Md. Code, State Finance and Procurement, Title 3

Md. Code, State Finance and Procurement, Title 3
in effect

Md. Code, State Finance and Procurement § 3-101

(a) In this title the following words have the meanings indicated. (b) “Department” means the Department of Budget and Management. (c) “Secretary” means the Secretary of Budget and Management.

Md. Code, State Finance and Procurement § 3-202

(a) The head of the Department is the Secretary of Budget and Management, who shall be appointed by the Governor with the advice and consent of the Senate. (b) The Secretary must have experience in public finance, budgeting, management, and fiscal planning. (c) Before taking office, the appointee shall take the oath required by Article I, § 9 of the Maryland Constitution. (d) (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 those matters. (2) The Secretary is responsible for the operation of the Department and shall establish guidelines and procedures to promote the orderly and efficient administration of the Department. The Secretary may establish, reorganize, or abolish areas of responsibility in the Department as necessary to fulfill the duties assigned to the Secretary. (3) The Secretary is responsible for establishing policy to be followed by the units in the Department. (e) The Secretary is entitled to the salary provided in the State budget.

Md. Code, State Finance and Procurement § 3-203

(a) (1) With the approval of the Governor, the Secretary shall appoint a Deputy Secretary. (2) The Deputy Secretary: (i) is in the executive service of the State Personnel Management System and serves at the pleasure of the Secretary; (ii) is entitled to the salary provided in the State budget; and (iii) has the duties provided by law or delegated by the Secretary. (b) (1) The Secretary shall appoint 1 or more budget analysts. (2) The budget analysts shall: (i) continually conduct studies of all budget expenditures of units of the Executive Branch of the State government; (ii) make recommendations to the Secretary for greater efficiency and economy in those units; and (iii) perform any other duties that the Secretary assigns. (c) (1) The Secretary may employ a staff in accordance with the State budget. (2) Each assistant secretary and professional consultant is in the executive service, management service, or is a special appointment in the State Personnel Management System and is appointed by and serves at the pleasure of the Secretary. (3) Except as provided in this section or otherwise by law, the Secretary shall appoint and remove all other staff in accordance with the provisions of the State Personnel and Pensions Article. (4) The appointment or removal of staff of any unit in the Department is subject to the approval of the Secretary.

Md. Code, State Finance and Procurement § 3-204

(a) The Secretary is responsible for the budget of the Department. (b) The Secretary may adopt regulations for the Department and its units. (c) The Secretary may create any citizens’ advisory body that the Secretary considers necessary for the operation of the Department. (d) The Secretary shall have a seal. (e) (1) The Secretary is responsible for the comprehensive planning of programs and services of the Department. (2) The Secretary shall review the plans of the units in the Department and may approve or disapprove any of the plans.

Md. Code, State Finance and Procurement § 3-206

(a) The Attorney General is legal adviser to the Department. (b) (1) With the advice of the Secretary, the Attorney General shall assign at least 1 assistant Attorney General to the Central Collection Unit. (2) At the request of the Governor, the Attorney General shall assign to the Department: (i) at least 1 assistant Attorney General; and (ii) any other assistant Attorneys General authorized by law to be assigned to the Department. (c) (1) The Attorney General shall designate 1 of the assistant Attorneys General assigned to the Department as counsel to the Department. After the Attorney General designates the counsel to the Department, the Attorney General may not reassign the counsel without consulting the Secretary. (2) The counsel may have no duty other than to give the legal aid, advice, and counsel required by the Secretary or any other official of the Department, to supervise the other assistant Attorneys General assigned to the Department and its Central Collection Unit, and to perform for the Department the duties that the Attorney General assigns. The counsel shall perform these duties subject to the control and supervision of the Attorney General. (d) Each assistant Attorney General who is assigned to the Central Collection Unit shall devote full time to the duties with that Unit and may have no other duties. (e) The Secretary may contract with another attorney to handle on an agreed case by case basis a collection for the Central Collection Unit if it is not feasible for any of the assistant Attorneys General assigned to the Unit to handle the collection.

