interest that is already attached to the property. (b) If a property subject to a regulated sustainable energy contract is foreclosed under Title 7, Subtitle 1 of the Real Property Article, any deficiency due as a result of a lien arising from the regulated sustainable energy contract shall be: (1) added to the total balance due on the contract; and (2) subject to periodic payment as provided in the contract. (c) (1) If a party that holds a recorded mortgage or deed of trust on a property subject to a regulated sustainable energy contract acquires the property through foreclosure, the party may not be charged for any amount due on the regulated sustainable energy contract. (2) Payment on a regulated sustainable energy contract shall resume when the property subject to the regulated sustainable energy contract is sold or transferred to a person who is not related to the person who held the recorded mortgage or deed of trust when the property was foreclosed. ### Subtitle 20E #### Section 9-20E-01 (a) In this subtitle the following words have the meanings indicated. (b) "Administration" means the Maryland Energy Administration. (c) "Alternative compliance fee" means a fee paid in accordance with Sec. 7-705 of the Public Utilities Article to the Maryland Strategic Energy Investment Fund established under Sec. 9-20B-05 of this title. (d) "Auction" means an alternative compliance fee auction. (e) "Capacity target" means the lesser of: (1) the calculation of the amount of renewable energy generation needed in a given year to satisfy the renewable energy portfolio standard under Sec. 7-703 of the Public Utilities Article for a specific year, minus the amount already procured from other sources; or (2) the amount of renewable energy that can be procured using alternative compliance fees available for the auction. (f) "Commission" means the Public Service Commission. (g) "Renewable energy" means: (1) energy generated from: (i) a Tier 1 renewable source that does not participate in net energy metering under Sec. 7-306, Sec. 7-306.2, Sec. 7-306.3, or Sec. 7-306.4 of the Public Utilities Article; (ii) a Tier 1 renewable source that: (1) meets the requirements of item (i) of this paragraph; and (2) includes a co-located energy storage device; or (iii) an energy storage device that is planned to be co-located with a Tier 1 renewable source; or (2) energy from an energy storage device that is not planned to be co-located with a Tier 1 renewable source. (h) "Tier 1 renewable source" has the meaning stated in Sec. 7-701 of the Public Utilities Article. #### Section 9-20E-02 (a) For 2027 and 2028, the Administration shall conduct, in consultation with the Commission, an annual, competitive, alternative compliance fee auction to award grants to eligible bidders to offset a portion of project costs associated with the development of renewable energy in the State using revenue from alternative compliance fees. (b) (1) The Administration, in consultation with the Commission, shall develop and conduct the auctions in a manner that is cost-effective and maintains and promotes the development of renewable energy in the State. (2) The competitive auction process may require the Administration to solicit a series of bids from renewable energy project developers for the development of renewable energy projects in a cost-effective manner. (c) (1) To be eligible to submit a bid under this section, a person must: (i) be a renewable energy project developer; and (ii) meet the minimum credit and other eligibility requirements set under paragraph (2) of this subsection. (2) The Administration, in consultation with the Commission, shall set eligibility requirements for bidders, including requiring each bidder to: (i) provide proof of financial integrity; (ii) post a bond or other similar instrument; (iii) agree to be subject to all applicable taxes and fees; (iv) demonstrate the ability to finance, execute, and commission projects; (v) provide, in accordance with paragraph (3) of this subsection, evidence that is satisfactory to the Administration that awarded funds are necessary for the renewable energy project to be constructed; and (vi) comply with any other requirements the Administration determines are in the public interest. (3) The evidence provided under paragraph (2)(v) of this subsection shall be provided to the Administration and maintained by the Administration in a manner that keeps the evidence confidential. (d) (1) Eligible bidders shall submit competitive bids by specifying: (i) the actual amount of megawatts to be generated by the renewable energy project; (ii) a price per megawatt that would be required from the auction; and (iii) any other information the Administration determines is necessary. (2) (i) Subject to subparagraph (ii) of this paragraph, the Administration shall rank bids from lowest to highest cost per megawatt and award funds derived from alternative compliance fees to the lowest bid or bids. (ii) The Administration shall prioritize bids for renewable energy projects specified in Sec. 9-20E-01(g)(1) of this subtitle. (3) (i) Subject to subparagraph (ii) of this paragraph, the Administration shall award bids until the capacity target is reached. (ii) The Administration may refuse to accept some or all of the bids made in a competitive auction in accordance with standards adopted by the Administration. (4) (i) If the capacity target can be met at a cost below the allocated funding, the Administration may: (1) carry forward any funding to the next auction, if applicable; or (2) apply the funds for any additional megawatts of renewable energy that have been offered under the auction. (ii) Any amount of allocated funding that is not carried forward or applied under subparagraph (i) of this paragraph shall accrue in the Maryland Strategic Energy Investment Fund and may be allocated for any purpose for which alternative compliance fee revenue is authorized to be used. (e) (1) The Administration shall set delivery deadlines for each renewable energy project that is awarded funding from an auction. (2) The deadlines set in paragraph (1) of this subsection shall include milestones that require the developer to meet certain delivery goals during the development of a renewable energy project. (3) The Administration may grant extensions for delivery goals that are delayed due to interconnection or permitting challenges or delays if the developer provides documentation of the challenge or delay. (4) The Administration shall establish a method of collection against any developer awarded a grant under this section to recapture any funds received as a result of: (i) misappropriation, overpayment, or fraud; or (ii) failure to meet milestones or delivery dates. (f) Within 90 days after all grants for renewable energy projects are executed, the Administration shall publicly disclose the names of each successful bidder and the megawatts to be delivered by the development of the renewable energy project. (g) On or before July 1, 2027, and July 1, 2028, the Administration, in consultation with the Commission, shall report to the General Assembly, in accordance with Sec. 2-1257 of this article, on the administration of the immediately preceding auction, including: (1) the amount of megawatts or megawatt-hours, as applicable, that received financial support through the auction; (2) the cost per megawatt of renewable energy allocated in the auction; (3) the number of renewable energy credits projected to be created as a result of the auction; and (4) any other information the Administration and the Commission consider relevant. ### Subtitle 22. Board of Advisors for Electronic Commerce #### Section 9-2201 (a) In this subtitle the following words have the meanings indicated. (b) "Application service provider" means an entity that provides access to or deployment of business software applications and services over the Internet. (c) "ASP" means application service provider. (d) "Board" means the CEO Board of Advisors for E-Commerce. (e) "Consortium" means the "eMaryland" ASP Consortium. (f) "E-commerce" means electronic business and commerce. #### Section 9-2202 The CEO Board of Advisors for E-Commerce and the "eMaryland" ASP Consortium are established under this subtitle to assist in the State's efforts to create the most advanced electronic business environment in the nation and become an international leader in the deployment of new Internet technologies. #### Section 9-2203 (a) There is a CEO Board of Advisors for E-Commerce. (b) (1) The Board may not exceed 12 members and shall be appointed by the Governor with the advice and consent of the Senate and serve at the pleasure of the Governor. (2) Each member of the Board serves for a period of 3 years and may be reappointed. (3) The Governor shall designate two representatives of State government to serve as ex officio members of the Board. (4) The members appointed by the Governor shall be industry leaders who have substantial experience and expertise in electronic commerce. (5) The Governor shall designate a chairman or cochairmen from among the members. (6) The Board shall meet at least twice annually. (c) The Board shall: (1) advise the Governor on economic development policies and initiatives to advance the promotion, deployment, and use of e-commerce in the State; (2) recommend ways to improve the State's position as an international leader of e-commerce; and (3) provide policy guidance to the "eMaryland" ASP Consortium and related ASP initiatives. (d) A member of the Board may not receive compensation as a member but is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget. (e) The Department of Budget and Management and University of Maryland, College Park Campus shall provide staff support to the Board. #### Section 9-2204 (a) There is an "eMaryland" ASP Consortium at the University of Maryland, College Park Campus. (b) (1) The general purpose of the Consortium is to promote the deployment of Internet-based technologies in Maryland. (2) The Consortium shall develop strategic partnerships with the State, institutions of higher education, federal agencies, and world class technology companies to carry out its mission. (3) The Consortium shall: (i) develop pilot models for the deployment of Internet-based applications for government and educational institutions, such as procurement, financial, and human resource management applications; (ii) participate in collaborations to promote the development and testing of ASP technologies in Maryland; (iii) provide advice and assistance to small start-up companies wishing to utilize ASP technologies; and (iv) work with industry and public agencies to research and develop emerging e-commerce technologies. (c) (1) There is a management committee for the Consortium. (2) The management committee is responsible for approving the activities of the Consortium and providing direction and oversight. (3) The management committee shall be composed of: (i) the Secretary of Information Technology; (ii) the Chief Information Officer at the University of Maryland, College Park Campus; (iii) the Director of the Supply Chain Management Center at the University of Maryland, College Park Campus; (iv) the Chief Executive Officer of the Maryland Technology Development Corporation; and (v) a member appointed by the Governor. ### Subtitle 23. Chesapeake Regional Olympic Games Authority Act #### Section 9-2301 (a) The definitions in Sec. 1-101 of this article do not apply to the interstate compact set forth in Sec. 9-2303 of this subtitle. (b) In the interstate compact set forth in Sec. 9-2303 of this subtitle, unless the context clearly requires otherwise, "article", "section", and "subsection" mean an article, section, and subsection, respectively, of the interstate compact. #### Section 9-2302 On behalf of this State, the Governor shall execute, with the City of Baltimore, the Commonwealth of Virginia, and the District of Columbia, an interstate compact substantially as it appears in Sec. 9-2303 of this subtitle. #### Section 9-2303 The Commonwealth of Virginia, the State of Maryland, the District of Columbia, and the City of Baltimore, hereinafter "Signatories," hereby enter into an interstate compact, as set forth below, for the purpose of hosting the 2012 Olympic Games. This interstate compact shall be known and may be cited as the Chesapeake Regional Olympic Games Authority Act. Article I. Findings. The Maryland General Assembly finds that: (1) For some time now, the State of Maryland (including the City of Baltimore), the District of Columbia, and the Commonwealth of Virginia, through the nonprofit organization known as the Washington/Baltimore Regional 2012 Coalition (WBRC 2012), have been actively engaged in national competition to win the U.S. Candidate City designation and, subsequently, the Host City designation and the right to host the 2012 Olympic Games. (2) Hosting the Olympic Games will provide several major, lasting, and unique benefits for all of the citizens of the Chesapeake region, including: (a) Direct, positive economic impact on our regional economy; (b) An opportunity to showcase our region to the world; (c) A catalyst for regional action; and (d) A renewed sense of pride along with a tangible legacy (e.g. new and improved venues and enhanced transportation infrastructure). (3) Independent economic studies show that preparing for and hosting the Olympic Games will have a positive economic impact on the region, including: (a) Direct and indirect spending in excess of $5,000,000,000; (b) The creation of approximately 70,000 jobs; (c) Increased tax revenues resulting from Olympic related economic activity in excess of $130,000,000, without raising or creating any new taxes; and (d) A lasting improvement in the region's competitive position within the travel/tourism industry, as well as the region's ability to attract new businesses. (4) The citizens of the region have responded positively to WBRC 2012's efforts and solidly embraced the cause to host the Olympic Games, expressed in part by the endorsement of scores of local business, civic, governmental, academic, and amateur sports organizations, and by survey results that show: (a) 82% of the region's residents support the effort to bring the 2012 Olympic Games to this area; and (b) 86% of area residents believe that the Olympic Games will bring substantial economic benefits to our region. (5) Through the submission of the region's official bid proposal to the United States Olympic Committee (USOC) on December 15, 2000, WBRC 2012 reached a milestone in the process of capturing the Olympic Games by providing a 631-page logistical, operational, and financial blueprint for hosting the 2012 Games. (6) The bid proposal highlights the great venues and vistas found in our region and is developed around key principles, including: (a) Building less, not more; (b) Utilizing mass transit; and (c) Protecting the environment. (7) In addition to the region's bid proposal, the USOC and the International Olympic Committee (IOC) require certain government guarantees and commitments in conjunction with hosting the 2012 Olympic Games, should our region win the U.S. Candidate City designation. (8) Our unique regional approach to winning the right to host the Olympic Games creates the added complication of determining which entities will provide the necessary guarantees. (9) It is incumbent upon WBRC 2012 and government leaders to move forward together now to craft the solution that best "lives regionalism" and maximizes the region's chances of winning the 2012 Olympic Games, and reaping the many benefits that come with this honor. (10) Given that all four jurisdictions - Virginia, Maryland, the District of Columbia, and Baltimore - will host a significant number of events and reap substantial benefits, the most effective solution for all four jurisdictions is to enter into a single agreement that gives the USOC (and subsequently the IOC) a single focal point and a united front that reflects the regional nature of our bid. Article II. Purpose. The purpose of this Act is to create a Regional Authority to oversee the conduct of the 2012 Olympic Games, coordinated and managed by the local Organizing Committee for the Olympic Games (OCOG), and to assure that the region's guarantees and commitments accepted in conjunction with hosting the Olympic Games are fulfilled. Article III. Definitions. For the purposes of this Act, the term: (a) "Bid proposal" shall mean the bid formally submitted by WBRC 2012 to the USOC on December 15, 2000; (b) "Host City" shall mean the entity which has been selected by the International Olympic Committee to host the 2012 Olympic Games; (c) "International Olympic Committee" and "IOC" shall mean the International Olympic Committee, a body corporate under international law created by the Congress of Paris of 23rd June, 1894, and having perpetual succession; (d) "Olympic Games" shall mean any Olympic Games sponsored and governed by the International Olympic Committee and any other educational, cultural, athletic, or sporting events related or preliminary thereto; (e) "Organizing Committee for the Olympic Games," and "OCOG" shall mean the Committee formed by WBRC 2012 to organize and conduct the Olympic Games, if WBRC 2012 is selected by the IOC as the "Host City" in 2005; (f) "Regional Authority" shall mean the Chesapeake Regional Olympic Games Authority; (g) "Signatories" shall mean the Commonwealth of Virginia, the State of Maryland, the District of Columbia, and the City of Baltimore; (h) "United States Olympic Committee" and "USOC" shall mean the United States Olympic Committee, incorporated by Act of Congress on September 21, 1950, and having perpetual succession; (i) "U.S. Candidate City" shall mean the entity which has received the United States Olympic Committee's endorsement to submit to the IOC the sole bid from the United States for the hosting of the 2012 Olympic Games; and (j) "WBRC 2012" shall mean Washington/Baltimore Regional 2012 Coalition, a not for profit corporation organized under the laws of the State of Maryland, and its successors. Article IV. Creation of the Regional Authority. The Signatories hereby provide the mechanism for the creation and termination of the "Chesapeake Regional Olympic Games Authority," hereinafter "Regional Authority," which shall be an instrumentality of the District of Columbia, the Commonwealth of Virginia, the State of Maryland, and the City of Baltimore, and shall have the powers and duties set forth herein, and those additional powers and duties conferred upon it by subsequent actions of the Signatories: (a) The Regional Authority shall come into existence by the force of this Act when and if, and only if, the IOC awards the 2012 Olympic Games in year 2005 to WBRC 2012, as the U.S. Candidate City and the official representative of the Maryland, Virginia, District of Columbia, and Baltimore region; and (b) The Regional Authority shall, if ever brought into existence, cease to exist by the force of this Act on January 1, 2014, unless extended by substantially similar future legislation enacted by each of the Signatories; and (c) Until such time as the Regional Authority may be triggered into existence, the combined signatures of the Governors of Virginia and Maryland, and the Mayors of the District of Columbia and the City of Baltimore, on any and all documents necessary and appropriate to the pursuit of the 2012 Olympic Games shall be deemed binding on future actions of the Regional Authority. For the purposes of this subsection: (i) The above referenced signatures may be on the same document, on separate but materially and substantially similar documents, or any combination thereof; and (ii) No individual signature shall be deemed effective until such time as all four above referenced signatures are obtained. Article V. Regional Authority Composition; Terms of Service; Order of Business; Accounting. (1) (a) The Regional Authority shall be composed of 11 "voting members," as follows: (i) The State of Maryland shall be entitled to three voting members, to be appointed by the Governor; (ii) The Commonwealth of Virginia shall be entitled to three voting members, to be appointed by the Governor; (iii) The District of Columbia shall be entitled to three voting members, to be appointed by the Mayor; (iv) The City of Baltimore shall be entitled to one voting member, to be appointed by the Mayor; and (v) The Washington/Baltimore Regional 2012 Coalition, a not for profit corporation created for the sole purpose of bringing the Olympic Games to the region, or the OCOG, shall be entitled to one voting member, to be appointed in a manner consistent with its usual procedure; (b) The Regional Authority shall cause to be formed a Regional Authority Advisory Committee, which shall be comprised of representatives ("advisory members") from each of the local jurisdictions substantially impacted by hosting the Olympic Games in the region, in a manner to be determined by the Regional Authority; (c) Reasonable efforts should be made to ensure that appointments of voting members and advisory members: (i) Are residents of the regional community with relevant and useful experience, and with sufficient time to devote to the duties of the Regional Authority, to help facilitate the successful hosting of the Olympic Games; (ii) Reflect the geographical diversity inherent in the regional nature of WBRC 2012's bid proposal; and (iii) Reflect the cultural, ethnic, and racial diversity inherent in the Chesapeake Region; and (d) Voting members shall not be financially compensated for their service on the Regional Authority; such service shall be considered voluntary. Voting members may be reimbursed by the Regional Authority for normal and customary expenses incurred in the performance of their duties. (2) The terms of the voting members of the Regional Authority shall be as follows: (a) The initial terms of office of the voting members shall be 2 years from the date of appointment, and all subsequent terms of office of the voting members shall be for 2 years. Each voting member shall hold office until his or her successor shall be appointed and duly qualified. Any voting member of the Regional Authority may succeed himself or herself; and (b) All vacancies in the membership of the voting members of the Regional Authority, whether caused by expiration of term of office, death, resignation, or otherwise, shall be filled in the same manner as that membership was originally filled. The term of any voting member, appointed to fill an unexpired term, shall be for the remainder of the term. (3) The Regional Authority shall elect from its membership a chairman, a vice chairman, a secretary, and a treasurer. Such officers shall serve for such terms as shall be prescribed by resolution of the Regional Authority or until their successors are elected and qualified. No voting member of the Regional Authority shall hold more than one office on the Regional Authority. (4) The Regional Authority shall hold meetings in accordance with the following: (a) Regular meetings of the Regional Authority shall be held on such dates and at such time and place as shall be fixed by resolution of the Regional Authority; (b) Special meetings of the Regional Authority may be called by resolution of the Authority, by the chairman or vice chairman, or upon the written request of at least three voting members of the Regional Authority; (c) Written notice of all meetings shall be delivered to each voting member, not less than 3 days prior to the date of such meeting in the case of regular meetings and not less than 24 hours in the case of special meetings; (d) Each voting member should make all reasonable efforts to be in attendance at meetings called by the Regional Authority; and (e) A majority of the voting members of the Regional Authority in office shall constitute a quorum. A majority of the quorum is empowered to exercise all the rights and