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*hb1369*
HOUSE BILL 1369
P1 6lr2539
CF SB 858
By: Delegate Solomon (By Request – Joint Audit and Evaluation Committee)
Introduced and read first time: February 13, 2026
Assigned to: Government, Labor, and Elections
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2026
CHAPTER ______
AN ACT concerning 1
Department of Budget and Management – Audit and Finance Compliance Unit – 2
Establishment 3
FOR the purpose of establishing the Audit and Finance Compliance Unit in the Department 4
of Budget and Management; requiring the Governor to implement systems and 5
processes to monitor certain efforts; requiring the Unit to carry out certain 6
responsibilities and perform certain duties, including monitoring efforts of Executive 7
Branch agencies Departmental Units to correct certain audit findings and 8
implement certain corrective actions provide certain guidance, coordination, and 9
technical assistance; requiring the Unit to establish a certain specialized team to 10
provide certain direct assistance to certain agencies Executive Departmental Units 11
under certain circumstances; requiring the Unit to establish and maintain a 12
dashboard with certain information on its website submit a certain annual report by 13
a certain date each year; authorizing certain unredacted cybersecurity findings to be 14
viewed by certain individuals ; and generally relating to the establishment of the 15
Audit and Finance Compliance Unit in the Department of Budget and Management. 16
BY repealing and reenacting, without amendments, 17
Article – State Finance and Procurement 18
Section 3–101 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21
BY adding to 22
Article – State Finance and Procurement 23
2 HOUSE BILL 1369
Section 3–401 through 3 –407 to be under the new subtitle “Subtitle 4. Audit and 1
Finance Compliance Unit” 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – State Government 6
Section 2–1224(h)(1) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – State Government 11
Section 2–1224(i) 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2025 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – State Finance and Procurement 17
3–101. 18
(a) In this title the following words have the meanings indicated. 19
(b) “Department” means the Department of Budget and Management. 20
(c) “Secretary” means the Secretary of Budget and Management. 21
SUBTITLE 4. AUDIT AND FINANCE COMPLIANCE UNIT. 22
3–401. 23
(A) IN THIS SUBTITLE , THE FOLLOWING WORDS HAVE THE MEANINGS 24
INDICATED. 25
(B) “AGENCY” MEANS AN ENTITY OF T HE EXECUTIVE BRANCH OF STATE 26
GOVERNMENT. 27
(C) “UNIT” MEANS THE AUDIT AND FINANCE COMPLIANCE UNIT. 28
3–402. 29
THERE IS AN AUDIT AND FINANCE COMPLIANCE UNIT IN THE DEPARTMENT. 30
HOUSE BILL 1369 3
3–403. 1
(A) IN A CCORDANCE WITH § 2–1224(H)(1) OF THE STATE GOVERNMENT 2
ARTICLE, THE GOVERNOR SHALL IMPLEM ENT SYSTEMS AND PROC ESSES TO 3
