Bill > HB865

This bill modifies provisions related to the Catastrophic Event Account and the State Disaster Recovery Fund, providing clearer guidelines for transferring funds during emergencies. Specifically, the bill allows the Governor to transfer money from the Catastrophic Event Account to the State Disaster Recovery Fund under two conditions: when the Fund's balance has been depleted due to previous use or transfers, or when the estimated costs for disaster relief exceed the Fund's current balance. Before making such a transfer, the Governor must provide the Legislative Policy Committee a 10-day review and comment period. The bill also clarifies that funds from the Catastrophic Event Account can be used to assist state or local governments during natural disasters, catastrophic situations, or federal government shutdowns, but cannot be used to offset regular state government operating deficiencies. The changes aim to provide more flexibility and resources for responding to unexpected emergencies, ensuring that the state has adequate financial mechanisms to support disaster recovery efforts. The bill will take effect on July 1, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0865?ys=2025RS