1. (a)

   1. (1) In this section the following words have the meanings indicated.

   2. (2) “Capital expenditure” includes an expenditure for:

      1. (i) acquisition of land, buildings, or equipment; or
      2. (ii) new construction.
   3. (3) “Miscellaneous capital grant” means a grant for a capital project for an entity that is not a unit of State government funded in the annual State operating budget within the Department of General Services.

2. (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. (1) does not revert to the General Fund; and
   2. (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.
3. (c) Money carried in a capital account under subsection (b) of this section may be spent only for a capital purpose.

4. (d) Unless otherwise provided by law, the authority to spend the appropriation for a project terminates:

   1. (1) 1 year after the latest of abandonment, completion, or acceptance of the project; or

   2. (2) except to the extent the Board has encumbered money for a State project or program authorized by an appropriation act, 7 years after the effective date of the appropriation act that authorized the project unless:

      1. (i) the appropriation act provides otherwise; or
      2. (ii) in an emergency, the Board unanimously grants a temporary exception for 1 year.

5. (e)

   1. (1) This subsection applies to a miscellaneous capital grant 3 years or more after the effective date of the appropriation act that authorized the grant.

   2. (2) On or before July 1 each year, the Department of General Services shall submit to the Legislative Policy Committee, in accordance with § 2-1257 of the State Government Article, a report that identifies each grant for which:

      1. (i) no part of the grant is under contract approved by the Board; and
      2. (ii) the Board has not encumbered money for any part of the grant.

Added by Acts 1985, c. 11, § 2, eff. Oct. 1, 1985. Amended by Acts 1985, c. 717, § 1, eff. Oct. 1, 1985; Acts 2003, c. 153, § 1, eff. June 1, 2003; Acts 2004, c. 24, § 1, eff. April 13, 2004; Acts 2026, c. 5, § 16, eff. June 1, 2026.

Formerly Art. 15A, § 3.