EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0789*
HOUSE BILL 789
E4 3lr2322
CF SB 650
By: Delegate D. Jones
Introduced and read first time: February 8, 2023
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 11, 2023
CHAPTER ______
AN ACT concerning 1
Public Safety – State Disaster Recovery Fund 2
Catastrophic Event Account – Unit of Local Government – Authorized Fund 3
FOR the purpose of establishing the State Disaster Recovery Fund to provide disaster 4
related assistance under certain circumstances; requiring the Maryland Department 5
of Emergency Management to administer the Fund; and generally relating to the 6
State Disaster Recovery Fund making alterations to the Catastrophic Event Account 7
authorized uses to allow funds to be used by a unit of local government; and generally 8
relating to the Catastrophic Event Account. 9
BY adding to 10
Article – Public Safety 11
Section 14–110.5 12
Annotated Code of Maryland 13
(2022 Replacement Volume) 14
BY repealing and reenacting, with amendments, 15
Article – State Finance and Procurement 16
Section 7–324 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2022 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
2 HOUSE BILL 789
Article – Public Safety 1
14–110.5. 2
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4
(2) “FUND” MEANS THE STATE DISASTER RECOVERY FUND. 5
(3) “LOCAL DISASTER DECLARATION” MEANS A FORMAL REQUEST 6
FOR STATE DISASTER RELIEF AND RECOVERY ASSISTA NCE MADE AS A RESULT OF 7
AN EMERGENCY BY THE SENIOR ELECTED OFFIC IAL THROUGH THE LOCAL 8
ORGANIZATION FOR EMERGENCY MANAGEMENT . 9
(B) THERE IS A STATE DISASTER RECOVERY FUND. 10
(C) THE PURPOSE OF THE FUND IS TO PROVIDE : 11
(1) DISASTER RECOVERY AS SISTANCE TO INDIVIDU ALS AND FAMILIES 12
WHEN A UNIT OF LOCAL GOVERNMENT HAS SUBMI TTED A REQUEST FOR A DISASTER 13
DECLARATION BUT A FEDERAL DISASTER DECLARATION IS NOT RECEIVED; 14
(2) DISASTER RECOVERY AS SISTANCE TO UNITS OF LOCAL 15
GOVERNMENT OF THE STATE FOR THE REPAIR , RESTORATION , RECONSTRUCTION , 16
OR REPLACEMENT OF A PUBLIC FACILITY DAMA GED OR DESTROYED WHE N A 17
FEDERAL DISASTER DECLARATION IS NOT RECEIVED; 18
(3) LOW–INTEREST OR NO –INTEREST LOANS TO BU SINESSES AND 19
NONPROFITS FOR DISAS TER RECOVERY ASSISTA NCE WHEN A FEDERAL D ISASTER 20
DECLARATION IS NOT R ECEIVED; 21
(4) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF 22
INDIVIDUALS AND FAMI LIES FOLLOWING A FED ERAL DISASTER DECLAR ATION; 23
(5) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF 24
INDIVIDUALS AND FAMI LIES WHO HAVE BEEN D ENIED FEDERAL ASSIST ANCE BUT 25
OTHERWISE MEET CRITE RIA ESTABLISHED FOR THE FUND; AND 26
(6) MATCHING FUNDS FOR A SSISTANCE TO INDIVID UALS AND STATE 27
AND LOCAL GOVERNMENT AL UNITS AFTER A FED ERAL DISASTER DECLAR ATION. 28
(D) THE FUND: 29
HOUSE BILL 789 3
(1) IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO § 1
7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 2
(2) SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF 3
PROVIDING DISASTER R ECOVERY ASSISTANCE I N ACCORDANCE WITH TH E 4
PROVISIONS OF THIS S ECTION; 5
(3) EXCEPT AS PROVIDED I N SUBSECTION (E) OF THIS SECTION, MAY 6
BE USED ONLY IF: 7
(I) THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY; 8
OR 9
(II) A LOCAL ORGANIZATION FOR EMERGENCY MANAGE MENT 10
REQUESTS ASSISTANCE FROM THE FUND; 11
(4) IS NOT INTENDED TO D UPLICATE OR REPLACE FEDERAL 12
DISASTER ASSISTANCE ; AND 13
(5) MAY NOT BE USED FOR ANY OTHER PURPOSE OT HER THAN THOSE 14
DESCRIBED IN THIS SE CTION. 15
(E) A PORTION OF THE FUND MAY BE USED TO A DMINISTER THE FUND, 16
INCLUDING PROVIDING DISASTER CASE MANAGE MENT RESOURCES . 17
(F) BEGINNING IN FISCAL Y EAR 2025, THE GOVERNOR SHALL INCLUD E IN 18
THE ANNUAL BUDGET BI LL A SUFFICIENT APPROPRIATION TO BRING THE MINIMUM 19
BALANCE OF THE FUND TO AT LEAST $20,000,000 AT THE START OF EACH FISCAL 20
YEAR, WITH FUNDS CONSISTIN G OF: 21
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 22
(2) REPAYMENTS OF PRINCI PAL AND INTEREST FRO M LOANS MADE 23
FROM THE FUND; 24
(3) REIMBURSEMENTS FROM THE FEDERAL GOVERNME NT OR OTHER 25
LEGAL ENTITIES FOR D ISASTER RECOVERY ASS ISTANCE EXPENDITURES MADE 26
FROM THE FUND; AND 27
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 28
THE BENEFIT OF THE FUND. 29
(G) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 30
THE SAME MANNER THAT OTHER STATE MONEY MAY BE IN VESTED. 31 4 HOUSE BILL 789
(H) ANY FUNDS EXPENDED FR OM THE FUND ARE SUPPLEMENTAL TO AND 1
ARE NOT INTENDED TO TAKE THE PLACE OF FU NDING THAT OTHERWISE WOULD BE 2
