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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0392*
HOUSE BILL 392
B1 6lr0342
CF SB 284
By: The Speaker (By Request – Administration)
Introduced and read first time: January 21, 2026
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Budget Reconciliation and Financing Act of 2026 2
FOR the purpose of altering or repealing certain required appropriations; authorizing and 3
requiring the use of certain funds for certain purposes; altering the composition of 4
certain funds; authorizing the transfer of certain funds; authorizing, requiring, or 5
altering the distribution of certain revenue; altering the Senator John A. Cade 6
Funding Formula for community colleges; altering the calculatio n for State aid to 7
Baltimore City Community College; altering the program of State aid to private 8
nonprofit institutions of higher education known as the Joseph A. Sellinger Program; 9
requiring certain counties to reimburse the Maryland Department of Health for a 10
certain percentage of the costs associated with establishing certain assisted 11
outpatient treatment programs; altering eligibility for certain programs; requiring, 12
for certain fiscal years, the Comptroller to pay grants in a certain amount to certain 13
counties; requiring the Governor to publish certain budget books online instead of 14
providing the books; altering the amount that county governments are required to 15
pay toward the retirement costs for certain local employees; specifying an amount 16
that the Maryland Department of Labor is required to reimburse a certain Local 17
Reserve Account; providing certain modifications to federal adjusted gross income of 18
an individual or federal taxable income of a corporation for Maryland income tax 19
purposes relating to certain depreciation deductions allowed under the federal 20
income tax; altering a requirement that the Maryland Department of Health apply 21
to participate in a certain program for a certain fiscal year; and generally relating to 22
the financing of State and local government. 23
BY repealing and reenacting, without amendments, 24
Article – Agriculture 25
Section 2–1901(a)(1) and (3) and (b), 10–401(a), (d), and (e), and 10–402(a) 26
Annotated Code of Maryland 27
(2016 Replacement Volume and 2025 Supplement) 28
BY repealing and reenacting, with amendments, 29
2 HOUSE BILL 392
Article – Agriculture 1
Section 2–1901(e) and 10–407(d) 2
Annotated Code of Maryland 3
(2016 Replacement Volume and 2025 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – Economic Development 6
Section 5–1901(a)(1) and (2) and (b) and 13–601(a) and (c) 7
Annotated Code of Maryland 8
(2024 Replacement Volume and 2025 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – Economic Development 11
Section 5–1901(g)(1) and (3)(iii) and 13–611(b)(3) 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – Education 16
Section 2–305(b), 7–414.1(a), (b), and (f)(1) and (5), and 7–447.1(p)(1) and (3) 17
Annotated Code of Maryland 18
(2025 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Education 21
Section 2–305(g), 7–414.1(f)(4), and 7–447.1(p)(9)(vi) 22
Annotated Code of Maryland 23
(2025 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Education 26
Section 16–305(a), (b)(1) and (11), and (c)(3), 16–512(a) and (b)(2), 17–101, 17–104(d), 27
18–3602(a) and (b), 18–3701(a) and (f), and 18–3802(a) and (b) 28
Annotated Code of Maryland 29
(2022 Replacement Volume and 2025 Supplement) 30
BY repealing and reenacting, with amendments, 31
Article – Education 32
Section 16 –305(d), 16 –512(b)(1)(xiii) and (xiv), 17 –104(a), 18 –3605, 18 –3704, and 33
18–3806 34
Annotated Code of Maryland 35
(2022 Replacement Volume and 2025 Supplement) 36
BY adding to 37
Article – Education 38
Section 16–512(b)(1)(xv) 39
Annotated Code of Maryland 40
HOUSE BILL 392 3
(2022 Replacement Volume and 2025 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – Health – General 3
Section 5–626(a), (b), and (c) and 10–6A–03(a) and (b) 4
Annotated Code of Maryland 5
(2023 Replacement Volume and 2025 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – Health – General 8
Section 5–626(g), 10–6A–03(c), and 13–1015 9
Annotated Code of Maryland 10
(2023 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – Health Occupations 13
Section 14–207(a) and 17–206(a) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Health Occupations 18
Section 14–207(e)(1) and 17–206(d)(1) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Labor and Employment 23
Section 11–603(a)(1) and (3) and 11–1501(a) and (f) 24
Annotated Code of Maryland 25
(2025 Replacement Volume) 26
BY repealing and reenacting, with amendments, 27
Article – Labor and Employment 28
Section 11–603(g) and 11–1506 29
Annotated Code of Maryland 30
(2025 Replacement Volume) 31
BY repealing and reenacting, with amendments, 32
Article – Local Government 33
Section 16–501(a) and 16–505 34
Annotated Code of Maryland 35
(2013 Volume and 2025 Supplement) 36
BY repealing and reenacting, without amendments, 37
Article – Local Government 38
Section 16–501(b) 39
4 HOUSE BILL 392
Annotated Code of Maryland 1
(2013 Volume and 2025 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – Natural Resources 4
Section 5–903(a)(1) 5
Annotated Code of Maryland 6
(2023 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Natural Resources 9
Section 5–903(a)(2)(i) and (i) and 8–709(e) 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Public Safety 14
Section 1–308(a) and (b)(1) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Public Safety 19
Section 1–308(b)(2)(x) and (xi) 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2025 Supplement) 22
BY adding to 23
Article – Public Safety 24
Section 1–308(b)(2)(xii) 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2025 Supplement) 27
BY repealing and reenacting, without amendments, 28
Article – State Finance and Procurement 29
Section 5A–303(a)(1) and (30) and (d)(1), (2)(i), and (4)(i) and (ii)1., 7–115(a), 7–311(a) 30
and (b), and 7–317(a), (g)(1), and (i) 31
Annotated Code of Maryland 32
(2021 Replacement Volume and 2025 Supplement) 33
BY repealing and reenacting, with amendments, 34
Article – State Finance and Procurement 35
Section 5A–303(d)(4)(iv), 7–115(b), 7–311(e), and 7–317(g)(6) and (h) 36
Annotated Code of Maryland 37
(2021 Replacement Volume and 2025 Supplement) 38
BY repealing and reenacting, without amendments, 39
HOUSE BILL 392 5
Article – State Government 1
Section 9–20B–02, 9–20B–05(a), 21–201(a), (c), (d), and (h), and 21–205(a)(1) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – State Government 6
Section 9–20B–03, 9–20B–05(f)(13), (g)(3), and (i)(1), and 21–205(c)(1) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9
BY adding to 10
Article – State Government 11
Section 9–20B–05(i)(5) and (6) 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Personnel and Pensions 16
Section 21–304(a) and (b)(1), (4)(i) and (iii), and (5) 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – State Personnel and Pensions 21
Section 21–304(b)(6) 22
Annotated Code of Maryland 23
(2024 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Tax – General 26
Section 2–606(b) 27
Annotated Code of Maryland 28
(2022 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – Tax – General 31
Section 2–606(i) and 10–210.1 32
Annotated Code of Maryland 33
(2022 Replacement Volume and 2025 Supplement) 34
BY repealing and reenacting, without amendments, 35
Article – Tax – Property 36
Section 13–209(a), (b), (e), and (h) 37
Annotated Code of Maryland 38
(2019 Replacement Volume and 2025 Supplement) 39
6 HOUSE BILL 392
BY repealing and reenacting, with amendments, 1
Article – Tax – Property 2
Section 13–209(c), (d), and (g)(3) 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – Transportation 7
Section 13–955(a) and (e) and 17–106(a), (b), (c), (d), and (e)(1) 8
Annotated Code of Maryland 9
(2020 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Transportation 12
Section 13–955(f) and 17–106(e)(2) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Chapter 275 of the Acts of the General Assembly of 2023 17
Section 2 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Agriculture 21
2–1901. 22
(a) (1) In this subtitle the following words have the meanings indicated. 23
(3) “Program” means the Maryland Healthy Soils Program. 24
(b) There is a Maryland Healthy Soils Program. 25
(e) (1) In each of fiscal years 2024 through [2028] 2026, the Governor shall 26
include in the annual budget bill an appropriation of at least $500,000 for the Program. 27
(2) IN EACH OF FISCAL YEARS 2027 AND 2028, THE GOVERNOR SHALL 28
INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATION OF AT LEAST $400,000 29
FOR THE PROGRAM. 30
10–401. 31
(a) In this subtitle the following words have the meanings indicated. 32
HOUSE BILL 392 7
(d) “Native Plant Specialist” means the University of Maryland Extension agent 1
hired under § 10–403 of this subtitle. 2
(e) “Program” means the Maryland Native Plants Program. 3
10–402. 4
(a) There is a Maryland Native Plants Program. 5
10–407. 6
(d) For fiscal year 2025 and [each fiscal year thereafter] FISCAL YEAR 2026, the 7
Governor shall include in the annual budget bill an appropriation of $150,000 for the 8
University of Maryland Extension to hire one extension agent as a Native Plant Specialist 9
and $100,000 for the Department to hire staff to administer the Program. 10
Article – Economic Development 11
5–1901. 12
(a) (1) In this section the following words have the meanings indicated. 13
(2) “Fund” means the Cannabis Business Assistance Fund. 14
(b) There is a Cannabis Business Assistance Fund. 15
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 16
for: 17
(i) grants or loans to small, minority–owned, or women –owned 18
businesses for: 19
1. license application assistance for participation in the 20
adult–use cannabis industry; 21
2. assistance with the operating or capital expenses of a 22
business participating in the adult–use cannabis industry; or 23
3. targeted training to support participation in the adult–use 24
cannabis industry; 25
(ii) grants to historically black colleges and universities for 26
cannabis–related programs and business development organizations, including incubators, 27
to train and assist small, minority, and women business owners and entrepreneurs seeking 28
to become licensed to participate in the adult–use cannabis industry; [and] 29
8 HOUSE BILL 392
(III) FOR FISCAL YEARS 2027 THROUGH 2029, OPERATING COSTS 1
