HARRY HUGHES, Governor

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to the Revenue Stabilization Account, except under certain
circumstances; authorizing the transfer of funds from the
Revenue Stabilization Account under certain circumstances;
requiring certain reductions in transfers from the account
under certain circumstances; and generally relating to the
establishment of a State Reserve Fund.

BY adding to

Article - State Finance and Procurement
Section 2-701, 2-702, and 2-703 to be under the new subtitle

"Subtitle 7. Tax Avoidance Reserve Fund"
Section 7-309, 7-310, 7-311, and 7-312 and 7-311
Annotated Code of Maryland
(1985 Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

SUBTITLE 7. TAX AVOIDANCE RESERVE FUND

2-701.

(A) THERE IS A TAX AVOIDANCE RESERVE FUND.

(B) THE TAX AVOIDANCE RESERVE FUND CONSISTS OF:

(1) MONEYS APPROPRIATED IN THE STATE BUDGET TO THE
RESERVE FUND;

(2) UNAPPROPRIATED STATE GENERAL FUND SURPLUS MONEY
TRANSFERRED TO THE RESERVE FUND UNDER § 2-702 OF THIS SUBTITLE;
AND

(3) SUBJECT TO § 2-702 OF THIS SUBTITLE, INTEREST OR
OTHER INCOME EARNED FROM THE INVESTMENT OF ANY PORTION OF THE
FUND.

(C) ANY UNEXPENDED FUNDS REMAINING IN THE TAX AVOIDANCE
RESERVE FUND AT THE END OF A FISCAL YEAR MAY NOT REVERT TO THE
GENERAL FUND OF THE STATE.

2-702.

(A)(1) SUBJECT TO THE PROVISIONS OF PARAGRAPH (2) OF THIS
SUBSECTION, BEGINNING IN FISCAL YEAR 1988 AND FOR EACH SUBSEQUENT
FISCAL YEAR, THE GOVERNOR SHALL APPROPRIATE $5 MILLION IN THE
STATE BUDGET TO THE TAX AVOIDANCE RESERVE FUND.

(2) IF THE TOTAL AMOUNT OF THE TAX AVOIDANCE RESERVE
FUND IS AT LEAST $100 MILLION, THE APPROPRIATION REQUIREMENT OF
PARAGRAPH (1) OF THIS SUBSECTION DOES NOT APPLY.