In this subtitle the following words have the meanings indicated. “Appropriation act” means: the State budget; or a supplementary appropriation act. “Program” means a brief statement in an appropriation act of the purpose for which an appropriation shall be used. “Warrant” means a warrant that the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller issues for the disbursement of money from the State Treasury.

Money may be disbursed from the State Treasury only on appropriation by an appropriation act.

Money may be disbursed from the State Treasury only in accordance with the current appropriation for a program as amended from time to time in accordance with this title.

The initial appropriation for a program is set forth in the appropriation act. However, the appropriation for a program may be increased or reduced as provided in this subtitle.

“Lump sum appropriation” means an appropriation for which the budget books or other documents that support the appropriation act contain no detailed information. Within 90 days after the General Assembly adjourns, each officer or unit of the State government to which a lump sum appropriation is made shall submit to the Board of Public Works a schedule that shows, in the form and with the detail set by the Board, the proposed apportionment and proposed disbursement of the appropriation.

While the General Assembly is in session the General Assembly may amend the appropriation for a program of the Legislative Branch of the State government by amendment to the budget bill. While the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates jointly may authorize an amendment of an appropriation for a program of the Legislative Branch of the State government. An amendment of an appropriation for a program of the Legislative Branch of the State government: may not increase the sum of the appropriations from the General Fund of the State for all the programs of the Legislative Branch; and may authorize the expenditure of money from a special fund or the federal government as provided in § 2-201 of this article or § 7-217(a) of this subtitle. Except as provided in this subsection, an amendment under this section may not increase a salary for a nonclassified position so that the salary exceeds the amount set by the most recently enacted State budget. The limitation applies whether or not the most recently enacted budget is in effect. This subsection does not apply to salaries of positions that are included in an executive pay plan for the Legislative Branch. While the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates jointly may approve an amendment that increases a salary so that it exceeds the limitation in this subsection if: the President and the Speaker find that the salary increase is needed because an inability to obtain or to keep an essential career employee who is performing an administrative function or an essential professional or technical employee has created an acute emergency; and their findings are documented. A copy of each amended appropriation for a program shall be provided promptly to: the Comptroller; and the Secretary of Budget and Management.

The Chief Justice of the Supreme Court of Maryland may authorize an amendment of an appropriation for a program of the Judicial Branch. An amendment of an appropriation for a program of the Judicial Branch: may not increase the sum of the appropriations from the General Fund of the State for all the programs of the Judicial Branch; and may authorize the expenditure of money from a special fund or the federal government as provided in § 2–201 of this article and § 7–217(a) of this subtitle. Except as provided in paragraph (2) of this subsection, an amendment under this section may not increase a salary for a nonclassified position so that the salary exceeds the amount set forth by the most recently enacted State budget bill. The limitation in this paragraph applies whether or not the most recently enacted budget is in effect. The Chief Justice of the Supreme Court of Maryland may approve an amendment that increases a salary so that it exceeds the limitation of this subsection if the Chief Justice finds that the salary increase is needed because an inability to obtain or to keep an essential career employee who is performing an administrative function or an essential professional or technical employee has created an acute emergency, and the finding is documented. This paragraph does not apply to salaries of positions that are included in an executive pay plan for the Judicial Branch. Adjustments to those salaries beyond the amount included in the most recently enacted State budget shall be submitted to the Legislative Policy Committee for approval. A copy of each amended appropriation for a program shall be provided promptly to: the Comptroller; and the Secretary of Budget and Management.

