ROBERT L. EHRLICH, JR., Governor                             Ch. 153

CHAPTER 153
(House Bill 444)

AN ACT concerning

General Obligation Bonds - Termination of Authorization

FOR the purpose of providing for the termination of authority to spend certain
appropriations for certain capital expenditures after a certain period;
establishing certain exceptions to the termination of authority to spend certain
appropriations; clarifying that the authority to spend certain appropriations
terminates if a certain matching fund requirement is not met; prescribing
certain enabling act language requiring the expenditure or encumbrance of
certain money within a certain period; providing for the automatic termination
of the authorization of State debt under certain circumstances and establishing
certain exceptions; requiring a certain annual report; providing for the
cancellation of certain State debt authorizations and the disposition of certain
unspent bond proceeds; providing for the application of this Act; and generally
relating to the termination of authorization of State debt and the disposition of
terminated authorizations and unspent loan proceeds.

BY repealing and reenacting, with amendments,
Article - State Finance and Procurement
Section 7-305, 8-117, 8-128, and 8-129
Annotated Code of Maryland
(2001 Replacement Volume and 2002 Supplement)

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

Article - State Finance and Procurement

7-305.

(a)     In this section, "capital expenditure" includes an expenditure for:

(1)     acquisition of land, buildings, or equipment; or

(2)     new construction.

(b)     At the end of a fiscal year, the unspent part of an appropriation for a
capital expenditure made through the State budget or a supplementary appropriation
act other than an enabling act for a general obligation loan:

(1)     does not revert to the General Fund; and

(2)     with the approval of the Board of Public Works, may be carried in a
capital account until it is spent in accordance with subsection (c) of this section or
until the authority to spend the appropriation for a project terminates.

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