UP TO $5,000,000 OF THE DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY; AND 2
[(iii)] (IV) the administrative costs of the Fund. 3
(3) In order to award grants and loans in accordance with paragraph (1) of 4
this subsection, the Department shall develop partnerships with: 5
(iii) the [Governor’s] Office of Small, Minority, and Women Business 6
Affairs. 7
13–601. 8
(a) In this subtitle the following words have the meanings indicated. 9
(c) “Council” means the Tri–County Council for Southern Maryland. 10
13–611. 11
(b) (3) (i) The Governor shall include in the State budget for the following 12
fiscal year an appropriation to partially support the Council. 13
(ii) 1. A. For [fiscal year 2024 and each fiscal year 14
thereafter] FISCAL YEARS 2024 THROUGH 2026, the Governor shall include in the 15
annual budg et bill an appropriation of $1,000,000 to the Council from the Cigarette 16
Restitution Fund established under § 7–317 of the State Finance and Procurement Article. 17
B. FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR 18
THEREAFTER, THE GOVERNOR SHALL INCLUD E IN TH E ANNUAL BUDGET BILL AN 19
APPROPRIATION OF $700,000 TO THE COUNCIL FROM THE CIGARETTE 20
RESTITUTION FUND ESTABLISHED UNDE R § 7–317 OF THE STATE FINANCE AND 21
PROCUREMENT ARTICLE. 22
2. The Council shall use funds appropriated from the 23
Cigarette Restitution Fun d for the purpose of funding the activities of the Southern 24
Maryland Agricultural Development Commission. 25
3. The appropriation required under subsubparagraph 1 of 26
this subparagraph shall be in addition to, and may not supplant, any funding appropriated 27
to the Council. 28
Article – Education 29
2–305. 30
(b) (1) There is a Lacrosse Opportunities Program in the Department. 31
HOUSE BILL 392 9
(2) The purpose of the Lacrosse Opportunities Program is to increase 1
opportunities for minority students to participate in lacrosse in their communities. 2
(g) For fiscal year 2014 and each fiscal year thereafter, the Governor [shall] MAY 3
include in the annual budget submission at least $40,000 for the Lacrosse Opportunities 4
Program. 5
7–447.1. 6
(p) (1) In this subsection, “Fund” means the Coordinated Community Supports 7
Partnership Fund. 8
(3) The purpose of the Fund is to support the delivery of services and 9
supports provided to students to meet their holistic behavioral health needs and address 10
other related challenges. 11
(9) The Gov ernor shall include in the annual budget bill the following 12
appropriations for the Fund: 13
(vi) [$100,000,000] $80,000,000 in fiscal year 2027 and each fiscal 14
year thereafter. 15
16–305. 16
(a) The formula used for the distribution of funds to the community colleges in 17
the State shall be known as the Senator John A. Cade Funding Formula. 18
(b) (1) In this section the following words have the meanings indicated. 19
(11) “State share” means the amount of money for community college 20
operating funds to be provided each fiscal year to a board by the State. 21
(c) (3) Subject to subsection (d) of this section, the total State share for each 22
board shall be the sum of: 23
(i) The base costs component; and 24
(ii) The size factor component. 25
(d) (1) In each fiscal y ear, in order for a board to receive an increase in the 26
State share of support, the county share, in the aggregate, that supports the community 27
college or colleges shall equal or exceed the aggregate amount of operating fund 28
appropriations made to the board by the county or all of the counties supporting the college 29
in the previous fiscal year. 30
10 HOUSE BILL 392
(2) FOR FISCAL YEARS 2027 THROUGH 2029, THE STATE SHARE, AS 1
DETERMINED UNDER SUB SECTION (C)(3) OF THIS SECTION , MAY NOT EXCEED AN 2
INCREASE OF 3% OVER THE STATE SHARE PROVIDED TO EA CH COMMUNITY 3
COLLEGE IN THE IMMEDIATELY PRECEDING FISCAL YEAR. 4
16–512. 5
(a) In this section, “State Funds per full –time equivalent student appropriation 6
to the 4 –year public institutions of higher education” has the meaning stated in § 7
17–104(a)(1) of this article. 8
(b) (1) The total State operating fund per full –time equivalent student 9
appropriated to Baltimore City Community College for each fiscal year other than fiscal 10
year 2013, as requested by the Governor shall be: 11
(xiii) In fiscal year 2022, not less than an amount equal to 66.5% of the 12
State’s General Fund appropriation per full –time equivalent student to the 4 –year public 13
institutions of higher education in the State as designated by the Commission for the 14
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 15
the same fiscal year; [and] 16
(xiv) In fiscal [year 2023 and each fiscal year thereafter] YEARS 2023 17
THROUGH 2026, not less than an amount equal to 68.5% of the State Funds per full–time 18
equivalent student appropriation to the 4 –year public institutions of higher education in 19
the State as designated by the Commission for the purpose of administering the Joseph A. 20
Sellinger Program under Title 17 of this article; AND 21
(XV) IN FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 22
NOT LESS THAN AN AMOUNT EQUAL TO 67.5% OF THE STATE FUNDS PER FULL–TIME 23
EQUIVALENT STUDENT APPROPRIATION TO THE 4–YEAR PUBLIC INSTITUTIONS OF 24
HIGHER EDUCATION IN THE STATE AS DESIGNATED BY THE COMMISSION FOR THE 25
PURPOSE OF ADMINISTERING THE JOSEPH A. SELLINGER PROGRAM UNDER TITLE 26
17 OF THIS ARTICLE. 27
(2) For purposes of this subsection, the State Funds per full –time 28
equivalent student appropriation to the 4 –year public institutions of higher education in 29
the State for a fiscal year shall include: 30
(i) Noncapital appropriations from the Higher Education 31
Investment Fund; and 32
(ii) Appropriations, regardless of where they are budgeted, 33
designated for the general operation of 4–year public institutions of higher education in the 34
State, including personnel–related appropriations. 35
17–101. 36
HOUSE BILL 392 11
There is a program of State aid to private nonprofit institutions of higher education 1
known as the Joseph A. Sellinger Program. 2
17–104. 3
(a) (1) (i) In this subsection, “State Funds per full–time equivalent student 4
appropriation to the 4 –year public institutions of higher education” shall be calculated in 5
accordance with this paragraph using the General Fund and Higher Education Investment 6
Fund actual expenditures for the second previous fiscal year. 7
(ii) The total number of full –time equivalent students is based on 8
credit hour production for the second previous fiscal year. 9
(iii) The number of undergraduate full –time equivalent students 10
shall be calculated using total undergraduate credit hour production divided by 30. 11
(iv) 1. Except as provided in subsubparagraph 2 of this 12
subparagraph, the number of graduate full –time equivalent students shall be calculated 13
based on a methodology agreed to by the University System of Maryland Office, Morgan 14
State University, and St. Mary’s College of Maryland, in consultation with the Commission. 15
2. If a methodology is not agreed to on or before September 16
16, 2024, the Commission shall determine the methodology used to c alculate the number 17
of graduate full–time equivalent students. 18
(v) The Commission shall certify the number of full–time equivalent 19
students for each institution on or before October 1 each year. 20
(2) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 21
PARAGRAPH, IN fiscal year 2025 and each fiscal year thereafter, the Maryland Higher 22
Education Commission shall compute the amount of the annual apportionment for each 23
institution that qualifies under this su btitle by multiplying the number of full –time 24
equivalent undergraduate students enrolled at the institution during the fall semester of 25
the fiscal year preceding the fiscal year for which the aid apportionment is made, as 26
determined by the Maryland Higher Education Commission, by an amount not less than 27
16.1% of the State Funds per full –time equivalent student appropriation to the 4 –year 28
public institutions of higher education in this State. 29
(II) IN EACH OF FISCAL YEA RS 2027 THROUGH 2029, THE 30
ANNUAL APP ORTIONMENT FOR EACH INSTITUTION THAT QUA LIFIES UNDER THIS 31
SUBTITLE IS: 32
1. CAPITOL TECHNOLOGY UNIVERSITY – $914,981; 33
2. GOUCHER COLLEGE – $3,168,940; 34
12 HOUSE BILL 392
3. HOOD COLLEGE – $3,611,811; 1
4. JOHNS HOPKINS UNIVERSITY – $20,554,298; 2
5. LOYOLA UNIVERSITY OF MARYLAND – $12,550,328; 3
6. MARYLAND INSTITUTE COLLEGE OF ART – 4
$3,745,718; 5
7. MCDANIEL COLLEGE – $5,945,264; 6
8. MOUNT ST. MARY’S UNIVERSITY – $5,476,872; 7
9. NOTRE DAME OF MARYLAND UNIVERSITY – 8
$2,037,187; 9
10. ST. JOHN’S COLLEGE – $1,701,410; 10
11. STEVENSON UNIVERSITY – $9,206,521; 11
12. WASHINGTON ADVENTIST UNIVERSITY – $1,367,650; 12
AND 13
13. WASHINGTON COLLEGE – $3,041,744. 14
(d) For purposes of this section, the State’s General Fund appropriation per 15
full–time equivalent student to the 4 –year public institutions of higher education in the 16
State for a fiscal year shall include: 17
(1) Noncapital appropriations from the Higher Education Investment 18
Fund; and 19
(2) Appropriations, regardless of where they a re budgeted, designated for 20
the general operation of 4 –year public institutions of higher education in the State, 21
including personnel–related appropriations. 22
18–3602. 23
(a) There is a program of Maryland Community College Promise Scholarships in 24
the State that are awarded under this subtitle. 25
(b) The purpose of the program is to provide tuition assistance for students to 26
attend a community college in the State. 27
HOUSE BILL 392 13
18–3605. 1
(a) Through fiscal year 2025, the Governor shall include an annual appropriation 2
of at least $15,000,000 in the State budget for the Commission to disburse Maryland 3
Community College Promise Scholarships under this subtitle. 4
(b) For fiscal year 2026 [and each fiscal year thereafter ], the Governor shall 5
include an annual appropriation of at least $13,500,000 in the State budget for the 6
Commission to disburse Maryland Community College Promise Scholarships under this 7
subtitle. 8
(C) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, THE 9
GOVERNOR SHALL INCLUDE AN ANNUAL APPROPRIATION OF AT LEAST $12,500,000 10
IN THE STATE BUDGET FOR THE COMMISSION TO DISBURS E MARYLAND 11
COMMUNITY COLLEGE PROMISE SCHOLARSHIPS UNDER THIS SUBTITLE. 12
18–3701. 13
(a) In this subtitle the following words have the meanings indicated. 14
