(a) For a corporation to qualify as a quasi-public corporation, its articles of incorporation must provide that the corporation is:
(1) nonprofit;
(2) not an instrumentality of the County; and
(3) incorporated for the sole purpose of serving as the County’s local management board.
(b) The corporation’s bylaws may contain any provision, not inconsistent with laws or the articles of incorporation, to govern and manage the corporation.
(c) The corporation’s by laws must:
(1) prohibit conflict of interest, self-dealing, collusive practices, or similar impropriety by any member of the board of directors or employee, in a way that is at least as stringent as the conflict of interest provisions of the County ethics law; require the annual disclosure of a financial or similar interest of any director or officer in any matter that may come before the corporation; establish conditions under which a director or employee must not participate in corporation actions when there is a conflict between the person’s official duties and private interests; and include appropriate remedies for violations of these and other ethical standards, including removal or termination;
(2) require the board of directors to comply with the state open meetings law as if the corporation were a public body and each action by the board were a quasi-legislative functions;
(3) require competitive procurement for goods and services after reasonable public notice;
(4) require a surety bond or similar instrument to protect against misappropriation of funds by directors and employees;
(5) require a copy of each agreement with any state or federal agency to be sent to the Executive and Council within 14 days after the agreement is executed;
(6) require an annual audit by an independent accounting firm, a copy of which must be sent to the Executive and Council within 14 days after receipt and made available to the public on request;
(7) require quarterly and annual financial reports, reflecting funds received from all sources, to be submitted to the Executive, Council, and Board of Education;
(8) require the corporation to publish a detailed annual report of its operations and accomplishments, including initiatives undertaken, outcomes, objectives, performance measures, and evaluation of effectiveness, which must be submitted promptly to the Executive, Council, and Board of Education;
(9) require the corporation to publish an annual programmatic report to the public in an easily readable format;
(10) require each contract the corporation enters into to provide that the County government may assume the rights and obligations of the corporation under the contract if its designation as the local management board is suspended or revoked;
(11) require minutes of board meetings to be maintained on file and available for public inspection for at least 6 years; and
(12) require all contract files to be maintained for at least 6 years after the date of final payment.
(d) The board of directors must submit any proposed amendment to the articles of incorporation or bylaws to the Executive and Council for review and comment at least 60 days before the board takes final action on the amendment. The board must submit a copy of each adopted amendment to the Executive and Council within 5 days after adoption. (2003, L.M.C., ch. 20, § 1.)