The Governor may amend an appropriation for a program of the Office of the Governor. Except as provided in § 7–212 of this subtitle, whenever an officer or unit of the Executive Branch of the State government wants the appropriation for a program of the officer or unit amended, the officer or unit shall submit a proposed amended appropriation for the program to the Secretary of Budget and Management. The Secretary of Budget and Management shall endorse on or attach to the proposed amended appropriation for the program a recommendation and send the amended appropriation for the program and recommendation to the Governor. At any time before the Governor approves or disapproves the proposed amended appropriation for a program, the officer or unit may withdraw the proposal. Whenever the Governor approves a proposed amended appropriation for a program, the Governor shall endorse it as “approved”. An amendment of an appropriation for a program: except as provided in paragraph (2) of this subsection, may not increase the sum of the appropriations from the General Fund of the State for all the programs of the officer or unit; and may permit the expenditure of money from a special fund or the federal government as provided in § 2–201 of this article or § 7–217(a) of this subtitle. An amendment of an appropriation for a program of the Executive Branch may increase the sum of the appropriations from the General Fund of the State for all programs of the officer or unit if money from the Contingent Fund of the Board of Public Works is transferred to the program. Except as provided in paragraph (2) of this subsection, an amendment under this section may not increase a salary so that it exceeds the amount set by the most recently enacted State budget. The limitation in this paragraph applies whether or not the most recently enacted budget is in effect. If the Board of Public Works approves the increase, the Governor may approve an amendment that increases the salary for a position listed in the budget bill in accordance with § 7–109 of this title. An amendment under this paragraph remains effective until the State budget for the next fiscal year becomes effective. Except as provided in paragraphs (2) and (3) of this subsection, an amendment under this section may not transfer any part of an appropriation among any of the principal departments or any of the units in the Executive Branch that are not assigned to a principal department. This subsection does not prevent a transfer that: is part of a reorganization under § 8–301 of the State Government Article; is needed to comply with federal law or a policy directive of a federal unit that relates to the use of federal funds; because of an emergency declared by the Governor, is needed to protect the health, welfare, or property of the public; or is specifically authorized by the budget bill or other law. Subject to the State budget bill, an amendment may transfer part of an appropriation of special or federal funds between any of the principal departments or any of the units in the Executive Branch that are not assigned to a principal department if: funds are available to the department or unit from which the funds are to be transferred through a federal grant or contract or other restricted grant or contract; the use of funds by the department or unit to which the funds are to be transferred is directly related to the purposes of the grant or contract and the statutory duties of that department or unit; and the transferring department or unit and the receiving department or unit submit a schedule of funds to be transferred to the Department of Budget and Management. Funds transferred under this paragraph may not be expended by the recipient department or unit until each proposed budget amendment has been approved by: the Secretary of Budget and Management; the Governor; and the Board of Public Works. A copy of each approved budget amendment under this paragraph shall be provided to the Department of Legislative Services. The Governor shall send a copy of each amended appropriation for a program to: the Comptroller; and the Department of Legislative Services. An amended appropriation for a program is effective when the Governor sends notice of the amended appropriation to the Comptroller.

A budget amendment may not change any language or substantive provision in the State budget. The limitation in this subsection does not apply to the monetary figures of an appropriation. A budget amendment may not transfer any part of a General Fund capital appropriation to an operating program or purpose.

On or before the 3rd Wednesday in January of each year, the Secretary of Transportation shall submit to the General Assembly, subject to § 2-1257 of the State Government Article, a report on amendments of appropriations for programs of the Department of Transportation. A report under this section shall describe each proposed amended appropriation for a program that the Department has submitted or expects to submit during the current fiscal year under § 7-209 of this subtitle. The description shall include: an explanation of the purpose of the amendment; and an analysis of the impact of the amendment on appropriations of special and federal funds.

This section applies only to the following governing boards: the Board of Regents of Morgan State University; the Board of Regents of the University System of Maryland; and the Board of Trustees of St. Mary’s College of Maryland. A governing board to which this section applies may transfer money among objects and, subject to the limitation in subsection (c) of this section, among programs under the jurisdiction of the governing board without submitting a proposed amended appropriation for a program under § 7-209 of this subtitle. During a fiscal year, a governing board may not transfer from a program more than 5% of the appropriation in the State budget for that program. At the end of each fiscal year, each governing board to which this section applies shall give to the Comptroller, the Department of Budget and Management, and, subject to § 2-1257 of the State Government Article, the Department of Legislative Services, for information only, a summary of the transfers among programs made during the fiscal year. Section 7-209 of this subtitle does not apply to a transfer under this section.