MONITOR THE EFFORTS OF THE EXECUTIVE DEPARTMENTAL UNITS TO CORRECT 4
AUDIT FINDINGS REPORTED BY THE OFFICE OF LEGISLATIVE AUDITS. 5
(B) THE UNIT IS RESPONSIBLE F OR MONITORING THE EF FORTS OF 6
AGENCIES EXECUTIVE DEPARTMENTAL UNITS IN CORRECTING AUDIT FINDINGS 7
REPORTED BY THE OFFICE OF LEGISLATIVE AUDITS IN ACCORDANCE WITH TITLE 8
2, SUBTITLE 12, PART IV OF THE STATE GOVERNMENT ARTICLE. 9
3–404. 10
(A) IN CARRYING OUT ITS R ESPONSIBILITIES, THE UNIT SHALL ASSIST 11
AGENCIES EXECUTIVE DEPARTMENTAL UNITS WITH THE RESOLUTION OF AUDIT 12
FINDINGS BY: 13
(1) PROVIDING OBJECTIVE ASSESSMENT OF CORREC TIVE ACTIONS ; 14
AND 15
(2) MONITORING PROGRESS IN THE IMPLEMENTATIO N OF 16
CORRECTIVE ACTIONS. 17
(B) THE UNIT MAY IMPLEMENT PROACTIVE STEPS TO ADDRESS AND 18
PREVENT AUDIT FINDIN GS THROUGH ADVICE AN D SUPPORT PROVIDED T O 19
AGENCIES PROVIDE GUIDANCE, COORDINATION, AND TECHNICAL ASSIST ANCE TO 20
EXECUTIVE DEPARTMENTAL UNITS TO STRENGTHEN EFFORTS TO ADDRESS A ND 21
PREVENT AUDIT FINDIN GS AND TO STRENGTHEN INTERNAL CONTROLS AN D 22
COMPLIANCE PRACTICES. 23
3–405. 24
(A) THE UNIT SHALL PROVIDE DI RECT ASSISTANCE TO AGENCIES 25
EXECUTIVE DEPARTMENTAL UNITS WITH: 26
(1) FOUR OR MORE REPEAT AUDIT FINDINGS; OR 27
(2) AS REQUESTED BY THE JOINT AUDIT AND EVALUATION 28
COMMITTEE UNSATISFACTORY AUDITS. 29
4 HOUSE BILL 1369
(B) THE DIRECT ASSISTANCE PROVIDED UNDER SUBSE CTION (A) OF THIS 1
SECTION SHALL INCLUDE: 2
(1) ADVICE AND SUPPORT T O DEVELOP COR RECTIVE ACTIONS AS 3
SOON AS PRACTICABLE , A REVIEW OF THE TIME LINE DEVELOPED BY TH E 4
EXECUTIVE DEPARTMENTAL UNIT FOR THE IMPLEMEN TATION OF CORRECTIVE 5
ACTIONS FOR EACH REC OMMENDATION TO ENSUR E THAT THE TIMELINE HAS 6
ACHIEVABLE COMPLETION DATES; 7
(2) A REVIEW OF RESOLUTION ACTION S ON EACH FINDING WI TH A 8
FOCUS ON REPEAT AND SIGNIFICANT FINDINGS TO PROVIDE ADVICE AND SUPPORT 9
IN ASSISTING WITH THE DEVELOPMENT OF CORRECTIVE ACTIONS; 10
(3) PERFORMING SAMPLE TE STS OF IMPLEMENTED C ORRECTIVE 11
ACTIONS, AS NEEDED; AND 12
(4) MONITORING PROGRESS IN OF THE IMPLEMENTATION O F 13
CORRECTIVE ACTIONS UNTIL THE LEGISLATIVE AUDITORS RETURN TO BEGIN THE 14
NEXT RELATED FISCAL COMPLIANCE AUDIT. 15
(C) (1) THE UNIT SHALL ESTABLISH A SPECIALIZED TEAM T O PROVIDE 16
THE DIRECT ASSISTANCE REQUIRED UNDER THIS SECTION. 17
(2) THE SPECIALIZED TEAM ESTABLISHED IN PARAG RAPH (1) OF 18
THIS SUBSECTION MAY INCLUDE CURRENT STATE EMPLOYEES , CURRENT 19
CONTRACTUAL EMPLOYEES, AND EXTERNAL CONTRACTORS. 20
3–406. 21
(A) THE UNIT SHALL MAINTAIN A DASHBOARD ON CURRENT AND REPEAT 22
AUDIT FINDINGS ON ITS WEBSITE. 23
(B) (1) THE DASHBOARD REQUIRE D UNDER SUBSECTION (A) OF THIS 24
SECTION SHALL INCLUD E ALL AUDIT FINDINGS FOR AGENCIES UNDER 25
EXAMINATION EACH YEAR, ORGANIZED BY UNITS OF THE AGENCY. 26
(2) FOR EACH FINDING, THE DASHBOARD SHALL INCLUDE: 27
(I) THE RECOMMENDATIONS OF THE OFFICE OF LEGISLATIVE 28
AUDITS; 29
(II) THE NUMBER OF YEARS THAT A REPEAT FINDING REMAINS 30
UNRESOLVED; 31