Md. Code, State Finance and Procurement § 3-207

(a) (1) In this section the following words have the meanings indicated. (2) “Historically black colleges and universities” means Bowie State University, Coppin State University, Morgan State University, and University of Maryland Eastern Shore. (3) “Interagency agreement” means an agreement between an agency or unit of the Executive Branch of State government and a public institution of higher education that: (i) has a duration of 3 years or more; (ii) was in place during any part of the immediately preceding fiscal year; and (iii) has a total value of more than $750,000. (b) At least once every 3 years, the Department shall review each interagency agreement to determine: (1) whether the agreement is necessary and should continue; (2) whether the services can be provided more cost effectively by the agency or unit or through a competitive procurement; and (3) whether the agreement is being utilized due to the agency’s or unit’s inability to recruit or retain positions and, if so, whether an annual salary review should be conducted to address recruitment or retention issues. (c) The Department shall establish a cycle to review one–third of the interagency agreements each year. (d) (1) Subject to paragraphs (2) and (3) of this subsection, on or before December 1 each year, the Department shall report a summary of the findings of the review required under subsection (b) of this section to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Department of Legislative Services, in accordance with § 2–1257 of the State Government Article. (2) In each report required under paragraph (1) of this subsection, the Department shall provide the following information: (i) the interagency agreements that will continue; (ii) services that will be competitively procured; (iii) services that will be provided by the agency or unit as a result of the review; (iv) services that have been or will be canceled as a result of the review; and (v) actions taken to address recruitment or retention issues identified as a result of the review. (3) In each report required under paragraph (1) of this subsection, the Department shall provide information on interagency agreements with historically black colleges and universities, including: (i) the total percentage of interagency contracts with historically black colleges and universities, by agency or unit; and (ii) any recommendations for regulatory or statutory changes necessary to address barriers to interagency agreements with historically black colleges and universities.

Md. Code, State Finance and Procurement § 3-301

(a) There is a Central Collection Unit in the Department. (b) (1) All employees and personnel of the Central Collection Unit shall: (i) except for assistant Attorneys General assigned to the Central Collection Unit, be in the management service or special appointments in the State Personnel Management System who are appointed by and serve at the pleasure of the Secretary and are not subject to Title 11, Subtitle 2 of the State Personnel and Pensions Article; and (ii) receive such compensation as provided in the State budget. (2) Except for employees in the Executive Pay Plan and any assistant Attorneys General assigned to the Central Collection Unit, a management service or special appointment of the skilled service or the professional service employee of the Central Collection Unit may not be permanently removed except for cause and until written charges have been filed and a hearing has been conducted in accordance with Title 10, Subtitle 2 of the State Government Article. This paragraph does not apply to the removal of a management service or special appointment employee because of a layoff that resulted from: (i) a lack of work; or (ii) the lack of an appropriation. (c) (1) The Secretary of Budget and Management may establish a performance incentive program to provide pay incentives for employees of the Central Collection Unit. (2) Pay incentives provided to employees under this subsection shall be paid from the Central Collection Fund established under § 3-306 of this subtitle as provided in the State budget. (3) Pay incentives may not be provided under this subsection if: (i) the Central Collection Unit sustains an operating loss for the fiscal year in which the pay incentives were earned; or (ii) funds are not available in the Central Collection Fund to pay the incentives.

Md. Code, State Finance and Procurement § 3-302

(a) (1) Except as otherwise provided in subsection (b) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central Collection Unit is responsible for the collection of each delinquent account or other debt that is owed to the State or any of its officials or units. (2) (i) Except as provided in subparagraph (ii) of this paragraph, an official or unit of the State government shall refer to the Central Collection Unit each debt for which the Central Collection Unit has collection responsibility under this subsection and may not settle the debt. (ii) A public institution of higher education may not refer a delinquent student account or debt to the Central Collection Unit unless, in accordance with § 15–120 of the Education Article: 1. the delinquent account or debt has not been settled by the end of the late registration period of the semester after the student account became delinquent; or 2. the student has not entered into or made timely payments to satisfy an installment payment plan. (3) For the purposes of this subtitle, a community college or board of trustees for a community college established or operating under Title 16 of the Education Article is a unit of the State. (b) Unless, with the approval of the Secretary, a unit of the State government assigns the claim to the Central Collection Unit, the Central Collection Unit is not responsible for and may not collect: (1) any taxes; (2) any child support payment that is owed under § 5–308 of the Human Services Article; (3) any unemployment insurance contribution or overpayment; (4) any fine; (5) any court costs; (6) any forfeiture on bond; (7) any money that is owed as a result of a default on a loan that the Department of Commerce or the Department of Housing and Community Development has made or insured; (8) any money that is owed under Title 9, Subtitles 2, 3, and 4 and Title 20 of the Insurance Article; (9) any money that is owed for unpaid video tolls and associated civil penalties under § 21–1414 of the Transportation Article under a delinquent account associated with a person residing outside the State; or (10) any money that is owed under a delinquent account for unpaid video tolls and associated civil penalties and is recalled by the Maryland Transportation Authority under § 21–1414(h) of the Transportation Article. (c) The Central Collection Unit shall be responsible for the collection of each delinquent account or other debt that is owed to a community college established or operating under Title 16 of the Education Article if the board of trustees for the community college: (1) adopts a resolution appointing the Central Collection Unit as the collector of delinquent accounts or other debt; and (2) submits the resolution to the Central Collection Unit.