perform all the duties of the Regional Authority and no vacancy on the Regional Authority shall impair the right of such majority to act. If at any meeting there is less than a quorum present, a majority of those present may adjourn the meeting to a fixed time and place, and notice of such time and place shall be given in accordance with subsection (c) of this section, provided that if the notice period under subsection (c) of this section cannot reasonably be complied with, such notice, if any, of such adjourned meeting shall be given as is reasonably practical. (5) The Regional Authority shall establish rules and regulations for its own governance, not inconsistent with this Act. (6) The Regional Authority shall: (a) Make provision for a system of financial accounting and controls, audits, and reports. All accounting systems and records, auditing procedures and standards, and financial reporting shall conform to generally accepted principles of governmental accounting. All financial records, reports, and documents of the Regional Authority shall be public record and open to public inspection under reasonable regulations prescribed by the Regional Authority; and (b) Adopt a fiscal year, establish a system of accounting and financial control, designate the necessary funds for complete accountability, and specify the basis of accounting for each such fund. The Regional Authority shall cause to be prepared a financial report on all funds at least quarterly and a comprehensive report on the fiscal operations and conditions of the Regional Authority annually. Article VI. Compliance with Local Law. The Regional Authority shall make every effort to comply with the local laws of each of the Signatories to this Act, regarding disclosure, appointment, and open meetings. Article VII. Funding of the Regional Authority. (1) The OCOG will provide reasonable funds for the operation of the Regional Authority and the conduct of its business in accordance with the provisions of this Act. (2) For the purposes of this article, payment of any insurance premiums incurred by the Regional Authority under the authority granted to it by Article VIII shall not be considered operations funds referred to in subsection 1 of this article. The OCOG shall pay only such insurance premiums as are reasonable. (3) The OCOG shall not be responsible for any financial liability that the Regional Authority may incur under Article VIII of this Act. (4) The Regional Authority shall submit to the OCOG a planned budget for the Regional Authority's next fiscal year, adopted consistent with Article V 6 (b) of this Act, no less than 90 days before the beginning of the next fiscal year. Article VIII. Regional Authority Oversight of the Organizing Committee for the Olympic Games; Additional Powers. (1) The Regional Authority, in recognition of its oversight responsibility over the OCOG, shall have access to: (a) The quarterly financial statements of the OCOG; (b) The annual business plans of the OCOG; and (c) All other OCOG documents necessary to achieve its oversight purpose. (2) The Regional Authority shall have the power to enforce OCOG budgetary and planning changes when: (a) Review by the Regional Authority of the OCOG financial statements, annual business plans, or other documents contemplated in Article VIII 1 of this Act suggests: (i) Economic shortfalls that would possibly trigger the Regional Authority's liability outlined in Article VIII 3 of this Act; or (ii) The OCOG will fail to host the Olympic Games in a manner that would satisfy the requirements of the USOC or the IOC; and (b) Such changes are supported by a majority of the voting members of the Regional Authority, notwithstanding the quorum requirements of Article V 4 (e) of this Act. (3) The Regional Authority, in recognition of its duties as overseer of the OCOG, shall: (a) Be bound by the terms of, cause the OCOG to perform, and guaranty performance of the OCOG's obligations under all documents necessary and appropriate to the pursuit of the Olympic Games; (b) Certify the OCOG's performance of such obligations as requested by the USOC from time to time; (c) Accept liability for the OCOG, if any, as far as required by all documents necessary and appropriate to the pursuit and hosting of the Olympic Games, provided, however, that: (i) With regard to third-party tort liabilities, the OCOG will both indemnify the State against any and all such claims and provide that the State be named as an additional insured on all appropriate insurance policies, and, in any event, nothing contained herein shall in any way modify the State's existing liability limitation; (ii) With regard to all other liabilities arising out of this subsection, the OCOG agrees to hold the State harmless and indemnify the State for any such losses; and (iii) Should the State incur any liabilities, the liabilities shall count against the total limit (or cap) on the State's liabilities as noted in section (d) of this article and Article IX 1 below; and (d) Accept liability, if any, with the OCOG, for any financial deficit of the OCOG, or the Olympic Games, as follows: (i) The OCOG shall be responsible for any amount up to $25 million; (ii) The Regional Authority shall be liable for any amount in excess of $25 million, but not to exceed an additional $175 million; and (iii) Except as set forth in existing applicable law, the OCOG and the Regional Authority shall not be limited in their choice of funding sources for covering possible financial losses, including but not limited to the purchase of insurance, if commercially available and reasonably priced. (4) The Regional Authority, in its financial oversight and safeguard role, shall ensure that: (a) No legacy programs, funds, or accounts shall be funded from any of the proceeds of the 2012 Olympic Games until all budgetary and operational financial obligations of the OCOG and the Regional Authority for hosting the Olympic Games are first met; and (b) No liability for any financial deficit resulting from the 2012 Olympic Games shall accrue to the Regional Authority (or the Signatories) until all budgetary and/or operational financial surpluses of the OCOG, if any, are applied to all outstanding financial obligations of the OCOG and the Regional Authority, if any, accrued exclusively in connection with hosting the Olympic Games. (5) The Regional Authority, in order to facilitate its oversight responsibility over the OCOG, shall have the additional powers: (a) To sue and be sued in contract and in tort; (b) To complain and defend in all courts; (c) To implead and be impleaded; (d) To enter into contracts; (e) To hire appropriate staff; and (f) Any additional powers granted to it by subsequent legislation. Article IX. Indemnification. (1) Any liability incurred by the Regional Authority, not covered by insurance under Article VIII 3 (d)(iii), shall be further indemnified by the Signatories of this Act, in proportion to the relative economic benefit currently expected to accrue to each Signatory from hosting the Olympic Games, as follows: (a) The State of Maryland, subject to appropriation, shall be liable for 53%; (b) The Commonwealth of Virginia shall be liable for 19%; and (c) The District of Columbia shall be liable for 28%. (2) Each of the Signatories to this Act may provide for its share of any possible liability in any manner it may choose, as befits each Signatory's independent commitment. Article X. Commitments of Signatories. As appropriate to its individual jurisdiction and specific role in hosting the 2012 Olympic Games, each Signatory agrees to: (a) Ensure that necessary facilities are built and transportation infrastructure improvements take place, including government funding as appropriate; (b) Provide access to existing state/city-controlled facilities and other important resources as specified in WBRC 2012's bid proposal, in accordance with applicable law and contractual obligations; and (c) Provide adequate security, fire protection, and other government related services at a reasonable cost to ensure for the safe and orderly operation of the Olympic Games. Article XI. Effective Dates. None of the duties or responsibilities encompassed in this legislation shall have effect until substantially similar legislation is enacted by each of the Signatories, at which time this legislation shall immediately be effective. ### Subtitle 24. Office of the Deaf and Hard of Hearing #### Section 9-2401 (a) In this subtitle the following words have the meanings indicated. (b) "American Sign Language" means a visual-spatial method of communication that is a distinct language involving the hands, arms, facial markers, and body movements to communicate with others, including through the conveyance of thoughts, words, emotions, and grammatical information. (c) "Behavioral health setting" means a setting that provides: (1) psychiatric or psychological assessment or screening; (2) group or individual psychotherapy, counseling, or treatment; or (3) rehabilitation services for substance use disorders, addictive disorders, mental disorders, or a combination of these disorders. (d) "Board" means the State Board of Sign Language Interpreters within the Office. (e) "Council" means the Maryland Advisory Council on Deaf, Deafblind, and Hard of Hearing Individuals. (f) (1) "Deaf and hard of hearing individuals" means those residents of Maryland who have a partial or complete loss of hearing. (2) "Deaf and hard of hearing individuals" includes individuals who are deaf, hard of hearing, deafblind, and late-deafened. (g) "Deafblind" means those residents of Maryland who have concomitant vision and hearing loss. (h) "Director" means the Director of the Office. (i) "Fund" means the Sign Language Interpreters Fund. (j) "Heritage signer" means an individual who used American Sign Language as a primary language in childhood. (k) "Legal setting" includes: (1) court proceedings; (2) attorney-client conferences; (3) investigations by law enforcement; (4) depositions; (5) witness interviews; (6) real estate settlements; and (7) administrative and legislative hearings. (l) "License" means a license issued under Part III of this subtitle to provide sign language interpretation services. (m) "Medical setting" includes: (1) an acute care hospital; (2) an urgent care center; (3) an outpatient clinic; (4) short-term care facilities; (5) long-term care facilities; (6) a physician's office; and (7) home health care. (n) "Nationally or regionally recognized certification" means: (1) a certification issued and recognized by: (i) the National Association of the Deaf (NAD); (ii) the Registry of Interpreters for the Deaf (RID); or (iii) the Board of Evaluation for Interpreters (BEI); or (2) any other certification issued by a national or regional organization that is recognized by the Board. (o) "Office" means the Office of the Deaf, Deafblind, and Hard of Hearing. (p) (1) "Provide sign language interpretation services" means to convey the meaning of a message that is expressed in: (i) an oral or signed language by rendering the message in American Sign Language; or (ii) American Sign Language by rendering the message in an oral or signed language. (2) "Provide sign language interpretation services" includes providing sign language interpretation services in a video remote interpreting setting. (q) "Restorative justice program" means a program designed to repair harm caused to all individuals involved in a crime through mediation, dialogue, or group conferencing between a licensee and any aggrieved party or complainant. (r) "School setting" means a setting in which the following are provided: (1) educational programs or services offered by a public or nonpublic school; or (2) career training programs for secondary education students that are regulated by the State Department of Education. (s) "Sign language interpreter" means an individual who is licensed by the Board to provide sign language interpretation services. (t) "Video Relay Service" means the federally reimbursed and regulated program established to enable phone calls between users of American Sign Language and individuals who do not use American Sign Language by videoconferencing technology and the use of the services of a remotely located sign language interpreter. (u) (1) "Video remote interpreting setting" means providing sign language interpretation services by videoconferencing in which the participants are in one location and the interpreter is in a separate location. (2) "Video remote interpreting setting" does not include Video Relay Service. #### Section 9-2402 (a) In the Office of the Governor, there is an Office of the Deaf, Deafblind, and Hard of Hearing. (b) (1) The head of the Office is the Director. (2) (i) The Director is appointed by the Governor with the advice and consent of the Senate. (ii) The Director serves at the pleasure of the Governor and is responsible directly to the Governor. (3) The Director shall be: (i) a deaf or hard of hearing person; and (ii) knowledgeable and experienced with issues affecting deaf and hard of hearing individuals. (4) The Director is entitled to the salary provided in the State budget. (c) (1) The Office shall: (i) advise the Governor on all matters assigned to the Office; and (ii) carry out the Governor's policies on the matters assigned to the Office. (2) The Director shall: (i) manage the operation of the Office and establish guidelines and procedures to promote the orderly and efficient operation of the Office; and (ii) adopt regulations necessary to carry out the provisions of this subtitle. (3) Subject to the provisions of this subtitle, the Director may establish, reorganize, or consolidate areas of responsibility in the Office as necessary to fulfill the responsibilities assigned by the Director. (d) The Office shall be given adequate staff and funding to carry out its duties. #### Section 9-2403 (a) The Office shall be responsible for promoting the general welfare of deaf and hard of hearing individuals in the State. (b) The responsibilities of the Office shall include: (1) providing, advocating, and coordinating the adoption of public policies, regulations, and programs that will benefit deaf and hard of hearing individuals; (2) improving access to communication and to existing services and programs for deaf and hard of hearing individuals; (3) providing direct services to deaf and hard of hearing individuals as appropriate; (4) increasing public awareness of the needs and issues affecting deaf and hard of hearing individuals; (5) working with State and local agencies to ensure access for deaf and hard of hearing individuals to safety and emergency services; (6) developing a referral service for deaf and hard of hearing individuals; (7) serving as an information clearinghouse on the needs and issues affecting deaf and hard of hearing individuals; (8) working to increase access for deaf and hard of hearing individuals to educational, health, and social opportunities; (9) working with private organizations, the federal government, and other units of State government to promote economic development for deaf and hard of hearing individuals; (10) working to eliminate the underemployment and unemployment of deaf and hard of hearing individuals; (11) providing a network through which services provided by State and federal programs serving deaf and hard of hearing individuals can be channeled; (12) promoting compliance with State, local, and federal laws and policies protecting and serving deaf and hard of hearing individuals; (13) providing appropriate staff to assist the Board in carrying out its duties; and (14) providing a nomination process for Board appointments. (c) The Office shall hold at least two public town hall meetings each year to receive public comments on: (1) the quality of State services and programs affecting deaf and hard of hearing individuals; (2) the functions and operations of the Office; and (3) any other issues that affect deaf and hard of hearing individuals, including those specified in subsection (b) of this section. (d) The Office shall: (1) help facilitate the appropriate delivery of State, local, and other public services to deaf and hard of hearing individuals; (2) advise other units of State government and the General Assembly on the needs of deaf and hard of hearing individuals; (3) subject to appropriations in the State budget, provide any reasonable resources that any other unit of State government requests to serve or assist deaf and hard of hearing individuals; and (4) to the greatest extent possible, in order to avoid any duplication of effort, coordinate with other units of the State and the federal government the services provided to deaf and hard of hearing individuals. #### Section 9-2404 (a) There is a Maryland Advisory Council on the Deaf, Deafblind, and Hard of Hearing. (b) (1) The Council consists of members appointed by the Governor, with the advice and consent of the Senate. (2) Of the Council members, at least five of the members shall be deaf and hard of hearing individuals. (c) Of the Council members: (1) one shall be the State Superintendent or a designee from the State Department of Education; (2) one shall be the Secretary or a designee from the Maryland Department of Health; (3) one shall be the Secretary or a designee from the Department of Human Services; (4) one shall be the Secretary or a designee from the Department of Transportation; (5) one shall be from the Commission on Civil Rights; (6) one shall be the Secretary or a designee from the Maryland Department of Labor; (7) one shall be the Secretary or a designee from the Department of Housing and Community Development; (8) one shall be the Superintendent or a designee from the Maryland School for the Deaf; (9) one shall be the Secretary or a designee from the Department of Aging; (10) one shall be the Secretary or a designee from the Department of Disabilities; and (11) nine shall be from the general public. (d) (1) The nine members from the general public shall be chosen from different geographical areas of the State. (2) Of the nine members from the general public: (i) five shall be deaf and hard of hearing individuals; (ii) one shall be a private citizen with special knowledge or expertise relating to services to deaf and hard of hearing individuals; (iii) one shall be a parent of a deaf or hard of hearing child; (iv) one shall be from a private agency providing services to deaf and hard of hearing individuals; and (v) one shall be a person with special knowledge or expertise relating to services to individuals who are deafblind. #### Section 9-2405 (a) The term of a member of the Council is 3 years. (b) The terms of the members are staggered as required by the terms provided for members of the Council on October 1, 2001. (c) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (d) 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. (e) A member may not serve consecutively more than two 3-year terms. (f) Any member who fails to attend at least 50 percent of the regularly scheduled meetings during any 12-month period shall be considered to have resigned. #### Section 9-2406 The Council shall: (1) advise the Office in carrying out its duties; (2) review statewide activities for deaf and hard of hearing individuals, including reviewing reports and publications of committees and commissions; (3) foster coordination of and support for programs for deaf and hard of hearing individuals; (4) study ways to maximize the use of the facilities and services available to deaf and hard of hearing individuals; (5) hold: (i) at least quarterly, regularly scheduled meetings; and (ii) open meetings to provide direct communication, between deaf and hard of hearing individuals and private and public organizations and the general public, about programs and services for and needs of deaf and hard of hearing individuals; and (6) assist any local governing body of a county to establish a local advisory council for deaf and hard of hearing individuals in the county for purposes of implementing the provisions of the Americans with Disabilities Act of 1990 and other relevant State and federal laws. #### Section 9-2407 On or before January 1, 2002, and annually thereafter, the Director shall submit to the Governor and, in accordance with Sec. 2-1257 of this article, to the members of the General Assembly, a report on: (1) the activities of the Office; (2) the status of programs and services facilitated by the Office; (3) the activities of the Board, including: (i) the number of sign language interpreters licensed by the Board; (ii) the number of licensed sign language interpreters in each county: (1) determined by the licensee's home address; or (2) the licensee's county or region of planned employment, if known; and (iii) the number of complaints received by the Board, differentiated by the type of complaint; (4) statistics on compliance with State and federal laws related to deaf and hard of hearing individuals; and (5) recommendations for improved delivery of services for deaf and hard of hearing individuals. #### Section 9-2410 There is a State Board of Sign Language Interpreters in the Office. #### Section 9-2411 (a) (1) The Board consists of 11 members appointed by the Governor. (2) Of the 11 members: (i) one shall be a member of the Maryland Association of the Deaf; (ii) one shall be a deafblind individual; (iii) one shall be a deaf individual; (iv) three shall be interpreters for the deaf who hold a license under this part; (v) one shall be an interpreter for the deaf who holds a license under this part and owns or is affiliated with an interpreter agency; (vi) two shall be affiliated with an entity that operates and implements deaf services in an educational, legal, or medical setting; (vii) the Secretary of Disabilities, or the Secretary's designee, as an ex officio nonvoting member; and (viii) the Secretary of Labor, or the Secretary's designee, as an ex officio nonvoting member. (3) (i) The Governor shall appoint the members from a list of names submitted from a nomination process established by the Office. (ii) The nomination process shall include outreach to underrepresented deaf, deafblind, and interpreter communities. (iii) To the extent practicable, the members appointed under this section shall reflect the racial and geographic diversity of the State. (b) Each member shall: (1) be a resident of the State; and (2) except for the ex officio nonvoting members and the members under subsection (a)(2)(vi) of this section, be proficient in American Sign Language. (c) Before taking office, each member appointed to the Board shall take the oath or affirmation required by Article I, Sec. 9 of the Maryland Constitution. (d) (1) The term of a Board member is 2 years, beginning on the date of appointment. (2) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (3) A member appointed after a term has begun serves only for the remainder of the term and until a successor is appointed and qualifies. (4) A member may not serve more than three consecutive full terms. (e) (1) The Governor may remove a member for incompetence, misconduct, neglect of duties, two or more successive unexcused absences, or other sufficient cause. (2) The Governor shall remove a member who: (i) ceases to meet the requirements under which the member was appointed under subsection (a) of this section; or (ii) fails to attend at least 50% of the regularly scheduled meetings of the Board during any 12-month period. #### Section 9-2412 (a) (1) The Board shall elect the chair from among its members. (2) The term of the chair is 2 years. (b) (1) The Board shall meet at least once each quarter at the times and places set by the Board. (2) The Board may call special meetings at the request of: (i) the chair; (ii) the Director; or (iii) a majority of the members of the Board. (c) A majority of the voting members is a quorum. (d) A member of the Board: (1) may not receive compensation as