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.
*hb0865*
HOUSE BILL 865
E4, P1 (5lr1989)
ENROLLED BILL
— Appropriations/Budget and Taxation —
Introduced by Delegate D. Jones
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.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Catastrophic Event Account – Transfer of Funds – State Disaster Recovery Fund 2
FOR the purpose of authorizing the transfer of funds from the Catastrophic Event Account 3
to the State Disaster Recovery Fund under certain circumstances; altering the 4
number of days the Legislative Policy Committee has to review and make comments 5
before the Governor may transfer certain funds from the Account through budget 6
amendment; and generally relating to the transfer of funds from the Catastrophic 7
Event Account. 8
BY repealing and reenacting, without amendments, 9
Article – Public Safety 10
Section 14–110.5(a) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2024 Supplement) 13
2 HOUSE BILL 865
BY repealing and reenacting, with amendments, 1
Article – Public Safety 2
Section 14–110.5(f) 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – State Finance and Procurement 7
Section 7–324 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2024 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Public Safety 13
14–110.5. 14
(a) (1) In this section the following words have the meanings indicated. 15
(2) “Fund” means the State Disaster Recovery Fund. 16
(3) “Local Disaster Declaration” means a formal request for State disaster 17
relief and recovery assistance made as a result of an emergency by the senior elected official 18
through the local organization for emergency management. 19
(f) (1) The Governor may include in the annual budget bill an appropriation 20
to the Fund. 21
(2) The Fund shall consist of: 22
(i) money appropriated in the State budget to the Fund; 23
(ii) MONEY TRANSFERRED TO THE FUND FROM THE 24
CATASTROPHIC EVENT ACCOUNT IN ACCORDANCE WITH § 7–324 OF THE STATE 25
FINANCE AND PROCUREMENT ARTICLE; 26
(III) repayments of principal and interest from loans made from the 27
Fund; 28
[(iii)] (IV) reimbursements from the federal government or other 29
legal entities for disaster recovery assistance expenditures made from the Fund; 30
[(iv)] (V) interest earnings of the Fund; and 31
HOUSE BILL 865 3
[(v)] (VI) any other money from any other source accepted for the 1
benefit of the Fund. 2
Article – State Finance and Procurement 3
7–324. 4
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6
(2) “Account” means the Catastrophic Event Account. 7
(3) “FUND” MEANS THE STATE DISASTER RECOVERY FUND 8
ESTABLISHED UNDER § 14–110.5 OF THE PUBLIC SAFETY ARTICLE. 9
(b) Subject to the provisions of this section, the Account is established to enable 10
the State or a local government to respond without undue delay to a natural disaster or 11
other catastrophic situation, or federal employee financial hardship from a full or partial 12
federal government shutdown due to a lapse in federal appropriations that cannot be taken 13
care of within the resources of existing appropriations. 14
(c) The Governor may provide an appropriation in the budget bill to the Account. 15
(d) (1) Subject to paragraph (2) of this subsection, after a [15–day] 5–DAY 16
10–DAY review and comment period by the Legislative Policy Committee, the Governor 17
may transfer funds by budget amendment from the Account to: 18
(I) the expenditure accounts of the appropriate unit of State 19
government or unit of local government; OR 20
(II) SUBJECT TO SUBSECTIO N (E)(2)(II) OF THIS SECTION , THE 21
STATE DISASTER RECOVERY FUND. 22
(2) If the federal government is in a full or partial shutdown due to a lapse 23
in appropriations, after a 2–day review and comment period by the Legislative Policy 24
Committee, the Governor may transfer funds by budget amendment from the Account to 25
the Federal Government Shutdown Employee Assistance Loan Fund established under § 26
7–327 of this subtitle. 27
(e) Funds appropriated to the Catastrophic Event Account: 28
(1) may not be used to offset operating deficiencies in regular programs of 29
State government; but 30
(2) (I) may be expended to assist a unit of State government or unit of 31
local government in funding costs in connection with a natural disaster, a catastrophic 32 4 HOUSE BILL 865
situation, or a full or partial federal government shutdown due to a lapse in appropriations; 1
AND 2
(II) MAY BE TRANSFERRED T O THE STATE DISASTER 3
RECOVERY FUND IF: 4
1. THE BALANCE OF THE FUND HAS BEEN DEPLETE D 5
DUE TO USE OR TRANSF ER; OR 6
2. THE ESTIMATED COSTS FOR PROV IDING ADEQUATE 7
DISASTER RELIEF FOR A NATURAL DISASTER O R CATASTROPHIC SITUA TION ARE IN 8
EXCESS OF THE FUND’S BALANCE. 9
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 10
7–302 of this subtitle. 11
(2) The Treasurer shall separately hold, and the Comptroller shall account 12
for, the Account. 13
(3) The Account shall be invested and reinvested in the same manner as 14
other State funds. 15
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. 16
(g) Money appropriated to the Account does not revert to the Revenue 17
Stabilization Account. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
1, 2025. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.