(a)    (1)    In this section the following words have the meanings indicated.

(2)    “Financial records” means the generally accepted budgets, journals, ledgers, reports of expenses and revenue, or other forms of financial documentation that may be required as a condition for receiving State funds.

(3)    “Health or social welfare organization” means an organization that is operated for the promotion of the public health or social welfare, whether or not the organization is tax exempt under § 501(c) of the Internal Revenue Code.

(4)    “Uniform accounting standards” means:

(i)    accounting standards and procedures that the American Institute of Certified Public Accountants has adopted for voluntary health or social welfare organizations; or

(ii)    uniform standards of an equivalent nature that:

1.    are applied consistently; and

2.    conform to generally accepted accounting principles.

(b)    This section does not apply to:

(1)    a dentist;

(2)    a hospital that the State Health Services Cost Review Commission regulates;

(3)    a pharmacist; or

(4)    a physician.

(c)    (1)    This subsection applies only to a contract for the provision of health or social welfare services between:

(i)    a unit of the State government; and

(ii)    a health or social welfare organization or an individual.

(2)    A contract with an individual who is a Maryland resident or with a health or social welfare organization incorporated under the laws of this State shall require the individual or the health or social welfare organization to keep financial records in accordance with uniform accounting standards.

(3)    A contract with any other individual or private health or social welfare organization may require the individual or private health or social welfare organization to keep financial records in accordance with uniform accounting standards.

(d)    A unit of the State government that makes a grant to a private health or social welfare organization shall require the private health or social welfare organization to keep financial records in accordance with uniform accounting standards.

(e)    A unit of the State government may not require an individual or a private health or social welfare organization to keep financial records in a manner that is inconsistent with uniform accounting standards.

(f)    (1)    (i)    The chief accountant of a unit of the State government or of the principal department to which the unit is assigned may examine the financial records of an individual or a health or social welfare organization that receives a grant from the unit.

(ii)    The accountant shall give 30 days’ prior notice of an examination under this paragraph.

(2)    (i)    Subject to subparagraphs (ii) and (iii) of this paragraph, the chief accountant of a unit or of the principal department to which the unit is assigned shall examine any financial records required to be kept under subsection (c) of this section.

(ii)    For the financial records required to be kept under subsection (c)(2) of this section, the accountant shall give 30 days’ prior notice of the examination under this paragraph.

(iii)    For any financial records required to be kept under subsection (c)(3) of this section, the accountant shall examine the financial records when an examination is authorized by:

1.    the secretary of the principal department to which the unit is assigned; or

2.    if the unit is not assigned to a principal department, the head of the unit.

(g)    A unit of the State government may not:

(1)    make a grant to an organization that fails to keep financial records in accordance with uniform accounting standards; or

(2)    make a contract with an organization or individual who fails to keep financial records as required under this section.