(f) “Program” means the Mary land Loan Assistance Repayment Program for 15
Police Officers and Probation Agents. 16
18–3704. 17
(a) For fiscal year 2025, the Governor shall include in the annual budget bill an 18
appropriation of at least $500,000 for the Program. 19
(b) For fiscal year 2026 [and each fiscal year thereafter ], the Governor shall 20
include in the annual budget bill an appropriation of at least $2,000,000 for the Program. 21
(C) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, THE 22
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF 23
AT LEAST $500,000 FOR THE PROGRAM. 24
18–3802. 25
(a) There is a Maryland Police Officers and Probation Agents Scholarship 26
Program. 27
(b) The purpose of the program is to provide tuition assistance for students who 28
are: 29
(1) Attending an eligible institution and enrolled in a degree program that 30
would further the student’s intent to become a police officer or probation agent after 31
graduation; or 32
14 HOUSE BILL 392
(2) Employed as a police officer or probation agent, attending an eligible 1
institution, and enrolled in a degree program that would further the police officer’s or 2
probation officer’s career. 3
18–3806. 4
(a) For fiscal year 2025, the Governor shall include in the annual budget bill an 5
appropriation of at least $500,000 to the Commission to award scholarships under this 6
subtitle. 7
(b) For fiscal year 2026 [and each fiscal year thereafter ], the Governor shall 8
include in the annual budget bill an appropriation of at least $2,000,000 to the Commission 9
to award scholarships under this subtitle. 10
(C) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, THE 11
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF 12
AT LEAST $500,000 TO THE COMMISSION TO AWARD S CHOLARSHIPS UNDER TH IS 13
SUBTITLE. 14
Article – Health – General 15
5–626. 16
(a) In this section, “Fund” means the Advance Directive Program Fund. 17
(b) There is an Advance Directive Program Fund. 18
(c) The purpose of the Fund is to provide funding to carry out the purposes of the 19
Advance Directive Program established under § 5–620 of this subtitle. 20
(g) (1) [Money] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 21
SUBSECTION, MONEY in the Fund may be used only to carry out the purposes of the 22
Advance Directive Program established under § 5–620 of this subtitle. 23
(2) IN FISCAL YEAR 2027 ONLY, $1,000,000 OF THE FUND MAY BE 24
USED FOR MATERNAL AN D CHILD HEALTH QUALI TY INITIATIVES IN TH E 25
DEPARTMENT. 26
10–6A–03. 27
(a) (1) On or before July 1, 2026, a county may establish an assisted outpatient 28
treatment program in accordance with this subtitle. 29
(2) A county may partner with another county to establish an assisted 30
outpatient treatment program. 31
HOUSE BILL 392 15
(b) An assisted outpatient treatment program established under subsection (a) of 1
this section shall be approved and overseen by the county’s local behavioral health 2
authority or core service agency. 3
(c) (1) On or before July 1, 2026, the Department shall establish an assisted 4
outpatient treatment program in any county that does not opt to establish an assisted 5
outpatient treatment program. 6
(2) A COUNTY IN WHICH THE DEPARTMENT IS REQUIRE D TO 7
ESTABLISH AN ASSISTE D OUTPATIENT TREATME NT PROGRAM SHALL REI MBURSE 8
THE DEPARTMENT: 9
(I) FOR FISCAL YEAR 2028, FOR 25% OF THE STATE SHARE OF 10
ASSOCIATED COSTS; 11
(II) FOR FISCAL YEAR 2029, FOR 50% OF THE STATE SHARE OF 12
ASSOCIATED COSTS; 13
(III) FOR FISCAL YEAR 2030, FOR 75% OF THE STATE SHARE OF 14
ASSOCIATED COSTS; AND 15
(IV) FOR FISCAL YEAR 2031, FOR 100% OF THE STATE SHARE OF 16
ASSOCIATED COSTS. 17
13–1015. 18
(a) For fiscal year 2011 and fiscal year 2012, the Governor shall include at least 19
$6,000,000 in the annual budget in appropriations for activities aimed at reducing tobacco 20
use in Maryland as recommended by the Centers for Disease Control and Prevention, 21
including: 22
(1) Media campaigns aimed at reducing smoking initiation and 23
encouraging smokers to quit smoking; 24
(2) Media campaigns educating the public about the dangers of secondhand 25
smoke exposure; 26
(3) Enforcement of existing laws banning the sale or distribution of tobacco 27
products to individuals under the age of 21 years; 28
(4) Promotion and implementation of smoking cessation programs; and 29
(5) Implementation of school–based tobacco education programs. 30
16 HOUSE BILL 392
(b) (1) For fiscal years 2013 through 2021, the Governor shall include at least 1
$10,000,000 in t he annual budget in appropriations for the purposes described in 2
subsection (a) of this section. 3
(2) For fiscal [year 2022 and each fiscal year thereafter ] YEARS 2022 4
THROUGH 2026, the Governor shall include at least $18,250,000 in the annual budget in 5
appropriations for the purposes described in subsection (a) of this section. 6
(3) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 7
THE GOVERNOR SHALL INCLUDE AT LEAST $17,520,000 IN THE ANNUAL BUDGET IN 8
APPROPRIATIONS FOR T HE PURPOSES DESCRIBE D IN S UBSECTION (A) OF THIS 9
SECTION. 10
Article – Health Occupations 11
14–207. 12
(a) There is a Board of Physicians Fund. 13
(e) (1) (I) The Fund shall be used exclusively to cover the actual 14
documented direct and indirect costs of fulfilling the statutory and regulatory duties of the 15
Board as provided by this title. 16
(II) FOR FISCAL YEAR 2027 ONLY, $2,000,000 OF THE FUND 17
BALANCE MAY BE USED TO SUPPORT THE PROGR AMS IN THE OFFICE OF 18
POPULATION HEALTH IMPROVEMENT WITHIN THE DEPARTMENT. 19
17–206. 20
(a) There is a State Board of Professional Counselors and Therapists Fund. 21
(d) (1) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 22
PARAGRAPH, THE Fund shall be used to cover the actual documented direct and indirect 23
costs of fulfilling the statutory and regulatory duties of the Board as provided by the 24
provisions of this article. 25
(II) FOR FISCAL YEAR 2027 ONLY, $500,000 OF THE FUND 26
BALANCE MAY BE USED TO SUPPORT P ROGRAMS IN THE BEHAVIORAL HEALTH 27
ADMINISTRATION OF THE DEPARTMENT. 28
Article – Labor and Employment 29
11–603. 30
(a) (1) In this section the following words have the meanings indicated. 31
HOUSE BILL 392 17
(3) “Program” means the Public Safety Apprenticeship Program. 1
(g) (1) For fiscal [year 2021 and each fiscal year thereafter ] YEARS 2021 2
THROUGH 2025, the Governor shall include in the State budget an appropriation of at 3
least $750,000 for the Program to: 4
[(1)] (I) provide grants to eligible public safety agencies; and 5
[(2)] (II) cover the administrative costs of operating the Program. 6
(2) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER, 7
THE GOVERNOR SHALL INCLUDE IN THE STATE BUDGET AN APPROPRIATION OF AT 8
LEAST $390,000 FOR THE PROGRAM TO: 9
(I) PROVIDE GRANTS TO EL IGIBLE PUBLIC SAFETY AGENCIES; 10
AND 11
(II) COVER THE ADMINISTRA TIVE COSTS OF OPERAT ING THE 12
PROGRAM. 13
11–1501. 14
(a) In this subtitle the following words have the meanings indicated. 15
(f) “Program” means the Career Pathways for Health Care Workers Program. 16
11–1506. 17
(a) (1) Through fiscal year 2024, the Governor shall include in the annual 18
budget bill an appropriation of at least $1,000,000 for the Program. 19
(2) For fiscal [year] YEARS 2025 and [each fiscal year thereafter ] 2026, 20
the Governor shall include in the annual budget bill an appropriation of at least $500,000 21
for the Program. 22
(3) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 23
THE GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATION 24
OF AT LEAST $350,000 FOR THE PROGRAM. 25
(b) Appropriations and expenditures made for the purpose of implementing the 26
Program, including the use of any funds received by a person under any component of the 27
Program, are subject to audit by the Office of Legislative Audits as provided in § 2–1220 of 28
the State Government Article. 29
Article – Local Government 30
18 HOUSE BILL 392
16–501. 1
(a) (1) Subject to subsection (e) of this section AND EXCEPT AS PROVIDED IN 2
PARAGRAPH (2) OF THIS SUBSECTION, for each fiscal year, the Comptroller shall pay to 3
an eligible county a grant in the amount determined under subsection (c)(3) of this section. 4
(2) IN EACH OF FISCAL YEA RS 2027 THROUGH 2029, THE 5
COMPTROLLER SHALL PAY TO THE FOLLOWING COU NTIES AND BALTIMORE CITY 6
THE FOLLOWING AMOUNTS IN QUARTERLY PAYMENTS: 7
(I) ALLEGANY COUNTY – $7,298,505; 8
(II) BALTIMORE CITY – $79,051,790; 9
(III) CAROLINE COUNTY – $3,894,753; 10
(IV) DORCHESTER COUNTY – $4,159,010; 11
(V) GARRETT COUNTY – $2,047,408; 12
(VI) PRINCE GEORGE’S COUNTY – $56,889,464; 13
(VII) SOMERSET COUNTY – $7,251,732; 14
(VIII) WASHINGTON COUNTY – $2,507,251; AND 15
(IX) WICOMICO COUNTY – $13,502,951. 16
(b) A county may not receive a grant under subsection (a) of this section if any of 17
the county’s income tax rates were less than 2.6%: 18
(1) for the taxable year that ended in the second prior fiscal year; or 19
(2) for any subsequent taxable year through the taxable year that ends in 20
the current fiscal year. 21
16–505. 22
(a) (1) For each of fi scal years 2025 [through 2028] AND 2026, the Governor 23
shall include in the annual budget bill an appropriation of $500,000 to the Prince George’s 24
County Office of the County Executive to be used for the Prince George’s County Reentry 25
Employment Incentive Program under § 10–334 of the Prince George’s County Code. 26
(2) FOR EACH OF FISCAL YE ARS 2027 AND 2028, THE GOVERNOR 27
SHALL INCLUDE IN THE BUDGET BILL AN APPRO PRIATION OF $350,000 TO THE 28
HOUSE BILL 392 19
PRINCE GEORGE’S COUNTY OFFICE OF THE COUNTY EXECUTIVE TO BE USED FOR 1
THE PRINCE GEORGE’S COUNTY REENTRY EMPLOYMENT INCENTIVE PROGRAM 2
UNDER § 10–334 OF THE PRINCE GEORGE’S COUNTY CODE. 3
(b) The funds provided under this section shall be supplemental to, and may not 4
supplant, funds otherwise available for reentry employment incentives in Prince George’s 5
County. 6
Article – Natural Resources 7
8–709. 8
(e) (1) (I) Notwithstanding any other provision of law, for fiscal year 2026 9
[and each fiscal year thereafter ], the Department shall distribute at least $250,000 from 10
the Waterway Improvement Fund to a statewide Maryland –based historic preservation 11
nonprofit organization with demonstrated experience in grantmaking. 12
(II) NOTWITHSTANDING ANY O THER PROVISION OF LA W, FOR 13
FISCAL YEAR 2029 AND EACH FISCAL YEAR THEREAFTER, THE DEPARTMENT SHALL 14
DISTRIBUTE AT LEAST $250,000 FROM THE WATERWAY IMPROVEMENT FUND TO A 15
