Title 3. Budget and Management — Subtitle 6. Communityprogram Fund
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 3-601 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–601LinkCopy Citation
(a)
To establish relative priorities and avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the capital plans and capital programs of all units of the State government. Upon request of the General Assembly, the Department shall provide assistance to the General Assembly in the development and coordination of capital plans and capital programs for the Legislative Branch of State government.
(b)
To avoid duplication and conflicts, the Department shall advise the Governor on the means and methods available to coordinate the capital plans and capital programs of federal, State, regional, and local governments.
Md. Code Ann., State Fin. & Proc. § 3-602 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–602LinkCopy Citation
(a)
The Department shall study each capital project proposed by any unit of the State government.
(b)
Except for a capital project designated as an emergency by the unit of the State government proposing the project, any unit of the State government requesting a capital project shall submit its request to the Department on or before June 30 of the fiscal year preceding the fiscal year in which the capital project is to begin.
(c)
Each request for a capital project by a unit of the State government, including the University System of Maryland, St. Mary’s College of Maryland, and Morgan State University, shall include a detailed list of all proposed expenditures for capital improvements to be funded from grants or nonbudgeted revenues.
(d)
(1)
Before an appropriation may be authorized for preliminary planning of a proposed capital project:
(i)
the unit of the State government requesting the appropriation shall submit to the Department a program describing, in detail, the scope and purpose of the project; and
(ii)
the Secretary must approve the program.
(2)
Before an appropriation may be authorized for construction of a proposed capital project:
(i)
the unit of State government requesting the appropriation shall submit to the Departments of Budget and Management and General Services a detailed design program, which shall include all information required by the Departments; and
(ii)
both the Secretary and the Secretary of General Services must approve the detailed design program.
(e)
Except with the approval of the Secretary and the Secretary of General Services, no change may be made in any proposed capital project after the preliminary plan for that project has been completed and approved.
(f)
(1)
This subsection applies only to capital projects that involve construction of permanent or long-time duration.
(2)
When the request for an appropriation for a capital project is submitted to the General Assembly, the unit of the State government that would receive the capital project or a State officer on behalf of the unit shall submit to the General Assembly:
(i)
preliminary plans and outline specifications for the project that show the size, the type of construction, and the arrangement of each building; and
(ii)
a statement on the sufficiency of the proposed appropriation to pay fully for the costs of that project.
(g)
Total project funding may utilize alternative construction methods, such as:
(1)
design/build which involves a single solicitation to design and build the facility; or
(2)
“fast track” in which design and construction are implemented concurrently.
(h)
A request for total project funding may be authorized jointly by the Secretaries of Budget and Management and General Services if:
(1)
(i)
the planning, design, construction, and equipment funds for the project have been authorized and itemized in the State budget bill or a supplementary appropriation bill; or
(ii)
the Secretaries make a determination, supported in writing and submitted to the Legislative Policy Committee of the General Assembly and the Board of Public Works, that:
(1)
total project funding is time critical and will result in significant cost savings;
(2)
there is compelling reason why the procedure required in this paragraph cannot be adopted; and
(3)
circumstances necessitate that consideration of the total project funding occur during the legislative interim, rather than during the legislative session; and
(2)
(i)
the total project funding request has been submitted to the Legislative Policy Committee for its review and comment;
(ii)
written comment from the Legislative Policy Committee has been received or 45 days have elapsed after the Legislative Policy Committee has received the request and all supporting information; and
(iii)
the request has been approved by the Board of Public Works.
(i)
The submissions and approvals required by subsections (b) through (h) of this section are not required in connection with any capital project funded by the Transportation Trust Fund.
(j)
“Total project funding” means the funding for the planning, design, construction, and equipment of a capital project through a single appropriation or authorization or through a proposed capital lease.
(k)
“Capital lease” means any lease, defined as a capital lease in accordance with generally accepted accounting principles, that is used to finance the acquisition, purchase, construction, and any related renovation or alteration of real property that is the subject of a capital project.
