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.
Italics indicate opposite chamber/conference committee amendments.
*sb0650*
SENATE BILL 650
E4 (3lr1705)
ENROLLED BILL
— Budget and Taxation and Education, Energy, and the Environment/Appropriations
—
Introduced 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
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ____ ____________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Public Safety – State Disaster Recovery Fund 2
FOR the purpose of establishing the State Disaster Recovery Fund as a special, nonlapsing 3
fund to provide disaster related assistance under certain circumstances; requiring 4
interest earnings of the Fund to be credited to the Fund; requiring the Maryland 5
Department of Emergency Management to administer the State Disaster Recovery 6
Fund; authorizing a portion of the State Disaster Recovery Fund to be transferred 7
by the Governor to the Federal Government Shutdown Employee Assistance Loan 8
Fund in the event of a government shutdown; repealing the Catastrophic Event 9
Account; requiring the Governor to transfer the balance of the Catastrophic Event 10
Account to the State Disaster Recovery Fund making alterations to the Catastrophic 11 2 SENATE BILL 650
Event Account authorized uses to allow funds to be used by a unit of local government; 1
and generally relating to the State Disaster Recovery Fund and Catastrophic Event 2
Account. 3
BY adding to 4
Article – Public Safety 5
Section 14–110.5 6
Annotated Code of Maryland 7
(2022 Replacement Volume) 8
BY repealing 9
Article – State Finance and Procurement 10
Section 7–324 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2022 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – State Finance and Procurement 15
Section 6–226(a)(2)(i) 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2022 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – State Finance and Procurement 20
Section 6–226(a)(2)(ii)170. and 171. and 7–324 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2022 Supplement) 23
BY adding to 24
Article – State Finance and Procurement 25
Section 6–226(a)(2)(ii)172. 26
Annotated Code of Maryland 27
(2021 Replacement Volume and 2022 Supplement) 28
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 29
That the Laws of Maryland read as follows: 30
Article – Public Safety 31
14–110.5. 32
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 33
INDICATED. 34
(2) “FUND” MEANS THE STATE DISASTER RECOVERY FUND. 35
SENATE BILL 650 3
(3) “LOCAL DISASTER DECLARATION” MEANS A FORMAL REQUE ST 1
FOR STATE DISASTER RELIEF AND RECOVERY ASSISTANCE MADE AS A RESULT OF 2
AN EMERGENCY BY THE SENIOR ELECTED OFFIC IAL THROUGH THE LOCA L 3
ORGANIZATION FOR EME RGENCY MANAGEMENT . 4
(B) THERE IS A STATE DISASTER RECOVERY FUND. 5
(C) THE PURPOSE OF THE FUND IS TO PROVIDE : 6
(1) DISASTER RECOVERY AS SISTANCE TO INDIVIDUALS AND FAMILIES 7
WHEN A UNIT OF LOCAL GOVERNMENT HAS SUBMI TTED A REQUEST FOR A DISASTER 8
DECLARATION BUT A FE DERAL DISASTER DECLA RATION IS NOT RECEIV ED; 9
(2) DISASTER RECOVERY AS SISTANCE TO UNITS OF LOCAL 10
GOVERNMENT OF THE STATE FOR THE REPAIR, RESTORATION , RECONSTRUCTION , 11
OR REPLACEMENT OF A PUBLIC FACILITY DAMA GED OR DESTROYED WHE N A 12
FEDERAL DISASTER DEC LARATION IS NOT RECE IVED; 13
(3) LOW–INTEREST OR NO –INTEREST LOANS TO BU SINESSES AND 14
NONPROFITS FOR DISAS TER RECOVERY ASSISTA NCE WHEN A FEDERAL DISASTER 15
DECLARATION IS NOT R ECEIVED; 16
(4) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF 17
INDIVIDUALS AND FAMI LIES FOLLOWING A FED ERAL DISASTER DECLAR ATION; 18
(5) DISASTER–RELATED ASSISTANCE F OR UNMET NEEDS OF 19
INDIVIDUALS AND FAMI LIES WHO HA VE BEEN DENIED FEDER AL ASSISTANCE BUT 20
