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HB0865 amends Maryland law governing the Catastrophic Event Account and the State Disaster Recovery Fund. The bill authorizes money to be transferred from the Catastrophic Event Account to the State Disaster Recovery Fund under specified conditions, including when the disaster fund has been depleted or when projected disaster relief costs exceed the fund balance. It also updates the statutory definition of the State Disaster Recovery Fund so that it may receive transfers from the Catastrophic Event Account.
The bill also shortens the Legislative Policy Committee review-and-comment period before the Governor may transfer funds by budget amendment from the Catastrophic Event Account. For most transfers, the review period is reduced from 15 days to 5 days, while the separate 2-day review period for transfers related to a federal government shutdown employee assistance loan fund remains unchanged. The act takes effect July 1, 2025.
HB0865 changes sections of the Public Safety and State Finance and Procurement articles to create a clearer and faster mechanism for moving emergency reserve money into the State Disaster Recovery Fund. It expands the permitted uses of the Catastrophic Event Account by expressly allowing transfers to the disaster recovery fund and by defining the circumstances under which those transfers may occur. The bill affects the Governor’s budget-amendment authority, the Legislative Policy Committee’s review timeline, and the administration of state disaster-response financing.
The available record shows no committee transcript, recorded votes, or other discussion indicating opposition or support, so the bill’s sentiment cannot be measured from debate. Based on the text alone, the measure appears to be a practical emergency-management financing bill intended to improve the state’s ability to respond quickly to disasters and fund recovery needs.
The main policy issue raised by the bill is the balance between executive flexibility in responding to disasters and legislative oversight of fund transfers. By reducing the Legislative Policy Committee’s review period from 15 days to 5 days, the bill gives the Governor faster access to emergency funds, which may be viewed as necessary for timely disaster response but could also be seen as limiting legislative review. Another point of interest is the new authority to replenish the State Disaster Recovery Fund when it is depleted or when expected disaster costs exceed available balances, which broadens the state’s emergency financing options.