§3–103.

    (a)    (1)    There is a body politic and corporate known as the “Maryland Environmental Service”.

        (2)    The Service is an instrumentality of the State and a public corporation by that name, style, and title, and the exercise by the Service of the powers conferred by this subtitle is the performance of an essential governmental function of the State.

    (b)    (1)    There are four officers of the Service:

            (i)    An Executive Director;

            (ii)    A Deputy Director;

            (iii)    A Secretary; and

            (iv)    A Treasurer.

        (2)    (i)    The four officers of the Service shall be appointed in accordance with this paragraph.

            (ii)    1.    The Executive Director shall be appointed by the Governor, with the advice and consent of the Senate solely with regard to the qualifications for the duties of the office.

                2.    The Executive Director serves at the pleasure of the Board with the concurrence of the Governor and shall receive such compensation as may be determined by the Board.

            (iii)    1.    The Deputy Director shall be appointed by the Executive Director with the approval of the Governor solely with regard to the qualifications for the duties of the office.

                2.    The Deputy Director serves at the pleasure of the Executive Director and shall receive such compensation as may be determined by the Board.

            (iv)    1.    The Secretary and the Treasurer shall be selected by the Board from among the Board’s members.

                2.    The Secretary and the Treasurer serve at the pleasure of the Board and shall receive such compensation as may be reasonably determined by the Board.

        (3)    The Board of Directors of the Service shall consist of the following members:

            (i)    The Executive Director, who shall serve as a nonvoting member;

            (ii)    The State Treasurer, or the State Treasurer’s designee;

            (iii)    Three members from the public sector in the State in positions responsible for environmental, water, wastewater, or solid waste management;

            (iv)    One member from the private sector in the State with technical, financial, development, or legal experience related to environmental, water, wastewater, or solid waste management;

            (v)    One member from the private sector in the State with financial experience related to environmental, water, wastewater, or solid waste management; and

            (vi)    One member from the private sector in the State with experience or expertise in matters related to business ethics, preferably involving board of director ethics and conflicts of interest.

        (4)    (i)    Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, the public sector and private sector members of the Board, as set forth in paragraph (3)(iii) through (vi) of this subsection shall be appointed by the Governor with the advice and consent of the Senate.

            (ii)    The Governor shall select at least one of the public sector members of the Board from a list of recommendations jointly compiled by the Maryland Association of Counties and the Maryland Municipal League.

            (iii)    The Governor may not appoint an employee of the Service to the Board.

            (iv)    At least one of the public sector or private sector members shall be a resident of a rural county in the State.

        (5)    (i)    Five members constitute a quorum for the transaction of business of the Board.

            (ii)    The affirmative vote of at least five members is necessary for any action taken by the Board.

        (6)    Those members of the Board not already holding a public office shall receive from the Service:

            (i)    Per diem compensation as established by the Board; and

            (ii)    Reimbursement for expenses under Standard State Travel Regulations.

        (7)    The term of a member other than the State Treasurer is 4 years.

        (8)    The terms of members other than the State Treasurer are staggered as required by the terms provided for those members of the Board on July 1, 2021.

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

        (10)    A member who is appointed after a term has begun serves only the remainder of that term and until a successor is appointed and qualifies.

        (11)    A member of the Board who is appointed under paragraph (3)(iii) through (vi) of this subsection may serve only two consecutive full 4–year terms, plus any partial term served before the initial 4–year term.

        (12)    Subject to paragraphs (13) and (14) of this subsection, the Board shall select a Chair from among the Board’s members.

        (13)    The Executive Director may not serve as the Secretary, Treasurer, or Chair of the Board.

        (14)    The State Treasurer may not serve as the Secretary, Treasurer, or Chair of the Board.

    (c)    (1)    The Executive Director:

            (i)    Is the administrative head of the Service;

            (ii)    Is directly responsible to the Board and shall advise the Board on all matters assigned to the Service;

            (iii)    Shall carry out the Board’s policies related to the Service;

            (iv)    Shall, at each regular meeting of the Board, present a detailed and itemized accounting and explanation of all expenses incurred by or on behalf of the Executive Director and the Deputy Director that, in the aggregate and calculated from the date of the previous regular meeting through the day before the date of the regular meeting at which the expenses will be presented, exceed $500; and

            (v)    Is responsible for the exercise of all powers and duties conferred upon the Service by the provisions of this subtitle except for those powers and duties specifically conferred by this subtitle on the Secretary, Treasurer, or Board.