a member of the Board; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. #### Section 9-2413 To enforce the provisions of this part, the Board may: (1) in consultation with the Office, conduct investigations and hold hearings on any matter covered by this title, at any time and place in the State; (2) administer oaths; (3) examine witnesses; and (4) receive evidence. #### Section 9-2414 (a) The Board shall: (1) license qualified individuals to provide sign language interpretation services; (2) on or before July 1, 2027, establish and publish licensing requirements for sign language interpreting in all settings; (3) provide technical assistance to license applicants and other interested persons; (4) promote the profession of sign language interpreting, including providing workshops and trainings to raise public awareness and to facilitate professional development; and (5) perform any other duties assigned by the Director. (b) In addition to any duties set forth elsewhere in this subtitle and with the support of the Office, the Board shall: (1) administer the provisions of this part; (2) adopt bylaws for the conduct of its proceedings; (3) adopt a seal; (4) keep a record of its proceedings; (5) keep a file on each applicant for a license; (6) establish a visiting sign language interpreter registry; (7) develop and maintain a website that shall include: (i) a portal to accept license applications and related documentation, complaints, and registrations of visiting sign language interpreters; and (ii) a publicly searchable database of sign language interpreters; and (8) reasonably seek additional funding sources. (c) In addition to any powers set forth elsewhere, the Board may adopt regulations to carry out the provisions of this part. #### Section 9-2415 (a) After completion of the report required under subsection (b) of this section, the Board may establish criteria for the development of portfolios and separate requirements in the following specialist areas: (1) legal settings; (2) medical settings; (3) educational settings; (4) behavioral health settings; (5) language pairs other than American Sign Language and spoken English; (6) conference interpreting; (7) tactile and low-vision sign language interpretation services; (8) intralinguistic translations and sign language interpretation; and (9) any other specialist areas determined to be necessary by the Board. (b) (1) At least 60 days before the Board promulgates regulations to establish criteria under subsection (a) of this section, the Board shall report to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the Senate Committee on Education, Energy, and the Environment and the House Government, Labor, and Elections Committee, on: (i) how national and regional certification standards define or limit specialist areas; (ii) the number of interpreters in the State and neighboring states certified in specialist areas; (iii) an evaluation of how separate requirements for specialist areas may impact access to interpreter services in each setting; and (iv) recommendations on whether, and in what form, specialty licensure requirements should be implemented in the State. (2) In completing the report under paragraph (1) of this subsection, the Board shall consult with stakeholders, including: (i) the Maryland Department of Health; (ii) the Maryland Association of the Deaf; (iii) the Maryland Hospital Association; (iv) interpreters and interpreter agencies; (v) the Maryland Judiciary; (vi) the Maryland State Department of Education; (vii) the Maryland State Education Association; (viii) the Public Schools Superintendents' Association of Maryland; (ix) the Maryland Association of Boards of Education; and (x) the Maryland Department of Disabilities. (3) The Office shall provide staff to assist the Board in completion of the report required under this subsection. (c) The Board shall adopt regulations to: (1) govern sign language interpretation services provided in a video remote interpreting setting; (2) establish licensing and certification standards of interpreting agencies that do business in the State; (3) (i) allow deaf and hard of hearing individuals to indicate whether they prefer sign language interpretation services being provided in a video remote interpreting setting or through in-person interpreting; and (ii) require public entities to provide reasonable accommodations to support the preferences indicated by the deaf and hard of hearing individuals under item (i) of this item, to the extent practicable and in compliance with 28 C.F.R. Sec. 35.160 and the federal Americans with Disabilities Act of 1990; and (4) provide sign language interpretation services in a video remote interpreting setting. #### Section 9-2416 (a) There is a Sign Language Interpreters Fund. (b) The Board shall set by regulation reasonable fees for the issuance and renewal of licenses and other services. (c) The Board shall publish in its rules and regulations the fee schedule set by the Board. (d) (1) The Board shall pay all fees collected under this part to the Comptroller. (2) The Comptroller shall distribute the fees to the Fund. (e) The Fund shall be used exclusively to cover the actual documented direct and indirect costs of fulfilling the statutory and regulatory duties of the Board as provided by the provisions of this part, including: (1) the development of programs that will assist in the licensure of marginalized interpreters, including: (i) Black, Indigenous, or Persons of Color (BIPOC) signers; (ii) heritage signers; and (iii) deaf individuals; (2) the development of mentorship programs for individuals who provide sign language interpretation services; and (3) applicants experiencing financial hardship in the payment of licensing fees. (f) The Director shall administer the Fund. (g) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (h) The Fund consists of: (1) revenue distributed to the Fund under subsection (b) of this section; (2) money appropriated in the State budget for the Fund; and (3) any other money from any other source accepted for the benefit of the Fund. (i) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any investment earnings of the Fund shall be credited to the General Fund of the State. (j) Expenditures from the Fund may be made only in accordance with the State budget. #### Section 9-2417 The Board exercises its powers, duties, and functions subject to the authority of the Governor. #### Section 9-2418 (a) Except as otherwise provided in this part, an individual shall be licensed by the Board before the individual may: (1) provide sign language interpretation services in the State; or (2) represent to the public, by description of services or use of a title or designation, that the individual is authorized to provide sign language interpretation services in the State. (b) This section does not apply to an individual who: (1) provides sign language interpretation services as part of a supervised internship or practicum for an accredited institution of higher education and does not provide sign language interpretation services in the following settings: (i) a behavioral health setting, unless the individual is accompanied by a licensed sign language interpreter; (ii) an emergency medical setting, unless the individual is accompanied by a licensed sign language interpreter; (iii) a legal setting; or (iv) a school setting, unless the individual is accompanied by a licensed sign language interpreter; (2) provides sign language interpretation services as part of a Video Relay Service; (3) holds a nationally or regionally recognized certification in sign language interpreting and does not provide sign language interpretation services in the State for more than 80 hours each calendar year, if the individual: (i) self-certifies eligibility for this exemption; (ii) notifies the Board of each sign language interpreting assignment within 10 days after completing the assignment; and (iii) satisfies any other criteria established by the Board; (4) provides sign language interpretation services as an uncompensated volunteer and in a setting in which a sign language interpreter is not otherwise required by law; (5) provides sign language interpretation services to prevent undue harm in the event of an emergency until a licensed sign language interpreter becomes available; or (6) interprets between a pair of sign languages for which there is no nationally or regionally recognized certification. #### Section 9-2419 An applicant shall submit to the Board: (1) a completed application on the form provided by the Board; (2) payment of a nonrefundable application fee set by the Board; and (3) (i) proof of a valid nationally or regionally recognized certification or other certification approved by the Board; or (ii) documentation of satisfactory completion of any other qualifications established by the Board. #### Section 9-2420 (a) Subject to the provisions of this section, the Board may waive any requirement of this part for an applicant who is licensed to provide sign language interpretation services in another state. (b) The Board shall grant a waiver under this section only if the applicant: (1) pays to the Board: (i) the nonrefundable application fee set by the Board; and (ii) the license fee set by the Board; and (2) provides satisfactory evidence that, at the time the applicant was licensed in the other state, the applicant was required to meet the qualifications for licensure that were substantially equivalent to the qualifications in the State. (c) The Board may grant a waiver under this section only if the state in which the applicant is licensed waives the qualifications of licensees of the State to a similar extent as the State waives the qualification requirements for individuals licensed in that state. #### Section 9-2421 (a) If an applicant qualifies for a license under this part, the Board shall send the applicant a notice that states that: (1) the applicant has qualified for a license; and (2) on receipt of the license fee set by the Board, the Board will issue a license to the applicant. (b) On payment of the license fee, the Board shall issue a license to each applicant who meets the requirements of this part. (c) A license issued under this section is nontransferable. (d) A licensee shall notify the Board in writing of any change in the licensee's name or address within 60 days after the change. #### Section 9-2422 While a license is in effect, it authorizes the licensee to provide sign language interpretation services within the scope of: (1) the nationally or regionally recognized certification or other approved certification held by the licensee; or (2) any other limitations determined by the Board on the license. #### Section 9-2423 (a) Unless renewed by a licensee, a license expires on the date set by the Board. (b) Before a license expires, the licensee periodically may renew the license for an additional term, if the licensee: (1) otherwise is entitled to be licensed; (2) pays to the Board the license fee set by the Board; and (3) submits to the Board a renewal application on the form that the Board provides. (c) The Board shall renew the license of each licensee who meets the requirements of this section. (d) The Board may adopt regulations to require a licensee to demonstrate continuing professional competency as a condition of renewal. #### Section 9-2424 The Board shall reinstate the license of an individual who for any reason has failed to renew the license if the individual: (1) applies to the Board for reinstatement of the license within the period of time established by the Board; (2) meets the renewal requirements of Sec. 9-2423 of this subtitle; and (3) pays to the Board the renewal fee and the reinstatement fee set by the Board. #### Section 9-2425 (a) Subject to the provisions of this section, the Board shall issue a provisional license to provide sign language interpretation services to an individual who has: (1) taken and passed a nationally or regionally recognized knowledge and ethics exam or other exam approved by the Board; and (2) satisfied other requirements established by the Board. (b) The Board may issue a provisional license to an individual who: (1) except as provided in subsection (a) of this section, otherwise qualifies for a license; (2) submits to the Board an application on the form that the Board provides; (3) does not provide sign language interpretation services in a setting set forth in subsection (c) of this section; and (4) pays to the Board the application fee set by the Board. (c) While a provisional license is in effect, the license holder may not provide sign language interpretation services in the following settings: (1) a legal setting; (2) except as a part of a formal mentorship, a medical setting, unless the individual is accompanied by a licensed sign language interpreter; or (3) except as a part of a formal mentorship, a behavioral health setting, unless the individual is accompanied by a licensed sign language interpreter. (d) A provisional license to provide sign language interpretation services expires on the third anniversary of its effective date. (e) Subject to the provisions of this subsection, the Board may renew a provisional license for one additional 2-year term, if the license holder: (1) demonstrates to the satisfaction of the Board the individual's continued efforts to achieve nationally or regionally recognized certification or to meet other qualifications established by the Board to qualify for a license under this part; (2) submits to the Board a renewal application on the form that the Board provides; and (3) pays to the Board the renewal fee set by the Board. (f) An individual may not hold a provisional license for more than 5 years. #### Section 9-2426 (a) Subject to the hearing provisions of Sec. 9-2428 of this subtitle, the Board may deny a license to any applicant, reprimand any licensee, suspend or revoke a license, require a licensee to attend an educational course or training, or impose a penalty on a licensee if the applicant or licensee: (1) fraudulently or deceptively: (i) obtains or attempts to obtain a license for the applicant or licensee or for another; (ii) uses a license; or (iii) provides sign language interpretation services after the expiration of a license; (2) is deemed legally incompetent to provide sign language interpretation services; (3) engages in dishonest, unethical, immoral, or unprofessional conduct; (4) uses alcohol or drugs before or during a sign language interpreting assignment, to the extent of being unfit to provide sign language interpretation services; (5) advertises by means of knowingly false or deceptive statements; (6) under the laws of the United States or of any state, is convicted of a felony or a misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to provide sign language interpretation services; (7) is the subject of disciplinary or other administrative action taken against the individual's certification or license to provide sign language interpretation services in another state; or (8) violates any provision of this part or any regulation adopted by the Board under this part. (b) (1) A licensee whose license is suspended or revoked under subsection (a) of this section shall return the license to the Board in the manner required by the Board. (2) An individual who violates paragraph (1) of this subsection may be subject to additional disciplinary action by the Board. #### Section 9-2427 (a) Except as provided under subsection (d) of this section, the Board shall commence disciplinary proceedings under Sec. 9-2426 of this subtitle on receipt of a complaint submitted to the Board against an applicant or a licensee. (b) (1) A complaint shall state specifically the facts on which the complaint is based. (2) If the complaint is made by any person other than a member of the Board, the complaint shall be made under oath by the person who submits the complaint. (c) (1) If the Board finds that a complaint alleges facts that are adequate grounds for action under Sec. 9-2426 of this subtitle, the Board shall act on the complaint in accordance with Sec. 9-2428 of this subtitle. (2) If the Board does not make a finding under paragraph (1) of this subsection, the Board shall dismiss the complaint. (d) (1) The Board may use a restorative justice program in lieu of taking final action on a complaint under Sec. 9-2426 of this subtitle. (2) The Board shall adopt regulations for the use of restorative justice programs under this subsection. #### Section 9-2428 (a) (1) Except as otherwise provided in Sec. 10-226 of this article and this part, before the Board takes any final action under Sec. 9-2426 of this subtitle, it shall give the individual against whom the action is contemplated an opportunity for a hearing before the Board. (2) A hearing shall be set within a reasonable time, not exceeding 6 months, after the Board brings charges against a licensee. (b) The Board shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of this article. (c) The Board may administer oaths in connection with any proceeding under this section. (d) At least 30 days before the hearing, the hearing notice and a copy of the complaint shall be: (1) served personally on the individual; or (2) mailed to the last known address of the individual. (e) The individual may be represented at the hearing by counsel. (f) If, after due notice, the individual against whom the action is contemplated fails or refuses to appear, the Board may nevertheless hear and decide on the matter. #### Section 9-2429 (a) The Board shall adopt regulations for the reactivation of the license of an individual whose license is suspended under Sec. 9-2426 of this subtitle that require, at a minimum: (1) that the individual demonstrate compliance with all terms and conditions of the suspension order; and (2) payment of a reactivation fee set by the Board. (b) The Board shall adopt regulations for the reinstatement of the license of an individual whose license is revoked under Sec. 9-2426 of this subtitle that require, at a minimum: (1) a period of time set by the Board during which the individual may not apply for reinstatement; and (2) payment of a reinstatement fee set by the Board. #### Section 9-2430 (a) Except as otherwise provided by law, an individual who acquires confidential information in the course of providing sign language interpretation services may not be required to disclose the information in any legal proceeding, trial, or investigation before a governmental unit without the consent of all parties to the sign language interpretation. (b) An individual providing sign language interpretation services holds the same legal privilege as the individual receiving the sign language interpretation services. #### Section 9-2431 (a) Except as otherwise provided in this subtitle, an unlicensed individual may not: (1) provide, attempt to provide, or offer to provide sign language interpretation services in the State unless licensed by the Board; (2) use or attempt to use the license of another individual; or (3) impersonate another individual who holds a license. (b) An individual may report a violation of subsection (a) of this section to the Board within 180 days after the date of the alleged violation if the individual is: (1) a party to the provision of the sign language interpretation services; (2) harmed as a result of the alleged violation; or (3) the guardian of the deaf or hard of hearing individual receiving the sign language interpretation services, if the deaf or hard of hearing individual is a minor or has been appointed a guardian of the person of a disabled person under Sec. 13-705 of the Estates and Trusts Article. (c) (1) If the Board finds a violation of subsection (a) of this section, the Board shall provide written notice to the individual specifying the violation found. (2) The Board may impose a fine not to exceed $500 for each violation. (3) In determining the amount of the fine imposed under paragraph (2) of this subsection, the Board shall consider the severity of the violation and whether the violation constitutes a pattern of improper conduct. #### Section 9-2432 Unless authorized under this part to provide sign language interpretation services, an individual may not represent to the public, by use of a title, by description of services, methods, or procedures, or otherwise, that the individual is authorized to provide sign language interpretation services in the State. #### Section 9-2433 (a) A person who receives sign language interpretation services or is a witness to sign language interpretation services from an unlicensed individual in violation of this part may bring an action in a court of competent jurisdiction seeking an injunction to prohibit the individual from providing sign language interpretation services. (b) (1) In a judicial proceeding under subsection (a) of this section, it is not necessary to show that the person was individually injured by the violation. (2) If the court finds that an individual has violated this subtitle, the court shall: (i) enjoin the individual from providing sign language interpretation services until the violation is corrected; and (ii) report the finding to the Board. (3) An individual who is found by the court to have violated this part is jointly and severally liable to the individual who brought the action for an amount not exceeding $1,000 per incident and all attorney's fees and court costs. #### Section 9-2434 An individual who violates any provision of this part is guilty of a misdemeanor and on conviction is subject to: (1) for a first offense, a fine not exceeding $500 or imprisonment not exceeding 90 days, or both; and (2) for each subsequent violation, a fine not less than $500 and not exceeding $1,000 or imprisonment not exceeding 90 days, or both. #### Section 9-2435 Subject to the evaluation and reestablishment provisions of the Maryland Program Evaluation Act, Part III of this subtitle and all regulations adopted under this part shall terminate and be of no effect after July 1, 2033. ### Subtitle 26. Maryland African American Museum Corporation #### Section 9-2601 (a) In this subtitle the following words have the meanings indicated. (b) "Board" means the Board of Directors of the Maryland African American Museum Corporation. (c) "Corporation" means the Maryland African American Museum Corporation. #### Section 9-2602 (a) There is a Maryland African American Museum Corporation. (b) (1) The purpose of the Corporation is to plan, develop, and manage a Maryland museum of African American history and culture in Baltimore City, in cooperation with and with the active support of the Mayor and City Council of Baltimore, affected State units, and other public and private institutions. (2) The Corporation may carry out its corporate purposes without the consent of any unit of State government. (c) (1) The Corporation is: (i) a body politic and corporate; (ii) a public instrumentality of the State; and (iii) an independent unit in the Executive Branch of State government. (2) The exercise by the Corporation of the powers conferred by this subtitle is an essential public function. #### Section 9-2603 (a) (1) There is a Board of Directors of the Corporation. (2) The Board shall manage the affairs of the Corporation and shall exercise all of its corporate powers. (b) (1) The Board shall consist of 25 members, as follows: (i) the Mayor of Baltimore, serving ex officio, or the Mayor's designee; (ii) one member appointed by the President of the Senate; (iii) one member appointed by the Speaker of the House; and (iv) the following members appointed by the Governor: (1) one representative of Morgan State University, approved by the Board of Regents of the University; (2) one member approved by the Commission on African American History and Culture to provide continuing coordination and cooperation between the Corporation and the Commission and to ensure consistency with