Maryland Code § NR-3-103

Section NR-3-103
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(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 following two members, who shall each serve as a
nonvoting member:
1. One member of the Senate of Maryland, appointed
by the President of the Senate; and
2. One member of the House of Delegates, appointed by
the Speaker of the House;
(iii) The Secretary of Planning, or the Secretary's designee;
(iv) Three members from the public sector in the State in
positions responsible for environmental, water, wastewater, or solid waste
management;
(v) 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;
(vi) One member from the private sector in the State with
financial experience related to environmental, water, wastewater, or solid waste
management; and
(vii) 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)(iv) through (vii) 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 Secretary of Planning, a
member appointed under paragraph (3)(ii) of this subsection, and the Executive
Director is 4 years.
(8) The terms of members other than the Secretary of Planning, a
member appointed under paragraph (3)(ii) of this subsection, and the Executive
Director 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 Secretary of Planning or a member appointed under
paragraph (3)(ii) of this subsection 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 § 13-228 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. $5,000,000 in the Eastern Correctional Institution
Turbine Project Contingency Fund;
2. $500,000 in the Department of Natural Resources
Project Contingency Fund; or
3. $3,000,000 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.

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