Md. Code, State Finance and Procurement, Title 7

in effect

Md. Code, State Finance and Procurement § 7-101

(a) In this subtitle the following words have the meanings indicated. (b) “Proposed budget” means: (1) the budget bill; and (2) the budget books and other documents that support the budget bill. (c) “Secretary” means the Secretary of Budget and Management.

Md. Code, State Finance and Procurement § 7-102

(a) The General Assembly desires that, during preparation of a proposed budget, the Governor review, thoroughly and in detail, the recommendations of the Spending Affordability Committee. (b) To have the complete financial program of the Governor early in a regular session, the General Assembly desires that the Governor: (1) submit with the proposed budget for a fiscal year: (i) the Governor’s complete financial program for that fiscal year; and (ii) each bond or revenue bill proposed to carry out the program; and (2) use a supplemental budget amendment only to: (i) correct a mechanical error in the proposed budget; or (ii) provide funding for legislation enacted during the session.

Md. Code, State Finance and Procurement § 7-103

(a) (1) The Secretary shall continually conduct studies on the needs of units of the Executive Branch of the State government and of private entities to which the State appropriates money. (2) To obtain the information that the Secretary wants in estimating the needs of the unit or entity, the Secretary may: (i) question any officer or employee of the unit or entity; and (ii) examine the records of the unit or entity. (b) The Secretary shall: (1) continually compare the needs of the units of the Executive Branch of the State government and of the private entities with the revenues that are collected; (2) prepare estimates of revenues that will be available for the State budget; (3) prepare any other estimates of revenues that the Governor requests; (4) study the revenue structure of the State; (5) evaluate the sources of State revenues; and (6) recommend to the Governor: (i) appropriate changes in the revenue structure of the State; and (ii) new sources of State revenues. (c) (1) The studies of the units of the Executive Branch of the State government shall include: (i) program analyses; and (ii) careful consideration of the administration, organization, functions, and duties of the units, to identify duplication or overlap. (2) On the basis of the studies, the Secretary shall report to the Governor on changes that the Secretary believes would result in economy or efficiency or otherwise would be in the State’s best interest, including: (i) elimination or reduction of State programs; (ii) abolition of positions; (iii) changes in procedures; and (iv) reorganization or consolidation of units. (3) The Secretary shall send a copy of each report under this subsection, subject to § 2-1257 of the State Government Article, to the Executive Director of the Department of Legislative Services.

Md. Code, State Finance and Procurement § 7-104

(a) (1) The Secretary shall prepare for the Governor a draft of the proposed budget. (2) The draft shall: (i) be comprehensive; (ii) eliminate duplication and conflict; and (iii) include each item that the Governor is required by law to include in a proposed budget. (b) The Secretary shall include in the draft items for capital improvements. (c) The Secretary may specify: (1) the form to be used by a unit of the Executive Branch of the State government or a private entity to request an appropriation from the State; (2) information that must be submitted with the form; and (3) the time for submission of the form.

Md. Code, State Finance and Procurement § 7-105

Each proposed budget shall be classified as and in the form and with the detail that the Governor or law requires.

Md. Code, State Finance and Procurement § 7-106

The Governor shall submit to the General Assembly by the third Wednesday in January each year, except in the case of a newly elected Governor, and then not later than 10 days after the convening of the General Assembly, each bond or revenue bill necessary to submit a balanced budget and to carry out the proposed budget for the next fiscal year.

Md. Code, State Finance and Procurement § 7-107

The Secretary shall publish on the Department of Budget and Management’s website, in a machine–readable format, an itemized statement, linked to the proposed State budget, of revenues collected by the State that are dedicated by law to a special fund, including: (1) the name of each special fund; (2) a description of the purpose of the special fund; (3) the source of revenue for the special fund; (4) the amount deposited into the special fund in the previous fiscal year; and (5) the balance of revenues in the special fund at the close of the previous fiscal year.

Md. Code, State Finance and Procurement § 7-108

(a) In accordance with the Maryland Constitution and other law, the Governor shall include in each budget bill: (1) an appropriation to pay the principal of and interest on the State debt; (2) without revision, the appropriations requested for public schools, as certified by the State Superintendent of Schools; (3) without revision, the appropriations requested for the Legislative Branch of the State government, as certified by the presiding officers of the General Assembly; (4) without revision, the appropriations requested for the Judicial Branch of the State government, as certified by the Chief Justice of the Supreme Court of Maryland; (5) the appropriations requested by the Governor for the Executive Branch of the State government; (6) the appropriations required by law to be included with the appropriations for the Executive Branch; (7) appropriations for the salaries required by law to be paid by the State; (8) without revision, appropriations for the Accountability and Implementation Board, as jointly certified by the presiding officers of the General Assembly and the Governor; and (9) any other appropriations required by the Maryland Constitution or other law to be included in the budget bill. (b) The Governor shall use the current salary plan of the Secretary of Budget and Management as the basis for the appropriations to pay those salaries to which the plan applies.

Md. Code, State Finance and Procurement § 7-109

(a) Each budget bill shall contain a separate section that includes: (1) the proposed salary schedule for the executive pay plan established under Title 8, Subtitle 1 of the State Personnel and Pensions Article, which shall be in effect for that fiscal year; and (2) a listing of the job classification and title of each position in the executive pay plan, including the proposed salary grade for each position. (b) In addition to the separate section required under subsection (a) of this section, each budget bill shall contain a separate section that includes: (1) a listing, by the unit of State government, of the job classification of each position with flat rate or per diem compensation in excess of the minimum salary in the proposed executive pay plan. The listing shall include, but not be limited to, constitutional officers, positions for which salaries by law are determined by judicial salaries, and positions for which salaries are determined by an agency with independent salary setting authority that have not been included in the executive pay plan; (2) the number of positions in each of those job classifications; and (3) the amount of the salary proposed for each of those job classifications. (c) (1) The salary schedule and proposed salary grade, as provided in accordance with subsection (a) of this section, shall be subject to approval by the General Assembly. (2) The proposed salary for job classifications, as provided in accordance with subsection (b) of this section, shall be subject to approval by the General Assembly.

Md. Code, State Finance and Procurement § 7-110

(a) (1) In this section the following words have the meanings indicated. (2) “Capital expenditure” means an expenditure made by the Department of Transportation for: (i) the construction, reconstruction, or rehabilitation of a transportation facility, as defined in § 3-101(l) of the Transportation Article; or (ii) capital equipment as defined by the Secretary of Transportation. (3) “Modal administration” has the meaning stated in § 1-101 of the Transportation Article. (4) “Operating expenditure” means an expenditure that is made by the Department of Transportation, including the Office of the Secretary or a modal administration, and that is not a capital expenditure. (b) (1) Each budget bill shall set forth as part of the appropriation for the Office of the Secretary of Transportation and for each modal administration, separate items for: (i) capital expenditures; and (ii) operating expenditures. (2) The budget books shall set forth, for information, a summary of the capital expenditures and operating expenditures, as defined by the Secretary of Transportation, for the Maryland Transportation Authority. (3) The budget books for a fiscal year shall include the appropriation for the preceding fiscal year for each modal administration, as provided in the Consolidated Transportation Program. (c) On submission of the budget bill to the General Assembly, the Department of Transportation shall report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Committee on Ways and Means, in accordance with § 2–1257 of the State Government Article, on the estimated costs for planning, engineering, right–of–way acquisition, and construction for all projects for which planning funds were added to the budget by the General Assembly during the previous three legislative sessions.

Md. Code, State Finance and Procurement § 7-110.1

§7–110.1. If the U.S. General Services Administration applies to Prince George’s County or the State for a permit associated with the relocation of the Federal Bureau of Investigation Headquarters to Prince George’s County, the Governor shall include in the annual operating or capital budget bill an appropriation of at least $200,000,000 for site redevelopment and to improve transportation infrastructure for the Federal Bureau of Investigation Headquarters relocation project.

Md. Code, State Finance and Procurement § 7-111

(a) The Governor shall include in each budget bill a lump sum appropriation to the University College of the University of Maryland. (b) An appropriation under this section for a fiscal year shall equal the amount that University College estimates it will receive during the fiscal year from tuitions, fees, gifts, and grants and interest on those revenues. (c) (1) The supporting documents for each budget bill shall include the annual financial information statement that University College prepares. (2) The supporting documents need not include any other information about the appropriation under this section.

Md. Code, State Finance and Procurement § 7-112

(a) Unless specifically authorized by law, the Governor may not submit a budget bill that changes a State statute. (b) Subject to the limitations in the Maryland Constitution, a statute that sets a salary is superseded by passage of a budget bill that alters the salary.

Md. Code, State Finance and Procurement § 7-113

(a) The purposes of this section are to: (1) carry out the purposes of the laws relating to motor vehicle licensing and motor vehicle fuel taxes; and (2) prevent diversions of revenues that those laws generate. (b) In a budget bill, the Governor may use the revenues that are generated by motor vehicle licensing and by motor vehicle fuel taxes, including fines and penalties, only to: (1) construct, reconstruct, and maintain bridges, highways, roads, and streets; (2) pay the interest on and principal of bonds that have been issued to finance the construction of bridges, highways, roads, and streets; or (3) enforce those laws.

Md. Code, State Finance and Procurement § 7-114

(a) (1) In this section the following words have the meanings indicated. (2) “Cancer Program” means the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article. (3) “Tobacco Program” means the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article. (b) Each budget bill shall contain a separate section that includes the appropriation for: (1) each Component of the Tobacco Program; (2) each Component of the Cancer Program; (3) the Tri–County Council for Southern Maryland, in accordance with § 13–611 of the Economic Development Article; and (4) any other program that is funded with money from the Cigarette Restitution Fund established under § 7–317 of this title.

Md. Code, State Finance and Procurement § 7-114.1

§7–114.1. The costs of archaeological work incurred in a State project on a site of archaeological or historical significance shall be included in the budget bill of which the project is a part.

Md. Code, State Finance and Procurement § 7-114.2

§7–114.2. (a) Except as provided in subsection (b) of this section, when a proposed budget includes expenditure reductions to be applied across multiple Executive Branch agencies, the budget bill shall specify how the savings will be achieved and with the exception of position abolitions and items requiring collective bargaining shall include a separate schedule for each reduction allocating the reduction for each agency in a level of detail not less than the 3–digit R*Stars financial agency code and by each fund type. (b) For fiscal year 2026 only, when a proposed budget includes expenditure reductions to be applied across multiple Executive Branch agencies, the budget bill may specify how the savings will be achieved and with the exception of position abolitions and items requiring collective bargaining may include a separate schedule for each reduction allocating the reduction for each agency in a level of detail not less than the 3–digit R*Stars financial agency code and by each fund type.

Md. Code, State Finance and Procurement § 7-114.3

§7–114.3. (a) Except as provided in subsection (b) of this section, a proposed appropriation in the annual budget bill for a unit of State government that the General Assembly has struck or reduced may not be restored for the same purpose as originally proposed. (b) A proposed appropriation that the General Assembly has struck or reduced may be restored for the same purpose as originally proposed if the General Assembly, in striking or reducing the appropriation, expressly authorized the restoration.

