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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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Underlining indicates amendments to bill.
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amendment.
*hb0706*
HOUSE BILL 706
P1, P3 6lr0798
CF SB 828
By: Delegates Moon, Bagnall, Bartlett, Korman, Valderrama, Wells, and Wilkins
Introduced and read first time: February 2, 2026
Assigned to: Appropriations
Committee Report: Favorable
House action: Adopted
Read second time: March 23, 2026
CHAPTER ______
AN ACT concerning 1
State Finance – Delinquent Federal Funds 2
(Federal Obligations Enforcement Act) 3
FOR the purpose of reserving jurisdiction with respect to certain federal land in the State 4
under certain conditions; authorizing the Central Collection Unit of the Department 5
of Budget and Management to collect a certain amount of delinquent federal funds; 6
authorizing the Central Collection Unit , under a certain circumstance , to collect 7
certain federal funds owed to the State, place liens on federal property in the State, 8
and direct the Comptroller to withhold certain payments to the federal government; 9
authorizing the Board of Public Works, by a majority vote, to determine the federal 10
government to be delinquent in federal funds owed to the State under a certain 11
circumstance; requiring certain delinquent federal funds to be referred to the Central 12
Collection Unit ; authorizing the Comptroller to withhold State payments to the 13
federal government for certain delinquent federal funds referred by the Central 14
Collection Unit; and generally relating to delinquent federal funds owed to the State. 15
BY repealing and reenacting, with amendments, 16
Article – General Provisions 17
Section 6–202 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20
BY adding to 21
Article – General Provisions 22
Section 6–204 23
2 HOUSE BILL 706
Annotated Code of Maryland 1
(2019 Replacement Volume and 2025 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – State Finance and Procurement 4
Section 3–101, 3–206(a), (b), and (d), and 10–101 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 3–302(a)(1) and 3–304(a) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12
BY adding to 13
Article – State Finance and Procurement 14
Section 3–302(d) and 10–208 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2025 Supplement) 17
BY adding to 18
Article – State Government 19
Section 4–115 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2025 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – State Government 24
Section 6–106.1(a) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2025 Supplement) 27
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 28
That the Laws of Maryland read as follows: 29
Article – General Provisions 30
6–202. 31
Notwithstanding § 6 –201(a) [or], § 6 –203, OR § 6–204 of this subtitle, for the 32
purpose of enforcing the civil or criminal laws of the State, the Governor may enter into an 33
agreement with the United States to establish full or partial concurrent jurisdiction of the 34
State and the United States over any land in the State held by the United States. 35
6–204. 36
HOUSE BILL 706 3
FOR FEDERAL FUNDS DETERMINED DELINQUENT UNDER § 10–208 OF THE 1
STATE FINANCE AND PROCUREMENT ARTICLE, THE STATE RESERVES 2
JURISDICTION WITH RESPECT TO LAND THAT THE UNITED STATES OR ANY UNIT OF 3
THE UNITED STATES LEASES OR OTHE RWISE HOLDS IN THE STATE WHEN THE 4
FEDERAL GOVERNMENT IS FOUND NOT IN COMP LIANCE WITH COURT DECISIO NS 5
UPHOLDING FEDERAL CONGRESSIONALLY APPROVED SPENDING. 6
Article – State Finance and Procurement 7
3–101. 8
(a) In this title the following words have the meanings indicated. 9
(b) “Department” means the Department of Budget and Management. 10
(c) “Secretary” means the Secretary of Budget and Management. 11
3–206. 12
(a) The Attorney General is legal adviser to the Department. 13
(b) (1) With the advice of the Secretary, the Attorney General shall assign at 14
least 1 assistant Attorney General to the Central Collection Unit. 15
(2) At the request of the Governor, the Attorney General shall assign to the 16
Department: 17
