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Statutes Text

Article - State Finance and Procurement

§2–210.    IN EFFECT

    // EFFECTIVE UNTIL JUNE 30, 2025 PER CHAPTERS 484 AND 485 OF 2020 //

    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Council” means the Maryland Efficient Grant Application Council established under § 2–209 of this subtitle.

        (3)    “Department” means the Department of Budget and Management.

        (4)    (i)    “Grant” means a legal instrument of financial assistance between a State grant–making entity and a non–State entity that is:

                1.    used to enter into a relationship the principal purpose of which is to transfer anything of value from the grant–making entity to the grant recipient to carry out a public purpose authorized by law and not to acquire property or services for the direct benefit or use of the grant–making entity; and

                2.    distinguished from a cooperative agreement in that it does not provide for substantial involvement between the grant–making entity and the grant recipient in carrying out the activity contemplated by the award.

            (ii)    “Grant” does not include an instrument that provides only:

                1.    direct government cash assistance to an individual;

                2.    a subsidy;

                3.    a loan;

                4.    a loan guarantee;

                5.    insurance;

                6.    grants made by the State higher education system, the capital budget, the Department of Transportation, or the Maryland Technology Development Corporation;

                7.    business development grants made by the Department of Commerce; or

                8.    any State funding that is required annually and is calculated through a formula set in statute.

        (5)    “Grant application form” means a grant application template and related materials required to be submitted by grant applicants, including:

            (i)    required organizational materials; and

            (ii)    proposed budget categories and line items.

        (6)    “Uniform Guidance” means the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part 200.

    (b)    (1)    In order to improve efficiency, streamline and reduce redundant processes, reduce paperwork and administrative burdens on both granting agencies and grant recipients, and facilitate development and implementation of a statewide centralized grants management and accountability system, the Council shall study and make recommendations to the Governor’s Grants Office and the Department regarding the entire grants life cycle, including:

            (i)    the creation of the following materials for use by grant–making agencies, grant applicants, and grant recipients in the State:

                1.    a uniform grant application form;

                2.    uniform financial controls and reporting requirements for grant recipients; and

                3.    uniform performance progress reporting requirements for grant recipients;

            (ii)    regulations adopting each part of the uniform guidance, with appropriate modifications for its application to grant–making entities in the State, including modifications or variances based on the scope or size of particular grant programs, grant–making entities, or grantees;

            (iii)    recommended timeframes and deadlines for the various tasks included in items (i) and (ii) of this paragraph;

            (iv)    recommended deadlines for use and implementation by the various grant–making entities of the materials prepared in accordance with item (i) of this paragraph; and

            (v)    recommended deadlines for grant–making entities to administer State and federal grants in accordance with the provisions of parts of uniform guidance as adopted by the Department by regulation.

        (2)    In developing materials and recommendations under this subsection, the Council shall:

            (i)    solicit the input of diverse stakeholders, including grant–making agencies and organizations representing local governments, grant professionals, experts in nonprofit accounting and auditing, and nonprofit service providers; and

            (ii)    establish one or more issue working groups, composed of stakeholders representing diverse backgrounds appropriate to the charge of each workgroup, and also reflecting the demographic diversity of the State and the diversity of grant programs and grant recipients, including arts, history, and social service, to participate in and facilitate the process of developing recommendations.

    (c)    On or before July 1, 2024, the Council shall submit a report on its full recommendations as required by subsection (b)(1) of this section to the Department and the General Assembly, in accordance with § 2–1257 of the State Government Article.

    (d)    On or before October 1, 2020, each State grant–making agency shall appoint a Chief Accountability Officer who shall:

        (1)    serve as a liaison to the Council and the Governor’s Grants Office; and

        (2)    be responsible for the agency’s representation and participation in the process established under this section.

    (e)    The Governor’s Grants Office shall provide technical assistance and interpretations of policy requirements in order to ensure the effective and efficient implementation of this section.

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