Md. Code, State Finance and Procurement § 7-115

(a) On submission of the budget bill to the presiding officers of the General Assembly, the Governor shall provide the supporting material specified in this section. (b) The Governor shall provide budget books that include the information required in this section. (c) The budget books for a fiscal year shall: (1) (i) state each source of State revenues for the year, from which the proposed appropriations are to be paid; and (ii) state the amount that the Governor estimates will be collected from each source; (2) contain a summary of the annuity bond accounts of the State as of the end of the last full fiscal year; and (3) (i) include a copy of the statewide cost allocation plan filed with the federal government for federal reimbursement of the costs of indirect State services that benefit federally funded programs; and (ii) list, by unit of the State government, the amount of reimbursement received under the plan during the last full fiscal year. (d) The budget books shall contain personnel detail in a section that, by unit of the State government, sets forth, for each program or purpose of that unit: (1) the total number of officers and employees and the number in each job classification: (i) authorized in the State budget for the last full fiscal year and the current fiscal year; and (ii) requested for the next fiscal year; and (2) an itemized statement of the expenditures for contractual services, supplies and materials, equipment, land and structures, fixed charges, and other operating expenses: (i) made in the last full fiscal year; (ii) authorized in the State budget for the current fiscal year; and (iii) requested for the next fiscal year. (e) The following information shall be provided on the website of the Department of Budget and Management simultaneously with the submission of the annual State budget: (1) the StateStat or managing for results agency strategic plan required under this article, limited to a description of the agency’s mission, goals, objectives, and performance measures; and (2) personnel detail, by unit of State government, that sets forth, for each program or purpose of the unit, the total amount for salaries of officers and employees and the amount for salaries of each job classification: (i) spent during the last full fiscal year; (ii) authorized in the State budget for the current fiscal year; and (iii) requested for the next fiscal year. (f) Whenever a proposed budget exceeds the recommendations of the Spending Affordability Committee, the budget books shall: (1) indicate the degree to which the proposed budget and recommendations differ; and (2) set forth the Governor’s reasons for exceeding the recommendations. (g) The budget books shall include supporting data and the results of the calculations required under § 5–202(l) of the Education Article. (h) The information required under this section shall be provided on the website of the Department of Budget and Management simultaneously with the submission of the annual State budget.

Md. Code, State Finance and Procurement § 7-116

(a) In this section, “machine–readable format” means a comma–separated values file format. (b) On submission of the budget bill to the presiding officers of the General Assembly, the Governor shall provide the following number of copies of the budget books required under § 7–115 of this subtitle: (1) one copy to each member of the General Assembly; and (2) 80 copies to the Department of Legislative Services. (c) The information required under § 7–115 of this subtitle shall be provided in a machine–readable format on the website of the Department of Budget and Management simultaneously with the publication of the proposed annual State budget. (d) The Department of Budget and Management shall archive the information provided in a machine–readable format on the website of the Department of Budget and Management beginning with the fiscal year 2017 budget.

Md. Code, State Finance and Procurement § 7-117

(a) Subject to § 2–1257 of the State Government Article, the Secretary shall provide to the General Assembly on a biennial basis by no later than February 1 of the fiscal year preceding the fiscal year the report covers, a report that contains a statement of the estimated amount by which exemptions from taxation reduce, for the year: (1) State revenues; and (2) revenues that the State collects for local governments. (b) For each exemption, the statement shall: (1) show the estimated amount by which the exemption reduces revenues; (2) identify the person or the part of the population that benefits from the exemption; and (3) say whether the exemption conflicts with any other State program. (c) The statement shall include: (1) each subtraction modification under § 10–207, § 10–208, or § 10–209 of the Tax – General Article; and (2) each exemption under: (i) Title 8, Subtitle 7 of the Natural Resources Article; (ii) § 5–104, § 6–103, § 7–203, § 7–303, § 9–203, § 9–303, § 9–304, § 10–104, § 10–211, § 10–212, § 12–104, or Title 11, Subtitle 2 of the Tax – General Article; (iii) Title 7 of the Tax – Property Article; and (iv) § 13–810 or § 13–903 of the Transportation Article. (d) The Comptroller, the Department of Assessments and Taxation, the Maryland Department of Labor, the Department of Natural Resources, the Department of Transportation, and other units of the State government shall help the Secretary of Budget and Management to prepare a draft of the statement under this section.

Md. Code, State Finance and Procurement § 7-118

(a) In its annual submission of the proposed budget, the Department of Budget and Management shall provide, for informational purposes, a budget presentation that includes a description of the proposed expenditures under the Maryland Emergency Medical System Operations Fund for the: (1) Maryland Institute for Emergency Medical Services Systems; (2) R Adams Cowley Shock Trauma Center; (3) Maryland Fire and Rescue Institute; (4) Aviation Division of the Special Operations Bureau, Department of State Police; and (5) grants under the Senator William H. Amoss Fire, Rescue, and Ambulance Fund. (b) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Cancer Program” means the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article. (iii) “Tobacco Program” means the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article. (2) The budget books shall contain a budget presentation that provides an overview of the proposed expenditures for: (i) the Tobacco Program, including the proposed expenditures for: 1. each Component of the Tobacco Program; 2. each program funded under each Component of the Tobacco Program; and 3. each Local Public Health Tobacco Grant; (ii) the Cancer Program, including the proposed expenditures for: 1. each Component of the Cancer Program; 2. each program funded under each Component of the Cancer Program; 3. each Local Public Health Cancer Grant; 4. each statewide Academic Health Center Public Health Grant; 5. each statewide Academic Health Center Cancer Research Grant; 6. each statewide Academic Health Center Tobacco–Related Diseases Research Grant; and 7. each statewide Academic Health Center Network Grant; (iii) the Tri–County Council for Southern Maryland, in accordance with § 13–611 of the Economic Development Article, including proposed expenditures for the Southern Maryland Agricultural Development Commission; and (iv) any other program that is funded with the Cigarette Restitution Fund established under § 7–317 of this title.

Md. Code, State Finance and Procurement § 7-119

(a) (1) For each fiscal year, General Fund capital appropriations shall be budgeted in the operating budget in separate eight–digit programs. (2) When multiple projects or programs are budgeted within the same nontransportation eight–digit program, each distinct program and project shall be budgeted in a distinct subprogram. (b) (1) To the extent possible, subprograms for projects spanning multiple years shall be retained to preserve funding history. (2) The budget detail for prior and current fiscal years submitted with each proposed budget shall be organized in the same fashion to allow comparison between fiscal years.

Md. Code, State Finance and Procurement § 7-120

On submission of a supplemental budget bill to the presiding officers of the General Assembly that includes an appropriation in accordance with § 5–202(l) of the Education Article, the Governor shall provide supporting data and the results of the calculations required under that subsection.

Md. Code, State Finance and Procurement § 7-201

(a) In this subtitle the following words have the meanings indicated. (b) “Appropriation act” means: (1) the State budget; or (2) a supplementary appropriation act. (c) “Program” means a brief statement in an appropriation act of the purpose for which an appropriation shall be used. (d) “Warrant” means a warrant that the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller issues for the disbursement of money from the State Treasury.

Md. Code, State Finance and Procurement § 7-202

Money may be disbursed from the State Treasury only on appropriation by an appropriation act.

Md. Code, State Finance and Procurement § 7-205

Money may be disbursed from the State Treasury only in accordance with the current appropriation for a program as amended from time to time in accordance with this title.

Md. Code, State Finance and Procurement § 7-206

The initial appropriation for a program is set forth in the appropriation act. However, the appropriation for a program may be increased or reduced as provided in this subtitle.

Md. Code, State Finance and Procurement § 7-207

(a) “Lump sum appropriation” means an appropriation for which the budget books or other documents that support the appropriation act contain no detailed information. (b) Within 90 days after the General Assembly adjourns, each officer or unit of the State government to which a lump sum appropriation is made shall submit to the Board of Public Works a schedule that shows, in the form and with the detail set by the Board, the proposed apportionment and proposed disbursement of the appropriation.

Md. Code, State Finance and Procurement § 7-208

(a) While the General Assembly is in session the General Assembly may amend the appropriation for a program of the Legislative Branch of the State government by amendment to the budget bill. (b) While the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates jointly may authorize an amendment of an appropriation for a program of the Legislative Branch of the State government. (c) An amendment of an appropriation for a program of the Legislative Branch of the State government: (1) may not increase the sum of the appropriations from the General Fund of the State for all the programs of the Legislative Branch; and (2) may authorize the expenditure of money from a special fund or the federal government as provided in § 2-201 of this article or § 7-217(a) of this subtitle. (d) (1) (i) Except as provided in this subsection, an amendment under this section may not increase a salary for a nonclassified position so that the salary exceeds the amount set by the most recently enacted State budget. (ii) The limitation applies whether or not the most recently enacted budget is in effect. (iii) This subsection does not apply to salaries of positions that are included in an executive pay plan for the Legislative Branch. (2) While the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates jointly may approve an amendment that increases a salary so that it exceeds the limitation in this subsection if: (i) the President and the Speaker find that the salary increase is needed because an inability to obtain or to keep an essential career employee who is performing an administrative function or an essential professional or technical employee has created an acute emergency; and (ii) their findings are documented. (e) A copy of each amended appropriation for a program shall be provided promptly to: (1) the Comptroller; and (2) the Secretary of Budget and Management.

Md. Code, State Finance and Procurement § 7-208.1

§7–208.1. (a) The Chief Justice of the Supreme Court of Maryland may authorize an amendment of an appropriation for a program of the Judicial Branch. (b) An amendment of an appropriation for a program of the Judicial Branch: (1) may not increase the sum of the appropriations from the General Fund of the State for all the programs of the Judicial Branch; and (2) may authorize the expenditure of money from a special fund or the federal government as provided in § 2–201 of this article and § 7–217(a) of this subtitle. (c) (1) Except as provided in paragraph (2) of this subsection, an amendment under this section may not increase a salary for a nonclassified position so that the salary exceeds the amount set forth by the most recently enacted State budget bill. The limitation in this paragraph applies whether or not the most recently enacted budget is in effect. (2) The Chief Justice of the Supreme Court of Maryland may approve an amendment that increases a salary so that it exceeds the limitation of this subsection if the Chief Justice finds that the salary increase is needed because an inability to obtain or to keep an essential career employee who is performing an administrative function or an essential professional or technical employee has created an acute emergency, and the finding is documented. This paragraph does not apply to salaries of positions that are included in an executive pay plan for the Judicial Branch. Adjustments to those salaries beyond the amount included in the most recently enacted State budget shall be submitted to the Legislative Policy Committee for approval. (d) A copy of each amended appropriation for a program shall be provided promptly to: (1) the Comptroller; and (2) the Secretary of Budget and Management.

Md. Code, State Finance and Procurement § 7-209

(a) The Governor may amend an appropriation for a program of the Office of the Governor. (b) (1) Except as provided in § 7–212 of this subtitle, whenever an officer or unit of the Executive Branch of the State government wants the appropriation for a program of the officer or unit amended, the officer or unit shall submit a proposed amended appropriation for the program to the Secretary of Budget and Management. (2) The Secretary of Budget and Management shall endorse on or attach to the proposed amended appropriation for the program a recommendation and send the amended appropriation for the program and recommendation to the Governor. (3) At any time before the Governor approves or disapproves the proposed amended appropriation for a program, the officer or unit may withdraw the proposal. (4) Whenever the Governor approves a proposed amended appropriation for a program, the Governor shall endorse it as “approved”. (c) (1) An amendment of an appropriation for a program: (i) except as provided in paragraph (2) of this subsection, may not increase the sum of the appropriations from the General Fund of the State for all the programs of the officer or unit; and (ii) may permit the expenditure of money from a special fund or the federal government as provided in § 2–201 of this article or § 7–217(a) of this subtitle. (2) An amendment of an appropriation for a program of the Executive Branch may increase the sum of the appropriations from the General Fund of the State for all programs of the officer or unit if money from the Contingent Fund of the Board of Public Works is transferred to the program. (d) (1) (i) Except as provided in paragraph (2) of this subsection, an amendment under this section may not increase a salary so that it exceeds the amount set by the most recently enacted State budget. (ii) The limitation in this paragraph applies whether or not the most recently enacted budget is in effect. (2) (i) If the Board of Public Works approves the increase, the Governor may approve an amendment that increases the salary for a position listed in the budget bill in accordance with § 7–109 of this title. (ii) An amendment under this paragraph remains effective until the State budget for the next fiscal year becomes effective. (e) (1) Except as provided in paragraphs (2) and (3) of this subsection, an amendment under this section may not transfer any part of an appropriation among any of the principal departments or any of the units in the Executive Branch that are not assigned to a principal department. (2) This subsection does not prevent a transfer that: (i) is part of a reorganization under § 8–301 of the State Government Article; (ii) is needed to comply with federal law or a policy directive of a federal unit that relates to the use of federal funds; (iii) because of an emergency declared by the Governor, is needed to protect the health, welfare, or property of the public; or (iv) is specifically authorized by the budget bill or other law. (3) (i) Subject to the State budget bill, an amendment may transfer part of an appropriation of special or federal funds between any of the principal departments or any of the units in the Executive Branch that are not assigned to a principal department if: 1. funds are available to the department or unit from which the funds are to be transferred through a federal grant or contract or other restricted grant or contract; 2. the use of funds by the department or unit to which the funds are to be transferred is directly related to the purposes of the grant or contract and the statutory duties of that department or unit; and 3. the transferring department or unit and the receiving department or unit submit a schedule of funds to be transferred to the Department of Budget and Management. (ii) Funds transferred under this paragraph may not be expended by the recipient department or unit until each proposed budget amendment has been approved by: 1. the Secretary of Budget and Management; 2. the Governor; and 3. the Board of Public Works. (iii) A copy of each approved budget amendment under this paragraph shall be provided to the Department of Legislative Services. (f) The Governor shall send a copy of each amended appropriation for a program to: (1) the Comptroller; and (2) the Department of Legislative Services. (g) An amended appropriation for a program is effective when the Governor sends notice of the amended appropriation to the Comptroller.