the statewide programs and mandates of the Commission; (3) one representative of African American historical or cultural institutions in the State; and (4) nineteen members who have expertise in African American history, culture, museums, or related areas, expertise in fund-raising, or represent the diversity of communities throughout the State that can benefit from the activities of the Corporation. (2) (i) Except as provided in subparagraph (ii) of this paragraph, the members appointed to the Board shall represent the geographic makeup of the State and shall be racially and ethnically diverse. (ii) The Governor may appoint to the Board up to five members from outside the State if necessary to ensure that the membership of the Board satisfies the requirements specified in paragraph (1)(iv)4 of this subsection. (c) A member of the Board: (1) is not entitled to compensation as a member of the Board; but (2) is entitled to reimbursement for expenses in accordance with the Standard State Travel Regulations. (d) (1) The term of an appointed member of the Board is 4 years. (2) Before taking office, each appointee to the Board shall take the oath required by Article I, Sec. 9 of the Maryland Constitution. (3) The terms of members are staggered as required by the terms provided for members of the Board on October 1, 2004. (4) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (5) A member who is appointed after a term has begun serves only for the remainder of the term and until a successor is appointed and qualifies. (e) (1) From among its members, the Board shall elect a chairman, a vice chairman, and a treasurer. (2) A majority of the members then serving on the Board is a quorum. (3) A vacancy in the membership of the Board does not impair the right of a quorum of the Board to exercise the rights and perform the duties of the Corporation. (4) The Board shall appoint an executive committee and may appoint other committees that the Board considers necessary or desirable. #### Section 9-2604 (a) (1) The Board shall appoint an Executive Director who serves at the pleasure of the Board. (2) The Board shall determine the salary of the Executive Director. (b) (1) The Executive Director is the chief administrative officer of the Corporation. (2) The Executive Director shall direct and supervise the administrative affairs and technical activities of the Corporation in accordance with the policies and procedures of the Board. (3) The Executive Director or the Executive Director's designee shall: (i) attend each meeting of the Board, act as secretary to the Board, and keep minutes of Board proceedings; (ii) approve each salary, per diem payment, or other expense of the Corporation, its employees, and consultants; and (iii) perform other duties as directed by the Board in carrying out the purposes of this subtitle. (c) (1) (i) In addition to the Executive Director, the Board shall employ professional and clerical staff necessary to carry out the purposes of this subtitle. (ii) The Board shall establish compensation, holidays, and leave for the staff. (2) The officers and employees of the Corporation are not subject to the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System. (d) The Attorney General shall provide legal counsel to the Corporation and legal services to the museum. (e) The Board may contract with any agent or consultant it considers necessary to carry out the purposes of this subtitle. #### Section 9-2605 The Corporation may: (1) adopt an official seal; (2) sue and be sued, plead and be impleaded, in its own name; (3) maintain offices in the State; (4) appoint museum advisory boards and other advisory boards and committees; (5) adopt bylaws for the regulation of its affairs and the conduct of its business; (6) apply for and accept grants, loans, or assistance of any character from the federal government, State government, a local government, or a private source; (7) enter into any contract or other legal instrument; (8) acquire, construct, develop, manage, market, reconstruct, rehabilitate, improve, maintain, equip, lease as lessor or as lessee, repair, or operate any project in the State; (9) acquire, purchase, hold, lease as lessee, or use a franchise, patent, or license or any real, personal, mixed, tangible, or intangible property or any interest in that property, necessary or convenient for carrying out the purposes of the Corporation; (10) sell, lease as lessor, transfer, or dispose of its property or interests in property; (11) acquire, either directly or by or through any person, State unit, or political subdivision, by purchase or by gift or devise, any land, structure, real property, personal property, right, right-of-way, franchise, easement, or other interest in land, including land lying under water and riparian rights that the Corporation considers necessary or convenient for the construction, improvement, rehabilitation, or operation of a project, on any terms and at any price that the Corporation considers reasonable; (12) enter with the permission of the owner on land, water, or premises for the purpose of making surveys, soundings, borings, and examinations to accomplish any purpose authorized by this subtitle; (13) fix, revise, and collect rates, rentals, fees, and charges for the use of, or for services and facilities provided or made available by, the Corporation; (14) (i) borrow money from any source for any corporate purpose, including working capital for its operations, reserves, or interest; (ii) mortgage, pledge, or otherwise encumber the property and money of the Corporation; and (iii) contract with or engage the services of any person for any financing; (15) exercise all the corporate powers granted to Maryland corporations under the Maryland General Corporation Law; and (16) do all things necessary and convenient to carry out the powers granted by this subtitle. #### Section 9-2606 The Corporation shall: (1) prepare a strategic plan at least once every 5 years that establishes short-range and long-range goals, objectives, and priorities for the museum in support of its mission; (2) report annually to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly on the Corporation's activities during the preceding year, including: (i) the number of students and other types of visitors served; (ii) the number of volunteers and total hours contributed to the operation of the museum; (iii) the amount and type of private and nonstate money donated, pledged, or otherwise provided; and (iv) any recommendations or requests the Corporation considers appropriate to further the mission of the museum; and (3) publish reports and any other material it considers necessary. #### Section 9-2607 Except for the net earnings of the Corporation necessary to pay debt service or implement the Corporation's museum plan, the net earnings of the Corporation shall inure to the benefit of the State and not to any person. #### Section 9-2608 (a) Except as provided in subsection (b) of this section, the Corporation is not required to pay taxes or assessments on its: (1) properties; (2) activities; or (3) revenue derived from its properties or activities. (b) If the Corporation sells or leases land or facilities to a private entity, the land or facilities shall be subject to real property taxes. #### Section 9-2609 (a) The Board shall prepare and implement an operating and a capital budget for the management of its affairs. (b) The Governor may include a grant to the Corporation in the State budget. (c) The Corporation shall support all operating costs, including personnel and retirement costs, from any General Fund allocations, and its other income sources. (d) This section does not restrict the budgetary power of the General Assembly. #### Section 9-2610 (a) (1) The Corporation may provide for the creation, continuation, and administration of the funds that it requires. (2) As the Board directs, money in the funds and other money of the Corporation shall be deposited in a federal or State chartered depository institution that: (i) is insured by the Federal Deposit Insurance Corporation; (ii) has a branch or office in the State that accepts deposits; and (iii) has a total paid-in capital plus surplus of at least $6,000,000. (3) A federal or State chartered trust company may be designated as a depository to receive securities that the Corporation has or owns. (b) Money that the State appropriates to the Corporation, and money that the Corporation is required by the General Assembly to raise for museum construction from sources other than the State, shall be invested in bonds or other obligations: (1) of the United States, the State, a political subdivision of the State, or a unit of the State; or (2) that are guaranteed as to principal and interest by the United States, the State, a political subdivision of the State, or a unit of the State. (c) (1) The Corporation shall adopt a system of financial accounting, controls, audits, and reports. (2) The fiscal year of the Corporation is July 1 to June 30. (d) (1) The Corporation shall select an independent certified public accountant to conduct an audit under this subsection. (2) The accountant: (i) shall be licensed to practice in the State; (ii) shall be experienced and qualified in the accounting and auditing of public bodies; and (iii) may not have a personal interest either directly or indirectly in the fiscal affairs of the Corporation. (3) As soon as practicable after the end of the fiscal year, the accountant shall audit the financial books, records, and accounts of the Corporation. (4) The accountant shall report: (i) the results of its audit, including an unqualified opinion on the financial position of the Corporation's funds; and (ii) the results of the Corporation's financial operations. (5) If the accountant is unable to express an unqualified opinion, the accountant shall: (i) state and explain in detail the reason for any qualifications, disclaimers, or opinions; and (ii) submit recommendations on changes needed to allow an unqualified opinion in the future. (e) The books, records, and accounts of the Corporation are subject to audit by the State. (f) (1) Within the first 90 days of each fiscal year, the Corporation shall submit a report to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly. (2) The report shall include: (i) a complete operating and financial statement covering the Corporation's operations during the preceding fiscal year; and (ii) a summary of the Corporation's activities during the preceding fiscal year. #### Section 9-2611 (a) All debts, claims, obligations, and liabilities of the Corporation, whenever incurred, shall be the debts, claims, obligations, and liabilities of the Corporation only and not of the State, other units of State government, other State instrumentalities, State officers, or State employees. (b) The debts, claims, obligations, and liabilities of the Corporation may not be considered a debt, claim, obligation, or liability of the State or a pledge of its full faith and credit. #### Section 9-2612 (a) Except as otherwise provided in this section, the Corporation is exempt from: (1) Title 3 of the General Provisions Article; (2) Title 2, Subtitles 2, 4, and 6 and Sec. 2-510 of the State Finance and Procurement Article; (3) Title 3 of the State Finance and Procurement Article; (4) Title 4, Subtitles 2 through 7 of the State Finance and Procurement Article; (5) Title 6, Subtitle 1 of the State Finance and Procurement Article; (6) Title 7, Subtitles 1 through 3 of the State Finance and Procurement Article; (7) Title 8, Subtitle 1 of the State Finance and Procurement Article; and (8) Division II of the State Finance and Procurement Article. (b) The Corporation and its officers and employees are subject to the Maryland Public Ethics Law and the State minority business enterprise laws, except as otherwise provided in this subtitle. (c) Before approving the final plans for the museum, the Corporation shall: (1) submit preliminary plans to the City of Baltimore for review; and (2) consider comments from the City of Baltimore on the preliminary plans. #### Section 9-2613 This subtitle shall be liberally construed to effect its purposes. #### Section 9-2614 This subtitle may be cited as the Maryland African American Museum Corporation Act. ### Subtitle 27. Maryland Youth Advisory Council #### Section 9-2701 (a) (1) In this section the following words have the meanings indicated. (2) "Council" means the Maryland Youth Advisory Council. (3) "Council year" means the 12-month period beginning September 1 and ending August 31. (4) "High school student" means a youth who is enrolled in high school, who is a home school student, or who is enrolled in a program that leads to a high school diploma or certificate of attendance or a general equivalency diploma. (5) "Institution of postsecondary education" has the meaning stated in Sec. 10-101 of the Education Article. (6) "Public senior higher education institution" has the meaning stated in Sec. 10-101 of the Education Article. (7) "Youth" means an individual who is 14 to 22 years old. (b) There is a Maryland Youth Advisory Council. (c) (1) The Council consists of: (i) four youths appointed by the President of the Senate; (ii) four youths appointed by the Speaker of the House of Delegates; (iii) four youths appointed by the Governor; and (iv) the following members appointed by the Governor's Office for Children: (1) four youths nominated by the local management boards established under Sec. 8-301 of the Human Services Article; (2) four youths nominated by the Maryland Association of Student Councils; (3) two youths nominated by the University System of Maryland Student Council; (4) the following youths nominated by the Student Advisory Council to the Maryland Higher Education Commission: (A) one youth who is enrolled in a community college; and (B) one youth who is enrolled in a private college or university; and (5) one youth who has an immediate family member who is a service member. (2) The members of the Council must be residents of the State. (d) In deciding which youths to appoint or nominate: (1) the President of the Senate and the Speaker of the House shall, to the extent practicable, consider: (i) the geographic and demographic diversity of the State; (ii) diversity in education, including nontraditional settings such as vocational and tech-oriented education; (iii) youths with disabilities; and (iv) youths who are involved in established public and private youth councils and youth empowerment organizations in the State, including: (1) service learning and leadership programs; (2) teen court programs; (3) foster care; (4) student councils; (5) juvenile service programs; and (6) transitional programs; (2) the Governor and local management boards shall, to the extent practicable, consider: (i) the geographic and demographic diversity of the State; (ii) diversity in education, including nontraditional settings such as vocational and tech-oriented education; (iii) youths with disabilities; (iv) transitional youths who are not in high school or an institution of postsecondary education and not likely to attend an institution of postsecondary education; and (v) youths who are involved in established public and private youth councils and youth empowerment organizations in the State, including: (1) service learning and leadership programs; (2) teen court programs; (3) foster care; (4) student councils; (5) juvenile service programs; and (6) transitional programs; and (3) the Maryland Association of Student Councils shall consider youths who are enrolled in schools represented by the Association as well as applicants who are enrolled in schools that are not represented by the Association. (e) (1) The term of a member of the Council is 2 Council years. (2) 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. (3) A member may not serve more than one term. (4) If a member represents an established public or private youth council or youth empowerment organization in the State, the member shall represent the views of the council or organization before the Council. (f) (1) At the first meeting of each Council year, the members shall: (i) elect a chair for a term of 1 year; and (ii) select an executive board that consists of: (1) two members who were appointed by the President of the Senate or the Speaker of the House; (2) two members who were appointed by the Governor or nominated by the local management boards; (3) one member who was nominated by the Maryland Association of Student Councils; and (4) one member who was nominated by the University System of Maryland Student Council or the Maryland Higher Education Commission Student Advisory Council. (2) The Council may appoint any officers that it considers necessary. (g) The Governor's Office for Children shall: (1) provide staff support for the Council; (2) develop, in consultation with the Council, an initial application and application process; (3) work with established public or private youth councils or youth empowerment organizations in the State to select representatives to apply to become a member of the Council; (4) ensure that members of the Council provide a broad representation of all jurisdictions and populations; (5) organize at least four Council meetings per Council year; (6) assist the Council in preparing recommendations to the Governor and the General Assembly; and (7) appoint members of the Council from lists of nominations provided by the persons making the nominations specified in subsection (c)(1)(iv) of this section. (h) The Council shall: (1) inform the Governor and the General Assembly of issues concerning youth, including offering testimony on these issues before legislative bodies; (2) examine issues of importance to youth, including: (i) education; (ii) a safe learning environment; (iii) employment opportunities; (iv) strategies to increase youth participation in local and State government; (v) health care access and quality of care; (vi) substance abuse and underage drinking; (vii) emotional and physical well-being; (viii) the environment; (ix) poverty; (x) homelessness; (xi) youth access to State and local services; (xii) suicide prevention; and (xiii) educational accessibility issues for students with disabilities, including access to: (1) schools; (2) school-related activities; and (3) classes; (3) recommend one legislative proposal each legislative session concerning an issue included in item (2) of this subsection for possible introduction; (4) conduct a public awareness campaign to raise awareness about the Council among Maryland youth; (5) participate in local youth activities or organizations; (6) advise local officials and community leaders on youth issues; and (7) collect information from other youth groups in order to inform the activities of the Council. (i) (1) The Council shall work with the State Department of Education regarding the granting of school credit for Council service. (2) The State Department of Education and the Maryland Higher Education Commission shall notify the head administrators of all State high schools and of all institutions of postsecondary education, respectively, of the creation of the Council so that the administrators may inform their students. (3) The State Department of Education shall allow up to four absences of a member from school per school year to be categorized as lawful absences if the absences were due to the business of the Council. (j) (1) The Council shall set priorities and determine: (i) the function of subcommittees; (ii) standards of conduct; (iii) procedures; and (iv) the use of technology to convene or conduct meetings or facilitate communications among members. (2) The Council shall review and consider whether the procedures and rules used by the General Assembly would be appropriate for use as models for the Council. (k) The Council shall: (1) meet at least four times each Council year and conduct one or two public hearings each Council year on issues of importance to youth; (2) conduct one educational meeting each Council year concerning the legislative process, to which the President of the Senate, the Speaker of the House, and the Executive Director of the Department of Legislative Services, or their designees, shall be invited to speak; and (3) open all meetings to the public. (l) 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. (m) On or before the last day of the Council year, the Council shall report its activities to the Governor and, in accordance with Sec. 2-1257 of this article, to the General Assembly. ### Subtitle 28. Governor's Office for Children #### Section 9-2801 (a) In this subtitle the following words have the meanings indicated. (b) "Eligible neighborhood" means a neighborhood that includes census tracts with more than 30% of children living in poverty and is served by, as defined by the Office, a community school with a concentration of poverty level, as defined in Sec. 5-223 of the Education Article, of: (1) in fiscal year 2025 and 2026, at least 80%; (2) in fiscal year 2027 through fiscal year 2029, at least 75%; (3) in fiscal year 2030, at least 60%; and (4) in fiscal year 2031, and each fiscal year thereafter, at least 55%. (c) "Fund" means the ENOUGH Grant Fund. (d) "Office" means the Governor's Office for Children. (e) "Program" means the Engaging Neighborhoods, Organizations, Unions, Governments, and Households (ENOUGH) Grant Program. (f) "Special Secretary" means the Special Secretary of the Governor's Office for Children. #### Section 9-2802 (a) There is a Governor's Office for Children. (b) The head of the Office is the Special Secretary of the Governor's Office for Children. #### Section 9-2803 (a) Subject to the requirements of this section, the Special Secretary shall establish an ENOUGH grant program designed to advance place-based strategies targeting child poverty. (b) The purpose of ENOUGH grants made by the Office under this section is to: (1) increase community health and safety; (2) provide "cradle to career" access to high-quality education and care; (3) connect residents to quality jobs and in-demand occupations; (4) enable family-sustaining income and access to affordable high-quality housing, child care, and health care, including reproductive, maternal, behavioral, and mental health care; (5) provide high-quality support for children with disabilities, child welfare, and justice-involved youth and young adults; (6) connect individuals to State programs; and (7) leverage federal, local, and private funding for the eligible neighborhood. (c) (1) The Office shall annually identify and communicate to each local government eligible neighborhoods for the Program. (2) (i) The Office may determine that because of the close proximity of eligible neighborhoods and their similarities in residents and needs that a regional neighborhood would maximize resources for the neighborhood. (ii) A regional neighborhood may not receive less funding under the Program because of the coordination of multiple eligible neighborhoods. (d) (1) Once the Office identifies an eligible neighborhood for the Program, the Office shall engage with the neighborhood community, seek input from residents, and approve a lead partner for the neighborhood. (2) A lead partner may be a: (i) local management board; (ii) local governmental entity; (iii) community action agency; (iv) local community organization; or (v) nonprofit organization. (3) The Office shall establish qualifications, standards, and processes for determining the lead partner for the neighborhood. (4) The Office may assign staff or provide technical assistance to assist the neighborhood. (5) The lead partner shall coordinate all aspects of the Program for the neighborhood and any other responsibilities defined by the Office. (e) (1) (i) Subject to the availability of funds, each lead partner shall receive a grant from the Office, in an amount determined by the Office, to complete a needs assessment for the