This section applies to the following entities: an institution that receives an appropriation for operating expenses; and an officer or unit of the State government that: receives an appropriation for operating expenses; or has its expenses paid out of the fees collected by the officer or unit. At the end of each fiscal year, each entity that, during that fiscal year, has received an appropriation for operating expenses shall give the Comptroller notice of: the amount of the appropriation that is unspent; and the amount of the unspent part that is needed to meet unpaid obligations incurred during the fiscal year.

Except as otherwise provided by law, at the end of a fiscal year, the unspent balance of each appropriation that was made for that fiscal year to an officer or unit of the State government or to an institution reverts to the General Fund of the State.

At the end of a fiscal year, the amount of the unspent part of an appropriation that is needed to meet unpaid obligations incurred during that fiscal year does not revert to the General Fund of the State.

At the end of a fiscal year, the unspent part of an appropriation from a source that State law or an Act of Congress dedicates to a specific purpose does not revert to the General Fund of the State but reverts to the appropriate special fund.

In this section the following words have the meanings indicated. “Capital expenditure” includes an expenditure for: acquisition of land, buildings, or equipment; or new construction. “Miscellaneous capital grant” means a grant for a capital project for an entity that is not a unit of State government funded in the annual State operating budget within the Department of General Services. At the end of a fiscal year, the unspent part of an appropriation for a capital expenditure made through the State budget or a supplementary appropriation act other than an enabling act for a general obligation loan: does not revert to the General Fund; and with the approval of the Board of Public Works, may be carried in a capital account until it is spent in accordance with subsection (c) of this section or until the authority to spend the appropriation for a project terminates. Money carried in a capital account under subsection (b) of this section may be spent only for a capital purpose. Unless otherwise provided by law, the authority to spend the appropriation for a project terminates: 1 year after the latest of abandonment, completion, or acceptance of the project; or except to the extent the Board has encumbered money for a State project or program authorized by an appropriation act, 7 years after the effective date of the appropriation act that authorized the project unless: the appropriation act provides otherwise; or in an emergency, the Board unanimously grants a temporary exception for 1 year. This subsection applies to a miscellaneous capital grant 3 years or more after the effective date of the appropriation act that authorized the grant. On or before July 1 each year, the Department of General Services shall submit to the Legislative Policy Committee, in accordance with § 2–1257 of the State Government Article, a report that identifies each grant for which: no part of the grant is under contract approved by the Board; and the Board has not encumbered money for any part of the grant.

This section applies only to St. Mary’s College of Maryland. At the end of a fiscal year, the unencumbered balance of each appropriation from the General Fund, including an amount received as reimbursement of statewide indirect costs, to the Board or any of these institutions reverts to the General Fund of the State. The unencumbered balance of any other appropriation to the Board or these institutions: does not revert to the General Fund of the State; shall be available as provided in the State budget or through an approved budget amendment; and shall be reported by the Board or institution to the State Comptroller at the end of each fiscal year.

Unless the State budget expressly provides otherwise, whenever a new or substantially renovated facility does not begin operation on the date that was used to determine the amount of the appropriation to the facility in the State budget, the part of the appropriation for operating expenses that is not needed to provide services to the same clients, students, patients, or incarcerated individuals shall revert to the General Fund or to an appropriate special fund and may not be spent for any other purpose or transferred by a budget amendment. If a facility under this section begins to operate after the date on which the appropriation was based but in the same fiscal year, the Department of Budget and Management shall determine, on a pro rata basis, the amount of the appropriation for operating expenses that shall revert to the General Fund.

The Secretary of Budget and Management shall give each member of the General Assembly notice of: the total reversions at the end of each fiscal year; and any revision of an estimated reversion from an appropriation in the State budget for the current fiscal year.

There is a State Reserve Fund. The State Reserve Fund comprises: the Dedicated Purpose Account; the Revenue Stabilization Account; and the Catastrophic Event Account.

