SB 127 Maryland Senate · 2025 Regular Session

State Government - Grants and Contracts - Reimbursement of Indirect Costs

This bill changes how Maryland reimburses nonprofit organizations for indirect costs (like overhead) on state-funded grants and contracts. It applies to nonprofits receiving state grants or contracts awarded on or after specific dates (2018 for new grants, 2019 for renewals), excluding purely federal funding. The key provision requires reimbursement at either the nonprofit's existing federal indirect cost rate or a minimum 10% rate of modified direct costs if no federal rate exists. This policy takes effect October 1, 2025.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Aug 2024

Committee Review

Apr 2025

Senate Passage

Apr 2025

House of Delegates Passage

Apr 2025

Signed into Law

Apr 2025

Introduced Aug 14, 2024 Signed Apr 22, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Third - State Government - Grants and Contracts - Reimbursement of Indirect Costs → Enrolled - State Government - Grants and Contracts - Reimbursement of Indirect Costs · 3 edits · Apr 22, 2025

MINOR

The bill was formally enrolled and prepared for the Governor's signature, changing its status from a draft to an official law. The substantive policy text regarding indirect cost reimbursement rates and the Council's study requirements remained unchanged, though the formatting and section numbering were updated to reflect the final legislative version.

Scope change

The bill's scope and applicability remain unchanged; it continues to govern reimbursement of indirect costs for nonprofit organizations receiving State funds under the same criteria as before.

TECHNICAL

The document status changed from a pre-filed draft to an enrolled bill, indicating it has passed all legislative stages and is ready for executive approval.

Header information was updated to include 'Emergency Bill' designation and signatures for proofreaders and the President, replacing the original filing and introduction dates.

Internal section numbering and formatting were reorganized to align with the standard enrolled bill format, but the actual legal text and policy provisions were not altered.

Floor votes · Senate Mar 23, 2025 · House of Delegates Mar 23, 2025

How they voted

45–0

Passed · 1 other

Total votes 46

Mar 23, 2025

D Democratic33

33 Yea

100% Yea

R Republican13

12 Yea 1

92% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 22, 2025

Signed into law

Approved by the Governor - Chapter 163

executive

Apr 7, 2025

Upper · Passed

Passed Enrolled

upper

Apr 7, 2025

Introduced

Senate Concurs House Amendments

upper

Apr 7, 2025

Lower · Passed

Third Reading Passed

lower

Apr 3, 2025

Lower · Passed

Favorable with Amendments {

lower

Apr 3, 2025

Lower · Passed

Favorable with Amendments Report by Health and Government Operations

lower

Mar 23, 2025

Senate · Passed

Senate Vote: pass (45-0-1)

senate

Mar 17, 2025

Committee

Referred Health and Government Operations

lower

Mar 17, 2025

Upper · Passed

Third Reading Passed

upper

Mar 17, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 17, 2025

Upper · Passed

Favorable with Amendments Report by Budget and Taxation

upper

Jan 8, 2025

Committee

First Reading Budget and Taxation

upper

Aug 14, 2024

Introduced

Pre-filed

upper

1 primary · 0 co-sponsors