EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW. [Brackets] indicate matter deleted from existing law. *hb1546* HOUSE BILL 1546 P1, P3 EMERGENCY BILL 5lr3640 By: Delegates Moon, J. Lewis, Atterbeary, Barnes, Clippinger, Korman, Pena–Melnyk, and Wilson Introduced and read first time: February 25, 2025 Assigned to: Rules and Executive Nominations A BILL ENTITLED AN ACT concerning 1 Board of Public Works – Central Collection Unit – Delinquent Federal Funds 2 FOR the purpose of reserving jurisdiction with respect to certain federal land in the State 3 under certain conditions; requiring the Central Collection Unit to be responsible for 4 the collection of certain delinquent federal funds; authorizing the Central Collection 5 Unit to place liens on certain federal property in the State under certain 6 circumstances; authorizing the Board of Public Works to determine the federal 7 government to be delinquent in federal funds owed to the State under certain 8 circumstances; and generally relating to federal property in the State and delinquent 9 federal funds. 10 BY repealing and reenacting, with amendments, 11 Article – General Provisions 12 Section 6–202 13 Annotated Code of Maryland 14 (2019 Replacement Volume and 2024 Supplement) 15 BY adding to 16 Article – General Provisions 17 Section 6–204 18 Annotated Code of Maryland 19 (2019 Replacement Volume and 2024 Supplement) 20 BY repealing and reenacting, without amendments, 21 Article – State Finance and Procurement 22 Section 3–206(a), (b), and (d), 3–302(a)(1), 3–304(b), and 10–101 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2024 Supplement) 25 BY adding to 26 2 HOUSE BILL 1546 Article – State Finance and Procurement 1 Section 3–302(d) and 10–208 2 Annotated Code of Maryland 3 (2021 Replacement Volume and 2024 Supplement) 4 BY repealing and reenacting, with amendments, 5 Article – State Finance and Procurement 6 Section 3–304(a) 7 Annotated Code of Maryland 8 (2021 Replacement Volume and 2024 Supplement) 9 BY repealing and reenacting, without amendments, 10 Article – State Government 11 Section 6–106.1(a) 12 Annotated Code of Maryland 13 (2021 Replacement Volume and 2024 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – General Provisions 17 6–202. 18 Notwithstanding § 6–201(a) [or], § 6–203, OR § 6–204 of this subtitle, for the 19 purpose of enforcing the civil or criminal laws of the State, the Governor may enter into an 20 agreement with the United States to establish full or partial concurrent jurisdiction of the 21 State and the United States over any land in the State held by the United States. 22 6–204. 23 FOR DELINQUENT FEDERA L FUNDS AS DETERMINED UNDER § 10–208 OF THE 24 STATE FINANCE AND PROCUREMENT ARTICLE, THE STATE RESERVES 25 JURISDICTION WITH RE SPECT TO LAND THAT T HE UNITED STATES OR ANY UNIT OF 26 THE UNITED STATES LEASES OR OTHE RWISE HOLDS IN THE STATE WHEN THE 27 FEDERAL GOVERNMENT I S FOUND NOT IN COMPLIANCE WITH C OURT DECISIONS 28 UPHOLDING FEDERAL CO NGRESSIONALLY APPROVED SPENDING . 29 Article – State Finance and Procurement 30 3–206. 31 (a) The Attorney General is legal adviser to the Department. 32 (b) (1) With the advice of the Secretary, the Attorney General shall assign at 33 least 1 assistant Attorney General to the Central Collection Unit. 34 HOUSE BILL 1546 3 (2) At the request of the Governor, the Attorney General shall assign to the 1 Department: 2 (i) at least 1 assistant Attorney General; and 3 (ii) any other assistant Attorneys General authorized by law to be 4 assigned to the Department. 5 (d) Each assistant Attorney General who is assigned to the Central Collection 6 Unit shall devote full time to the duties with that Unit and may have no other duties. 7 3–302. 