APPROPRIATED TO ELIGIBLE RECIPIENTS FROM THE FUND FOR ANY OTHER 3
PURPOSE. 4
(I) THE DEPARTMENT SHALL : 5
(1) ADMINISTER THE FUND; 6
(2) ESTABLISH ELIGIBILIT Y CRITERIA, POLICIES, AND PROCEDURES 7
FOR THE ADMINISTRATI ON OF THE FUND, WHILE CONSIDERING EX ISTING STATE 8
DISASTER RECOVERY PR OGRAMS AND FEDERAL D ISASTER RELIEF AND R ECOVERY 9
REQUIREMENTS ; AND 10
(3) CONSULT WITH APPROPR IATE STATE AGENCIES AND LO CAL 11
ORGANIZATIONS FOR EM ERGENCY MANAGEMENT I N THE DEVELOPMENT OF 12
ELIGIBILITY CRITERIA , POLICIES, AND PROCEDURES FOR ADMINISTRATION O F THE 13
FUND. 14
(J) THE DEPARTMENT MAY ESTABL ISH: 15
(1) REGULATIONS RELATED TO THE ADMINISTRATIO N OF THE FUND; 16
(2) ACCOUNTS AND SUB –ACCOUNTS WITHIN THE FUND TO 17
EFFECTUATE THE PURPO SES OF THIS SECTION ; AND 18
(3) FORMAL ADVISORY BOD IES TO ADVISE ON THE ADMINISTRATION 19
OF THE FUND. 20
(K) (1) ON OR BEFORE DECEMBER 31, 2023, AND ON OR BEFORE EAC H 21
DECEMBER 31 THEREAFTER , THE SECRETARY SHALL REPOR T TO THE GOVERNOR 22
AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE 23
GENERAL ASSEMBLY ON THE USE O F THE FUND FOR THE PREVIOUS FISCAL YEAR. 24
(2) THE REPORT SHALL INCL UDE: 25
(I) THE NUMBER OF STATE OF EMERGENCY DECLARATION S BY 26
THE GOVERNOR; 27
(II) THE NUMBER OF LOCAL STATE OF EMERGENCY 28
DECLARATIONS AND LOC AL DISASTER DECLARATIONS SUBMITT ED TO THE 29
SECRETARY AND THE REA SON FOR EACH DECLARA TION; 30
HOUSE BILL 789 5
(III) A SUMMARY OF THE DAM AGE ASSESSMENT DATA RELATED 1
TO EACH DECLARATION , AND THE DISPOSITION OF EACH REQUEST FOR THE 2
PREVIOUS FISCAL YEAR ; 3
(IV) THE AMOUNT OF FUNDIN G DISTRIBUTED TO EACH EL IGIBLE 4
ENTITY BY THE FUND FOR THE PREVIOUS FISCAL YEAR; 5
(V) THE FUND BALANCE AT THE E ND OF THE PREVIOUS F ISCAL 6
YEAR; 7
(VI) ANY FEDERAL DISASTER DECLARATIONS REQUEST ED AND 8
ASSOCIATED DAMAGE AS SESSMENT DATA FOR TH E PREVIOUS FISCA L YEAR; 9
(VII) A SUMMARY OF ANY FED ERAL DISASTER ASSIST ANCE 10
RECEIVED DURING THE PREVIOUS FISCAL YEAR ; 11
(VIII) A SUMMARY OF ANY REG ULATIONS ISSUED RELA TED TO THE 12
FUND DURING THE PREVI OUS FISCAL YEAR ; AND 13
(IX) ANY RECOMMENDED CHAN GES TO THIS SECTION TO 14
INCREASE THE EFFICIE NCY AND EFFICACY OF THE FUND. 15
Article – State Finance and Procurement 16
7–324. 17
(a) In this section, “Account” means the Catastrophic Event Account. 18
(b) Subject to the provisions of this section, the Account is established to enable 19
the State OR A LOCAL GOVERNMEN T to respond without undue delay to a natural disaster 20
or other catastrophic situation, or federal civilian employee financial hardship from a full 21
or partial federal government shutdown due to a lapse in federal appropriations that cannot 22
be taken care of within the resources of existing appropriations. 23
(c) The Governor may provide an appropriation in the budget bill to the Account. 24
(d) (1) Subject to paragraph (2) of this subsection, after a 15–day review and 25
comment period by the Legislative Policy Committee, the Governor may transfer funds by 26
budget amendment from the Account to the expenditure accounts of the appropriate unit 27
of State government OR UNIT OF LOCAL GOV ERNMENT. 28
(2) If the federal government is in a full or partial shutdown due to a lapse 29
in appropriations, after a 2–day review and comment period by the Legislative Policy 30
Committee, the Governor may transfer funds by budget amendment from the Account to 31
the Federal Government Shutdown Employee Assistance Loan Fund established under § 32
7–327 of this subtitle. 33 6 HOUSE BILL 789
(e) Funds appropriated to the Catastrophic Event Account: 1
(1) may not be used to offset operating deficiencies in regular programs of 2
State government; but 3
(2) may be expended to assist a unit of State government OR UNIT OF 4
LOCAL GOVERNMENT in funding costs in connection with a natural disaster, a 5
catastrophic situation, or a full or partial federal government shutdown due to a lapse in 6
appropriations. 7
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 8
7–302 of this subtitle. 9
(2) The Treasurer shall separately hold, and the Comptroller shall account 10
for, the Account. 11
(3) The Account shall be invested and reinvested in the same manner as 12
other State funds. 13
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. 14
(g) Money appropriated to the Account does not revert to the Revenue 15
Stabilization Account. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2023. 18
Approved:
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Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.