In this section, “Account” means the Dedicated Purpose Account. The Dedicated Purpose Account is established: to retain appropriations for major, multi-year expenditures where the magnitude and timing of cash needs are uncertain; and beginning in fiscal year 1996, to meet specific expenditure requirements. The Governor may provide an appropriation in the budget bill to the Account for a specific purpose or purposes. For each appropriation to the Account, the Governor may: include the funds in the State budget subject to appropriation by the General Assembly; or transfer the funds by budget amendment from the Account to the expenditure account of the appropriate unit of State government only after the proposed budget amendment has been: submitted to the Senate Budget and Taxation Committee and the House Appropriations Committee of the General Assembly; and subject to a 45–day review and comment period by the Legislative Policy Committee. The Account is a continuing, nonlapsing fund which is not subject to § 7-302 of this subtitle. The unspent balance of an appropriation to the Account reverts to the Revenue Stabilization Account 4 years after the end of the fiscal year for which the appropriation was made. If the Governor determines that certain funds in the Account are no longer needed for the purpose for which they were originally appropriated, those funds may be transferred by budget amendment to the Revenue Stabilization Account after the proposed budget amendment has been: submitted to the Senate Budget and Taxation Committee and the House Appropriations Committee of the General Assembly; and approved by the Legislative Policy Committee.

Any money received by the State or otherwise subject to the direction or control of a State official, as a result of a settlement, judgment, or consent decree made or entered into after January 1, 2012: shall be deposited in the State treasury; and except for funds designated as restitution: shall be expended only as authorized in the State budget bill as enacted; and may be transferred by budget amendment. In negotiating any State payment under any national or multistate settlement, judgment, or consent decree, a State official may recommend restrictions on the use of that State payment but shall also request that the settlement, judgment, or consent decree also provide that the funds may be used for any public purpose, to the extent that doing so is not inconsistent with the State or its citizens securing the maximum benefit from the settlement, judgment, or consent decree.

In this section the following words have the meanings indicated. “Account” means the Revenue Stabilization Account. “Estimated General Fund revenues” means the estimated General Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates submitted to the Governor under § 6–106 of this article in December preceding the fiscal year. “Unappropriated General Fund surplus” does not include the amount of nonwithholding income tax revenues that exceed the capped estimate determined under § 6–104(e) of this article. The Revenue Stabilization Account is established to retain State revenues for future needs and reduce the need for future tax increases by moderating revenue growth. It is the goal of the State that 10% of estimated General Fund revenues in each fiscal year be retained in the Account. The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. The Account consists of: money appropriated in the State budget to the Account; money distributed to the Account by the State Comptroller as provided in § 7–329 of this subtitle; and interest or other income earned from the investment of any portion of this Account or any other account in the State Reserve Fund. Except as provided in subsection (f) of this section, for each fiscal year, except fiscal years 2026 and 2027: if the Account balance is below 3% of the estimated General Fund revenues for that fiscal year, the Governor shall include in the budget bill an appropriation to the Account equal to at least $100,000,000; and if the Account balance is at least 3% but less than 7.5% of the estimated General Fund revenues for that fiscal year, the Governor shall include in the budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or whatever amount is required for the Account balance to exceed 7.5% of the estimated General Fund revenues for that fiscal year. At the end of fiscal year 2020 and each fiscal year thereafter, if the amount of nonwithholding income tax revenues exceeds the capped estimate determined under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in § 7–329(c) and (d) of this subtitle. The appropriations required by subsection (e)(1) of this section are not required when the Account balance exceeds 7.5% of the estimated General Fund revenues. The distributions required by subsection (e)(2) of this section are not required when the Account balance exceeds 10% of the estimated General Fund revenues for that fiscal year. Unless the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, if authorized by an act of the General Assembly or specifically authorized in the State budget bill as enacted, the Governor may transfer funds from the Account to General Fund revenues as necessary to support the operation of State government on a temporary basis. If the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, the Governor may transfer funds from the Account to General Fund revenues only if the transfer is authorized by an act of the General Assembly other than the State budget bill. Unless the transfer would result in an Account balance below 5% of the estimated General Fund revenues for the fiscal year in which the transfer is made, the Governor may, subject to the approval of the Board of Public Works, transfer funds from the Account to the Disaster Recovery Fund established under § 14–110.5 of the Public Safety Article. If the budget bill as submitted to the General Assembly includes a transfer of funds from the Account pursuant to subsection (g) of this section, the budget bill as enacted by the General Assembly may provide for a reduction of the amount of the transfer from the Account by an amount up to the amount of the reductions made by the General Assembly in the General Fund appropriations. Funds of the Account may only be transferred from the Account as provided in this section and are not subject to transfer by budget amendment. Except as provided in paragraph (2) of this subsection, for fiscal years 2007 through 2023, the Governor shall include in the budget bill an appropriation: for fiscal year 2017, to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; for fiscal year 2020: to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and to the Account equal to the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000, less the amount of the appropriation under item 1 of this item; for fiscal year 2021, to the Account in the amount of $291,439,149; except as provided in item (v) of this paragraph, for fiscal year 2022 and each fiscal year thereafter: to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; to the Postretirement Health Benefits Trust Fund established under § 34–101 of the State Personnel and Pensions Article an amount, up to a maximum of $25,000,000, that is equal to one–quarter of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and to the Account equal to the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; and for fiscal year 2024: to the Maryland Equity Investment Fund established under § 10–487 of the Economic Development Article an amount, up to $10,000,000, that is equal to 10% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; to the accumulation funds of the State Retirement and Pension System an amount, up to a maximum of $15,000,000, that is equal to 15% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000; and to the Postretirement Health Benefits Trust Fund established under § 34–101 of the State Personnel and Pensions Article an amount, up to a maximum of $25,000,000, that is equal to 25% of the amount by which the unappropriated General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000. The appropriation required under this subsection for any fiscal year may be reduced by the amount of any appropriation to the Account required to be included for that fiscal year under subsection (e) of this section.