STATEWIDE MARYLAND–BASED HISTORIC PRESE RVATION NONPROFIT 16
ORGANIZATION WITH DEMONSTRATED EXPERIENCE IN GRANTMAKING. 17
(2) A nonprofit organization shall use any funds rec eived under this 18
subsection to establish, operate, and administer a maritime heritage competitive grant 19
program to provide grants to nonprofit organizations in the State and instrumentalities of 20
the State, counties, or municipalities engaged in maritime he ritage preservation, 21
interpretation, or conservation. 22
(3) On or before November 30 each year, a nonprofit organization that 23
receives funds under this subsection shall submit a report to the Department on the 24
guidelines, promotion, selection, recipients, and impact of the organization’s competitive 25
grant program. 26
Article – Public Safety 27
1–308. 28
(a) There is a 9–1–1 Trust Fund. 29
(b) (1) Except as provided in paragraph (2) of this subsection and subject to § 30
1–309.1 of this subtitle, the purposes of the 9–1–1 Trust Fund are to: 31
(i) reimburse counties for the cost of enhancing a 9–1–1 system; 32
20 HOUSE BILL 392
(ii) pay contractors in accordance with § 1–306(b)(12) of this subtitle; 1
and 2
(iii) fund the coordinator position and staff to handle the increased 3
duties related to wireless enhanced 9 –1–1 service under § 1 –305 of this subtitle, as an 4
administrative cost. 5
(2) Subject to paragraph (3) of this subsection, in addition to the purposes 6
described under paragraph (1) of this subsection, the purposes of the 9 –1–1 Trust Fund 7
include funding: 8
(x) costs of telecommunications cardiopulmonary resuscitation 9
training; [and] 10
(xi) costs related to the operation of the 9 –8–8 suicide prevention 11
hotline that may be shared with 9 –1–1 activities, including software in terfaces and joint 12
training; AND 13
(XII) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 14
THEREAFTER, PROGRAM OPERATIONS O F THE MARYLAND DEPARTMENT OF 15
EMERGENCY MANAGEMENT. 16
Article – State Finance and Procurement 17
5A–303. 18
(a) (1) In this section the following words have the meanings indicated. 19
(30) “Small commercial project” means a rehabilitation of a structure if: 20
(i) the qualified rehabilitation expenditures do not exceed $500,000; 21
and 22
(ii) 1. the structure is primarily used for commercial, 23
income–producing purposes; 24
2. the structure: 25
A. is a residential unit in a consecutive series of similar 26
residential units that are arranged in a row, side by side; and 27
B. is sold as part of a development project for exclusive 28
occupancy to, and occupied by, the resident; 29
3. the structure is a targeted project; or 30
HOUSE BILL 392 21
4. the structure is a condominium or cooperative project and 1
the rehabilitation targets only the common elements of the condominium or cooperative 2
project. 3
(d) (1) (i) In th is subsection the following words have the meanings 4
indicated. 5
(ii) “Reserve Fund” means the Historic Revitalization Tax Credit 6
Reserve Fund established under paragraph (2) of this subsection. 7
(iii) “Trust Account” means the Small Commercial Projec t Trust 8
Account established under paragraph (4) of this subsection. 9
(2) (i) There is a Historic Revitalization Tax Credit Reserve Fund that 10
is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article. 11
(4) (i) Within the Re serve Fund, there is a Small Commercial Project 12
Trust Account. 13
(ii) 1. The Trust Account is established for the issuance of tax 14
credit certificates for small commercial projects. 15
(iv) 1. For each of fiscal years 2024 through [2031] 2026, the 16
Governor shall include in the budget bill an appropriation to the Trust Account of at least 17
$2,000,000. 18
2. FOR EACH OF FISCAL YE ARS 2027 THROUGH 2031, 19
THE GOVERNOR SHALL INCLUDE IN THE BUDGET BILL AN APPROPRIATION TO THE 20
TRUST ACCOUNT OF AT LEAST $500,000. 21
7–115. 22
(a) On submission of the budget bill to the presiding officers of the General 23
Assembly, the Governor shall provide the supporting material specified in this section. 24
(b) The Governor shall [provide] PUBLISH ONLINE budget books that include the 25
information required in this section. 26
7–311. 27
(a) (1) In this section the following words have the meanings indicated. 28
(2) “Account” means the Revenue Stabilization Account. 29
(3) “Estimated General Fund revenues” means the estimated General 30
Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates 31
22 HOUSE BILL 392
submitted to the Governor under § 6 –106 of this article in December preceding the fiscal 1
year. 2
(4) “Unappropriated General Fund surplus” does n ot include the amount 3
of nonwithholding income tax revenues that exceed the capped estimate determined under 4
§ 6–104(e) of this article. 5
(b) (1) The Revenue Stabilization Account is established to retain State 6
revenues for future needs and reduce the nee d for future tax increases by moderating 7
revenue growth. 8
(2) It is the goal of the State that 10% of estimated General Fund revenues 9
in each fiscal year be retained in the Account. 10
(e) (1) Except as provided in subsection (f) of this section, for each fiscal year, 11
except fiscal [year 2026] YEARS 2026 AND 2027: 12
(i) if the Account balance is below 3% of the estimated General Fund 13
revenues for that fiscal year, the Governor shall include in the budget bill an appropriation 14
to the Account equal to at least $100,000,000; and 15
(ii) if the Account balance is at least 3% but less than 7.5% of the 16
estimated General Fund revenues for that fiscal year, the Governor shall include in the 17
budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or 18
whatever amount is required for the Account balance to exceed 7.5% of the estimated 19
General Fund revenues for that fiscal year. 20
(2) At the end of fiscal year 2020 and each fiscal year thereafter, if the 21
amount of nonwithholding income tax revenues exceeds the capped estimate determined 22
under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in 23
§ 7–329(c) and (d) of this subtitle. 24
7–317. 25
(a) There is a Cigarette Restitution Fund. 26
(g) (1) Amounts may only be expended from the Fund through appropriations 27
in the State budget bill as provided in this subsection. 28
(6) (I) THIS PARAGRAPH DOES NOT APPLY TO FISCAL YEAR 2027. 29
(II) For each of fiscal years 2025 through 2029, the Governor shall 30
include in the annual budget bill an appropriation of $8,000,000 to the Maryland 31
Community Health Resources Commission Fund. 32
HOUSE BILL 392 23
(h) (1) The Fund shall include a separate account consisting of payments 1
received by the State as a result of litigation by participating manufacturers related to the 2
State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. 3
(2) (i) Except as provided in [subparagraph (ii)] SUBPARAGRAPHS (II) 4
AND (III) of this paragraph, distributions from the separate acc ount may be used only to 5
supplant the General Fund appropriation to the historically black colleges and universities 6
required under [§ 15–126] § 15–128 of the Education Article. 7
(ii) For fiscal year 2026 only, distributions from the separate account 8
may be used to support Medicaid expenses. 9
(III) FOR FISCAL YEAR 2027 ONLY, ANY AMOUNT THAT IS 10
DISTRIBUTED FROM THE SEPARATE ACCOUNT THA T IS IN EXCESS OF TH E FIRST 11
$35,000,000 DISTRIBUTED MAY REMA IN IN THE ACCOUNT OR BE USED FOR 12
PURPOSES OTHER THAN SUPPLANTING THE GENERAL FUND APPROPRIATION TO 13
THE HISTORICALLY BLA CK COLLEGES AND UNIV ERSITIES REQUIRED UN DER § 14
15–128 OF THE EDUCATION ARTICLE. 15
(i) (1) The Fund shall include a separate account consisting of payments 16
received by the State from any judgment, settlement, penalty, offer of compromise, or any 17
other enforcement action related to the sale and marketing of electronic smoking devices. 18
(2) Distributions from the separate account established under paragraph 19
(1) of this subsection may be used, consis tent with any other provision of State law, to 20
supplement the General Fund appropriations designated for programs under subsection (f) 21
of this section with the purpose of reducing the use of tobacco products by individuals under 22
the age of 21 years. 23
Article – State Government 24
9–20B–02. 25
There is a Maryland Strategic Energy Investment Program in the Maryland Energy 26
Administration. 27
9–20B–03. 28
The purpose of the Program is to decrease energy demand and increase energy 29
supply to promote affordable, reliable, and clean energy AND TO STRENGTHEN TH E 30
STATE’S CLIMATE MITIGATION AND CLIMATE RESILIEN CY to fuel Maryland’s future 31
prosperity. 32
9–20B–05. 33
(a) There is a Maryland Strategic Energy Investment Fund. 34
24 HOUSE BILL 392
(f) The Administration shall use the Fund: 1
(13) notwithstanding subsection (g) of this section, to pay costs associated 2
with: 3
(I) the Air and Radiation Administration within the Department of 4
the Environment; AND 5
(II) THE POWER PLANT RESEARCH PROGRAM WITHIN THE 6
DEPARTMENT OF NATURAL RESOURCES, INCLUDING TO SUPPORT 7
ENVIRONMENTAL REVIEW OF CERTIFICATES OF P UBLIC NECESSITY ASSO CIATED 8
WITH POWER PLANT CON STRUCTION REQUIRED UNDER § 3–306 OF THE NATURAL 9
RESOURCES ARTICLE; and 10
(g) Proceeds received by the Fund from the sale of allowances under § 2 –1002(g) 11
of the Environment Article shall be allocated as follows: 12
(3) at least 20% shall be credited to a renewable and clean energy programs 13
account for: 14
(i) renewable and clean energy programs and initiatives; 15
(ii) energy–related public education and outreach; [and] 16
(iii) climate change and resiliency programs; [and] 17
(IV) PROGRAMS AND APPLICA BLE INITIATIVES RELA TED TO 18
STATE CLIMATE CHANGE MITIGATION AND CLIMATE CHANGE RESILIENCY EFFORTS; 19
AND 20
(V) NOTWITHSTANDING § 9–20B–03 OF THIS SUBTITLE , 21
PROGRAMS AND APPLICA BLE INITIATIVES RELA TED TO RESILIENCY EF FORTS 22
DEFINED AND IMPLEMEN TED BY THE MARYLAND DEPARTMENT OF EMERGENCY 23
MANAGEMENT, INCLUDING THE ANNUAL REPORT BY THE OFFICE OF RESILIENCE 24
REQUIRED UNDER § 14–1203 OF THE PUBLIC SAFETY ARTICLE; AND 25
(i) (1) Except as provided in paragraphs [(2), (3), and (4)] (2) THROUGH (6) 26
of this subsection, compliance fees paid under § 7–705(b) of the Public Utilities Article may 27
be used only to make loans and grants to support the creation of new Tier 1 renewable 28
energy sources in the State that are owned by or directly benefit: 29
(i) low– to moderate–income communities located in a ce nsus tract 30