Md. Code, State Finance and Procurement § 7-210

(a) (1) A budget amendment may not change any language or substantive provision in the State budget. (2) The limitation in this subsection does not apply to the monetary figures of an appropriation. (b) A budget amendment may not transfer any part of a General Fund capital appropriation to an operating program or purpose.

Md. Code, State Finance and Procurement § 7-211

(a) On or before the 3rd Wednesday in January of each year, the Secretary of Transportation shall submit to the General Assembly, subject to § 2-1257 of the State Government Article, a report on amendments of appropriations for programs of the Department of Transportation. (b) (1) A report under this section shall describe each proposed amended appropriation for a program that the Department has submitted or expects to submit during the current fiscal year under § 7-209 of this subtitle. (2) The description shall include: (i) an explanation of the purpose of the amendment; and (ii) an analysis of the impact of the amendment on appropriations of special and federal funds.

Md. Code, State Finance and Procurement § 7-212

(a) This section applies only to the following governing boards: (1) the Board of Regents of Morgan State University; (2) the Board of Regents of the University System of Maryland; and (3) the Board of Trustees of St. Mary’s College of Maryland. (b) A governing board to which this section applies may transfer money among objects and, subject to the limitation in subsection (c) of this section, among programs under the jurisdiction of the governing board without submitting a proposed amended appropriation for a program under § 7-209 of this subtitle. (c) During a fiscal year, a governing board may not transfer from a program more than 5% of the appropriation in the State budget for that program. (d) At the end of each fiscal year, each governing board to which this section applies shall give to the Comptroller, the Department of Budget and Management, and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services, for information only, a summary of the transfers among programs made during the fiscal year. (e) Section 7-209 of this subtitle does not apply to a transfer under this section.

Md. Code, State Finance and Procurement § 7-213

(a) (1) Subject to paragraph (2) of this subsection and except as provided in subsection (b) of this section, with the approval of the Board of Public Works, the Governor may reduce, by not more than 25% of the legislative appropriation as approved by the General Assembly for any eight–digit program in the State operating budget in any fiscal year, any appropriation: (i) that the Governor considers unnecessary; or (ii) that is subject to budgetary reductions required under the budget bill as approved by the General Assembly. (2) At least 7 calendar days before the Board of Public Works may approve a proposed reduction of an appropriation under this subsection, the Secretary of Budget and Management shall: (i) publish on the Department of Budget and Management’s Web site, in a machine–readable format, notice of the proposed reduction, including: 1. the name of the State agency or program for which the appropriation is intended and a brief narrative summary of the impact of the proposed reduction on the State agency or program; 2. the amount of the proposed reduction in both dollar and percentage values; 3. the fund source of the appropriation subject to the proposed reduction; and 4. any projected reductions in workforce as a result of the proposed reduction; (ii) provide the notice required under subparagraph (i) of this paragraph to the Board of Public Works for publication, in a machine–readable format, on the Board’s Web site; and (iii) provide written notice of the proposed reduction, including the items specified under subparagraph (i) of this paragraph, to: 1. the Legislative Policy Committee; 2. the Senate Budget and Taxation Committee; and 3. the House Appropriations Committee. (b) (1) The Governor may not reduce an appropriation to the Legislative Branch or the Judicial Branch of the State government. (2) The Governor may not reduce an appropriation for: (i) payment of the principal of or interest on the State debt; (ii) public schools, including the Maryland School for the Deaf; (iii) the Maryland School for the Blind; or (iv) the salary of a public officer, during the term of office. (3) Except as provided in § 8–109 of the State Personnel and Pensions Article, the Governor may not reduce an appropriation for the salary of any nontemporary employee in the State Personnel Management System.

Md. Code, State Finance and Procurement § 7-216

(a) Subject to the limitations in this subtitle, an officer or unit of the State government may spend an appropriation for a program of the officer or unit in accordance with the current appropriation. (b) (1) Except as provided in subsection (c) of this section, whenever an officer or a unit of the State government spends any part of an appropriation, the officer or unit promptly shall send the bill to the Comptroller for payment. (2) Subject to the limitations in this subtitle, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may issue a warrant for payment of the bill. (c) (1) The Comptroller shall exempt an officer or unit of the State government from the requirements of subsection (b) of this section if the Comptroller determines that the exemption would be in the public interest. (2) Subject to the limitations in this subtitle, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may issue warrants from time to time to provide the officer or unit with the working cash that the Comptroller finds necessary. (3) The Comptroller shall keep a record that shows each exemption, each amount advanced to an officer or unit, and the reasons for each exemption. (4) The record shall be kept in the Office of the Comptroller and shall be open to public inspection. (5) An officer or unit shall send to the Comptroller the voucher or a copy of the voucher for each expenditure made from an advance under this subsection.

Md. Code, State Finance and Procurement § 7-217

(a) An officer or unit of the State government may spend money from a special fund or the federal government that is not estimated or included in the State budget or exceeds the estimate in the State budget and is paid into the State Treasury for a program after an approved amendment of a special or federal fund appropriation for the program: (1) for the specific purpose to which the money is dedicated by State law or act of Congress; or (2) if the money is not dedicated to a specific purpose, with the approval of the Governor and as authorized in an approved budget amendment, for necessary current operations. (b) Money that is derived from a source estimated and included in an appropriation act and that is in excess of the estimate shall remain in the General Fund of the State until appropriated by a subsequent appropriation act.

Md. Code, State Finance and Procurement § 7-218

Before issuance of a warrant for payment of a bill, the Comptroller may have the bill audited.

Md. Code, State Finance and Procurement § 7-219

(a) The Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not sign a blank warrant. (b) A warrant for payment of a bill is not valid unless the following information appears on the face of the warrant: (1) the amount of the warrant; (2) the date of issue; (3) a reference to the document that identifies: (i) the payee; and (ii) the officer or unit of the State government that submitted the bill; and (4) the certification of the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller that: (i) the amount of the warrant is correct; and (ii) the officer or unit submitted the bill for which the warrant is issued. (c) A warrant for an advance of money to an officer or unit of the State government is not valid unless the following information appears on the face of the warrant: (1) the amount of the warrant; (2) the date of issue; (3) the identity of the officer or unit; and (4) the certification of the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller that the amount of the warrant is correct.

Md. Code, State Finance and Procurement § 7-220

A warrant shall charge an applicable appropriation to the officer or unit that: (1) has submitted a bill for payment; or (2) is to receive an advance.

Md. Code, State Finance and Procurement § 7-221

(a) The Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not issue a warrant for disbursement of an appropriation to an institution or corporation unless the Comptroller has on file an affidavit that complies with the requirements of this section. (b) An affidavit under this section shall state that the affiant personally knows that no money from State funds has been paid or promised to any legislative agent, lawyer, or lobbyist for any service to obtain the appropriation. (c) An affidavit under this section shall be signed by: (1) the president and the treasurer of the institution or corporation; or (2) if there is no president or treasurer, another officer or individual who has charge of and disburses the money of the institution or corporation.

Md. Code, State Finance and Procurement § 7-222

Unless a person and the Comptroller or any duly authorized agent or representative designated by the Comptroller have entered into an agreement for the payment of the person’s indebtedness to the State and the payments are current or unless, for good cause shown, the Board of Public Works grants a waiver, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not issue to a person a warrant for payment of a claim due to the person in the person’s own right, if the person owes $50 or more to the State, a unit of the State government, or any governmental entity under the control of the State.

Md. Code, State Finance and Procurement § 7-223

(a) (1) The Comptroller may not allow a warrant to be issued until a record is made in the books of the Office of the Comptroller. (2) The record shall: (i) state the amount of the warrant; (ii) state the account against which the warrant is charged; and (iii) identify: 1. the payee and the officer or unit of the State government that submitted the bill; or 2. for an advance, the officer or unit. (b) The Comptroller shall keep an abstract of each warrant.

Md. Code, State Finance and Procurement § 7-226

Subject to the limitations in this Part IV of this subtitle and any other law, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may disburse money from the State Treasury in accordance with a warrant.

Md. Code, State Finance and Procurement § 7-227

A check that is drawn to disburse money from the State Treasury shall be: (1) signed by the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer; and (2) countersigned by the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller.

Md. Code, State Finance and Procurement § 7-227.1

§7–227.1. In addition to disbursement of money by check authorized under § 7–227 of this subtitle, the Treasurer, upon warrant of the Comptroller, may disburse money by those means generally recognized and accepted by the banking industry for transferring funds. Such disbursements shall be made in accordance with regulations promulgated by the Treasurer, after concurrence by the Comptroller, in accordance with Title 10, Subtitle 1 of the State Government Article.

Md. Code, State Finance and Procurement § 7-228

The Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall keep a receipt for money disbursed from the State Treasury.

Md. Code, State Finance and Procurement § 7-229

(a) In this section, “Fund” means the Undeliverable Checks Fund. (b) There is an Undeliverable Checks Fund. (c) If a check that the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer issues is returned to the Comptroller as undeliverable, the Comptroller: (1) shall keep the check for a period of not more than 30 days; (2) during that period, shall try diligently to find the correct address of the payee and to deliver the check; and (3) if unable to deliver the check during that period, shall send the check to the Treasurer. (d) Whenever the Comptroller returns a check as undeliverable, the Treasurer shall: (1) cancel the check; and (2) request the Comptroller to credit the amount of the canceled check to the Fund. (e) On a warrant charged against the Fund, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may issue a check to replace a check canceled under this section. (f) As required by State or federal law, or as considered proper by the Treasurer, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall: (1) on a warrant charged against the Fund, disburse to the original source any money in the Fund required to be returned to the source; or (2) request the Comptroller to transfer any money in the Fund to another fund or account. (g) At the end of each fiscal year, the Treasurer: (1) shall identify the checks that have been credited to the Fund and remain unclaimed for 2 years; (2) determine a reasonable balance to retain in the Fund that will be needed to honor each replacement check that may be issued on a warrant charged against the Fund; and (3) request the Comptroller to transfer the balance in the Fund, after subtraction of the amount determined as provided in item (2) of this subsection, to the General Fund of the State. (h) Undeliverable checks credited to the Fund are not subject to Title 17 of the Commercial Law Article. (i) Notwithstanding Title 4, Subtitle 3, Part III of the General Provisions Article, at the end of each fiscal year, the Treasurer may electronically publish on the Treasurer’s website the names of payees of checks that have remained unclaimed for 2 years or more.