There is a Maryland Stadium Facilities Fund. The Fund is: a special, nonlapsing fund that consists of money that may be appropriated, transferred, credited, or paid to it from any source; and not subject to § 7–302 of this subtitle. The Treasurer shall separately hold, and the Comptroller shall account for, the Fund. The Fund shall be invested and reinvested in the same manner as other State funds. Any investment earnings shall be retained to the credit of the Fund. Money credited to the Maryland Stadium Facilities Fund may be used, in accordance with approved comprehensive financing plans, to: pay rent to the Maryland Stadium Authority; with the approval of the Board of Public Works, make grants or loans, not exceeding $1 million in any fiscal year, to the Authority for its corporate purposes; with the approval of the Board of Public Works, finance capital construction in lieu of issuing bonds; or financially support, through equity investment, loan, guarantee, or otherwise, full or partial private financing of any element of the facility. At the end of the fiscal year, a transfer to the Dedicated Purpose Fund of the State Reserve Fund shall be made to the extent that the balance of revenues in the Fund exceeds: $24 million; and the Debt Service Reserve Fund being held by or on behalf of the Maryland Stadium Authority for payment of debt service on revenue bonds issued by the Authority. Any revenues transferred to the State Reserve Fund in accordance with paragraph (1) of this subsection shall be dedicated for use by the Maryland Stadium Authority and may be transferred from the State Reserve Fund by an appropriation in the budget bill or, with the approval of the Legislative Policy Committee, by budget amendment. The unspent balance of any revenues for the Maryland Stadium Authority in the State Reserve Fund shall revert to the General Fund 2 years after the end of the fiscal year in which the transfer was made.

There is an Energy Overcharge Restitution Fund. The Fund is a continuing, nonlapsing fund that is not subject to the provisions of § 7–302 of this subtitle. There shall be credited to the Fund: all federal fund revenues consisting of refunds received by the State from any source as a direct or indirect result of litigation or administrative proceedings prosecuted by the U.S. Department of Energy to redress violations of federal petroleum pricing regulations under the Emergency Petroleum Allocation Act, 15 U.S.C. §§ 751 through 756, and the Energy Policy and Conservation Act, 15 U.S.C. §§ 757 through 760H; and all special fund revenues received and accepted as a gift under § 2–201 of this article that are expressly given for the purpose of energy assistance or weatherization for individuals in this State. Revenues received by the State as a result of claims representing purchases by the State are excluded from the Fund. The Treasurer shall: invest and reinvest the Fund in the same manner as other State funds; and credit any investment earnings to the Fund. Expenditures from the Fund shall be made by: an appropriation in the annual State budget; or a budget amendment in accordance with § 7–209 of this title, provided that any budget amendment shall be submitted to and approved by the Legislative Policy Committee prior to the expenditure or obligation of funds. In accordance with the provisions of subsection (f) of this section, the Director of the Maryland Energy Administration or the designee of the Director shall: administer the Fund; develop plans, prepare and submit proposals to the Governor for Fund use, and undertake any action that is necessary to obtain for the Fund all energy overcharge refunds and judgment awards to which the citizens of the State have a legal entitlement; assess and determine the respective needs of the citizens of the State and develop recommendations for the allocation and disbursement of funds in accordance with those needs pursuant to the provisions of subsection (f) of this section; conduct public hearings at least twice a year at times and places the Director or the designee of the Director determines; and perform other duties as may be assigned by the Governor. The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: expressly provided by statute; or required as a condition of the acceptance of funds. The Fund shall be expended: for emergency energy assistance provided under § 5–5A–07(a) of the Human Services Article; for energy assistance programs provided under § 5–5A–07(b) of the Human Services Article; for energy assistance and weatherization programs provided under § 4–211(c) of the Housing and Community Development Article and Title 9, Subtitle 20 of the State Government Article; for energy extension service and low–income home–energy programs provided under 42 U.S.C. §§ 7001 through 7011 and 8621 through 8629; for other energy assistance or weatherization programs meeting the federal restitutive objectives governing the distribution of overcharge refunds to the states; for any other program within the definition of “energy conservation programs” as provided by Pub. L. No. 97–377, 96 Stat. 1830, § 155 (1982) and subsequent amendments, including the State Energy Efficiency Programs Improvement Act of 1990, Pub. Law No. 101–440; for energy efficiency and economic development loans provided under Title 9, Subtitle 20A of the State Government Article; or for any other purpose required as a condition of their acceptance. In addition to the provisions of paragraph (2) of this subsection, priority shall be given to the energy assistance and weatherization programs. Disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for such programs under federal or State law.

