Public Service Commission - Administrative Operations and Personnel Matters (Public Service Commission Flexibility Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0842*

SENATE BILL 842
P1, P4, P2 6lr2046
CF HB 1147
By: Senator Feldman
Introduced and read first time: February 6, 2026
Assigned to: Education, Energy, and the Environment

A BILL ENTITLED

AN ACT concerning 1

Public Service Commission – Administrative Operations and Personnel Matters 2
(Public Service Commission Flexibility Act) 3

FOR the purpose of establishing that the exercise by the Public Service Commission of its 4
authority is an essential government function; altering the duties of the Commission 5
and the Executive Secretary of the Commission; providing for the designation of a 6
certain employee as Deputy Executive Secretary of the Co mmission; requiring the 7
Commission to submit certain information to the Department of Budget and 8
Management each year , keep certain records , and submit to certain audits; 9
authorizing the Commission to employ or retain as independent contractors certain 10
consultants and experts; requiring the Commission to establish a personnel 11
management system that operates independently of the State Personnel 12
Management System; altering the application of certain provisions of the State 13
Personnel and Pensions Article to Co mmission employees; requiring that all 14
employee compensation be determined by the Commission; requiring that certain 15
employees of the Commission be considered as permanent State employees, receive 16
certain credit for service, and be granted certain compensa tion consideration for 17
certain purposes; repealing provisions related to certain salary plan changes and 18
reporting requirements for certain personnel matters; exempting the Commission 19
from certain taxes and certain provisions of State procurement law; requiring that 20
certain employees of the Commission remain in the State Personnel Management 21
System until the Commission adopts an independent personnel management 22
system; and generally relating to the administration and powers of the Public Service 23
Commission. 24

BY repealing and reenacting, with amendments, 25
Article – Public Utilities 26
Section 2–101, 2–104, and 2–108 27
Annotated Code of Maryland 28
(2025 Replacement Volume and 2025 Supplement) 29

2 SENATE BILL 842

BY adding to 1
Article – State Finance and Procurement 2
Section 11–203(c–1) 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2025 Supplement) 5

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7

Article – Public Utilities 8

2–101. 9

(a) There is a Public Service Commission. 10

(b) The Commission is an independent unit in the Executive Branch of State 11
government. 12

(c) THE EXERCISE BY THE COMMISSION OF ITS AUTHORITY UND ER THIS 13
DIVISION IS AN ESSENTIAL GOVERNMENT FUNCTION. 14

(D) The Commission: 15

(1) shall carry out the functions assigned to it by law; AND 16

(2) MAY TAKE ACTIONS NECESSARY TO IMPLEMENT THE PROVISIONS 17
OF LAW UNDER ITS JURISDICTION. 18

2–104. 19

(a) The Commission shall appoint an Executive Secretary. 20

(b) The Executive Secretary serves at the pleasure of the Commission. 21

(c) The Executive Secretary shall: 22

(1) keep the records of the Commission, including a record of proceedings, 23
all documents required to be filed with the Commission, all orders, regulations, and 24
decisions of the Commission, and all dockets and files; 25

(2) certify true copies of those materials; 26

(3) designate an employee of the Commission to SERVE AS THE DEPUTY 27
EXECUTIVE SECRETARY WHO SHALL perform the duties of Executive Secretary when 28
the Executive Secretary is absent; [and] 29

SENATE BILL 842 3

(4) DIRECT AND SUPERVISE THE ADMINISTRATIVE A FFAIRS AND 1
ACTIVITIES OF THE COMMISSION IN ACCORDA NCE WITH ITS REGULAT IONS AND 2
POLICIES; 3

(5) APPROVE ALL ACCOUNTS FOR SALARIES , PER DIEM PAYMENTS , 4
AND ALL ALLOWABLE EX PENSES OF THE COMMISSION, ITS E MPLOYEES, AND ITS 5
CONSULTANTS; 6

