SUBJECT: Grants and Loans to non-State Entities: Internal Operating Procedures for terminating or extending general obligation bond authorizations
ISSUED: June 21, 2017
PURPOSE
This advisory sets forth internal operating procedures with respect to administering the termination or extension of general obligation bond authorizations to non-State entities.
AUTHORITY
The Board of Public Works exercises comprehensive oversight of the creation and expenditure of State general obligation bond proceeds. The annual Maryland Consolidated Capital Bond Loan bill (MCCBL) authorizes the Board of Public works to create State debt and specifies the State projects that are to be funded by that debt.
- State Finance & Procurement Article, §§ 8-117 - 8-131
The Board is required to enforce the termination of bond authorizations.
- State Finance & Procurement Article, § 8-128(f)(1)
Department of General Services is Administering Agency for Capital Grant and Loan Program
The Board of Public Works previously designated the Department of General Services as the administering agency for the Capital Grant and Loan Program, the program that administers grants and loans made to non-State entities as authorized in the MCCBL.1 This includes DGS submitting Items on the DGS Agenda that recommend the Board: certify matching funds, enter into grant or loan agreements, and encumber funds with respect to MCCBL authorizations for non-State entities.
Termination of Authorizations - Internal Operating Procedure
The State Finance Law provides that bond authorizations terminate under specified circumstances. Termination becomes effective "only after" the Board submits "publication of notice in the Maryland Register."
- State Finance & Procurement Article, § 8-128(g)-(h)
- DGS shall submit on the DGS Agenda recommendations to terminate or extend, as appropriate, bond authorizations for grants or loans to non-State entities.
- Upon Board approval of the Agenda Items, the Comptroller's Office shall:
- Reflect the terminations on the books of the Comptroller; and
- Submit the appropriate notice of terminations and extensions for publication in the Maryland Register.
- The Treasurer, in consultation with the Comptroller, shall submit a report January 1 each year to the Governor and General Assembly listing all projects or programs for which authorization would be terminated in the upcoming year under § 8-128 or § 7-305 of the State Finance and Procurement Article.
1DGS Item 20-GM (06/07/1983)