There is a Cigarette Restitution Fund. The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle. Subject to subsections (h) and (i) of this section, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with tobacco product manufacturers, tobacco research associations, or any other person in the tobacco industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. There shall be credited to the Fund all money collected under § 24–508 of the Health – General Article or § 5–608 of the Labor and Employment Article. The Treasurer shall: invest and reinvest the Fund in the same manner as other State funds; and credit any investment earnings to the Fund. Expenditures from the Fund shall be made by an appropriation in the annual State budget. The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: expressly provided by statute; required as a condition of the acceptance of funds; or determined to be necessary to avoid recoupment by the federal government of money paid to the Fund. Except as otherwise provided under subsection (h) of this section, disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law as provided in this section. The Cigarette Restitution Fund shall be used to fund: the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article; the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article; the activities of the Southern Maryland Agricultural Development Commission, in accordance with § 13–611 of the Economic Development Article; for each of fiscal years 2025 through 2029, the Maryland Community Health Resources Commission Fund, in accordance with subsection (g) of this section; the public education campaign on prostate, lung, and breast cancer prevention established under Title 13, Subtitle 11A of the Health – General Article; and other programs that serve the following purposes: reduction of the use of tobacco products by individuals under the age of 21 years; implementation of the Southern Maryland Regional Strategy–Action Plan for Agriculture adopted by the Tri–County Council for Southern Maryland with an emphasis on alternative crop uses for agricultural land now used for growing tobacco; public and school education campaigns to decrease tobacco use with initial emphasis on areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; smoking cessation programs; enforcement of the laws regarding tobacco sales; the purposes of the Maryland Health Care Foundation under Title 20, Subtitle 5 of the Health – General Article; primary health care in rural areas of the State and areas targeted by tobacco manufacturers in marketing and promoting cigarette and tobacco products; prevention, treatment, and research concerning cancer, heart disease, lung disease, tobacco product use, and tobacco control, including operating costs and related capital projects; substance abuse treatment and prevention programs; and any other public purpose. The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill. Amounts may only be expended from the Fund through appropriations in the State budget bill as provided in this subsection. The Governor shall include in the annual budget bill appropriations from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be available to the Fund in the fiscal year for which the appropriations are made. For each fiscal year for which appropriations are made, at least 50% of the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), and (vi)1 through 9 of this section subject to the requirement of subsection (e)(2) of this section. This paragraph does not apply in fiscal year 2026. For each fiscal year for which appropriations are made, at least 30% of the appropriations shall be made for the purposes of the Maryland Medical Assistance Program. For each fiscal year for which appropriations are made, 0.15% of the Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the Business Regulation Article. This paragraph does not apply to fiscal year 2027. For each of fiscal years 2025 through 2029, the Governor shall include in the annual budget bill an appropriation of $8,000,000 to the Maryland Community Health Resources Commission Fund. Any additional appropriations, not subject to paragraph (3), paragraph (4), or paragraph (5) of this subsection, may be made for any lawful purpose. The Fund shall include a separate account consisting of payments received by the State as a result of litigation by participating manufacturers related to the State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. Except as provided in subparagraphs (ii) and (iii) of this paragraph, distributions from the separate account may be used only to supplant the General Fund appropriation to the historically black colleges and universities required under § 15–128 of the Education Article. For fiscal year 2026 only, distributions from the separate account may be used to support Medicaid expenses. For fiscal year 2027 only, any amount that is distributed from the separate account that is in excess of the first $35,000,000 distributed may remain in the account or be used for purposes other than supplanting the General Fund appropriation to the historically black colleges and universities required under § 15–128 of the Education Article. The Fund shall include a separate account consisting of payments received by the State from any judgment, settlement, penalty, offer of compromise, or any other enforcement action related to the sale and marketing of electronic smoking devices. Distributions from the separate account established under paragraph (1) of this subsection may be used, consistent with any other provision of State law, to supplement the General Fund appropriations designated for programs under subsection (f) of this section with the purpose of reducing the use of tobacco products by individuals under the age of 21 years. For each program, project, or activity receiving funds appropriated under subsection (g)(3) of this section, the Governor shall: develop appropriate statements of vision, mission, key goals, key objectives, and key performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and report annually, subject to § 2–1257 of the State Government Article, to the General Assembly no later than December 1 on: total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and the specific outcomes or public benefits resulting from that expenditure.