OTHERWISE MEET CRITE RIA ESTABLISHED FOR THE FUND; AND 21
(6) MATCHING FUNDS FOR A SSISTANCE TO INDIVID UALS AND STATE 22
AND LOCAL GOVERNMENT AL UNITS AFTER A FED ERAL DISASTER DECLAR ATION. 23
(D) THE FUND: 24
(1) IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO § 25
7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 26
(2) SHALL BE AVAILABLE I N PERPETUITY FOR THE PURPOSE OF 27
PROVIDING DISASTER R ECOVERY ASSISTANCE I N ACCORDANCE WITH TH E 28
PROVISIONS OF THIS S ECTION; 29
(3) EXCEPT AS PROVIDED IN S UBSECTION (E) OF THIS SECTION, MAY 30
BE USED ONLY IF: 31
4 SENATE BILL 650
(I) THE GOVERNOR HAS DECLARED A STATE OF EMERGENCY; 1
OR 2
(II) A LOCAL ORGANIZATION FOR EMERGENCY MANAGE MENT 3
REQUESTS ASSISTANCE FROM THE FUND; 4
(4) IS NOT INTENDED TO DUPLICATE OR REPLACE FEDERAL 5
DISASTER ASSISTANCE ; AND 6
(5) MAY NOT BE USED FOR ANY OTHER PURPOSE OT HER THAN THOSE 7
DESCRIBED IN THIS SE CTION. 8
(E) A PORTION OF THE FUND MAY BE USED TO A DMINISTER THE FUND, 9
INCLUDING PROVIDING DISASTER CASE MANAGE MENT RESOURCES. 10
(F) (1) BEGINNING IN FISCAL Y EAR 2025, THE THE GOVERNOR SHALL 11
MAY INCLUDE IN THE ANNUAL BUDGET BILL A SUFFICIENT AN APPROPRIATION TO 12
BRING THE MINIMUM BALANCE OF THE FUND TO AT LEAST $20,000,000 AT THE 13
START OF EACH FISCAL YEAR, WITH FUNDS CONSIS TING. 14
(2) THE FUND SHALL CONSIST OF: 15
(1) (I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 16
FUND; 17
(2) (II) REPAYMENTS OF PRINCI PAL AND INTEREST FRO M LOANS 18
MADE FROM THE FUND; 19
(3) (III) REIMBURSEMENTS FROM THE FEDERAL GOVERNME NT OR 20
OTHER LEGAL ENTITIES FOR DISASTER RECOVER Y ASSISTANCE EXPENDI TURES 21
MADE FROM THE FUND; AND 22
(4) (IV) INTEREST EARNINGS OF THE FUND; AND 23
(V) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 24
FOR THE BENEFIT OF T HE FUND. 25
(G) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 26
THE SAME MANNER THAT OTHER STATE MONEY MAY BE IN VESTED. 27
(G) (1) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 28
FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 29
SENATE BILL 650 5
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 1
CREDITED TO THE FUND. 2
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 3
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 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 AND R ECOVERY 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 ESTABL ISH: 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
(I) THE NUMBER OF STATE OF EMERGENCY DECLARATION S BY 30
THE GOVERNOR; 31 6 SENATE BILL 650
(II) THE NUMBER OF LOCAL STATE OF EMERGENCY 1
DECLARATIONS AND LOC AL DISASTER DECLARAT IONS SUBMITTED TO TH E 2
SECRETARY AND THE REA SON FOR EACH DECLARA TION; 3
(III) A SUMMARY OF THE DAM AGE ASSESSMENT DATA RELAT ED 4
TO EACH DECLARATION , AND THE DISPOSITION OF EACH REQUEST FOR THE 5
PREVIOUS FISCAL YEAR ; 6
(IV) THE AMOUNT OF FUNDIN G DISTRIBUTED TO EAC H ELIGIBLE 7
ENTITY BY THE FUND FOR THE PREVIOUS FISCAL YEAR; 8
(V) THE FUND BALANCE AT THE E ND OF THE PREVIOUS FISC AL 9
YEAR; 10
(VI) ANY FEDERAL DISASTER DECLARATIONS REQUEST ED AND 11
ASSOCIATED DAMAGE AS SESSMENT DATA FOR TH E PREVIOUS FISCAL YE AR; 12
(VII) A SUMMARY OF ANY FED ERAL DISASTER ASSIST ANCE 13
RECEIVED DURING THE PREVIOUS FISCAL YEAR ; 14
(VIII) A SUMMARY OF ANY REG ULATIONS ISSUED RELA TED TO THE 15
FUND DURING THE PREVI OUS FISCAL YEAR ; AND 16
(IX) ANY RECOMMENDED CHAN GES TO THIS SECTION TO 17
INCREASE THE EFFICIE NCY AND EFFICACY OF THE FUND. 18
(L) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AFTER A 19
15–DAY REVIEW AND COMME NT PERIOD BY THE LEGISLATIVE POLICY COMMITTEE, 20
THE GOVERNOR MAY TRANSFER FUNDS BY BUDGET AMEN DMENT FROM THE FUND 21
TO THE EXPENDITURE A CCOUNTS OF THE APPRO PRIATE UNIT OF STATE 22
GOVERNMENT. 23
