EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1424*
HOUSE BILL 1424
P1 5lr1865
CF SB 683
By: Delegates J. Lewis, Feldmark, Allen, Amprey, Behler, Boafo, Cardin,
Charkoudian, Clippinger, Fair, Foley, Guzzone, Harrison, Healey, Holmes,
Ivey, D. Jones, Kaufman, Korman, R. Lewis, Mireku–North, Moon,
Palakovich Carr, Pasteur, Pruski, Roberts, Simmons, Solomon, Spiegel,
Stein, Stewart, Terrasa, Toles, Valderrama, Vogel, Wells, White Holland,
Williams, Wolek, and Ziegler
Introduced and read first time: February 7, 2025
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Catastrophic Event Account and Federal Government Shutdown Employee 2
Assistance Loan Fund – Alterations 3
(Protect Our Federal Workers Act) 4
FOR the purpose of renaming the Federal Government Shutdown Employee Assistance 5
Loan Fund to be the Federal Government Employee Assistance Loan Fund; 6
authorizing funds appropriated to the Catastrophic Event Account to be expended to 7
assist in funding costs in connection with a closure, relocation, or mass layoff of a 8
unit of the federal government, or other similar circumstances; altering the purpose 9
of the Fund and the eligibility criteria to receive loans from the Fund; and generally 10
relating to the Catastrophic Event Account and the Federal Government Employee 11
Assistance Loan Fund. 12
BY repealing and reenacting, without amendments, 13
Article – State Finance and Procurement 14
Section 6–226(a)(1) and (2)(i) 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – State Finance and Procurement 19
Section 6–226(a)(2)(ii)118., 7–324, and 7–327 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2024 Supplement) 22
2 HOUSE BILL 1424
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – State Finance and Procurement 3
6–226. 4
(a) (1) Except as otherwise specifically provided by law or by regulation of the 5
Treasurer, the Treasurer shall credit to the General Fund any interest on or other income 6
from State money that the Treasurer invests. 7
(2) (i) 1. This subparagraph does not apply in fiscal years 2024 8
through 2028. 9
2. Notwithstanding any other provision of law, and unless 10
inconsistent with a federal law, grant agreement, or other federal requirement or with the 11
terms of a gift or settlement agreement, net interest on all State money allocated by the 12
State Treasurer under this section to special funds or accounts, and otherwise entitled to 13
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 14
Fund of the State. 15
(ii) The provisions of subparagraph (i) of this paragraph do not apply 16
to the following funds: 17
118. the Federal Government [Shutdown] Employee 18
Assistance Loan Fund; 19
7–324. 20
(a) In this section, “Account” means the Catastrophic Event Account. 21
(b) Subject to the provisions of this section, the Account is established to enable 22
the State or a local government to respond without undue delay to: 23
(1) a natural disaster or other catastrophic situation[, or]; 24
(2) federal employee financial hardship from a full or partial federal 25
government shutdown due to a lapse in federal appropriations that cannot be taken care of 26
within the resources of existing appropriations; OR 27
(3) FORMER FEDERAL EMPLO YEE FINANCIAL HARDSH IP FROM THE 28
CLOSURE, RELOCATION , OR MASS LAYOFF OF A UNI T OF THE FEDERAL 29
GOVERNMENT , OR OTHER SIMILAR CIR CUMSTANCES . 30
(c) The Governor may provide an appropriation in the budget bill to the Account. 31
HOUSE BILL 1424 3
(d) (1) Subject to paragraph (2) of this subsection, after a 15–day review and 1
comment period by the Legislative Policy Committee, the Governor may transfer funds by 2
budget amendment from the Account to the expenditure accounts of the appropriate unit 3
of State government or unit of local government. 4
(2) If the federal government is in a full or partial shutdown due to a lapse 5
in appropriations, after a 2–day review and comment period by the Legislative Policy 6
Committee, the Governor may transfer funds by budget amendment from the Account to 7
the Federal Government [Shutdown] Employee Assistance Loan Fund established under § 8
7–327 of this subtitle. 9
(e) Funds appropriated to the Catastrophic Event Account: 10
(1) may not be used to offset operating deficiencies in regular programs of 11
State government; but 12
(2) may be expended to assist a unit of State government or unit of local 13
government in funding costs in connection with: 14
(I) a natural disaster[,]; 15
(II) a catastrophic situation[, or]; 16
(III) a full or partial federal government shutdown due to a lapse in 17