        (2)    The voting members of the Board shall:

            (i)    Establish the criteria and procedures for evaluating the Executive Director;

            (ii)    Publish the criteria and procedures established under item (i) of this paragraph on the Service’s website; and

            (iii)    Annually evaluate the Executive Director in accordance with the criteria and procedures established under item (i) of this paragraph.

        (3)    The Deputy Director shall have the duties provided by law or delegated by the Executive Director.

    (d)    (1)    The Secretary:

            (i)    Shall keep a record of the proceedings of the Board and be custodian of all books, documents, and papers filed with the Service and of the minute book or journal of the Service and its official seal;

            (ii)    May have copies made of all minutes, records, and documents of the Service and certify them to be true copies under the official seal of the Service; and

            (iii)    May, with the approval of the Board, delegate to another member of the Board, during an absence of the Secretary, any duty enumerated in items (i) and (ii) of this paragraph.

        (2)    Any person dealing with the Service may rely on the certificates described in paragraph (1)(ii) of this subsection, and certified copies shall be received as evidence in any court or other tribunal in the State, in the same manner and with the same effect as if the original books, papers, entries, records, or proceedings could be produced.

        (3)    With the approval of the Board, the Secretary may authorize an employee of the Service to serve as Deputy Secretary and to perform the functions set forth under paragraphs (1) and (2) of this subsection on behalf of the Secretary, subject to any restrictions and conditions that the Secretary establishes.

    (e)    (1)    (i)    The Treasurer shall:

                1.    Develop and maintain a detailed and accurate accounting system for all financial transactions of the Service; and

                2.    Perform other duties relating to the financial affairs of the Service as required by law or by a directive of the Board.

            (ii)    Unless any money of the Service is otherwise held by or payable to a trustee appointed pursuant to a resolution authorizing the issuance of bonds or notes or under a trust agreement securing the bonds or notes, the Treasurer shall:

                1.    Receive money of the Service until otherwise prescribed by law; and

                2.    Deposit the money as soon as it is received to the credit of the Service in any financial institution in which the State Treasurer is authorized to deposit State funds.

            (iii)    The Treasurer shall disburse money for the purposes of the Service according to law, only upon the Treasurer’s warrant.

            (iv)    The Treasurer shall make arrangements for the payment of the interest on and principal of the Service debt.

            (v)    Upon entering the performance of official duties, the Treasurer shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.

        (2)    (i)    With the approval of the Board, the Treasurer may authorize an employee of the Service to serve as Deputy Treasurer and to disburse money for the purposes of the Service as provided by law, and subject to restrictions and other conditions that the Treasurer establishes.

            (ii)    The Deputy Treasurer shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.

    (f)    (1)    The Attorney General of Maryland shall:

            (i)    Be the legal advisor for the Service and the Board; and

            (ii)    Enforce compliance with the requirements of this subtitle through any appropriate legal remedy and prosecute violations in accordance with the provisions of this subtitle.

        (2)    (i)    The Attorney General shall assign to the Service the number of assistant Attorneys General and other staff requested by the Service.

            (ii)    One of the assistant Attorneys General shall be designated by the Attorney General as counsel to the Service.

            (iii)    The counsel to the Service shall have no other duty than to render, subject to the discretion and control of the Attorney General, the legal aid, advice, and counsel required by the Executive Director, the Board, and the other officials of the Service and, also subject to the discretion and control of the Attorney General, to supervise the other assistant Attorneys General assigned to the Service.

            (iv)    The counsel and every other assistant Attorney General assigned to the Service shall be practicing lawyers of this State in good standing and shall be entitled to a salary from the funds of the Service.

            (v)    After the Attorney General has designated an assistant Attorney General to serve as counsel to the Service, the Attorney General may not reassign the counsel without consulting with the Executive Director and the Board.

