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.
*sb0650*
SENATE BILL 650
E4 3lr1705
CF HB 789
By: Senators Elfreth, Bailey, Beidle, Hester, Gile, and Rosapepe Rosapepe,
Benson, Corderman, Guzzone, Hettleman, Jackson, Jennings, King,
McCray, Salling, and Zucker Zucker, Brooks, Carozza, Kagan, Lewis Young,
Watson, and Simonaire
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation and Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 11, 2023
CHAPTER ______
AN ACT concerning 1
Public Safety – State Disaster Recovery Fund 2
FOR the purpose of establishing the State Disaster Recovery Fund to provide disaster 3
related assistance under certain circumstances; requiring the Maryland Department 4
of Emergency Management to administer the State Disaster Recovery Fund; 5
authorizing a portion of the State Disaster Recovery Fund to be transferred by the 6
Governor to the Federal Government Shutdown Employee Assistance Loan Fund in 7
the event of a government shutdown; repealing the Catastrophic Event Account; 8
requiring the Governor to transfer the balance of the Catastrophic Event Account to 9
the State Disaster Recovery Fund; and generally relating to the State Disaster 10
Recovery Fund. 11
BY adding to 12
Article – Public Safety 13
Section 14–110.5 14
Annotated Code of Maryland 15
(2022 Replacement Volume) 16
BY repealing 17
Article – State Finance and Procurement 18
Section 7–324 19
Annotated Code of Maryland 20 2 SENATE BILL 650
(2021 Replacement Volume and 2022 Supplement) 1
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3
Article – Public Safety 4
14–110.5. 5
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6
INDICATED. 7
(2) “FUND” MEANS THE STATE DISASTER RECOVERY FUND. 8
(3) “LOCAL DISASTER DECLARATION” MEANS A FORMAL REQUE ST 9
FOR STATE DISASTER RELIEF AND RECOVERY ASSISTANCE MADE AS A RESULT OF 10
AN EMERGENCY BY THE SENIOR ELECTED OFFIC IAL THROUGH THE LOCA L 11
ORGANIZATION FOR EME RGENCY MANAGEMENT . 12
(B) THERE IS A STATE DISASTER RECOVERY FUND. 13
(C) THE PURPOSE OF THE FUND IS TO PROVIDE : 14
(1) DISASTER RECOV ERY ASSISTANCE TO IN DIVIDUALS AND FAMILI ES 15
WHEN A UNIT OF LOCAL GOVERNMENT HAS SUBMI TTED A REQUEST FOR A DISASTER 16
DECLARATION BUT A FE DERAL DISASTER DECLA RATION IS NOT RECEIV ED; 17
(2) DISASTER RECOVERY AS SISTANCE TO UNITS OF LOCAL 18
GOVERNMENT OF THE STATE FOR THE REPAIR , RESTORATION , RECONSTRUCTION , 19
OR REPLACEMENT OF A PUBLIC FACILITY DAMA GED OR DESTROYED WHE N A 20
FEDERAL DISASTER DEC LARATION IS NOT RECE IVED; 21
(3) LOW–INTEREST OR NO –INTEREST LOANS TO BU SINESSES AND 22
NONPROFITS FOR DISAS TER RECOVERY ASSISTA NCE WHEN A FEDERAL D ISASTER 23
DECLARATION IS NOT R ECEIVED; 24
(4) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF 25
INDIVIDUALS AND FAMI LIES FOLLOWING A FED ERAL DISASTER DECLAR ATION; 26
(5) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF 27
INDIVIDUALS AND FAMI LIES WHO HAVE BEEN DEN IED FEDERAL ASSISTAN CE BUT 28
OTHERWISE MEET CRITE RIA ESTABLISHED FOR THE FUND; AND 29
(6) MATCHING FUNDS FOR A SSISTANCE TO INDIVID UALS AND STATE 30
AND LOCAL GOVERNMENT AL UNITS AFTER A FED ERAL DISASTER DECLAR ATION. 31 SENATE BILL 650 3
(D) THE FUND: 1
(1) IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO § 2
7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 3
(2) SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF 4
PROVIDING DISASTER R ECOVERY ASSISTANCE I N ACCORDANCE WITH TH E 5
PROVISIONS OF THIS S ECTION; 6