(6) APPROVE ALL EXPENSES INCIDENTAL TO OPERATING THE 7
COMMISSION; AND 8

[(4)] (7) perform the other duties that the Commission prescribes. 9

(d) With the approval of the Commission and in conformity with Title 10, Subtitle 10
6, Part III of the State Government Article, the Executive Secretary may destroy any record 11
or document that the Commission possesses, including a record or document required by 12
law to be filed with the Commission, if: 13

(1) the record or document has been on file for at least 3 years; and 14

(2) the Executive Secretary considers the document to be obsolete. 15

2–108. 16

(a) (1) The principal office of the Commission shall be in Baltimore City at the 17
place that the Commission selects. 18

(2) Except for leg al holidays, the offices of the Commission shall be open 19
for business during regular business hours from Monday through Friday and at other times 20
as the Commission considers necessary. 21

(b) (1) The Commission shall meet at the times and places in the State as the 22
Commission considers necessary. 23

(2) For purposes of the Open Meetings Act, a project site visit or 24
educational field tour may not be considered a meeting of the Commission if no 25
organizational business is conducted. 26

(c) The Commission shall have a seal. 27

(d) (1) (I) The State budget shall provide sufficient money for the 28
Commission to hire, develop, and organize a staff to perform the functions of the 29
Commission, including analyzing data submitted to the Commission and participating in 30
proceedings as provided in § 3–104 of this article. 31

(II) THE COMMISSION SHALL: 32
4 SENATE BILL 842

1. EACH FISCAL YEAR , SUBMIT THE COMMISSION’S 1
OPERATING PROGRAM BU DGET TO THE DEPARTMENT OF BUDGET AND 2
MANAGEMENT FOR INCLUSION IN THE STATE BUDGET BOOK FOR INFORMATIONAL 3
PURPOSES; 4

2. KEEP BUSINESS AND ACC OUNTING RECORDS USIN G 5
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; AND 6

3. AT THE END OF EACH FI SCAL YEAR , HAVE AN 7
INDEPENDENT CERTIFIE D PUBLIC ACCOUNTANT AUDIT THE ACCOUNTS A ND 8
TRANSACTIONS OF THE COMMISSION. 9

(2) (i) As the Commission considers necessary, the Commission [shall 10
hire] MAY EMPLOY OR RETAIN AS INDEPENDENT CONTR ACTORS, AND SET 11
COMPENSATION FOR, CONSULTANTS AND OTHER experts including economists, cost of 12
capital experts, rate design experts, accountants, engineers, transportation specialists, 13
[and] lawyers, FINANCIAL EXPERTS , MODELING EXPERTS , CLIMATE EXPERTS , 14
MANAGERS AND OTHER P ROFESSIONAL PERSONNEL, AND ADMINISTRATIVE STAFF 15
AND PERSONNEL. 16

(ii) To assist in the regulation of intrastate hazardous liquid 17
pipelines under Title 11, Subtitle 2 of this article, the Commission shall include on its staff 18
at least one engineer who specializes in the storage of and the transportation of hazardous 19
liquid materials by pipeline. 20

(3) The Commission shall include on its staff one or more employees that 21
are experts in cybersecurity to: 22

(i) advise the Chairman of the Commission and the commissioners 23
on measures to improve oversight of the cybersecurity practices of public service companies; 24

(ii) consult with the Office of Security Management on cybersecurity 25
issues related to utility regulation; 26

(iii) assist the Commission in monitoring the minimum securit y 27
standards developed under § 5–306 of this article; 28

(iv) participate in briefings to discuss cybersecurity practices based 29
on: 30

1. applicable National Association of Regulatory Utility 31
Commissioners guidance; and 32

SENATE BILL 842 5

2. improvements to cybersecurity practices recommended in 1
the cybersecurity assessments required under § 5–306 of this article; and 2

(v) support public service companies that do not meet minimum 3
security standards with remediating vulnerabilities or addressing cybersecurity 4
assessment findings. 5

[(4) The Commission may retain on a case by case basis additional experts 6
as required for a particular matter.] 7

[(5)] (4) The lawyers who represent the Commission staff in proceedings 8
before the Commission shall be appointed by the Comm ission and shall be organized and 9
operate independently of the office of General Counsel. 10