            (vi)    With the approval of the Attorney General and the Board, the Service may employ additional counsel that it considers necessary to carry out the provisions of this subtitle.

    (g)    (1)    The Service is exempt from the provisions of Subtitles 3, 4, 5, and 7 of Title 4 of the State Finance and Procurement Article.

        (2)    The Service is exempt from the provisions of Division II of the State Finance and Procurement Article, but is not exempt from Subtitle 3 of Title 14, Subtitle 4 of Title 12, Title 16, and Title 17 of the State Finance and Procurement Article.

        (3)    (i)    Except as otherwise provided in this paragraph, all procurements by the Service for materials, equipment, services, or supplies performed or furnished in connection with the planning, development, design, equipping, construction, or operation of any project owned or controlled by the Service, shall be awarded in accordance with rules and regulations adopted pursuant to the Administrative Procedure Act.

            (ii)    The Service may procure materials, equipment, services, or supplies by utilizing:

                1.    Competitive sealed bids;

                2.    Competitive sealed proposals;

                3.    Sole source procurement;

                4.    Intergovernmental cooperative purchasing agreements;

                5.    A small procurement process, if the procurement is estimated by the Service to result in an expenditure of $25,000 or less;

                6.    An emergency procurement process, if the procurement is necessary to avoid or to mitigate serious damage to public health, safety, or welfare; or

                7.    Pay–for–success contracting under § 13–112.1 of the State Finance and Procurement Article.

        (4)    (i)    The approval of the Board shall be required on any nonemergency expenditure that exceeds $200,000.

            (ii)    The Service shall notify the Board of any nonemergency expenditure that exceeds $25,000.

        (5)    The Service may adopt rules and regulations to provide a process to resolve disputes between the Service and its contractors, that may include alternative dispute resolution by the parties to the dispute.

    (h)    (1)    The Service:

            (i)    May create and establish 1 or more project reserve funds in such amounts as the Board considers appropriate, including the following project reserve funds:

                1.    An Eastern Correctional Institution Turbine Project Contingency Fund;

                2.    A Department of Natural Resources Project Contingency Fund; and

                3.    A Reimbursable Project Contingency Fund; and

            (ii)    Subject to paragraph (2) of this subsection, may pay into such funds:

                1.    Any money appropriated and made available by the State for the purposes of such funds;

                2.    Any proceeds from the sale of bonds or notes, to the extent provided in the resolution authorizing the issuance of the bonds or notes;

                3.    Revenues derived from a project of the Service; and

                4.    Any other money that may be received by or otherwise made available to the Service from any other source or sources which the Service has designated for deposit into such funds.

        (2)    Money held in or credited to a project reserve fund established under this subsection shall be used solely to accomplish the purposes of this subtitle, as determined by the Board and, subject to paragraph (3) of this subsection, may be retained by the Service in the appropriate project reserve fund based on the project for which the money was received by the Service.

        (3)    (i)    The Service may credit to a project reserve fund established under paragraph (1)(i)1 through 3 of this subsection only money that is reimbursable to the State.

            (ii)    The Service may not retain more than:

                1.    $1,500,000 in the Eastern Correctional Institution Turbine Project Contingency Fund;

                2.    $500,000 in the Department of Natural Resources Project Contingency Fund; or

                3.    $1,000,000 in the Reimbursable Project Contingency Fund.

            (iii)    If at the end of a fiscal year the balance in a project reserve fund exceeds the limits stated in subparagraph (ii) of this paragraph, the Service shall revert the excess to the State fund from which the money in the project reserve fund was originally appropriated.

        (4)    Money appropriated or made available to the Service by the State shall be expended in accordance with the provisions of this subtitle.

    (i)    (1)    Subject to paragraph (2) of this subsection, the Service shall submit annually a full and detailed budget reflecting the operating and capital program of the Service to the Department of Budget and Management for inclusion for informational purposes in the State budget book.

        (2)    The budget submitted under paragraph (1) of this subsection shall:

            (i)    Be submitted in a manner required by the Department of Budget and Management; and

            (ii)    Specify the source of the Service’s revenues in a manner required by the Department of Budget and Management.