(3) EXCEPT AS PROVIDED I N SUBSECTION (E) OF THIS SECTION, MAY 7
BE USED ONLY IF: 8
(I) THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY; 9
OR 10
(II) A LOCAL ORGANIZATION FOR EMERGENCY MANAGE MENT 11
REQUESTS ASSISTANCE FROM THE FUND; 12
(4) IS NOT INTENDE D TO DUPLICATE OR RE PLACE FEDERAL 13
DISASTER ASSISTANCE ; AND 14
(5) MAY NOT BE USED FOR ANY OTHER PURPOSE OT HER THAN THOSE 15
DESCRIBED IN THIS SE CTION. 16
(E) A PORTION OF THE FUND MAY BE USED TO A DMINISTER THE FUND, 17
INCLUDING PROVIDING DISASTER CASE MANAGEMENT RESOURCES . 18
(F) (1) BEGINNING IN FISCAL Y EAR 2025, THE THE GOVERNOR SHALL 19
MAY INCLUDE IN THE ANNUAL BUDGET BILL A SUFFICIENT AN APPROPRIATION TO 20
BRING THE MINIMUM BALANCE OF THE FUND TO AT LEAST $20,000,000 AT THE 21
START OF EACH FISCAL YEAR, WITH FUNDS CONSISTIN G. 22
(2) THE FUND SHALL CONSIST OF: 23
(1) (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 24
FUND; 25
(2) (II) REPAYMENTS OF PRINCI PAL AND INTEREST FRO M LOANS 26
MADE FROM THE FUND; 27
(3) (III) REIMBURSEMENTS FROM THE FEDERAL GOVERNMENT OR 28
OTHER LEGAL ENTITIES FOR DISASTER RECOVER Y ASSISTANCE EXPENDI TURES 29
MADE FROM THE FUND; AND 30 4 SENATE BILL 650
(4) (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 1
FOR THE BENEFIT OF T HE FUND. 2
(G) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 3
THE SAME MANNER THAT OTHER STATE MONEY MAY BE IN VESTED. 4
(H) ANY FUNDS EXPENDED FR OM THE FUND ARE SUPPLEMENTAL TO AND 5
ARE NOT INTENDED TO TAKE THE PLACE OF FU NDING THAT OTHERWISE WOULD BE 6
APPROPRIATED TO ELIG IBLE RECIPIENTS FROM THE FUND FOR ANY OTHER 7
PURPOSE. 8
(I) THE DEPARTMENT SHALL : 9
(1) ADMINISTER THE FUND; 10
(2) ESTABLISH ELIGIBILIT Y CRITERIA, POLICIES, AND PROCEDURES 11
FOR THE ADMINISTRATI ON OF THE FUND, WHILE CONSIDERING EX ISTING STATE 12
DISASTER RECOVERY PR OGRAMS AND FEDERAL D ISASTER RELIEF AN D RECOVERY 13
REQUIREMENTS ; AND 14
(3) CONSULT WITH APPROPR IATE STATE AGENCIES AND LO CAL 15
ORGANIZATIONS FOR EM ERGENCY MANAGEMENT I N THE DEVELOPMENT OF 16
ELIGIBILITY CRITERIA , POLICIES, AND PROCEDURES FOR A DMINISTRATION OF THE 17
FUND. 18
(J) THE DEPARTMENT MAY ESTAB LISH: 19
(1) REGULATIONS RELATED TO THE ADMINISTRATIO N OF THE FUND; 20
(2) ACCOUNTS AND SUB –ACCOUNTS WITHIN THE FUND TO 21
EFFECTUATE THE PURPO SES OF THIS SECTION ; AND 22
(3) FORMAL ADVISORY BODI ES TO ADVISE ON THE ADMINISTRATION 23
OF THE FUND. 24
(K) (1) ON OR BEFORE DECEMBER 31, 2023, AND ON OR BEFORE EAC H 25
DECEMBER 31 THEREAFTER , THE SECRETARY SHALL REPOR T TO THE GOVERNOR 26
AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE 27
GENERAL ASSEMBLY ON THE USE O F THE FUND FOR THE PREVIOUS FISCAL YEAR. 28
(2) THE REPORT SHALL INCL UDE: 29
SENATE BILL 650 5
(I) THE NUMBER OF STATE OF EMERGENCY DECLARATION S BY 1
THE GOVERNOR; 2
(II) THE NUMBER OF LOCAL STATE OF EMERGENCY 3
DECLARATIONS AND LOC AL DISASTER DECLARAT IONS SUBMITTED TO TH E 4
SECRETARY AND THE REA SON FOR EACH DECLARATION ; 5
(III) A SUMMARY OF THE DAM AGE ASSESSMENT DATA RELATED 6
TO EACH DECLARATION , AND THE DISPOSITION OF EACH REQUEST FOR THE 7
PREVIOUS FISCAL YEAR ; 8
(IV) THE AMOUNT OF FUNDIN G DISTRIBUTED TO EAC H ELIGIBLE 9
ENTITY BY THE FUND FOR THE PREVIOUS FISCAL YEAR; 10
(V) THE FUND BALANCE AT THE E ND OF THE PREVIOUS F ISCAL 11
YEAR; 12
(VI) ANY FEDERAL DISASTER DECLARATIONS REQUEST ED AND 13
ASSOCIATED DAMAGE AS SESSMENT DATA FOR TH E PREVIOUS FISCAL YE AR; 14
(VII) A SUMMARY OF ANY FED ERAL DISASTER ASSIST ANCE 15
RECEIVED DURING THE PREVIOUS FISCAL YEAR ; 16