HOUSE BILL 1369 5
(III) THE PROJECTED COMPLETION DATE OF THE RESOLUTION; 1
(IV) INFORMATION ON UNRESOLVED FINDINGS, INCLUDING THE 2
REASON A FINDING IS UNRESOLVED; AND 3
(V) A GRAPHIC REPRESENTA TION OF THE PROGRESS OF 4
CORRECTIVE ACTIONS THAT INCLUDES WHETHER THE FINDING IS UNRESOLVED, IN 5
PROGRESS, OR RESOLVED. 6
(C) THE DASHBOARD SHALL B E FULLY OPERATIONAL ON OR BEFORE 7
OCTOBER 1, 2027. 8
(A) ON OR BEFORE OCTOBER 1 EACH YEAR, THE UNIT SHALL SUBMIT AN 9
ANNUAL REPORT TO THE JOINT AUDIT AND EVALUATION COMMITTEE, IN 10
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON ALL AUDIT 11
FINDINGS FOR EXECUTIVE DEPARTMENTAL UNITS UNDER EXAMINATION. 12
(B) THE REPORT SHALL INCL UDE THE FOLLOWING IN FORMATION FOR 13
EACH FINDING: 14
(1) THE RECOMMENDATIONS OF THE OFFICE OF LEGISLATIVE 15
AUDITS; 16
(2) THE NUMBER OF YEARS THAT A REPEAT FINDIN G REMAINS 17
UNRESOLVED; 18
(3) THE PROJECTED COMPLETION DATE FOR RESOLUTION OF A 19
FINDING; 20
(4) INFORMATION ON UNRES OLVED FINDINGS , INCLUDING THE 21
REASON A FINDING IS UNRESOLVED; AND 22
(5) THE PROGRESS OF CORR ECTIVE ACTIONS THAT INCLUDES 23
WHETHER THE FINDING IS UNRESOLVED, IN PROGRESS, OR RESOLVED. 24
3–407. 25
THE SECRETARY MAY ADOPT REGULATIONS TO CARRY OUT THIS SUBTITLE. 26
Article – State Government 27
2–1224. 28
6 HOUSE BILL 1369
(h) (1) The Governor and the Chief Justice of the Supreme Court of Maryland 1
shall implement systems and processes to monitor the efforts of the Executive 2
Departmental Units and the Judiciary, respectively, to correct audit findings reported by 3
the Office of Legislative Audits. 4
(i) (1) A report auditing a unit of State or local government shall have any 5
cybersecurity findings redacted in a manner consistent with auditing best practices before 6
the report is made available to the public. 7
(2) AN UNREDACTED CYBERSE CURITY FINDING IN A REPORT 8
AUDITING A UNIT OF STATE OR LOCAL GOVERNMENT MAY BE VIEWED BY: 9
(I) MEMBERS OF THE JOINT AUDIT AND EVALUATION 10
COMMITTEE; 11
(II) MEMBERS OF THE JOINT COMMITTEE ON CYBERSECURITY, 12
INFORMATION TECHNOLOGY, AND BIOTECHNOLOGY; 13
(III) THE CHAIR AND THE SU BCOMMITTEE CHAIRS OF THE 14
SENATE BUDGET AND TAXATION COMMITTEE; 15
(IV) THE CHAIR AND THE SU BCOMMITTEE CHAIRS OF THE 16
HOUSE APPROPRIATIONS COMMITTEE; 17
(V) THE GOVERNOR, THE GOVERNOR’S CHIEF OF STAFF, AND 18
THE GOVERNOR’S DEPUTY CHIEFS OF STAFF; AND 19
(VI) THE AUDIT AND FINANCE COMPLIANCE UNIT IN THE 20
DEPARTMENT OF BUDGET AND MANAGEMENT. 21
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before October 1, 2026, 22
and October 1, 2027, the Audit and Finance Compliance Unit shall report to the Joint Audit 23
and Evaluation Committee, in accordance with § 2 –1257 of the State Government Article, 24
on the status of the dashboa rd required under § 3 –406 of the State Finance and 25
Procurement Article, as enacted by Section 1 of this Act. 26
SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
July 1, 2026. 28