eligible neighborhood. (ii) Each needs assessment shall include: (1) an assessment of the physical, behavioral, mental health, education, housing, economic, and safety needs of the community; (2) an immediate plan to achieve the purpose of the Program, if applicable to the eligible neighborhood; (3) a long-term plan, including goals, for the eligible neighborhood; (4) a description of where State funding is being requested to be spent in the eligible neighborhood; and (5) any additional standards required by the Office. (iii) The Office shall establish the standards and policies for developing a needs assessment for each eligible neighborhood, including: (1) opportunity for engagement and input by members of the eligible neighborhood's community; (2) local management board input and assistance; and (3) deadlines and review processes. (iv) The needs assessment shall supplement and not conflict with the needs assessment completed for the community school served by the eligible neighborhood. (v) In completing the needs assessment, the lead partner shall coordinate with the local community school, a community based organization, and the local government. (vi) In completing the needs assessment, the lead partner may coordinate with: (1) local community organizations; (2) union or worker organizations; (3) anchor institutions, including local health care organizations, institutions of higher education, workforce investment boards, or local care management teams; (4) local law enforcement agencies; or (5) faith-based organizations. (vii) If an eligible neighborhood has completed a recent assessment similar to the needs assessment required under this section, the Office may require the eligible neighborhood to only submit an abbreviated needs assessment that addresses the requirements of this section. (2) At the request of the lead partner, the Office may assist the lead partner to complete a needs assessment. (3) (i) The lead partner shall submit the needs assessment to the Office for approval. (ii) If approved, and subject to the availability of funds, the Office shall provide a neighborhood implementation grant, in an amount determined by the Office, to the lead partner who has met standards established by the Office, to complete the items in the eligible neighborhood's needs assessment. (f) The Office may consult with entities that it deems relevant to support ENOUGH partnerships. #### Section 9-2804 (a) The Office may apply for, receive, and spend grants-in-aid by the federal government or any of its agencies, the private sector, or any other funds made available to the Office for use in carrying out the powers and duties of the Special Secretary or the Office. (b) Beginning in fiscal year 2025 and in each fiscal year thereafter, the Office shall prepare an annual report of the ENOUGH grant program that includes: (1) accounting of financial receipts and expenditures; and (2) progress and outcome metrics as defined by the Office. (c) (1) On or before June 1, 2027, the Office shall conduct an evaluation of the ENOUGH grant program and report its findings to the Governor and, in accordance with Sec. 2-1257 of this article, the Senate Committee on Education, Energy, and the Environment, the House Appropriations Committee, and Health and Government Operations Committee, and the Joint Committee on Children, Youth, and Families. (2) The report made under paragraph (1) of this subsection shall include an analysis of: (i) the progress made in jurisdictions receiving ENOUGH grants based on the outcome metrics produced by the grant recipients; (ii) the impact of program activities with respect to reducing the number of children living in poverty; and (iii) policy changes enacted at the State and local level designed to enable better coordination and efficacy. #### Section 9-2805 (a) There is an ENOUGH Grant Fund. (b) The purpose of the Fund is to support ENOUGH grants made by the Office under Sec. 9-2803 of this subtitle. (c) The Special Secretary shall administer the Fund. (d) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) money appropriated in the State budget to the Fund; (2) interest earnings; and (3) any other money from any other source accepted for the benefit of the Fund. (f) The Fund may be used only for ENOUGH grants made under Sec. 9-2803 of this subtitle. (g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (h) Expenditures from the Fund may be made only in accordance with the State budget. (i) For fiscal year 2026, the Governor shall include in the annual budget bill an appropriation of at least $15,000,000 to the Fund. (j) An appropriation made under subsection (i) of this section is supplemental to and not intended to take the place of any federal funding received for place-based support. ### Subtitle 29. Maryland Cybersecurity Council #### Section 9-2901 (a) (1) In this subtitle the following words have the meanings indicated. (2) "Council" means the Maryland Cybersecurity Council. (3) "Executive Order" means Executive Order 13636 of the President of the United States. (b) There is a Maryland Cybersecurity Council. (c) The Council consists of the following members: (1) the Attorney General, or the Attorney General's designee; (2) the Secretary of Information Technology, or the Secretary's designee; (3) the Secretary of State Police, or the Secretary's designee; (4) the Secretary of Commerce, or the Secretary's designee; (5) the Adjutant General, or the Adjutant General's designee; (6) the State Administrator of Elections, or the State Administrator's designee; (7) the Executive Director of the Governor's Office of Homeland Security, or the Executive Director's designee; (8) the Director of the Maryland Coordination and Analysis Center, or the Director's designee; (9) the Secretary of Emergency Management, or the Secretary's designee; (10) the People's Counsel, or the designee of the People's Counsel; (11) the Chief Executive Officer of the Maryland Technology Development Corporation, or the Chief Executive Officer's designee; (12) the Chair of the Tech Council of Maryland, or the Chair's designee; (13) the President of the Fort Meade Alliance, or the President's designee; (14) the President of the Army Alliance, or the President's designee; (15) four representatives of cybersecurity companies located in the State, with at least three representing cybersecurity companies with 50 or fewer employees, designated by the Cybersecurity Association of Maryland; (16) the Chief Executive Officer of the Maryland Chamber of Commerce, or the Chief Executive Officer's designee; (17) the Executive Director of the Cybersecurity Association of Maryland, or the Executive Director's designee; (18) nine representatives from institutions of higher education located in the State with expertise in cybersecurity, with at least four representatives with expertise in artificial intelligence and quantum computing, including: (i) the President, or the President's designee, of: (1) Bowie State University; (2) Johns Hopkins University; (3) Morgan State University; (4) the University of Maryland, Baltimore Campus; (5) the University of Maryland, Baltimore County; and (6) the University of Maryland, College Park Campus; (ii) the Dean of the University of Maryland Global Campus School of Cybersecurity and Information Technology, or the Dean's designee; and (iii) two additional representatives designated by the Chancellor of the University System of Maryland; (19) the Director of CASH Campaign of Maryland, or the Director's designee; (20) the Executive Director of Economic Action Maryland, or the Executive Director's designee; (21) one bank chief information security officer, designated by the Maryland Bankers Association; (22) one hospital chief information security officer, designated by the Maryland Hospital Association; (23) one water systems chief information security officer who works for a water system located in the State, designated by the National Association of Water Companies; (24) one electric company chief information security officer who works in the State for an electric company serving customers in the State, designated by the Edison Electric Institute; (25) the Executive Director of The Electronic Privacy Information Center, or the Executive Director's designee; (26) the Executive Director of the Center for Democracy and Technology, or the Executive Director's designee; (27) the Chief Executive Officer of the Technology Advancement Center, or the Chief Executive Officer's designee; (28) the Director of the Center for Governance of Technology and Systems, or the Director's designee; and (29) any other stakeholder that the chair determines appropriate. (d) The President of the Senate may appoint up to two members of the Senate to serve on the Council. (e) The Speaker of the House of Delegates may appoint up to two members of the House to serve on the Council. (f) The chair also shall invite, as appropriate, the following representatives of federal agencies to serve on the Council: (1) the Director of the National Security Agency, or the Director's designee; (2) the Secretary of Homeland Security, or the Secretary's designee; (3) the Director of the Defense Information Systems Agency, or the Director's designee; (4) the Director of the National Institute for Science and Technology, or the Director's designee; (5) the Director of the Intelligence Advanced Research Projects Activity, or the Director's designee; and (6) any other federal agency that the chair determines appropriate. (g) (1) Subject to paragraph (2) of this subsection, beginning October 1, 2025, and every 2 years thereafter, the Council shall elect a chair and vice chair from among the members of the Council. (2) One shall be a State employee and one shall be a non-State employee. (h) The University of Maryland Global Campus shall provide staff for the Council. (i) 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. (j) The Council shall work with the National Institute of Standards and Technology and other federal agencies, private sector businesses, nonprofits, and private cybersecurity experts to assess and address cybersecurity threats and associated risks from artificial intelligence and quantum computing to: (1) for critical infrastructure, review and conduct risk assessments to determine which local infrastructure sectors are at the greatest risk of cyber attacks and need the most enhanced cybersecurity measures; (2) use federal guidance to identify categories of critical infrastructure as critical cyber infrastructure if cyber damage or unauthorized cyber access to the infrastructure could reasonably result in catastrophic consequences, including: (i) interruption in the provision of energy, water, transportation, emergency services, food, or other life-sustaining services sufficient to cause a mass casualty event or mass evacuations; (ii) catastrophic economic damage; or (iii) severe degradation of State or national security; (3) assist infrastructure entities that are not covered by the Executive Order in complying with federal cybersecurity guidance; (4) assist private sector cybersecurity businesses in adopting, adapting, and implementing the National Institute of Standards and Technology cybersecurity framework of standards and practices; (5) examine inconsistencies between State and federal laws regarding cybersecurity; (6) recommend a comprehensive State strategic plan to ensure a coordinated and adaptable response to and recovery from cybersecurity attacks; (7) address sensitive privacy interests of State residents related to cybersecurity and associated risks; (8) address emerging threats posed by artificial intelligence, including: (i) adversarial artificial intelligence; (ii) cyber attacks; (iii) deepfake technologies; (iv) unethical use; and (v) fraud; and (9) recommend any legislative changes considered necessary by the Council to address cybersecurity issues. (k) Beginning July 1, 2017, and every 2 years thereafter, the Council shall submit a report of its activities to the General Assembly in accordance with Sec. 2-1257 of this article. ### Subtitle 31. Commerce Subcabinet #### Section 9-3101 (a) In this subtitle the following words have the meanings indicated. (b) "Secretary" means the Secretary of Commerce. (c) "Subcabinet" means the Commerce Subcabinet. #### Section 9-3102 (a) There is a Commerce Subcabinet. (b) The Subcabinet is composed of the following members: (1) the Secretary, or the Secretary's designee; (2) the Secretary of Transportation, or the Secretary's designee; (3) the Secretary of Labor, or the Secretary's designee; (4) the Secretary of the Environment, or the Secretary's designee; (5) the Secretary of Housing and Community Development, or the Secretary's designee; (6) the Secretary of Planning, or the Secretary's designee; and (7) the Special Secretary of Minority Affairs, or the Special Secretary's designee. #### Section 9-3103 The Subcabinet shall: (1) advise the Governor on proposals to enhance the State's business climate; (2) gather information the Subcabinet considers necessary to promote the goals of the Subcabinet; (3) collaborate to facilitate and expedite critical economic development projects in the State; and (4) provide other assistance that may be required to further the goals of the Subcabinet and enhance the State's business climate. #### Section 9-3104 (a) The Secretary shall: (1) chair the Subcabinet; (2) convene the meetings of the Subcabinet; and (3) be responsible for the oversight, direction, and accountability of the work of the Subcabinet. (b) The Office of the Secretary of Commerce shall provide the primary staff support for the Subcabinet. (c) The Subcabinet shall meet each month. ### Subtitle 32. Justice Reinvestment Oversight Board #### Section 9-3201 (a) In this subtitle the following words have the meanings indicated. (b) "Board" means the Justice Reinvestment Oversight Board. (c) "Executive Director" means the Executive Director of the Governor's Office of Crime Prevention and Policy. (d) "Fund" means the Performance Incentive Grant Fund established in Sec. 9-3209 of this subtitle. #### Section 9-3202 There is a Justice Reinvestment Oversight Board in the Governor's Office of Crime Prevention and Policy. #### Section 9-3203 (a) The Board consists of the following members: (1) one member of the Senate of Maryland, appointed by the President of the Senate; (2) one member of the House of Delegates, appointed by the Speaker of the House; (3) the Executive Director, or the Executive Director's designee; (4) the Secretary of Public Safety and Correctional Services, or the Secretary's designee; (5) the chair of the Maryland Parole Commission, or the chair's designee; (6) the Secretary of State Police, or the Secretary's designee; (7) the Attorney General, or the Attorney General's designee; (8) the Public Defender, or the Public Defender's designee; (9) the Secretary of Budget and Management, or the Secretary's designee; (10) the chair of the Local Government Justice Reinvestment Commission, or the chair's designee; (11) two members appointed by the Chief Justice of the Supreme Court of Maryland; (12) the Secretary of Labor, or the Secretary's designee; (13) one member appointed by the Maryland Chiefs and Sheriffs Association; (14) the president of the Maryland State's Attorneys' Association or the president's designee; (15) two members of the Maryland Correctional Administrators Association, appointed by the president of the Maryland Correctional Administrators Association, including one representative from a large correctional facility and one representative from a small correctional facility; (16) the president of the Maryland Association of Counties or the president's designee; and (17) the following individuals, appointed by the Governor: (i) one member representing victims of crime; (ii) one member representing law enforcement; (iii) two local health officers; and (iv) one member with direct experience teaching incarcerated individuals in academic programs intended to achieve the goal of a high school diploma or general educational development certification. (b) To the extent practicable, in making appointments under this section, the Governor shall ensure geographic diversity among the membership of the Board. (c) (1) The term of an appointed member of the Board is 4 years. (2) The terms of the appointed members of the Board are staggered as required by the terms provided for members of the Board on October 1, 2016. (3) At the end of a term, an appointed member: (i) is eligible for reappointment; and (ii) continues to serve until a successor is appointed and qualifies. (4) A member who is appointed or reappointed after a term has begun serves only for the remainder of the term and until a successor is appointed and qualifies. (5) The members of the Board appointed from the Senate of Maryland, the House of Delegates, and the Chief Justice of the Supreme Court of Maryland, shall serve in an advisory capacity only. #### Section 9-3204 (a) The Governor shall appoint the chair of the Board. (b) With the approval of the Board, the chair may appoint a vice chair who shall have the duties assigned by the chair. #### Section 9-3205 (a) A majority of the authorized membership of the Board is a quorum. (b) The Board shall meet at least quarterly each year at the times and places determined by the Board or the chair of the Board. (c) A member of the Board: (1) may not receive compensation for service on the Board; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. #### Section 9-3206 The Governor's Office of Crime Prevention and Policy shall provide staff for the Board. #### Section 9-3207 (a) The Board shall: (1) monitor progress and compliance with the implementation of the recommendations of the Justice Reinvestment Coordinating Council; (2) consider the recommendations of the Local Government Justice Reinvestment Commission and any legislation, regulations, rules, budgetary changes, or other actions taken to implement the recommendations of the Justice Reinvestment Coordinating Council; (3) make additional legislative and budgetary recommendations for future data-driven, fiscally sound criminal justice policy changes; (4) collect and analyze the data submitted under Sec. 9-3208 of this subtitle regarding pretrial detainees; (5) in collaboration with the Department of Public Safety and Correctional Services, the Maryland Parole Commission, the Administrative Office of the Courts, and the Maryland State Commission on Criminal Sentencing Policy, create performance measures to track and assess the outcomes of the laws related to the recommendations of the Justice Reinvestment Coordinating Council; (6) in collaboration with the Maryland Parole Commission, monitor administrative release under Sec. 7-301.1 of the Correctional Services Article and determine whether to adjust eligibility considering the effectiveness of administrative release and evidence-based practices; (7) create performance measures to assess the effectiveness of the grants administered under Sec. 9-3209 of this subtitle; and (8) consult and coordinate with: (i) the Local Government Justice Reinvestment Commission; and (ii) other units of the State and local jurisdictions concerning justice reinvestment issues. (b) (1) In collaboration with the Department of Public Safety and Correctional Services, the Board shall determine the annual savings from the implementation of the recommendations of the Justice Reinvestment Coordinating Council based on the difference between the prison population as measured on October 1, 2017, the baseline day, and the prison population as measured on October 1, 2018, the comparison day, and the variable cost of incarceration. (2) If the prison population on the comparison day is less than the prison population on the baseline day, the Board shall determine a savings based on the difference in the prison population multiplied by the variable cost. (3) The Board annually shall determine the difference between the prison population on October 1, 2017, and the prison population on October 1 of the current year and calculate any savings in accordance with paragraph (2) of this subsection. (4) If a prison population decline causes a correctional unit, wing, or facility to close, the Board shall conduct an assessment to determine the savings from the closure and distribute the savings, realized annually, according to the schedule in paragraph (5) of this subsection. (5) The Board annually shall recommend that the savings identified in paragraphs (2) through (4) of this subsection be distributed as follows: (i) up to 50% of the savings shall be placed in the Performance Incentive Grant Fund for purposes established under Sec. 9-3209(b)(1) of this subtitle; and (ii) subject to paragraph (6) of this subsection, the remaining savings shall be used for additional services identified as reinvestment priorities in the Justice Reinvestment Coordinating Council's Final Report. (6) The Board may recommend that a portion of the remaining savings identified under paragraph (5)(ii) of this subsection be: (i) used for the development and implementation of a post-secondary education and workforce training program for each correctional institution in the Division of Correction that provides incarcerated individuals with the requisite training, certifications, and experience to obtain careers in in-demand job sectors; (ii) for fiscal year 2025 only, distributed to the Office of the Correctional Ombudsman; or (iii) distributed to the Maryland Parole Commission for the purpose of hiring psychologists to perform risk assessments of candidates for geriatric parole under Sec. 7-310 of the Correctional Services Article. (c) At each meeting of the Board, the Secretary of Health, or the Secretary's designee, shall report to the Board: (1) the number of individuals committed to the Maryland Department of Health for treatment under Sec. 8-507 of the Health - General Article in the previous 3 months including the number of days that it took to place each individual into treatment and where the individual was placed for treatment; (2) the number of individuals committed to the Maryland Department of Health for treatment under Sec. 8-507 of the Health - General Article who are waiting for treatment but cannot be placed due to lack of capacity; and (3) the number of individuals assessed for substance use disorder in the previous 3 months under Sec. 5-601 of the Criminal Law Article and whether each individual was placed into treatment as a result of the assessment. (d) (1) The Board may enter into an agreement with an academic institution or another similar entity that is qualified to collect and interpret data in order to assist the Board with its duties. (2) (i) The Board may recommend that a unit of the State enter into a contract or agreement with a public or private entity to obtain assistance or financial resources to fund and otherwise further the purposes of this subtitle, including entering into public-private partnerships, social impact bonds, and opportunity compacts. (ii) If the Board makes a recommendation under subparagraph (i) of this paragraph, the Board shall provide written notice to the Senate Judicial Proceedings Committee, the House Judiciary Committee, and the House Health and Government Operations Committee, in accordance with Sec. 2-1257 of this article, of the recommendation. (iii) A unit of the State may not enter into a contract or an agreement recommended by the Board under subparagraph (i) of this paragraph until 60 days after the date of the notice provided in subparagraph (ii) of this paragraph. (e) (1) The Board shall establish an advisory board for the purpose of including stakeholders in the criminal justice system in the analysis of the implementation of justice reinvestment initiatives. (2) The Executive Director of the Governor's Office of Crime Prevention and Policy shall appoint members of the advisory board, subject to the approval