(VIII) A SUMMARY OF ANY REG ULATIONS ISSUED RELA TED TO THE 17
FUND DURING THE PREVI OUS FISCAL YEAR ; AND 18
(IX) ANY RECOMMENDED CHAN GES TO THIS SECTION TO 19
INCREASE THE EFFICIE NCY AND EFFICACY OF THE FUND. 20
(L) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AFTER A 21
15–DAY REVIEW AND COMME NT PERIOD BY THE LEGISLATIVE POLICY COMMITTEE, 22
THE GOVERNOR MAY TRANSFER FUNDS BY BUDGET AMEN DMENT FROM THE FUND 23
TO THE EXPENDITURE A CCOUNTS OF THE APPRO PRIATE UNIT OF STATE 24
GOVERNMENT . 25
(2) IF THE FEDERAL GOVERN MENT IS IN A FULL OR PARTIAL 26
SHUTDOWN DUE TO A LA PSE IN APPROPRIATION S, AFTER A 2–DAY REVIEW AND 27
COMMENT PERIOD BY TH E LEGISLATIVE POLICY COMMITTEE, THE GOVERNOR MAY 28
TRANSFER FUNDS BY BU DGET AMENDMENT FROM THE FUND TO THE FEDERAL 29
GOVERNMENT SHUTDOWN EMPLOYEE ASSISTANCE LOAN FUND ESTABLISHED 30
UNDER § 7–327 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 31
Article – State Finance and Procurement 32
6 SENATE BILL 650
[7–324. 1
(a) In this section, “Account” means the Catastrophic Event Account. 2
(b) Subject to the provisions of this section, the Account is established to enable 3
the State to respond without undue delay to a natural disaster or other catastrophic 4
situation, or federal civilian employee financial hardship from a full or partial federal 5
government shutdown due to a lapse in federal appropriations that cannot be taken care of 6
within the resources of existing appropriations. 7
(c) The Governor may provide an appropriation in the budget bill to the Account. 8
(d) (1) Subject to paragraph (2) of this subsection, after a 15–day review and 9
comment period by the Legislative Policy Committee, the Governor may transfer funds by 10
budget amendment from the Account to the expenditure accounts of the appropriate unit 11
of State government. 12
(2) If the federal government is in a full or partial shutdown due to a lapse 13
in appropriations, after a 2–day review and comment period by the Legislative Policy 14
Committee, the Governor may transfer funds by budget amendment from the Account to 15
the Federal Government Shutdown Employee Assistance Loan Fund established under § 16
7–327 of this subtitle. 17
(e) Funds appropriated to the Catastrophic Event Account: 18
(1) may not be used to offset operating deficiencies in regular programs of 19
State government; but 20
(2) may be expended to assist a unit of State government in funding costs 21
in connection with a natural disaster, a catastrophic situation, or a full or partial federal 22
government shutdown due to a lapse in appropriations. 23
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 24
7–302 of this subtitle. 25
(2) The Treasurer shall separately hold, and the Comptroller shall account 26
for, the Account. 27
(3) The Account shall be invested and reinvested in the same manner as 28
other State funds. 29
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. 30
(g) Money appropriated to the Account does not revert to the Revenue 31
Stabilization Account.] 32
SENATE BILL 650 7
SECTION 2. AND BE IT FURTHER ENACTED, That the balance of the 1
Catastrophic Event Account shall be transferred by the Governor to the State Disaster 2
Recovery Fund established under § 14–110.5 of the Public Safety Article, as enacted by 3
Section 1 of this Act. 4
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
July 1, 2023. 6
Approved:
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Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.