In this subtitle the following words have the meanings indicated. “Association” means the Maryland State Firefighters Association. “Department” means the Maryland Department of Emergency Management. “Fund” means the Volunteer Company Assistance Fund. “Volunteer company” means a volunteer ambulance, fire, or rescue company: located in the State; or located outside the State if the company: has been a member of the Association for at least the past 10 years; and has a first due response area in the State.

There is a Volunteer Company Assistance Fund. The Fund is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article. The Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund. After consultation with the Association, the Governor may include in the State budget each year an appropriation to the Fund. Any investment earnings of the Fund shall be credited to the Fund. Repayments on loans from the Fund shall be placed in the Fund and made available to fund grant or loan requests. For the purpose of making loans under this subtitle, the Association shall: develop loan criteria; develop loan terms, including interest rates; and recommend to the Board of Public Works the approval or denial of loans.

The purpose of the Fund is to ensure adequate fire protection and rescue services in the State. A grant or loan awarded under this section shall be used only for purchasing, replacing, or improving: equipment, including elevated equipment, pumpers, tankers, ladder trucks, ambulances, rescue vehicles, or other large equipment used for fire fighting and emergency services; communications equipment; protective equipment, including helmets, turnout coats and pants, boots, eyeshields, gloves, and self-contained respiratory protection units; any other equipment necessary to carry out the ordinary functions of supporting fire fighting and rescue activities; or facilities used to house fire fighting equipment, ambulances, and rescue vehicles. A volunteer company receiving a grant from the Fund shall provide at least a 30% match of the amount of the grant. If a volunteer company cannot reasonably provide the required match before the grant is disbursed, the Board of Public Works may waive the requirement or may allow repayment of the match within a reasonable time not exceeding 18 months after the purchase, replacement, or improvement of the equipment or facilities. Money to provide the required match may include contributions from local government. A local government may not reduce the amount of money that the volunteer company would otherwise be entitled to receive from the local government because of State money provided under this section. Loans from the Fund may only be awarded to assist with up to 75% of the total cost of the equipment or facilities being purchased. After a favorable recommendation from the Association, the Board of Public Works may award a grant, loan, or both from the Fund to a volunteer company if: for a grant award: an act of God or other unforeseen event substantially impairs the ability of the volunteer company to provide adequate and safe service; or the volunteer company is unable to maintain the minimum level of performance for adequate and safe service established by standards of the Association because of a demonstrated lack of financial resources; and the Association and the volunteer company have executed an agreement that: provides that the grant or loan will be used as represented to the Board of Public Works in the request for approval; and gives to the State security in the equipment or facilities purchased with the loan and in the proceeds of that equipment or those facilities as determined by the Board of Public Works to be appropriate and adequate. A grant or loan awarded under this section may not: be used to refinance a debt or other obligation of a volunteer company; or be spent to replace or repair eligible items to the extent that insurance proceeds are available for those purposes. The Board of Public Works may not approve a grant or loan from the Fund to a volunteer company if the volunteer company has not made a good faith effort to obtain money from its local government.

A volunteer company shall submit each request for a grant or loan from the Fund to the Association for approval by a board of review in accordance with the Association’s bylaws. Each request for a grant or loan shall include: financial statements for the 2 fiscal years immediately preceding the fiscal year in which the request is made; any available audit of the financial statements; and a detailed explanation of the reasons for the request. For each request for a grant or loan from the Fund, the volunteer company shall certify that the volunteer company applied for money from its local government and was denied, either wholly or partly. If the Association disapproves a request or does not take action within 90 days after the request for any reason other than because funds are not available, the volunteer company requesting a grant or loan may appeal to a panel composed of the president of the Association, the State Fire Marshal, and the chairman of the Fire and Rescue Education and Training Commission. The decision of the panel is final and is not subject to further review. On approval of a request for a grant or loan, the Association or the panel shall transmit its recommendation to the Board of Public Works. As authorized by the Board of Public Works, the Treasurer shall disburse money from the Fund to the Association in the name of a volunteer company for the purposes of this subtitle on warrant of the Comptroller. The Baltimore City Fire Department may submit a request for a grant or loan from the Fund for the purposes set forth in § 8-203(b) of this subtitle.

After consultation with the Association, the Governor may include in the State budget each year an amount for the purposes set forth in subsection (b) of this section. The Association may use money appropriated under subsection (a) of this section to: formulate, publish, and distribute the fire laws of Maryland and other state and federal standards, laws, guidelines, and recommendations; formulate, publish, and distribute an annual report and monthly or other timely bulletins and reports; purchase, publish, and distribute fire prevention, emergency services, and safety education materials and sponsor seminars and other public forums to disseminate this information to Association members and residents of the State; maintain and distribute records that relate to the annual inspections of fire and rescue equipment and facilities; establish and maintain a database on manpower availability and training, operational cost, equipment availability, response time, State and local financial support, and other relevant factors in providing fire and rescue services; maintain membership through fees, subscriptions, and meeting attendance in organizations that disseminate training and education and provide guidance to volunteer emergency service organizations and their members and represent their interests on a State and national level; provide fuel, insurance, and maintenance to vehicles owned and operated by the Association and used in representing the volunteers and disseminating information throughout the State; provide professional services including accounting, auditing, and legal consultation and operational costs associated with the objectives established in this subsection; and promote, disseminate, and advocate programs and services that pertain to improving the safety, health, and wellbeing of fire and rescue personnel throughout the State.

On or before August 30 of each fiscal year, the Association shall submit to the Department, the Legislative Auditor, and to the Board of Public Works an annual report that includes: the number and total amount of grants and the number and total amount of loans made in the previous fiscal year; for each grant or loan made: the volunteer company that received the grant or loan; the amount of the grant or loan; and the specific purpose of making the grant or loan; for each volunteer company that received a grant or loan: the financial statement of the volunteer company for the previous fiscal year or the year in which the grant or loan was received, whichever is available; and documentation of the volunteer company’s actual expenditures from the grant or loan; for each loan made, the terms of the loan, including origination date, loan term, payment terms, payment amount, payments made to date, outstanding balance, and loan status; and summary listings of grants and loans made during the previous fiscal year and outstanding loans, by county. The Department shall: review the documentation submitted in accordance with subsection (a) of this section on an annual basis to determine if each grant or loan was spent in accordance with this subtitle and the request approved by the Board of Public Works; and report the findings to the Senate Budget and Taxation Committee and the House Appropriations Committee on an annual basis. The Legislative Auditor may: review the documentation submitted in accordance with subsection (a) of this section to determine if each grant or loan was spent in accordance with this subtitle and the requests approved by the Board of Public Works; and report the findings to the Department and, subject to § 2–1257 of the State Government Article, to the Joint Audit and Evaluation Committee of the General Assembly. The Comptroller may audit the financial affairs of the Association to ensure compliance with this subtitle.