of the chair of the Board. (3) Members of the advisory board shall include: (i) a representative of the exclusive representative of the employees of the Division of Parole and Probation; (ii) a representative of the National Association for the Advancement of Colored People; (iii) a representative of CASA de Maryland; (iv) a representative of the American Civil Liberties Union; (v) the chair of the Criminal Law and Practice Section of the Maryland State Bar Association or the chair's designee; (vi) a representative of victims of domestic violence; (vii) a representative of victims of sexual assault; (viii) a representative with clinical experience and expertise in behavioral health and criminal justice; (ix) a representative of the Maryland Retailers Association; (x) a representative of an organization whose mission is to develop and advocate for policies and programs to increase the skills, job opportunities, and incomes of low-skill, low-income workers and job seekers; (xi) a representative of an organization whose mission is to advocate for ex-offenders; and (xii) a representative of the Maryland Chamber of Commerce. #### Section 9-3208 (a) Semiannually, each county, the Department of Public Safety and Correctional Services, the Maryland Parole Commission, the Administrative Office of the Courts, and the Maryland State Commission on Criminal Sentencing Policy shall collect and report data to the Board that is disaggregated by race and ethnicity in order for the Board to perform its duties under Sec. 9-3207 of this subtitle, including data relating to: (1) the admission of incarcerated individuals to State and local correctional facilities; (2) the length of incarcerated individual sentences; (3) the length of time being served by incarcerated individuals, including suspended periods of a criminal sentence; (4) recidivism; (5) the population of community supervision; (6) information about the incarcerated individual population, including the amount of restitution ordered and the amount paid; and (7) departures by the court and the Commission from the sentencing limits for technical violations under Sec.Sec. 6-223 and 6-224 of the Criminal Procedure Article and Sec.Sec. 7-401 and 7-504 of the Correctional Services Article. (b) On or before March 31 each year, each county and the Division of Pretrial Detention and Services shall report to the Board the following information for the prior calendar year regarding individuals held in pretrial detention: (1) the number of individuals detained pretrial on the same day each year; (2) the mean and median days individuals were detained in pretrial detention; (3) the charges under which individuals were detained in pretrial detention; (4) the reasons why individuals were unable to secure release; (5) the number of individuals who were released during the pretrial period; and (6) the disposition of each case. #### Section 9-3209 (a) There is a Performance Incentive Grant Fund. (b) (1) The purpose of the Fund is to make use of the savings from the implementation of the recommendations of the Justice Reinvestment Coordinating Council. (2) Subject to paragraph (3) of this subsection, and except as provided in paragraph (4) of this subsection, the Board may recommend to the Executive Director that grants be made to: (i) ensure that the rights of crime victims are protected and enhanced; (ii) provide for pretrial risk assessments; (iii) provide for services to reduce pretrial detention; (iv) provide for diversion programs, including mediation and restorative justice programs; (v) provide for recidivism reduction programming; (vi) provide for evidence-based practices and policies; (vii) provide for specialty courts; (viii) provide for reentry programs; (ix) provide for substance use disorder and community mental health service programs; and (x) provide for any other program or service that will further the purposes established in paragraph (1) of this subsection. (3) (i) At least 5% of the grants provided to a county under this section shall be used to fund programs and services to ensure that the rights of crime victims are protected and enhanced. (ii) The grants shall be used to supplement, but not supplant, funds received from other sources. (4) For fiscal year 2026 and each fiscal year thereafter, up to $1,000,000 of the Fund may be used each year to support the agency operations of the Office of the Correctional Ombudsman. (5) The Governor's Office of Crime Prevention and Policy shall receive from the Fund each fiscal year the amount necessary to offset the costs of administering the Fund, including the costs incurred in an agreement to collect and interpret data as authorized by Sec. 9-3207 of this subtitle. (c) (1) Subject to the authority of the Executive Director, the Board shall administer the Fund. (2) The Executive Director may approve or disapprove any grants from the Fund. (d) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) money appropriated in the State budget; (2) interest earned on money in the Fund; and (3) any other money from any other source accepted for the benefit of the Fund. (f) The Fund may be used only for the purposes established in subsection (b) of this section. (g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (h) Expenditures from the Fund may be made only in accordance with the State budget. (i) Money expended from the Fund for programs to reduce recidivism and control correctional costs is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for these purposes. #### Section 9-3210 The Board may perform any acts necessary and appropriate to carry out the powers and duties set forth in this subtitle. #### Section 9-3211 (a) In this section, "Commission" means the Local Government Justice Reinvestment Commission. (b) There is a Local Government Justice Reinvestment Commission. (c) The Commission shall: (1) advise the Board on matters related to legislation, regulations, rules, budgetary changes, and all other actions needed to implement the recommendations of the Justice Reinvestment Coordinating Council as they relate to local governments; (2) make recommendations to the Board regarding grants to local governments from the Fund; and (3) create performance measures to assess the effectiveness of the grants. (d) (1) The Commission consists of one member from each county appointed by the governing body of the county. (2) The Executive Director shall appoint the chair of the Commission. (e) (1) The term of a member of the Commission is 4 years. (2) The terms of the members of the Commission are staggered as required by the terms provided for members of the Commission on October 1, 2016. (3) At the end of a term, a member: (i) is eligible for reappointment; and (ii) continues to serve until a successor is appointed and qualifies. (4) A member who is appointed or reappointed after a term has begun serves only for the remainder of the term and until a successor is appointed and qualifies. (f) A member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (g) The Governor's Office of Crime Prevention and Policy shall provide staff for the Commission. #### Section 9-3212 On or before December 31, 2017, and each year thereafter, the Board shall report to the Governor and, subject to Sec. 2-1257 of this article, to the General Assembly on the activities of the Board and the Local Government Justice Reinvestment Commission. ### Subtitle 33. Governor's Office of Immigrant Affairs #### Section 9-3301 (a) In this subtitle the following words have the meanings indicated. (b) "Director" means the Director of the Office. (c) "ESOL program" means an English For Speakers of Other Languages program. (d) "Immigrant" means an individual who: (1) is a resident of the State; (2) is not a citizen of the United States; and (3) whose country of origin is a country other than the United States. (e) "Office" means the Governor's Office of Immigrant Affairs. #### Section 9-3302 (a) There is a Governor's Office of Immigrant Affairs. (b) (1) The head of the Office is the Director. (2) The Director: (i) is appointed by the Governor; (ii) serves at the pleasure of the Governor and is responsible directly to the Governor; and (iii) is entitled to the salary provided in the State budget. (c) (1) The Office shall: (i) advise the Governor on all matters assigned to the Office; and (ii) carry out the Governor's policies on matters assigned to the Office. (2) The Director shall: (i) manage the operation of the Office and establish guidelines and procedures to promote the orderly and efficient operation of the Office; and (ii) adopt regulations necessary to carry out the provisions of this subtitle. (3) Subject to the provisions of this subtitle, the Director may establish, reorganize, or consolidate areas of responsibility in the Office as necessary to fulfill the responsibilities assigned by the Director. (d) The Office shall employ staff to carry out its duties as provided in the State budget. #### Section 9-3303 Subject to the availability of funding, the Office shall: (1) establish a network of neighborhood-based opportunity centers that provide immigration services to immigrants; (2) increase access to ESOL programs, including by engaging nonprofit organizations and other qualified providers of ESOL programs; (3) assist immigrants in matters relating to immigration status, including assisting with the naturalization process and applications for deferred action for childhood arrivals (DACA); (4) connect immigrants to: (i) business resources that use the immigrants' skills; (ii) employment referral programs; and (iii) other workforce development programs; (5) develop and leverage immigrants' skills to benefit the immigrants' communities and the State; (6) strengthen the connection between immigrants and the immigrants' communities through civic engagement; (7) reduce exploitation of immigrants; (8) establish a toll-free, multilingual hotline and a website for purposes including: (i) disseminating information about the programs and services offered by the Office; (ii) referring for services; and (iii) receiving complaints relating to fraud and other related crimes against immigrants; (9) ensure that individuals referred by the Office are directed to persons who are: (i) in compliance with Title 14, Subtitle 33 of the Commercial Law Article; or (ii) authorized by the federal Office of Legal Access Programs; (10) using information developed by the Office through the hotline established under this section, assist law enforcement in combating crimes against immigrants; (11) advise the Governor and Director concerning matters affecting immigrants in the State in order to promote and encourage the full participation of immigrants in the State's civic and economic life; (12) coordinate with other State agencies and otherwise use the resources of the State to serve the needs of immigrants; and (13) encourage and assist local governments in the development of activities to enhance civic engagement among immigrants and in immigrant communities. #### Section 9-3304 On or before June 15, 2022, and each year thereafter, the Director shall submit to the Governor and, in accordance with Sec. 2-1257 of this article, to the members of the General Assembly a report describing the activities of the Office, including: (1) summaries of calls and queries received through the hotline and website; (2) information on ESOL programs provided by the Office; (3) the estimated or exact number of immigrants assisted through opportunity centers; (4) the status of any workforce development programs; and (5) any other relevant information. ### Subtitle 34. Historic St. Mary's City Fort to 400 Commission #### Section 9-3401 In this subtitle, "Commission" means the Historic St. Mary's City Fort to 400 Commission. #### Section 9-3402 (a) There is a Historic St. Mary's City Fort to 400 Commission. (b) The purpose of the Commission is to plan, produce, and facilitate materials, events, and activities to commemorate the 400th anniversary of the founding of Maryland. #### Section 9-3403 (a) The Commission consists of the following members: (1) two members of the Senate of Maryland, appointed by the President of the Senate; (2) two members of the House of Delegates, appointed by the Speaker of the House; (3) the Secretary of Budget and Management or the Secretary's designee; (4) the Secretary of Commerce or the Secretary's designee; (5) the Secretary of Natural Resources or the Secretary's designee; (6) the Secretary of Planning or the Secretary's designee; (7) the Secretary of Transportation or the Secretary's designee; (8) one representative of the Maryland Commission on Indian Affairs; (9) one representative of the Maryland Commission on African American History and Culture; (10) one representative of the Historic St. Mary's City Commission; (11) one representative of the Maryland Rediscovery 400 initiative; and (12) five members with relevant interest or expertise, appointed by the Governor. (b) To the extent practicable, the membership of the Commission and any advisory committees established in accordance with Sec. 9-3405 of this subtitle shall be representative of the diverse communities and regions within the State. (c) The Governor shall designate the Chair of the Commission. (d) The Division of Tourism, Film, and the Arts shall provide staff for the Commission, assisted by the Maryland Historical Trust and the Maryland State Archives. (e) A member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (f) A vacancy on the Commission shall be filled by the Governor. #### Section 9-3404 The Commission shall: (1) coordinate the planning and implementation of activities and events to commemorate the 400th anniversary of the founding of Maryland; (2) promote the identification, documentation, and preservation of historical and cultural resources related to the founding of Maryland; (3) assist in protecting, improving, and developing existing educational and interpretive institutions, sites, and museums in promoting the 400th anniversary of the founding of Maryland; (4) ensure development of a model social studies curriculum on the founding of Maryland; (5) promote nationally and internationally the commemoration of the 400th anniversary of the founding of Maryland; (6) ensure that commemorative activities, events, and products provide lasting value and public benefits beyond the celebration of the 400th anniversary of the founding of Maryland; (7) secure support and financial resources to implement events and activities planned and assisted by the Commission, including the formation of an appropriate legal entity; (8) provide leadership for and coordinate economic development opportunities in and around St. Mary's City to promote the region for future generations; and (9) perform other actions necessary to carry out the purposes of the Commission. #### Section 9-3405 (a) The Chair of the Commission shall establish advisory committees related to: (1) development and sponsor relations; (2) resource stewardship and visitor experience; (3) education and curriculum; (4) programs and events; (5) transportation and capital infrastructure; (6) communications and marketing; (7) operations and management; and (8) any other aspect of the commemoration of the 400th anniversary of the founding of Maryland that the Chair considers necessary. (b) (1) The Chair of the Commission shall appoint advisory committee members who broadly represent public and private interests. (2) Advisory committee members serve at the pleasure of the Chair of the Commission. #### Section 9-3406 (a) The Commission shall meet at least twice each year at times and places to be determined by the Chair. (b) The Commission: (1) shall adopt procedures for the transaction of business; and (2) may establish a nonprofit organization to receive funds for the Commission. #### Section 9-3407 (a) On or before September 1, 2022, the Commission shall submit to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly a report containing the Commission's plan of action for the commemoration of the 400th anniversary of the founding of Maryland. (b) On or before November 1, 2022, and each November 1 thereafter, the Commission shall submit to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly a report that includes: (1) an update on the plan of action submitted in accordance with subsection (a) of this section; (2) implementation timetables and benchmarks; and (3) recommendations for legislative, administrative, and other actions the Commission deems necessary to further its mission. ### Subtitle 35. Commission on Juvenile Justice Reform and Emerging and Best Practices #### Section 9-3501 In this subtitle, "Commission" means the Commission on Juvenile Justice Reform and Emerging and Best Practices. #### Section 9-3502 (a) There is a Commission on Juvenile Justice Reform and Emerging and Best Practices. (b) (1) The Commission consists of the following members: (i) two members of the Senate of Maryland, appointed by the President of the Senate; (ii) two members of the House of Delegates, appointed by the Speaker of the House; (iii) the Secretary of Juvenile Services; (iv) the Secretary of Human Services; and (v) the following members, appointed by the Governor: (1) one representative of an institute for public policy that specializes in juvenile justice issues in the State; (2) one representative of an institute operated by the University of Maryland specializing in providing evidence-based and culturally competent services for juveniles; (3) one representative with relevant education and experience; (4) one local school superintendent; (5) one school principal; (6) one representative of an organization that provides services to children involved in the juvenile justice system; (7) one representative of the Maryland Department of Health; (8) one representative of a private child welfare agency; (9) one representative of a youth services bureau; (10) one representative of the State judiciary; (11) one representative of the Maryland State's Attorneys' Association; (12) one representative of the Maryland Office of the Public Defender; (13) one representative of the Maryland Chiefs of Police Association; (14) one representative of the Maryland Sheriffs' Association; (15) one representative of the Maryland Consortium on Coordinated Community Supports; and (16) seven members of the general public. (2) Of the seven members of the general public: (i) one shall be chosen on the basis of the member's interest in and experience with minors and juvenile problems; (ii) two shall: (1) at the time of the appointment to a first term, be at least 16 years old and under the age of 30 years; and (2) include at least one individual who has been under the jurisdiction of the Department of Juvenile Services; (iii) one shall be an individual who is a parent or guardian of a youth who has been under the jurisdiction of the Department of Juvenile Services; (iv) one shall be a victim advocate; and (v) two shall be employees of the Department of Juvenile Services with different job titles, recommended by the President of the American Federation of State, County, and Municipal Employees, Council 3. (c) (1) The term of an appointed member is 3 years. (2) The terms of the appointed members are staggered as required by the terms provided for members of the Commission on June 1, 2024. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) 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. (5) An appointed member who serves two consecutive full 3-year terms may not be reappointed for 3 years after completion of those terms. (d) (1) From among the members of the Commission, the Governor, the President of the Senate, and the Speaker of the House shall appoint a chair. (2) (i) From among the members of the Commission, the chair shall appoint a secretary. (ii) The secretary shall keep full and accurate minutes of each Commission meeting. (e) The Governor's Office of Crime Prevention and Policy shall provide staff for the Commission. (f) (1) The Commission shall meet regularly at least six times a year on the call of its chair. (2) A member of the Commission: (i) may not receive compensation as a member of the Commission; but (ii) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (g) The Commission shall: (1) review and report on: (i) all juvenile services, facilities, and programs in the State; (ii) the educational programs and services of the Department of Juvenile Services; (iii) programs designed to divert children from the juvenile justice system; (iv) the treatment and programming needs of females in the juvenile justice system; (v) (1) the use of child in need of supervision petitions; and (2) the number of child in need of supervision petitions authorized or denied by jurisdiction; and (vi) the wait times for placement of children in facilities; (2) research culturally competent, evidence-based, research-based, and promising programs and practices relating to: (i) child welfare; (ii) juvenile rehabilitation; (iii) mental health services for children; and (iv) prevention and intervention services for juveniles; (3) evaluate the cost-effectiveness of existing and promising programs and practices researched by the Commission; (4) identify means of evaluating the effectiveness of programs and practices researched by the Commission; (5) giving special attention to organizations located in or serving historically underserved communities, identify strategies to enable community-based organizations that provide services for juveniles to evaluate and validate services and programming provided by those organizations; (6) review data relating to arrests, completion of programming, and recidivism from the Maryland Longitudinal Data System Center; (7) identify opportunities for greater coordination between the Department of Juvenile Services, the Office of the State's Attorney, law enforcement, and local organizations that provide services to juveniles; (8) recommend policies and programs to improve juvenile services in the State; (9) participate in interpreting for the public the objectives of the juvenile services in the State; (10) participate in planning the development and use of available resources to meet the needs of juveniles; (11) coordinate with the Maryland Department of Labor to identify potential job and apprenticeship opportunities for juveniles under the supervision of the Department of Juvenile Services; and (12) examine and review fatalities involving children under the supervision of the Department of Juvenile Services for the purpose of providing recommendations on policies and programs to prevent fatalities, including: (i) a death caused by a child under the supervision of the Department of Juvenile Services, if the child is convicted or adjudicated delinquent for the death; and (ii) the death of a child under the supervision of the Department of Juvenile Services. (h) On or before October 1, 2025, and on or before October 1 each year thereafter, the Commission shall report its findings to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly. ### Subtitle 36. Governor's Office of Crime Prevention and Policy #### Section 9-3601 In this subtitle, "Office" means the Governor's Office of Crime Prevention and Policy. #### Section 9-3602 (a) The Office shall ensure that all reports issued by the Office related to grant programs include: (1) a summary of all collected performance measure data; and (2) information necessary to provide transparency in the results of competitive grant awards. (b) (1) The Office shall create, for inclusion in its annual report, a scorecard of quantifiable safety indicators. (2) The Office shall determine appropriate indicators for the scorecard in coordination with: (i) the Department of State Police; (ii) the Department of Public Safety and Correctional Services; (iii) the Office of the Attorney General; (iv) the Maryland Department of Labor; (v) the State Department of Education; (vi) the Maryland