Catastrophic Event Account - Transfer of Funds - State Disaster Recovery Fund
Summary
SB 564 would expand how Maryland can use money in the Catastrophic Event Account by allowing transfers from that account to the State Disaster Recovery Fund under specified conditions. The bill also makes the State Disaster Recovery Fund an express recipient of Catastrophic Event Account transfers in the Public Safety and State Finance and Procurement Articles, and it defines the Disaster Recovery Fund in the transfer statute for clarity. In practical terms, the measure is designed to give the State more flexibility to move disaster-related money where it is most needed when the recovery fund has been depleted or when projected disaster costs exceed the fund balance.
The bill also shortens the Legislative Policy Committee review-and-comment period for most transfers from the Catastrophic Event Account from 15 days to 5 days before the Governor may act by budget amendment. It preserves the existing 2-day review period for transfers related to a federal government shutdown employee assistance loan fund. The bill takes effect July 1, 2025, and would amend the statutes governing both the Catastrophic Event Account and the State Disaster Recovery Fund.
Impact
SB 564 would amend § 14-110.5 of the Public Safety Article and § 7-324 of the State Finance and Procurement Article to authorize a new transfer pathway from the Catastrophic Event Account to the State Disaster Recovery Fund. It would also revise the timing for Legislative Policy Committee review of most proposed transfers from 15 days to 5 days, increasing executive flexibility and speed in disaster-response financing. The bill does not create a new fund or appropriation source, but it changes how existing emergency reserves may be deployed during disasters and catastrophic situations.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears to be pragmatic and administrative rather than controversial. The measure is framed as a disaster-response management tool intended to improve the State’s ability to respond quickly when recovery needs exceed available balances. No recorded opposition or support is available in the provided context, but the bill’s structure suggests it is aimed at operational flexibility and continuity in emergency funding.
Contention
The main potential point of contention is the reduction in the Legislative Policy Committee’s review period from 15 days to 5 days, which could be viewed as limiting legislative oversight in favor of faster executive action. Another possible issue is the authorization to move money from the Catastrophic Event Account into the State Disaster Recovery Fund, which may raise questions about prioritization of emergency reserves and whether the transfer threshold is sufficiently defined. Supporters would likely emphasize quicker disaster recovery funding and better use of depleted reserves, while critics may focus on reduced review time and the broader discretion given to the Governor.