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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*sb0828*
SENATE BILL 828
P1, P3 6lr2085
CF HB 706
By: Senator Hester Senators Hester, Attar, Augustine, Brooks, Ellis, Feldman,
Gile, Guzzone, Harris, Henson, Hettleman, James, Kagan, Lam,
Lewis Young, Love, Muse, Rosapepe, Smith, Sydnor, Waldstreicher,
A. Washington, and Watson
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted with floor amendments
Read second time: March 2, 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 co llect 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 fede ral 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
2 SENATE BILL 828
BY adding to 1
Article – General Provisions 2
Section 6–204 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – State Finance and Procurement 7
Section 3–101, 3–206(a), (b), and (d), and 10–101 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 3–302(a)(1) and 3–304(a) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15
BY adding to 16
Article – State Finance and Procurement 17
Section 3–302(d) and 10–208 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20
BY adding to 21
Article – State Government 22
Section 4–115 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25
BY repealing and reenacting, without amendments, 26
Article – State Government 27
Section 6–106.1(a) 28
Annotated Code of Maryland 29
(2021 Replacement Volume and 2025 Supplement) 30
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 31
That the Laws of Maryland read as follows: 32
Article – General Provisions 33
6–202. 34
Notwithstanding § 6 –201(a) [or], § 6 –203, OR § 6–204 of this subtitle, for the 35
purpose of enforcing the civil or criminal laws of the State, the Governor may enter into an 36
agreement with the United States to establish full or partial concurrent jurisdiction of the 37
State and the United States over any land in the State held by the United States. 38
SENATE BILL 828 3
6–204. 1
FOR FEDERAL FUNDS DET ERMINED DELINQUENT U NDER § 10–208 OF THE 2
STATE FINANCE AND PROCUREMENT ARTICLE, THE STATE RESERVES 3
JURISDICTION WITH RESPECT TO LAND THAT THE UNITED STATES OR ANY UNIT OF 4
THE UNITED STATES LEASES OR OTHERWI SE HOLDS IN THE STATE WHEN THE 5
FEDERAL GOVERNMENT I S FOUND NOT IN COMPL IANCE WITH COURT DEC ISIONS 6
UPHOLDING FEDERAL CONGRESSIONALLY APPROVED SPENDING. 7
Article – State Finance and Procurement 8
3–101. 9
(a) In this title the following words have the meanings indicated. 10
(b) “Department” means the Department of Budget and Management. 11
(c) “Secretary” means the Secretary of Budget and Management. 12
3–206. 13
(a) The Attorney General is legal adviser to the Department. 14
(b) (1) With the advice of the Secretary, the Attorney General shall assign at 15
least 1 assistant Attorney General to the Central Collection Unit. 16
(2) At the request of the Governor, the Attorney General shall assign to the 17
Department: 18
(i) at least 1 assistant Attorney General; and 19
(ii) any other assistant Attorneys General authorized by law to be 20
assigned to the Department. 21
(d) Each assistant Attorney General who is assigned to the Central Collection 22
Unit shall devote full time to the duties with that Unit and may have no other duties. 23
3–302. 24
(a) (1) Except as otherwise provided in [subsection (b) ] SUBSECTIONS (B) 25
AND (D) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central 26
Collection Unit is responsible for the collection of eac h delinquent account or other debt 27
that is owed to the State or any of its officials or units. 28
4 SENATE BILL 828
(D) THE CENTRAL COLLECTION UNIT MAY COLLECT DELI NQUENT 1
FEDERAL FUNDS DETERMINED UNDER § 10–208 OF THIS ARTICLE IN AN AMOUNT UP 2
TO THE TOTAL OF DELINQUENT FEDERAL FUNDS OWED TO THE STATE. 3
3–304. 4
(a) In carrying out its responsibilities, the Central Collection Unit may: 5
(1) (i) institute, in its name, any action that is available under State 6
law for collection of a debt or claim; or 7
(ii) without suit, settle the debt or claim; 8
(2) for all debts or claims collected on or after June 1, 1992: 9
(i) in addition to the outstanding principal and interest, assess and 10
collect from the debtor a fee, which may not exceed 20% of the outstanding principa l and 11
interest, sufficient to cover all collection and administrative costs; and 12
(ii) prior to crediting any amount to any agency which refers a debt 13
for any purpose, withhold a fee sufficient to cover all collection and administrative costs; 14
(3) waive or reduce any fee assessed under paragraph (2) of this subsection; 15
[and] 16
(4) certify a debt or claim and the debtor responsible for the debt or claim 17
to: 18
(i) the Comptroller for income tax refund interception in accordance 19
with Title 13, Subtitle 9 of the Tax – General Article; and 20
(ii) the State Lottery and Gaming Control Agency for State lottery 21
prize interception in accordance with § 3–307 of this subtitle; AND 22
(5) IF THE BOARD OF PUBLIC WORKS DETERMINES THE FEDERAL 23
GOVERNMENT TO BE DELINQUENT IN FEDERAL FUNDS OWED TO THE STATE UNDER 24
§ 10–208 OF THIS ARTICLE, IN CONSULTATION WITH THE ATTORNEY GENERAL: 25
(I) COLLECT FEDERAL FUNDS OWED TO THE STATE; 26
(II) PLACE LIENS ON FEDERAL PROPERTY IN THE STATE; AND 27
(III) DIRECT THE COMPTROLLER TO WITHHO LD PAYMENTS TO 28
THE FEDERAL GOVERNME NT AS PROVIDED UNDER § 4–115 OF THE STATE 29
GOVERNMENT ARTICLE. 30
SENATE BILL 828 5
10–101. 1
In this title, “Board” means the Board of Public Works. 2
10–208. 3
(A) IF THE FEDERAL GOVERN MENT DOES NOT COMPLY WITH COURT 4
DECISIONS UPHOLDING CONGRESSIONALLY APPROVED SPENDING, THE BOARD MAY 5
DETERMINE, BY A MAJORITY VOTE, THE FEDERAL GOVERNMENT TO BE DELINQUENT 6
IN FEDERAL FUNDS OWED TO THE STATE. 7
(B) FEDERAL FUNDS DETERMI NED DELINQUENT UNDER SUBSECTION (A) 8
OF THIS SECTION SHALL BE REFERRED TO THE CENTRAL COLLECTION UNIT OF THE 9
DEPARTMENT OF BUDGET AND MANAGEMENT. 10
Article – State Government 11
4–115. 12
FOR DELINQUENT FEDERA L FUNDS REFERRED BY THE CENTRAL 13
COLLECTION UNIT OF THE DEPARTMENT OF BUDGET AND MANAGEMENT UNDER § 14
3–304(A)(5)(III) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 15
COMPTROLLER MAY WITHHOLD STATE PAYMENTS TO THE FEDERAL GOVERNMENT. 16
6–106.1. 17
(a) The General Assembly finds that: 18
(1) the federal government’s action or failure to take action may pose a 19
threat to the health and welfare of the residents of the State; and 20
(2) the State should investigate and obtain relief from any arbitrary, 21
unlawful, or unconstitutional federal action or inaction and prevent such action or inaction 22
from harming the residents of the State. 23
SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 24
the application of any provision of this Act to any person or circumstance is held invalid for 25
any reason in a court of competent jurisdiction, the invalidity does not affect other 26
provisions or any other application of this Act that can be given effect without the invalid 27
provision or application, and for this purpose the provisions of this Act are declared 28
severable. 29
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2026. 31
6 SENATE BILL 828
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.