[(6)] (5) (i) As required, the Commission shall hire public utility law 11
judges. 12

(ii) Public utility law judges are a separate organizational unit and 13
shall report directly to the Commission. 14

[(7)] (6) The Commission shall hire personal staff members for each 15
commissioner as required to provide advice, draft proposed orders and rulings, and perform 16
other personal staff functions. 17

[(8)] (7) (i) The Commission shall: 18

1. collaborate with the Office of Security Management to 19
establish cybersecurity standards and best practices for regulated entities, taking into 20
account utility needs and capabilities based on size; 21

2. periodically share information on cybersecurity initiatives 22
and best practices with municipal electric utilities; and 23

3. beginning on or before January 1, 2025, and every 2 years 24
thereafter: 25

A. collect certifications of a public service company’s 26
compliance with standards used in the assessments conducted under § 5–306 of this article 27
for cybersecurity–related policies and procedures; and 28

B. submit a report to the State Chief Information Security 29
Officer, or the Officer’s designee. 30

(ii) The report required under subparagraph (i) of this paragraph 31
shall include: 32

6 SENATE BILL 842

1. a general overview of cybersecurity technology and 1
policies used by public service companies in the State, grouped by the following types: 2

A. investor–owned electric companies; 3

B. electric cooperatives; 4

C. municipal electric companies; 5

D. gas companies; and 6

E. water companies; 7

2. general recommendations for improving cybersecurity 8
technology and policies used by public service companies in the State, grouped by the 9
following types: 10

A. investor–owned electric companies; 11

B. electric cooperatives; 12

C. municipal electric companies; 13

D. gas companies; and 14

E. water companies; and 15

3. for each certification collected: 16

A. the name of the public service company; 17

B. the date of the public service company’s most recent 18
cybersecurity assessment; 19

C. the cybersecurity framework used in the cybersecurity 20
assessment of the public service company; and 21

D. the name of the entity that comple ted the cybersecurity 22
assessment. 23

[(9)] (8) Subject to § 3 –104 of this article, the Commission may delegate 24
to a commissioner or personnel the authority to perform an administrative function 25
necessary to carry out a duty of the Commission. 26

[(10) (i) Except as provided in subparagraph (ii) of this paragraph or 27
otherwise by law, all personnel of the Commission are subject to the provisions of the State 28
Personnel and Pensions Article. 29
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(ii) The following are in the executive service, management service, 1
or are special appointments in the State Personnel Management System: 2

1. each commissioner of the Commission; 3

2. the Executive Director; 4

3. the General Counsel and each assistant general counsel; 5

4. the Executive Secretary; 6

5. the commissioners’ personal staff members; 7

6. the chief public utility law judge; and 8

7. each license hearing officer.] 9

(e) (1) (I) THE COMMISSION SHALL ESTABLISH FOR THE EMPLOYEES 10
OF THE COMMISSION A PERSONNEL MANAGEMENT SYSTEM THAT OPERATES 11
INDEPENDENTLY OF THE STATE PERSONNEL MANAGEMENT SYSTEM. 12

(II) THE PERSONNEL MANAGEMENT SYSTEM ES TABLISHED BY 13
THE COMMISSION SHALL: 14

1. BE BASED ON MERIT; AND 15

2. INCLUDE FAIR AND EQUITABLE PROCEDURES FOR: 16

A. APPOINTING, HIRING, PROMOTING, TERMINATING, 17
AND REMOVING EMPLOYEES; AND 18

B. REDRESSING GRIEVANCES. 19

(2) ALL COMMISSION EMPLOYEES ARE SUBJECT TO DIVISIONS II 20
AND III OF THE STATE PERSONNEL AND PENSIONS ARTICLE. 21

[(1)] (3) The compensation of [the following personnel] ALL EMPLOYEES 22
shall be determined by the Commission and, if possible, in accordance with the State pay 23
plan[: 24