Md. Code, State Finance and Procurement § 3-303

The Secretary may adopt regulations that relate to collections under this subtitle, including: (1) procedures for referral of a debt or claim; (2) the information that supports the debt or claim; and (3) the rate of fees to be charged under § 3-304 of this subtitle.

Md. Code, State Finance and Procurement § 3-304

(a) In carrying out its responsibilities, the Central Collection Unit may: (1) (i) institute, in its name, any action that is available under State law for collection of a debt or claim; or (ii) without suit, settle the debt or claim; (2) for all debts or claims collected on or after June 1, 1992: (i) in addition to the outstanding principal and interest, assess and collect from the debtor a fee, which may not exceed 20% of the outstanding principal and interest, sufficient to cover all collection and administrative costs; and (ii) prior to crediting any amount to any agency which refers a debt for any purpose, withhold a fee sufficient to cover all collection and administrative costs; (3) waive or reduce any fee assessed under paragraph (2) of this subsection; and (4) certify a debt or claim and the debtor responsible for the debt or claim to: (i) the Comptroller for income tax refund interception in accordance with Title 13, Subtitle 9 of the Tax – General Article; and (ii) the State Lottery and Gaming Control Agency for State lottery prize interception in accordance with § 3–307 of this subtitle. (b) In addition to the authority provided under subsection (a) of this section, and notwithstanding that the Central Collection Unit is a unit of the State government and that assistant Attorneys General represent the Unit, the Unit may enforce a statutory or written contractual obligation of a debtor to pay costs in addition to principal, including collection costs, counsel fees, or interest penalties. (c) Notwithstanding any other provision of law, the Central Collection Unit may report any account referred to it under this section to a consumer reporting agency. (d) (1) Notwithstanding the provisions of § 9–602 of the Criminal Law Article, and subject to paragraphs (2) through (5) of this subsection, the Central Collection Unit may manage the monitoring and recording of incoming telephone calls: (i) to the automated call distribution system; and (ii) for training and quality control purposes. (2) Any monitored or recorded telephone call shall contain a notice to the telephone caller that “Your call may be recorded or monitored for training and quality control purposes”. (3) The Central Collection Unit may not record or monitor calls to or from a direct individual line of an employee of the Central Collection Unit. (4) The recording of an incoming telephone call to an employee of the Central Collection Unit may not be offered as evidence in a criminal or civil proceeding against any caller unless: (i) the caller has made a personal or imminent threat against an employee or property of the State; or (ii) the caller or caller’s representative first introduces the contents or existence of the recorded telephone call in the criminal or civil proceeding. (5) A recording of a telephone call may not be retained by the Central Collection Unit for longer than 60 days, unless the recording is being used or is to be used: (i) for training or quality control purposes; or (ii) in a criminal or civil proceeding under paragraph (4) of this subsection.

Md. Code, State Finance and Procurement § 3-305

(a) Except as otherwise provided in this section, the Central Collection Unit shall pay the net proceeds of collections into the State Treasury. (b) If the funds of a unit of the State government are not part of the State Treasury, the Central Collection Unit shall deliver to the Treasurer the net proceeds of collection on a debt or claim that was due to the unit of the State government for its account. (c) All fees collected under § 3-304(a)(2) of this subtitle shall be credited to the Central Collection Fund established under § 3-306 of this subtitle. (d) The Central Collection Unit shall deliver the net proceeds of collections from defendants or liable parents in arrears on restitution payments to the Division of Parole and Probation or the Department of Juvenile Services to be forwarded by the Division or Department to the victim or other appropriate person or agency in accordance with the judgment of restitution.

Md. Code, State Finance and Procurement § 3-306

(a) There is a Central Collection Fund. (b) The Central Collection Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this article. (c) The Fund shall consist of all fees collected under § 3–304(a)(2) of this subtitle. (d) Subject to the appropriation process in the State budget and subject to subsection (h) of this section, the Department shall use the Fund for the expenses of operating the Central Collection Unit. (e) The State Treasurer shall hold and the State Comptroller shall account for the Fund. (f) The Fund shall be invested and reinvested in the same manner as other State funds. (g) Investment earnings accrue to the benefit of the Fund. (h) For any fiscal year beginning on or after July 1, 2010, any balance in the Fund at the end of the fiscal year in excess of 15% of the actual expenses of operating the Central Collection Unit for that fiscal year reverts to the General Fund of the State.