Subject to paragraph (2) of this subsection and except as provided in subsection (b) of this section, with the approval of the Board of Public Works, the Governor may reduce, by not more than 25% of the legislative appropriation as approved by the General Assembly for any eight–digit program in the State operating budget in any fiscal year, any appropriation: that the Governor considers unnecessary; or that is subject to budgetary reductions required under the budget bill as approved by the General Assembly. At least 7 calendar days before the Board of Public Works may approve a proposed reduction of an appropriation under this subsection, the Secretary of Budget and Management shall: publish on the Department of Budget and Management’s Web site, in a machine–readable format, notice of the proposed reduction, including: the name of the State agency or program for which the appropriation is intended and a brief narrative summary of the impact of the proposed reduction on the State agency or program; the amount of the proposed reduction in both dollar and percentage values; the fund source of the appropriation subject to the proposed reduction; and any projected reductions in workforce as a result of the proposed reduction; provide the notice required under subparagraph (i) of this paragraph to the Board of Public Works for publication, in a machine–readable format, on the Board’s Web site; and provide written notice of the proposed reduction, including the items specified under subparagraph (i) of this paragraph, to: the Legislative Policy Committee; the Senate Budget and Taxation Committee; and the House Appropriations Committee. The Governor may not reduce an appropriation to the Legislative Branch or the Judicial Branch of the State government. The Governor may not reduce an appropriation for: payment of the principal of or interest on the State debt; public schools, including the Maryland School for the Deaf; the Maryland School for the Blind; or the salary of a public officer, during the term of office. Except as provided in § 8–109 of the State Personnel and Pensions Article, the Governor may not reduce an appropriation for the salary of any nontemporary employee in the State Personnel Management System.

Subject to the limitations in this subtitle, an officer or unit of the State government may spend an appropriation for a program of the officer or unit in accordance with the current appropriation. Except as provided in subsection (c) of this section, whenever an officer or a unit of the State government spends any part of an appropriation, the officer or unit promptly shall send the bill to the Comptroller for payment. Subject to the limitations in this subtitle, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may issue a warrant for payment of the bill. The Comptroller shall exempt an officer or unit of the State government from the requirements of subsection (b) of this section if the Comptroller determines that the exemption would be in the public interest. Subject to the limitations in this subtitle, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may issue warrants from time to time to provide the officer or unit with the working cash that the Comptroller finds necessary. The Comptroller shall keep a record that shows each exemption, each amount advanced to an officer or unit, and the reasons for each exemption. The record shall be kept in the Office of the Comptroller and shall be open to public inspection. An officer or unit shall send to the Comptroller the voucher or a copy of the voucher for each expenditure made from an advance under this subsection.

An officer or unit of the State government may spend money from a special fund or the federal government that is not estimated or included in the State budget or exceeds the estimate in the State budget and is paid into the State Treasury for a program after an approved amendment of a special or federal fund appropriation for the program: for the specific purpose to which the money is dedicated by State law or act of Congress; or if the money is not dedicated to a specific purpose, with the approval of the Governor and as authorized in an approved budget amendment, for necessary current operations. Money that is derived from a source estimated and included in an appropriation act and that is in excess of the estimate shall remain in the General Fund of the State until appropriated by a subsequent appropriation act.

Before issuance of a warrant for payment of a bill, the Comptroller may have the bill audited.

The Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not sign a blank warrant. A warrant for payment of a bill is not valid unless the following information appears on the face of the warrant: the amount of the warrant; the date of issue; a reference to the document that identifies: the payee; and the officer or unit of the State government that submitted the bill; and the certification of the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller that: the amount of the warrant is correct; and the officer or unit submitted the bill for which the warrant is issued. A warrant for an advance of money to an officer or unit of the State government is not valid unless the following information appears on the face of the warrant: the amount of the warrant; the date of issue; the identity of the officer or unit; and the certification of the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller that the amount of the warrant is correct.

A warrant shall charge an applicable appropriation to the officer or unit that: has submitted a bill for payment; or is to receive an advance.

The Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not issue a warrant for disbursement of an appropriation to an institution or corporation unless the Comptroller has on file an affidavit that complies with the requirements of this section. An affidavit under this section shall state that the affiant personally knows that no money from State funds has been paid or promised to any legislative agent, lawyer, or lobbyist for any service to obtain the appropriation. An affidavit under this section shall be signed by: the president and the treasurer of the institution or corporation; or if there is no president or treasurer, another officer or individual who has charge of and disburses the money of the institution or corporation.