(2) IF THE FEDERAL GOVERN MENT IS IN A FULL OR PARTIAL 24
SHUTDOWN DUE TO A LA PSE IN APPROPRIATION S, AFTER A 2–DAY REVIEW AND 25
COMMENT PERIOD BY TH E LEGISLATIVE POLICY COMMITTEE, THE GOVERNOR MAY 26
TRANSFER FUNDS BY BU DGET AMENDMENT FROM THE FUND TO THE FEDERAL 27
GOVERNMENT SHUTDOWN EMPLOYEE ASSISTANCE LOAN FUND ESTABLISHED 28
UNDER § 7–327 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 29
Article – State Finance and Procurement 30
6–226. 31
SENATE BILL 650 7
(a) (2) (i) Notwithstanding any other provision of law, and unless 1
inconsistent with a federal law, grant agreement, or other federal requirement or with the 2
terms of a gift or settlement agreement, net interest on all State money allocated by the State 3
Treasurer under this section to special funds or accounts, and otherwise entitled to receive 4
interest earnings, as accounted for by the Comptroller, shall accrue to the General Fund of 5
the State. 6
(ii) The provisions of subparagraph (i) of this paragraph do not apply 7
to the following funds: 8
170. the Cannabis Public Health Fund; [and] 9
171. the Community Reinvestment and Repair Fund; AND 10
172. THE STATE DISASTER RECOVERY FUND. 11
[7–324. 12
(a) In this section, “Account” means the Catastrophic Event Account. 13
(b) Subject to the provisions of this section, the Account is established to enable 14
the State OR A LOCAL GOVERNMEN T to respond without undue delay to a natural disaster 15
or other catastrophic situation, or federal civilian employee financial hardship from a full 16
or partial federal government shutdown due to a lapse in federal appropriations that cannot 17
be taken care of within the resources of existing appropriations. 18
(c) The Governor may provide an appropriation in the budget bill to the Account. 19
(d) (1) Subject to paragraph (2) of this subsection, after a 15–day review and 20
comment period by the Legislative Policy Committee, the Governor may transfer funds by 21
budget amendment from the Account to the expenditure accounts of the appropriate unit 22
of State government OR UNIT OF LOCAL GOV ERNMENT. 23
(2) If the federal government is in a full or partial shutdown due to a lapse 24
in appropriations, after a 2–day review and comment period by the Legislative Policy 25
Committee, the Governor may transfer funds by budget amendment from the Account to 26
the Federal Government Shutdown Employee Assistance Loan Fund established under § 27
7–327 of this subtitle. 28
(e) Funds appropriated to the Catastrophic Event Account: 29
(1) may not be used to offset operating deficiencies in regular programs of 30
State government; but 31
(2) may be expended to assist a unit of State government OR UNIT OF 32
LOCAL GOVERNMENT in funding costs in connection with a natural disaster, a 33 8 SENATE BILL 650
catastrophic situation, or a full or partial federal government shutdown due to a lapse in 1
appropriations. 2
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 3
7–302 of this subtitle. 4
(2) The Treasurer shall separately hold, and the Comptroller shall account 5
for, the Account. 6
(3) The Account shall be invested and reinvested in the same manner as 7
other State funds. 8
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. 9
(g) Money appropriated to the Account does not revert to the Revenue 10
Stabilization Account.] 11
SECTION 2. AND BE IT FURTHER ENACTED, That the bala nce of the 12
Catastrophic Event Account shall be transferred by the Governor to the State Disaster 13
Recovery Fund established under § 14–110.5 of the Public Safety Article, as enacted by 14
Section 1 of this Act. 15
SECTION 2. 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
July 1, 2023. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.