Md. Code, State Finance and Procurement § 7-230

(a) In this section, “Fund” means the Unpresented Checks Fund. (b) There is an Unpresented Checks Fund. (c) At the end of each fiscal year, the Treasurer shall: (1) identify each check that: (i) has been issued against the money of the State; and (ii) has remained unpresented for 2 years; and (2) request the Comptroller to credit the aggregate amount of the checks to the Fund. (d) At the end of each fiscal year, the Treasurer shall: (1) determine a reasonable minimum balance to retain in the Fund that will be needed to honor each check that is presented after its amount has been credited to the Fund; and (2) request the Comptroller to transfer the balance in the Fund to the General Fund of the State. (e) After the amount of a check has been credited to the Fund, on a warrant charged against the Fund, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may reissue a check that is presented for payment. (f) As required by State or federal law, or as considered proper by the Treasurer, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall: (1) void an unpresented check; and (2) request the Comptroller to transfer the amount of the voided check to: (i) the original source of the money; or (ii) another fund or account. (g) Unpresented checks credited to the Fund are not subject to Title 17 of the Commercial Law Article. (h) Notwithstanding Title 4, Subtitle 3, Part III of the General Provisions Article, at the end of each fiscal year, the Treasurer may electronically publish on the Treasurer’s Web site the names of payees of checks that have remained unpresented for 2 years or more.

Md. Code, State Finance and Procurement § 7-233

An officer or unit of the State government may not spend any part of a lump sum appropriation to the officer or unit until the Board of Public Works approves the schedule for apportionment and disbursement of the appropriation, as provided in § 7-207 of this subtitle.

Md. Code, State Finance and Procurement § 7-234

(a) An officer or unit of the State government may not spend money: (1) in excess of the total appropriation to the officer or unit; or (2) in excess of the amounts set forth in the current schedule for apportionment and disbursement of the appropriation. (b) (1) The State may not reimburse any expenditure to the extent that the expenditure violates subsection (a) of this section. (2) The State is not obligated to appropriate money to pay an expenditure that violates subsection (a) of this section. (c) Each employee or member of a unit and each officer of the State government who makes an expenditure that violates subsection (a) of this section is guilty of neglect of official duty and is subject to removal.

Md. Code, State Finance and Procurement § 7-235

(a) (1) Except as provided in paragraph (2) of this subsection, this section applies to: (i) each unit of the State government; and (ii) each unit that: 1. is created by general law; and 2. operates in 2 or more counties. (2) This section does not apply to a bicounty commission that county governing bodies appoint if those bodies also review the budget of the commission. (b) A unit may not adopt a rule or regulation or take any other administrative action that would result in expenditures in excess of the limitations in the State budget unless: (1) the General Assembly expressly approves the administrative action; (2) if the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates: (i) consult with the Joint Audit and Evaluation Committee; and (ii) after receiving the written advice of the Joint Audit and Evaluation Committee, jointly give written approval for the administrative action; or (3) the Governor declares, by proclamation, that the administrative action is necessary and a matter of emergency.

Md. Code, State Finance and Procurement § 7-236

(a) A unit of the Executive Branch of the State government may not create a permanent staff position that is in addition to the positions for which the State budget and its supporting documents specifically provide unless: (1) the Board of Public Works gives its approval; and (2) money for the position is available: (i) from the General Emergency Fund; or (ii) by budget amendment, from other special or federal funds. (b) On the 1st day of each regular session of the General Assembly, the Secretary of Budget and Management shall submit, subject to § 2-1257 of the State Government Article, to the appropriate committees of the General Assembly a report that: (1) states the total number of additional staff positions for which the Board of Public Works has given approval since the last regular session; and (2) for each position, states: (i) the type; (ii) the salary or wages; and (iii) the reasons for the approval. (c) The approval of a new position under this section is temporary. However, unless the General Assembly deletes the position from the budget bill, the position continues with the compensation provided in the State budget.

Md. Code, State Finance and Procurement § 7-237

(a) This section applies to any officer or agent of the State who is charged with: (1) construction, improvement, or maintenance of a building or work; or (2) management of or provision for a State institution. (b) An officer or agent to whom this section applies may not: (1) make or participate in making for any purpose a contract that purports to bind the State to pay any amount unless money has been appropriated for that purpose and remains unspent; (2) create a deficiency; or (3) incur a liability or spend money in excess of the applicable appropriation. (c) (1) The State is not liable on any contract made in violation of subsection (b) of this section. (2) An officer or agent who willfully or knowingly violates subsection (b)(1) of this section is personally liable on the contract. (d) If an officer or agent to whom this section applies is found guilty of willfully or knowingly violating any provision of subsection (b)(2) or (3) of this section: (1) the officer or agent is personally liable to the State for the amount of the deficiency or excess; and (2) the officer or agent is subject: (i) for a 1st offense, to a fine not exceeding $1,000 or imprisonment in the State Penitentiary not exceeding 2 years or both; and (ii) for a subsequent offense, to a fine not exceeding $2,000 or imprisonment in the State Penitentiary not exceeding 2 years or both.

Md. Code, State Finance and Procurement § 7-238

(a) (1) In this section the following words have the meanings indicated. (2) “Capital project” means a project for which funds are spent for: (i) the construction, reconstruction, or rehabilitation of a transportation facility, as defined in § 3-101(l) of the Transportation Article; or (ii) capital equipment as defined by the Secretary of Transportation. (3) “Major capital project” has the meaning stated in § 2-103.1 of the Transportation Article. (4) “Modal administration” has the meaning stated in § 1-101 of the Transportation Article. (b) Except for an emergency project, the Department of Transportation, including the Office of the Secretary and the modal administrations, may not use an appropriation for a major capital project for any capital project that was not included in the Consolidated Transportation Program when the appropriation was made.

Md. Code, State Finance and Procurement § 7-239

An officer or unit of State government may not use any part of an appropriation to settle a claim of unlawful harassment or discrimination, based on any characteristic protected by law, filed against an official or employee of State government in the individual’s personal capacity.

Md. Code, State Finance and Procurement § 7-301

(a) This section applies to the following entities: (1) an institution that receives an appropriation for operating expenses; and (2) an officer or unit of the State government that: (i) receives an appropriation for operating expenses; or (ii) has its expenses paid out of the fees collected by the officer or unit. (b) At the end of each fiscal year, each entity that, during that fiscal year, has received an appropriation for operating expenses shall give the Comptroller notice of: (1) the amount of the appropriation that is unspent; and (2) the amount of the unspent part that is needed to meet unpaid obligations incurred during the fiscal year.

Md. Code, State Finance and Procurement § 7-302

Except as otherwise provided by law, at the end of a fiscal year, the unspent balance of each appropriation that was made for that fiscal year to an officer or unit of the State government or to an institution reverts to the General Fund of the State.

Md. Code, State Finance and Procurement § 7-303

At the end of a fiscal year, the amount of the unspent part of an appropriation that is needed to meet unpaid obligations incurred during that fiscal year does not revert to the General Fund of the State.

Md. Code, State Finance and Procurement § 7-304

At the end of a fiscal year, the unspent part of an appropriation from a source that State law or an Act of Congress dedicates to a specific purpose does not revert to the General Fund of the State but reverts to the appropriate special fund.

Md. Code, State Finance and Procurement § 7-305

(a) In this section, “capital expenditure” includes an expenditure for: (1) acquisition of land, buildings, or equipment; or (2) new construction. (b) At the end of a fiscal year, the unspent part of an appropriation for a capital expenditure made through the State budget or a supplementary appropriation act other than an enabling act for a general obligation loan: (1) does not revert to the General Fund; and (2) with the approval of the Board of Public Works, may be carried in a capital account until it is spent in accordance with subsection (c) of this section or until the authority to spend the appropriation for a project terminates. (c) Money carried in a capital account under subsection (b) of this section may be spent only for a capital purpose. (d) Unless otherwise provided by law, the authority to spend the appropriation for a project terminates: (1) 2 years after the effective date of the appropriation act that authorizes the project, if: (i) evidence that a required matching fund will be provided has not been presented to the Board; or (ii) no part of the project is under contract and the Board has not encumbered money for any part of the project; (2) 1 year after the latest of abandonment, completion, or acceptance of the project; or (3) except to the extent the Board has encumbered money for a State project or program authorized by an appropriation act, 7 years after the effective date of the appropriation act that authorized the project unless: (i) the appropriation act provides otherwise; or (ii) in an emergency, the Board unanimously grants a temporary exception for 1 year.

Md. Code, State Finance and Procurement § 7-306

(a) This section applies only to St. Mary’s College of Maryland. (b) At the end of a fiscal year, the unencumbered balance of each appropriation from the General Fund, including an amount received as reimbursement of statewide indirect costs, to the Board or any of these institutions reverts to the General Fund of the State. (c) The unencumbered balance of any other appropriation to the Board or these institutions: (1) does not revert to the General Fund of the State; (2) shall be available as provided in the State budget or through an approved budget amendment; and (3) shall be reported by the Board or institution to the State Comptroller at the end of each fiscal year.

Md. Code, State Finance and Procurement § 7-307

(a) Unless the State budget expressly provides otherwise, whenever a new or substantially renovated facility does not begin operation on the date that was used to determine the amount of the appropriation to the facility in the State budget, the part of the appropriation for operating expenses that is not needed to provide services to the same clients, students, patients, or incarcerated individuals shall revert to the General Fund or to an appropriate special fund and may not be spent for any other purpose or transferred by a budget amendment. (b) If a facility under this section begins to operate after the date on which the appropriation was based but in the same fiscal year, the Department of Budget and Management shall determine, on a pro rata basis, the amount of the appropriation for operating expenses that shall revert to the General Fund.

Md. Code, State Finance and Procurement § 7-308

The Secretary of Budget and Management shall give each member of the General Assembly notice of: (1) the total reversions at the end of each fiscal year; and (2) any revision of an estimated reversion from an appropriation in the State budget for the current fiscal year.

Md. Code, State Finance and Procurement § 7-309

(a) There is a State Reserve Fund. (b) The State Reserve Fund comprises: (1) the Dedicated Purpose Account; (2) the Revenue Stabilization Account; (3) the Economic Development Opportunities Program Account; and (4) the Catastrophic Event Account.

Md. Code, State Finance and Procurement § 7-310

(a) In this section, “Account” means the Dedicated Purpose Account. (b) The Dedicated Purpose Account is established: (1) to retain appropriations for major, multi-year expenditures where the magnitude and timing of cash needs are uncertain; and (2) beginning in fiscal year 1996, to meet specific expenditure requirements. (c) The Governor may provide an appropriation in the budget bill to the Account for a specific purpose or purposes. (d) For each appropriation to the Account, the Governor may: (1) include the funds in the State budget subject to appropriation by the General Assembly; or (2) transfer the funds by budget amendment from the Account to the expenditure account of the appropriate unit of State government only after the proposed budget amendment has been: (i) submitted to the Senate Budget and Taxation Committee and the House Appropriations Committee of the General Assembly; and (ii) subject to a 45–day review and comment period by the Legislative Policy Committee. (e) The Account is a continuing, nonlapsing fund which is not subject to § 7-302 of this subtitle. (f) (1) The unspent balance of an appropriation to the Account reverts to the Revenue Stabilization Account 4 years after the end of the fiscal year for which the appropriation was made. (2) If the Governor determines that certain funds in the Account are no longer needed for the purpose for which they were originally appropriated, those funds may be transferred by budget amendment to the Revenue Stabilization Account after the proposed budget amendment has been: (i) submitted to the Senate Budget and Taxation Committee and the House Appropriations Committee of the General Assembly; and (ii) approved by the Legislative Policy Committee.

Md. Code, State Finance and Procurement § 7-310.1

§7–310.1. (a) Any money received by the State or otherwise subject to the direction or control of a State official, as a result of a settlement, judgment, or consent decree made or entered into after January 1, 2012: (1) shall be deposited in the State treasury; and (2) except for funds designated as restitution: (i) shall be expended only as authorized in the State budget bill as enacted; and (ii) may be transferred by budget amendment. (b) In negotiating any State payment under any national or multistate settlement, judgment, or consent decree, a State official may recommend restrictions on the use of that State payment but shall also request that the settlement, judgment, or consent decree also provide that the funds may be used for any public purpose, to the extent that doing so is not inconsistent with the State or its citizens securing the maximum benefit from the settlement, judgment, or consent decree.