8 (a) (1) Except as otherwise provided in subsection (b) of this section, 9 paragraph (2)(ii) of this subsection, or in other law, the Central Collection Unit is 10 responsible for the collection of each delinquent account or other debt that is owed to the 11 State or any of its officials or units. 12 (D) THE CENTRAL COLLECTION UNIT SHALL BE RESPONS IBLE FOR THE 13 COLLECTION OF DELINQ UENT FEDERAL FUNDS IN ACCORDANCE WITH § 3–304 OF 14 THIS SUBTITLE , § 10–208 OF THIS ARTICLE , AND § 6–204 OF THE GENERAL 15 PROVISIONS ARTICLE. 16 3–304. 17 (a) In carrying out its responsibilities, the Central Collection Unit may: 18 (1) (i) institute, in its name, any action that is available under State 19 law for collection of a debt or claim; or 20 (ii) without suit, settle the debt or claim; 21 (2) for all debts or claims collected on or after June 1, 1992: 22 (i) in addition to the outstanding principal and interest, assess and 23 collect from the debtor a fee, which may not exceed 20% of the outstanding principal and 24 interest, sufficient to cover all collection and administrative costs; and 25 (ii) prior to crediting any amount to any agency which refers a debt 26 for any purpose, withhold a fee sufficient to cover all collection and administrative costs; 27 (3) waive or reduce any fee assessed under paragraph (2) of this subsection; 28 [and] 29 4 HOUSE BILL 1546 (4) certify a debt or claim and the debtor responsible for the debt or claim 1 to: 2 (i) the Comptroller for income tax refund interception in accordance 3 with Title 13, Subtitle 9 of the Tax – General Article; and 4 (ii) the State Lottery and Gaming Control Agency for State lottery 5 prize interception in accordance with § 3–307 of this subtitle; AND 6 (5) IN THE EVENT OF FEDERAL NONCOMPLIANCE WITH C OURT 7 DECISIONS UPHOLDING CONGRESSIONALLY APPR OVED SPENDING , AND IN 8 CONSULTATION WITH THE ATTORNEY GENERAL, PLACE LIENS ON FEDER AL 9 PROPERTY IN THE STATE. 10 (b) In addition to the authority provided under subsection (a) of this section, and 11 notwithstanding that the Central Collection Unit is a unit of the State government and 12 that assistant Attorneys General represent the Unit, the Unit may enforce a statutory or 13 written contractual obligation of a debtor to pay costs in addition to principal, including 14 collection costs, counsel fees, or interest penalties. 15 10–101. 16 In this title, “Board” means the Board of Public Works. 17 10–208. 18 THE BOARD MAY DETERMINE T HE FEDERAL GOVERNMEN T TO BE 19 DELINQUENT IN FEDERA L FUNDS OWED TO THE STATE IN THE EVENT OF FEDERAL 20 NONCOMPLIANCE WITH C OURT DECISIONS UPHOL DING CONGRESSIONALLY 21 APPROVED SPENDING . 22 Article – State Government 23 6–106.1. 24 (a) The General Assembly finds that: 25 (1) the federal government’s action or failure to take action may pose a 26 threat to the health and welfare of the residents of the State; and 27 (2) the State should investigate and obtain relief from any arbitrary, 28 unlawful, or unconstitutional federal action or inaction and prevent such action or inaction 29 from harming the residents of the State. 30 SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 31 the application of any provision of this Act to any person or circumstance is held invalid for 32 HOUSE BILL 1546 5 any reason in a court of competent jurisdiction, the invalidity does not affect other 1 provisions or any other application of this Act that can be given effect without the invalid 2 provision or application, and for this purpose the provisions of this Act are declared 3 severable. 4 SECTION 3. AND BE IT FURTHER ENACTED, That this Act is an emergency 5 measure, is necessary for the immediate preservation of the public health or safety, has 6 been passed by a yea and nay vote supported by three–fifths of all the members elected to 7 each of the two Houses of the General Assembly, and shall take effect from the date it is 8 enacted. 9