Department of Health; and (vii) the Department of Human Services. (3) In addition to the indicators determined under paragraph (2) of this subsection, the scorecard shall include: (i) crime statistics for violent crime and property crime as reported in the Uniform Crime Reports or the National Incident-Based Reporting System, including: (1) murder; (2) rape; (3) robbery; (4) aggravated assault; (5) breaking or entering; (6) larceny or theft; and (7) motor vehicle theft; (ii) crime clearance rates for the crimes included under item (i) of this paragraph; (iii) the portion of committed crimes not reported to law enforcement as estimated based on the National Crime Victimization Survey or other sources; (iv) indicators of safety and fairness in the criminal justice system in the State, including: (1) the number of serious assaults on staff and incarcerated individuals committed in State correctional facilities; (2) police use of force statistics; (3) the number of law enforcement personnel killed in the line of duty; (4) disparity in traffic stops, arrests, convictions, and sentencing by race and ethnicity; and (5) available surveys of public trust in policing and the criminal justice system in the State; and (v) indicators of the underlying factors and conditions affecting progress toward a safer State, including: (1) unemployment rates by age, gender, race, ethnicity, and region; (2) school dropout rates; (3) population density and degree of urbanization; (4) percentage of residents below the federal poverty threshold; (5) median household income; and (6) access to mental health, behavioral health, and addiction treatment. (c) On or before October 1, 2027, and each October 1 thereafter, the Office shall report to the Commission on Juvenile Justice Reform and Emerging and Best Practices and, in accordance with Sec. 2-1257 of this article, the General Assembly on: (1) the total number of youth housed in facilities with adult offenders on a monthly basis; (2) the average length of stay of youth housed in facilities with adult offenders; (3) the total number of youth charged as adults under Sec. 3-8A-03(d)(3) of the Courts Article and the offenses with which those youth are charged; (4) the total number of youth held in restrictive housing in facilities with adult offenders; and (5) the total number of violations of the provisions of Title 34 of the United States Code prohibiting youth from having sight and sound contact with adult offenders. ### Subtitle 37. Commission on African American History and Culture #### Section 9-3701 In this subtitle, "Commission" means the Commission on African American History and Culture. #### Section 9-3702 (a) There is a Commission on African American History and Culture. (b) The Commission is an independent unit in the Executive Branch of State government. #### Section 9-3703 (a) The Commission consists of 21 members appointed by the Governor with the advice and consent of the Senate. (b) The members shall: (1) represent the entire community of the State; (2) know about African American culture and history; (3) be sensitive to the problems of minority communities; and (4) be connected with agencies working to integrate minority history and culture into the history of the State and American culture. (c) (1) The term of a member is 4 years. (2) The terms of the members are staggered as required by the terms provided for members of the Commission on October 1, 2005, and October 1, 2011. (3) 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. (d) (1) Except as provided in paragraph (2) of this subsection, a member may be reappointed. (2) A member who has served two consecutive four-year terms may not be reappointed until at least one year has elapsed after the end of the previous term. (e) The Governor may remove a member for incompetence or misconduct. #### Section 9-3704 The Commission shall elect annually a chair and vice chair from among its members. #### Section 9-3705 (a) The Commission shall meet at the call of the chair, a majority of the members, or the Governor. (b) A member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) is entitled to receive reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. #### Section 9-3706 (a) (1) With the approval of the Governor, the Commission shall appoint a director. (2) The director may not be a member of the Commission. (3) The director serves at the pleasure of the Commission, subject to the concurrence of the Governor. (b) The director is a special appointment in the State Personnel Management System. (c) Subject to the rules and policies adopted by the Commission, the director shall: (1) administer the activities of the Commission; and (2) supervise the appointment and removal of Commission personnel. #### Section 9-3707 (a) The Commission shall: (1) initiate, direct, and coordinate projects that further the understanding of African American history and culture; (2) receive and administer any available federal, State, or private money to plan and execute projects or educational activities that further the understanding of African American history and culture; (3) operate the Banneker-Douglass-Tubman Museum in Annapolis to house and display photographs, objects, oral history tapes, artifacts, and other materials of African American historic and cultural significance; (4) locate, preserve, and disseminate to the public information about significant buildings and sites relating to African American history and culture; and (5) publish an annual report and any other material that the Commission considers necessary. (b) The Commission may provide operational funding to a museum that specializes in African American history and culture. #### Section 9-3708 (a) (1) The Commission may seek money from the federal government, foundations, and private sources in addition to State financing. (2) The Commission may accept gifts, grants, donations, bequests, or endowments for any of its purposes. (b) Money received under subsection (a) of this section, income from the operation of the Banneker-Douglass-Tubman Museum, and money from educational materials and activities of the Commission are not subject to Sec. 7-302 of the State Finance and Procurement Article. (c) For each fiscal year, the Governor shall include in the annual budget bill an appropriation of $1,600,000 for the Commission. (d) Money maintained under this section is subject to audit by the State, including the Legislative Auditor. ### Subtitle 38. Governor's Office for Children #### Section 9-3801 There is a Governor's Office for Children, as authorized under Executive Order 01.01.2024.05. ### Subtitle 39. Government Efficiency Commission #### Section 9-3901 (a) In this subtitle the following words have the meanings indicated. (b) "Commission" means the Government Efficiency Commission. (c) "Department" has the meaning stated in Sec. 8-506 of this article. (d) "Independent unit" has the meaning stated in Sec. 8-506 of this article. #### Section 9-3902 (a) (1) There is a Government Efficiency Commission. (2) The purpose of the Commission is to enhance government efficiency and economic competitiveness by monitoring efficiency in the processing of permits, licenses, and certificates. (b) The Commission consists of the following members: (1) one member of the Senate, appointed by the President of the Senate; (2) one member of the House of Delegates, appointed by the Speaker of the House; (3) the Secretary of Planning, or the Secretary's designee; (4) the Secretary of Housing and Community Development, or the Secretary's designee; (5) the Secretary of the Environment, or the Secretary's designee; (6) the Special Secretary of Small, Minority, and Women Business Affairs, or the Special Secretary's designee; (7) the Secretary of Commerce, or the Secretary's designee; (8) the Secretary of Transportation, or the Secretary's designee; (9) the Secretary of Labor, or the Secretary's designee; (10) the Secretary of Health, or the Secretary's designee; (11) the Secretary of Information Technology, or the Secretary's designee; (12) the Chief Performance Officer; and (13) three representatives of the State's business community, appointed by the Governor. (c) The Governor shall designate the chair of the Commission. (d) The Office of the Governor shall provide staff for the Commission. (e) A member of the Commission: (1) may not receive compensation as a member of the Commission; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (f) The Commission shall: (1) compile and index the reports submitted under Sec. 8-506 of this article; (2) review statutory and regulatory provisions that may impact the efficiency of processing permits, licenses, and certificates; and (3) make recommendations on: (i) any factors impeding prompt and fair processing of permits, licenses, and certificates; (ii) strategies for how departments and independent units can improve permitting and licensing efficiency; and (iii) removing barriers that hinder individuals and businesses from receiving permits, licenses, and certificates. (g) On or before December 1, 2024, and each year thereafter, the Commission shall submit a report on its findings and recommendations to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly. ### Subtitle 40. Office of the Correctional Ombudsman #### Section 9-4001 (a) In this subtitle the following words have the meanings indicated. (b) "Administrative act" means any action, decision, adjudication, failure to act, omission, rule or regulation, interpretation, recommendation, policy, practice, or procedure of an agency. (c) (1) "Agency" means: (i) the Department of Public Safety and Correctional Services; (ii) any officer or employee of the Department of Public Safety and Correctional Services; (iii) any person providing services under a contract with the Department of Public Safety and Correctional Services to individuals who are confined by or under the supervision of the Department of Public Safety and Correctional Services; or (iv) any officer, employee, or administrative hearing examiner of the State or a unit of local government who is acting or purporting to act in relation to individuals confined by or under the supervision of the Department of Public Safety and Correctional Services. (2) "Agency" does not include: (i) a judge, as defined in Sec. 1-101 of the Courts Article, or any other employee of the judiciary; (ii) the General Assembly or any member, employee, or committee of the General Assembly; or (iii) the Governor or the Governor's personal staff. (d) (1) "Complaint" means any communication: (i) from or on behalf of an individual confined by or under the supervision of an agency; and (ii) alleging a violation of the individual's rights or any applicable law, regulation, or standard: (1) by the agency; and (2) that impacted the individual. (2) "Complaint" does not include a disciplinary proceeding of an incarcerated individual. (e) "Office" means the Office of the Correctional Ombudsman. (f) "Records" means all materials, regardless of physical form or characteristics, created, generated, recorded, received, possessed, or controlled by or on behalf of any agency. #### Section 9-4002 There is an Office of the Correctional Ombudsman established as an independent unit of State government. #### Section 9-4003 (a) The Office shall include: (1) a full-time Correctional Ombudsman; (2) staff as provided in the State budget; and (3) the Juvenile Justice Monitoring Unit established in Sec. 9-4012 of this subtitle. (b) (1) The Governor shall appoint the Correctional Ombudsman with the advice and consent of the Senate. (2) The Correctional Ombudsman shall serve for a term of 5 years. (3) At the end of a term, the Correctional Ombudsman continues to serve until a successor is appointed and qualifies. (c) Salaries of the Ombudsman and staff and expenses for rent, equipment, supplies, and general operating expenses necessary for the work of the Office shall be as provided in the State budget. #### Section 9-4004 (a) The Office, in response to a complaint or on the Ombudsman's initiative, shall: (1) investigate any administrative act that the Ombudsman determines may be: (i) contrary to law or regulation; (ii) based on a mistake of fact; (iii) unsupported by sufficient evidence; (iv) performed in an inefficient manner; (v) unreasonable under the totality of the circumstances; or (vi) otherwise erroneous; (2) conduct independent reviews and assessments of: (i) health services, including substance use disorder assessments and treatment, provided to individuals confined by any agency; (ii) mental health services provided to individuals confined by any agency; (iii) plans by agencies to expand, renovate, or close facilities; (iv) educational and vocational programs for individuals confined by any agency; and (v) agency policies on restrictive or protective housing; (3) cooperate with any agency in efforts to improve the functioning of any agency or prevent abuses by agencies; (4) inspect any facilities owned or controlled by any agency to monitor conditions in the facilities; (5) seek to resolve complaints against an agency through mediation or other conflict resolution methods; (6) maintain a website that: (i) subject to the requirements of subsection (f) of this section, makes current and past reports available to the public; and (ii) provides contact information for the Office; and (7) adopt regulations necessary to carry out the requirements of this subtitle. (b) (1) The Office shall investigate each complaint about an administrative act, unless the Office determines that: (i) the complaint could be addressed through another process; (ii) the complaint is trivial, frivolous, vexatious, or not made in good faith; (iii) the complainant unreasonably delayed in bringing the complaint; or (iv) the Office lacks sufficient resources to investigate the complaint. (2) The Office shall promptly inform a complainant of a decision not to investigate a complaint. (3) On request, the Office shall promptly inform a complainant of the status of an investigation. (4) On the completion of an investigation based on a complaint, the Office shall promptly inform the complainant of any conclusions, recommendations, and actions taken in response to the complaint. (c) If the Office determines that an employee or agent of an agency acted in a manner warranting criminal charges or disciplinary proceedings, the Office shall promptly refer the matter to appropriate authorities. (d) The Office may: (1) interview agency personnel or any individual confined by an agency; (2) access any records maintained by an agency; (3) perform unannounced site visits and on-site inspections of facilities maintained by an agency; (4) receive and respond to complaints without interception, review, or interference by an agency; (5) review all reports of disciplinary actions, grievances, and grievance dispositions by the agency; and (6) collaborate with any agency or any unit of State government to investigate complaints or any alleged injury, neglect, or death of an individual confined by or under the supervision of an agency. (e) (1) The Office may subpoena any individual to appear to give sworn testimony or produce documentary evidence that is reasonably necessary to carry out the Office's duties. (2) If an individual fails or refuses to comply with a subpoena issued by the Office, a court of competent jurisdiction, on the application of the Office, may issue an attachment for the individual and compel the individual to comply with the subpoena, appear before the Office, and produce documentary evidence for examination and give testimony. (3) If an individual disobeys a subpoena or refuses to testify, the court may punish the individual for contempt. (f) In performing the duties assigned under this subtitle, the Office shall treat all complaints as confidential and may reveal the details of any complaints only if it is: (1) necessary to carry out the Office's duties; and (2) done in accordance with applicable State and federal law. #### Section 9-4005 (a) Within 30 days after completing an investigation, the Office shall submit to an agency a report containing any conclusions, recommendations, and requests for a response from the agency. (b) If the report submitted to an agency under this section contains a request for a response from the agency, the agency shall provide a written response within 45 days after receipt of the report. (c) The Office may provide the report required by this section, as well as any responses by the agency, to the Governor or, in accordance with Sec. 2-1257 of this article, the General Assembly. #### Section 9-4006 (a) On or before December 31 each year, the Office shall report to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly on: (1) investigations conducted by the Office; (2) any actions taken by an agency as a result of the conclusions or recommendations of the Office; (3) any instance where an agency rejects a recommendation or conclusion of the Office; and (4) information on any death of an individual confined by or under the care of an agency. (b) In addition to the report required by subsection (a) of this section, the Office shall provide to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly any other reports that the Governor or the General Assembly may require. (c) A report prepared under this section shall be published on the Office's website. #### Section 9-4007 (a) In this section, "Board" means the Correctional Ombudsman Advisory Board. (b) There is a Correctional Ombudsman Advisory Board. (c) The purposes of the Board are to: (1) provide information to the Office; and (2) assist the Office in: (i) identifying appropriate matters to investigate; and (ii) developing processes by which complaints are submitted, reviewed, investigated, and resolved. (d) The Board shall consist of 12 members appointed by the Governor. (e) To the extent practicable, the Governor shall ensure that the membership of the Board includes: (1) family members of confined individuals; (2) returning citizens; (3) nonsupervisory correctional officers; (4) members of the public with a demonstrated interest in corrections; (5) individuals with backgrounds in health care and social work; (6) individuals with backgrounds in mental health care and substance use disorder treatment; and (7) at least two individuals with experience managing a large government agency. (f) (1) The Board may not include more than three members who are current or former employees of the Department of Public Safety and Correctional Services. (2) No member of the Board may be currently employed by the Department of Public Safety and Correctional Services in a supervisory capacity. (g) A member of the Board serves at the pleasure of the Governor. (h) The Office shall provide staff for the Board. #### Section 9-4008 (a) The Office shall review potential federal funding sources, including grants offered under the Justice Reinvestment Initiative and the Second Chance Act. (b) The Office may apply for relevant funding sources. #### Section 9-4011 (a) In this part the following words have the meanings indicated. (b) "Department" means the Department of Juvenile Services. (c) "Disciplinary action" means any punitive action against a child that results in more security, additional obligations, or less personal freedom. (d) "Executive Director" means the Executive Director of the Governor's Office of Crime Prevention and Policy. (e) "Facility" means: (1) a residential facility operated by the Department; (2) a residential facility owned by the Department but privately operated; and (3) a residential facility licensed by the Department. (f) (1) "Grievance" means a complaint made by a child or on behalf of a child due to a circumstance or an action considered to be unjust. (2) "Grievance" does not include an employee grievance, disciplinary appeal, or complaint. (g) "Juvenile justice monitor" means an individual employed by the Office of the Correctional Ombudsman to determine whether the needs of children under the jurisdiction of the Department are being met in compliance with State law, that their rights are being upheld, and that they are not being abused. (h) "Secretary" means the Secretary of Juvenile Services. (i) "Unit" means the Juvenile Justice Monitoring Unit of the Office. #### Section 9-4012 (a) There is a Juvenile Justice Monitoring Unit of the Office of the Correctional Ombudsman. (b) The function of the Unit is to investigate and determine whether the needs of children under the jurisdiction of the Department of Juvenile Services are being met in compliance with State law, that their rights are being upheld, and that they are not being abused. #### Section 9-4013 (a) The Unit shall include: (1) a full-time Director of Juvenile Justice Monitoring; and (2) staff, including juvenile justice monitors, as provided in the State budget. (b) Salaries of the Director and juvenile justice monitors and expenses for rent, equipment, supplies, and general operating expenses necessary for the work of the Unit shall be as provided in the State budget. (c) In cooperation with the Secretary of Budget and Management, the Correctional Ombudsman shall set minimum salaries, qualifications, and standards of training and experience for positions with the Unit. #### Section 9-4014 The Unit shall: (1) evaluate at each facility: (i) the child advocacy grievance process; (ii) the Department's monitoring process; (iii) the treatment of and services to youth; (iv) the physical conditions of the facility; and (v) the adequacy of staffing; (2) review all reports of disciplinary actions, grievances, and grievance dispositions received from each facility and alterations in the status or placement of a child that result in more security, additional obligations, or less personal freedom; (3) receive copies of the grievances submitted to the Department; (4) perform unannounced site visits and on-site inspections of facilities; (5) receive and review all incident reports submitted to the Department from facilities; (6) receive reports of the findings of child protective services investigations of allegations of abuse or neglect of a child in a facility; (7) ensure that each facility is in compliance with the regulations applicable to residential facilities; (8) monitor the implementation of educational programs at each residential facility; (9) collaborate with the Department, the Department of Human Services, the Maryland Department of Health, and the Governor's Office of Crime Prevention and Policy in all matters related to the licensing and monitoring of children's residential facilities; and (10) have a representative available to attend meetings of the advisory boards established under Sec. 9-230 of the Human Services Article and meetings of the Juvenile Services Education Board established under Sec. 9-502 of the Human Services Article. #### Section 9-4015 (a) The Unit may: (1) review relevant laws, policies, procedures, and juvenile justice records, including records relating to individual youth; (2) on request, conduct interviews with staff, youth, and others; (3) review investigative reports produced by the Department relating to youth in facilities; and (4) participate, within the context of the local department of social services' multidisciplinary team process, in a child protective services investigation conducted under Title 5, Subtitle 7 of the Family Law Article concerning any allegation of abuse or neglect within any assigned facility. (b) (1) The Unit may subpoena any individual to appear to give sworn testimony or produce documentary evidence that is reasonably necessary to carry out the Unit's duties. (2) If an individual fails or refuses to comply with a subpoena issued by the Unit, a court of competent jurisdiction, on the application of the Unit, may issue an attachment for the individual and compel the individual to comply with the subpoena, and appear before the Unit and produce documentary