Unless a person and the Comptroller or any duly authorized agent or representative designated by the Comptroller have entered into an agreement for the payment of the person’s indebtedness to the State and the payments are current or unless, for good cause shown, the Board of Public Works grants a waiver, the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller may not issue to a person a warrant for payment of a claim due to the person in the person’s own right, if the person owes $50 or more to the State, a unit of the State government, or any governmental entity under the control of the State.

The Comptroller may not allow a warrant to be issued until a record is made in the books of the Office of the Comptroller. The record shall: state the amount of the warrant; state the account against which the warrant is charged; and identify: the payee and the officer or unit of the State government that submitted the bill; or for an advance, the officer or unit. The Comptroller shall keep an abstract of each warrant.

Subject to the limitations in this Part IV of this subtitle and any other law, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may disburse money from the State Treasury in accordance with a warrant.

A check that is drawn to disburse money from the State Treasury shall be: signed by the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer; and countersigned by the Comptroller, the Chief Deputy Comptroller, or a deputy comptroller.

In addition to disbursement of money by check authorized under § 7–227 of this subtitle, the Treasurer, upon warrant of the Comptroller, may disburse money by those means generally recognized and accepted by the banking industry for transferring funds. Such disbursements shall be made in accordance with regulations promulgated by the Treasurer, after concurrence by the Comptroller, in accordance with Title 10, Subtitle 1 of the State Government Article.

The Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall keep a receipt for money disbursed from the State Treasury.

In this section, “Fund” means the Undeliverable Checks Fund. There is an Undeliverable Checks Fund. If a check that the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer issues is returned to the Comptroller as undeliverable, the Comptroller: shall keep the check for a period of not more than 30 days; during that period, shall try diligently to find the correct address of the payee and to deliver the check; and if unable to deliver the check during that period, shall send the check to the Treasurer. Whenever the Comptroller returns a check as undeliverable, the Treasurer shall: cancel the check; and request the Comptroller to credit the amount of the canceled check to the Fund. On a warrant charged against the Fund, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may issue a check to replace a check canceled under this section. As required by State or federal law, or as considered proper by the Treasurer, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall: on a warrant charged against the Fund, disburse to the original source any money in the Fund required to be returned to the source; or request the Comptroller to transfer any money in the Fund to another fund or account. At the end of each fiscal year, the Treasurer: shall identify the checks that have been credited to the Fund and remain unclaimed for 2 years; determine a reasonable balance to retain in the Fund that will be needed to honor each replacement check that may be issued on a warrant charged against the Fund; and request the Comptroller to transfer the balance in the Fund, after subtraction of the amount determined as provided in item (2) of this subsection, to the General Fund of the State. Undeliverable checks credited to the Fund are not subject to Title 17 of the Commercial Law Article. Notwithstanding Title 4, Subtitle 3, Part III of the General Provisions Article, at the end of each fiscal year, the Treasurer may electronically publish on the Treasurer’s website the names of payees of checks that have remained unclaimed for 2 years or more.

In this section, “Fund” means the Unpresented Checks Fund. There is an Unpresented Checks Fund. At the end of each fiscal year, the Treasurer shall: identify each check that: has been issued against the money of the State; and has remained unpresented for 2 years; and request the Comptroller to credit the aggregate amount of the checks to the Fund. At the end of each fiscal year, the Treasurer shall: determine a reasonable minimum balance to retain in the Fund that will be needed to honor each check that is presented after its amount has been credited to the Fund; and request the Comptroller to transfer the balance in the Fund to the General Fund of the State. After the amount of a check has been credited to the Fund, on a warrant charged against the Fund, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer may reissue a check that is presented for payment. As required by State or federal law, or as considered proper by the Treasurer, the Treasurer, the Chief Deputy Treasurer, or a deputy treasurer shall: void an unpresented check; and request the Comptroller to transfer the amount of the voided check to: the original source of the money; or another fund or account. Unpresented checks credited to the Fund are not subject to Title 17 of the Commercial Law Article. Notwithstanding Title 4, Subtitle 3, Part III of the General Provisions Article, at the end of each fiscal year, the Treasurer may electronically publish on the Treasurer’s Web site the names of payees of checks that have remained unpresented for 2 years or more.

