SB 340, SB 341, SB 342, SB 343, SB 344, SB 997

Senate Local Government Committee
Wednesday, October 28, 2015
10:30 AM
Room 461


  1. Call to Order
  2. Consideration of Legislation
    • SB 997 (Alloway) – amends Titles 42 and 53 providing an exception to governmental immunity for municipalities of refuge, and precluding municipalities of refuge from applying to state law enforcement grant programs or participating in surplus state property sales, respectively.
      • A03411 (Hutchinson) – defines “municipality” and specifies that a municipality’s eligibility for grants and state surplus property purchases may be reinstated if it resumes enforcing immigration orders and rescinds any rule, order, ordinance or policy described under subsection (b).
    • SB 340 (Eichelberger) – amends the Local Government Unit Debt Act (“LGUDA”) in Title 53 (Municipalities Generally) by strengthening regulatory oversight by DCED and restrictions on municipal borrowing and project financing.
      • A03718 (Eichelberger) – clarifies the definition of “working capital” to include day-to-day operational costs and contingencies for up to one year after completion of a project. Clarifies that an authority or municipal authority in existence on the effective date of this paragraph formed by two or more local government units for the purpose of providing loan programs for the benefit of local government units and authorities or municipal authorities, shall not be subject to the provisions of § 8005(d) relating to procedures and prohibitions on issuance of guarantees. Also clarifies that the provisions regarding fiduciary duty only pertain to financial advisors retained and compensated directly by the municipality, not persons such as representatives of a lender or underwriter who are otherwise covered by federal securities laws. Makes multiple technical changes.
    • SB 341 (Blake) – amends Titles 53 (Municipalities Generally) and 65 (Public Officers) by establishing that a conflict of interest by a member of a municipal authority in the award of any contract or agreement is a prohibited act and empowers appropriate agencies with enforcement and prosecutorial powers.
    • SB 342 (Folmer) – amends Title 53 (Municipalities Generally) by restricting the use of interest-rate management agreements, otherwise known as “swaps.”
      • A03721 (Hutchinson) – clarifies that an authority or municipal authority formed by two or more local government units for the purpose of providing loan programs for the benefit of local government units and other authorities or municipal authorities are not subject to subchapter F of Chapter 82. However, all municipal authorities are subject to these requirements.
    • SB 343 (Teplitz) – enacts the First Class City and County Interest Rate Management Agreement Act restricting the use of interest-rate management agreements, otherwise known as “swaps.”
    • SB 344 (Eichelberger) – amends the Public Works Contractors’ Bond Law of 1967 to insure one hundred percent project performance security for local governments.
  3. Adjournment