In this section the following words have the meanings indicated. “Account” means the Catastrophic Event Account. “Fund” means the State Disaster Recovery Fund established under § 14–110.5 of the Public Safety Article. Subject to the provisions of this section, the Account is established to enable the State or a local government to respond without undue delay to: a natural disaster or other catastrophic situation; federal employee financial hardship from a full or partial federal government shutdown due to a lapse in federal appropriations that cannot be taken care of within the resources of existing appropriations; or former federal employee financial hardship from the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances. The Governor may provide an appropriation in the budget bill to the Account. Subject to paragraph (2) of this subsection, after a 10–day review and comment period by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Account to: the expenditure accounts of the appropriate unit of State government or unit of local government; or subject to subsection (e)(2)(ii) of this section, the State Disaster Recovery Fund. If the federal government is in a full or partial shutdown due to a lapse in appropriations, after a 2–day review and comment period by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Account to the Federal Government Employee Assistance Loan Fund established under § 7–327 of this subtitle. Funds appropriated to the Catastrophic Event Account: may not be used to offset operating deficiencies in regular programs of State government; but may be expended to assist a unit of State government or unit of local government in funding costs in connection with: a natural disaster; a catastrophic situation; a full or partial federal government shutdown due to a lapse in appropriations; or a closure, relocation, or mass layoff of a unit of the federal government; and may be transferred to the State Disaster Recovery Fund if: the balance of the Fund has been depleted due to use or transfer; or the estimated costs for providing adequate disaster relief for a natural disaster or catastrophic situation are in excess of the Fund’s balance. The Account is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. The Treasurer shall separately hold, and the Comptroller shall account for, the Account. The Account shall be invested and reinvested in the same manner as other State funds. Any investment earnings shall be subject to § 7–311(d) of this subtitle. Money appropriated to the Account does not revert to the Revenue Stabilization Account.

In this section the following words have the meanings indicated. “Council” means the Maryland State Arts Council. “General fund growth adjustment” means the percentage by which the projected total General Fund revenues for the upcoming fiscal year exceed the revised estimate of total General Fund revenues for the current fiscal year, as contained in the report of estimated State revenues submitted by the Board of Revenue Estimates to the Governor under § 6–106(b) of this article. For fiscal years 2013 through 2024, the Governor shall include in the annual budget bill a General Fund appropriation for the Council in an amount not less than the amount of the General Fund appropriation for the Council for the immediately preceding fiscal year increased by the general fund growth adjustment. For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill a General Fund appropriation for the Council in an amount not less than the result of the following calculation: any funds distributed to the Council in the immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article increased by the general fund growth adjustment; plus the amount of the General Fund appropriation for the Council for the immediately preceding fiscal year increased by the general fund growth adjustment; minus the amount of funds distributed to the Council in the immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article. The Legislative Auditor has the authority to conduct a review or audit of any recipient of a grant from the Council.

In this section, “Fund” means the Public School Construction Fund. The Fund is a continuing, nonlapsing fund which is not subject to § 7–302 of this subtitle. The Fund consists of money transferred by the Camden Yards Financing Funds as required under § 10–652 of the Economic Development Article. The Treasurer shall separately hold, and the Comptroller shall account for, the Fund. Subject to the approval of the Interagency Commission on School Construction, money credited to the Fund shall be used only for public school construction projects and public school capital improvements consistent with the provisions of Title 5, Subtitle 3 of the Education Article. Money from the Fund may only be transferred from the Fund to the extent authorized by an appropriation as enacted in the annual State budget bill and is not subject to transfer by budget amendment. It is the intent of the General Assembly that the funds provided for school construction in the Fund be in addition to and not in substitution of general funds or any other funds provided in the Governor’s allowance for public school construction.

