EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0564*
SENATE BILL 564
E4, P1 5lr2868
CF 5lr1989
By: Senators Hester and Salling
Introduced and read first time: January 23, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
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
BY repealing and reenacting, with amendments, 14
Article – Public Safety 15
Section 14–110.5(f) 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – State Finance and Procurement 20
Section 7–324 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2024 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Public Safety 26 2 SENATE BILL 564
14–110.5. 1
(a) (1) In this section the following words have the meanings indicated. 2
(2) “Fund” means the State Disaster Recovery Fund. 3
(3) “Local Disaster Declaration” means a formal request for State disaster 4
relief and recovery assistance made as a result of an emergency by the senior elected official 5
through the local organization for emergency management. 6
(f) (1) The Governor may include in the annual budget bill an appropriation 7
to the Fund. 8
(2) The Fund shall consist of: 9
(i) money appropriated in the State budget to the Fund; 10
(ii) MONEY TRANSFERRED TO THE FUND FROM THE 11
CATASTROPHIC EVENT ACCOUNT IN ACCORDANCE WITH § 7–324 OF THE STATE 12
FINANCE AND PROCUREMENT ARTICLE; 13
(III) repayments of principal and interest from loans made from the 14
Fund; 15
[(iii)] (IV) reimbursements from the federal government or other 16
legal entities for disaster recovery assistance expenditures made from the Fund; 17
[(iv)] (V) interest earnings of the Fund; and 18
[(v)] (VI) any other money from any other source accepted for the 19
benefit of the Fund. 20
Article – State Finance and Procurement 21
7–324. 22
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24
(2) “Account” means the Catastrophic Event Account. 25
(3) “FUND” MEANS THE STATE DISASTER RECOVERY FUND 26
ESTABLISHED UNDER § 14–110.5 OF THE PUBLIC SAFETY ARTICLE. 27
SENATE BILL 564 3
(b) Subject to the provisions of this section, the Account is established to enable 1
the State or a local government to respond without undue delay to a natural disaster or 2
other catastrophic situation, or federal employee financial hardship from a full or partial 3
federal government shutdown due to a lapse in federal appropriations that cannot be taken 4
care of within the resources of existing appropriations. 5
(c) The Governor may provide an appropriation in the budget bill to the Account. 6
(d) (1) Subject to paragraph (2) of this subsection, after a [15–day] 5–DAY 7
review and comment period by the Legislative Policy Committee, the Governor may 8
transfer funds by budget amendment from the Account to: 9
(I) the expenditure accounts of the appropriate unit of State 10
government or unit of local government; OR 11
(II) SUBJECT TO SUBSECTIO N (E)(2)(II) OF THIS SECTION , THE 12
STATE DISASTER RECOVERY FUND. 13
(2) If the federal government is in a full or partial shutdown due to a lapse 14
in appropriations, after a 2–day review and comment period by the Legislative Policy 15
Committee, the Governor may transfer funds by budget amendment from the Account to 16
the Federal Government Shutdown Employee Assistance Loan Fund established under § 17
7–327 of this subtitle. 18
(e) Funds appropriated to the Catastrophic Event Account: 19
(1) may not be used to offset operating deficiencies in regular programs of 20
State government; but 21
(2) (I) may be expended to assist a unit of State government or unit of 22
local government in funding costs in connection with a natural disaster, a catastrophic 23
situation, or a full or partial federal government shutdown due to a lapse in appropriations; 24
AND 25
(II) MAY BE TRANSFERRED T O THE STATE DISASTER 26
RECOVERY FUND IF: 27
1. THE BALANCE OF THE FUND HAS BEEN DEPLETE D 28
DUE TO USE OR TRANSF ER; OR 29
2. THE ESTIMATED COSTS FOR PROVIDING ADEQUA TE 30
DISASTER RELIEF FOR A NATURAL DISASTER O R CATASTROPHI C SITUATION ARE IN 31
EXCESS OF THE FUND’S BALANCE. 32
4 SENATE BILL 564
(f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 1
7–302 of this subtitle. 2
(2) The Treasurer shall separately hold, and the Comptroller shall account 3
for, the Account. 4
(3) The Account shall be invested and reinvested in the same manner as 5
other State funds. 6
(4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. 7
(g) Money appropriated to the Account does not revert to the Revenue 8
Stabilization Account. 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10
1, 2025. 11