2013 Maryland Code
EDUCATION
§ 5-213 - Withholding or suspending payment of funds

§5-213.

(a) After notification from the State Superintendent that a county is not complying with the provisions of the State program of public education, the State Comptroller shall withhold any installment due the county from the General State School Fund.

(b) (1) If the Superintendent finds that a county fails to meet the requirements of Subtitle 4 of this title, the Superintendent shall notify the county of such noncompliance.

(2) If a county disputes the finding within 30 days of the issuance of such notice, the dispute shall be promptly referred to the State Board of Education which shall make a final determination.

(3) Upon receipt of certification of noncompliance by the Superintendent or the State Board, the Comptroller shall suspend, until notification of compliance is received, payment of any funds due the county for the current fiscal year, as provided under § 5-202 of this subtitle which are appropriated in the General State School Fund, to the extent that the State’s aid due the county in the current fiscal year under that section in the Fund exceeds the amount which the county received in the prior fiscal year.

(c) (1) If the Superintendent finds that a county is not complying with the maintenance of local effort provisions of § 5-202(d)(1)(ii) of this subtitle, the Superintendent shall notify the county of such noncompliance.

(2) If a county disputes the finding within 15 days after the issuance of a notice under paragraph (1) of this subsection, the dispute shall be referred promptly to the State Board, which shall make a final determination.

(3) (i) Within 15 days of receipt of certification of noncompliance by the Superintendent or the State Board and subject to subparagraph (ii) of this paragraph, the Comptroller shall, under § 2-608 of the Tax - General Article, withhold income tax revenue from the county so that the total amount withheld is equal to the amount by which a county failed to meet the maintenance of effort requirement.

(ii) The Comptroller shall distribute the amount withheld under subparagraph (i) of this paragraph directly to the county board.

§ 5-213 - 1. Effect of noncompliance with payment of local share of foundation floor funds

(a) Notification. -- If the Superintendent finds that a county is not complying with the local share of the foundation floor required under § 5-202(d)(1)(i) of this subtitle, the Superintendent shall notify the county of such noncompliance.

(b) Referral of dispute to State Board for final determination. -- If a county disputes the finding within 15 days of the issuance of a notice under subsection (a) of this section, the dispute shall be referred promptly to the State Board, which shall make a final determination.

(c) Comptroller to withhold revenue from county. --

(1) Within 15 days of receipt of certification of noncompliance by the Superintendent or the State Board and subject to paragraph (2) of this subsection, the Comptroller shall, under § 2-608 of the Tax - General Article, withhold income tax revenue from the county so that the total amount withheld is equal to the State share of the foundation program plus the difference between the amount appropriated by the county under § 5-202(d)(1)(i) and the local share of the foundation program.

(2) The Comptroller shall distribute the amount withheld under paragraph (1) of this subsection directly to the county board.