Md. Code, State Finance and Procurement § 7-311

(a) (1) In this section the following words have the meanings indicated. (2) “Account” means the Revenue Stabilization Account. (3) “Estimated General Fund revenues” means the estimated General Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates submitted to the Governor under § 6–106 of this article in December preceding the fiscal year. (4) “Unappropriated General Fund surplus” does not include the amount of nonwithholding income tax revenues that exceed the capped estimate determined under § 6–104(e) of this article. (b) (1) The Revenue Stabilization Account is established to retain State revenues for future needs and reduce the need for future tax increases by moderating revenue growth. (2) It is the goal of the State that 10% of estimated General Fund revenues in each fiscal year be retained in the Account. (c) The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. (d) The Account consists of: (1) money appropriated in the State budget to the Account; (2) money distributed to the Account by the State Comptroller as provided in § 7–329 of this subtitle; and (3) interest or other income earned from the investment of any portion of this Account or any other account in the State Reserve Fund. (e) (1) Except as provided in subsection (f) of this section, for each fiscal year, except fiscal year 2026: (i) if the Account balance is below 3% of the estimated General Fund revenues for that fiscal year, the Governor shall include in the budget bill an appropriation to the Account equal to at least $100,000,000; and (ii) if the Account balance is at least 3% but less than 7.5% of the estimated General Fund revenues for that fiscal year, the Governor shall include in the budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or whatever amount is required for the Account balance to exceed 7.5% of the estimated General Fund revenues for that fiscal year. (2) At the end of fiscal year 2020 and each fiscal year thereafter, if the amount of nonwithholding income tax revenues exceeds the capped estimate determined under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in § 7–329(c) and (d) of this subtitle. (f) (1) The appropriations required by subsection (e)(1) of this section are not required when the Account balance exceeds 7.5% of the estimated General Fund revenues. (2) The distributions required by subsection (e)(2) of this section are not required when the Account balance exceeds 10% of the estimated General Fund revenues for that fiscal year. (g) (1) Unless the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, if authorized by an act of the General Assembly or specifically authorized in the State budget bill as enacted, the Governor may transfer funds from the Account to General Fund revenues as necessary to support the operation of State government on a temporary basis. (2) If the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, the Governor may transfer funds from the Account to General Fund revenues only if the transfer is authorized by an act of the General Assembly other than the State budget bill. (h) If the budget bill as submitted to the General Assembly includes a transfer of funds from the Account pursuant to subsection (g) of this section, the budget bill as enacted by the General Assembly may provide for a reduction of the amount of the transfer from the Account by an amount up to the amount of the reductions made by the General Assembly in the General Fund appropriations. (i) Funds of the Account may only be transferred from the Account as provided in this section and are not subject to transfer by budget amendment. (j) (1) Except as provided in paragraph (2) of this subsection, for fiscal years 2007 through 2023, the Governor shall include in the budget bill an appropriation: (i) for fiscal year 2017, to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; (ii) for fiscal year 2020: 1. to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and 2. to the Account equal to the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000, less the amount of the appropriation under item 1 of this item; (iii) for fiscal year 2021, to the Account in the amount of $291,439,149; (iv) except as provided in item (v) of this paragraph, for fiscal year 2022 and each fiscal year thereafter: 1. to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; 2. to the Postretirement Health Benefits Trust Fund established under § 34–101 of the State Personnel and Pensions Article an amount, up to a maximum of $25,000,000, that is equal to one–quarter of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and 3. to the Account equal to the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; and (v) for fiscal year 2024: 1. to the Maryland Equity Investment Fund established under § 10–487 of the Economic Development Article an amount, up to $10,000,000, that is equal to 10% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; 2. to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $15,000,000, that is equal to 15% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and 3. to the Postretirement Health Benefits Trust Fund established under § 34–101 of the State Personnel and Pensions Article an amount, up to a maximum of $25,000,000, that is equal to 25% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000. (2) The appropriation required under this subsection for any fiscal year may be reduced by the amount of any appropriation to the Account required to be included for that fiscal year under subsection (e) of this section.

Md. Code, State Finance and Procurement § 7-312

(a) There is a Maryland Stadium Facilities Fund. (b) The Fund is: (1) a special, nonlapsing fund that consists of money that may be appropriated, transferred, credited, or paid to it from any source; and (2) not subject to § 7–302 of this subtitle. (c) The Treasurer shall separately hold, and the Comptroller shall account for, the Fund. (d) (1) The Fund shall be invested and reinvested in the same manner as other State funds. (2) Any investment earnings shall be retained to the credit of the Fund. (e) Money credited to the Maryland Stadium Facilities Fund may be used, in accordance with approved comprehensive financing plans, to: (1) pay rent to the Maryland Stadium Authority; (2) with the approval of the Board of Public Works, make grants or loans, not exceeding $1 million in any fiscal year, to the Authority for its corporate purposes; (3) with the approval of the Board of Public Works, finance capital construction in lieu of issuing bonds; or (4) financially support, through equity investment, loan, guarantee, or otherwise, full or partial private financing of any element of the facility. (f) (1) At the end of the fiscal year, a transfer to the Dedicated Purpose Fund of the State Reserve Fund shall be made to the extent that the balance of revenues in the Fund exceeds: (i) $24 million; and (ii) the Debt Service Reserve Fund being held by or on behalf of the Maryland Stadium Authority for payment of debt service on revenue bonds issued by the Authority. (2) (i) Any revenues transferred to the State Reserve Fund in accordance with paragraph (1) of this subsection shall be dedicated for use by the Maryland Stadium Authority and may be transferred from the State Reserve Fund by an appropriation in the budget bill or, with the approval of the Legislative Policy Committee, by budget amendment. (ii) The unspent balance of any revenues for the Maryland Stadium Authority in the State Reserve Fund shall revert to the General Fund 2 years after the end of the fiscal year in which the transfer was made.

Md. Code, State Finance and Procurement § 7-314

(a) (1) In this section the following words have the meanings indicated. (2) “Account” means the Economic Development Opportunities Program Account. (3) “Executive agency” means an executive department or agency in the Executive Branch of State government, including all offices of the Executive Department or agency directly responsible to the Governor. (4) “Extraordinary economic development opportunity” means the: (i) attraction of a new private sector enterprise to the State or retention or expansion of an existing private sector enterprise in the State that: 1. maintains a strong financial condition and minimal credit risk profile; 2. is capable of accessing alternative sources of financing through financial institutions or capital markets; 3. is consistent with the strategic plan of the State for economic development; 4. creates or retains substantial employment, particularly in areas of high unemployment; and 5. invests in capital at a level equal to five times the value of the incentive offered; (ii) retention or expansion of an existing public institution, private institution, or federal research and development institute that: 1. is consistent with the strategic plan of the State for economic development; and 2. creates or retains substantial employment, particularly in areas of high unemployment; or (iii) establishment or attraction of a public institution, a private institution, or a federal research and development institute new to the State that: 1. is consistent with the strategic plan of the State for economic development; and 2. creates or retains substantial employment, particularly in areas of high unemployment. (5) (i) “Performance requirement” means a contractual agreement between an executive agency and an Account recipient that requires the Account recipient to meet minimum economic development outcomes in exchange for a grant or a loan under this section. (ii) “Performance requirement” includes claw–back, penalty, rescission, and recalibration clauses that utilize job creation, capital investment, and other measures of economic development. (6) “Private sector enterprise” means any commercial, industrial, educational, or research organization which is not a part of or controlled by a federal, State, or local government agency. (b) Subject to the provisions of this section, the Economic Development Opportunities Program Account is established to maximize extraordinary economic development opportunities. (c) Subject to subsection (r) of this section, the Governor may provide an appropriation in the budget bill to the Account for a specific or general purpose or purposes. (d) After notice to and approval by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Economic Development Opportunities Program Account to the expenditure account of the appropriate executive agency. (e) (1) The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. (2) The Treasurer shall separately hold, and the Comptroller shall account for, the Account. (3) The Account shall be invested and reinvested in the same manner as other State funds. (4) Except as provided in paragraph (5) of this subsection, any investment earnings shall be subject to § 7–311(d) of this subtitle. (5) Any investment earnings on money transferred from the Account to a second continuing, nonlapsing fund may be retained to the credit of the second fund. (f) (1) Money appropriated or credited to the Account does not revert to the Revenue Stabilization Account. (2) Except as provided in paragraph (3) of this subsection, repayments of principal or interest on any loan from the Account shall be retained to the credit of the Account. (3) Repayments of principal or interest on any loan made from money transferred from the Account to a second continuing, nonlapsing fund may be retained to the credit of the second fund. (g) (1) The Department of Commerce shall include the following information in the report that is required under § 2.5–109 of the Economic Development Article: (i) the financial status of the program and a summary of its operations for the preceding fiscal year; (ii) for the previous 3 fiscal years, the status of Account disbursements for economic development projects reviewed by the Legislative Policy Committee under this section; (iii) for the previous 3 fiscal years, the status of job creation, capital investment, and other measures of economic development for each economic development project reviewed by the Legislative Policy Committee under this section; (iv) a list of guidelines for the kinds of performance requirements that may be negotiated with the loan or grant applicant; and (v) an explanation if the job creation, capital investment, and other measures of economic development described in items (i) through (iii) of this paragraph are lower than negotiated according to subsection (h)(1) of this section. (2) Upon receipt of the information that is required to be reported under this subsection, the Legislative Policy Committee shall have 60 days to review and comment on the information provided by the Department of Commerce under paragraph (1) of this subsection, during which time the Department of Commerce shall provide any additional information regarding the Account as requested by the Legislative Policy Committee. (h) (1) Except as provided in paragraph (2) of this subsection and in subsection (i) of this section, any funds transferred from the Economic Development Opportunities Program Account shall be used only for extraordinary economic development opportunities that: (i) meet the criteria provided in this section; (ii) include performance requirements; and (iii) in addition to the performance requirements under item (ii) of this paragraph, include a performance requirement that utilizes a claw–back provision. (2) The Account may pay an executive agency for administrative, legal, or actuarial expenses incurred by the agency in connection with transactions funded by transfers of money to the agency from the Account. (i) The Legislative Policy Committee may approve an economic development opportunity that is not an extraordinary economic development opportunity if the executive agency requesting the transfer of funds offers a detailed justification for the exception. The Legislative Policy Committee shall give particular consideration to an exception that would provide a significant economic development opportunity for an area of the State that has a relatively high unemployment rate or relatively low per capita income. (j) (1) The Department of Commerce may modify the guidelines for the kinds of performance requirements that may be negotiated with the loan or grant as needed, upon approval of the Legislative Policy Committee. (2) An executive agency may depart from these guidelines as needed, upon approval of the Legislative Policy Committee. (k) Subject to the provisions of this subtitle, funds transferred from the Economic Development Opportunities Program Account, to an executive agency, may be loaned, granted, or invested for: (1) assisting in the retention or expansion of existing private sector enterprises, public or private institutions, or federal research and development institutes; (2) assisting in the establishment or attraction of private sector enterprises, public or private institutions, or federal research and development institutes new to this State; or (3) providing assistance where existing State or local programs lack sufficient resources or are constrained by timing or program design from being utilized. (l) Upon submission to the Legislative Policy Committee of a proposed budget amendment to transfer money from the Account, the Governor shall provide, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee: (1) a detailed description of: (i) the proposed use of the funds; (ii) the manner in which the proposed use meets the criteria as set forth in this section; (iii) the degree to which the proposed use of funds will advance statewide or local economic development strategies and objectives; and (iv) the degree to which available sources of federal, State, local, and private financial support have been sought and will be utilized; (2) the terms, conditions, and performance requirements of any grant or loan for which the funds are to be used; (3) a comprehensive economic analysis of the proposed use of the funds which estimates: (i) the economic impact to the State and the local jurisdictions affected; (ii) a minimum level of net economic benefits to the public sector; (iii) the number of jobs expected to be created as a result of the proposed economic development project and the percentage of those jobs that are expected to be held by Maryland residents; (iv) the wage rates and benefit packages for the jobs expected to be created as a result of the proposed economic development project; and (v) any other appropriate financial or economic benefits; (4) any other analysis or information that is requested by the Legislative Policy Committee; and (5) the date on which the executive agency expects to disburse the funds to the proposed recipient. (m) If an executive agency fails to disburse transferred funds to a recipient within 1 year after the expected disbursement date presented to the Legislative Policy Committee under subsection (l) of this section, the funds will revert back to the Account and the Governor shall: (1) resubmit the proposed budget amendment to transfer money from the Account to the Legislative Policy Committee; and (2) provide the Legislative Policy Committee with the information required under subsection (l) of this section. (n) Funds appropriated to the Economic Development Opportunities Program Account may not be loaned, granted, or invested for: (1) substituting for funds from other State or local programs for which a project may be eligible and sufficient resources exist; (2) projects which are not likely to attract or retain employment opportunities; (3) funding projects located outside the State; (4) construction or land acquisition by the Maryland Stadium Authority; or (5) funding for any sports activity or facility. (o) (1) This subsection does not apply to an economic development opportunity located in an area designated as a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County. (2) In the case of an economic development opportunity located outside a priority funding area as established under Title 5, Subtitle 7B of this article, the Department shall first comply with the provisions of that subtitle before making a request for approval by the Legislative Policy Committee under this section. (p) An executive agency may approve changes to a transaction approved by the Legislative Policy Committee as long as the changes do not materially and adversely affect the overall position of the executive agency in the transaction or the economic development benefits to be derived by the State in the transaction. (q) (1) (i) In this subsection the following words have the meanings indicated. (ii) “Financial assistance” means a grant, loan, or investment provided under this subsection that exceeds $100,000. (iii) “Political subdivision” includes an agency or other instrumentality of the political subdivision. (2) This subsection does not apply to financial assistance used solely for the purpose of acquiring real property or structures on real property. (3) With respect to financial assistance under this section to a political subdivision: (i) if the political subdivision has a program for promoting procurement opportunities among minority businesses that is acceptable to the Department of Commerce, the political subdivision shall apply the requirements of that program to the procurement of goods or services made with the proceeds from the financial assistance; but (ii) if the political subdivision does not have a program that is acceptable to the Department of Commerce under item (i) of this paragraph, the political subdivision is subject to paragraph (4) of this subsection. (4) (i) In this paragraph, “minority business enterprise” has the meaning stated in § 14–301 of this article. (ii) With respect to financial assistance under this section to an entity other than a political subdivision, the entity shall agree to include in the agreement providing the financial assistance a provision acceptable to the Department of Commerce that would encourage the procurement from minority business enterprises of goods or services purchased with the proceeds from the financial assistance. (iii) In negotiating the provision required under subparagraph (ii) of this paragraph, the Department of Commerce shall take into account relevant factors, including: 1. the intended use of the proceeds from the financial assistance; and 2. the feasibility of obtaining the required goods or services from minority business enterprises. (5) The Department of Commerce may require that a recipient of financial assistance under this section submit to the Department of Commerce a list, or an updated list, of the minority business enterprises from which goods or services were procured and the nature and dollar amount of the goods or services. (r) For fiscal years 2019 through 2021, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Account to be used by the Department of Commerce to provide conditional loans or grants to companies that meet the following criteria: (1) construction of company headquarters in the State with capital expenditures of at least $500,000,000; and (2) retention of company headquarters in the State with at least 3,250 eligible employees, consistent with a letter of intent entered into with the Department of Commerce in October 2016.