Md. Code, State Finance and Procurement § 3-307

(a) Certification of a debt or claim owed to the State that the Central Collection Unit sends to the State Lottery and Gaming Control Agency under § 3–304(a)(4) of this subtitle shall contain: (1) the full name of the debtor and any other name known to be used by the debtor; (2) the Social Security number of the debtor; and (3) the amount of the debt. (b) If a debtor wins a lottery prize to be paid directly by the State Lottery and Gaming Control Agency, the State Lottery and Gaming Control Agency shall notify the debtor that: (1) the debtor has won a prize to be paid by the State Lottery and Gaming Control Agency; (2) the State Lottery and Gaming Control Agency has received notice from the Central Collection Unit of the debtor’s debt or claim owed to the State in the specified amount; (3) State law requires the State Lottery and Gaming Control Agency to withhold the prize and to pay it towards the debtor’s debt or claim; (4) the debtor may appeal to the Central Collection Unit if the debtor disputes the existence or the amount of the debt or claim; and (5) if an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency will transfer the prize or the part of the prize that equals the amount of the debt or claim to the Central Collection Unit. (c) (1) The State Lottery and Gaming Control Agency shall withhold all or part of the prize up to the amount of the debt or claim owed to the State until the Central Collection Unit notifies the State Lottery and Gaming Control Agency to whom the withheld prize money is to be paid. (2) The State Lottery and Gaming Control Agency shall honor lottery prize interception requests in the following order: (i) an interception request under § 10–113.1 of the Family Law Article; (ii) an interception request under § 11–618 of the Criminal Procedure Article; and (iii) an interception request under this section. (d) (1) On receipt of a notice from the State Lottery and Gaming Control Agency, a debtor who disputes the existence or amount of the debt or claim may appeal the proposed transfer in accordance with the provisions of the Administrative Procedure Act, Title 10, Subtitle 2 of the State Government Article. (2) If an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency shall transfer the amount of the prize withheld to the Central Collection Unit. (3) If the debtor appeals the proposed transfer, after a hearing the Central Collection Unit shall notify the State Lottery and Gaming Control Agency that the withheld prize shall be: (i) paid to the debtor; (ii) transferred to the Central Collection Unit; or (iii) in specified amounts, partly paid to the debtor and partly transferred to the Central Collection Unit. (e) The Secretary and the Director of the State Lottery and Gaming Control Agency may jointly adopt regulations to carry out this section.

Md. Code, State Finance and Procurement § 3-501

This subtitle does not apply to the purchase, lease, or rental of motor vehicles by the University College of the University of Maryland for use in University College overseas programs or by the Maryland Port Administration.

Md. Code, State Finance and Procurement § 3-502

(a) Consistent with Division II of this article, the Secretary shall approve and submit to the Board of Public Works for concurrence: (1) standards for purchase by the Department of General Services of motor vehicles for State use; and (2) all leases or rentals of motor vehicles for use by officials or employees of any unit of the Executive Branch of the State government, other than any individual motor vehicle lease or rental made under the Standard State Travel Regulations. (b) As far as practicable and feasible, the standards for purchase of motor vehicles shall be based on the lowest possible life cycle cost. (c) The purchase of State-owned motor vehicles for any unit of the Executive Branch of the State government shall be reviewed and approved by the Secretary before the purchase to ensure compliance with this section and § 3-503 of this subtitle and any implementing regulations.

Md. Code, State Finance and Procurement § 3-503

(a) (1) To ensure economical and efficient use of motor vehicles by units of the Executive Branch of the State government, the Secretary shall adopt and enforce regulations to carry out the provisions of this subtitle. (2) The regulations adopted under this section shall apply to: (i) all phases of the use and maintenance of State-owned motor vehicles; and (ii) the reimbursement of owners of privately owned motor vehicles. (3) The regulations shall be directed to: (i) requiring the effective, efficient, and inexpensive use of all motor vehicles; and (ii) compiling and maintaining accurate and detailed cost accounting records for all use of motor vehicles. (4) The regulations shall provide that, unless the Secretary determines on the basis of published criteria that the use of a State-owned motor vehicle is required for the efficient operation of a State program regardless of miles traveled, State-owned motor vehicles shall be allocated to those State employees accumulating the greatest mileage for official use. (b) Consistent with this section, the Secretary may reassign State-owned motor vehicles between or among units of the Executive Branch of the State government if federally funded programs are substantially reduced or discontinued. (c) Subject to § 2-1257 of the State Government Article, the Secretary shall submit to the General Assembly an annual report that includes, in detail: (1) the text of any regulations that have been adopted under this section and are currently in effect; and (2) a statement of any problems involved in ensuring compliance with this subtitle.

Md. Code, State Finance and Procurement § 3-601

(a) To establish relative priorities and avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the capital plans and capital programs of all units of the State government. Upon request of the General Assembly, the Department shall provide assistance to the General Assembly in the development and coordination of capital plans and capital programs for the Legislative Branch of State government. (b) To avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the capital plans and capital programs of federal, State, regional, and local governments.

