HARRY HUGHES, Governor

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(h) The [Department] DIVISION possesses and enjoys all
powers and authority necessary for the proper performance of
any duty or function by this section devolving upon or
required of the [Department] DIVISION.

(i) At his discretion, the Legislative Auditor may
conduct an annual audit of a fiscal and compliance nature of
the accounts and transactions of the State use industries in
place of conducting these audits on a biennial basis.
Officials of the State use industries shall be advised
whether annual or biennial audits will be conducted. The
cost of the fiscal portion of the post audit examinations
shall be borne by the State use industries.

SECTION 13. AND BE IT FURTHER ENACTED, That Section(s)
231-I, 231-IA, and 14B(c), respectively, of Article 41 -
Governor - Executive and Administrative Departments, of the
Annotated Code of Maryland be and they are hereby
transferred, with amendments, to be Section(s) 8-301 to be
under the new subtitle "Subtitle 3. Resident Business
Preference"; and Section(s) 8-401 and 8-402 to be under the
new subtitle "Subtitle 4. Priorities Among Preferences",
respectively, of the new Article 21 - Procurement, of the
Annotated Code of Maryland, to read as follows:

ARTICLE 21 - PROCUREMENT

SUBTITLE 3. RESIDENT BUSINESS PREFERENCE

[231-1.] 8-301.

In purchasing [materials,] supplies[, and equipment]
for the using [authorities,] AGENCIES the Secretary of
General Services shall give a preference to [products]
SUPPLIES manufactured or produced in Maryland, except when
in the judgment of the Secretary such purchases would
operate to the disadvantage of the State.

SUBTITLE 4. PRIORITIES AMONG PREFERENCES

[231-IA.] 8-401.

(a) As used in this section, "recycled paper" means any
paper product with not less than 80 percent of its total
weight consisting of secondary waste materials.

(b)  "Secondary waste materials" means fragments,
products, or finished products of a manufacturing process
which has converted a raw material into a commodity of real
economic value, and includes post consumer waste of a total
gross content of at least 80 percent.

(c)  The total paper purchase by the Secretary of
General Services shall include recycled paper so that the
total volume of recycled paper purchased by the State is not