SUBJECT: Acquisitions of Real Property With Appraised Value of At Least $500,000
ISSUED: June 24, 2022
PURPOSE
This Advisory sets forth the Legislative Policy Committee notice procedures and action agenda item requirements for property acquisitions subject to SFP 10-305(c).
AUTHORITY
State Finance and Procurement Article § 10-305(c), Annotated Code of Maryland; and various agency specific statutes.
BACKGROUND
Chapter 23 Acts of Maryland 2021 amended SFP §10-305 to add a new subsection (c) regarding certain acquisitions of real property. This amendment became effective March 14, 2021. While various agencies have independent statutory authority to acquire real property, it is often subject to approval by the Board of Public Works. Subsection (c) requires certain steps to occur before the Board may approve such acquisitions in many instances.
Agencies are encouraged to review the subsection and consult with their attorney to determine if the subsection applies to their real property acquisitions. The following describes the process to comply with the statute for those acquisitions that are subject to the subsection.
NOTICE TO LEGISLATIVE POLICY COMMITTEE
Agencies are to provide a written letter stating the agency’s justification for an eligible planned acquisition. The letter should be addressed to the Presiding Officers of the General Assembly in their role as Joint Chairs of the Legislative Policy Committee and sent by email to:
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The President of the Senate
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The Speaker of the House
The letter, and email, should be copied to the following:
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Legislative Policy Committee Staff
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Department of Legislative Services
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The Governor’s liaison to the BPW
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The Comptroller’s liaison to the BPW
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The Treasurer’s liaison to the BPW
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The Executive Secretary to the Board of Public Works
Please contact BPW staff to receive the current contact information for the individuals listed above.
Within 14 days, the Legislative Policy Committee may request a cost-benefit analysis, fiscal impact study, and additional time to review and comment on the proposed acquisition. If such a request is made, the unit of government seeking to acquire property should respond directly back
to the Legislative Policy Committee by email, copying the same personnel noted above.
POST-NOTICE REVIEW BY THE BOARD
After the appropriate time frame has elapsed, if an agency wishes to pursue an acquisition it may submit an item to the Board for approval. In addition to the appropriate elements described in
Advisory 2006-1, a real property acquisition item subject to subsection (c) shall include:
- The date that the justification was submitted to the Legislative Policy Committee;
- Whether or not any additional time or a cost-benefit analysis was requested; and
- A summary of any comments received from the Legislative Policy Committee.
In addition, as back-up to the item, an agency is to provide:
- A copy of the justification letter sent to the Legislative Policy Committee
- Any cost-benefit analysis or fiscal impact study completed at the request of the Legislative Policy Committee, or additional comments submitted to the Legislative Policy Committee by the agency; and
- Any comments received from the Legislative Policy Committee.
Secretary Item 3 (6/22/22)