with an average median income at or below 80% of the average median income for the State; 31
or 32
HOUSE BILL 392 25
(ii) overburdened or underserved communities, as defined in § 1–701 1
of the Environment Article. 2
(5) FOR FISCAL YEAR 2027 ONLY, COMPLIANCE FEES PAID UNDER §§ 3
7–705(B) AND 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE SHALL BE MADE 4
AVAILABLE FOR THE FOLLOWING: 5
(I) $70,000,000 TO THE MARYLAND ENERGY ADMINISTRATION 6
TO PROVIDE GAP FINAN CING FOR AT –RISK, LARGE–SCALE CLEAN ENERGY 7
PROJECTS; 8
(II) $10,000,000 TO THE PUBLIC SERVICE COMMISSION TO 9
CONDUCT RESEARCH INT O GRID –ENHANCING TECHNOLOGI ES AND ADVANCED 10
TRANSMISSION TECHNOLOGIES; 11
(III) $5,000,000 TO THE PUBLIC SERVICE COMMISSION FOR 12
GRANTS TO UTILITY CO MPANIES TO CONSTRUCT OR MODIFY TRANSMISS ION 13
FACILITIES THAT INCORPORATE GRID–ENHANCING AND ADVANCED TRANSMISSION 14
TECHNOLOGIES; 15
(IV) $10,000,000 TO THE DEPARTMENT OF TRANSPORTATION 16
TO ESTABLISH A PROCESS, ESTABLISH A MODEL LEASING FRAMEWORK, AND CREATE 17
SAFETY GUIDELINES FOR RIGHT–OF–WAY FOR TRANSMISSION INFRASTRUCTURE; 18
(V) $25,000,000 TO THE DEDICATED PURPOSE ACCOUNT FOR 19
RESOURCE PLANNING RELATED TO IMPLEMENTATION OF CHAPTER 19 OF THE ACTS 20
OF THE GENERAL ASSEMBLY OF THE 2025 SPECIAL SESSION; AND 21
(VI) $42,000,000 TO THE DEDICATED PURPOSE ACCOUNT TO BE 22
MADE AVAILABLE FOR HIGHER EDUCATION RESEARCH GRANTS. 23
(6) FOR FISCAL YEARS 2027 THROUGH 2031, COMPLIANCE FEES PAID 24
UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND DEPOSITED INTO THE 25
FUND MAY BE USED FOR GRANTS OR LOANS TO S UPPORT THE CR EATION OF NEW 26
TIER 1 RENEWABLE ENERGY SOURCES IN THE STATE. 27
21–201. 28
(a) In this subtitle the following words have the meanings indicated. 29
(c) “Corps participant” means an individual who participates in the Program. 30
(d) “Department” means the Department of Service and Civic Innovation. 31
26 HOUSE BILL 392
(h) “Program” means the Maryland Corps Program. 1
21–205. 2
(a) (1) There is a Young Adult Service Year Option Pathway in the Program. 3
(c) (1) The Department shall set targets for participation in the YA Pathw ay 4
under this section, including: 5
(i) 200 corps participants in the first year of implementation; 6
(ii) 750 corps participants in the third year of implementation; 7
(iii) [1,500] 1,100 corps participants in the fourth year of 8
implementation; [and] 9
(iv) [2,000] 1,550 corps participants in the fifth year of 10
implementation; AND 11
(V) 2,000 CORPS PARTICIPANTS I N THE SIXTH YEAR OF 12
IMPLEMENTATION. 13
Article – State Personnel and Pensions 14
21–304. 15
(a) (1) In this section the following words have the meanings indicated. 16
(2) With respect to local employees, “aggregate annual earnable 17
compensation” means the total annual earnable compensation payable by a local employer 18
to all of its local employees, calculated as of June 30 of the second prior fi scal year before 19
the fiscal year for which the calculation is made under this section, adjusted by any 20
actuarial assumed salary increases that were used in the actuarial valuation prepared 21
under § 21–125(b) of this title for the immediate prior fiscal year. 22
(3) “Local employee” means a member of the Teachers’ Retirement System 23
or the Teachers’ Pension System who is an employee of a day school in the State under the 24
authority and supervision of a county board of education or the Baltimore City Board of 25
School Commissioners, employed as: 26
(i) a clerk; 27
(ii) a helping teacher; 28
(iii) a principal; 29
HOUSE BILL 392 27
(iv) a superintendent; 1
(v) a supervisor; or 2
(vi) a teacher. 3
(4) “Local employer” means a county board of education or the Baltimore 4
City Board of School Commissioners. 5
(5) “State member” does not include a member on whose behalf a 6
participating governmental unit is required to make an employer contribution under § 7
21–305 or § 21–306 of this subtitle. 8
(6) “Total employer contribution for local employees” means that portion of 9
the employer contribution calculated under subsection (b) of this section that is attributable 10
to all local employees. 11
(b) (1) Subject to paragraphs (4) and (5) of this subsection, each fiscal year, on 12
behalf of th e State members of each State system, the State shall pay to the appropriate 13
accumulation fund an amount equal to or greater than the sum of the amount, if any, 14
required to be included in the budget bill under § 3 –501(c)(2)(ii) of this article and the 15
product of multiplying: 16
(i) the aggregate annual earnable compensation of the State 17
members of that State system; and 18
(ii) the sum of the normal contribution rate and the accrued liability 19
contribution rate for State members of that State system, as determined under this section. 20
(4) (i) Subject to § 21–309.1 of this subtitle, beginning on July 1, 2012, 21
and each fiscal year thereafter, each local employer shall pay to the appropriate 22
accumulation fund an amount equal to the local share of the total employer contribution 23
for local employees as provided in this paragraph. 24
(iii) Beginning in fiscal year 2017, each local employer shall pay to 25
the Board of Trustees its local share equal to the normal contribution rate for the Teachers’ 26
Retirement System and the Teachers’ Pension System multiplied by the aggregate annual 27
earnable compensation of the local employees of that local employer. 28
(5) Except as provided in paragraph (6) of this subsection, the difference 29
between the total employer contribution for local employees and the local share of the total 30
employer contribution for all local employees shall be the obligation of the State. 31
(6) (i) Subject to § 21 –309.2 of this subtitle and as provided under 32
subparagraph (ii) of this paragraph, beginni ng in fiscal year [2026] 2027, each county 33
government shall pay to the Board of Trustees the following amounts: 34
28 HOUSE BILL 392
County 1
Government 2
Allegany ...................................... [754,195] 1,139,988 3
Anne Arundel.............................. [9,738,875] 13,344,016 4
Baltimore City ............................ [8,802,114] 12,041,167 5
Baltimore .................................... [10,352,112] 15,122,563 6
Calvert ........................................ [1,647,480] 2,284,705 7
Caroline ....................................... [561,645] 785,750 8
Carroll ......................................... [2,624,055] 3,661,920 9
Cecil............................................. [1,327,122] 1,963,691 10
Charles ........................................ [2,786,366] 3,900,924 11
Dorchester ................................... [590,506] 794,625 12
Frederick ..................................... [5,925,608] 7,899,429 13
Garrett ........................................ [269,208] 428,865 14
Harford ........................................ [3,685,077] 5,297,751 15
Howard ........................................ [6,830,167] 9,696,329 16
Kent ............................................. [165,489] 255,179 17
Montgomery ................................ [20,861,475] 28,754,528 18
Prince George’s ........................... [13,000,062] 18,675,337 19
Queen Anne’s .............................. [691,279] 973,835 20
St. Mary’s .................................... [1,562,014] 2,205,319 21
Somerset ..................................... [314,066] 442,575 22
Talbot .......................................... [452,957] 651,179 23
Washington ................................. [2,397,889] 3,279,909 24
Wicomico ..................................... [1,704,888] 2,379,362 25
Worcester .................................... [699,872] 1,049,543 26
(ii) 1. For fiscal year 2026, each county government shall pay to 27
the Board of Trustees on or bef ore January 1, 2026, the amount required under 28
subparagraph (i) of this paragraph. 29
2. Beginning in fiscal year 2027, each county government 30
shall pay to the Board of Trustees on or before each September 1 the amount required under 31
subparagraph (i) of this paragraph. 32
(iii) Each fiscal year, the amounts paid under subparagraph (i) of this 33
paragraph shall reduce the obligations of the State with respect to the Teachers’ Pension 34
System and the Teachers’ Retirement System by the same amounts. 35
Article – Tax – General 36
2–606. 37
HOUSE BILL 392 29
(b) (1) In June of each year, from current collections, the Comptroller shall 1
reserve an amount of unallocated revenue that the Comptroller estimates will be claimed 2
on returns and refunded to taxpayers within 3 years of the date the income tax return was 3
due to be filed, and distribute to each county, municipal corporation, and special taxing 4
district a pro rata share of the balance of the unallocated individual income tax revenue. 5
(2) The Comptroller shall adjust the amount di stributed under paragraph 6
(1) of this subsection to a county, municipal corporation, or special taxing district to allow 7
for the proportionate part of tax claim payments for a prior calendar year made after a 8
distribution is made to the county, municipal corporation, or special taxing district for that 9
year. 10
(i) (1) On or before [July 31, 2025 ] JUNE 1, 2025, the Comptroller shall 11
distribute $37,300,000 from the Local Reserve Account established to comply with this 12
section to the [Division of Paid Leave wi thin the Maryland Department of Labor ] 13
GENERAL FUND OF THE STATE. 14
(2) The Maryland Department of Labor shall reimburse the Local Reserve 15
Account $37,300,000 within 2 years after contributions into the Department’s Family and 16
Medical Leave Insurance Fund begin. 17
Article – Tax – Property 18
13–209. 19
(a) (1) Before any other distribution under this section, in any fiscal year that 20
bonds secured by a pledge of the State transfer tax are outstanding, the revenue from the 21
transfer tax shall be used to pay, as and when due, the principal of and interest on the 22
bonds. 23
(2) The Department shall deduct the cost of administering the transfer tax 24
from the taxes collected under this title and credit those revenues to the fund established 25
under § 1–203.3 of the Corporations and Associations Article. 26
(3) Except as provided in paragraph (4) of this subsection, after deducting 27
the revenues required under paragraphs (1) and (2) of this subsection, the revenue from 28
transfer tax is payable to the Comptroller for deposit in a special fund. 29
(4) In any fiscal year in which transfer tax revenue is used to pay debt 30
service on outstanding bonds under paragraph (1) of this subsection, the distribution of 31
