ROBERT L. EHRLICH, JR., Governor                             Ch. 202

including identification of any positions that are not critical to agency functions-
Employees in these positions may be offered a buyout incentive one-month's salary
for each year of service, with a maximum accumulation of six months of salary. This
incentive shall be available to individual employees in a rational, nondiscriminatory
fashion, with a focus on the functions of the positions eliminated.

Plans for this pilot will be developed by DBM before May 1, 2003, including the
selection of at least five agencies of varying size to participate in the pilot-
Organizational plans developed by agency administrators should identify any
positions that are not critical by August 1, 2003, and notify employees affected by
these plans by August 15, 2003. Employees, if eligible for the buyout based on the
results of these organizational plans, may have until October 1, 2003, to decide
whether or not they would like to accept this incentive, and until November 1, 2003,
to separate from State service. If eligible employees do not wish to separate from
State service under this scenario, the regular layoff process shall apply. Agencies
abolishing positions as part of the pilot program may be authorized to fill an
equivalent number of more essential positions that are not currently exempt from the
hiring freeze.

DBM is required to provide a cost-benefit analysis of the effectiveness of the
pilot by June 1, 2004, to the budget committees. Budget savings realized and other
policy implications should be considered.

SECTION 47. 46. AND BE IT FURTHER ENACTED, That the fiscal 2004
appropriations made for pay-for-performance bonuses shall be deleted.
Appropriations for the agencies listed below shall be reduced by the amounts
indicated, inclusive of reductions made elsewhere in Comptroller subobject 0156.

Budget Agency                                           General Special Federal Reimb.

Code

E             Financial and Revenue Adm.                              6,125

H             General Services                                  473                                            1,431

J              Transportation                                                   194,911

P             Labor, Licensing, & Reg.               36,939                        260,204

V             Juvenile Justice                              13,946

Further, pay-for-performance bonuses shall not be paid in fiscal 2004.

SECTION 48. 47. AND BE IT FURTHER ENACTED, That the General
Assembly intends that Maryland Prepaid College Trust continue making its State
loan repayments in fiscal 2004 and repayments be made in each year thereafter until
the entire balance is repaid. The amount repaid in fiscal 2004 should be no less than
$120,000.

SECTION 48. AND BE IT FURTHER ENACTED, That the Office of
Legislative Audits (OLA) shall audit the accounts and transactions of the Maryland
Health Care Foundation to determine the source of any money remaining in the
accounts of the foundation and any outstanding obligations of the foundation as of
June 1, 2003. On or before October 1, 2003, OLA shall submit the audit report, subject
to Section 2-1246 of the State Government Article, to the Senate Budget and Taxation

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