1. (a) In this section, “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 capital budget as part of:

   1. (i) the Miscellaneous Grant Programs;
   2. (ii) the Local House of Delegates Initiatives; or
   3. (iii) the Local Senate Initiatives.
2. (b) Unless otherwise provided in an enabling act, an authorization of State debt for a project or program shall terminate no later than 1 year after the abandonment, completion, or acceptance of the project or program, as determined by the Board.

3. (c) Except to the extent that money authorized by an enabling act for a State project or program has been encumbered by the Board, an authorization of State debt shall automatically terminate 7 years after the date of the authorization, unless:

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

   3. (3) the authorization is for a program that:

      1. (i) is administered by a unit of State government which receives funds that are distributed by the unit to individual projects; and
      2. (ii) receives funds that may be reallocated by the unit between projects without requiring a budget amendment or an act of the General Assembly.

4. (d)

   1. (1) This subsection applies to a miscellaneous capital grant 3 years or more after the effective date of the enabling 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.
5. (e) If an authorization is terminated in accordance with this section, the amount of any unissued bonds specifically intended for the terminated authorization shall be canceled and be of no further effect.
6. (f) If an authorization is terminated in accordance with this section and bonds have been issued specifically to fund the authorization, the amount of any unspent bond proceeds associated with the terminated authorization shall be disposed of as provided in § 8-129 of this subtitle.

7. (g)

   1. (1) The Board shall enforce the provisions of this section.
   2. (2) A failure to comply with or give effect to the provisions of this section may not affect the validity or enforceability of State debt.
8. (h) The Board shall submit for publication in the Maryland Register a notice of any authorization of State debt that has been terminated or extended under this section; the notice shall include the chapter number and year of enactment of the enabling act and each amendment to the enabling act.
9. (i) A termination or extension under this section may become effective only after the publication of notice in the Maryland Register.

10. (j)

    1. (1) The Treasurer, in consultation with the Comptroller, shall submit a report on January 1 each year to the Governor and, in accordance with § 2-1257 of the State Government Article, the General Assembly.
    2. (2) The report shall list all projects or programs for which authorization would be terminated in the upcoming year under the provisions in this section or § 7-305 of this article.

Added by Acts 1985, c. 11, § 2, eff. Oct. 1, 1985. Amended by Acts 1986, c. 377, § 1, eff. July 1, 1986; Acts 1987, c. 11, § 1, eff. April 2, 1987; Acts 1987, c. 641, § 1, eff. July 1, 1987; Acts 2003, c. 153, § 1, eff. June 1, 2003; Acts 2005, c. 25, § 13, eff. April 12, 2005; Acts 2019, c. 510, § 4, eff. July 1, 2019; Acts 2019, c. 511, § 4, eff. July 1, 2019; Acts 2026, c. 5, § 16, eff. June 1, 2026.

Formerly Art. 78A, §§ 4 to 6.