ANNAPOLIS, Md. — A legislative audit questions the inspection and permitting process within Maryland's Environment Department.
Auditors first scrutinized the department's process for verifying home lead inspections.
Between April 2021 and July 2025, inspectors issued 13,516 lead-free certificates.
The audit accuses the department of not requiring "detailed documentation" from inspectors in support of issuing certificates.
Department officials pushed back calling the finding "inaccurate."
They claim to have a system in place that enabled questionable contractors to be identified before auditors even began their work.
"MDE maintains multiple oversight mechanisms designed specifically to review inspector performance and inspection records," the department said in response. "This finding validates the effectiveness of MDE’s existing oversight processes, as our internal controls successfully — and independently — flagged these inspectors for enforcement action."
The department also countered by citing legislation they claim to have initiated calling for lead inspectors to obtain insurance and/or bonding for problems that arise.
That bill, the department says, is currently awaiting the governor's signature.
Nonetheless, auditors highlighted one inspector who was convicted of falsifying more than 1,500 certifications over a seven-year period, making them all null and void.
RELATED: Maryland inspector pleads guilty to falsifying lead paint certificates
Auditors believe the department was late in notifying affected homeowners.
"Although MDE advised that it suspended the inspector’s license in April 2024, virtually all the property owners and tenants certified by this inspector were not notified until February 2025," the audit states.
As evidence of the delay, the audit noted only 299 of the impacted properties were issued new inspection certificates as of December 31, 2025.
With that, auditors raised concerns about health risks delays posed to children living in those homes.
"MDE did not attempt to follow up with the tenants to ensure they received the letter, or to help ensure children residing in these properties obtained the recommended lead blood-level test," the audit states.
The department disputed this as well, issuing the following response:
"For the three children identified with elevated blood lead levels at properties inspected by the Company, MDE conducted complete environmental investigations within an average of 18 days after receiving the blood test results. MDE provided services to those families, oversaw remediation of lead hazards, and remained in contact with the affected households. As of today, the blood lead levels for all three children are below the Centers for Disease Control and Prevention (CDC) reference level of concern."
Aside from the fraudulent lead certificate scandal, auditors found the department failed to ensure that all registered rental units built before 1978 were current in lead inspections as required by law.
Auditors investigated a tip submitted via their fraud, waste, and abuse hotline.
While substantiating the complaint, it was not enough to warrant a criminal referral, as auditors attributed most of the problem to a lack of proper documentation and recording.
The department explained the discrepancy this way:
"The discrepancy identified by OLA primarily stems from formatting differences between two separate databases: 1. The system used by property owners to register rental units, and 2. The system used by certified inspectors to submit lead inspection results."
Lead wasn't the only issue flagged in the audit, so were wastewater discharge permits and radiation machines.
"Our analysis of MDE’s permit records as of April 2025, disclosed that MDE had a backlog of 120 permit applications," the audit says.
The department said a majority of the applications were "administratively continued” until a new permit could be issued.
However, auditors documented nearly 20 permits that have been continued for between 3 and 9-years.
While an administrative continuance is legal, auditors say the backlog must be cleared by December of 2026
The department in the past blamed staffing shortages, but auditors argue they've failed to fill budgeted positions.
On top of being behind on wastewater discharge permits, the department was struggling to catch up with outdated inspections, some overdue by five-years.
In response, the department said improvements have been made on all levels resulting in a 94 percent backlog clearance.
The department maintains all permits will be up to date before the imposed deadline.
Finally, the audit revealed a number of radiation machines with outdated inspections, potentially exposing patients to higher radiation levels while undergoing medical testing at their dentist or doctor's office.
While conceding the accuracy of this finding, the department said it's reduced the backlog to only 18 machines, "almost completely eliminating the backlog and restoring a fully current inspection schedule."