Md. Code, State Finance and Procurement § 7-315

(a) There is an Energy Overcharge Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to the provisions of § 7–302 of this subtitle. (2) There shall be credited to the Fund: (i) all federal fund revenues consisting of refunds received by the State from any source as a direct or indirect result of litigation or administrative proceedings prosecuted by the U.S. Department of Energy to redress violations of federal petroleum pricing regulations under the Emergency Petroleum Allocation Act, 15 U.S.C. §§ 751 through 756, and the Energy Policy and Conservation Act, 15 U.S.C. §§ 757 through 760H; and (ii) all special fund revenues received and accepted as a gift under § 2–201 of this article that are expressly given for the purpose of energy assistance or weatherization for individuals in this State. (3) Revenues received by the State as a result of claims representing purchases by the State are excluded from the Fund. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by: (1) an appropriation in the annual State budget; or (2) a budget amendment in accordance with § 7–209 of this title, provided that any budget amendment shall be submitted to and approved by the Legislative Policy Committee prior to the expenditure or obligation of funds. (e) In accordance with the provisions of subsection (f) of this section, the Director of the Maryland Energy Administration or the designee of the Director shall: (1) administer the Fund; (2) develop plans, prepare and submit proposals to the Governor for Fund use, and undertake any action that is necessary to obtain for the Fund all energy overcharge refunds and judgment awards to which the citizens of the State have a legal entitlement; (3) assess and determine the respective needs of the citizens of the State and develop recommendations for the allocation and disbursement of funds in accordance with those needs pursuant to the provisions of subsection (f) of this section; (4) conduct public hearings at least twice a year at times and places the Director or the designee of the Director determines; and (5) perform other duties as may be assigned by the Governor. (f) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; or (ii) required as a condition of the acceptance of funds. (2) The Fund shall be expended: (i) for emergency energy assistance provided under § 5–5A–07(a) of the Human Services Article; (ii) for energy assistance programs provided under § 5–5A–07(b) of the Human Services Article; (iii) for energy assistance and weatherization programs provided under § 4–211(c) of the Housing and Community Development Article and Title 9, Subtitle 20 of the State Government Article; (iv) for energy extension service and low–income home–energy programs provided under 42 U.S.C. §§ 7001 through 7011 and 8621 through 8629; (v) for other energy assistance or weatherization programs meeting the federal restitutive objectives governing the distribution of overcharge refunds to the states; (vi) for any other program within the definition of “energy conservation programs” as provided by Pub. L. No. 97–377, 96 Stat. 1830, § 155 (1982) and subsequent amendments, including the State Energy Efficiency Programs Improvement Act of 1990, Pub. Law No. 101–440; (vii) for energy efficiency and economic development loans provided under Title 9, Subtitle 20A of the State Government Article; or (viii) for any other purpose required as a condition of their acceptance. (3) In addition to the provisions of paragraph (2) of this subsection, priority shall be given to the energy assistance and weatherization programs. (4) Disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for such programs under federal or State law.

Md. Code, State Finance and Procurement § 7-317

§7–317. IN EFFECT (a) There is a Cigarette Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (3) There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; (ii) required as a condition of the acceptance of funds; or (iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. (2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. (f) (1) The Cigarette Restitution Fund shall be used to fund: (i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article; (ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article; (iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article; (iv) for each of fiscal years 2025 through 2029, the Maryland Community Health Resources Commission Fund, in accordance with subsection (g) of this section; (v) the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health – General Article; and (vi) other programs that serve the following purposes: 1. reduction of the use of tobacco products by individuals under the age of 21 years; 2. implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; 3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 4. smoking cessation programs; 5. enforcement of the laws regarding tobacco sales; 6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article; 7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; 9. substance abuse treatment and prevention programs; and 10. any other public purpose. (2) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill. (g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. (2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. (3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. (4) (i) This paragraph does not apply in fiscal year 2026. (ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. (5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. (6) For each of fiscal years 2025 through 2029, the Governor shall include in the annual budget bill an appropriation of $8,000,000 to the Maryland Community Health Resources Commission Fund. (7) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. (h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. (2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–126 of the Education Article. (ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. (i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. (2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. (j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure. §7–317. // EFFECTIVE JUNE 30, 2029 PER CHAPTER 644 OF 2023 // // EFFECTIVE UNTIL JUNE 30, 2031 PER CHAPTERS 812 AND 813 OF 2024 // (a) There is a Cigarette Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (3) There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; (ii) required as a condition of the acceptance of funds; or (iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. (2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. (f) (1) The Cigarette Restitution Fund shall be used to fund: (i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article; (ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article; (iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article; (iv) the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health – General Article; and (v) other programs that serve the following purposes: 1. reduction of the use of tobacco products by individuals under the age of 21 years; 2. implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; 3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 4. smoking cessation programs; 5. enforcement of the laws regarding tobacco sales; 6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article; 7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; 9. substance abuse treatment and prevention programs; and 10. any other public purpose. (2) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill. (g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. (2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. (3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. (4) (i) This paragraph does not apply in fiscal year 2026. (ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. (5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. (6) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. (h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. (2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–126 of the Education Article. (ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. (i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. (2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. (j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure. §7–317. // EFFECTIVE JUNE 30, 2031 PER CHAPTERS 812 AND 813 OF 2024 // (a) There is a Cigarette Restitution Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (3) There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; (ii) required as a condition of the acceptance of funds; or (iii) determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. (2) Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. (f) (1) The Cigarette Restitution Fund shall be used to fund: (i) the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article; (ii) the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article; (iii) the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article; and (iv) other programs that serve the following purposes: 1. reduction of the use of tobacco products by individuals under the age of 21 years; 2. implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; 3. public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 4. smoking cessation programs; 5. enforcement of the laws regarding tobacco sales; 6. the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article; 7. primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; 8. prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; 9. substance abuse treatment and prevention programs; and 10. any other public purpose. (2) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill. (g) (1) Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. (2) The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. (3) For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. (4) (i) This paragraph does not apply in fiscal year 2026. (ii) For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. (5) For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. (6) Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. (h) (1) The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. (2) (i) Except as provided in subparagraph (ii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–126 of the Education Article. (ii) For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. (i) (1) The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. (2) Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. (j) For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure.

Md. Code, State Finance and Procurement § 7-324

(a) (1) In this section the following words have the meanings indicated. (2) “Account” means the Catastrophic Event Account. (3) “Fund” means the State Disaster Recovery Fund established under § 14–110.5 of the Public Safety Article. (b) Subject to the provisions of this section, the Account is established to enable the State or a local government to respond without undue delay to: (1) a natural disaster or other catastrophic situation; (2) federal employee financial hardship from a full or partial federal government shutdown due to a lapse in federal appropriations that cannot be taken care of within the resources of existing appropriations; or (3) former federal employee financial hardship from the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances. (c) The Governor may provide an appropriation in the budget bill to the Account. (d) (1) Subject to paragraph (2) of this subsection, after a 10–day review and comment period by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Account to: (i) the expenditure accounts of the appropriate unit of State government or unit of local government; or (ii) subject to subsection (e)(2)(ii) of this section, the State Disaster Recovery Fund. (2) If the federal government is in a full or partial shutdown due to a lapse in appropriations, after a 2–day review and comment period by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Account to the Federal Government Employee Assistance Loan Fund established under § 7–327 of this subtitle. (e) Funds appropriated to the Catastrophic Event Account: (1) may not be used to offset operating deficiencies in regular programs of State government; but (2) (i) may be expended to assist a unit of State government or unit of local government in funding costs in connection with: 1. a natural disaster; 2. a catastrophic situation; 3. a full or partial federal government shutdown due to a lapse in appropriations; or 4. a closure, relocation, or mass layoff of a unit of the federal government; and (ii) may be transferred to the State Disaster Recovery Fund if: 1. the balance of the Fund has been depleted due to use or transfer; or 2. the estimated costs for providing adequate disaster relief for a natural disaster or catastrophic situation are in excess of the Fund’s balance. (f) (1) The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. (2) The Treasurer shall separately hold, and the Comptroller shall account for, the Account. (3) The Account shall be invested and reinvested in the same manner as other State funds. (4) Any investment earnings shall be subject to § 7–311(d) of this subtitle. (g) Money appropriated to the Account does not revert to the Revenue Stabilization Account.

