Ch. 217 LAWS OF MARYLAND
5-202.1.

(A) IN THIS SECTION, "AGENCY" MEANS THE MARYLAND STATE
RETIREMENT AGENCY.

(A) (1) (B) THE DEPARTMENT MARYLAND STATE RETIREMENT
AGENCY MAY AT ANY TIME EXAMINE THE RECORDS OF LOCAL SCHOOL
SYSTEMS TO DETERMINE WHETHER THE STATE'S PAYMENTS FOR
SOCIAL SECURITY TAXES AND RETIREMENT CONTRIBUTIONS FOR
EMPLOYEES OF THE SCHOOL SYSTEMS ARE IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE 73B OF THE CODE AND THIS ARTICLE.

(2) THE DEPARTMENT SHALL PAY FOR THE EXAMINATION
FROM THE APPROPRIATION TO THE DEPARTMENT IN THE STATE
BUDGET.

(B) (C) (1) (I) IF AN EXAMINATION OF THE RECORDS OF A LOCAL
SCHOOL SYSTEM SHOWS THAT THE STATE HAS PAID MORE THAN IS
REQUIRED UNDER THIS ARTICLE AND ARTICLE 73B OF THE CODE,
WITHIN 30 DAYS AFTER THE DATE OF THE NOTICE TO THE SCHOOL
SYSTEM OF THE STATE OVERPAYMENT, THE SCHOOL SYSTEM MAY
APPEAL THE NOTICE OF STATE OVERPAYMENT TO THE SECRETARY OF
BUDGET AND FISCAL PLANNING WHO SHALL APPOINT A HEARING
EXAMINER.

(II) THE HEARING EXAMINER SHALL MAKE
RECOMMENDATIONS TO THE SECRETARY OF BUDGET AND FISCAL
PLANNING WHO SHALL MAKE A FINAL DETERMINATION REGARDING
THE AMOUNT, IF ANY, OF THE STATE OVERPAYMENT.

(2) IF A LOCAL SCHOOL SYSTEM DOES NOT APPEAL TO THE
SECRETARY OF BUDGET AND FISCAL PLANNING OR IF THE SECRETARY
OF BUDGET AND FISCAL PLANNING DETERMINES THAT THE STATE IS
DUE REIMBURSEMENT FOR EXCESS PAYMENTS AS PROVIDED IN
PARAGRAPH (1) OF THIS SUBSECTION, AT THE REQUEST OF THE
DEPARTMENT OF EDUCATION THE MONEYS OWED SHALL BE DEDUCTED
FROM ANY OTHER STATE FUNDS THAT WOULD OTHERWISE BE PAID TO
THE SCHOOL SYSTEM.

(3) FOR PURPOSES OF THE ADMINISTRATIVE PROCEDURE
ACT, AN APPEAL TAKEN UNDER THIS SECTION IS NOT A CONTESTED
CASE.

(D) ANY REIMBURSEMENTS WHICH RESULT FROM AUDITS UNDER
THIS SECTION:

(1) SHALL BE APPLIED FIRST TO REIMBURSE THE AGENCY
FOR THE EXPENSES OF THE AUDITS; AND

(2) AFTER REIMBURSEMENT TO THE AGENCY UNDER ITEM (1)
OF THIS SUBSECTION, SHALL BE CREDITED TO THE GENERAL FUND.

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