Md. Code, State Finance and Procurement § 3-602

(a) The Department shall study each capital project proposed by any unit of the State government. (b) Except for a capital project designated as an emergency by the unit of the State government proposing the project, any unit of the State government requesting a capital project shall submit its request to the Department on or before June 30 of the fiscal year preceding the fiscal year in which the capital project is to begin. (c) Each request for a capital project by a unit of the State government, including the University System of Maryland, St. Mary’s College of Maryland, and Morgan State University, shall include a detailed list of all proposed expenditures for capital improvements to be funded from grants or nonbudgeted revenues. (d) (1) Before an appropriation may be authorized for preliminary planning of a proposed capital project: (i) the unit of the State government requesting the appropriation shall submit to the Department a program describing, in detail, the scope and purpose of the project; and (ii) the Secretary of Budget and Management must approve the program. (2) Before an appropriation may be authorized for construction of a proposed capital project: (i) the unit of State government requesting the appropriation shall submit to the Departments of Budget and Management and General Services a detailed design program, which shall include all information required by the Departments; and (ii) both the Secretary of Budget and Management and the Secretary of General Services must approve the detailed design program. (e) Except with the approval of the Secretary of Budget and Management and the Secretary of General Services, no change may be made in any proposed capital project after the preliminary plan for that project has been completed and approved. (f) (1) This subsection applies only to capital projects that involve construction of permanent or long-time duration. (2) When the request for an appropriation for a capital project is submitted to the General Assembly, the unit of the State government that would receive the capital project or a State officer on behalf of the unit shall submit to the General Assembly: (i) preliminary plans and outline specifications for the project that show the size, the type of construction, and the arrangement of each building; and (ii) a statement on the sufficiency of the proposed appropriation to pay fully for the costs of that project. (g) Total project funding may utilize alternative construction methods, such as: (1) design/build which involves a single solicitation to design and build the facility; or (2) “fast track” in which design and construction are implemented concurrently. (h) A request for total project funding may be authorized jointly by the Secretaries of Budget and Management and General Services if: (1) (i) the planning, design, construction, and equipment funds for the project have been authorized and itemized in the State budget bill or a supplementary appropriation bill; or (ii) the Secretaries make a determination, supported in writing and submitted to the Legislative Policy Committee of the General Assembly and the Board of Public Works, that: 1. total project funding is time critical and will result in significant cost savings; 2. there is compelling reason why the procedure required in this paragraph cannot be adopted; and 3. circumstances necessitate that consideration of the total project funding occur during the legislative interim, rather than during the legislative session; and (2) (i) the total project funding request has been submitted to the Legislative Policy Committee for its review and comment; (ii) written comment from the Legislative Policy Committee has been received or 45 days have elapsed after the Legislative Policy Committee has received the request and all supporting information; and (iii) the request has been approved by the Board of Public Works. (i) The submissions and approvals required by subsections (b) through (h) of this section are not required in connection with any capital project funded by the Transportation Trust Fund. (j) “Total project funding” means the funding for the planning, design, construction, and equipment of a capital project through a single appropriation or authorization or through a proposed capital lease. (k) “Capital lease” means any lease, defined as a capital lease in accordance with generally accepted accounting principles, that is used to finance the acquisition, purchase, construction, and any related renovation or alteration of real property that is the subject of a capital project.

Md. Code, State Finance and Procurement § 3-602.1

§3–602.1. (a) (1) In this section the following words have the meanings indicated. (2) “High performance building” means a building that: (i) meets or exceeds the current version of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) Green Building Rating System Silver rating; (ii) achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard approved by the Secretaries of Budget and Management and General Services; or (iii) complies with a nationally recognized and accepted green building code, guideline, or standard reviewed and recommended by the Maryland Green Building Council and approved by the Secretaries of Budget and Management and General Services. (3) “Major renovation” means the renovation of a building where: (i) the building shell is to be reused for the new construction; (ii) the heating, ventilating, and air conditioning (HVAC), electrical, and plumbing systems are to be replaced; and (iii) the scope of the renovation is 7,500 square feet or greater. (b) It is the intent of the General Assembly that, to the extent practicable: (1) the State shall employ green building technologies when constructing or renovating a State building not subject to this section; and (2) high performance buildings shall meet the criteria and standards established under the “High Performance Green Building Program” adopted by the Maryland Green Building Council. (c) (1) This subsection applies to: (i) capital projects that are funded solely with State funds; and (ii) community college capital projects that receive State funds. (2) Except as provided in subsections (d) and (e) of this section, if a capital project includes the construction or major renovation of a building that is 7,500 square feet or greater, the building shall be constructed or renovated to be a high performance building. (d) The following types of unoccupied buildings are not required to be constructed or renovated to be high performance buildings: (1) warehouse and storage facilities; (2) garages; (3) maintenance facilities; (4) transmitter buildings; (5) pumping stations; and (6) other similar types of buildings, as determined by the Department. (e) (1) The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government or a community college to obtain a waiver from complying with subsection (c) of this section. (2) The waiver process shall: (i) include a review by the Maryland Green Building Council established under § 4–809 of this article, to determine if the use of a high performance building in a proposed capital project is not practicable; and (ii) require the approval of a waiver by the Secretaries of Budget and Management, General Services, and Transportation.