Md. Code, State Finance and Procurement § 7-325

(a) (1) In this section the following words have the meanings indicated. (2) “Council” means the Maryland State Arts Council. (3) “General fund growth adjustment” means the percentage by which the projected total General Fund revenues for the upcoming fiscal year exceed the revised estimate of total General Fund revenues for the current fiscal year, as contained in the report of estimated State revenues submitted by the Board of Revenue Estimates to the Governor under § 6–106(b) of this article. (b) (1) For fiscal years 2013 through 2024, the Governor shall include in the annual budget bill a General Fund appropriation for the Council in an amount not less than the amount of the General Fund appropriation for the Council for the immediately preceding fiscal year increased by the general fund growth adjustment. (2) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill a General Fund appropriation for the Council in an amount not less than the result of the following calculation: (i) any funds distributed to the Council in the immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article increased by the general fund growth adjustment; plus (ii) the amount of the General Fund appropriation for the Council for the immediately preceding fiscal year increased by the general fund growth adjustment; minus (iii) the amount of funds distributed to the Council in the immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article. (c) The Legislative Auditor has the authority to conduct a review or audit of any recipient of a grant from the Council.

Md. Code, State Finance and Procurement § 7-326

(a) In this section, “Fund” means the Public School Construction Fund. (b) The Fund is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. (c) The Fund consists of money transferred by the Camden Yards Financing Funds as required under § 10–652 of the Economic Development Article. (d) The Treasurer shall separately hold, and the Comptroller shall account for, the Fund. (e) Subject to the approval of the Interagency Commission on School Construction, money credited to the Fund shall be used only for public school construction projects and public school capital improvements consistent with the provisions of Title 5, Subtitle 3 of the Education Article. (f) Money from the Fund may only be transferred from the Fund to the extent authorized by an appropriation as enacted in the annual State budget bill and is not subject to transfer by budget amendment. (g) It is the intent of the General Assembly that the funds provided for school construction in the Fund be in addition to and not in substitution of general funds or any other funds provided in the Governor’s allowance for public school construction.

Md. Code, State Finance and Procurement § 7-327

(a) In this section, “Fund” means the Federal Government Employee Assistance Loan Fund. (b) There is a Federal Government Employee Assistance Loan Fund. (c) The purpose of the Fund is to provide loans to State residents who are: (1) employees of the federal government, required to report to work, and who are not being paid because of a full or partial federal government shutdown due to a lapse in appropriations after January 1, 2025; or (2) in the immediately preceding 6 months, and on or after January 1, 2025, were terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the employees’ control, and who are experiencing financial hardship as determined by the Maryland Department of Labor. (d) The Maryland Department of Labor shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle that shall be available in perpetuity for the purpose of providing loans in accordance with the provisions of this section. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (3) The Maryland Department of Labor is authorized to disclose information to third–party vendors to verify federal employment for the purpose of assisting with the implementation of the Fund, subject to privacy considerations. (f) The Fund consists of: (1) money appropriated in the State budget to the Fund; (2) any interest earnings of the Fund; (3) money transferred from the Catastrophic Event Account in accordance with § 7–324 of this subtitle; (4) repayments on loans made from the Fund; and (5) any other money from any other source accepted for the benefit of the Fund. (g) The Fund shall be used only to provide no–interest loans to State residents who are: (1) employees of the federal government, required to report to work, and who are not being paid because of a full or partial federal government shutdown due to a lapse in appropriations after January 1, 2025; or (2) in the immediately preceding 6 months, and on or after January 1, 2025, were terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the employees’ control, and who are experiencing financial hardship as determined by the Maryland Department of Labor. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (i) (1) Subject to paragraph (2) of this subsection, the Maryland Department of Labor shall establish procedures and eligibility criteria for loans from the Fund. (2) The eligibility criteria shall include that: (i) 1. the federal government is in a full or partial shutdown due to a lapse in appropriations; or 2. a unit of the federal government has been closed, been relocated, experienced mass layoffs, or experienced other similar circumstances; and (ii) an individual applying for a loan from the Fund is, a resident of the State who is: 1. an employee of the federal government, required to report to work, and not being paid because of the full or partial federal government shutdown due to the lapse in appropriations after January 1, 2025; or 2. a former employee of the federal government who, within the 6 months immediately preceding the date of the loan application, and on or after January 1, 2025, was terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the individual’s control, and who is experiencing financial hardship as determined by the Maryland Department of Labor. (3) The Maryland Department of Labor may establish other criteria to best assist federal employees facing financial hardship. (4) The procedures shall include: (i) application procedures; (ii) payment procedures from the Fund; and (iii) if repayment is required, repayment procedures, including timelines, for an individual to repay a loan from the Fund. (5) The Maryland Department of Labor may forgive a loan provided under this section.

Md. Code, State Finance and Procurement § 7-328

(a) There is a Mortgage Loan Servicing Practices Settlement Fund. (b) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) Except for restitution and funds designated as fines, civil penalties, and money that are otherwise required under Maryland law, a judgment, or a settlement agreement to be paid into the General Fund of the State, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with bank mortgage servicers or any other person in the mortgage servicing industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. (c) The Treasurer shall: (1) invest and reinvest the Fund in the same manner as other State funds; and (2) credit any investment earnings to the Fund. (d) Expenditures from the Fund shall be made by an appropriation in the annual State budget or may be transferred by budget amendment. (e) (1) The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: (i) expressly provided by statute; or (ii) required as a condition of the acceptance of funds. (2) It is the intent of the General Assembly that disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used as provided in this section solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law. (f) (1) The Mortgage Loan Servicing Practices Settlement Fund shall be used for housing and foreclosure–relief purposes and for related investigation and enforcement activities, including: (i) the provision of housing counseling; (ii) legal assistance related to foreclosure, evictions, and housing activities; (iii) criminal or civil investigations of fraud related to housing and the securitization of mortgage loans; (iv) relevant enforcement activities; (v) foreclosure prevention, remediation, and restitution; (vi) programs to address community blight; (vii) programs reasonably targeted to benefit persons harmed by mortgage fraud; and (viii) any other public purpose reasonably related to housing and foreclosure relief. (2) The Mortgage Loan Servicing Practices Settlement Fund may be used to provide legal assistance related to any type of legal proceeding. (3) The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill. (g) For each program, project, or activity under subsection (f)(1) of this section for which funds are appropriated, the Governor shall: (1) develop appropriate statements of vision, mission, key goals, objectives, and performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and (2) on or before October 1 of each year until 2016, report, subject to § 2–1257 of the State Government Article, to the General Assembly on: (i) total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and (ii) the specific outcomes or public benefits resulting from that expenditure.

Md. Code, State Finance and Procurement § 7-329

(a) (1) In this section the following words have the meanings indicated. (2) “Fund” means the Fiscal Responsibility Fund established under § 7–330 of this subtitle. (3) (i) “Nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article. (ii) “Nonwithholding income tax revenues” does not include: 1. the county share of income tax quarterly estimated and final payments with returns made by individuals; 2. income tax payments made by corporations; 3. income tax refunds paid to individuals or corporations; or 4. income tax withholding. (b) At the end of fiscal year 2020, and each fiscal year thereafter, if General Fund revenues for the fiscal year are less than the March estimate of the Board of Revenue Estimates, the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article shall be applied to close the gap in revenues for that fiscal year. (b–1) At the end of fiscal year 2022 only, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount necessary to close the gap in revenues under subsection (b) of this section, the State Comptroller shall distribute the remainder to the Fund for the purpose of providing, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859. (c) Except as provided in subsection (b–1) of this section, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount necessary to close the gap in revenues under subsection (b) of this section, and if the balance of the Revenue Stabilization Account under § 7–311 of this subtitle is less than 6% of the estimated General Fund revenues for that fiscal year, the State Comptroller shall distribute to the Revenue Stabilization Account the lesser of: (1) the remaining balance of nonwithholding income tax revenues in excess of the capped estimate determined under § 6–104(e) of this article; or (2) the amount required for the Revenue Stabilization Account balance to equal 6% of the estimated General Fund revenues for that fiscal year. (d) Except as provided in subsection (b–1) of this section, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount the State Comptroller is required to distribute to the Revenue Stabilization Account under subsection (c) of this section, the State Comptroller shall distribute: (1) subject to subsection (e) of this section, 50% of the remaining amount to the Revenue Stabilization Account; and (2) the remainder to the Fund. (e) The distribution to the Revenue Stabilization Account under subsection (d)(1) of this section does not apply if the amount in the Revenue Stabilization Account exceeds 10% of General Fund revenues.

Md. Code, State Finance and Procurement § 7-330

(a) (1) In this section the following words have the meanings indicated. (2) “Fund” means the Fiscal Responsibility Fund. (3) (i) “Nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article. (ii) “Nonwithholding income tax revenues” does not include: 1. the county share of income tax quarterly estimated and final payments with returns made by individuals; 2. income tax payments made by corporations; 3. income tax refunds paid to individuals or corporations; or 4. income tax withholding. (b) There is a Fiscal Responsibility Fund. (c) The purpose of the Fund is to retain the amount of nonwithholding income tax revenues deposited to the Fund in accordance with § 7–329(d)(2) of this subtitle until the revenues are appropriated in the State budget. (d) The State Comptroller shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) The State Treasurer shall hold the Fund separately, and the State Comptroller shall account for the Fund. (f) The Fund consists of nonwithholding income tax revenues that exceed the capped estimate determined under § 6–104(e) of this article deposited into the Fund by the State Comptroller under § 7–329(d)(2) of this subtitle. (g) (1) Except as provided in paragraph (2) of this subsection, the Fund may be used only to provide pay–as–you–go capital funds for: (i) public school construction and public school capital improvement projects, in accordance with Title 5, Subtitle 3 of the Education Article; (ii) capital projects at public community colleges; and (iii) capital projects at four–year public institutions of higher education. (2) For fiscal year 2023 only, money in the Fund shall be used to provide, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the General Fund of the State. (i) Expenditures from the Fund may be made only in accordance with the State budget. (j) (1) Except as provided in paragraph (3) of this subsection, the Governor shall include in the budget bill for the second following fiscal year an appropriation equal to the amount in the Fund for pay–as–you–go capital projects. (2) Money expended from the Fund for pay–as–you–go capital projects is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for capital projects, including those funded with pay–as–you–go funds and the proceeds from the sale of general obligation bonds. (3) The Governor shall include in the budget bill submitted at the 2022 Session of the General Assembly an appropriation equal to the amount distributed to the Fund in accordance with § 7–329(b–1) of this subtitle to provide, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859. (k) At the end of a fiscal year, the unspent balance of each appropriation that was made for that fiscal year from the Fund reverts to the Fund.

