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. *hb0449* HOUSE BILL 449 M3 4lr1387 HB 892/23 – ENT & APP CF SB 148 By: Delegates Ivey, Acevero, Fennell, Kaufman, McCaskill, Pasteur, Ruth, and Turner Introduced and read first time: January 22, 2024 Assigned to: Environment and Transportation and Appropriations Committee Report: Favorable with amendments House action: Adopted Read second time: March 25, 2024 CHAPTER ______ AN ACT concerning 1 Comprehensive Flood Management Grant Program – Funding for Underserved 2 and Overburdened Communities 3 FOR the purpose of requiring a certain percentage of funding provided under the 4 comprehensive flood management grant program to be used for projects located in or 5 directly benefiting underserved or overburdened communities in certain fiscal years; 6 requiring authorizing the Governor to include in the annual State budget an 7 appropriation for the comprehensive flood management grant program of at least up 8 to a certain amount in certain fiscal years; and generally relating to the 9 comprehensive flood management grant program. 10 BY repealing and reenacting, with amendments, 11 Article – Environment 12 Section 5–803(h) 13 Annotated Code of Maryland 14 (2013 Replacement Volume and 2023 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Environment 18 5–803. 19 2 HOUSE BILL 449 (h) (1) There is a comprehensive flood management grant program within the 1 Department. 2 (2) (i) Subject to the approval of the Board of Public Works, the 3 Department may use proceeds from the State debt created to fund the comprehensive flood 4 management grant program to pay the entire cost of watershed studies pursuant to 5 subsection (b) of this section. 6 (ii) The Department may provide grants to subdivisions to pay the 7 entire cost of watershed studies when the Department delegates that responsibility 8 pursuant to subsection (b) of this section. 9 (3) (i) Subject to the approval of the Board of Public Works, the 10 Department may provide grants to subdivisions for flood control and watershed 11 management capital projects, and for the capital costs related to design, purchase, and 12 installation of automated flood warning projects, provided that the projects are consistent 13 with the plans and implementation prepared and adopted in accordance with this subtitle, 14 and provided further that each project: 15 1. Is undertaken as part of a comprehensive flood 16 management plan prepared and adopted by the subdivision; and 17 2. Is not inconsistent with any State or interjurisdictional 18 flood management plan. 19 (ii) Grants for automated flood warnings projects shall be 20 conditioned to require all affected local governing bodies to: 21 1. Adopt a specific and compatible response plan which has 22 been coordinated with local emergency management authorities and reviewed and 23 approved by the Department and the Maryland Department of Emergency Management; 24 and 25 2. Provide for financial and other commitments to properly 26 operate and maintain the project. 27 (iii) 1. The amount of any grant made by the Department for a 28 flood control and watershed management capital project that involves only nonfederal 29 funds and meets the criteria of this subtitle shall be matched by a minimum amount of 25% 30 of project costs in local government or private funds. 31 2. For a flood control and watershed management capital 32 project that involves federal funding and meets the criteria of this subtitle: 33 A. The Department may provide up to 50% of the nonfederal 34 share of the project funding; and 35 HOUSE BILL 449 3 B. Local government or private funds shall provide not less 1 than 50% of the nonfederal share of the project funding. 2 (iv) Each project application for a grant under this paragraph shall 3 be submitted to and reviewed by the State clearinghouse of the Department of Planning in 4 accordance with established clearinghouse procedures. 5 (4) (i) Subject to the approval of the Board of Public Works, the 6 Department may provide grants to subdivisions immediately after a flood for acquisition of 7 any flood damaged owner–occupied dwelling. 8 (ii) Total expenditures for grants made under this paragraph may 9 not exceed 50% of the total authorized budgeted funds in a fiscal year for grants under this 10 subsection. 11 (5) (i) The Department may award grants to subdivisions that have 12 incurred at least $1,000,000 in infrastructure damage caused by a flood event that occurred 13 on or after January 1, 2009. 14 (ii) The total amount of grants awarded by the Departmen t to 15 subdivisions under this paragraph may: 16 1. For fiscal years 2020, 2021, and 2022, equal up to 100% of 17 the total amount of money appropriated to the comprehensive flood management program; 18 and 19 2. For fiscal year 2023 and each fiscal year thereafter, equal 20 up to 50% of the total amount of money appropriated to the comprehensive flood 21 management program. 22 (iii) A grant awarded to a subdivision under this paragraph may be: 23 1. For an amount of up to 50% of the combined cost of 24 infrastructure repairs, watershed restoration, and emergency work associated with the 25 flood event; 26 2. Used for infrastructure repairs, watershed management, 27 or emergency protection work associated with the flood event; and 28 3. Used for expenses associated with item 2 of this 29 subparagraph that the subdivision has already incurred. 30 (iv) The Department shall prioritize awarding grants under this 31 paragraph to subdivisions in which: 32 1. Infrastructure damage occurred in an area designated by 33 the Maryland Historical Trust as an historic district; or 34 4 HOUSE BILL 449 2. Infrastructure damage caused by a flood event has 1 occurred more than once within the previous 5 years. 2 (6) To receive a grant, the subdivision must participate in the national 3 flood insurance program. 4 (7) Before awarding a grant under paragraphs (2), (3), or (4) of this 5 subsection, the Department, in cooperation with the Department of Planning, shall review 6 the flood control and watershed management operations of the applicant subdivision to 7 assure that the flood control and watershed management operations are in compliance with 8 this subtitle. 9 (8) (i) [The] FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 10 THEREAFTER , THE Governor shall MAY include in the annual State budget an 11 appropriation for the comprehensive flood management grant program of at least[: 12 1. For fiscal year 2021, $3,000,000; 13 2. For fiscal year 2022, $3,000,000; and 14 3. For fiscal year 2023, $2,000,000] UP TO $20,000,000. 15 (ii) IN FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 16 THEREAFTER , AT LEAST 40% OF FUNDING PROVIDED UND ER THE COMPREHENSIVE 17 FLOOD MANAGEMENT GRA NT PROGRAM SHALL BE USED FOR PROJECTS LO CATED IN 18 OR DIRECTLY BENEFITI NG UNDERSERVED OR OV ERBURDENED COMMUNITI ES, AS 19 DEFINED IN § 1–701 OF THIS ARTICLE. 20 (III) Funds not awarded from the comprehensive flood management 21 grant program by the end of a fiscal year: 22 1. Shall remain in the program; and 23 2. Are not subject to § 7–302 of the State Finance and 24 Procurement Article. 25 (9) (i) The Department, in consultation with the Department of 26 Planning, shall adopt regulations necessary for the administration of the grant program. 27 (ii) These regulations may include: 28 1. A determination of statewide and interjurisdictional needs 29 and priorities; 30 2. Standards of eligibility for applicants and projects; 31 HOUSE BILL 449 5 3. Criteria for recognition of tidal and nontidal areas; 1 4. Engineering and economic standards and alternatives; 2 and 3 5. Procedures for filing and processing contents of 4 applications. 5 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6 1, 2024. 7 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.