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WES MOORE, Governor Ch. 248
Chapter 248
(Senate Bill 828)
AN ACT concerning
State Finance – Delinquent Federal Funds
(Federal Obligations Enforcement Act)
FOR the purpose of reserving jurisdiction with respect to certain federal land in the State
under certain conditions; authorizing the Central Collection Unit of the Department
of Budget and Management to collect a certain amount of delinquent federal funds;
authorizing the Central Collection Unit, under a certain circumstance, to collect
certain federal funds owed to the State, place liens on federal property in the State,
and direct the Comptroller to withhold certain payments to the federal government;
authorizing the Board of Public Works, by a majority vote, to determine the federal
government to be delinquent in federal funds owed to the State under a certain
circumstance; requiring certain delinquent federal funds to be referred to the Central
Collection Unit; authorizing the Comptroller to withhold State payments to the
federal government for certain delinquent federal funds referred by the Central
Collection Unit; and generally relating to delinquent federal funds owed to the State.
BY repealing and reenacting, with amendments,
Article – General Provisions
Section 6–202
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
BY adding to
Article – General Provisions
Section 6–204
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 3–101, 3–206(a), (b), and (d), and 10–101
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 3–302(a)(1) and 3–304(a)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY adding to
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Ch. 248 2026 LAWS OF MARYLAND
Article – State Finance and Procurement
Section 3–302(d) and 10–208
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY adding to
Article – State Government
Section 4–115
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – State Government
Section 6–106.1(a)
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 – General Provisions
6–202.
Notwithstanding § 6–201(a) [or], § 6–203, OR § 6–204 of this subtitle, for the
purpose of enforcing the civil or criminal laws of the State, the Governor may enter into an
agreement with the United States to establish full or partial concurrent jurisdiction of the
State and the United States over any land in the State held by the United States.
6–204.
FOR FEDERAL FUNDS DETERMINED DELINQUENT UNDER § 10–208 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE, THE STATE RESERVES
JURISDICTION WITH RESPECT TO LAND THAT THE UNITED STATES OR ANY UNIT OF
THE UNITED STATES LEASES OR OTHERWISE HOLDS IN THE STATE WHEN THE
FEDERAL GOVERNMENT IS FOUND NOT IN COMPLIANCE WITH COURT DECISIONS
UPHOLDING FEDERAL CONGRESSIONALLY APPROVED SPENDING.
Article – State Finance and Procurement
3–101.
(a) In this title the following words have the meanings indicated.
(b) “Department” means the Department of Budget and Management.
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WES MOORE, Governor Ch. 248
(c) “Secretary” means the Secretary of Budget and Management.
3–206.
(a) The Attorney General is legal adviser to the Department.
(b) (1) With the advice of the Secretary, the Attorney General shall assign at
least 1 assistant Attorney General to the Central Collection Unit.
(2) At the request of the Governor, the Attorney General shall assign to the
Department:
(i) at least 1 assistant Attorney General; and
(ii) any other assistant Attorneys General authorized by law to be
assigned to the Department.
(d) Each assistant Attorney General who is assigned to the Central Collection
Unit shall devote full time to the duties with that Unit and may have no other duties.
3–302.
(a) (1) Except as otherwise provided in [subsection (b)] SUBSECTIONS (B)
AND (D) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central
Collection Unit is responsible for the collection of each delinquent account or other debt
that is owed to the State or any of its officials or units.
(D) THE CENTRAL COLLECTION UNIT MAY COLLECT DELINQUENT
FEDERAL FUNDS DETERMINED UNDER § 10–208 OF THIS ARTICLE IN AN AMOUNT UP
TO THE TOTAL OF DELINQUENT FEDERAL FUNDS OWED TO THE STATE.
3–304.
(a) In carrying out its responsibilities, the Central Collection Unit may:
(1) (i) institute, in its name, any action that is available under State
law for collection of a debt or claim; or
(ii) without suit, settle the debt or claim;
(2) for all debts or claims collected on or after June 1, 1992:
(i) in addition to the outstanding principal and interest, assess and
collect from the debtor a fee, which may not exceed 20% of the outstanding principal and
interest, sufficient to cover all collection and administrative costs; and
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Ch. 248 2026 LAWS OF MARYLAND
(ii) prior to crediting any amount to any agency which refers a debt
for any purpose, withhold a fee sufficient to cover all collection and administrative costs;
(3) waive or reduce any fee assessed under paragraph (2) of this subsection;
[and]
(4) certify a debt or claim and the debtor responsible for the debt or claim
to:
(i) the Comptroller for income tax refund interception in accordance
with Title 13, Subtitle 9 of the Tax – General Article; and
(ii) the State Lottery and Gaming Control Agency for State lottery
prize interception in accordance with § 3–307 of this subtitle; AND
(5) IF THE BOARD OF PUBLIC WORKS DETERMINES THE FEDERAL
GOVERNMENT TO BE DELINQUENT IN FEDERAL FUNDS OWED TO THE STATE UNDER
§ 10–208 OF THIS ARTICLE, IN CONSULTATION WITH THE ATTORNEY GENERAL:
(I) COLLECT FEDERAL FUNDS OWED TO THE STATE;
(II) PLACE LIENS ON FEDERAL PROPERTY IN THE STATE; AND
(III) DIRECT THE COMPTROLLER TO WITHHOLD PAYMENTS TO
THE FEDERAL GOVERNMENT AS PROVIDED UNDER § 4–115 OF THE STATE
GOVERNMENT ARTICLE.
10–101.
In this title, “Board” means the Board of Public Works.
10–208.
(A) IF THE FEDERAL GOVERNMENT DOES NOT COMPLY WITH COURT
DECISIONS UPHOLDING CONGRESSIONALLY APPROVED SPENDING, THE BOARD MAY
DETERMINE, BY A MAJORITY VOTE, THE FEDERAL GOVERNMENT TO BE DELINQUENT
IN FEDERAL FUNDS OWED TO THE STATE.
(B) FEDERAL FUNDS DETERMINED DELINQUENT UNDER SUBSECTION (A)
OF THIS SECTION SHALL BE REFERRED TO THE CENTRAL COLLECTION UNIT OF THE
DEPARTMENT OF BUDGET AND MANAGEMENT.
Article – State Government
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WES MOORE, Governor Ch. 248
4–115.
FOR DELINQUENT FEDERAL FUNDS REFERRED BY THE CENTRAL
COLLECTION UNIT OF THE DEPARTMENT OF BUDGET AND MANAGEMENT UNDER §
3–304(A)(5)(III) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE
COMPTROLLER MAY WITHHOLD STATE PAYMENTS TO THE FEDERAL GOVERNMENT.
6–106.1.
(a) The General Assembly finds that:
(1) the federal government’s action or failure to take action may pose a
threat to the health and welfare of the residents of the State; and
(2) the State should investigate and obtain relief from any arbitrary,
unlawful, or unconstitutional federal action or inaction and prevent such action or inaction
from harming the residents of the State.
SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or
the application of any provision of this Act to any person or circumstance is held invalid for
any reason in a court of competent jurisdiction, the invalidity does not affect other
provisions or any other application of this Act that can be given effect without the invalid
provision or application, and for this purpose the provisions of this Act are declared
severable.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, April 28, 2026.
–5–Every fact on this page links to its source, starting with the official bill record.