Md. Code Ann., State Fin. & Proc. § 3-602.1 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–602.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“High performance building” means a building that:
(i)
meets or exceeds the current version of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) Green Building Rating System Silver rating;
(ii)
achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard approved by the Secretaries of Budget and Management and General Services; or
(iii)
complies with a nationally recognized and accepted green building code, guideline, or standard reviewed and recommended by the Maryland Green Building Council and approved by the Secretaries of Budget and Management and General Services.
(3)
“Major renovation” means the renovation of a building where:
(i)
the building shell is to be reused for the new construction;
(ii)
the heating, ventilating, and air conditioning (HVAC), electrical, and plumbing systems are to be replaced; and
(iii)
the scope of the renovation is 7,500 square feet or greater.
(b)
It is the intent of the General Assembly that, to the extent practicable:
(1)
the State shall employ green building technologies when constructing or renovating a State building not subject to this section; and
(2)
high performance buildings shall meet the criteria and standards established under the “High Performance Green Building Program” adopted by the Maryland Green Building Council.
(c)
(1)
This subsection applies to:
(i)
capital projects that are funded solely with State funds; and
(ii)
community college capital projects that receive State funds.
(2)
Except as provided in subsections (d) and (e) of this section, if a capital project includes the construction or major renovation of a building that is 7,500 square feet or greater, the building shall be constructed or renovated to be a high performance building.
(d)
The following types of unoccupied buildings are not required to be constructed or renovated to be high performance buildings:
(1)
warehouse and storage facilities;
(2)
garages;
(3)
maintenance facilities;
(4)
transmitter buildings;
(5)
pumping stations; and
(6)
other similar types of buildings, as determined by the Department.
(e)
(1)
The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government or a community college to obtain a waiver from complying with subsection (c) of this section.
(2)
The waiver process shall:
(i)
include a review by the Maryland Green Building Council established under § 4–809 of this article, to determine if the use of a high performance building in a proposed capital project is not practicable; and
(ii)
require the approval of a waiver by the Secretaries of Budget and Management, General Services, and Transportation.
Md. Code Ann., State Fin. & Proc. § 3-602.2 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–602.2LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Commission” means the Maryland Commission on Public Art established under Title 4, Subtitle 6 of the Economic Development Article.
(3)
“Construction project” means the construction of a new building that is proposed to contain 15,000 or more square feet.
(4)
“Council” means the Maryland State Arts Council established under Title 4, Subtitle 5 of the Economic Development Article.
(5)
“Division” means the Division of Tourism, Film, and the Arts established under Title 4, Subtitle 1 of the Economic Development Article.
(6)
“Major renovation project” means the renovation of an existing building where:
(i)
the building is to be reconstructed and reused after the construction;
(ii)
the heating, ventilation, and air conditioning, electrical, and plumbing systems are to be replaced; and
(iii)
the scope of the renovation is 15,000 or more square feet.
(7)
(i)
“Public art” means:
(1)
an architectural enhancement of artistic significance; or
(2)
an individual piece of art.
(ii)
“Public art” includes:
(1)
a mural;
(2)
a tile mosaic;
(3)
a painting; or
(4)
a sculpture.
(b)
(1)
This section applies to capital projects that are:
(i)
funded entirely with State funds; or
(ii)
(1)
funded with a combination of at least 50% of State funds and the remainder from funds from private entities; and
(2)
not funded in the annual State capital budget as:
(A)
a miscellaneous grant program;
(B)
a local House of Delegates initiative; or
(C)
a local Senate initiative.
(2)
This section does not apply to the following types of unoccupied buildings:
(i)
warehouse and storage facilities;
(ii)
garages;
(iii)
maintenance facilities;
(iv)
transmitter buildings;
(v)
pumping stations; and
(vi)
other similar buildings, as determined by the Department.
(c)
It is the intent of the General Assembly that the requirements of this section will not increase the cost of a construction project or a major renovation project.
(d)
To the extent practicable and except as provided in subsection (g) of this section, the State shall include public art in all construction projects and major renovation projects.
(e)
During the initial design of each construction project and major renovation project, the identification and selection of public art to be included in the project shall be determined by a group composed of representatives of:
(1)
the unit of State government that will be the primary user of the building;
(2)
the unit of State government responsible for project management of the building; and
(3)
the Division.