An officer or unit of the State government may not spend any part of a lump sum appropriation to the officer or unit until the Board of Public Works approves the schedule for apportionment and disbursement of the appropriation, as provided in § 7-207 of this subtitle.

An officer or unit of the State government may not spend money: in excess of the total appropriation to the officer or unit; or in excess of the amounts set forth in the current schedule for apportionment and disbursement of the appropriation. The State may not reimburse any expenditure to the extent that the expenditure violates subsection (a) of this section. The State is not obligated to appropriate money to pay an expenditure that violates subsection (a) of this section. Each employee or member of a unit and each officer of the State government who makes an expenditure that violates subsection (a) of this section is guilty of neglect of official duty and is subject to removal.

Except as provided in paragraph (2) of this subsection, this section applies to: each unit of the State government; and each unit that: is created by general law; and operates in 2 or more counties. This section does not apply to a bicounty commission that county governing bodies appoint if those bodies also review the budget of the commission. A unit may not adopt a rule or regulation or take any other administrative action that would result in expenditures in excess of the limitations in the State budget unless: the General Assembly expressly approves the administrative action; if the General Assembly is not in session, the President of the Senate and the Speaker of the House of Delegates: consult with the Joint Audit and Evaluation Committee; and after receiving the written advice of the Joint Audit and Evaluation Committee, jointly give written approval for the administrative action; or the Governor declares, by proclamation, that the administrative action is necessary and a matter of emergency.

A unit of the Executive Branch of the State government may not create a permanent staff position that is in addition to the positions for which the State budget and its supporting documents specifically provide unless: the Board of Public Works gives its approval; and money for the position is available: from the General Emergency Fund; or by budget amendment, from other special or federal funds. On the 1st day of each regular session of the General Assembly, the Secretary of Budget and Management shall submit, subject to § 2-1257 of the State Government Article, to the appropriate committees of the General Assembly a report that: states the total number of additional staff positions for which the Board of Public Works has given approval since the last regular session; and for each position, states: the type; the salary or wages; and the reasons for the approval. The approval of a new position under this section is temporary. However, unless the General Assembly deletes the position from the budget bill, the position continues with the compensation provided in the State budget.

This section applies to any officer or agent of the State who is charged with: construction, improvement, or maintenance of a building or work; or management of or provision for a State institution. An officer or agent to whom this section applies may not: make or participate in making for any purpose a contract that purports to bind the State to pay any amount unless money has been appropriated for that purpose and remains unspent; create a deficiency; or incur a liability or spend money in excess of the applicable appropriation. The State is not liable on any contract made in violation of subsection (b) of this section. An officer or agent who willfully or knowingly violates subsection (b)(1) of this section is personally liable on the contract. If an officer or agent to whom this section applies is found guilty of willfully or knowingly violating any provision of subsection (b)(2) or (3) of this section: the officer or agent is personally liable to the State for the amount of the deficiency or excess; and the officer or agent is subject: for a 1st offense, to a fine not exceeding $1,000 or imprisonment in the State Penitentiary not exceeding 2 years or both; and for a subsequent offense, to a fine not exceeding $2,000 or imprisonment in the State Penitentiary not exceeding 2 years or both.

In this section the following words have the meanings indicated. “Capital project” means a project for which funds are spent for: the construction, reconstruction, or rehabilitation of a transportation facility, as defined in § 3-101(l) of the Transportation Article; or capital equipment as defined by the Secretary of Transportation. “Major capital project” has the meaning stated in § 2-103.1 of the Transportation Article. “Modal administration” has the meaning stated in § 1-101 of the Transportation Article. Except for an emergency project, the Department of Transportation, including the Office of the Secretary and the modal administrations, may not use an appropriation for a major capital project for any capital project that was not included in the Consolidated Transportation Program when the appropriation was made.

An officer or unit of State government may not use any part of an appropriation to settle a claim of unlawful harassment or discrimination, based on any characteristic protected by law, filed against an official or employee of State government in the individual’s personal capacity.