appropriations; OR 18
(IV) A CLOSURE, RELOCATION , OR MASS LAYOFF OF A UNIT OF 19
THE FEDERAL GOVERNME NT. 20
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 21
7–302 of this subtitle. 22
(2) The Treasurer shall separately hold, and the Comptroller shall account 23
for, the Account. 24
(3) The Account shall be invested and reinvested in the same manner as 25
other State funds. 26
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. 27
(g) Money appropriated to the Account does not revert to the Revenue 28
Stabilization Account. 29
7–327. 30
4 HOUSE BILL 1424
(a) In this section, “Fund” means the Federal Government [Shutdown] Employee 1
Assistance Loan Fund. 2
(b) There is a Federal Government [Shutdown] Employee Assistance Loan Fund. 3
(c) The purpose of the Fund is to provide loans to [employees of the federal 4
government] STATE RESIDENTS who [are]: 5
(1) [required to report to work at a work site located in the State; and 6
(2)] ARE EMPLOYEES OF THE FEDERAL GOVERNMENT WHO ARE not 7
being paid because of a full or partial federal government shutdown due to a lapse in 8
appropriations; OR 9
(2) IN THE IMMEDIATE LY PRECEDING 6 MONTHS WERE TERMINATED 10
FROM EMPLOYMENT BY THE FEDERAL GOVERNME NT DUE TO THE CLOSUR E, 11
RELOCATION , OR MASS LAYOFF OF A UNI T OF THE FEDERAL GOV ERNMENT, OR 12
OTHER SIMILAR CIRCUM STANCES BEYOND THE E MPLOYEES’ CONTROL. 13
(d) The Maryland Department of Labor shall administer the Fund. 14
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 15
this subtitle that shall be available in perpetuity for the purpose of providing loans in 16
accordance with the provisions of this section. 17
(2) The State Treasurer shall hold the Fund separately, and the 18
Comptroller shall account for the Fund. 19
(f) The Fund consists of: 20
(1) money appropriated in the State budget to the Fund; 21
(2) any interest earnings of the Fund; 22
(3) money transferred from the Catastrophic Event Account in accordance 23
with § 7–324 of this subtitle; 24
(4) repayments on loans made from the Fund; and 25
(5) any other money from any other source accepted for the benefit of the 26
Fund. 27
(g) The Fund shall be used only to provide no–interest loans to [employees of the 28
federal government] STATE RESIDENTS who [are]: 29
(1) [required to report to work at a work site located in the State; and 30 HOUSE BILL 1424 5
(2)] ARE EMPLOYEE S OF THE FEDERAL GOVER NMENT WHO ARE not 1
being paid because of a full or partial federal government shutdown due to a lapse in 2
appropriations; OR 3
(2) IN THE IMMEDIATELY PRECEDIN G 6 MONTHS WERE TERMINATED 4
FROM EMPLOYMENT BY T HE FEDERAL GOVERNMEN T DUE TO THE CLOSURE , 5
RELOCATION , OR MASS LAYOFF OF A UNI T OF THE FEDERAL GOVERNMENT , OR 6
OTHER SIMILAR CIRCUM STANCES BEYOND THE E MPLOYEES’ CONTROL. 7
(h) (1) The State Treasurer shall invest the money of the Fund in the same 8
manner as other State money may be invested. 9
(2) Any interest earnings of the Fund shall be credited to the Fund. 10
(i) (1) Subject to paragraph (2) of this subsection, the Maryland Department 11
of Labor shall establish procedures and eligibility criteria for loans from the Fund. 12
(2) The eligibility criteria shall include that: 13
(i) 1. the federal government is in a full or partial shutdown due 14
to a lapse in appropriations; OR 15
2. A UNIT OF THE FEDERA L GOVERNMENT HAS BEE N 16
CLOSED, BEEN RELOCATED , EXPERIENCED MASS LAYOFFS, OR EXPERIENCED 17
OTHER SIMILAR CIRCUMSTAN CES; and 18
(ii) an individual applying for a loan from the Fund is: 19
1. A RESIDENT OF THE STATE; AND 20
2. A. an employee of the federal government WHO IS NOT 21
BEING PAID BECAUSE O F THE FULL OR PARTIA L FEDERAL GOVERNMENT SHUTDOWN 22
DUE TO THE LAPSE IN APPROPRIATIONS ; OR 23
[2. required to report to work at a work site located in the 24
State; and 25
3. not being paid because of the full or partial federal 26
government shutdown due to the lapse in appropriations] 27
B. A FORMER EMPLOYEE OF THE FEDERAL 28
GOVERNMENT WHO, WITHIN THE 6 MONTHS IMMEDIATELY P RECEDING THE DATE OF 29
THE LOAN APPLICATION , WAS TERMINATED FROM EMPLOYMENT BY THE FE DERAL 30
GOVERNMENT DUE TO TH E CLOSURE, RELOCATION , OR MASS LAYOFF OF A UNIT OF 31 6 HOUSE BILL 1424
THE FEDERAL GOVERNME NT, OR OTHER SIMILAR CIR CUMSTANCES BE YOND THE 1
INDIVIDUAL’S CONTROL. 2
(3) The procedures shall include: 3
(i) application procedures; 4
(ii) payment procedures from the Fund; and 5
(iii) repayment procedures, including timelines, for an individual to 6
repay a loan from the Fund. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2025. 9