In this section, “Fund” means the Federal Government Employee Assistance Loan Fund. There is a Federal Government Employee Assistance Loan Fund. The purpose of the Fund is to provide loans to State residents who are: employees of the federal government, required to report to work, and who are not being paid because of a full or partial federal government shutdown due to a lapse in appropriations after January 1, 2025; or in the immediately preceding 6 months, and on or after January 1, 2025, were terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the employees’ control, and who are experiencing financial hardship as determined by the Maryland Department of Labor. The Maryland Department of Labor shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle that shall be available in perpetuity for the purpose of providing loans in accordance with the provisions of this section. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Maryland Department of Labor is authorized to disclose information to third–party vendors to verify federal employment for the purpose of assisting with the implementation of the Fund, subject to privacy considerations. The Fund consists of: money appropriated in the State budget to the Fund; any interest earnings of the Fund; money transferred from the Catastrophic Event Account in accordance with § 7–324 of this subtitle; repayments on loans made from the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund shall be used only to provide no–interest loans to State residents who are: employees of the federal government, required to report to work, and who are not being paid because of a full or partial federal government shutdown due to a lapse in appropriations after January 1, 2025; or in the immediately preceding 6 months, and on or after January 1, 2025, were terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the employees’ control, and who are experiencing financial hardship as determined by the Maryland Department of Labor. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Subject to paragraph (2) of this subsection, the Maryland Department of Labor shall establish procedures and eligibility criteria for loans from the Fund. The eligibility criteria shall include that: the federal government is in a full or partial shutdown due to a lapse in appropriations; or a unit of the federal government has been closed, been relocated, experienced mass layoffs, or experienced other similar circumstances; and an individual applying for a loan from the Fund is, a resident of the State who is: an employee of the federal government, required to report to work, and not being paid because of the full or partial federal government shutdown due to the lapse in appropriations after January 1, 2025; or a former employee of the federal government who, within the 6 months immediately preceding the date of the loan application, and on or after January 1, 2025, was terminated from employment by the federal government due to the closure, relocation, or mass layoff of a unit of the federal government, or other similar circumstances beyond the individual’s control, and who is experiencing financial hardship as determined by the Maryland Department of Labor. The Maryland Department of Labor may establish other criteria to best assist federal employees facing financial hardship. The procedures shall include: application procedures; payment procedures from the Fund; and if repayment is required, repayment procedures, including timelines, for an individual to repay a loan from the Fund. The Maryland Department of Labor may forgive a loan provided under this section.

There is a Mortgage Loan Servicing Practices Settlement Fund. The Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this subtitle. Except for restitution and funds designated as fines, civil penalties, and money that are otherwise required under Maryland law, a judgment, or a settlement agreement to be paid into the General Fund of the State, there shall be credited to the Fund all revenues consisting of funds received by the State from any source resulting, directly or indirectly, from any judgment against or settlement with bank mortgage servicers or any other person in the mortgage servicing industry relating to litigation, administrative proceedings, or any other claims made or prosecuted by the State to recover damages for violations of State law. The Treasurer shall: invest and reinvest the Fund in the same manner as other State funds; and credit any investment earnings to the Fund. Expenditures from the Fund shall be made by an appropriation in the annual State budget or may be transferred by budget amendment. The Fund shall be expended subject to any restrictions on its use or other limitations on its allocation that are: expressly provided by statute; or required as a condition of the acceptance of funds. It is the intent of the General Assembly that disbursements from the Fund to programs funded by the State or with federal funds administered by the State shall be used as provided in this section solely to supplement, and not to supplant, funds otherwise available for the programs under federal or State law. The Mortgage Loan Servicing Practices Settlement Fund shall be used for housing and foreclosure–relief purposes and for related investigation and enforcement activities, including: the provision of housing counseling; legal assistance related to foreclosure, evictions, and housing activities; criminal or civil investigations of fraud related to housing and the securitization of mortgage loans; relevant enforcement activities; foreclosure prevention, remediation, and restitution; programs to address community blight; programs reasonably targeted to benefit persons harmed by mortgage fraud; and any other public purpose reasonably related to housing and foreclosure relief. The Mortgage Loan Servicing Practices Settlement Fund may be used to provide legal assistance related to any type of legal proceeding. The provisions of this subsection may not be construed to affect the Governor’s powers with respect to a request for an appropriation in the annual budget bill. For each program, project, or activity under subsection (f)(1) of this section for which funds are appropriated, the Governor shall: develop appropriate statements of vision, mission, key goals, objectives, and performance indicators and report these statements in a discrete part of the State budget submission, which shall also provide data for key performance indicators; and on or before October 1 of each year until 2016, report, subject to § 2–1257 of the State Government Article, to the General Assembly on: total funds expended, by program and subdivision, in the prior fiscal year from the Fund established under this section; and the specific outcomes or public benefits resulting from that expenditure.