(f)
The Division shall work with the Council and the Commission in the selection of public art for any project under this section.
(g)
(1)
The Department of Budget and Management and the Department of General Services shall jointly establish a process to allow a unit of State government to obtain a waiver from complying with this section.
(2)
The waiver process shall:
(i)
provide for consultation with the Division, on behalf of the Council and the Commission, to determine if the inclusion of public art in a proposed project is too costly or not practicable; and
(ii)
require the approval of the Secretaries of Budget and Management and General Services.
Md. Code Ann., State Fin. & Proc. § 3-603 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–603LinkCopy Citation
(a)
The Department shall prepare, revise, and keep current a 5-year capital program.
(b)
The capital program shall include all capital projects of the State whether funded by bond authorizations, operating budget funds, or capital leases.
(c)
The capital program shall be consistent with the annual recommendations of the Capital Debt Affordability Committee.
(d)
Except for the first year of the program, the capital program may not include General Fund capital appropriations as a source of funding other than for projects or programs that are ineligible for tax-exempt debt financing.
Md. Code Ann., State Fin. & Proc. § 3-604 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–604LinkCopy Citation
The capital program:
(1)
shall include State public works and major capital improvement projects undertaken or recommended to be undertaken by the State; and
(2)
may include major projects undertaken or recommended to be undertaken with State aid or under State regulation.
Md. Code Ann., State Fin. & Proc. § 3-605 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–605LinkCopy Citation
The capital program shall:
(1)
classify projects according to their necessity and urgency;
(2)
recommend a time sequence for the projects; and
(3)
include the following information about each project:
(i)
the contract price or an estimate of the cost of acquisition or construction;
(ii)
an estimate of the operating and maintenance costs;
(iii)
an estimate of the number of additional State positions that will be required as a result of the project;
(iv)
an estimate of revenues likely to be received from the project; and
(v)
existing sources of funds or the need for additional sources of funds for construction, acquisition, and operation.
Md. Code Ann., State Fin. & Proc. § 3-606 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–606LinkCopy Citation
As far as possible, the capital program shall be based on existing information in the possession of the Department of Budget and Management, and other units of the State government.
Md. Code Ann., State Fin. & Proc. § 3-607 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–607LinkCopy Citation
The Department of Budget and Management may require the head of any unit of the State government to give information necessary for the preparation of the capital program.
Md. Code Ann., State Fin. & Proc. § 3-608 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–608LinkCopy Citation
(a)
In the annual budget the Governor shall provide a sum sufficient to establish a Revolving Preliminary Planning Fund under the jurisdiction of the Board of Public Works.
(b)
On the recommendation of the Department, the Board of Public Works may authorize money to be advanced from the Revolving Preliminary Planning Fund for preliminary plans, studies, designs, and outline specifications for any project that is part of the capital improvement program.
(c)
Any money advanced from the Revolving Preliminary Planning Fund shall be reimbursed to the Fund:
(1)
from general funds; or
(2)
with the approval of the Board of Public Works, from:
(i)
the annual general construction loan; or
(ii)
any other special loan funds separately authorized by the General Assembly.
Md. Code Ann., State Fin. & Proc. § 3-609 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–609LinkCopy Citation
(a)
There is a Construction Contingency Fund.
(b)
The Fund is a continuing, nonlapsing, revolving fund that consists of:
(1)
money appropriated to the Fund:
(i)
in the annual budget; or
(ii)
in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act;
(2)
unspent proceeds of an enabling act allocated to the Fund by the Governor under § 8–129 of this article; or
(3)
the amount of an appropriation in an annual General Construction Loan Act or in a Maryland Consolidated Capital Bond Loan Act that is in excess of the amount needed for a project included in the Act and that is allocated to the Fund by the Governor.
(c)
An appropriation or allocation to the Fund may not be made if it would cause the total balance in the Fund to exceed 1.25% of the capital debt affordability limit, determined under Title 8 of this article, for that year.