Md. Code, State Finance and Procurement § 3-602.2

§3–602.2. (a) (1) In this section the following words have the meanings indicated. (2) “Commission” means the Maryland Commission on Public Art established under Title 4, Subtitle 6 of the Economic Development Article. (3) “Construction project” means the construction of a new building that is proposed to contain 15,000 or more square feet. (4) “Council” means the Maryland State Arts Council established under Title 4, Subtitle 5 of the Economic Development Article. (5) “Division” means the Division of Tourism, Film, and the Arts established under Title 4, Subtitle 1 of the Economic Development Article. (6) “Major renovation project” means the renovation of an existing building where: (i) the building is to be reconstructed and reused after the construction; (ii) the heating, ventilation, and air conditioning, electrical, and plumbing systems are to be replaced; and (iii) the scope of the renovation is 15,000 or more square feet. (7) (i) “Public art” means: 1. an architectural enhancement of artistic significance; or 2. an individual piece of art. (ii) “Public art” includes: 1. a mural; 2. a tile mosaic; 3. a painting; or 4. a sculpture. (b) (1) This section applies to capital projects that are: (i) funded entirely with State funds; or (ii) 1. funded with a combination of at least 50% of State funds and the remainder from funds from private entities; and 2. not funded in the annual State capital budget as: A. a miscellaneous grant program; B. a local House of Delegates initiative; or C. a local Senate initiative. (2) This section does not apply to the following types of unoccupied buildings: (i) warehouse and storage facilities; (ii) garages; (iii) maintenance facilities; (iv) transmitter buildings; (v) pumping stations; and (vi) other similar buildings, as determined by the Department. (c) It is the intent of the General Assembly that the requirements of this section will not increase the cost of a construction project or a major renovation project. (d) To the extent practicable and except as provided in subsection (g) of this section, the State shall include public art in all construction projects and major renovation projects. (e) During the initial design of each construction project and major renovation project, the identification and selection of public art to be included in the project shall be determined by a group composed of representatives of: (1) the unit of State government that will be the primary user of the building; (2) the unit of State government responsible for project management of the building; and (3) the Division. (f) The Division shall work with the Council and the Commission in the selection of public art for any project under this section. (g) (1) The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government to obtain a waiver from complying with this section. (2) The waiver process shall: (i) provide for consultation with the Division, on behalf of the Council and the Commission, to determine if the inclusion of public art in a proposed project is too costly or not practicable; and (ii) require the approval of the Secretaries of Budget and Management and General Services.

Md. Code, State Finance and Procurement § 3-603

(a) The Department shall prepare, revise, and keep current a 5-year capital program. (b) The capital program shall include all capital projects of the State whether funded by bond authorizations, operating budget funds, or capital leases. (c) The capital program shall be consistent with the annual recommendations of the Capital Debt Affordability Committee. (d) Except for the first year of the program, the capital program may not include General Fund capital appropriations as a source of funding other than for projects or programs that are ineligible for tax-exempt debt financing.

Md. Code, State Finance and Procurement § 3-604

The capital program: (1) shall include State public works and major capital improvement projects undertaken or recommended to be undertaken by the State; and (2) may include major projects undertaken or recommended to be undertaken with State aid or under State regulation.

Md. Code, State Finance and Procurement § 3-605

The capital program shall: (1) classify projects according to their necessity and urgency; (2) recommend a time sequence for the projects; and (3) include the following information about each project: (i) the contract price or an estimate of the cost of acquisition or construction; (ii) an estimate of the operating and maintenance costs; (iii) an estimate of the number of additional State positions that will be required as a result of the project; (iv) an estimate of revenues likely to be received from the project; and (v) existing sources of funds or the need for additional sources of funds for construction, acquisition, and operation.

Md. Code, State Finance and Procurement § 3-608

(a) In the annual budget the Governor shall provide a sum sufficient to establish a Revolving Preliminary Planning Fund under the jurisdiction of the Board of Public Works. (b) On the recommendation of the Department, the Board of Public Works may authorize money to be advanced from the Revolving Preliminary Planning Fund for preliminary plans, studies, designs, and outline specifications for any project that is part of the capital improvement program. (c) Any money advanced from the Revolving Preliminary Planning Fund shall be reimbursed to the Fund: (1) from general funds; or (2) with the approval of the Board of Public Works, from: (i) the annual general construction loan; or (ii) any other special loan funds separately authorized by the General Assembly.