revenues in the special fund under this section and as specified in § 5–903(a)(2)(i)1A of the 32
Natural Resources Article, for State land acquisition, or to the Agricultural Land 33
Preservation Fund to the extent any debt service is attributable to that Fund, shall be 34
reduced by an amount equal to the debt service for the fiscal year. 35
(b) For the fiscal year beginning July 1, 2002 and for subsequent fiscal years, up 36
to 3% of the revenues in the special fund may be appropriated in the State budget for 37
30 HOUSE BILL 392
salaries and related expenses in the Departments of General Services and Natural 1
Resources and in the Department of Planning necessary to administer Title 5, Subtitle 9 of 2
the Natural Resources Article (Program Open Space). 3
(c) (1) Subject to subsection (e) of this section, of the balance of the revenue in 4
the special fund, not required under subsection (b) of this section: 5
(i) for the fiscal year beginning July 1, 2002, $47,268,585 shall be 6
allocated to the General Fund of the State and the remainder shall be allocated as provided 7
in subsection (d) of this section; 8
(ii) for the fiscal year beginning July 1, 2003, $102,833,869 shall be 9
allocated to the General Fund of the State and the remainder shall be allocated as provided 10
in the State budget; 11
(iii) for the fiscal year beginning July 1, 2004, $147,374,444 shall be 12
allocated to the General Fund of the State, and the remainder shall be allocated as provided 13
in the State budget; and 14
(iv) for the fiscal year beginning July 1, 2005, $68,223,132 shall be 15
allocated to the General Fund of the State and the remainder shall be allocated as provided 16
in subsection (d) of this section. 17
(2) Subject to subsection (e) of this section, for the fiscal years beginning 18
July 1, 2006 and each subsequent fiscal year, the balance of the revenue in the special fund, 19
not required under subsection (b) of this section shall be allocated as provided in subsection 20
(d) of this section. 21
(3) (i) Subject to subsection (e) of this section, for fiscal years 2026 22
through 2029, of the balance of the revenue in the special fund not required under 23
subsection (b) of this section, $25,000,000 shall be allocated to the General Fund of the 24
State and the remainder shall be allocated as provided in PARAGRAPH (4) OF THIS 25
SUBSECTION AND subsection (d) of this section. 26
(ii) For each of fiscal years 2026 thro ugh 2029, the allocation 27
required under subparagraph (i) of this paragraph shall reduce the amount allocated for 28
Program Open Space land acquisition purposes identified in subsection (d)(1)(ii) of this 29
section and § 5 –903(a)(2)(i)1A of the Natural Resource s Article, the Agricultural Land 30
Preservation Fund identified in subsection (d)(2) of this section, and the Rural Legacy 31
Program identified in subsection (d)(3) of this section and § 5 –903(a)(2)(iii) of the Natural 32
Resources Article by an amount that is proportional to the amount of revenue each program 33
is estimated to receive for the fiscal year. 34
(4) (I) IN ADDITION TO THE GENERAL FUND ALLOCATION UNDER 35
PARAGRAPH (3) OF THIS SUBSECTION A ND SUBJECT TO SUBSEC TION (E) OF THIS 36
SECTION, FOR FISCAL YEAR 2027 ONLY, OF THE BALANCE OF THE REVENUE IN THE 37
HOUSE BILL 392 31
SPECIAL FUND NOT REQ UIRED UNDER SUBSECTI ON (B) OF THIS SECTION , 1
$71,743,156 SHALL BE ALLOCATED TO THE GENERAL FUND OF THE STATE AND THE 2
REMAINDER SHALL BE A LLOCATED AS PROVIDED IN SUBSECTION (D) OF THIS 3
SECTION. 4
(II) THE AMOUNT ALLOCATED UNDER SUBPARAGRAPH (I) OF 5
THIS PARAGRAPH SHALL REDUCE THE AMOUNT AL LOCATED FOR THE FOLL OWING 6
PROGRAMS AND FUNDS: 7
1. PROGRAM OPEN SPACE (LOCAL) FUNDS IDENTIFIED 8
IN §§ 5–903(A)(2)(II)2E AND (B)(1) AND 5–905(B)(7) OF THE NATURAL RESOURCES 9
ARTICLE BY $49,586,156; 10
2. RURAL LEGACY PROGRAM FUNDS IDENTIF IED IN 11
SUBSECTION (D)(3) OF THIS SECTION AND § 9–503(A)(2)(III) OF THE NATURAL 12
RESOURCES ARTICLE BY $13,400,000; AND 13
3. FUNDS FOR THE NATURAL RESOURCES 14
DEVELOPMENT FUND IDENTIFIED FOR THE PURPOSES SPECIFIED IN § 5–903(G)(1) 15
OF THE NATURAL RESOURCES ARTICLE. 16
(III) THE ALLOCATIONS REDUC ED UNDER SUBPARAGRAP H (II) 17
OF THIS PARAGRAPH SHALL BE REPLACED WITH GENERAL OBLIGATION BONDS. 18
(d) Subject to subsections (d–1) and (e) of this section, for the fiscal year beginning 19
July 1, 2002 and for each subsequent fiscal year, the balance of the revenue in the special 20
fund, not required under subsection (b) of this section and not allocated to the General Fund 21
under subsection (c)(1) [and], (3), AND (4) of this section shall be allocated in the State 22
budget as follows: 23
(1) (i) 75.15% for the purposes specified in Title 5, Subtitle 9 of the 24
Natural Resources Article (Program Open Space); and 25
(ii) an additional 1% for Program Open Space, for land acquisition 26
purposes as specified in § 5–903(a)(2) of the Natural Resources Article; 27
(2) 17.05% for the Agricultural Land Preservation Fund established under 28
§ 2–505 of the Agriculture Article; 29
(3) 5% for the Rural Legacy Program esta blished under § 5 –9A–01 of the 30
Natural Resources Article; and 31
(4) 1.8% for the Heritage Conservation Fund established under § 5 –1501 32
of the Natural Resources Article. 33
32 HOUSE BILL 392
(e) The sums allocated in subsection (d) of this section may not revert to the 1
General Fund of the State. 2
(g) (3) (i) 1. For fiscal year 2023, the Governor shall include in the 3
annual budget bill a General Fund appropriation in the amount of $2,500,000 to the 4
Maryland Agricultural and Resource –Based Industry Development Corporation for the 5
Next Generation Farmland Acquisition Program authorized under § 10–523(a)(3)(ii) of the 6
Economic Development Article. 7
2. For fiscal year 2025 only, the Governor shall include in the 8
annual budget bill a General Fund appropriation in the amount of $2,735,000 to the 9
Maryland Agricultural and Resource –Based Industry Development Corporation 10
established under Title 10, Subtitle 5 of the Economic Development Article to be used as 11
follows: 12
A. $2,300,000 to support the Corporation’s rural business 13
loan programs and small matching grant programs; and 14
B. $435,000 for grants and near–equity investments to: 15
I. support the creation or expansion of agricultural product 16
aggregation and storage sites; and 17
II. facilitate participation in the Cert ified Local Farm and 18
Fish Program. 19
3. A. For each of fiscal years 2024, 2025, AND 2026, [and 20
2027,] the Governor shall include in the annual budget bill a General Fund appropriation 21
of $500,000 to the Urban Agriculture Water and Power Infrastructure G rant Fund 22
established under § 2–2103 of the Agriculture Article. 23
B. FOR FISCAL YEAR 2027, THE GOVERNOR SHALL 24
INCLUDE IN THE ANNUA L BUDGET BILL A GENERAL FUND APPROPRIATION OF 25
$400,000 TO THE URBAN AGRICULTURE WATER AND POWER INFRASTRUCTURE 26
GRANT FUND ESTABLISHED UNDER § 2–2103 OF THE AGRICULTURE ARTICLE. 27
(ii) The appropriations required under subparagraph (i) of this 28
paragraph: 29
1. are not subject to the provisions of subsections (a), (b), (c), 30
and (f) of this section; 31
2. shall be allocate d as provided in subsection (d) of this 32
section and § 5–903 of the Natural Resources Article; and 33
HOUSE BILL 392 33
3. shall be reduced by the amount of any appropriation from 1
the General Fund to the special fund that: 2
A. exceeds the required appropriation under this paragraph; 3
and 4
B. is identified as an appropriation for reimbursement under 5
this paragraph. 6
(h) (1) Except as provided in paragraph (3) of this subsection, if an 7
appropriation or a transfer from the special fund to the General Fund occurs after the fiscal 8
year ending June 30, 2018, the Governor shall include in the annual budget bills for each 9
of the 3 successive fiscal years following the fiscal year in which a transfer is made a 10
General Fund appropriation to the special fund equal to one –third of the cumulative 11
amount of the appropriation or transfer from the special fund to the General Fund for the 12
applicable fiscal year. 13
(2) The appropriation required under paragraph (1) of this subsection: 14
(i) represents reimbursement for the cumulativ e amount of any 15
appropriation or transfer from the special fund to the General Fund for the applicable fiscal 16
year; 17
(ii) is not subject to the provisions of subsections (a), (b), (c), and (f) 18
of this section; 19
(iii) shall be allocated as provided in subsection (d) of this section and 20
§ 5–903 of the Natural Resources Article; 21
(iv) shall be made until the cumulative total appropriated under 22
paragraph (1) of this subsection is equal to the cumulative amount of any appropriation or 23
transfer from the special fund to the General Fund for the applicable fiscal year; and 24
(v) shall be reduced by the amount of any appropriation from the 25
General Fund to the special fund that: 26
1. exceeds the required appropriation under this subsection; 27
and 28
2. is identified as an appropriation for reimbursement under 29
this subsection. 30
(3) The appropriation required under paragraph (1) of this subsection does 31
not apply to transfers from the special fund to the General Fund that occur in fiscal years 32
2026 through 2029. 33
Article – Transportation 34
34 HOUSE BILL 392
13–955. 1
(a) In this section, “Fund” means the Maryland Emergency Medical System 2
Operations Fund. 3
(e) Except as provided in subsection (f) of this section, the money in the Fund 4
shall be used solely for: 5
(1) Medically oriented functions of the Department of State Police, Special 6
Operations Bureau, Aviation Division; 7
(2) The Maryland Institute for Emergency Medical Services Systems; 8
(3) The R Adams Cowley Shock Trauma Center at the University of 9
Maryland Medical System; 10
(4) The Maryland Fire and Rescue Institute; 11
(5) The provision of grants under the Senator William H. Amoss Fire, 12
Rescue, and Ambulance Fund in accordance with the provisions of Title 8, Subtitle 1 of the 13
Public Safety Article; and 14
(6) The Volunteer Company Assistance Fund in accordance with the 15
provisions of Title 8, Subtitle 2 of the Public Safety Article. 16
(f) For fiscal years 2025 [and 2026] THROUGH 2029, the money in the Fund may 17
be used to support general operations of the Department of State Police, Special Operations 18
Bureau, Aviation Command. 19
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 20
