Revenue Stabilization Account - Transfer of Funds - State Disaster Recovery Fund, the official text

WES MOORE, Governor                  Ch. 450

Chapter 450

                   (House Bill 953)

AN ACT concerning

Revenue Stabilization Account – Transfer of Funds – State Disaster Recovery
                                                        Fund

FOR the purpose of authorizing the Governor, subject to the approval of the Board of Public
         Works, to transfer funds from the Revenue Stabilization Account to the State
         Disaster Recovery Fund; and generally relating to the transfer of funds from the
         Revenue Stabilization Account.

BY repealing and reenacting, without amendments,
         Article – Public Safety
         Section 14–110.5(a)
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Public Safety
         Section 14–110.5(f)
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, without amendments,
         Article – State Finance and Procurement
         Section 7–311(a)(1) and (2)
         Annotated Code of Maryland
         (2021 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – State Finance and Procurement
         Section 7–311(g)
         Annotated Code of Maryland
         (2021 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Public Safety

14–110.5.

(a) (1) In this section the following words have the meanings indicated.

                   –1–
Ch. 450       2026 LAWS OF MARYLAND

              (2) “Fund” means the State Disaster Recovery Fund.

                  (3) “Local Disaster Declaration” means a formal request for State disaster
relief and recovery assistance made as a result of an emergency by the senior elected official
through the local organization for emergency management.

         (f) (1) The Governor may include in the annual budget bill an appropriation
to the Fund.

              (2) The Fund shall consist of:

              (i) money appropriated in the State budget to the Fund;

              (ii) money transferred to the Fund from:

                                 1. the Catastrophic Event Account in accordance with §
7–324 of the State Finance and Procurement Article; AND

                                 2. THE REVENUE STABILIZATION ACCOUNT IN
ACCORDANCE WITH § 7–311 OF THE STATE FINANCE AND PROCUREMENT ARTICLE;

              (iii) repayments of principal and interest from loans made from the

Fund;

                           (iv) reimbursements from the federal government or other legal
entities for disaster recovery assistance expenditures made from the Fund;

              (v) interest earnings of the Fund; and

              (vi) any other money from any other source accepted for the benefit

of the Fund.

              Article – 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.

        (g) (1) (I) 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–
WES MOORE, Governor  Ch. 450

                [(2)] (II) 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.

                (2) 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, THE GOVERNOR MAY, SUBJECT TO
THE APPROVAL OF THE BOARD OF PUBLIC WORKS, TRANSFER FUNDS FROM THE
ACCOUNT TO THE DISASTER RECOVERY FUND ESTABLISHED UNDER § 14–110.5 OF
THE PUBLIC SAFETY ARTICLE.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2026.

Approved by the Governor, May 12, 2026.

–3–