In this section the following words have the meanings indicated. “Fund” means the Fiscal Responsibility Fund established under § 7–330 of this subtitle. “Nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article. “Nonwithholding income tax revenues” does not include: the county share of income tax quarterly estimated and final payments with returns made by individuals; income tax payments made by corporations; income tax refunds paid to individuals or corporations; or income tax withholding. At the end of fiscal year 2020, and each fiscal year thereafter, if General Fund revenues for the fiscal year are less than the March estimate of the Board of Revenue Estimates, the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article shall be applied to close the gap in revenues for that fiscal year. At the end of fiscal year 2022 only, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount necessary to close the gap in revenues under subsection (b) of this section, the State Comptroller shall distribute the remainder to the Fund for the purpose of providing, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859. Except as provided in subsection (b–1) of this section, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount necessary to close the gap in revenues under subsection (b) of this section, and if the balance of the Revenue Stabilization Account under § 7–311 of this subtitle is less than 6% of the estimated General Fund revenues for that fiscal year, the State Comptroller shall distribute to the Revenue Stabilization Account the lesser of: the remaining balance of nonwithholding income tax revenues in excess of the capped estimate determined under § 6–104(e) of this article; or the amount required for the Revenue Stabilization Account balance to equal 6% of the estimated General Fund revenues for that fiscal year. Except as provided in subsection (b–1) of this section, if the amount of nonwithholding income tax revenues that exceeds the capped estimate determined under § 6–104(e) of this article exceeds the amount the State Comptroller is required to distribute to the Revenue Stabilization Account under subsection (c) of this section, the State Comptroller shall distribute: subject to subsection (e) of this section, 50% of the remaining amount to the Revenue Stabilization Account; and the remainder to the Fund. The distribution to the Revenue Stabilization Account under subsection (d)(1) of this section does not apply if the amount in the Revenue Stabilization Account exceeds 10% of General Fund revenues.

In this section the following words have the meanings indicated. “Fund” means the Fiscal Responsibility Fund. “Nonwithholding income tax revenues” means the State share of income tax quarterly estimated and final payments with returns made by individuals, as defined in § 10–101 of the Tax – General Article. “Nonwithholding income tax revenues” does not include: the county share of income tax quarterly estimated and final payments with returns made by individuals; income tax payments made by corporations; income tax refunds paid to individuals or corporations; or income tax withholding. There is a Fiscal Responsibility Fund. The purpose of the Fund is to retain the amount of nonwithholding income tax revenues deposited to the Fund in accordance with § 7–329(d)(2) of this subtitle until the revenues are appropriated in the State budget. The State Comptroller shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle. The State Treasurer shall hold the Fund separately, and the State Comptroller shall account for the Fund. The Fund consists of nonwithholding income tax revenues that exceed the capped estimate determined under § 6–104(e) of this article deposited into the Fund by the State Comptroller under § 7–329(d)(2) of this subtitle. Except as provided in paragraphs (2) and (3) of this subsection, the Fund may be used only to provide pay–as–you–go capital funds for: public school construction and public school capital improvement projects, in accordance with Title 5, Subtitle 3 of the Education Article; capital projects at public community colleges; and capital projects at four–year public institutions of higher education. For fiscal year 2023 only, money in the Fund shall be used to provide, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859. For fiscal year 2026 only, money in the Fund may be used for major information technology development projects, as defined in § 3.5–301(k) of this article, that are funded by the Information Technology Investment Fund established under § 3.5–309 of this article. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the General Fund of the State. Expenditures from the Fund may be made only in accordance with the State budget. Except as provided in paragraph (3) of this subsection, the Governor shall include in the budget bill for the second following fiscal year an appropriation equal to the amount in the Fund for pay–as–you–go capital projects. Money expended from the Fund for pay–as–you–go capital projects is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for capital projects, including those funded with pay–as–you–go funds and the proceeds from the sale of general obligation bonds. The Governor shall include in the budget bill submitted at the 2022 Session of the General Assembly an appropriation equal to the amount distributed to the Fund in accordance with § 7–329(b–1) of this subtitle to provide, beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees in the Executive Branch of State government who are in a bargaining unit that is represented by the American Federation of State, County and Municipal Employees, AFL–CIO, excluding a bargaining unit represented by the American Federation of State, County and Municipal Employees, AFL–CIO Local 1859. Except for the fiscal year 2026 appropriation described in subsection (g)(3) of this section, at the end of a fiscal year, the unspent balance of each appropriation that was made for that fiscal year from the Fund reverts to the Fund.