Md. Code, State Finance and Procurement § 3-609

(a) There is a Construction Contingency Fund. (b) The Fund is a continuing, nonlapsing, revolving fund that consists of: (1) money appropriated to the Fund: (i) in the annual budget; or (ii) in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act; (2) unspent proceeds of an enabling act allocated to the Fund by the Governor under § 8–129 of this article; or (3) the amount of an appropriation in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act that is in excess of the amount needed for a project included in the Act and that is allocated to the Fund by the Governor. (c) An appropriation or allocation to the Fund may not be made if it would cause the total balance in the Fund to exceed 1.25% of the capital debt affordability limit, determined under Title 8 of this article, for that year. (d) With the advice and assistance of the Departments of Budget and Management and General Services, the Fund shall be administered by the Board of Public Works. (e) With the approval of the Governor, the Secretaries of Budget and Management and General Services may request the Board of Public Works to authorize an expenditure from the Fund to supplement any capital appropriation or to conduct value engineering on a project: (1) that is for a capital project to be owned by the State or a unit of the State government; (2) that was contained in a capital appropriation of an annual budget, in an annual general construction loan, or in an annual Maryland consolidated capital bond loan; and (3) (i) that is insufficient in amount to permit the initial award of a contract for the project to the bidder or offeror selected in accordance with applicable State law, or to cover change orders during construction of the project which do not increase the scope of the project; (ii) if, in the belief of the Department of General Services or at the request of the budget committees, the project cost could be reduced or quality improved through the use of value engineering; or (iii) that includes price adjustments for material price fluctuations of identified eligible project–specific materials. (f) The Secretaries of Budget and Management and General Services shall evaluate any project for additional funding and certify in writing that the project meets the criteria in subsection (e) of this section and that: (1) all reasonable attempts to reduce the cost of the project have been made; (2) no practicable alternative exists for securing funding to complete the project; and (3) the requested additional funding does not increase the scope of the project. (g) (1) Prior to seeking approval from the Board of Public Works, the Department of General Services and the Department of Budget and Management shall: (i) provide written notice to the budget committees on the planned use of the funds; and (ii) allow 45 days for review and comment by the budget committees. (2) Each time an expenditure from the Fund is authorized by the Board of Public Works, the amount specified by the Board of Public Works may be transferred from the account to the appropriate annuity bond account to supplement the specified authorization. (h) Within 1 month after the end of each year, the Secretaries of Budget and Management and General Services shall submit a report on activity from January 1 through December 31 of that year, subject to § 2–1257 of the State Government Article, to the General Assembly on the money: (1) appropriated to the Fund; (2) authorized for expenditure from the Fund; and (3) expended from the Fund. (i) Money in the Fund shall be deposited with the State Treasurer.

Md. Code, State Finance and Procurement § 3-610

(a) In this section, “Department” means the Department of General Services. (b) This section applies to a capital project that receives at least $3,000,000 in State funds in a single fiscal year and is funded in the annual State capital budget as: (1) a miscellaneous grant program; (2) a local House of Delegates initiative; or (3) a local Senate initiative. (c) (1) Prior to the release of State funds for a capital project that meets the conditions of subsection (b) of this section, the Governor’s Office of Small, Minority, and Women Business Affairs shall: (i) review the capital project for subcontracting opportunities under the provisions of Title 14, Subtitle 3 of this article; and (ii) if practicable, establish minority business enterprise subgoals for the capital project. (2) In setting subgoals under this subsection, the Governor’s Office of Small, Minority, and Women Business Affairs shall consider the availability and capacity of minority business enterprises in Maryland and in the county where the project is located to fulfill the subgoal. (d) (1) If the Governor’s Office of Small, Minority, and Women Business Affairs establishes minority business enterprise subgoals for the capital project, the recipient of the State funds shall: (i) certify to the Department that the recipient expects to achieve the subgoals; or (ii) request a waiver of all or part of the subgoals from the Governor’s Office of Small, Minority, and Women Business Affairs. (2) The Governor’s Office of Small, Minority, and Women Business Affairs shall review a request for a waiver under paragraph (1)(ii) of this subsection and report the revised subgoals for the capital project to the Department. (e) (1) On or before July 31 each year, the Department shall submit an annual report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the number of waivers granted for capital projects that meet the conditions of subsection (b) of this section in the prior fiscal year. (2) The report shall include: (i) a description of the capital project; (ii) whether the waiver was a partial or full waiver; and (iii) the justification for the waiver.