Md. Code, State Finance and Procurement § 7-331

§7–331. IN EFFECT (a) In this section, “Fund” means the Opioid Restitution Fund. (b) There is an Opioid Restitution Fund. (c) The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section. (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and (2) the interest earnings of the Fund. (f) The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including: (1) programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction; (2) supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State; (3) addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services; (4) addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services; (5) evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article: (i) determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and (ii) approves the use of money for the pilot program or demonstration study; (6) evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality; (7) operating expenses and personnel costs for investigations, enforcement actions, and other activities conducted by the Opioids Enforcement Unit within the Office of the Attorney General that are related to the recovery of funds from opioid–related judgments or settlements; and (8) the Buprenorphine Training Grant Program established under § 13–5802 of the Health – General Article. (g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (h) (1) Expenditures from the Fund may be made only in accordance with the State budget. (2) For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions: (i) appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions: 1. as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or 2. required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and (ii) the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with: 1. the State–subdivision agreement of January 21, 2022, as amended; or 2. the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions. (3) The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection. (i) (1) (i) This paragraph does not apply in fiscal years 2025 and 2026. (ii) Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services. (2) Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses. (j) The Governor shall: (1) develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts; (2) subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and (3) report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on: (i) an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by: 1. use; 2. if applicable, jurisdiction; and 3. budget program and subdivision; (ii) the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and (iii) the recommended appropriations from the Fund identified in accordance with item (2) of this subsection. (k) Beginning on or before October 1, 2025, and each October 1 thereafter, the Office of the Attorney General shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the status of activity of the Opioids Enforcement Unit, including: (1) the number of investigations taking place; (2) the number of lawsuits filed; and (3) the disposition of lawsuits filed. §7–331. // EFFECTIVE JUNE 30, 2029 PER CHAPTERS 700 AND 701 OF 2025 // // EFFECTIVE UNTIL SEPTEMBER 30, 2030 PER CHAPTER 759 OF 2025 // (a) In this section, “Fund” means the Opioid Restitution Fund. (b) There is an Opioid Restitution Fund. (c) The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section. (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and (2) the interest earnings of the Fund. (f) The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including: (1) programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction; (2) supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State; (3) addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services; (4) addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services; (5) evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article: (i) determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and (ii) approves the use of money for the pilot program or demonstration study; (6) evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality; and (7) the Buprenorphine Training Grant Program established under § 13–5802 of the Health – General Article. (g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (h) (1) Expenditures from the Fund may be made only in accordance with the State budget. (2) For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions: (i) appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions: 1. as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or 2. required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and (ii) the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with: 1. the State–subdivision agreement of January 21, 2022, as amended; or 2. the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions. (3) The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection. (i) (1) (i) This paragraph does not apply in fiscal years 2025 and 2026. (ii) Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services. (2) Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses. (j) The Governor shall: (1) develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts; (2) subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and (3) report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on: (i) an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by: 1. use; 2. if applicable, jurisdiction; and 3. budget program and subdivision; (ii) the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and (iii) the recommended appropriations from the Fund identified in accordance with item (2) of this subsection. §7–331. // EFFECTIVE SEPTEMBER 30, 2030 PER CHAPTER 759 OF 2025 // (a) In this section, “Fund” means the Opioid Restitution Fund. (b) There is an Opioid Restitution Fund. (c) The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section. (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Fund consists of: (1) all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and (2) the interest earnings of the Fund. (f) The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including: (1) programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction; (2) supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State; (3) addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services; (4) addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services; (5) evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article: (i) determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and (ii) approves the use of money for the pilot program or demonstration study; and (6) evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality. (g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (h) (1) Expenditures from the Fund may be made only in accordance with the State budget. (2) For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions: (i) appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions: 1. as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or 2. required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and (ii) the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with: 1. the State–subdivision agreement of January 21, 2022, as amended; or 2. the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions. (3) The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection. (i) (1) (i) This paragraph does not apply in fiscal years 2025 and 2026. (ii) Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services. (2) Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses. (j) The Governor shall: (1) develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts; (2) subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and (3) report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on: (i) an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by: 1. use; 2. if applicable, jurisdiction; and 3. budget program and subdivision; (ii) the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and (iii) the recommended appropriations from the Fund identified in accordance with item (2) of this subsection.

Md. Code, State Finance and Procurement § 7-401

(a) The Comptroller may direct the units of the State government to use the method that the Comptroller sets for: (1) keeping books and accounts; (2) adopting uniform systems of accounting; or (3) making reports. (b) (1) Except as provided in paragraph (2) of this subsection, the Comptroller shall require a unit of the State government to comply with each recommendation of the Legislative Auditor in an audit report on the unit concerning: (i) its record keeping; (ii) its use of a uniform system of accounting; and (iii) its submission of reports. (2) The Comptroller may waive compliance with a recommendation of the Legislative Auditor if the unit satisfies the Comptroller that the recommendation should not be carried out. (3) The Comptroller shall report to the Joint Audit and Evaluation Committee on actions under this subsection. (4) The report shall include the reasons for waiving compliance with a recommendation of the Legislative Auditor.

Md. Code, State Finance and Procurement § 7-402

(a) (1) In this section the following words have the meanings indicated. (2) “Social organization” means an association or corporation that is operated for a charitable, cultural, educational, historical, humane, industrial, medical, or military purpose. (3) “State aid” means a contribution, grant, or subsidy of money from the State Treasury. (b) (1) Each social organization that, by statute, is to receive State aid shall make an agreement: (i) with the unit of the State government to which the money for the State aid has been appropriated; or (ii) if the money is not appropriated to a unit, with the Comptroller. (2) An agreement under this subsection shall: (i) define the purposes and terms of the State aid; and (ii) require the social organization to submit to the unit or Comptroller a report on expenditure of the State aid. (c) (1) Unless the agreement sets another date for submission of the report, a social organization shall submit the report on or before September 1 after the close of the fiscal year in which the social organization received the State aid. (2) The report shall: (i) contain an itemized statement that fully and accurately accounts for how the State aid was spent; and (ii) be verified: 1. by an officer of the social organization; or 2. for a military organization, by the commanding officer. (d) After a unit or the Comptroller receives a report under this section, the unit or Comptroller: (1) shall determine whether the social organization has spent and accounted for the State aid in accordance with the agreement; and (2) if the unit or Comptroller finds inconsistencies between the agreement and the expenditures or operations of the social organization, shall give the Department of Budget and Management and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services notice of the inconsistencies. (e) To ensure compliance with this section, the unit or the Comptroller may audit the financial records of a social organization.

Md. Code, State Finance and Procurement § 7-403

(a) (1) In this section the following words have the meanings indicated. (2) “Financial records” means the generally accepted budgets, journals, ledgers, reports of expenses and revenue, or other forms of financial documentation that may be required as a condition for receiving State funds. (3) “Health or social welfare organization” means an organization that is operated for the promotion of the public health or social welfare, whether or not the organization is tax exempt under § 501(c) of the Internal Revenue Code. (4) “Uniform accounting standards” means: (i) accounting standards and procedures that the American Institute of Certified Public Accountants has adopted for voluntary health or social welfare organizations; or (ii) uniform standards of an equivalent nature that: 1. are applied consistently; and 2. conform to generally accepted accounting principles. (b) This section does not apply to: (1) a dentist; (2) a hospital that the State Health Services Cost Review Commission regulates; (3) a pharmacist; or (4) a physician. (c) (1) This subsection applies only to a contract for the provision of health or social welfare services between: (i) a unit of the State government; and (ii) a health or social welfare organization or an individual. (2) A contract with an individual who is a Maryland resident or with a health or social welfare organization incorporated under the laws of this State shall require the individual or the health or social welfare organization to keep financial records in accordance with uniform accounting standards. (3) A contract with any other individual or private health or social welfare organization may require the individual or private health or social welfare organization to keep financial records in accordance with uniform accounting standards. (d) A unit of the State government that makes a grant to a private health or social welfare organization shall require the private health or social welfare organization to keep financial records in accordance with uniform accounting standards. (e) A unit of the State government may not require an individual or a private health or social welfare organization to keep financial records in a manner that is inconsistent with uniform accounting standards. (f) (1) (i) The chief accountant of a unit of the State government or of the principal department to which the unit is assigned may examine the financial records of an individual or a health or social welfare organization that receives a grant from the unit. (ii) The accountant shall give 30 days’ prior notice of an examination under this paragraph. (2) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, the chief accountant of a unit or of the principal department to which the unit is assigned shall examine any financial records required to be kept under subsection (c) of this section. (ii) For the financial records required to be kept under subsection (c)(2) of this section, the accountant shall give 30 days’ prior notice of the examination under this paragraph. (iii) For any financial records required to be kept under subsection (c)(3) of this section, the accountant shall examine the financial records when an examination is authorized by: 1. the secretary of the principal department to which the unit is assigned; or 2. if the unit is not assigned to a principal department, the head of the unit. (g) A unit of the State government may not: (1) make a grant to an organization that fails to keep financial records in accordance with uniform accounting standards; or (2) make a contract with an organization or individual who fails to keep financial records as required under this section.

Md. Code, State Finance and Procurement § 7-404

(a) (1) In this section the following words have the meanings indicated. (2) “Department” means a principal department of the Executive Branch of the State government. (3) “Independent unit” means a unit of the State government that is not in a department. (b) This section does not apply to: (1) a private provider who provides care for 4 or fewer individuals; (2) a provider from another state; (3) a provider of family child care for 6 or fewer children; or (4) a foster parent with whom a child is placed by the Social Services Administration. (c) (1) After consultation with the Legislative Auditor, the head of each department or independent unit that contracts with a private provider for care of an individual in a nongovernmental facility shall specify the intervals and manner of examination of the accounts of the private provider. (2) The examination shall determine whether costs of care for which the private provider has received reimbursement are in accordance with the guidelines of the department or unit for allowable costs. (d) The department or independent unit shall pay for the examination from the appropriation to the department or independent unit in the State budget. (e) If an independent certified public accountant is to examine the accounts of a private provider, the head of the department or independent unit shall choose the accountant in accordance with a procedure that the Legislative Auditor has reviewed. (f) (1) Whenever an examination under this section shows that the reimbursement that a provider has received during the period covered by the examination exceeds the total allowable costs, the department or independent unit shall collect: (i) the full amount of the excess; or (ii) a lesser amount if the department or independent unit finds that the collection of the full amount would impair seriously the financial condition of the provider. (2) Whenever an examination under this section shows that the allowable costs exceed the reimbursement that the provider has received, the department or independent unit shall pay to the provider the difference between the reimbursement and the lesser of the allowable costs or the maximum rate of payment as provided in the State budget. (g) The head of a department or independent unit shall send to the Secretary of Budget and Management and, subject to § 2–1257 of the State Government Article, the Legislative Auditor: (1) a copy of a report of each examination under this section; and (2) a written statement that contains the basis for any finding made under subsection (f)(1)(ii) of this section. (h) A provision of this section has effect only to the extent that the provision does not conflict with federal law.

Md. Code, State Finance and Procurement § 7-405

(a) (1) In this section the following words have the meanings indicated. (2) “Developmentally disabled individual” means a severe chronic disability of an individual that: (i) is attributable to a physical or mental impairment, other than the sole diagnosis of mental illness, or to a combination of mental and physical impairments; (ii) is manifested before the individual attains the age of 22; (iii) is likely to continue indefinitely; (iv) results in an inability to live independently without external support or continuing and regular assistance; and (v) reflects the need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are individually planned and coordinated for the individual. (3) “Elderly individual” means an individual who is 60 years old or older. (b) In addition to any other requirement of this subtitle, each corporation that administers services to elderly or developmentally disabled individuals and receives funds from the State shall be subject to audit of its financial records by: (1) the State Comptroller; or (2) the State Legislative Auditor. (c) This section does not apply to services administered by a nonprofit hospital corporation.

Md. Code, State Finance and Procurement § 7-406

(a) (1) In this section the following words have the meanings indicated. (2) “Department” means the Department of Budget and Management. (3) (i) “Grantee” means a for profit or nonprofit entity or association that receives State aid during a fiscal year. (ii) “Grantee” does not include a unit of State or local government. (4) “Grantor” means a unit of State government or other State entity that provides State aid to a grantee. (5) (i) “State aid” means a contribution, grant, or subsidy of $50,000 or more provided through the State operating or capital budget or by the action of a unit of State government from State funds appropriated to that unit. (ii) “State aid” does not include reimbursements to providers participating in a State program. (b) (1) (i) A grantor shall submit a report as provided in this subsection to the Department on or before September 1 after the close of each fiscal year in which the grantor provided State aid to a grantee. (ii) The report shall contain: 1. the name, address, and zip code of each grantee that received State aid from the grantor during the previous fiscal year; 2. the amount of any State aid provided to the grantee; and 3. a description of the State aid provided to the grantee. (2) The reports required under this subsection shall be in the form and format, including electronic format, that the Department, after consultation with the Department of Information Technology, requires. (c) (1) The Department of Information Technology, in consultation with the Department of Budget and Management, shall develop and operate a searchable website, accessible to the public at no cost through the Internet. (2) The searchable website shall contain: (i) the name of the grantor that provided the State aid; (ii) the name of the grantee that received the State aid; (iii) the amount of the State aid that was provided to the grantee; (iv) the zip code of the grantee that received the State aid; and (v) a description of the State aid that was provided to the grantee. (3) The searchable website shall allow a user to search by the following data fields: (i) the grantee that received the State aid; (ii) the grantor that provided the State aid; and (iii) the zip code of any grantee that received State aid. (d) The Office of Legislative Audits may conduct an audit or review of a grantee in accordance with §§ 2–1221 through 2–1227 of the State Government Article.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026