In this section, “Fund” means the Opioid Restitution Fund. There is an Opioid Restitution Fund. The purpose of the Fund is to retain the amount of settlement revenues deposited to the Fund in accordance with subsection (e)(1) of this section. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this subtitle. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: all revenues received by the State from any source resulting, directly or indirectly, from any judgment against, or settlement with, opioid manufacturers, opioid research associations, or any other person in the opioid industry relating to any claims made or prosecuted by the State to recover damages for violations of State law; and the interest earnings of the Fund. The Fund may be used only to provide funds for the purposes specified in settlement agreements and judgments relating to claims by the State against opioid manufacturers, opioid research associations, or any other person in the opioid industry for violations of State law, including: programs, services, supports, and resources for evidence–based substance use disorder prevention, treatment, recovery, or harm reduction; supporting community–based nonprofit recovery organizations that provide nonclinical substance use recovery support services in the State; addressing racial disparities in access to prevention, harm reduction, treatment, and recovery support services; addressing socioeconomic disparities in access to prevention, harm reduction, treatment, and recovery support services; evidence–informed substance use disorder prevention, treatment recovery, or harm reduction pilot programs or demonstration studies that are not evidence–based if the Opioid Restitution Fund Advisory Council, established under § 7.5–902 of the Health – General Article: determines that emerging evidence supports the distribution of money for the pilot program or that there is a reasonable basis for funding the demonstration study with the expectation of creating an evidence–based program; and approves the use of money for the pilot program or demonstration study; evaluations of the effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports, and resources for which money from the Fund was used, including evaluations of the impact on access to harm reduction services or treatment for substance use disorders and the reduction in drug–related mortality; operating expenses and personnel costs for investigations, enforcement actions, and other activities conducted by the Opioids Enforcement Unit within the Office of the Attorney General that are related to the recovery of funds from opioid–related judgments or settlements; and the Buprenorphine Training Grant Program established under § 13–5802 of the Health – General Article. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. For settlement funds received in accordance with the final distributor agreement of July 21, 2021, with McKesson Corporation, Amerisource Bergen Corporation, and Cardinal Health Incorporated, as amended, the Janssen settlement agreement of July 21, 2021, as amended, or any other opioid–related court or administrative judgment or settlement agreement involving the State and one or more of its political subdivisions: appropriations from the Fund in the State budget shall be made in accordance with the allocation and distribution of funds to the State and its political subdivisions: as agreed on in the State–subdivision agreement of January 21, 2022, as amended; or required under any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions; and the Secretary of Health shall establish and administer a grant program for the distribution of funds to political subdivisions of the State in accordance with: the State–subdivision agreement of January 21, 2022, as amended; or the requirements of any other opioid–related court or administrative judgment or settlement agreement, or any similar agreement reached under an opioid–related court or administrative judgment or settlement agreement, involving the State and one or more of its political subdivisions. The Attorney General shall identify and designate the controlling version of any agreement or amendment described under paragraph (2) of this subsection. This paragraph does not apply in fiscal years 2025 and 2026. Money expended from the Fund for the programs and services described under subsection (f) of this section is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the programs and services. Except as specified in subsection (f) of this section, money expended from the Fund may not be used for administrative expenses. The Governor shall: develop key goals, key objectives, and key performance indicators relating to substance use treatment and prevention efforts; subject to subsection (h)(2) of this section, at least twice annually, consult with the Opioid Restitution Fund Advisory Council to identify recommended appropriations from the Fund; and report on or before November 1 each year, in accordance with § 2–1257 of the State Government Article, to the General Assembly on: an accounting of total funds expended from the Fund in the immediately preceding fiscal year, by: use; if applicable, jurisdiction; and budget program and subdivision; the performance indicators and progress toward achieving the goals and objectives developed under item (1) of this subsection; and the recommended appropriations from the Fund identified in accordance with item (2) of this subsection. Beginning on or before October 1, 2025, and each October 1 thereafter, the Office of the Attorney General shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the status of activity of the Opioids Enforcement Unit, including: the number of investigations taking place; the number of lawsuits filed; and the disposition of lawsuits filed.