(1) the Executive Director; 25

(2) the General Counsel; 26

8 SENATE BILL 842

(3) the special appointment attorneys in the office of General Counsel; 1

(4) the Executive Secretary; 2

(5) the chief public utility law judge; 3

(6) each license hearing officer; and 4

(7) all Commission personnel in positions in: 5

(i) the management service; and 6

(ii) professional and technical classifications uni que to the 7
Commission]. 8

(4) ALL PERMANENT EMPLOYEES OF THE COMMISSION SHALL: 9

(I) BE CONSIDERED AS PER MANENT STATE EMPLOYEES FOR 10
THE PURPOSES OF TRAN SFERRING TO OR FROM ANOTHER POSITION IN STATE 11
GOVERNMENT; 12

(II) RECEIVE CREDIT FOR SERVICE WITH THE COMMISSION FOR 13
ANY ACCRUED LEAVE AND BENEFITS; AND 14

(III) BE GRANTED THE SAME COMPENSATION CONSIDERATION 15
THAT WOULD BE PROVID ED TO AN EMPLOYEE TR ANSFERRING WITHIN AN OTHER 16
DIVISION OF STATE GOVERNMENT. 17

(5) THE COMMISSION SHALL ADOPT REGULATIONS TO GOVERN THE 18
PERSONNEL MANAGEMENT SYSTEM ADOPTED UNDER THIS SUBSECTION , 19
INCLUDING: 20

(I) PROCEDURES FOR APPOI NTING, HIRING, PROMOTING, 21
TERMINATING, REMOVING, AND REINSTATING EMPLOYEES; 22

(II) POLICIES FOR LEAVE; AND 23

(III) PROCEDURES FOR HEARING AND REDRESSING GRIEVANCES 24
AND DISCIPLINARY ACTIONS. 25

[(f) (1) At least 45 days before the effective date of the change, the Commission 26
shall submit to the Secretary of Budget and Management each change to salary plans that 27
involves increases or decreases in s alary ranges other than those associated with routine 28
reclassifications and promotions or general salary increases approved by the General 29
Assembly. 30
SENATE BILL 842 9

(2) Reportable changes include creation or abolition of classes, regrading 1
the classes from one establis hed range to another, changes in salary guidelines to 2
administer the pay schedules, or creation of new pay schedules or ranges. 3

(3) The Secretary of Budget and Management shall: 4

(i) review the proposed changes; and 5

(ii) at least 15 days before the effective date of the proposed changes, 6
advise the Commission whether the changes would have an adverse effect on comparable 7
State jobs. 8

(4) Failure of the Secretary to respond in a timely manner is not considered 9
a statement of adverse effect. 10

(g) On or before January 31 of each year, the Commission shall report to the 11
Secretary of Budget and Management and, subject to § 2 –1257 of the State Government 12
Article, to the General Assembly setting forth all personnel positions, classifications, and 13
salaries in the Commission as of the end of the preceding calendar year.] 14

(F) AT ANY TIME , THE COMMISSION MAY BE SUB JECT TO AN AUDIT AND 15
EXAMINATION OF ACCOUNTS AND TRANSACTIONS BY THE OFFICE OF LEGISLATIVE 16
AUDITS. 17

(G) THE COMMISSION IS EXEMPT FROM TAXATION BY THE STATE AND 18
LOCAL GOVERNMENT. 19

Article – State Finance and Procurement 20

11–203. 21

(C–1) EXCEPT AS PROVIDED IN TITLE 12, SUBTITLE 4 AND TITLE 14, 22
SUBTITLE 3 OF THIS ARTICLE, THIS DIVISION II DOES NOT APPLY TO TH E PUBLIC 23
SERVICE COMMISSION. 24

SECTION 2. AND BE IT FURTHER ENACTED, That all employees of the Public 25
Service Commission that are subject to the State Personnel Management System on the 26
effective date of this Act shall remain subject to the State Personnel Management System 27
until the Pu blic Service Commission adopts a personnel management system that is 28
independent of the State Personnel Management System in accordance with § 2–108(e) of 29
the Public Utilities Article, as enacted by Section 1 of this Act. 30

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2026. 32