as follows: 21
Article – Education 22
7–414.1. 23
(a) (1) In this section the following words have the meanings indicated. 24
(2) “Fund” means the Driver Education in Public High Schools Fund. 25
(3) “Program” means the Driver Education in Public High Schools Grant 26
Program. 27
(b) There is a Driver Education in Public High Schools Grant Program in the 28
Department. 29
HOUSE BILL 392 35
(f) (1) There is a Driver Education in Public High Schools Fund. 1
(4) The Fund consists of[: 2
(i) Money received by the Fund from fines for vehicle security lapses 3
under § 17–106 of the Transportation Article; and 4
(ii) Any other ] money from any [other] source acc epted for the 5
benefit of the Fund. 6
(5) The Fund may be used only for: 7
(i) Providing grants under the Program; and 8
(ii) Administrative costs of the Program. 9
Article – Natural Resources 10
5–903. 11
(a) (1) (i) Of the funds distributed to Program Open Space under § 13–209 12
of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 13
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 14
State Finance and Procurement Article, to the Mary land Heritage Areas Authority 15
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 16
to be used for the purposes provided in that subtitle. 17
(ii) Of the amount transferred under subparagraph (i) of this 18
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 19
Department of Planning to be awarded as noncapital historic preservation grants. 20
(2) (i) 1. Of the remaining funds not appropriated under paragraph 21
(1)(i) of this subsection: 22
A. One half of the funds shall be used for recreation and open 23
space purposes by the Department and the Historic St. Mary’s City Commission; [and] 24
B. 20% of the funds or $21,000,000, whichever is greater, 25
shall be appropriated to the Forest and Pa rk Service in the Department to operate State 26
forests and parks; AND 27
C. 0.2% OF THE FUNDS OR $200,000, WHICHEVER IS 28
GREATER, SHALL BE APPROPRIATE D TO THE DEPARTMENT OF PLANNING TO 29
OPERATE AND MAINTAIN THE JEFFERSON PATTERSON PARK AND MUSEUM. 30
36 HOUSE BILL 392
2. Except as otherwise provided in this section, any funds the 1
General Assembly appropriates to the State under this subsection shall be used only for 2
land acquisition projects. 3
(i) (1) Notwithstanding any other provision of this section or the allocation 4
formulas in § 13 –209 of the Tax – Property Article and subject to paragraph (2) of this 5
subsection, the Governor may transfer to the Department funds from the Program Open 6
Space State land acquisition balance if: 7
(i) The balance is more than $80,000,000 at the end of a given fiscal 8
year; and 9
(ii) The Department’s existing special fund sources are insufficient 10
to cover existing salaries for permanent, classified positions responsible for operating and 11
maintaining lands administered and managed by the Department. 12
(2) After a fund transfer under paragraph (1) of this subsection, the 13
remaining balance must be at least $80,000,000. 14
(3) (i) The Department may use any amount of the transferred funds 15
as a one–time fiscal year expenditure for: 16
1. Operation and maintenance of lands administered and 17
managed by the Department; 18
2. Administrative expenses related to land acquired by the 19
Department under Program Open Space; or 20
3. Law enforcement activities, services, salaries, and related 21
expenses of the Natural Resources Police. 22
(ii) The Department may transfer any amount of the transferred 23
funds to the Forest or Park Reserve Fund established under § 5–212 of this title. 24
(4) Any fund transfer made under this subsection supplements rather than 25
supplants any other funding for operation, maintenance, and administration of lands 26
administered and managed by the Department regardless of the source of the other 27
funding. 28
(5) FOR PURPOSES OF THE F UND TRANSFER ALLOWED UNDER THIS 29
SUBSECTION, THE BAL ANCE OF THE HERITAGE CONSERVATION FUND 30
ESTABLISHED UNDER § 5–1501 OF THIS TITLE AND AN Y OTHER FUNDS 31
APPROPRIATED TO PROGRAM OPEN SPACE (STATESIDE) SHALL BE INCLUDED AS 32
PART OF THE PROGRAM OPEN SPACE STATE LAND ACQUISITION BALANCE. 33
Article – Transportation 34
HOUSE BILL 392 37
17–106. 1
(a) If the required security for any vehicle lapses at any time, the registration of 2
that vehicle: 3
(1) Is suspended automatically as of the date of the lapse effective not later 4
than 60 days after notification to the Administration that the lapse has occurred; and 5
(2) Remains suspended until: 6
(i) The required security is replaced and the vehicle owner submits 7
evidence of replaced security on a form as prescribed by the Administration and certified 8
by an insurer or insurance producer; and 9
(ii) Any uninsured motorist penalty fee assessed is paid to the 10
Administration. 11
(b) (1) Except as provided in paragraph (2) of this subsection, each insurer or 12
other provider of required security immediately shall notify the Administration 13
electronically of those terminations or other lapses that are final. 14
(2) Each insurer or other provider of required security for a vehicle 15
registered as a Class B (for hire) vehicle under Title 13 of this article shall notify the 16
Administration within 45 days after a termination or other lapse that is final and occurs 17
anytime after the required security is issued or provided. 18
(c) On receipt of a notice under subsection (b) of this section, the Administration 19
shall: 20
(1) Make a reasonable effort to notify th e owner of the vehicle that his 21
registration has been suspended; and 22
(2) Provide electronically the information contained in the notice of the 23
suspension to the Uninsured Division of the Maryland Automobile Insurance Fund. 24
(d) (1) Within 48 hours after an owner is notified by the Administration of the 25
suspension of registration, the owner shall surrender all evidences of that registration to 26
the Administration. 27
(2) If the owner fails to surrender the evidences of registration within the 28
48–hour period, the Administration: 29
(i) Shall attempt to recover from the owner the evidences of 30
registration; and 31
(ii) May suspend his license to drive until he returns to the Motor 32
Vehicle Administration the evidences of registration. 33
38 HOUSE BILL 392
(3) The Administration may enter into contracts with private parties to 1
procure the services of independent agents to assist in the recovery of the evidences of 2
registration as authorized in paragraph (2) of this subsection. 3
(e) (1) (i) 1. Except as provided in subparagraphs (iv) and (v) of this 4
paragraph, in addition to any other penalty provided for in the Maryland Vehicle Law, if 5
the required security for a vehicle terminates or otherwise lapses during its registration 6
year, the Administration may assess the o wner of the vehicle with a penalty of $200 for 7
each vehicle without the required security for a period of 1 to 30 days. 8
2. If a fine is assessed, beginning on the 31st day the fine 9
shall increase by a rate of $7 for each day. 10
(ii) Each period duri ng which the required security for a vehicle 11
terminates or otherwise lapses shall constitute a separate violation. 12
(iii) The penalty imposed under this subsection may not exceed 13
$3,500 for each violation in a 12–month period. 14
(iv) The Administratio n may not assess a penalty under this 15
subsection if: 16
1. The registration plates of the vehicle are returned to the 17
Administration within 10 days after the termination or lapse of the required security, as 18
shown by the records of the Administration; and 19
2. A. The certificate of title for the vehicle has been 20
transferred to a new owner; 21
B. The registered owner has moved out –of–state and the 22
registration plates are returned by mail; 23
C. A salvage certificate has been issued for the vehicle; or 24
D. A licensed dealer has taken possession of the vehicle with 25
an obligation to return the registration plates. 26
(v) Before the Administration may assess a penalty under this 27
subsection, the Administration shall first verify that the registration plates for the vehicle 28
were not returned to the Administration within 10 days after the termination or lapse of 29
the required security. 30
(2) (i) Except as provided under paragraph (3) of this subsection, a 31
penalty assessed under this subsection shall be paid as follows: 32
HOUSE BILL 392 39
1. 70% to be allocated as provided in subparagraph (ii) of this 1
paragraph; and 2
2. 30% to the Administration, which may be used by the 3
Administration, subject to subsection (f) of this section, to provide funding for contracts 4
with independent agents to assist in the recovery of evidences of registration as authorized 5
in subsection (d)(3) of this section. 6
(ii) For each fiscal year beginning on or after July 1, 2014, the 7
percentage of the penalties specified under subparagrap h (i)1 of this paragraph shall be 8
allocated among the Safe Schools Fund, the Vehicle Theft Prevention Fund, the Maryland 9
Automobile Insurance Fund, [the Driver Education in Public High Schools Fund, ] the 10
State–Aided Institutions Field Trip Fund, and the General Fund as follows: 11
1. $600,000 to the Safe Schools Fund; 12
2. $2,000,000 to the Vehicle Theft Prevention Fund; 13
3. The amounts specified under subparagraph (iii) of this 14
paragraph to the Maryland Automobile Insurance Fund; 15
4. [$2,000,000 to the Driver Education in Public High 16
Schools Fund; 17
5.] $600,000 to the State–Aided Institutions Field Trip Fund; 18
and 19
[6.] 5. The balance to the General Fund. 20
(iii) 1. Except for fiscal year 2024 and except as provided under 21
subsubparagraph 3 of this subparagraph, the amount distributed to the Maryland 22
Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the 23
amount distributed to the Maryland Automobile Insurance Fund in the prior fiscal year 24
under the provision s of this paragraph adjusted by the change for the calendar year 25
preceding the fiscal year in the Consumer Price Index – All Urban Consumers – Medical 26
Care as published by the United States Bureau of Labor Statistics. 27
2. For fiscal year 2024, the amou nt distributed to the 28
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 29
equal the amount distributed to the Maryland Automobile Insurance Fund in the prior 30
fiscal year under the provisions of this paragraph adjusted by the change for the calendar 31
year preceding the fiscal year in the Consumer Price Index – All Urban Consumers – 32
