EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0592* SENATE BILL 592 J1 5lr2125 CF HB 743 By: Senator Augustine Introduced and read first time: January 23, 2025 Assigned to: Finance and Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Public Health – Health Care Quality Fund for Community –Based Behavioral 2 Health Programs – Establishment 3 FOR the purpose of establishing the Health Care Quality Fund for Community–Based 4 Behavioral Health Programs as a special, nonlapsing fund in the Maryland 5 Department of Health; requiring the Department to pay to the Comptroller certain 6 civil penalties collected from behavioral health programs and the Comptroller to 7 distribute the penalties into the Fund; requiring interest earnings of the Fund to be 8 credited to the Fund; and generally relating to the Health Care Quality Fund for 9 Community–Based Behavioral Health Programs. 10 BY adding to 11 Article – Health – General 12 Section 7.5–405 13 Annotated Code of Maryland 14 (2023 Replacement Volume and 2024 Supplement) 15 BY repealing and reenacting, without amendments, 16 Article – State Finance and Procurement 17 Section 6–226(a)(2)(i) 18 Annotated Code of Maryland 19 (2021 Replacement Volume and 2024 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – State Finance and Procurement 22 Section 6–226(a)(2)(ii)204. and 205. 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2024 Supplement) 25 BY adding to 26 Article – State Finance and Procurement 27 2 SENATE BILL 592 Section 6–226(a)(2)(ii)206. 1 Annotated Code of Maryland 2 (2021 Replacement Volume and 2024 Supplement) 3 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4 That the Laws of Maryland read as follows: 5 Article – Health – General 6 7.5–405. 7 (A) IN THIS SECTION, “FUND” MEANS THE HEALTH CARE QUALITY FUND 8 FOR COMMUNITY–BASED BEHAVIORAL HEALTH PROGRAMS. 9 (B) THERE IS A HEALTH CARE QUALITY FUND FOR COMMUNITY–BASED 10 BEHAVIORAL HEALTH PROGRAMS IN THE DEPARTMENT . 11 (C) (1) THE DEPARTMENT SHALL PAY TO THE COMPTROLLER ALL CIVIL 12 PENALTIES COLLECTED FROM B EHAVIORAL HEALTH PRO GRAMS THAT ARE 13 ASSESSED BY THE ADMINISTRATION OR THE OFFICE OF HEALTH CARE QUALITY. 14 (2) THE COMPTROLLER SHALL DIS TRIBUTE THE PENALTIE S TO THE 15 FUND. 16 (D) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDING FOR TRAINING , 17 GRANT AWARDS , DEMONSTRATION PROJEC TS, OR OTHER PURPOSES DE SIGNED TO 18 IMPROVE THE QUALITY OF BEHAVIORAL HEALTH CARE IN THE STATE. 19 (E) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 20 (F) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 21 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 22 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 23 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 24 (G) THE FUND CONSISTS OF : 25 (1) CIVIL MONEY PENALTIES DISTRIBUTED TO THE FUND UNDER 26 SUBSECTION (C) OF THIS SECTION; 27 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 28 (3) INTEREST EARNINGS ; AND 29 SENATE BILL 592 3 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 1 THE BENEFIT OF THE FUND. 2 (H) THE FUND MAY BE USED ONLY FOR TRAINING , GRANT AWARDS , 3 DEMONSTRATION PROJEC TS, OR OTHER PURPOSES DE SIGNED TO IMPROVE TH E 4 QUALITY OF BEHAVIORA L HEALTH CARE . 5 (I) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 6 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 7 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 8 THE FUND. 9 (J) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 10 WITH THE STATE BUDGET . 11 (K) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS NOT 12 INTENDED TO TAKE THE PLACE OF FUNDING THA T OTHERWISE WOULD BE 13 APPROPRIATED FOR THE BEHAVIORAL HEALTH ADMINISTRATION OR THE OFFICE 14 OF HEALTH CARE QUALITY. 15 (L) THE DEPARTMENT SHALL ADOP T REGULATIONS FOR TH E 16 DISTRIBUTION OF FUND S FROM THE HEALTH CARE QUALITY FUND FOR 17 COMMUNITY–BASED BEHAVIORAL HEALTH PROGRAMS. 18 Article – State Finance and Procurement 19 6–226. 20 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 21 through 2028. 22 2. Notwithstanding any other provision of law, and unless 23 inconsistent with a federal law, grant agreement, or other federal requirement or with the 24 terms of a gift or settlement agreement, net interest on all State money allocated by the 25 State Treasurer under this section to special funds or accounts, and otherwise entitled to 26 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 27 Fund of the State. 28 (ii) The provisions of subparagraph (i) of this paragraph do not apply 29 to the following funds: 30 204. the Victims of Domestic Violence Program Grant Fund; 31 [and] 32 4 SENATE BILL 592 205. the Proposed Programs Collaborative Grant Fund; AND 1 206. THE HEALTH CARE QUALITY FUND FOR 2 COMMUNITY–BASED BEHAVIORAL HEALTH PROGRAMS. 3 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4 October 1, 2025. 5