(i) at least 1 assistant Attorney General; and 18
(ii) any other assistant Attorneys General authorized by law to be 19
assigned to the Department. 20
(d) Each assistant Attorney General who is assigned to the Central Collection 21
Unit shall devote full time to the duties with that Unit and may have no other duties. 22
3–302. 23
(a) (1) Except as otherwise provided in [subsection (b) ] SUBSECTIONS (B) 24
AND (D) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central 25
Collection Unit is responsible for the collection of each delinquent account or other debt 26
that is owed to the State or any of its officials or units. 27
(D) THE CENTRAL COLLECTION UNIT MAY COLLECT DELINQUENT 28
FEDERAL FUNDS DETERMINED UNDER § 10–208 OF THIS ARTICLE IN AN AMOUNT UP 29
TO THE TOTAL OF DELINQUENT FEDERAL FUNDS OWED TO THE STATE. 30
4 HOUSE BILL 706
3–304. 1
(a) In carrying out its responsibilities, the Central Collection Unit may: 2
(1) (i) institute, in its name, any action that is available under State 3
law for collection of a debt or claim; or 4
(ii) without suit, settle the debt or claim; 5
(2) for all debts or claims collected on or after June 1, 1992: 6
(i) in addition to the outstanding principal and interest, assess and 7
collect from the debtor a fee, which may not exceed 20% of the outstanding principal and 8
interest, sufficient to cover all collection and administrative costs; and 9
(ii) prior to crediting any amount to any agency which refers a debt 10
for any purpose, withhold a fee sufficient to cover all collection and administrative costs; 11
(3) waive or reduce any fee assessed under paragraph (2) of this subsection; 12
[and] 13
(4) certify a debt or claim and the debtor responsible for the debt or claim 14
to: 15
(i) the Comptroller for income tax refund interception in accordance 16
with Title 13, Subtitle 9 of the Tax – General Article; and 17
(ii) the State Lottery and Gaming Control Agency for State lottery 18
prize interception in accordance with § 3–307 of this subtitle; AND 19
(5) IF THE BOARD OF PUBLIC WORKS DETERMIN ES THE FEDERAL 20
GOVERNMENT TO BE DELINQUENT IN FEDERAL FUNDS OWED TO THE STATE UNDER 21
§ 10–208 OF THIS ARTICLE, IN CONSULTATION WITH THE ATTORNEY GENERAL: 22
(I) COLLECT FEDERAL FUNDS OWED TO THE STATE; 23
(II) PLACE LIENS ON FEDERAL PROPERTY IN THE STATE; AND 24
(III) DIRECT THE COMPTROLLER TO WITHHO LD PAYMENTS TO 25
THE FEDERAL GOVERNME NT AS PROVIDED UNDER § 4–115 OF THE STATE 26
GOVERNMENT ARTICLE. 27
10–101. 28
In this title, “Board” means the Board of Public Works. 29
HOUSE BILL 706 5
10–208. 1
(A) IF THE FEDERAL GOVERN MENT DOES NOT COMPLY WITH COURT 2
DECISIONS UPHOLDING CONGRESSIONALLY APPROVED SPENDING, THE BOARD MAY 3
DETERMINE, BY A MAJORITY VOTE, THE FEDERAL GOVERNMENT TO BE DELINQUENT 4
IN FEDERAL FUNDS OWED TO THE STATE. 5
(B) FEDERAL FUNDS DETERMI NED DELINQUENT UNDER SUBSECTION (A) 6
OF THIS SECTION SHALL BE REFERRED TO THE CENTRAL COLLECTION UNIT OF THE 7
DEPARTMENT OF BUDGET AND MANAGEMENT. 8
Article – State Government 9
4–115. 10
FOR DELINQUENT FEDERA L FUNDS REFERRED BY THE CENTRAL 11
COLLECTION UNIT OF THE DEPARTMENT OF BUDGET AND MANAGEMENT UNDER § 12
3–304(A)(5)(III) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 13
COMPTROLLER MAY WITHHOLD STATE PAYMENTS TO THE FEDERAL GOVERNMENT. 14
6–106.1. 15
(a) The General Assembly finds that: 16
(1) the federal government’s action or failure to take action may pose a 17
threat to the health and welfare of the residents of the State; and 18
(2) the State should inv estigate and obtain relief from any arbitrary, 19
unlawful, or unconstitutional federal action or inaction and prevent such action or inaction 20
from harming the residents of the State. 21
SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 22
the application of any provision of this Act to any person or circumstance is held invalid for 23
any reason in a court of competent jurisdiction, the invalidity does not affect other 24
provisions or any other application of this Act that can be given effect without the invalid 25
provision or application, and for this purpose the provisions of this Act are declared 26
severable. 27
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2026. 29