(d)
With the advice and assistance of the Departments of Budget and Management and General Services, the Fund shall be administered by the Board of Public Works.
(e)
With the approval of the Governor, the Secretaries of Budget and Management and General Services may request the Board of Public Works to authorize an expenditure from the Fund to supplement any capital appropriation or to conduct value engineering on a project:
(1)
that is for a capital project to be owned by the State or a unit of the State government;
(2)
that was contained in a capital appropriation of an annual budget, in an annual general construction loan, or in an annual Maryland consolidated capital bond loan; and
(3)
(i)
that is insufficient in amount to permit the initial award of a contract for the project to the bidder or offeror selected in accordance with applicable State law, or to cover change orders during construction of the project which do not increase the scope of the project;
(ii)
if, in the belief of the Department of General Services or at the request of the budget committees, the project cost could be reduced or quality improved through the use of value engineering; or
(iii)
that includes price adjustments for material price fluctuations of identified eligible project–specific materials.
(f)
The Secretaries of Budget and Management and General Services shall evaluate any project for additional funding and certify in writing that the project meets the criteria in subsection (e) of this section and that:
(1)
all reasonable attempts to reduce the cost of the project have been made;
(2)
no practicable alternative exists for securing funding to complete the project; and
(3)
the requested additional funding does not increase the scope of the project.
(g)
(1)
Prior to seeking approval from the Board of Public Works, the Department of General Services and the Department of Budget and Management shall:
(i)
provide written notice to the budget committees on the planned use of the funds; and
(ii)
allow 45 days for review and comment by the budget committees.
(2)
Each time an expenditure from the Fund is authorized by the Board of Public Works, the amount specified by the Board of Public Works may be transferred from the account to the appropriate annuity bond account to supplement the specified authorization.
(h)
Within 1 month after the end of each year, the Secretaries of Budget and Management and General Services shall submit a report on activity from January 1 through December 31 of that year, subject to § 2–1257 of the State Government Article, to the General Assembly on the money:
(1)
appropriated to the Fund;
(2)
authorized for expenditure from the Fund; and
(3)
expended from the Fund.
(i)
Money in the Fund shall be deposited with the State Treasurer.
Md. Code Ann., State Fin. & Proc. § 3-610 (2026)
Title 3. Budget and Management
Subtitle 6. Communityprogram Fund
§ 3–610LinkCopy Citation
(a)
In this section, “Department” means the Department of General Services.
(b)
This section applies to a capital project that receives at least $3,000,000 in State funds in a single fiscal year and is funded in the annual State capital budget as:
(1)
a miscellaneous grant program;
(2)
a local House of Delegates initiative; or
(3)
a local Senate initiative.
(c)
(1)
Prior to the release of State funds for a capital project that meets the conditions of subsection (b) of this section, the Governor’s Office of Small, Minority, and Women Business Affairs shall:
(i)
review the capital project for subcontracting opportunities under the provisions of Title 14, Subtitle 3 of this article; and
(ii)
if practicable, establish minority business enterprise subgoals for the capital project.
(2)
In setting subgoals under this subsection, the Governor’s Office of Small, Minority, and Women Business Affairs shall consider the availability and capacity of minority business enterprises in Maryland and in the county where the project is located to fulfill the subgoal.
(d)
(1)
If the Governor’s Office of Small, Minority, and Women Business Affairs establishes minority business enterprise subgoals for the capital project, the recipient of the State funds shall:
(i)
certify to the Department that the recipient expects to achieve the subgoals; or
(ii)
request a waiver of all or part of the subgoals from the Governor’s Office of Small, Minority, and Women Business Affairs.
(2)
The Governor’s Office of Small, Minority, and Women Business Affairs shall review a request for a waiver under paragraph (1)(ii) of this subsection and report the revised subgoals for the capital project to the Department.
(e)
(1)
On or before July 31 each year, the Department shall submit an annual report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the number of waivers granted for capital projects that meet the conditions of subsection (b) of this section in the prior fiscal year.
(2)
The report shall include:
(i)
a description of the capital project;
(ii)
whether the waiver was a partial or full waiver; and
(iii)
the justification for the waiver.