Md. Code, State Finance and Procurement § 3-1001

(a) In this subtitle the following words have the meanings indicated. (b) “Agency” means an entity of the Executive Branch of State government. (c) “Goal” means a broad statement that describes the desired long–term results toward which an agency directs its efforts. Goals support, clarify, and provide direction to the agency’s mission and assist in the application of State resources toward implementation of the managing for results State comprehensive plan. (d) “Managing for results” means a planning, performance measurement, and budgeting process that emphasizes use of resources to achieve measurable results, accountability, efficiency, and continuous improvement in State government programs. (e) “Mission” means the purpose for an agency’s existence and includes a description of what an agency does and for whom it does it. (f) “Objective” means a specific and measurable short–term target for achievement of an agency’s goals and includes a description of the desired results and a target date for accomplishment. (g) (1) “Performance measure” means a quantitative or qualitative indicator used to assess whether an agency is meeting its goals and objectives. (2) “Performance measure” includes the following: (i) an efficiency measure that quantifies the relationship between measures of the inputs used to produce goods or services and the measures of the outputs of these activities; (ii) an input measure that quantifies the amount of resources used to provide goods and services; (iii) an outcome measure that quantifies the results an agency achieves or the benefits citizens receive from an agency’s activities; (iv) an output measure that quantifies the amount of goods and services produced by the agency; and (v) a quality measure that quantifies or describes: 1. the effectiveness of the agency in meeting agency objectives; 2. aspects of the satisfaction that customers may or may not have with State goods or services; or 3. how State goods or services compare to some external or internal standard. (h) “State comprehensive plan” means a statement of goals which serve as a broad directive for improving or making more cost effective State resources and services. The plan shall include no more than 10 statewide goals and 50 to 100 performance measures that describe the statewide progress towards its goals. (i) “StateStat” means the accountability process described in § 3–1003(b) of this subtitle. (j) “Strategic plan” means a statement of direction implemented by an agency to carry out its mission.

Md. Code, State Finance and Procurement § 3-1002

(a) The Department shall review and update as necessary: (1) the goals developed in the managing for results State comprehensive plan; and (2) the plan’s objectives and performance measures. (b) Except as otherwise provided in this subtitle, on or before July 1 of each year an agency, in conjunction with the Department, shall select no more than six agency goals that are: (1) compatible with the managing for results State comprehensive plan; or (2) consistent with the agency’s mission if the goals identified in the managing for results State comprehensive plan do not apply to the agency. (c) Except as otherwise provided in this subtitle, with its annual budget submission to the Department, an agency shall develop and submit to the Department as part of the budget process a managing for results agency strategic plan that shall include: (1) a mission statement; (2) a description of the agency’s goals; (3) a description of the objectives and performance measures implemented at the program level to achieve the agency’s goals, including: (i) performance measure statistics for at least the 2 most recently completed fiscal years; and (ii) performance measure estimates for the current year appropriation and budget request year; (4) a discussion of the agency’s progress in meeting its goals and performance measures and any challenges the agency has faced in working toward its goals; (5) a description of the internal controls established to ensure reliability of the data collected for each performance measure; and (6) an identification of the customers and stakeholders served. (d) An agency subject to this subtitle shall maintain documentation of the internal controls established to evaluate performance measures that shall be subject to review by the State, including the Office of Legislative Audits. (e) (1) The Department shall provide a report to the Senate Budget and Taxation Committee and House Appropriations Committee in January of each year on the contents of the State comprehensive plan and the State’s progress toward the goals outlined in the plan. (2) The report shall include details on each agency’s progress. (3) The Senate Budget and Taxation Committee and House Appropriations Committee may hold hearings after receiving the report. (4) The first report shall be submitted on or before January 31, 2005 and shall include a presentation of the first managing for results State comprehensive plan.

Md. Code, State Finance and Procurement § 3-1003

(a) The Secretary shall review the strategic plans and the State comprehensive plan and may recommend appropriate changes to agency budgets. (b) (1) There is a StateStat process that is managed by the Executive Branch. (2) StateStat is an accountability process that involves: (i) the adoption of a strategic plan and the establishment of goals by an agency; (ii) the adoption of a comprehensive set of performance and citizen satisfaction measurements by an agency; (iii) regular and frequent: 1. submission of timely and accurate data by an agency; 2. review and analysis of submitted data; and 3. accountability meetings to assess an agency’s performance; (iv) continuous review of the strategies and tactics used by an agency to meet the goals of the agency; and (v) continuous assessment of the progress of an agency towards meeting the goals of the agency. (c) The Governor may require an agency to participate in the StateStat process to help facilitate and accelerate the achievement of managing for results goals and objectives. (d) (1) Each agency that participates in the StateStat process shall submit a strategic plan and performance measurement report to the Secretary as part of its annual budget submission. (2) The report submitted by each agency that participates in the StateStat process shall contain the information required in § 3–1002(c) of this subtitle.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026

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