Medical Care as published by the United States Bureau of Labor Statistics plus an 33
additional $2,000,000. 34
3. For fiscal year 2025, the amount di stributed to the 35
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 36
40 HOUSE BILL 392
equal the amount distributed to the Maryland Automobile Insurance Fund calculated in 1
accordance with subsubparagraph 1 of this subparagraph: 2
A. Plus an additional $3,000,000 dedicated to the exclusive 3
use of the Uninsured Division, which shall become part of the base amount used to calculate 4
the amount distributed under subsubparagraph 1 of this subparagraph in subsequent fiscal 5
years; but 6
B. Excluding the $2,000,000 distributed to the Fund in fiscal 7
year 2024. 8
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Tax – General 11
10–210.1. 12
(a) (1) In this section the following words have the meanings indicated. 13
(2) “Depreciation” includes any deduction allowed under § 179 of the 14
Internal Revenue Code. 15
(3) “Heavy duty SUV” means a 4–wheeled vehicle that: 16
(i) is manufactured primarily for use on public streets, roads, and 17
highways; 18
(ii) is rated at more than 6,000 but not more than 14,000 pounds 19
gross vehicle weight; and 20
(iii) would be a passenger automobile as defined in § 280F of the 21
Internal Revenue Code if it were rated at 6,000 pounds gross vehicle weight or less. 22
(4) (i) “Manufacturing entity” means a person conducting or operating 23
a trade or business that is primarily engaged in activities that, in accordance with the 24
North American Industrial Classification System (NAICS), United States Manual, United 25
States Office of Management and Budget, 2012 Edition, would be included in Sector 31, 32, 26
or 33. 27
(ii) “Manufacturing entity” does not include a refiner, as defined in 28
§ 10–101 of the Business Regulation Article. 29
(b) In addition to the modifications under §§ 10 –204 through 10 –210 of this 30
subtitle, to determine Maryland adjusted gross income of an individual: 31
HOUSE BILL 392 41
(1) (i) except as provided in item (ii) of this item, an amount is added to 1
or subtracted from federal adjusted gross income to reflect the determination of the 2
depreciation deduction provided under § 167(a) of the Internal Revenue Code and the 3
adjusted basis of property without regard to the additional allowance under § 168(k) of the 4
Internal Revenue Code; and 5
[(ii) item (i) of this item does not apply to property placed in service 6
by a manufacturing entity on or after January 1, 2019;] 7
(II) FOR A MANUFACTURING ENTITY, AN AMOUNT IS ADDED T O 8
OR SUBTRACTED FROM F EDERAL ADJUSTED GROS S INCOME TO REFLECT THE 9
DETERMINATION OF THE DEPRECIATION DEDUCTION PROVIDED UNDER § 167(A) OF 10
THE INTERNAL REVENUE CODE AND THE ADJUSTED BASIS OF PROPERTY BY 11
LIMITING THE ADDITIO NAL ALLOWANCE UNDER § 168(K) OF THE INTERNAL 12
REVENUE CODE TO 20% OF THE ADJUSTED BASIS OF THE QUALIFIED PROPERTY; 13
(2) AN AMOUNT IS ADDED T O OR SUBTRACTED FRO M FEDERAL 14
ADJUSTED GROSS INCOM E TO REFLECT THE DET ERMINATION OF THE 15
DEPRECIATION DEDUCTI ON PROVIDED UNDER § 167(A) OF THE INTERNAL 16
REVENUE CODE AND THE ADJUSTED BASIS OF PROPERTY WITHOUT REGARD TO THE 17
ADDITIONAL ALLOWANCE UNDER § 168(N) OF THE INTERNAL REVENUE CODE; 18
(3) an amount is added to or subtracted from federal adjusted gross income 19
to determine the net operating loss deduction allowed under § 172 of the Internal Revenue 20
Code without regard to an election under § 172(b)(1)(H) of the Internal Revenue Code for a 21
carryback period of up to 5 years; 22
[(3)] (4) (i) except as provided in item (ii) of this item, an amount is 23
added to or subtracted from federal adjusted gross income to reflect the determination of 24
the maximum aggregate costs that the taxp ayer may treat as an expense under § 179 of 25
the Internal Revenue Code for any taxable year without regard to any changes made to 26
that section after December 31, 2002: 27
1. increasing above $25,000 the dollar limitation set forth in 28
§ 179(b)(1) of the Internal Revenue Code; or 29
2. increasing above $200,000 the phase –out threshold set 30
forth in § 179(b)(2) of the Internal Revenue Code; and 31
(ii) item (i) of this item does not apply to property that is placed in 32
service by a manufacturing entity on or after January 1, 2019; 33
[(4)] (5) an amount is added to or subtracted from federal adjusted gross 34
income to reflect the recognition of income from discharge of indebtedness and the 35
allowance of any deduction with respect to original issue discount without regard to § 108(i) 36
of the Internal Revenue Code; and 37
42 HOUSE BILL 392
[(5)] (6) an amount is added to or subtracted from federal adjusted gross 1
income to reflect the determination of the depreciation deduction with respect to any heavy 2
duty SUV as if the heavy duty SUV were subject to the limitations of § 280F of the Internal 3
Revenue Code in the same manner as it would be if the vehicle were rated at 6,000 pounds 4
gross vehicle weight or less. 5
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Chapter 275 of the Acts of 2023 8
SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Department of 9
Health [shall] MAY apply to the Substance Abuse and Mental Health Services 10
Administration at the Center for Mental Health Services for inclusion in the state certified 11
community behavioral health clinic demonstration program for fiscal year [2026] 2029, 12
SUBJECT TO THE LIMITATIONS OF THE STATE BUDGET. 13
SECTION 5. AND BE IT FURTHER ENACTED, That the unexpended fiscal year 14
2018 special fund appropriation of $980,000 for outdoor recreation land loan – capital 15
appropriation (K00A05.10) within the Department of Natural Resources allocated to the 16
College of Southern Maryland may be repurposed for State land acquisition under Program 17
Open Space. 18
SECTION 6. AND BE IT FURTHER ENACTED, That, notwithstanding any other 19
provision of law, on or before June 30, 2026, the Governor may transfer to the General Fund 20
the following: 21
(1) $259,000,000 from the Renewable Portfolio Standard/ACP Account of 22
the M aryland Strategic Energy Investment Fund established under § 9 –20B–05 of the 23
State Government Article; 24
(2) $187,609,007 from the Fiscal Responsibility Fund established under § 25
7–330 of the State Finance and Procurement Article; 26
(3) $33,000,000 from t he Administration Account of the Maryland 27
Strategic Energy Investment Fund established under § 9–20B–05; 28
(4) $10,000,000 from the Maryland Loan Assistance Repayment Program 29
Fund for Nurses and Nursing Support Staff established under § 24 –1902 of the Hea lth – 30
General Article; and 31
(5) $2,000,000 from the Performance Incentive Grant Fund established 32
under § 9–3209 of the State Government Article. 33
SECTION 7. AND BE IT FURTHER ENACTED, That, notwithstanding any other 34
provision of law, on or before June 30, 2026, the Governor may transfer to the General Fund 35
HOUSE BILL 392 43
$1,038,910 from the Dedicated Purpose Account established under § 7 –310 of the State 1
Finance and Procurement Article for the following purposes: 2
(1) $355,760 for domestic violence centers; 3
(2) $201,292 for assisted living centers; 4
(3) $152,732 for the State Police Gun Center; 5
(4) $101,537 for police departments to coordinate task forces that cross 6
jurisdictional boundaries; 7
(5) $100,001 for the Center for Neuroscience of Social Justice; 8
(6) $75,988 for violence prevention and interruption organizations; and 9
(7) $51,600 for the Greater Baltimore Regional Integrated Crisis System. 10
SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other 11
provision of law, on or before June 30, 2027, the Governor may transfer to the General Fund 12
$6,700,000 from the Maternal and Child Health Population Health Improvement Fund 13
established under § 19–210 of the Health – General Article. 14
SECTION 9. AND BE IT FURTHER ENACTED, That, notwiths tanding any other 15
provision of law, on or before June 30, 2027, the Governor may transfer to the General Fund 16
the following, with the funds for related projects to be replaced with General Obligation 17
Bonds: 18
(1) $70,000,000 from the Bay Restoration Fund established under § 19
9–1605.2 of the Environment Article; 20
(2) $13,068,000 from the Waterway Improvement Fund established under 21
§ 8–707 of the Natural Resources Article; and 22
(3) $188,844 from the Program Open Space Local Funds that reverted to 23
and are held in a special account by the Department of Natural Resources under § 24
5–905(b)(7) of the Natural Resources Article. 25
SECTION 10. AND BE IT FURTHER ENACTED, That the fiscal year 2026 General 26
Fund appropriation of $3,000,000 for Facility Operations Adm inistration and Support 27
(V00E01.02) within the Department of Juvenile Services restricted for the purpose of 28
reopening the Alfred D. Noyes Children’s Center as an adolescent drug treatment center 29
may be instead used to provide drug treatment services at other child–serving facilities and 30
to reopen the Alfred D. Noyes Children’s Center as a facility for children. 31
SECTION 11. AND BE IT FURTHER ENACTED, That, notwithstanding any other 32
provision of law, no amounts may be expended in fiscal year 2027 to pay increases over the 33
44 HOUSE BILL 392
rates in effect on January 21, 2026, for providers of nonpublic placements under § 8–406 of 1
the Education Article. 2
SECTION 12. AND BE IT FURTHER ENACTED, That, notwithstanding any other 3
provision of law, no amounts may be expended in fiscal year 2027 to pay increases over the 4
rates in effect on January 21, 2026, for providers with rates set by the Interagency Rates 5
Committee under § 8–417 of the Education Article. 6
SECTION 13. AND BE IT FURTHER ENACTED, That, notwithstanding any other 7
provision of law, the Interagency Commission on School Construction may reallocate 8
federal funding awarded from fiscal years 2022 and 2023 for heating, ventilation, and 9
air–conditioning upgrades for public school buildings to ensure compliance with the 10
provisions of the American Rescue Plan Act of 2021. 11
SECTION 14. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be 12
applicable to all taxable years beginning after December 31, 2025. 13
SECTION 15. AND BE IT FURTHER ENACTED, That Sections 2 and 3 of this Act 14
shall take effect July 1, 2026. 15
SECTION 16. AND BE IT FURTHER ENACTED, That, except as provided in 16
Section 15 of this Act, this Act shall take effect June 1, 2026. 17