evidence for examination and give testimony. (3) If an individual disobeys a subpoena or refuses to testify, the court may punish the individual for contempt. #### Section 9-4016 (a) The Unit shall report in a timely manner to the Executive Director, the Secretary, the Commission on Juvenile Justice Reform and Emerging and Best Practices, and, in accordance with Sec. 2-1257 of this article, the Speaker of the House of Delegates and the President of the Senate: (1) knowledge of any problem regarding the care, supervision, and treatment of children in facilities; (2) findings, actions, and recommendations, related to the investigations of disciplinary actions, grievances, incident reports, and alleged cases of child abuse and neglect; and (3) all other findings and actions related to the monitoring required under this subtitle. (b) (1) The Unit shall report quarterly to the Executive Director and the Secretary. (2) A copy of the report shall be provided to the Commission on Juvenile Justice Reform and Emerging and Best Practices and, in accordance with Sec. 2-1257 of this article, the General Assembly. (3) The report shall include: (i) all activities of the Unit; (ii) actions taken by the Department resulting from the findings and recommendations of the Unit, including the Department's response; and (iii) a summary of any violations of the standards and regulations of the Department that remained unabated for 30 days or more during the reporting period. (c) Beginning in 2006, on or before November 30 of each year, the Unit shall report to the Executive Director, the Secretary, the Commission on Juvenile Justice Reform and Emerging and Best Practices, the Governor, and, in accordance with Sec. 2-1257 of this article, the General Assembly, on all the activities of the Office and the actions taken by the Department in response to findings and recommendations of the Unit. ### Subtitle 41. Department of Social and Economic Mobility #### Section 9-4101 (a) In this subtitle the following words have the meanings indicated. (b) "Department" means the Department of Social and Economic Mobility. (c) "Secretary" means the Secretary of Social and Economic Mobility. (d) "Unit of State government" or "unit" means an agency or unit of the Executive Branch of State government. #### Section 9-4102 (a) There is a Department of Social and Economic Mobility, established as a principal department of the State government. (b) (1) The head of the Department is the Secretary of Social and Economic Mobility, who shall be appointed by the Governor with the advice and consent of the Senate. (2) The Secretary serves at the pleasure of the Governor. (c) The following units are in the Department: (1) the Office of Minority Business Enterprises; (2) the Office of Small, Minority, and Women Business Affairs; and (3) the Office of Social Equity. (d) The Department shall employ staff to carry out its duties as provided in the State budget. #### Section 9-4103 (a) The purpose of the Department is to: (1) provide support for units of State government, individuals, and businesses for the maintenance of social equity policies in the State; (2) monitor trends in social equity programs and policies across the nation; (3) propose new and innovative approaches to social equity programs; (4) compile and produce reports and recommendations related to social equity; (5) ensure the fulfillment of the roles and responsibilities of the entities and social equity programs in the State for which it is the successor; (6) track the performance of social equity programs and small or disadvantaged business assistance programs; (7) promote and encourage full participation in the regulated cannabis industry by individuals from communities that have previously been disproportionately impacted by the war on drugs in order to positively impact those communities and other duties assigned to the Office of Social Equity established under this subtitle; (8) support small or disadvantaged businesses in the State through all duties assigned to the Governor's Office of Small, Minority, and Women Business Affairs; and (9) carry out the duties of the Office of Minority Business Enterprises within the Maryland Department of Transportation, including duties assigned to support small or disadvantaged businesses. (b) The Department shall: (1) connect a person with programs in State, federal, and local government that serve designated populations to ensure the person is connected to programs and other opportunities the person is eligible for; (2) provide units of State government with assistance related to the purpose of the Department by: (i) facilitating information sharing between units; (ii) maintaining an inventory of social equity work performed by each unit and relevant reports from those units; (iii) conducting policy analyses on social equity and the effectiveness of social equity programs; (iv) adopting standards for units to promote social equity; and (v) providing technical assistance to units; and (3) adopt regulations to carry out this subtitle. #### Section 9-4104 A unit of State government other than the Department shall: (1) ensure that a person that interacts with the unit's program for designated populations is connected with all State programs for which the person may be eligible by referring the person to the Department; and (2) utilize standards set by the Department related to social equity. #### Section 9-4105 On or before December 1, 2026, and each year thereafter, the Department shall report to the Governor and, in accordance with Sec. 2-1257 of this article, the General Assembly on: (1) the work of the Department in the immediately preceding year; and (2) recommended changes to laws or policies to promote social equity. #### Section 9-4106 (a) The Attorney General is legal adviser to the Department. (b) The Attorney General shall assign to the Department the number of assistant Attorneys General authorized by law to be assigned to the Department and any additional assistant Attorneys General necessary to give effective legal advice and counsel. (c) The Attorney General also shall designate an assistant Attorney General as counsel to the Department. #### Section 9-4107 (a) In this section, "Fund" means the Department of Social and Economic Mobility Special Fund. (b) There is a Department of Social and Economic Mobility Special Fund. (c) The purpose of the Fund is to pay the costs of the operation of: (1) the Office of Social Equity; and (2) the Office of Minority Business Enterprises. (d) The Department shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) (1) The Fund consists of: (i) revenue distributed to the Fund under Sec. 2-1302.2 of the Tax - General Article; (ii) money appropriated in the State budget to the Fund; (iii) interest earnings of the Fund; and (iv) any other money from any other source accepted for the benefit of the Fund. (2) The Governor shall include in the annual budget bill an appropriation from the Transportation Trust Fund to the Fund equal to the amount necessary to defray the operations and administrative expenses of the Office of Minority Business Enterprises. (g) The Fund may be used only for paying the costs of the operation and administrative expenses of: (1) the Office of Social Equity; and (2) the Office of Minority Business Enterprises. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (i) Expenditures from the Fund may be made only in accordance with the State budget. (j) Money expended from the Fund for the Office of Social Equity or the Office of Minority Business Enterprises is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Office of Social Equity or the Office of Minority Business Enterprises. #### Section 9-4108 (a) There is an Office of Social Equity within the Department. (b) (1) The Governor shall appoint an Executive Director of the Office of Social Equity. (2) The Executive Director of the Office of Social Equity shall have at least 5 years of experience in civil rights advocacy, civil rights litigation, or another area of social justice. (c) The Office of Social Equity may employ staff and retain contractors as may be required to carry out the functions of the Office. (d) The Office of Social Equity shall: (1) promote and encourage full participation in the regulated cannabis industry by people from communities that have previously been disproportionately impacted by the war on drugs in order to positively impact those communities; (2) with the assistance of the Comptroller, oversee the Community Reinvestment and Repair Fund under Sec. 1-3A-03 of the Alcoholic Beverages and Cannabis Article; (3) consult with and assist the Department of Commerce in the administration of the Cannabis Business Assistance Fund under Sec. 5-1901 of the Economic Development Article; (4) identify and oppose regulations that unnecessarily burden or undermine the legislative intent of the Office, including regulations that impose undue restrictions or financial requirements; (5) oversee the appropriation of funds and the training of recipients of funds from the Community Reinvestment and Repair Fund under Sec. 1-3A-03 of the Alcoholic Beverages and Cannabis Article; (6) provide recommendations to the Maryland Cannabis Administration on regulations related to: (i) diversity; and (ii) social equity applications; (7) work with the Maryland Cannabis Administration to implement free technical assistance for social equity and minority cannabis business applicants; (8) produce reports and recommendations on diversity and equity in ownership, management, and employment in the legal cannabis economy; and (9) assist businesses with obtaining financing through the Capital Access Program under Title 36, Subtitle 14 of the Alcoholic Beverages and Cannabis Article. #### Section 9-4111 (a) In this part the following words have the meanings indicated. (b) "Governor's Subcabinet" means the Governor's Subcabinet on Socioeconomic Procurement Participation. (c) (1) "Minority person" means: (i) an individual who has been deprived of the opportunity to develop and keep a competitive position in the economy because of a social or economic disadvantage that arises from cultural, racial, or other similar causes; or (ii) a sheltered workshop for individuals with disabilities. (2) "Minority person" includes: (i) an Aleut; (ii) an American Indian; (iii) a Black; (iv) an Eskimo; (v) a Hispanic; (vi) an Oriental; (vii) a Puerto Rican; or (viii) a woman. (d) "Office" means the Office of Small, Minority, and Women Business Affairs. (e) "Special Secretary" means the Special Secretary for the Office of Small, Minority, and Women Business Affairs. #### Section 9-4112 There is an Office of Small, Minority, and Women Business Affairs in the Department. #### Section 9-4113 (a) The head of the Office of Small, Minority, and Women Business Affairs is the Special Secretary, who shall be appointed by and serves at the pleasure of the Governor. (b) The Special Secretary shall receive the salary provided in the State budget. #### Section 9-4114 (a) There is a Governor's Subcabinet on Socioeconomic Procurement Participation. (b) The Governor's Subcabinet is composed of: (1) the Secretary of Social and Economic Mobility, who shall serve as chair of the Subcabinet; (2) the Secretary of Budget and Management, or the Secretary's designee; (3) the Secretary of Commerce, or the Secretary's designee; (4) the Secretary of General Services, or the Secretary's designee; (5) the Secretary of Health, or the Secretary's designee; (6) the Secretary of Housing and Community Development, or the Secretary's designee; (7) the Secretary of Human Services, or the Secretary's designee; (8) the Secretary of Information Technology, or the Secretary's designee; (9) the Secretary of Labor, or the Secretary's designee; (10) the Secretary of Public Safety and Correctional Services, or the Secretary's designee; (11) the Secretary of Transportation, or the Secretary's designee; (12) the Secretary of Veterans and Military Families, or the Secretary's Designee; (13) the Chief Procurement Officer for the State, or the Chief Procurement Officer's designee; (14) the Minority Business Enterprise Ombudsman, or the Ombudsman's designee; and (15) any other head of a department or agency that is accountable to the Governor, as deemed necessary by the Governor. (c) The Governor's Subcabinet shall: (1) meet: (i) a minimum of once each quarter; and (ii) at a frequency deemed appropriate by the chair; (2) study socioeconomic procurement programs in other states to identify successes and best practices; (3) develop accountability measures for procurement forecasts, strategic plans, Procurement Review Group processes, and liaison officer accountability; (4) work with the Office of State Procurement to implement process improvements that directly impact socioeconomic procurement businesses' ability to fairly compete for and understand State contracting opportunities; (5) identify and recommend statutory and regulatory reforms to strengthen and improve the State's socioeconomic procurement programs; and (6) recommend actions to make improvements to the Small Business Reserve Program, the Minority Business Enterprise Program, and the Veteran Small Business Enterprise Program. (d) On or before December 31, 2025, and each December 1 thereafter, the Governor's Subcabinet shall report to the Governor on the Governor's Subcabinet's activities, progress, and recommendations. #### Section 9-4115 (a) In addition to any duties set forth elsewhere, the Office shall conduct necessary and appropriate research to determine the nature and extent of the problems concerning black males and offer recommendations exclusively pertinent to black males in the areas of: (1) unemployment; (2) criminal justice; (3) education; and (4) health. (b) As authorized by the Governor, the Special Secretary may create an Advisory Committee on Black Males to assist and advise the Office in developing recommendations in accordance with subsection (a) of this section. (c) The Office shall submit its findings and recommendations in accordance with this section to the Governor and, subject to Sec. 2-1257 of this article, the General Assembly on or before January 1, 1995 and annually thereafter. #### Section 9-4116 (a) In this section, "Ombudsman" means the Minority Business Enterprise Ombudsman in the Office. (b) There is a Minority Business Enterprise Ombudsman appointed by the Special Secretary. (c) In accordance with the State budget, the Special Secretary shall allocate the staff and Office resources to the Ombudsman necessary for the Ombudsman to fulfill the duties of the Ombudsman. (d) The Ombudsman shall: (1) assist the procurement officer managing the contract in attempts to resolve disputes between minority business enterprises and prime contractors, including disputes over contract scope and payments; (2) serve as a resource to minority business enterprise liaisons, procurement officers in units of State government, prime contractors, and minority business enterprises in resolving disputes related to contracts that include a minority business enterprise participation goal; and (3) conduct trainings for procurement officers in units of State government on enforcement of the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article, including the assessment of liquidated damages under Sec. 14-303(b)(6) of the State Finance and Procurement Article. (e) In resolving a dispute under subsection (d) of this section, the Ombudsman may: (1) compel prime contractors and minority business enterprises to provide documentation related to contract performance and payments; and (2) assist the procurement officer managing the contract in ordering any relevant payments to be made in conjunction with a dispute resolution. (f) (1) Except as provided in paragraph (2) of this subsection, when resolving a dispute under subsection (d) of this section, the Ombudsman may not disclose information received from a unit of State government, prime contractor, or minority business enterprise without the written consent of the party from whom the information was obtained. (2) The Ombudsman may disclose information received under this section to the assistant Attorney General assigned to the Office. #### Section 9-4117 Subject to the limitations of any law that governs the activities of other units of the Executive Branch of the State government, the Special Secretary shall: (1) advise the Governor on: (i) the activities of the State government that are intended to promote: (1) the employment of minority persons in the State; and (2) State contracting opportunities available to and the accessibility of those contracting opportunities to companies owned by minority persons, small businesses, and veteran-owned small businesses; and (ii) each other matter that affects the rights and interests of minority persons, small businesses, and veteran-owned small businesses and the communities in which they live, work, and provide employment opportunities to others; and (2) as authorized by the Governor: (i) provide help to minority persons, small businesses, and veteran-owned small businesses and the communities in which they live, work, and employ others; (ii) represent the Governor in any matter that relates to minority persons, small businesses, and veteran-owned small businesses or generally to the promotion of equality among the people of the State; and (iii) perform any other responsibility that the Governor assigns. #### Section 9-4118 (a) (1) In this section the following words have the meanings indicated. (2) "Primary procurement unit" has the meaning stated in Sec. 11-101 of the State Finance and Procurement Article. (3) "Small business" has the meaning stated in Sec. 14-501 of the State Finance and Procurement Article. (b) The Office shall consult with each primary procurement unit to identify potential contracting opportunities for and increase outreach efforts to small businesses. (c) The Office, in consultation with primary procurement units, shall: (1) identify and increase awareness of procurement opportunities for small businesses for services and supplies; and (2) assist small businesses with procedures for bidding on a procurement contract or responding to a request for proposals. #### Section 9-4119 (a) This section applies to the following minority business enterprises: (1) a publicly owned business if 1 or more minority persons own at least 51% of the stock of the business; or (2) any other business if 1 or more minority persons own at least 50% of the business. (b) Subject to the limitations of any law that governs the activities of other units of the Executive Branch of the State government, the Special Secretary shall: (1) carry out each State or federal program that is created to promote the growth of or participation in minority business enterprises; (2) promote and coordinate training regarding the requirements of the Minority Business Enterprise Program; (3) promote, coordinate, and participate in the plans, programs, and operations of the State government that promote or otherwise affect the establishment, preservation, and strengthening of minority business enterprises; (4) promote activities and the use of the resources of the State government, local governments, and private entities for the growth of minority business enterprises; (5) coordinate the effort of private entities and public agencies to develop minority business enterprises; (6) establish a system to develop, collect, summarize, and give out information that would help a person to: (i) establish a minority business enterprise; (ii) operate a minority business enterprise successfully; or (iii) promote the establishment and successful operation of minority business enterprises; (7) establish a mentoring program: (i) in which larger and more established minority businesses can mentor start-up and small minority businesses; and (ii) that incentivizes mentor participation by providing benefits to mentors, including: (1) special recognition on the Office website, and in the Office newsletter and participation updates; (2) a certificate of participation awarded by the Office; (3) the opportunity to present highlights of mentor and protege relationships at an annual appreciation event sponsored by the Office; and (4) increased networking and educational opportunities; (8) conduct a feasibility study for creating a technical assistance program in the Office that provides one-on-one assistance to minority businesses in submitting competitive and successful bids and proposals for procurement contracts; (9) provide training and educational opportunities for nonminority prime contractors regarding the duties and responsibilities of a prime contractor with respect to minority businesses; and (10) subject to the limitations of law and the availability of funds: (i) provide technical and managerial assistance to minority business enterprises; (ii) provide the managerial and organizational framework for private entities and units of the State government to plan and carry out joint undertakings that relate to minority business enterprises; (iii) pay, wholly or partly, the costs of a pilot or demonstration project that is intended to overcome the special problems of minority business enterprises; and (iv) establish an annual awards program to recognize localities that demonstrate the highest excellence in minority business enterprise support. #### Section 9-4120 (a) On or before the 15th day of each regular session of the General Assembly, the Special Secretary shall send an annual report on the Office of Small, Minority, and Women Business Affairs: (1) to the Governor; and (2) subject to Sec. 2-1257 of this article, to the General Assembly. (b) The annual report may be prepared in conjunction with the report required under Sec. 14-305(b) of the State Finance and Procurement Article. #### Section 9-4121 (a) The Office shall develop a scorecard to evaluate units of State government on the units' performance toward meeting: (1) the minority business enterprise participation goal established under Sec. 14-302 of the State Finance and Procurement Article; and (2) the veteran-owned small business enterprise goal established under Sec. 14-602 of the State Finance and Procurement Article. (b) The scorecard shall include a grading scale developed by the Office as a weighted system that includes each unit's contribution toward meeting the statewide: (1) minority business enterprise participation goal; and (2) veteran-owned small business enterprise goal. (c) (1) The Office shall publish the grades achieved by each unit under this section each year on the Office's website. (2) Within 30 days of publishing information on its website in accordance with paragraph (1) of this subsection, the Office shall submit the information published on its website to the General Assembly, in accordance with Sec. 2-1257 of this article. #### Section 9-4122 (a) On or before June 30 each year, each unit shall submit to the Office a procurement forecast for all procurement contracts over $100,000 for the upcoming fiscal year. (b) (1) On or before August 15 each year, each unit shall submit annually the unit's reconciliation of the prior fiscal year's procurement forecast to include: (i) the status of the forecasted procurements; (ii) the total number of forecasted contracts that have been awarded; and (iii) the total number of procurements that have been awarded but were unanticipated by the unit's prior fiscal year's procurement forecast. (2) Each unit shall notify the Office within 15 days of any updates to the existing forecast, including: (i) additional procurements forecasted for the current fiscal year; and (ii) any previously forecasted procurements that are no longer anticipated to occur during the fiscal year. (3) The Office shall publish the information provided by each unit on the Office's website. --- Md. Code Ann., State Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)